Agenda packet — Needles City Council, September 9, 2025 (part 2 of 3)

Contents
1 Executive Summary ..........................................................................................................................3 1-1 Revenue Requirements.................................................................................................................. 3 1-2 Cost Allocation Results .................................................................................................................. 3 1-3 Rate Design Options Considered ................................................................................................... 4 1-4 Selected Rate Design..................................................................................................................... 4 1-5 Recommendations ......................................................................................................................... 4 2 Introduction.......................................................................................................................................5 Section 2 Study Overview .......................................................................................................................... 5 2-1 Study Purpose................................................................................................................................ 5 2-2 Study Objectives ............................................................................................................................ 5 2-3 Study Methodology......................................................................................................................... 6 2-4 Key Changes Since Prior Rate Study............................................................................................. 7 3 Background and Overview...............................................................................................................8 Section 3 Needles Public Utility Authority................................................................................................... 8 3-1 About NPUA................................................................................................................................... 8 3-2 Governance and Rate Setting Authority ......................................................................................... 8 3-3 Electric Enterprise .......................................................................................................................... 8 4 Cost-of-Service study .....................................................................................................................12 Section 4 Financial Plan Overview ........................................................................................................... 12 4-1 Planning Assumptions.................................................................................................................. 13 4-2 NPUA’s Financial Plan ................................................................................................................. 14 4-3 Financial Reserves....................................................................................................................... 20 4-4 Financial Performance Criteria ..................................................................................................... 21 4-5 Proposed Financial Plan............................................................................................................... 22 5 Cost-of-Service Analysis.................................................................................................................24 Section 5 Cost of Service Overview ........................................................................................................ 24 5-1 Functionalization .......................................................................................................................... 25 5-2 Cost Causation Classification....................................................................................................... 26 5-3 Unbundling / Unit Costs................................................................................................................ 27 6 Electric Rates....................................................................................................................................29 Section 6 Rate Options ............................................................................................................................ 29 6-1 General Rate-Making Principles ................................................................................................... 29 Agenda Item 6.
© K.R. Saline & Associates, PLC. All Rights Reserved
For the sole benefit of the Needles Public Utility Authority K. R. Saline & Associates, PLC Electric Cost-of-Service and Rate Study

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6-2 Current Rate Design..................................................................................................................... 30 6-3 Rate Design Theory ..................................................................................................................... 30 6-4 Proposed Rate Options ................................................................................................................ 31 Section 7 Cost of Service Rate Summary and Recommendations ........................................................... 34 7-1 Proposed Rate Design ................................................................................................................. 34 7-2 Recommendations ....................................................................................................................... 34 Agenda Item 6.
© K.R. Saline & Associates, PLC. All Rights Reserved
For the sole benefit of the Needles Public Utility Authority K. R. Saline & Associates, PLC Electric Cost-of-Service and Rate Study

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1 Executive Summary
The City of Needles, through the Needles Public Utility Authority (NPUA), engaged in this Cost of Service Study (COSS) to review the electric utility’s rate structure, evaluate the allocation of costs among customer classes, and assess rate design options. The analysis was conducted using Test Year 2024 data and is intended to ensure rates remain cost-based, equitable, and sufficient to meet operational and financial obligations.
1-1 Revenue Requirements
The total Test Year 2024 cost of service is $12,267,384, inclusive of purchased power, operations and maintenance, administrative and general expenses, depreciation, and capital program funding.

Purchased power costs comprise the majority of the requirement, representing approximately 75% of total expenses. Current rates are sufficient to recover this amount and produce total allocated revenues of $14,856,751, resulting in an overall surplus of $2,589,367.

This surplus exceeds the minimum return required to meet the City’s Annual Revenue Fund (ARF) contribution and scheduled debt service obligations, providing adequate coverage for contingencies and future capital investments.
1-2 Cost Allocation Results
Costs were allocated to each rate class based on cost-causation principles, with separate consideration for customer-related, demand-related, and energy-related costs. The table below summarizes the allocated revenues, allocated expenses, and the resulting over- or under-recovery by class.

Rate Class Allocated
Revenues
Allocated
Expenses
Over / (Under)
COSS
as %
Residential $4,633,573 $4,331,735 $301,838 7%
Small Commercial (0-25kW) $1,590,967 $1,601,352 -$10,385 -1% Medium Commercial (25kW-100kW) $1,010,181 $680,601 $329,579 33% Large Commercial (100kW+) $7,582,689 $5,567,862 $2,014,828 27% Streetlights $39,342 $85,834 -$46,492 -118%
Total $14,856,751 $12,267,384 $2,589,367 17%
Results show the Residential, Medium Commercial, and Large Commercial classes generating revenues above their allocated costs, while Small Commercial and Streetlights are under-recovering.

Agenda Item 6.
© K.R. Saline & Associates, PLC. All Rights Reserved
For the sole benefit of the Needles Public Utility Authority K. R. Saline & Associates, PLC Electric Cost-of-Service and Rate Study

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1-3 Rate Design Options Considered
Four rate options were developed:

1. Option 1 – Current Structure: Maintains existing rates for all classes.

2. Option 2 – Class-Differentiated Rates: Introduces separate rate schedules for each major class, with a fixed monthly customer charge and separate Delivery and Power charges.

3. Option 3 – Demand-Based Rates: Builds on Option 2 by adding a demand charge for commercial classes.

4. Street Lighting Rates: Evaluated separately, with planned increases for cost recovery and a phased transition to LED fixtures.
1-4 Selected Rate Design
The Alternative Rate Ad Hoc Committee and City elected to retain the current rate structure (Option 1) for all customer classes. In addition, the City approved an update to Street Lighting rates to move toward cost-of-service recovery, with the City continuing to assume direct responsibility for these costs in its budget. The City will also proceed with a phased transition from sodium to LED fixtures as replacements are needed.
1-5 Recommendations
 The City adopt the proposed financial plan and proposed increases to the street lighting rates,  Continue to actively monitor NPUA’s evolving power resources and evolving market conditions,  Modernize customer programs to make adoption of more complicated rate designs more feasible and data collection and reporting more accessible,  Revisit its cost-of-service analysis periodically to ensure ongoing alignment with operational needs and ratepayer expectations.

The adopted approach maintains rate stability for all customer classes, addresses Street Lighting underrecovery, and ensures sufficient revenues to meet ARF and debt obligations.

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2 Introduction
Section 2 Study Overview
2-1 Study Purpose
The purpose of this report is to evaluate the adequacy of Needles Public Utility Authority (“NPUA”) existing rate charges and to recommend fair and equitable adjustments to the rates, if deemed necessary. K. R. Saline designed utility rate studies encompasses three principal steps, each intended to answer questions typically asked by utility boards, city councils, and utility management.

These questions are -
Revenue Requirements – What is the overall adjustment in rates needed to meet forecast cash requirements of the utility, meet capital requirements, and maintain debt service coverage and appropriate cash reserves?
Cost of Service – What is each class’s equitable share of the utility’s revenue requirements? Rate Design – How should rates be adjusted to meet utility revenue requirements and remain sensitive to customer rate impacts?
2-2 Study Objectives
The major objectives of this study are to:
 Identify the cost of serving each of the Department’s customer classes, including fixed and variable costs.
 Evaluate the current rate structure to ensure the operation & maintenance, capital and debt costs are covered.
 Currently Needles has a base meter rate only that is fixed throughout the year. Review the current rate component.
 The proposed rate structure should promote conservation through pricing strategies that are easy for the customer to understand.
 The City is particularly interested in a review of the current rate policy and corresponding annual rate calculations to ensure sufficient collection of revenues.

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2-3 Study Methodology
This study follows general industry standards for cost-of-service analysis. KRSA used a process and approach based on the City’s policy objectives, the City’s operating needs and the current revenue projections to develop a financial plan. The resulting financial plan, cost of service analysis, and rate design follow five key steps to establish proposed rates that meet the Utility’s objectives and adhere to industry standards.

1. Revenue Requirements: Determination of financial plan / revenue requirements,

2. Cost-of-Service Analysis: The revenue requirement is separated into its functional components and distributed to customer classes commensurate with their use of and burden on the system,

3. Development of Unit Costs: After costs are distributed to the customer classes, costs are unbundled into fixed and volumetric units of measures to determine unit costs that can be used for the basis of rate design,

4. Rate Design: After allocating the revenue requirement to each customer class and preparing the unit costs, the rate design and calculation process can begin. Rates do more than simply recover costs; properly designed rates should also support and optimize the City’s policy objectives,

5. Written Report and Rate adoption: The final step in a rate study is to develop the written report for the benefit of the City’s administrative record.

K. R. Saline has performed a cost-of-service and rate design study for NPUA’s electric utility. The study included an analysis of estimated revenue requirements for fiscal years FY2026 through FY2030 (the "Study Period"), the preparation of detailed cost-of-service analyses based on an FY2026 Test Year, rate analysis, and the development of proposed new electric rates for each customer classification. This report summarizes the analyses undertaken in our study of NPUA’s retail electric rates and describes Agenda Item 6.
© K.R. Saline & Associates, PLC. All Rights Reserved
For the sole benefit of the Needles Public Utility Authority K. R. Saline & Associates, PLC Electric Cost-of-Service and Rate Study

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the results of our study and our recommendations. Pursuant to instructions, and in order to perform the study, KRSA created customer class groupings appropriate for residential customers and commercial customers based on common sizes for small, medium, and large, incorporating all historical operating and capital expenses. The rate design portion of the study includes recommendations on retail rates for each customer classification.
2-4 Key Changes Since Prior Rate Study
PDP Remarketing Plan Overview and Impact on Needles. The Parker-Davis Project (PDP), administered by the Western Area Power Administration (WAPA), is undergoing a remarketing process that will take effect upon expiration of the current contracts in September 2028. Under the proposed 2024 PDP Remarketing Plan [Federal Register Notice 89 FR 43819], WAPA will allocate new long-term hydroelectric power contracts from October 1, 2028, through September 30, 2058. These contracts are designed to promote broader access among existing and new preference customers while adjusting allocations based on resource availability and evolving grid demands.

For the City of Needles, a current PDP customer, the remarketing plan is expected to result in a 3% reduction in its existing hydropower allocation beginning in FY 2029. This change is in this study’s power supply forecast, which assumes the reduced PDP allocation and increased reliance on market-based purchases beginning in October 2028. While the reduction is modest, it shifts a portion of Needles’ dependable, low-cost power supply into the more volatile market space, potentially increasing cost variability and exposure to price swings.

Class-Based Analysis Using AMI Data. A significant enhancement in this 2025 rate study, compared to the 2020 analysis, is the inclusion of a detailed customer class breakout supported by one full year of Advanced Metering Infrastructure (AMI) data. This current study applies hourly interval data to allocate costs across distinct customer classes—residential, small commercial, medium commercial, large commercial, and street lighting—based on actual usage characteristics, load patterns, and service demands.

By contrast, the 2020 study lacked the data granularity necessary to functionalize and classify costs by customer type. Rate recommendations at that time were developed using system-level averages without the ability to differentiate cost causation among classes. As a result, class-level equity and costof-service alignment could not be evaluated or addressed.

The inclusion of AMI-driven class-level analysis in the 2025 study ensures that rate structures more accurately reflect the cost to serve each customer group. This improves transparency, strengthens the fairness of cost recovery, and supports the long-term financial and operational integrity of the utility.

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3 Background and Overview
Section 3 Needles Public Utility Authority
3-1 About NPUA
The City of Needles assumed ownership of its electric distribution system in 1991 through the acquisition of infrastructure from CP National. This transition marked the formation of the Needles Public Utility Authority (NPUA), which now oversees the City’s electric, water, and wastewater services.

At the time of acquisition, the electric system was characterized by aging infrastructure, limited procurement flexibility, and frequent, extended outages—conditions exacerbated by the region’s extreme summer temperatures. To address these challenges, the city entered into a strategic partnership with the Western Area Power Administration (WAPA) in the early 2000s. This collaboration enabled the City to access federal hydropower through the Parker-Davis Project, diversify its energy procurement across multiple suppliers, and improve operational reliability.

Today, NPUA provides electric service to approximately 3,700 customers across a 755-square-mile service area, leveraging a stable and cost-effective energy portfolio managed in coordination with WAPA.
3-2 Governance and Rate Setting Authority
The NPUA operates with guidance from the Utility Board, which makes recommendations to the City Council. The City Council members also serve as the managing body of the NPUA, ensuring that utility services are efficiently provided to the community and meet the city’s needs. 3-3 Electric Enterprise
3-3-1 Service Territory
The City of Needles Electric Utility provides service to approximately 3,700 customers within the city and in certain contiguous areas extending beyond its municipal boundaries. The service territory spans from the Nevada state line—just south of Laughlin, Nevada—down to the vicinity of Topock, Arizona, along the western banks of the Colorado River. This area is part of the easternmost region of San Bernardino County and includes both residential and commercial customers. The utility operates within a 755-square-mile service area, managed by the Needles Public Utility Authority (NPUA), and is geographically isolated from other urban centers. Electricity is delivered via City-owned infrastructure, including four substations, approximately 30 miles of 69 kV transmission lines, and several hundred miles of 12 kV distribution lines.

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3-3-2 Customer Base
The Needles Electric Utility serves a total of approximately 3,700 customers distributed across five primary customer classes. Residential customers make up about 70% of the total customer base, followed by small commercial customers at 18%. Medium commercial and large commercial customers represent approximately 2% and 1% of accounts, respectively, while street lighting accounts comprise the remaining 9%. Street lighting accounts and associated rates are paid for by the City of Needles and does not impact projected rates for other classes. Although residential users account for the majority of accounts, commercial and public infrastructure customers have a proportionally higher impact on system demand and cost allocation due to their greater load requirements. While Large Commercial accounts make up only 1% of the meter counts, they use 53% of the energy load.

Since 2018, the City has actively pursued economic development efforts to attract businesses in the marijuana cultivation industry. These efforts have successfully increased tax and utility revenues for the City and have become a notable component of NPUA’s large commercial load. However, the addition of these high-demand facilities has also placed upward pressure on system peak demand, requiring adjustments to NPUA’s long-term resource planning. In addition, the increased load from this sector carries implications for greenhouse gas (GHG) compliance and climate-related regulatory requirements, which must be considered in future operational and capital planning 3-3-3 Power Supply
The City of Needles maintains a diversified power supply portfolio to reliably meet customer demand across its service area. Its core supply includes federal hydropower allocations from the Parker-Davis Project (PDP), which provides a stable and renewable base supply. These contracted federal resources are supported by WAPA via the pooling, real-time balancing, and market transactions under Needles’ Residenti
al
70%
Small
Commercia
l
(0-25kW)
18%
Medium
Commercial
(25kW100kW)
2%
Large
Commercial
(100kW+)
1%
Street
Lights
9%
Customer Count
Residenti
al
30%
Small
Commercia
l
(0-25kW)…
Medium
Commercial
(25kW-100kW)
7%
Large
Commercia
l
(100kW+)
53%
Street
Lights
0%
Energy (kWh)
Agenda Item 6.
© K.R. Saline & Associates, PLC. All Rights Reserved
For the sole benefit of the Needles Public Utility Authority K. R. Saline & Associates, PLC Electric Cost-of-Service and Rate Study

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aggregated Energy Services contract, and further supplemented by standard term WSPP short-term purchases.

This layered procurement strategy allows Needles to respond effectively to variable load conditions while enhancing overall system reliability. Network transmission arrangements and contracted delivery services further support the consistent delivery of power across the utility’s geographically dispersed service territory.

Needles’ power supply planning also incorporates compliance with California’s Renewable Portfolio Standard (RPS) requirements. As recent load growth, particularly from energy-intensive industries such as marijuana cultivation, has increased overall system demand, NPUA’s resource planning must continue to balance reliability, cost-effectiveness, and compliance with state-mandated renewable and greenhouse gas reduction targets.
3-3-4 Transmission and Distribution
The City of Needles Electric Utility owns and operates its own transmission and distribution infrastructure to serve approximately 3,700 customers across a geographically dispersed service area.

The transmission system consists of approximately 30 miles of 69 kV lines that connect the city to external power supply points, including federal hydropower resources. These transmission lines feed into four primary substations that step down voltage for local distribution. The distribution network operates primarily at 12 kV and includes several hundred miles of overhead and underground lines serving residential, commercial, and municipal loads. Given the region’s extreme environmental conditions and remote location, maintaining system reliability is a top priority. The city has invested in system upgrades, redundancy, and coordination with the Western Area Power Administration (WAPA) to ensure consistent delivery and operational resilience. The utility's control of both transmission and distribution assets provides flexibility in power delivery and enhances the City’s ability to respond to outages and system events promptly.
3-3-5 Electric Rates
Electric rates in the City of Needles are structured with a fixed monthly Basic Service Charge and variable consumption-based energy charges. Customers are billed based on seasonal hydro allocations— summer (March–September) and winter (October–February)—with energy usage beyond these allocations subject to a higher over-hydro rate. Additional charges include a California Energy Efficiency (CAEE) rate and a discretionary Power Cost Adjustment (PCA), which allows the utility to recover unforeseen power purchase costs. The rate structure reflects cost recovery needs as detailed in the revenue requirements forecast, with total revenues from sales increasing from approximately $11.1 million in 2023 to over $15 million by 2030. Operating expenses such as purchased power, Agenda Item 6.
© K.R. Saline & Associates, PLC. All Rights Reserved
For the sole benefit of the Needles Public Utility Authority K. R. Saline & Associates, PLC Electric Cost-of-Service and Rate Study

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administrative costs, and surcharges are allocated across rate components using a previously defined cost allocation methodology, supporting both financial sustainability and operational efficiency.

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4 Cost-of-Service study
Section 4 Financial Plan Overview
Financial planning is essential for a public power utility to ensure its long-term sustainability and operational efficiency. A prudent financial plan helps the utility manage its resources effectively, forecast future expenses and revenues, and allocate funds for maintenance, upgrades, and expansion projects.

This planning process involves analyzing current financial status, understanding market trends, and assessing the impact of economic conditions. Moreover, utilities must anticipate changes in energy consumption patterns and technological advancements that could impact revenue streams. By establishing a solid financial foundation, a public power utility can maintain reliable service for its customers, invest in new technologies, and respond to unexpected challenges, such as natural disasters or significant shifts in energy demand.

One of the key considerations in financial planning for a public power utility is the management of capital and operating expenses. Capital expenses include long-term investments in infrastructure, such as the construction of new facilities or the upgrading of existing ones, while operating expenses cover the day-to-day costs of running the utility, including labor, maintenance, and fuel costs. Utilities must balance these expenses to ensure financial stability, often requiring careful budgeting and forecasting to avoid shortfalls or excesses. Additionally, utilities must consider depreciation of assets and plan for the timely replacement or upgrading of equipment to maintain efficient operations and meet safety and environmental standards.

Effective financial planning also involves maintaining adequate reserves and contingency funds to handle emergencies or unforeseen expenses without compromising service reliability or financial health. Therefore, a comprehensive financial plan reviews the following:

1. Historical electric sales and consumption patterns to determine an appropriate usage level for projecting future water demands.

2. Operating costs may change over the planning period because of inflation, unique circumstances of the city, new expenditures added to meet strategic goals, state mandates, or changes in operations.

3. Multi-year system improvement needs, and scheduling based on priority.

4. Satisfy debt service coverage ration requirements for any existing or proposed debt (120%).

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5. Reserve funding to meet adopted reserve policies. The goal is to generate adequate cash on hand to mitigate financial risks related to operating cashflow needs, unexpected increases in expenses, shortages in system reinvestment, and mitigating potential failures. 4-1 Planning Assumptions
Developing a long-term financial plan requires a comprehensive understanding of the electric utility’s financial position, including an evaluation of existing revenue streams, operating and capital expenses, debt obligations, and reserve policies. To support accurate forecasting, this study incorporates a series of planning assumptions developed in consultation with City staff and based on historical trends, current obligations, and anticipated system needs.

Table 6 outlines the key assumptions used to project revenues over the rate-setting period. These include annual revenue escalation, reserve interest earnings, account growth, and changes in energy consumption. Specifically, the analysis assumes an annual account growth rate of 0.63%, which reflects the City’s historical trend and translates into a modest increase in energy consumption each year.

Residential consumption is projected to grow at 0.8% annually, while non-residential consumption remains flat. Overall, total system consumption (kWh) is projected to increase by 0.25% per year throughout the forecast period.

These assumptions serve as the foundation for estimating revenues, expenses, and ending fund balances, and ensure the financial plan reflects realistic growth and cost dynamics.

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Table 6
Revenue Forecasting
Key Assumptions FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Revenue Escalation 2.6% 2.6% 2.6% 2.6% 2.6%
Reserve Interest 1.5% 1.5% 1.5% 1.5% 1.5%
Account Growth 0.63% 0.63% 0.63% 0.63% 0.63%
Residential 0.8% 0.8% 0.8% 0.8% 0.8%
Non-Residential 0.0% 0.0% 0.0% 0.0% 0.0%
Total Consumption (kWh) 0.25% 0.25% 0.25% 0.25% 0.25%
4-2 NPUA’s Financial Plan
4-2-1 Revenues Overview
The financial plan for NPUA begins with a detailed forecast of electric utility revenues over the 2024– 2030 period, incorporating base usage charges, excess usage, and other non-operating sources.

Revenue projections are built from historical actuals, applied account growth rates, and a modest consumption escalation aligned with population trends. The resulting forecast shows a stable and gradual revenue increase, supported by a solid base of electric sales. Revenues are expected to increase from $14.8 million in 2026 to $15.0 million in 2030, reflecting a well-balanced revenue framework with no need for additional rate increases over the forecast period. This consistent performance confirms the utility’s strong revenue foundation and aligns with the goals of long-term rate stability and system sustainability.

OPERATING REVENUES 2024 2025 2026 2027 2028 2029 2030
Base Usage Charge $12,358,070 $13,047,723 $13,079,864 $13,112,266 $13,144,930 $13,177,858 $13,211,053 Excess Usage Charge $1,249,648 $1,479,141 $1,488,404 $1,497,743 $1,507,156 $1,516,646 $1,526,213 Other Operating Revenues $1,264,294 $277,567 $278,483 $279,411 $280,354 $281,311 $282,282 Non-Operating Revenues $32,277 $210,000 $10,000 $10,000 $10,000 $10,000 $10,000 Total Revenues from Sales $14,904,289 $15,014,432 $14,856,751 $14,899,420 $14,942,440 $14,985,815 $15,029,548 4-2-2 Operating Expenses Overview
NPUA’s projected operating expenses were modeled based on historical budget performance, planned capital investment activity, and power supply costs derived from forecasted market assumptions and contractual obligations. Major cost centers include purchased power, customer operations, administrative overhead, and AB32 compliance costs.

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Purchase Power:

A key component of the financial forecast involves the City of Needles' evolving purchased power agreement, particularly the assumptions surrounding the Parker-Davis Project (PDP) and supplemental market purchases. The forecast assumes existing PDP capacity and energy allocations remain in place through September 2028, after which a proposed new contract reduces Needles’ allocation by approximately 3% beginning in October 2028.

This change will shift a portion of energy procurement toward market-based spot purchases, subject to greater price volatility. To account for this, market power purchases from April 2025 onward include a 25% pricing adder to forward market price curves, reflecting a conservative estimate of the inherently volatility of market-based supplies. PDP rates for energy, capacity, and transmission were based on the latest apportionment study and assume 3% annual increases in transmission rates. Additionally, existing federal and non-federal energy exchanges remain unchanged, and the city continues to benefit from the Agua Caliente benefit credit contract that provides additional PDP resources to the City at an affordable rate.

While these assumptions provide a reasonable and conservative foundation for projecting future power costs, the planned reduction in PDP entitlements underscores the importance of maintaining financial flexibility in the event of higher-than-expected market prices or further shifts in the resource mix. Longterm, Needles’ ability to balance cost-effective power procurement with system reliability will remain a central element of rate and capital planning.
1,627 1,668 1,730 1,729 2,227
5,034 4,376
5,740 6,510 6,622
3,062 3,052
3,104
4,466 4,844 5,071 3,900
1,487 2,883
3,762
5,463
7,348
8,840
7,433
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 City of Needles, Monthly Resources (MWh)
Hydro Resources Non-Hydro Resources Total Requirements
Agenda Item 6.
© K.R. Saline & Associates, PLC. All Rights Reserved
For the sole benefit of the Needles Public Utility Authority K. R. Saline & Associates, PLC Electric Cost-of-Service and Rate Study

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AB32:

AB32 refers to California’s Global Warming Solutions Act, which requires statewide reductions in greenhouse gas emissions to 1990 levels by 2020 and continued reductions thereafter. For electric utilities, this includes participation in the Cap-and-Trade program and Renewable Portfolio Standard (RPS) compliance, both of which result in direct costs for emission allowances and renewable energy procurement.

Senate Bill 100 (de León, 2018), California’s latest Renewable Portfolio Standard (RPS) rules which requires Needles to power supply to be supplied from 60% of renewable resources by 2030 and from 100% of carbon-free resources by 2045.. In February 2024, the City entered a ten-year long-term transaction for the sale, purchase and delivery of Renewable Energy certificates (RECS), delivering 50,000 recs on or before March of the given year. The agreement is through December 31, 2033 at a cost of $412,500 per year. These RECs compensate for the City’s non-renewable generation in accordance with AB 2514 and California Public Utilities Code § 399.11 et seq. For greenhouse gas compliance under AB 32, Needles is classified as an Electric Power Entity (EPE) and is subject to verified annual reporting. In 2024, verified CO₂-equivalent emissions totaled 23,130.26 metric tons, primarily from imports tagged at the WAPA delivery point. With an allocation of 30% free allowances, the city is responsible for offsetting the remaining 70%, or 15,491.18 metric tons. This obligation is met through the purchase of Direct Environmental Benefit (DEB) allowances or offsets, currently costing $1.138 million, paid in triennial installments. DEB credits are auction-based with an annually escalating pricing floor. However, recent auction results have seen prices float closer to the floor prices as continued uncertainty around when and how this key program will be extended continues to put a damper on near-term allowance price demand. Addressing these legislatively driven surcharges to the City’s power planning, the utility is continuing to move forward in its capital improvement plans with the development of a 2-3 MW solar project to help offset these compliance obligations and augment its power supply.

Despite modest increases in personnel and administrative categories, total operating expenses remain within manageable bounds. The plan reflects expected increases in purchased power costs and distribution-related expenses, but these are offset by stable internal operations and cost containment measures. Over the planning period, expenses rise from $11.5 million in 2025 to $13.3 million in 2030, reflecting inflationary growth and power market adjustments. The financial position supports continued system reliability and compliance with operational goals without impacting customer rates.

Other Expenses:

Additional expenses such as salary, labor, operating and maintenance expenses that are related to the distribution system, were calculated based on inflationary assumptions as seen in the above escalators.

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OPERATING EXPENSES 2024 2025 2026 2027 2028 2029 2030
Cost of Purchased Power $6,544,362 $5,703,290 $6,077,077 $6,350,087 $6,392,963 $6,364,016 $6,548,287 Distribution Expense -
Operation $68,694 $109,666 $114,842 $120,263 $125,939 $131,883 $138,108 Distribution Expense -
Customer $219,922 $330,252 $343,811 $360,400 $377,687 $395,824 $414,256 Accounting $14,547 $21,500 $22,605 $23,767 $24,989 $26,273 $27,624 Ab32 Surcharge Rps/C&T $1,799,997 $1,912,000 $2,002,246 $2,096,751 $2,195,717 $2,299,354 $2,407,883 Fairshare Allocation $469,547 $483,633 $498,142 $513,086 $528,479 $544,333 $560,663 A&G Expense $2,483,050 $2,944,897 $2,917,543 $2,993,183 $3,071,958 $3,154,014 $3,239,503 Total Expenses $11,600,119 $11,505,238 $11,976,266 $12,457,538 $12,717,731 $12,915,697 $13,336,323 4-2-3 Debt Service Coverage
Debt obligations were evaluated against projected net revenues to assess compliance with NPUA’s required 1.2x debt service coverage ratio. The model indicates that the utility consistently meets and significantly exceeds this benchmark each year, with coverage ranging from a high of 5.14x in 2025 to

2.48x in 2030. This strong coverage demonstrates the electric utility’s capacity to support existing debt without jeopardizing financial stability or requiring additional revenue from rate increases.

Cost of Purchased
Power
67%
Distribution
Expense - Operation
1%
Distribution
Expense - Customer
4%
Accounting
0% Ab32 Surcharge
Rps/C&T
22%
Fairshare Allocation
6%

EXPENSES
Agenda Item 6.
© K.R. Saline & Associates, PLC. All Rights Reserved
For the sole benefit of the Needles Public Utility Authority K. R. Saline & Associates, PLC Electric Cost-of-Service and Rate Study

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Debt Service Coverage Test 2024 2025 2026 2027 2028 2029 2030 Annual Debt Service Payment $682,350 $682,350 $682,351 $682,351 $682,351 $682,351 $682,350 Calculated Debt Service Coverage 4.84 5.14 4.22 3.58 3.26 3.03 2.48 Debt Covenants (Req. 1.2) Pass Pass Pass Pass Pass Pass Pass 4-2-4 Capital Plan
The City of Needles Utility Authority maintains a comprehensive Capital Improvement Plan (CIP) that supports system reliability, modernization, and long-term capacity needs. The CIP spans FY 2025 through FY 2030 and totals approximately $47.1 million in project commitments, reflecting a mix of developer-driven infrastructure, system upgrades, fleet enhancements, and renewable energy integration.

Key Projects Include:
 230kV Transmission Line – A $30 million developer-funded transmission line to expand regional reliability.
 Substation Projects – Including the South Hwy 95 substation, Cure Farms substation, and SCADA upgrades, supporting load growth and control system modernization.  Solar Projects – Continued development of a 2–3 MW solar farm on Wastewater Plant Road and planning for a future solar microgrid.
o This was not included in power forecasts in the “power cost” section above.  Distribution System Enhancements – Upgrades to lines feeding Park Moabi, the Mohave line, and Eagle Pass-to-Cemetery routing.
$3,304,170
$3,509,194
$2,880,486
$2,441,882
$2,224,709 $2,070,118
$1,693,225
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2024 2025 2026 2027 2028 2029 2030
Operating Fund Balance
Balance Available For Debt Service Minimum Balance Required for Debt Service Agenda Item 6.
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 Streetlight & Fleet – A citywide LED streetlight program and the purchase of an 80-ft double bucket truck to support operations.

The annual capital budget is allocated evenly across all forecast years at approximately $7.9 million per year, with funding sources distributed across multiple categories to ensure financial flexibility and sustainability. Developer contributions represent the largest share, providing approximately $7.3 million annually to support system expansion and interconnection infrastructure tied to growth-related projects. Rate-funded projects are supported through consistent transfers of approximately $611,667 per year from the Asset Replacement Fund, covering utility-owned infrastructure improvements, vehicle replacements, and operational facility needs. Additionally, projects such as the planned solar microgrid and SCADA upgrades remain scheduled within the planning window but currently unfunded, allowing the city to respond to future grant opportunities or allocate ARF reserves as needed. The capital plan is fully integrated into the long-term financial forecast and does not require any new debt issuance during the forecast period. By maintaining a stable, rate-supported infrastructure investment strategy and leveraging outside funding for expansion projects, the utility is well-positioned to preserve system reliability while accommodating future service demands. 4-2-5 Balance Sheet and Days Cash on Hand
The long-term financial plan also includes a forecast of NPUA’s unrestricted cash balances and liquidity.

Beginning with just over $4.9 million in 2025, the plan builds unrestricted reserves to over $8.1 million by 2030. Days cash on hand, a key financial health indicator, increases from approximately 158 days in 2025 to over 223 days by 2030, well above industry best practice thresholds of 180 days. These results reinforce that the utility maintains a strong balance sheet and is well-positioned to weather short-term financial stress or unanticipated capital needs. The financial strategy integrates ARF transfers, ongoing capital replacement, and consistent operating surpluses, all contributing to NPUA’s ability to avoid rate increases while continuing to meet its service obligations.

Balance Sheet 2024 2025 2026 2027 2028 2029 2030
Beginning Unrestricted Cash &
Equivalents $1,115,726 $3,153,092 $4,978,909 $6,237,020 $7,056,527 $7,658,861 $8,106,605 Cash from Operations $3,304,170 $3,509,194 $2,880,486 $2,441,882 $2,224,709 $2,070,118 $1,693,225 ARF Transfers $(584,454) $(672,670) $(611,667) $(611,667) $(611,667) $(611,667) $(611,667) Debt Service Outlays $(682,350) $(682,350) $(682,351) $(682,351) $(682,351) $(682,351) $(682,350) Purchase Payment $(313,223) $(313,223) $(313,223) $(313,223) $(313,223) $(313,223) Bank & Trustee Charges $(15,134) $(15,134) $(15,134) $(15,134) $(15,134) $(15,134) End of Year Unrestricted Cash &
Equivalents $3,153,092 $4,978,909 $6,237,020 $7,056,527 $7,658,861 $8,106,605 $8,177,456 Agenda Item 6.
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4-3 Financial Reserves
Utilities’ reserve balances are funds established and maintained for specific cash flow requirements, financial needs, project funding, or legal covenants. These balances are maintained to meet short-term cash flow requirements, mitigate potential rate shocks from sudden changes in revenue or expenditures, minimize the risk associated with financial obligations, and cover operational and capital needs under adverse conditions. Most utilities, rating agencies, and the investment community place significant emphasis on having sufficient reserves and designations. The level of reserves maintained by a utility is an important component when developing a multi-year financial management plan.

It is beneficial to periodically review reserve policies given changes in outstanding debt obligations, potential operational and financial risks, and the condition and vulnerability of system infrastructure.

This type of review ensures reserve policies remain aligned with the present state of operations and financial management.

The Electric Utility currently maintains five designated reserves:
 Unrestricted (Electric Revenue Fund) – Serves as the primary operating reserve, providing liquidity for day-to-day operations, emergency expenses, and unforeseen cost fluctuations. The FY 2024 balance is $3.15 million, equivalent to 99 Days Cash on Hand, with a projected FY 2030 balance of $8.18 million (223 days). Recommended target is 180 days; adequately funded.

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 Administrative and Replacement Fund (ARF) – Supports long-term capital reinvestment and asset replacement. The ARF balance grows from $1.90 million in FY 2024 to $2.54 million in FY 2025, after which it remains steady at that level through FY 2030. Annual contributions range from $584,454 in FY 2024 to $672,670 in FY 2025, with subsequent years receiving consistent transfers of $611,666.67. Annual outflows of $611,666.67 are planned beginning in FY 2026 for capital reinvestment, matching the annual contribution and maintaining the balance at the $2.54 million target. Current and projected funding levels meet identified capital contribution requirements and preserve the target balance; adequately funded.  Large User Connection Fee Fund – Established to fund capital improvements or system upgrades required due to the addition of large-load customers. Funded through Connect Fee revenues, averaging $20,000 annually in the FY 2025–FY 2030 period, with a higher actual in FY 2024 of $38,726. While funding is consistent, the scale is modest relative to potential infrastructure costs for major large-user connections; partially funded.  Rate Stabilization Fund – Intended to offset potential short-term rate increases caused by sudden changes in revenue or expenditure levels. Annual reserve transfers of $511,066 are programmed each year in the financial plan, indicating an active funding mechanism; adequately funded.
 Power Cost Adjustment (PCA) Balancing Fund – Established to mitigate unanticipated, significant changes in the cost of purchased power. When drawn upon, funds are replenished through a PCA rate applied to usage. Annual reserve transfers noted above may also contribute to this fund; based on planned contributions, adequately funded.

The financial plan ensures that reserves with defined targets—specifically the Unrestricted Fund, ARF, Rate Stabilization Fund, and PCA Balancing Fund—remain at or above minimum policy levels throughout the planning horizon. The Large User Connection Fee Fund should be periodically reviewed to confirm adequacy relative to anticipated load growth and system upgrade needs. 4-4 Financial Performance Criteria
The financial health of the electric utility is guided by three key performance criteria. These benchmarks ensure that electric rates remain sufficient to support operations, debt obligations, and long-term sustainability:
 Reserve Balance: The city maintains an electric resource reserve account designed to provide operating liquidity and capital flexibility. The minimum balance in this account is targeted at 180 days of operating expenses, consistent with industry best practices.

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 Financial Metrics:
o Operating Ratio: Determined by taking the operating expenses divided by the operating revenues and multiplied by 100. Results for the test year are 80.6%. Industry average is 87%.
o Debt Service Coverage Ratio (DSCR): Tracks the utility’s capacity to meet debt service requirements. The current plan maintains a DSCR of no less than 2.4x in all forecast years, well above the 1.2x covenant
o Days Cash on Hand: Recommended days cash on hand is 180 days. The utility meets this for the forecasted years as part of this study.
o ARF Reserve Transfer – This fund is used to pay for capital improvement projects and serves as a capital reserve. The City’s current policy states that annual transfers should equate to 4% of net plant value. The forecast includes an estimate of this transfer amount based on the City’s 2025 Capital Improvement Plan which equates to $611,667 annually over the forecasted period.
o PCA balancing fund – For the fiscal year (FY 25) over-hydro budget is $5,280,000.

Twenty percent (20%) of the over-hydro budget for FY 25 is $1,056,000 which is the current PCA fund balance. Balancing fund as of November 2024 was $1,830,284, exceeding policy requirements. Pursuant to the PCA policy, on January 21, 2025, the Public Utility Board voted to approve to reduce the PCA rate by $0.02 to refund the over collected reserve funds starting February 1.
o Rate Stabilization Fund - The City’s Financial Policies currently maintain a minimum operating reserve balance of 10% of budgeted annual O&M expenditures, or approximately 1.2 months of O&M expenses, consistent with General Fund policies. 4-5 Proposed Financial Plan
The proposed financial plan for FY 2025 through FY 2030 maintains rate stability while meeting all operational, capital, and debt service obligations. No rate increases are proposed during the planning horizon. The plan leverages stable electric sales revenue, conservative load growth assumptions, and prudent cost forecasting. Annual transfers to capital reserves and ARF accounts are preserved, and all debt covenants are satisfied throughout the forecast.

While the plan sustains adequate coverage ratios and reserve targets, projected net cash from operations narrows in the later years of the forecast, declining from $3.51 million in FY 2025 to $1.69 million in FY 2030. This tightening margin is primarily driven by rising operating costs—particularly purchased power and administrative expenses—outpacing the modest growth in revenues. Continued Agenda Item 6.
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monitoring of expenditure trends and load performance will be important to ensure the utility maintains sufficient flexibility to respond to unanticipated cost pressures or revenue fluctuations.

By aligning expenditures with actual consumption patterns and maintaining healthy financial metrics, the proposed plan supports both financial sustainability and long-term system reliability.

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5 Cost-of-Service Analysis
Section 5 Cost of Service Overview
A Cost-of-Service Analysis (COSA) is an analysis of a utility’s annual revenue requirements and a methodology for allocating these expenses across each customer category based on customer characteristics.

A utility’s revenue requirement is the amount of revenue the utility must generate annually to recover the costs incurred by the utility in the provision of service. Costs may include typical operating expenses, capital investments, and a necessary margin of revenue to ensure the utility’s ability to continue to safely operate. Costs included in a revenue requirement may be different whether the utility is privately or publicly held and will be based upon recent operating expenses and may include forecast adjustments.

In this study, the fiscal-year operating results for 2022 through 2024 were used as a starting point and projected forward to include changes from rising power costs, inflation, and other inputs made by NPUA staff. Needles Public Utility Authority must rely on its revenues from rates to fund operations and capital improvements to the electric system. Therefore, the following items have been included in NPUA’s revenue requirements and are further detailed below:

Determination of Revenue Requirements
+ Purchased Power Expense
+ Operation & Maintenance Expense
+ Administration & General Expense
+ Capital Projects funded from Rates
+ Reserve fund
= Revenue Requirements
The next step in the cost-of-service study is to separate the revenue requirements into the functional areas of the utility such as power supply, power distribution, and customer metering and billing functions. Costs may be further classified based on whether the costs are related to the supply of energy or a function of system capacity. Customer-specific costs may also be directly assigned to their own functional category.

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Once the revenue requirements have been functionalized and classified according to the proper cost components, they are allocated among the separate customer categories. The goal of cost allocation is to properly assign costs using a cost causation model, ensuring that each customer is being sufficiently charged for the impact they have on the utility. Many of the allocation methods are widely accepted across utilities as standard practice based on the type of expense and cost function that is being allocated. This includes the use of energy sales data to pass through variable related costs such as fuel supply costs, and customer demand data to assign fixed costs associated with customer capacity/sizing requirements.
5-1 Functionalization
NPUA’s electric utility expenses were evaluated and assigned to various functional categories within the electric system. The functional categories include the following:
 Power Supply – Capacity: Fixed charges and capacity costs associated with the purchase of power.
 Power Supply - Energy: Volumetric or fuel-related costs associated with the production of power.
 Power Supply - Transmission: System delivery related charges for moving bulk power to the utility’s service territory.
 Delivery: Local distribution or repair related costs associated with delivering power to end-use customers.
 Customer: Connection: Costs related to connecting customers to the distribution grid.  Customer: Metering & Billing: Costs related to the metering, meter reading, and customer billing services provided to end-use customers.
 Administrative & General: Costs related to employee expenses and functioning of administrative services related to supporting end-use customers.  Direct Assignment: Costs that may be purposefully assigned to cost-causers, i.e. Street Lights.

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Table 7
Allocator Power -
Energy
Power -
Capacity
Power -
Transmission
Delivery Customer
Connection
Cust. Metering &
Billing
A&G Direct
Assignment
Direct Assignment 0% 0% 0% 0% 0% 0% 0% 100%
DA Power-Energy 100% 0% 0% 0% 0% 0% 0% 0%
DA Power-Capacity 0% 100% 0% 0% 0% 0% 0% 0%
DA PowerTransmission 0% 0% 100% 0% 0% 0% 0% 0%
Purchased Power 40% 50% 10% 0% 0% 0% 0% 0%
Parker Davis
Purchase Power 47% 41% 12% 0% 0% 0% 0% 0%
Power/Cap Split 50% 50% 0% 0% 0% 0% 0% 0%
Delivery 0% 0% 0% 50% 50% 0% 0% 0%
Service Drop 0% 0% 0% 0% 100% 0% 0% 0%
Metering 0% 0% 0% 0% 0% 100% 0% 0%
Billing 0% 0% 0% 0% 0% 100% 0% 0%
A&G 0% 0% 0% 0% 0% 0% 100% 0%
Salaries
0% 0% 15% 30% 30% 20% 5% 0%
Operating expenses for FY 2026 were evaluated and allocated to the most closely associated functional categories within the electric system, as shown in Table 7. The detailed functionalization of the operating budget is included below in Table 8.

Table 8
Line Cost Function Operating Expense
1 Power Supply – Capacity $1,001,123
2 Power Supply – Energy $1,499,265
3 Power Supply – Transmission $229,241
4 Delivery $1,062,869
5 Customer: Connection $1,133,772
6 Customer: Metering & Billing $330,683
7 Administrative & General $160,977
8 Direct Assignment $0
9 Total $11,976,266
5-2 Cost Causation Classification
Cost causation classification is the process of attributing utility costs to the customers or services that generate those costs, ensuring equity in rate development. For this study, NPUA’s FY 2026 operating expenses were functionalized into discrete categories—power supply, delivery, customer services, administration, and direct assignments—so that costs are aligned with the specific utility functions they support.

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Power supply costs, including both capacity and energy, are assigned based on each customer class’s contribution to system demand and total energy consumption. Delivery-related costs are allocated according to the infrastructure requirements necessary to serve each class, while customer-related expenses are distributed based on the level of service activity (e.g., billing, metering) required. Direct assignments are made where costs can be specifically attributed to a particular class or function.

This classification and allocation process also incorporates NPUA’s minimum revenue requirement necessary to meet ongoing Administrative and Replacement Fund (ARF) transfers, debt service obligations, and other fixed financial commitments. For the test year, this equates to a minimum required return of approximately 17% above operating expenses to maintain compliance with reserve policies and debt covenants. The functionalized approach ensures that these fixed obligations are proportionally recovered from all customer classes based on cost responsibility, supporting both financial sustainability and rate fairness. The end results of the cost allocation process are detailed in the table below:

Rate Class Allocated
Revenues
Allocated
Expenses
Over / (Under)
COSS
as %
Residential $4,633,573 $4,331,735 $301,838 7%
Small Commercial (0-25kW) $1,590,967 $1,601,352 -$10,385 -1% Medium Commercial (25kW-100kW) $1,010,181 $680,601 $329,579 33% Large Commercial (100kW+) $7,582,689 $5,567,862 $2,014,828 27% Streetlights $39,342 $85,834 -$46,492 -118%
Total $14,856,751 $12,267,384 $2,589,367 17%
5-3 Unbundling / Unit Costs
Following the classification of costs by functional category, the next step in the cost-of-service analysis is to unbundle those costs into unitized components that reflect how costs are incurred and recovered.

Unbundling unit costs involves translating the total costs within each function—such as capacity, energy, delivery, customer service, and administration—into cost metrics that can be applied to specific billing units like kilowatts (kW), kilowatt-hours (kWh), meters, or customer accounts. This process provides the foundation for rate design by identifying the unit cost basis for each portion of the customer bill. For example, capacity-related costs are typically expressed on a $/kW basis to reflect demand-related cost recovery, while energy-related costs are expressed on a $/kWh basis to align with volumetric consumption. Customer-related costs are unbundled into a $/meter or $/account metric to support the development of fixed monthly charges. By unbundling costs in this way, the rate design process can ensure that each rate component corresponds to the service being provided, supporting transparency, equity, and alignment with cost causation principles.

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Unbundled Unit Costs TOTAL Residential
Small
Commercial
(0-25kW)
Medium
Commercial
(25kW100kW)
Large
Commercial
(100kW+)
Streetlights
Customer - Related
Metering & Billing (Monthly) $19.32 $18.73 $19.25 $31.75 $157.55 $0.09 Service Connection (Monthly) $27.51 $21.03 $42.07 $105.17 $147.24 $15.87 Delivery
Per MWh $22.15 $33.19 $33.05 $6.31
Per kW $5.79 $5.08
Generation - Energy per MWh $43.92 $26.54 $26.54 $26.55 $59.62 $59.62 Generation - Capacity Per MWh $50.58 $59.92 $69.34 $46.81 $21.66 Generation - Capacity Per kW $8.31
Agenda Item 6.
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6 Electric Rates
Section 6 Rate Options
6-1 General Rate-Making Principles
Utilities need to establish rates that are fair and equitable for customers while also covering all operational costs and providing for necessary capital investments. Rate structures should be designed to promote energy conservation and reflect the true cost of service delivery, which may vary by customer class or usage level.

Utility rates are typically required to be fair and not unduly discriminatory among customer classes. In addition to this equitable standard, rate experts also recognize other considerations in the setting of utility rates, including recovery of costs by the utility, efficient use of resources, simplicity, stability, and competition with other suppliers or alternatives. After a class COSA is prepared, it must be decided how much weight should be given to the COSA versus the results indicated by other analyses and considerations in adjusting the rates of each customer class. Though some agencies, councils and boards give great deference to the results recommended by the COSA, many others use it only as one of several considerations given weight in the rate setting process. In part, this willingness of regulatory agencies or boards to depart from the results of a COSA is because there is no single or right way to develop a COSA.

The results of designing electric rates, especially unbundled rates, are not as definitive or unassailable as designing the electric distribution system, which is paid for through electric rates. Nonetheless, the result (or a range of alternative results) of a class COSA provides valuable information as to the relationship between the electric service used by class and the utility's overall costs. While there is a range of reasonable results for a COSA, that range is not unbounded and there are clearly times when the rates of a class fall outside of this range, resulting in a class subsidizing or being subsidized by other customer classes. In the end, the principles by which rate practitioners are guided is that rates designed for any utility should strike a reasonable balance between several key factors. In general, rates should:
 Generate a stable rate revenue stream which, when combined with other sources of funds, is sufficient to meet the financial requirements and goals of the utility,  Be equitable – that is, they should generate revenues from customer classes that are reasonably proportionate to the cost to provide service to that customer class,  Be easy to understand by customers, and
 Be easy to administer by the utility.

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Finding the right balance in ratemaking involves a thorough evaluation of revenue needs and service costs. This process determines how to design rates that comply with legal requirements and meet the utility's specific goals given its operating conditions. 6-2 Current Rate Design
The City of Needles electric utility employs a single rate structure for all NPUA customers that distinguishes between winter and summer periods to account for varying energy demand and hydro allocation availability. Winter rates, effective from December 1 through February 28, include a monthly Basic Service Charge and provide a 401-kWh hydroelectric allocation at the “under hydro” current rate.

Any usage beyond this hydro allocation is charged at an Over Hydro rate.

In contrast, the summer rates, effective from June 1 through September 30, keep the same Basic Service Charge but increase the hydro allotment to 754 kWh, with a lower hydro rate than the summer hydro rate. The Over Hydro rate during the summer is also reduced due to a planned Power Cost Adjustment (PCA. Both seasonal periods include a California-mandated Conservation Charge of $0.0025 per kWh and a Utility User Tax—applied only in the summer—at a rate of 2.5%. This structure reflects a policy goal of distributing lower-cost hydro resources evenly amongst all customers, adjusted seasonally for resource availability.
6-3 Rate Design Theory
Rate Design is rooted in time and court-tested theories and aims for rates that are just and reasonable, are fair and avoid undue discrimination, are simple to understand, are stable, are designed to promote the efficient use of energy, and are effective at yielding the revenue requirements. The allocation process during the cost-of-service analysis plays a critical role in determining the starting point for the rate design. Continual investigation of costs and analysis of customer usage data can further our abilities to make sure rates are just and reasonable and are equitably allocated amongst revenue classes. The design of rates themselves plays the critical role in determining whether rates are effective to yield the revenue requirements, are understandable, and promote efficient use of energy. Several alternative rate options is provided below:
6-3-1 Flat Rates
Flat rates can come in several forms such as a monthly customer charge typical of streetlighting and unmetered devices, customer and energy charges that differentiate between the metering and billing costs from the delivery of power, or customer, energy, and demand charges that differentiate between billing, fixed system, and variable energy costs. The benefit of flat rates is that they typically are easy to understand and implement and may be well suited for yielding the revenue requirements. The Agenda Item 6.
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disadvantage of flat rates is that they might not promote efficient use of energy and may lead to costs being socializing across customers who may have different cost impacts on the system. 6-3-2 Inclining Block Rate
Inclining block rates are designed with rate charges that increase with the increased use of the system.

Inclining block rates are great at promoting energy conservation, but may be more difficult to understand by customers, more difficult to implement, may disadvantage efficient users of the system, and may be less effective at yielding the revenue requirements. 6-3-3 Declining Block Rate
Opposite from inclining block rates, declining rates decline with greater use of the system. Often used as an alternative to demand-based rates, declining block rates can help ensure the revenue requirements are collected, but may be more difficult to understand and implement, discourages conservation, and may discriminate against low-use customers. 6-3-4 Time-of-Use Rates
Time-of-use rates may be implemented if the time-variance of system use affects the costs of operating the system. Examples of this would include power supply and transmission costs that increase during peak system hours. Time-of-Use rates would be designed to mimic the intervals of higher system costs through increased prices during peak periods. Time-of-Use rates may be considered fairer since they align power supply costs with the cost-causers to a better degree and maybe more efficient at yielding revenue requirements, however they are significantly more difficult to understand and to implement. 6-4 Proposed Rate Options
As part of the City’s efforts to ensure fair, sustainable, and transparent electric rates, three-rate design options and a separate evaluation of street lighting charges were presented to the Alternative Rate Ad Hoc Committee for review and discussion. The Committee was tasked with evaluating how best to align the utility’s cost of service findings with ratepayer expectations, affordability goals, and long-term financial stability. The rate options explored a range of structures—keeping the current approach, simplifying the allocation of power and delivery costs, and integrating demand-based billing—all with the goal of improving fairness and consistency across customer classes. The Committee’s feedback was critical in shaping the recommendations included in this report. 6-4-1 Rate Option 1
Rate Option 1 keeps the City's existing pricing structure without change. This approach maintains the current rate design, customer classifications, and rate levels, offering continuity for customers while avoiding the need to revise any billing system components. It preserves the simplicity of the existing Agenda Item 6.
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structure, although it does not address underlying cost allocation imbalances shown in the cost-ofservice study.

SAMPLE BILLING (SUMMER)
Residential
(1500 kWh)
Large Commercial
(100kW+)
Basic Service Charge $36.22 $36.22
Hydro Allotment (754 kWh) $53.08 $53.08
Over Hydro $92.35 $29,351.25
CA Cons. Charge $3.75 $594.60
$185.41 $30,035.15
6-4-2 Rate Option 2
Rate Option 2 introduces a class-based rate structure that differentiates between Residential, Small Commercial (0–25 kW), Medium Commercial (25–100 kW), and Large Commercial (over 100 kW) customers. Each class includes a fixed customer charge, with remaining costs split between a Power Charge and a Delivery Charge. This unbundled structure creates greater transparency, improves cost alignment, and supports the utility’s ability to adapt charges as wholesale power costs change.

SAMPLE BILLING (SUMMER)
Residential
(1500 kWh)
Large Commercial
(100kW+)
Customer Charge $45.15 $346.08
Delivery Charge Per MWh $29.75 $1,744.26
Power Charge Per MWh $174.04 $24,001.19
CA Cons. Charge $3.75 $594.60
$252.69 $26,686.12
6-4-3 Rate Option 3
Rate Option 3 builds upon Option 2 by introducing a Demand Charge for Medium and Large Commercial customers. This component better reflects the cost of infrastructure needed to support higher usage and demand profiles. By recovering a portion of costs through a demand-based mechanism, the utility can more accurately assign costs to the customers who place the greatest load on the system, while incentivizing more efficient energy use.

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SAMPLE BILLING (SUMMER)
Residential
(1500 kWh)
Large Commercial
(100kW+)
Customer Charge $45.15 $346.08
Delivery Charge Per MWh $29.75 $0.00
Delivery Charge Per kW $0.00 $1,525.00
Power Capacity Charge Per kW $0.00 $5,231.12
Power Energy Charge Per MWh $174.04 $18,017.97
CA Cons. Charge $3.75 $594.60
$252.69 $25,714.77
6-4-4 Street Lighting Rate Option
Street Lighting Rate Option presents a separate analysis of streetlight charges, which have not been revisited in many years. The proposed rates were developed based on available records of bulb types and sizes and reflect a cost-to-serve model based on assumed dusk-to-dawn operation. While the analysis could be refined further with updated inventory data, the current proposal provides a more equitable baseline for recovering streetlight service costs and encourages future evaluation by lamp type, fixture style, and mounting method.

STREETLIGHTS
Type Size KWh Current Rate Proposed Rate
Decorator 100 43 $11.74 $22.39
Sodium 100 43 $8.62 $22.39
Sodium 200 85 $14.58 $26.57
Sodium 400 171 $27.15 $35.12
LED 38 16 $4.24 $19.71
Agenda Item 6.
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Section 7 Cost of Service Rate Summary and Recommendations 7-1 Proposed Rate Design
7-1-1 Electric Rate Adoption
The proposed rate design for the City of Needles maintains the current seasonal rate structure and customer class distinctions, preserving its familiar and easy-to-understand application for all users.

Following a review with the Alternative Rate Ad Hoc Committee, the rate structure was evaluated for equity across customer classes. The Committee’s feedback highlighted that the largest commercial customers are sharing the cost burden under the existing structure, effectively subsidizing residential customers. The retained design incorporates this input, ensuring a continued balanced cost recovery across classes while still supporting the City's overarching rate policy goals. These goals include maintaining affordable residential rates, offering a transparent and straightforward rate structure for all customers, and ensuring commercial rates stay competitive to attract and keep large commercial and industrial development. This design strategy aligns with the City's economic development goals while promoting fairness and long-term stability.

The Alternative Rate Ad Hoc Committee’s decision does not shut the door on alternative rate designs in the future; however, given limitations in NPUA’s customer billing system and likelihood of rate-shock inducing shifts between rate designs, it was not appropriate to change at this time. 7-1-2 Street Light Rate Adoption
The City has accepted the proposed adjustments to the streetlight rate structure, acknowledging the need to better align charges with the actual cost of service. As the City bears full financial responsibility for these assets, the updated rates provide a more accurate reflection of operating costs while preserving fiscal accountability. The rate modifications will be implemented to ensure that charges are proportional to usage and technology type. In addition, the city has started a transition plan to replace high-pressure sodium fixtures with LED alternatives as existing bulbs reach the end of their service life.

This phased LED conversion is expected to enhance energy efficiency and reduce long-term maintenance and operating costs, further supporting the sustainability of the city’s street lighting system.
7-2 Recommendations
Based on the comprehensive findings of this study, the City of Needles is well-positioned to maintain financial stability without requiring immediate rate increases. The utility’s strong cash position, consistent revenue growth, and fully funded capital improvement plan demonstrate prudent financial stewardship. With a diverse customer base and a well-structured supply portfolio, Needles can continue Agenda Item 6.
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to meet its operational and capital obligations while investing in infrastructure that supports long-term system reliability and growth. The proposed rate design retains the simplicity and fairness of the current structure, aligns with community input received through the Alternative Rate Ad Hoc Committee, and supports the City’s policy priorities of maintaining low residential rates, promoting transparency, and ensuring equitable cost recovery across all customer classes.

Based on our findings, we recommend that:
 The City adopt the proposed financial plan and proposed increases to the street lighting rates,  Continue to actively monitor NPUA’s evolving power resources and evolving market conditions,  Modernize customer programs to make adoption of more complicated rate designs more feasible and data collection and reporting more accessible,  Revisit its cost-of-service analysis periodically to ensure ongoing alignment with operational needs and ratepayer expectations.

Agenda Item 6.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: Approve a 2.7% cost-of-living (COLA) increase in electric basic service charge rate as of October 1, 2025; approve an over-hydro rate of $0.1159 effective October 1, 2025; eliminate the $.0300 Power Cost Adjustment and approve the methodology to calculate the annual electric base rate and the power cost adjustment rate based on the rate calculation spreadsheets
Background: The Statement of Policies, revised April 2022, provides that power rates will be designed to provide for operation and maintenance, bond payments, purchase payments, taxes, fair share allocation, trustee fee, mandated (but unfunded) state or federal program (conservation program), the asset replacement fund, and the actual costs to purchase power. The calculated rate will consist of two components:
power purchase costs, and non-power purchase costs. The CPI for the USDLS U.S. West – Size Class B/C for June 2025 indicates a 2.7% cost of living increase. The policy sets a cap at 5%. The attached spreadsheets are in accordance with the revised Statement of Policies and will set the new rates as follows:

Current Effective Oct 1, 2025
Basic Service Charge $36.22 $37.20
Winter Hydro (Oct – Feb) $.0818 – 401 kwh allotment $.0923– 376 kwh Summer Hydro (Mar – Sept) $.0704 – 754 kwh kwh allotment $.0832 –707 kwh Over-hydro **$0.1423 *$0.1159
CA Energy Efficiency Program $0.0025 $0.0022
Utility Users Tax (UUT) 2.5% on all of the above 2.5% on all of the above As of July 2025, the Power Cost Adjustment has a positive balance of $889,349. Proposed rates eliminate the additional $.0300 Power Cost Adjustment
The Board of Public Utilities approved the recommended action on September 2, 2025.

Fiscal Impact: Cost of living adjustment applied to the basic service charge, decrease in over hydro rate from $0.1423 to $0.1159.

Environmental Impact: N/A
Recommended Action: Approve a 2.7% cost-of-living (COLA) increase in electric basic service charge rate as of October 1, 2025; approve an over-hydro rate of $0.1159 effective October 1, 2025; eliminate the $.0300 Power Cost Adjustment and approve the methodology to calculate the annual electric base rate and the power cost adjustment rate based on the rate calculation spreadsheets

Submitted By: Rainie Torrance, Utility Manager

City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/205
Agenda Item 7.

Agenda Item 7.

Agenda Item 7.
12-Month Percent Change
Series Id: CUURN400SA0
Not Seasonally Adjusted
Series Title: All items in West - Size Class B/C, all urban consumers, not seasonally adjusted Area: West - Size Class B/C
Item: All items
Base Period: DECEMBER 1996=100
Download:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2015 0.0 0.6 0.8 0.9 0.8 0.5 0.3 0.3 0.0 0.1 0.1 0.5 0.4 0.6 0.2 2016 1.3 0.8 0.3 0.5 0.4 0.5 0.6 0.7 1.1 1.3 1.7 1.8 0.9 0.6 1.2 2017 1.8 2.3 2.5 2.3 2.0 2.0 1.9 2.3 2.6 2.7 2.7 2.7 2.3 2.1 2.5 2018 2.8 2.5 2.6 2.6 3.0 3.2 3.2 3.0 2.8 2.9 3.1 2.9 2.9 2.8 3.0 2019 2.5 2.3 2.3 2.7 2.8 2.6 2.6 2.5 2.3 2.5 2.5 2.8 2.5 2.5 2.5 2020 2.8 2.9 2.5 1.5 0.5 0.8 1.5 1.8 2.0 1.6 1.6 1.5 1.7 1.8 1.7 2021 1.6 1.8 2.6 3.9 5.4 6.0 6.0 5.6 5.7 6.3 6.9 7.4 4.9 3.6 6.3 2022 8.1 8.5 9.0 8.6 8.4 8.5 8.3 8.3 8.3 8.3 7.2 6.3 8.2 8.5 7.8 2023 6.0 5.7 5.2 4.8 4.4 3.6 3.5 3.7 3.9 3.2 3.1 3.5 4.2 4.9 3.5 2024 3.7 3.2 3.6 3.7 3.1 2.6 1.9 1.7 1.6 1.7 2.1 2.3 2.6 3.3 1.9 2025 1.9 2.3 1.8 2.0 2.5 2.7 3.3 2.2
Agenda Item 7.

Agenda Item 7.

Agenda Item 8.

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
COUNCIL CHAMBERES, 1111 BAILEY AVE, NEEDLES
TUESDAY, AUGUST 12, 2025 - COUNCIL EXECUTIVE SESSION – 5:00 PM - CITY COUNCIL MEETING – 6:00 PM CALL TO ORDER - Mayor Jernigan called the meeting to order at 5:00 pm

ROLL CALL

PRESENT
Council Member McCorkle
Vice Mayor Ellen Campbell arrived at 5:02 pm
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Tona Belt arrived at 5:03 pm
Council Member Henry Longbrake
Council Member Larry Ford
Also present were City Manager Patrick Martinez, Deputy City Attorney Lena Wade, Director of Development Services/Capital Projects Kathy Raasch, Utilities Manager Rainie Torrance, City Planner Irene Romero, Interim Finance Director Jill Taura, Senior Code Enforcement Officer Bernie Hatz, and City Clerk Candace Clark.

PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION - None RECESSED TO EXECUTIVE SESSION - 5:04 PM

EXECUTIVE SESSION
a. Significant exposure to litigation pursuant to Government Code section 54956.9(d)(2): (1 potential case)
No reportable action
b. Conference with Real Property Negotiators Pursuant to California Government Code §54956.8 Real Property: 144 Marina Drive, River’s Edge Snack Bar (Concession/Lease Agreement) Agency Negotiator: City Manager Patrick Martinez or his designee Negotiating Parties: City of Needles (potential lessor) and Kristin and Scott Baran (potential lessees) Under Negotiation: Price and terms of Lease.

No reportable action
c. Conference with Legal Counsel – Existing Litigation (Government Code § 54956.9) Name of Case: Ruben Junior Lopez v. California Department of Transportation, City of Needles, County of San Bernardino San Bernardino County of Superior Court CIVSB2518392 No reportable action
d. Conference with Labor Negotiator pursuant to California Government Code §54957.6 - Personnel - Agency Representatives City Manager Patrick Martinez and Pamela Osteen - Employee Organization: Teamsters Local 1932-Unclassified No reportable action
e. Conference with Labor Negotiator pursuant to California Government Code §54957.6 - Personnel - Agency Representatives City Manager Patrick Martinez and Pamela Osteen - Employee Organization: Teamsters Local 1932-Classified
No reportable action
Agenda Item 9.
f. Conference with Legal Counsel Regarding Potential Initiation of Litigation Pursuant to Government Code Section 54956.9(d)(4). Re: Medical Investor Holdings, LLC (MIH) and MIH Related Entities
No reportable action
CALL TO ORDER - Mayor Jernigan called the meeting to order at 6:21 pm

ROLL CALL

PRESENT
Council Member McCorkle
Vice Mayor Ellen Campbell
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Tona Belt
Council Member Henry Longbrake
Council Member Larry Ford
EXECUTIVE SESSION REPORT – Deputy City Attorney Lena Wade gave report as noted above.

PLEDGE OF ALLEGIANCE - led by Mayor Jernigan
INVOCATION - led by Vice Mayor Campbell
APPROVAL OF AGENDA – Mayor Jernigan announced that item 23 will be continued to the September 9 City Council Meeting.

Vice Mayor Campbell made a motion, second by Council Member Ford, to approve the agenda as amended above. Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None
CONFLICT OF INTEREST – None
CORRESPONDENCE – None
INTRODUCTIONS - Mayor Jernigan acknowledged former Council Members Tim Terral and Shawn Gudmundson in attendance.

CITY ATTORNEY – Parliamentary Procedures given by Deputy City Attorney Lena Wade.

PUBLIC APPEARANCE
Jared Johnston asked staff to address water leaks and ongoing construction on Monterey Street and expressed concern over contractor not packing the asphalt correctly. He also informed staff that there is a fire ring on Bob Belt Beach Park and requested it be removed; asked about the fiber installation taking place in the neighborhood behind the Elk’s and asked about the paving requirements, requesting City Staff monitor this to ensure compliance. He reported that the same contractors were blocking crosswalks in front of the school on the first day of school.

Shawn Gudmundson asked about the paving requirements for contractors cutting into the roads and urged staff to monitor
James Jones read an excerpt from the bible and expressed opposition of the pending AntiCamping Ordinance.

Don McCone spoke in favor of the Anti-Camping Ordinance, stating the community is compassionate and works together to help those in need; while also acknowledging the need to make the community safe and attractive to residents, tourists, and businesses.

PRESENTATION

1. Accept and file the City Annual Financial Report and Single Audit Report for the Fiscal Year Ended June 30, 2023.

Agenda Item 9.

Roger Martinez from Vasquez & Company LLP gave presentation.

City Manager Patrick Martinez gave staff report.

Council asked questions of staff and discussion ensued.

Mayor Jernigan opened public comment at 6:59 pm.

No Public Comment – closed at 7:00 pm.

Vice Mayor Campbell made a motion, second by Council Member Pogue, to accept and file the City Annual Financial Report and Single Audit Report for the Fiscal Year Ended June 30, 2023.

Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None

PUBLIC HEARINGS

2. Adopt Resolution 2025-32 Amending Resolution 2024-37 and increasing Green Fee Rates at the Rivers Edge Golf Course
City Manager Patrick Martinez introduced the item and Golf Pro JJ Deleon gave staff report.

Council asked questions of staff and discussion ensued.

Mayor Jernigan opened public comment at 7:07 pm.

No Public Comment – closed at 7:08 pm.

Vice Mayor Campbell made a motion, second by Council Member McCorkle, to Adopt Resolution 2025-32 Amending Resolution 2024-37 and increasing Green Fee Rates at the Rivers Edge Golf Course.

Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None

3. Adopt Resolution 2025-35 Approving Tentative Parcel Map (TPM) 20989 To Subdivide 2.54 Gross Acres Into Three (3) Parcels, Located At 193 Morgan Drive, Within The Two-Family (R2) Land Use Zoning District; APN 0650-318-08.

City Planner Irene Romero gave staff report.

Council asked questions of staff and discussion ensued.

Mayor Jernigan opened public comment at 7:13 pm.

No Public Comment – closed at 7:14 pm.

Vice Mayor Campbell made a motion, second by Council Member Pogue, to Adopt Resolution 2025-35 Approving Tentative Parcel Map (TPM) 20989 To Subdivide 2.54 Gross Acres Into Three (3) Parcels, Located At 193 Morgan Drive, Within The Two-Family (R-2) Land Use Zoning District; APN 0650-318-08.

Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None
Agenda Item 9.

NPUA / COUNCIL CONSENT CALENDAR
No Public Comment
Member/Council Member McCorkle made a motion, second by Member /Vice Mayor Campbell, to approve items 4 through 8 on the NPUA/Council Consent Calendar.

Motion carried by the following roll call vote:

Ayes: Members/Council Members Ford, McCorkle, Member/Vice Mayor Campbell, Member/Mayor Jernigan, Members/Council Members Pogue, Belt, Longbrake Noes: None

Absent: None
Abstain: None

4. Approved the First Amendment to the Non-Exclusive License Agreement for Joint Use of Poles between the City of Needles and Fort Mojave Telecommunications, Inc., authorizing additional attachments along Erin Drive, Washington Street, and Highland Avenue.

5. Authorized Brooks Consulting, LLC FY26 Electrical Engineering Fees not to exceed $15,000

6. Accepted the AB32 Greenhouse Gas (GHG) Emissions Verification Report 2024 Emissions prepared by WZI Inc.

7. Approved Change Order #1 with Raftelis Financial Consultants, Inc. to include a Joint Pole Cost of Service Analysis in the utility ratemaking study, at a cost not to exceed $5,000, to be funded from the adopted FY26 electric budget.

8. Accepted the California Public Utilities Commission (CPUC) Electric Distribution Audit covering the period of March 10–14, 2025, as documented in the final report dated June 25, 2025.

END OF NPUA CONSENT CALENDAR

REGULAR NPUA / COUNCIL ITEMS

9. Adopt Ordinance 676-AC of the City of Needles, California Establishing a Procedure for Property Owner Objections to Proposed Water/Sewer Fees or Special Assessment.

Deputy City Attorney Lena Wade gave presentation and staff report.

No Council discussion or questions.

No Public Comment
Member/Council Member McCorkle made a motion, second by Member/Council Member Ford, to Adopt Ordinance 676-AC of the City of Needles, California Establishing a Procedure for Property Owner Objections to Proposed Water/Sewer Fees or Special Assessment.

Motion carried by the following roll call vote:

Ayes: Members/Council Members Ford, McCorkle, Member/Vice Mayor Campbell, Member/Mayor Jernigan, Members/Council Members Pogue, Belt, Longbrake Noes: None

Absent: None
Abstain: None

HACN/COUNCIL CONSENT CALENDAR
Council Member Longbrake pulled item 10

10. Approve Change Order No. 1 for the NHA Primary Fencing Project increasing the contract with Golden West Fence by $32,573.22 for total contract amount of $233,099.77; and authorize staff to execute said Change Order.

City Manager Patrick Martinez gave staff report. Agenda Item 9.

Council asked minimal questions of staff.

Mayor Jernigan opened public comment at 7:19 pm.

No Public Comment – closed at 7:20 pm.

Member/Council Member Longbrake made a motion, second by Member/Council Member Pogue, to Approve Change Order No. 1 for the NHA Primary Fencing Project increasing the contract with Golden West Fence by $32,573.22 for total contract amount of $233,099.77; and authorize staff to execute said Change Order.

Motion carried by the following roll call vote:

Ayes: Members/Council Members Ford, McCorkle, Member/Vice Mayor Campbell, Member/Mayor Jernigan, Members/Council Members Pogue, Belt, Longbrake Noes: None

Absent: None
Abstain: None

11. Adopt Resolution No. 2025-11-HACN authorizing the establishment of a new account with LAIF and identifying HACN officials and staff authorized to transfer monies between HACN’s bank account and LAIF.

City Manager Patrick Martinez gave staff report.

Council asked minimal questions of staff and Interim Finance Director Jill Taura answered.

Mayor Jernigan opened public comment at 7:22 pm.

No Public Comment – closed at 7:23 pm.

Member/Vice Mayor Campbell made a motion, second by Member/Council Member Pogue, to Adopt Resolution No. 2025-11-HACN authorizing the establishment of a new account with LAIF and identifying HACN officials and staff authorized to transfer monies between HACN’s bank account and LAIF.

Motion carried by the following roll call vote:

Ayes: Members/Council Members Ford, McCorkle, Member/Vice Mayor Campbell, Member/Mayor Jernigan, Members/Council Members Pogue, Belt, Longbrake Noes: None

Absent: None
Abstain: None

END OF HACN / COUNCIL CONSENT CALENDAR

COUNCIL CONSENT CALENDAR
Council Member Longbrake pulled item 19

19. Waive the formal bid requirement for independent financial audit services and accept the three-year proposal from LSL CPAs and Advisors in the amount of $416,713, including a 10% contingency, with an option to extend the contract in years 4 and 5; and Increase the Purchase Order with Vaquez and Company LLC for Fiscal Year 2023 audit services by $30,000 for audit cost overruns.

City Manager Patrick Martinez gave staff report.

Council asked questions of staff and Interim Finance Director Jill Taura answered.

Mayor Jernigan opened public comment at 7:28 pm.

No Public Comment – closed at 7:29 pm.

Vice Mayor Campbell made a motion, second by Council Member Pogue, to Waive the formal bid requirement for independent financial audit services and accept the three-year proposal from LSL CPAs and Advisors in the amount of $416,713, including a 10% contingency, with an option to extend the contract in years 4 and 5; and Increase the Purchase Order with Vaquez and Company LLC for Fiscal Year 2023 audit services by $30,000 for audit cost overruns.

Motion carried by the following roll call vote: Agenda Item 9.

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None
Vice Mayor Campbell made a motion, second by Council Member McCorkle, to approve consent calendar items 12 through 18, 20 and 21.

Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None

12. Approved the Warrants Register through August 12, 2025

13. Approved the Minutes of July 8, 2025

14. Accepted and filed the June 2025 Treasurer’s Report.

15. Accepted and filed the July 2025 Treasurer’s Report.

16. Accepted the FY24 Emergency Management Performance Grant (EMPG) in the amount of $13,227.

17. Adopted Resolution 2025-34 Authorizing Submittal of Individual Grant Applications and Related Authorization for all Grant Programs Related to CalRecycle

18. Approved filing of a claim for Local Transportation Fund (LTF) and State Transit Assistance (STA) Funds for the fiscal year 2025-2026.

20. Approved the Seventh Amendment to the Professional Services Agreement for Building Support Services with Willdan extending the contract term for one (1) year.

21. Accepted Amendment No. 3 to the Professional Services Agreement with TKE Engineering Inc. to Provide On-Call Supplemental Engineering Services.

END OF COUNCIL CONSENT CALENDAR

REGULAR COUNCIL ITEMS

22. Approve the First Amendment to the Professional Services Agreement with Tripepi Smith for continued Marketing and Public Affairs Services in FY 2025–2026, for an amount not to exceed $40,000; Authorize the City Manager to execute the First Amendment and any related documents and Authorize the carryover of the Fiscal Year 2024-2025 Tripepi Smith purchase order and encumbrance of $9,226.25 from the original contract, allowing Tripepi to continue foundational work for the video marketing campaign.

City Manager Patrick Martinez introduced Jennifer Nentwig of Tripepi Smith, who gave Power Point Presentation. Christine Martin, also of Tripepi Smith, participated via Teams.

Council asked questions and discussion ensued.

Mayor Jernigan opened public comment at 7:52 pm.

No Public Comment – closed at 7:53 pm.

Vice Mayor Campbell made a motion, second by Council Member McCorkle, to Approve the First Amendment to the Professional Services Agreement with Tripepi Smith for continued Marketing and Public Affairs Services in FY 2025–2026, for an amount not to exceed $40,000; Authorize the City Manager to execute the First Amendment and any related documents and Authorize the carryover of the Fiscal Year 2024-2025 Tripepi Smith purchase order and encumbrance of $9,226.25 from the original contract, allowing Tripepi to continue foundational work for the video marketing campaign. Agenda Item 9.

Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None

23. Waive full reading and Adopt Ordinance 675-AC adding Chapter 11A, Camping, to the Needles Municipal Code, establishing regulations prohibiting camping on public property. (2nd Read - Adopt) – continued to September 9, 2025

24. Authorize those interested to attend the San Bernardino County 2025 State of the County event on September 17, 2025.

City Manager Patrick Martinez gave staff report.

Council discussion ensued. Mayor Jernigan, Vice Mayor Campbell, and Council Member Belt expressed an interest in attending.

Mayor Jernigan opened public comment at 7:55 pm.

No Public Comment – closed at 7:56 pm.

Council Member Ford made a motion, second by Vice Mayor Campbell, to authorize Mayor Jernigan, Vice Mayor Campbell, and Council Member Belt to attend the San Bernardino County 2025 State of the County event on September 17, 2025.

Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None

25. Adopt Ordinance 677-AC of the City Council of the City Of Needles, California, Amending Chapter 18, Article 18-V, Entitled “Conduct On Public Property” in the Needles Municipal Code. (1st Read)
City Manager Patrick Martinez gave staff report.

Council asked minimal questions of staff and Senior Code Enforcement Officer Bernard Hatz responded. Minimal discussion ensued.

Mayor Jernigan opened public comment at 8:02 pm.

No Public Comment – closed at 8:03 pm.

Council Member Ford made a motion, second by Council Member Pogue, to adopt Ordinance 677-AC of the City Council of the City Of Needles, California, Amending Chapter 18, Article 18-V, Entitled “Conduct On Public Property” in the Needles Municipal Code. (1st Read).

Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None

Absent: None
Abstain: None

26. Provide Staff Direction on School Zone Analysis
City Manager Patrick Martinez gave staff report.

Council asked questions of staff and Director of Development Services/Capital Projects Kathy Raasch, responded. Considerable discussion ensued.

Mayor Jernigan opened public comment at 8:14 pm. Agenda Item 9.

Shawn Gudmundson asked why this was being addressed and suggested cost sharing with the Needles Unified School District.

Public Comment – closed at 8:16 pm.

Council directed staff to seek funding to move forward with the School Zone Analysis

27. Provide Staff Direction - Multi-Way Stop Warrant and Crosswalk Evaluation – Broadway St. & B Street
City Manager Patrick Martinez gave staff report.

Council asked questions of staff and considerable discussion ensued.

Mayor Jernigan opened public comment at 8:21 pm.

No Public Comment – closed at 8:22 pm.

Council advised staff that action is not currently warranted.

CITY ATTORNEY REPORT – given by Deputy City Attorney Lena Wade CITY CLERK REPORT – given by City Clerk Candace Clark
CITY MANAGER REPORT – for the weeks of July 25 and August 1, 2025, given by City Manager Patrick Martinez

COUNCIL REQUESTS
Council Member Ford
 Stop sign on Front + K- by K Street Bridge – can it be removed? Council Member McCorkle
 Thanked Fire Department for getting fire out fast
 Pics of Needles-various locations - add QR codes?
 Real Estate function on web- to show commercial properties for sale  Labor Day-extra patrol after dark-in J S. Park area
 Thanked Tim for Channel 2
Vice Mayor Campbell
 Thanked Staff for cleaning up Bazobooth and Cibola after storm – asked for cleanup of the dirt that was washed into the road near B street
 Reported on the 75th Anniversary party for Peanuts and Thanked the Mayor and Bing from Colorado River Medical Center.
 Thanked Sheriff’s for being proactive during the busy summer season  Reminded everyone about water safety
 Thanked Code Enforcement for all their efforts
Council Member Pogue
 No Requests
Council Member Belt
 No Requests
Council Member Longbrake
 Reported that we need lights in the dog park
 Asked about the status of the sign in front of Council Chambers  Lights (globes) on Broadway and a couple at Santa Fe Park are broken and need to be replaced Mayor Jernigan
 Reported on success of the Peanuts event and participated in an interview on KNTR Speak Out promoting the event
 Fall Festive coming on November 1 – kiddie parade
 Thanked Sheriff for the Backpack drive
 Reported on attendance at the Cal Cities joint meeting with Vice Mayor Campbell  Requested an update to the sign coming into Needles
ADJOURNMENT - Mayor Jernigan adjourned the meeting at 8:49 pm Agenda Item 9.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: Resolution 2025-36 Destruction of Obsolete Records Background: Per the City’s Record Retention Policy, the itemized records attached to the resolution are past the required retention period. The list has been approved for destruction by the City Attorney.

Fiscal Impact: Cost to Destroy
Recommended Action: Adopt Resolution No. 2025-36 authorizing destruction of certain city records pursuant to Government Code Section 34090
Submitted By: City Clerk Candace Clark

City Manager Approval: Date:

Other Dept. Approval (when required): Date:
9/4/2025
Agenda Item 10.

RESOLUTION NO. 2025-36

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA,

AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS PURSUANT TO GOVERNMENT CODE SECTION 34090
WHEREAS, Government Code Section 34090 provides for and authorizes, with approval of the City Council and the written consent of the City Attorney, the head of a city department to destroy certain types of city records, documents, or instruments under their charge after they are no longer required; and
WHEREAS, the City Council adopted Resolution No. 2013-35, adopting a citywide records management program and records retention schedule and electronic (e-mail) policy; and WHEREAS, the City Clerk has determined that certain city records are no longer needed and are not required to be kept by law; and
WHEREAS, the City Attorney has given written consent to the destruction of such records and has further given his opinion that the destruction of such records is authorized by law.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Needles, California, does hereby approve the destruction of certain records pursuant to Government Code Section 34090 as listed on Exhibit A, attached hereto.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council held on the 9th day of September 2025, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
APPROVED AS TO FORM:

Lena Wade, Deputy City Attorney
Agenda Item 10.
09-09-25-2025
EXHIBIT A RESOLUTION NO. 2025-36

CITY OF NEEDLES
To: City Clerk
From: Department Head
Subject: Request for Destruction of Obsolete Records
I am requesting approval to destroy the obsolete records listed below. _______Various_________________ September 9, 2025
Department Head Date

DATE OF RECORD DESCRIPTION OF RECORD

SEE ATTACHED
(If additional space is needed to describe records, please attach additional pages)

APPROVED
_______________________________________ ____________________ City Attorney Date
The obsolete records described above (and on any attached pages) were approved by the City Council for destruction on:

Date: ____________________________ Resolution No. ____________________ The obsolete records described above (and on any attached pages) were destroyed under my supervision using the following method:
 Shredding  Burning  Other (specify method)
I certify that such destruction meets the requirements of the City’s Records Retention and Destruction Policy and all applicable requirements of State and federal law. _______________________________________ _______________________ City Clerk Date of Records Destruction
Agenda Item 10.

SEPTEMBER 2025 SHRED LIST
CHERYL
BOX #1 CKS
Xerox Corp - purchase of 1048 copier 1986
Xerox 6010 Memorywriters (typewriters) - Full Service Maintenance Contract (canceled 7/1/94) Purchase of Xerox 1025 Copier Machine - Traded in 8/96
Xerox - purchase of Xerox 7011 Telecopier - Rcvd 9/9/88 - sent to hospital 4/95 Xerox 5328ZTAS copier - 48 month lease/purchase 8/96
Xerox 5340 Copy Machine - purchased 1/94
Xerox - purchase of 7042 facsimile (fax machine) - purchased 2/95 Xerox 7042 Fax - 48 month lease/purchase 8/96 - traded in 7/06 Xerox CopyCentre C65 - 60 month lease 2/04 - traded in 1/11 Xerox WorkCentre Pro 765 Fax Machine - purchased 7/06
PROPERTY FILES:

Tax Defaulted Properties 2005 & 2006
Tax Defaulted Property August 2010 Tax Sale (City Lien) Tax Defaulted Properties 2004 - 2007
Tax Sale Parcels1998 - 2004
Overland Motel - 712 W Bdwy - purchase thru tax sale (Nov '13) Pair-A-Dice Boat Storage (Gocke & Conley) - Needles Highway Improvement Agreement 2006 - 2011
Tri-State Truss/T&A Enterprises LLC - Sale of City Property - Amortization Schedule 8/2007 - 7/2012
BOX #2 CKS
Deco Foods / Eagles - (Individual signed by each) Property Owner Participation Agreements between the City and Deco Foods / Fraternal Order of Eagles Aerie No. 2599 re Improvement of and Exchange of Certain Real Property located on Front St between D & E Streets 2005 Chevrolet - possible purchase of property across the street from dealership - offer rejected 2/4/05
Ford - possible purchase of property next to admin offices/service (old Budget Motel prpty) 2003 Baldwin, Kenneth & Joella - NPUA property purchase between Bush and Vine St (6 lots total) Nov 2010
221 Monterey - purchased thru HUD's $1 Home Sales Program 7/2002 1925 Luna Vista Improvements - property sold - file closed 9/16 Budget / El Rancho Motels - Condemnation / Acquisition by City 2003 - 2018 Needles Chamber of Commerce - Theater/Masonic Temple Building - offer to donate to city (2/04) - offer withdrawn 10/05
Masonic Building & Old Theater on Broadway & 'F' Street - misc information 1991-1996 145 N 'K' Street (APN 0185-111-78) - acquire for River Street realignment --- Also 225 N 'K' St. 2007-2011
BOX #3 CKS
Melnick/Puchlik - Skilled Nursing/Assisted Living Facility on Lily Hill at Bailey Ave 2006 Malonson Mngmt Group - Exclusive Agree to Nego - Parcel 3 - 80 acres m/l (senior assisted living facility) 2004 - 2007
Millennium II USA Services - Senior care facility located next to the hospital (5/00) - 2006 Smith Property Acquisition/Condemnation - 999 Smith Road 1/04 CJPIA - Liability & Property (misc) 2009-2013
CJPIA - Liability & Property (misc) 2014-2015
BOX #4 CKS
Transit records (DAR, DAR Medical-Shopper, NAT) 2011-2012 Transit records (DAR, DAR Medical-Shopper, NAT) 2012-2013 Agenda Item 10.

BOX #5 CKS
Transit records (DAR, DAR Medical-Shopper, NAT) 2013-2014 FTA Section 5311 2013-2014
One box of records from the Needles Senior Citizens Club - transit records for Dial-a-Ride services (Demand Response and Medical Transport monthly, daily, driver's logs) June 2012 - June 2015; two receipts books Jan 2011 - April 2015 (Note: City retains its transit records for 10 years)

FINANCE
4 boxes – Warrants 2020
4 boxes – 2020 Daily Cash Receipt Reconciliations
1 box – 2006 Golf alcohol count sheets, misc daily reports and receipts 1 box FY 18 Month end financial reports
1 box FY 19 Month end financial reports
1 box FY 20 Month end financial reports

BILLING OFFICE
24 BOXES – cash edit boxes for 2019
18 BOXES – cash edit boxes for 2020
29 BOXES – cash edit boxes for 2021
12 BOXES – cycle billing boxes for 2019
12 BOXES – cycle billing boxes for 2020
12 BOXES – cycle billing boxes for 2021
BUSINESS LICENSE APPLICATIONS FOR 2002, 2003, 2009, 2010, 2011, 2012, 2013, 2014, 2014, 2016, 2017, 2018, 2019, 2020.

Sanitation billing 2019, 2020, 2021
Service applications 2019, 2020, 2021

HUMAN RESOURCES (HR)
2 boxes of applications of people NOT hired older than two years.

Old I-9’s - one year after termination or 3 years after date of hire whichever is later. Mostly from 2005 or earlier up to 2021
2005 or earlier up to 2022 Old employee files

GOLF COURSE
FILE FOLDER OF OLD INSURANCE POLICY DOCUMENTS – 2005-2006 Agenda Item 10.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: Ordinance 677-AC Amending Chapter 18, Article 18-V, “Conduct on Public Property,” of the Needles Municipal Code 2nd Read Adopt Background: Ordinance 677-AC was introduced for approval at the August 12, 2025, Regular NPUA / HACN/City Council Meeting. A motion and a second were made, and the Ordinance was approved by a 6-0 vote in favor.

The City, in coordination with the San Bernardino County Sheriff’s Department, has experienced a rise in trespassing and other conduct- related violations on public property. These include unauthorized entry, vandalism, damage to landscaping, misuse of facilities, and activities that compromise safety, accessibility, and the intended use of streets, parks, and other public areas.

To address these issues, City staff requested the City Attorney’s Office to draft an ordinance clarifying enforcement authority and adding explicit provisions for prohibited trespass. The ordinance specifies posting requirements, enforcement standards, and penalties, and applies to all individuals—establishing consistent, enforceable rules citywide. While the City remains committed to connecting unsheltered persons with available resources, including housing, these regulations ensure that all individuals are held to the same standards.

Ordinance 677-AC strengthens the City’s ability to keep public spaces clean, sanitary, and accessible, without impeding lawful and ordinary uses of public or private property. It aligns with the July 24, 2025, Executive Order “Ending Crime and Disorder on America’s Streets”, which calls for municipalities to enforce prohibitions on trespassing, loitering, vandalism, and other conduct that threatens public safety.

Fiscal Impact: Minimal cost for signage.

Recommendation: Waive full reading and Adopt Ordinance 677-AC of the City Council of the City of Needles, California, amending Chapter 18, Article 18-V, entitled “Conduct on Public Property” in the Needles Municipal Code.

Submitted By: Bernard Hatz II, Senior Code Enforcement Officer City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 11.
1 ORDINANCE NUMBER 677-AC

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA, AMENDING CHAPTER 18, ARTICLE 18-V, ENTITLED “CONDUCT ON PUBLIC PROPERTY”

IN THE NEEDLES MUNICIPAL CODE

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEEDLES, SAN BERNARDINO COUNTY, STATE OF CALIFORNIA AS FOLLOWS:

SECTION 1. CEQA. Pursuant to Section 15060(c)(2) of the California CEQA Guidelines, adoption of the subject Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and therefore is not subject to CEQA. Additionally, pursuant to Section 15060(c)(3) the activity is not a “project” as defined in Section 15378 because it has no potential for resulting in physical change to the environment, directly or indirectly.

SECTION 2. Severability. The City Council hereby declares that if any provision, section, paragraph, sentence, or word of this Ordinance is rendered or declared to be invalid or unconstitutional by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, such invalidity shall not affect the other provisions, sections, paragraphs, sentences, or words of this Ordinance, and to this end the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance enforced.

SECTION 3. Prosecution of Prior Ordinances. Neither the adoption of this Ordinance nor the repeal of any other ordinance of this City shall in any manner affect the prosecution of any violation of any City ordinance or provision of the City of Needles Municipal Code, committed prior to the effective date hereof, nor be construed as a waiver of any penalty or the penal provisions applicable to any violation thereof.

SECTION 4. Chapter 18, Article 18-V. Conduct on Public Property. The City Council hereby amends Chapter 18, Article 18-V “Conduct on Public Property” of the City of Needles Municipal Code as set forth in Exhibit “A” attached hereto and incorporated herein by this reference.

SECTION 5. Publication. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published pursuant to state law within fifteen (15) days after its passage, and this Ordinance shall become effective thirty (30) days after its passage.

SECTION 6. Effective Date. This action shall become final and effective thirty (30) days after the adoption of this Ordinance by the City Council as provided by the Needles Code.

SECTION 7. Certification. The City Clerk shall certify the introduction and adoption of this Ordinance.

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 12th day of August 2025, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk

COUNCIL MEMBERS FORD, MCCORKLE, CAMPBELL, POGUE, BELT, LONGBRAKE NONE
NONE
NONE
Agenda Item 11.
2 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 9
th day of September 2025.

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
Janet Jernigan, Mayor
ATTEST: __________________________________
Candace Clark, City Clerk
Approved as to form:
_______________________________
Lena Wade, Deputy City Attorney
Agenda Item 11.
3 Attachment “A”
to Ordinance No. 677-AC
Article 18-V. Conduct on Public Property
18-42 Public Property Defined
For the purpose of this chapter, “public property” means any publicly owned property within the city, except the traveled portion of any public streets, and shall include but not be limited to any park, sidewalk, curb or any public right-of-way devoted to planting. (Ord. No. 387-AC) 18-43 Vandalism
It is unlawful for any person to willfully mark, deface, disfigure, injure, tamper with, displace or remove any railing, bench, or any facilities or property and equipment of any public utility, or parts of appurtenances thereof, signs, notices, placards, whether temporary or permanent, monuments, stakes, posts or other boundary markers, wall or rock border, or other structures or equipment, facilities or public property or appurtenances whatever, either real or personal. (Ord. No. 387-AC) 18-44 Structures--Tents--Ropes And Lines
It is unlawful for any person to construct or erect any building or structure of whatever kind, whether permanent of temporary in character, any tent, fly or windbreaker, or run or string any rope, cord or wire into, upon or across any public property, except on special permit issued pursuant to a city ordinance, resolution or regulation. (Ord. No. 387-AC)
18-45 Trees And Plants
It is unlawful for any person to, without a city permit, damage, cut, carve, burn, transplant or remove any tree or plant, or injure the bark or pick the flowers or seeds of any tree or plant, nor shall any person attach any pole, wire or other contrivance to any tree or plant. No person shall dig in or otherwise disturb or in any way injure or impair the natural beauty or usefulness of any park area. (Ord. No. 387-AC.) 18-46 Climbing Trees--Inappropriate Sitting Or Lying
It is unlawful for any person to climb any tree or walk, stand or sit upon monuments, vases, fountains, railings, fences, planted areas or upon any other property not designed or customarily used for such purposes, or to sit on any sidewalks or steps or to lie or sit on any lawns which are posted with a sign prohibiting this use on the lawn area. (Ord. No. 387-AC)
18-47 Sleeping--Disorderly Conduct
It is unlawful for a person to sleep on any public sidewalks, curbs, planters or walls, or to block pedestrian traffic on the sidewalk or other public walks, ways or footpaths devoted to pedestrian use. (Ord. No. 387-AC) 18-48 PROHIBITED TRESPASS
(a) It is unlawful for any person to enter or remain upon any posted public property during those hours prohibited by the signs posted thereon without the written permission of the owner, tenant, or occupant in the legal possession or control thereof.
(b) The signs shall be not less than one square foot in area and will have letters not less than two inches in height which shall read "Trespassing-Loitering Forbidden by City of Needles Municipal Code Article 18-V" followed by a designation of specific hours during which such trespassing and loitering are prohibited. These signs shall be posted at each entrance to the property and on at least two prominent places on the exterior boundaries of the property where they are clearly visible from outside of the property. 18-49 VIOLATIONS—PENALTY
Any person violating any of the provisions of this Article 18-V shall be guilty of a misdemeanor and shall upon conviction be punished by a fine not to exceed five hundred dollars ($500.00) or by imprisonment, not exceeding six months or by both such fine and imprisonment. Every separate violation of this Article shall be deemed a separate offense.

Agenda Item 11.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: Receive and file the Needles Short Range Transit Plan (SRTP) 2025-2030 Background: San Bernardino County Transportation Authority (SBCTA) requires each transit agency to prepare a Short-Range Transit Plan (SRTP), which is a multi-year operating and capital plan.

The SRTP provides information on the transit services provided, their performance, any needs and deficiencies, and a proposed plan for the operations and capital investments covering the next five years.

The City of Needles (City) SRTP is for Fiscal Year (FY) 2025/2026 to FY 2029/2030.

Summary of Existing Transit Services and Performance
The City operates the following public transportation services:

1. Needles Area Transit (NAT) is the primary local public transportation provider in the City. NAT operates one (1) deviated fixed route service on one-hour headways. The route includes two loops, both beginning and ending on G Street at Broadway. The first loop is the West Loop with stops at the Elks Lodge, Needles Regional Senior Center, Colorado River Medical Center, Needles Branch Library, and the Sheriff’s Department. The second loop is the North-South Loop with stops at Carl’s Jr. and Best Western Hotel. NAT runs Monday through Friday from 7:00 a.m. to 6:55 p.m. and on Saturday from 10:00 a.m. to 4:55 p.m.

2. Needles Dial-a-Ride (DAR), also known as the Senior Shuttle, provides curb-to-curb service for persons age 60 and over and for persons with a disability that limits mobility. Service is provided Monday through Friday beginning at 9:00 a.m. with final drop-off at 1:15 p.m. Trips are scheduled on a reservation basis with same-day trips scheduled after 9:00 a.m. Needles Dial-a-Ride provides trips within the city limits.

3. Needles Dial-a-Ride (DAR) Medical is a service provided twice a week on Tuesday and Thursday, available to the general public on a first-come, first-served basis strictly for medical appointments in the Bullhead City, Arizona area. Service is by advanced reservation and requires advance payment of fares. Prospective riders are asked to schedule medical appointments accordingly. The medical transportation service was discontinued as of June 30, 2025, being replaced with the new Fort Mohave/Bullhead Shuttle service.

4. Shopper Shuttle Pilot Program, a new service beginning July 10, 2019, is provided once a week on Wednesdays, departing the El Garces Intermodal Transportation Facility’s west parking lot at 8:15 a.m. The Shopper Shuttle stops at the Walmart Supercenter, Safeway, Smith’s, and CVS in Fort Mohave. The Shopper Shuttle returns to the City at approximately 12:30 p.m., dropping passengers at their residence. Passengers schedule a reservation up to 11:00 a.m. on the Tuesday prior. Round trip fare costs $9.00; however, trips were fully subsidized through December 2019 by donations as the City received a total of $1,475 in donations to offer pre-paid trips. This service, like the medical transportation service, was discontinued as of June 30, 2025, being replaced with the new Fort Mohave/Bullhead Shuttle service.

5. Fort Mohave/Bullhead Limited Shuttle (FMBS), a service recommendation in this SRTP, began operating on July 1, 2025, and provides, on a first-come first-served basis, two round trips on Tuesday and Thursday traveling within a one-mile radius of Highway 95 up to Silver Creek Road, Bullhead City. The service departs from the El Garces Intermodal Transportation Facility at 8:15 a.m. and again at 11:30 a.m. returning at approximately 11:15 a.m. and 2:20 p.m., respectively, dropping passengers at their residence. Prepaid advance reservation is required no later than 11:00 a.m. the day prior to taking a trip with roundtrip fare for destinations in Fort Mohave (Zone 1) of $9.00 and Bullhead City (Zone 2) of $12.00.

Agenda Item 12.

Summary of Proposed Transit Services
The City does not generate enough Local Transportation Funds (LTF) to cover its operating expenses.

Through the SRTP and allocation process, the SBCTA Board of Directors approves supplementing the City’s operations with State Transit Assistance (STA) funds. This funding comes from the mountain/desert population share, which does not affect other operator allocations as it is a small amount dispersed over a five-year period. Additionally, SBCTA allocates other funding, such as Measure I Senior and Disabled, Federal Transit Administration (FTA) Section 5311, and State of Good Repair, to assist with any shortfalls.

There are four financially constrained recommendations for the City of Needles Transit Services:

1. Bus Stop Improvements – NAT has 33 bus stops for its Deviated Fixed Route services. Due to extreme weather, this SRTP recommends improving bus stops to include a shelter, bench, and trash receptacle. The goal is to improve all 33 bus stops within the NAT service routes.

2. New Garage and EV Infrastructure – Construct a new garage shell for DAR Vehicles; as well as install EV infrastructures in all garages to accommodate future Zero-Emission Vehicles.

3. Vehicle Replacement Plan – Replace aging vehicles and begin introduction of the first Zero Emission vehicle to the City of Needles Transit Services.

4. Fare Pass Technology - Implement technology to allow app-based fare payment. This will allow riders more flexibility to purchase tickets immediately or for future use.

Fiscal Impact: SBCTA provides annual funding for transit operations including all capital expenditures
Environmental Impact: N/A
Recommended Action: Receive and file the Needles Short Range Transit Plan (SRTP) 2025-2030 Submitted By: Cheryl Sallis, Community Services Manager City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 12.

Agenda Item 12.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: Accept 2025 Employee Benefits plan for Medical, Dental and Vision Background: The City of Needles overall renewal plan for Medical, Dental & Vision coverage for 2026 calendar year, has been received from Alliant and Special Districts Risk Management Association. VSP (vision) & Delta (dental) no change in pricing.

California Blue Shield through SDRMA has an increase of 13.8%. The City and the 2 bargaining units mutually agreed to share equally (50%) of any increase. to health, dental & vision insurance premiums commencing on or after July 1, 2013.

Fiscal Impact: Vision no increase for employee's price ranges from $130.68 - $339.84 annually depending on the coverage level (employee, employee+ 1, or employee + family). Dental with Delta no price increase, price ranges from $403.20 - $1056.00 annually depending on the coverage level (employee only or employee+ family. Medical Blue Cross CA Gold increased price ranges $15,165.72 - $39,267.72 annually depending on the coverage level. Medical Blue Cross CA Silver increased price ranges $10,963.32 - $28,217.88 annually depending on coverage level (employee, employee+ 1 or Family). The shared City portion of the cost increase was anticipated and fundable within the existing budget.

Recommendation: Approve 2026 employee benefits plan for Medical, Dental and Vision.

Submitted By: Pam Osteen, HR Analyst
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 13.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: September 9, 2025
Title: City Council Resolution 2025-37 of the City Council of the City of Needles Approving a Lease Extension with Tri-State Alano Club for the Building at 801 Third Street Until September 9, 2026
Background: The Tri-State Alano Club, an organization dedicated to community service, has leased the City-owned building at 801 Third Street since 1991 to conduct Club business and hold meetings.

The City of Needles continues to expand services for residents, creating an ongoing demand for additional office space. While the City has reviewed the possibility of expanding City Hall facilities, the costs were determined to be significant.

The most recent lease extension, approved under Resolution 2024-40, extended the term until September 10, 2025, with a provision allowing either party to terminate the lease with sixty (60) days’ written notice. The City and the Tri-State Alano Club now wish to further extend the lease term until September 9, 2026, subject to the same 60-day termination clause.

Fiscal Impact: $1/Year for the lease.

Recommendation: Adopt Resolution 2025-37 Approving the lease extension with the Tri-State Alano Club for the building at 801 Third Street until September 9, 2026, under the same terms and conditions.

Submitted By: Patrick Martinez, City Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 14.

RESOLUTION NO. 2025-37

A RESOLUTION OF THE CITY OF NEEDLES, CALIFORNIA,

APPROVING A LEASE EXTENSION WITH TRI-STATE ALANO CLUB
FOR THE BUILDING AT 801 THIRD STREET
WHEREAS, Tri-State Alano Club, an organization dedicated to community service, has been leasing the city-owned building at 801 Third Street since 1991 to conduct Club business and hold Club meetings; and
WHEREAS, the existing lease agreement has, by its terms, expired and the parties wish to extend its term to provide for expiration on September 9, 2026; and, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Needles, California hereby approves a Lease Extension with Tri-State Alano Club for the lease of the building at 801 Third Street for an additional one-year period and authorizes the Mayor to sign said Lease Extension for and on behalf of the City of Needles.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 9th day of September 2025 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
APPROVED AS TO FORM:

Lena Wade, Deputy City Attorney
Agenda Item 14.

Page 1 of 2 ends

AMENDMENT TO LEASE AGREEMENT
THIS AMENDMENT TO LEASE AGREEMENT (“Amendment”) is entered into as of the 9 th day of
September 2025, by and between the CITY OF NEEDLES, a Charter City and Municipal Corporation, hereinafter called “Lessor”, and the TRI-STATE ALANO CLUB OF NEEDLES, INC., a California nonprofit public benefit corporation, hereinafter called “Lessee”.

RECITALS
A. Lessor and Lessee entered into that certain “LEASE AGREEMENT” (“Lease”) dated July 11, 2017, whereby Lessee leases from the Lessor the premises located at 801 Third Street, Needles (a concrete block building with 25-five (25) foot frontage on Third Street. Sixty (60) feet in depth, for a total of fifteen hundred (1500) square feet building area) (the “Premises”) to be used for business and meetings of the Tri-State Alano Club of Needles, Inc. and no other purposes.

B. The Lessor and Lessee subsequently extended the term of the Lease pursuant to the AMENDMENT TO LEASE AGREEMENT dated June 13, 2023 (“Amendment” and together with the Lease, the “Lease”), to provide for a termination date of November 12, 2022.

C. The Lessor and Lessee have continued to recognize the validity of the Lease since November 12, 2022.

D. The Lessor and Lessee subsequently entered into that certain AMENDMENT TO LEASE AGREEMENT dated June 13, 2023 (the “Amendment” and together with the Lease, hereafter the “Lease”), to further extend the term of the Lease until July 1, 2024.

E. The Lessor and Lessee subsequently entered into that certain AMENDEMENT TO LEASE AGREEMENT dated September 10, 2024 (“Amendment” and together with the Lease, the “Lease”), which extended the term of the Lease until September 10, 2025, and added that either party may terminate the Lease with sixty (60) days written notice to vacate.

F. The Lessor and Lesse now wish to further extend the term of the Lease until September 9, 2026, subject to the right of either party to terminate the Lease under a sixty (60) day notice to vacate.

NOW THEREFORE, for and in consideration of the mutual promises, terms, covenants, conditions and Recitals contained herein, which Recitals are incorporated herein by reference, Lessor and Lessee hereby agree to amend Section 3 of the Lease as follows:
“Term. The term of this lease shall continue until the 9 th day of September 2026. (“Term”). Notwithstanding
the forgoing, either party may give the other party sixty (60) days written notice of intent to vacate or the need to have the other vacate the Premises, in which case this lease will terminate at the expiration of said sixty (60) days.

To the extent of a conflict between this Amendment and the Lease, this Amendment shall control. [SIGNATURES ON FOLLOWING PAGE]
Agenda Item 14.

Page 2 of 2 ends

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed, as of the date set forth above.

City of Needles
By: ________________________________
Its: ________________________________
Date: ______________________________
TRI-STATE ALANO CLUB OF NEEDLES, INC., a California nonprofit public benefit corporation By: ________________________________
Date: ______________________________
ATTEST:

By: ________________________________
Its: City Clerk
Date: ______________________________
APPROVED AS TO FORM:
__________________________________
Lena Wade, Deputy City Attorney
Agenda Item 14.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: September 9, 2025
Title: Golf Course Annual Seed Purchase
Background: Rivers Edge Golf Course must be overseeded annually to prepare for the winter season and ensure high-quality turf conditions for residents, visitors, and tournaments.

Overseeding is an essential maintenance practice that protects course playability and supports the City Council’s goals of enhancing recreational amenities and tourism.

For 2025, the City received a single bid from Simplot Turf & Horticulture (Las Vegas, NV).

The order includes:
• 10,000 lbs. VIP III PRG 25 (50 lb bags) – $12,100.00
• 3,000 lbs. POA Trivialis 25 VNS (50 lb bags) – $14,550.00 • Sales Tax – $2,065.38
Fiscal Impact: The total cost is $28,715.38, which will be funded from the budgeted “Seed” account.

Recommendation: Approve the annual overseeding seed purchase from Simplot Turf & Horticulture in the amount of $28,716 for the Rivers Edge Golf Course.

Submitted By: JJ Deleon, Director of Golf Rivers Edge Golf Course City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 15.

NOTICE INVITING BIDS

TURF TYPE PERENNIAL RYEGRASS SEED
NOTICE IS HEREBY GIVEN that the City of Needles invites sealed bids for the purchase and delivery of Turf Type Perennial Ryegrass Seed. Bids will be received until 1:00 p.m. PDT on Friday, September 5th, 2025 at the office of the City Clerk, 817 Third Street, Needles, California 92363, at which time they will be publicly opened and read aloud. Each sealed bid shall be clearly marked on the outside envelope "SEALED BID - RYEGRASS SEED".

The seeds to be bid are:
1) Up to 10,000 pounds of triple-blend turf type perennial ryegrass seed; or similar blend available due to supply and demand.
2) Up to 3,000 pounds of poa trivialis, greens grade.

The specifications of the seed are:

PURITY: Not less than 98.5% pure
GERMINATION: Not less than 90%
TRIPLE-BLEND: A blend of three (3) perennial ryegrass seeds which have been successfully grown on golf courses in climates similar to that in Needles
CROP: Seeds from 2025 crop preferred
INERT MATERIAL: Not more than 1.5%
WEED SEED: Not more than one tenth of one percent (0.1%) Bidders are to bid the two quantities of seed separately. Do not combine the two items. Bid total shall be for product delivered to the Needles Municipal Golf Course Maintenance Yard, shrinkwrapped and on pallets, and shall include 7.75% sales tax.

The City of Needles reserves the right to waive any irregularity in a bid, and make the award of bid in any manner deemed most advantageous to the City.

Bids shall remain open and valid and subject to acceptance for thirty (30) days after the bid opening unless otherwise stipulated.

Any manufacturers' names, trade names, or brand names used in this Notice are for the purpose of describing and establishing general quality levels, and are not intended to be restrictive. Bids will be considered for any brand which meets or exceeds the quality of brand names referenced.

Such bids shall state brand names and include specifications. The City of Needles will be the sole judge as to whether an item is approved "equal" or "equivalent" where "equal" or "equivalent" is indicated.

Delivery shall be made on an open flatbed trailer and shall be to the Rivers Edge Golf Course Maintenance Yard, River Road near Marina Drive, in Needles, California, no later than September 10th, 2025. The General Manager shall be notified of exact delivery date and approximate time at least twenty four (24) hours in advance of delivery. Notice shall be given by telephone at (760) 220-2268.

Information or questions pertaining to this invitation should be directed to JJ DeLeon, General Manager, 144 Marina Drive, Needles, CA 92363 or telephone (760) 220-2268.

PUBLISH: Needles Desert Star August 6th, 2025
Agenda Item 15.

Simplot Turf & Horticulture Las Vegas NV
Sales Order 210016754 3555 W Reno Ave Ste K
Not Processed Offered Las Vegas, NV 89118-1609
702-649-1551 Fax: 702-649-9273 Order Date 7/22/2025
Est. Delivery Date 08/28/2025
Bill To: CITY OF NEEDLES Offer Expires
ACCOUNTS PAYABLE Customer ID 97159
817 THIRD ST Customer PO#
NEEDLES, CA 92363 Salesperson JironD
Shipping Via.

Field Name
Description
Ticket Type Deliver
Comments:

Quantity Description Unit Price Total $ % Your Share
10,000.00 Lbs VIP III PRG 25 [50LB] 1.2100 / Lbs 12,100.00 100.0000 12,100.00 3,000.00 Lbs POA TRIVIALIS 25 VNS [50LB] 4.8500 / Lbs 14,550.00 100.0000 14,550.00 2,065.38 Each ESTIMATED SALES TAX [EA] 1.0000 / Each 2,065.38 100.0000 2,065.38 Subtotal 28,715.38
Amount Due 28,715.38
If Paid By Discount Deduct Pay Only
Customer: Sales Person:

Purchase Terms:

Sales Order 210016754

Page 1 ends

Agenda Item 15.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: Authorize the purchase from SPS VAR for one (1) Power10 AS400/Naviline Server not to exceed $62,000, utilizing the adopted FY26 General Fund Budget

Background: The City of Needles utilizes a main server for the AS400/Naviline finance software for billing, accounts payable, purchase orders, inventory management, business licenses, and more. The current server was purchased in 2021, and IBM is no longer maintaining it due to its age because it is at the end of its service package. To have IBM serve and maintain the server, a new server is needed.

SPS VAR is a sole source vendor through IBM to purchase this type of equipment.

Fiscal Impact: The adopted FY 26 General Fund Budget for the Internal Services – Management Information Systems fund included $78,000 for computer & software expenditures. The cost for the new server is $56,375, not including sales tax and shipping. The total cost of $62,000 will be funded by the adopted FY 26 budget.

Environmental Impact: None
Recommended Action: Authorize the purchase from SPS VAR for one (1) Power10 AS400/Naviline Server not to exceed $62,000, utilizing the adopted FY26 General Fund Budget Submitted By: Kimberly Krasinski, Office Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 16.

Agenda Item 16.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: Resolution No. 2025-33, approving the Measure I Five Year Local Street Capital Improvement for Fiscal Years 2025/2026 - 2029/2030
Background: San Bernardino County Transportation Authority (SBCTA) is responsible for administering the San Bernardino Measure I Program from which the City of Needles receives funds for transportation projects.

SBCTA requires local jurisdictions to complete an annual update of the five-year program, identifying the projects to be funded in the upcoming fiscal years.

Attachment A to the Resolution is the CIP List for Fiscal Years 2025/2026 - 2029/2030, identifying the progress which will be funded by the Local Pass-Through program.

Fiscal Impact: Project budgets will be established as each individual project moves forward, providing full funding detail. The Measure I Local Pass-Through Program (Exhibit A to the Resolution) funds are received monthly and will fund the projects listed on the Local Street Program.

Recommendation: Adopt Resolution No. 2025-33 of the City Council of the City of Needles, California approving the Measure I Five Year Local Street Capital Improvement for Fiscal Years 2025/2026 - 2029/2030.

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

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 17.

RESOLUTION NO. 2025-33

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA,

ADOPTING THE MEASURE I FIVE-YEAR CAPITAL IMPROVEMENT PLAN FOR FY2025/2026 THROUGH FY2029/2030
WHEREAS, San Bernardino County voters approved passage of Measure I in November 2004, authorizing the San Bernardino County Transportation Authority to impose a onehalf of one percent retail transactions and use tax applicable in the incorporated and unincorporated territory of the County of San Bernardino; and
WHEREAS, revenue from the tax can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plans set forth in Ordinance No. 04-01 of the Authority; and
WHEREAS, the Strategic Plan requires each local jurisdiction applying for revenue from the Local Street Program to annually adopt and update a Five-Year Capital Improvement Plan; and WHEREAS, California Public Utilities Code 190300 and Ordinance No. 04-01 require each local jurisdiction to maintain General Fund expenditures for transportation-related construction and maintenance activities at the required Maintenance of Effort base year level in each fiscal year of the adopted Five-Year Capital Improvement Plan, which for the City of Needles is $426,582; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Needles, California, that the Measure I Five-Year Capital Improvement Plan, attached to this resolution as Exhibit A, is hereby adopted.

PASSED AND ADOPTED at a meeting of the City Council of the City of Needles, California held on the 9
th day of September 2025 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
APPROVED AS TO FORM:

Lena Wade, Deputy City Attorney
Agenda Item 17.

Resolution Number:

Resolution Approval Date:

Contact Person/Title:

Phone:

Email:
6/30/25 Carryover Balance $901,222.00
FY2025/26 Est. Revenue FY2026/27 Est. Revenue FY2027/28 Est. Revenue FY2028/29 Est. Revenue FY2029/30 Est. Revenue Total Est. Rev. $184,112 $189,185 $194,472 $199,973 $205,688 $973,429
Projects:

City-Wide Pavement Management Program No 0.0% 0.0% $2,000,000 $900,000 $300,000 $300,000 $300,000 $300,000 $2,100,000

0.0% 0.0% $0 $0 $0 $0 $0 $0 $0

0.0% 0.0% $0 $0 $0 $0 $0 $0 $0
$900,000 $300,000 $300,000 $300,000 $300,000 $2,100,000 Total Programming is currently 112% Total Estimated Programming: $2,100,000 Is Project in
City's
Non-motorized
Transportation
Plan?
(Yes/No)
Does Project
have an ATP
Component?
(Yes/No)
Is the Project on the City's
Nexus Study List?
(Public/DIF Share %)
Estimated Total
Project Cost
[email protected]
Projects Total:

Needles
Current
Estimate
Current
Estimate Total CurrentEstimate
Current
Estimate
Current
Estimate
(Must not exceed 150% of Carryover Balance +
Total Estimated Revenue)
2025-33 Jurisdiction:
9/9/2025
Kathy Raasch, Project Manager
760-326-5700 x126
Measure I Local Pass-through Program

FIVE YEAR CAPITAL IMPROVEMENT PLAN
Fiscal Years 2025/2026 thru 2029/2030

Page 1 of 3 ends

ATTACHMENT C
Population Revenue
Generation REV FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 Needles 68.86% 74.03% $ 220,263 $ 184,112 $ 189,185 $ 194,472 $ 199,973 $ 205,688 $ 973,429 County/Colorado River 31.14% 25.97% $ 88,037 $ 73,588 $ 75,615 $ 77,728 $ 79,927 $ 82,212 $ 389,071 Colorado River Subarea 100.00% 100.00% $ 308,300 $ 257,700 $ 264,800 $ 272,200 $ 279,900 $ 287,900 $ 1,362,500 Twentynine Palms 35.50% 21.47% $ 593,170 $ 529,702 $ 544,401 $ 559,641 $ 575,451 $ 591,945 $ 2,801,141 Yucca Valley 30.24% 66.73% $ 1,009,649 $ 901,620 $ 926,639 $ 952,580 $ 979,490 $ 1,007,564 $ 4,767,894 County/Morongo Basin 34.26% 11.80% $ 479,481 $ 428,178 $ 440,059 $ 452,379 $ 465,158 $ 478,491 $ 2,264,265 Morongo Basin Subarea 100.00% 100.00% $ 2,082,300 $ 1,859,500 $ 1,911,100 $ 1,964,600 $ 2,020,100 $ 2,078,000 $ 9,833,300 Barstow 42.63% 73.31% $ 2,049,144 $ 1,759,357 $ 1,808,225 $ 1,858,832 $ 1,911,410 $ 1,966,248 $ 9,304,072 County/North Desert 57.37% 26.69% $ 1,485,756 $ 1,275,643 $ 1,311,075 $ 1,347,768 $ 1,385,890 $ 1,425,652 $ 6,746,028 North Desert Subarea 100.00% 100.00% $ 3,534,900 $ 3,035,000 $ 3,119,300 $ 3,206,600 $ 3,297,300 $ 3,391,900 $ 16,050,100 Big Bear Lake 9.98% 36.99% $ 429,182 $ 505,112 $ 519,133 $ 533,647 $ 548,749 $ 564,484 $ 2,671,126 County/Mountains 90.02% 63.01% $ 1,398,218 $ 1,645,588 $ 1,691,267 $ 1,738,553 $ 1,787,751 $ 1,839,016 $ 8,702,174 Mountains Subarea 100.00% 100.00% $ 1,827,400 $ 2,150,700 $ 2,210,400 $ 2,272,200 $ 2,336,500 $ 2,403,500 $ 11,373,300 Adelanto 8.63% 4.87% $ 1,131,869 $ 1,031,970 $ 1,060,656 $ 1,090,349 $ 1,121,203 $ 1,153,382 $ 5,457,559 Apple Valley 17.76% 14.90% $ 2,736,973 $ 2,495,408 $ 2,564,774 $ 2,636,574 $ 2,711,183 $ 2,788,994 $ 13,196,933 Hesperia 23.92% 23.91% $ 4,007,461 $ 3,653,762 $ 3,755,328 $ 3,860,457 $ 3,969,700 $ 4,083,629 $ 19,322,877 Victorville 33.03% 50.54% $ 7,002,205 $ 6,384,191 $ 6,561,656 $ 6,745,347 $ 6,936,225 $ 7,135,294 $ 33,762,712 County/Victor Valley 16.66% 5.77% $ 1,878,792 $ 1,712,970 $ 1,760,586 $ 1,809,873 $ 1,861,088 $ 1,914,501 $ 9,059,018 Victor Valley Subarea 100.00% 100.00% $ 16,757,300 $ 15,278,300 $ 15,703,000 $ 16,142,600 $ 16,599,400 $ 17,075,800 $ 80,799,100 Total Mt Desert Region $ 24,510,200 $ 22,581,200 $ 23,208,600 $ 23,858,200 $ 24,533,200 $ 25,237,100 $ 119,418,300 Measure I Local Pass-through Program
REVENUE ESTIMATES FOR FY2024/2025 thru FY2029/2030
Mountain/Desert Subareas
Total FY25/26
through FY29/30

MOUNTAIN/DESERT

SUBAREA
Estimated Annual Local Pass-Through Amount* Distribution Percentage (50% Population & 50% Revenue Generation)
Agenda Item 17.

ATTACHMENT F

CITY OF NEEDLES

MEASURE I CAPITAL IMPROVEMENT PLAN

EXPENDITURE STRATEGY
Fiscal Year 2025/2026 thru 2029/2030
The City of Needles currently has a carryover balance of $901,222 in the Measure I Local Street fund and anticipates $189,185 in new revenue for FY25/26. The City plans to utilize these funds in FY 25/26 for the Phase V Street Improvements Project of the City Current Pavement Management Program to pave approximately seven (7) streets, estimated at $2,000,000 ($900,000 Measure I Funds and remaining $1,100,000 to be other funds). Measure I Funds for future years FY 26/27, FY27/28, FY28/29 and FY 29/30 will be expended on the current year Pavement Management Program.

Agenda Item 17.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: Adopt a resolution approving a Memorandum of Understanding between the City of Needles and the Classified and Unclassified Units for a three-year term, effective July 1, 2025 through June 30, 2028.

Background: The term of the current Memorandum of Understanding (MOU) between the City and the Classified and Unclassified Units, represented by Teamsters Local 1932, expired on June 30, 2025. The City’s negotiating team and the Teamsters negotiation teams have been meeting and conferring in good faith since April of this year. The parties reached a tentative agreement on August 13, 2025, and both Teamster unit memberships ratified the agreement on August 14, 2025.

Fiscal Impact: The compensation in the MOU agreements provide for a 3% wage increase on July 1, 2025, a 2.5% increase on July 1, 2026 and, in the final year of the agreements, a 2.5% increase on July 1, 2027. In fiscal year 2026, the cost of the Classified Unit MOU is $142,450 and the cost for the Unclassified Unit MOU is $72,141. The total cost of both agreements is $214,591. Reserves in the various funds are sufficient to cover the cost impacts of both MOU.

Recommended Action: That Council:

1. Move to adopt the Memorandum of Understanding between the City of Needles and the Teamsters Local 1932 for the Classified and Unclassified Units under a three-year term, effective July 1, 2025 through June 30, 2028; and,

2. Appropriate $214,591 from reserves to the various city funds for the cost impact of the Classified and Unclassified Units MOUs.

Submitted By: Pam Osteen, Human Resource Analyst
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 18.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: 175th Anniversary of California Statehood Proclamation Background: In recognition of California’s admission as the 31st state of the United States on September 9, 1850, Mayor Jernigan will present a proclamation commemorating the 175th anniversary of statehood, honoring California’s historic place in the Union and celebrating its enduring contributions in innovation, culture, and economic development.

Fiscal Impact: N/A
Recommendation: Information Only
Submitted By: Mayor Janet Jernigan
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 19.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: September 9, 2025
Title: Resolution 2025-38 of the City Council of the City of Needles Approving the OffHighway Motor Vehicle (OHMV) Master Plan and Pilot Project Background: On August 26, 2022, Assembly Bill (AB) 2152 was approved, authorizing the City of Needles to establish a pilot project to designate combined-use highways within city limits. The intent of the legislation is to create connections between existing Bureau of Land Management (BLM) off-highway vehicle trails, recreational use areas, and necessary service and lodging facilities, while preserving traffic safety, reducing private land trespass, and minimizing impacts on residents.

On March 12, 2024, the City Council appointed an Ad-Hoc Committee to research implementation of the pilot project. The Committee engaged stakeholders, including law enforcement and BLM representatives, and directed staff to develop a comprehensive plan.

Following this effort, the City contracted with Minagar & Associates, Inc. to conduct technical studies of roadway conditions, safety requirements, and connectivity options. The resulting Final OHMV Master Plan and Routes – Pilot Project Technical Memorandum (July 21, 2025) identifies 9.20 miles of proposed OHMV routes throughout the city, connecting local roads with BLM trailheads, lodging facilities, and service areas.

The proposed plan ensures compliance with California Vehicle Code §38026.2, which authorizes Needles’ pilot program and requires:
• Routes not exceeding 10 miles.
• OHMV speed limits restricted to 35 mph.
• Compliance with driver licensing, helmet usage, and insurance requirements. • Approval by the City Council following public review.

The plan also includes:
• Route signage and traffic control devices (CA MUTCD compliant). • Public education and outreach, including maps, FAQs, and community meetings. • Coordination with law enforcement for enforcement and safety oversight.

Additionally, two potential staging areas are identified at Park Drive & River Road and Clary Drive & Lillyhill Drive, providing centralized access points for residents and visitors.

Fiscal Impact: Implementation will require funding for signage, staging areas, and public outreach, with costs eligible for grants through the Off-Highway Vehicle Trust Fund and other sources. The program is also expected to boost tourism by attracting OHMV enthusiasts, generating visitor spending at local businesses and increasing City revenues through sales tax, lodging tax, and related economic activity.

Environmental Impact: The pilot program is subject to ongoing monitoring and reporting requirements established under AB 2152 and Vehicle Code §38026.2, including coordination with the California Highway Patrol, Department of Transportation, and Department of Parks and Recreation. Impacts to air quality, noise, and adjacent lands will be evaluated in the City’s 2027 legislative report Recommendation: Approve Resolution 2025-38 Approving the Off-Highway Motor Vehicle Master Plan and Pilot Project as outlined in the Technical Memorandum. Direct staff to proceed with implementation, including signage, public education, and coordination with law enforcement. Authorize staff to pursue state and regional funding opportunities to support the program.

Submitted By: Patrick Martinez, City Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 20.

RESOLUTION NO. 2025-38

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA,

APPROVING THE OFF-HIGHWAY MOTOR VEHICLE (OHMV)

MASTER PLAN AND PILOT PROJECT
WHEREAS, the California Legislature adopted Assembly Bill 2152 authorizing the City of Needles to establish a pilot project for combined-use highways to link Bureau of Land Management (BLM) offhighway vehicle trails, recreational use areas, and necessary service and lodging facilities; and WHEREAS, on March 12, 2024, the City Council appointed an Ad-Hoc Committee to study implementation of the OHMV pilot project, engage stakeholders, and provide recommendations for a citywide route network; and
WHEREAS, the City contracted with Minagar & Associates, Inc. to conduct technical analysis of roadway characteristics, safety requirements, and connectivity options, resulting in the Final OHMV Master Plan and Routes – Pilot Project Technical Memorandum (July 21, 2025) identifying 9.20 miles of proposed routes within the City; and
WHEREAS, the proposed OHMV routes and staging areas comply with California Vehicle Code §38026.2, including speed limits not to exceed 35 miles per hour, driver licensing and insurance requirements, and necessary signage and traffic control devices; and WHEREAS, implementation of the OHMV Master Plan will promote public safety, expand recreational access, reduce trespass on private property, and provide economic benefits by attracting tourism, supporting local businesses, and generating additional revenues through sales and lodging taxes; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Needles hereby:

1. Approves the Off-Highway Motor Vehicle Master Plan and Pilot Project as outlined in the Technical Memorandum (July 2025).

2. Authorizes staff to proceed with implementation, including installation of signage, development of staging areas, public education and outreach, and coordination with law enforcement.

3. Directs staff to pursue grant opportunities through the Off-Highway Vehicle Trust Fund and other available sources to offset program costs.

4. Finds that adoption of the OHMV Master Plan aligns with City Council goals of enhancing tourism, improving recreational amenities, and supporting the City’s economic development strategy.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 9
th day of September 2025 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
APPROVED AS TO FORM:

Lena Wade, Deputy City Attorney
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
Figure 2: Proposed Allowable Off-Highway Motor Vehicle (OHMV) Routes Within the City of Needles & Connection to BLM Interface Point

CITY CONNECTION
POINTS
Not Exceeding 35 MPH
Agenda Item 20.

July 21, 2025

Needles Off-Highway Motor Vehicles (OHMV)
Master Plan and Routes – Pilot Project
Final Technical Memorandum
City of Needles, CA
PREPARED FOR:

CITY OF NEEDLES
City Manager’s Office
817 Third Street
Needles, CA 92363
Proposed Allowable OHMV Routes Within the City of
Needles & Connection to BLM Interface Points
City of Needles Terrain Map City of Needles City Map
City of Needles Roadway Network Map City of Needles Speed Zone Map U.S. DEPARTMENT OF THE INTERIOR
Colorado River District – Lake Havasu Field Office
1785 Kiowa Ave
Lake Havasu, AZ 86403
IN ASSOCIATION WITH:

U.S. DEPARTMENT OF THE INTERIOR
California Desert District – Needles Field Office
1303 US-95
Needles, CA 92363
PREPARED BY:

MINAGAR & ASSOCIATES, INC.

ITS – Traffic/Civil/Electrical Engineering – Transportation Planning – Homeland Security – CEM 23282 Mill Creek Drive, East Tower, Suite 120
Laguna Hills, CA 92653

CITY CONNECTION
POINTS
Not Exceeding 35 MPH
Agenda Item 20.

MINAGAR & ASSOCIATES, INC.

Traffic/Civil/Electrical Engineering – ITS – Transportation Planning & CEM 2 July 21, 2025
Mr. Patrick Martinez
City Manager
City of Needles
817 Third Street
Needles, CA 92363
Re: Final Off-Highway Motor Vehicle (OHMV) Master Plan & Routes Technical Memo Per the New California Vehicle Code Section 38026.2 – Pilot Project Dear Mr. Martinez,
Minagar & Associates, Inc. has completed the investigation of roadway characteristics of the City’s proposed Off-Highway Motor Vehicle routes, including factors such as the presence of street lighting, number of lanes, and presence of curvatures or other special conditions, receiving and incorporating the public and stakeholders (e.g., BLM and law enforcement) inputs and subsequently finalized on a total of 9.20 miles of roadway to be proposed Off-Highway Motor Vehicle (OHMV) routes subject to the final approval of the stakeholders and ultimately the City Council of Needles.

It should be noted that California Vehicle Code – § 38026.2 (created for the City of Needles); (a) “the City of Needles may establish a pilot project to designate combined-use highways on roads in the city for no more than 10 miles…”
(b) 5 does stipulate and prohibit off-highway motor vehicles from traveling faster than 35 miles per hour on highways and roadways designated under this section.

In the following pages, please find the summary tables of Minagar’s findings regarding the characteristics and conditions of the proposed OHMV routes, accompanied by additional justifications, information, and supporting materials and figures. A table of contents has been provided on the following page for convenience in locating and referencing the tables and figures.

Subsequent to the City Council approval of the proposed master plan, an implementation plan comprised of street signage, traffic control devices, public education & outreach as well as insurance/vehicle registration and decal requirements shall be followed.

Please feel free to contact me directly with any additional questions you might have at (949) 707- 1199 ext. 2# or via e-mail at [email protected].

Sincerely,
MINAGAR & ASSOCIATES, INC.
(A California Corporation)
Fred Minagar, MS, RCE, PE, FITE
President/Senior Project Manager
CC: Kathy Raasch
Agenda Item 20.

MINAGAR & ASSOCIATES, INC.

Traffic/Civil/Electrical Engineering – ITS – Transportation Planning & CEM 3 LIST OF FIGURES, TABLES & ATTACHMENTS
Figure 1: City of Needles Street Map .................................................................................... 4 Figure 2: Proposed Allowable Off-Highway Motor Vehicle (OHMV) Routes Within the City of Needles & Connection to BLM Interface Point .............................................. 5 Table 1: Proposed Allowable OHMV Routes Roadway Characteristics Summary .. 6 Table 2: Additional Justification & Details of Proposed Segment ............................... 7 Figure 3: Locations of Existing Lodging Facilities within the City of Needles ......... 8 Figure 4: Existing Lodging Facilities in the Vicinity of Proposed OHMV Routes..... 9 Figure 5: Existing East Mojave Heritage Trail (EHMT) Offroad Trails in the Vicinity of Proposed OHMV Routes ................................................................................................... 10 Appendix A: Public Education & Public Outreach .......................................................... 12 Appendix B: California Vehicle Code - § 38025 ............................................................... 14 Appendix C: California Vehicle Code - § 38026 & § 38026.2 ........................................ 16 Appendix D: Suggested OHMV Route Signage Table .................................................... 20 Appendix E: California Vehicle Code - § 16020 ............................................................... 22 Appendix F: California Vehicle Code - § 38010, § 38020, § 38088 & § 38170 ........... 24 Appendix G: California Vehicle Code - § 12500 & § 38503 ........................................... 27 Appendix H: City of Needles Existing Posted Speed Limits (2022 Citywide Engineering & Traffic Survey) .............................................................................................. 29 Appendix I: City of Needles OHMV Access, Local Roads, and Short-Term Lodging ....................................................................................................................................................... 31 Appendix J: Potential OHMV Trail Staging Areas in Needles ...................................... 34

Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
4 Figure 1: City of Needles Street Map
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
5 Figure 2: Proposed Allowable Off-Highway Motor Vehicle (OHMV) Routes Within the City of Needles & Connection to BLM Interface Point

CITY CONNECTION
POINTS
Not Exceeding 35 MPH
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
6 Table 1: Proposed Allowable OHMV Routes Roadway Characteristics Summary Street Name From To Distance (mi) Posted Speed Limit Sign Designated Bike Lane Street Lighting Sight Distance Other Roadway Characteristics Eagle Pass
Rd*
Slightly
Past El
Monte Dr.

S L St 1.88* None No None Good
- 1 Lane in each direction, Unpaved
- No clear roadway markings/striping or shoulder
- Topography: Flat
- Adjacent Infrastructure: Little to none
J St Parkway
St.

U.S. Rte
66/ W.

Broadway

1.00 35
MPH No Yes Good
- 1 Lane in each direction
- Partial striping, sidewalks, and shoulder east of Balboa St - Clear striping, sidewalks, and shoulder west of Balboa St - Presence of driveways
- Topography: Flat
- Adjacent Infrastructure: residential, civic & institutional, park Lillyhill Dr Parkway
St. Cibola St 1.5 30 MPH No Yes Good
- Partial striping and sidewalks, no shoulder
- Wider roadway with on-street parking on both sides of the road between Bailey Ave and Clary Dr
- Presence of driveways
- Topography: moderate horizontal curves, occasional
vertical dips
- Adjacent Infrastructure: residential on Lillyhill
Clary Dr
Clary Dr*
Lillyhill Dr.

San
Clemente
San
Clemente
St.

0.30 0.19*
None
(within
these
limits)
No Partial Good
- 1 Lane in each direction
- No clear striping, shoulder or sidewalks
- Presence of a few driveways
- Topography: flat, moderate horizontal curves
- Adjacent Infrastructure: sparse residential & vacant lands Columbus Dr. Pashard
St.

Columbus
Dr. (End
Pavement)

0.13 None No None Good
- 1 Lane in each direction
- No clear roadway markings/striping or shoulder
- Topography: Flat
- Adjacent Infrastructure: Commercial
Bridge/ River
Rd N. K St. Jack Smith Park 1.67
25 &
25 MPH
No Partial Fair -
Poor
- 1 Lane in each direction
- No Sidewalk/Shoulder
- Topography: Mostly flat with occasional dip
N. & S. K St. Front St. Needles
Bridge 0.69 30 MPH No Yes Good
- Mostly 1 Lane in each direction
- One to two sidewalks
- Presence of Driveways & Businesses
- Traverses under a 3-RR X-ing
- Presence of two Traffic Signals along the way
Needles Hwy N. K St. WB I-40
Ramps 1.26 30 MPH No Partial Good
- Generally 1-2 Lanes in each direction
- With sidewalks on both sides
- Presence of two Traffic Signals along the way
- Mixed Land uses along the way
Parkway St. Lillyhill Dr. J St. 0.53
None
(within
these
limits)
No Partial Good
- 1 Lane in each direction
- No clear striping, shoulder or sidewalks
- Presence of a few driveways
- Topography: flat, moderate horizontal curve
Ciabola St. E.

Broadway D St. 0.46 25 MPH No Yes Good
- 1 Lane in each direction
- Sidewalks
- Presence of a driveways
- Topography: flat, moderate horizontal curve
W. Broadway/
Hist.

U.S./County
Rte 66
Ciabola
St. L St. 1.02 30 MPH No Partial Good
- Mostly 2 Lanes in each direction
- Mixed land uses
- Presence of Two Traffic Signals along the way
- With and without sidewalks on both sides
- Topography: flat, moderate horizontal curve
L St. Front St. Eagle Pass Rd. 0.13 None No None Good
- 1 Lane in each direction
- No clear roadway markings/striping or shoulder
- With sidewalks on both sides, presence of few driveways - Topography: Flat
- Adjacent Infrastructure: Residential
Front St. N. K St. L St. 0.05 None No None Good
- 1 Lane in each direction
- With sidewalks on one side, presence of few driveways - Topography: Flat
- Adjacent Infrastructure: Residential
Bailey Ave. J St. Lillyhill Dr. 0.46 35
MPH No Yes Good
- 2 Lanes in each direction
- Sidewalks on both sides till 1600 Bailey Ave.
- Presence of a few driveways
- Topography: flat
Total Distance of Proposed Paved OHMV Routes: 9.20 Miles *Unpaved City Roadway (not to be counted as a part of total OHMV Routes) Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
7 Table 2: Additional Justification & Details of Proposed Segments See the subsequent pages for supporting tables, figures, and attachments referenced in the above table. Street Name
From To Posted Speed Limit Sign
Justification/Benefits Additional
Considerations/Requirements
Eagle
Pass Rd.

Slightly Past
El Monte Dr S. L St. None
 Provides connectivity to all three
existing OHMV routes in the
City of Needles
(See Figure 2 for existing OHMV
routes in the City)
 Will require an additional posted
speed limit sign of 35 MPH
specific to OHMV vehicles
(As per Cal. Veh. Code § 38026.2 (5),
provided in Appendix C.)
J St. Parkway Dr. Front St. 30 MPH
 Provides connectivity to all three
existing OHMV routes in the
City of Needles
None
Lillyhill Dr. Parkway Dr. Cibola St. 30 MPH
 Provides connectivity from
residences and lodging facilities
to OHMV routes #1, #2, and #3
None
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
8 Figure 3: Locations of Existing Lodging Facilities within the City of Needles Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
9 Figure 4: Existing Lodging Facilities in the Vicinity of Proposed OHMV Routes * Includes Motel 6, Days Inn & Suites, Econo Lodge, Rodeway Inn, Santiago Coronado Village, and Quality Inn
LEGEND
Proposed OHMV Route
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
10 Figure 5: Existing East Mojave Heritage Trail (EHMT) Offroad Trails in the Vicinity of Proposed OHMV Routes

1. EMHT Segment 1: Needles to Ivanpah

Image Source: https://www.onxmaps.com/offroad/trails/us/california/emht-segment-1-needles-to-ivanpah

2. EHMT Segment 4: Fenner to Needles

Image Source: https://www.onxmaps.com/offroad/trails/us/california/emht-segment-4-fenner-to-needles Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
11 3. Eagle Pass

Image Source: https://www.onxmaps.com/offroad/trails/us/california/eagle-pass

Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
12 Appendix A: Public Education & Public Outreach
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
13 To ensure the successful implementation of Off-highway Motor Vehicle (OHMV) access routes in the City of Needles and to promote safe, legal, and responsible OHMV use, a comprehensive public education and outreach strategy should be implemented. This strategy targets two main audiences:
local residents who may be impacted by OHMV traffic in their neighborhoods, and OHMV users, including visitors from outside the area who may be unfamiliar with local rules. Clear communication will help prevent conflicts, reduce complaints, and enhance the community’s acceptance of OHMV activity within designated routes.

1. Community Education Campaign
A direct outreach campaign should be launched to educate residents about the new OHV rules and routes. This can include printed materials mailed to all households within the city which ideally included with utility bills or community newsletters to ensure maximum reach. These materials should include a clearly marked map of designated OHMV routes, an overview of operating rules (such as speed limits, helmet requirements, insurance, license requirements, and restrictions on hours of operation), and instructions for reporting violations. This printed outreach should be simple, bilingual where needed, for example English and Spanish, and include visuals to aid comprehension.

To extend accessibility and reduce confusion, a Frequently Asked Questions (FAQ) sheet should be developed addressing common concerns such as “Can my child ride an OHMV on our street?” or “What are the penalties for riding off-route?”, and include a QR code linking to the city’s OHMV informational webpage for real-time updates and collecting public comments and complaints.

The City of Needles should maintain a dedicated OHMV information page on its official website, featuring downloadable maps, full text of the local OHMV ordinance, safety rules, and frequently asked questions. This page should also include a complaint form or feedback portal for residents to report unauthorized OHV activity, dust issues, or trail misuse.

Digital content should be supplemented by a robust social media campaign, especially around holiday weekends or major OHMV events when usage spikes. Posts can include safety reminders, route closures (if any), and positive rider behavior messages, along with visually engaging content like short videos demonstrating legal route access and safe riding practices.

2. Community Meetings and Law Enforcement Coordination
In the early stages of implementation, the city should host at least one public open house or community meeting to explain the new OHMV access plan, gather public input, and address concerns. These sessions should be promoted in advance via mail, social media, and local media. Ongoing outreach events such as informational booths at community festivals or OHMV events can further educate the public and promote responsible riding.

The success of this education plan depends in part on coordination with local law enforcement.

Officers should be trained on the new OHMV rules and provided with route maps and citation guidelines. Officers may also be asked to conduct periodic ride-along or targeted enforcement during high-use weekends to ensure compliance and address resident complaints early in the program.

Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
14 Appendix B: California Vehicle Code - § 38025

Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
15 38025. In accordance with subdivision (c) of Section 4000, a motor vehicle issued a plate or device pursuant to Section 38160 may be operated or driven upon a highway but only as follows:
(a) On a two-lane highway, only to cross the highway at an angle of approximately 90 degrees to the direction of the roadway and at a place where a quick and safe crossing may be made, or only when the roadway is not maintained by snow removal equipment and is closed to motor vehicles that are subject to registration pursuant to Division 3 (commencing with Section 4000), or only to cross a highway in the manner specified in subdivision (b).
(b) With respect to the crossing of a highway having more than two lanes, or a highway having limited access, a motor vehicle may cross a highway but only at a place designated by the Department of Transportation or local authorities with respect to a highway under their respective jurisdictions as a place where a motor vehicle, or specified types of motor vehicle, may cross a highway, and a vehicle shall cross the highway only at that designated place and only in a quick and safe manner. (c) The Department of Transportation and local authorities with respect to a highway under their respective jurisdictions may designate, by the erection of an appropriate sign of a type approved by the Department of Transportation, a place where a motor vehicle, or specified type of motor vehicle, may cross a highway having more than two lanes or having limited access. (d) A motor vehicle identified pursuant to Section 38010 may be towed upon a highway, but not driven, if the vehicle displays a plate or device issued pursuant to Section 38160. (e) A motorcycle identified pursuant to Section 38010 may be pushed upon a highway, but not ridden, if the motorcycle has displayed upon it a plate or device issued pursuant to Section 38160. (f) A peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, may operate or drive an off-highway vehicle identified pursuant to Section 38010 upon a highway in an emergency response situation.
(Amended by Stats. 2003, Ch. 135, Sec. 1, Effective January 1, 2004.) Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

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16 Appendix C: California Vehicle Code - § 38026 & § 38026.2

Agenda Item 20.

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17 38026. (a) In addition to Section 38025 and after complying with subdivision (c) of this section, if a local authority, an agency of the federal government, or the Director of Parks and Recreation finds that a highway, or a portion of a highway, under the jurisdiction of the authority, agency, or the director, as the case may be, is located in a manner that provides a connecting link between off-highway motor vehicle trail segments, between an off-highway motor vehicle recreational use area and necessary service facilities, or between lodging facilities and an off-highway motor vehicle recreational facility and if it is found that the highway is designed and constructed so as to safely permit the use of regular vehicular traffic and also the driving of off-highway motor vehicles on that highway, the local authority, by resolution or ordinance, agency of the federal government, or the Director of Parks and Recreation, as the case may be, may designate that highway, or a portion of a highway, for combined use and shall prescribe rules and regulations therefor. A highway, or portion of a highway, shall not be so designated for a distance of more than three miles, except as provided in Sections 38026.1, 38026.2, and 38026.3. A freeway shall not be designated under this section. (b) The Off-Highway Motor Vehicle Recreation Commission may propose highway segments for consideration by local authorities, an agency of the federal government, or the Director of Parks and Recreation for combined use.
(c) Prior to designating a highway or portion of a highway on the motion of the local authority, an agency of the federal government, or the Director of Parks and Recreation, or as a recommendation of the Off-Highway Motor Vehicle Recreation Commission, a local authority, an agency of the federal government, or the Director of Parks and Recreation shall notify the Commissioner of the California Highway Patrol, and shall not designate any segment pursuant to subdivision (a) which, in the opinion of the commissioner, would create a potential traffic safety hazard. (d) (1) A designation of a highway, or a portion of a highway, under subdivision (a) shall become effective upon the erection of appropriate signs of a type approved by the Department of Transportation on and along the highway, or portion of the highway. (2) The cost of the signs shall be reimbursed from the Off-Highway Vehicle Trust Fund, when appropriated by the Legislature, or by expenditure of funds from a grant or cooperative agreement made pursuant to Section 5090.50 of the Public Resources Code. (Amended by Stats. 2024, Ch. 592, Sec. 1. (SB 632) Effective January 1, 2025.) 38026.2
(a) Except as provided in subdivision (e), the City of Needles may establish a pilot project to designate combined-use highways on roads in the city for no more than 10 miles so that the combined-use highways can be used to link existing off-highway motor vehicle trails and trailheads on federal Bureau of Land Management or United States Forest Service lands, and to link off-highway motor vehicle recreational-use areas with necessary service and lodging facilities, in order to provide a unified system of trails for off-highway motor vehicles, preserve traffic safety, improve natural resource protection, reduce off-highway vehicle trespass on private land, and minimize impacts on city residents.
(b) A pilot project established pursuant to this section shall do all of the following:

Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
18 1) Prescribe a procedure for highway, road, or route selection and designation. The procedure shall be approved by a vote of a majority of the city council. 2) Prescribe a procedure for the city to remove a combined-use designation, including a designation that is removed as a result of the conclusion of the pilot program. 3) In cooperation with the Department of Transportation, establish uniform specifications and symbols for signs, markers, and traffic control devices to control off-highway motor vehicles, including, but not limited to, all of the following:
a) Devices to warn of dangerous conditions, obstacles, or hazards. b) Designations of the right-of-way for regular vehicular traffic and off-highway motor vehicles.
c) A description of the nature and destination of the off-highway motor vehicle trail. d) Warning signs for pedestrians and motorists of the presence of off-highway motor vehicle traffic.
4) Require that off-highway motor vehicles subject to the pilot project meet the safety requirements of federal and state law regarding proper drivers' licensing, helmet usage, and the requirements specified in Section 38026.5.
5) Prohibit off-highway motor vehicles from traveling faster than 35 miles per hour on highways designated under this section.
6)
a) Prohibit a combined-use highway road segment designated under this section from exceeding 10 miles.
b) Notwithstanding subparagraph (A), two or more combined-use highway road segments may share a common starting point or ending point and may partially overlap as long as the resulting network of the highway road segments does not include more than three distinct locations of shared starting or ending points, or both.
7) Include an opportunity for public comment at a public hearing held by the city in order to evaluate the pilot project.
(c) A pilot project established pursuant to this section may include use of a state highway, subject to the approval of the Department of Transportation, or any crossing of a highway designated pursuant to Section 38025.
(d)
1) By selecting and designating a highway for combined use pursuant to this section, the city agrees to defend and indemnify the state against any and all claims, including legal defense and liability arising from a claim, for any safety-related losses or injuries arising or resulting from use by off-highway motor vehicles of a highway designated as a combineduse highway by the city council pursuant to this section. 2) This subdivision does not alter the requirements of subdivision (e). (e) The city shall not designate a highway for combined use pursuant to this section unless the Commissioner of the Department of the California Highway Patrol finds that designating the highway for combined use would not create a potential traffic safety hazard. (f)
1) Not later than January 1, 2027, the City of Needles, in consultation with the Department of the California Highway Patrol, the Department of Transportation, and the Department of Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

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19 Parks and Recreation, shall prepare and submit to the Legislature a report evaluating the pilot project, and containing all of the following:
a) A description of the road segments designated to allow combined use for over three miles, as approved or adopted by a majority vote of the members of the City of Needles city council.
b) An evaluation of the overall safety and effectiveness of the pilot project, including its impact on traffic flows, safety, off-highway vehicle usage on existing trails, incursions into areas not designated for off-highway vehicle usage, and nonmotorized recreation.
c) A description of the public comments received at a public hearing held by the city in regards to an evaluation of the pilot project.
2) On or before January 1, 2027, the City of Needles, in consultation with the entities listed in paragraph (1), shall prepare and submit a report to the Legislature that includes the information specified in paragraph (1).
(g) On or before January 1, 2027, the City of Needles, in consultation with the Department of Fish and Wildlife and the Mojave Desert Air Quality Management District, shall prepare and submit a report to the Legislature on the operation and impacts of the combined-use highways designated pursuant to this section, and the portions of any adjoining trails in close proximity to those highways, including impacts to neighboring lands affected by the system, if any. The report shall include the latest available information, including, but not limited to, impacts on cultural resources and archaeological sites, streambed modifications and water quality impacts, impacts on protections for wildlife and aquatic habitat, native plants, and wildlife, traffic, particulate pollution, and noise.
(h)
1) The reports submitted pursuant to subdivisions (f) and (g) shall be submitted in compliance with Section 9795 of the Government Code.
2) This section shall remain in effect only until January 1, 2028, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2028, deletes or extends that date.

Ca. Veh. Code § 38026.2
(Added by Stats 2022 ch 185 (AB 2152),s 4, eff. 1/1/2023.) Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
20 Appendix D: Suggested OHMV Route Signage Table
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
21 All designated Off-Highway Motor Vehicle (OHMV) routes within the City of Needles must be clearly marked with appropriate regulatory, warning, and guidance signage to ensure legal compliance and safe operation. Signage shall conform to the California Manual on Uniform Traffic Control Devices (CA MUTCD) and must include, at a minimum, “Begin OHMV Route” and “End OHMV Route” signs at all entry and exit points, directional arrows where necessary, and posted OHMV-specific speed limits not exceeding 35 miles per hour, as authorized under California Vehicle Code (CVC) §38026(b).

Additional signage may include “Helmet Required” notices in accordance with CVC §38601, and advisory signs such as “Yield to Pedestrians” and “Stay on Designated Route” in areas of shared use or near residential neighborhoods. The City is also responsible for installing signage that complies with CVC §38026.1, which grants local authority to establish OHMV use on city streets provided that route boundaries are properly identified and communicated to the public.

Table 3: Suggested OHMV Route Signage Table
Sign Type Example Sign/MUTCD Code Purpose
Begin OHMV Route Custom/R81A (CA) Indicates where OHMV access on public streets officially
begins
End OHMV Route Custom/R81B (CA) Marks the termination point of legal OHMV access
OHMV Directional Arrow Custom Arrow Sign Guides OHMV users along the designated route
OHMV Speed Limit R2-1 (“Speed Limit 35”) Establishes speed control (maximum 35 mph allowed for
OHMVs on streets)
Helmet Required Custom / Symbolic Sign Alerts riders to the mandatory helmet rule for ATVs/UTVs
Yield to Pedestrians R1-5 series Advises OHMV operators to give right of way in shared
zones
Stay on Designated Route Custom Prevents riders from using unauthorized streets or trails
Paint No ATV/OHMV Custom Alert riders that it is prohibited after this point
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
22 Appendix E: California Vehicle Code - § 16020
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
23 (a) All drivers and all owners of a motor vehicle shall at all times be able to establish financial responsibility pursuant to Section 16021, and shall at all times carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle.
(b) “Evidence of financial responsibility” means any of the following:
(1) A form issued by an insurance company or charitable risk pool, as specified by the department pursuant to Section 4000.37.
(2) If the owner is a self-insurer, as provided in Section 16052 or a depositor, as provided in Section 16054.2, the certificate of self-insurance or the assignment of deposit letter issued by the department. (3) An insurance covering note or binder pursuant to Section 382 or 382.5 of the Insurance Code. (4) A showing that the vehicle is owned or leased by, or under the direction of, the United States or a public entity, as defined in Section 811.2 of the Government Code. (c) For purposes of this section, “evidence of financial responsibility” also may be obtained by a law enforcement officer and court personnel from an electronic reporting system when that system becomes available for use by law enforcement officers.
(d) For purposes of this section, “evidence of financial responsibility” also includes any of the following:
(1) The name of the insurance company and the number of an insurance policy or surety bond that was in effect at the time of the accident or at the time that evidence of financial responsibility is required to be provided pursuant to Section 16028, if that information is contained in the vehicle registration records of the department.
(2) The identifying motor carrier of property permit number issued by the Department of the California Highway Patrol to the motor carrier of property as defined in Section 34601, and displayed on the motor vehicle in the manner specified by the Department of the California Highway Patrol. (3) The identifying number issued to the household mover by the Bureau of Household Goods and Services and displayed on the motor vehicle in the manner specified by the bureau or an identifying number issued to the passenger stage carrier or transportation charter party carrier by the Public Utilities Commission and displayed on the motor vehicle in the manner specified by the commission. (e) Evidence of financial responsibility does not include an identification number in paragraph (1), (2), or (3) of subdivision (d) if the carrier is currently suspended by the issuing agency for lack or lapse of insurance or other form of financial responsibility.
(Amended by Stats. 2022, Ch. 295, Sec. 13. (AB 2956) Effective January 1, 2023.) Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
24 Appendix F: California Vehicle Code - § 38010, § 38020, § 38088 & § 38170
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

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25 38010. (a) Except as otherwise provided in subdivision (b), a motor vehicle specified in Section 38012 that is not registered under this code because it is to be operated or used exclusively off the highways, except as provided in this division, shall display an identification plate or device issued by the department.
(b) Subdivision (a) does not apply to any of the following:
(1) Motor vehicles specifically exempted from registration under this code, including, but not limited to, motor vehicles exempted pursuant to Sections 4006, 4010, 4012, 4013, 4015, 4018, and 4019. (2) Implements of husbandry.
(3) Motor vehicles owned by the state, or any county, city, district, or political subdivision of the state, or the United States.
(4) Motor vehicles owned or operated by, or operated under contract with a utility, whether privately or publicly owned, when used as specified in Section 22512. (5) Special construction equipment described in Section 565, regardless of whether those motor vehicles are used in connection with highway or railroad work. (6) A motor vehicle with a currently valid special permit issued under Section 38087.5 that is owned or operated by a nonresident of this state and the vehicle is not identified or registered in a foreign jurisdiction. For the purposes of this paragraph, a person who holds a valid driver’s license issued by a foreign jurisdiction is presumed to be a nonresident. (7) Commercial vehicles weighing more than 6,000 pounds unladen. (8) A motorcycle manufactured in the year 1942 or prior. (9) Four-wheeled motor vehicles operated solely in organized racing or competitive events upon a closed course when those events are conducted under the auspices of a recognized sanctioning body or by permit issued by the local governmental authority having jurisdiction. (10) A motor vehicle with a currently valid identification or registration permit issued by another state, if the other state recognizes an identification plate or device issued by the department pursuant to subdivision (a) as valid for use in that state.
(Amended by Stats. 2021, Ch. 739, Sec. 1. (AB 232) Effective January 1, 2022.) 38020. Except as otherwise provided in this division, a person shall not operate or leave standing an off-highway motor vehicle subject to identification under this code that is not registered under the provisions of Division 3 (commencing with Section 4000), unless it is identified under the provisions of this chapter. A violation of this section is an infraction. Riding in violation of seasons established by Section 2412(f) and 2415 of Title 13 of the California Code of Regulations constitutes a violation of this section. This section shall not apply to the operation, transportation, or leaving standing of an offhighway vehicle pursuant to a valid special permit. (Amended by Stats. 2014, Ch. 345, Sec. 18. (AB 2752) Effective January 1, 2015.) Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
26 38088. (a) Upon payment of the fee specified in Section 38232, the department shall issue to the owner of a motorcycle, which the owner has certified as being used exclusively in racing events on a closed course, a special transportation identification device for the purpose of identifying the motorcycle while it is being transported upon a highway to and from racing events on a closed course. Such device may be either a plate or a sticker, whichever is determined by the department to be the most appropriate.
(b) Such device is nonrenewable, nontransferrable, and becomes invalid when the vehicle for which it was issued is sold or dismantled.
(c) A certificate of ownership may not be issued in conjunction with a special transportation identification device.
38170. (a) Every off-highway motor vehicle subject to identification shall have displayed upon it the identification number assigned to the vehicle for which it is issued, together with the word “California” or the abbreviation “CAL” and the year number for which it is issued or a suitable device issued by the department for validation purposes, which device shall contain the year for which it is issued. (b) The identification plate or device shall at all times be securely fastened to the vehicle for which it is issued and shall be mounted or affixed in a position to be clearly visible, and shall be maintained in a condition so as to be clearly legible. No covering shall be used on the identification plate or device.
(c) All identification plates or devices issued on or after January 1, 1996, shall be displayed as follows:
(1) On the left fork leg of a motorcycle, either horizontal or vertical, and shall be visible from the left side of the motorcycle.
(2) On the left quadrant of the metal frame member of sand rails, rail-type buggies, and dune buggies, visible from the rear of the vehicle.
(3) On the left rear quadrant on permanent plastic or metal frame members of all-terrain vehicles, visible to outside inspections.
(4) On the left tunnel on the back quadrant of snowmobiles. (Amended by Stats. 1994, Ch. 14, Sec. 1. Effective January 1, 1995.) Sample Identification Stickers:
* The CA Exempt decal produced by the OHMVR Division is intended for use on OHVs owned by governmental agencies in California. The decal is not a form of identification, is not numbered, and cannot be traced or tied to a specific OHV VIN. It carries no monetary value.

Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
27 Appendix G: California Vehicle Code - § 12500 & § 38503 Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
28 12500. (a) A person may not drive a motor vehicle upon a highway, unless the person then holds a valid driver’s license issued under this code, except those persons who are expressly exempted under this code.
(b) A person may not drive a motorcycle, motor-driven cycle, or motorized bicycle upon a highway, unless the person then holds a valid driver’s license or endorsement issued under this code for that class, except those persons who are expressly exempted under this code, or those persons specifically authorized to operate motorized bicycles or motorized scooters with a valid driver’s license of any class, as specified in subdivision (h) of Section 12804.9. (c) A person may not drive a motor vehicle in or upon any offstreet parking facility, unless the person then holds a valid driver’s license of the appropriate class or certification to operate the vehicle. As used in this subdivision, “offstreet parking facility” means any offstreet facility held open for use by the public for parking vehicles and includes any publicly owned facilities for offstreet parking, and privately owned facilities for offstreet parking where no fee is charged for the privilege to park and which are held open for the common public use of retail customers. (d) A person may not drive a motor vehicle or combination of vehicles that is not of a type for which the person is licensed.
(e) A motorized scooter operated on public streets shall at all times be equipped with an engine that complies with the applicable State Air Resources Board emission requirements. (Amended by Stats. 2007, Ch. 630, Sec. 3. Effective January 1, 2008.) 38503. No person under the age of 18 years, on and after January 1, 1990, shall operate an all-terrain vehicle on public lands of this state unless the person satisfies one of the following conditions:
(a) The person is taking a prescribed safety training course under the direct supervision of a certified all-terrain vehicle safety instructor.
(b) The person is under the direct supervision of an adult who has in their possession an appropriate safety certificate issued by this state, or issued under the authority of another state. (c) The person has in possession an appropriate safety certificate issued by this state or issued under the authority of another state.
(Added by Stats. 1987, Ch. 881, Sec. 37.)
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

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29 Appendix H: City of Needles Existing Posted Speed Limits (2022 Citywide Engineering & Traffic Survey)
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
30 Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
31 Appendix I: City of Needles OHMV Access, Local Roads, and Short-Term Lodging
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
32 OHMV Access, Local Roads, and Short-Term Lodging
The Inyo County OHMV report does not mention Airbnb, short-term rentals, or vacation home lodging directly. It focuses primarily on route designation, public safety, environmental impacts, and community feedback, but does not address land use or zoning implications related to tourismbased lodging such as Airbnb.

There is no single California state law that addresses the interelation of OHMV use and shortterm lodging. Instead, cities must use a combination of Vehicle Code regulation (authority) and local zoning policy (power) to manage this issue. For the City of Needles, the OHMV plan should be accompanied by:
 A short-term rental ordinance aligned with OHMV access goals  Local rules under CVC §38026.1 that address resident and possibly guest access  Targeted enforcement strategies and educational outreach to both hosts and riders From an economic development perspective, the OHMV plan offers potential for tourism growth, outdoor recreation branding, and supplemental income for local property owners through the establishment of short-term rentals. Conversely, it raises legitimate concerns regarding enforcement, increased demands on local law enforcement, and the need for regulatory mechanisms to manage neighborhood traffic, noise, and land use compatibility.

Scenario 1: Tourism Development Opportunity
If the City chooses to position itself as a recreation- and tourism-friendly destination, the OHMV network could serve as a foundation for local economic growth. Allowing residents to operate short-term lodging (e.g., Airbnb or vacation rentals) in proximity to the combined-use routes could attract OHMV visitors and support small business activity. In this scenario, the City should adopt a regulatory framework for short-term rentals that:
 Requires registration, licensing, and compliance with operating standards  Limits short-term rentals to properties located within a defined distance (e.g., ¼ mile) from designated OHMV routes
 Mandates disclosure of OHMV access rules to all guests  Enforces quiet hours and parking requirements to protect adjacent residential uses This approach would provide a mechanism to harness tourism benefits while maintaining control over land use and mitigating neighborhood impacts.

Scenario 2: Regulatory and Enforcement Risk
Alternatively, if the City’s priority is to limit neighborhood disruption and reduce enforcement burdens, particularly on the Police Sheriff Department, it may opt to restrict or prohibit short-term lodging within city limits. This is especially relevant given that the currently proposed combineduse route network totals approximately 10 miles, meaning most city streets are not included.

Guests staying at short-term rentals located outside the designated OHMV corridors would have Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
33 no legal means to access the routes directly, which would likely result in unauthorized OHMV use on local streets. This creates additional enforcement challenges and potential public safety issues.

In this scenario, the City could adopt a prohibition or moratorium on short-term rentals linked to OHMV activity until further review is conducted.

Policy Recommendation: Local Resident Connector Access
To address access concerns for permanent residents who own OHMVs but live outside the immediate combined-use network, the City may exercise its authority under California Vehicle Code §38026.1 to develop a limited-access provision for residents. This provision would allow OHMV use on specific local street segments that are not part of the combined-use network, for the sole purpose of connecting from a residential property to the nearest designated OHMV route.

These local connector routes would be:
 Restricted to licensed, insured OHMVs operated by residents with proof of local address  Clearly signed as “Resident OHMV Access – Permit Required”  Subject to operational time limits, speed restrictions, and enforcement protocols This solution balances the needs of local OHMV users with the City's obligation to maintain traffic order and reduce nuisance concerns in non-OHMV corridors.

Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
34 Appendix J: Potential OHMV Trail Staging Areas in Needles Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
35 As part of the City of Needles’ Off-Highway Motor Vehicle (OHMV) Plan, the proposal to establish designated OHMV trail staging areas at the intersection of Park Drive & River Road and the intersection of Clary Drive & Lillyhill Drive represents a critical step toward formalizing vehicle access, enhancing safety, and supporting long-term management of recreational vehicle activity.

These locations are strategically situated near open space and proposed combined-use corridors, making them well-suited for trailhead infrastructure.

Reference Model: Arizona Peace Trail Staging Areas
The Arizona Peace Trail, a 675-mile looped OHMV network in western Arizona, offers a valuable reference for staging area design. Across multiple counties, staging areas along this trail system have been developed to accommodate trucks and trailers, provide user information, and serve as centralized entry points for recreational vehicle use. Though there is no single design standard, typical staging areas should include:
 Graded gravel parking capable of accommodating large trucks and trailers  Loading/unloading zones for OHMVs such as ATVs, UTVs, and motorcycles  Trailhead signage and information kiosks with maps, rules, and local ordinances  Restroom facilities (vault toilets or portable units)  Trash collection and minimal landscaping
 Barriers or fencing to define perimeters and discourage unauthorized access  Directional signage to nearby designated OHMV routes
These facilities are generally low-maintenance and low-cost, with some enhanced locations offering shade structures or picnic areas.

Applicability to Needles: Site Design Considerations
The proposed staging area locations at the intersection of Park Drive & River Road and the intersection of Clary Drive & Lillyhill Drive are ideally positioned to serve both residents and visiting OHMV users. The City should consider the following site elements based on regional best practices and anticipated user demand:

Table 4: Recommended OHMV Potential Trail Staging Area Site Elements Feature Purpose
Graded parking area Accommodates pickup trucks with trailers transporting OHMVs
Vehicle loading/unloading zones Designated areas for unloading OHMVs safely and efficiently
Trailhead kiosk Displays route map, safety rules, equipment laws, and local regulations
Restroom facility Improves usability and reduces public health risks Entry/exit signage “OHMV Staging Area,” “Authorized Routes Only,” and operating hours
Emergency contact information Provides dispatch and emergency medical contacts for riders
Agenda Item 20.

OFF-HIGHWAY MOTOR VEHICLE (OHMV) MASTER PLAN & ROUTES - Pilot Project Final Technical Memo

CITY OF NEEDLES, CA
36 Both locations should be connected to the City’s combined-use OHMV route network and clearly identified in public education materials and enforcement maps. Buffering or setback design should be used to reduce noise or dust impacts on adjacent properties, particularly in any semiresidential contexts.

Operational and Enforcement Benefits
Formalized OHMV staging areas offer the City several operational advantages:
 Centralized access discourages unauthorized launching from residential streets  Clear signage and parking reduce confusion and increase compliance  Police or code enforcement efforts can be focused more efficiently at entry points  Emergency services will have a known location to respond to incidents or breakdowns Trail staging areas also support environmental protection by minimizing uncontrolled trail access points and limiting off-route impacts on sensitive land.

Summary
The proposed OHMV staging areas at Park Drive & River Road and Clary Drive & Lillyhill Drive align with regional best practices and mirror successful models like those found along the Arizona Peace Trail. Their development will improve access management, support tourism objectives, and reduce conflicts related to illegal OHMV access through residential neighborhoods. With proper signage, maintenance, and integration into the city’s combined-use network, these facilities can serve as long-term infrastructure assets that enhance the safety and organization of City of Needles’ OHMV plan.

Agenda Item 20.

MINAGAR & ASSOCIATES, INC.
23282 Mill Creek Drive, East Tower, Suite 120
Laguna Hills, CA 92653
Tel: (949)707-1199
Web: www.minagarinc.com
2019 Winner of the Orange County Engineering Council’s Outstanding Service Award 2016 Winner of the ASCE’s Outstanding Civil Engineer in the Private Sector Award in the State of California 2016 Winner of the ASCE Los Angeles Section’s Outstanding Civil Engineer in the Private Sector Award 2016 Winner of the ASCE Orange County Chapter’s Outstanding Civil Engineer in the Private Sector Award 2016 Certificate of Recognition for Dedication to Support the ELTP Program by Los Angeles County MTA/Metro 2016 Winner of the Orange County Engineering Council’s Outstanding Engineering Service Award 2015 Orange County Business Journal’s 2015 Excellence in Entrepreneurship Award Nominee 2014 Orange County Business Journal’s 2014 Excellence in Entrepreneurship Award Nominee 2012 Winner of Cal-EPA/California Air Resources Board’s Cool California Climate Leader
2011 Award of Excellence in Service by Los Angeles County MTA/Metro in the County of Los Angeles
2011 Award of Excellence in Service by Los Angeles County MTA/Metro in the County of Los Angeles
2010 Award of Excellence in Service by Los Angeles County MTA/Metro in the County of Los Angeles
2009 Winner of the ASCE’s Outstanding Private Sector Civil Engineering Project in Metropolitan Los Angeles
2009 Winner of the Caltrans’ 2009 Excellence in Transportation Award in the State of California
2007 Winner of the ASCE’s Outstanding Public/Private Sector Civil Engineering Project in Metropolitan Los Angeles
2005 Winner of the APWA’s Best Traffic Congestion Mitigation Project of the Year in Southern California
2004 Top Nominee of Transportation Foundation’s Highway Management Program in the State of California
2003 Winner of the PTI’s Best Transportation Technology Solutions Award in the United States
2002 Winner of the ITS-CA’s Best Return on Investment Project Award in the State of California
2000 Award of Excellence in Service by Los Angeles County MTA/Metro in the County of Los Angeles
Celebrating 32 Years ofPlanning & EngineeringExcellence • Traffic Engineering
• Transportation Planning
• ITS (Intelligent Transportation Systems)
• Civil/Electrical Engineering
• Homeland Security
• Construction Engineering Management
Agenda Item 20.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: Resolution 2025-39 of the City Council of the City of Needles Approving a Lease between the City of Needles and 19th Hole Bar & Grill, LLC to Operate A Full-Service Restaurant in a CityOwned Facility at River’s Edge Golf Course and Authorizing the City Manager to Sign Documents on Behalf of the City of Needles
Background: The City of Needles owns the River’s Edge Golf Course, located at 144 Marina Drive. The golf course has a building/superstructure whereby a golf “pro” shop operates as well as a restaurant (with a license to sell alcohol). Since approximately 2020, Kristin Hoebel (née Baran) and her family have operated the restaurant facility under a lease they assumed from a previous operator (and with City of Needles consent).

In the five (5) years she has operated the restaurant, the menu/offerings have expanded and golfers, residents and visitors to the community and region have enjoyed having access to a full-service restaurant. While subject of a separate staff report and item on the City Council Agenda, staff is recommending substantial improvements to the kitchen/restaurant facility to comply with the County of San Bernardino Health Department. City staff have been working with Kristin Hoebel to structure a new lease agreement that provides the opportunity for the restaurant to operate into the future and justify the investment the City of Needles will be making (subject to City Council approval) into the facility.

Before the City Council is a new lease agreement between the City of Needles and 19th Hole Bar & Grill, LLC (a newly formed limited liability corporation (LLC) with Kristin Hoebel as the managing member). The lease would replace the current lease agreement that expires in early 2026. The new lease has the following basic deal points:

1. 10-Year Lease with a 5-Year (Lessee Option)

2. Years 1-5: Lease Amount: $3,150 per month

3. Years 6-10: Lease Amount: $3,500 per month

4. Years 11-15: Lease Amount: $3,850 per month
The lessee is responsible for 70% of electric bills and 60% of water bills. Note that the facility is a shared facility with the golf course operations as well as bathrooms that are available to both golfers and patrons to the restaurant. The lessee will also be responsible for the cleaning of the restroom facilities attached to the building. The City of Needles would have to take action to approve any changes to the lease including amendments or assignment.

Fiscal Impact: The City of Needles would receive revenue from the lease amount(s) in the lease as previously described as well as payment of appropriate amounts from utility billings.

Environmental Impact: The building superstructure is already existing and therefore is exempt from any action or predetermined action under the California Environmental Quality Act (CEQA) Recommendation: Adopt Resolution 2025-39 Approving the lease between the City of Needles and 19th Hole Bar & Grill, LLC and authorize the City Manager to sign documents associated with the lease on behalf of the City.

Submitted By: Patrick Martinez, City Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 21.

RESOLUTION 2025-39
APPROVING A LEASE BETWEEN THE CITY OF NEEDLES AND 19TH HOLE BAR & GRILL, LLC

TO OPERATE A FULL-SERVICE RESTAURANT IN A CITY-OWNED FACILITY AT RIVER’S EDGE GOLF COURSE AND AUTHORIZING THE CITY MANAGER TO

SIGN DOCUMENTS ON BEHALF OF THE CITY OF NEEDLES
WHEREAS, the City operates a municipal golf course known as the River’s Edge Golf Course located at 144 Marina Drive, Needles, California, hereinafter referred to as the “Golf Course”.

WHEREAS, the City owns the building and land that the restaurant/bar business at said Golf Course referred to as the “19th Hole” that is currently operated by Kristin Hoebel (née Baran) and Scott Baran (collectively “Barans”) under that certain RIVER’S EDGE SNACK BAR CONCESSION/LEASE dated September 17, 2014, as amended and assigned to the Barans (“Existing Lease”);
WHEREAS, the 19th Hole operates from a modular building that also includes the separately owned and operated pro shop (“Pro Shop”);
WHEREAS, the City Council at its regular meeting on August 12, 2025, did authorize and direct the City Manager to negotiate the terms of this Lease with Lessee which shall supersede and replace the Existing Lease; WHEREAS, the Barans comprise all of the members of the Lessee. Upon the issuance of the certificate of occupancy by the City for the New Improvements as provided in 2025 River’s Edge Restaurant/Bar Lease Agreement, the Existing Lease shall automatically terminate; WHEREAS, the Lessee in the 2025 River’s Edge Restaurant/Bar Lease will be between the City of Needles and 19th Hole Bar & Grill, LLC (an LLC formed by Kristin Hoebel (née Baran)); WHEREAS, the Lessee through the 19th Hole Bar & Grill, LLC with Kristin Hoebel (née Baran) as the operator of the 19th Hole Bar & Grill, LLC has the recognized ability and capacity to furnish restaurant services to the patrons of the 19th Hole, which would be of value to the City in the operation of the Golf Course.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

1. The City of Needles hereby approves the Lease Agreement between the City of Needles and the 19th Hole Bar & Grill, LLC.

2. The City of Needles authorizes the City Manager to make minor, non-substantial modifications to the Lease Agreement as appropriate and necessary.

3. The City of Needles authorizes the City Manager to sign/execute the Lease Agreement on behalf of the City of Needles.

PASSED, APPROVED, AND ADOPTED, at the regular meeting of the City Council this 9th day of September, 2025.

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
APPROVED AS TO FORM:

Lena Wade, Deputy City Attorney
Agenda Item 21.
1 2025 RIVER’S EDGE RESTAURANT/BAR LEASE
This 2025 RIVER’S EDGE RESTAURANT/BAR LEASE (“Lease”) is made and entered into this 12th day of September 2025, by and between the City of Needles (“City”) and the 19th Hole Bar & Grill, LLC, a California limited liability company (“Lessee”).

RECITALS
WHEREAS, the City operates a municipal golf course known as the River’s Edge Golf Course located at 144 Marina Drive, Needles, California, hereinafter referred to as the “Golf Course”.

WHEREAS, the City owns the assets of the restaurant/bar business at said Golf Course referred to as the “19th Hole” that is currently operated by Kristin Hoebel (nee Baran) and Scott Baran (collectively “Barans”) under that certain RIVER’S EDGE SNACK BAR CONCESSION/LEASE dated September 17, 2014, as amended and assigned to the Barans (“Existing Lease”);
WHEREAS, the 19th Hole operates from a modular building that also includes the separately owned and operated pro shop (“Pro Shop”);
WHEREAS, the City Council at its regular meeting on August 12, 2025, did authorize and direct the City Manager to negotiate the terms of this Lease with Lessee which shall supersede and replace the Existing Lease; WHEREAS, Barans make up all of the members of the Lessee, upon the issuance of the certificate of occupancy by the City for the New Improvements as provided in this Agreement below, the Existing Lease shall automatically terminate;
WHEREAS, the Lessee through the Barans has recognized ability, capable of furnishing restaurant services to the patrons of the 19th Hole, which would be of value to the City in the operation of the Golf Course; and NOW, THEREFORE, in consideration of the promises and of the other good and valuable considerations herein given mutually by one party to the other, the parties hereto agree as follows:

SECTION 1. TERM AND OPTIONS
The initial term of this Lease shall be ten (10) years commencing on the first day of the calendar month of or immediately following the date of the certificate of occupancy for the New Improvements, as defined below (“Commencement Date”), a copy of which certificate of occupancy shall be attached to this Lease by City after issuance. Provided this Lease has not been terminated, and Lessee is not in default, Lessee may exercise an option to extend this Lease for a five (5) year period commencing on the expiration of the initial term (the “Option”). Said Option must be exercised in writing by Lessee at least 30 days prior to commencement of the option term. In the event that any term has expired, but the lessee has not properly exercised the option to renew, and the lessee has not vacated the Premises, then this lease shall revert to a month-to-month lease, with all other provisions remaining in full effect. At that point, either party may terminate the month-to-month lease by giving 30 days’ written notice of termination. Neither City, nor its council members, officers, or employees thereof shall be liable in any manner to Lessee because of any action taken to decline to exercise an option, revoke or disapprove renewal of this Lease.

SECTION 2. 19th HOLE
In consideration for being granted this Lease, Lessee shall have the right and obligation to serve quality food and beverages at the Premises, as defined below, schedule and provide full maintenance of the Premises, as defined below, employ, train and supervise personnel with appropriate qualifications and experience to assist in such functions; perform or supervise employees in the performance of all other tasks related to the operation, maintenance and repair of the Premises, as defined below, and pay for and obtain all licenses and permits necessary for the operation of the 19th Hole including obtaining and maintaining an appropriate liquor license.

The right to operate the 19th Hole and lease rights herein granted to Lessee are exclusive to Lessee and shall include the golf restaurant/snack bar and River Patio; banquet activities; the Colorado Room; the sale of food, beer, wine, and liquor, subject to the liquor license of Lessee. Notwithstanding the foregoing, it is understood and agreed by Lessee that the Pro Shop shall have the right to sell water, sports drinks, soft drinks and prepackaged snacks at such times as the restaurant and/or restaurant kitchen is closed.

Agenda Item 21.
2 SECTION 3. PREMISES
The Premises subject to this Lease are located at The River’s Edge Golf Course Restaurant in Needles, California also known as the 19th Hole described and depicted in Exhibit “A” attached hereto and made a part hereof by this reference. Lessee shall not use or allow the Premises to be used, in whole or in part, during the term of the Lease, for any use not specifically authorized in this Lease or in violation of any present or future laws, ordinances, rules, and regulations at any time applicable to the Premises including, but not limited to the Needles Municipal Code, and in particular all laws, rules and ordinances relating to sanitation, public health, and safety and regulating the sale of alcoholic beverages.

SECTION 4. REPAIRS AND MAINTENANCE
Lessee shall, at its sole cost and expense, keep and maintain the Premises and improvements thereon and all portions thereof including all structural and non-structural portions thereof, electrical and lighting facilities and equipment in, on or about the Premises, building, and interior of the Premises, in good and sanitary order, condition and repair and in compliance with all applicable laws, statutes and ordinances related thereto including any future changes, modifications or additions arising from present or future laws affecting or related to the Premises or any portion thereof and/or the use thereof. Lessee is responsible for daily cleaning of restrooms and routine maintenance of the restrooms. Lessee is responsible maintenance and repairs of the HVAC system and for quarterly servicing of HVAC system (filters, inspection). However, if the cost to repair the HVAC units exceeds 50% of the value of a new unit, as determined by City, City shall pay the cost of the repair or replacement (in the sole discretion of City) of the HVAC units. Lessee waives (to the extent permitted by law) the benefit of the provisions of Sections 1941, 1942, 1955 and 1957 of the California Civil Code, and the right to make repairs at City’s expense under any law, statute or ordinance now or hereafter in effect. City shall not, for any reason, be required or obligated to make any repairs in, on, or about the Premises, or any portion thereof.

City shall be responsible for the repair or maintenance of the roof, foundation and structural walls of the Premises as well as the exterior of the building, the parking lot and the landscaping.

SECTION 5. ACCEPTANCE OF PROPERTY; SURRENDER AT END OF TERM Lessee accepts the Premises in its current condition and repair with all faults and acknowledges that it has completed its own independent investigation and inspection of the Premises and all matters relating thereto. On the last day of the then applicable term of this Lease or sooner termination of this Lease, Lessee agrees to surrender to City the Premises in good and sanitary condition and repair.

SECTION 6. NEW IMPROVEMENTS
(a) New Restaurant Improvements. Lessee shall cause the Barans to make the Premises available to City to make the New Restaurant Improvements prior to the Commencement Date and prior to the expiration of the Old Lease. The Barans shall not be required to pay rent under the Existing Lease during the time that City causes the New Improvements to be constructed and shall hold the City harmless from any loss of business during such period. Prior to the Commencement Date, City and Lessee will cooperate reasonably and in good faith to develop plans for the following improvements and related expenses (“New Improvements”) to the reasonable satisfaction of City and Lessee and to construct the New Improvements:

1. Demolition Per Plan

2. Building Permit(s)

3. Kitchen Improvements (Per Plans)

4. Provide Fixtures and Hardware for Kitchen (Per Plans)

5. Plumbing (Including Grease Interceptor) (Per Plans)

6. Electrical (Including Electrical Panels) (Per Plan)

7. Mechanical/HVAC (Per Plan)

8. Floor Framing Reimbursement & Roof Framing Reinforcement Per Structural Plan

9. Concrete / Asphalt / Striping Per Plan (ADA Parking)

10. Drywall, texture, paint new improvements per plan

11. One 2-Ton Carrier Ductless Mini Split AC with Heat Pump (Per Plan) Lessee Contribution: Lessee shall contribute a minimum of Twenty-Five Thousand Dollars ($25,000) (“Lessee Contribution”) in cash and/or in-kind toward the following expenses incurred by City related to the New Improvements on or before the Commencement Date:

Agenda Item 21.
3 1. Plans (including corrections) from a licensed engineer/architect for the improvements (kitchen, grease interceptor, electric panel and new utility meters)

2. New/Refurbished Equipment (Furniture, Fixtures and Equipment) and or other improvements as approved by the City of Needles which may include, but not limited to, carpet/flooring, floor finish of patio, paint. This may also include the rehabilitation of certain fixtures and improvements, such as the bar in the Colorado River Room.

3. Other Item(s) may be considered for approval at the discretion of the City Manager for the City of Needles or his/her designee.

Lessee shall provide City copies of all invoices and proof of payment for in-kind contributions to be included as part of Lessee’s Contribution. Payment of the cash portion shall be due within five (5) business days of City’s delivery of invoices, receipts or other documentation for the balance of the Lessee Contribution. (b) City to Cause Construction of the New Improvements. Once the plans and specifications for the New Improvements are prepared and this Lease is executed by Lessee and City, City shall cause a contract to be bid and entered into for the New Improvements after which it shall cause the same to be constructed by the selected bidder subject to payment of prevailing wages and other legal requirements and thereafter issue the certificate of occupancy for the Premises which shall trigger the Commencement Date, as defined above
SECTION 7. LESSEE’S STAFFING
The Lessee, in the discharge of the duties and responsibilities herein provided may employ whom Lessee wishes as long as the performance of the incumbent adheres to the normative customer service standards of a quality golf course restaurant. Lessee shall be responsible for providing workers compensation coverage for any employees and shall be responsible for all federal and state payroll withholdings, employer taxes and tax reporting requirements.

SECTION 8. RENT
(a) In consideration of the Lease granted herein, Lessee shall pay a monthly rent in the amount set forth below (“Base Monthly Rental”). The Base Monthly Rent shall be due on or before the _____[insert date rent is due] day of each month. Base Model Rental shall be prorated for partial months based on a thirty (30) day month. Lessee is reminded that time is of the essence. Failure to make any payment by its due date will be a breach of the rental Lease and could result in eviction and/or eliminate the exercise the renewal option(s).

Years 1-5 - $3,150 per month
Years 6-10 - $3,500 per month
Option Years 11-15 - $3,850 per month
(b) Lessee hereby acknowledges that late payment by Lessee to City of rent and other sums due hereunder will cause City to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Thus, if any installment of rent or any other sums due from Lessee shall not be received by City within five (5) days after such amount shall be due, Lessee shall pay to City a late charge equal to ten percent (10%), or such lesser amount as may be required by law, of such overdue amount.

The parties hereto agree that such late charge represents a fair and reasonable estimate of the costs City will incur by reason of any late payment by Lessee. Acceptance of such late charge, together with the overdue amount, by City shall not constitute a waiver of Lessee’s default with respect to such overdue amount only.

SECTION 9. LATE CHARGE AND INTEREST
Lessee hereby acknowledges that late payment will cause the City to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. In the event that rent is not received prior to 5:00 P.M. 5 days beyond the date due, regardless of cause including dishonored checks, Lessee further agrees to pay a late charge to City equal to ten percent (10%) of the late payment. In addition any late payment under this Lease shall accrue interest at the rate of ten percent (10%) per annum.

Agenda Item 21.
4 SECTION 10. BAD CHECK SERVICE CHARGE
In the event Lessee’s check is dishonored and returned for any reason to City, Lessee agrees to pay as additional rental the sum equal to ten percent (10%) of the monthly rent. If for any reason a check is returned or dishonored, City may require that all future rent payments will be by cash or money order.

SECTION 11. LESSEE’S USE OF CITY EQUIPMENT
Lessee shall have the use of such existing equipment owned by the City as now may be located upon the premises and used in connection with the snack bar operations. Lessee agrees to exercise general supervision and responsibility for the proper use and care of all equipment and furniture located upon the premises, which are specifically for the use and convenience of all public users of the Golf Course. The Lessee shall be responsible for coordinating the repair and replacement of equipment at Lessee’s expense. An inventory and inspection of the equipment shall be taken by a representative of each of the parties within 30 days of this Lease being fully executed, and said inventory and inspection report shall be attached to and made a part of this Lease as Exhibit “B”. It is agreed by the parties hereto that an annual inventory and inspection report shall be made on or about January 1 of each year during the life of this Lease.

The City retains title and ownership of all furniture, fixtures and equipment on premises that was on site at or with the commencement of this Lease, equipment attached to the Premises and any equipment that was a replacement for any equipment that was on site at commencement of this Lease. Lessee shall not dispose of any equipment belonging to the City without written consent of the City.

Except as provided otherwise herein, Lessee shall retain any equipment that it placed in service to which it holds title. Any equipment placed in premises by Lessee and purchased or leased by Lessee that is not paid in full at lease termination, may be purchased by the City in consideration for the balance due, or the City may elect to allow Lessee to remove at the option of the City.

SECTION 12. CONTROL OF LEASED PREMISES
The City reserves the right to exercise control and supervision of the portion of the clubhouse premises and facilities available to the public (excluding the restaurant/ snack bar area leased to Lessee herein); and in consideration of the 19th Hole, Lessee agrees to clean and maintain all areas of the clubhouse in good and safe condition. Lessee shall be responsible for payment of all costs to operate the premises, including, but not limited to: purchase of all food, beverage, malt beverages, bottled drinking water, alcoholic beverages, and supplies; personnel payroll costs, workers’ compensation insurance, general liability insurance, liquor license, fees and expenses, health pemit(s), sales and use taxes, and any other costs associated with the operation of the business that are not expressly mentioned in this Lease. Lessee shall inform all vendors that payment for all purchases made on or after the commencement of 19th Hole operations shall be the sole responsibility of the Lessee, and that the City of Needles will not be responsible for the payment of any purchases made on or after Lessee commences operation of the 19th Hole.

SECTION 13. LESSEE’S DUTY TO EXHIBIT PRICE LIST
Lessee shall conspicuously exhibit a list of all prices and charges for food and beverage at all times during the term of this Lease.

SECTION 14. CITY’S DUTY TO PROVIDE UTILITIES; REIMBURSEMENT BY LESSEE The City agrees to furnish to Premises water, wastewater, electric and sanitation for that portion and section of the premises covered by this Lease, as necessary for the operation of such facilities. Lessee shall pay the estimated pro-rated share of the cost of the utilities which costs are agreed to be as follows: 70% of electric and 60% of water for the entire building. City shall invoice Lessee for the cost of the forgoing utilities on a monthly or other basis, and the Lessee shall pay such invoices within thirty (30) days of receipt. Late payment of utility invoices from City be Lessee shall be subject to the same late payment penalty and bad check fee due under Sections 9 and 10 above. Lessee shall maintain and regularly service and clean out the grease trap for the Premises at its sole cost and expense. Lessee shall be responsible to indemnify City from the cost of any maintenance or repair of the septic system caused by Lessee’s failure to regularly maintain and clean out the grease trap. Any additional utility services such as, but not limited to, telephone, cable, internet, natural gas or propane service shall be the sole responsibility of the Lessee. Lessee shall be responsible for paying the share of possessory interest taxes and personal property taxes attributable to the Premises and personal property located on the Premises prior to delinquency. If the property tax bill includes the area of the building not Agenda Item 21.
5 occupied by the Lessee the City shall assist in equitably prorating the tax bill between the Lessee and the City and/or the operator of the golf pro-shop.

SECTION 15. DAYS AND HOURS FOR OPERATING THE 19TH HOLE
Lessee shall maintain regular hours of operation of the 19th Hole consistent with the operating hours of the Golf Course, but may maintain shorter or longer hours of operation with the prior consent written consent of the City Manager provided that such hours of operation are reasonable and customary for a restaurant operating at a golf course.

SECTION 16. DISCLAIMER OF LIABILITY
(a) The City shall not be liable or obligated to Lessee for damage incurred by fire, theft, or other casualty, acts of God, acts compelled by the United States of America and State of California, civil disaster, and such other occurrences and events beyond control of the City. The Parties agree that the City of Needles shall not be liable to Lessee for lost profits or revenues, incidental damages, consequential or special damages or punitive damages.
(b) Lessee shall maintain the premises in an orderly, safe, and clean condition and shall avoid the existence or creation of any conditions, which would be unsafe or hazardous or in any way endanger or harm persons entering thereon.

SECTION 17. NON-ASSIGNABILITY OF LEASE
Lesse shall sublet, assign or otherwise transfer this Lease or any interest in this Lease, except with the express written consent of the City, which shall not be unreasonably withheld or conditioned. Any such unauthorized sublease, assignment or transfer shall be void and of no effect. For purposes of this Lease, it is understood that operation of the Premises by the Barans is anticipated and expected by the City based on their personal qualifications. Therefore, a change in control of Lessee or a transfer or encumbrance by the Barans of a controlling interest in Lessee in one or more transactions over time shall be deemed an assignment hereunder requiring the consent of the City.

SECTION 18. INDEMNITY
Lessee, as a material part of the consideration to be rendered to City, hereby waives all claims against City (i) for damages to Lessee’s personality and/or improvements now or hereafter existing in, upon, or about the Premises and (ii) for injuries to Lessee, its employees, agents or third persons in, on or about the Premises.

Lessee hereby agrees to indemnify, defend and hold harmless City from and against all liabilities, obligations, claims, damages, penalties, causes of action (whether in law, equity or otherwise), costs and expenses (including reasonable attorneys’ fees and costs) imposed upon or incurred by or asserted against City or the Premises by reason of the occurrence or existence after the Commencement Date of any of the following unless the same results solely from the negligence of the City:
(a) any accident, injury to or death of persons (including workers) or loss of or damage to property occurring on or about the Premises or any part thereof or the adjoining sidewalks, curbs, vaults and vault space, if any, streets or ways arising for any reason, act or action; or (b) any use, non-use or condition of the Premises or any part thereof, or the existing or future condition of the improvements thereon, or the adjoining sidewalks, curbs, vaults and vault space, if any, streets or ways; or any failure on the part of Lessee to perform or comply with any of the terms of this Lease; or (c) performance of any labor or services or the furnishing of any materials or other property in respect to the Premises or any part thereof; or
(d) arising from any damage or destruction of any existing or future improvements on the Premises.

In case any action, suit or proceeding in law, equity, or otherwise of any nature, kind or description is brought against City by reason of any such occurrence, Lessee, upon City’s request, will at Lessee’s expense indemnify City and defend such action, suit or proceeding as such costs are incurred by the City SECTION 19. INSURANCE REQUIREMENTS
During the term hereof, Lessee agrees at its sole cost and expense, to provide and maintain at least the following insurance:

Agenda Item 21.
6 (a) Public liability insurance to protect against any liability incident to the use of or resulting from any accident or liability resulting from any act or omission occurring in, on, or about the Premises, the liability coverage under such insurance to be not less than TWO MILLION DOLLARS ($2,000,000.00) for any one person injured, or FIVE MILLION DOLLARS ($5,000,000.00) for any one accident, and ONE MILLION DOLLARS ($1,000,000.00) for property damage;
(b) Casualty insurance for Lessee’s personal property and trade fixtures in an amount not less than one hundred percent (100%) of the full replacement costs of the same which policy shall contain a replacement cost endorsement.
(c) Worker’s Compensation Insurance in the amount required by California law and employer liability coverage covering all employees in the minimum amount of One Million Dollars ($1,000,000); and Comprehensive Liquor Liability Insurance with coverage limits in the minimum amount of One Million Dollars ($1,000,000)
(d) All policies or certificates shall be issued by insurance companies rated A:VII or better in Best’s Key Rating Guide or a reasonably comparable rating if such rating is discontinued, or Lessee may obtain such insurance from such companies as are approved in writing by City. The liability policy shall name City as an additional insured. Each policy shall contain an endorsement providing a waiver, for the benefit of City, of all rights of subrogation which said insurer might otherwise have against City or any agent of City. An appropriate certificate of insurance and endorsements shall be delivered to City at the commencement of the term of said policy or policies and upon each and every renewal of said policy or policies. In the event Lessee fails to obtain, maintain, or keep in full force and effect any or all of the above-described policies of insurance, City may, at its sole discretion, renew or procure such insurance, and the said costs thereof paid by City shall become due and payable to City by Lessee as additional rent at the next rental due date.

SECTION 20. ENTRY BY OWNER
City and its agents shall be permitted to enter the Premises at any time for purposes of inspection, access to the Pro Shop, maintaining the Premises, making repairs or alterations to the Premises, or to post reasonably sized notices of non-responsibility on the Premises; provided, however, that any such entry shall not unreasonably disturb or impair Lessee’s use or enjoyment of the Premises. Except as specifically provided to the contrary in this Agreement, nothing contained in this Lease or this paragraph shall be construed to impose any obligation or liability on City to make or perform any maintenance, repairs or alterations of the Premises.

However, if Lessee fails to make or perform such maintenance, repairs or alterations as are required to be made and performed by Lessee under this Lease, City shall have the right and option to make and perform such maintenance and repairs and Lessee shall be responsible to reimburse City for such costs upon receipt of an invoice for the costs.

SECTION 21. TERMINATION OF LEASE
If Lessee shall fail or refuse to perform or comply with any of the obligations, conditions, or duties herein agreed to by the Lessee, the city shall have the right to notify Lessee in writing of such specific default; and give Lessee ten (10) business days to cure the default. if Lessee does not cure said default within ten (10) business days thereafter, the city may, upon 15 days’ notice, elect to cancel this Lease. Thereupon, this Lease may thereafter be deemed null and void at the election of the city. In the event of termination of this Lease for any reason prior to the termination date herein or at the date of termination, the city shall have the right, in its discretion, to purchase all inventory owned by the Lessee. The purchase price to be paid by the City for inventory shall be the lower of cost or market value. The City will not assume any Lessee’s leases of equipment unless such Lease has been previously reviewed and approved by the city.

SECTION 21. DEFAULT AND REMEDIES
Upon the occurrence of a default by Lessee that is not cured (if curable) within the time periods set forth herein, the City shall have the option to pursue any one or more of the following rights and remedies:
(a) Termination of Lease and Recovery of Damages. The City shall have the right to terminate this Lease and all rights of Lessee hereunder by giving Lessee written notice of the termination. No act of the City shall be construed as terminating this Lease except written notice given by the City to Lessee advising Lessee that the City elects to terminate this Lease. In the event the city elects to terminate this Lease, the City may recover from Lessee:

Agenda Item 21.
7 (i) The worth at the time of award of any unpaid rent that had been earned at the time of termination of this Lease;
(ii) The worth at the time of award of the amount by which the unpaid rent that would have been earned after termination of this Lease until the time of award exceeds the amount of rental loss that Lessee proves could have been reasonably avoided;
(iii) The worth at the time of award of the amount by which the unpaid rent for the balance of the term of this Lease after the time of award exceeds the amount of rental loss that Lessee proves could be reasonably avoided; and
(iv) Any other amount necessary to compensate the City for all detriment proximately caused by Lessee’s failure to perform its obligations under this Lease. The term “rent” as used in this Lease shall mean the Base Monthly Rental and all other sums required to be paid by Lessee pursuant to the terms of this Lease. As used in subsections (a) and (b), above, the “worth at the time of award” is computed by allowing interest at the rate of 10 percent per year. (b) The City’s Right to Continue Lease in Effect After Breach. (i) The City may continue this Lease in effect by not terminating Lessee’s right to possession of the Premises, in which event the City shall be entitled to enforce all its rights and remedies under this lease, including the right to recover the rent specified in this Lease as it becomes due under this Lease. For as long as the City does not terminate this Lease, Lessee shall have the right to assign or sublease the Premises with the City’s prior written consent as provided in the Section above. (ii) No act of the City, including but not limited to the City’s entry on the Premises, efforts to relet the Premises, or maintenance of the Premises, shall be construed as an election to terminate this Lease unless a written notice of that intention is given to Lessee or unless the termination of this lease is decreed by a court of competent jurisdiction.
(c) The City’s Right to Relet. In the event Lessee breaches this Lease, the City may enter on and relet the Premises or any part of the Premises to a third party or third parties for any term, at any rental, and on any other terms and conditions that the City in its sole discretion may deem advisable and shall have the right to make alterations and repairs to the Premises. Lessee shall be liable for all of the City’s costs in reletting, including but not limited to advertising costs, brokerage commissions, legal expenses and attorney’s fees, the cost of placing the Premises in good condition and preparing the Premises for reletting and the costs of any alterations made in connection with such reletting. Any such reletting as provided for herein may be for the remainder of the term of this Lease or for a longer or shorter period.

The City may execute any lease made pursuant to the terms hereof either in the City’s own name or in the name of Lessee or assume Lessee’s interest in and to any existing subleases of the Premises, as the City sees fit and Lessee shall have no right or authority to collect any rent from such sublessee. In the event the City relets the premises, Lessee shall pay all rent due under and at the times specified in this Lease, less any amount or amounts actually received by the City from the reletting. (d) The City’s Right to Cure Lessee Defaults. The City may, but shall not be required to, cure Lessee’s breach. Any sum expended by the City shall be reimbursed by Lessee to the City with the next due rent payment under this Lease.

SECTION 22: NON-DISCRIMINATION/ OTHER LAWS
A. The Lessee agrees that:

1. The Lessee shall observe the provisions of law prohibiting discriminate against any person who is an employee or patron because of race, religion, color, sex, sexual orientation, disability, national origin, ancestry or age;

2. In all solicitations or advertisements for employees, the Lessee shall include the phrase, “equal opportunity employer,” or a similar phrase to be approved by the City;

3. The Lessee further agrees that it shall be Lessee’s responsibility to comply with the California Age Discrimination In Employment Act and the Americans With Disabilities Act (“ADA”) (42 U.S.C. 1201 et seq.) as well as all other federal, state and local laws, ordinances and regulations applicable to the Agenda Item 21.
8 Premises and to furnish any certification required by any federal, state of local governmental agency in connection therewith. Any improvements made to Premises by Lessee shall comply with the ADA.

SECTION 23. PROVISIONS SEPARABLE
It is the intent of the parties hereto in the preparation and execution of this Lease to avoid any conflict with the applicable laws or regulations of the State of California; and if any provision herein is found to be in conflict with the any law or regulation, it is the intent of the parties hereto that such provision shall have no force and effect, and the remainder of the Lease shall be valid as though such conflicting provision had not been written or made a part hereof.

SECTION 24. INDEPENDENT CONTRACTOR
Nothing herein shall make Lessee a partner, joint venturer, employee or agent of the City.

SECTION 25. NOTIFICATION, CHANGES, AND CLAIMS
The Lessee agrees to immediately notify the City in writing of any claims or legal action filed by or against the Lessee or any employee or subcontractor. All notices required or contemplated by this Lease shall be personally served or mailed, postage prepaid and return receipt requested, addressed to the parties as follows:

To The City:

City Manager
City of Needles
817 Third Street
Needles, CA 92363
To the Lesse:
19TH HOLE BAR & GRILL, LLC
(name, title)
1477 Hilltop Drive
Norco, CA 92860
or to such other address as the parties may designate in writing.

SECTION 26. COSTS AND ATTORNEY FEES
In the event of a dispute, lawsuit or arbitration to enforce or interpret the term so of this Lease, the prevailing party shall be awarded its reasonable attorney fees and costs.

IN WITNESS THEREOF, the parties hereto have executed the above foregoing Lease on the date first above written.

CITY: (City of Needles)
BY:

TITLE:

DATE:

Agenda Item 21.
9 ATTEST:

BY:

TITLE:

DATE:

LESSEE:
19th Hole Bar & Grill, LLC, a California limited liability company BY:

Kristin Hoebel, Manager/Member
TITLE:

DATE:

THE UNDERSIGNED SCOTT BARAN ACKNOWLEDGES

THAT THE EXISTING LEASE WILL TERMINATE UPON

THE DATE WHEN THIS LEASE TAKE EFFECT
BY: ______________________________________

SCOTT BARAN
Agenda Item 21.
10 EXHIBIT “A”
(DIAGRAM OF PREMISES)
Agenda Item 21.
11 EXHIBIT “B”
(INVENTORY OF CITY PROPERTY ON PREMISES)
Section 1: Equipment in Use at 19th Hole
A. 3 compartment sink- In use
B. Ice bin- In use
C. 44 black chairs- In use
D. 11 tables- 8 in use
E. Sandwich pizza prep table- In use
Section 2: Equipment in Storage
A. Hot dog rotisserie- In storage
B. 2 round tables- In storage
Section 3: Equipment from 2014 Lease Disposed of or Disposition Unknown A. 2 white freezers- Disposed
B. 1 wells fryer- Disposed
C. 1 star grill- Disposed
D. Ice tea canister- Disposed
E. 7-up cooler- Disposed
F. 3 large wooden tables- Disposed
G. 2 compartment sink- Never seen this item
H. Floor pedal hand washing sink- Never seen this item
Agenda Item 21.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: September 9, 2025
Title: Award Bid to Precise Builders, Inc. for the 19th Hole Bar & Grill Kitchen Remodel Project
Background: The building located at 144 Marina Drive is a City-owned building currently utilized by the River’s Edge Golf Course for a retail golf shop and office space, and it also includes a lease area for the 19th Hole Bar & Grill restaurant. This modular building was placed on the golf course property in the late 1980s after a fire occurred and destroyed the existing building.

Over many years, this building was improved with a full-service kitchen and has been leased to provide food and bar service for golf course patrons. It has also been open to the public for bar and restaurant services.

Recently, the San Bernardino County Health Department issued violations that must be addressed to update the existing kitchen to current Health Department standards and building codes.

Therefore, staff has been working with the current owner to develop kitchen remodel plans to comply with current codes and standards and placed the project out to public bid for said improvements.

This project was advertised for bids on July 2, 2025, and bids were opened on July 31, 2025. The following two bids were received:
• Precise Builders $ 416,699.00
• Red Hawk Services, Inc $ 533,591.01
A bid evaluation has been completed and Precise Builders, Inc., was determined to be the lowest responsive bidder.

The tenant improvements to the 19th Hole Bar & Grill project include adding additional piers and floor framing reinforcement to the existing structure, removing and replacing existing plumbing, installation of an in-ground grease interceptor, electrical panel upgrades including a 400 amp panel, flooring, framing, drywall, texture and paint to the areas requiring modifications.

Award of this project is contingent on approval of City Council of the previous item, Lease Agreement with the owners of the 19th Hole Bar & Grill Restaurant.

Fiscal Impact: Funding for this project is available from Economic Development Funds.

Environmental Impact: The project involves improvements to an existing building and is therefore exempt from review under the California Environmental Quality Act (CEQA).

Recommendation: Award bid to Precise Builders, Inc. for the 19th Hole Bar & Grill Kitchen Remodel Project in the amount of $416,699 plus 20% contingency for a total project cost of $500,039 and authorize staff to execute a Public Works Agreement with Precise Builders, 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:
9/4/2025
Agenda Item 22.

City of Needles
Bid Results for Project 19 th Hole Grill Kitchen Improvements (GC2601 ) Issued on 07/02/2025
Bid Due on July 31, 2025 5:00 PM (PDT)
Exported on 08/01/2025
Line Totals (Unit Price* Quantity)
Item No. Description
1 Mobilization
2 Building Permit
3 Demolition
4 Kitchen Improvements per Plan
5 Provide Fixtures and Hardware per Plan
6 Plumbing per Plan
7 Electrical per Plan
8 Mechanical per Plan
9 Concrete/ Asphalt/ Striping Per Plan
10 2 Ton Carrier Ductless Mini Split AC with heat pump
UOM Quantity Precise Builders Inc.

LS 1 $13,250.00
LS 1 $500.00
LS 1 $29,295.00
LS 1 $110,874.00
LS 1 $15,967.00
LS 1 $89,769.00
LS 1 $92,485.00
LS 1 $5,300.00
LS 1 $45,081.00
Subtotal $402,521.00
LS 1 $14,178.00
Subtotal $14,178.00
Total $416,699.00

KNC CONSTRUCTION, INC
$52,952.26
$500.00
$28,200.00
$83,750.00
$12,400.00
$110,365.00
$140,105.00
$12,350.00
$80,618.75
$521,241.01
$12,350.00
$12,350.00
$533,591.

Agenda Item 22.

THE EXISTING STRUCTURAL SYSTEM WILL REMAIN AS-IS.

NO CHANGES TO THE STRUCTURAL ELEMENTS ARE
PROPOSED. ALL PROPSOED CHANGES ARE TO BE MADE
TO NON-STRUCTURAL ELEMENTS ONLY (AS NOTED). ANY

PLAN CHANGES IN THE FIELD, THAT COULD IMPACT THE

EXISTIING STRUCTURAL SYSTEM, SHOULD BE BROUGHT
TO THE ENGINEER'S ATTENTION IMMEDIATELY.

Digitally signed by
Paul A. Crosby
Date: 2025.02.18
14:35:29-06'00' Anthony Borruel
Agenda Item 22.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: Consider cancelling the November 25 and December 23, 2025, regular City Council / NPUA / HACN meetings.

Background: Staff is requesting Council consideration to cancel the November 25 and December 23, 2025, regular City Council / NPUA / HACN meetings due to the holidays.

If urgency matters arise, the City Council / NPUA / HACN may hold their regular meeting or call a special meeting to conduct business.

Fiscal Impact: None
Recommendation: Cancel the November 25 and December 23, 2025, regular City Council / NPUA / HACN meetings.

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

Other Department Approval (when required): Date:

9/4/2025
Agenda Item 23.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: City Council Resolution 2025-40 of the City Council of the City of Needles Approving the First Amendment to the Utility Manager Employment Agreement with Rainie Torrance Background: On September 12, 2023, the City Council approved an Employment Agreement with Utility Manager Rainie Torrance, which provided for annual performance evaluations and corresponding compensation adjustments.

In consideration of the timing of labor negotiations with the City’s represented employees, the City Manager deferred the Utility Manager’s one-year evaluation and salary adjustment. This approach ensured that compensation decisions for executive management remained consistent and equitable while collective bargaining was underway.

With negotiations now concluded, and the Teamsters receiving a 3% salary adjustment effective this fiscal year, the City Manager recommends applying the same 3% adjustment to the Utility Manager’s salary for 2025 to maintain alignment with represented staff. Additionally, to address the deferred 2024 evaluation, a one-time retention payment of 3% is proposed, mirroring the adjustment provided to employees last year and recognizing the Utility Manager’s continued service during the review deferral period.

The proposed First Amendment to the Employment Agreement reflects these changes and leaves all other provisions of the September 12, 2023 agreement unchanged.

Fiscal Impact: The contract remains within the FY 2026 budget. The amendment provides a 6% ongoing salary increase, raising the Utility Manager’s base salary to $196,100, and a one-time $5,550 (3%) retention bonus to address the deferred 2024 evaluation.

Recommendation: Adopt Resolution 2025-40 Approving a First Amendment to the Employment Agreement with Rainie Torrance for Utility Manager effective September 10, 2025, setting a salary of $196,100 in compliance with SB 1436 and incorporate into the salary schedule FY 2025-2026.

Submitted By: Patrick Martinez, City Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/4/2025
Agenda Item 24.

RESOLUTION NO. 2025-40

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF NEEDLES APPROVING THE FIRST AMENDMENT TO

THE UTILITY MANAGER EMPLOYMENT AGREEMENT WITH RAINIE TORRANCE WHEREAS, at the City Council meeting on September 12, 2023, the Council approved the Employment Agreement (“Agreement”), attached hereto as Exhibit “A,” between the City of Needles (“City”) and Rainie Torrance, setting forth the terms and conditions of her employment as Utility Manager; and
WHEREAS, the City Manager and Council have reviewed the Agreement and renegotiated certain provisions, now set forth in a First Amendment to the Utility Manager Employment Agreement (“Amendment”), attached hereto as Exhibit “B”; and WHEREAS, the Amendment provides for a six percent (6%) adjustment to the Utility Manager’s annual base salary, effective September 9, 2025, resulting in a new annual salary of $196,100, and further provides for a one-time retention bonus of $5,550 (3%) in recognition of service during the deferred 2024 evaluation period; and
WHEREAS, all other provisions of the original September 12, 2023 Agreement remain unchanged and in full effect.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Needles, California, hereby approves the First Amendment to the Employment Agreement between the City of Needles and Rainie Torrance and authorizes the City Manager to sign same for and on behalf of the City of Needles.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 9th day of September 2025 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
APPROVED AS TO FORM:

Lena Wade, Deputy City Attorney
Agenda Item 24.

Exhibit “A”
Employment Agreement Between the City of Needles and Rainie Torrance (September 12, 2023)
Agenda Item 24.

Exhibit “B”
First Amendment to Employment Agreement Between the City of Needles and Rainie Torrance (September 9, 2025)
Agenda Item 24.

UTILITY MANAGER

EMPLOYMENT AGREEMENT
This Utility Manager Employment Agreement (hereinafter referred to as the "AGREEMENT") is entered into and made effective the 12th day of September, 2023, by and between the CITY OF NEEDLES, (hereinafter referred to as the "CITY"), and Rainie Torrance, an individual (hereinafter referred to as "EMPLOYEE"). For purposes of this AGREEMENT, CITY and EMPLOYEE may be collectively referred to as the "Parties" or individually as a "Patty."

RECITALS
WHEREAS, based on EMPLOYEE's qualifications, ability, and performance as the assistant utility manager, the City Manager desires to appoint EMPLOYEE to serve as Utility Manager for CITY; and
WHEREAS, EMPLOYEE desires to perform and assume responsibility for the provision of services to CITY in the position of Utility Manager; and WHEREAS, EMPLOYEE and CITY acknowledge and agree that this Agreement is not covered by and shall supersede any Memorandum of Understanding between City of Needles and the Teamsters Local 1932.; and
WHEREAS, the Parties wish to establish the terms and conditions of EMPLOYEE's provision of professional services to CITY through this AGREEMENT.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, CITY and EMPLOYEE hereby agree as follows:

1. POSITION, DUTIES AND TERM.

1.1 Incorporation of Recitals. The above recitals are incorporated herein and made a part of this Agreement.

1.2 Position. EMPLOYEE accepts employment with CITY as its Utility Manager and shall perform all functions, duties and services set forth in Section 1.5 (Duties) of this Agreement.

1.3 Effective Date of Agreement/Term. The effective date of this Agreement shall be October 7, 2023 (hereinafter, the "Effective Date"). This Agreement is for an unspecified term and is subject to the "At-Will" provision in Section 1.4 and termination provision in Section 4.

1.4 Employment At-Will.
(a) EMPLOYEE's employment status with CITY shall be at-will and terminable with or without cause, at either Party's discretion, subject to the termination provisions provided herein. EMPLOYEE shall serve at the pleasure of the City Manager. EMPLOYEE Agenda Item 24.

Agenda Item 24.
position. EMPLOYEE does not have set hours of work as the Utilities Manager is expected to be available at all reasonable and relevant times.

1.7 Regional and Professional Activities. CITY desires that EMPLOYEE be reasonably active in professional organizations that will promote the standing of CITY and advance CITY's goals, interests and policy objectives while also providing EMPLOYEE with opportunities for the type of professional development that will enhance EMPLOYEE'S ability to serve CITY and perform EMPLOYEE'S duties as Utilities Manager. Toward this end, EMPLOYEE may, upon reasonable notice and approval by the City Manager, join professional organizations and participate in the activities of such organizations in so far as such participation promotes the interests of CITY and does not unduly interfere with the performance of EMPLOYEE's duties as Utilities Manager. CITY agrees to budget and, consistent with that budget, pay for the dues, conference and travel fees, and subscriptions of the Utilities Manager necessary for EMPLOYEE'S participation in national, statewide, regional or professional organizations.

1.8 Non-CITY Activities. In accordance with Government Code Section 1126, during the period of EMPLOYEE'S employment, EMPLOYEE shall not accept any other employment or engage, directly or indirectly, in any other business, commercial, or professional activity whether or not for pecuniary advantage without City Manager approval.

2. COMPENSATION AND BENEFITS AND REIMBURSEMENTS.

2.1 Base Salary. Commencing on the date EMPLOYEE commences full time work with the CITY, EMPLOYEE shall receive a base annual salary of $185,000 per year, (hereinafter, the "Base Salary"). The Parties understand and agree that the amount of the Base Salary, as established for the year 2023, may be adjusted from time-to-time by the City Manager following a performance evaluation, as provided for in Section 2.2 (below). In no event shall EMPLOYEE's base salary adjust automatically pursuant to any mechanism, and in no event shall EMPLOYEE's base salary exceed the maximum amount approved by the City Council, including in the City's Council approved position and salary resolution, the annual operating budget, or other document that may be adopted by the City Council in the future. The Base Salary shall be payable in biweekly installments at the same time and in the same manner as other management employees of CITY. EMPLOYEE's salary shall be subject to customary withholding for taxes and other required deductions.

2.2 Performance Review. On or before the anniversary date of execution of this Agreement, the City Manager will undertake a job performance review of EMPLOYEE. In connection with such performance review, the City Manager may consider any adjustments in EMPLOYEE's compensation consistent with CITY's Council approved salary table. The failure of CITY to undertake a performance evaluation shall not limit CITY' s ability to terminate this Agreement pursuant to Section 4 (Termination).

2.3 Benefits. In addition to Base Salary, CITY shall also provide EMPLOYEE with the following benefits the same as other management employees:
3 Agenda Item 24.
(a) Health Insurance, Life Insurance, and Reimbursements. EMPLOYEE shall be provided with these benefits to the same extent as those benefits are provided to other City management employees.
(b) Business Related Equipment. City shall also provide EMPLOYEE a personal computer (at work) for use in connection with CITY business. CITY shall be responsible for maintenance of said item. EMPLOYEE acknowledges and agrees that EMPLOYEE has no right to privacy with regard to business related equipment, and CITY shall be apprised of any and all passwords at all times.
(c) Participation in Additional CITY Programs. EMPLOYEE shall be eligible to participate in any other CITY program/employment benefits to the extent they are offered to CITY management employees.
(d) Cell Phone Stipend. EMPLOYEE shall receive a cell phone stipend to reimburse EMPLOYEE for business-related costs incurred when using their personally owned cell phone. As of the Effective Date, the monthly cell phone stipend is Fifty Dollars ($50.00). CITY may review and adjust the monthly cell phone stipend from time to time. (e) Holidays and Leave. EMPLOYEE shall accrue vacation leave, sick leave, and other leave as required by state or federal law as provided in the City of Needles Employee Handbook. EMPLOYEE will accrue vacation leave at the level of an employee with fifteen years of service to the CITY. Vacation leave will accrue the same as other management employees. (f) Administrative Leave. In recognition of the number of public meetings Employee is required to attend outside of normal business hours, EMPLOYEE shall be provided with 40 hours per calendar year of administrative leave, pro-rated for portions of a calendar year, on a non-accrual and non-cumulative basis. Said administrative leave may not be converted to cash.
(g) PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) ELIGIBILITY.

The City has contracted with the California Public Employees Retirement System ("CalPERS") for its employees. As used in this Agreement, the terms "Classic Members" and "New Members" shall be the same as those terms are used in the Public Employees' Pension Plan Reform Act of 2013.

As of the Effective Date of this Agreement, EMPLOYEE is a:

Classic Member XXNew Member
EMPLOYEE shall receive the same CalPERS benefits as other management employees of City, as may be amended from time to time by the City in its sole and absolute discretion. The CalPERS benefits are currently as follows:

As to Classic Members, the benefits are the 2% at 55 Modified Formula, and Section 20835.1 (Limit Prior Service to Members Employed on the contract date). To the extent allowed by law, prior service credit will be granted for all years of service with the City of Needles. As to New Members, the Benefits are the 2% at 62 Formula.

3. ILLNESS OR INJURY; DISABILITY AND DEATH.

3.1 Cessation of Work Due to Injury or Disability. In addition to any right of termination set fo11h under Section 1.4 (Employment With CITY "At-Will"), above, CITY also reserves the right to terminate EMPLOYEE's employment along with this Agreement if EMPLOYEE ceases to work as a result of injury or disability which results in EMPLOYEE being 4 Agenda Item 24.
unable to perform the essential duties of the Utilities Manager position, with or without accommodation, for a period of six (6) consecutive months or more, as documented by a healthcare provider. The foregoing notwithstanding, CITY may terminate EMPLOYEE if, in the CITY'S unilateral discretion if the disability poses a direct threat to the safety of CITY, EMPLOYEE or any other employees working for CITY, and any reasonable accommodation attempted by CITY would not mitigate or eliminate such a threat. CITY will not provide a severance payment if EMPLOYEE is terminated under this Section of this Agreement.

3.2 Compensation for Work-Related Illness or Injury. In the event EMPLOYEE suffers a physical or mental illness or disability arising out of the course of employment, EMPLOYEE's exclusive remedy or remedies against CITY for such illness, injury or disability shall be those legally allowed under the workers' compensation laws of the State of California.

The Parties further agree that the California Workers Compensation Appeals Board shall be the exclusive venue for any claim of physical or mental illness or disability arising out of the course of EMPLOYEE'S employment with the CITY.

3.3 Medical Examination. EMPLOYEE agrees to submit to a medical and/or psychological examination by a qualified physician or psychiatrist selected by CITY, in the event the CITY determines a medical and/or psychological examination is needed to make a decision under Sections 3.1 through 3.2. CITY and EMPLOYEE shall receive a copy of all medical reports related to the examination.

3.4 Death of Employee. This Agreement along with EMPLOYEE's employment shall terminate automatically upon EMPLOYEE's death.

3.5 Compensation Upon Termination. Except as otherwise provided under this Agreement, if EMPLOYEE's employment is terminated pursuant to this Section 3 (Illness or Injury; Disability and Death), CITY shall pay EMPLOYEE all Base Salary, benefits, and compensation due and owing EMPLOYEE through the last day actually worked. If termination is caused by EMPLOYEE's death, CITY shall provide the compensation and benefits otherwise due EMPLOYEE to EMPLOYEE's executor, administrator, heirs, personal representatives, successors, and assigns. CITY will not provide for any .. severance payment," as defined in Section 4, if EMPLOYEE is terminated under the provisions of Section 3.1 through 3.5.

4. TERMINATION.

4.1 Termination by CITY for Convenience and Without Cause. CITY may terminate EMPLOYEE at any time for convenience and without cause by providing EMPLOYEE with the applicable "severance payment" provided for below. The "severance payment" shall be an amount equal to nine (9) months Base Salary, less any and all applicable or legally required deductions. EMPLOYEE shall also receive all accrued but unused vacation.

The foregoing notwithstanding, in no event shall the "severance payment" include the payment of any sums prohibited pursuant to Government Code Section 53260-53264, and any such sums shall be deducted from the "severance payment." EMPLOYEE will not receive the severance payment until she executes a full and final release of any and all actual and potential claims (including a Civil Code Section 1542 release/waiver) that EMPLOYEE has or could have 5 Agenda Item 24.
against the CITY, its officials, employees and agents, in a form prepared by and acceptable to CITY. In exchange for receiving the severance payment, EMPLOYEE expressly waives any right or claims she may have related in any way to her employment and/or termination under any applicable law, CITY policy, or otherwise to contest, challenge, litigate, appeal or grieve her termination and/or the terms of this Agreement.

4.2 Termination by Employee. EMPLOYEE may terminate EMPLOYEE'S employment for any reason, and at any time, with or without cause. EMPLOYEE shall not receive a "severance payment" in the event EMPLOYEE terminates his/her employment with CITY pursuant to this Section.

4.3 Termination for Cause by CITY. CITY may immediately terminate EMPLOYEE's employment with CITY and this Agreement at any time by providing EMPLOYEE written notice of EMPLOYEE'S termination for cause and the reason(s) for the termination, and an opportunity for a discussion with the City Manager or the City Manager's designee. In the event the City Manager and EMPLOYEE are unable to resolve any disagreement regarding the cause for EMPLOYEE'S termination, the Parties agree to binding arbitration as provided in Section 6. No "severance payment" shall be paid in the event EMPLOYEE's employment is terminated for cause, except that CITY shall pay EMPLOYEE for all earned but unpaid monthly salary and all accrued and unused vacation, as provided for in this Agreement. The term "cause" shall be defined to include any misconduct materially related to performance of official duties, including but not be limited to any of the following: 1) breach of this AGREEMENT, 2) willful or persistent breach of duties, 3) resume fraud or other acts of material dishonesty, 4) unauthorized absence or leave not otherwise supported by valid documentation from a healthcare provider, 5) conviction of a misdemeanor involving moral turpitude (i.e., offenses contrary to justice, honesty, or morality), conviction of a misdemeanor DUI, or conviction of a felony under California law (the CITY may, in its discretion, place EMPLOYEE on paid or unpaid administrative leave until resolution of charges brought against EMPLOYEE), 6) violation of the CITY's anti-harassment policies and/or a finding that EMPLOYEE engaged in legally prohibited personal acts of harassment, discrimination, and/or retaliation against a CITY official, CITY employee, or any individual protected by state or federal laws prohibiting harassment, discrimination, and/or retaliation, 7) violation of the Needles City Code, ordinances, rules or regulations, including but not limited to the CITY's Employee Handbook, 8) use or possession of illegal drugs, 9) engaging in conduct tending to bring embarrassment or disrepute to the CITY, 10) any illegal or unethical act involving personal gain, 11) pattern ofrepeated failure to carry out materially significant and legally constituted directions or policy decisions of the City Council or City Manager, or 12) gross misfeasance, insubordination or gross malfeasance.

4.4 Termination Obligation. EMPLOYEE agrees that all property, including without limitation, all equipment, tangible, Proprietary Information (as defined below), credit cards, keys, passwords, cell phones, tablets, pagers, documents, records, notes, contracts, and computergenerated materials furnished to or prepared by EMPLOYEE incident to EMPLOYEE'S employment are the property of CITY and shall be returned promptly to CITY upon termination ofEMPLOYEE's employment. EMPLOYEE's obligations under this subsection shall survive the termination of EMPLOYEE'S employment and the expiration or early termination of this Agreement.
6 Agenda Item 24.

4.5 Benefits Upon Termination. All benefits to which EMPLOYEE is entitled under this Agreement shall cease upon EMPLOYEE's termination, unless expressly continued under this Agreement, under any specific written policy or benefit plan applicable to EMPLOYEE, or unless otherwise required by law.

5. CONFLICT OF INTEREST.

5.1 EMPLOYEE shall not, during the term of this Agreement, individually, as a partner, JOmt venture, officer or shareholder, invest or participate in any business venture conducting business in the corporate limits of CITY, except for stock ownership in any company whose capital stock is publicly held and regularly traded, without prior approval of the City Manager and City Council. EMPLOYEE shall also be subject to the conflict of interest provisions of the Government Code of the State of California, the Needles City Code, and any other conflict of interest regulations applicable to EMPLOYEE's employment with CITY. For and during the Term of this Agreement and any extension term, EMPLOYEE further agrees that except for a personal residence or residential property acquired or held for- future use as EMPLOYEE'S personal residence, EMPLOYEE will not invest in any other real estate or property improvements within the corporate limits of CITY without the prior consent of the City Manager and City Council.

6. ARBITRATION OF DISPUTES.

Any claim, dispute, or controversy which would otherwise require or allow resort to any court or other governmental dispute resolution forum between EMPLOYEE and CITY arising from, related to, or having any relationship or connection whatsoever with EMPLOYEE'S employment or the terms of this Agreement, whether based on tort, contract, statutory, or equitable law, or otherwise, shall be submitted to and determined exclusively by binding arbitration under the Federal Arbitration Act, in conformity with the procedures of the California Arbitration Act (Cal.

Code Civ. Proc. sec 1280 et seq.), including section 1283.05 and all of the Acts other mandatory and permissive rights to discovery); provided, however, that: in addition to requirements imposed by law, any arbitrator herein shall be a retired California Superior Court Judge and shall be subject to disqualification on the same grounds as would apply to a judge of such court. If for any reason the Parties cannot agree to an arbitrator, either Party may apply to a court of competent jurisdiction with authority over the location where the arbitration will be conducted for appointment of a neutral arbitrator. The court shall then appoint an arbitrator, who shall act under this Agreement with the same force and effect as if the Parties had selected the arbitrator by mutual agreement.

The arbitrator shall then prescribe the rules and procedures for the arbitration process in accordance with laws that are applicable to the claim being raised. EMPLOYEE understands that by agreeing to this binding arbitration provision, both CITY and EMPLOYEE give up their right to a trial by JUlY.

7. GENERAL PROVISIONS.
7 .1 Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be effective upon delivery by hand or three (3) business days after deposit in the United States mail, postage prepaid, certified or registered, and addressed 7 Agenda Item 24.

Agenda Item 24.

7.4 Amendments. This Agreement may not be amended except in a written document signed by EMPLOYEE, approved by the City Manager, City Council and signed by the City Attorney.

7.5 Waiver. Failure to exercise any right under this Agreement shall not constitute a waiver of such right.

7.6 Assignment. EMPLOYEE shall not assign any rights or obligations under this Agreement. CITY may, upon prior written notice to EMPLOYEE, assign its rights and obligations hereunder.

7.7 Severability. If any court of competent jurisdiction holds any provision of this Agreement to be invalid, unenforceable, or void, the remainder of this Agreement shall remain in full force and effect.

7.8 Governing Law. This Agreement is entered into and is to be performed in San Bernardino County, California and shall be governed by and construed in accordance with the controlling laws of the State of California or federal law, whichever is applicable, and the Parties agree that venue in any court proceeding shall be in San Bernardino County, California.

7.9 Interpretation. This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. By way of example and not in limitation, this Agreement shall not be construed in favor of the party receiving a benefit or against the party responsible for any particular language in this Agreement. Captions are used for reference purposes only and should be ignored in the interpretation of the Agreement. This Agreement shall not be construed in favor of or against a party on the grounds that they drafted the Agreement or language in dispute.

7.9 Statutory Obligations
a. Abuse of Office or Position. Pursuant to California Government Code Sections 53243, 53243.1 and 53243.2, which became effective on January 1, 2012, if EMPLOYEE is convicted of a crime involving an abuse of EMPLOYEE'S office or position, all of the following shall apply: (1) if EMPLOYEE is provided with an administrative leave pay pending an investigation, EMPLOYEE shall be required to fully reimburse such amounts paid by CITY; (2) if CITY pays for the criminal legal defense of EMPLOYEE (which would be in its sole discretion, as CITY is generally not obligated to pay for a criminal defense), EMPLOYEE shall be required to fully reimburse such amounts paid by CITY; and (3) if this Agreement is terminated, any cash settlement related to the termination of EMPLOYEE by CITY, said amount shall be fully reimbursed to CITY or shall be void if not yet paid to EMPLOYEE. For this Section, abuse of office or position means either: (1) an abuse of public authority, including waste, fraud, and violation of the law under the color of authority; or (2) a crime against public justice, including a crime described in Title 7 commencing with section 92 of the California Penal Code. b. Maximum Cash Settlement Upon Termination of Agreement. Pursuant to California Government Code Sections 53260 and 53261, regardless of the term of this Agreement, 9 Agenda Item 24.

Agenda Item 24.

Agenda Item 24.
• Organizational and management practices as applied to analysis and evaluation of program, policies, and operational needs.

Ability to:
• Plan, organize and administer major utility functions. • Analyze complex issues and problems and recommend effective resolutions. • Monitor contractual performance and oversee agreements. • Develop and monitor complex capital and operating budgets. • Motivate and lead employees.
• Communicate clearly and concisely, orally and in writing. • Interact effectively with staff, the public, officials, and representatives of business and other agencies.

ESSENTIAL POSITION REQUIREMENTS:

A bachelor's degree in electrical engineering, Civil Engineering, Public Administration, Accounting, or related field and five (5) year of electrical, water and wastewater system operation experience that includes three (3) years of management and/or supervision, or an equivalent combination of education and experience as determined by the City.

Experience in the design and construction of electrical substations, transmission and distribution is desirable.

MARGINAL POSITION REQUIREMENTS:

1. Must possess a valid state driver's license with a satisfactory driving record

2. Ability to pass pre-employment physical and drug test.

3. Must possess a valid state driver's license with a satisfactory driving record

4. Ability to: Reach, turn, bend or stoop, move from one location to another.

Must be able to meet physical requirements of position including lifting and handling weights more than 50 pounds, standing, sitting, walking, bending, stooping. and climbing

5. Frequent: speak clearly and correctly, sit for long periods, hear, handle, climb.

Visual acuity near, less than 20 inches.

6. Perform one or more of the following functions simultaneously: Reach, turn, move, bend or stoop, from one position to another, handle materials, read, write, speak, sit and hear.

ENVIRONMENTAL EXPOSURES:

Those typically encountered in a construction environment. =============================---------------------------== 3 Agenda Item 24.

PAGE 1 OF 2

FIRST AMENDMENT TO

UTILITY MANAGER EMPLOYMENT AGREEMENT
This FIRST AMENDMENT TO UTILITY MANAGER EMPLOYMENT AGREEMENT (“AMENDMENT”) is made and entered into as of September 9, 2025 (“EFFECTIVE DATE”), by and between the City of Needles, a California charter city hereinafter referred to as “CITY” and Rainie Torrance, an individual hereinafter referred to as “EMPLOYEE.” CITY and EMPLOYEE may be referred to individually as a “PARTY” and collectively as the “PARTIES.”

RECITALS
WHEREAS, the PARTIES entered into that certain Utility Manager Employment Agreement dated September 12th, 2023 (“AGREEMENT”); and
WHEREAS, EMPLOYEE agreed to provide Services as the Utility Manager to the CITY on an “at-will” employment status, terminable with or without cause at either PARTY’s discretion, with compensation being an annual salary of One Hundred Eighty-Five Thousand Dollars ($185,000); and WHEREAS, the PARTIES now desire to amend the AGREEMENT to provide EMPLOYEE with (i) a six percent (6%) increase to EMPLOYEE’s annual base salary thereby increasing her Amended Salary to One Hundred Ninety-Six Thousand One Hundred Dollars ($196,100), and (ii) a one-time retention bonus in the amount of Five Thousand Five Hundred Fifty Dollars ($5,550); and WHERAS, Section 7.4 of the AGREEMENT states that no supplement, modification, or amendment of the AGREEMENT shall be binding unless executed in writing, approved by the City Manager, Employee, City Council and signed by the City Attorney and by both PARTIES.

NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, CITY and EMPLOYEE agree as follows:

1. Incorporation of Recitals. The PARTIES hereby agree that the recitals set forth in this AMENDMENT are deemed incorporated into this AMENDMENT and the AGREEMENT by this reference.

2. Definitions. All capitalized terms used but not defined in this AMENDMENT shall have the meanings ascribed to them in the AGREEMENT.

3. Amendment to Section 2.1. The PARTIES hereby agree that Section 2.1 of the AGREEMENT is hereby amended and replaced with the following:
“2.1 Base Salary. Commencing on the EFFECTIVE DATE of this AMENDMENT, EMPLOYEE’s annual base salary shall be increased by six percent (6%), resulting in a new annual base salary of One Hundred Ninety-Six Thousand One Hundred Dollars ($196,100) (hereinafter, the “Amended Salary”). The Parties understand and agree that the amount of the Amended Salary, as established for the year 2025, may be adjusted from time-to-time by the City Manager following a performance evaluation, as provided for in Section 2.2 of the AGREEMENT. In no event shall EMPLOYEE’s Amended Salary adjust automatically pursuant to any mechanism, and in no event shall EMPLOYEE’s Amended Salary exceed the maximum amount approved by the City Council, including in the City’s Council approved position and salary resolution, the annual operating budget, or other document that may be adopted by the City Council in the future. The Amended Salary shall be payable in bi-weekly installments at the same time and in the same manner as other management employees of CITY. EMPLOYEE’s salary shall be subject to customary withholding for taxes and other required deductions.”

4. Retention Bonus. In addition to the Base Salary, EMPLOYEE shall receive a one-time retention bonus in the gross amount of Five Thousand Five Hundred Fifty Dollars ($5,550), payable within thirty (30) days of the Effective Date of this AMENDMENT. The retention bonus shall be subject to customary withholding for taxes and other required deductions.

Agenda Item 24.

PAGE 2 OF 2

5. All other terms of the AGREEMENT not expressly amended by this AMENDMENT shall remain in full force and effect.

6. This AMENDMENT shall be governed by the laws of the State of California. Any legal action arising from or related to this AMENDMENT shall be brought in the state or federal courts of the State of California in and for the County of San Bernardino.

IN WITNESS WHEREOF, the PARTIES hereby have made and executed this AMENDMENT to be effective as of the day and year first above written.

CITY OF NEEDLES, CALIFORNIA RAINIE TORRANCE
By: By:

Title: Title:

Date: Date:

ATTEST:

CITY CLERK CANDACE CLARK
APPROVED AS TO FORM:

DEPUTY CITY ATTORNEY LENA WADE
Agenda Item 24.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 9, 2025
Title: Ordinance 675-AC adding Chapter 11A, Camping, to the Needles Municipal Code, establishing regulations prohibiting camping on public property. 2nd Read Adopt Background: Ordinance 675-AC was introduced for approval at the July 8, 2025, Regular NPUA/HACN/City Council Meeting. A motion and a second were made, and the Ordinance was approved by a 5-1 vote in favor.

On March 25, 2025, the City Council directed staff to address unauthorized camping at the El Garces. This action follows recent legal and executive developments that have reshaped how municipalities can manage public spaces impacted by homeless encampments.

Notably, the U.S. Supreme Court ruling in Grants Pass v. Johnson (2024) affirmed that cities may enforce camping ordinances, provided basic shelter options are available. In response, Governor Gavin Newsom issued an executive order on July 25, 2024, mandating that local governments adopt and enforce policies to address the increasing public health and safety concerns related to encampments across California.

Since then, numerous cities have adopted updated anti-camping ordinances—some restricting camping in all public areas. The City of Needles currently has a camping ordinance on the books, but it is outdated and does not reflect the authority or expectations set forth in the Governor’s order or recent case law.

In recent months, City staff have coordinated with the San Bernardino County Sheriff’s Department to respond to several incidents requiring intervention. These efforts have highlighted the need for a clear, enforceable ordinance that both protects public spaces and connects unsheltered individuals with available resources.

On April 8, 2025, at a regularly scheduled City Council meeting, City Council directed staff to develop an Anti-Camping Ordinance.

Fiscal Impact: Minimal cost for signage.

Recommendation: Adopt Ordinance 675-AC adding Chapter 11A, Camping, to the Needles Municipal Code, establishing regulations prohibiting camping on public property.

Submitted By: Bernard Hatz II, Senior Code Enforcement Officer City Manager Approval: Date:

Other Department Approval (when required): Date:

Agenda Item 25.

ORDINANCE NUMBER 675-AC

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA, ADDING CHAPTER 11A, CAMPING, TO THE NEEDLES MUNICIPAL CODE WHEREAS, on June 28, 2024, the United States Supreme Court issued its ruling in Grants Pass v. Johnson, which among other things, held that the Eighth Amendment does not prohibit cities from enforcing laws regulating camping on public property; and WHEREAS, following the Grants Pass decision, Governor Newsom issued an executive order directing state agencies and departments to adopt clear policies that urgently address encampments, and encouraging local agencies to take proactive steps to remove the same; and WHEREAS, the City Council has determined that it is necessary to address encampments, which subject individuals living in them to unsanitary conditions, extreme weather, predatory and criminal activity, and widespread substance use, among other things, harming their health, safety, and wellbeing, and which also threaten the safety and viability of nearby businesses and neighborhoods and undermines the cleanliness and usability of parks and other public facilities; and WHEREAS, this Ordinance is enacted to preserve the public peace, health, safety, and welfare.

NOW, THEREFORE, the City Council of the City of Needles does ordain as follows:

SECTION 1. Incorporation of Recitals. The recitals reflected above are true and correct and incorporated herein by this reference as the cause, purpose, and foundation for the action taken by the City Council through this Ordinance.

SECTION 2. CEQA. Pursuant to section 15060(c)(2) of the California CEQA Guidelines, adoption of the subject Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and therefore is not subject to CEQA. Additionally, pursuant to section 15060(c)(3) the activity is not a “project” as defined in section 15378 because it has no potential for resulting in physical change to the environment, directly or indirectly.

SECTION 3. Findings. The City Council HEREBY FINDS AND DETERMINES that facts do exist to approve an amendment to the Needles Municipal Code ("Needles Code").

SECTION 4. Approval. The City Council HEREBY APPROVES Ordinance 675-AC amending the Needles Municipal Code by adding Chapter 11A “Camping” as set forth on Exhibit A, which Exhibit is attached hereto and incorporated herein by this reference.

SECTION 5. Effective Date. This action shall become final and effective thirty (30) days after the adoption of this Ordinance by the City Council as provided by the Needles Code.

SECTION 6. Severability. If any section or provision of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this Ordinance shall remain valid. The City Council hereby declares that it would have adopted this Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation.

SECTION 7. Certification. The City Clerk shall certify the introduction and adoption of this Ordinance.

Agenda Item 25.

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 8 th day of July 2025, by the following roll call vote:

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 9
th day of September 2025.

AYES:

NOES:

ABSENT:

NOES:

ABSENT:

ABSTAIN:

COUNCIL MEMBERS FORD, MCCORKLE, CAMPBELL, POGUE, BELT

COUNCIL MEMBER LONGBRAKE
NONE
NONE
Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
Agenda Item 25.

Exhibit A
Chapter 11A “CAMPING”
11A.1 - Purpose
The streets and public areas within the City should be readily accessible and available to residents and the public at large. Using these areas for camping purposes or storage of personal property interferes with the rights of others to use the areas for which they were intended. Such activity can constitute a public health and safety hazard that adversely impacts neighborhoods and commercial areas, as well as poses a danger to the individuals living in them. Furthermore, Camping on private property without the consent of the owner, proper sanitary measures, and for other than a minimal duration, adversely affects private property rights as well as the public health, safety, and welfare of the City.

The purpose of this chapter is to maintain streets, parks, and other public and private areas within the City in a clean, sanitary, and accessible condition and to adequately protect the health, safety, and public welfare of the community and its residents. Nothing in this chapter is intended to interfere with otherwise lawful and ordinary uses of public or private property.
11A.2 - Definitions
"Camp" means to place, pitch, erect, or occupy camp facilities, or to use camp paraphernalia for the purpose of, or in a way that facilitates outdoor sheltering for living accommodation purposes or for remaining outdoors overnight; or to live temporarily in a camp facility or outdoors.
"Camp facilities" include one or more temporary, makeshift, or hand-built structures or shelters not intended for long-term or continuous occupancy, and include, but are not limited to, tents, huts, vehicles, vehicle camping outfits or other temporary shelter. "Camp paraphernalia" means personal property used to facilitate occupancy of an area, and includes, but is not limited to, bedrolls, bedding, tarpaulins, cots, beds, sleeping bags, hammocks, cooking facilities, camp stoves, buckets and similar equipment, mattresses, couches, dressers or other furniture.
"City Manager" means the City Manager or designee.
"Establish" means setting up or moving equipment, supplies, or materials onto public or private property to Camp or operate Camp facilities.
"Maintain" means keeping or permitting equipment, supplies or materials to remain on public or private property in order to Camp or operate Camp facilities.

Agenda Item 25.

Chapter 11A “CAMPING”
"Operate" means participating in or assisting in establishing or maintaining a Camp or Camp facility.
"Store" means to put aside or accumulate for use when needed, to put aside for safekeeping, to place or leave in a location.
"Stored personal property" means any tangible property a person may deposit in a location with an intent to recover at a later time. Tangible property includes, but is not limited to, goods, materials, merchandise, tents, tarpaulins, bedding, sleeping bags, hammocks, and personal items such as luggage, backpacks, clothing, documents, medication, and household items. Stored personal property excludes intentionally discarded refuse, trash, and/or tangible property.
11A.3 - Unlawful Camping.

A. Except as provided in this Code, it is unlawful and a public nuisance for any person to Camp; to occupy, establish, maintain, or operate any Camp facilities, or use Camp paraphernalia for the purpose of establishing or maintaining a temporary shelter in the following areas:

1. Any public property; or

2. Any private property.
a. This chapter does not intend to prohibit overnight camping on private residential property by friends or family of the property owner, so long as the owner consents and the overnight camping is limited to not more than one consecutive night. In addition, this chapter is not intended to prohibit overnight camping on public property as required by State or Federal law.
b. Nothing in this chapter is intended to prohibit or make unlawful activities of an owner of private property or other lawful user of private property that are normally associated with and incidental to the lawful and authorized use of private property for residential or other purposes; and provided further, nothing in this chapteris intended to prohibit or make unlawful, activities of a property owner or other lawful user if such activities are expressly authorized by the Needles Municipal Code or other laws, ordinances, and regulations.

B. Notwithstanding the above, the City Manager, as provided in Section 12-35 and Chapter 15A of this Code, may issue a temporary permit to allow camping on public or private property in connection with an Outdoor Festival, Recreational Use, or as otherwise permitted by this Code.

Agenda Item 25.

Chapter 11A “CAMPING”
C. This Section shall not apply to any event involving camping that is approved or sponsored by the City, or to any person Camping, occupying Camp facilities, or using Camp paraphernalia on public property specifically designated for such purposes. 11A.4 - Unlawful Storage of Personal Property on Public and Private Property.

It shall be unlawful and a public nuisance for any person to leave stored personal property on public property or private property without the consent of the property owner or except as otherwise approved by the City Manager, Police Chief, or any of their designees.

Stored personal property left on public or private property in violation of this section may be impounded pursuant to the provisions of this chapter. 11A.5 - Impounding Stored Personal Property
A. The Police Chief, or designee, is authorized to impound stored personal property located on public property or private property without the consent of the property owner pursuant to the provisions of this chapter. The Police Chief is authorized to adopt written policies and procedures to implement the provisions of this chapter. Nothing in this chapter shall be construed to limit or otherwise interfere with State law regarding the impounding of evidence related to a crime.

B. Stored personal property may be impounded and disposed of without notice if there is cause to reasonably believe that the stored personal property is:

1. Perishable.

2. Contaminated with feces, urine, or bodily fluid.

3. Infested with insects.

4. Contaminated with mold or mildew.

5. Intentionally discarded.

6. An immediate threat to public health or safety.

C. Stored personal property may be impounded without notice if there is cause to reasonably believe that the stored personal property is:

1. Evidence of a crime; or

2. Evidence in a criminal investigation; or

3. Unlawful to possess.

Agenda Item 25.

Chapter 11A “CAMPING”
D. Except as provided above, stored personal property located on public property or private property without the consent of the property owner may be impounded after providing 24 hours actual or posted notice as provided in this section.

E. Actual notice shall be deemed provided by placing on or near the stored personal property with a writing containing the following information:

1. A general description of the stored personal property.

2. The location of the stored personal property.

3. The date and time the notice was placed; and

4. A statement that the stored personal property has been deposited in violation of Chapter 11A.4 and will be impounded by the City if the stored personal property is not removed within 24 hours of issuance of actual notice.

F. Posted notice shall be deemed provided by erecting at least one sign in a conspicuous place stating that any stored personal property found in a described area may be removed and impounded if not claimed and removed within 24 hours after being discovered. The sign shall provide a phone number and address where a person may receive information to recover his or her personal property.

G. After the notice period has expired, the stored personal property shall be deemed abandoned and may be impounded. Prior to impounding stored personal property, the City will provide notice in a conspicuous place at or near where the stored personal property was located with the following information:

1. A general description of the stored personal property.

2. The location of the stored personal property.

3. The date and time the notice was placed; and

4. A statement that the stored personal property has been impounded by the City and the process to re-claim the stored personal property.
11A.6 - Impounding Personal Property after Closure
Notwithstanding Section 11A.5, any stored personal property located in any area that is posted with conspicuous signs indicating the area is closed to the public may be immediately impounded without notice. The posted signs must contain language indicating that all stored personal property found during the hours the area is closed will be impounded. The sign shall describe where the stored personal property will be stored, Agenda Item 25.

Chapter 11A “CAMPING”
including a telephone number and the address where a person may receive information regarding how to recover the stored personal property.
11A.7 - Storage and Disposal of Impounded Personal Property A. Stored personal property that is impounded pursuant to this chapter shall be stored by the City for a period of 90 days. If the owner of the stored personal property is reasonably ascertainable, the Police Chief, or designee, shall promptly notify the owner of the procedure to claim his or her personal property.

B. The Police Chief, or designee, shall return the stored personal property to its owner upon presentation of satisfactory evidence of ownership.

C. In the event the stored personal property is not claimed within 90 days, it may be subject to disposition as determined by the Police Department and in accordance with applicable State and Federal statutes.
11A.8 – Violation - Penalty
In the discretion of the Enforcement Officer, any person violating the provisions of this Chapter shall be subject to penalties as provided in the City of Needles Charter Section 520, Needles Municipal Code Chapter 1.7, and/or issued an administrative citation pursuant to Needles Municipal Code Chapter 2A. In either case, the amount of the fine shall be the appropriate amount set forth in this Code. Each such violation shall be deemed a separate offense as specified in Section 1.7 and 2A.03, respectively. 11A.9 - Severability.

If any provision of this chapter is rendered illegal, invalid, or unenforceable, all other parts of this chapter shall remain in full force and effect.

Agenda Item 25.

Page 1 of 3 ends

Needles City CouncilSeptember 9, 2025

Needles City Council
September 9, 2025