(ACT) ACTION NEEDED
(INF) INFORMATION ONLY
(DIS) DISCRETIONARY
AGENDA
REGULAR MEETING OF THE CITY COUNCIL
NEEDLES PUBLIC UTILITY AUTHORITY
HOUSING AUTHORITY CITY OF NEEDLES
CITY OF NEEDLES, CALIFORNIA
COUNCIL CHAMBERS, 1111 BAILEY AVENUE.
TUESDAY, SEPTEMBER 23, 2025
COUNCIL EXECUTIVE SESSION – 5:00 PM
CITY COUNCIL MEETING – 6:00 PM
THE PUBLIC MAY ATTEND VIA TEAMS AND MAY SUBMIT ANY COMMENTS IN WRITING PRIOR TO NOON ON THE DAY OF THE MEETING BY EMAILING [email protected] TO JOIN THE LIVE TEAMS MEETING: log into the City of Needles website at www.cityofneedles.com to access the agenda and Click here to join the meeting If asked, enter the following: Meeting ID: 307 047 218# OR listen in and participate by calling Teams: 1-323-488-2227 - Meeting ID: 307 047 218# The meetings are being recorded.
CALL TO ORDER
ROLL CALL
PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION ITEMS A three-minute time limit per person has been established.
RECESS TO EXECUTIVE SESSION
EXECUTIVE SESSION
a. Public Employee Performance Evaluation Pursuant to Govt Code Section 54957. Title: City Manager
b. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Government Code section 54956.9(d)(1) City of Needles v. Tonita Reed, et al.
Superior Court of the County of San Bernardino CIVSB2316434. c. Conference with Labor Negotiator Pursuant to Government Code Section 54957.6 Agency Negotiator: City Manager Patrick Martinez or his designee. Unrepresented Employee: Development Services Director/Capital Projects
CALL TO ORDER
ROLL CALL
EXECUTIVE SESSION REPORT - by City Attorney
PLEDGE OF ALLEGIANCE
INVOCATION
APPROVAL OF AGENDA
CONFLICT OF INTEREST
CORRESPONDENCE
INTRODUCTIONS
CITY ATTORNEY – Parliamentary Procedures
As a courtesy to those in attendance, we would ask that cell phones be turned off or set in their silent mode. Thank you
PUBLIC APPEARANCE - Persons wishing to address the NPUA / City Council on subjects other than those scheduled are requested to do so at this time. When called by the Mayor, please announce your name and address for the record. In order to conduct a timely meeting, a three-minute time limit per person has been established by Municipal Code Section 2-18. Amendments to the California Government Code Section 54950 prohibits the City Council from taking action on a specific item until it appears on the agenda.
PRESENTATION
(A ten-minute time limit per presentation has been established per Municipal Code Section 2-18.)
INTERVIEWS
1. Interviews / appointments to fill the vacancies on the Housing Commission and the Cemetery Advisory Board. CONTINUED TO OCTOBER 14, 2025.
NPUA / COUNCIL CONSENT CALENDAR
All matters listed on the Consent Calendar are considered to be routine and will be enacted by one motion in the form listed. The Mayor or any member of the NPUA / City Council may pull an item from the Consent Calendar for discussion. Prior to NPUA / Council action, a member of the public may address the NPUA / City Council on matters scheduled on the Consent Calendar. A three-minute time limit per person applies. RECOMMENDED ACTION: Approve Items 2 through 3 on the Consent Calendar by affirmative roll call vote (ACT)
END OF NPUA CONSENT CALENDAR
REGULAR NPUA / COUNCIL ITEMS
2. Adopt Resolution 2025-41 Establishing a Joint Pole Rate of $15.10 Effective December 1, 2025, and $22.41 Effective December 1, 2026 (ACT)
3. Approve Change Order #1 to the Public Works Agreement with Pyramid Building and Engineering, Inc. for the Water Main and Manifold Improvements Project resulting in an increase to the contract in the amount of $89,700.82 for a new total contract amount of $1,218,376.82; and authorize staff to execute said Change Order. (ACT)
COUNCIL CONSENT CALENDAR All matters listed on the Consent Calendar are considered to be routine and will be enacted by one motion in the form listed. The Mayor or any member of the City Council may pull an item from the Consent Calendar for discussion. Prior to Council action, a member of the public may address the City Council on matters scheduled on the Consent Calendar. A threeminute time limit per person applies. RECOMMENDED ACTION: Approve Items 4 through 8 on the Consent Calendar by affirmative roll call vote. (ACT)
4. Approve the Warrants Register through September 23, 2025
5. Approve the Minutes of September 9, 2025
6. Accept and File the August 2025 Treasurer’s Report
7. Approve site location and architectural proposal for design of a new metal building for Dial-A-Ride (DAR) vehicles and accept the proposal from Selberg and Associates for architectural design services in the amount of $14,950.
8. Authorize the Mayor to sign a letter of support for the Palo Verde Healthcare District and Palo Verde Hospital in their efforts to restore suspended services and secure long-term sustainability as identified in the LAFCO Municipal Service Review.
END OF COUNCIL CONSENT CALENDAR
REGULAR COUNCIL ITEMS
9. Accept Proposal from Disability Access Consultants (DAC) to Provide Consultant Professional Services for an Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan for the City of Needles’ Public Facilities, Parks and Public Rights-of-Way for a total project cost of $37,900 to be funded by CJPIA in the amount of $23,500 and the City portion of $14,400 to be added to the FY26 General Fund Budget.
10. Renaming Ed Parry Field and Phillips Field Complex. (ACT)
11. Provide Staff Direction on the proposed renaming of Quinn Court. (DIS)
12. Employee Appreciation Event (DIS)
CITY ATTORNEY REPORT
CITY MANAGER REPORT
City Manager's Reports for the weeks of September 5 and 12, 2025
COUNCIL REQUESTS
Council Member Ford
Council Member McCorkle
Vice Mayor Campbell
Council Member Pogue
Council Member Belt
Council Member Longbrake
Mayor Jernigan
ADJOURNMENT
INTERNET ACCESS TO CITY COUNCIL AGENDAS AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT: http://www.cityofneedles.com Posted: September 19, 2025
SB 343-DOCUMENTS RELATED TO OPEN SESSION AGENDAS -- Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the City Clerk’s Office, 817 Third Street, Needles, CA 92363.
In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (760) 326-2113 ext 133. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-104 ADA Title II).
I hereby certify, under penalty of perjury under the laws of the State of California that the foregoing Agenda was posted at the front entrance of City Hall not less than 72 hours prior to the meeting.
Dated this day 19th of September 2025
/s/ Candace Clark, CPMC, CMC, City Clerk
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 23, 2025
Title: Interviews / appointment to fill the vacancies on the Housing Commission and the Cemetery Advisory Board.
Background: The City Clerk posted and published the vacancies in the Needles Desert Star on September 3 and 10, 2025. Vacancies are as follows:
Housing Commission: One vacancy, with a term to expire December 31, 2027. The Commission meets on the fourth Wednesday of each month at 4:00 pm
Cemetery Advisory Board: Three vacancies as follows: One with a term to expire December 31, 2027, and two with terms to expire December 31, 2026. The Board meets on the third Thursday quarterly in January, April, July, and October at 3:00 pm.
Recommended Action: Appoint to the Housing Commission , with a term to expire December 31, 2027.
Appoint to the Cemetery Advisory Board ,
with a term to expire December 31, 2027.
Appoint to the Cemetery Advisory Board ,
and , with terms to expire December 31, 2026.
Submitted By: Candace Clark, City Clerk
City Manager Approval: Date:
Other Department Approval (when required): Date:
Agenda Item 1.
CONTINUED
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 23, 2025
Title: Resolution 2025-41 Establishing a Joint Pole Rate of $15.10 Effective December 1, 2025, and $22.41 Effective December 1, 2026 Background: As part of the 2025 rate study for the water, wastewater, and electric entities, the consultant was requested to conduct a joint pole rate analysis. The last known review of the joint-use rates were in 1994.
The joint-use rate is a fee applied to telecom and cable entities that utilizes NPUA power poles to connect communication wires to provide service to their customers. Currently, there are three (3) providers that have joint-use agreements with the city for pole attachments. Today, the NPUA has 1,460 joint use attachments.
The existing joint-use fee is $7.78 per pole and is billed annually to each communication entity based on the number of connections they have. The analysis completed a joint-use calculation based on gross pole investment, which is pole costs, guy wires etc., and applied a space factor for usable pole space for attachment on a standard 45’ pole. There are connections that are on larger poles; However, a majority of the attachments are on 45’ poles. Therefore, this was the length selected to determine the applicable rates.
The maximum rate per pole, as determined by the analysis, is $22.41. The proposed rate adjustment is an 188% increase from the current rate because a rate adjustment has not been made since 1994.
Staff’s recommendation is to accept the analysis and adopt a phased-in rate increase approach to avoid negative financial impacts to the communication entities. Proposed annual rate increases are 50% for 2025 and 50% for 2026.
The Board of Public Utilities approved the recommended action on September 16, 2025.
Fiscal Impact: Increase in joint-use rates to cover the cost to provide the service. Current annual joint-use revenues are $11,359, increased to $33,719 by 2026 to cover the current cost of connections.
Environmental Impact: None
Recommended Action: Adopt Resolution 2025-41 Establishing a Joint Pole Rate of $15.10 Effective December 1, 2025, and $22.41 Effective December 1, 2026 Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:
Other Department Approval (when required): Date:
Proposed Rates
Current Rate 2025 - 50% 2026 - 50%
$ 7.78 $ 15.10 $ 22.41
09/18/25
9/18/2025
Agenda Item 2.
RESOLUTION NO. 2025-41
A RESOLUTION OF THE NEEDLES PUBLIC UTILITY AUTHORITY
OF THE CITY OF NEEDLES, CALIFORNIA, ESTABLISHING A JOINT POLE RATE EFFECTIVE DECEMBER 1, 2025, AND RESCINDING ALL PRIOR RESOLUTIONS
RELATING TO THE ESTABLISHMENT OF JOINT POLE RATES
WHEREAS, it is the responsibility of the Board of Public Utilities (“Board”) to establish and recommend electric rates sufficient to cover all costs of the operations and maintenance of the electric department, including but not limited to joint pole, purchase payments, debt service, and asset replacement; and
WHEREAS, the establishment of such rates is subject to approval by the City Council and the Needles Public Utility Authority (“NPUA”); and
WHEREAS, it is necessary that rates for joint pole connections be sufficient to cover the City’s cost to provide such service, now and in the future; and WHEREAS, on October 2024, the Board accepted a proposal from Raftelis and K.R. Saline & Associates to prepare a cost of service study for the three utilities, including a cost of service analysis for the joint-use attachment fees; and
WHEREAS, K.R. Saline & Associates completed an analysis of the NPUA’s electric joint-use attachment fees and determined the current fee of $7.78 per pole is underpriced compared to the analysis outcome of $22.41 per pole.
WHEREAS, on September 16, 2025, the Board voted to accept the K.R. Saline & Associates, PLC Cost of Service Joint-Use Attachment Fee Study dated September 3, 2025, and recommend a phased approach to avoid negative financial impacts to the communication entities; and NOW, THEREFORE, BE IT RESOLVED that the Needles Public Utility Authority hereby accepts the Board of Public Utilities of the City of Needles, California, recommends and approves a phased jointuse rate of $15.10 effective December 1, 2025, and $22.41 effective December 1, 2026 BE IT FURTHER RESOLVED that the Needles Public Utility Authority hereby rescinds all prior resolutions of the Authority related to the establishment of joint-use rates BE IT FURTHER RESOLVED that the rates for the joint-use attachments shall take effect on December 1, 2025 and December 1, 2026, and a cost-of-living adjustment (COLA) shall be added to all rates on January 1st of each year beginning January 1, 2026, subject to a proration of the initial COLA as noted in the paragraph below. COLA shall be automatically adjusted by using the then-current rates plus the Consumer Price Index (CPI) published by the U.S. Bureau of Labor Statistics, U.S. West - Size Class B/C CPI based on the June value of the appropriate price index.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the NPUA/City Council of the City of Needles, California, held on the 23rd 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 2.
MEMORANDUM
TO: Rainie Torrance
FROM: Kent Simer, Ashley Blank
DATE: September 3, 2025
RE: Joint-Use Attachment Fee
KRSA has completed an analysis of NPUA’s electric joint-use attachment fees. This analysis included a review of NPUA’s electric plant and FY2024 financial outcome as provided in the Annual Report to Bond Owners prepared by Urban Futures, Inc. Based on our review, the current joint-use fee of $7.78 per pole is underpriced comparative to the analysis outcome of $22.41 per pole. Provided below is a summary of the joint-use analysis results:
Figure 1 - Determination of Joint-Use Rate
Line No Description Factors
1 Length of Pole 45
2 Buried Depth 6
3 Ground Clearance Required 18
4 Safety Worker Space 3.3
5 Reserved Utility Space 1
6 Total Usable Space 16.7
7 Space Occupied by Attachment 1
8 Number of Attaching Entities 1
9 Number of Distribution Poles 1271
10 11 Space Factor 6.0%
12 Bare Pole Factor 0.85
13 Gross Pole Investment $1,837,549
14 Carrying Charge Rate 30.5%
15 16 Maximum Rate Per Pole $22.41
NEEDLES PUBLIC UTILITY AUTHORITY
CALCULATION OF JOINT ATTACHMENT FEE
K. R. Saline
& Associates, PLC
160 N Pasadena, Ste 101
Mesa, AZ 85201-8764
+1.480.610.8741
Agenda Item 2.
AB 1027/PUC §9512, the utility pole attachment fee recovers a proportional share of NPUA’s ‘annual cost of ownership’ for utility poles. NPUA’s annual cost of ownership for utility poles consists of 1) its annual operations and maintenance cost (O&M), and 2) its capital maintenance and replacement cost. The utility pole attachment fee was calculated for the test year fiscal year (FY) 2024. Total Usable Space was determined from NPUA’s standard use of 45’ as supported by NPUA staff. The ‘annual cost of ownership’ is detailed in the following table and details the “Carrying Charge” of the plant investment.
Figure 2 - Determination of NPUA Pole Investment Carrying Charge Determination of Administrative and Maintenance Charges. This analysis relied on the FY2024 results presented in the Annual Report to Bond Owners. Administrative charges include the sum of supplies, administrative and management, power and utilities (exclusive of electric power Line No Administrative Charge
1 Total General and Administrative Expenses $1,339,644
2 Gross Plant Investment $20,253,018
3 Administrative Charge Rate (Line 1/ Line 2) 6.6%
4 5 Maintenance Charge
6 Total Maintenance Expenses $389,427
7 Gross Pole Investment $1,837,549
8 Maintenance Charge Rate (Line 6/ Line 7) 21.2%
9 10 Depreciation Charge
11 Service Life 80
12 Depreciation Charge Rate (1 / Line 11) 1.3%
13 14 Cost Escalation (CPI)
15 Factor 2.7%
16 Net Plant Poles $1,263,782
17 Cost Escalation Charge (Line 15/ Line16) 0.00%
18 19 Capital Carrying Charge
20 Gross Pole Investment Financed 665,922.68
21 Finance Rate 3.86%
22 Interest $25,705
23 Gross Pole Investment $1,837,549
24 Capital Carrying Charge (Line 22/ Line 23) 1.40%
25 26 Total Carrying Charge (Lines 3+8+12+17+24) 30.5%
NEEDLES PUBLIC UTILITY AUTHORITY
CALCULATION OF CARRYING CHARGE RATE
Agenda Item 2.
purchased), contractual services, and insurance. Maintenance charges include the Maintenance and Operations line item, plus a portion of lineman labor costs multiplied by the Net Pole Plant Investment / Net Gross Plant.
Figure 3 - Electric Plant
Application Fees
In addition to the annual pole-attachment fee, it is appropriate to assess a one-time application to account for the administrative burden to review and process joint-use applications. This fee should be proportionate to the amount of time spent processing the application and charged at the fully burdened labor cost. For Example:
Hours/Pole Labor Rate Cost
Engineering Review .5 $254.52 $127.26
Field Review .5 $144.92 $72.46
Application Processing .5 $93.16 $46.58
Total Application Fee $/Pole $246.30
This review did not do a formal review of NPUA’s current processes for processing applications. The above example should be used as a guide and adopted for NPUA’s prevailing burdened labor costs and processing times.
Gross Investment Depreciation Net Plant
Poles 364 1,837,549.11 573,767.58 1,263,781.53
Transmission 3,787,251.10 2,530,596.99 1,256,654.11
Distribution 15,625,494.81 8,503,969.74 7,121,525.07
General 840,271.90 709,656.45 130,615.45
Total Plant 20,253,017.81 11,744,223.17 8,508,794.63
Agenda Item 2.
K. R. Saline
& Associates, PLC
Prepared For:
City of Needles
Joint-Use Rates
September 16th, 2025
Agenda Item 2.
K. R. Saline
& Associates, PLC
Overview
• As part of the electric rate review, NPUA requested a review of the rate assessed for the Joint Use of Poles by telecom and cable entities.
• Today, the Needles electric system has 1271 distribution poles and 1,460 attachments
• Last known review of Joint-Use Rates was in 1994.
• KRSA followed generally accepted CPUC/FCC procedures to update the current rates.
Cost-of-Service Study 2
Agenda Item 2.
K. R. Saline
& Associates, PLC
Development of Joint-Use Rates
Cost-of-Service Study 3
Determination of Pole Investments
Calculation of Carrying Charge
Applying Carrying Charge to bare pole investment to
determine cost per usable space
Agenda Item 2.
K. R. Saline
& Associates, PLC
Determination of Pole Investment
• KRSA relied upon latest asset report and isolated line-items pertaining to pole investments.
Cost-of-Service Study 4
Agenda Item 2.
K. R. Saline
& Associates, PLC
Calculation of Carrying Charge
The carrying charge is a blended annualized cost
rate that ensures the utility recovers the full
economic burden of owning and maintaining the
pole when calculating the attachment rate.
Included in Carrying Charge calculation:
• Administrative costs
• Operating and maintenance costs
• Annual depreciation costs
• Financing interest costs
• CPI
Cost-of-Service Study 5
Line No Administrative Charge
1 Total General and Administrative Expenses $1,339,644
2 Gross Plant Investment $20,253,018
3 Administrative Charge Rate (Line 1/ Line 2) 6.6%
4 5 Maintenance Charge
6 Total Maintenance Expenses $389,427
7 Gross Pole Investment $1,837,549
8 Maintenance Charge Rate (Line 6/ Line 7) 21.2%
9 10 Depreciation Charge
11 Service Life 80
12 Depreciation Charge Rate (1 / Line 11) 1.3%
13 14 Cost Escalation (CPI)
15 Factor 2.7%
16 Net Plant Poles $1,263,782
17 Cost Escalation Charge (Line 15/ Line16) 0.00%
18 19 Capital Carrying Charge
20 Gross Pole Investment Financed 665,922.68
21 Finance Rate 3.86%
22 Interest $25,705
23 Gross Pole Investment $1,837,549
24 Capital Carrying Charge (Line 22/ Line 23) 1.40%
25 26 Total Carrying Charge (Lines 3+8+12+17+24) 30.5%
NEEDLES PUBLIC UTILITY AUTHORITY
CALCULATION OF CARRYING CHARGE RATE
Agenda Item 2.
K. R. Saline
& Associates, PLC
Joint-Use Rate
The gross pole investment is adjusted by
multiplying it by 0.85 (the ‘bare pole factor’) to
exclude the cost of non-usable elements such as
appurtenances, guy wires, and other
attachments, yielding the bare pole cost used in
the rate calculation.
Space Factor = Calculated usable pole space for
attachments based on a 45’ standard pole.
Attachments are assumed to use 1 foot of space.
Joint-Use Rate =
Bare Pole Investment x Carrying Charge Rate of
30.5% x Space Factor of 6% divided by Number
of Poles = $22.41 per attachment.
Cost-of-Service Study6
Line No Description Factors 1 Length of Pole 45 2 Buried Depth 6 3 Ground Clearance Required 18 4 Safety Worker Space 3.3 5 Reserved Utility Space 1 6 Total Usable Space 16.7 7 Space Occupied by Attachment 1 8 Number of Attaching Entities 1 9 Number of Distribution Poles 1271 10 11 Space Factor 6.0%
12 Bare Pole Factor 0.85
13 Gross Pole Investment $1,837,549
14 Carrying Charge Rate 30.5%
15 16 Maximum Rate Per Attachment $22.41
NEEDLES PUBLIC UTILITY AUTHORITY
CALCULATION OF JOINT ATTACHMENT FEE
Agenda Item 2.
K. R. Saline
& Associates, PLC
Results
Cost-of-Service Study 7
REVENUES
Number of Attachments 1,460
Existing Joint-Use Rate $7.78
Existing Annual Revenues $11,359
Proposed Joint-Use Rate $22.41
Proposed Joint-Use Revenues $32,719
Change Increase / (Decrease) $21,360
Utility Comparison Year Rate
Burbank 2017 $28.42
Mohave Electric Cooperative 2025 $31.74
Riverside 2017 $23.50
Needles (Proposed) 2025 $22.41
IID 2024 $21.96
Lodi Electric Utilities 2025 $21.94
Anaheim 2025 $19.46
Truckee Donner 2017 $19.00
Silicon Valley Power (City of Santa Clara) 2025 $18.50
Average Rate $22.99
Agenda Item 2.
K. R. Saline
& Associates, PLC
Joint-Use Application Fee
• NPUA may charge an appropriate
one-time application processing
fee. NPUA should assess the
amount of time spent by staff for
reviewing and processing
applications and assess on a time x
burdened labor costs.
Cost-of-Service Study 8
Hours/Pole Labor
Rate
Cost
Engineering
Review
.5 $254.52 $127.26
Field Review .5 $144.92 $72.46
Application
Processing
.5 $93.16 $46.58
Total Application
Application Fee
Fee $/Pole
$246.30
Example:
Agenda Item 2.
K. R. Saline
& Associates, PLC
Thank You!
Questions?
Written questions or comments
can be sent to
[email protected]
Prepared by:
KRSA District Services Team
Cost-of-Service Study 9
Utility Formation, Governance, Federal Power Systems,
Power Supply, Power Markets, Budgeting, Financing, Rates, Billing, Bookkeeping, Reporting, and More!
Kenneth Saline P.E.
Dennis Delaney P.E.
Jeffrey Woner
Kent Simer
Daniel Pritchard
Jennifer Torpey
Scott Saline
Maggie Bauer
Ashley Blank
Nicole Klinker
Vedant Sahu
Agenda Item 2.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 23, 2025
Title: Approve Change Order No. 1 to the Public Works Agreement with Pyramid Building and Engineering, Inc. for the Water Main and Manifold Improvements Project Background: On May 13, 2025, City Council Awarded a bid from Pyramid Building and Engineering, Inc. for construction of the Water Main and Manifold Improvements Project in the amount of $1,128,676 plus 10% contingency for a total project cost of $1,241,544.
During pre-construction activities of potholing and identifying existing underground utilities, it was determined that existing field conditions differed from the construction plans. Therefore, additional work to install valves, tees, and appurtenances were required to isolate water services in the Monterey Street Area.
The proposed Change Order was received from the contractor and reviewed by the City Contract Engineer prior to submittal to the State Water Resources Control Board (SWRCB) for review. Approval was granted by the State to be funded by Phase 4B grant funds and contingency.
Therefore, Change Order No. 1 includes items already approved by the SWRCB increasing the contract with Pyramid Building and Engineering, Inc. by $89,700.82 for a new total contract amount of $1,218,376.82.
Fiscal Impact: The City received Grant Amendment #3 to the original Grant Agreement with the California State Water Resources Control Board in the amount of $14,315,640.00 for water system improvements. The Water Main and Manifold Improvements Project is identified as Phase 4B of the overall project budget in the amount of $1,828,730 with a $101,400 allowable contingency.
Change Order #1 for a total of $89,700.82 is reimbursable from the grant Phase 4B funds and included in the FY26 Water Budget.
Recommended Action: Approve Change Order #1 to the Public Works Agreement with Pyramid Building and Engineering, Inc. for the Water Main and Manifold Improvements Project resulting in an increase to the contract in the amount of $89,700.82 for a new total contract amount of $1,218,376.82; and authorize staff to execute said Change Order.
Submitted By: Kathy Raasch, Director of Development Services/Capital Projects City Manager Approval: Date:
Other Department Approval (when required): Date:
9/18/2025
09/18/25
Agenda Item 3.
CHANGE ORDER SUMMARY
From:
Pyramid Building & Engineering, Inc.
PO Box 401080
Hesperia, CA 92340
760-949-9005
To: City of Needles
Date: 7/18/2025 P.B.E COR # 001
ATTENTION: Kathy Raasch
Type: (LS,TM,) Owner Approved #___________
Contract Extension Day Request: 5 Days
QUANTITY UNIT
EA
4.00 HR
8.00 HR
HRS REG Rate HRS-Ot OT Rate
40.00 $ 103.80 12.00 $ 135.45
- $ 101.37 - $ 132.02
- $ 78.86 - $ 102.13
$ 76.99 - $ 99.48
$ 75.67 - $ 97.61
$ 78.17 - $ 98.11
MODEL# UNITS RATE
Code 0200 HRS $ 36.36
Cat 1865E HRS $ 68.04
2 AXL
HRS
$ 15.67
T&TT00-06 HRS $ 25.14
Code 2159 HRS $ 48.48
T&lT 28-36 HRS $ 49.31
T&lT 28-36 HRS $ 49.31
UNITS TOTAL
LS $ 3,409.58
Ton 667.12$
Pallets 1,248.04$
LS $ 21,761.51
EA -$
EA $ (4,289.68)
SUBCONTRACTOR COSTS:
5%
LABOR COST;
LABOR MARK UP: 15%
EQUIPMENT COST
EQUIP. MARK UP: 15%
MATERIAL COST
MAT. MARK UP: 15%
BOND:
GRAND TOTAL
Guilherme Engineering $ 51,322.51
DESCRIPTION: -The existing 8" line on Monterey Ave is in fact a 6" asbestos concrete line. The nearest shut off valves are located off of highway 95 south of interstate 40 and would require shuting down multiple neighborhoods at various intervals to install all water services on Monterey Ave. We are proposing the installation of 3 cut in valve packages, one at the south end of Monterey Ave and San Carlos St to include one 6" FLxFL Tee, four sleeve couplers, 3 additional gate valves and pipe, additional second valve cut in at the intersection of Goodwill St to include to one 6" gate valve and two sleeve couplers and pipe, finally the third valve will be cut in at the north end of Monterey at the intersection of Arizona to include one 6" gate valvle, two sleeve couplers, and pipe. The installation of these additional valves will give us the ability to isolate the neighborhood on Monterey St seperate from the broader area and create a smaller impact on the existing system when transferring services and performing the necessary abandonements of the existing lines.
-The proposed 4" mainline laterals to be hot tapped were proposed on the existing 8" line after discovering the mainline to be 6" it is necessary to perform cut in tees at the four ally way locations to preserve the integrity of the existing 6" asbestos concrete line, to include one 6"x4" FLxMJ tee, two sleeve couplers, and pipe at each location. -During our pothole investigation we have discovered multiple service corporation valves directly taped into the 6" asbestos concrete line with no saddle, at these location and on a per case basis we are proposing a repair sleeve in lieu of the tapping saddle to prevent any future problems or cracks in the mainline due to removal of corporation valves during the new service installation.
0.00 $ -
Group 8 Operator $ -
$ 50,079.19
-$78.86 $ (630.88)
CREDIT 8"x4" Tapping Sleeve 4.00 $ (1,072.42)
Concrete 2.00 $ 624.02
Group 3 Labor $ -
Group 5 Teamster $ -
$ -
0.00 $ -
0.00 $ 2,564.12
$ -
SUBCONTRACTOR
$ -
EQUIPMENT
$ (612.44)
TOTAL
SUBTOTAL:
Group 1 Labor $ -
Group 4 Labor $ -
LABOR CREDIT for Hot Tap/Saddle FORMAN/TRUCK 1 Forman 4 HRS
SUBTOTAL
$ 5,777.40
LABOR-CLASSIFICATION TOTAL
Foreman $ 5,777.40
RATE
-$153.11
0.00 $ -
LABOR CREDIT for Hot Tap /Saddle LABOR 2 Labors 4 HRS EA. $ 2,564.12
$ 2,503.96
$ 866.61
$ 5,777.40
$ 50,079.19
Temp AC 4.00 $ 166.78
0.00 SUB MARK UP:
Piping,Valves, Fittings & Appurtenances 1.00 $ 21,761.51 TOTAL
$ 384.62
$ 1,767.84
$ 90,159.79
SUBTOTAL:
$ 3,419.49
$ -
SUBTOTAL: $ 2,564.12
UNIT PRICE
2%
MISC & MATERIAL QUANTITY
Trench Plates/Shoring/Delivery 1.00 $ 3,409.58
QUANTITY
0.00 $ 22,796.57
$ 22,796.57
0.00 $ -
Foreman Truck F-450 52.00
$50,893.96 $49,650.64 $49,650.64 $2,482.53 $1,758.84 $89,700.82 Agenda Item 3.
Guilherme
Engineering
Lic: 1080618-A
D.I.R:
1000871264
QUANTITY Column1 UNIT PRICE AMOUNT
CUSTOMER Needles water services valve package change order.
Pyramid Building and
Engineering 40 Foreman per hour $103.80 $4,152.00
Proposal Number 12 Foreman per hour over time $135.45 $1,625.40 2025-1 120 Group 8 operator per hour $101.37 $12,164.40 DATE 36 Group 8 operator per hour over time $132.02 $4,752.72 8/22/2025 40 Group 4 Labor per hour $78.86 $3,154.40
ADDRESS 12 Group 4 Labor per hour over time $102.13 $1,225.56 10975 G Ave
Equipment Per hour $0.00
CITY/STATE/ZIP 52 Excavator Model 304 CR, Code 0200 $36.36 $1,890.72 Hesperia/CA 52 Backhoe Cat 430 E Model 1865E $68.04 $3,538.08 PHONE Bid items
Cut in valve package changes on Monterey St, cut in tees at 4" lateral locations. All work to be performed in
accordance with City of Needles plans and specs. Includes all labor and equipment, material to be provided by Pyramid Building and engineering.
760-403-5454 20 Low Bed -A 2 Axel $15.67 $313.40
E-MAIL 24 Water Buffalo $25.14 $603.36
[email protected] 52 Track loader 259D3 $48.48 $2,520.96 SALESPERSON 52 Foreman Truck F-450 $49.31 $2,564.12
Chris Guilherme 52 Tool Truck F-450 $49.31 $2,564.12
PROJECT 1 Light towers and dewatering equipment $1,195.44 $1,195.44 Needles Manifold 1 One week houseing $1,138.59 $1,138.59 PREPARED BY: 5 3 operators @ 50 per day perdiem $150.00 $750.00 Chris Guilherme 5 1 foreman @ 50 per day perdiem $50.00 $250.00 ATTENTION 5 1 labor @ 45 per day perdiem $45.00 $225.00 John Garrison
PAYMENT TERMS
25% deposit upon start
of project with progress
payments at 25%
intervals and no
retention to be held
DUE DATE
T.B.D
SUBTOTAL $44,628.27
THIS PROPOSAL EXCLUDES THE CONDITIONS NOTED: Overhead/profi t
15.00%
Overhead/profi
t
$6,694.24
Bonding 2% 0%
TOTAL $51,322.51
Survey, Permits, bonds or city fees. Water supply or meter, swppp or erosion control, Dust control outside our scope of work, Traffic plans beyond the standard watch manual. Haul off of excess dirt or demo material, grass repair or replacement, conrete repair or replacement, unmarked utilities not on the usa map, private utility locates or strikes, any items not specific to plans and spec provided.
Hard pan or rock excavation, augering, or breaking, dewatering or ground water, shoring, damage due to heavy equipment traffic. Electrical/fire suppresion installation.
Phone: 760-983-0671
Email: [email protected] / [email protected] 8765 mono Rd Victorville, CA 92392
Proposal
$44,255.62 $6,638.34 $50,893.96 $822.79
Agenda Item 3.
This is not an invoice
Please do not pay from this document
RENTAL QUOTE
Page: 1
RENTAL ITEMS:
_____ ___________ _______________________________________ _____________________________________________ _______________ Qty Equipment Description Minimum Day Week 4 Week Estimated Amt. 2 3204002 LIGHT TOWER,0-3KW LED VERT MAST 175.00 175.00 457.00 1,031.00 350.00 2 5209250 PUMP 4" TRASH 194.00 194.00 572.00 1,507.00 388.00 Rental Subtotal: 738.00
SALES/MISCELLANEOUS ITEMS:
_______ ______________________________________________________________ _____________ _________________ _______________ Qty Item Price Unit of Measure Extended Amt. 1 ENVIRONMENTAL SERVICE CHARGE [ENV/MCI] 14.760 EACH 14.76 1 DELIVERY CHARGE 185.000 EACH 185.00
1 PICKUP CHARGE 185.000 EACH 185.00
Sales/Misc Subtotal: 384.76
Agreement Subtotal: 1,122.76
Tax: 72.68
Estimated Total: 1,195.44
COMMENTS/NOTES:
CONTACT: CHRIS GUILHERME
CELL#: 760-983-0671
TO SCHEDULE EQUIPMENT FOR PICKUP, CALL 800-UR-RENTS (800-877-3687) WE ARE AVAILABLE 24/7 TO SUPPLY YOU WITH A CONFIRMATION #
IN ORDER TO CLOSE THIS CONTRACT
NEEDLES SERVICES
GOODWILL & MONTERREY
NEEDLES CA 92363
Office: 760-949-9005 Job: 760-983-0671
PYRAMID BUILDING & ENG, INC
PO BOX 401080
HESPERIA CA 92340-1080
BRANCH N23
2250 SILVER CREEK RD
BULLHEAD CITY AZ 86442-8473
928-758-5757
928-758-6966 FAX
# 252119372
Job Site
Customer # :
Quote Date :
Estimated Out :
Estimated In :
UR Job Loc :
UR Job # :
Customer Job ID:
P.O. # :
Ordered By :
Written By :
Salesperson :
952934
08/22/25
08/28/25 09:00 AM
08/29/25 09:00 AM
GOODWILL & MONTERREY
94 TBD
CHRIS GUILHERME
BRUCE ROKJER
CLINT GLASER
This proposal may be withdrawn if not accepted within 30 days. The above referenced Rental Protection Plan, environmental, and tax charges are estimates and are subject to change.
NOTICE: This is not a rental agreement. The rental of equipment and any items listed above is subject to availability and subject to the terms and conditions of the Rental and Service Agreement, which are available at https://www.unitedrentals.com/legal/rental-service-terms-US and which are incorporated herein by reference. A COPY OF THE RENTAL AND SERVICE AGREEMENT TERMS ARE AVAILABLE IN PAPER FORM UPON REQUEST. $388.00 $772.76 $50.03 $882.79
Agenda Item 3.
Agenda Item 3.
Agenda Item 3.
NEEDLES - CHANGE ORDER
1617 E BALL RD
ANAHEIM, CA 92805-4813
PHONE (714) 996-6299
FAX (714) 996-1599 0054371 8/18/25 1
Expiration Date 9/17/25
Revised Date 8/18/25
Quoted To Customer
Bid Due Date 8/18/25
PYRAMID BUILDING & ENGINEERING
PO BOX 401080
****MAIN ACCOUNT****
HESPERIA, CA 92340-1080
Phone (760) 949-9005 Jonathan
Fax [email protected]
(714) 996-6299
003662 NET 60 DAYS Jonathan RICARDO RODRIGUEZ S
Job Name
Quote No. Date Page
Quoted By
Customer Payment Terms Quoted To Salesperson FOB
Unit Extended
Line Qty. D e s c r i p t i o n Price UOM Price
MONTEREY & SAN CARLOS
2.0 1 461-08540985-000 QUANTUM CPLG 303.1600 EA 303.16
8"(8.54-9.85)
3.0 1 8X6 DI ALL MJ REDUCER 135.8100 EA 135.81
4.0 1 6 DI MJ 45 130.1500 EA 130.15
5.0 1 6 DI MJXFLG 45DEG ELL 177.5400 EA 177.54
6.0 3 6" MJXFLG RW GATE VALVE 966.2300 EA 2898.69
7.0 1 6X4 DI MJ X FLG CROSS 548.8800 EA 548.88
8.0 2 4" MJXFLG RW GATE VALVE 722.7800 EA 1445.56
9.0 4 4 DI MJ 45 82.0500 EA 328.20
10.0 2 461-04460560-000 QUANTUM CPLG 184.2700 EA 368.54 4"(4.46-5.60)
11.0 1 6 DI FLANGED TEE 408.1300 EA 408.13
12.0 1 6 DI MJ X FLANGE ADAPTER 128.7400 EA 128.74
13.0 20 8X20 C900 DR14 CL305 GJ PIPE 26.5700 FT 531.40
14.0 20 6X20 C900 DR14 CL305 GJ PIPE 14.5900 FT 291.80
15.0 20 4X20 C900 DR14 CL305 GJ PIPE 7.6600 FT 153.20
16.0 3 461-06540765-000 QUANTUM CPLG 259.8200 EA 779.46 6"(6.54-7.65)
17.0 1 2008PV 8 PVC MEGALUG 97.8500 EA 97.85
2008PEC W/ACC
18.0 9 2006PV 6 PVC MEGALUG 73.0700 EA 657.63
2006PEC W/ACC
19.0 10 2004PV 4 PVC MEGALUG 57.2900 EA 572.90
2004PEC W/ACC
20.0 10 6-8 150# ZINC PLT FLG BOLT SET 15.1600 EA 151.60
21.0 10 6 NONASB 1/16 150# RING GSK 3.2400 EA 32.40
22.0 2 4 150# ZINC PLT FLG BOLT SET 8.6200 EA 17.24
(5/8X3)
23.0 2 4 NONASB 1/16 150# RING GSK 1.8200 EA 3.64
24.0 5 6855 24B IMPORT 46.9700 EA 234.85
112068
25.0 5 6855 26T IMPORT 67.5800 EA 337.90
26.0 5 145325 5-1/4 WATER DROP LID 18.0500 EA 90.25
WATER
SUBTOTAL 10825.52
*** GOODWILL & MONTEREY ***
Agenda Item 3.
NEEDLES - CHANGE ORDER
0054371 8/18/25 2
Expiration Date 9/17/25
Revised Date 8/18/25
Bid Due Date 8/18/25
Job Name
Quote No. Date Page
Unit Extended
Line Qty. D e s c r i p t i o n Price UOM Price
30.0 1 6" MJXMJ RW GATE VALVE 966.2300 EA 966.23
31.0 2 461-06540765-000 QUANTUM CPLG 259.8200 EA 519.64 6"(6.54-7.65)
32.0 20 6X20 C900 DR14 CL305 GJ PIPE 14.5900 FT 291.80
33.0 2 2006PV 6 PVC MEGALUG 73.0700 EA 146.14
2006PEC W/ACC
34.0 1 6855 24B IMPORT 46.9700 EA 46.97
112068
35.0 1 6855 26T IMPORT 67.5800 EA 67.58
36.0 1 145325 5-1/4 WATER DROP LID 18.0500 EA 18.05
WATER
SUBTOTAL 2056.41
*** ARIZONA & MONTEREY ***
40.0 1 6" MJXMJ RW GATE VALVE 966.2300 EA 966.23
41.0 2 461-06540765-000 QUANTUM CPLG 259.8200 EA 519.64 6"(6.54-7.65)
42.0 20 6X20 C900 DR14 CL305 GJ PIPE 14.5900 FT 291.80
43.0 2 2006PV 6 PVC MEGALUG 73.0700 EA 146.14
2006PEC W/ACC
44.0 1 6855 24B IMPORT 46.9700 EA 46.97
112068
45.0 1 6855 26T IMPORT 67.5800 EA 67.58
46.0 1 145325 5-1/4 WATER DROP LID 18.0500 EA 18.05
WATER
SUBTOTAL 2056.41
*** 4" SERVICE LATERALS ***
50.0 4 6X4 MJ X FLG TEE 264.5400 EA 1058.16
51.0 8 461-06540765-000 QUANTUM CPLG 259.8200 EA 2078.56 6"(6.54-7.65)
52.0 40 6X20 C900 DR14 CL305 GJ PIPE 14.5900 FT 583.60
53.0 4 4 DI MJ LONG SOLID SLEEVE 87.0000 EA 348.00
54.0 8 2006PV 6 PVC MEGALUG 73.0700 EA 584.56
2006PEC W/ACC
55.0 8 2004PV 4 PVC MEGALUG 57.2900 EA 458.32
2004PEC W/ACC
56.0 4 4 150# ZINC PLT FLG BOLT SET 8.6200 EA 34.48
(5/8X3)
57.0 4 4 NONASB 1/16 150# RING GSK 1.8200 EA 7.28
SUBTOTAL 5152.96
60.0 500 14GA.SOLID BLACK TRACER WIRE .2100 FT 105.00
UF BLACK 500'ROLL @SELL BY FT
Disclaimers
Agenda Item 3.
NEEDLES - CHANGE ORDER
0054371 8/18/25 3
Expiration Date 9/17/25
Revised Date 8/18/25
Bid Due Date 8/18/25
Job Name
Quote No. Date Page
1)F.O.B. shipping point. Prepay and add freight charge at time of ship 2)All orders are subject to acceptance by OC Winwater
3)Returns are subject to manufacturer's acceptance & returns policies 4)Fabricated or specialty items are not returnable
5)Material and quantities to be verified by customer
6)With supply chain volatility, availability may change without notice 7)Due to prevailing tariff regulations, prices are subject to change at any time without prior notice
Tax Area Id Net Sales 20,196.30
050590090 Freight .00
Tax 1,565.21
Quotation Total 21,761.51
Agenda Item 3.
Your receipt from Airbnb
Receipt ID: RCW5BBFNQK · July 20, 2025
Fort Mohave
4 nights in Fort Mohave
Mon, Jul 21, 2025 Fri, Jul 25, 2025
Entire home/apt · 7 beds · 6 guests
Hosted by Meagan Mickelson
ConÓrmation code: HMBBMDFZFS
Go to itinerary · Go to listing
Traveler: Christopher Guilherme
Cancellation policy
This reservation is non-refundable.
CutoÔ times are based on the listing’s local time
Have a question?
Find details about payments and refunds in your
payments, or try the Help Center.
Price breakdown
$237.97 x 4 nights $951.86
Airbnb service fee $134.38
Taxes $52.35
Total (USD) $1,138.59
Payment
VISA •••• 9342
July 20, 2025, 2:55:50 PM PDT
$1,138.59
Amount paid (USD) $1,138.59
Occupancy taxes
Occupancy Taxes include General Sales and Use Tax (Arizona).
Airbnb Payments, Inc.
Airbnb Payments is a limited payment collection agent of your Host. It means that upon your payment of the Total Price to Airbnb Payments, your payment obligation to your Host is satisÓed. Refund requests will be processed in accordance with: (i) the Host's cancellation policy (available on the Listing); or (ii) Rebooking and Refund Policy Terms, available at www.airbnb.com/terms. Questions or complaints: contact Airbnb Payments, Inc. at +1 (844) 234-2500.
Payment processed by:
Airbnb Payments, Inc.
888 Brannan Street, San Francisco, CA
94103
Airbnb, Inc.
888 Brannan St, San Francisco, CA 94103
www.airbnb.com
Agenda Item 3.
CITY OF NEEDLES
C H A N G E O R D E R
PROJECT: Water Main and Manifold Improvements Project ORDER NO: 1 OWNER: City of Needles CONTRACTOR: Pyramid Building & Eng., Inc.
FOLLOWING CHANGES ARE MADE TO THE CONTRACT:
Description of Changes Decrease Contract Price Increase Contract Price 1) Install Additional Valves & Tees (Monterey) $ 89,700.82 to isolate neighborhoods for water shut-down
JUSTIFICATION:
Additional work required to replace hot taps with cut-in tees and valves and to add valves in order to isolate the area for new watermain connections and functionality. The description in the attached Change Order summary provides additional details of the issues at hand and how they are addressed in this change order. Steve Ledbetter, P.E. and contract City Engineer has negotiated this Change Order with the contractor and has approved with minor comments. This Change Order to be funded by 10% contingency previously approved by City Council.
Original Contract Price $1,128,676.00
Previous Change Order(s) Amount $0.00
Original Contract Price plus previous Change Orders $1,128,676.00 Contract Price Due This Change Order $ 89,700.82
New Contract Price $1,218,376.82
CHANGE IN CONTRACT TIME
Contract Time will be
(Increased)
Adjusted Date for
Completion of all Work Calendar Days
November 21, 2025
APPROVALS REQUIRED
Requested by:
Signature (Project Manager)
Date: 09/8/25
Contractor Acceptance:
Signature (Contractor)
Date:
Approved by: Date: 09/23/2025
Signature (City Manager) CC meeting
C H A N G E O R D E R
Agenda Item 3.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
Agenda Item 4.
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, SEPTEMBER 9, 2025 - COUNCIL EXECUTIVE SESSION – 5:00 PM - CITY COUNCIL MEETING – 6:00 PM CALL TO ORDER - Mayor Jernigan called the meeting to order at 5:08 pm
ROLL CALL
PRESENT
Council Member McCorkle arrived and joined Executive Session at 5:32 pm Vice Mayor Ellen Campbell
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Tona Belt
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, City Planner Irene Romero, Senior Code Enforcement Officer Bernie Hatz, and City Clerk Candace Clark.
PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION - None RECESSED TO EXECUTIVE SESSION - 5:10 PM
EXECUTIVE SESSION
a. 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
b. 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
c. Conference with Labor Negotiator Pursuant to Government Code Section 54957.6 Agency Negotiator: City Manager Patrick Martinez or his designee. Unrepresented Employee: Utility Manager
No reportable action
d. 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 6:00 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. Agenda Item 5.
PLEDGE OF ALLEGIANCE - led by Mayor Jernigan
INVOCATION - led by Vice Mayor Campbell
APPROVAL OF AGENDA – City Clerk Candace Clark announced an addition to the agenda to approve Mayor Jernigan’s travel to an Inland Empire Tourism event (Item 26) Council Member McCorkle 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 Board of Public Utilities Chair and former Council Member Terry Campbell, Former Council Members Robert Yee, and Don McCone in attendance.
CITY ATTORNEY – Parliamentary Procedures given by Deputy City Attorney Lena Wade.
PUBLIC APPEARANCE
Khristie Dentice asked City staff to look into bringing an Animal Medical Clinic to Needles.
Darlene Hernandez complained about commercial truck traffic in the Zamora Heights neighborhood and stated they are hazardous to the residents and are leaving trash. Asked about closing the easement.
Cindy Melvin reiterated the commercial truck traffic issue, further stating that they drive fast and are destroying the streets in the neighborhood, and asked about blocking truck access.
Robert Yee reported on the upcoming 10-10 Celebration and stated this is the celebration’s 52nd year.
James Jones complained about the condition of El Garces, stating that maintenance is lacking; he further stated that there are signage issues, and that the Amtrak station should be open for passengers.
PRESENTATION
1. Captain Jake Gault introduced Kim Buckley and Emma Joe Busto from the County Behavioral Health Triage, Engagement and Support Team (TEST Program).
Kim Buckley presented information about their program.
Council asked questions of staff and discussion ensued.
NPUA / COUNCIL CONSENT CALENDAR
Council Member Longbrake pulled item #4 for discussion.
Member/Vice Mayor Campbell made a motion, second by Member/Council Member Pogue, to approve items 2 through 3 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
2. Waived full reading and adopted Ordinance 676-AC of the City of Needles, California Establishing a Procedure for Property Owner Objections to Proposed Water/Sewer Fees or Special Assessment. (2nd Read Adopt)
3. Accepted the proposal of and authorized Lincus Incorporated to complete the 2025–2027 AB 32 Greenhouse Gas (GHG) Third Party Verification Services for a total cost not to exceed $26,014.
Agenda Item 5.
Pulled Item:
4. Approve Survalent providing Electric SCADA Software not to exceed $137,126 utilizing the Electric System Improvement Fund.
City Manager Patrick Martinez gave staff report.
Council asked questions of staff and discussion ensued.
Mayor Jernigan opened public comment at 6:31pm.
James Jones cautioned about reporting requirements and staying compliant when using SCADA software.
Mayor Jernigan closed Public Comment at 6:33 pm.
Member/Council Member Ford made a motion, second by Member/Council Member Longbrake, to approve Survalent providing Electric SCADA Software not to exceed $137,126 utilizing the Electric System Improvement Fund.
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 NPUA CONSENT CALENDAR
REGULAR NPUA / COUNCIL ITEMS
5. Accept the Comprehensive Water and Wastewater Cost of Service Ratemaking Study dated August 2025 and initiate the Prop 218 45-Day Public Comment to Adopt the Proposed Water and Wastewater Rates for 2026 – 2030.
City Manager Patrick Martinez introduced representative Brian Bass from Raftellis, who gave PowerPoint presentation via Teams.
Council asked questions and discussion ensued.
Terry Campbell answered council questions and explained that the City is required to conduct a rate study every 5 years.
Mayor Jernigan opened public comment at 6:45 pm.
No public comment - closed at 6:46 pm.
Member/Vice Mayor Campbell made a motion, second by Member/Council Member Ford, to accept the Comprehensive Water and Wastewater Cost of Service Ratemaking Study dated August 2025 and initiate the Prop 218 45-Day Public Comment to Adopt the Proposed Water and Wastewater Rates for 2026 – 2030.
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
6. Accept the Comprehensive Electric Service Ratemaking Study dated August 2025 City Manager Patrick Martinez introduced Ashley Blank from Raftellis, who gave a PowerPoint presentation via Teams.
Council asked questions and discussion ensued.
Terry Campbell answered council questions.
Mayor Jernigan opened public comment at 6:53 pm.
Don McCone compared NPUA rates to MEC and cautioned staff to stay competitive. Agenda Item 5.
Staff and Council responded.
Public comment closed at 6:58 pm.
Member/Vice Mayor Campbell made a motion, second by Member/Council Member Pogue, to accept the Comprehensive Electric Service Ratemaking Study dated August 2025.
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
7. 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.
City Manager Patrick Martinez gave staff report.
No Council discussion or questions.
Mayor Jernigan called Board of Public Utility Chair Terry Campbell to speak about the item.
Mayor Jernigan opened public comment at 7:03 pm.
No public comment - closed at 7:04 pm.
Member/Vice Mayor Campbell made a motion, second by Member/Council Member Ford, to 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.
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
COUNCIL CONSENT CALENDAR
Council Member McCorkle made a motion, second by Council Member Longbrake to approve items 8 through 17 on the Council Consent Calendar.
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
8. Approved the Warrants Register through September 9, 2025
9. Approved the Minutes of August 12, 2025
10. Adopted Resolution No. 2025-36 authorizing destruction of certain city records pursuant to Government Code Section 34090
11. Waived full reading and Adopted 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 (2nd read Adopt)
12. Received and filed the Needles Short Range Transit Plan (SRTP) 2025-2030
13. Approved 2026 employee benefits plan for Medical, Dental and Vision Agenda Item 5.
14. Adopted 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
15. Authorized the annual seed purchase from Simplot Turf & Horticulture, Las Vegas, in the amount of $28,716
16. Authorized the purchase from SPS VAR for one (1) Power10 AS400/Naviline Server not to exceed $62,000, utilizing the adopted FY26 General Fund Budget
17. Adopted Resolution 2025-33 Measure I Five-Year Capital Improvement Plan for Fiscal Years 2025 Through 2030
END OF COUNCIL CONSENT CALENDAR
REGULAR COUNCIL ITEMS
18. Adopt ratified Memorandum of Understanding with the Teamsters Local 1932, Classified and Unclassified Units and the City of Needles for the three-year term (July 1, 2025, through June 30, 2028) City Manager Patrick Martinez gave staff report.
Deputy City Attorney Lena Wade noted that complete copies of the MOU are available in the City Clerk’s office during regular business hours.
Council asked minimal questions of staff.
Mayor Jernigan opened public comment at 7:08 pm.
No Public Comment – closed at 7:09 pm.
Council Member Ford made a motion, second by Council Member McCorkle to adopt ratified Memorandum of Understanding with the Teamsters Local 1932, Classified and Unclassified Units and the City of Needles for the three-year term (July 1, 2025, through June 30, 2028).
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
A second vote was called to appropriate the funds for the ratified MOU.
Council Member McCorkle made a motion, second by Vice Mayor Campbell to appropriate the funds for the ratified MOU
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
19. Mayor Jernigan read Proclamation for 175th Anniversary of California Statehood
20. Adopt 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.
City Manager Patrick Martinez gave staff report.
Fred Minegar gave PowerPoint presentation via Teams.
Council asked questions of staff and considerable discussion ensued.
Mayor Jernigan opened public comment at 7:33 pm.
Jared Johnston commended all the effort that went into this item and urged staff to market this to attract tourism.
Agenda Item 5.
Cheryl Sallis asked about speed limits and raised concerns about racing on city streets. Council and staff addressed concerns.
Don McCone thanked staff and commented that this will increase tourism.
Tim Terral mentioned that he worked on this when he was on City Councill, with prior Mayor Jeff Williams and commented on the benefits of off-road vehicles no longer having to bypass Needles.
Public Comment closed at 7:39 pm.
Council Member Pogue made a motion, second by Council Member McCorkle to adopt 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.
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
21. Adopt Resolution No. 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.
City Manager Patrick Martinez gave staff report for this item and Item 22.
Kristen Hoebel spoke, expressing gratitude to staff and Council for bringing this item forward.
Council had no questions.
Mayor Jernigan opened public comment at 7:46 pm.
Jared Johnston asked about the existence of a long-term plan and questioned continuous repairs on an old building.
Public Comment closed at 7:48 pm.
Vice Mayor Campbell made a motion, second by Council Member McCorkle to adopt Resolution No. 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 City-Owned Facility at River’s Edge Golf Course and Authorizing the City Manager to Sign Documents on Behalf of the City of Needles.
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
22. 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.
Staff report and Public Comment done with prior agenda item (21).
Council Member McCorkle made a motion, second by Council Member Ford to 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.
Motion carried by the following roll call vote:
Agenda Item 5.
Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt, Longbrake
Noes: None
Absent: None
Abstain: None
23. Consider cancelling the November 25 and December 23, 2025, regular City Council / NPUA / HACN meetings.
City Manager Patrick Martinez gave staff report.
Council had no questions.
Mayor Jernigan opened public comment at 7:49 pm.
No Public Comment – closed at 7:50 pm.
Council Member McCorkle made a motion, second by Council Member Longbrake to cancel the November 25 and December 23, 2025, regular City Council / NPUA / HACN meetings.
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
24. 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.
City Manager Patrick Martinez gave staff report.
Council had no questions.
Mayor Jernigan opened public comment at 7:52 pm.
No Public Comment – closed at 7:53 pm.
Council Member McCorkle made a motion, second by Vice Mayor Campbell to 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.
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. 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)
City Manager Patrick Martinez gave staff report.
Senior Code Enforcement Officer Bernard Hatz gave Power Point presentation.
Council asked questions and considerable discussion ensued.
Mayor Jernigan opened public comment at 8:21 pm.
James Jones spoke against the ordinance stating that it is not needed and that we can use the tools we already have; he further stated that it creates an atmosphere of hostility toward visitors; he stated that it is legal for people to camp between the water level and the high water mark on the beaches as it is federal jurisdiction. He asked for an AdHoc committee to discuss this further.
Don McCone spoke in favor of the ordinance, stating that we can always use more tools to fix problems; he further commended the community for working together and spoke about our need to remain conscious about the perception of our community by tourists. Agenda Item 5.
Jared Johnston spoke in favor of the ordinance, stating that Code Enforcement expressed a need for more tools to combat health issues and fire hazards we should trust them and provide the necessary tools; he gave examples of issues faced daily by Code Enforcement, City Staff, and residents.
Public Comment closed at 8:32 pm.
Council Member McCorkle made a motion, second by Council Member Ford to 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) Motion carried by the following roll call vote:
Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Belt Noes: Council Member Longbrake
Absent: None
Abstain: None
Item Added at beginning of meeting:
26. Authorize Mayor Jernigan to attend the Inland Empire Tourism Networking event at the San Bernardino County Museum Fisk Gallery in Redlands on September 11, 2025.
City Manager Patrick Martinez gave staff report.
Vice Mayor Campbell made a motion, second by Council Member McCorkle to authorize Mayor Jernigan to attend the Inland Empire Tourism Networking event at the San Bernardino County Museum Fisk Gallery in Redlands on September 11, 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
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 August 29 and September 5, 2025, given by City Manager Patrick Martinez
COUNCIL REQUESTS
Council Member Ford
Requested staff look into renaming Quinn Ct. to Peanuts Court or Snoopy Court. Expressed concern that e-bikes are becoming a traffic hazard and asked staff to explore options to promote safety
Council Member McCorkle
Nothing
Vice Mayor Campbell
Expressed concern about commercial trucks driving in the Zamora Heights neighborhood Thanked the community for supporting the Women’s Club luncheons Council Member Pogue
Suggested staff look into promoting a truck stop to accommodate all the commercial trucks and alleviate the issues of illegal truck traffic
Council Member Belt
Reported that Colorado River Concerts and River Cities Community Theater upcoming events Will be participating with the SB County Sheriff’s Department, CHP, and SB County Fire Department to teach 75 8th graders CPR Agenda Item 5.
Council Member Longbrake
Chevron owners are in process of putting in a truck stop – encouraged city staff to work closely with them to encourage and expedite the process.
Mayor Jernigan
Reported that the Legacy Foundation, Kiwanis Club, and NUSD are working together to provide eye exams to 500 kids and will provide eyeglasses to students who need them Danica Willis – a teacher at NUSD has turned a classroom closet into a pantry of hygiene, clothing, and food products for students who need them. Teri Tomlinson from Legacy Foundation will be donating $5k to turn a classroom into a store for students, providing groceries and clothes to those in need.
ADJOURNMENT - Mayor Jernigan adjourned the meeting at 8:53 pm ________________________________________ ________________________________________ Mayor Janet Jernigan City Clerk Candace Clark
Agenda Item 5.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: September 23, 2025
Title: August 2025 Treasurer’s Report
Background: Pursuant to California Government Code Section 53607, the City Treasurer is required to make a monthly report of the investment portfolio to the legislative body.
Attached is the August 2025 Treasurer’s Report that contains information on the cash and investments held in the portfolio by the City of Needles, Needles Public Utility Authority, and Housing Authority of the City of Needles.
During August, there were no investments made in LAIF since the balances in the City’s bank accounts was needed to meet current financial obligations and ensure minimum required compensating balances necessary to offset fees from being charged to the various bank accounts.
The most recent LAIF quarterly apportionment rate for the June quarter was 4.40 percent. At its July meeting, the Federal Open Market Committee (the “Fed”) decided to leave the Fed Funds Rate unchanged at the current range of 4.25 percent to 4.50 percent; as such, we expect this favorable interest rate at LAIF to continue through September. However, at the most recent Fed meeting on September 17, 2025, the Fed Funds Rate was lowered by one quarter percent. We anticipate this to be reflected in the LAIF quarterly apportionment rate in the next quarter.
Trust Fund and the NPUA 2016 Refunding Revenue Bonds. The All American Canal Trust Fund was created by the US Bureau of Reclamation, the City of Needles and the Metropolitan Water District for the maintenance, capital and operation of the All American Canal. In exchange, Needles received a local water allotment from the Colorado River since it has no formal water rights. The canal is owned by the US Bureau of Reclamation and operated and maintained by NPUA. The trust funds, managed by NPUA in its fiduciary capacity, are held at Zions Bank as the third-party trustee, for canal capital and maintenance.
The market value of the funds held at Zion Bank on August 31 was $12,345,932.
US Bank acts as the trustee for the NPUA 2016 Revenue Refunding Bonds. The balances in the accounts at US Bank are usually small, unless funds have been sent to cover an upcoming bond payment, as was the case at the end of July. These various bond accounts are used simply to receive scheduled bond payments from the NPUA, and then the payments to bondholders are made by US Bank. NPUA does not repay bondholders directly. The total cash held by US Bank was $188 at month end after the August debt service payments were made by US Bank.
The City’s investment portfolio conforms to the City’s Investment Policy in all respects. The City Treasurer certifies that the City has sufficient funds to meet its expenditure obligations during the next six months.
Fiscal Impact: Accrued interest on the LAIF investments was $59,690 compared to $39,330 last month, reflecting a full month of interest on the $6 million invested at the very end of July.
The City’s portfolio cumulatively has earned an additional $78,043 in interest income since May 2025, before Finance began actively investing idle cash balances with LAIF. Interest earnings are shared by the General Fund, NPUA and HACN and apportioned based on each fund’s respective balance at LAIF.
Agenda Item 6.
Total portfolio income in August 2025 was $60,091, including interest on the LAIF investments and a small amount of interest on cash balances in interest-bearing bank accounts. This is a $20,326 increase in portfolio income from July 2025.
Environmental Impact: None.
Recommended Action: Accept and file the August 2025 Treasurer’s Report.
Submitted By: Jill Taura, Interim Finance Director
City Manager Approval: Date:
Other Department Approval (when required): Date:
Approved: Not Approved: Tabled: Other:
9/16/2025
Agenda Item 6.
Agenda Item 6.
Agenda Item 6.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 23, 2025
Title: Approve site location and architectural proposal for design of a new metal building for Dial-A-Ride (DAR) vehicles and accept the proposal from Selberg and Associates for design services in the amount of $14,950 Background: The City Council approved the Zero-Emission Bus (ZEB) Rollout Plan in June 2023 that outlines the steps needed to convert its fleet to zero emissions, including the required infrastructure to operate Battery-Electric Buses (BEB). In preparation for the ZEB Rollout Plan, the Community Services Department, Transit Services, is planning for the design and construction of a new metal building to house all transit vehicles. The new building is proposed to be located adjacent to the existing Needles Area Transit (NAT) Building at 1100 Front Street. This new building is to be EV ready with electrical and plumbing for charging stations and restrooms.
Staff has received a proposal from Selberg Associates Inc. who previously designed the NAT building at the Front Street location and proposes locating the new DAR building adjacent to the existing garage on the City-owned parcel. Utility, site grading and survey to be performed under separate contract by the City contract engineer.
Fiscal Impact: Total cost to the City for Architectural Services for the site expansion is $14,950 to be funded by Dial-A-Ride Capital Buildings FY26 Budget (Note: a total of $350,000 has been budgeted in FY25/26 for construction of the second garage and will be reimbursed by the San Bernardino County Transportation Authority (SBCTA) with STA capital funding).
Environmental Impact: The proposed project falls under a Class 32 exemption under Section 15332 of the California Environmental Quality Act for sites under 5 acres.
Recommended Action: Approve site location and architectural proposal for design of a new metal building for Dial-A-Ride (DAR) vehicles and accept the proposal from Selberg and Associates for architectural design services in the amount of $14,950.
Submitted By: Kathy Raasch, Director of Development Services/Capital Projects Cheryl Sallis, Community Services Manager
City Manager Approval: Date:
Other Department Approval (when required): Date:
9/18/2025
09/18/25
Agenda Item 7.
Agenda Item 7.
1 of 4
September 3, 2025
City of Needles
Attn: Kathy Raasch, Director of Development Services/Capital Projects (760) 326-2113, ext. 126
[email protected]
Needles Area Transit Garage – Needles, CA
Dear Mrs. Raasch,
On behalf of our firm, we are pleased to submit our professional design services proposal for a new pre-engineered metal building for the Needles Area Transit Garage located in Needles, CA.
The work performed will be under the supervision of Todd M. Brautigam, AIA, NCARB, Arizona Architect license #C-40709.
Project Scope:
The project consists of the construction of a new 30'-0" x 50'-0" (1,500 SF) building to be utilized by the City of Needles as garage space for Needles Area Transit (NAT) vehicles. The proposed facility will be situated approximately 20 feet west of the existing building, with vehicular access provided via the existing driveway off Front Street. Primary Structure will be a pre-engineered metal building (PEMB). The floor plan and exterior elevations will closely replicate the existing NAT building located on River Street, ensuring visual consistency across city facilities.
The building will be equipped with an electrical panel to accommodate future electric vehicle (EV) chargers, plumbing infrastructure for the future installation of a restroom, provisions for mini-split air conditioning (A/C) systems, including necessary utilities and wall space allocation, and insulation to support future climate control and energy efficiency. An existing utility pole on the site, currently not in use, will be removed as part of the site preparation work.
Basic Services:
The Basic Services will consist of deliverables to include:
Architectural drawings include Code and ADA analysis, site plan, floor plan, egress plan, reflected ceiling plan, roof plan, building elevations, building sections, and construction details
Structural foundation design drawings and calculations. Mechanical design includes HVAC ducting plan, Mechanical Details, and Fixture Schedules.
Plumbing design includes Water and Sewer layout plan, Water Fixture calculations, Waste and Vent Schematic, Isometrics, and Plumbing details. Electrical design includes Power and Interior lighting plans, Exterior lighting wall mounted and Site lighting plan, Panel Schedules, and One-line Diagram. Scope of work will also include phone coordination and meetings with the Client and reviewing jurisdiction.
Preparation of Prints and Building Permit Submittal applications and delivery to the Reviewing Jurisdiction.
Addressing the Comments and Redlines from the Reviewing Jurisdiction for Building Permit Issuance.
Not Included in Basic Services: Civil Design, Land Surveying, Traffic Impact Analysis, Traffic Impact Study, Environmental Report, SWPPP Book Submittal, ADEQ Notice of Intent, Soils Report, Percolation Testing, Pre-Engineered Metal Building Drawings, Fire Sprinkler & Fire Alarm Design, Building Department & Plan Review Fees, Parking Canopies, Parcel Combination, Bid Administration, Construction Administration, Boundary/Topo Survey, Structural Steel and Foundation Design
Agenda Item 7.
2 of 4
Compensation:
Supplemental Services:
Services excluded from the Basic Services that are recommended by the Architect are listed below the Basic Services total. Fees are provided for additional services; however, the Client may opt to select consultants for all the services directly.
*None proposed at this time
A retainer of $1,500.00 will be required to being the project and will be credited to the final invoice.
The project will be invoiced on a monthly basis. The total contract amount will be due upon completion. Additional charges may be incurred for design changes after initial design approval by Owner. Print costs, shipping charges, building department and plan review fees, and other incidental costs will be extra. If additional services are required, an amended written agreement signed by both the owner and the architect will be required. The attached terms and conditions are a part of this contract.
Construction Administration
Construction Administration will be billed to the Client on an hourly basis as needed at our standard hourly rates. All coordination will be directly with the Client and Contractor/Builder. - Construction Administration includes any time spent on the project after the plans and or specifications are completed (sealed).
- Construction Administration usually includes services such as review of pre-engineered components, review of shop drawings, site visits, changes to plans, contractor requests for information (R.F.I.) and questions answered for bidders. These services would be executed on an as needed basis as determined by the Client.
TERMS AND CONDITIONS
Selberg Associates Incorporated, hereafter referred to as SAI, shall perform the service outlined in this agreement for the stated fee arrangement.
Access to site: Unless otherwise stated, SAI will have access to the site for activities necessary for the performance of the services. SAI will take precautions to minimize damage due to these activities but have not included in the fee the cost of restoration of any resulting damage.
Fee: The total fee, unless stated as a fixed fee, shall be understood to be an estimate and shall not be exceeded by more than ten percent without written approval of the client. Where the fee arrangement is to be on an hourly basis, the rates shall be as follows:
Principal Architect: $185.00/hr. Senior Project Manager: $165.00/hr.
Project Manager: $125.00/hr. Architectural Designer: $105.00/hr.
Draftsperson: $85.00
Billings/Payments: Invoices for the services of SAI shall be submitted, at SAI’s option, either upon completion of such services or on a monthly basis. Invoices shall be payable within 30 days after the invoice date. If the invoice is not paid within 30 days, SAI may, without waiving any claim or right against the client, and without liability whatsoever to the client, terminate the performance of the service. Retainers shall be credited on the final invoice. Project related printing and shipping costs will be invoiced to the client at cost plus 10%.
Late Payments: Accounts unpaid 30 days after the invoice may be subject to an annual service charge of 12.0% annual rate, at the sole election of SAI. In event any portion or all of an account remains unpaid 60 days after billing, the client shall pay all costs of collection, including reasonable attorney’s fees.
Basic Services: Compensation
Architectural, Structural Foundation Design,
Mechanical, Plumbing, and Electrical
$14,950.00
Basic Services Compensation Total: $14,950.00
Agenda Item 7.
Agenda Item 7.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 23, 2025
Title: Letter of Support – Palo Verde Healthcare District and Palo Verde Hospital
Background: The Riverside Local Agency Formation Commission (LAFCO) has released a Municipal Service Review (MSR) for the Palo Verde Healthcare District. The report highlights severe financial distress and the suspension of surgical and inpatient services at Palo Verde Hospital in Blythe. The MSR identifies the key goal: to bring Palo Verde Hospital back to a fully operational facility for the long-term.
Palo Verde Hospital serves approximately 18,000 residents across 1,022 square miles and is the only hospital within 100 miles. The City of Needles shares many of the same rural challenges as Blythe, including geographic isolation, limited healthcare access, and disadvantaged community status. A letter of support has been prepared to emphasize the importance of restoring services and ensuring long-term sustainability.
Fiscal Impact: N/A
Recommended Action: Approve the letter of support for the Palo Verde Healthcare District and Palo Verde Hospital.
Submitted By: Patrick Martinez, City Manager
City Manager Approval: Date:
Other Department Approval (when required): Date:
9/18/2025
Agenda Item 8.
i
Municipal Service Review
Palo Verde Healthcare District
LAFCO 2025-06-4
Public Hearing Report
September 25, 2025
(Released for Review September 3, 2025)
This Public Hearing MSR Report is being circulated for consideration by the Riverside LAFCO Commission at the September 25, 2025 Commission meeting. Any agencies and members of the public wishing to provide comments on the Public Hearing MSR Report will be taken in writing prior to the meeting date or at the public hearing.
Written comments can be submitted by email at [email protected], or mailed/delivered to the LAFCO office- 6216 Brockton Ave, Suite 111-B, Riverside, CA 92506.
Written comments received prior to September 16, 2025 will be included in the agenda package with the MSR. Written comments received after that date will be provided to the Commission at the Public Hearing.
Agenda Item 8.
ii
PREPARED FOR:
RIVERSIDE LOCAL AGENCY FORMATION COMMMISSION
_____________________________________________________________________________________
COMMISSIONERS
Michael Vargas, Chair, City Member
Yxstian Gutierrez, Vice Chair, County Member
Agustin Arreola, Public Member
Stephen J. Corona, Special District Member
V. Manuel Perez, County Member
Steven Sanchez, City Member
Bruce Underwood, Special District Member
ALTERNATE COMMISSIONERS
Harvey Ryan, Special District Member
Jim Love, Public Member
Jose Medina, County Member
Linda Molina, City Member
STAFF
Gary Thompson, Executive Officer
Crystal Craig, Assistant Executive Officer
Melissa Cushman, Legal Counsel
Elizabeth Valdez, Commission Coordinator/Clerk
Michael Henderson, GIS Analyst
Rebecca Holtzclaw, Executive Assistant
Prepared by: Gary Thompson, Executive Officer
Agenda Item 8.
iii
Table of Contents
I. EXECUTIVE SUMMARY………………………………………………………………………………….……..……...1 PVHD MSR Goal……………….………………………………………………………………………………………………………….1 Previous MSR for PVHD……………………………………………………………………………………………………………….2 Current Status of PVHD……….………..…………………………………………………………………………………………….3 MSR Determinations, Available Options for PVHD and Potential Actions…………………………………….4 II. INTRODUCTION……………………………………………………………………………………………………….….9 Municipal Service Reviews............................................................................................................... 9 Disadvantaged Unincorporated Communities ..…………………………………………………………….……..…..10 Riverside County Healthcare Districts……….…………………………………………………………………….…..…….10 Table II-1- PVHD Location & Authorized Services…………………………………..………………...……….…11 COVID-19 Pandemic .………………………………………………………………………………………………………………..11 General Background Information on Rural Hospitals…………………………………………………………………12 MSR Approach and Review Opportunities…………………………………………………………………………………12 III. PALO VERDE HEALTHCARE DISTRICT……………………………………………………….……13 Overview / Background ................................................................................................................. 13 Table III-1- Profile – Palo Verde Healthcare District…………………..…………………………………………16 Figure III-1- Boundary/SOI Map – Palo Verde Healthcare District……………. …………………………17 Growth and Population Projections….……………………………………………………………….………………………18 Accountability and Governance…………………………………………………………………………………………………18 Services - Facilities- Infrastructure……………………..……………………………….…………………………………….21 Financial Overview ..………………………………………………………..……………………………………………………….23 Table III-2- Financial Information……………………………………………………………………….………….…….27 Disadvantaged Unincorporated Communities.……………………..……….……….…………………………………31 Status of Issues Identified in Most Recent MSR..………………………….……………………………………………31 Government Structure Alternatives ………………………………………………………………………………………….31 Recommended Municipal Service Review Determinations ……………………………………………………….31 Agenda Item 8.
iv
IV. OPTIONS & RECOMMENDATIONS……………………………………………………….35
Options ..….....................................................................................................................................35 Observations & Recommendations............................................................................................... 36 ACRONYMS …...………………………………………………………………………………………….38
Agenda Item 8.
1 I. EXECUTIVE SUMMARY
This Municipal Service Review (MSR) for the Palo Verde Healthcare District (PVHD) has been generated as directed by the Riverside Local Agency Formation Commission (LAFCO) at the June 26, 2025 Commission meeting as a result of the current dire financial situation at PVHD. This situation has forced suspension of many services on May 24, 2025, including surgical and in-patient admittance services, provided by the Palo Verde Hospital located in the City of Blythe. The Commission was specifically requested by the City of Blythe to conduct this MSR due to the significant impact the suspended services has had on the City of Blythe and surrounding communities population.
California state law establishes Local Agency Formation Commissions (LAFCOs) within each county for the purpose of establishing jurisdictional boundaries and spheres of influence (SOIs) for cities and special districts under their purview, and to authorize the provision of services within the approved service areas. Additionally, the purpose of an MSR is a periodic, or special circumstance comprehensive study of services provided by cities and special districts within a designated geographic area. The service review requirement is codified in the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH), Government Code section 56000 et seq.
The MSR process does not require LAFCOs to initiate changes of organization based on service review findings. It only requires that LAFCOs make determinations regarding the provision of public services per Government Code section 56430. MSRs are not subject to the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15306.
CEQA Guidelines section 15306 consists of “basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource. These may be strictly for information gathering purposes, or as part of a study leading to an action which a public agency has not yet approved, adopted, or funded.” The ultimate outcome of conducting an MSR, however, may result in LAFCO making recommendations on a change of organization or reorganization.
PVHD MSR GOAL
The overall goal to achieve with respect to PVHD and the Palo Verde Hospital is a fully restored and operational hospital with financial sustainability for the longterm.
The ultimate goal of this MSR is to provide relevant information that provides options available, and potential actions that should be considered to resolve the financial and administrative issues that have been plaguing PVHD for several years resulting in the ultimate financial crisis, and bring the Palo Verde Hospital back to a fully operational facility for the long-term.
Agenda Item 8.
2 Previous MSR for PVHD and Grand Jury Investigations
The last MSR for PVHD was performed in 2020, utilizing Fiscal Year 2017/2018 financial information. The Palo Verde Hospital was found to be operating as a fully functional hospital while looking to improve services, and looking for additional funding opportunities. The financial status of PVHD was positive having worked out of some prior financial struggles the previous few fiscal years. However the MSR notes that PVHD was concerned about the future financial health of the hospital due to evolving reimbursement structures of federal, state and private payers, in particular uncertainty in Medicare payments.
The PVHD MSR Determinations in the 2020 MSR for PVHD included references to the concerns of future financial viability, and although at the time, the financial condition of PVHD and services had improved, there remained a high risk for financial distress in the future. The determinations also noted that based on the hospital rating systems utilized at the time, the indicators for the hospital appeared to be marginally adequate.
Additionally, PVHD was struggling with obtaining funding for required earthquake safety structural retrofits to the Palo Verde Hospital.
There have been several Grand Jury Investigations into the PVHD over the last 20 years.
All have addressed issues related to administrative and financial situations. For the most part, PVHD has over the years addressed many of those issues, however, the financial viability of the Palo Verde Hospital has remained an ongoing problem.
The 2002/2003 Grand Jury noted issues at PVHD and the Palo Verde Hospital Association (PVHA) regarding operations and financial liabilities with several recommendations provided regarding interaction and legal and financial record keeping by the PVHD. The PVHD response concurred with the Grand Jury findings and recommendations and took steps to implement the recommendations.
The 2007/2008 Grand Jury noted significant issues related to services, Medi-Cal staffing, financial issues and fee structure problems, and Board administrative items. A significant recommendation was to terminate the contract with the hospital management firm retained to operate the hospital after a near bankruptcy in 2005. The PVHD response was generally negative toward the Grand Jury’s report and efforts, disagreeing with most of the findings and recommendations. A few were acknowledged, however it was clear that the PVHD Board at that time was not receptive to anything the Grand Jury had to say. A lengthy rebuttal to the PVHD response was submitted by the medical staff of the hospital agreeing with virtually all of the Grand Jury findings and recommendations.
The 2017/2018 Grand Jury noted that Palo Verde Hospital has “historically experienced extreme staff shortages and lack of physician support…”, and many operational problems servicing the Palo Verde Valley region. A key recommendation included reference to enlisting the Riverside University Health System (RUHS) to assist in improving services at the hospital and re-establishing its partnership with RUHS.
Agenda Item 8.
3 The PVHD response to the Grand Jury articulated a detailed overview of the past several years of issues that compounded the struggles the PVHD had been facing, and noting measures they had been taking to improve services, achieving accreditation as a “Critical Care Hospital” through the federally recognized certification authority DNV, and providing justifications why certain service recommendations were unfeasible to implement at that hospital. The PVHD also noted the collaborative efforts ongoing with RUHS.
Current Status of PVHD
With the advent of the COVID-19 pandemic in 2020-2021 and the subsequent impacts on PVHD, the hospital reached a point where operations and services were in serious jeopardy. However for a period of time, the hospital was able to maintain services relying on COVID-19 federal reimbursement funds and grants under the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act) and the Paycheck Protection Program. One significant affect of the COVID-19 pandemic on hospital revenue was the restrictions placed on elective surgeries in 2020, and also an estimated 30 percent average cost increase in supplies.
Beginning in 2023, however, the PVHD experienced significant financial distress and deficit budgets which has resulted in the current recent financial crisis resulting in suspension of various services at the Palo Verde Hospital in May of this year. It is apparent that COVID-19 related financial issues, along with what could be considered the classic “train wreck” of events beginning in 2023 through the present time created what could be considered, a “no win” situation for PVHD.
Several events occurred during this time frame all contributing to creation of the situation today. These included a reduction in Medicare rates, and the litigation costs associated with the lawsuit against the company Altera to recover massive lost patient health data as a result of software failures of their medical record system. This resulted in delays in ability to invoice and receive reimbursements from insurance and other sources, in particular, Medicare and Medi-Cal. Additionally, implementation of a new electronic record system and the cost of consultants to install the new system contributed to significant costs which were never anticipated. The turnover of four Chief Financial Officers during an 18-month period, a cyberattack on the financial system, and additional costs for a third-party billing service to assist in resolving the invoicing backlog all contributed to the financial deterioration.
The PVHD has implemented a 60-day Emergency Plan in an attempt to reduce the shortterm impact of the deficit situation. However, PVHD staff has related that resumption of the suspended services may take time as the hospital needs to reach a consistent revenue stream to support those services without creating more deficit spending.
Recently it was announced by the local state senator for the Palo Verde and Blythe region that the state had assisted in funding for the hospital. However, according to PVHD management staff, the state did not provide any additional direct funding for the hospital to maintain operations. The state did defer payments of one outstanding bridge loan of Agenda Item 8.
4 approximately $600,000 for three years, with a possible loan “forgiveness”, and extended another bridge loan for $8.5 million whereby a portion of this loan may be “forgiven” each year. According to PVHD staff, these concessions, although helpful, do not resolve the current significant revenue and cash flow problem, even in the short-term.
Further, the PVHD has experienced a significant turnover in Chief Financial Officers (CFOs) in the last few years. The current CFO is the 4th CFO since 2023. This has contributed to issues with financial management and getting the bi-annual audits completed. Recently, the PVHD has retained a very good and dedicated CFO who is diligently working to financially right the ship, both short-term and long-term.
PVHD has initiated appropriate staff reductions and furloughs related to the suspension of services, cancellation and/or re-negotiation of various support services and products contracts due to the lesser need, and deferral of certain facility maintenance as part of the 60-Day Emergency Plan. PVHD management staff has indicated that no debt or accounts payable are currently in a default status. PVHD management staff has reported that all remaining hospital and PVHD staff are working diligently and very hard to as they say to “get the ship righted and back on track.”
Riverside University Health System staff have taken an active role in assisting the population served with services, as well as conducting community meetings and have created three community groups working to address specific needs. They include the Workforce Group supporting workers impacted by the suspension of services, the Healthcare Workgroup to address needs the hospital clinic cannot provide, and the Supportive Services Group primarily coordinated by the County Department of Public Social Services for Medi-Cal and social services support to the community.
MSR Determinations, Available Options for PVHD and Potential Actions Following lists the required MSR Determinations based on the review of all documentation provided and obtained through arduous research and interviews with appropriate personnel knowledgeable of the financial and administrative issues facing the PVHD at this time.
MSR Determinations
1) Growth and Population Projections
• The PVHD currently serves an estimated population of approximately 18,000 over a geographical area of approximately 1,022 square miles. The District encompasses the City of Blythe, and the unincorporated communities of Mesa Verde, Ripley and Midland (currently an unpopulated ghost town).
• The general population is mainly low to middle income residents and a diversified ethnic mix, with the largest being Hispanic followed by Caucasian ethnicity.
Agenda Item 8.
5 • PVHD’s service area most likely has some potential for growth most notably within the City of Blythe, however, recent history from the California Department of Finance reflects population stagnation mostly and a recent significant decrease in the City of Blythe population over the last few years. Some of the population decline was the recent closure of the Chuckawalla State Prison.
• Although the PVHD does not retain any land use planning and entitlement authority as those functions are reserved the cities, and the county for unincorporated areas, the PVHD must anticipate and forecast future demands. • Although the population of the City of Blythe has decreased fairly significantly recently, the PVHD must be prepared to anticipate that hospital services will see increased demands proportionate with any future population growth that may occur.
2) Location and Characteristics of Disadvantaged Unincorporated Communities Within or Contiguous to the District’s SOI. • There are nine disadvantaged unincorporated communities (DUCs) associated to the City of Blythe and/or within the PVHD boundaries.
3) Present and Planned Capacity of Public Facilities and Adequacy of Public Services, Including Infrastructure Needs and Deficiencies Related to Disadvantaged Unincorporated Communities
• The PVHD and the Palo Verde Hospital do not maintain the financial capacity for long-term provision of all services the hospital normally provides at this time. • The PVHD is not meeting the level of service delivery the community not only desires, but is highly necessary for public health issues of a critical and non-critical nature. • The hospital facility is in need of significant renovations for meeting current state earthquake standards.
• There are no additional deficiencies related to the nine DUCs identified within the PVHD SOI other than that already identified.
4) Financial Ability of the District to Provide Services • Overall, the financial position of the PVHD is clearly considered very unstable at this time, with significant cash flow issues due to lack of ongoing revenues resulting in major service reductions and resultant expenditure reductions for staffing and other support services.
• The PVHD is in serious financial distress and does not have the financial ability to provide the full services of the Palo Verde Hospital.
• Available cash assets are nearly depleted as PVHD works to cut costs as quickly as possible to support cash flow requirements.
Agenda Item 8.
6 • Surgical services and in-patient services have been suspended forcing patients to travel approximately 100 miles to the closet California hospitals. • The PVHD Board of Directors has implemented a 60-Day Emergency Plan to address some of the short-term financial issues.
• The immediate need is a significant cash infusion to the PVHD to sustain the short term, and eventually, a stable long term revenue stream sufficient to support a fully operational and staffed hospital as is needed in the Blythe and Palo Verde region. • The state did not provide any additional direct funding for the hospital to maintain operations. The state did extend the Non-Designated Public Hospital Bridge Loan Program debt for $8.5 million for PVHD whereby a portion of this loan may be “forgiven” each year. The state also deferred payments of one other outstanding state bridge loan of approximately $600,000 for three years, with possible loan forgiveness.
According to PVHD staff, these concessions, although helpful, do not resolve the current significant revenue and cash flow problem, even in the short-term. • The PVHD is not in default on any debt obligations at this time. • The PVHD normally conducts an independent audit bi-annually, however, PVHD staff notes that as a result of the recent financial crisis and the heavy turnover of CFOs in the last 18 months, the FYE June 30, 2023 and 2024 audits just recently got underway and are not yet available. The most recent previous audit for FYE June 30, 2021 and 2022 do reflect an “unmodified” opinion.
5) Status of, Opportunities for Shared Facilities
• There is no foreseeable opportunity for shared facilities as the hospital is unique to the type of services provided, and no other facility is within any reasonable distance to provide the services.
• Options are available for other governance or operational opportunities for the hospital.
6) Accountability for Community Service Needs, Including Governmental Structure, and Operational Efficiencies.
• The PVHD is governed by a five-member Board of Directors elected at large to fouryear staggered terms by the registered voters within the PVHD boundaries. • Hospital staffing is normally approximately 120-125 personnel, however during the suspension, layoffs and furloughs have resulted in a significant staffing reduction. • The Palo Verde Hospital website acts as the PVHD website and provides various types of information related to hospital services and activities, and for PVHD Board and administrative activities.
Agenda Item 8.
7 • The website lacks transparency from the aspect of searching for agendas, meeting minutes and financial information as the link to the page for such is at the very bottom of the home page where most residents would not notice. That link should be much more visible on the website.
• There is no direct email contact information listed for Board members, nor the PVHD CEO on the website. Phone and email contact information for most staff is provided however very difficult to find.
• Meeting agendas with staff reports are posted on the website, however, no meeting minutes have been posted since March of 2025 as the Board of Directors has been unable to approve the minutes from the last several Board meetings. • Only the FY 2021 & 2022 bi-annual audit is provided on the website, and financial information is mostly limited to monthly reports. The current PVHD draft budget for FY 2025/26 is listed on the website.
• Several alternative government structure options should be considered if the current PVHD management structure and the Board of Directors cannot correct the long-term structural issues of maintain a fully operational hospital. 7) Any Other Matter Related to Effective or Efficient Service Delivery, as Required by Commission Policy.
• The Commission has concerns regarding the overall financial and management status of the PVHD, and particularly the Palo Verde Hospital.
• The Commission has requested an assessment of the PVHD’s ability to return the hospital to full operational status long-term, and other options available for governance and operation of the hospital if necessary.
The following are several Options available for the PVHD and other governmental agencies to consider in order to reach the ultimate desired goal of a fully operational hospital with long term sustainability. Section IV further on at the conclusion of this MSR report provides a more comprehensive discussion of these available Options, and Recommendations available to the PVHD for potentially resolving the short-term and long-term financial situation, and to return the Palo Verde Hospital to a fully functional facility.
Available Options/Potential Actions
1) PVHD continue with implementing the Board of Directors adopted recovery plan. 2) Obtain state or county funding to restore solvency, restore all suspended services, and clear all outstanding debt.
3) Obtain commercial funding to restore solvency, restore all suspended services, and clear all outstanding debt.
4) Lease the hospital to a public hospital agency or private hospital system.
Agenda Item 8.
8 5) Form a Joint Powers Authority with the PVHD, the City of Blythe and the County of Riverside.
6) The City of Blythe or the County of Riverside assume ownership and operation of the hospital & dissolve the PVHD.
7) Consolidate PVHD with Desert Healthcare District & dissolve the PVHD. 8) Sell the Hospital to a private provider & dissolve the PVHD. 9) File for Chapter 9 Bankruptcy proceedings.
Agenda Item 8.
9 II. INTRODUCTION
Beginning in 2001, LAFCOs in each county in California were required to review and, as necessary, update the SOI of each city and special district. SOIs are boundaries, determined by LAFCOs, which define the logical, ultimate service area for cities and special districts. No SOI can be updated, however, unless LAFCOs first conduct an MSR.
Historically, MSRs and SOI updates have been sporadic at best and not performed as intended by the statutes. Although LAFCO completed an initial round of MSR/SOI updates after the initial requirements were implemented, updates have occurred somewhat sporadically since, with some agencies not having had an MSR or SOI update in 15 years or more. As part of the Five-Year Strategic Plan adopted in January of 2020, a schedule was developed to bring these agencies current with respect to the statutes governing these reviews. The new Five-Year Strategic Plan adopted in June of 2024 continues with the schedule of the five-year MSR/SOI review and update process. The MSR process for the three Riverside County Healthcare Districts is scheduled to begin later this fiscal year, however, the PVHD MSR has been accelerated due to the current financial and services issues being experienced.
Municipal Service Reviews
CKH requires LAFCOs to review and update SOIs not less than every five years and to conduct MSRs before updating SOIs. The service reviews provide LAFCOs with a tool to study existing and future public service conditions comprehensively and to evaluate organizational options for accommodating growth, preventing urban sprawl, and ensuring that critical services are provided efficiently. Additionally, MSRs may be conducted when special circumstances arise that warrants an immediate MSR such as the current status of the PVHD located in the City of Blythe.
Government Code section 56430 requires as a mandatory component of an MSR, a written statement of determinations with respect to each of the following topics:
1. Growth and population projections for the affected area.
2. The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence.
3. Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged unincorporated communities within or contiguous to the sphere of influence.
4. Financial ability of agencies to provide services.
5. Status of, and opportunities for, shared facilities.
6. Accountability for community service needs, including governmental structure and operational efficiencies.
7. Any other matter related to effective or efficient service delivery, as required by commission policy.
Agenda Item 8.
10 Disadvantaged Unincorporated Communities
On October 7, 2011, Governor Jerry Brown signed SB 244, which made two principal changes to CKH. SB 244 requires LAFCOs to: (1) deny any application to annex to a city territory that is contiguous to a disadvantaged unincorporated community (DUC) unless a second application is submitted to annex the disadvantaged community as well; and (2) evaluate disadvantaged unincorporated communities in an MSR upon the next update of an SOI after June 30, 2012. The intent of the statute is to encourage investment in DUCs that often lack basic infrastructure by mandating cities to include them in land use planning, and LAFCOs when considering annexation proposals. SB 244 defines a DUC as any area with 12 or more registered voters, or as determined by commission policy, and where the median household income is less than 80 percent of the statewide annual median household income.
Although DUCs are applicable primarily to cities, it is important to consider them with respect to services provided by special districts, in particular those special districts that provide water, wastewater and fire protection services. However, districts providing other services, such as services provided by PVHD into a DUC warrant being identified and reviewed.
Riverside County Healthcare Districts
A special district is a separate local government that delivers a limited number of public services to a geographically limited area. Special districts have four distinguishing characteristics. They are a form of government, have governing boards, provide services and facilities, and have defined boundaries. Healthcare Special Districts generally provide several types of medical and related services, including owning and/or operating hospitals, medical clinics, outpatient facilities, emergency services, and other related services that are authorized under federal regulations and the state Health & Safety Code section 32000-32492. Services specifically authorized to be provided are generally identified at the formation of the Healthcare District and as authorized under the statute.
There are three independent Healthcare Districts within Riverside County:
1) Palo Verde Healthcare District which covers a vast segment of the eastern part of the County including the City of Blythe and the unincorporated communities of Mesa Verde, Ripley and Midland.
2) Desert Healthcare District which covers the entire Coachella Valley, including the Cities of Coachella, Indio, La Quinta, Rancho Mirage, Palm Springs, Palm Desert, Cathedral City, Indian Wells and Desert Hot Springs, and the unincorporated communities of Mecca, Bermuda Dunes, Oasis, North Shore and Vista Santa Rosa. 3) San Gorgonio Memorial Healthcare District which generally covers the Cities of Banning, Calimesa and Beaumont, and the unincorporated community of Cherry Valley.
Agenda Item 8.
11 As this MSR is focused solely on the PVHD, only MSR determinations for the PVHD are provided in this report. Options/Recommendations are discussed in detail in Section 4 of this MSR.
An outline of the PVHD,s service area and authorized services are listed in Table II-1 below. Detailed discussion of the PVHD operations, services and financial status are included in Section 4.
Table II-1- PVHD Location & Authorized Services
LOCATION AUTHORIZED SERVICES
City of Blythe and North to the San
Bernardino County Line, South to the
Imperial County Line, East to the Arizona
Border and West to the State Prison,
including the unincorporated communities
of Mesa Verde, Ripley and Midland
Full range of hospital services, including
Medi-Cal and surgery services, radiology
and laboratory services, ambulance
services, clinical and outpatient services.
PVHD owns and operates one 51 bed
hospital in the City of Blythe
COVID-19 Pandemic
During the two-year period of 2020-2021 of the COVID-19 virus pandemic, the virus had exponentially spread throughout the world and the United States, resulting in the infection of large segments of populations in all states, including California. Additionally, the death rate from the virus was significantly greater than previous COVID type viruses with no immediate treatment remedies nor vaccines available.
The state implemented several measures to attempt to control the spread of the virus including a statewide stay-at-home order, alternating shutdowns and partial re-openings of many parts of the economy. The impact on the economy, in particular small businesses and employment, was massively significant. As a result, with the economic downturn, local governments began seeing significant decreases in various revenues and in many cases, service impacts. In the case of the Healthcare Districts in Riverside County, the epidemic did result in significant increases in workload due to the high infection rate associated with the disease requiring significant hospital services.
Although federal stimulus funding was provided to local governments to assist in offsetting some revenue losses, special districts were not included in most of the initial funding that was authorized in 2021 for recovery purposes. Therefore Healthcare Districts did not receive any of that funding. However, as services provided by Healthcare Districts are largely funded by insurance payments, Medicare and Medicaid payments, and service charges to customers/clients, Healthcare Districts in general became economically strained due to the tremendous amount of additional resources required to be utilized for treatment during the pandemic, with follow-on reimbursements lacking enough timeliness to maintain financial stability throughout the pandemic.
Agenda Item 8.
12 General Background Information on Rural Hospitals
The PVHD has noted in the District’s recently revised Strategic Narrative and Goals the following information relevant to rural hospitals in general:
“Over the past decade, the threat of hospital closures in small, remote communities has increased. Hospitals are closed entirely, with some only providing access to outpatient services, including clinics. Complex and diverse causes have led to these closures, including increasing regulations under the Affordable Care Act. Other factors include shrinking populations, uninsured patients, outdated facilities, and the inability to transition into new care delivery models, frequently due to a lack of financial and human resources. The U.S.
Department of Agriculture estimates 46.1 million Americans live in rural areas, representing 14% of U.S. residents. Of 1,825 rural hospitals in the United States, these facilities may be classified as critical access, county hospitals, district hospitals or for-profit hospitals.” MSR Approach and Review Opportunities
A collaborative approach has been used throughout the preparation of this MSR report.
Initially, an introductory questionnaire was distributed to PVHD on July 1, 2025 advising of the upcoming MSR process and requesting specific information related to general administrative and operational functions, services provided, financial information including recent budgets and audits, and specific information regarding the recent financial struggles which has resulted in significant suspension of key hospital services and real time fiscal insolvency. All information readily available in historical files or on the PVHD website was reviewed for applicability to the MSR update technical analysis and report. Follow up on the responses to the questionnaire and website information were performed when necessary. Additionally, staff conducted data collection discussions with City of Blythe elected and staff personnel, the Riverside County 4th District Supervisor and staff, the Riverside University Health System Executive Director, PVHD’s Chief Executive Officer and Chief Financial Officer, and the Chief Executive Officer of the Desert Healthcare District.
Once the PVHD information in hand was considered sufficient to develop the MSR report, an Administrative Draft Report was generated and then sent to the PVHD management staff for review and comments. All comments received were considered and incorporated where appropriate. The Public Hearing Report was then completed and released to the public on September 3, 2025, and noting written comments were being accepted.
Additional comments will be taken during the public hearing and addressed as necessary.
Upon final action by the Commission for the MSR determinations and recommendations, a Final Report incorporating any revisions and/or direction provided by the Commission will be completed and published.
Agenda Item 8.
13 III. PALO VERDE HEALTHCARE DISTRICT
This Section provides a comprehensive review of the current status of the PVHD as follows:
• A brief background/history of the agency
• A general profile of agency services, infrastructure, and financial information • A boundary map with a sphere of influence boundary overlay • A detailed discussion of agency operations and finances • Recommended MSR Determinations
Section IV further on is a list and discussion of Options and Recommendations available to the PVHD for potentially resolving the short-term and long-term financial situation and to return the Palo Verde Hospital to a fully functional facility.
OVERVIEW / BACKGROUND
The PVHD was officially formed in 1948 as a special district in accordance with the State of California Health & Safety Code, and currently operates under Health & Safety Code section 32000 et seq. The District encompasses approximately 1,022 sq. mi. including the City of Blythe, and the unincorporated communities of Mesa Verde, Ripley and Midland. Population served within the District is estimated at approximately 18,000.
PVHD’s SOI is primarily coterminous with its current service boundary, with the exception of an extension to the west to the Desert Healthcare District boundary as the PVHD is the most logical service provider for the unincorporated communities of Desert Center, Eagle Mountain, and Lake Tamarisk.
Historical Information (PVHD Website and Riverside LAFCO Documents) In 1925, the American Legion turned over its clubhouse to be used as a hospital named Palo Verde Health Center. In 1937, the facility now called Palo Verde Hospital opened its doors as an official unit of the County Medi-Cal Administration as the Blythe Branch of Riverside County Hospital. Over the years, the hospital has changed hands and on more than one occasion was temporarily closed – especially during the hot summer months. In 1948, a non-profit corporation was formed to create what is now known as the Palo Verde Healthcare District.
The Palo Verde Healthcare District was created for the purpose of purchasing and reopening and operating the Palo Verde Hospital, owned at the time by the Palo Verde Healthcare Association. In the 1990s, the hospital encountered financial difficulties, and because of which, PVHD leased it to Brim Healthcare, Inc. for management and operation. In 2002, the newly elected PVHD Board of Directors challenged the lease and made the decision to terminate the lease agreement. Lifepoint Hospital Inc. took over the operations of the hospital under the new lease agreement. However, in 2005, Lifepoint Agenda Item 8.
14 Hospital, Inc. terminated the lease, and PVHD took back control of the hospital operations. PVHD continues to be responsible for operating the Palo Verde Hospital.
Mission Statement:
“To deliver and strengthen the provision of safe, effective, and quality healthcare services, for our patients and a diverse community, through integrated partnerships that advance care coordination, wellness, and prevention.”
Vision Statement
“We want to be recognized as a preferred provider of healthcare services, achieved through continual implementation of our core values.”
Core Values
“Our mission and vision are guided by our core values and principles:” Purpose
Respect
Integrity
Dedication
Engagement
The Palo Verde Hospital is designed and originally staffed as a fully functioning hospital providing all outpatient, emergency and surgical services and support activities. The hospital is also accredited as a Critical Access Hospital, a key element of receiving higher reimbursement rates for some inpatient and outpatient services and allows for the hospital to operate with “swing beds.” Additionally, the hospital operates the Palo Verde Hospital Community Clinic, a clinic licensed as a Rual Health Clinic.
Over the last 20 years, the PVHD has experienced periods of financial stress and several Riverside Grand Jury reviews which resulted in improvements made over the years in services and financial resiliency. However, with the advent of the COVID-19 pandemic in 2020-2021 and the subsequent impacts on PVHD, the hospital reached a point where operations and services were in serious jeopardy.
It is apparent that COVID-19 related financial issues, along with what could be considered the classic “train wreck” of events beginning in 2023 through the present time created what could be considered, a “no win” situation for PVHD. Several events occurred during this time frame all contributing to creation of the situation today. These included a reduction in Medicare rates, and the litigation costs associated with the lawsuit against Altera to recover the massive lost patient health data as a result of software failures of their medical record system resulting in delays in ability to invoice and receive reimbursements from insurance and other sources, in particular, Medicare and Medi-Cal.
Additionally, the turnover of four Chief Financial Officers during an 18-month period, a Agenda Item 8.
15 cyberattack on the financial system, and additional costs for a third-party billing service to assist in resolving the invoicing backlog all contributed to the deterioration.
The result of these issues occurring essentially at the same time has forced the PVHD to suspend surgical and admittance/inpatient services, significantly reduce staff, and issue a Board of Directors resolution to declare a Fiscal Emergency to allow for authorization for filing of a Chapter 9 Bankruptcy Petition if it is inevitable to be necessary.
In an attempt to recover, the PVHD has adopted a 60-day Emergency Plan to take certain measures to stabilize the budgetary and cash flow issues and implementing the suspension of the surgical and admittance services. The Emergency Department, Radiology & Laboratory Departments, the Clinic and support functions for these departments remain available.
Further discussion on the financial status of PVHD and the PVHD efforts planned for obtaining solvency are discussed in the FINANCIAL OVERVIEW section following further in this report.
On the following pages, Table III-1 provides a snapshot profile of the PVHD, and Figure III-1 provides a map of the PVHD current boundary and SOI.
Table III-1 reflects information for the most recent audit for Fiscal Year Ending June 30, 2022. However, due to the lack of audited information for FYE 2023/2024, unaudited end of year actual and/or projected financial information is provided in Table III-2 under Financial Overview with a full discussion.
Agenda Item 8.
16 Table III-1- Profile- Palo Verde Healthcare District General Information
Agency Type Municipal – Local Healthcare District
Principal Act California Health & Safety Code section 32000-32492 Date Formed 1948
Services Provided Hospital services- surgical, emergency, radiology, laboratory, support functions
Location PVHD Office & Hospital- 250 N. First Street, Blythe, CA 92225 (760) 922- 4115
Sq. Miles/Acres Approximately 1,022 sq. miles within the PVHD boundaries.
Contact Sandra J. Anaya, Chief Executive Officer:
[email protected]
Website www.paloverdehospital.org
Population Served Estimated 18.000 (City of Blythe and communities of Mesa Verde & Ripley) Last SOI Update 2021
Governance/Staffing
Governing Body 5-member Board of Directors, elected at large Terms 4-year staggered terms
Meeting Information Recently- Last Wednesday of the month at 6:00pm at the Blythe City Hall City Council Chambers, 235 N. Broadway, Blythe, CA 92225.
Total Staff Approximately 120-125 employees (when fully staffed) Staff Categories Chief Executive Officer, Administrative Staff, Hospital Staffing including physicians, nursing, laboratory, clerical and patient support staff.
Facilities/Other Infrastructure
Facilities Hospital Facility- Palo Verde Hospital
Other Infrastructure None
Financial Information- FY 21/22 Actuals (Audited Financial Statements) Latest Available Revenues Expenditures Net Surplus/(Deficit)
Proprietary Fund $23,404,709 $21,203,727 $2,200,982
FY 21/22 Long-term Planned Expenditures
Capital Expenditures None Hospital Building retrofits for Earthquake Safety standards pending funding
Unrestricted Net Position
(Fund Balance) $13,678,899 June 30, 2022 Financial Statement Capital Assets (Net) $3,416,650 June 30, 2022 Financial Statement Net Position $16,713,366 June 30, 2022 Financial Statement Debt & Unfunded Pension/OPEB Liabilities- Year Ending June 30, 2022 Long-term Liabilities $2,474,322- loans with the California Health Facilities Financing Authority Unfunded Pension Liability None
Unfunded Other PostEmployment Benefits
(OPEB) Liability
None
Note: The Palo Verde Healthcare District has not had an Audit since FY 21/22, however PVHD staff indicates audits for FY 22/23 and 23/24 are in progress.
Note: The loans carried as long term liabilities are reported as subject to eventual forgiveness.
Agenda Item 8.
17 Figure III-1- Boundary/SOI Map – Palo Verde Healthcare District Agenda Item 8.
18 GROWTH AND POPULATION PROJECTIONS
The PVHD currently serves an estimated population of approximately 18,000 over a geographical area of approximately 1,022 square miles. The PVHD encompasses the City of Blythe, and the unincorporated communities of Mesa Verde, Ripley and Midland (currently an unpopulated ghost town).
The general population is mainly low to middle income residents and a diversified ethnic mix, with the largest being Hispanic followed by Caucasian ethnicity. It is noted that there are nine (9) disadvantaged unincorporated communities within the PVHD boundaries.
The service area most likely has some potential for growth most notably within the City of Blythe, however, recent history from the California Department of Finance reflects population stagnation mostly and a recent significant decrease in the City of Blythe population over the last few years.
Blythe 4/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25
18,778 17,403 17,285 17,250 17,447 15,400
The data over the last 6 years represents an overall population decrease of approximately 18 percent. Additionally, the populations of the unincorporated communities of Mesa Verde and Ripley combine at approximately 1,625. The PVHD also services Ironwood State Prison housing approximately 3,280 inmates, and was servicing the Chuckawalla State Prison until its closure in 2024 contributing to the loss of population services for the hospital.
Although the PVHD does not retain any land use planning and entitlement authority as those functions are reserved for the cities, and the county for unincorporated areas, the PVHD must anticipate and forecast future demands. Although the population of the City of Blythe has decreased fairly significantly recently, the PVHD must be prepared to anticipate that hospital services will see increased demands proportionate with any future population growth that may occur.
ACCOUNTABILITY AND GOVERNANCE
Governance
PVHD is governed by a five-member Board of Directors (Board), elected at large to fouryear staggered terms. The selection of Board members is through an election within the PVHD and is consolidated with other statewide elections. The candidates receiving the highest number of votes for the positions to be filled are elected. Board members each serve for a period of four years. It should be noted that due to insufficient candidates submitting for election to the Board in 2022 and 2024, the current Board members were automatically appointed to the Board with the current term expiration dates.
The PVHD Board has reported that it meets every 4th Wednesday of the month at 6:00pm at the City of Blythe City Hall, City Council Chambers located at 235 N. Broadway, Blythe, Agenda Item 8.
19 CA 92225. However, past meetings have taken place at the Palo Verde HospitalConference Room at 5:00pm every 4th Wednesday of the month.
The PVHD’s Board consists of a President/Treasurer, Vice President, Secretary/Director, and two (2) Directors. There are no current vacancies on the Board. All ethics trainings are current for four Board members, recently completed in 2025, with one Board member current until August of 2025. Form 700 filings are current for all but one Board member.
Additionally, a Parliamentary training for the Board was held on February 21, 2025, and was open to the public All but one Board member attended this training.
PVHD Board of Directors Term Expires
Sandra Hudson 2028
Trina Sartin 2028
David Brooks 2026
Carmela Garnica 2026
Rosalie Rowell 2026
The PVHD maintains four committees considered standing committees- Finance/Audit, Legal, Personnel and Facilities. Each committee contains two Board members. These committees only meet when necessary, however the PVHD notes that the Finance Committee does generally meet as frequently as necessary and preferably on the 2nd Wednesday of the month at 5:00pm.
Additionally, On May 30, 2025, the City of Blythe established a Palo Verde Hospital Ad Hoc Committee to work with the PVHD as they work to resolve the situation with the hospital suspension of services. The City Council appointed Vice Mayor Joey Rodriguez and Councilman Sam Burton to the Committee, with Mayor Joey DeConinck as an alternate. The PVHD Board appointed three representatives to serve on the Committee:
President Carmela Garnica, Vice President Rosie Rowell, and Interim Chief Financial Officer Michael Rose. This Committee has met several times since establishment and is working together toward the mutual goal of a fully functional hospital.
Website Transparency
The PVHD (Palo Verde Hospital) website is the primary vehicle for disseminating information to the PVHD constituency. As the PVHD solely provides hospital services, the website is primarily focused and sufficiently organized to provide relevant information related to those operations.
Access to information relevant to PVHD administrative operations and information is listed under the link titled “Board Agendas & Minutes” which is located at the very bottom of the Home Page under a Quick Links heading. It should be noted that the manner in which this link is set up and is not a direct access link to the most current Board agenda, appears to be inconsistent with Government Code section 54954.2, and should be resolved by including a direct link to the most current Board agenda in a prominent place on the website Home Page.
Agenda Item 8.
20 Meeting agendas and written staff reports are posted on the website, however, Board minutes have not been posted since March as the Board continues to postpone adopting the minutes for several Board meetings. The website does not contain direct email addresses to contact Board members nor for the PVHD & Hospital CEO for direct access.
There is direct email access for PVHD administrative staff and some for certain hospital personnel. The website does maintain a Contact link in two places for accessing phone numbers and hospital departments.
Pertinent financial information for the PVHD including budgets, budget update information and the last audit for Fiscal Years ending June 30, 2021 and 2022 are included on the website under the Board Agendas link and sub-links. The Board Agendas link and sublinks also include agendas for the Finance Committee meetings, and links to other informative documents. There is no PVHD staff compensation information available on the website.
Customer/Constituency Communication
The PVHD reports that “the Palo Verde Hospital website is regularly updated with the latest information, offering the community a reliable and accessible source for updates.
The PVHD also distributes public notices to the local radio station, KJMB-FM, to further broaden outreach. Community members are encouraged to reach out with any questions, comments, or concerns. Inquiries can be directed to the Clerk of the Board.” Customer/Constituency Accountability
The PVHD notes: “The Palo Verde Healthcare District remains committed to transparency and keeping its constituents and the broader community informed about the District’s activities, including the current financial situation and its impact on services, employees, and the community as a whole.”
The PVHD further notes: “to ensure ongoing communication, the District posts agendas for regular meetings 72 hours before the meeting and for special meetings at least 24 hours before the meeting.” Since the PVHD has been experiencing a fiscal crisis, there has been a standing agenda item to provide updates on such things as operations and financial matters.
PVHD also notes: “Since November 2025 (2024), all budget discussion of the Board are conducted in open session, also since that time there has been staff reports for every agenda item in an effort to keep both the Board and the public fully appraise of the items under consideration. Also, since that time the PVHD reports that closed session is limited only to those items that are properly discussed in closed session pursuant to the Brown Act, the Healthcare District Law, and other applicable laws. These meetings are open to the public and serve as a key platform for sharing important developments.” With respect to financial transparency, refer to the discussion in the FINANCIAL OVERVIEW section which follows further in this report.
Agenda Item 8.
21 SERVICES – FACILITIES- INFRASTRUCTURE
Service Overview
Significant planning documents for many healthcare districts are the Community Healthcare Needs Assessment (CHNA) and Community Healthcare Implementation Plan (CHIP) that are required as part of the Affordable Care Act. As an alternative to these planning documents, PVHD maintains a strategic plan developed in 2014 and recently updated, and annual strategic goals to guide future program and service efforts. The Strategic Plan notes:
“The hospital is licensed for 51 acute care beds and is designated as a sole community government hospital offering a continuum of Medi-Cal, surgical, and obstetrical services. The hospital also provides basic emergency services with a physician on duty at all times. Patients of all ages are evaluated and treated in the ED. Major trauma patients are not routed to the facility by EMS providers. The hospital operates twenty-four hours a day, seven days a week for bedded services, and employs or contracts with approximately 150 full time equivalents.” “General acute medical, surgical, and obstetrical services are offered on an inpatient or outpatient basis. The hospital does not perform invasive, interventional cardiac or surgical procedures. Pediatric patients with non life threatening conditions are admitted to the facility on an infrequent basis. Pediatric patients or newborns needing Intensive Care Services are transferred from the ED to facilities providing those services…”
As noted, the Strategic Plan outlines the overall menu of services that a rural hospital generally provides and is not considered a “trauma facility.” Additionally, the PVHD has recently implemented a policy document “Scope of Services/Plan for Provision of Care and Service.” This new policy identifies in great detail leadership and patient services responsibilities for a variety of administrative functions and patient services.
General hospital services provided prior to the suspension included Medical-Surgical, Radiology, Emergency Department, Cardiopulmonary, ICU/Critical Care, Surgical Recovery Room, Laboratory, and Pharmaceutical services.
Services suspended as noted by the hospital include Medical-Surgical Services and Surgical Recovery Room services. Additionally, the Strategic Plan does note that the ICU/Critical Care services have not been provided in the past. These suspended services represent the most important aspect of service delivery impact as the closet other hospitals that provide these services are a significant distance away.
The PVHD currently holds an Accreditation as a “Critical Care Hospital” through DNV, the federally designated certification authority for this level of accreditation. This allows for utilization of “swing beds” in a total of 25 beds in the hospital.
Although the PVHD has budgeted for the current fiscal year 2025/26, necessary Agenda Item 8.
22 resources to provide all services not under the suspension, the PVHD notes that restoration of those suspended services will be a long-term process until an adequate cash flow to support elimination of deficit spending is achieved.
The PVHD currently contracts security, anesthesia, laboratory, radiology reporting, and as needed legal support and audit services. Additionally, the PVHD does maintain individual service contracts with various medical/surgical professionals. The PVHD notes that the currently suspended services also impact the contracts for these medical/surgical providers and the security and anesthesia contracts. The PVHD does not provide contract services to other agencies.
Facilities/Infrastructure & Required & Planned Improvements PVHD operates one 51 bed hospital (Palo Verde Hospital) and clinic consisting of five (5) separate structures located at 250 N. First Street, Blythe, CA 92225. The PVHD administrative activities are consolidated at the hospital. The PVHD does not possess any other facilities or infrastructure.
The five-building complex is inherently old and requires ongoing maintenance, Buildings A, D and E were constructed in 1937. Buildings B and C were constructed in 1961 and 1978 respectively. The primary need for the hospital buildings are earthquake safety renovations to bring the hospital buildings up to current state earthquake standards.
However, as sufficient funds to perform these renovations is not available, the hospital will remain in the current state.
The PVHD reports that it has been actively engaged in obtaining funding for the necessary renovations, however, has not been successful in obtaining sufficient funds for the needed improvements.
The PVHD also notes that due to the current financial situation, routine maintenance to the hospital building such as stucco work and painting and updating the employee entrance have been placed on hold, Additionally the Building D roof project has been placed on hold.
Service Adequacy
As noted above, with the current suspension of surgical and admittance/inpatient services, the hospital is no longer providing these services that they were providing, and should be providing given this is the only hospital within 100 miles of another hospital in the state. The closet hospitals that provide the suspended services are more than an hour drive, although there is a closer hospital across the Arizona border in Quartzsite, AZ.
Prior to the onset of the current financial crisis, the hospital was providing the services it has intended to provide, although has been challenged with financial issues for a number of years. Several hospital services continue to be provided- Radiology, Emergency Agenda Item 8.
23 Services, Laboratory, and Pharmaceutical and support function for these services, and the Community Clinic services.
Cooperative Programs
The PVHD reports that there are no specific cooperative type programs that the District/Hospital is affiliated, however the District/Hospital does work with the Palo Verde Hospital Foundation, a 501c(3) non-profit organization formed in 2006 with the purpose of fundraising and creating a donor base to support hospital operations.
FINANCIAL OVERVIEW
PVHD carries all operational budgeting and accounting consolidated in one enterprise “Proprietary” Fund, and includes all assets and liabilities of the PVHD in accordance with Governmental Accounting Standards Board (GASB) pronouncements, all Financial Accounting Standards Board (FASB) Statements and Interpretations, all Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARBs), no matter when issued, except those that conflict with a GASB Pronouncement, as noted in the Fiscal Year Ending June 30, 2021 & 2022 (FYE 2021/2022) audit documents.
The PVHD normally conducts an independent audit bi-annually, however, PVHD staff notes that as a result of the recent financial crisis and the heavy turnover of CFOs in the last 18 months, the FYE June 30, 2023 and 2024 audits just recently got underway and are not yet available. The most recent previous audit for FYE 2021/2022 does reflect an “unmodified” opinion:
“In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Palo Verde Health Care District as of June 30, 2022 and 2021, and the changes in its net position and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.”
The audit for FYE 2021 and 2022 also reflects adjustments made due to implementation of GASB 87 for reflecting lease revenues and expenditures, and lease liabilities.
The operating loss for FYE 2022 increased by $3,656,800 as compared to FYE 2021 as noted in the FYE 2021/2022 audit. This significant change is primarily attributable to the continued effects of the coronavirus pandemic on net patient revenue.
However, the infusion of the one-time CARES Act Provider Relief Fund grant revenue allowed for an overall net surplus for FYE 2022 and resultant increase in Net Position. Additionally, the Paycheck Protection Program loan revenue from 2021 was eventually forgiven.
The PVHD reports that the significant Unrestricted Net Position (fund balance) at the end of FY 2022 of $13,678,899 included a total of $10.1 million in grants from the post Agenda Item 8.
24 COVID-19 CARES Act. PVHD reports that much of these funds were expended in FYE 2023 and 2024.
The PVHD also reported in the FYE 2021/2022 Audit Management Discussion and Analysis (MD & A), as required by GASB, bad debts and charity care are reported as components of net patient revenues rather than as operating expenses. The PVHD experienced $2,211,329 in 2022 and $1,619,934 in 2021 provision for bad debt expense, and provided $76,734 and $153,955 in charity care for the years of 2022 and 2021, respectively. This is common for all medical/hospital service providers but clearly has exacerbated the situation at PVHD.
The financial performance of the PVHD as a whole is reflected in its current unaudited FYE June 30, 2024 financial statements developed by PVHD staff. PVHD notes completion of FY 23/24 with its Proprietary Fund reporting an overall operating deficit of $8,161,534, with a current Net Position of a negative $3,007,176 and an estimated Unrestricted Net Position of $5,154,358.
The projected status for FYE June 30, 2025 is reflected in its current 3rd Quarter report developed by PVHD staff. PVHD notes a projected completion of FY 24/25 with its Proprietary Fund reporting an overall operating deficit of $4,347,984, with a projected Net Position of a negative $7,355,161 and an estimated Unrestricted Net Position of $803,374.
This significant reduction in Unrestricted Net Position during FY 23/24 projected through FYE 2025 is a result of the deficit spending the PVHD has experienced in the last two years overall.
The primary revenue sources for PVHD are derived from charges for services and some non-operating income which take the form of:
• Reimbursement for allowable charges from Medicare, Medi-Cal, private insurance, and self-pay patients.
• Cost-based allowable reimbursements as component of the Critical Access Hospital designation by Medicare and Medi-Cal which reimburse the hospital based on actual costs incurred for allowable services.
• Monthly payments from managed care organizations (Medi-Cal managed care or Medicare Advantage) which support outpatient and preventive care services. • Supplemental Payments Programs through Medi-Cal such as Intergovernmental Transfers (IGTs) and Quality Assurance Fee (QAF) provide additional funds to offset under-reimbursement from Medi-Cal.
• Non-operating revenue is derived from property tax, rentals, cafeteria, investment earnings, or leased Medi-Cal office space.
Some specific actions are being taken to reduce costs associated with the overall financial situation and the current suspension of services, the most significant being staff reductions:
Agenda Item 8.
25 • Implemented temporary furloughs, shift reductions, and/or elimination of per-diem and overtime hours fornurses, and radiology staff, and eliminated vacant positions, all as a result of fewer patients due to suspended services. • Halted regular ordering of medical supplies not needed when elective procedures, inpatient care, or diagnostics are paused.
• Decreased spending on electricity, water, laundry/linen services, and environmental services due to fewer rooms and departments in use results in lower operating costs.
Two loan programs that the PVHD has entered into through the California Health Facilities Financing Authority (CHFFA) have assisted in allowing the hospital to provide the current services, however, cannot support the suspended services for the short or long term. The loans are:
• $8.5 million- Distressed Hospital Loan Program- this is a loan that was part of a $300 million dollar package for loans to rural distressed hospitals throughout the state. The PVHD has been utilizing proceeds from this loan since approved August 31, 2023. Payments on the loan had a 180-day grace period which has recently expired, however no loan repayments have been made at this time. • $591,121 Non-designated Public Hospital Bridge Loan Program II bridge loan- The original loan amount of $600,000 has been slightly paid down however, payments have been suspended.
Following is the current status of these two loans as relayed by the PVHD management staff which has allowed these two loans to no longer remain in default.
As noted in the Executive Summary, it was announced that the state had assisted in funding for the hospital. According to PVHD staff, the state did not provide any additional direct funding for the hospital to maintain operations. The state did extend the NonDesignated Public Hospital Bridge Loan Program debt for $8.5 million for PVHD whereby a portion of this loan may be “forgiven” each year. Additionally, the state also deferred payments of the other outstanding state bridge loan of approximately $600,000 for three years, with potential “loan forgiveness.” According to PVHD staff, these concessions, although helpful, do not resolve the current significant revenue and cash flow problem, even in the short-term. As a result of these actions, the PVHD reports that they are currently not in technical default on any debt obligations at this time.
It should also be noted that although deferrals for the two bridge loans were authorized by the state, the financial statements will still reflect the loans as long-term liabilities.
However, from a cash flow perspective, the operational budget is unaffected. It is noted that at the end of FY 2024, the PVHD noted that Cash & Equivalents & net Accounts Receivable totaled $9,399,812. For FY 2024/2025, as of March 2025, these same accounts totaled $14,547,498. Additionally, for FY 2024/2025, PVHD has been drawing down portions of the $8.5 million loan to try and sustain the services still being provided while downsizing the staffing and support functions not required.
Agenda Item 8.
26 The PVHD District currently has no current debt service requirements due to the deferrals of the state loans, no other significant long-term liabilities, and no pension or OPEB liabilities.
Overall, the financial position of the PVHD is clearly considered very unstable at this time, with significant cash flow issues due to lack of ongoing revenues resulting in major service reductions and resultant expenditure reductions for staffing and other support services.
The short-term outlook is an unknown as to ability to meet the goals of the 60-Day Emergency Plan implemented, and the revenue projections in the FY 2025/2026 budget.
Additionally, the long-term outlook is also considered questionable unless sufficient longterm cash flow requirements for sustainability and eventual restoration of the suspended services can be achieved.
The immediate need is a significant cash infusion to the PVHD to sustain the short term, and eventually as noted, a stable long term revenue stream sufficient to support a fully operational and staffed hospital as is needed in the Blythe and Palo Verde region.
Table III-2 on the following page provides a snapshot of key financial data from the last three fiscal years. An analysis of the data related to several key financial status and financial health indicators follows.
Due to the lack of audited information for FYE 2023/2024, unaudited end of year actual and/or projected financial information is provided in Table III-2 for FYE 2024, and current projections for FYE 2025.
Agenda Item 8.
27 Table III-2- Financial Information – Palo Verde Healthcare District Financial Information (2022 Actuals- Audited Financial Statements, 2024 & 2025- Unaudited End of Year and Projected Actuals)
FY 21/22 FY 23/24 FY 24/25
Proprietary Fund Revenues/Transfers $23,404,709 $17,020,283 $20,633,117 Proprietary Fund Expenditures/Transfers $21,203,727 $25,181,817 $24,981,101 Proprietary Fund Surplus/(Deficit) $2,200,982 ($8,161,534) ($4,347,984) Capital Outlay None None None
Debt Service Expenditures None None None
Long-term Liabilities $2,474,322 $10,178,017 N/A
Unrestricted Net Position (Fund Balance) $13,678,899 $5,154,358 $803,374 Restricted Net Position (Fund Balance) None None None
Capital Assets (Net of Depreciation) $3,416,650 $6,267,684 N/A Unfunded Pension Liability None None None
Unfunded OPEB Liability None None None
Net Position $16,713,366 ($3,007,176) ($7,355,161)
Note- N/A means Not Available as audited financial statements are unavailable, and amounts could not be estimated from unaudited end of year documents. None means not applicable to PVHD.
Note- Unrestricted Net Position (Fund Balance) for FY 23/24 & 24/25 is an estimate calculated from the FYE 2022 audit and the FY 23/24 & FY 24/25 unaudited revenue/expenditure estimates.
Note- Capital Outlay excludes maintenance items that are listed as operating expenditures.
Note- PVHD incurs no Pension or OPEB liabilities.
There are nine primary areas of criteria that have been utilized for this report to assess the present and future financial condition of any Special District’s ability to provide efficient service operations as discussed following:
1. 3-Year Revenue/Expenditure Budget Trends
2. Ratios of Revenue Sources
3. Ratios of Reserves or Fund Balance to Annual Expenditures
4. Annual Debt Service Expenditures to Total Annual Expenditures
5. Net Position
6. Pension and OPEB Unfunded Liabilities
7. Capital Assets and Capital Improvement Plan
8. Fee Structure for Services Provided
9. Cost Avoidance Programs
3 Year Revenue/Expenditure Budget Trends
A trend analysis of revenues and expenditures provides a relatively quick snapshot of financial stability, and financial management of budgetary ebbs and flows over a short period of time.
Agenda Item 8.
28 For PVHD, the Proprietary Fund revenue is heavily dependent on patient charges for services, which in turn primarily comes from Medicare and Medi-Cal reimbursements along with insurance company payments making up 85-90% of the PVHD revenues.
Patient co-payments make up a lesser portion, and grant revenue supplements when it is available. PVHD does receive a very small (less than one percent of annual budget) amount of general property tax. The trend currently reflects a downward trend of revenue based on the suspension of services recently implemented and resultant foregone revenue from those services.
Ratios of Revenue Sources
Diversity of revenues is an indicator of any public agency’s ability to withstand a major loss in one revenue stream without a significant impact to operations and services.
Ideally, an agency should have 3-4 revenue streams that are as equally balanced as possible, however, that isn’t always possible in some agencies.
As noted before, there is virtually no opportunity for diversification of revenues as the nature of the healthcare/hospital industry is driven by reimbursement rates for patient services set by Medicare, Medi-Cal and insurance companies, regardless of the actual cost of those services.
The PVHD does not maintain any Benefit Assessment or Special Assessment districts, and to create one for a special assessment to help fund operations would require a ballot measure under Prop 218. The only true opportunity for PVHD to gain additional revenue would be through a negotiated greater share of the property tax increment it currently receives.
Ratio of Reserves or Fund Balance to Annual Expenditures An indicator of the ability to absorb an unexpected loss of revenue in a given fiscal year is exhibited by the amount of unrestricted cash reserve or fund balance the service fund maintains in relation to the annual fund expenditures. A ratio of 30% or greater of fund balance/reserve to annual expenditures is generally considered an adequate ratio to maintain.
As PVHD has virtually no reserves at this point in time, there is no ratio to assess.
Although maintaining reserves for emergency situations such as this is a paramount necessity, achieving capacity to build reserves over the years has been elusive for PVHD.
Annual Debt Service Expenditures to Total Annual Expenditures The ratio of annual debt service to total fund annual expenditures is an indicator of the District’s ability to meet debt obligations in relation to service provision expenditures.
Ideally, a ratio of 10% or less would reflect a very stable ratio.
Agenda Item 8.
29 PVHD has no bond or secured debt. Therefore no ratio to assess, which in turn is a positive aspect to overall financial stability. However, as noted, PVHD does currently maintain two state loan obligations totaling over $9 million which are currently in a deferred status.
Net Position
An agency’s “Net Position” as reported in its audited financial statements represents the amount by which assets (e.g., cash, capital assets, other assets) exceed liabilities (e.g., debts, unfunded pension and OPEB liabilities, other liabilities). A positive Net Position generally provides an indicator of financial soundness over the long-term. However, Net Position also includes the value of capital assets that may or may not be easily liquidated.
Therefore, Net Position could potentially be skewed when viewing it in the aspect of liquidity.
PVHD’s FY 21/22 ending net position was calculated by the auditors at $16,713,366 with $13,678,899 as unrestricted. As compared to annual revenues and expenditures, this is a significant amount of net position, indicating stability with its ongoing activities at that time. However, as noted over the recent past, this situation has significantly deteriorated for the foreseeable future.
The operating loss for 2022 increased by $3,656,800 as compared to 2021. This significant change is primarily attributable to the continued effects of the coronavirus pandemic on net patient revenue. However, the infusion of the Provider Relief Fund grant revenue allowed for an overall net surplus for FYE 2022 and resultant increase in Net Position.
Since then the Net Position for the PVHD has declined to a point where the current projection at the end of FY 2025 is estimated to be a negative $7,355,161, clearly a trend that is not sustainable for the PVHD to remain functional.
Pension and OPEB Unfunded Liabilities
Unfunded pension and OPEB liabilities present one of the most serious fiscal challenges facing many public agencies in California today. When reporting required under Government Accounting Standards Board (GASB) Statement #68 was implemented, many public agencies were awakened by the reality of the long-term unfunded liability aspect of their respective pension and OPEB obligations.
The PVHD has no unfunded pension or OPEB liabilities.
The Palo Verde Hospital 401(a) Retirement Plan is a defined contribution money purchase retirement savings plan established to provide retirement benefits for all eligible employees. The hospital makes a matching contribution equal to 100 percent of eligible employee contributions, up to a maximum of three percent of employee compensation.
Agenda Item 8.
30 Additionally, the PVHD does not provide post-employment benefits to retirees that would accrue an unfunded liability.
Capital Assets and Capital Improvement Program
Capital assets must be adequately maintained and replaced over time and expanded as needed to accommodate future demand and respond to regulatory and technological changes. Depreciation typically spreads the life of a facility over time to calculate a depreciation amount for accounting purposes. The actual timing and amount of annual capital investments require detailed engineering analysis and will differ from the annual depreciation amount, although depreciation is a useful initial indicator of sustainable capital expenditures.
PVHD’s capital assets include the hospital facilities comprising five separate buildings.
As of June 30, 2022 the District had $10,603,257 in capital assets and $7,186,607 in accumulated depreciation, resulting in $3,416,650 net capital assets.
The PVHD does not utilize a formal Capital Improvement Program as it is not necessarily warranted for the infrastructure necessary for the services provided. However, there is a significant amount of structural modifications required to bring the hospital buildings up to current earthquake safety standards. The PVHD has struggled over the years to obtain funding for the required retrofits.
Fee Structure for Services Provided
Most public agencies charge fees for various direct benefit services provided. Fees are required to reflect the general overall cost of a specific service provided to individual constituents.
The PVHD charges fees for all the individual services which are available. As the primary source of revenue for operating and maintaining the hospital, and providing the hospital services, a comprehensive internal fee schedule is maintained and is subject to change based on private insurance providers, and Medicare and Medi-Cal reimbursement rates.
It should be noted that reimbursement rates from the aforementioned providers generally are significantly less than the hospital charge rates. Co-payments by patients do not always get recovered creating a large volume of bad debt write offs.
Cost Avoidance Programs
The PVHD notes that necessary cost cutting and cost avoidance measures are being implemented due to the current situation, however, no formal programs exist. As a regulated hospital subject to strict regulations regarding Medi-Cal services and pharmaceuticals provided to patients, the hospital is sometimes at the mercy of the suppliers.
Agenda Item 8.
31 DISADVANTAGED UNINCORPORATED COMMUNITIES
There are a total of nine DUCs within the PVHD boundaries. Three are associated with the City of Blythe, and six others are outside the City of Blythe SOI, however within the PVHD boundaries.
STATUS OF ISSUES IDENTIFIED IN MOST RECENT MSR
The previous MSR completed in 2020 notes that PVHD was concerned about the future financial health of the hospital due to evolving reimbursement structures of federal, state and private payers, in particular uncertainty in Medicare payments.
GOVERNMENT STRUCTURE ALTERNATIVES
There are various governmental structure alternatives that would be available for consideration if determined necessary to restore a fully functioning hospital. These alternatives are discussed in Section IV following below.
RECOMMENDED MUNICIPAL SERVICE REVIEW DETERMINATIONS
Based on the information, issues, and analysis presented in this report, proposed MSR determinations pursuant to Government Code section 56430 are presented below for the LAFCO Commission’s consideration:
1) Growth and Population Projections
• The PVHD currently serves an estimated population of approximately 18,000 over a geographical area of approximately 1,022 square miles. The PVHD encompasses the City of Blythe, and the unincorporated communities of Mesa Verde, Ripley and Midland (currently an unpopulated ghost town). • The general population is mainly low to middle income residents and a diversified ethnic mix, with the largest being Hispanic followed by Caucasian ethnicity.
• PVHD’s service area most likely has some potential for growth most notably within the City of Blythe, however, recent history from the California Department of Finance reflects population stagnation mostly and a recent significant decrease in the City of Blythe population over the last few years. Some of the population decline was the recent closure of the Chuckawalla State Prison. • Although the PVHD does not retain any land use planning and entitlement authority as those functions are reserved the cities, and the county for unincorporated areas, the PVHD must anticipate and forecast future demands.
Agenda Item 8.
32 • Although the population of the City of Blythe has decreased fairly significantly recently, the PVHD must be prepared to anticipate that hospital services will see increased demands proportionate with any future population growth that may occur.
2) Location and Characteristics of Disadvantaged Unincorporated Communities Within or Contiguous to the District’s SOI. • There are nine disadvantaged unincorporated communities associated to the City of Blythe and/or within the PVHD boundaries.
3) Present and Planned Capacity of Public Facilities and Adequacy of Public Services, Including Infrastructure Needs and Deficiencies Related to Disadvantaged Unincorporated Communities
• The PVHD and the Palo Verde Hospital does not maintain the financial capacity for long-term provision of all services the hospital normally provides at this time.
• The PVHD is not meeting the level of service delivery the community not only desires, but is highly necessary for public health issues of a critical and noncritical nature. • The hospital facility is in need of significant renovations for meeting current state earthquake standards.
• There are no additional deficiencies related to the nine DUCs identified within the PVHD SOI other than that already identified.
4) Financial Ability of the District to Provide Services • Overall, the financial position of the PVHD is clearly considered very unstable at this time, with significant cash flow issues due to lack of ongoing revenues resulting in major service reductions and resultant expenditure reductions for staffing and other support services.
• The PVHD is in serious financial distress and does not have the financial ability to provide the full services of the Palo Verde Hospital. • Available cash assets are nearly depleted as PVHD works to cut costs as quickly as possible to support cash flow requirements.
• Surgical services and in-patient services have been suspended forcing patients to travel approximately 100 miles to the closet California hospitals.
Agenda Item 8.
33 • The PVHD Board of Directors has implemented a 60-Day Emergency Plan to address some of the short-term financial issues.
• The immediate need is a significant cash infusion to the PVHD to sustain the short term, and eventually, a stable long term revenue stream sufficient to support a fully operational and staffed hospital as is needed in the Blythe and Palo Verde region.
• The state did not provide any additional direct funding for the hospital to maintain operations. The state did extend the Non-Designated Public Hospital Bridge Loan Program debt for $8.5 million for PVHD whereby a portion of this loan may be “forgiven” each year. The state also deferred payments of one other outstanding state bridge loan of approximately $600,000 for three years.
According to PVHD staff, these concessions, although helpful, do not resolve the current significant revenue and cash flow problem, even in the short-term. • The PVHD is not in default on any debt obligations at this time. • The PVHD normally conducts an independent audit bi-annually, however, PVHD staff notes that as a result of the recent financial crisis and the heavy turnover of CFOs in the last 18 months, the FYE June 30, 2023 and 2024 just recently got underway and is not yet available. The most recent previous audit for FYE June 30, 2021 and 2022 does reflect an “unmodified” opinion. 5) Status of, Opportunities for Shared Facilities
• There is no foreseeable opportunity for shared facilities as the hospital is unique to the type of services provided, and no other facility is within any reasonable distance to provide the services.
• Options are available for other governance or operational opportunities for the hospital.
6) Accountability for Community Service Needs, Including Governmental Structure, and Operational Efficiencies.
• The PVHD is governed by a five-member Board of Directors elected at large to four-year staggered terms by the registered voters within the PVHD boundaries.
• Hospital staffing is normally approximately 100-125 personnel, however during the suspension, layoffs and furloughs have resulted in a significant staffing reduction.
Agenda Item 8.
34 • The Palo Verde Hospital website acts as the PVHD website and provides various types of information related to hospital services and activities, and for PVHD Board and administrative activities.
• The website lacks transparency from the aspect of searching for agendas, meeting minutes and financial information as the link to the page for such is at the very bottom of the home page where most residents would not notice. That link should be much more visible on the website.
• There is no direct email contact information listed for Board members, nor the PVHD CEO on the website. Phone and email contact information for most staff is provided, however very difficult to find.
• Meeting agendas with staff reports are posted on the website, however, no meeting minutes have been posted since March of 2025.
• Only the FY 2021/2022 bi-annual audit is provided on the website, and financial information is mostly limited to monthly reports. The current PVHD draft budget for FY 2025/26 is listed on the website.
• Several alternative government structure options should be considered if the current PVHD management structure cannot correct the long-term structural issues of maintain a fully operational hospital.
7) Any Other Matter Related to Effective or Efficient Service Delivery, as Required by Commission Policy.
• The Commission has concerns regarding the overall financial and management status of the PVHD, and particularly the Palo Verde Hospital. • The Commission has requested an assessment of the PVHD’s ability to return the hospital to full operational status long-term, and other options available for governance and operation of the hospital if necessary.
Agenda Item 8.
35 IV. OPTIONS & RECOMMENDATIONS
OPTIONS: As noted in the Executive Summary, the GOAL is to restore the Palo Verde Hospital to a fully functional facility providing all services as previously provided and ensure long-term financial sustainability. So how do we get there? The following governmental and non-governmental options are available for consideration:
1) PVHD continue with implementing the Board of Directors adopted recovery plan. a. County of Riverside should exercise significant oversite of PVHD’s implementation of the recovery plan.
b. County of Riverside should provide all necessary assistance from the appropriate departments to ensure PVHD recovery plan is successful. c. Continue engagement by the Riverside University Health System for assistance in providing the current community support services. 2) Obtain state or County of Riverside funding to restore solvency, restore all suspended services, and clear all outstanding debt.
a. Funding should be sufficient to effectuate these items and achieve sustainability for a minimum of one year or such time as appropriate cash flow over time has allowed the suspended services to be maintained. b. State and County of Riverside should continuously monitor the financial status and activities of PVHD to ensure appropriate actions required to restore services are undertaken and managed.
c. Provide a permanent property tax augment sufficient to maintain a basic level of financial support.
3) Obtain commercial loan funding guaranteed by the state or the County of Riverside to restore solvency, restore all suspended services, and clear all outstanding debt. a. Funding should be sufficient to effectuate these items and achieve sustainability for a minimum of one year.
b. State and County of Riverside should continuously monitor the financial status and activities of PVHD to ensure appropriate actions required to restore services are undertaken and managed.
c. Any commercial funding should have a deferral component and a long-term payment term.
4) Lease the hospital to a public hospital or private hospital system. a. Lease agreement should return all suspended services within a given timeframe, and provide sufficient revenue to PVHD to cover any outstanding debt obligations and administrative functions of the PVHD.
Agenda Item 8.
36 b. PVHD to provide direct oversite of the hospital services and financial status of the hospital.
5) Form a Joint Powers Authority with the PVHD, the City of Blythe and the County of Riverside.
a. Allows for issuance of debt for operations and for the earthquake retrofit requirements.
b. Provides the best representative partnership for oversite of the hospital operations for all PVHD constituents.
6) City of Blythe or the County of Riverside assume ownership and operation of the hospital & dissolve the PVHD
a. LAFCO is authorized by statute to dissolve a special district. b. City of Blythe or the County of Riverside would have to have the capacity and financial ability to support absorbing the hospital. 7) Consolidate PVHD with Desert Healthcare District & dissolve the PVHD. a. LAFCO is authorized by statute to initiate a district consolidation and dissolution.
b. DHD would have to have the capacity and financial ability to support absorbing the hospital.
8) Sell the Hospital to a private provider & dissolve the PVHD. c. LAFCO is authorized by statute to dissolve a special district. 9) File for Chapter 9 Bankruptcy proceedings.
OBSERVATIONS & RECOMMENDATIONS: From the perspective of the LAFCO Executive Officer, the following recommendations are provided for consideration of a combination of governmental and non-governmental options that would be considered the best options to less preferrable options at this time:
1) Options 1 & 2- The PVHD continue working to right-size the hospital given the current funding constraints and adjusting the recovery plan as appropriate. The County of Riverside and the state must engage in obtaining significant cash grant funding, in the short term to assist in the recovery, no new loans, grant funding only, and all current state loans should be immediately forgiven. This combined Option should be considered the preferrable option.
2) Option 5- Formation of a Joint Powers Authority with PVHD, the City of Blythe and the County of Riverside. Due to the benefits for obtaining funding, oversight abilities for representing all constituencies, and the multiple agency oversite of the Agenda Item 8.
37 hospital operations, this is an appropriate Option to consider. This Option has significant strengths from several perspectives and should be given strong consideration.
3) Option 4- Lease the hospital to a public or private hospital provider under terms that the hospital would be allowed a certain period of time to return to a fully functional facility with all suspended services restored. Additionally, the lease terms should include sufficient funds for administrative oversite by PVHD. This Option would essentially place full responsibility of restoring the hospital to a fully functional status and maintain a fully functional hospital for the long term.
4) Option 3- Obtain commercial loan funding guaranteed by the state or the County of Riverside to restore solvency, restore all suspended services, and clear all outstanding debt. This option is not a strong option due to the nature of the lending market and the lending organizations qualification requirements, even with County of Riverside or state guarantees. This Option should only be considered if the preferred Options are discarded.
5) Options 6, 7 & 8 essentially dissolve the PVHD and assign successor agencies or a commercial hospital provider for restoring the suspended services and operating the hospital. Although these are options that are available, they are not necessarily preferable.
6) Option 9- Chapter 9 Bankruptcy- Clearly this would be a last resort and would not necessarily ever result in restoring the hospital to a fully functional facility.
Additionally, it could result in the hospital closing altogether. This Option is the worst-case Option and should only be considered if all else fails.
Agenda Item 8.
38 ACRONYMS
ARB Accounting Research Bulletin
CARES Act Coronavirus Aid, Relief, and Economic Security Act CEQA California Environmental Quality Act
CHFFA California Health Facilities Financing Authority
CHNA Community Healthcare Needs Assessment
CHIP Community Healthcare Implementation Plan
CKH Cortese-Knox-Hertzberg Reorganization Act of 2000
DUC Disadvantaged Unincorporated Community
FPPC Fair Political Practices Commission
FTE Full-Time Equivalent
FY Fiscal Year
FYE Fiscal Year Ending
GASB Government Accounting Standards Board
IGT Intergovernmental Transfer
LAFCO Local Agency Formation Commission
MSR Municipal Services Review
PVHA Palo Verde Hospital Association
PVHD Palo Verde Hospital District
OPEB Other Post-Employment Benefits
QAF Quality Assurance Fees
RUHA Riverside University Health System
SOI Sphere of Influence
Agenda Item 8.
City of Needles
817 Third Street, Needles, California 92363
(760) 326-2113 FAX (760) 326-6765
www.cityofneedles.com
Mayor Janet Jernigan
Vice Mayor Ellen Campbell
Councilmember Tona Belt
Councilmember Jamie McCorkle
Councilmember JoAnne Pogue
Councilmember Henry Longbrake
Councilmember Larry Ford
City Manager Patrick Martinez
September 23, 2025
Riverside Local Agency Formation Commission
6216 Brockton Avenue, Suite 111-B
Riverside, CA 92506
SENT VIA EMAIL: [email protected]
Re: Public Hearing re Municipal Service Review for the Palo Verde Healthcare District (LAFCO 2025-06-4) – Public Comment
Dear Vargas and Riverside LAFCO Commissioners,
The City of Needles expresses strong support for the Palo Verde Healthcare District and Palo Verde Hospital.
Palo Verde Hospital serves approximately 18,000 residents across 1,022 square miles, including Blythe, Mesa Verde, and Ripley. It is the only hospital within 100 miles, and the suspension of surgical and inpatient services now forces residents to travel long distances for care. Rural California already faces severe physician shortages, with patients often driving 70 miles or more for basic specialty services.
The hospital is accredited as a Critical Access Hospital, a designation vital for higher federal reimbursement rates and essential to keeping rural hospitals viable. The Municipal Service Review identifies the key goal: to bring Palo Verde Hospital back to a fully operational facility for the long-term.
As a rural community ourselves, the City of Needles understands the essential role a hospital plays in sustaining quality of life, economic stability, and long-term viability.
Remote communities along the Colorado River, like Blythe and Needles, share unique challenges — geographic isolation, limited healthcare access, and designation as disadvantaged areas. The loss of hospital services in Blythe would be a devastating blow, not only for its residents but as a warning for other border communities facing similar pressures.
On behalf of the City of Needles, we urge support for solutions that restore operations, reestablish services, and secure the hospital’s long-term future. Reliable local healthcare is not optional — it is essential for the residents of eastern Riverside County and for all rural communities across California.
Sincerely,
Janet Jernigan, Mayor
City of Needles
[email protected]
Agenda Item 8.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 23, 2025
Title: Approval to Move Forward with the Proposal from Disability Access Consultants (DAC) to Provide Consultant Professional Services for an Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan for the City of Needles’ Public Facilities, Parks and Public Rights-of-Way Background: DAC is currently assisting the California Joint Powers Insurance Authority (CJPIA) members, of which the City of Needles belongs, to assist members with ADA compliance. DAC has been assisting several Joint Power Authorities since 2000 and currently provides updates, consultations, plan reviews and expert witness services. DAC is under contract with CJPIA.
This project will review and create the City's ADA Self Evaluation and Transition Plan. California Code 28 CFR Part 35.150(d) requires that all public entities with 50 or more employees create a "transition plan" that sets forth the steps necessary to ensure compliance with the ADA and its implementing regulations. The ADA Transition Plan must: 1) identify physical obstacles limiting accessibility; 2) describe methods to be used to make the site accessible; 3) specify a schedule for achieving compliance; and 4) identify the official responsible for implementation of the plan.
The ADA Transition Plan would allow the City to prioritize ADA needs throughout the City and establish goals for the coming years. In addition, the Federal Highway Administration (FHWA) states that ADA Transition Plans are to be updated periodically to acknowledge accomplishments and prioritize future goals and objectives.
The total cost of the proposal is $37,900, of which $23,500 is to be subsidized by CJPIA. The City portion of this project is $14,400 to be invoiced and paid through the JPIA membership.
Fiscal Impact: Total cost to the City for Phase 1 and Phase 2 of the plan is $14,400 to be added to the FY26 General Fund Budget.
Environmental Impact: The proposed ADA Transition Plan Project is categorically exempt under Section 15301 (c) of the California Environmental Quality Act for evaluating existing facilities including streets, sidewalks and buildings.
Recommended Action: Approve and Direct that the City Manager Move Forward with the Proposal from Disability Access Consultants (DAC) to Provide Consultant Professional Services for an Americans with Disabilities Act (ADA) SelfEvaluation and Transition Plan for the City of Needles’ Public Facilities, Parks and Public Rights-of-Way, through CJPIA’s Contract with DAC, for a total project cost of $37,900 to be funded by CJPIA in the amount of $23,500 and the City portion of $14,400 to be added to the FY26 General Fund Budget. CJPIA will invoice the City for $14,400.
Submitted By: Kathy Raasch, Director of Development Services/Capital Projects City Manager Approval: Date:
Other Department Approval (when required): Date: 09/18/25 9/18/2025
Agenda Item 9.
City of Needles
Proposal for Accessibility Services
AMERICANS WITH DISABILITIES ACT (ADA) SELF-EVALUATION AND
TRANSITION PLAN
July 14, 2025
Updated September 16, 2025
Disability Access Consultants, LLC
2862 Olive Highway, Suite D
Oroville, CA 95966
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services i
COVER LETTER
July 14, 2025
Updated September 16, 2025
To: Patrick Martinez, City Manager
City of Needles
817 Third Street
Needles, CA 92363
D: 951-809-6448
O: 760-326-2115 ext. 113
[email protected]
Re: Americans with Disabilities (ADA) Self-Evaluation and Transition Plan Proposal Firm Information: Disability Access Consultants, LLC (DAC) 2862 Olive Highway, Suite D
Oroville, CA 95966
[email protected]
Phone: 1-800-743-7067
We appreciate the opportunity to submit our statement of qualifications and proposal for providing consultant services for an Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan for the City of Needles’ public facilities, parks and public rights-of-way.
Under Title II of the ADA, the City of Needles is required to have a current Self-Evaluation and Transition Plan. Title II entities, such as the City of Needles, may be at significant risk for claims and litigation by not having a current plan. Also, recent audit and enforcement activities by the DOJ, FHWA, CalTrans and HUD have shown that cities and other Title II entities under the ADA, potentially can have their federal pass-through funding delayed or lost, if they do not have an updated and comprehensive ADA Self-Evaluation and Transition Plan.
Disability Access Consultants, LLC (DAC) has extensive experience in the evaluation of program and facility accessibility and provides a full continuum of Americans with Disabilities Act (ADA) and accessibility services for public entities, such as the City of Needles. Founded as a California corporation and woman founded business in 1998, DAC has provided services for the past 27 years to assist public entities to comply and implement accessibility requirements in accordance with the ADA, Title 24 of the California Building Code, Section 504 and related federal, state and local disabilityrelated nondiscrimination laws and regulation.
DAC has conducted over 28,000 building inspections, surveyed thousands of parks and playgrounds, 32,000 miles of sidewalks and performed hundreds of programmatic reviews and self-evaluations to study the accessibility of programs, services, activities, events and related areas. DAC has a comprehensive understanding of applicable standards, regulations and requirements under Title II of the ADA, California Building Code and related state accessibility standards.
To provide for easy management of the transition plan and documentation of compliance efforts, DAC has developed online software called DACTrak. DACTrak is a powerful tool to manage and update the transition plan, project costs and document progress. Custom reports can be generated, downloaded and printed in a variety of formats.
Respectfully submitted by Tim Mahoney, General Manager
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 1
FIRM ORGANIZATION AND DESCRIPTION OF QUALIFICATIONS
Since DAC’s founding in 1998, DAC has provided services to assist public entities to comply and implement accessibility requirements in accordance with the ADA, Title 24 of the California Building Code, Section 504 and related federal, state and local disability-related nondiscrimination laws and regulations. DAC has extensive experience in the evaluation of program and facility accessibility and provides a full continuum of Americans with Disabilities Act (ADA) and accessibility services for public entities, such as the City of Needles.
As our founder, Barbara Thorpe, worked with a public entity for 20 years as the ADA Coordinator, 504 Coordinator, and Director of Planning and Compliance, she has extensive experience working with individuals with disabilities and organizations representing individuals with disabilities. In addition, she has collaborated with individuals with disabilities and organizations that represent individuals with disabilities in a facilitative manner that has benefited city and town governments during her work with other municipalities. Barbara and the DAC team members have demonstrated the ability to engage and interact with individuals and organizations to assist with prioritization, long range planning and implementation of the ADA plan.
DAC has a team of more than 25 staff, with our Senior
Director of Accessibility Services Michael Boga holding CASp Certificate #152 and our Director of Accessibility Services Candice Pursch holding CASp Certificate #1140.
Our team is dedicated to assisting public entities, such as the City of Needles, with ADA compliance. DAC has a
comprehensive understanding of applicable standards,
regulations and requirements under Title II of the ADA, California Building Code and related state accessibility standards.
DAC has a reputation for being responsive to the client’s needs, providing on-time project completion within budgets. DAC has a proven track record for comprehensive experience in conducting ADA Self-Evaluations and Transition Plans, implementation and related services.
DAC is currently assisting the California Joint Powers Insurance Authority (CJPIA) members, of which the City of Needles belongs, to assist members with ADA compliance at a discounted rate. DAC has been assisting several Joint Power Authorities since 2000 and currently provides updates, consultation, plan reviews and expert witness services. DAC has worked with public entities of all sizes, from one site to 506 sites. Members of the DAC team have also served as expert witnesses to assist public entities to defend their current practices and ADA plan. DAC has only served on the side to assist public entities to defend their practices and plan and has never assisted with litigation against a public entity. Our mission statement and philosophy embrace the enhancement and assistance to our clients to build an ADA accessibility plan while documenting previous and current compliance methods. Over the 27 years of serving our clients, DAC has demonstrated financial stability, staff stability and has a no claims insurance record.
DAC provides a full continuum of professional services that include, but are not limited to:
Facility inspections
Self-evaluations for ADA and Section 504 of the Rehabilitation Act Policy review and development
Transition plans
Public rights-of-way surveys
Consultation
Accessibility compliance intake and management software – DACTrak Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 2 DACTrak training to conduct your own inspections
Expert witness services
Plan reviews
ADA Plan implementation assistance and consultation
Outdoor developed and recreational areas (pools, parks, trails, camping areas) NPSI playground safety inspections
ADA Playground inspections
DAC utilizes the appropriate standard(s) for the inspection that may include, but is not limited to:
ADA Standards
California Building Code
ADA-ABA
UFAS
ANSI
Section 504 of the Rehabilitation Act
Outdoor developed and recreational standards
National Playground Safety Institute (NPSI) standards PROWAG – Federal Public Rights-of-way Guidelines
Federal Highway Administration’s Manual on Uniform Traffic Control Devices (MUTCD) Our firm stands out in the public entity arena due to proven performance in a wide range of services, from programmatic and policy reviews, facility inspections, transition plans, consultation, plan reviews and expert witness services. We excel at providing a comprehensive assessment of our clients’ current status by preparing a study of all areas related to accessibility in different departments to document ongoing compliance.
Innovative Tools, Strategies and Best Practices
Based on experience and knowledge of the accessibility field and best practices, DAC continues to develop innovative methodologies, easy to use ADA management tools, and proven, successful strategies for evaluating programs, services, activities, events, facilities, parks and public rights-ofway. DACTrak was developed by DAC for the purpose of easy and useful importing and management of the accessibility data collected in the field. DACTrak is interactive online software and is not an enhanced Excel spread sheet. The ability to collect, compile, analyze and use report data in a practical format was one of the driving forces to develop the DACTrak intake and management software.
Our DAC accessibility management software, DACTrak, provides our clients with a powerful management tool to document compliance, project costs, print custom reports and record progress.
DACTrak is not an Excel spreadsheet, but actual software that has been developed by our company to assist with the implementation and documentation of the City’s ADA plan and provides photographs of as-is site conditions, which has proved to be valuable documentation. Findings and recommendations, in addition to other data are preloaded into the DACTrak software. As DAC owns and licenses the DACTrak software, we can make custom modifications for our clients.
DACTrak Accessibility Management Software
The accessibility management software is included at no cost to the City for the first year as the cost is paid by the California JPIA. If the City decides to continue with the use of the online management software after the initial year, the cost is $2,000 and includes unlimited users. The use of the DACTrak software includes the storage and maintenance of the data. If the City decides not to continue to use the online DACTrak Accessibility Management System to maintain, update and document compliance of the ADA plan, the data can be transferred to an Excel spreadsheet or an alternate format. DAC has found that usable and easy to manage software (instead of Excel spreadsheets) is imperative to maintaining and updating the ADA plan.
Reports can be customized using categories, and findings may be organized as demonstrated in the screen shots of the DACTrak software included in the supplemental materials Appendix.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 3
PROJECT TEAM STAFFING AND RESUMES
DAC has a dedicated team of twenty-five professionals with backgrounds in administrative leadership roles with public entities, construction and code enforcement. DAC is an equal opportunity employer and our team composition includes minority and veteran representation. The team has worked together on numerous ADA compliance projects with City and Town governments and public entities.
DAC works with several large JPA’s and insurance pools to assist public entities with ADA compliance.
The DAC team has a proven record to provide on-site services in a collaborative and efficient manner.
DAC has experienced team members who have worked with public entities for successful and on time completion of numerous projects. Necessary staff members have ICC, NPSI, and CASp certification. A CASp certified Team Leader will be involved with the project and field evaluations. The project team is organized to provide a representation of skills needed to accomplish the project objectives. In addition, teams that have worked together previously will be assigned to the City of Needles project.
Barbara Thorpe, M.Ed., LOT
DAC President and Project Manager
As DAC Project Manager, Barbara will coordinate activities and schedules and report to the City’s Project Manager or designee. Barbara will serve in the leadership role regarding the ADA selfevaluation of programs, services, activities and events along with the review of policies and procedures. The public input process will be coordinated by Barbara in collaboration with the City.
Barbara brings 19 years of experience in public entity administration prior to founding DAC in 1998.
With an additional 27 years of experience with DAC working with school districts, city, town and county governments nationally, Barbara provides unparalleled understanding of the application of the Americans with Disabilities Act and related legislation for accessibility compliance.
In addition to assisting public entities with compliance with the ADA, Barbara has conducted compliance reviews for the California Department of Transportation (Caltrans) and the Department of the Interior to audit for compliance with the ADA, Section 504 of the Rehabilitation Act and related civil rights laws and regulations. Barbara has served as an expert witness for the Department of Justice, Office of the Attorney General. Additionally, Barbara is a licensed occupational therapist.
Barbara served on the Division of State Architect Advisory Board and served as the vice-chair for the City of Needles
City Contacts
Srikant Talasila
Director of IT
Michael Boga
CASp-152, ICC
Senior Director of Accessibility Services
Candice Pursch
CASp-1140, ICC
Director of Accessibility Services
Field Inspectors (4-6)
Jennie Grover
Director of
Administrative Services
Barbara Thorpe
President
Project Manager
Tim Mahoney
General Manager
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 4 DSA Access Compliance Committee. Barbara has successfully spearheaded and completed over 400 public entity self-evaluation and transition plan projects that are similar to the City of Needles’ project.
Michael Boga, B.A. Education, California Certified Access Specialist (CASp #152), ICC Accessibility, Usability and Plans Examiner
Senior Director of Accessibility Services and Quality Control As manager of the production and the field survey teams, Michael brings a unique blend of experience in the building industry along with his understanding of individuals with disabilities to the accessibility team. Michael is a certified accessibility specialist through the International Conference of Building Officials (ICC), certified in Accessibility, Usability and Plans examination and is a California Certified CASp inspector (# 152). Michael has completed the updated DSA courses regarding the California Building Code. Michael has provided numerous staff development sessions to public entities regarding accessibility requirements for facilities, parks and public rights-of-way. If requested, Michael would provide training, assist with plan reviews and review new construction and renovations completed for compliance. Michael has worked on over 400 projects that are similar to the City of Needles’ ADA Selfevaluation and Transition Plan project.
Candice Pursch, A.S. Building Inspection Technology, California Certified Access Specialist (CASp #1140) ICC Accessibility, Usability and Plans Examiner, Accessibility Trainer Director of Accessibility Services
Candice’s 20 years of experience with DAC includes accessibility surveys of thousands of public facilities while employed by DAC as an accessibility specialist. Her educational background includes a degree in Building Inspection Technology from Butte College and coursework in Architectural Project Management at California State University with emphasis on construction plans and specifications, construction materials and systems, building codes, construction graphics and architectural design.
Candice is a California Certified Access Specialist (CASp #1140). Candice has completed the updated DSA courses regarding the California Building Code that include CBC Amendments, Plan Review, Accessible Public Housing Regulations, Transient Lodging, Housing and Social Service Enter Establishments. Candice also has International Code Council (ICC) Certification for Accessibility, Usability and Plans Examiner. Candice is a Certified Combination Building Inspector. As a volunteer for Habitat for Humanity, Candice volunteers to help build residential homes. Candice provides oversight of accessibility specialists and performs quality control checks.
Jennie Grover, B.A. Corporate Communications
Director of Administrative Services
Jennie has worked in administration for DAC for the past 17 years. Jennie draws on her experience in technical writing to provide leadership and management of the production and technical writing team, organizing the completion of technical reports, as well as managing production schedules, staff and timelines. Jennie also organizes the process and procedure for providing opportunities for public input, as well as collecting and compiling the information received into the self-evaluation and transition plan. Jennie also provides training and help desk support for DACTrak users.
Tim Mahoney, B.S.
General Manager
Tim brings twenty-eight years of executive management experience in consulting, IT, manufacturing and the construction industries. Additionally, Tim has provided program development and management for members of professional associations for twenty years. Tim has also assisted in the design and construction of hundreds of ADA, CPSC and ASTM compliant outdoor recreation areas. As General Manager of DAC, Tim conducts quality assurance project management reviews and helps ensure contract fulfillment. Tim also provides ADA and Section 504 compliance consultation services for public entities, and staff training and development activities for public entities, businesses, and associations.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 5 Srikant Talasila, M.S. Computer and Internet Applications Director, Information Technology
Srikant has worked in DAC’s IT Department for the past 17 years and has a total of 25 years in the field of Information Technology, holding a master’s degree in Computer Science. Srikant is very proficient in numerous software technologies, including but not limited to all modules of .Net, Java, SQL Server and Oracle. Srikant is also a Microsoft Certified Azure Solutions Architect Expert. Srikant oversees DAC’s entire IT department, including infrastructure and applications, as well as managing and overseeing all stages of the development lifecycle for new software. In addition to maintaining existing software, Srikant also ensures that all necessary software updates and version enhancements are completed. Srikant also oversees the maintenance of all hardware and verifies that all reported IT related issues are resolved quickly and efficiently.
SUBCONSULTANTS
DAC does not use subcontractors or subconsultants, as DAC prefers team members that have direct accountability and training by DAC to provide seamless project delivery and interaction with City staff.
SCOPE OF WORK
DAC understands that the City is seeking a qualified firm to inspect, evaluate and prepare reports identifying potential barriers in the City-owned buildings, parks, parking lots and public rights-ofway.
The inspections will identify barriers or potential barriers in accordance with applicable Federal and State accessibility standards and regulations. In addition, it is understood that DAC will assist the City in developing a schedule for barrier removal over time in a cost effective and realistic manner, using programmatic solutions where available.
To successfully complete the project activities in a timely manner, DAC will work closely and collaboratively with the City of Needles without imposing unnecessary interruptions or burdens to staff. During the past 27 years, Barbara Thorpe and her team have developed ongoing working relationships with City, Town and County governments and have worked diligently to have clear lines of communication.
DAC has gained extensive knowledge and experience with all Federal and State regulations througout the past 27 years in business, that includes, but is not limited to the ADA up to and including the current 2010 Americans with Disabilities Act Standards (ADAS), 28 Code of Federal Regulation (CFR) 35, Title 24 California Building Standards Code, Title II of the ADA, PROWAG, MUTCD, Section 504 and related Federal and State Standards and Regulations.
Value Added Items to Enhance the Project at No Additional Cost or that Provide a Cost Savings
In addition to the above understandings and confirmations, DAC has found through its experience of working with City, Town and County Governments and Joint Power Authorities, such as the California Joint Powers Insurance Authority, of which the City of Needles is a member, that certain other items enhance the level of success and implementation of ADA Transition Plans by public entities.
The California JPIA offers a discounted price to its members that has been negotiated with DAC. The California JPIA is also assisting members, such as the City, with costs for selected services for ADA compliance.
As an additional value at no cost, DAC provides at least one photograph of each noncompliant accessible item or element, a record number for reference, estimated costs and other features to assist with the implementation of the Transition Plan. To provide for easy management of the Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 6 transition plan and documentation of compliance efforts, DAC has developed online software called DACTrak. DACTrak is a powerful tool to manage and update the accessibility plan, project costs and document progress. Custom reports can be easily prepared, printed and saved in a variety of formats.
DAC includes the following additions at no additional cost:
Noncompliant findings and recommendations are included in the DACTrak software One or more photographs of each noncompliant finding are included Additional photographs can be viewed of the noncompliant item by one click DACTrak provides a method to schedule and track the barrier removal Documentation of progress and compliance using the progress reporting feature of DACTrak Priorities can be established and further refined using DACTrak DACTrak provides for an organized input method that captures all the information gathered from the site inspections with photographs for each noncompliant finding. All the field information is captured in an online software package and provides for “green” data collection and avoids paper and pencil checklists and unorganized photographs. DACTrak can also be used on a tablet pc to add new facilities and update compliance assessments and transition plans.
DAC has also found that having usable “software” and not just a database is very important to be able to easily manage and update the transition plan. Our extensive experience with clients needing to have an easy to manage and update plan was the catalyst for DAC to develop our DACTrak software for use by our clients. Thus, other critical issues include:
Software to update and manage your Transition Plan
The ability to document progress and barrier removal
The ability to print custom reports
The ability to update the plan “automatically” when codes change without re-inspecting sites The ability to project costs
The ability to add or delete facilities
DAC’s collection of actual measurements of as-is conditions and GIS information for public rights-ofway is another value-added item. The collection of an as-is condition is an asset to allow the user to make an informed decision based on an actual measurement. For example, if a “yes” or “no” approach is utilized to indicate if an item is compliant, the user may not know what the actual level of noncompliance is and would not be able to set a priority or severity rating. If codes change, the information collected can be re-processed without the need to re-inspect, thus providing longevity of the plan and internal capacity of the City in a cost-effective manner.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 7
SCOPE OF WORK OVERALL PHASES
DAC proposes to execute the project in two phases. Detailed activities and deliverables are provided in the following scope of work description.
Phase I: Study and Evaluation - Self-Evaluation/Facility Survey/Barrier Assessment a) DAC will conduct an initial project kick-off meeting, if requested, with selected City of Needles staff to establish roles and lines of communication, refine project goals, review the overall project schedule, schedule surveys of City of Needles facilities and identify key City of Needles personnel related to the project scope. Initial self-evaluation activities will be completed during this step. b) The initial orientation meeting should include an assessment of previous compliance activities and areas of current or potential litigation. The review of compliance activities and high priority areas will assist with the development of an overall project plan. The review and documentation of prior initiatives will also build a more defensible plan if the City is challenged by litigation. c) DAC will conduct field surveys of the buildings and facilities listed in this proposal as well as the City owned public rights-of-way; sidewalks, curb ramps and signalized intersections. d) The facilities and parks listed in this proposal is not inclusive of all facilities and parks within the City and the City intends to complete the accessibility inspection of the remaining sites, at a later date. However, the City will complete 10 miles of sidewalk inspections which appears to be the entirety of the City’s sidewalk network.
e) Surveys will identify all physical barriers (interior and exterior) including the path of travel in and around the facility and from the public right-of-way at each site in accordance with Title 24 of the California Building Code and the ADA Standards (previously referred to as ADAAG). f) DAC currently provides geographical information (latitude and longitude) for each identified exterior barrier in the public right-of-way that can be incorporated into the City’s Geographical Information System (GIS). DAC incorporated the map-linked GIS feature based on the needs of many of our City and County clients. DAC uses a comprehensive approach to inspecting public rights-of-way (PROW). In order to conduct an assessment of all the requirements in the PROW, DAC conducts manual measurements of the field conditions and enters the information into our DACTrak pc tablet in the field. DAC has found that the use of automated equipment for running slopes on sidewalks, such as ultra-light profilers, do not provide an actual measurement, but only provide a chart showing ranges. In some cases, if a change in level is greater than ½ inch, no actual quantifiable information is reported of how much greater or of the severity. In order to get the actual measurements for the sidewalks and intersections, the use of a “profiler” does not provide the measurements needed for items such as automated pedestrian signals and street furniture.
g) As required by the ADA, the 2010 ADA Standards will be compared with state codes (Title 24 of the California Building Code) and the standard that provides the greater level of accessibility utilized. As DAC collects as-is field conditions and records all information, data can be reprocessed if codes change without conducting a re-inspection, thus resulting in a significant savings when codes change and the plan needs to be updated.
h) Provisions and standards for historic buildings will be applied as appropriate. i) Assessments and reports will include a high degree of detail with photographs, code references, and cost estimates. The DACTrak software and reports will include additional specifics, such as as-built dimensions, progress reports, additional prioritizations, preset reporting features and other custom reports. Reports will be delivered in the format requested, and reports will also be available using DACTrak. The inclusion of photographs showing the as-is condition has proven to be valuable assistance to clients in the formulation of the decisions regarding barrier removal priorities. The DACTrak software provides an easy-to-use accessibility management platform that exceeds the ability to manage the plan by hard copies and binders. The assessment report of each facility will include cost estimates to correct deficiencies in accordance with the ADA, Title 24 of the California Building Code.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 8 j) Barriers are identified by building, floor, or location and given a unique identifier record number (UIN) to assist with navigation in the accessibility software and location of the finding and recommendation by area and site. Estimated applicable costs will be given by item and element in accordance with industry standards. Costs can be easily adjusted to adhere to any cost estimates the City may utilize.
k) Physical access problems that require structural solutions will be documented in the Compliance Assessment/Transition Plan. The proposed method for removal will be provided. The transition plan will identify physical barriers that may limit accessibility of City programs, services or activities for individuals with disabilities. The schedule for removal of barriers and appropriate timelines will be developed in consultation with the City.
l) The field survey information will be presented to the City staff using the DACTrak online accessibility management system. Many different types of reports will be available for the City.
Feedback will be incorporated as appropriate.
m) The survey data will be compiled into a Transition Plan which will identify actual as-is conditions and prioritize current barriers, provide a schedule for barrier removal, as well as establish procedures for addressing future accessibility issues. The Transition Plan data is able to be exported to Excel or PDF formats. The Transition Plan data will include photographs, findings, recommendations, code references, estimated costs, priority settings (in addition to prioritized report) in accessibility software for accessibility management. Photographs and GIS coordinates are valuable for the development of the transition plan. n) DAC will assist the City to solicit input from members of the community and persons with disabilities. Methods will be utilized to solicit public input may include notices, information on the website and surveys.
o) The Transition Plan data will be provided using DACTrak which has management, monitoring, and online tracking tools that allow staff to manage current and future accessibility issues, update the deficiency status, and generate reports to show progress in meeting the Transition Plan requirements.
Phase II: Implementation Phase - Transition Plan Development a) DAC will develop, in collaboration with the City a comprehensive ADA Self-Evaluation and Transition plan for facilities, buildings, parks and public rights-of-way, identified in this proposal. b) DAC will develop a first draft of the ADA Transition Plan for City staff to review. c) DAC will meet with the City to review the draft document and incorporate any comments, changes or feedback.
d) DAC will assist the City to conduct public outreach activities that may include website announcements, postings, surveys, announcements, individual meetings and other activities as requested.
e) DAC will prepare and produce a second draft if necessary with a detailed description of the barrier and the proposed method for barrier removal.
f) DAC will train the City in the use of the DACTrak online accessibility management system to prepare reports as well as update and manage the ADA Plan. g) DAC will provide an executive summary of the project. h) If requested, DAC can present the draft ADA Transition Plan at a regularly scheduled council meeting for discussion and for informational purposes. DAC does not recommend that the plan be adopted by the City, as adoption is not required and may cause additional discussion regarding projected dates in the plan that are meant to be “projected and estimated dates” and not final dates of barrier removal.
i) DAC will provide the City with DACTrak, an online monitoring, tracking, and management system at project completion. DACTrak allows users to review and update progress in barrier removal, and to generate many different styles of reports to document progress. DACTrak contains one or more integrated photographs that are attached to the finding, eliminating the need to reference another area or report supplement. DACTrak is an actual accessibility management software, not Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 9 just electronic database of items contained in the Facility Survey Report. DAC has found that an electronic database or Excel format does not provide the City with a tool containing integrated photographs needed to implement the plan, set priorities, make notes and print custom reports.
If the City does not want to use the software, the data can be placed in an Excel spreadsheet. DAC will provide access to the DACTrak online software for the City to manage all of the field data collected, print custom reports, document progress, estimate costs and perform other management functions;
Data collected will be the property of the City should the City decide for any reason not to continue to use the DACTrak accessibility intake and management software system; The California JPIA, of which the City is a member, has an agreement with DAC to pay for the use of DACTrak for the first year;
DACTrak will include and provide correlation with field data collected, reports, transition plans, drawings, code references, estimated costs and photographs for each noncompliant accessibility item or element;
Reference maps for GIS information will be provided in addition to a linked mapping system for each item;
DACTrak provides a description, location and record number for each barrier that allows the user to access the information and location
j) DAC will provide City staff with training regarding ADA Compliance from both a programmatic and administrative point of view and also for facility management and maintenance.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 10
COST PROPOSAL
1. Total Cost for the initial phase of the facility/park inspections is: $23,900 Sites:
1) City Hall - Bailey Avenue
2) Recreation Building
3) Aquatics Center
4) River Edges Golf Course
5) Senior Citizens Center
6) 3-Pete's Memorial Field
7) Duke Watkins Park
Needles Dog Park
Needles Skate Park
8) Ed Parry Ballpark
9) Nikki Bunch Ballpark
2. Total estimated pricing for the inspection of City Public Rights-of-Way: $7,000 City has indicated it currently owns an estimated 10 linear miles of sidewalk within City limits.
Public Right-of-Way (PROW) surveys will include City sidewalks, curb ramps, APS intersections and bus stops within the City’s public right-of-way for a total cost of $7,000 using the rate of $700 per linear mile of sidewalk.
Cost Summary
1. Total estimated cost for initial phase of Facility/Park inspections (AL-2): $23,900
2. Total estimated cost for Public Rights-of-Way inspections (AL-2): $7,000 a. Total estimated cost Facilities, Parks and PROW Inspections (Phase 1) $30,900 b. Less AL-2 Assistance Funding provided by CJPIA ($16,500) Total AL-2 Cost - Phase 1 of AL-2 to City of Needles $14,400
3. Cost of review of policies, procedures and programs and public input assistance: $5,000 a. Review of Programs, Policies and Procedures and Public Input Process. b. Less AL-3 Assistance Funding provided by CJPIA ($5,000) Total AL-3 to City of Needles $0.00
4. DACTrak Licensing is paid for by the CJPIA in year one. $2,000 a. Less CJPIA DACTrak Assistance ($2,000)
b. Year 2 and beyond DACTrak licensing is $2,000/year.
Total DACTrak Cost to City of Needles in Year 1 $0.00
*Total AL-2 and AL-3 Assistance provided by CJPIA: $23,500 Note: DAC will conduct field surveys of the buildings and facilities listed in this proposal as well as the City maintained public rights-of-way, which include sidewalks, curb ramps and signalized intersections. DAC will complete 10 miles of sidewalk inspections which appear to be the entirety of the City’s sidewalk network.
Also, the facilities and parks listed in this proposal is not inclusive of all facilities and parks within the City and the City intends to complete the accessibility inspection of the remaining City-owned facility and park sites in in a separate phase within the next 1-2 fiscal years.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 11 SCHEDULE: SCOPE OF SERVICES SUMMARY BY ESTIMATED TIMELINES Based upon experience, a project milestone chart is provided in months. It is estimated that the project will be completed in twelve (12) months or sooner. The chart below is a summary of major milestones and is not necessarily representative of all of the individual project activities.
Scope of Service –Activity or
Task
1 2 3 4 5 6 7 8 9 10 11 12
DAC team meetings with City;
survey methodologies, deliverables
and schedule confirmation
Project planning, scheduling,
procedures review
Field inspection data compiled
Public input and community
outreach
Draft self-evaluation of services,
policies, programs and practices
Final draft
Deliverables completed and
presentation to the City
Consultant Responsibilities
DAC will arrange all project management activities for an efficient process to develop the ADA Transition plan and provide the City with an anticipated project schedule prior to commencement of work.
DAC will perform all work in conformance with current City policies and procedures and carry out the instructions received from the City, in cooperation with other City approved and involved agencies.
DAC has the financial, operational and staff stability to complete a quality and comprehensive project on time. DAC has no adverse conditions.
Minority Utilization and Affirmative Action
DAC is an equal opportunity employer and has recruited minorities and veterans. DAC’s quality control team leader is a Vietnam veteran with a disability.
Background Checks and Fingerprinting
All employees of Disability Access Consultants, LLC have been subject to background checks. DAC has FBI and DOJ fingerprint clearances on file for DAC staff. We have conducted studies for school districts, state and local governments, the Federal Government, Judicial Chambers and Correctional Institutions that require background checks. DAC has found that background checks are important especially in situations where inspection staff may be working near children, and are required in certain situations.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 12 Supplemental Materials
Sample DACTrak Screen Shots and Information
These samples are generated from the DACTrak Accessibility Management online software program.
The following screen shots are recent examples generated from the DACTrak Accessibility Management online software program prepared for several public entity clients.
Upon logging in
to the secure
DACTrak website,
you are able to
choose the facility
you would like to
view and
manage. This
screen shot is an
example of a
facility list for a
recent public
entity transition
plan project.
After choosing a
facility, you are
able to use
Reports drop
down menu to
choose which
report style to
view. You may
also choose to
view multiple
facilities in one
report.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 13 The Single Finding and Dual Finding Photo Reports may be exported to an Excel workbook for easy management of the transition plan data. The Excel workbook exports into a pre-formatted table with the filter function atop each data column. The report is a fully functioning Excel spreadsheet that may be sorted, filtered and manipulated by the user.
The column for Picture identification numbers includes cells that are live links to the second tab of the workbook which contains report photos. Clicking the cell for a particular report finding will bring up the associated picture on the Photos tab.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 14 This screenshot is an example of a finding page in a Single Finding Photo Report. This type of report shows the user the finding, with accompanying recommendation to correct the non-compliant item, the associated photo, code reference(s), estimated cost to remove the barrier, and any progress that has been added to update the transition plan.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 15 Reports Sort and Filter Panel
Users are able to customize the report that is generated by making selections in the drop down menus and choice fields.
Single Facility PDF Report Options
DACTrak offers users many different styles of reports to view in a PDF file which can be exported from DACTrak and saved offline for viewing, printing or emailing.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 16 Multi Facility PDF Report Options
In addition to viewing reports for individual facilities, DACTrak offers users the ability to view findings for multiple facilities combined in as single PDF. Users choose which facilities to include from the selection list and are further able to customize the generated report by selecting filtering options.
Single Facility Excel Report Options
DACTrak also contains options to export reports to an Excel format, which can be customized using the drop down menus and selection fields. The exported Excel report is a fully functioning workbook which can be further manipulated to suit the needs of the user.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 17 Multi Facility Excel Report Options
Excel reports may also be generated to contain findings for more than one facility by using the Multi Facility Report option in DACTrak. This report is able to be customized using the available filter fields.
If the user requires a small file size for storage or emailing, the option is available to exclude photos in the generated report.
Map Overlay Report
Aerial map reports of non-compliant findings can be viewed using the Map Overlay option in DACTrak.
This report plots the locations of the findings on a user friendly interactive map. Unique icons are used to symbolize the different types of findings.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 18 Drilled Down View of Map Overlay Report
Each icon in the map overlay report is a clickable link that will expand to a pop up window identifying the finding. The individual finding information may also be printed from this feature.
Summary and Chart Reports
DACTrak also includes options for summary and chart reports to be created for individual or multiple facilities. The example below is a column chart that summarizes the number of noncompliant records by category for a facility.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 19 Global Progress Editor
Many records are able to be managed and updated with identical information from one screen using the Global Progress Editor. Users choose the records to update and the information that they would like to apply to all chosen records. Once information is entered, the user needs only to click the “Submit” button once to update all chosen records.
Priority Manager
Priority Manger allows users to manage many records on one page, but individually update each record with unique information. Once all selections are made, the user clicks “Submit” to apply all updates.
Agenda Item 9.
Disability Access Consultants Proposal to the City of Needles for ADA Consulting Services 20 Heat Map
DACTrak also provides an option for viewing locations where there is a high or low concentration of noncompliant findings in a heatmap. The following example shows locations of noncompliant exterior findings at a park, using colored icons. Information about the noncompliant findings can be viewed by clicking on each colored icon to launch an interior window with the descriptions of the findings.
The following two examples are heat maps for a park viewed in DACTrak and a signalized intersection exported to Google Earth.
Agenda Item 9.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 23, 2025
Title: Renaming of Ed Parry Field and Phillips Field Complex Background: On June 28, 2022, the City Council adopted Resolution No. 2022-52, establishing a formal policy for the naming of City-owned land, buildings, and facilities (attached).
At the April 8, 2025, City Council meeting, a recommendation was presented to name the area encompassing Ed Parry Field and Phillips Field as the “Needles Little League Baseball Complex”. It is important to note that the individual field names—Ed Parry Field and Phillips Field—will remain unchanged. The proposal pertains solely to naming the complex as a whole.
At the April 22, 2025, City Council meeting, the item was continued to the next available meeting to allow for additional discussion and public input.
At the June 10, 2025, City Council meeting, Council voted to turn the item over to the Parks and Recreation Commission for consideration.
On August 18, 2025, at the Parks and Recreation Commission meeting, Commissioners voted to make no changes to the field names that include Ed Parry Field and Phillips Field and to not add a complex name to the fields.
Fiscal Impact: None
Recommended Action: Make no changes to the field names that include Ed Parry Field and Phillips Field and to not add a complex name to the fields.
Submitted By: Jennifer Valenzuela, Recreation Manager
City Manager Approval: Date:
Other Department Approval (when required): Date:
9/18/2025
Agenda Item 10.
Agenda Item 10.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 23, 2025
Title: Renaming of Quinn Court
Background: On June 28, 2022, the City Council adopted Resolution No. 2022-52, establishing a formal policy for the naming of City-owned land, buildings, and facilities (attached).
At the September 9, 2025, City Council meeting, a recommendation was presented to rename Quinn Court to Snoopy Court, to reflect the history of Charles Schultz and the Peanuts Foundation.
Quinn Court is between, and runs parallel to Broadway and Front Street, from G Street to just past B Street.
Fiscal Impact: Cost of signage
Recommended Action: Provide Staff Direction on the proposed renaming of Quinn Court.
Submitted By: Council Member Larry Ford
City Manager Approval: Date:
Other Department Approval (when required): Date:
9/18/2025
Agenda Item 11.
Quinn Court Renaming
Council Meeting 9/9/2025
Legend
El Garces Hotel
Quinn Ct
200 ft
N
➤
Image © 2025 Airbus
Image © 2025 Airbus
Image © 2025 Airbus
RESOLUTION 2022-52
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEEDLES, CALIFORNIA, ESTABLISHING A POUCY
NAMING/RENAMING OF CITY-OWNED LAND,
BUILDINGS, AND FACILITIES
WHEREAS, On June 14, 2022, City Council requested City Staff look into a policy to name/rename City-owned Land, Buildings, and Facilities; and WHEREAS, the City would like to establish a Policy Naming/Renaming of City-owned Land, Buildings, and Facilities; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEEDLES DOES HEREBY RESOLVE, DECLARE AND DETERMINE AS FOLLOWS:
Section 1. The text of the Policy is attached as Exhibit A.
The City Clerk shall ce1tify as to the adoption of this Resolution and shall cause the same to be processed in the manner required by law.
PASSED, ADOPTED, AND APPROVED, this 28 day of June 2022, by the following vote:
AYES:
NOES:
ABSENT:
Council Members Campbell,
None
ABSTAIN:
Mayor Williams
None
ATTEST:
Dal~
APPROVED AS TO FORM:
Jo~~~y
Evans, Merritt, Belt and Longacre
Agenda Item 11.
Exhibit A
Text of the Naming/Renaming of City-owned land, buildings, and facilities.
POLICY TITLE NAMING OF CITY PARKS, FACILITIES AND FACILITY
AMENITIES
POLICY STATEMENT:
This policy intends to address the following naming situations:
I. The opening or reopening of parks, facilities, and facility amenities
2. Providing recognition of financial contributions
3. Honoring individuals or organizations in recognition of their significant contributions to the community.
The criteria for naming will include the following:
1. The person or organization has a longstanding affiliation with the City
2. The name provides a sense of place, reflecting the geographic location, community, neighborhood or street where the park, facility or amenity is located
3. The name recognizes the historical significance of the area or reflects unique characteristics of the site
4. The names of persons, organizations, corporations, foundations or families will be considered when they have made a significant contribution to the City by:
a. Enhancing the quality of life and well-being of the City b. Contributing to the historical or cultural preservation of the City c. Contributing toward the acquisition, development or conveyance of land or building
d. Making exemplary or meritorious contributions to the City
5. If named in memorial, the individual must be deceased at least one (I) year and/or have made a significant contribution to the community in terms of improvement of quality of life.
Names will not be chosen that:
1. Cause confusion due to duplication or names sounding similar to existing locations within the City of Needles.
2. Are the name of persons or companies whose business is substantially derived from the sale of alcohol, tobacco, cannabis, firearms and/or pornography
3. Are discriminatory or derogatory considering race, gender, creed, religious or political affiliation, or other similar factors.
Where the naming opportunity is the result of a financial contribution, the following factors must be considered:
1. The significance of the contribution made, relative to the construction and/or operating costs of the parks, facilities, and amenities within those facilities
2. The cost of establishing the naming option ( costs to be determined by the responsible Department on an individual basis).
The duration of naming rights of parks, facilities, and amenities within those facilities shall be decided on a case-by-case basis. Agenda Item 11.
Existing names will not be changed without consideration of the historical significance of the existing name, the impact on the individual or organization previously named, the cost and impact of changing existing signs, rebuilding community recognition and updating records (i.e. letterhead, databases, and promotional materials).
The City Council may initiate the name of a City-owned land, buildings and facilities.
Requests by individuals for naming or renaming of City-owned land, buildings and facilities shall be filed with the City Clerk for transmittal to the Mayor in writing, accompanied by a statement summarizing the justification for the recommended name(s).
The City Council will make its determination as to the naming or renaming of Cityowned land, buildings and facilities at a regularly scheduled meeting. The decision of the City Council will be final.
Agenda Item 11.
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: September 23, 2025
Title: Employee Appreciation Event
Background: Mayor Jernigan requested this item be placed on the agenda for discussion regarding a proposed date, location, and budget.
Fiscal Impact: Funds in the amount of $10,000 are available in the 2025-26 budget for all special events during the upcoming year, including the employee appreciation event and any future special events through June 30, 2026.
Recommendation: Discretionary
Submitted By: Mayor Jernigan
City Manager Approval: Date:
Other Department Approval (when required): Date: 09/18/25 09/18/2025
Agenda Item 12.
City of Needles
817 Third Street, Needles, California 92363
(760) 326-2113 • FAX (760) 326-6765
www.cityofneedles.com
Mayor, Janet Jernigan
Vice Mayor Ellen Campbell
Councilmember Tona Belt
Councilmember Jamie McCorkle
Councilmember JoAnne Pogue
Councilmember Henry Longbrake
Councilmember Larry Ford
City Manager Patrick J. Martinez
MEMORANDUM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PATRICK J. MARTINEZ, CITY MANAGER
SUBJECT: WEEKLY MEMORANDUM
DATE: September 5, 2025
1. Palo Verde Community College District Meeting
The Palo Verde Community College District (PVCCD) Board will hold its Regular Meeting on Tuesday, September 9, 2025, at 5:00 p.m. The primary location is One College Drive, Blythe (CL 101), with a local teleconference site available at the PVC Needles Center, 725 W. Broadway. On the agenda is Resolution
09.09.25-13.1, a proposed censure of Trustee Jon McNeil. A copy of the resolution and staff report is attached for reference, along with City Council Resolution 2025-9. Censure is a formal statement of disapproval adopted by majority vote; it carries no penalties but serves as an official public record.
This discussion comes as PVCCD continues evaluating the long-term sustainability of the Needles Center, including funding, program equity, and future planning—making local participation especially important. Residents may attend in Blythe or at the Needles Center, or submit written comments to pvc[email protected] (cc: [email protected]) by 12:00 p.m. on the day of the meeting. This notice is provided to keep the council informed and engaged in decisions that directly impact Needles.
2. Rider Appreciation Day- Fort Mohave/Bullhead Shuttle Launch On September 4, 2025, the City of Needles and SBCTA hosted Rider Appreciation Day to launch the new Fort Mohave/Bullhead Shuttle. Held at the El Garces West Parking Lot, the event offered free rides on Needles Area Transit, Dial-A-Ride, and the new shuttle, along with refreshments, giveaways, and information on expanded transit options. Mayor Jan Jernigan, Councilmembers Henry Longbrake and Larry Ford, City staff, and dozens of residents participated. SBCTA highlighted the strong community response and the dedication of the Needles Area Transit (NAT) team, underscoring the value of rural transit systems. The shuttle advances Council’s goal to improve regional connectivity and enhance quality of life. Reservations are required by 11:00 a.m. the prior day and can be made by calling 760-326-4789. A flyer with details is attached. Refer to the attached photos for a glimpse of the event.
3. City Crews Respond to Major Thunderstorm
On September 4, 2025, a severe lightning storm caused widespread damage and flooding across the City of Needles, prompting an immediate and coordinated response by City crews. Staff worked throughout the day to clear downed trees and roadway debris, restoring safe conditions for residents and visitors. Several roadways, including Needles Highway, N. K Street, L Street, Broadway, and Bailey Street, experienced flooding, and barricades were placed for public safety. The Needles Underpass on N. K Street and National Trails Highway were closed due to high water, and motorists are urged to use alternate routes and avoid driving through standing water. Residents can report concerns by calling 760-326-5700 (press #9) or using the Needles Connect app on Google Play Store (Android) and Apple Store (iOS). Together, we’re building a safer, stronger Needles!
4. Water Department – Targeted Service Replacements & Leak Response On Thursday, September 4, 2025, Water Department crews replaced a 45-foot section of 1-inch service on D Street after recurring leaks, renewing the entire line to prevent future failures. This week, crews also isolated and repaired a separate leak on Lillyhill, restoring reliable service. Temporary pavement patches are in place; permanent asphalt/concrete restoration is scheduled. Our teams work diligently to minimize outage times and customer impacts. These targeted repairs reduce water loss, cut service interruptions, and extend asset life—directly advancing Council goals to enhance infrastructure, improve services, and strengthen quality of life for residents and businesses.
5. Electric Department – Park LED Upgrades Program
City staff is advancing the phased LED replacement program in our parks. Work began at Jack Smith Park and, this week, crews focused on the Duke Watkins Dog Park, removing failed fixtures and upgrading them to long-life LED lighting.
These improvements boost night-time visibility and safety, cut energy use and maintenance costs, and improve reliability—directly supporting Council goals to enhance infrastructure, improve services, and strengthen quality of life. Next locations are being queued as materials arrive. Residents can report light outages by calling 760-326-5700 (press #9) or using the Needles Connect app on Google Play Store (Android) and Apple Store (iOS). Together, we’re building a safer, stronger Needles!
6. Investing in People to Deliver Quality Infrastructure and Services We are proud to congratulate Trey Tsosie on earning his Water Treatment Operator Certification Grade 2, Ronny Summers on earning his Water Distribution Operator Certification Grade 2, and Albert Ponce on earning his Water Treatment Operator Certification Grade 1. These achievements reflect the dedication of our team and strengthen the City’s capacity to serve residents and business owners alike. The City of Needles remains committed to investing in professional development to ensure staff have the expertise to support Council goals of enhancing infrastructure, improving services, and strengthening quality of life for our community. As the City continues to add critical
infrastructure—such as the new treatment plant system—staff certifications are essential to ensuring our systems are operated and maintained to the highest standards.
7. Electric Yard Building – Nearing Completion & October Ribbon Cutting Staff is pleased to report the Electric Yard Building on California is approaching completion, with a ribbon cutting planned for October. Since delivery, the project has progressed from steel framing to finished concrete pad and driveway, with equipment on site and final fit-out underway. This $673,552 investment replaces temporary storage with a permanent, climate-resilient facility—protecting highvalue utility assets from heat and weather, extending equipment life, reducing long-term replacement costs, and improving operational readiness. The project advances Council goals around infrastructure modernization, asset preservation, and service reliability. Event details for the ribbon cutting will follow.
8. Needles Animal Shelter Adoption Program
The Needles Animal Shelter is home to many loving pets eager to become part of a caring family. Through our adoption program, we are committed to enhancing the lives of animals in our community and helping them find their homes forever. If you’re considering adding a furry friend to your family, the adoption fee is just $59. Our team is ready to guide you through the process and help you meet the perfect pet. Contact us today at 760-326-4952 to learn more about our adoption process or to schedule a visit. We’re available Monday through Friday from 8:00 AM to 2:00 PM. Take a look at the attached flyer featuring Hazel, Roxie, Gigi, Beamer, Prince, Princess, Rocket, Paula and Moose—all adorable pets waiting to meet you. These wonderful companions are ready to bring joy and love into your life. Let’s work together to give these animals the safe, caring homes they deserve!
9. Rivers Edge Golf Course Closed for Overseed
City staff met with KemperSports, managers of the Rivers Edge Golf Course, and commend JJ DeLeon and his team for elevating the facility into a championship-caliber course. This weekend is the last chance to play before overseeding and fall preparations. When the course reopens in October, tournaments include the Mohave Storm Shootout (October 25, 2025), Turkey Trott Scramble (November 22, 2025), Jason Smith Memorial Golf Outing (December 6, 2025), and January Blues Golf Tournament (January 17, 2026).
These events feature scramble formats, prizes, and strong community participation, reinforcing Rivers Edge as a premier golf destination. Don’t miss your chance—reserve your spot today at 760-326-3931 or
www.golfneedlesca.com. To host a tournament, contact JJ DeLeon at 760-326- 3931.
10.Needles Women’s Club Fundraiser – Pulled Pork Elote Bowl The Needles Women’s Club is hosting its monthly lunch fundraiser to support women’s empowerment, youth activities, scholarships, and civic initiatives. As a 501(c)(3) nonprofit, the Club depends on community support to continue making
a difference. Enjoy a delicious Pulled Pork Elote Bowl with dessert for $10.
Please place your order online at this link by 6:00 p.m. on Monday, September 8, 2025. If you have trouble ordering, call or text Karrie at 928-201-1836. Orders may be picked up at the Needles Women’s Club, 305 W. Broadway St., Needles, CA 92363, or delivered within Needles for groups of three or more.
Don’t miss the chance to enjoy a delicious meal while supporting your local Women’s Club!
11.Reminder: Fall Youth Sports Registration Closes September 12, 2025 The City of Needles Parks & Recreation Department is accepting registrations for fall youth sports through Friday, September 12, 2025. This season includes Peewee Soccer (ages 6–7), Jr. Peewee Soccer (ages 3–5) with games on Saturdays, Flag Football (grades 2–5) with games on Tuesdays and Thursdays, and Volleyball (grades 3–6) with games on Mondays and Wednesdays. Fees are $45 for residents / $50 for non-residents (Jr. Peewee Soccer is $35 / $40).
Sibling discounts are available, and scholarships may be offered for qualifying families. Games run from early October through late November. Register now or get more information by calling (760) 326-2814 or emailing [email protected].
12.Reminder: Fall Spay & Neuter Clinic – September 25–26 The Needles Animal Shelter will host its Fall Spay and Neuter Clinic on September 25 and 26 in partnership with Dr. Angelina Beeks of Angels Touch Mobile Vet. The clinic is by appointment only, and a non-refundable deposit is required to reserve a spot. Applications and deposits must be submitted in person at the Needles Animal Shelter, located at 1662 Flip Mendez Parkway.
This bi-annual clinic is always in high demand and typically fills quickly, so early registration is strongly encouraged. For more information or to schedule an appointment, residents may call the shelter at (760) 326-4952. This important program supports public health, promotes responsible pet ownership, and advances the City’s broader animal welfare goals. Please refer to the attached flyer for additional details.
13.Needles Welcomes Visitors for a Safe and Busy Holiday Weekend The City of Needles had a successful Labor Day Weekend, aligning with Council goals to boost tourism and enhance recreational activity on the Colorado River.
Jack Smith Park boat launch and local restaurants reported strong turnout, with both residents and visitors enjoying the holiday along the river. To support public safety, the San Bernardino County Sheriff’s Colorado River Station conducted its annual Marine Enforcement Operation from August 29 through September 1, 2025. The operation deployed 10 patrol vessels, an OHV team, and a Sheriff’s helicopter. Results included 124 enforcement stops, 10 arrests for boating under the influence, 84 citations issued, and three boating accidents reported downstream. We thank the Sheriff’s Department for their continued partnership in ensuring a safe and enjoyable holiday weekend for our community and visitors.
14.SBCSD/Needles Police – 6th Annual Trunk or Treat
The San Bernardino County Sheriff’s Department/Needles Police will host its 6th Annual Trunk or Treat on Thursday, October 30, 2025, from 4:00–6:00 p.m. at the Recreation Center parking lot, 1705 J Street, Needles, CA 92363. This family-friendly event brings residents together for a safe, festive evening with candy, community booths, and local partner agencies. For participation or questions, contact Officer Misty Hunt at (760) 326-9200. See the attached flyer for details.
15.St. Vincent de Paul Fundraiser Dinner (Venue Changed to Elks Lodge) The St. Vincent de Paul Society of Needles has requested support in helping promote their Annual Fundraiser Dinner, scheduled for Saturday, November 15, 2025, at the Elks Lodge, 1000 Lillyhill Dr., Needles, CA. The event will feature a buffet dinner, silent auction, 50/50 drawing, and patriotic theme. Proceeds will directly benefit the Needles food pantry and support the restoration of the Society’s building. Tickets are $50 per person or $400 for a table of eight, available at 839 Front Street, Needles, or by calling 760-326-4420. In addition, the Society will host an Open House on Monday, January 12, 2026, at 5:00 p.m. to showcase building upgrades and provide a look at local pantry operations.
Council support is encouraged, whether by attending, donating to the silent auction, or helping share the event throughout the community.
16.Community Events Calendar Now Live
The City’s new website now features a Community Events Calendar—your go-to source for what’s happening in Needles. From festivals to meetings, it’s designed to keep residents and visitors connected. Local organizations are invited to submit or update events through the City Clerk’s Office to keep the calendar fresh and inclusive. Contact Candace Clark at
[email protected] to participate. Together, we can showcase the best of Needles and strengthen community spirit.
Agenda Item Details
Meeting Sep 09, 2025 - Regular Board Meeting
Category 13. Action Items - Miscellaneous
Subject 13.1 Consideration and Potential Action on Proposed Censure Resolution of Trustee McNeil
Type Action
Recommended
Action
This Censure Resolution is being presented to the Board without staff recommendation.
BACKGROUND INFORMATION
On January 14, 2025, Resolution No. 2025-8 was presented to the City Council of the City of Needles. The resolution’s title was “A Resolution of the City Council of the City of Needles, California, Supporting Enhanced Investments, Equitable Services, and Workforce Development Programs by the Palo Verde Community College in the Needles Community.”
Resolution No. 2025-8 contained many statements which were damaging to the Palo Verde Community College District (“District”). Additionally, several of the statements in Resolution No. 2025-8 were inaccurate, lacking relevant context, or otherwise misleading.
On January 28, 2025, the Board convened a Special Meeting/Study Session regarding Resolution No. 2025-
8. At this meeting, Trustee Jon McNeil informed the Board that he and an employee of the District, had contributed to Resolution No. 2025-8. The District’s Superintendent/President, Dr. Bruce Moses, requested authority to initiate an investigation into the involvement of District officials in preparing the resolution. The Board granted his request.
The investigation initiated by Dr. Moses found that Trustee McNeil engaged in the following conduct: On January 2, 2025, Trustee McNeil received a draft of Resolution No. 2025-8 from Needles City Manager Patrick Martinez. City Manager Martinez informed Trustee McNeil at this time that the resolution would be placed on the City Council’s agenda and requested Trustee McNeil’s input on the resolution. Trustee McNeil did not provide any new information to City Manager Martinez; however, Trustee McNeil provided revisions to the draft resolution to reduce what he described as “inflammatory language.” Trustee McNeil’s description of the draft resolution’s language as “inflammatory” showed that he understood it to be potentially damaging to the District. Though Trustee McNeil understood the draft resolution’s contents to be potentially damaging, he did not inform Dr. Moses or the Board in advance that the resolution would be placed on the City Council’s agenda and discussed publicly. By offering his input on the draft resolution without informing Dr. Moses or the Board, Trustee McNeil tacitly approved of the information therein without taking measures to confirm its accuracy or context.
By failing to inform Dr. Moses and the Board about Resolution No. 2025-8, Trustee McNeil also deprived them of the opportunity to communicate their concerns about the information therein to the City prior to the January 14 City Council meeting. As such, Trustee McNeil did not work with Dr. Moses and the Board so as to enable them to take measures to address the risk of unfair harm to the District’s reputation.
Once the investigation report was final, and at the recommendation of legal counsel, President Styers created an ad hoc subcommittee, consisting of President Styers and Trustee Arneson, pursuant to BP 2715 to review the findings and conclusion of the investigation and therefore make recommendations to the full Board for action or no action. The Board’s ad hoc subcommittee recommends the Governing Board adopt the attached proposed Censure Resolution of Trustee McNeil based on the conclusion of the Oppenheimer Investigations Group, LLC investigation.
1. PALO VERDE COLLEGE
DISCUSSION
Censure is a formal action of a legislative body to declare its disapproval or condemnation of particular conduct. There is no express authorization in law for censure. It is a proceeding that exists by custom in CA for elected bodies. A legislative body is deemed to have inherent authority to express approval or disapproval regarding the conduct of its members. Any behavior that reasonably relates to a member’s discharge of his/her office is potentially subject to censure by the legislative body, including conduct that is merely rude, discourteous, or offensive. No material penalty or adverse consequence result from censure itself—only possible public reproach or criticism outside of possible local action by the body on local practices.
Censure is implemented by a majority vote of the Board by means of a “Censure Resolution.” Since a legislative body may not act arbitrarily or capriciously, the Resolution shall contain specific findings based on information presented to the Board which supports the decision to censure one of its members.
A Censure Resolution is presented to the Board by the Board President. An opportunity is provided for public comment. A motion to censure the member must be made and seconded based on the recitals in the Resolution. The motion is then discussed and voted upon by the entire Board, including the member who is the subject of the motion. If necessary, the Board may also choose to amend the proposed resolution. The Board member who is subject to the Resolution shall be entitled to respond to the information contained in the Resolution or he may have a representative speak on his behalf subject to reasonable time limitations set by the Board President.
Resolution 09.09.25-13.1 - Censure of Board Member Jon McNeil.pdf (147 KB) BP 2715.pdf (176 KB)
BOARD OF TRUSTEES
PALO VERDE COMMUNITY COLLEGE DISTRICT
RESOLUTION NUMBER 09.09.25-13.1
CENSURE OF BOARD MEMBER JON MCNEIL
WHEREAS, the Palo Verde Community College District (“District”) Board of Trustees is committed to the effective leadership and operation of the District; and WHEREAS, the Board has established and adopted a Code of Ethics and Standards of Practice for the Board, as set forth in Board Bylaw 2715, including the requirement that Board members shall work with other Board members “in a spirit of harmony and cooperation in spite of differences of opinion”; and
WHEREAS, Board Bylaw 2715, further provides that Board members must “maintain the highest standards of conduct and ethical behavior,” must base their decisions on available facts, “unswayed by partisan bias of any kind,” and must be aware that they are “responsible to all citizens of the District” and not solely those who elected them; and WHEREAS, Board Bylaw 2715 provides that complaints of Board member misconduct “will be referred to an ad hoc committee composed of two (2) Board members not subject to the complaint.” After the ad hoc committee has reviewed and completed its fact-finding process, it shall report its findings to the Board for action, and may make a recommendation to the Board President or the Board as a whole; and
WHEREAS, on January 14, 2025, Resolution No. 2025-8 was presented to the City Council of the City of Needles. The resolution’s title was “A Resolution of the City Council of the City of Needles, California, Supporting Enhanced Investments, Equitable Services, and Workforce Development Programs by the Palo Verde Community College in the Needles Community”; and
WHEREAS, Resolution No. 2025-8 contained many statements which were damaging to the District. Additionally, several of the statements in Resolution No. 2025-8 were inaccurate, lacking relevant context, or otherwise misleading. It stated that the District faced “significant challenges” at its Needles Center, including a lack of in-person counseling, course cancellations threatening students’ FAFSA eligibility, and declining enrollment jeopardizing the District’s financial stability. It also stated that the District has “no clear goals or vision” for its Needles Center, that the District has not used funds equitably to benefit the Needles Center, and that the District’s reserves were projected to be depleted within three years; and WHEREAS, on January 28, 2025, the Board convened a Special Meeting/Study Session regarding Resolution No. 2025-8. At this meeting, Trustee Jon McNeil informed the Board that he and an employee of the District, had contributed to Resolution No. 2025-8. The District’s Superintendent/President, Dr. Bruce Moses, requested authority to initiate an investigation into the involvement of District officials in preparing the resolution. The Board granted his request; and 54086629.5/
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WHEREAS, the investigation initiated by Dr. Moses found that Trustee McNeil engaged in the following conduct: on January 2, 2025, Trustee McNeil received a draft of Resolution No. 2025-8 from Needles City Manager Patrick Martinez. City Manager Martinez informed Trustee McNeil at this time that the resolution would be placed on the City Council’s agenda and requested Trustee McNeil’s input on the resolution. Trustee McNeil did not provide any new information to City Manager Martinez; however, Trustee McNeil provided revisions to the draft resolution to reduce what he described as “inflammatory language”; and WHEREAS, Trustee McNeil’s description of the draft resolution’s language as “inflammatory” showed that he understood it to be potentially damaging to the District. Though Trustee McNeil understood the draft resolution’s contents to be potentially damaging, he did not inform Dr. Moses or the Board in advance that the resolution would be placed on the City Council’s agenda and discussed publicly. By offering his input on the draft resolution without informing Dr.
Moses or the Board, Trustee McNeil tacitly approved of the information therein without taking measures to confirm its accuracy or context; and
WHEREAS, by failing to inform Dr. Moses and the Board about Resolution No. 2025-8, Trustee McNeil also deprived them of the opportunity to communicate their concerns about the information therein to the City prior to the January 14 City Council meeting. As such, Trustee McNeil did not work with Dr. Moses and the Board so as to enable them to take measures to address the risk of unfair harm to the District’s reputation.
WHEREAS, by the foregoing conduct, Trustee McNeil violated the principles and expectations set forth in Board Bylaw 2715 to work in a spirit of harmony and cooperation with other Board members; and
WHEREAS, Trustee McNeil is the only Board member from Trustee Area 2, San Bernardino County, where the Needles Center is located. Resolution No. 2025-8 calls for the District to invest more in the Needles Center, notes that Needles property owners have made “significant financial contributions” to the District, and states that greater investment in the Needles Center would be “equitable” in light of this. By providing his input on a resolution which specifically benefited the City of Needles without involving Board members from any other Trustee Areas, Trustee McNeil failed to act for the benefit of the District’s whole constituency and created an appearance of improper bias; and
WHEREAS, Board members, as public officials, are expected not to place themselves in positions in which any personal bias may impact their decisions. By the foregoing conduct, Trustee McNeil violated the principles set forth in Board Bylaw 2715 to maintain the highest standards of conduct and ethical behavior and make unbiased decisions based on his responsibility to the District’s whole constituency; and
WHEREAS, pursuant to BP 2715, any Board member determined to have violated BP 2715 shall be subject to appropriate disciplinary action, which may include Resolution of Censure by the Board of Trustees.
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NOW, THEREFORE, BE IT RESOLVED that the Palo Verde Community College District Board of Trustees does hereby censure Trustee Jon McNeil for the deficiencies in conduct cited above, in violation of the Bylaws, principles, and/or expectations of the Board; and BE IT FURTHER RESOLVED that the Palo Verde Community College District Board of Trustees hereby removes Trustee Jon McNeil from all committees and appointments for the 2025-2026 school year; and
BE IT FURTHER RESOLVED that the Palo Verde Community College District Board of Trustees does hereby demand that Trustee Jon McNeil henceforth endorse, adopt, and abide by the Board’s adopted policies establishing its Governance Standards, Conflict of Interest policy, and all other Bylaws and Policies of the Board.
PASSED AND ADOPTED by majority vote of the Board of Trustees of the Palo Verde Community College District, County of Riverside, California, on September 9, 2025, at a duly noticed meeting thereof.
(Record Individual Votes by Name)
AYES: ________________________________
NOES: ________________________________
ABSTAIN: ________________________________ _____________________ President
Board of Trustees
The foregoing is a true copy of the resolution adopted by the Board of Trustees of the Palo Verde Community College District at a meeting held on September 9, 2025. _______________________
Dr. Bruce Moses
Superintendent/President
2. SBCTA RIDER APPRECIATION (NAT)
2. SBCTA RIDER APPRECIATION (NAT)
3. STORM RESPONSE
4. WATER DEPARTMENT RESPONSE
4. WATER DEPARTMENT RESPONSE
5. PARK LED UPGRADE PROGRAM
7. ELECTRIC YARD BUILDING UPDATE
8. ADOPTION PROGRAM
10. WOMENS’S CLUB FUNDRAISER
11. FALL SPORTS REC CENTER
12. FALL SPAY AND NEUTER CLINIC
14. SBCSD TRUNK OR TREAT
15. SAVE THE DATE- SAINT VINCENT
City of Needles 817 Third Street, Needles, California 92363 (760) 326-2113 • FAX (760) 326-6765
www.cityofneedles.com
Mayor, Janet Jernigan
Vice Mayor Ellen Campbell
Councilmember Tona Belt
Councilmember Jamie McCorkle
Councilmember JoAnne Pogue
Councilmember Henry Longbrake
Councilmember Larry Ford
City Manager Patrick J. Martinez
MEMORANDUM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PATRICK J. MARTINEZ, CITY MANAGER
SUBJECT: WEEKLY MEMORANDUM
DATE: September 12, 2025
1. Making History: OHMV Master Plan Adopted
This past week, the City Council adopted Resolution 2025-38, approving the OHMV Master Plan and Routes – Pilot Project Technical Memorandum (July 21, 2025). The City of Needles is the only municipality among California’s 482 cities authorized under AB 2152 (2022) to implement this program. The plan establishes 9.20 miles of combined-use routes connecting city streets with BLM trailheads, lodging, and service areas, while meeting state requirements on route length, speed limits, licensing, helmets, and insurance. The program is currently under review by the CHP Commissioner and is not yet in effect—offhighway vehicles cannot legally operate on city streets until approval is granted and the City completes implementation. An education and outreach campaign will accompany rollout, including signage, maps, FAQs, and community meetings, to ensure residents and visitors are fully informed and engaged.
The pilot project is expected to expand recreational access, strengthen tourism, reduce private land trespass, and serve as a model for rural California. It also represents a major economic development opportunity, positioning the City of Needles as a premier hub for OHMV recreation and visitor spending. Refer to the attached map for reference.
2. Assemblymember Gonzalez Hosting Town Hall – October 3 Assemblymember Jeff Gonzalez will be hosting a Community Town Hall in Needles on Friday, October 3, 2025, from 6:00 p.m. to 7:00 p.m. at El Garces, 950 Front Street. This event is an opportunity for residents to engage directly with their State Assemblymember, share perspectives, and learn about legislative initiatives that impact our community. We encourage all residents to attend and take part in this important conversation. For more information and to RSVP, please see the attached flyer or click on this link.
3. NPUA Keeping Power Costs Low
This past week, the City Council approved a 2.7% cost-of-living adjustment to the basic service charge, effective October 1, 2025, along with a reduction in the
over-hydro rate from $0.1423 to $0.1159 and the elimination of the $0.0300 Power Cost Adjustment. This outcome reflects outstanding work by the Utility Manager in keeping power costs low through proactive planning, competitive procurement, and strategic load forecasting. The result is a well-executed purchase strategy that balances increased demand with favorable pricing and fiscal responsibility—delivering direct benefits to Needles residents and businesses.
4. Honoring First Responders – LEARN THE BEAT Event
Western Arizona Regional Medical Center (WARMC) hosted the LEARN THE BEAT event at local schools, providing 75 eighth-grade students with hands-on CPR training. The event also recognized and honored First Responders— firefighters, law enforcement, and emergency medical crews—who place themselves in harm’s way to protect lives and keep the community safe.
Through this initiative, the local emergency medicine community is ensuring that every eighth grader from Laughlin to Needles has the opportunity to learn CPR.
This effort spans public schools, charter schools, private schools, parochial schools, and homeschool programs, giving all students in the region the chance to gain lifesaving skills. Refer to the attached image for a glimpse of the event.
5. Utilities and Public Works Coming Together for Downtown Pride As part of the City’s downtown beautification efforts, Public Works and Utility crews have been preparing the heart of Needles for upcoming Route 66 Centennial activities and the Doors Open California Tour. Crews completed a full cleanup of the historic El Garces Harvey House grounds, while the Water Department painted 20 fire hydrants from Front Street to L Street, enhancing visibility and appearance along the downtown corridor. Military Moms banners were also installed by the Electric Department throughout downtown to honor local service members and add vibrancy to Route 66. In addition, sidewalk repair and replacement work improved pedestrian safety and accessibility in adjacent neighborhoods. These projects reflect a coordinated effort across departments to showcase Needles’ historic landmarks, strengthen community pride, and create a welcoming environment for residents and visitors.
6. Medical Office Assistant Program
Staff partnered with First Institute Training & Management (FITM) to share information about the Medical Office Assistant Program, which is designed to prepare residents for employment in today’s fast-paced healthcare environment.
The program provides training in medical terminology, electronic health records, insurance billing and coding, HIPAA compliance, and patient coordination, while also developing administrative and communication skills. This initiative creates an accessible pathway for young adults and career-seekers in our community to enter the medical field without the need for lengthy higher-education programs.
It directly supports the Council’s goal to attract families and enhance supportive amenities by expanding healthcare career opportunities within the region. Staff will continue to promote this program to ensure maximum community participation and benefit.
7. San Bernardino County Workforce Development-Youth Forward San Bernardino County Workforce Development recently launched the Youth Forward program, which connects eligible youth ages 16 to 24 with career training and support services. The program offers paid work experience, vocational training, individualized mentoring, career development, college enrollment assistance, and the opportunity to earn certifications in high-demand industries such as healthcare, IT, and technical trades. Youth Forward prioritizes services for participants who are low-income, homeless, foster or justiceinvolved, or facing basic-skills challenges. This program strengthens local workforce readiness and aligns with the City Council’s family-friendly and economic development priorities by connecting young residents to careersustaining employment opportunities and building a pipeline of trained workers to support employers in our region. Staff will continue to work with county partners to promote this program throughout the community.
8. Good Morning Needles – September Preview
The next Good Morning Needles coffee gathering is scheduled for next Thursday, September 18, 2025, at 7:30 a.m. at the Chamber and Visitor Center.
The featured guest will be Sal Monica from the San Bernardino County Workforce Development Agency. Following the meeting, Mr. Monica will be available to meet directly with businesses employing five or more staff to discuss resources, training, and workforce solutions. These monthly gatherings continue to increase in attendance and provide a valuable forum for businesses, community members, and civic leaders to connect. Council is encouraged to share this opportunity with local employers who may benefit, and the Chamber will coordinate outreach to ensure participation.
9. Celebrating California’s 175th Anniversary of Statehood This week, the City of Needles joined communities across California in celebrating the 175th anniversary of statehood. During the City Council meeting, Mayor Jernigan read a proclamation in honor of this historic milestone. The proclamation recognized California’s admission to the Union on September 9, 1850, and highlighted the State’s enduring role in shaping the nation’s economy, culture, and democratic values. The City Council emphasized the importance of reflecting on California’s history while looking forward to its continued growth and resilience. As part of the broader Celebrate California initiative, the 175th anniversary highlights the Golden State’s contributions in technology, agriculture, arts, entertainment, and innovation, while celebrating its diversity and resilience. The celebration also underscored the unique place of Needles in California’s story—as the eastern gateway to the State and a community rich in heritage, shaped by the Colorado River, the railroad, and Route 66. By marking this anniversary, the City honored its contributions to California’s past and reaffirmed its commitment to being part of the State’s bright future.
10.Flag Football Final Sign-Ups
The Recreation Department will host a coach’s sneak-peek for all registered flag football players on Tuesday, September 16th, on the grass lawn in front of the Recreation Center. For grades 2nd through 5th, the session will run from 6:00 –
6:45 p.m. In addition to the sneak-peek, the Department will also be accepting late sign-ups that evening, ensuring every interested player has a chance to participate.
11.Community Events Calendar Now Live
The City’s new website now features a Community Events Calendar—your go-to source for what’s happening in Needles. From festivals to meetings, it’s designed to keep residents and visitors connected. Local organizations are invited to submit or update events through the City Clerk’s Office to keep the calendar fresh and inclusive. Contact Candace Clark at
[email protected] to participate. Together, we can showcase the best of Needles, strengthen community spirit, and make it easier than ever to stay informed. The calendar can also be downloaded directly to your phone.
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
1. OHMV MASTER PLAN
2. ASSEMBLYMAN RSVP TOWNHALL
4. LEARN THE BEAT- WARMC
DOORS OPEN CALIFORNIA
ROUTE 66 CENTENNIAL TOUR
September 13-14, 2025
Journey through the Mojave Desert's quirkiest
preservation stories, from relit neon signs to formerly long-vacant Harvey Houses! This event will showcase
multiple restored, reused, or preservation-in-progress
sites along the California Historic Route 66 Needles to Barstow National Scenic Byway. Attendees can take a
guided tour, visiting different properties each day, with speakers at each site. Register for one or both days'
tours, leaving from Barstow. A hotel tour rate is
available in Barstow. Details below.
This tour is organized by the nonprofit California
Historic Route 66 Association. It is part of the
nonprofit California Preservation Foundation's annual
Doors Open California event, the largest statewide
celebration of historic places in CA. Enthusiasts of
historic architecture and cultural heritage can access
over 75 sites statewide on weekends during September.
Tour registration is now open! Tour tickets must be
purchased through the California Preservation
Foundation website. Use the ink below to purchase
your tickets. You will receive an email confirmation and tour details as we get closer to the Doors Open events.
Tour Fee: $20 per person
Ticket Website: californiapreservation.org/doca/
(Your computer security may not allow the ticket site
to open. Copy and paste it into the URL search bar)
QUALITY INN ON ROUTE 66
1520 East Main Street, Barstow
The Quality Inn has discounted rates available for this special Centennial Route 66 program on September 12 -13, 2025.
Reservations must be made by calling the Quality Inn directly at 760-256-6891 and asking for the Centennial Route 66 rate.
Room Rates: $68 single bed room and $70 double bed room For comfort, these rooms are suited for one or two people.
A $10.00 charge is applicable for each additional person in the room.
NOTE: Rates include full complimentary breakfast and Wi-Fi.
Required city tax and state tourism fee will be added at checkout. Online bookings are not eligible for the discount.
Deadline to book at the discounted rate is September 5.
Amenities: Free Parking, Pool, Fitness Center, Restaurant, Bar Harvey House Barstow Casa del Desierto
Harvey House Needles El Garces
Califorina Information Bureau Daggett Newberry Springs
Amboy
Image: CaliforniaToChicago.com
5.CENTENNIAL ROUTE 66
5. CITYWIDE BEAUTIFICATION
5. CITYWIDE BEAUTIFICATION
5. CITYWIDE BEAUTIFICATION
5. CITYWIDE BEAUTIFICATION
Medical Office Assistant
Program
Are you ready to start a career in the medical field without spending years in school? First Institute Training & Management (FITM) is opening doors for young adults/adults and career-seekers through fast-track, hands-on training programs-most notably the Medical Office Assistant (MOA) program.
The Medical Office Assistant program at FITM is designed to equip students with the skills necessary to work in today's fast-paced healthcare settings.
Students learn:
• Medical tcnnhtology • Health insurance billing & coding • :Electronic Health Records (l!:HR) • Front desk and patient c:oordination • Basic administrative &
communication skills
I
• HIPAA complhrnce & patient privacy
FIRST INSTITUTE
T,·aining G Management, Inc.
Raelynn Rios
Workforce Development Specialist
305 D SL, Needles, CA 92363
[email protected] (657) 799-6388
Please scan the QR code or visit the website if interested! https://forms.gle/Fn9ePY6nvaKAlgf48
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6. FIRST INSTITUTE
Youth Forward is San Bernardino County's exciting
youth program. Through Youth Forward you may be
eligible for free skills and career exploration, one-onone mentoring, career training and education, paid work experience, and many other opportunities to
prepare you for a sustainable career. Come join us!
PROGRAM SERVICES
Paid Work Experience
• Vocational Schooling
like Cosmetology, Barber
School Certified Nursing
Assistant, Forklift Operator
EKG Technician, Security
Enforcement Training
Construction, Graphic Design
Phlebotomy, Clinical Medical
Assistant and more!
LOCATION:
Individualized Career
Development Plan
Financial Literacy
College Enrollment Assistance
Employment Assistance
Occupational Training and
Certificates
Suppor'tive Services and more!
CONTACT:
First Institute Training & Management Workforce Development Specialists 305 D. St. Needles, CA 92363 Raelynn Rios & Cory Vale
www.fitmnow.com 0: (909} 829-1643
C: (657) 799-6388
REQUIREMENTS:
16-24 years of age
• Out-of-School AND meets one or
more of the following barriers:
» No High School Diploma or GED
» Disability
» Low Income & Basic Skills Deficient
» Parenting Youth
» Foster Youth
» Justice Involved
» Homeless and more!
I
FIRST INSTITUTE
Training & Management, Inc.
Scan the QR Code
to visit to our Youth
Forward website
workforce. sbcounty.gov/youth/
Funding for this program is provided by San Bernardino County Workforce Development Board (WDB). This WIOA Title-1 financially assisted program or activity, the WDB, are Equal Opportunity Employers. Auxiliary aids and services are available upon request to individuals with disabilities. For federal funding disclosure information, visit workforce.sbcounty.gov/about/ffd/.
7. WORKFORCE DEVELOPMENT
9. CALIFORNIA STATEHOOD