Agenda packet — Needles City Council, October 22, 2024

(ACT) ACTION NEEDED
(INF) INFORMATION ONLY
(DIS) DISCRETIONARY
AGENDA

REGULAR MEETING OF THE CITY COUNCIL

NEEDLES PUBLIC UTILITY AUTHORITY

HOUSING AUTHORITY CITY OF NEEDLES

CITY OF NEEDLES, CALIFORNIA
EL GARCES – 950 FRONT STREET, NEEDLES
TUESDAY, OCTOBER 22, 2024
COUNCIL EXECUTIVE SESSION – 5:00 PM
CITY COUNCIL MEETING – 6:00 PM

THE PUBLIC MAY ATTEND VIA TEAMS AND MAY SUBMIT ANY COMMENTS IN WRITING PRIOR TO NOON ON THE DAY OF THE MEETING BY EMAILING [email protected] TO JOIN THE LIVE TEAMS MEETING: log into the City of Needles website at www.cityofneedles.com to access the agenda and click here to join the meeting If asked, enter the following: Meeting ID: 362 850 915# OR listen in and participate by calling Teams: 1-323-488-2227 - Meeting ID: 362 850 915# The meetings are being recorded.

CALL TO ORDER

ROLL CALL

PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION ITEMS A three-minute time limit per person has been established.

RECESS TO EXECUTIVE SESSION

EXECUTIVE SESSION
a. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6. Agency Designated Representatives: Mayor Janet Jernigan and Councilmember Tona Belt. b. Public Employee Performance Evaluation Pursuant to Government Code Section 54957. Title: City Manager
c. Conference with Legal Counsel – Anticipated Litigation – Regarding Potential Initiation of Litigation Pursuant to Government Code Section 54956.9(d)(4). Two Potential Cases EXECUTIVE SESSION REPORT - by City Attorney

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

INVOCATION

APPROVAL OF AGENDA

CONFLICT OF INTEREST

CORRESPONDENCE

INTRODUCTIONS
CITY ATTORNEY – Parliamentary Procedures
As a courtesy to those in attendance, we would ask that cell phones be turned off or set in their silent mode. Thank you
PUBLIC APPEARANCE - Persons wishing to address the NPUA / City Council on subjects other than those scheduled are requested to do so at this time. When called by the Mayor, please announce your name and address for the record. In order to conduct a timely meeting, a three-minute time limit per person has been established by Municipal Code Section 2-18. Amendments to the California Government Code Section 54950 prohibits the City Council from taking action on a specific item until it appears on the agenda.

INTERVIEWS

1. Interviews and appointments to fill vacancies on various Boards and Commissions (ACT)

PUBLIC HEARING

2. Public hearing noticed to consider all evidence and testimony for or against Amending the Appendix to the Conflict of Interest Code pursuant to the Political reform Act of 1974 (ACT)  Staff Report
 Council questions of staff
 Mayor to open the public hearing
 Public Comment
 Mayor to close the public hearing
 Council Discussion / Deliberation
 Resolution No. 2024-42 rescinding Resolution No. 2022-71 and approving and adopting an amended Appendix to the Conflict of Interest Code pursuant to the Political Reform Act of 1974

3. Public Hearing Noticed to consider all evidence and testimony for or against Ordinance No. 668-AC of the City Council Approving Needles Municipal Code amendment to amend section

96.00 “Table of Permissible Uses” And Section 96.08 “Dwelling Units.” (ACT)  Staff Report
 Council questions of staff
 Mayor to open the public hearing
 Public Comment
 Mayor to close the public hearing
 Council Discussion / Deliberation
 Ordinance No. 668-AC of the City Council Approving Needles Municipal Code amendment to amend section 96.00 “Table of Permissible Uses” And Section 96.08 “Dwelling Units.”

RECESS THE CITY COUNCIL MEETING AND CONVENE A JOINT COUNCIL / NPUA MEETING

PUBLIC COMMENTS PERTAINING TO THE COUNCIL / NPUA ITEMS
A three-minute time limit per person has been established.

NPUA / COUNCIL CONSENT CALENDAR
All matters listed on the Consent Calendar are considered to be routine and will be enacted by one motion in the form listed. The Mayor or any member of the NPUA / City Council may pull an item from the Consent Calendar for discussion. Prior to NPUA / Council action, a member of the public may address the NPUA / City Council on matters scheduled on the Consent Calendar. A three-minute time limit per person applies. RECOMMENDED ACTION: Approve Items 4 through 5 on the Consent Calendar by affirmative roll call vote (ACT)

4. Approve the 2023 Greenhouse Gas Emissions Allowance Transaction from CP Energy Marketing LP ($614,631.60) and Evolution Market ($6,146.32) for a total amount not to exceed $620,778 to be funded from the adopted FY25 electric budget.

5. Accept the bid of Raftelis Financial Consultants, Inc. to prepare a Comprehensive Electric, Water, and Wastewater Cost of Service Ratemaking Study at a cost not to exceed $98,774 utilizing the adopted FY25 NPUA budget.

END OF NPUA CONSENT CALENDAR

ADJOURN THE JOINT COUNCIL/NPUA MEETING AND RECONVENE THE COUNCIL MEETING (Roll Call Previously Taken)

PUBLIC COMMENTS PERTAINING TO THE COUNCIL ITEMS
A three-minute time limit per person has been established.

COUNCIL CONSENT CALENDAR All matters listed on the Consent Calendar are considered to be routine and will be enacted by one motion in the form listed. The Mayor or any member of the City Council may pull an item from the Consent Calendar for discussion. Prior to Council action, a member of the public may address the City Council on matters scheduled on the Consent Calendar. A three- minute time limit per person applies. RECOMMENDED ACTION: Approve Items 6 through 9 on the Consent Calendar by affirmative roll call vote. (ACT)

6. Approve the Warrants Register through October 22, 2024.

7. Approve the Minutes of October 8, 2024.

8. Accept Proposal from Phillips Excavating, Inc. for the Well 11 to Well 15 Intertie Project in the amount of $435,065 plus 10% contingency for a total project cost of $478,506.50 and authorize staff to execute a Public Works Agreement with Phillips Excavating, Inc. and move forward with the Notice of Award and Notice to Proceed.

9. Waive the reading and adopt Resolution No. 2024-41 waiving the sealed bid process and accepting a budgetary quote from Flock Safety for purchase of automated license plate reader (ALPR) cameras.

END OF COUNCIL CONSENT CALENDAR

REGULAR COUNCIL ITEMS

10. Create an AdHoc Committee of no more than three Council Members to organize the Annual Employee Appreciation Event (Christmas Party). (ACT)

CITY MANAGER REPORT
Manager's Report for the weeks of October 4 and October 11, 2024

COUNCIL REQUESTS
Council Member Campbell
Council Member McCorkle
Vice Mayor Merritt
Council Member Pogue
Council Member Belt
Council Member Longbrake
Mayor Jernigan

ADJOURNMENT

INTERNET ACCESS TO CITY COUNCIL AGENDAS AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT: http://www.cityofneedles.com Posted: October 18, 2024
SB 343-DOCUMENTS RELATED TO OPEN SESSION AGENDAS -- Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the City Clerk’s Office, 817 Third Street, Needles, CA 92363.

In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (760) 326-2113 ext 133. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-104 ADA Title II).

I hereby certify, under penalty of perjury under the laws of the State of California that the foregoing Agenda was posted at the front entrance of City Hall not less than 72 hours prior to the meeting.

Dated this 18th day of October, 2024
/s/        Candace Clark, CPMC, Assistant City Clerk
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: October 22, 2024
Title: Interviews / appointments to fill vacancies on various Boards and Commissions Background: Per council direction the City Clerk posted and published the following vacancies in the Needles Desert Star:

Interviews have been scheduled with the following applications to date:

Board of Public Utilities: There is one vacancy with a term to expire December 31, 2027. The Board meets on the first and third Tuesday of each month at 4:00 pm Planning Commission: There is one vacancy with a term to expire December 31, 2024. The Commission meets on the first Wednesday of each month at 4:00 p.m.

Park & Recreation Commission: There are two vacancies with terms to expire December 31, 2027.

The Commission meets on the third Monday of each month at 4:00 pm.

Housing Commission: There is one vacancy for a Housing Authority Tenant over the age of 60 with a term to expire December 31, 2028. The Commission meets on the fourth Wednesday of each month at 4:00 pm.

Recommended Action: Appoint to the Board of Public Utilities _ ________with a term to expire December 31, 2027.

Appoint to the Planning Commission , with a term to expire December 31, 2024.

Appoint to Park & Recreation Commission and ,
with terms to expire December 31, 2027.

Appoint to the Housing Commission Tenant (over age 62) ___ _____ with a term to expire December 31, 2028.

Submitted By: Candace Clark, Assistant City Clerk
City Manager Approval: Date:

Other Department Approval (when required): Date:

Approved: Not Approved: Tabled: Other:

Agenda Item: ____________
10/16/2024
Item 1.

City of Needles, California
Request for City Council Action
r8J CITY COUNCIL O NPUA
Meeting Date: October 22, 2024
r8J Regular D Special
Title: Resolution No. 2024-42 Rescinding Resolution No. 2022-71 and approving and adopting an amended appendix to the Conflict-of-Interest Code pursuant to Political Reform Act of 197 4
Background: The Political Reform Act requires every local government agency to review its Conflict-of-Interest code biennially. The City Council directed staff to review the City's Conflict of Interest Code where changes were made to reflect employee titles and disclosure categories assigned to designated employees. Government Code Section 81000 requires a public hearing be held and a 45-day notice was published in the Needles Desert Star on September 4, 2024.

Fiscal Impact: N/A
Recommendation: Adopt Resolution No. 2024-42 Rescinding Resolution No. 2022-71 and approving and adopting an amended appendix to the Conflict-of-Interest Code pursuant to Political Reform Act of 197 4
Submitted By: City Clerk's Department
City Manager App4 >,.j.\t,� Date: ID\ 18 / 2l.f
Other Department Approval (when required)
: _______ _ Date: _____ _
Approved: D Not Approved: D Tabled: 0 Other: D
Agenda Item:

Item 2.

RESOLUTION NO. 2024-42

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEEDLES
RESCINDING RESOLUTION NO. 2022-71 AND APPROVING AND

ADOPTING AN AMENDED APPENDIX TO THE CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT OF 1974
WHEREAS, the Legislature of the State of California enacted the Political Reform Act of 1974, Government Code Section 81000, et seq. (the "Act"), which contains provisions relating to conflicts of interest which potentially affect all officers, employees and consultants of the City of Needles (the "City"), and which requires all public agencies to adopt and promulgate a conflict of interest code; and
WHEREAS, the City Council adopted a Conflict of Interest Code (the "Code") which was amended on December 12, 2000, December 12, 2006, September 25, 2012, September 23, 2014, September 23, 2016, December 17, 2019, and October 11, 2022, in compliance with Government Code Section 81000, et seq.; and WHEREAS, subsequent changed circumstances within the City have made it advisable and necessary pursuant to Sections 87306 and 87307 of the Act to amend and update the Appendix to the City's Code; and
WHEREAS, the potential penalties for violation of the provisions of the Act are significant and may include criminal and civil liability, as well as equitable relief which could result in the City being restrained or prevented from acting in cases where the provisions of the Act may have been violated; and
WHEREAS, notice of the time and place of a public meeting on, and of consideration by the City Council of, the proposed amended Appendix was provided to each affected designated employee and was publicly posted for review; and WHEREAS, a public meeting was held upon the proposed amended Appendix at a regular meeting of the City Council on October 22, 2024, at which all present were given an opportunity to be heard on the proposed amended Appendix.

NOW THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF NEEDLES AS FOLLOWS:

Section 1. The City Council does hereby approve and adopt the proposed amended Appendix to the City's Conflict of Interest Code, a copy of which is attached hereto and shall be on file with the City Clerk and available to the public for inspection and copying, together with the City's Conflict of Interest Code.

Section 2. The amended Appendix of the Conflict of Interest Code shall become effective immediately upon its adoption and approval.

Item 2.

PASSED, APPROVED and ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 22nd day of October 2024.

AYES:

NAYS:

ABSENT:

ABSTAIN:

Mayor Jernigan
ATTEST:

Candace Clark, Assistant City Clerk
APPROVED AS TO FORM:

John Pinkney, City Attorney
Item 2.

APPENDIX

CONFLICT OF INTEREST

CODE OF THE

CITY OF NEEDLES
(Amended October 22, 2024
EXHIBIT "A"
The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney, the City Treasurer, and all Other City Officials who manage public investments as defined by 2 Cal. Code of Regs. § 18701(b), are NOT subject to the City's Code but are subject to the disclosure requirements of the Act. (Government Code Section 87200 et seq.) [Regs. § 18730(b)(3)] These positions are listed here for informational purposes only.

OFFICIALS WHO MANAGE PUBLIC INVESTMENTS
It has been determined that the positions listed below are Other City Officials who manage public investment3.

Director of Finance
Financial Consultants
3 Individuals holding one of the above-listed positions may contact the FPPC for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The FPPC makes the final determination whether a position is covered by § 87200.

Item 2.

DESIGNATED POSITIONS

DESIGNATED EMPLOYEE

DISCLOSURE

CATEGORIES

TITLE OR FUNCITION ASSIGNED
City Manager (87200 Filer)
Community Services Manager 6,7
City Clerk 6,7
Assistant City Clerk 6,7
Director of Finance 2,3,6,7
Senior Accountant 6
City Treasurer (87200 Filer)
Human Resource Specialist 6
Senior Account Clerk 6
Account Clerk I 3
Project Finance Clerk 3
Director of Dev Services / Capital Projects 2,3,6,7
Capital Project Engineer Tech 2,3,6,7
Engineering Tech II 6,7
City Planner 2,3,6,7
Building Inspector 2,3,6,7
Building Permit Tech 2,3,6,7
Senior Code Enforcement 6,7
Code Enforcement Officer 6,7
Item 2.

DESIGNATED EMPLOYEE

DISCLOSURE

CATEGORIES

TITLE OR FUNCTION ASSIGNED
Code Enforcement Officer 6,7
Director of Public Works 2,3,6,7
Equipment Operator IV N/A

MCWIII N/A

MCWII N/A

MCWI N/A
Fleet Mechanic 6,7
Fleet Maintenance 6,7
Senior Animal Control Officer 6,7
Animal Control Officer 6,7
Animal Control Assistant N/A
Senior Center Aide 6
Recreation Services Manager 3,6
Recreation Coordinator 6
Recreation Leader 6
Recreation Aide N/A
Jack Smith Park Attendant N/A
Pool Tech N/A
Head Guard N/A
Item 2.

DESIGNATED EMPLOYEE

DISCLOSURE

CATEGORIES

TITLE OR FUNCTION ASSIGNED
Lifeguard Shift Leader II N/A
Lifeguard Shift Leader I N/A
Lifeguard III N/A
Lifeguard II N/A
Lifeguard I N/A
Golf Pro 3,6
Utilities Manager 2,6,7
Materials Coordinator/Serviceperson 6,7
Business Office Manager 3
Customer Service Rep II 6,7
Customer Service Rep I 6,7
WW Operator I/Meter Tech N/A
Line Crew Supervisor 6,7
Powerline Technician 6,7
Powerline Technician Apprentice 6,7
Chief Water Plant Operator 2,3,6,7
Water Foreperson 6
Water Foreperson Assistant 6
Item 2.

DESIGNATED EMPLOYEE

DISCLOSURE

CATEGORIES

TITLE OR FUNCTION ASSIGNED
Associate Water Operator 6
Water Operator in training N/A
WW Tech II N/A
Housing Authority Manager 2,3,6.7
Housing Specialist 6,7
Cemetery Commission 1,2
Board of Public Utilities 1,2
Planning Commission (87200 Filers)
Housing Commission (87200 Filers)
Parks and Recreation Commission 1,2
Mayor and City Council (87200 Filers)
Consultants4 2,3,6,7
4 Consultants shall be included in the list of Designated Employees and shall disclose pursuant to the broadest disclosure category in this Code subject to the following limitation:

The City Manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that are limited in scope and thus is not required to fully comply with the disclosure requirements described in this Section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code.

Item 2.

EXHIBIT "B"

DISCLOSURE CATEGORIES
The disclosure categories listed below identify the types of investments, business entities, sources of income, including gifts, loans and travel payments, or real property which the Designated Employee must disclose for each disclosure category to which he or she is assigned.

Category 1: All investments and business positions in business entities, and sources of income, that are located in, do business in or own real property within the jurisdiction of the City.

Category 2: All interests in real property which is located in whole or in part within, or not more than two (2) miles outside, the jurisdiction of the City.

Category 3: All investments and business positions in, and sources of income from, business entities that are engaged in land development, construction or the acquisition or sale of real property within the jurisdiction of the City.

Category 4: All investments and business positions in, and sources of income from, business entities that are banking, savings and loan, or other financial institutions.

Category 5: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the City.

Category 6: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the Designated Employee's Department.

Category 7: All investments and business positions in, and sources of income from, business entities subject to the regulatory, permit, or licensing authority of the Designated Employee's Department.

Item 2.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: October 22, 2024
Title: ORDINANCE NO. 668-AC OF THE CITY COUNCIL OF THE CITY OF NEEDLES APPROVING NEEDLES MUNICIPAL CODE (“CODE”)
AMENDMENT TO AMEND SECTION 96.00 “TABLE OF PERMISSIBLE
USES” AND SECTION 96.08 “DWELLING UNITS.”
Background: On July 22, 2024, the City of Needles received a comment letter from the California Department of Housing and Community Development (HCD) regarding Ordinance No. 652-AC, which amended Needles Municipal Code (NMC) Section 96.00 “Table of Permissible Uses” and Section 96.08 “Dwelling Unit” and was adopted by the Needles City Council on August 6, 2022. This ordinance was submitted to HCD for review on September 15, 2022.

In accordance with Government Code section 66326, subdivision (a), HCD's letter indicated that the City's current ordinance concerning dwelling units does not fully comply with State laws regarding Accessory Dwelling Units (ADUs) and junior accessory dwelling units (JADUs). The City has reviewed HCD’s comments and proposes amendments to the ordinance, as detailed in Exhibit “A” (attached), to ensure compliance. These amendments address HCD comments and include updates to provide clarity related to ADUs, JADUs.

Additionally, on September 19, 2024, Governor Newsom signed Senate Bill 1211 (SB 1211) into law, introducing further changes to State ADU regulations. The proposed amendments to the City’s ordinance also incorporate the new requirements mandated by this legislation.

A public hearing notice was published in the Needles Desert Star newspaper on Wednesday, September 25, 2024, and posted in two conspicuous locations.

City staff, in collaboration with Placeworks (the City’s state-funded planning consultant), has developed the necessary amendments to the ordinance to ensure compliance with State ADU Law. Upon approval by the City Council, the ordinance will be submitted to the California Department of Housing and Community Development (HCD) for review. The most significant changes amendments to NMC Section

96.00, "Table of Permissible Uses," and Section 96.08, "Dwelling Unit," are as follows:
• Removed JADUs as a permitted use in the C-2 zone.
• Revised the definition and building standards for Tiny Homes to allow enclosed spaces between 150 and 400 square feet.
• Updated the definition of a manufactured home to exclude park model homes. • Removed Section 96.08(h), which set standards for Manufactured Homes and Tiny Homes. • Eliminated all provisions regarding "Violations Considered an Infraction" in Sections 96.08(b), (c), and (d).
• Removed provisions prohibiting ADUs from being used as vacation rentals. • Added a statement that the City shall not prohibit the development of an attached or detached ADU up to 800 square feet with four side and rear setbacks, regardless of underlying development standards.
• Included language allowing the creation of an ADU up to 800 square feet, regardless of the size of the primary unit.

Item 3.
• Revised parking and kitchen standards for JADUs.
• Updated the number of ADUs allowed on a single-family lot to permit one ADU through conversion of existing space, one new construction ADU, and one JADU, for a total of three accessory units.

A public hearing on the matter was held at an adjourned regular meeting of the Planning Commission on Wednesday, October 9, 2024; no public testimony was taken. The Planning Commission unanimously recommended to the City Council approval of the Code change.

Attachments: 1. City Council Ordinance No. 668-AC

2. Exhibit “A” - Amendment (REDLINE COPY) to Needles Municipal Code

3. Exhibit “B” - Amendment (CLEAN COPY) to Needles Municipal Code Fiscal Impact: None
Environmental
Impact: Categorical exemption pursuant to the California Environmental Quality Act (CEQA) Guidelines Sections 15060(c), 15061(B)(3) (the common-sense exemption), and 15378, that this Ordinance is nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Recommended Adopt Ordinance No. 668-AC of the City Council Approving Needles Municipal Action: Code amendment to amend section 96.00 “Table of Permissible Uses” And Section

96.08 “Dwelling Units.”
Submitted By: Irene Romero, City Planner
City Manager Approval: Date:

Other Department Approval (when required): Date:

Approved: Not Approved: Tabled: Other:

Agenda Item: ____________
10/16/2024
Item 3.

ORDINANCE 668

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEEDLES AMENDING NEEDLES MUNICIPAL CODE (NMC) SECTION 96.00 “TABLE OF PERMISSIBLE USES” AND” SECTION 96.08 “DWELLING UNIT”
WHEREAS, the City of Needles, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, state law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (JADUs); and WHEREAS, in recent years, the California Legislature has approved, and the Governor has signed into law, a number bills that, among other things, amended Government Code sections 66310- 66342 to impose new limits on local authority to regulate ADUs and JADUs; and WHEREAS, On July 22, 2024, the City of Needles received a comment letter from the California Department of Housing and Community Development (HCD) regarding Ordinance No. 652- AC, which amended Needles Municipal Code (NMC) Section 96.00 “Table of Permissible Uses” and Section 96.08 “Dwelling Unit” and was adopted by the Needles City Council on August 6, 2022; and WHEREAS, on September 19, 2024, Governor Newsom signed Senate Bill 1211 (SB 1211) into law, introducing further changes to State ADU regulations; and WHEREAS, City staff has developed the necessary amendments to the ordinance to ensure compliance with Government Code sections 66310 – 66342; and WHEREAS, on October 09, 2024, the Needles Planning Commission was presented with the Ordinance Amendments to Zoning Code Sections 96.00 and 96.08 of the City’s Municipal Code as contained in Exhibit “A”, and after holding a duly noticed public hearing, voted to recommend that the council approve the revisions; and
WHEREAS, a public hearing notice for the Needles City Council meeting was published in the Needles Desert Star on Wednesday, September 25, 2024 and posted in two conspicuous locations in the city; and
WHEREAS, the Needles City Council has sufficiently considered all testimony, and any documentary evidence presented to them in order to make the following determination.

NOW, THEREFORE, BE IT ORDAINED that the City Council of the City of Needles, California, approves an amendment to the City Code.

SECTION 1. Recitals. The recitals above are hereby incorporated by reference as a substantive component of this Ordinance.

SECTION 2. Compliance with CEQA. As the advisory body to the City Council, the Planning Commission has independently reviewed and considered the project exempt under the California Environmental Quality Act (CEQA) Guidelines Sections 15060(c), 15061(B)(3) (the common-sense exemption), and 15378, that this Ordinance is nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Item 3.

SECTION 3. The City Council HEREBY FINDS AND DETERMINES that facts do exist to approve an amendment to the Needles Municipal Code (NMC), attached as “Exhibit “A”.

SECTION 4. The City Council HEREBY APPROVES Ordinance 668-AC for an amendment to the Needles Municipal Code (NMC) attached as Exhibit “A”.

SECTION 5. This action shall become final and effective 30 days after this decision by the City Council as provided by the Needles City Code.

INTRODUCED AND READ for the first time and ordered posted at a regular meeting of the City Council of the City of Needles, California, held on the 22nd day of October 2024, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________
Mayor
Attest: __________________
City Clerk
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 12
th day of November 2024.

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________
Mayor
Attest: __________________
City Clerk
Approved as to form:
_________________________
City Attorney
Item 3.

EXHIBIT “A”
Section 96.00 "Permissible Use Table":

Zones: R1 R2 R3 CRR C1 C2 C3 M1 M2 P

1.00 Residential

1.20 Accessory and Junior
Accessory Dwelling Units Z Z Z Z ZZ

1.25 Junior Accessory Dwelling
Units Z Z Z Z
*S Applications that do not comply with the criteria for ministerial review are subject to the review and approval of the Planning Commission through a Special Use Permit w/o a public hearing

96.08 Dwelling Units
(a) Definitions to be Added.

1. "Accessory dwelling unit." An attached or a detached residential dwelling unit which provides independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, eating, sleeping, cooking, and sanitation on the same parcel as a single-family dwelling or multifamily dwelling is or will be situated. An accessory dwelling unit also includes an efficiency unit as defined in Section 17958.1 of the Health and Safety Code, and a manufactured home as defined in Section 18007 of the Health and Safety Code. (See also "Secondary dwelling unit").

2. "Accessory building or structure." A building or structure that is subordinate to the main building on the same site, or the use of which is incidental to the use of the site or the use of the main building on the site. A building that shares a common wall with a main building shall be deemed a part of the main building.

3. "Accessory use." A use customarily incidental, related, and subordinate to the principal legal use of the parcel or lot and located on the same.

3.4. “Architecturally and historically significant historic district” means a historic district established by the City of Needles.

4.5. "Attached accessory dwelling unit" means an accessory dwelling unit that shares a common wall with the primary unit, either by being constructed as a physical expansion (i.e., addition) of a primary unit, conversion of an 1 Item 3.

EXHIBIT “A”
existing garage attached to a primary unit, or installation of a new basement underneath an existing primary unit.

5.6. "Detached accessory dwelling unit" means an accessory dwelling unit that is constructed as a separate structure from the primary unit or is created through conversion (full or partial) of an existing lawfully-constructed detached accessory building into an accessory dwelling unit.

6.7. "Second Dwelling Unit." A "Second Dwelling Unit" is defined as a permanent dwelling unit that is equivalent to a primary dwelling on the same site. A second dwelling unit provides complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, sanitation, and parking. A second dwelling unit must be detached from the primary dwelling in R1 zones. A second dwelling unit may be attached to or detached from the primary dwelling in R2, R3, and CRR zones.

8. "Floorspace" means the gross floor area as measured to the outside surface of exterior walls, including its living area.

7.9. “Housing organization” means a trade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the housing development project.

10."Junior accessory dwelling unit." A unit that is no more than 500 square feet in size and contained entirely within an existing single-family structure.

Enclosed uses within the residence, such as attached garages, are considered a part of the proposed or existing single-family residence. A junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the existing structure. For the purposes of life/safety regulations and providing utilities such as water, sewer, power, or other utilities, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit.

11. “Land Trust” means the same as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the California Revenue and Tax Code.

8. 2
Item 3.

EXHIBIT “A”

9.12. "Living area" means the interior habitable area of a dwelling unit including the basement and attics but not including a garage or any accessory building or structure.

10.13. "Primary unit" means the building (or portion of the building in cases of an attached accessory dwelling unit) in which the principal residential use of the lot takes place. An accessory dwelling unit cannot constitute the primary unit.

11.14. "Public transit" means a signed and designated bus stop, train stop, ferry terminal or other public transit station where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.

12.15. "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit.

13.16. "Secondary dwelling unit." The predecessor to an accessory dwelling unit under local zoning laws. Secondary dwelling unit permits were issued under local zoning laws in effect after February 3, 1984 and prior to January 1, 2017.

14.17. “Tiny home” means a detached structure with an enclosed space between 150 and 400 square feet on a permanent foundation used for dwelling purposes that provides complete independent living facilities for one or more persons and is located on the same lot as the primary dwelling (single-family or multifamily) to which it is an accessory use. A tiny home that meets the requirements herein shall be considered an accessory dwelling unit.
(b) “Manufactured home” means a structure, transportable in one or more sections, which is built on a permanent chassis and is designed for use with or without a permanent foundation and when attached to the required utilities. The term "manufactured home" includes park model homes, but does not include a "recreational vehicle," as defined in Article II, Section 9A-5 of the Needles Municipal City Code.

18. (c)(b) Accessory Dwelling Unit (ADU). This section provides for the establishment and reasonable regulation of accessory dwelling units in order to encourage housing 3 Item 3.

EXHIBIT “A”
opportunities for all segments of the population while ensuring the public health, safety, and welfare.

1. Application and Fee. Application for an accessory dwelling unit permit shall be accompanied by the appropriate fee(s).

2. 3.1. Impact Fees. Accessory dwelling units built on a lot with an existing primary dwelling unit are exempt from impact fees. Accessory dwelling units built in conjunction with a new primary dwelling unit are subject to the following:

A. For accessory dwelling units less than 750 square feet, no impact fees apply.

B. For accessory dwelling units 750 square feet and larger, the impact fee is proportional relative to the square footage of the primary dwelling unit.

4.2. Director of the Development Services, or His/Her Designated Replacement, as Review Authority. Applications for accessory dwelling units shall be acted approved or denied upon by Development Services, ministerially without discretionary review or a public hearing, within 60 days following submission of a complete application and fees, if the proposed site has an existing dwelling unit, otherwise a zoning permit application and fees for a site plan review are required. In the event of a denial, the City shall return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant within 60 days of submission of a complete application.

5.3. A temporary certificate of occupancy for an accessory dwelling unit may be issued before the certificate of occupancy is issued for the primary residence, with the following conditions: 1) Within 18 months of receiving the temporary certificate of occupancy, a building permit will be in place for the primary dwelling unit and construction completed within 24 months of issuance of building permit ; 2) A bond to be in place at the time the temporary Certificate of Occupancy is issued in an amount covering the cost of demolition and removal of the ADU if the primary dwelling unit is not completed within 24 months. Once both units are completed, permanent Certificate of Occupancy will be issued for both units. 4 Item 3.

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6.4. Building Permits. A building permit shall be required in conjunction with the issuance of an accessory dwelling unit permit if repair, rehabilitation, or other work otherwise requiring a building permit is necessary.

7.5. Approved Secondary Dwelling Units Still Valid. Any secondary dwelling unit legally established with an approved secondary dwelling unit permit and in continued existence shall be deemed a legal, conforming dwelling unit. Secondary dwelling units established by any such permit shall continue to comply with all zoning requirements for secondary dwelling units in effect at the time of permit approval.

8.6. Premises Identification. Any assigned street address number for the accessory dwelling unit shall be plainly visible and legible from the street fronting the property as required by the applicable building code.

9.7. Expiration. Accessory dwelling unit permits issued in compliance with this section shall expire and become null and void 18 months after issuance unless a certificate of occupancy has been issued by the building division.

10.8. Reporting of Violations. All reporting of accessory dwelling unit permit or secondary dwelling unit permit violations shall be submitted in writing to the directorDirector of Development Services, or his/her designee, and the Director of Development Servicesdirector, or his/her designee, shall notify the owner of record of the property that a complaint has been registered, within ten calendar days from receipt of any such complaint. The Director of Development Servicesdirector, or his/her designee, shall investigate and issue a written report to the complainant within thirty days from the date of the issuance of the notice outlining the status of any alleged violation and the steps that have been requested of the owner of record to remedy the situation.

11. Violations Considered an Infraction. Violations of this section shall be punished as infractions or by administrative citation, in the discretion of the director, or his/her designee, and shall be subject to the provisions of Article XVIII “Enforcement and Review” as well as Chapter 2A “Administrative Citations”.

12.9. Density. Pursuant to California Government Code, Title 7, Division 1, Chapter 13Government Code Section 68552.2, no accessory dwelling unit approved under these provisions shall be considered in calculating the 5 Item 3.

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density of the lot allowed by the land use designation contained in the land use element of the Needles General Plan, and accessory dwelling units are deemed a residential use that is consistent with the existing general plan and zoning for the lot.

13. The property on which the accessory dwelling unit is located shall have deed restrictions recorded upon it as set forth below prior to issuance of a building permit for the unit. Said restrictions shall be reviewed and approved by the City Attorney and recorded with the San Bernardino County Recorder's Office.

A. The accessory dwelling unit shall not be sold separately from the primary residence, unless the ADU meets all the requirements listed in Government Code Section 65852.26.
(d)(c) Junior Accessory Dwelling Unit (JADU). This section provides for the establishment and reasonable regulation of junior accessory dwelling units to encourage housing opportunities for all segments of the population while ensuring the public health, safety, and welfare.

1. Zoning Permit Required. No junior accessory dwelling unit shall be established or used unless a junior accessory dwelling unit permit has been issued by the City.

1. 2. Application and Fee. Application for a junior accessory dwelling unit permit shall be accompanied by the appropriate filing fee. Junior accessory dwelling unitsJADUs are exempt from impact fees.

3. Director of the Development Services, or His/Her Designee, as Review Authority. Applications for junior accessory dwelling unit shall be approved or denied ministerially without discretionary review or a public hearing, within 60 days following submission of complete application and feesshall be acted upon by Development Services, or his/her designee, without discretionary review or a public hearing. Said actionThis approval or denial shall occur no more than 60 days following submission of a complete application. In the event of a denial, the City shall return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant. 6 Item 3.

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4. Building Permits. A building permit and a certificate of occupancy shall be required in conjunction with the installation of a junior accessory dwelling unit. Any repair, rehabilitation, or other work associated with the installation of the junior accessory dwelling unit shall also obtain building permits where required by law.

5. Premises Identification. Any assigned street address number for the junior accessory dwelling unit shall be plainly visible and legible from the street fronting the property as required by the applicable building code.

6. Expiration. Junior accessory dwelling unit permits issued in compliance with this section shall expire and become null and void 18 months after issuance unless a certificate of occupancy has been issued by the building division.

7. Reporting of Violations. All reporting of junior accessory dwelling unit violations shall be submitted in writing to the Director of Development Servicesdirector, or his/her designee, The Director of Development Servicesdirector, or his/her designee, shall notify the owner of record of the property that a complaint has been registered within ten calendar days from receipt of any such complaint. The Director of Development Servicesdirector, or his/her designee, shall investigate and issue a written report to the complainant within thirty days from the date of the issuance of the notice outlining the current status of any alleged violation and the steps that have been requested of the owner of record to remedy the situation.

8. Violations Considered an Infraction. Violations of this section shall be punished as infractions or by administrative citation, in the discretion of the director, or his/her designee, and shall be subject to the provisions of Municipal Code Article XVIII “Enforcement and Review” and Chapter 2A “Administrative Citations”.
(e)(d) Manufactured Homes and Tiny Homes. Manufactured homes and tiny homes are subject to all of the following provisions:

1. Shall meet the definition of ADU in Government Code section 66313, subdivision (a), and must comply with the standards of, and be approved as one of the following types of structures:

A. a HUD-Code manufactured home (MH),
B. a California Residential Code home or
7 Item 3.

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A.C. a California Building Code home. Shall be a self-contained unit that complies with all State of California requirements, is constructed in compliance with American National Standards Institute (ANSI) 119.5 standard as certified by an accredited qualified third-party inspector.

2. Shall adhere to all setback, height, and floor area limitations pursuant to Section 96.08(H).

3.2. Shall be secured to a permanent foundation.

4.3. Shall have at least 100 150 square feet of enclosed space.

5.4. Shall be directly connected to an approved water source, an onsite wastewater treatment system or sanitary sewer system, and electric utilities.

Holding tanks that are incorporated into the original design of the structure shall not be used for the purposes of waste storage and shall be directly connected to the approved onsite wastewater treatment system or sanitary sewer.

6.5. Mechanical equipment shall be incorporated into the original design of the structure and shall not be located on the roof or added on to the exterior of the unit, except for HVAC units.

7.6. Shall have the following design elements to maintain the character of the residential neighborhood:

A. Shall not include corrugated aluminum or fiberglass siding and shall not be a shipping container or cargo container.

B. Shall use cladding and trim materials on the exterior of movable tiny homes for residential appearance and to provide adequate thermal insulation and weather resistance. Materials may include, but are not limited to, single piece composite, vinyl siding, laminates, or interlocked sheathing.

C. Windows shall be at least double pane glass and labeled for building use and shall include exterior trim.

8.7. Application and Fee. Application for an accessory dwelling unit (manufactured home or tiny home) permit shall be accompanied by the appropriate fee(s).
8 Item 3.

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9.8. Impact Fees. Accessory dwelling units built on a lot with an existing primary dwelling unit are exempt from impact fees. Accessory dwelling units added in conjunction with a new primary dwelling unit are subject to the following:

A. For accessory dwelling units less than 750 square feet, no impact fees apply.

B. For accessory dwelling units 750 square feet and larger, the impact fee is proportional relative to the square footage of the primary dwelling unit.

10.9. Director of the Development Services, or his/her designated replacement, as review authority. Applications for accessory dwelling units shall shall be approved or denied ministerially without discretionary review or a public hearing, within 60 days following submission of complete application and feesbe acted upon by Development Services, or his/her designee, ministerially without discretionary review or a public hearing, within 60 days following submission of complete application, if the proposed site has an existing dwelling unit, otherwise a zoning permit application and fees for a site plan review are required. In the event of a denial, the City shall return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant.

10. Grant of Accessory Dwelling Unit Permit. In order to grant an accessory dwelling unit permit for an accessory dwelling unit (manufactured home/tiny home) the director, or his/her designee, shall find that the accessory dwelling unit would comply with all of the standards set forth in Section 96.08(H) for such accessory dwelling units.To be approved and occupied as an ADU, a tiny home must meet the definition of ADU in Government Code section 66313, subdivision (a), and must comply with the standards of, and be approved as one of the following types of structures:

A. a HUD-Code manufactured home (MH),
B. a California Residential Code home or
A.C. a California Building Code home.

11. A temporary certificate of occupancy for an accessory dwelling unit may be issued before the certificate of occupancy is issued for the primary 9 Item 3.

EXHIBIT “A”
residence, with the following conditions: 1) Within 18 months of receiving the temporary certificate of occupancy, a building permit will be in place for the primary dwelling unit and construction completed within 24 months of issuance of building permit; 2) A bond to be in place at the time the temporary Certificate of Occupancy is issued in an amount covering the cost of demolition and removal of the ADU if the primary dwelling unit is not completed within 24 months. Once both units are completed, permanent Certificate of Occupancy will be issued for both units.

12.11. Building Permits. A building permit shall be required in conjunction with the issuance of an accessory dwelling unit permit if repair, rehabilitation, or other work otherwise requiring a building permit is necessary.

13.12. Approved Secondary Dwelling Units Still Valid. Any secondary dwelling unit legally established with an approved secondary dwelling unit permit and in continued existence shall be deemed a legal, conforming dwelling unit. Secondary dwelling units established by any such permit shall continue to comply with all zoning requirements for secondary dwelling units in effect at the time of permit approval.

14.13. Premises Identification. Any assigned street address number for the accessory dwelling unit shall be plainly visible and legible from the street fronting the property as required by the applicable building code.

15.14. Expiration. Accessory dwelling unit permits issued in compliance with this section shall expire and become null and void 18 months after issuance unless a certificate of occupancy has been issued by the building division.

16.15. Revocation. Upon written notice to the holder of an accessory dwelling unit permit or a secondary dwelling unit permit, and a hearing before the Director of Development Servicesdirector, or his/her designee, the Director of Development Servicesdirector may revoke or modify any accessory dwelling unit permit or secondary dwelling unit permit on any one or more of the following grounds:

EXHIBIT “A”
C. That the permit granted is being or recently has been exercised contrary to the terms or conditions of such approval, or in violation of any statute, ordinance, law or regulation.

D. For other good cause.

17.16. Reporting of Violations. All reporting of accessory dwelling unit permit or secondary dwelling unit permit violations shall be submitted in writing to the Director of Development Servicesdirector, or his/her designee, and the Director of Development Servicesdirector, or his/her designee, shall notify the owner of record of the property that a complaint has been registered, within ten calendar days from receipt of any such complaint. The Director of Development Servicesdirector, or his/her designee, shall investigate and issue a written report to the complainant within thirty days from the date of the issuance of the notice outlining the status of any alleged violation and the steps that have been requested of the owner of record to remedy the situation.

18. Violations Considered an Infraction. Violations of this section shall be punished as infractions or by administrative citation, in the discretion of the director, or his/her designee, and shall be subject to the provisions of Article XVIII “Enforcement and Review” as well as Chapter 2A “Administrative Citations”.

19.17. Density. Pursuant to Government Code, Title 7, Division 1, Chapter 13California Government Code Section 68552.2, no accessory dwelling unit approved under these provisions shall be considered in calculating the density of the lot allowed by the land use designation contained in the land use element of the Needles General Plan, and accessory dwelling units are deemed a residential use that is consistent with the existing general plan and zoning for the lot.
(f)(e) Standards for Accessory Dwelling Units Created Through Construction of or Additions to a Accessory Structure or by Construction of or Additions to an Existing or Proposed Dwelling. (construction of new square footage)

1. Zones. The proposed unit would be located on a lot that contains a proposed or existing dwelling located in one of the following residential zones: R-1, R-2, R-3, CRR, C-1 and C-2.

2. Number of ADUs. On lots zoned R-1, oneOne converted ADU is allowed per primary dwelling unit. , notwithstanding the presence of a detached ADU of 11 Item 3.

EXHIBIT “A”
new construction and/or a JADU. On lots zoned for R-2, R-3, CRR, and C-2, a maximum of two ADUs are permitted. On lots zoned for multi-family residential use, a maximum of eight ADUs detached from the multifamily structure are permitted, provided the number of ADUs does not exceed the number of existing units on the lot.

3. Rental. The Accessory Dwelling Unit may be rented but may not be rented for a period of less than 30 consecutive days or used as a Vacation Rental.

4. Location on Lot. The Accessory Dwelling Unit shall either be attached to the existing dwelling or located within the Living Area of the existing dwelling or shall be detached from the existing dwelling and located on the same lot as the existing dwelling. If detached, the Accessory Dwelling Unit shall be separated from the Primary Unit and any Detached Accessory Building a minimum of three feet.

5. Zoning Development Standards. The proposed unit shall comply with development standards for the underlying zone in which it is located, specifically standards for lot coverage, setback, height, and floor area ratio, except as explicitly set forth herein.. Notwithstanding the underlying development standards, the City shall not prohibit the development of an attached or detached ADU of up to 800 square feet with four side and rear setbacks.

6. Separate Kitchen and Bathroom. The proposed Accessory Dwelling Unit shall contain a separate kitchen and bathroom; both the Primary Unit and the Accessory Dwelling Unit shall comply at a minimum with all requirements of the current residential code; and the Accessory Dwelling Unit shall comply with the building code at the time it was constructed.

7. Size. There is no limit on the size of an accessory dwelling unit that is attached to or detached from a primary unit, except that attached and detached accessory dwelling units shall not be larger than the primary unit, if the primary unit is at least 800 square feet or larger, and detached and attached accessory dwelling units shall comply with setback requirements, the required distance between units, open space requirements and maximum lot coverage/FAR requirements applicable to the parcel on which the unit is located..

A. If the primary unit is 800 square feet or smaller, the primary unit’s size shall not prohibit the development of a detached or attached 12 Item 3.

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accessory dwelling unit of at least 800 square feet with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards.

7.8. Height. A detachedn Accessory Dwelling Unit may be at least 18 feet in height, but otherwise shall not exceed the height of maximum height limit of its respective zone.

8.9. Passageway. No Passageway shall be required in conjunction with the construction of an Accessory Dwelling Unit.

9.10. Setback Exceptions. A detached Accessory Dwelling Unit must have a minimum set back of five four feet from side and rear property lines. No setback shall be required for a lawfully constructed garage or other accessory structure in existence prior to execution of this Ordinance that is converted to an Accessory Dwelling Unit, and a setback of no more than four (4) feet from the side and rear lot lines shall be required for an Accessory Dwelling Unit that is constructed above a garage. In the event an Accessory Dwelling Unit is permitted prior to the primary residence, a minimum front set back of 26 feet shall apply. Note: the adopted Fire Code setback standards must be met.

10.11. Parking. The application shall comply with parking provisions of Needles’ Municipal Code Section 111, including parking setback limitations, except as set forth below:

A. One parking space per accessory dwelling unit or per bedroom, whichever is less, of the proposed Accessory Dwelling Unit in addition to those required for the Primary Unit(s).

B. Required parking for the Accessory Dwelling Unit may be uncovered.

C. Off-street parking for an Accessory Dwelling Unit may be in tandem with parking for the Primary Unit or may be allowed in the front setback, unless specific findings are made that such is not feasible based on specific site topographical or fire and life safety conditions.

All parking spaces shall be on an Improved Parking Surface that satisfies City Standards.

D. When a garage, carport, or covered or uncovered parking structure space is demolished in conjunction with the construction of an 13 Item 3.

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Accessory Dwelling Unit, the City does not require that those parking spaces be replaced,.

E. Subsections A through D of this Standard 11 shall not apply to a unit described in subsection 11F below.

F. On-site parking is not required for an Accessory Dwelling Unit in any of the following circumstances:

1. The unit is located within one-half mile of Public Transit.

2. The unit is part of the existing Primary Unit or an existing Accessory Building.

3. When on-street parking permits are required but not offered to the occupant of the unit.

4. When there is a car share vehicle located within one block of the unit.

5. Where the unit is located within an architecturally and historically significant historic district.

4.6. When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed above.

11.12. Feasibility Inspection. Unless the project constitutes new construction, a building inspection shall be performed by the City's Building Division at applicant's cost, and a report establishing the feasibility of the project to meet applicable building and residential codes shall be provided to the Director of Development ServicesDirector, or his/her designee, of Development Services prior to approval of an Accessory Dwelling Unit permit.

12.13. Adequate sanitary service capacity for the additional increment of effluent resulting from the Accessory Dwelling Unit would be available. If the lot is connected to the public sewer system, the applicant has submitted a letter from the appropriate Sanitary District to that effect. If the lot is not connected to the public sewer system, the applicant will need to demonstrate that the individual or alternative sewage disposal system 14 Item 3.

EXHIBIT “A”
serving the lot has adequate capacity to accommodate the proposed Accessory Dwelling Unit.

13.14. The Accessory Dwelling Unit would comply with all applicable Fire District regulations, subject to provisions and limitations set forth in Government Code, Title 7, Division 1, Chapter 13Government Code Section 65852.2.

14.15. The Accessory Dwelling Unit would comply with all applicable Water District regulations, subject to provisions and limitations set forth in Government Code, Title 7, Division 1, Chapter 13Government Code Section 65852.2.

15. For ADUs permitted on or after January 1 2025, owner-occupancy of one of the dwelling units on the parcel (either the primary residence or the accessory dwelling unit) is required. This requirement does not apply to ADUs permitted between January 1, 2021 and December 31, 2024. (g)(f) Standards for Accessory Dwelling Units Created Exclusively through Conversion of Existing Floorspace in a Single-Family Dwelling, Multifamily Structure, or a Accessory Building. (no construction of new square footage)

1. The unit shall be located in one of the following residential zones: R-1, R-2, R3, CRR, , and C-2.

2. The unit shall be created within an existing legal structure (a single-family dwelling or a Detached Accessory Building appurtenant to a single-family dwelling) and may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory structure.

3. The unit shall provide independent exterior access from the Primary Unit.

4. The unit has sufficient setbacks to meet fire safety requirements.

5. One converted ADU is allowed per primary dwelling unit, There shall be no more than one Accessory Dwelling Unit per primary dwelling on a singlefamily lot. notwithstanding the presence of a detached ADU of new construction and/or a JADU. On a multifamily lot, non-livable space may be converted into at least one ADU, and up to 25 percent of the number of existing multifamily dwelling units, if each converted unit complies with the state building standards for dwellings.
15 Item 3.

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6. Rental. The unit may be rented but may not be rented for a period less than 30 consecutive days or used as a Vacation Rental.

7. Feasibility Inspection. A building inspection shall be performed by the City's Building Division at applicant's cost, and a memo establishing the feasibility of the project to meet applicable building and residential codes shall be provided to the Director of Development ServicesDirector, or his/her designee, of Community Development, prior to approval of a permit.

8. For ADUs permitted on or after January 1 2025, owner-occupancy of one of the dwelling units on the parcel (either the primary residence or the accessory dwelling unit) is required. This requirement does not apply to ADUs permitted between January 1, 2021 and December 31, 2024. (h)(g) Standard for Junior Accessory Dwelling Units.

1. The proposed junior accessory dwelling unit would be located in a residential zone, including the R-1, R-2, R-3, CRR and C-2 and CRR zones.

2. One junior accessory dwelling unit is permitted on a single family lot.

3. Owner occupancy of one of the dwelling units on the site (either the primary residence or the junior accessory dwelling unit) is required, unless the owner is a governmental agency, a land trust, or a housing organization. For purposes of this standard, ownership is defined as a majority (i.e., fifty-one percent or greater) interest in the property in question. Property owned in joint tenancy shall be considered a single ownership for any party named.

Property owned in tenancy in common shall be considered a single ownership for the party named, unless shares are specified, in which case ownership requires a majority interest.

4. The junior accessory dwelling unit would be in conformance with the current building codes adopted by the City. A memo prepared following inspection of the premises by the Needles Building Division, documenting the feasibility of the project to meet current building codes, shall be provided to the Director of Development ServicesDirector, or his/her designee, of Community Development prior to approval of a junior accessory dwelling unit permit.

5. The junior accessory dwelling unit would be created within the an existing single-family structure. Enclosed uses within the residence, such as attached garages, are considered a part of the proposed or existing singlefamily residence.existing walls of a single-family dwelling. 16 Item 3.

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6. The junior accessory dwelling unit would have a separate exterior entry from that of the primary residence. An interior entry may also be included.

7. The junior accessory dwelling unit shall at least include an efficiency kitchen, requiring and limited to the following components:

A. A cooking facility with appliances.

8. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU. A sink with a maximum waste line diameter of one-and-a-half (1.5) inches.

A. A cooking facility with appliances that do not require electrical service greater than one hundred-twenty (120) volts. Gas appliances are not permitted.

B. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.

9. The junior accessory dwelling unit would be located on a lot where the primary residence complies with current parking standards for its zone.

10.8. Adequate sanitation (bathroom) facilities are provided, either a) separately for the exclusive use of the junior accessory dwelling unit; or b) shared with the primary residence through internal access from the junior accessory dwelling unit to the primary residence.

11.9. The junior accessory dwelling unit shall comply with applicable requirements of the fire protection district serving the lot, subject to the provisions of Government Code, Title 7, Division 1, Chapter 13Government Code Section 65852.22(d) or successor sections thereto.

12.10. The junior accessory dwelling unit shall comply with applicable requirements of the public water agency serving the lot, subject to the provisions of Government Code, Title 7, Division 1, Chapter 13Government Code Section 65852.22(e) or successor sections thereto.

13. The junior accessory dwelling unit may be rented but shall not be rented for less than thirty (30) consecutive days.
17 Item 3.

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14.11. The property on which the junior accessory dwelling unit is located shall have deed restrictions recorded upon it as set forth below prior to issuance of a building permit for the unit. Said restrictions shall be reviewed and approved by the City Attorney and recorded with the San Bernardino County Recorder's Office.

A. The junior accessory dwelling unit shall not be sold separately from the primary residence , unless the JADU meets all the requirements listed in Government Code Section 65852.26. and shall not be rented for less than thirty (30) consecutive days.

B. The junior accessory dwelling unit shall not exceed five hundred (500) square feet in floor area, shall not be smaller than allowed by applicable building regulations, and shall be entirely contained within an existing single-family structure.

C. The junior accessory dwelling unit shall be considered legal only so long as it or the single-family dwelling in which it is located is owneroccupied, unless the owner is a governmental agency, a land trust or a housing organization. Ownership is defined as a majority (i.e., fiftyone percent or greater) interest in the property in question. Property owned in joint tenancy shall be considered a single ownership for any party named. Property owned in tenancy in common shall be considered a single ownership for the party named, unless shares are specified, in which case ownership requires a majority interest.

D. The restrictions shall be binding upon any successor in ownership of the property and lack of compliance with any provisions of Needles Municipal Code Section 96.08 “C” and “G” may result in legal action against the property owner, including revocation of any right to maintain a junior accessory dwelling unit on the property. (i) Standards for Manufactured Homes and Tiny Homes.

1. Zones. The proposed unit would be located on a lot that contains a proposed or existing dwelling located in one of the following residential zones: R-1, R-2, R-3, CRR.

2. On lots zoned for single family residential use, one ADU is allowed per primary dwelling unit. On lots zoned for multi-family residential use, a maximum of two ADUs are permitted.
18 Item 3.

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3. Rental. The Accessory Dwelling Unit may be rented but may not be rented for a period of less than 30 consecutive days or used as a Vacation Rental.

4. Location on Lot. The Accessory Dwelling Unit shall be detached from the existing dwelling and located on the same lot as the existing dwelling. and shall be separated from the Primary Unit and any Detached Accessory Building a minimum of three feet.

A. Zoning Development Standards. The proposed unit shall comply with development standards for the underlying zone in which it is located, specifically standards for lot coverage, setback, height, and floor area ratio, except as explicitly set forth herein.

5. Separate Kitchen and Bathroom. The proposed Accessory Dwelling Unit shall contain a separate kitchen and bathroom; both the Primary Unit and the Accessory Dwelling Unit shall comply at a minimum with all requirements of the current residential code; and the Accessory Dwelling Unit shall comply with the building code at the time it was constructed.

6. Size. The total area of floorspace for the Detached Accessory Dwelling Unit shall not exceed 1,200 square feet.

7. Height. A detached Accessory Dwelling Unit shall not exceed 15 feet in height.

8. Passageway. No Passageway shall be required in conjunction with the construction of an Accessory Dwelling Unit.

9. Setback Exceptions. A detached Accessory Dwelling Unit must have a minimum set back of five feet from side and rear property lines. No setback shall be required for a lawfully constructed garage or other accessory structure in existence prior to execution of this Ordinance that is converted to an Accessory Dwelling Unit, and a setback of no more than five (5) feet from the side and rear lot lines shall be required for an Accessory Dwelling Unit that is constructed above a garage. In the event an Accessory Dwelling Unit is permitted prior to the primary residence, a minimum front set back of 26 feet shall apply.

10. Parking. The application shall comply with parking provisions of Needles’ Municipal Code Section 111, including parking setback limitations, except as set forth below:
19 Item 3.

EXHIBIT “A”
A. One parking space per accessory dwelling unit or per bedroom, whichever is less, of the proposed Accessory Dwelling Unit in addition to those required for the Primary Unit(s).

B. Required parking for the Accessory Dwelling Unit may be uncovered.

All parking spaces shall be on an Improved Parking Surface.

D. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an Accessory Dwelling Unit, the City does not require that those parking spaces be replaced.

E. Subsections (A) through (D) of this Section 96.08(h)(11) shall not apply to a unit described in subsection (h)(11)(F) below.

F. On-site parking is not required for an Accessory Dwelling Unit in any of the following circumstances:
i. The unit is located within one-half mile of Public Transit. ii. The unit is part of the existing Primary Unit or an existing Accessory Building.
iii. When on-street parking permits are required but not offered to the occupant of the unit.
iv. When there is a car share vehicle located within one block of the unit.

11. Feasibility Inspection. Unless the project constitutes new construction, a building inspection shall be performed by the City's Building Dept. at applicant's cost, and a report establishing the feasibility of the project to meet applicable building and residential codes shall be provided to the Director, or his/her designee, of Development Services prior to approval of an Accessory Dwelling Unit permit.

12. Adequate sanitary service capacity for the additional increment of effluent resulting from the Accessory Dwelling Unit would be available. If the lot is connected to the public sewer system, the applicant has submitted a letter from the appropriate Sanitary District to that effect. If the lot is not 20 Item 3.

EXHIBIT “A”
connected to the public sewer system, the applicant will need to demonstrate that the individual or alternative sewage disposal system serving the lot has adequate capacity to accommodate the proposed Accessory Dwelling Unit.

13. The Accessory Dwelling Unit would comply with all applicable Fire District regulations, subject to provisions and limitations set forth in Government Code Section 65852.2.

14. The Accessory Dwelling Unit would comply with all applicable Water District regulations, subject to provisions and limitations set forth in Government Code Section 65852.2.
21 Item 3.

EXHIBIT “B”

Page 1 of 15 ends

Section 96.00 "Permissible Use Table":

Zones: R1 R2 R3 CRR C1 C2 C3 M1 M2 P

1.00 Residential

1.20 Accessory Dwelling
Units Z Z Z Z Z

1.25 Junior Accessory
Dwelling Units Z Z Z Z
*S Applications that do not comply with the criteria for ministerial review are subject to the review and approval of the Planning Commission through a Special Use Permit w/o a public hearing

96.08 Dwelling Units
(a) Definitions to be Added.

A building that shares a common wall with a main building shall be deemed a part of the main building.

3. "Accessory use." A use incidental, related, and subordinate to the principal legal use of the parcel or lot and located on the same.

4. “Architecturally and historically significant historic district” means a historic district established by the City of Needles.

5. "Attached accessory dwelling unit" means an accessory dwelling unit that shares a common wall with the primary unit, either by being constructed as a physical expansion (i.e., addition) of a primary unit, conversion of an existing garage attached to a primary unit, or installation of a new basement underneath an existing primary unit.

6. "Detached accessory dwelling unit" means an accessory dwelling unit that is constructed as a separate structure from the primary unit or is created Item 3.

EXHIBIT “B”

Page 2 of 15 ends

through conversion (full or partial) of an existing lawfully-constructed detached accessory building into an accessory dwelling unit.

7. "Second Dwelling Unit." A "Second Dwelling Unit" is defined as a permanent dwelling unit that is equivalent to a primary dwelling on the same site. A second dwelling unit provides complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, sanitation, and parking. A second dwelling unit must be detached from the primary dwelling in R1 zones. A second dwelling unit may be attached to or detached from the primary dwelling in R2, R3, and CRR zones.

8. "Floorspace" means the gross floor area as measured to the outside surface of exterior walls, including its living area.

9. “Housing organization” means a trade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the housing development project.

10."Junior accessory dwelling unit." A unit that is no more than 500 square feet in size and contained entirely within an existing single-family structure. Enclosed uses within the residence, such as attached garages, are considered a part of the proposed or existing single-family residence.

A junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the existing structure. For the purposes of life/safety regulations and providing utilities such as water, sewer, power, or other utilities, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit.

11.“Land Trust” means the same as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the California Revenue and Tax Code.

12."Living area" means the interior habitable area of a dwelling unit including the basement and attics but not including a garage or any accessory building or structure.

13."Primary unit" means the building (or portion of the building in cases of an attached accessory dwelling unit) in which the principal residential use of the lot takes place. An accessory dwelling unit cannot constitute the primary unit.

Item 3.

EXHIBIT “B”

Page 3 of 15 ends

14."Public transit" means a signed and designated bus stop, train stop, ferry terminal or other public transit station where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.

15."Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit.

16."Secondary dwelling unit." The predecessor to an accessory dwelling unit under local zoning laws. Secondary dwelling unit permits were issued under local zoning laws in effect after February 3, 1984 and prior to January 1, 2017.

17.“Tiny home” means a detached structure with an enclosed space between 150 and 400 square feet on a permanent foundation used for dwelling purposes that provides complete independent living facilities for one or more persons and is located on the same lot as the primary dwelling (single-family or multifamily) to which it is an accessory use. A tiny home that meets the requirements herein shall be considered an accessory dwelling unit.

18.“Manufactured home” means a structure, transportable in one or more sections, which is built on a permanent chassis and is designed for use with a permanent foundation and attached to the required utilities. (b) Accessory Dwelling Unit (ADU). This section provides for the establishment and reasonable regulation of accessory dwelling units in order to encourage housing opportunities for all segments of the population while ensuring the public health, safety, and welfare.

1. Application and Fee. Application for an accessory dwelling unit permit shall be accompanied by the appropriate fee(s).Impact Fees. Accessory dwelling units built on a lot with an existing primary dwelling unit are exempt from impact fees. Accessory dwelling units built in conjunction with a new primary dwelling unit are subject to the following:

A. For accessory dwelling units less than 750 square feet, no impact fees apply.

B. For accessory dwelling units 750 square feet and larger, the impact fee is proportional relative to the square footage of the primary dwelling unit.

2. Director of the Development Services, or His/Her Designated Replacement, as Review Authority. Applications for accessory dwelling Item 3.

EXHIBIT “B”

Page 4 of 15 ends

units shall be approved or denied ministerially without discretionary review or a public hearing, within 60 days following submission of a complete application and fees, if the proposed site has an existing dwelling unit, otherwise a zoning permit application and fees for a site plan review are required. In the event of a denial, the City shall return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant within 60 days of submission of a complete application.

3. A temporary certificate of occupancy for an accessory dwelling unit may be issued before the certificate of occupancy is issued for the primary residence, with the following conditions: 1) Within 18 months of receiving the temporary certificate of occupancy, a building permit will be in place for the primary dwelling unit and construction completed within 24 months of issuance of building permit; 2) A bond to be in place at the time the temporary Certificate of Occupancy is issued in an amount covering the cost of demolition and removal of the ADU if the primary dwelling unit is not completed within 24 months. Once both units are completed, permanent Certificate of Occupancy will be issued for both units.

4. Building Permits. A building permit shall be required in conjunction with the issuance of an accessory dwelling unit permit if repair, rehabilitation, or other work otherwise requiring a building permit is necessary.

5. Approved Secondary Dwelling Units Still Valid. Any secondary dwelling unit legally established with an approved secondary dwelling unit permit and in continued existence shall be deemed a legal, conforming dwelling unit. Secondary dwelling units established by any such permit shall continue to comply with all zoning requirements for secondary dwelling units in effect at the time of permit approval.

6. Premises Identification. Any assigned street address number for the accessory dwelling unit shall be plainly visible and legible from the street fronting the property as required by the applicable building code.

7. Expiration. Accessory dwelling unit permits issued in compliance with this section shall expire and become null and void 18 months after issuance unless a certificate of occupancy has been issued by the building division.

8. Reporting of Violations. All reporting of accessory dwelling unit permit or secondary dwelling unit permit violations shall be submitted in writing to the Director of Development Services, or his/her designee, and the Director of Development Services, or his/her designee, shall notify the Item 3.

EXHIBIT “B”

Page 5 of 15 ends

owner of record of the property that a complaint has been registered, within ten calendar days from receipt of any such complaint. The Director of Development Services, or his/her designee, shall investigate and issue a written report to the complainant within thirty days from the date of the issuance of the notice outlining the status of any alleged violation and the steps that have been requested of the owner of record to remedy the situation.

9. Density. Pursuant to California Government Code, Title 7, Division 1, Chapter 13, no accessory dwelling unit approved under these provisions shall be considered in calculating the density of the lot allowed by the land use designation contained in the land use element of the Needles General Plan, and accessory dwelling units are deemed a residential use that is consistent with the existing general plan and zoning for the lot. (c) Junior Accessory Dwelling Unit (JADU). This section provides for the establishment and reasonable regulation of junior accessory dwelling units to encourage housing opportunities for all segments of the population while ensuring the public health, safety, and welfare.

1. Zoning Permit Required. No junior accessory dwelling unit shall be established or used unless a junior accessory dwelling unit permit has been issued by the City.

2. Application and Fee. Application for a junior accessory dwelling unit permit shall be accompanied by the appropriate filing fee. JADUs are exempt from impact fees.

3. Director of the Development Services, or His/Her Designee, as Review Authority. Applications for junior accessory dwelling unit shall be approved or denied ministerially without discretionary review or a public hearing, within 60 days following submission of complete application and fees. This approval or denial shall occur no more than 60 days following submission of a complete application. In the event of a denial, the City shall return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant.

Item 3.

EXHIBIT “B”

Page 6 of 15 ends

7. Reporting of Violations. All reporting of junior accessory dwelling unit violations shall be submitted in writing to the Director of Development Services, or his/her designee, The Director of Development Services, or his/her designee, shall notify the owner of record of the property that a complaint has been registered within ten calendar days from receipt of any such complaint. The Director of Development Services, or his/her designee, shall investigate and issue a written report to the complainant within thirty days from the date of the issuance of the notice outlining the current status of any alleged violation and the steps that have been requested of the owner of record to remedy the situation. (d) Manufactured Homes and Tiny Homes. Manufactured homes and tiny homes are subject to all of the following provisions:

1. Shall meet the definition of ADU in Government Code section 66313, subdivision (a), and must comply with the standards of, and be approved as one of the following types of structures:

A. a HUD-Code manufactured home (MH),
B. a California Residential Code home or
C. a California Building Code home.

2. Shall be secured to a permanent foundation.

3. Shall have at least 150 square feet of enclosed space.

4. Shall be directly connected to an approved water source, an onsite wastewater treatment system or sanitary sewer system, and electric utilities. Holding tanks that are incorporated into the original design of the structure shall not be used for the purposes of waste storage and shall be directly connected to the approved onsite wastewater treatment system or sanitary sewer.

Item 3.

EXHIBIT “B”

Page 7 of 15 ends

5. Mechanical equipment shall be incorporated into the original design of the structure and shall not be located on the roof or added on to the exterior of the unit, except for HVAC units.

6. Shall have the following design elements:

A. Shall not include corrugated aluminum or fiberglass siding and shall not be a shipping container or cargo container.

C. Windows shall be at least double pane glass and labeled for building use and shall include exterior trim.

7. Application and Fee. Application for an accessory dwelling unit (manufactured home or tiny home) permit shall be accompanied by the appropriate fee(s).

8. Impact Fees. Accessory dwelling units built on a lot with an existing primary dwelling unit are exempt from impact fees. Accessory dwelling units added in conjunction with a new primary dwelling unit are subject to the following:

A. For accessory dwelling units less than 750 square feet, no impact fees apply.

B. For accessory dwelling units 750 square feet and larger, the impact fee is proportional relative to the square footage of the primary dwelling unit.

9. Director of the Development Services, or his/her designated replacement, as review authority. Applications for accessory dwelling units shall be approved or denied ministerially without discretionary review or a public hearing, within 60 days following submission of complete application and fees, if the proposed site has an existing dwelling unit, otherwise a zoning permit application and fees for a site plan review are required. In the event of a denial, the City shall return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant.

Item 3.

EXHIBIT “B”

Page 8 of 15 ends

10.Grant of Accessory Dwelling Unit Permit. To be approved and occupied as an ADU, a tiny home must meet the definition of ADU in Government Code section 66313, subdivision (a), and must comply with the standards of, and be approved as one of the following types of structures:

A. a HUD-Code manufactured home (MH),
B. a California Residential Code home or
C. a California Building Code home.

11.Building Permits. A building permit shall be required in conjunction with the issuance of an accessory dwelling unit permit if repair, rehabilitation, or other work otherwise requiring a building permit is necessary.

12.Approved Secondary Dwelling Units Still Valid. Any secondary dwelling unit legally established with an approved secondary dwelling unit permit and in continued existence shall be deemed a legal, conforming dwelling unit. Secondary dwelling units established by any such permit shall continue to comply with all zoning requirements for secondary dwelling units in effect at the time of permit approval.

13.Premises Identification. Any assigned street address number for the accessory dwelling unit shall be plainly visible and legible from the street fronting the property as required by the applicable building code.

14.Expiration. Accessory dwelling unit permits issued in compliance with this section shall expire and become null and void 18 months after issuance unless a certificate of occupancy has been issued by the building division.

15.Revocation. Upon written notice to the holder of an accessory dwelling unit permit or a secondary dwelling unit permit, and a hearing before the Director of Development Services, or his/her designee, the Director of Development Services may revoke or modify any accessory dwelling unit permit or secondary dwelling unit permit on any one or more of the following grounds:

A. That the approval was based on false information submitted by the applicant;
B. That the use for which such approval was granted has ceased to exist or has been suspended for one year or more;
C. That the permit granted is being or recently has been exercised contrary to the terms or conditions of such approval, or in violation of any statute, ordinance, law or regulation.

Item 3.

EXHIBIT “B”

Page 9 of 15 ends

16.Reporting of Violations. All reporting of accessory dwelling unit permit or secondary dwelling unit permit violations shall be submitted in writing to the Director of Development Services, or his/her designee, and the Director of Development Services, or his/her designee, shall notify the owner of record of the property that a complaint has been registered, within ten calendar days from receipt of any such complaint. The Director of Development Services, or his/her designee, shall investigate and issue a written report to the complainant within thirty days from the date of the issuance of the notice outlining the status of any alleged violation and the steps that have been requested of the owner of record to remedy the situation.

17.Density. Pursuant to Government Code, Title 7, Division 1, Chapter 13, no accessory dwelling unit approved under these provisions shall be considered in calculating the density of the lot allowed by the land use designation contained in the land use element of the Needles General Plan, and accessory dwelling units are deemed a residential use that is consistent with the existing general plan and zoning for the lot. (e) Standards for Accessory Dwelling Units Created Through Construction of or Additions to a Accessory Structure or by Construction of or Additions to an Existing or Proposed Dwelling. (construction of new square footage)

1. Zones. The proposed unit would be located on a lot that contains a proposed or existing dwelling located in one of the following residential zones: R-1, R-2, R-3, CRR, and C-2.

2. Number of ADUs. One converted ADU is allowed per primary dwelling unit, notwithstanding the presence of a detached ADU of new construction and/or a JADU. On lots zoned for multi-family residential use, a maximum of eight ADUs detached from the multifamily structure are permitted, provided the number of ADUs does not exceed the number of existing units on the lot.

3. Rental. The Accessory Dwelling Unit may be rented but may not be rented for a period of less than 30 consecutive days.

Item 3.

EXHIBIT “B”

Page 10 of 15 ends

5. Zoning Development Standards. The proposed unit shall comply with development standards for the underlying zone in which it is located.

Notwithstanding the underlying development standards, the City shall not prohibit the development of an attached or detached ADU of up to 800 square feet with four side and rear setbacks.

A. If the primary unit is 800 square feet or smaller, the primary unit’s size shall not prohibit the development of a detached or attached accessory dwelling unit of at least 800 square feet with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards.

8. Height. An Accessory Dwelling Unit may be at least 18 feet in height, but otherwise shall not exceed the height of maximum height limit of its respective zone.

9. Passageway. No Passageway shall be required in conjunction with the construction of an Accessory Dwelling Unit.

10.Setback Exceptions. A detached Accessory Dwelling Unit must have a minimum set back of four feet from side and rear property lines. No setback shall be required for a lawfully constructed garage or other accessory structure in existence prior to execution of this Ordinance that is converted to an Accessory Dwelling Unit, and a setback of no more than four (4) feet from the side and rear lot lines shall be required for an Accessory Dwelling Unit that is constructed above a garage.

11.Parking. The application shall comply with parking provisions of Needles’ Municipal Code Section 111, including parking setback limitations, except as set forth below:

Item 3.

EXHIBIT “B”

Page 11 of 15 ends

A. One parking space per accessory dwelling unit or per bedroom, whichever is less, of the proposed Accessory Dwelling Unit in addition to those required for the Primary Unit(s).

B. Required parking for the Accessory Dwelling Unit may be uncovered.

D. When a garage, carport, or covered or uncovered parking space is demolished in conjunction with the construction of an Accessory Dwelling Unit, the City does not require that those parking spaces be replaced.

E. Subsections A through D of this Standard 11 shall not apply to a unit described in subsection 11F below.

F. On-site parking is not required for an Accessory Dwelling Unit in any of the following circumstances:

1. The unit is located within one-half mile of Public Transit.

2. The unit is part of the existing Primary Unit or an existing Accessory Building.

3. When on-street parking permits are required but not offered to the occupant of the unit.

4. When there is a car share vehicle located within one block of the unit.

5. Where the unit is located within an architecturally and historically significant historic district.

6. When a permit application for an accessory dwelling unit is submitted with a permit application to create a new singlefamily dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed above.

Item 3.

EXHIBIT “B”

Page 12 of 15 ends

12.Feasibility Inspection. Unless the project constitutes new construction, a building inspection shall be performed by the City's Building Division at applicant's cost, and a report establishing the feasibility of the project to meet applicable building and residential codes shall be provided to the Director of Development Services, or his/her designee, prior to approval of an Accessory Dwelling Unit permit.

13.Adequate sanitary service capacity for the additional increment of effluent resulting from the Accessory Dwelling Unit would be available. If the lot is connected to the public sewer system, the applicant has submitted a letter from the appropriate Sanitary District to that effect. If the lot is not connected to the public sewer system, the applicant will need to demonstrate that the individual or alternative sewage disposal system serving the lot has adequate capacity to accommodate the proposed Accessory Dwelling Unit.

14.The Accessory Dwelling Unit would comply with all applicable Fire District regulations, subject to provisions and limitations set forth in Government Code, Title 7, Division 1, Chapter 13.

15.The Accessory Dwelling Unit would comply with all applicable Water District regulations, subject to provisions and limitations set forth in Government Code, Title 7, Division 1, Chapter 13.
(f) Standards for Accessory Dwelling Units Created Exclusively through Conversion of Existing Floorspace in a Single-Family Dwelling, Multifamily Structure, or a Accessory Building. (no construction of new square footage)

1. The unit shall be located in one of the following residential zones: R-1, R2, R-3, CRR, and C-2.

3. The unit shall provide independent exterior access from the Primary Unit.

4. The unit has sufficient setbacks to meet fire safety requirements.

5. One converted ADU is allowed per primary dwelling unit, notwithstanding the presence of a detached ADU of new construction and/or a JADU. On a multifamily lot, non-livable space may be converted into at least one ADU, and up to 25 percent of the number of existing multifamily dwelling units, if Item 3.

EXHIBIT “B”

Page 13 of 15 ends

each converted unit complies with the state building standards for dwellings.

6. Rental. The unit may be rented but may not be rented for a period less than 30 consecutive days.

7. Feasibility Inspection. A building inspection shall be performed by the City's Building Division at applicant's cost, and a memo establishing the feasibility of the project to meet applicable building and residential codes shall be provided to the Director of Development Services, or his/her designee, prior to approval of a permit.
(g) Standard for Junior Accessory Dwelling Units.

1. The proposed junior accessory dwelling unit would be located in the R-1, R-2, R-3, and CRR zones.

2. One junior accessory dwelling unit is permitted on a single family lot.

4. The junior accessory dwelling unit would be in conformance with the current building codes adopted by the City. A memo prepared following inspection of the premises by the Needles Building Division, documenting the feasibility of the project to meet current building codes, shall be provided to the Director of Development Services, or his/her designee, prior to approval of a junior accessory dwelling unit permit.

5. The junior accessory dwelling unit would be created within an existing single-family structure. Enclosed uses within the residence, such as attached garages, are considered a part of the proposed or existing single-family residence.

6. The junior accessory dwelling unit would have a separate exterior entry from that of the primary residence. An interior entry may also be included.

Item 3.

EXHIBIT “B”

Page 14 of 15 ends

7. The junior accessory dwelling unit shall at least include an efficiency kitchen, requiring the following components:

A. A cooking facility with appliances.

B. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU.

8. Adequate sanitation (bathroom) facilities are provided, either a) separately for the exclusive use of the junior accessory dwelling unit; or b) shared with the primary residence through internal access from the junior accessory dwelling unit to the primary residence.

9. The junior accessory dwelling unit shall comply with applicable requirements of the fire protection district serving the lot, subject to the provisions of Government Code, Title 7, Division 1, Chapter 13.

10.The junior accessory dwelling unit shall comply with applicable requirements of the public water agency serving the lot, subject to the provisions of Government Code, Title 7, Division 1, Chapter 13.

11.The property on which the junior accessory dwelling unit is located shall have deed restrictions recorded upon it as set forth below prior to issuance of a building permit for the unit. Said restrictions shall be reviewed and approved by the City Attorney and recorded with the San Bernardino County Recorder's Office.

A. The junior accessory dwelling unit shall not be sold separately from the primary residence, unless the JADU meets all the requirements listed in Government Code Section 65852.26.

C. The junior accessory dwelling unit shall be considered legal only so long as it or the single-family dwelling in which it is located is owner-occupied, unless the owner is a governmental agency, a land trust or a housing organization. Ownership is defined as a majority (i.e., fifty-one percent or greater) interest in the property in question. Property owned in joint tenancy shall be considered a single ownership for any party named. Property owned in tenancy in common shall be considered a single ownership for the party Item 3.

EXHIBIT “B”

Page 15 of 15 ends

named, unless shares are specified, in which case ownership requires a majority interest.

Item 3.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: October 22, 2024
Title: Approve the 2023 Greenhouse Gas Emissions Allowance Transaction from CP Energy Marketing LP and Evolution Market Background: Assembly Bill 32 requires California to return to 1990 levels of greenhouse gas emissions by 2020. Under California's Regulation for the Mandatory Reporting of Greenhouse Gas Emissions (MRR), industrial sources, fuel suppliers, and electricity importers must report their annual GHG emissions to the California Air Resources Board (CARB). For reporters subject to the California Cap-and-Trade Program, submitted data are verified by a CARS-accredited independent third-party verifier.

Every year, covered entities turn in allowances and offsets for 30 percent of the previous year's emissions. The City of Needles meets this requirement annually by utilizing the free allocation of allowances provided by CARB.

In each compliance period, covered entities turn in the remaining 70 percent allowances and a limited number of offsets covering the remainder of emissions in that compliance period. To meet the remaining 70 percent requirements entities may participate in CARB auctions or purchase allowances and offsets from the open market. For the upcoming compliance period ending in November 1, 2024 staff purchased 2021-2022 allowances and offsets to meet regulatory requirements in June 2024 for $1,138,090. For 2023 the city had an obligation of 16,434 allowances. The total cost of GHG allowances and offsets for the triannual compliance period (2021-2023) was $1,758,868.14.

The Board of Public Utilities approved the requested action at the regularly scheduled meeting on October 15, 2024.

Fiscal Impact: Evolution Markets located the vintage year 2023 allowances at $37.40/allowance. The cost for the allowances to Capital Power is $614,631.60 and the broker fee to Evolution Markets is 1% of the transaction for a cost of $6,146.32. The adopted FY 25 electric budget included funds to cover this transaction for the upcoming compliance period.

Environmental Impact: Offsets reduce CO2e emissions generated by facilities.

Recommended Action: Approve the 2023 Greenhouse Gas Emissions Allowance Transaction from CP Energy Marketing LP ($614,631.60) and Evolution Market ($6,146.32) for a total amount not to exceed $620,778 to be funded from the adopted FY25 electric budget Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:

Approved: Not Approved: Tabled: Other:

Agenda Item: ____________
10/16/2024
10/16/2024
Item 4.

Docusign Envelope ID: 7B3EA031-8971-4DA9-8E9C-BBB15BB53F41 Item 4.

APPROVALS
OriginatorLegalRiskCreditContracts
Standard

APPROVALS
OriginatorRiskCreditContracts
Energy Plan

APPROVALS
OriginatorLegalEnvironmentRiskCreditContracts
Docusign Envelope ID: 7B3EA031-8971-4DA9-8E9C-BBB15BB53F41 10/10/2024James Renouf
Director, US/ON Env.& Origination
Item 4.

TRANSACTION CONFIRMATION
We hereby confirm, that acting as broker on your instruction, we have arranged the following transaction on your behalf:

We trust that the above accurately reflects your understanding of the referenced transaction. Thank you for your business.

The Buyer and Seller (each a Party) understand that Evolution Markets Inc. ("Evolution") has acted as broker for both Parties hereto solely for the purpose of introducing the Parties with respect to the herein confirmed transaction ("the Transaction"). Each Party acknowledges and agrees that (i) it is capable of understanding the Transaction, assessing the merits thereof, and, in fact, understands and accepts the terms and conditions of the Transaction and also assumes the risks attendant thereto; (ii) each Party (and not Evolution) is responsible for evaluating the merits of the Transaction and the creditworthiness of the other Party thereto; (iii) Evolution shall not be responsible for either Partys performance of its respective obligations with respect to the Transaction nor does Evolution make any representations or assume any liability in respect of the creditworthiness, financial condition, or legal capacity of a Party; and (iv) Evolution shall have no liability to either Party in the event a Party is prohibited, restricted, or otherwise prevented from entering into the Transaction or if the Transaction is voided or rejected for any reason, including, without limitation, by an exchange or either Party's clearing facility.

All aspects and terms of the Transaction were determined and agreed to solely by the Parties hereto and adherence to the terms of the Transaction is strictly the obligation of the Parties. Each Party further agrees to hold Evolution, its affiliates, officers, directors, employees, agents, and successors harmless from any and all liabilities and/or damages that may arise from or in connection with a dispute between the Parties concerning the Transaction.

The Parties should confirm their acknowledgement of and agreement to the terms and conditions of the Transaction directly to their respective counterparty.

To: Rainie Torrance
City of Needles
Trade Date: 2024-10-09 11:04 EST
Trade Type: California Carbon Allowance (CCA)
Transaction #: 637275
Buyer: City of Needles
Seller: CP Energy Marketing LP.

Vintage: 2023 or earlier
Delivery: Delivery to occur promptly upon execution of a contract.

Settlement: As agreed between the counter-parties.

Volume: 16,434 CCA(s)
Price: 37.40 USD per CCA(s) Total Price: 614,631.60 USD Contract Detail: This transaction is subject to contract and credit. Buyer and Seller shall act in good faith to promptly execute a purchase and sale agreement.

Total Commission: 6,146.31 USD
Counterparty: CP Energy Marketing LP.

James Renouf
[email protected]
Gulf Canada Square
Suite 1200, 401-9th Ave SW
Calgary, Alberta T2P 3C5
Canada
P: 403.717.8930
10 Bank Street, Suite 410, White Plains, NY 10606 ::: tel: 914-323-0206 : fax: 914-328-3701 Item 4.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: October 22, 2024
Title: Accept the bid of Raftelis Financial Consultants, Inc. to prepare a Comprehensive Electric, Water, and Wastewater Cost of Service Ratemaking Study at a cost not to exceed $98,774 utilizing the adopted FY25 NPUA budget
Background: The City of Needles issued a solicitation for proposals from qualified firms to conduct a Rate Study to assist in determining how the City funds the administration, operation, maintenance, capital replacement, and improvement of its electric, water, and wastewater systems. The City is seeking a multi-year plan to align revenue with expenses, including ongoing maintenance, repairs, and upgrades to infrastructure and at the time set for bid opening on October 1, 2024, only one bid had been received from Raftelis Financial Consultants, Inc.

The study will evaluate all current electric, water, and wastewater rates, system revenue generation, and full cost recovery. The study will provide recommendations for a revenue structure that will comply with all federal, state, and local regulations, and will meet all debt-service requirements.

The electric entity will present different potential rate structures.

The City anticipates submission of a draft Rate Study by June 2025. Following the acceptance of the draft rate study, the consultant will provide presentations to the Board of Public Utilities and the City Council within one to two months. A final report will be prepared based on input received during these presentations. If necessary and approved, a new rate structure would take effect on October 1, 2025.

The Board of Public Utilities approved the requested action at the regularly scheduled meeting on October 15, 2024.

Fiscal Impact: The adopted FY25 NPUA budget allocated funds for Electric, Water, and Wastewater to cover the 2024 Rate Study.

Environmental Impact: None
Recommended Action: Accept the bid of Raftelis Financial Consultants, Inc. to prepare a Comprehensive Electric, Water, and Wastewater Cost of Service Ratemaking Study at a cost not to exceed $98,774 utilizing the adopted FY25 NPUA budget.

Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:

Approved: Not Approved: Tabled: Other:

Agenda Item: ____________
10/16/2024
10/16/2024
Item 5.

RAFTELIS 1
October 1, 2024
Raftelis Financial Consultants, Inc.

Todd Cristiano
445 S Figueroa Street, Suite 1925, Los Angeles, CA 90071 303.305.1138
30,014
34,380
34,380
Item 5.

City of Needles
Electric, Water & Wastewater Utility Cost of Service
Rate Making Study
EL2501 / PROPOSAL / OCTOBER 1, 2024
Item 5.
445 S Figueroa Street, Suite 1925, Los Angeles, CA 90071 www.raftelis.com
October 1, 2024
City of Needles
817 3rd Street
Needles, California 92363
Subject: Proposal for Electric, Water & Wastewater Utility Cost of Service Rate Making Study (RFP No. EL2501)
Dear Selection Committee:

Financial sufficiency, water and power supply resiliency, and fair and equitable rate structures. This is what we believe to be at the forefront of this rate study. And you’re not alone, many utilities across Southern California and your neighbors in Arizona are facing similar challenges. This rate study with Raftelis Financial Consultants, Inc. (Raftelis) and K. R. Saline & Associates, PLC (KRSA) as your advisors will ensure the utilities surpass the customer expectations for reliable utility services while promoting the City’s internal goals.

Raftelis was established in 1993 to provide financial, rate, and management consulting services to water, wastewater, and electric utilities with the highest levels of quality and customer service. We have offices nationwide including California where we partner with utilities all across the state. There’s more on us and KRSA in the following pages.

Our approach to the project will directly benefit the City by helping you achieve the goals of this study, and here are the key factors that support this:

Project Management. Effective project management means proactive communication and keeping staff upto-date will the study’s progress. However, we realize that staff’s time is at a premium. We recognize this and have tailored our approach to make the most efficient use of your time.

Project Team. We have selected key consultants who align with the expertise required for this project. This includes California Proposition 218 specialists, cost-of-service experts, and seasoned industry professionals who are readily available to you. Our subconsultant, KRSA, brings extensive electric experience and regional knowledge to help navigate the complexities of electric rate-setting." Issue Prevention. With our services, you are investing in reduced risks, less rework, and higher compliance with industry standards. The potential pitfalls of choosing less experienced consultants can lead to costly mistakes that we help you avoid. To accomplish this, we believe in exploring all ideas and collaborating with you to identify the most actionable and politically viable solutions that serve both the utility and its customers.

I will serve as the Project Manager for this engagement. My 25 years’ experience in the utility industry both as a consultant and as the Rates Manager at Denver Water will provide the City with the level of expertise and quality Item 5.
445 S Figueroa Street, Suite 1925, Los Angeles, CA 90071 www.raftelis.com
expected during this study. Brian Bass will serve as the Assistant Project Manager for water and wastewater. Brian has 19 years of experience in utility financial consulting and water and wastewater engineering design. KRSA is our subconsultant for the electric scope of work, and Ashley Blank will serve as the Assistant Electric Project Manager.

Finally, we have included Subject Matter Experts who are detailed in the organization chart. Of particular importance is Amanda Guci, who helps lead Raftelis’ energy division. She will serve as a link between Raftelis and KRSA sharing her experience and expertise as needed.

We are eager to work with you and believe our team and experience will result in a successful outcome while showcasing the financial and operational strength of the utilities.

I am eager to discuss this opportunity with you in more detail and to demonstrate how Raftelis can help you achieve your financial and rate objectives. Please feel free to contact me at 303.305.1138 or [email protected] if you have any questions.

Sincerely,
Todd Cristiano, Vice President
445 S Figueroa Street, Suite 1925, Los Angeles, CA 90071 Item 5.

Table of
Contents
A. Company Overview ............................ 1
B. Project Team ....................................... 4 C. References .......................................... 8 D. Project Development Experience .... 15
E. Terms ................................................. 16 F. Exceptions ......................................... 24 Appendix A: Resumes .......................... 26
Appendix B: Relevant License ............. 43
Diversity and inclusion
are an integral part of
Raftelis’ core values.

We are committed to doing our part to fight
prejudice, racism, and discrimination by
becoming more informed, disengaging with
business partners that do not share this
commitment, and encouraging our
employees to use their skills to work toward
a more just society that has no barriers to
opportunity.

Raftelis is registered
with the U.S. Securities
and Exchange
Commission (SEC) and
the Municipal Securities
Rulemaking Board
(MSRB) as a Municipal
Advisor.

Registration as a Municipal Advisor is a
requirement under the Dodd-Frank Wall
Street Reform and Consumer Protection
Act. All firms that provide financial forecasts
that include assumptions about the size,
timing, and terms for possible future debt
issues, as well as debt issuance support
services for specific proposed bond issues,
including bond feasibility studies and
coverage forecasts, must be registered with
the SEC and MSRB to legally provide
financial opinions and advice. Raftelis’
registration as a Municipal Advisor means
our clients can be confident that Raftelis is
fully qualified and capable of providing
financial advice related to all aspects of
financial planning in compliance with the
applicable regulations of the SEC and the
MSRB.

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RAFTELIS 1
A. COMPANY OVERVIEW
A. Company Overview
Local government and utility leaders partner with Raftelis to transform their organizations by enhancing performance, planning for the future, identifying top talent, improving their financial condition, and telling their story. We’ve helped more than 700 organizations in the last year alone.

We believe that Raftelis is the right fit for this project.

We provide several key factors that will benefit the
City and help to make this project a success.

RESOURCES & EXPERTISE: This project will require the
resources necessary to effectively staff the project and the skillsets to complete all of the required components. With more than 180 consultants, Raftelis has the largest water-industry financial and management consulting practice in the nation, including many of the industry’s leading rate consultants and experts in key related areas, like stakeholder engagement and data analytics. Our depth of resources will allow us to provide the City with the technical expertise necessary to meet your objectives.

DEFENSIBLE RECOMMENDATIONS: When your elected officials and customers are considering the validity of recommended changes, they want to be confident that they were developed by experts using the latest industry standard methodology. Our staff are involved in shaping industry standards by chairing committees within the American Water Works Association (AWWA) and the Water Environment Federation (WEF) and co-authoring many industry-standard books regarding utility finance and rate setting. Being so actively involved in the industry will allow us to keep the City informed of emerging trends and issues and to be confident that our recommendations are insightful and founded on sound industry principles. In addition, with Raftelis’ registration as a Municipal Advisor, you can be confident that we are fully qualified and capable of providing financial advice related to all aspects of utility financial planning in compliance with federal regulations.

HISTORY OF SIMILAR SUCCESSES: An extensive track record of past similar work will help to avoid potential pitfalls on this project and provide the know-how to bring it across the finish line. Raftelis staff has assisted 1,700+ local governments and utilities throughout the U.S. with financial and rate consulting services with wide-ranging needs and objectives. Our extensive experience will allow us to provide innovative and insightful recommendations to the City and will provide validation for our proposed methodology ensuring that industry best practices are incorporated.

USER-FRIENDLY MODELING: A modeling tool that your staff can use for scenario analysis and financial planning now and into the future will be key for the City going forward. Raftelis has developed some of the most sophisticated yet user-friendly financial/rate models available in the industry. Our models are tools that allow us to examine different policy options and cost allocations and their financial/customer impacts in real time. We offer model options including Microsoft Excel-based and web-based tools that are developed with the expectation that they will be used by the client as a financial planning tool long after the project is complete.

Choosing the right partner
is about more than just the
initial cost; it's about
ensuring the best possible
outcome for your utilities.

We are committed to
delivering unmatched value
and sustainable results that
justify the investment in our
services.

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RAFTELIS 2
EXPERTS ON CALIFORNIA REGULATORY REQUIREMENTS: This expertise will allow the City to be confident that our recommendations take into account all of these regulatory requirements. The regulatory environment in California has become more stringent due to Proposition 218. Besides developing well-thought-out financial plans, Raftelis staff members are very knowledgeable about these regulations and have made presentations on this subject at various industry conferences. In addition, we are frequently called on to be expert witnesses regarding these regulatory matters.

COMPANY OVERVIEW INFORMATION

1. & 6. Year founded and number of continuous years and length of time and years during which the Proposer has provided the Services contemplated by this RFP (longevity) 1993 (31 years)

2. Ownership status (public or private company, LLC, LLP, S-Corp, Sole Proprietor) S- Corporation

3. Federal tax identification number
20-1054069

4. & 5. Name, address, telephone number, and title of the person(s) whom the CITY can contact about the Proposal and who will serve as primary Proposer contact Todd Cristiano, Vice President
445 S Figueroa Street, Suite 1925, Los Angeles, CA 90071 / P: 303.305.1138 / E: [email protected]

ADDITIONAL COMPANY OVERVIEW INFORMATION
Names of Principals
Peiffer Brandt (President and CEO) and William Stannard, PE (Chair Emeritus and Executive Vice President) Number of Employees
218 employees
Client base
Local government and utilities
Areas of specialization
• Finance: Meet your goals while maintaining a financially sustainable organization • Organization: Plan for long-term sustainability and operate with maximum efficiency • Communication: Communicate strategically to build an informed, supportive community • Technology: Use your data and technology to improve experience and gain valuable insights • Strategic planning: Set the direction for the future of your organization and community • Executive recruitment: Identify top talent to lead local governments and utilities Stability and financial strength
Raftelis is financially stable and has the resources to provide the requested services to the City in a satisfactory manner. Raftelis has experienced steady growth throughout our 31 years of successfully providing consulting Item 5.

RAFTELIS 3
services to hundreds of public agencies across the country. During our 31-year history, we have produced a consistent annual revenue stream and positive net income in every year. Upon request, we would be willing to provide information regarding our tax filings from our accountant, Dixon Hughes Goodman, or regarding our financial activity and current financial position from our bank, First Citizens Bank, if requested. We would ask that all financial information provided be kept confidential.

OUR SUBCONSULTANT
K. R. Saline & Associates,

PLC (KRSA)
The principals of KRSA have provided ongoing consulting engineering services and management consulting to their clients regarding their long-term and short-term electric, water, and gas operations for over 20 years. KRSA has performed various engineering and economic analyses for these entities and has represented their interests in front of numerous federal and state agencies. KRSA makes recommendations to the management and governing bodies of its clients and negotiates necessary programs and policies on their behalf. The continuity of providing ongoing services for their clients enables KRSA to provide quality services to our clients efficiently and with attention to the specific details of their unique operations. KRSA staff includes registered professional engineers, technicians, utility operations specialists, and financial specialists, as well as administrative personnel. They employ a horizontal management structure that empowers its employees and encourages cross-training and discussion across the functional areas of the company.

Project Leadership
Our Project Manager, Todd Cristiano, has broad experience leading rate studies and similar projects. Todd is a co-instructor for the American Water Works Association Fundamentals of Rate Setting multi-day course, hosted twice a year. Todd also brings utility experience to this project serving as the previous Rate Manager at Denver Water.

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RAFTELIS 4
B. PROJECT TEAM
B. Project Team
We have developed a team of consultants who specialize in the specific elements that will be critical to the success of the City’s project. Our team includes senior-level professionals to provide experienced project leadership with support from talented consultant staff. This close-knit group has frequently collaborated on similar successful projects, providing the City with confidence in our capabilities.

1. Project Team Organization: Below, we have included an organizational chart showing the structure of our project team. On the following page we provided brief qualifications for each team member.

2. Resumes: In Appendix A, we have included resumes for each of our team members as well as a description of their role on the project.

3. Relevant Licenses: Though there are no specific license to conduct the services, we have provided our Secretary of State registration in Appendix B.

City of Needles

PROJECT MANAGER
Todd Cristiano ●

WATER & WASTEWATER

ASSISTANT PROJECT

MANAGER
Brian Bass ●

ANALYST
Lindsay Roth ●

ELECTRIC

ASSISTANT PROJECT MANAGER
Ashley Blank ●

ANALYST
Dan Pritchard ●

PROJECT ADVISORS
Amanda Guci ●
Kent Simer ●
Jeffrey Woner ●
Dennis Delaney, PE (AZ) ●
PROPOSITION 218 SUBJECT

MATTER EXPERT
Steve Gagnon, PE (AZ) ●
● Raftelis
● KRSA
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RAFTELIS 5
Todd Cristiano | Project Manager | Vice President (Raftelis) Role: Responsible for overall project accountability and quality assurance. Provide input and guidance to ensure exceptional rate change communications for this project for each utility study. Lead presenter on all water and wastewater-related meetings and presentations.

Career/Experience Highlights:
• 25 years of experience with water, wastewater, electric cost of service and rates • Former Rates Manager for Denver Water
• Instructor for AWWA’s biannual Rate-Setting Essentials seminar • Past chair and member of AWWA’s Rates and Charges Committee/Lead for the update of the AWWA M1 Manual, Principles of Rates, Charges, and Fees
Education: Bachelor of Science Chemical Engineering; Master of Business Administration Key Clients: San Diego (CA), Milpitas (CA), Manteca (CA), Crestview Mutual Water Company (CA), Santa Cruz (CA), Scotts Valley (CA)
Areas of Competence: Water, wastewater, solid waste, and electric financial planning; Cost-of-service & rate structure studies; Economic feasibility analyses, Impact fee studies - utility & non-utility; Budget processes; Economic feasibility analyses
Brian Bass | Water and Wastewater Assistant Project Manager | Manager (Raftelis) Role: Oversee the day-to-day operations and provide technical direction for water and wastewater.

Reports to the Project Manager and main contact with the City’s utility project team. Brian, along with Todd, will be the primary points of contact with the client.

Career/Experience Highlights:
• 20 years of experience in consulting providing financial, project management, and engineering services • Vice-Chair of AWWA CA-NV Financial Management Committee • Member of the AWWA Rates and Charges Committee and one of the co-authors for the update of the AWWA M1 Manual, Principles of Rates, Charges, and Fees
Education: Bachelor of Science Agricultural and Biological Engineering, Master of Business Administration Key Clients: Scottsdale Water (AZ), Los Angeles County Waterworks District (CA), Ontario (CA), Sacramento (CA), Whittier (CA), Columbus (OH), Washington Suburban Sanitary Commission (MD) Areas of Competence: Water and wastewater cost of service and rate structure studies; capacity fee studies; financial capability assessment and affordability studies; bond feasibility studies; economic feasibility studies Lindsay Roth | Water and Wastewater Analyst | Consultant (Raftelis) Role: Will work at the direction of Todd and Brian in conducting analyses and preparing deliverables for water and wastewater portion of the project.

Career/Experience Highlights:
• Four years of experience providing water and wastewater financial services • Contributed to financial models and analyses for water and wastewater rate studies as well as bill impact analyses
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RAFTELIS 6
Education: Bachelor of Science Earth and Environmental Science, Master of Environmental Management Water Resources Management
Key Clients: Thousand Oaks (CA); Ventura (CA); San Benito County Water District (CA); Coronado (CA) Area of Competence: Water, wastewater, and recycled water financial planning, cost of service analysis, and rate design studies; drought rate studies; groundwater sustainability agency (GSA) fee studies; capacity fee studies Steve Gagnon PE (AZ) | Proposition 218 Subject Matter Expert | Vice President (Raftelis) Role: Provide input and guidance for Proposition 218 requirements.

Career/Experience Highlights:
• Over 25 years of experience in financial analysis and environmental engineering, including over 14 years of providing financial planning and rate setting services to agencies all over California • Professional Engineer (AZ) and Series 50 Municipal Advisor Representative • Member of AWWA and former Chair of the CA NV AWWA Financial Management Committee Education: Master of Science Environmental Engineering; Master Business Administration Key Clients: Hi-Desert Water District (CA); Pasadena (CA); Burbank Water and Power (CA); San Francisco Public Utilities Commission (CA); Otay Water District (CA); Ontario (CA), (CA); Sweetwater Authority (CA) Areas of Competence: financial analysis and modeling; cost of service; rate design; affordability analysis; capital overhead studies; capital prioritization/ asset management; economic feasibility evaluation, financial forecasting; bond feasibility studies
Amanda Guci | Electric Project Advisor | Manager (Raftelis) Role: Support KRSA’s team offering assistance and guidance as needed.

Career/Experience Highlights:
• Over a decade of experience in rate and regulatory consulting for municipal and investor-owned electric, gas, water, and wastewater utilities
• Specializes in cost of service and rate design, financial modeling, and financial planning • Municipal Advisor Representative (Series 50), APPA, and AWWA member Education: Albanian School of Diplomatic Arts
Key Electric Clients: Aspen (CO), Cleveland Public Power (OH), Orangeburg (SC), Camden (SC), Greenville Utilities Commission (NC)
Areas of Competence: Regulated and municipal electric and gas cost of service rate studies; EV rate structure pricing; affordability analysis; capital overhead studies; capital prioritization/ asset management; economic feasibility evaluation, financial forecasting; bond feasibility studies Ashley Blank | Electric Assistant Project Manager | Analyst (KRSA) Role: Will lead and provide technical direction for the electric portion of the project.

Career/Experience Highlights:

As an analyst at KRSA, Ashley’s experience includes 15 years in the special retail industry analyzing sales and inventory budgets as well as two years in data engineering and process improvement in the RPO industry. Ashley Item 5.

RAFTELIS 7
has a proven track record of success in identifying trends, improving processes, and providing valuable data-driven insights.

Education: iMBA, Southern New Hampshire University
Kent Simer | Electric Project Advisor | Senior Analyst (KRSA) Role: Provide input and guidance for the electric portion of the project.

Career/Experience Highlights:

As a senior analyst at K. R. Saline & Associates, Kent’s 25+ years of experience in the utility industry has included economic analyses and computer‐aided modeling for power supply planning, load forecasting, financial forecasting, cost/benefit analysis, rate studies, and expert testimony on revenue requirements and rate design matters. Kent previously conducted the electric, gas, water, and wastewater rate studies for the City of Safford.

Education: B.I.S., Arizona State University, APPA Rate Certified 2003 Jeffrey Woner | Electric Project Advisor | Partner (KRSA) Role: Provide input and guidance for the electric portion of the project.

Career/Experience Highlights:

Jeffrey has participated in several utility financings (approximately $700 million) as well as several projects relating to the compliance of environmental regulations. Jeffrey provides ongoing consulting services for numerous irrigation and electrical districts, municipal utilities and tribal utilities located in Arizona.

Education: M.S. Economics, University of Arizona
Dennis Delaney PE (AZ) | Electric Project Advisor | Partner (KRSA) Role: Provide input and guidance for the electric portion of the project.

Career/Experience Highlights:

Dennis was instrumental in the development of the Southwest Public Power Agency and has served as its project manager since 2014. Prior to the formation of SPPA Dennis oversaw the resource management and scheduling for over 25 irrigation and electrical districts, municipal utilities, and tribal utilities in Arizona.

Education: B.S., Electrical Engineering, Arizona State University, P.E.

Daniel Pritchard | Electric Analyst | Senior Analyst (KRSA) Role: Will work at the direction of Ashley in conducting analyses and preparing deliverables for electric portion of the project.

Career/Experience Highlights:

For the past 16+ years, Dan has provided ongoing consulting service responsibilities for numerous electric districts, and municipal utilities in Arizona ranging from power forecasting, ad-hoc economic analysis, and compliance with federal reporting mandates. Dan participates in multiple scheduling, administration, and public ratemaking processes for hydroelectric resources available to Arizona utilities and in the scheduling activities of the Southwest Public Power Agency.

Education: B.S. Economics, University of Arizona
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RAFTELIS 8
C. REFERENCES
C. References
Our staff has assisted more than 1,700 public agencies and utilities across the U.S., including some of the largest and most complex agencies in the nation. In the past year alone, Raftelis worked on more than 1,300 financial, organizational, and/or technology consulting projects for over 700 agencies in 47 states, the District of Columbia, and Canada. Below, we have provided descriptions of projects that we have worked on that are similar in scope to City’s project. We have included references for each of these clients and urge you to contact them to better understand our capabilities and the quality of service that we provide.

RAFTELIS
City of San Diego CA
Owner/Reference: Adam Jones, Deputy Director of Finance 525 B Street, San Diego, CA 92101 / P: 858.614.4030 / E: [email protected] System size (kW DC): N/A / Date Completed: 2022; 2024 - Current The City of San Diego (City) provides retail water, wastewater, and recycled water service to approximately 1.4 million people in metropolitan San Diego County. Raftelis has been providing consulting service to the City for over 20 years. During the period 2019 – 2021 Raftelis completed a comprehensive wastewater cost-of-service study that resulting in the adoption of Proposition 218 compliant wastewater and recycled water rates that were approved by the San Diego City Council for the period FY 2022 – FY 2026.

RAFTELIS HAS PROVIDED FINANCIAL/

ORGANIZATIONAL/TECHNOLOGY ASSISTANCE

TO UTILITIES SERVING MORE THAN
25% OF THE U.S. POPULATION.

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RAFTELIS 9
The City retained Raftelis again in 2024 to complete a 5-year update to the water and wastewater cost of service and rate studies. Due to recent litigation surrounding Prop 218, the City wanted to ensure that their cost of service studies withstood the scrutiny from the California Courts in recent cases. For both water and wastewater, Raftelis completed a comprehensive billing analysis, developed the revenue requirement, and completed a detailed cost allocation process with the City’s input. This study is on-going and is anticipated to be complete by the end of 2024.

In addition, the City retained Raftelis to complete a comprehensive review of their Industrial Pretreatment Program fees. A lawsuit had been filed against the City for its current fee structure which had over 100 different fee structures. Raftelis worked with the IPT staff to simplify the fees to three major categories – Permits, Enforcement, and Trucked Waste. The fees were based on direct labor costs and indirect for services provided by other departments within the utility. Fees were adopted in 2021.

Hi-Desert Water District CA
Owner/Reference: Tanya Gruwell, Chief Financial Officer 55439 29 Palms Highway, Yucca Valley, CA 92284 / P: 760.228.6271 / E: [email protected] System size (kW DC): N/A / Date Completed: 2019; 2023
Raftelis was hired by Hi-Desert Water District in 2019 to perform a water rate study and again in 2023 to perform a water and wastewater rate study. The District’s wastewater system is a few years old. Customers were mandated to connect to the sewer system to prevent groundwater contamination. The prior wastewater system rates did not consider reserves and the system was operating at a deficit. Raftelis worked with the Board to select revenue adjustments to fund wastewater reserves by the end of the 5-year study period. The District is in a low-income area and the Board was very sensitive to rate increases. At a public outreach event and at the public hearing, the public was informed about the tremendous distance (over 400 miles) its water travels to come from the Bay Delta area, through the desert, and to the District. The public seemed more understanding of rate increases after learning of cost and effort to bring water to their desert community. The rates were adopted at the public hearing in 2024.

City of Manteca CA
Owner/Reference: Somporn Boonslat, Deputy Director
1001 W. Center Street, Manteca CA 95337 / P: 209.456.8429 / E: [email protected] System size (kW DC): N/A / Date Completed: 2021 – current The City retained Raftelis to complete a comprehensive water rate and fee study. Rates and fees had not been updated in nearly a decade and their current rate structure was not in compliance with Proposition 218. Raftelis worked with staff to gather the study information; billing data, financial, operational, and other data to complete the study. Raftelis evaluated several financial planning scenarios to return the utility to a financially sufficient state.

Because of time since the last increase, large increases were proposed. Raftelis’ strategic communications group is currently working with staff to develop an outreach plan to engage the public with understanding the urgent needs of the utility. The study is anticipated to be completed, and rates implemented in the 2nd quarter of 2025.

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RAFTELIS 10
KRSA
Electrical District No. 3 AZ
Owner/Reference: Brian Yerges, General Manager
41630 W Louis Johnson Drive, Maricopa, AZ 85138 / P: 520.424.0420 / E: [email protected] System size (kW DC): 260 MW / Date completed: 2001 – current Since 2001, Electrical District No. 3 (ED3) has retained KRSA to provide annual load forecasting, power planning, budgeting, customer policies and rate design. These efforts have corresponded with the changing needs of the district as its customer base has transformed from an agriculturally based economy to an enterprising city of 65,000+ citizens and an energy environment that is being challenged by rapid growth, drought impacts and changing customer requirements.

Project Highlights
• Detailed customer statistics analysis used to develop future demand and revenue forecasts by major customer category, allowing for different growth rates by class, resulting in revenue forecasts that reflect the sensitivity of demand changes
• Comprehensive review and modeling of future power needs including incorporation of existing power contracts, planned power projects, and changes in hydro availability and natural gas pricing. • Customized budget model facilitating real-time sensitivity analysis result from changes to growth, debt funding, capital timing and rate increase planning
• Evaluated alternative customer classifications including residential time-of-use, electric vehicle, and specialized industrial rates
• Development and annual adjustment of a transmission wheeling rate based on cost-of-service principals • Rate structure prioritization conducted with the management staff to provide consistency when evaluating rate design alternatives
• Worked across departments with key personnel to develop capital budgets, expense forecasts, and pro forma revenue requirement adjustments
• Develop and deliver annual budget materials to ED3 board of directors and public stakeholders Page Utility Enterprises AZ
Owner/Reference: Bryan Hill, General Manager
640 Haul Road, Page, AZ 86040 / P: 928.645.2637 / E: [email protected] System size (kW DC): 30 MW / Date completed: 2021
In 2021, Page Utility Enterprises retained KRSA to review the financial operations of the electric utility as the utility faced significant impacts due to rising power costs, a tourism-dependent economy, and stagnant population growth.

RAFTELIS 11
• Rate structure prioritization conducted with the management staff to provide consistency when evaluating rate design alternatives
• Worked with key personnel to incorporate capital budgets, expense forecasts, and pro forma revenue requirement adjustments
• Attended multiple workshops with the PUE Board of Directors as well as separate City Council meetings to communicate the distinct issues, findings, and rate alternatives • Successful implementation of multi-year rate plan
City of Williams AZ
Owner/Reference: Tim Pettit, City Manager
113 South 1st Street, Williams, AZ 86046 / P: 928.635.4451 ext. 201 / E: [email protected] System size (kW DC): 8 MW / Date completed: 2002 – current Since 2002, KRSA has been providing utility management service and rate support. KRSA routinely reviews the financial operations of the electric utility and has helped guide the City through significant impacts due to volatile power costs, major system upgrades, and customer growth.

Project Highlights
• Detailed customer statistics analysis revenue forecast in-depth evaluation by major customer category and customer categorization
• Comprehensive review and modeling of future power needs including incorporation of existing power contracts and changes in hydro availability and natural gas pricing • Evaluated alternative customer classifications including residential time-of-use, electric vehicle, and differentiated commercial rates
• Development and annual adjustment of a transmission wheeling rate based on cost-of-service principals • Rate structure prioritization conducted with the management staff to provide consistency when evaluating rate design alternatives
• Worked across departments with key personnel to develop capital budgets, expense forecasts, and pro forma revenue requirement adjustments
• Develop and deliver annual budget materials to the key City staff and city manager, the city council, and public stakeholders to ensure clear understanding of the study results Item 5.

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CALIFORNIA EXPERIENCE
This table lists the California utilities that Raftelis has assisted over the past five years on financial, rate, and/or management consulting projects.

Client
Affordability Analysis & Program DevelopmentDebt Issuance SupportDispute ResolutionFinancial & Capital Improvements PlanningRate Case SupportRate DesignRisk AnalysisCost of ServiceDevelopment/Impact FeesStormwater Utility DevelopmentOrganizational OptimizationWater/Wastewater Utility Valuation Alameda County Water District      
Anaheim, City of    
Arroyo Grande, City of    
Atwater, City of    
Bakersfield, City of    
Benicia, City of 
Beverly Hills, City of       
Borrego Water District   
Brea, City of   
Brentwood (CA), City of    
CAL FIRE/San Luis Obispo 
Calleguas Municipal Water District     
Camarillo, City of     
Carlsbad Municipal Water District     
Casitas Municipal Water District   
Castaic Lake Water Agency      
Central Basin Municipal Water District    
Central Contra Costa Sanitary District   
Channel Islands Beach Community Services
District   
Chino Hills, City of   
Chino, City of   
Chowchilla, City of    
Corona, City of  
County of San Diego   
Crescenta Valley Water District   
Cucamonga Valley Water District  
Del Mar Union School District 
Delta Diablo Sanitation District 
East Bay Municipal Utility District   
East Orange County Water District    
East Valley Water District    
Eastern Municipal Water District 
El Toro Water District   
Elk Grove Water District      
Elsinore Valley Municipal Water District   
Escondido, City of      
Galt, City of     
Glendora, City of 
Goleta Water District    
Goleta West Sanitary District      
Helix Water District   
Henderson, City of    
Hollister, City of    
Holtville, City of  
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RAFTELIS 13
Client
Affordability Analysis & Program DevelopmentDebt Issuance SupportDispute ResolutionFinancial & Capital Improvements PlanningRate Case SupportRate DesignRisk AnalysisCost of ServiceDevelopment/Impact FeesStormwater Utility DevelopmentOrganizational OptimizationWater/Wastewater Utility Valuation Huntington Beach, City of

Imperial County

Inland Empire Utilities Agency

Irvine Unified School District

Jurupa Community Services District

Kern County Water Agency

La Canada Irrigation District

La Habra Heights County Water District

Laguna Beach, City of

Lake Valley Fire Protection District

Las Virgenes Municipal Water District

Leucadia Wastewater District

Livermore, City of

Long Beach City of

Los Alamos Community Services District

Los Angeles Department of Water and Power

Los Angeles, City of Bureau of Sanitation

Madera, City of


Mammoth Community Water District

Marin Municipal Water District

Merced, City of

Mesa Water District

Metropolitan Water District of Southern
California

Modesto Irrigation District

Mojave Water Agency

Monterey County Water Resources Agency

Monterey, City of

Moulton Niguel Water District

Municipal Water District of Orange County

Napa Sanitation District


Ojai Valley Sanitary District

Olivenhain Municipal Water District

Ontario Municipal Utilities Company

Ontario, City of

Orange, City of

Palo Alto, City of


Phelan Pinon Hills Community Services District

Placer County Water Agency

Pleasant Hill Recreation & Park District

Pomona, City of

Rainbow Municipal Water District

Ramona Municipal Water District

Rancho California Water District

Redlands, City of

Rincon del Diablo Municipal Water District

Riverside Public Utilities

Roseville, City of

Item 5.

RAFTELIS 14
Client
Affordability Analysis & Program DevelopmentDebt Issuance SupportDispute ResolutionFinancial & Capital Improvements PlanningRate Case SupportRate DesignRisk AnalysisCost of ServiceDevelopment/Impact FeesStormwater Utility DevelopmentOrganizational OptimizationWater/Wastewater Utility Valuation Sacramento Regional County Sanitation
District

Sacramento, City of

Salton Community Services District

San Bernardino Valley Municipal Water District

San Bernardino, County of

San Clemente, City of

San Diego, City of Public Utilities Department

San Dieguito Water District

San Elijo Joint Powers Authority

San Gabriel County Water District

San Gabriel, City of

San Jose, City of

San Juan Capistrano, City of

Santa Ana, City of

Santa Barbara, City of

Santa Clara Valley Water District

Santa Clarita Water District

Santa Cruz, City of

Santa Fe Irrigation District

Santa Fe Springs, City of

Santa Margarita Water District

Santa Rosa, City Attorney’s Office

Scotts Valley Water District

Shafter, City of

Shasta Lake, City of

Sierra Madre, City of

Signal Hill, City of

Simi Valley, City of

Sonoma, City of

South Mesa Water Company

South Pasadena, City of

South San Francisco, City of

Sunnyslope County Water District

Sweetwater Authority

Temescal Valley Water District

Thousand Oaks, City of

Torrance, City of

Trabuco Canyon Water District

Triunfo Sanitation District


Tustin, City of

Union Sanitary District

Ventura Regional Sanitation District

Ventura, City of

Vista, City of

Walnut Valley Water District



Watsonville, City of

West Basin Municipal Water District

Item 5.

RAFTELIS 15
Client
Affordability Analysis & Program DevelopmentDebt Issuance SupportDispute ResolutionFinancial & Capital Improvements PlanningRate Case SupportRate DesignRisk AnalysisCost of ServiceDevelopment/Impact FeesStormwater Utility DevelopmentOrganizational OptimizationWater/Wastewater Utility Valuation Western Municipal Water District    
Yorba Linda Water District   
Zone 7 Water Agency   
D. PROJECT DEVELOPMENT EXPERIENCE
D. Project Development
Experience

1. Total number of utility cost of services studies the firm has constructed over the past five years
Raftelis has worked on nearly 1,000 utility cost of service studies in the past five years. A detailed list can be provided upon request.

2. Types of customers the firm has worked with in the past Customers we work with consists of utilities and local government.

Item 5.

RAFTELIS 16
E. TERMS
Proposer’s Understanding
and Approach
Water and Wastewater Project Understanding
This project is about ensuring the future financial viability of the City’s utilities, which must be supported by equitable and defendable rate structures. To achieve this, Raftelis has pulled a knowledgeable and dedicated core team from its pool of subject-matter experts. The Raftelis Project Manager will work the Water and Wastewater Leads and KRSA Electric Project Manager to ensure that we don’t lose sight of the broad project goals. When the time comes to revise rate structures, prioritize shifts, and tell the story to your customers, the Raftelis team will stand with the City to support the study's results. We will help you usher in a resilient future for Needles utilities.

The organization of our project team is provided in B. Project Team. The City has identified key several key areas of focus for the water and wastewater rate study:
• A financial plan which shows the ability of rates and fees to fund operations, capital, any proposed debt service, reserves, and debt service coverage.
• A cost of service and rate analysis that demonstrates both an equitable distribution of costs between customer classes and rates that are set to recover those costs. • Rate design alternatives that promote the City’s specific pricing objectives, such as sustainability, wise water use and efficiency, and equitable cost recovery all while being Proposition 218 compliant and meeting recent state laws such as SB 1157.
• A stress test of the rate alternatives through bill impact comparison among a variety of usage levels and a comparison of proposed bills and rates to that of peer utilities in the area • As one of the hottest cities in California –
and hotter than Phoenix or Houston,
Needles suffered a catastrophic drought
in 2021 where well production was
reduced to one well according The Los
Angeles Times. We will evaluate water
use data from that period and model
revenue projections under similar
conditions to test the viability of the
water utility’s revenue stability. Based on
records from climatetoolbox.org which is
supported by NOAA and CIRC, the City
is currently in a severe drought.

Item 5.

RAFTELIS 17
Water and Wastewater Project Approach
Task 1: Project Management
Nimble. Flexible. Adaptable. Those are three adjectives we often hear clients use to describe our performance on projects at end-of-study project close-out meetings. We have high expectations for ourselves and a strong sense of what goes into a successful project. In addition to solid work products, you can expect:
• Efficient Use of Time: Your time is valuable, and we treat it that way. We commit to running well-planned, useful, and efficient meetings from the project’s launch. We will arrive at all meetings with a game-plan and expectation to move the project forward.
• Regular Check-Ins: Many decades of project experience have taught us that the best way to keep a project on track is to ensure that it doesn’t have too much room to drift off course. We like to schedule short weekly (or bi-weekly) check-in calls to ensure everyone’s questions are answered, data needs are met, and no bottlenecks are developing in the project process. You will know we are on track because we will touch base with you regularly.
• Thorough Documentation of Calls and Meetings: The Raftelis team takes detailed meeting notes and shares them promptly after each meeting or important call. This allows the full project team to stay abreast of progress, agreements made, and results delivered.

Raftelis begins each project with a standard process wireframe shell that is built on two key foundational pillars:
• Best practices from the AWWA, WEF, American Public Power Association (APPA), and American Public Gas Association (APGA)
• Similar past successful Raftelis projects
Raftelis will conduct careful and detailed project management and administration throughout the project. Our Project Manager will plan, coordinate, monitor, and control all project tasks in concert with other appropriate project team members to ensure continuity and momentum throughout the project.

Raftelis uses internal safeguards to forecast and track all personnel hours and expenses incurred on each task, which the Project Manager closely monitor. Analyzing weekly costs helps prevent cost overruns and allows the City to shift funding priorities if necessary. In our monthly invoicing of services to the City, we typically indicate the dollar value of project work completed so our clients can see where the work stands in any given month. As necessary, the regular reporting will indicate how the project schedule is proceeding and whether there are issues that need to be addressed relative to analysis, approach, assumptions, schedule, and/or administration.

TASK 1 DELIVERABLES:
• Established lines of communication
• Regularly scheduled project meeting calls
• Regular project management updates on budget, deliverables, and other milestones Task 2: Project Initiation Meeting
We will facilitate separate on-site project initiation meetings for each of the studies awarded to our team. • Project Initiation: Finalize scope, milestones, and deliverables, set up regular project conference calls, and determine primary points of contact. Finalize project goals and objectives to establish guiding principles for the study against which we will measure results. Our project schedule can be found in the Schedule section Item 5.

RAFTELIS 18
of this proposal. With every major milestone meeting or regular project meeting, we will produce and circulate an email summarizing the key points of the discussion. • Data Request: Prior to the meeting we will submit a data request list for the information needed for this study. Gathering this information prior to the kick-off meeting will allow us to review and aggregate our list of questions and clarifications.
• Project Initiation Meeting: We will facilitate a one and one-half day meeting with City staff to review the key aspects of the study, current challenges and discuss the current political environment and how that may influence our strategic communications plan. We will also review data we have received to date, get clarification on certain items where needed and present our initial model populated with the validated data.

This will give staff a perspective on how we should interpret the data. • Rate Structure Pricing Objectives: This workshop
allows for a facilitated discussion where decisionmakers review and rank pricing objectives to use for developing alternative rate structures. This will help
us determine how well the existing rate structure
meets those objectives and identify potential rate
structure changes to make it better align with those
objectives. Typical pricing objectives are listed to the right. Many of these are “standard” or “must haves,”
such as defensibility and revenue sufficiency.

However, others can be ranked in order of
importance. We will also develop measurable criteria
to benchmark the objectives against the alternatives.

TASK 2 DELIVERABLES:
• Data request list
• Agenda for kick-off meeting
• Documentation summarizing the kick-off meeting
• On-site kick-off meeting at the City of Las Cruces
Task 3: Financial Plan
One of the most important aspects of a utility rate study is the forecast of revenue requirements. The City’s stakeholders and customers must have confidence that projected water and wastewater rates are sufficient to meet future annual revenue needs to fully fund the desired level of infrastructure investment. This creates a clear path toward maintaining a secure financial position for the utility. We will develop the test year revenue requirements for each utility considering:
• Current budget, unadjusted, adjusted and budgeted fiscal year by fund (operations, capital improvements equipment replacement reserve, shared services)
• Annual Comprehensive Financial Reports
• Financial policies
• Debt policies and covenant requirements
• Maintaining the integrity of the layout of the City’s current revenue requirement tables • Determining the level of adjustment required to rates to meet annual requirements How much capital investment can
we achieve while keeping rates
affordable for our customers?
Item 5.

RAFTELIS 19
TASK 3 DELIVERABLES:
• Draft revenue requirement
• Technical memorandum summarizing the results
• Two virtual meetings (per utility) to review findings with staff • Finalized technical memorandum summarizing final results Task 4: Cost of Service
Raftelis will start with industry-accepted cost-of-service principles and customize our analysis to account for the specific requirements of this study. The cost-of-service analysis will provide the City with a defensible justification explaining the reason why the costs are assigned in the manner they are. Raftelis needs this information to evaluate the level of the current and proposed rates.

The cost-of-service analysis is a multi-step process. It includes determining the revenue requirement, assigning the revenue requirement to various facilities (functional areas), and further allocating those costs based on their design criteria or function in the system. Those costs are then distributed to customer classes based on their water demands as well as accounts or equivalent meters. Raftelis will use the cost allocation process based on the industry standard methodologies published in the AWWA’s Manual M1, Principles of Water Rates, Fees, and Charges and the WEF, Manual of Practice M027, Financing and Charges for Wastewater Systems.

The graphic to the right illustrates the basics for the cost of service for each utility. Although some of the
steps vary between each utility, the result is the same:
the cost to service is the proportionate allocation of
costs to customer classes based on their unique
demands and customer characteristics.

TASK 4 DELIVERABLES:
• Draft cost of service results (per utility)
• Technical memorandum summarizing the
results
• Three virtual meetings (per utility) to review
findings with staff
• Finalized technical memorandum
summarizing results
Task 5: Rate Design
The rate design task will identify the appropriate costs to be recovered from each customer class for each utility. For example, water volume-related costs recover the costs to treat, store, and distribute water to customers. Wastewaterrelated costs recover the costs to collect, treat, and discharge wastewater. Customer-related costs typically include meter reading and maintenance and administrative costs.

Raftelis will calculate the test-year rates under the current structure for each utility. Raftelis will also develop testyear rates for up to three (3) structure alternatives for each utility. Rate structure alternatives will be based on the results of the pricing objectives identified in Task 2, and here’s how we’ll do it:

Cost-of-Service Summary by Utility
Cost proportionality
This is the common
denominator for cost of
service across all utilities.

Raftelis follows industry
standard approaches along
with our experience to ensure
this proportionality is
maintained within each class.

Item 5.

RAFTELIS 20
• Using the selected pricing objectives and
evaluation metric identified in Task 2,
gauge the alignment the existing rate
structure has with the objectives. Assess
the ability of proposed rate structures to
align with the evaluation metrics. Rank the
existing structure against the alternatives
and select up to three structures to
determine test-year rates.
• Update the current utility rates with the
test-year revenue requirement increase.

This serves as the baseline for comparison
against other rate structures.
• Based on the rate structure ranking results,
develop test-year rates for each alternative.

Compare results from proposed rates
under each structure against the ability to
meet ranked pricing objectives.
• Develop a bill impact table for each customer class that compares typical monthly and annual bills under existing and proposed rate structures.
• Compare how each rate design alternative meets the pricing objectives. • Develop a bill comparison under the City’s existing and proposed rate alternatives compared against up to 10 peer utilities for each utility.

TASK 5 DELIVERABLES:
• Draft proposed rates under current schedules
• Proposed rate structure alternatives for each utility • Three virtual meetings (per utility) to review findings with staff • Finalized technical memorandum summarizing results
Task 6: Reports and Presentations
Draft Report
The draft report will document the rate development process, describe any recommended changes to the existing rate structures and the reason for such changes, and present the results of the cost-of-service and rate study. An electronic copy of the draft report will be provided to City staff for their review and comment. We will complete two rounds of draft report review. We can provide a draft report as a searchable .pdf or provide a link to the word document through our SharePoint for your review and edits.

Final Report
Raftelis will incorporate the City staff’s comments on the draft report into a final report. On finalization of the report, the City will be provided an electronic copy.

City Council Presentations
Raftelis will prepare the presentation materials to be used at the City Council meetings. Advance draft copies will be provided to staff for review and comment. Raftelis will attend up to two (2) meetings either with the City Council. 1%
2%
2%
4%
6%
2%
24%
56%
3%
0%
0%
0% 20% 40% 60% 80% 100%
-101 to -25%
-25 to -15%
-15 to -10%
-10 to -5%
-5 to 0%
0%
0 to 5%
5 to 10%
10 to 15%
15 to 25%
25 to 50%
Percent of Bills
Bill Increase / Decrease
Example Customer Class
Summary Bill Impact
Item 5.

RAFTELIS 21
TASK 6 DELIVERABLES:
• Virtual meeting to review draft report with City staff • Draft report, searchable .pdf
• Final report, searchable .pdf
• PowerPoint material for NPUA and City Council meeting • Participation in one meeting with either the NPUA or City Council Electric Project Understanding
KRSA uses a proven, industry-standard approach to cost of service (COS) and rate studies, grounded in the principles of fairness, transparency, and long-term financial sustainability. Our past clients have successfully implemented our strategies to manage revenue, control expenses, build reserve funds, and ensure competitive rates.

Our approach to electric utility rate studies involves key activities such as comprehensive data collection, critical analysis of 5-year operating needs, capital planning review, and stakeholder engagement. KRSA will rely on industry standards for COS analysis (e.g., APPA, NARUC) and adhere to any regulatory requirements of California to ensure the final recommendations are equitable, defendable, aligned with your operational goals and consistent with California law. Below, we outline the common features of our methodology and approach to performing COS and rate studies.

Electric Project Approach
Preparation of Financial Plan
We will start by gathering relevant financial, operational, and customer data, and capital improvement plans and conduct a thorough review of your financial data, capital improvement plans, and system maintenance needs. The data will be incorporated with a comprehensive review of enterprise revenues to develop a 5-year financial plan. We will work with the City’s staff to identify opportunities for cost savings and operational efficiency.

Our team will evaluate your capital planning strategies to ensure that long-term infrastructure investments are adequately supported. In addition, we will help you develop or refine reserve fund strategies for emergency repairs and future capital expenditures. These reserve fund strategies are grounded in best practices that have been successfully implemented by other utility clients, allowing them to strengthen financial reserves while maintaining competitive rates.

Special considerations for the City’s utilities will include:
• Evaluate existing monthly fees and rate structure for all utilities • Evaluate the impact of a implementing a new tiered rate system • Propose rate structures that promote conservation
• Assess the rate structure for support of capital and debt expense coverage • Evaluate Post 2028 Parker Davis Remarketing efforts and impacts to power supply Item 5.

RAFTELIS 22
Cost-of-Service Analysis
Once the financial and capital needs assessments are complete, we will perform a detailed COS analysis using industry-standard methodologies (APPA/NARUC). This analysis will fairly allocate costs across customer classes based on their respective demand and impact on the system. We will ensure that all operational costs, capital expenditures, and future needs are appropriately reflected in the rates.

Rate Design
In collaboration with your management team, we will use the results of the COS analysis to develop cost-justified, equitable, and defendable rates that are appropriate for the City. These rates will align with your utility’s financial and operational goals while maintaining fairness and conservation across customer classes. We will also benchmark your rates against peer utilities to ensure competitiveness and provide stakeholders with a clear indication of any bill impacts that result from our proposed rates. Our team will ensure that the final rate structures are well-supported by data, enabling you to confidently present them to the City Council and your customers for approval.

Communication
We will engage with stakeholders throughout the study to ensure transparent communication of findings and recommendations. This includes regular updates to the utility staff, workshops to gather feedback, and communication materials to explain any proposed rate changes. Our goal is to ensure that all stakeholders understand and support the final rate design.

Deliverables
The results will be thoroughly summarized and a final report along with presentation materials, and customer information packets.

Item 5.

RAFTELIS 23
Schedule

WATER AND WASTEWATER SCHEDULE
Raftelis will complete the scope of services within the timeframe shown in the schedule below. If the City elects to extend the project completion schedule beyond the initial schedule, we will work with the City to identify any necessary revisions to the project budget.

ELECTRIC SCHEDULE
KRSA anticipate the overall project duration will be approximately 4 months. Initial data collection and review will take place over 6 weeks, followed by COS analysis and rate design over the next 8 weeks. Stakeholder engagement, reporting, and presentation of final recommendations will be completed in the final phase.

By applying a methodical, industry-standard approach, they will help the utility enterprises of the City of Needles achieve cost-effective and sustainable rate structures. KRSA team’s proven track record of helping utilities manage revenue and expenses, optimize capital planning, and build reserve funds positions us as a valuable partner in your rate study.

TASKS
 Project Management

 

 



  

1. Project Management

2. Project Initiation

3. Financial Plan

4. Cost of Service

5. Rate Design

6. Reports and Presentations
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
 In-Person Meeting
 Draft and Final Reports
 City Council Meetings
 Deliverables/Tech Memos/PPT
 Virtual Meetings
Item 5.

RAFTELIS 24
F. EXCEPTIONS
Exceptions
We request that the City consider making the following modifications, shown in red below, to the Draft Professional Services Agreement. Please contact us if you have any questions or concerns about these modifications.

3.2.2 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California as of the time of the services are provided. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the applicable standard of care. Any employee of the Consultant or its subconsultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of a Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-assigned to perform any Services to City.

3.2.3 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services. If the Consultant performs any work contrary to such laws, rules and regulations and without giving written notice to the City, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold the City, its officials, directors, officers, and employees and agents and agents harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of caused by arising out of any failure or alleged failure of Consultant to comply with such laws, rules or regulations.

4.2 Indemnity for Professional Liability. When the law establishes a professional standard of care for Consultant’s Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless the City and any and all of its officials, and employees and agents (“Indemnified Parties”) from and against any and all losses, liabilities, damages, costs and expenses, including legal counsel’s fees and costs,, to the extent caused in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any agency or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement.

4.3 Indemnity Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its Item 5.

RAFTELIS 25
employees, and officials and agents from and against anyall liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including legal counsel fees and costs, court costs, interest, defense costs, and expert witnessfees), where), to the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part,extent caused by the negligent performance of this Agreement by Consultant or by any individual or the City for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant. Notwithstanding anything to the contrary in this Agreement, in no event will Consultant have an obligation to indemnify, defend or hold harmless City or any other Indemnified Parties against liability for claims by a third party for failure to comply with its obligations under Article XIII D of the California Constitution (Proposition 218).

4.4 Duty to Defend. In the event the City, its officers, employees, agents and/or volunteers are made a party to any action, lawsuit, or other adversarial proceeding arising from the performance of the Services encompassed by this Agreement, and upon demand by City, Consultant shall have an immediate duty to defend the City at Consultant’s cost or at City’s option, to reimburse City for to the extent of its costs of defense, including reasonable attorney’s fees and costs incurred in the defense of such matters. Payment by City is not a condition precedent to enforcement of this indemnity. In the event of any dispute between Consultant and City, as to whether liability arises from the sole negligence of the City or its officers, employees, or agents, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating the City as solely negligent. Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. obligations set forth above.

7.3.1 City Ownership. All documents and data (“Documents & Data”), including data on electric, digital or magnetic media, prepared by Consultant under this Agreement and intended by Consultant as a deliverable hereunder shall be the property of the City, except that Consultant shall have the right to retain copies of all Documents & Data for its records. The City shall not be limited in any way in its use of the Documents & Data at any time.; provided that any use other than as intended and any re-use, modification or alteration thereof shall be at City’s sole risk. Should Consultant, either during or following termination of this Agreement, desire to use any Documents & Data prepared in connection with this Agreement, Consultant shall first obtain the written approval of the City Manager. Nothing in this Agreement shall be deemed or construed as a waiver, release, transfer, assignment or divestiture by Consultant of any of its intellectual property, know-how or trade secrets.

7.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of the City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project., unless disclosure is legally compelled. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant may rely on all data and information provided by or on behalf of City without additional investigation. Consultant shall not use the City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of the City.

Item 5.

RAFTELIS 26
APPENDIX A: RESUMES
Appendix A: Resumes
Item 5.

RAFTELIS 27
Todd Cristiano

PROJECT MANAGER
Vice President (Raftelis)

PROFILE
Todd has nearly 25 years of utility finance experience—19 years as a consultant to utilities and 6 years as the Manager of Rates at Denver Water.

He has completed studies across the U.S. for water, wastewater, stormwater, electric, and gas utilities. His experience covers technical areas and industries such as municipal fee development, utility cost-of-service and rate structure studies, economic feasibility analyses, impact fee studies, and budget processes. While at Denver Water, he oversaw four significant rate- and feerelated studies, all unanimously approved by the Board of Water Commissioners, and also served as interim budget manager at Denver Water.

As a member of the AWWA, he has helped to develop industry guidelines regarding financial and rate-making practices. In particular, as the Past Chair and current member of the AWWA Rates and Charges Committee, he coauthored the water reuse chapter in the latest edition of Manual M1, Principles of Water Rates, Fees and Charges. Todd is also co-instructor for the AWWA’s biennial Financial Management: Cost-of-Service Rate-Making Seminar.

KEY PROJECT EXPERIENCE
City of San Diego (CA): Water and Wastewater Cost of Service, Rate and Fee Study
Key Areas of Focus: Regular 5-year update; Evaluation of tiered residential rate structure to comply with Proposition 218; ensuring rate revenue met annual expenditures; evaluation of bons funding options. Updates to wastewater structure to account for infiltration and inflow; corrections made to multifamily sewer rate. Update pretreatment program costs.

City of Manteca (CA): Water Financial Plan, Cost of Service, and Rate Study Key Areas of Focus: Last rate increase was in 2018; unknown when most recent rate study had been completed.

Frequent turnover in staff left financial in poor health; repair and replacement capital projects had been significantly delayed; Raftelis made significant investment in untangling billing data, and developing robust financial planning models to analyze various debt funding options.

City of Milpitas (CA): Water and Wastewater Cost of Service, Rate and Fee Study Key Areas of Focus: Update to 2018 study; most recent water and wastewater master plan indicated significant investment in repair and replacement capital; evaluated debt funding strategies to minimize rate increases; updated cost of service based on the new revenue requirement. Set uniform volume rates to comply with Prop 218.

City of Santa Cruz (CA): Wholesale Water Inter-Tie Contract Rates Key Areas of Focus: The City of Santa Cruz (City) retained Raftelis to complete a water rate analysis for supplying

1.0 million gallons per day of water to Scotts Valley in exchange for water storage in their well field. Raftelis developed rate using the cost causation principals set forth in the AWWA M1 manual. For this study, costs were separated between common-to-all costs (costs that benefit all customers) and those costs specific to Scotts Valley Specialties
• Financial planning
• Cost-of-service & rate structure
studies
• Litigation support
• Economic feasibility analyses
• Impact fee studies - utility & nonutility
• Reviews of policies, procedures, &
operating practices
• Budget processes
Professional History
• Raftelis: Vice President (2024-
present); Senior Manager (2019-
2023); Manager (2017-2018)
• Stantec (2016-2017)
• Denver Water: Manager of Rates
(2010-2016)
• Malcolm Pirnie-Arcadis-US
• (2005-2010)
• Black & Veatch (1998-2005)
Education
• Master of Business Administration
- University of Colorado (2003)
• Bachelor of Science in Chemical
Engineering - University of Tulsa
(1995)
Professional Memberships
• AWWA: Past Chair and current
member of Rates & Charges
Committee
• WEF
Item 5.

RAFTELIS 28
Water District. Raftelis analyzed asset records, GIS data, and asset management systems to determine which assets Scotts Valley specifically benefited from to receive service. Asset values were set to an annual lease rate which served as a proxy for annual capital costs. The study is currently on-going pending approval from the State on this wheeling agreement.

Crestview Mutual Water Company (CA): Financial Plan and Rate Structure Review The Crestview Mutual Water Company serves under 1,000 customers. Their current rate structure was based on a tiered structure which scaled based on the share ownership of each customer. The Utility requested Raftelis to create a 5-year financial plan to ensure that revenue from rates met annual expenditures and revised the existing rate structure to further conservation without risking losing their annual allocated water shares. Raftelis developed several rate structure alternatives for the Board’s review. The Board adopted an alternative which incorporated a 4- tiered structure in 2024.

City of Tolleson (AZ): Water and Wastewater Financial Planning Study Key Areas of Focus: Raftelis worked with Staff to develop attainable financial plan goals while minimizing the impact to customers. The wastewater utility was also undertaking a proactive renewal and replacement program.

Because the City’s wastewater treatment plant is co-owned by three large industrial customers, the increased costs were spread among the City and the industrial users. Remaining costs were passed onto rate payers. Current reserves were able to absorb the nominal increased costs to retail wastewater customers, so no increase was necessary over the 10-year study period. The City Council adopted a 25% revenue adjustment for water - the first increase since 2011.

City of Scottsdale (AZ): Water Financial Planning, Cost-of-Service Analysis, and Rate Study Key Areas of Focus: The City of Scottsdale (City) retained Raftelis to complete a comprehensive water financial planning, cost-of-service analysis, and rate study. The study also included developing a model for City staff to use.

Raftelis analyzed the detailed billing records and developed demand profiles for each customer class. This was used to forecast rate revenues and in evaluating rate design alternatives. We used industry-standard methodologies to allocate costs to the customer classes. Because the City conducts these studies every five years, the analysis yielded nominal changes in the class cost of service. We modified the rate designs for multifamily and irrigation to reflect their equity pricing objectives.

City of Glendale (AZ): Water and Wastewater Cost of Service Study The City retained Raftelis to complete a comprehensive water and wastewater cost of service study. The City updates its cost of service and rates every five years. For this study, Raftelis analyzed billing data, the 5-year revenue requirement as well as operational and other financial data. The goal of the rate study was to update rates and transition changes over a five-year period. Raftelis also updated the City’s model for their review in interim years.

Rates were adopted for 2022. The City recently awarded Raftelis their 2025 – 2030 cost of service rate study contract to prepare a comprehensive 5-year cost of service and rate design study.

PUBLICATIONS
• “Evaluating Pricing Levels and Structures to Support Reclaimed Water Systems,” Research Report, WateReuse Foundation, 2009

PRESENTATIONS
• “A Guide to Designing Conservation-Oriented Water System Development Charges,” AWWA and Western Resources Advocates , 2018, https://westernresourceadvocates.org/projects/water-system-development-charges/ Item 5.

RAFTELIS 29
• Co-Instructor for American Water Works “Financial Management - Cost-of-Service Rate Making Seminar,” 2010-present
• “The Grass is Always Greener…Building Consensus of Reclaimed Water Project Pricing for Jointly Operated Systems,” Water Environment Federation Technical Exhibition and Conference, 2008 • “Honestly, What’s the Reuse,” WateReuse Symposium, 2008 • “Showers to Flowers - Objectives and Approaches for Reclaimed Water Pricing," Utility Management Conference, 2010
• “Which Conservation Rate Structure is Best for Your Utility,” Utility Management Conference, 2013 • “Financial Management and Ratemaking Challenges for Reuse Water,” Utility Management Conference, 2015 • “Rate Perception Surveys: Leveraging Customer Knowledge to Create the Right Rate Structure,” Annual Conference Exhibition (ACE), 2015
• “Assessing Household Affordability in the Denver Water Service Area,” ACE, 2015 • “Rate Perception Surveys: Leveraging Customer Knowledge to Create the Right Rate Structure,” Utility Management Conference (ACE), 2016
Item 5.

RAFTELIS 30
Brian Bass

WATER AND WASTEWATER ASSISTANT PROJECT

MANAGER
Manager (Raftelis)

PROFILE
Brian has over 19 years of experience in consulting and providing financial, project management, and engineering services to utility clients. He has performed cost-of-service rate studies, bond feasibility studies, water and wastewater rate design studies, long-term financial plans for asset management programs, financial capability and affordability studies. He has also provided recommendations on appropriate financial ratios and metrics for municipal utilities.

KEY PROJECT EXPERIENCE
Scottsdale Water (AZ): Water Rate and Cost-of-service Analysis Raftelis helped Scottsdale Water develop a financial plan to ensure rate revenue recovers all operating and capital revenue requirements while accounting for fluctuations in water demand. We completed a cost-ofservice study to allocate costs to each customer class and a rate design to collect costs from each class based on the cost-of-service results.

Sacramento County Water Agency (CA): Water Rate Study
Brian helped the Sacramento County Water Agency (Agency) establish water rates. We prepared a ten-year financial plan to ensure rate revenue recovers all operating and capital revenue requirements. The study also included ensuring the proposed rates have a nexus with the cost of service complying with CA legal requirements.

It also included presenting the results of the study and the proposed rates to the Board of Directors.

San Dieguito Water District (CA): Water and Recycled Water Cost-of-service Rate Study Raftelis helped the San Dieguito Water District (District) establish water, recycled water, and drought water rates.

We prepared a three-year financial plan to ensure rate revenue recovers all operating and capital revenue requirements and to achieve the District’s fiscal policies. We completed a cost-of-service study to allocate costs to each customer class and a rate design to collect costs from each class based on the cost-of-service results. We updated drought rates to ensure the collection of sufficient revenue during periods of reduced water demand due to drought or other water shortage emergencies. We presented the proposed rates and supported the City staff in several Board meetings to successfully implement the new rates, complying with CA legal requirements.

City of Ontario (CA): Water, Recycled Water, and Wastewater Rate and Cost-of-service Analysis Raftelis helped the City of Ontario (City) establish water, recycled water, and wastewater rates. Our evaluation included cost-of-service studies demonstrating the nexus between utility rates and the City’s costs to serve each customer class as required by Proposition 218.

City of Pleasanton (CA): Water Rate and Cost-of-service Analysis Raftelis helped the City of Pleasanton (City) establish water and drought water rates. We prepared a financial plan to ensure rate revenue recovers all operating and capital revenue requirements. We completed a cost-of-service study Specialties
• Utility cost of service and rate structure
studies
• Capacity fee studies
• Financial capability assessment and
affordability studies
• Bond feasibility studies
• Water and sewer rate studies
• Economic feasibility studies
Professional History
• Raftelis: Manager (2022-present)
• Arcadis: Senior Management
Consultant (2004–2022)
Education
• Master of Business Administration -
Indiana University (2013)
• Bachelor of Science in Agricultural and
Biological Engineering - The Ohio State
University (2004)
Professional Memberships
• AWWA Rates and Charges Committee
• AWWA CA-NV Financial Management
Committee (Vice-Chair)
Item 5.

RAFTELIS 31
to allocate costs to each customer class and a rate design to collect costs from each class based on the cost-of-service results. We presented the proposed rates and supported the City staff in several City Council meetings to successfully implement the new rates, complying with CA legal requirements.

City of Pleasanton (CA): Water and Wastewater Connection Fee Study Brian helped the City of Pleasanton (City) update their water and wastewater connection fees. The water and wastewater connection fees were calculated using the incremental methodology. The incremental method is forward-looking, and growth-related capital improvements are allocated to new development based on their estimated usage. The City’s water connection fees are charged by meter size. The City’s wastewater connection fees are charged based on a unit factor, which differs by customer class. The City will implement the new connection fees in the fall of 2024.

City of Shafter (CA): Water and Wastewater Cost-of-service Rate Study Brian is helping the City of Shafter (City) establish water and wastewater rates. The study includes two financial plans to ensure rate revenue recovers all operating and capital revenue requirements. It also includes a cost-ofservice study complying with CA legal requirements to allocate costs to each customer class and a rate design to collect costs from each class based on the cost-of-service results. The results will be presented to the City Council.

City of Sacramento (CA): Water and Wastewater Funds Analysis Brian is helping the City of Sacramento (City) complete a water and wastewater enterprise fund analysis. The analysis includes a detailed review of fiscal policies and procedures, benchmarking against peer communities, review of service level and capacities of the water and wastewater systems, evaluation of the impact of deferred maintenance and capital investments on the value of water and wastewater infrastructure, and the development of 25-year financial plans to ensure financial sufficiency and funding to meet projected operations and maintenance costs, the City’s capital programs, proposed capital repair and replacement recommendations, and operating and capital gaps identified by the City that are not included in the budget or capital improvements schedule.

Fort Collins-Loveland Water District (CO): Water Rate and Cost-of-service Analysis and Tap Fee Study Raftelis assisted the Fort Collins-Loveland Water District (District) with completing a financial plan for a ten-year study period, a water cost-of-service analysis, and a tap fee study. The District is experiencing continued growth, requiring significant investments in water resources. Raftelis helped the District to plan and implement rates to address these concerns and still achieve the requirements of their fiscal policies.

PRESENTATIONS
• “Assessment Today to Prepare for Tomorrow,” Indiana Water Environment Association Annual Conference, 2022.
• “Long Term Planning for Utility Managers,” American Water Works Association Michigan Annual Conference and Exhibits, 2022.
• “Building the Foundation of Equitable Water Rates,” Metropolitan Planning Council’s Drinking Water Academy (IL), 2019.

Item 5.

RAFTELIS 32
Steve Gagnon PE (AZ)
PROPOSITION 218 SUBJECT MATTER EXPERT
Vice President (Raftelis)

PROFILE
Steve has 25 years of experience in financial analysis and environmental engineering. For the past 15 years Steve has provided financial planning and rate setting services to agencies all over California. He has also helped utilities make major investment decisions such as whether to invest in food waste to energy projects. He has also managed the construction and installation of water treatment equipment and oversaw Superfund remediation for the U.S.

Army.

KEY PROJECT EXPERIENCE
Hi-Desert Water District (CA): Water Rate Study
Steve helped the Hi-Desert Water District (District) establish defensible and affordable water rates for a District with a high number of low-income residents. The study included an update of their miscellaneous fees. The District has one main source of water, which limits the rate differentiation between tiers. The study included an extensive outreach program to educate customers as to the need for rate adjustments.

City of Oxnard (CA): Water Rate Study
In early 2023, Raftelis assisted the City of Oxnard to develop a financial plan and set rates for their water and utility. The City of Oxnard has a very vocal and involved customer base. We simplified their rate structure and helped assess capital spending. We held a series of open houses that discussed the basics of rate setting. We also presented to council; the first meeting was a rate-setting basics workshop and the second presented the draft rates. During the public hearing, Raftelis and Staff fielded questions from the public. The rates were implemented by Council in the Spring of 2023. Steve served as the Project Manager.

Burbank Water and Power (CA): Water Rate Study
Raftelis assisted Burbank Water and Power with a professional water rate study. Raftelis helped staff select a rate structure from three structures including Budget Based Tiered Rates and performed a cost-of-service study to allocate costs to the customer classes. Burbank currently has a seasonal rate for commercial classes and has decided to go with a traditional tiered rate structure for single-family customers and a uniform rate for non-residential classes. Steve served as the Project Manager.

City of Pasadena (CA): Water and Wastewater Rate Study
Raftelis assisted Pasadena Water and Power in preparing its first professional water rate study, and Steve is serving as the Project Manager. Raftelis helped Specialties
• Utility cost-of-service & rate
structure studies
• Conservation rate studies
• Economic feasibility studies
• Capital budgeting studies
• Wastewater rate studies
• Capital recovery/capacity fee
studies
• Survey research of water &
wastewater utility characteristics &
rates
Professional History
• Raftelis: Vice President (2023-
present); Senior Manager (2020-
2022); Manager (2017-2019); Senior
Consultant (2014-2016)
• APTwater, Inc. (Now Ultura): project
manager (2011-2014)
• PBS&J (now ATKINS): project
manager - Utility Finance (2005-
2011)
• Earth Tech (now AECOM): Senior
project manager (2004-2005)
• Malcolm Pirnie, Inc. (now
ARCADIS): Consultant (2002-2003)
• National Parks Conservation
Association - Business Plan
Initiative: Business Plan Consultant
(2000)
• U.S. Army Corps of Engineers -
New England Division: project
manager (1995-1999)
• Geophex, Limited: Graduate
Research Assistant (1994)
Education
• Master of Business Administration -
University of Southern California
(2001)
• Master of Science in Environmental
Engineering - University of
Massachusetts (1995)
• Bachelor of Science in Civil
Engineering - University of
Massachusetts (1994)
Certifications
• Registered Professional
Environmental Engineer in Arizona
• Series 50 Municipal Advisor
Representative
Professional Memberships
• AWWA
Item 5.

RAFTELIS 33
the City select a rate structure by discussing the pros and cons of different rate structures. We prepared a financial plan to ensure rate revenue recovers all costs and will complete a cost-of-service study to allocate costs to each customer class, followed by a rate design to collect costs from each class based on the cost of service. Raftelis is conducting a wastewater rate study.

City of San Francisco Public Utilities Commission (CA): Water and Wastewater Rate Study In early 2023, Raftelis assisted the City of San Francisco Public Utilities Commission to develop a financial plan and set rates for their water and wastewater utilities. The City has one of the lowest per capita water use in the state at 4 hundred cubic feet per single-family home per month. The City operates a very large water system that serves the city and many surrounding wholesale agencies. Raftelis worked with City Staff to functionalize their operating costs and develop a two-tiered rate for residential customers. Raftelis supported staff during rate committee presentations. The rates were adopted in the Spring of 2023. Steve served as the Project Manager for the water rate study.

City of Manhattan Beach (CA): Water Financial Plan and Rate Study Steve helped the City of Manhattan Beach to create a water financial plan and set rates. The City had two major concerns; 1) wells were impaired in the near term and the city would have to purchase more imported water and 2) the City was unsure about tiered rates given recent litigation. Steve worked with city staff to discuss the pros and cons of tiered rates. After reviewing these pros and cons with the city attorney and manager, staff recommended cost based tiered rates as of this writing. Steve presented the financial need and rate study results to city council and the public.

Otay Water District (CA): Wate Rate Study
Steve led a recent water rate study for the District in the Spring of 2022. Working with the District he updated their cost-of-service study, rate structure which included tier breakpoints. The District decided to use the Commodity Demand method and only base (commodity) and max day cost components as opposed to max day and max hour components. Based on discussions with District operations staff, the project team decided to allocate water purchase costs to what is termed base costs, reducing the water rate for tiers 1 and 2.

City of Tracy (CA): Wastewater Rate Study
In 2019, the City of Tracy (City) engaged Raftelis to perform a wastewater rate study. Raftelis is currently working with City staff to best plan for expenses to minimize customer impacts, and Steve is serving as Project Manager.

Running Springs Water District (CA): Water and Wastewater Rate Study Steve assisted the Running Springs Water District (District) establish water and wastewater rates and evaluate the financial health of the Fire and Ambulance Department. The District is unique in that many residents are absentee owners of vacation homes. As such, the District is maintaining a higher than average level of fixed charges for both water and sewer to equitably distribute costs among full-time and part time residents. Steve also prepared a 10-year financial plan for the Fire and Ambulance Department showing its financial health under different property tax, other revenue and expenses assumptions, including fire engine replacement.

City of Pomona (CA): Water, Recycled Water, and Wastewater Rate Study Steve helped the City of Pomona (City) establish water, recycled water and wastewater rates. He established defensible tiered rates based on the City’s multiple sources of water and use characteristics. He also established pumping charges based on the costs associated with serving water to high elevation customers. The engagement included working with rate committee members, staff and council members to ascertain their rate setting goals. It also included a 10-year financial plan and modeling rates under industry standard reserve targets.

Item 5.

RAFTELIS 34
Amanda Guci

ELECTRIC PROJECT ADVISOR
Manager (Raftelis)

PROFILE
Amanda is a manager with extensive utility regulatory experience focusing in the areas of cost of service and rate design, financial modeling, and financial plans. She provides rate and regulatory consulting for municipal and investorowned electric, gas, water and wastewater utilities. She is an expert modeler in the development of long-range financial plan models customized to client’s needs. Her expertise also includes studies such as cost-of-service, financial and operational feasibility, asset management and affordability analyses.

KEY PROJECT EXPERIENCE
Cleveland Public Power (OH): Comprehensive Electric Financial Plan, Cost of Service Study and Rate & Fee Analyses
Amanda is serving as the project manager for the Comprehensive Financial Plan, Cost of Service Study and Rate & Fee Analyses. The team is currently developing a financial planning model for the Electric utility. Raftelis will complete a comprehensive cost of service study and implement rate restructuring for the next 5 years to ensure that the utility meets debt service coverage and other key financial metrics. The team also established ancillary fees as identified by the client to cover expected costs. And finally, we will assist with a strategic communications plan to present the study results to the Mayor, City Council and other public stakeholders.

City of Orangeburg (SC): Electric and Gas Comprehensive Cost of Service Study
Amanda is serving as the Electric and Gas lead for the Comprehensive Cost of Service Study for its Electricity, Natural Gas, Water, Wastewater and Fiber Optic systems and evaluation of shared services and costs. The team updated the financial planning model for all utility systems and is currently evaluating cost of service. This study will identify the costs to serve each specific type of utility the DPU offers and will be used to help support rate development and modeling in future years.

City of Georgetown (SC): Utility Rates Study – Water, Sewer, and Electric Amanda was serving as the Electric lead for the Utility Rates Study – Water, Sewer, and Electric. The team evaluated the utility fund revenues and expenses and examined the current Water, Sewer and Electric rate structure.

Raftelis established a strategic plan to self-sustain each enterprise fund and provided recommendations on existing rate ordinances based on the study findings. Amanda is currently serving as the project manager for a Comprehensive Rate study that is performing financial planning, cost of service and rate restructuring analysis.

City of Aspen (CO): Cost of Service Utility Rate Analysis and Business Plan Amanda was serving as the Electric lead for the Cost-of-Service Utility Rate Analysis and Business Plan. The team evaluated the long-range financial plan and developed a revenue recovery and cost of service model. In addition, the team assisted the City with critical tasks such as the evaluation of energy and demand pattern of Electric Vehicles Specialties
• Financial Analysis and Modeling
• Cost of Service
• Rate Design
• Affordability Analysis
• Capital Overhead Studies
• Capital Prioritization/ Asset
Management
• Economic Feasibility Evaluation
• Financial Forecasting
• Bond feasibility studies
Professional History
• Raftelis: Manager (2022-present)
• Black & Veatch: Manager (2020-
2021)
• Black & Veatch: Consultant (2013-
2020)
Education
• Master’s in Business Administration
- University of Central Florida (2012)
• Bachelor of Science in Business
Administration, Finance – University
of Florida (2010)
Certifications
• Municipal Advisor Representative
(Series 50)
Professional Memberships
• AWWA
• APPA
Item 5.

RAFTELIS 35
(EV) charging stations, impacts of increased demand for beneficial electrification, and the evaluation of costs associated with PV solar customers.

Greenville Utilities Commission (NC): Water and Wastewater Cost of Service, System Development Fees and Rate and Financial Planning Model Reset; Gas System Rate Study; Electric Cost of Service and Rate Design
Amanda is currently serving as the project manager for a comprehensive Gas System Rate Study for GUC (2024- 2025). The study entails developing GUC’s revenue requirements for its gas utility and reviewing in detail the costs of service to determine the functional cost components and evaluating the rate structure for its effectiveness in equitably recovering revenues from customers served within each rate class. The Gas System Rate Model will incorporate new elements to promote functionality and the reporting requirements requested by GUC.

The water and wastewater rate and financial planning model, currently in use by GUC staff was rebuilt in 2012, 2017 and was rebuilt once again in 2022. Amanda served as the assistant project manager for the 2022 study and lead the rebuild of revenue model as well as the cost of service and rate design model. In addition, Raftelis built a miscellaneous fees model to assess the adequacy of these fees and charges.

Experience under previous employer: Amanda led the development of an Electric Cost of Service and Rate Design in 2015 and an update of the study in 2018. Amanda developed a comprehensive financial model which evaluated the adequacy of the existing rates for utility service, provides a class cost of service analysis, and a detailed rate design.

Amanda also complete a weather normalized analysis and the Miscellaneous Service Fees and Charges study.

Amanda also performed a bond feasibility analysis for the City of Greenville, NC Electric and Gas Utility (2016 and 2019). She prepared the feasibility evaluation of the Forecast Statements of Revenues, Expenses, Debt Service and Debt Service Coverage relating to the electric and gas systems. She reviewed the methodologies, procedures and assumptions utilized in developing the projections. Amanda served as the lead consultant for a comprehensive Gas System Rate Study for GUC (2019-2020).

City of Camden (SC): Work Utility Rates Study – Water, Sewer, and Electric Amanda served as the Electric lead for the Work Utility Rates Study – Water, Sewer, and Electric. The team developed financial planning models for the all three utilities and evaluated the sufficiency of the revenues to meet the utilities revenue requirements. Raftelis designed equitable rates and provided recommendations for the City to ultimately reach self-sufficiency for each system during the forecast period.

Experience with Prior Employer
• Confidential Client (MN): Gas Cost of Service, Rate Design Study Rate and Rate Case Support • Confidential Client (OH): Gas Cost of Service, Rate Design Study Rate and Rate Case Support • Columbia Gas of Kentucky (KY): Zero Intercept Analysis • Confidential Client (New Brunswick, Canada): Rate Study and Regulatory Support • Sikeston Board of Municipal Utilities (MO): Five-Year Report on the Electric System • Vectren Energy Delivery of Indiana, North and South (IN) • Next Era-Gulf Power Company/ Florida Power and Light (FL): Rate and Tariff Provisions • JEA (FL): Depreciation Study (2019) Cost of Service and Revenue Model Review Item 5.

RAFTELIS 36
Lindsay Roth

WATER AND WASTEWATER ANALYST
Consultant (Raftelis)

PROFILE
Lindsay has over four years of experience working in the environmental field and has a graduate degree in water resources management. At Raftelis, she has contributed to financial models and analyses for water and wastewater rate studies as well as bill impact analyses. Prior to joining Raftelis, Lindsay was a student consultant for the North Carolina Department of Environmental Quality, assessing the state’s algal bloom monitoring program and nutrient criteria. She also interned for the Conservation Trust for North Carolina, developing best practices for the organization to participate in community-based environmental justice. She is based in Raftelis’ Los Angeles Office.

KEY PROJECT EXPERIENCE
City of Coronado (CA): Wastewater Rate Study
The City of Coronado (City) engaged Raftelis in 2021 to review and evaluate the City’s current rate-setting methodology, update the financial plan for a five-year period, and propose rates for 2022. The City’s sewer rates included contracted transportation and treatment fees for three US Navy Campuses.

Lindsay served as the lead analyst on the study update. She developed a financial plan and worked with the project team to evaluate potential rate structure alternatives.

City of Hayward (CA): Water, Recycled Water, Wastewater, and Capacity Fee Rate Study The City of Hayward (City) engaged Raftelis in 2022 to conduct a comprehensive water, recycled water, and wastewater cost of service and rate study and a capacity fee study proposing rates for the next two years and to provide a financial plan and rate model to serve as a planning resource for future use. The project required a balance of multiple financial objectives, including managing increasing water costs from the San Francisco Public Utilities Commission while also producing rates that were affordable for all customer classes as well as planning for large wastewater capital expenditures over the next 10 years. Lindsay served as a consultant on the project and assisted in the development of an updated 10-year financial plan for the City and a detailed rate study report explaining each step of the rate study process.

City of Hollister (CA): Water Rate Study
City of Hollister (City) engaged Raftelis in 2021 to conduct a water and wastewater cost of service and rate study as well as a water and wastewater capacity fee study. Lindsay served as an associate consultant on the project and was the lead analyst for the cost of service and rate study. The study required Raftelis to develop rates that built up reserves over time without creating rate shock to water users as well as work with the project team and City staff to evaluate various rate structure options. Lindsay also wrote a detailed rate study report explaining every step of the rate study and capacity fee study process.

Specialties
• Data analysis & visualization
• Water & sewer financial analysis
• Statistical analysis
Professional History
• Raftelis: Consultant (2023-present);
Associate Consultant (2020-2022)
• North Carolina Department of
Environmental Quality: Student
Consultant (2019-2020)
• Conservation Trust for North
Carolina: Disaster Mitigation and
Climate Resiliency Intern (2019)
Education
• Master of Environmental
Management in Water Resources
Management - Nicholas School of
the Environment, Duke University
(2020)
• Bachelor of Science in Earth and
Environmental Sciences - Tulane
University (2016)
Item 5.

RAFTELIS 37
City of Pleasanton (CA): Water, Wastewater, Capacity Fee, and Drought Rates Study City of Pleasanton (City) engaged Raftelis in 2019 to update its water, recycled water, and wastewater rates as well as conduct capacity fee and drought rate studies. Lindsay is serving as lead analyst on the City’s rate study. The study involves developing long-term financial plans, conducting cost of service analyses, and designing rate structures for each of the three enterprises. The main considerations for the study include funding capital projects to remediate PFAS groundwater contamination, maintaining financial sufficiency for all enterprises, encouraging conservation during periods of drought, and reducing rate shock to customers.

City of Redlands (CA): Water and Wastewater Rate Study
The City of Redlands (CA) engaged Raftelis in 2022 to conduct a water, wastewater, and recycled water rate study.

Lindsay is serving as the lead analyst on the City’s rate study. The study involves the development of a long-term financial plan, conducting updated cost of service analyses, and designing rates for each of the three utilities. Some of the main considerations for the study are increased CIP costs for the water and wastewater utilities in the shortterm, maintaining sufficient reserves, and reducing rate shock to customers.

San Lorenzo Valley Water District (CA): Water and Wastewater Rate Study The San Lorenzo Valley Water District (District) engaged Raftelis in 2023 to conduct a water and wastewater rate study. Lindsay is serving as the lead analyst on the District’s rate study. The study involves the development of a long term financial plan for each utility, conducting an updated cost of service for the water utility, and designing rate alternatives for the water utility. The District has incurred large CIP costs in recent years as a result of wildfires throughout the region, so one of the main considerations for the study is modeling various funding sources for the District in addition to building up sufficient reserves to fund emergency expenses in the future while avoiding rate shock to customers.

Soquel Creek Water District (CA): Water Rate Study And Capacity Fee Study The Soquel Creek Water District (District) engaged Raftelis in 2023 to conduct a comprehensive water rate study proposing rates for the next four years and to provide a financial plan and rate model to serve as a planning resource for future use. The project required balancing multiple financial objectives, including rate revenue stability, social equity of rates, promoting efficient water use, and reducing rate shock and bill impacts to customers. Lindsay is serving as lead analyst on the project and is developing a long term financial plan, a cost of service analysis, and rate design alternatives as part of the rate study model.

City of South Gate (CA): Wastewater Rate Study
The City of South Gate (City) engaged Raftelis in 2022 to conduct a wastewater rate study proposing rates for the next five years. The City had not implemented any rate increases for several years before the rate study. Therefore, Raftelis had to balance the City’s objectives of preventing rate spikes with ensuring revenue. Lindsay served as the lead analyst on the project and developed a long term financial plan, a cost of service analysis, and a rate design as part of the rate study model for the project.

City of Thousand Oaks (CA): Water and Wastewater Rate Study City of Thousand Oaks (City) engaged Raftelis in 2021 to conduct water and wastewater financial plan update as well as a water rate study. Lindsay served as an associate consultant on the project and helped to develop an updated water rate model and an updated wastewater financial plan model forecasting projected revenues and expenditures for the next 5 years. The study required Raftelis to develop rates that accounted large CIP project expenditures planned for the study period for both the water and wastewater utilities while avoiding rate shock for customers. The updated models also included various capital expenditure and rate adjustment scenarios in order to aid in the City’s decision-making process.

Item 5.

RAFTELIS 38
Ashley Blank

ELECTRIC ASSISTANT PROJECT MANAGER
Analyst (KRSA)

PROFILE
As a new Analyst to K. R. Saline & Associates, Ashley’s experience includes 15 years of past retail management experience analyzing, purchasing and managing budgets for multimillion dollar inventory selections. Ashley also brings an additional two years of experience as a project team leader where she was responsible for determining and implementing an organizational budget management and reporting process for clients and internal stakeholders.

Ashley has an excellent track record of analyzing large data sets and determining the best solutions for all stakeholders.

KEY EXPERIENCE
• Develop rate comparisons based on current rates, recommended rates based on usage, and competitive rate analysis.
• Provide monthly data analysis and formatted reporting of meter billing for multiple clients. • Preparation of presentation materials for utility district analysis and overview of loads and resources. • Creation and analysis of customer forecasts using long-term demand history to maintain visibility to budgetary needs.
• Responsible for negotiating purchase costs, purchasing inventory, and maintaining an inventory budget of $120 million across two distinct categories.
• Established business measurables and metrics for success, developed business rules, data best practices, and effective collaboration with the development team to integrate a new internal database into our Power BI Reporting system.
• Leveraged project management tools to improve efficiency and collaborate with various teams to support company goals.
• Conducted in-depth analyses and offered valuable insights on recruiting metrics to both leadership stakeholders and the recruiting team, driving informed decision-making and facilitating positive change. • Conducted a comprehensive review of inventory, forecasted long-term inventory needs, and served as a primary contact for suppliers in day-to-day interactions. • Responsible for making decisions on buying, communications, and negotiation.

Experience
• 15 Years. Joined KRSA in 2024.

Education
• iMBA, Southern New Hampshire
University, 2017
Item 5.

RAFTELIS 39
Kent Simer

ELECTRIC PROJECT ADVISOR
Senior Analyst (KRSA)

PROFILE
As a Senior Analyst at K. R. Saline & Associates, Kent’s experience in the utility industry includes economic analyses and computer‐aided modeling for power supply planning, load forecasting, financial forecasting, cost/benefit analysis, rate studies, and expert testimony on revenue requirements and rate design matters. In recent years Kent has been assisting Tribal utilities throughout California conducting utility feasibility analysis, long range resource planning and CAISO integration, and resource adequacy compliance reporting.

KEY EXPERIENCE
• Supported utility planning through development of long-range load power requirements forecast based on econometric and time series techniques that incorporated regional economic, demographic, and climatological data to develop independent energy forecasts. • Provide cost-of-service and rate design studies for public, municipal, and tribal utilities throughout the southwest and present results to the utility boards and city council representatives. • Provided expert testimony before the Arizona Corporation Commission in water rate hearing regarding use and usefulness of plant, rate shock mitigation, and rate design. Analysis included the evaluation of rate impacts of alternative rate base treatment of plant, CFUDC and depreciation. • Conducted feasibility analysis of a new wholesale Tribal Utility Authority in California. • Supported renewable energy development through development of community survey, historical review, analysis of utility preparedness, prepare feasibility/cost-benefit analysis and provided strategic planning to Arizona utilities.
• Conduct integrated resource planning activities for utilities to evaluate energy resources contracts and longterm energy requirements to support resource RFP development. • Assist California utility with California Energy Commission resource adequacy compliance and annual reporting requirements.
• Assist California utility with development of new resources and CAISO integration.

Experience
• 25+ Years. Joined KRSA in 1998.

Education
• B.I.S. Small Business &
Communication, Arizona State
University, 2003
• MBA, (Coursework toward),
University of Phoenix
Certifications
• Advanced Cost of Service and
Retail Rate Design
• American Public Power Association
2005
Publications
• 2008 Arizona Biannual
Transmission Assessment
Item 5.

RAFTELIS 40
Jeffrey Woner

ELECTRIC PROJECT ADVISOR
Partner (KRSA)

PROFILE
As one of the partners at K. R. Saline and Associates, Jeffrey provides clients with decades of experience in the fields of economic analyses and computeraided modeling for power supply planning, load forecasting, financial forecasting, cost/benefit analysis and rate studies. He has participated in several utility financings (approximately $500 million) as well as several projects relating to the compliance of environmental regulations. Jeffrey also provides ongoing consulting services for numerous irrigation and electrical districts, municipal utilities and tribal utilities located in Arizona.

KEY EXPERIENCE
• Jeffrey assists Colorado River Energy Distributors Association in the analysis of Western Area Power Administration PRS results, rate filings, and participates in Public Information Forums and Public Comment Forums for federal rate making for Salt Lake City Area Integrated Projects power and transmission rates on an ongoing basis.
• Jeffrey was responsible for the development of an unbundled open access transmission rate analysis, the development of rates for ancillary services and the development of an open access tariff. The cost-of-service study determined the unbundled cost of providing transmission service to customers wishing to use California Imperial Irrigation District’s transmission system as well as the unbundled costs to provide scheduling services, regulation, energy imbalance, reactive supply & voltage control, spinning and supplemental reserves.
• Jeffrey was primarily responsible for the cost-of-service portion of the rate study for the City of Colton California which has an annual budget of more than $23 million and an annual peak of 40MW. The cost-ofservice study determined the cost to serve each of the City's customer classes and provided a guideline as to the amount of revenues that should be recovered from each rate class. Jeffrey was also instrumental in the actual rate design of the new rates. The design of the new rates included a marginal cost analysis and the development of time-of-use rates for one class of large general service customers. • Jeffrey has been responsible for the development of financial plans and rate development for multiple Arizona utilities.

Experience
• 30+ Years. Joined KRSA in 1995.

Education
• B.S. Biology, University of Arizona
• M.S. Economics, Arizona State
University
Item 5.

RAFTELIS 41
Dennis Delaney PE (AZ)

ELECTRIC PROJECT ADVISOR
Partner (KRSA)

PROFILE
As one of the partners at K. R. Saline & Associates, Dennis provides ongoing consulting services to a number of Arizona and California irrigation and electrical districts, municipal utilities, and tribal utilities. Dennis has performed various engineering and economic analyses including representation of various entities in front of federal and state agencies. He consults with governing bodies and negotiates necessary programs and policies on their behalf. He has extensive experience in power scheduling, power supply, power pooling, and transmission and distribution planning.

KEY EXPERIENCE
• Dennis was instrumental in the development of SPPA and Joint Action Agency (JAA) formed under Arizona Statue. SPPA was formed in 2014. Dennis has served as the Project Manager from 2014 to date.

Dennis reports directly to the SPPA Board of Directors. As the SPPA Project Manager, Dennis manages all SPPA activities including managing the SPPA Power Pool. The SPPA Power Pool aggerates the loads and resources of the pool participants. SPPA Power Pool peak load is approximately 800 MW. SPPA Power Pool resources include federal resources, thermal and renewable contracts. SPPA has no fulltime staff.

KRSA staff assists Dennis in managing SPPA activities.
• Prior to the formation of SPPA Dennis oversaw the resource management and scheduling for over 25 irrigation and electrical districts, municipal utilities, and tribal utilities in Arizona. • Dennis provided comments on FERC Order 888 rulemaking and expert testimony and analysis of FERC OATT filings of Arizona Utilities. He provides OATT economic and unbundling analysis and has assisted numerous clients in evaluating options of OATT service including Network Service Applications, Point‐To‐ Point Service Applications, Good Faith Requests, Direct Assignment Facility cost analysis and advises on OATT administration, compliance and FERC Order 889 issues.

Experience
• 39+ Years. Joined KRSA in 1992.

Education
• B.S. Electrical Engineering, Arizona
State University
Registration
• Professional Engineer, AZ #27320
Item 5.

RAFTELIS 42
Daniel Pritchard

ELECTRIC ANALYST
Senior Analyst (KRSA)

PROFILE
Daniel provides ongoing consulting service responsibilities for numerous electric districts, tribal and municipal utilities in Arizona ranging from rate analysis support, economic and financial analysis, contract analysis, compliance with federal reporting mandates, and power invoice confirmation.

Daniel participates in multiple scheduling, administration and public ratemaking processes for hydroelectric resources available to Arizona utilities.

Daniel joined KRSA in 2006.

KEY EXPERIENCE
• Participates in Western Area Power Administration (Western) power and transmission rate processes. • Develops and prepares monthly budget reporting documents including updated power forecasts based on prevailing market data.
• Assists the economic dispatch and integration of monthly Hoover schedules. Daniel assists in the management of the layoff program on behalf of numerous APA customers and works closely with the APA staff to monitor and manage the program.
• Oversees the preparation FORM-861 Energy Information Administration filings for 19 electric utilities.

Additional responsibilities include the annual filing of FORM-176, Annual Report of Natural and Supplemental Gas Supply and Disposition, for the City of Safford’s Gas Utility. • Assist numerous Western Area Power Administration (Western) customers and is responsible for the hourly customer schedules and allocation of fixed contract costs. • Oversees the preparation of integrated resource plans for a total of twenty‐four utilities, including electrical, irrigation and power districts, municipal utilities and a tribal utility authority. These Plans are prepared in conformance as described in the Energy Planning and Management Program (10 CFR Part 905) and are submitted to the Western Area Power Administration.

Experience
• 18+ Years. Joined KRSA in 2006.

Education
• B.S. Economics and Business
Administration, University of
Arizona, 2006
Item 5.

RAFTELIS 43
APPENDIX B: RELEVANT LICENSE
Appendix B: Relevant
License
Item 5.

RAFTELIS 44
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10/16/2024
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10/16/2024
Item 6.

Item 6.

Item 6.
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Item 6.

M I N U T E S

REGULAR MEETING OF THE CITY COUNCIL

NEEDLES PUBLIC UTILITY AUTHORITY

HOUSING AUTHORITY CITY OF NEEDLES

CITY OF NEEDLES, CALIFORNIA
EL GARCES – 950 FRONT STREET, NEEDLES
CALL TO ORDER – Mayor Jernigan called the meeting to order at 5:36 PM

ROLL CALL

PRESENT
Council Member Jamie McCorkle
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Tona Belt
Council Member Henry Longbrake
ABSENT – Mayor Jernigan announced an excused absence for:

Council Member Ellen Campbell
Vice Mayor Kirsten Merritt
Also Present: Deputy City Attorney Lena Wade, City Manager Patrick Martinez, Utility Manager Rainie Torrance, and Assistant City Clerk Candace Clark.

RECESSED THE CITY COUNCIL MEETING AND CONVENED A JOINT CITY COUNCIL / NPUA / HACN MEETING at 5:37 PM
PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION ITEMS - None RECESSED TO EXECUTIVE SESSION at 5:37 PM

EXECUTIVE SESSION
a. Public Employee Performance Evaluation Pursuant to Govt Code Section 54957.

Title: City Manager
No Reportable Action
EXECUTIVE SESSION REPORT – given by Deputy City Attorney Wade as indicated above.

CALL TO ORDER - Meeting called to order at 6:13 PM

ROLL CALL

PRESENT
Council Member Jamie McCorkle
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Tona Belt
Council Member Henry Longbrake
ABSENT
Council Member Ellen Campbell
Vice Mayor Kirsten Merritt
PLEDGE OF ALLEGIANCE - Led by Mayor Jernigan
INVOCATION - Given by Mayor Jernigan

APPROVAL OF AGENDA
Council Member Belt made a motion, second by Council Member Pogue to approve the agenda. Motion carried by the following roll call vote:

Ayes: Council Members McCorkle, Pogue, Belt, and Longbrake Item 7.

Noes: None

Absent: Council Member Campbell and Vice Mayor Merritt
Abstain: None
CONFLICT OF INTEREST - None
CORRESPONDENCE - None
INTRODUCTIONS - Mayor Jernigan acknowledged Former Council Members Tim Terral and Zachery Longacre in attendance.

CITY ATTORNEY – Parliamentary Procedures given by Deputy City Attorney Wade

PUBLIC APPEARANCE
Jared Johnston reported Caltrans used 10 gallons of paint to clean up graffiti and urged the community to report any graffiti to Caltrans.

PRESENTATION

1. PowerPoint Presentation given by Erin Fox, Disaster Program Manager for American Red Cross San Bernardino Chapter.

PUBLIC HEARINGS

2. Adopt Housing Authority of the City of Needles (HACN) Resolution No. 2024-7-HACN, Amending Housing Authority of the City of Needles (HACN) Resolution 2024-6-HACN and Removing and Replacing the Admissions and Continued Occupancy Plan (ACOP), Public Housing Pet Policy, and Public Housing Lease Agreement Staff Report given by City Manager Martinez and Housing Manager Deermer Council had minimal questions of staff
Mayor opened the public hearing at 6:44 PM
Public Comment - None
Mayor closed the public hearing at 6:44 PM
Motion made by Member / Council Member McCorkle, Second by Member / Council Member Pogue, to Adopt Housing Authority of the City of Needles (HACN) Resolution 10-08-24-HACN, Amending Housing Authority of the City of Needles (HACN) Resolution 2024-6-HACN and Removing and Replacing the Admissions and Continued Occupancy Plan (ACOP), Public Housing Pet Policy, and Public Housing Lease Agreement.

Motion carried by the following roll call vote:

Ayes: Members / Council Members McCorkle, Pogue, Member / Mayor Jernigan, Members / Council Members Belt, and Longbrake Noes: None

Absent: Member / Council Member Campbell and Member / Vice Mayor Merritt Abstain: None

3. Public hearing noticed to consider all evidence and testimony for or against adopting an Amended Appendix to the Conflict of Interest Code pursuant to the Political reform Act of 1974 has been continued to October 22, 2024.

COUNCIL / NPUA CONSENT CALENDAR
Member / Council Member Pogue made a motion, second by Member / Council Member Belt, to approve Council / NPUA Consent Items 4 through 8.

Motion carried by the following roll call vote:

Ayes: Members / Council Members McCorkle, Pogue, Member / Mayor Jernigan, Members Council Members Belt, and Longbrake
Noes: None
Item 7.

Absent: Member / Council Member Campbell and Member / Vice Mayor Merritt Abstain: None

4. Authorized the City Manager to execute the California Colorado River Contractors Forbearance Agreement for 2024-2026 with Coachella Valley Water District, Imperial Irrigation District, Palo Verde Irrigation District and the Metropolitan Water District of Southern California to allow water to be conserved under the U.S. Bureau of Reclamation’s conservation program to be added to Lake Mead

5. Authorized the purchase from Brax for two pumps for Bazoobuth Lift Station not to exceed $35,000 from Wastewater Asset Replacement

6. Adopted the Needles Solar Energy Sites Evaluation dated August 12, 2024

7. Authorized the City Manager to execute the Physical Security Exemption Letter dated October 1, 2024 and submitted it to the California Public Utility Commission (CPUC)

8. Adopted the 2024 Needles Public Utility Authority Wildfire Mitigation Plan Version 5.0.

END OF COUNCIL / NPUA CONSENT CALENDAR

ADJOURNED THE JOINT COUNCIL / NPUA / HACN MEETING AND CONVENED A JOINT COUNCIL / HACN MEETING at 6:46 PM
PUBLIC COMMENTS PERTAINING TO THE COUNCIL / HACN ITEMS - None

HACN / COUNCIL REGULAR ITEMS

9. Housing Authority of the City of Needles Update
Introduced by City Manager Martinez and given by Housing Manager Deermer

10. Waive the bid process and retain Smith Marion & Co., for the Housing Authority Audit for Fiscal Year ending June 30, 2024 in an amount not to exceed $20,778.

Motion made by Member / Council Member McCorkle, Second by Member / Council Member Pogue, to waive the bid process and retain Smith Marion & Co., for the Housing Authority Audit for Fiscal Year ending June 30, 2024 in an amount not to exceed $20,778.

Motion carried by the following roll call vote:

Ayes: Member / Council Member McCorkle, Member / Mayor Jernigan, Members / Council Members Pogue, Belt, and Longbrake
Noes: None

Absent: Member / Council Member Campbell and Member / Vice Mayor Merritt Abstain: None

ADJOURNED THE HOUSING AUTHORITY OF THE CITY OF NEEDLES MEETING AND RECONVENED THE CITY COUNCIL MEETING at 6:58 PM
PUBLIC COMMENTS PERTAINING TO THE CITY COUNCIL ITEMS - None

COUNCIL CONSENT CALENDAR
Council Member Longbrake pulled item 21 for discussion.

21. Accept Change Order No. 1 for the Phase IV-A Street Improvements Project increasing the contract with Vance Corporation by $167,707.09 for a new total contract amount of $1,501,026.20.

City Manager Martinez gave staff report.

Council Member McCorkle made a motion, second by Council Member Belt to accept Change Order No. 1 for the Phase IV-A Street Improvements Project increasing the contract with Vance Corporation by $167,707.09 for a new total contract amount of $1,501,026.20.

Motion carried by the following roll call vote: Item 7.

Ayes: Council Members McCorkle, Pogue, Belt, and Longbrake Noes: None

Absent: Council Member Campbell and Vice Mayor Merritt
Abstain: None
Council Member McCorkle made a motion, second by Council Member Pogue to approve consent calendar items 11-20.

Motion carried by the following roll call vote:

Ayes: Council Members McCorkle, Pogue, Belt, and Longbrake Noes: None

Absent: Council Member Campbell and Vice Mayor Merritt
Abstain: None

11. Approved the Warrants Registers through October 8, 2024.

12. Approved the Minutes of September 10, 2024

13. Waived the reading and adopted Ordinance 667-AC Adopting the California Building Standards Code 2022 Edition; Rescinding Ordinance No. 635-AC adopting the California Building Stands Code 2019 Edition; Amending Municipal Code Article IV "Uniform Administrative Code" and Chapter 2 “Administration” Section 2-10 "Adopted by Reference Where Filed" and Amending Sections of Chapter 6 “Building Regulations.” (2nd Read Adopt)

14. Approved the removal of Commissioner Renfro from the Parks and Recreation Commission due to excessive unexcused absences.

15. Accepted the Best Friends Animal Society Grant Agreement dated September 24, 2024 and adopted an FY 25 budget adjustment of $8,000.

16. Authorized the purchase of 1 used John Deere 2500B to Storz Equipment not to exceed $24,243.75 utilizing the adopted FY 25 Golf Course Budget

17. Reviewed and approved new rules/regulations for Duke Watkins Parks Pump Track, Art Wall and Splash Pad.

18. Approved recommended changes to the Youth Sports Handbook.

19. Accepted the work completed by Superb Engineering, Inc. for the Golf Course Irrigation and Efficiency Project, Phase 1; and authorized a NOTICE OF COMPLETION to record with the San Bernardino County Recorder’s Office.

20. Accepted Amendment No. 2 to the Professional Services Agreement with TKE Engineering, Inc. to Provide On-Call Supplemental Engineering Consulting Support Services and authorized staff to issue a Notice to Proceed.

END OF COUNCIL CONSENT CALENDAR

REGULAR COUNCIL ITEMS

22. Form a Route 66 100th Anniversary Ad-Hoc Committee
City Manager Martinez gave staff report.

Council Member Pogue made a motion, second by Council Member Belt to appoint Mayor Jernigan, Council Members Campbell and McCorkle to the Route 66 100th Anniversary Ad-Hoc Committee.

Motion carried by the following roll call vote:

Ayes: Council Members McCorkle, Pogue, Belt, and Longbrake Noes: None
Item 7.

Absent: Council Member Campbell and Vice Mayor Merritt
Abstain: None

23. Cancel the November 26 and December 24, 2024, regular City Council/ NPUA / HACN meetings due to the holidays.

City Manager Martinez gave staff report.

Council Member Pogue made a motion, second by Council Member Longbrake to cancel the November 26 and December 24, 2024, regular City Council/ NPUA / HACN meetings due to the holidays.

Motion carried by the following roll call vote:

Ayes: Council Members McCorkle, Pogue, Belt, and Longbrake Noes: None

Absent: Council Member Campbell and Vice Mayor Merritt
Abstain: None

24. Employee Appreciation Event
City Manager Martinez gave staff report.

Council discussion ensued. Staff will look at available dates.

CITY ATTORNEY REPORT
Deputy City Attorney Wade had nothing to report.

CITY MANAGER REPORT - given by City Manager Martinez
City Manager's Report for the weeks of September 20 and September 27, 2024.

COUNCIL REQUESTS
Council Member McCorkle - asked about the speed limit in Rio Buena Vista, Colorado Shores, and Verde Shores; reported on tagging around town and asked if the city could write a letter recommending community service to offenders; reported on her attendance at ICSC Western in Palm Springs.

Council Member Pogue - Reported on the State of the City Council Member Belt - Asked about putting up No Smoking signs in the parks.

Council Member Longbrake - Reported on ICSC Western in Palm Springs; requested the city clean up the trash behind Lilly Hill Apartments; stated that there are 3 drinking fountains at Jack Smith Park but only one works.

Mayor Jernigan - Reported on the State of the City, her attendance at Mobility 21 Summit, State of the County, and ICSC Western; announced Homecoming nights for the parade, bonfire, football game, and dance; announced the Fall Festival on November 2, the Veteran's Pancake Breakfast on November 9, and the 10-10 Event on October 10.

ADJOURNMENT - Mayor Jernigan adjourned the meeting at 7:22 PM Mayor Janet Jernigan Assistant City Clerk Candace Clark Item 7.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: October 22, 2024
Title: Accept Proposal from Phillips Excavating, Inc. for the Well 11 to Well 15 Intertie Project
Background: The City Council passed Emergency Resolution 2024-18 on March 12, 2024, which declared a local emergency because there is only one well operating as a result of two (2) of the City’s three (3) wells having manganese and iron levels exceeding levels set by the State of California for drinking water.

The City has received emergency grant funding from the State of California’s Drinking Water State Revolving Fund (DWSRF) (Project No. 3610032-006C, Amendment No. 3) to design and replace the treatment system at Well No. 11, install a standby generator, and make other necessary improvements at the Well No. 11 site that would allow the removal of iron/manganese from the potable water.

Phase 6B of the grant funding includes designing and constructing a 16” transmission main to deliver raw water from Well 15 to the latest treatment facility at Well 11.

Under the Emergency Resolution, Phillips Excavating, Inc. has provided a proposal for $436,065 to install the 16” water pipe previously purchased by the City under this order.

Fiscal Impact: Grant funding for Phase 6B of the DWSRF (Project No. 3610032- 006C) to reimburse the total project cost of $478,506.50 plus the initial cost of the pipe to be installed.

Recommended Action: Accept Proposal from Phillips Excavating, Inc. for the Well 11 to Well 15 Intertie Project in the amount of $435,065 plus 10% contingency for a total project cost of $478,506.50 and authorize staff to execute a Public Works Agreement with Phillips Excavating, Inc. and move forward with the Notice of Award and Notice to Proceed.

Submitted By: Kathy Raasch, Director of Development Services/Capital Projects City Manager Approval: Date:

Other Department Approval (when required): Date:

Approved: Not Approved: Tabled: Other:

Agenda Item: ____________
10/16/2024
10/16/2024
Item 8.

Item 8.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: October 22, 2024
Title: Resolution No. 2024-41 waiving the sealed bid process and accepting a budgetary quote from Flock Safety for purchase of automated license plate reader (ALPR) cameras
Background: The Sheriff's Dept. administration has submitted a quote from Flock Safety for the purchase of license plate reader cameras to replace the current camera on the North 'K' St bridge and add cameras on East Broadway and Highway 95 South. Justification for single source purchase is outlined in the Resolution.

These cameras will be fixed mounted on utility-owned power poles placed per direction and approval of the electric department.

Fiscal Impact: $29,000 to be funded $15,800 in the 2024-2025 fiscal year and $13,200 in the 2025-2026 fiscal year plus tax and shipping as applicable to come from COPS grant funding.

Environmental Impact: N/A
Recommended Action: Waive the reading and adopt Resolution No. 2024-41 waiving the sealed bid process and accepting a budgetary quote from Flock Safety for purchase of automated license plate reader (ALPR) cameras.

Submitted By: Sheriff's Dept Administration / Cheryl Sallis City Manager Approval: Date:

Other Department Approval (when required): Date:

Approved: Not Approved: Tabled: Other:

Agenda Item: ____________
10/16/2024
10/16/2024
Item 9.

C:\Users\MeetingsOfficeUser10\AppData\Local\Temp\tmp8F7A.tmp/cks RESOLUTION NO. 2024-41

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF NEEDLES, CALIFORNIA, WAIVING

THE SEALED BID PROCESS AND ACCEPTING A

BUDGETARY QUOTE FROM FLOCK SAFETY FOR

PURCHASE OF AUTOMATED LICENSE PLATE

READER (ALPR) CAMERAS
WHEREAS, the City of Needles contracts with the San Bernardino County Sheriff’s Dept. for law enforcement services; and
WHEREAS, the Colorado River Station Administration has submitted a Budgetary Quote from Flock Safety for the purchase of automated license plate reader (ALPR) cameras to be replaced at the North ‘K’ Street bridge and added cameras in the area of East Broadway and Highway 95 South and are recommending that Community Oriented Policing Services (COPS) grant funding be used for such purchase; and
WHEREAS, the sheriff's dept. is currently transitioning to the Flock Safety ALPR system throughout the county as it is a more advanced system offering solar power, placement of cameras where needed, neighboring law enforcement agencies exclusive use of Flock which provides the Colorado River Station access to a vast network of cameras throughout the tristate area, and Flock's superior monitoring and maintenance of their camera systems.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Needles, California, hereby waives the sealed bid process and accepts a Budgetary Quote from Flock Safety in the total amount of $29,000 for purchase of automated license plate reader (ALPR) cameras using COPS grant funding to be funded $15,800 in the 2024-2025 fiscal year (purchase, delivery, setup and repairs for the first year) and $13,200 in the 2025-2026 fiscal year (annual recurring cost).

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 22th day of October, 2024, by the following roll call vote:

AYES: COUNCIL MEMBERS
NOES:

ABSENT:

ABSTAIN:
________________________________________
Mayor
(SEAL)
ATTEST:________________________________________
City Clerk
APPROVED AS TO FORM:
___________________________________
City Attorney
Item 9.

Item 9.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: October 22, 2024
Title: Employee Appreciation Event
Background: This item was on the previous agenda for discussion on a possible date.

Traditionally, the Employee Appreciation Event is held on the first Friday in December. The suggested date is Friday, December 6, 2024.

In the past, Council Members Belt, Campbell, and Pogue organized the event.

Council has asked for an AdHoc committee to be appointed to organize the event.

Fiscal Impact: Funds in the amount of $10,000 are available in the 2024-25 budget for all special events during the upcoming year, including the employee appreciation event and any future special events through June 30, 2025.

Recommendation: Create an AdHoc Committee of no more than three Council Members to organize the Annual Employee Appreciation Event (Christmas Party).

Submitted By: City Clerk’s Department
City Manager Approval: Date:

Other Department Approval (when required): Date:

Approved: Not Approved: Tabled: Other:

Agenda Item: ____________
10/16/2024
Item 10.

Page 1 of 3 ends

City of Needles 817 Third Street, Needles, California 92363 (760) 326-2113 • FAX (760) 326-6765
www.cityofneedles.com
Mayor, Janet Jernigan
Vice Mayor Kirsten Merritt
Councilmember Tona Belt
Councilmember Ellen Campbell
Councilmember Jamie McCorkle
Councilmember JoAnne Pogue
Councilmember Henry Longbrake
City Manager Patrick J. Martinez

MEMORANDUM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PATRICK J. MARTINEZ, CITY MANAGER
SUBJECT: WEEKLY MEMORANDUM
DATE: October 4, 2024

1. On October 1, 2024, city officials and staff came together to celebrate the groundbreaking of the $1.4 million Obernolte Street Improvement Project. This initiative highlights the City Council's dedication to modernizing and enhancing our community's street and water infrastructure. Upon completion, it will finalize critical sections of the Pavement Management Plan (PMP) in the School District neighborhood, ensuring that these essential streets remain well-maintained and accessible for years to come. United Paving Company has already begun mobilizing equipment, with street grinding scheduled to commence next Monday, followed by paving in the weeks ahead. The project is being funded through a strategic combination of resources, a testament to the city's financial planning:
$757,000 from the Community Project Funding/Congressionally Directed Spending program, sponsored by Congressman Jay Obernolte, with the remainder sourced from the City's Cannabis Revenues and the NPUA's Water Asset Replacement Fund. The streets set for improvement include L Street, 4th Street, 5th Street, Highland Street, Park Avenue, Orange Avenue, Collins Street, Erin Drive, and Coronado Street—key routes near local schools that will significantly benefit from these upgrades. Refer to the attached image to for the spectacular event. Refer the attached images for a glimpse of the groundbreaking event and updates on Phase IV-A Street Improvements, featuring a brand-new road.

2. On October 3, 2024, city officials, staff, and community members came together for the Mayor’s annual State of the City address, where key achievements and ongoing efforts to improve the quality of life for Needles residents and businesses were highlighted. 2023 was a year of remarkable growth, with significant strides in economic development, infrastructure upgrades, and expanded recreational opportunities—all laying the groundwork for a sustainable future. The numerous "Groundbreakings and Ribbon Cuttings" this year reflect the city’s ongoing progress and commitment to positive change. The presentation also featured videos from The Weather Channel’s America’s Morning Headquarters, showcasing Bob Belt

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Beach Park, Jack Smith Park's Marilyn Hohstadt Mathews Walking Trail, Congressman Ruiz’s $1 million appropriation for the Needles Behavioral Health Clubhouse, and a highlight of Needles’ unique historical charm. Click here to listen to the address or view the presentation slides here. Refer to the attached image for a glimpse of the event.

3. We’re thrilled to announce the reopening of Rivers Edge Golf Course after a successful overseeding over the last month. Locals, snowbirds, and golf enthusiasts from the region are invited to experience our championship-caliber course. With an exciting fall schedule ahead, now is the perfect time to book your tee time—call 760-326-3931 or visit our website. For tournament inquiries, please contact JJ DeLeon at the same number.

4. Next week, Needles High School will host its 69th annual Homecoming celebration, starting on Thursday, October 10, 2024, with the Mustang Drive at 5:30 PM, followed by a spirited Community Pep Rally at 6:00 PM, and wrapping up with the Senior Class Bonfire at 7:00 PM. The excitement continues Friday, October 11, 2024, with the Homecoming Parade in the early afternoon, showcasing vibrant school spirit and community pride. That evening, the NHS Mustangs will face off against White Pine, with the JV game at 4:00 PM and the Varsity game at 7:00 PM.

5. On September 30, 2024, city officials, Needles Chamber, and staff celebrated the groundbreaking of the Business Directional Sign Program, an exciting initiative to guide travelers to local landmarks and businesses in Needles. Led by the Chamber since last April, the first of 11 signs is being renovated thanks to a generous $8,700 grant from Supervisor Dawn Rowe. Expected to be completed by year’s end, this project is a shining example of a successful public-private partnership that supports local businesses, enhances tourism, and fosters intergovernmental cooperation for economic growth. Businesses interested in participating can contact the Chamber at [email protected]. Refer to the attached image for a glimpse of the groundbreaking.

6. We are thrilled to congratulate Ronny Sommers on earning his Water Distribution Operator Certification Grade 1 License—a significant achievement that will help us continue delivering safe and reliable water services to our residents. The City is committed to providing ongoing professional development and ensuring our staff have the tools they need to improve the quality of life for everyone in the community. Additionally, the City Administration works hard to equip our team with the necessary resources to complete their tasks effectively. Refer to the attached image highlighting our public works crew selecting new boots—just one example of how we support our employees as they work to improve the community.

7. City staff are making significant progress on the Off-Highway Motor Vehicle (OHMV) Route Map as part of the OHMV Pilot Program, which aims to designate specific city streets for off-highway vehicles. On October 4, 2025, staff held a

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productive meeting with representatives from the Bureau of Land Management (BLM) Lake Havasu Field Office, the agency overseeing local public lands. This collaborative effort, grounded in mutual respect and shared objectives, focused on identifying key connection points between BLM trails and city streets. The initiative aligns with the City Council’s vision to enhance public amenities and promote tourism by providing unique recreational opportunities that attract visitors and boost the local economy.

8. On October 10, 2024, the City of Needles will proudly celebrate the 51st anniversary of its Double Ten-Day flag-raising ceremony in front of the Needles Courthouse. This long-standing tradition began in 1972 and has been held annually except for a pause after 9/11. Double Ten Day, celebrated as the National Day of the Republic of China, marks the start of the Wuchang Uprising, which led to the end of the Qing Dynasty and the establishment of the Chinese Republic. The event will feature the Republic of China Air Force Veterans Color Guard, the Needles High School Band, and dignitaries from the City, County, and the Taipei Economic and Cultural Office of Los Angeles. Join us for this meaningful occasion at 1111 Bailey Avenue at 10:00 AM on October 10, 2024.

9. IMPORTANT UPCOMING DATES:
• Ventura Circus will be performing in town from October 10 through October 21, 2024, with the opening night set for 7:00 p.m. on October 10 at 100 G Street in Downtown Needles. Don’t miss out on this unforgettable event— tickets can be purchased by clicking this link.
• Annual Bridge to Bridge First Responders Appreciation Day on Saturday, October 12, 2024, from 11 am-2 pm at the Mohave Valley Legacy Community Park at 9200 Aquarius, Mohave Valley.
• Ribbon Cutting Ceremony: The Well No. 11 Water Treatment Facility Project is anticipated for mid-October. The date, time, and location are TBD. • SBCSD/Needles Police 5th Annual Trunk or Treat Event on Wednesday, October 30, 2024, from 4:00 PM to 6:00 PM at the Recreation Center parking lot at 1705 J Street. If you're interested in participating, please get in touch with Misty Hunt at 760-526-9200 or [email protected].
• Community Fall Festival: November 2, 2024, from 9:00 AM to 2:00 PM at 950 Front Street. To participate vendors can contact Jennifer Valenzuela, Recreation Manager, via email at [email protected] or directly at 760-326-2814.

1. OBERNOLTE STREET PROJECT

1. PHASE IV-A STREET UPDATE

2. STATE OF THE CITY 2024

5. NEEDLES CHAMBER UPDATE

6. PUBLIC WORKS UPDATE

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City of Needles
817 Third Street, Needles, California 92363
(760) 326-2113 • FAX (760) 326-6765
www.cityofneedles.com
Mayor, Janet Jernigan
Vice Mayor Kirsten Merritt
Councilmember Tona Belt
Councilmember Ellen Campbell
Councilmember Jamie McCorkle
Councilmember JoAnne Pogue
Councilmember Henry Longbrake
City Manager Patrick J. Martinez

MEMORANDUM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PATRICK J. MARTINEZ, CITY MANAGER
SUBJECT: WEEKLY MEMORANDUM
DATE: October 11, 2024

1. The circus is in town! For the first time, the Ventura Circus has arrived in Needles! Opening night took place last night, but there’s still time to experience the enchantment of “The Dream,” a traditional American family circus featuring everything from juggling and clowns to breathtaking aerial acrobatics.

Performances will run through October 21, 2024, at 100 G Street in Downtown Needles. Don’t miss this magical event—bring your family and friends for an unforgettable experience under the big top. Check out the attached images for a sneak peek into the circus, and secure your tickets by clicking this link.

2. Since September 19, 2024, the City has broken ground on two significant street improvement projects totaling $3.2 million. The $1.4 million Obernolte Street Improvement Project, funded by federal and local resources, focuses on critical streets near schools, including L Street, 4th Street, and Highland Street.

Meanwhile, the $1.8 million Phase IV-A Street Improvement Project will enhance roads like Desoto St., F St., and G St. These projects aim to improve safety, reduce maintenance costs, and upgrade critical infrastructure. Refer to the attached images for a look at our new roads.

3. Needles High School (NHS) proudly hosts its 69th annual Homecoming celebration tonight. The NHS Mustangs will take on White Pine, with the JV game kicking off at 4:00 PM and the Varsity game at 7:00 PM. This week has been filled with exciting festivities, starting with the Mustang Drive, followed by a lively Community Pep Rally, and capped off yesterday with the Senior Class Bonfire.

Earlier today, the Homecoming Parade brought even more excitement, showcasing our school spirit and community pride. Congratulations to Jennifer Valenzuela, the 2024 Homecoming Grand Marshal—be sure to cheer her on during the halftime, showcasing and supporting the Mustangs for what promises to be a fantastic evening. Refer to the attached image for look at the parade and the bonfire.

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4. The City Council has implemented goals that promote clean-up initiatives and beautification efforts to maintain and enhance the city's appeal and livability for our residents. This past week, our City crews came together to clean up City-owned numerous city owned properties including the vacant land behind the Lillyhill apartments and the Senior Center. As a city, we are responsible for maintaining our own properties, and I want to thank our electric, water, wastewater, and public works crews for their collaborative effort in making this happen. We encourage residents to report any public nuisances by contacting the City of Needles Code Enforcement at 760-326-2115 (ext. 123) or through the Needles Connect app, available on both the Apple App Store and Google Play Store. Your feedback is invaluable in helping us maintain and improve our community's appeal and livability.

Please don't hesitate to reach out with concerns or to report issues—your involvement is key to our community's continued progress. Refer to the attached image for a snapshot of their hard work.

5. On October 10, 2024, the City of Needles proudly marked the 51st anniversary of its Double Ten Day flag-raising ceremony at the historic Needles Courthouse. The event, which celebrates the National Day of the Republic of China, drew a distinguished assembly, including the Republic of China Air Force Veterans Color Guard, the Needles High School Band, and dignitaries from the City, County, and the Taipei Economic and Cultural Office in Los Angeles. Among those in attendance were City of Needles officials, including Mayor Jan Jernigan, Councilmembers Tona Belt and Henry Longbrake, and other city staff. This longstanding tradition, initiated in 1972, reflects Needles' strong commitment to cultural heritage and international relations, with only one interruption following 9/11.

Please refer to the attached images for further details.

6. On October 9, 2024, the American Red Cross Southern California Region hosted a community stakeholder meeting in Needles, bringing together City Officials, City Staff, and local stakeholders. The American Red Cross plays a vital role in providing disaster relief and support, and in the event of an emergency, they can be reached at 951-656-4218, Option 2. They are also actively seeking local volunteers to join their team. If you're interested in becoming a Red Cross volunteer, please get in touch with Juana Zapata via email at [email protected] or by calling or texting 951-205-6689. Volunteers are urgently needed to assist with disaster response in Needles. For further details, please refer to the attached flyer.

7. The San Bernardino County Fire Protection District (SBCFPD) remains committed to providing safe and effective hazardous waste management services to protect the health and environment of Needles residents. City staff is pleased to report the success of last October's Household Hazardous Waste Collection event, where numerous community members participated, and a total of 960 pounds of household hazardous waste and E-waste was collected.

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8. On behalf of the City of Needles, City Planner Irene Romero attended the 2024 APA California Conference on September 30, 2024, at the Riverside Convention Center. The event provided valuable insights into emerging trends, best practices, and innovative urban and regional planning solutions. Throughout the conference, Irene had the opportunity to network with fellow professionals, engage in discussions on critical issues, and gain fresh perspectives. Being part of a community of planning professionals was a highlight, enabling her to form meaningful connections with industry leaders. The City of Needles remains committed to offering ongoing professional development opportunities to ensure staff stay informed about the latest advancements in their fields. Refer to the attached image for a glimpse.

9. Earlier this week, Caltrans used ten gallons of paint to cover graffiti across critical locations in Needles, including the Park Moabi Bridge, L Street Bridge, High School Hill Overpass, and I-40 bridge supports between West Broadway and Five Mile Road. These areas, frequently used by off-highway vehicles (OHVs), were heavily targeted by graffiti, which is visible to the public as they enter and exit the City. For graffiti removal within the Caltrans focus area, residents can report it directly to Caltrans at https://csr.dot.ca.gov/. Vandalism, including graffiti, costs the City of Needles and Caltrans thousands of dollars annually. The City encourages those who witness vandalism to report it to the San Bernardino County Sheriff’s Office at (909) 387-8313 or California Highway Patrol (760) 326-2000. For other areas within the City contact (760) 326-2115 or use the Needles Connect app, available on the Apple App or Google Play Store. Thank you to Caltrans for their continued support in keeping our community clean.

10. IMPORTANT UPCOMING DATES:
• Annual Bridge to Bridge First Responders Appreciation Day on Saturday, October 12, 2024, from 11 am-2 pm at the Mohave Valley Legacy Community Park at 9200 Aquarius, Mohave Valley.
• SBCSD/Needles Police 5th Annual Trunk or Treat Event on Wednesday, October 30, 2024, from 4:00 PM to 6:00 PM at the Recreation Center parking lot at 1705 J Street. If you're interested in participating, please get in touch with Misty Hunt at 760-526-9200 or [email protected].
• Community Fall Festival: November 2, 2024, from 9:00 AM to 2:00 PM at 950 Front Street. To participate vendors can contact Jennifer Valenzuela, Recreation Manager, via email at [email protected] or directly at 760-326-2814.

1. CIRCUS IN TOWN

2. OBERNOLTE STREET PROJECT UDPATE

2. OBERNOLTE STREET PROJECT UPDATE

3. NHS HOMECOMING

4. COMMUNITY CLEAN INITIATIVE

5. 51ST ANNIVERSARY OF DOUBLE TEN DAY

BECOME A

RED CROSS

VOLUNTEER TODAY
Due to predictions for an active wildfire
season and the complexities of COVID-19,
the Red Cross will need thousands of local
volunteers to care for people when
disasters strike.

Volunteers Urgently Needed for the
Following Positions:

DISASTER ACTION TEAM {DAT): Provide 24-hours
immediate emergency response to local disasters,
particular hours fires, ensuring that those affected
have access to resources for basic needs such as
food, shelter, and clothing
MASS CARE: Provide services as feeding, sheltering,
reunifications and distribution of emergency supplies.

LOGISTICS: Provides on vehicle tracking, acquisition
of materials, facilities, and warehousing.

RECOVERY: Conduct client interviews, provide
clients with information and referrals to community
partners assess their qualifications for additional
assistance.

DISASTER SERVICES TECHNOLOGY: Provide
support to volunteers in the use of technology,
inventory, install (e.g radios and antennas) and
support computers, printers, and other IT equipment.

Juana Zapata
Sr. Recruitment Specialist
For further information:
[email protected]
Call or Text (951) 205-6689
EXTERNAL RELATIONS: : Develop and maintain
productive working relationship with government
partners, other non-profits, community groups, faithbased, civic groups, and other community members.

INFORMATION & PLANNING: Research and
gathering assessment and operational data
information for the scope of the disaster.

SHELTER SERVICES: Support emergency shelters
by staffing difference areas including receptions,
registrations, feeding, dormitory, information
collections
and other vital tasks.

DISASTER MENTAL HEALTH: Support other disaster
responders before, during and after response, using
staff mental health. *Psychology, psychiatry
counseling, LMSW, MFT or therapy License Required.

DISASTER HEAL TH SERVICES: Support to
individuals and families who have been impacted by a
disaster and staff health services. *MD, RN, L VN or
EMT License Required.

American Red Cross
Southern California Region

6. AMERICAN RED CROSS STAKEHOLDER

8. APA CONFERENCE

9. CALTRANS GRAFFITI CLEAN-UP

Needles City CouncilOctober 22, 2024

Needles City Council
October 22, 2024