Agenda packet — Needles City Council, December 9, 2025 (part 1 of 2)

(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, DECEMBER 9, 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: 202 746 159# OR listen in and participate by calling Teams: 1-323-488-2227 - Meeting ID: 202 746 159# The meetings are being recorded.

CALL TO ORDER

ROLL CALL

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

RECESS TO EXECUTIVE SESSION

EXECUTIVE SESSION
a. Conference with Legal Counsel Regarding Potential Initiation of Litigation Pursuant to Government Code Section 54956.9(d)(4) Number of Cases: 3
b. Conference with legal counsel regarding existing litigation pursuant to Government Code 54956.9(d)(1) Sylvia Miledi v. City of Needles, et al., Superior Court of the County of San Bernardino, Case No. CIVSB2510533 c. Public Employee Appointment Pursuant to Government Code Section 54957 Title of Position: Director of Finance and Administrative Services
d. Conference with Real Property Negotiators pursuant to Government Code section 54956.8 Property:

APN/Parcel ID(s): 0186-095-03-0-000, and 0186-095-04-0-000. Agency negotiator: Patrick Martinez, City Manager or his designee. Negotiating parties: Palm Communities as potential purchaser and City of Needles as potential seller. Under negotiation: Price and terms of payment

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.)

1. Collaborative Presentation: San Bernardino County Department of Public Health, Arrowhead Regional Medical Center (ARMC), Inland Empire Health Plan (IEHP) & San Bernardino County Medical Society

2. Colorado River Medical Center (CRMC) - Hospital Update & Community Health Initiatives

3. City Attorney John Pinkney will give a presentation on Brown Act Changes (SB707)

INTERVIEWS

4. Interviews / appointments to fill vacancies on various Boards and Commissions, due to current vacancies and the expiration of terms. (ACT)

PUBLIC HEARING

5. Approve the AB1600 Annual Accounting of Development Impact Fees Report  Staff Report
 Council questions of staff
 Mayor to open the public hearing
 Public Comment
 Mayor to close the public hearing
 Approve the AB1600 Annual Accounting of Development Impact Fees Report (ACT)

6. Adopt Resolution 2025-49 approving a Conditional Use Permit Application For A Proposed Licensed Retail Cannabis Dispensary And Related Tenant Improvements At 1611 Needles Highway Within The General Commercial (C-2) Land Use Zoning District; APN 0185-062-25  Staff Report
 Council questions of staff
 Mayor to open the public hearing
 Public Comment
 Mayor to close the public hearing
 Adopt Resolution 2025-49 approving a Conditional Use Permit Application For A Proposed Licensed Retail Cannabis Dispensary And Related Tenant Improvements At 1611 Needles Highway Within The General Commercial (C-2) Land Use Zoning District; APN 0185-062-25. (ACT)

7. An Amendment to Conditional Use Permit Resolution No. 2017-114 for the Cannabis Cultivation Facility at 204 Bazoobuth Street. The Amendment includes changes to sections of the required perimeter wall from Split-Face Block with Wrought Iron to Wrought Iron Fencing Only, and the relocation of the parking area and trash enclosure to the adjacent parcel (APN 0186-154-05). A Lot Tie Agreement will be required to support the Revised Site Layout and include APNs 0186-154-01, 0186-154-05, and 0186-154-

13. CONTINUED TO JANUARY 13, 2026.

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 8 through 9 on the Consent Calendar by affirmative roll call vote (ACT)

8. Ratify the Utility Manager's purchase of Greenhouse Gas Emissions Instruments for the calendar year 2024 compliance period from Amerex for a total cost of $58,867.50.

9. Approve Change Order No. 1 (Final) for the Purchase & Install Metal Building Project increasing the contract with Shipley Construction by $91,210.94 for total contract amount of $676,907.94; and authorize staff to execute said Change Order and issue the Notice of Completion for the work.

END OF NPUA CONSENT CALENDAR
COUNCIL CONSENT CALENDAR All matters listed on the Consent Calendar are considered to be routine and will be enacted by one motion in the form listed. The Mayor or any member of the City Council may pull an item from the Consent Calendar for discussion. Prior to Council action, a member of the public may address the City Council on matters scheduled on the Consent Calendar. A three-minute time limit per person applies. RECOMMENDED ACTION: Approve Items 10 through 16 on the Consent Calendar by affirmative roll call vote. (ACT)

10. Approve the Warrants Register through December 9, 2025.

11. Approve the Minutes of November 12, 2025.

12. Accept and file the November 2025 Treasurer’s Report.

13. Waive full reading and Adopt Purchasing Ordinance Number 678-AC, Amending Chapter 8, Article II of the Needles Municipal Code (Second Read Adopt)

14. Award a three-year contract to UniFirst Corporation to provide Uniform rental and laundry services from 2025 to 2028

15. Waive full reading and Adopt City Council Resolution 2025-50, Confirming and adopting an itemized statement of cost for abatement of property located at 415 D Street, Needles, CA 92363, also known as APN 0186-142-03-0000 and file said Resolution with the County Recorder placing a lien on the property.

16. Authorize the City Manager to execute a professional services agreement with Willdan Financial Services for a Comprehensive Fee Study.

END OF COUNCIL CONSENT CALENDAR

REGULAR COUNCIL ITEMS

17. Award the Base Bid and Additive Alternate to Vance Corporation for the Phase V Street Paving Improvements Project in the amount of $1,373,796.30 plus 10% contingency for a total project cost of $1,511,175.93 and authorize staff to execute a Public Works Agreement with Vance Corporation and move forward with the Notice of Award and Notice to Proceed. (ACT)

18. Adopt Resolution 2025-51, Authorizing the City Manager to enter into an Exclusive Negotiation Agreement (ENA) between the City of Needles and Palm Communities, A California Corporation in Reference to Assessors Parcel Numbers (APN’s) 0186-095-03-0000 and 0186-095-04-0000. (ACT)

19. Adopt Resolution 2025-52 Approving an Employment Agreement with Mark DeMay for the position Director of Finance and Administrative Services effective December 9, 2025, setting a salary of $164,279 in compliance with SB 1436 and incorporate into the salary schedule FY 2025-2026. (ACT)

CITY ATTORNEY REPORT

CITY CLERK REPORT

CITY MANAGER REPORT
City Manager's Reports for the weeks of November 21 and 28, 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: December 5, 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 5th day of December, 2025
/s/        Candace Clark, CPMC, CMC, City Clerk

INDIAN WELLS, CA PALM SPRINGS, CA COSTA MESA, CA NEW YORK, NY PRINCETON, NJ SAN DIEGO, CA December 1, 2025
SB 707- BROWN ACT - DURAZO
- Slovak Baron Empey Murphy & Pinkney LLP -
Agenda Item 3.

BILL SUMMARY
 Enacts broad revisions to the Ralph M. Brown Act.
 Modernizes California’s open meeting laws with updated provisions on teleconferencing, public participation, and accessibility.
 Establishes a new class of “eligible legislative bodies”  Enhance hybrid meeting and translation requirements, streamlines existing teleconferencing framework, and strengthens public participation rights while addressing meeting disruptions and accessibility accommodations.

Agenda Item 3.

KEY PROVISIONS
 The bill SB 707 creates a new category of “eligible legislative body” including:
 City Councils of cities with population of 30,000+
 City Councils of cities located in a county with a population of 600,000+  County boards of supervisors in the counties with 30,000+ population  Special district boards that have an internet website and (1) include the entirety of a county with a population of 600,000+ and have 200+ full-time employees; (2) have 1,000+ full-time employees; or (3) have 200+ full-time employees and annual revenues that exceed $400 million  Until January 1, 2030, these bodies must provide two-way telephonic or audiovisual platforms for public participation, assist with translation services, and maintain accessible webpages with meeting information.

Agenda Item 3.

RULES SPECIFIC TO ELIGIBLE LEGISLATIVE
BODIES
 Two-Way Remote Attendance and Disruption Procedure. SB 707 adds Cal Gov. Code §54953.4.  Eligible legislative bodies must now offer hybrid meetings that allow the public to participate through twoway telephonic or audiovisual platforms. Unless unavailable at location.  By July 1, 2026, each eligible legislative body must adopt, in open session, a policy addressing disruptions to these remote participation services and procedure for restoring access.  If a disruption prevents public participation, the eligible legislative body must recess and attempt in good faith to restore service for at least one hour.
 The body must adopt a finding by roll call vote confirming that reasonable efforts were made and that resuming the meeting serves the public interest more that delaying it further.  The bill authorizes the eligible legislative body or its presiding officer to remove or limit participation by individuals engaging in disruptive behavior, whether attending in person or remotely.

Agenda Item 3.

RULES SPECIFIC TO ELIGIBLE LEGISLATIVE
BODIES
 Translation and Outreach. SB 707 adds Cal Gov. Code § 54953.4.(b)(2) which states eligible legislative bodies do the following:
 Translate meeting agendas and participation instructions into applicable languages  Provide a multilingual, accessible public webpage explaining comment procedures and meetings  Assist with interpretation requests.
 Make outreach efforts to underrepresented and non-English-speaking communities, electronic public access to materials.
 Prohibits liability for the accuracy of translations or interpretation provided by others.  Agencies must also publicly adopt a disruption policy for remote meetings, and specific exemptions are set for meetings largely focused on property, emergencies, or unique circumstances Agenda Item 3.

RULES APPLICABLE TO LEGISLATIVE BODIES IN

GENERAL
 Brown Act Distribution. Under SB 707, Cal Gov. Code § 54952.7  A local agency must provide a copy of the Brown Act to any person who is elected or appointed to serve as a member of the legislative body of the agency.  Social Media Exception. Cal Gov Code § 54952.
 Allows officials to communicate with members of the public on social media while prohibiting them from directly responding to anything another member of the same legislative body posts regarding agency business.
 Reasonable Accommodation. Cal Gov Code § 54953(c)
 Legislative body members may participate by teleconference as an accommodation for a disability.
 Members must participate using both audio and visual technology and must disclose if another adult is in the room with them, and the general nature of that person’s relationship with the member.
 Expanded Teleconferencing Requirements. Cal Gov Code § 24953(b)  The traditional rules for teleconferenced meetings remain unchanged.

Agenda Item 3.

RULES APPLICABLE TO LEGISLATIVE BODIES IN
GENERAL - continued
 Expanded Teleconferencing Requirements. Cal Gov Code § 24953(d), (e), and (f)  Teleconferencing rules in these sections for health authorities and during a proclaimed emergency, are moving to their own new sections, Cal Gov Code § 54953.8.1 and Cal Gov Code § 54953.8.2.
 Cal Gov Code § 54953.8.3
 SB 707 recognizes and expands the teleconferencing provisions of the Brown Act, adding some uniformity to noticing, disclosure, accessibility, and public comment requirements for certain types of teleconferencing.
 SB 707 revises and restates the existing teleconferencing provisions for states of emergency, just cause, and emergency circumstances, and expands coverage to include:
(1) states of emergency declared by localities
(2) just cause allowances, including physical or family medical emergencies preventing in-person attendance and military service.

Agenda Item 3.

RULES APPLICABLE TO LEGISLATIVE BODIES IN
GENERAL - continued
 Exemptions to Public Comment. Cal Gov Code § 54954.3
 The bill amends this code to broaden the exemptions to allowance for a legislative body to skip public comment for certain items already considered by a prior committee comprised exclusively of legislative members. To bypass comment (1) There must not have been a substantial change to the item since committee consideration;
(2) The prior committee meeting must have had a physical, in-person quorum; (3) The committee must not have primary jurisdiction over certain sensitive or high interest areas (e.g., elections, budgets, and police oversight).  Public Recording Rights. The bill amends Cal Gov Code § 54953.5  To reaffirm the public’s right to record open legislative body meetings  Broadens the recording right by removing limiting references to older devices (i.e., audio or video recorder or still or motion picture camera).

Agenda Item 3.

RULES APPLICABLE TO LEGISLATIVE BODIES IN
GENERAL - continued
 Special Meetings Requirements. SB 707 modifies Cal Gov Code § 54956 regarding special meetings:
 Expand the 24-hour posting and distribution requirements to all legislative bodies by removing prior exemptions for certain legislative bodies.  Expands the prohibition on calling special meetings to consider local agency salaries or compensation for local agency executives to also include those for legislative bodies themselves.
 Authority to Remove Disruptive Participants. The bill amends Cal Gov Code § 54957.95  To extend the authority of a presiding legislative body member to remove a person for disrupting a teleconferenced meeting
 Adds Cal Gov Code § 54957.96 to authorize the removal or limit participation of a person participating in the meeting via two-way audiovisual platform or two-way telephonic services if that person “actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting.”
Agenda Item 3.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: December 9, 2025
Title: Interviews / appointments to fill vacancies on various Boards and Commissions, due to current vacancies and the expiration of terms.

Background: The following vacancies were posted and published in the Needles Desert Star on November 19 and 26, 2025, and applications were received as follows:

Board of Public Utilities: There are two seats opening, with terms to expire December 31, 2029. The Board meets on the first and third Tuesday of each month at 4:00 pm Terry Campbell and Ed Brown have re-applied.

Planning Commission: There are three seats opening, with terms to expire December 31, 2029. The Commission meets on the first Wednesday of each month at 4:00 p.m.

Michael Wright and Will Bosboom have re-applied, and Allen Cox has applied.

Park & Recreation Commission: There is one seat opening, with a term to expire December 31, 2029. The Commission meets on the third Monday of each month at 4:00 pm.

Jesse Rodriguez has applied.

Cemetery Advisory Board: There are a total of four vacancies, as follows:
3 current vacancies - two with terms expiring December 31, 2026, and one with a term expiring December 31, 2027 1 seat opening, with a term to expire December 31, 2029.

The Cemetery Advisory Board meets quarterly in January, April, July and October on the third Thursday at 3:00 p.m.

Housing Commission: There remains one vacancy with a term to expire December 31, 2027. The Commission meets on the fourth Wednesday of each month at 4:00 pm.

Recommendation:

Appoint/Reappoint to the Board of Public Utilities (two seats with terms to expire December 31, 2029:

And
Appoint/Reappoint to the Planning Commission (three seats with terms to expire December 31, 2029:
, , and
Appoint to Cemetery Advisory Board , and , with
terms to expire December 31, 2026; and , with a term to expire December 31, 2027; and , with a term to expire December 31, 2029,
Appoint to Park & Recreation Commission , with a term to expire December 31, 2029.

Appoint to Housing Commission , with a term to expire December 31, 2027.

Submitted By: Candace Clark, City Clerk
City Management Review: Date:

Other Department (when necessary): Date:

Clark, City Clerk
12/4/2025
Agenda Item 4.

Agenda Item 4.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: December 9, 2025
Title: Public Hearing for the Annual Account of Development Impact Fees for Fiscal Year 2025 Pursuant to AB1600
Background: AB1600 requires that both general law and charter cities account for all development impact fees collected under its terms. Funds collected for each capital facility or service shall be deposited in a separate fund and may not be comingled with any other funds. While the funds are accumulating for individual capital facilities, the City must keep track of each fund and provide an annual report.

Following are the balances as of June 30, 2025:

NORTH NEEDLES
$ 16,962 Circulation System
$ 2,083 Parkland Acquisition & Facilities
$ 14,586 Water Source Storage & Distribution
$ 14,632 Wastewater Collection System

SOUTH NEEDLES
$ 2,066 Circulation System
$ 2,226 Parkland Acquisition & Facilities
$ 48,826 Water Source Storage & Distribution
$ 27,167 Wastewater Collection System
A Public Hearing is being held today for open discussion and any additional questions regarding these balances.

Fiscal Impact: Planned projects for the current fees include a Developer Impact Fee Study that is in progress. The study will be brought to Council for approval when completed.

Environmental Impact: None
Recommendation: Approve the AB1600 Annual Accounting of Development Impact Fees Report Submitted By: Barbara DiLeo, Senior Accountant
City Manager Approval: Date:

Other Department Approval (when required): Jill Taura, Interim Finance Director Date: 11/03/25 12/4/2025
Agenda Item 5.

CITY OF NEEDLES
Annual Accounting for Developer Impact Fees
FY 2025
DESCRIPTION OF FEES COLLECTED:

Circulation (streets, signals and bridges) System:

The development of property in the affected territory will generate additional vehicle travel.

This traffic will create a need for expansion of existing streets and bridges to accommodate increased traffic from residential and other new development. Additionally, traffic signals and related facilities will need to be installed and maintained to accommodate the increased level of service on new and existing roadways. Pursuant to Article 11, Section 7 of the California Constitution, the City is empowered to enact measures that protect the health, safety and welfare of its citizens.

Water Source, Storage and Distribution System:

The development of any property in the affected territory will generate the need for additional water source, storage and distribution system capacity. Without such additional system capacity, new development will be adversely impacted in the affected territory. As a result, additional water facilities will be needed to accommodate new development. Pursuant to Article 11, Section 7 of the California Constitution, the City is empowered to enact measures that protect the health, safety and welfare of its citizens.

Wastewater Collection System:

The development of any property in the affected territory will generate the need for additional wastewater collection system and mandated connection to that system. Without such additional wastewater collection system capacity, new development will be adversely impacted in the affected territory. As a result, additional wastewater collection facilities will be needed to accommodate new development. Pursuant to Article 11, Section 7 of the California Constitution, the City is empowered to enact measures that protect the health, safety and welfare of its citizens.

Park Land Acquisition and Facilities Development:

The development of residential property in the affected territory will generate a need for additional park land acquisition and facilities development to maintain the current level of service. The City may impose by ordinance a requirement for the payment of fees to pay for the actual or estimated costs of acquiring and constructing park and recreation facilities.

Pursuant to Article 11, Section 7 of the California Constitution, the City is empowered to enact measures that protect the health, safety and welfare of its citizens.

PROPOSED IMPROVEMENTS AND DATE IMPROVEMENTS WILL COMMENCE:

An update to our Developer Impact Fee Study is in progress and will be brought to Council for approval when completed.

Agenda Item 5.

City of Needles, California
Request for City Council Action
CITY COUNCIL PLANNING COMMISSION Regular Special
MEETING DATE: December 9, 2025
TITLE: Resolution 2025-49 of the City Council of the City of Needles, approving a Conditional Use Permit for a Licensed Retail Cannabis Dispensary and related tenant improvements at 1611 Needles Highway, APN 0185-062-26-0000, within the General Commercial (C-2) Zoning District
APPLICANT: Norman Yousif, on behalf of Off The Charts (OTC) LOCATION: 1611 Needles Highway; APN 0185-062-26-0000
BACKGROUND: The applicant, Off The Charts (OTC), is requesting approval of a Conditional Use Permit to establish a licensed retail cannabis dispensary within an existing commercial building located at 1611 Needles Highway. The site is approximately 0.28 acres, zoned General Commercial (C-2), and has been vacant for several years. The proposed project includes tenant improvements, building upgrades, and site enhancements, representing a significant reinvestment that will activate an underutilized parcel and enhance the surrounding commercial corridor. The applicant proposes standard cannabis retail operations with customer check-in procedures, controlled access, secure product handling, inventory tracking, and adherence to all state and local regulations.

The subject property is located on Needles Highway within the General Commercial (C-2) zoning district and carries a General Plan land use designation of General Commercial. The existing building has remained vacant for an extended period, contributing to underutilization along this commercial corridor.

Surrounding uses include commercial and residential development to the south and vacant commercial parcels to the north, east and west. Cannabis retail is a conditionally permitted use in the C-2 district under the Needles Municipal Code, requiring approval of a Conditional Use Permit to ensure operational compatibility and compliance with safety and design standards.

The applicant proposes to renovate the existing building to accommodate cannabis retail operations.

Interior tenant improvements will include controlled customer access, secure check-in areas, retail display space, and compliance-based storage and security systems. Exterior improvements will include façade upgrades, new lighting, ADA access improvements, repainting, landscaping, and repairs or upgrades to the parking lot, pavement, and striping. Security enhancements will include surveillance cameras, controlled entry points, and perimeter safety improvements. The operation will prohibit on-site consumption, maintain strict odor control, and ensure that no cannabis product is visible from the exterior. Customers will enter through a secured lobby, undergo ID verification, and proceed into the retail area only after authorization. The project is expected to improve the site’s appearance, enhance public safety, and contribute positively to the commercial environment along Needles Highway.

The applicant proposes secure access controls, on-site security staffing, 24/7 surveillance monitoring, and comprehensive compliance procedures. The operation will prohibit loitering and on-site consumption and will implement odor-control measures to ensure no off-site impacts.

Redevelopment of the long-vacant site will provide economic investment, job creation, improved visual character, and potential increases in tax revenue. The project will strengthen commercial activity and contribute to corridor beautification.

On December 3, 2025, the Needles Planning Commission conducted a duly noticed public hearing to receive oral and written testimony regarding Conditional Use Permit Resolution No. 12-03-2025-PC.

Following the hearing, the Planning Commission recommended approval of the request. The Planning Commission discussion revolved around signage requirements and ensuring adequate parking was at the site.

CONDITIONAL USE PERMIT (CUP) FINDINGS: In accordance with Section 94.06(c), the Planning Commission must make the following findings to recommend approval of a conditional use permit: Agenda Item 6. 2 1. The requested permit is conditionally within its jurisdiction according to the table of permissible uses.

2. The application is complete

3. The use will not endanger public health or safety.

4. The development will be in conformity with the Needles General Plan.

PUBLIC NOTIFICATION: A public hearing notice was published in the Needles Desert Star on Wednesday, November 19, 2025, and posted in two conspicuous locations. Notices were sent to property owners within 300' of the proposed project site.

ENVIRONMENTAL: CEQA Compliance – Categorical Exemption (Section 15301, Class 1): The proposed project qualifies for a Categorical Exemption under Section 15301 (Class 1) of the California Environmental Quality Act (CEQA) Guidelines. This exemption applies to projects involving minor alterations to existing structures with negligible or no expansion of the existing use. The project involves commercial use within an existing structure and minor site improvements. The building footprint will remain unchanged, and no significant expansion of the existing structure or use is proposed.

RECOMMENDATION: Adopt Resolution 2025-49 approving a Conditional Use Permit, authorizing the establishment and operation of a Licensed Retail Cannabis Dispensary at 1611 Needles Highway, APN 0185-062-26-0000, within the General Commercial (C-2) Zoning District
SUBMITTED BY: Irene Romero, City Planner
ATTACHMENTS:

1. Vicinity Map

2. Project Plans

3. City Council Resolution 2025-49, Findings, and Conditions of Approval

4. CUP Application
City Manager Approval: Date:

Other Department Approval (when required): Date:

Agenda Item 6.

ATTACHMENT NO. 1

VICINITY MAP
DATE: December 9, 2025
PROJECT: CONDITIONAL USE PERMIT APPLICATION

FOR A PROPOSED LICENSED RETAIL

CANNABIS DISPENSARY AND RELATED
TENANT IMPROVEMENTS AT 1611

NEEDLES HIGHWAY WITHIN THE GENERAL
COMMERCIAL (C-2) LAND USE ZONING
DISTRICT; APN 0185-062-26
NORTH

CITY OF NEEDLES PLANNING DEPARTMENT

NEEDLES HWY
PROJECT SITE W. BROADWAY ST.

Agenda Item 6.

Scale As Noted
Sheet Title:

Date:

Revisions:

Scale:

File:

Drawing Number:

Kurt Gibbs AIA
3575 Long Beach Blvd.

Long Beach CA, 90807
T: 562.981.2000
E: [email protected]
Project Number:
31020078
IssueNo. Date
1611 NEEDLES HIGHWAY,
NEEDLES, CA 92363
1 24 November 2025
Planning Comments 10 Nov 2025
2 Planning Comments 24 Nov 2025
3 Planning Comment
Responses
24 Nov 2025
A0.00
Cover Sheet
3a
Applicable Building Code / Utility Information 1
Project Information 2
Occupancy / Zoning 7
Site Address 1611 Needles Highway, Needles, CA
ZIP 92363
Lot Size 112,196.8 SF (0.28 Acre)
Assessor Parcel No. (APN) 0185062260000
Land Use Category General Commercial
Zoning C-2 General Commercial
District 16 | Joshua Tree
Occupancy Classification M
Construction Type Type V-B
Number of Stories One Story
Sprinklered No (No Change)
2025 California Building Code
2025 California Fire Code
2025 California Mechanical Code
2025 California Plumbing Code
2025 California Electrical Code
2025 California Energy Code
2025 California Green Building Standards Code
Project Team
APPLICANT: NORMAN & DARLINE YOUSIF
1611 NEEDLES HIGHWAY,
NEEDLES, CA 92363
TEL. (949) 335-2997
CONTACT: MATTHEW JONES
ARCHITECT: GIBBS ARCHITECTS
3575 LONG BEACH BLVD.

LONG BEACH, CA 90807
TEL: (562) 981-2000
CONTACT: KURT GIBBS
Vicinity Map
N
Scope Of Work 5
Site Map 11
N
1611 Needles Highway,
Needles, CA92363
Drawing List 4

ARCHITECTURAL
A0.00 Cover Sheet
A1.00 Site Plan
A1.01 Enlarged Site Pan
A1.02 Conceptual Lighting Plan
A1.03 Conceptual Landscape Plan
A2.01 Floor Plan
A3.01 Elevations N-E
A3.02 Elevations S-W
9 OCCUPANT LOAD
CALCULATIONS:

TOTAL AREA -1,647 SF
- 1,006 / 60 = 16.7 ~ 17
- 119 / 15 = 7.9 ~ 8
- 243 / 300 = 0.81 ~ 1
194 / 150 = 1.28 ~ 2
Total Occupant Load = 28
AREA BREAKDOWN:

RETAIL 1,006 SF
STORAGE 243 SF
OFFICE 194 SF
BREAK AREA 119 SF
EXISTING RESTROOM 50 SF
HALLWAY 35 SF
TOTAL 1,647 SF
Work is limited to:
· NEW POINTS OF SALE.
· NEW RETAIL COUNTERS AND SHELVES
· NEW WALL
Area of Work:1,647 SF
NOTE:

THERE WILL BE NO HANDLING OF RAW OR "HOT" FOODS WITHIN THE PREMISES.

THERE WILL BE NO EDIBLES AND/OR BEVERAGES FOR SALE AT THIS LOCATION.

RETAIL ITEMS ARE DELIVERED PRE-PACKAGED AND READY FOR SALE.

NO CHANGES TO STOREFRONT.

NO CHANGES TO ELECTRICAL.

NO CHANGES TO PLUMBING.

ADDING RETAIL CABINETS, POINTS OF
SALE, AND SHELVES.
1611 Needles Highway,
Needles, CA92363
PARKING CALCULATIONS:
1,647 SF RETAIL / 250 SF /SPACE
- 6.6 ~ 7 SPACES REQUIRED
7 TOTAL PARKING SPACES REQUIRED
10 TOTAL PARKING SPACES PROVIDED

ELECTRICITY
Needles Public Utility Authority
817 Third St,
Needles, CA 92363
(760) 326-2115 ext.140

WATER / WASTEWATER
Needles Public Utility Authority
817 Third St,
Needles, CA 92363
(760) 326-2115 ext.140
GAS
Southern California Gas Company
1100 Arizona Ave,
Needles, CA 92363
(877) 238-0092

INTERNET
Route 66 Broadband
1058 East Broadway,
Needles, CA 92363
(760) 326-2419

CONDITIONAL USE PERMIT APPLICATION

FOR A PROPOSED LICENSED RETAIL

CANNABIS DISPENSARY AND RELATED
TENANT IMPROVEMENTS AT 1611

NEEDLES HIGHWAY WITHIN THE GENERAL
COMMERCIAL (C-2) LAND USE ZONING
DISTRICT; APN 0185-062-25
ATTACHMENT NO. 2
Agenda Item 6.
100'-0" NO PARKING
HC

PARKING
1 4
5 6
7 8
9 20'-0" 9'-0" 9'-0" 120'-0"

BREAK AREA
CLG: +10'-0"
RETAIL
CLG: +12'-0"

STORAGE
CLG: +10'-0" OFFICE
CLG: +10'-0" EXISTING

RESTROOM
CLG: +10'-0"

NOT USED

NO CEILING

OPEN TO ABOVE
(ANY FUTURE USE, OUTSIDE OF APPROVED

PROJECT WOULD REQUIRE PLANNING APPROVAL)

POS POS POS
HC
POS

WALL DISPLAY

WALL DISPLAY
5'-0" 5'-0"
5'-0" 5'-0"
2 3
10 3'-0"
50'-0" 5'-5" 5'-5" 22'-9" EXISTING FRONT SETBACK 17'-3" EXISTING REAR SETBACK 29'-9"

DRIVE AISLE
28'-3"

DRIVE AISLE
59'-2"

EXISTING REAR

SETBACK
1'-0"

EXISTING REAR
SETBACK 17'-3" 115'-2"
107'-4" 11'-0"
7'-0"
Site Plan
0 8 16 24
1 SCALE:

FILE:
1/16 = 1'-0"
N
32 FT
NOTES:
- ALL SITEWORK TO COORDINATE WITH CIVIL SHEET C-1
- PROJECT PLANS SHALL COMPLY WITH ALL APPLICABLE
REQUIREMENTS UNDER SECTION 111.04.18 AND SECTION
111.04.22 OF THE CITY OF NEEDLES MUNICIPAL CODE.

TRUNCATED DOMES,
36" WIDE, TYP.

NEW CONCRETE VAN

ACCESSIBLE HANDICAPPED

PARKING SPACE

NEW CONCRETE

ADA LOADING SPACE

NEW CONCRETE

ADA WALKWAY

NEW PAVERS

EXISTING GRAVEL

TO REMAIN

NEW PAVERS

NEW HANDICAPPED ACCESSIBLE

SIDEWALK ACCESS TO BUILDING

EXISTING CONCRETE

APRONS TO REMAIN

NEW ASPHALT PARKING

EXISTING CURB CUT AND

DRIVEWAY TO REMAIN

EXISTING CONCRETE ENTRY

TO BE RE-POURED AT

PROPER GRADE FOR ADA

CONDENSING UNITS
(W/ BOLLARDS)
NEW 6'-0" HIGH PILASTER,
TYP OF 5
NEW 5'-0" HIGH WROUGHT

IRON FENCE

EXISTING CHAIN

LINK FENCE

NEW WROUGHT

IRON FENCE
NEW 5'-0" HIGH

WROUGHT IRON FENCE
NEW 6'-0" HIGH
PILASTER, TYP OF 5
NEW 3'-0" SWALE

NEW WROUGHT

IRON FENCE

NEW WROUGHT

IRON FENCE

EXISTING METAL SIGN TO REMAIN

AND TO BE REUSED
(UNDER SEPARATE PERMIT)

EXTERIOR LIGHTING WALL
PACKS, TYP OF 9

NEW TRASH ENCLOSURE W/

SELF CLOSING GATES PER

CITY OF NEEDLS STANDARDS

ADJACENT PROPERTY
(NOT A PART)
EXISTING USE: COMMERCIAL
LAND USE: GENERAL COMMERCIAL

EXISTING CURB CUT TO BE FILLED

AND CONVERTED TO SIDEWALK

EXISTING CURB CUT TO BE FILLED

AND CONVERTED TO SIDEWALK

ADJACENT PROPERTY
(NOT A PART)
EXISTING USE: COMMERCIAL
LAND USE: GENERAL COMMERCIAL

ADJACENT PROPERTY
(NOT A PART)
EXISTING USE: VACANT
LAND USE: GENERAL COMMERCIAL

ADJACENT PROPERTY
(NOT A PART)
EXISTING USE: SFR
LAND USE: GENERAL COMMERCIAL N M S T R E E T W B R O A D W A Y S T R E E T

N E E D L E S H I G H W A Y

NEW PAINTED PARKING

STRIPES

NEW CONCRETE ADA

PATH OF TRAVEL
Scale As Noted
Sheet Title:

Date:

Revisions:

Scale:

File:

Drawing Number:

Kurt Gibbs AIA
3575 Long Beach Blvd.

PARKING
1 4
5 6
7 8
9 20'-0" 9'-0" 9'-0" 120'-0"

BREAK AREA
CLG: +10'-0"
RETAIL
CLG: +12'-0"

STORAGE
CLG: +10'-0"
OFFICE
CLG: +10'-0"

EXISTING

RESTROOM
CLG: +10'-0"

NOT USED

NO CEILING

OPEN TO ABOVE
(ANY FUTURE USE, OUTSIDE OF APPROVED

PROJECT WOULD REQUIRE PLANNING APPROVAL)

POS POS POS
HC
POS

WALL DISPLAY

WALL DISPLAY
5'-0" 5'-0"
5'-0" 5'-0"
2 3
10 3'-0"
50'-0" 5'-5" 5'-5" 22'-9" EXISTING FRONT SETBACK 17'-3" EXISTING REAR SETBACK 29'-9"

DRIVE AISLE
28'-3"

DRIVE AISLE
59'-2"

EXISTING REAR

SETBACK
1'-0"

EXISTING REAR
SETBACK 17'-3" 15'-2"
107'-4" 11'-0"
7'-0"
Enlarged Site Plan
0 4 8 12
1 SCALE:

FILE:
1/8" = 1'-0"
N
16 FT
NOTES:
- ALL SITEWORK TO COORDINATE WITH CIVIL SHEET C-1
- PROJECT PLANS SHALL COMPLY WITH ALL

APPLICABLE REQUIREMENTS UNDER SECTION
111.04.18 AND SECTION 111.04.22 OF THE CITY OF
NEEDLES MUNICIPAL CODE.
3 : 12 3 : 12
Scale As Noted
Sheet Title:

Date:

Revisions:

Scale:

File:

Drawing Number:

Kurt Gibbs AIA
3575 Long Beach Blvd.

Long Beach CA, 90807
T: 562.981.2000
E: [email protected]
Project Number:
31020078
No. Issue Date
1611 NEEDLES HIGHWAY,
NEEDLES, CA 92363
1 24 November 2025
Planning Comments 10 Nov 2025
2 Planning Comments 24 Nov 2025
3 Planning Comment
Responses
24 Nov 2025
Enlarged Site Plan
A1.01
Agenda Item 6.

NO PARKING
HC

PARKING
1 4
5 6
7 8
9 20'-0" 9'-0" 9'-0"

BREAK AREA
CLG: +10'-0"
RETAIL
CLG: +12'-0"

STORAGE
CLG: +10'-0"
OFFICE
CLG: +10'-0"

EXISTING

RESTROOM
CLG: +10'-0"

NOT USED

NO CEILING

OPEN TO ABOVE
(ANY FUTURE USE, OUTSIDE OF APPROVED

PROJECT WOULD REQUIRE PLANNING APPROVAL)

POS POS POS
HC
POS

WALL DISPLAY

WALL DISPLAY
5'-0" 5'-0"
5'-0" 5'-0"
2 3
10 3'-0"
29'-9"

DRIVE AISLE
28'-3"
DRIVE AISLE 17'-3" 15'-2"
107'-4" 11'-0"
7'-0"
Conceptual Lighting Plan
0 4 8 12
1 SCALE:

FILE:
1/8" = 1'-0"
N
16 FT
NOTES:
- PROJECT PLANS SHALL COMPLY WITH ALL

APPLICABLE REQUIREMENTS UNDER
SECTION 111.04.18 AND SECTION 111.04.22
OF THE CITY OF NEEDLES MUNICIPAL CODE.

NEW LIGHTING WALLPACK,
TYP OF 5 (LYTEPRO16)

NEW LIGHTING WALLPACK,
TYP OF 5 (LYTEPRO16)
3 : 12 3 : 12
Scale As Noted
Sheet Title:

Date:

Revisions:

Scale:

File:

Drawing Number:

Kurt Gibbs AIA
3575 Long Beach Blvd.

Conceptual Landscape Plan
0 4 8 12
1 SCALE:

FILE:
1/8" = 1'-0"
N
16 FT
NOTES:
- ALL SITEWORK TO COORDINATE WITH CIVIL SHEET C-1
- PROJECT PLANS SHALL COMPLY WITH ALL

APPLICABLE REQUIREMENTS UNDER SECTION
111.04.18 AND SECTION 111.04.22 OF THE CITY OF
NEEDLES MUNICIPAL CODE.

NEW

XERISCAPE
NEW

XERISCAPE
NEW 36" AGAVE PLANT,
TYP OF 4
NEW 18" AGAVE PLANT,
TYP OF 6
NOTES:
- SEE RENDERS FOR MORE INFORMATION.

Scale As Noted
Sheet Title:

Date:

Revisions:

Scale:

File:

Drawing Number:

Kurt Gibbs AIA
3575 Long Beach Blvd.

Floor Plan
0 2 4 6 8 FT
1 SCALE:

FILE:
1/4" = 1'-0"
N

EXISTING WALLS
LEGEND:

BREAK AREA
CLG: +10'-0"
RETAIL
CLG: +12'-0"

STORAGE
CLG: +10'-0" OFFICE
EXISTING CLG: +10'-0"

RESTROOM
CLG: +10'-0"
AREA BREAKDOWN:

RETAIL 1,006 SF
STORAGE 243 SF
OFFICE 194 SF
BREAK AREA 119 SF
EXISTING RESTROOM 50 SF
HALLWAY 35 SF
TOTAL 1,647 SF
40'-0" 80'-0" 38'-10" 16'-4" 24'-10"
14'-0" 15'-0" 11'-0"
40'-0" 2'-6" 5'-0" 6'-0" 5'-0" 6'-4" 16'-4" 2'-8" 16'-0" 2'-0" 16'-0" 2'-2"

POS POS POS
HC
POS

WALL DISPLAY

WALL DISPLAY
5'-0" 5'-0"
5'-0" 5'-0"
OCCUPANT LOAD CALCULATIONS:

TOTAL AREA -1,647 SF
- 1,006 / 60 = 16.7 ~ 17
- 119 / 15 = 7.9 ~ 8
- 243 / 300 = 0.81 ~ 1
194 / 150 = 1.28 ~ 2
Total Occupant Load = 28

EXISTING WINDOW

TO REMAIN

EXISTING WINDOW

TO REMAIN

EXISTING DOUBLE

SWING DOOR TO REMAIN

EXISTING ROLL UP DOOR
TO REMAIN, TYP. OF 2
(PERMANENTLY CLOSED

EXISTING SWING DOOR

TO REMAIN

CHECK-IN
CLG: +12'-0"

EXISTING WINDOW

TO REMAIN

NOT USED

NO CEILING

OPEN TO ABOVE
(ANY FUTURE USE, OUTSIDE OF APPROVED

PROJECT WOULD REQUIRE PLANNING APPROVAL)

NEW WALLS
Scale As Noted
Sheet Title:

Date:

Revisions:

Scale:

File:

Drawing Number:

Kurt Gibbs AIA
3575 Long Beach Blvd.

North Elevation
0 2 4 6 8 FT
1 SCALE:

FILE:
1/4" = 1'-0" 16'-0" 13'-0"

EXISTING STOREFRONT

TO REMAIN

NEW STUCCO
COLOR "WHITE DAISY"
DEHW02 BY DUNN EDWARDS
(PART OF 25% OF BUILDING ELEVATION TOTAL)
"NEW"
NEW PAINT COLOR "ENVIOUS PASTEL"
DE5576 BY DUNN EDWARDS

EXISTING WINDOW

TO REMAIN

NEW LIGHTING
WALLPACK, TYP OF 5
(LYTEPRO16)
"NEW"
1" THK x 18" HIGH PVC PANEL CONTINUOUS
INTEGRALLY COLORED W/ "COVER OF
NIGHT" DE6329 BY DUNN EDWARDS

EXISTING ROLL-UP
DOORS TO REMAIN 16'-0" 13'-0"
3 12
3 12

EXISTING WINDOW

TO REMAIN

NEW STUCCO
COLOR "WHITE DAISY"
DEHW02 BY DUNN EDWARDS
(PART OF 25% OF BUILDING ELEVATION TOTAL)
"NEW"

NEW PAINT COLOR
"ENVIOUS PASTEL"
DE5576 BY DUNN

EDWARDS

NEW LIGHTING
WALLPACK, TYP OF 5
(LYTEPRO16)
"NEW"
1" THK x 18" HIGH PVC PANEL CONTINUOUS
INTEGRALLY COLORED W/ "COVER OF
NIGHT" DE6329 BY DUNN EDWARDS
East Elevation
0 2 4 6 8 FT
3 SCALE:

FILE:
1/4" = 1'-0"
Scale As Noted
Sheet Title:

Date:

Revisions:

Scale:

File:

Drawing Number:

Kurt Gibbs AIA
3575 Long Beach Blvd.

SEE CONCEPTUAL LIGHTING
PLAN ON SHEET A1.02
Agenda Item 6.

South Elevation
0 2 4 6 8 FT
1 SCALE:

FILE:
1/4" = 1'-0" 16'-0" 13'-0"

NEW STUCCO
COLOR "WHITE DAISY"
DEHW02 BY DUNN EDWARDS
(PART OF 25% OF BUILDING ELEVATION TOTAL)
"NEW"

NEW PAINT COLOR
"ENVIOUS PASTEL"
DE5576 BY DUNN
EDWARDS 16'-0" 13'-0"
3 12
3 12

NEW STUCCO
COLOR "WHITE DAISY"
DEHW02 BY DUNN EDWARDS
(PART OF 25% OF BUILDING ELEVATION TOTAL)
"NEW"
NEW PAINT COLOR "ENVIOUS PASTEL"
DE5576 BY DUNN EDWARDS

EXISTING DOOR

TO REMAIN

NEW LIGHTING
WALLPACK, TYP OF 5
(LYTEPRO16)
West Elevation
0 2 4 6 8 FT
3 SCALE:

FILE:
1/4" = 1'-0"
Scale As Noted
Sheet Title:

Date:

Revisions:

Scale:

File:

Drawing Number:

Kurt Gibbs AIA
3575 Long Beach Blvd.

SEE CONCEPTUAL LIGHTING
PLAN ON SHEET A1.02
Agenda Item 6.

RESOLUTION NO. 2025-49

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEEDLES

APPROVING A CONDITIONAL USE PERMIT FOR A LICENSED RETAIL CANNABIS DISPENSARY AND RELATED TENANT IMPROVEMENTS AT 1611 NEEDLES HIGHWAY, APN 0185-062-26, WITHIN THE GENERAL COMMERCIAL (C-2) ZONING DISTRICT
WHEREAS, the City Council wishes to assist property owners in their efforts to build in the City in a reasonable manner that does not create a hazard to health, safety, and welfare or degrade property values or create incompatibility with surrounding uses; and
WHEREAS, Off The Charts (OTC) submitted an application for a Conditional Use Permit to establish and operate a licensed retail cannabis dispensary at 1611 Needles Highway; and WHEREAS, on December 13, 2022, City Council Ordinance No. 656-AC was approved allowing retail cannabis dispensary in zones C1, C2, C3, M1 and M2, with a Conditional Use Permit and Regulatory Permit; and WHEREAS, the parcel being considered for retail cannabis dispensary is currently zoned C-2 “General Commercial” for APN 0185-062-26-0000; and
WHEREAS, a public hearing notice for the December 9, 2025, City Council meeting was published in the Needles Desert Star on November 19, 2025, at least 10 days prior to said meeting, and notices were sent to property owners within a 300-foot radius of the subject property specifying the date, time and location of the public hearing; and
WHEREAS, on December 3, 2025, the Needles Planning Commission held a duly noticed and advertised public hearing to receive oral and written testimony relative to RESOLUTION NO. 12-03-2025-PC and was commended for approval unanimously; and
WHEREAS, Section 94.06(c) of the Needles City Code describes the findings required to approve a Conditional Use Permit; and
WHEREAS, the City Council finds that the project meets all required findings and is consistent with the General Plan and Municipal Code.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Needles as follows:

SECTION 1. The City Council HEREBY FINDS AND DETERMINES that this project is categorically exempt under the California Environmental Quality Act, under Section 15301 (Class 1) of the California Environmental Quality Act (CEQA) Guidelines. This exemption applies to projects involving minor alterations to existing structures with negligible or no expansion of the existing use. The project involves commercial use within an existing structure and minor site improvements. The building footprint will remain unchanged, and no significant expansion of the existing structure or use is proposed.

SECTION 2. The City Council HEREBY FINDS AND DETERMINES, with reports and findings, that facts do exist to approve RESOLUTION 2025-49, subject to conditions, according to the criteria specified in Section 94.06 of the Needles City Code:

A. That the requested permit is within its jurisdiction according to the table of permissible uses.

FINDING: The requested Conditional Use Permit is within the jurisdiction of the Planning Commission and City Council because retail cannabis uses are conditionally permitted within the General Commercial (C-2) zoning district pursuant to the Needles Municipal Code. Approval of a CUP is the appropriate mechanism for authorizing cannabis retail activities in this zoning designation, and the application falls squarely within the City’s established review and approval procedures for such uses.

B. The Application is Complete
FINDING: Staff has reviewed the application and determined that all required materials, forms, plans, and operational information have been submitted in accordance with the City’s CUP filing requirements. The application includes sufficient detail for staff and the Planning Commission to evaluate the project’s operational characteristics, site improvements, compliance measures, and compatibility with surrounding uses. Therefore, the application is deemed complete for the purposes of processing and consideration.

C. The development is in general conformity with the Needles General Plan.

FINDING: The proposed development is consistent with the goals and policies of the Needles General Plan, which encourage reinvestment in commercial areas, the reuse of vacant and underutilized buildings, and the Agenda Item 6. expansion of economic opportunities within the city. The project supports General Plan objectives related to commercial revitalization, corridor enhancement, public safety, and economic development. By improving an existing commercial site along Needles Highway and providing a regulated commercial service, the development aligns with the General Plan’s vision for this corridor.

D. The development is in harmony with the area in which it is located.

FINDING: The development is in harmony with the surrounding area because it is located within an established commercial corridor composed of similar commercial and service-oriented uses. The proposed improvements, including façade enhancements, new lighting, landscaping, ADA access upgrades, and parking lot repairs will significantly improve the site’s appearance and complement nearby properties. The operational characteristics, including controlled access, security measures, and odor management, ensure that the use will function compatibly with surrounding development. The project activates a long-vacant parcel and contributes positively to the overall commercial environment along Needles Highway.

E. The development will not materially endanger the public health or safety.

FINDING: The development will not endanger public health or safety because the operation of a cannabis retail facility is subject to stringent state and local regulatory requirements. The applicant will implement extensive security measures, including surveillance cameras, access controls, alarm systems, and on-site security personnel. The operation prohibits on-site consumption and loitering, maintains strict odor-control measures, and complies with all applicable building, fire, and accessibility codes. These safeguards ensure that the facility operates in a safe, secure, and orderly manner that does not pose risks to the public.

F. The development will not substantially injure the value of adjoining or abutting properties.

FINDING: The development will not substantially injure the value of adjoining or abutting properties. Instead, the project is expected to enhance surrounding property values by improving a long-vacant and underutilized commercial building. Planned improvements, including renovations to the building exterior, enhancements to lighting, landscaping, accessibility, and parking will contribute positively to the visual and functional character of the area. The project's regulated operations, security protocols, and clean, updated appearance will reduce potential nuisances and may encourage further investment in surrounding properties.

SECTION 3. The City Council hereby finds and determines that facts do exist to approve Resolution 2025-49.

SECTION 4. The City Council hereby approves Resolution 2025-49, a Conditional Use Permit to establish and operate a licensed retail cannabis dispensary at 1611 Needles Highway within the General Commercial (C-2) zoning district also known as APN 0185-062-26-0000 subject to conditions stated herein below:

1. Approval of Resolution 2025-49 Conditional Use Permit (“CUP”) authorizes one (1) cannabis retail business within the existing building on the site located at 1611 Needles Highway. This CUP does not authorize cooperative/collective uses, manufacturing, distribution, cultivation, or testing laboratory activities at this site.

2. The Applicant/Owner/Operator, and his/her/its successor(s) in interest (“Applicant”) shall comply with all conditions of this CUP, including the Needles Municipal Code (“Municipal Code”) and Chapter 12A thereof, the City Zoning Code, including Article IV and Section 94 thereof, and all applicable laws, policies, rules and regulations of the City, County, and State; and shall comply with any requirements associated with this approval or with the issuance of any Consumption License as required by Chapter 12A of the Municipal Code.

3. The project shall conform to all plans, materials, and documents submitted as part of the CUP. Any deviation or modification shall require Planning review and approval.

4. With the exception for amendments and/or modifications that are consistent with Section 94.15 of the City’s Zoning Code, anything not shown on the CUP application or the Site Plan, or which is not specifically approved herein, or which is not in compliance with the CUP, is not approved. Any application and/or plans which are defective as to, but not limited to, omissions, dimensions, scale, use, colors, materials, encroachments, easements, etc., shall render any entitlements granted here under null and void. Construction (if any) shall cease until all requirements of this CUP are complied with, and development entitlements may be withheld until any Code violations are abated.

5. The Applicant shall obtain a Cannabis Regulatory Permit from the City and a State cannabis retail license prior to commencing operations. Suspension or revocation of any required license shall immediately suspend cannabis operations.

6. The approval of Resolution 2025-49 is subject to the twelve (12) month expiration provisions of Section

94.13(a) of the City’s Zoning Code.

Agenda Item 6.

7. The permit issuing authority may extend for a period of up to twelve (12) months, the date when the permit would otherwise expire pursuant to 94.13(a) if it concludes that: (1) the permit has not yet expired; (2) the permit recipient has proceeded with due diligence and in good faith; and (3) conditions have not changed so substantially as to warrant a new application.

8. The Applicant shall indemnify and hold the City harmless from all claims arising from the approval or operation of the cannabis business.

As a condition of approval, the Applicant shall:
(a) Execute an indemnification agreement acceptable to the City. (b) Maintain insurance with minimum limits of $1,000,000 per claim and $2,000,000 aggregate. (c) Name the City as an additional insured; and
(d) Defend, at its sole expense, any action brought against the City related to the approval or operation of the cannabis business.

9. All construction shall comply with current Building, Fire, Mechanical, Electrical, and Plumbing Codes and any conditions imposed by the Fire Department.

10. The Applicant shall obtain a Certificate of Occupancy prior to operation. All required inspections shall be completed to the satisfaction of the City.

11. Within fifteen (15) days of final approval by City Council, the Applicant shall submit a signed acknowledgment confirming acceptance of these Conditions of Approval.

12. A scanned copy of the signed Conditions shall be included in the Building Construction Plans submitted for plan check.

13. The Applicant shall pay all established service, permit, impact, environmental, and other applicable fees required by the City as a condition of this CUP.

14. The Applicant shall apply for and obtain a Cannabis Retail License prior to operating the cannabis consumption business conditionally authorized by this CUP and shall at all times comply with the provisions of such license and applicable City Codes and regulations. The revocation or suspension of any required regulatory license shall operate to suspend all operations.

15. Hours shall comply with all State and local cannabis retail regulations.

16. The following are prohibited:
• On-site consumption of cannabis
• Outdoor cannabis sales or display
• Alcohol sales or consumption
• Medical evaluations or physician recommendations
• Special events without City approval

17. The Applicant shall install and maintain an odor-control system that prevents cannabis odors from being detected outside the building.

18. All cannabis products shall be stored in locked, secure locations during and after operating hours.

19. Graffiti shall be removed or painted over within twenty-four (24) hours of occurrence.

20. An emergency access and evacuation plan shall be filed with the Fire Department and law enforcement.

21. A Security Plan shall be reviewed and approved by the City Manager or designee prior to issuance of a building permit.

22. A 24-hour digital surveillance system shall be installed and maintained, providing a minimum of 240 hours of recorded storage. Footage shall be provided to the City within 24 hours upon request.

23. A monitored burglar and fire alarm system shall be installed.

24. Security personnel shall possess valid State licenses/Guard Cards.

25. All exterior areas shall be illuminated per City standards and shielded to prevent off-site glare.

26. Access to retail areas shall be restricted to verified customers and authorized staff.

27. The Applicant shall obtain Will-Serve letters for water, sewer, and electric service.

28. The Applicant shall provide electric, water, and sewer demand calculations, if applicable.

Agenda Item 6.

29. The Applicant is responsible for any necessary utility upgrades.

30. All capacity fees must be paid prior to issuance of a Certificate of Occupancy.

31. Parking areas shall be paved and striped consistent with City standards.

32. The Applicant shall provide ADA-compliant parking, paths of travel, and building accessibility features.

33. The building exterior shall be maintained in good condition, and all materials shall be consistent with City aesthetic requirements.

34. Trash bins shall be kept within a screened, secured enclosure.

35. Ground-mounted HVAC units shall be enclosed within anti-theft cages.

36. An Encroachment Permit shall be obtained for any work within the public right-of-way.

37. Construction sites shall be kept free of debris and maintained in a clean and orderly manner.

38. If cultural materials or human remains are discovered, work shall cease and PRC §5097.98 procedures which outlines the mandatory procedures for handling the inadvertent discovery of Native American human remains and associated grave goods on private or non-federal public lands in California. shall be followed.

39. The City Manager or designee may conduct site inspections with 24 hours’ notice.

40. Applicant shall reimburse the City for all enforcement, inspection, and processing costs associated with this cannabis business.

41. Violation of any condition may result in suspension or revocation of this CUP pursuant to NMC 118.04.

42. The applicant shall submit a final precise grading plan to Engineering Department for review and approval prior to any permit issuance.

43. The two (2) unused driveway approaches on Needles Highway shall be removed and replaced with PCC sidewalk per city standards.

44. Permeable pavers shall not be installed within any area of the Public Right-of-Way.

45. A final WQMP may be required for the project dependent upon the final amount of impervious surface installed based upon the final precise grading plan.

46. An ADA pathway shall be provided to the public sidewalk.

47. The project shall comply with all requirements identified in San Bernardino County Fire Protection District Plan Review No. FPLN-2025-00147, dated October 6, 2025, including all conditions, corrections, inspections, construction standards, and operational requirements specified therein. Compliance with County Fire requirements shall be verified prior to issuance of a Certificate of Occupancy.

48. The Cannabis Business shall operate in a manner consistent with the U.S. Department of Justice enforcement guidelines and priorities, including those prohibiting:
(a) The distribution of cannabis to minors.
(b) Providing revenue from the sale of cannabis to criminal enterprises, gangs, or cartels. (c) The diversion of cannabis from a state where cannabis is legal to a state where it is illegal. (d) Using cannabis business activity as a cover for trafficking other illegal drugs or engaging in other illegal activity.
(e) The use of violence or firearms in the operation, cultivation, distribution, or retail sale of cannabis. (f) Actions contributing to drugged driving or other adverse public health consequences. (g) Growing cannabis on public lands or causing environmental or safety hazards associated with cannabis production on public lands; and
(h) The possession or use of cannabis on federal property.

Failure to comply with these standards may result in enforcement action, penalties, suspension, or revocation of the Conditional Use Permit or Cannabis Regulatory Permit.

49. The Cannabis Business shall pay all legally required taxes and fees, including, but not limited to, the City’s Cannabis Business Tax, sales tax, and all other City or State-imposed taxes, fees, assessments, penalties, and regulatory charges.
(a) The Cannabis Business shall not have any unpaid financial obligation to the City, including unpaid taxes, penalties, fees, interest, fines, or other required payments (“unpaid tax obligations”).

Agenda Item 6.
(b) A Cannabis Business shall not be in breach of this condition if it enters into and fully performs the terms of a written offer and compromise or other settlement agreement approved by the City to resolve any unpaid tax obligations.
(c) Nothing in this condition shall deprive the Cannabis Business of the right to appeal or seek judicial determination of the propriety of any amounts alleged by the City as unpaid tax obligations. (d) The Cannabis Business shall not lose its Cannabis Business Regulatory License during the pendency of a timely and properly filed appeal or judicial action regarding disputed tax obligations. (e) The Cannabis Business shall comply with Needles Municipal Code Chapter 12A, all applicable City ordinances and resolutions, the Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), and all State laws, rules, regulations, and guidance governing cannabis operations.

50. The Cannabis Business shall keep adequate records of any Cannabis related activity, including conducting an inventory on the first business day of each week and recording the total quantity of each form of Cannabis on the Premises. Records expressly include, but are not limited to, video recordings maintained pursuant to this Chapter. All records shall be maintained for seven (7) years from the date created or longer if required by State or Federal law.

51. The Cannabis Business shall comply with the State’s track and trace system and other requirements, as may be amended from time to time.

52. On the fifth day of each month, the Cannabis Business shall provide the City Manager with a written report containing the following information:
(a) Bills of lading and a description of all inventory shipments received (including those received by the Cannabis Business, weight of any Cannabis flowers, edibles and concentrates) since prior report; (b) The description and weight of inventory in the possession or control of the Cannabis Business; (c) The total gross revenue received from prior month’s sales; and (d) A copy of any inventory manifest and/or sales or tax reports provided to the State Board of Equalization, the California Department of Tax and Fee Administration, and/or the Department of Cannabis Control, and any other taxing agencies.

SECTION 5. This action shall become final and effective fifteen (15) days after this decision by the CITY COUNCIL, unless within such period, a written appeal is filed with the City Clerk for consideration by the City Council as provided by the Needles City Code.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
APPROVED AS TO FORM:

Lena Wade, Deputy City Attorney
Agenda Item 6.

ATTACHMENT NO. 4
Agenda Item 6.

Agenda Item 6.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: December 9, 2025
Title: Ratify the Utility Manager's purchase of Greenhouse Gas Emissions Instruments for the calendar year 2024 compliance period from Amerex for a total cost of $58,867.50
Background: The California Air Resources Board regulation for Greenhouse Gas Emissions requires annual compliance obligations.

The annual compliance obligations for a covered entity equals to 30 % of the emissions, with a compliance obligation reported from the previous data year that received a positive or qualified positive emissions data verification statement. The deadline for the required compliance instruments is to be submitted into the City’s CITSS compliance account no later than November 3, 2025.

For 2024, the City of Needles has verified emissions 8,944 instruments, of which the City has 6,082 free instruments entered into the compliance accounting; the remaining balance of 2,862 instruments was needed to meet compliance.

The city went into the open market and purchased the instruments at $28.00 for vintage year 2024 CA DEBS of 1,192. The remaining instruments purchased in October will be applied to 2025 compliance. The City needed to purchase non-CA DEBS in the amount of 1,670 to meet compliance requirements. Amerex was able to locate the instruments for $35 each.

The remaining 70% of emissions are not due until the tri-annual compliance period in 2027.

Failure to meet the compliance deadline will result in a 10 to 1 penalty fine issued by the California Air Resources Board.

The Board of Public Utilities approved the recommended action on November 18, 2025.

Fiscal Impact: The fiscal impact for 1,670 instruments at $35 each is $58,450 plus the broker fee of $417.50 for a total cost of $58,867.50 to be funded by the adopted FY 26 Electric O&M Budget
Environmental Impact: Offset Greenhouse Gas Emissions reported and verified in 2024.

Recommended Action: Ratify the Utility Manager's purchase of Greenhouse Gas Emissions Instruments for the calendar year 2024 compliance period from Amerex for a total cost of $58,867.50
Submitted By: Rainie Torrance, Utility Mananger
City Manager Approval: Date:

Other Department Approval (when required): Date: 12/02/25 12/4/2025
Agenda Item 8.

REVISED: This confirmation supersedes and replaces any previously executed confirmation for this transaction
This Confirmation (“Confirmation”), dated as of DATE October 29, 2025 made effective as of the “Trade Date” noted below, confirms the terms of the agreement (the “Transaction”) for the purchase and sale of California Carbon Allowance between Mercuria Energy America, LLC (“MEA”) and City of Needles (“City of Needles”).

Seller and Buyer are sometimes referred to individually as a “Party” and collectively as the “Parties”.

ARTICLE 1
TERMS
The terms of the transaction to which this Confirmation relates are as follows:

1.1 Transaction Terms
Trade Date: October 29, 2025
Seller: MEA
Seller Trade ID: 29679099
Buyer: City of Needles
Buyer’s Account
Number: CA1456-1556
Buyers Entity
Ref Code: S6BW6PSV68WQ
Product: California Carbon Allowance
Vintage Year: 2024 or earlier
Delivery Date: Seller will deliver on or before October 30, 2025 Contract Price: USD $35.00 per CCA
Contract Carbon
Allowance: 1,670 CCOs
Agenda Item 8.

ARTICLE 2.

DEFINITIONS
As used in this Agreement, the following defined terms have the meanings set forth below:

2.1 “AB32” means the California Global Warming Solutions Act of 2006.

2.2. “Applicable Standard” means AB32 and the Cap and Trade Regulations.

2.3 “Business Day” means a day other than a Saturday, Sunday or other day on which Federal Reserve member banks located in Houston, Texas are authorized or required to close.

2.4 “Cap and Trade Regulations” means the Mandatory Greenhouse Gas Emissions Reporting regulations set forth in Title 17, Subchapter 10, Article 2 of the California Code of Regulations and the California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms regulations set forth in Title 17, Subchapter 10, Article 5 of the California Code of Regulations, in each case promulgated by CARB pursuant to the AB32.

2.5 “CARB” means the California Air Resources Board or any successor agency thereto performing substantially the same function with respect to the Applicable Standard.

2.6 “Carbon Allowance” means (a) a limited tradable authorization to emit up to one metric ton of carbon dioxide equivalent issued by CARB in accordance with the Cap and Trade Regulations and (b) to the extent the Tracking System does not permit the Parties to identify whether a specific authorization was issued by a particular Relevant Authority, any other tradable authorization to emit issued by a Relevant Authority that may be used to emit up to one metric ton of carbon dioxide equivalent under the Applicable Standard.

2.7 “Contract Carbon Allowances” has the meaning specified in Section 3.1.

2.8 “Contract Price” means the amount per unit of Product specified in Section 1 as the Contract Price in respect of this Transaction.

2.9 “Deliver” means, with respect to any Carbon Allowance, when the transfer of such Carbon Allowance to the Buyer’s Tracking System Account is properly recorded with the Tracking System. The terms “Delivery” and “Delivered” have meanings correlative thereto.

2.10 “Emission Rights” means any present or future right, interest, claim, credit, entitlement, benefit, or allowance to emit present or future gases arising from, resulting from, or in connection with any Carbon Allowance and includes any right or rights that may be created under any present or future applicable law.

2.11 “Event of Default” means with respect to each Party, unless a specific Party is specified in, in which case means with respect to that Party only:
(a) The failure of such Party to make payment when due under this Agreement if such failure is not cured within three Business Days of a demand for payment. (b) The failure of Buyer to satisfy its obligations under Section 4.1(a) in respect of the acceptance of the Contract Allowances.
2 Agenda Item 8.
(c) Any other failure of performance by a Party of its material obligations under this Agreement not otherwise identified as a separate Event of Default hereunder if such failure is not cured within five Business Days of a demand for cure or other corrective action deemed satisfactory by the Performing Party in its sole discretion. (d) Such Party:
(i) is dissolved (other than pursuant to a consolidation, amalgamation or merger); (ii) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due;
(iii) institutes or has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights; or
(iv) has a secured party take possession of all or substantially all of its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all of its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within thirty (30) days thereafter.
(e) The making by such Party of a materially incorrect or misleading representation or warranty under this Agreement, in any material respect when made or deemed made or repeated and such Party does not cure (if curable) such representation or warranty within five (5) Business Days of written notice of such occurrence from the other Party. (f) The failure of such Party to satisfy adequate assurance requirements set forth in Section 7.4 hereof.

2.12 “Interest Rate” means the per annum rate of interest equal to the lesser of (x) the prime lending as may from time to time be published in the Wall Street Journal under “Money Rates” plus two and (y) the maximum lawful rate permitted by applicable law.

2.13 “Linked GHG ETS” means an “External Greenhouse Gas Emissions Trading System” (as defined in the California Cap and Trade Regulations) with respect to which the CARB has established a “Linkage” (as defined in the California Cap and Trade Regulations) pursuant to Sub-Article 12 of the California Cap and Trade Regulations and includes the comparable program of the Government of Québec.

2.14 “Relevant Authority” means, as applicable, (a) CARB or the Executive Officer, as applicable, with respect to the California Cap and Trade Regulations and (b) any other governmental agency or authority designated in connection with a Linked GHG ETS as responsible for the implementation and management of such Linked GHG ETS.

2.15 “Tracking System” means the Compliance Instrument Tracking System Service or such other tracking system service acceptable to Buyer and CARB for compliance with AB32.

2.16 “Tracking System Account” means the account with the Tracking System that an entity receives when it registers with the CARB or other appropriate governmental authority pursuant to the Cap and Trade Regulations.

Agenda Item 8.

2.17 “Transfer” means the submission and, if necessary, the confirmation of a transfer request with the Tracking System, in accordance with the rules of the Tracking System, directing the transfer of Carbon Allowances from one Tracking System Account to another Tracking.

2.18 “Vintage” means, with respect to any Carbon Allowance, the applicable “Budget Year” (as such term is defined in the Cap and Trade Regulations) to which such Carbon Allowance is assigned pursuant to the Cap and Trade Regulations.

ARTICLE 3

PURCHASE AND SALE OF CARBON ALLOWANCES

3.1 Sale. Seller shall sell to Buyer the quantity of Carbon Allowances referenced in Article 1 of the designated Vintage (the “Contract Carbon Allowances”).

3.2 Purchase. Buyer shall purchase and accept the Contract Carbon Allowances for the agreed upon Contract Price referenced in Article 1.

3.3 Regulatory Continuing. Each reference to the Cap and Trade Regulations and each reference to AB32 means, as applicable, the Cap and Trade Regulations or AB32, as may be amended from time to time, and each reference to the Applicable Standard shall reflect any such amendments.

ARTICLE 4
TRANSFER AND TITLE; ADDITIONAL COVENANTS

4.1 Title, Transfer, and Delivery.
(a) On the Delivery Date Seller shall initiate a Transfer for the Contract Carbon Allowances to be Delivered to Buyer’s Tracking System Account. Promptly following Buyer’s receipt of Seller’s notice of initiation of such Transfer and in any event within three days following such initiation, Buyer shall take such actions as are necessary in order to complete the Delivery of such Contract Carbon Allowances.
(b) All of Seller’s (or Seller’s Affiliate) title to and interest in the Contract Carbon Allowances transfer to Buyer upon Delivery of such Contract Carbon Allowances to Buyer’s Tracking System Account. Such transfer of title and interest includes all Emission Rights relating to the Contract Carbon Allowances so Delivered as well as the exclusive right to claim ownership and use of such Contract Carbon Allowances. Concurrently with such Delivery, Buyer gains the exclusive right, to the full applicable extent, to verify, certify, and otherwise take advantage of the rights, claims, ownership, and Emission Rights in such Contract Carbon Allowances.

4.2 Further Assurances. Each Party shall cooperate fully and assist the other Party to obtain any and all required approvals and/or forms which may be required to effectuate the transfer of the Contract Carbon Allowances to the Buyer’s Tracking System Account in accordance with this Agreement and to comply with any and all other applicable procedures, requirements, and/or regulatory obligations relating to the recording and transfer of the Contract Carbon Allowances as may be required by the Tracking System or the Cap and Trade Regulations.

4.3 Cooperation. Upon notification that any Delivery contemplated by this Agreement will not be completed, the Parties shall promptly confer and shall cooperate in taking all reasonable actions necessary to cure any defects in the proposed transfer, so that the Delivery can be completed.

Agenda Item 8.

ENERGY AMERICA, LLC
Signature Page to Agreement for the Purchase and Sale of California Carbon Allowance

4.4 Holding Limit. Provided that Seller has Transferred the Contract Carbon Allowances on or prior to the date specified in Section 4.1 above (or within any applicable grace period), Buyer will be deemed to have failed to perform its obligations under Section 4.1 to take such actions as are necessary in order to complete Delivery if such Delivery of Contract Carbon Allowances is rejected by the Executive Officer as a result of Buyer exceeding its holding limit as provided in Section 95920 of the Cap and Trade Regulations.

4.5 Responsibility. Each Party is responsible for all costs, fees, brokerage commissions, taxes, and charges of whatever kind and amount that such Party incurs in connection with the performance of its respective obligations under this Agreement, including any costs associated with the establishment and maintenance of its Tracking System Account.

4.6 Records. Seller shall maintain all records relating to the Contract Carbon Allowances for a period of two years after the date of Delivery of such Contract Carbon Allowances. Upon request of Buyer, Seller shall provide copies of all such records to Buyer. Seller shall maintain adequate records to assist Buyer, Buyer’s customer, CARB, or other Relevant Authority in meeting any present or future reporting, verification, transfer, registration, or retirement requirements associated with the Contract Carbon Allowances.

ARTICLE 5

BILLING AND PAYMENT

5.1 Invoice. Following each Transfer by Seller of any Contract Carbon Allowances in accordance with Section 3.1, Seller shall provide an invoice to Buyer reflecting the applicable portion of the Contract Carbon Allowances based on the Contract Price (the “Invoice”). Invoices may be furnished to Buyer by facsimile transmission or in any other manner permitted pursuant to Section 8.1.

5.2 Payment. Within five (5) Business Days of the later of (x) Buyer’s receipt of the Invoice or (y) Buyer’s receipt of confirmation of the Transfer of the applicable Contract Carbon Allowance to the Buyer’s Tracking System Account, Buyer shall pay the applicable portion of the Contract Price to Seller. All payments made under this Agreement shall be made in immediately available United States Dollars by electronic transfer to the following accounts:

Payments to: Seller:

Bank:

Bank ABA:

Account Number:

5.3 Netting. If Seller and Buyer are each required to pay any amounts in respect of purchases/sales hereunder or under any other contracts between the Parties on the same day, then, upon notice from one Party to the other, such amounts with respect to each Party will be aggregated and the Parties shall discharge their obligations to pay through netting, in which case the Party, if any, owing the greater aggregate amount shall pay to the other Party the difference between Agenda Item 8.
the amounts owed.

5.4 Late Payment. If either Party fails to remit any amount payable by it when due, interest on such unpaid amount will accrue daily at the Interest Rate.

5.5 Invoice Dispute. If Buyer, in good faith, disputes the accuracy of the amount invoiced by Seller, Buyer shall pay the undisputed amount of the invoice and provide written notice to Seller stating the reasons why the invoice amount is incorrect with supporting documentation acceptable in industry practice. In the event the Parties are unable to resolve such dispute, either Party may pursue any remedy available at law or in equity to enforce its rights hereunder.

In the event that it is determined or agreed that Buyer must or will pay the disputed amount then Buyer shall pay interest from and including the original payment due date until the date payment is made at the Interest Rate.

ARTICLE 6

REPRESENTATIONS AND WARRANTIES

6.1 Mutual Representations and Warranties. Each Party represents and warrants to the other Party, as of the date of this Agreement and as of each Delivery of Contract Carbon Allowances and payment in respect of the Contract Price that:
(a) It is duly organized and validly existing under the laws of the jurisdiction of its organization or incorporation and, if relevant under such laws, in good standing. (b) It has the corporate authority and power to execute, deliver and perform the Agreement and enter into any transaction contemplated hereby.
(c) Such execution, delivery and performance of this Agreement have been duly authorized and do not violate or conflict with any law applicable to it, any provision of its constitutional documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any contractual restriction binding on or affecting it or any of its assets. (d) This Agreement constitutes a legal, valid and binding obligation of such Party, enforceable against such Party in accordance with its terms, subject to bankruptcy, reorganization, and similar laws affecting creditors’ rights generally and to general principals of equity (regardless whether considered in a proceeding in equity or at law). (e) There is no pending or (to its knowledge) threatened litigation, arbitration or administrative proceeding that materially adversely affects its ability to perform under this Agreement. (f) It is a “forward contract merchant” and this Agreement is a “forward contract” within the meaning of the United States Bankruptcy Code.
(g) It is not relying upon any advice, reports, analyses, or representations of the other Party other than those expressly set forth in this Agreement or any written guarantee of the obligations of such other Party, and the other Party has not given to it any assurance or guarantee as to the expected financial performance or result of this Transaction, and it has entered into this Agenda Item 8.

Transaction as principal and for its own account (and not as advisor, agent, broker or in any other capacity, fiduciary or otherwise), with a full understanding of, and the ability to assume, the material terms and risks of the same, and has made its trading and investment decisions (including regarding the suitability thereof) based upon its own judgment and any advice from such advisors as it has deemed necessary.
(h) It enters into each Transaction hereunder with the intention that it shall be physically settled through Delivery of Product and shall not be financially settled or otherwise constitute a “swap” within the meaning of the Commodity Exchange Act, 7 U.S.C. 1a(47)(A);

6.2 Warranties of Title; Validity. Seller warrants contemporaneously with each Delivery of Contract Carbon Allowances made pursuant to this Agreement that (a) immediately prior to Delivery Seller has good and marketable title to such Contract Carbon Allowances, (b) such Contract Carbon Allowances are not subject to specific restrictions on their sale or transfer, (c) such Contract Carbon Allowances are of the Vintage set forth in this Agreement or an earlier Vintage and can be used for compliance with the Applicable Standard and any Linked GHG ETS, (d) Seller has the power to sell such Contract Carbon Allowances, (e) such Contract Carbon Allowances are Delivered free from all liens, claims, security interests, encumbrances and other defects of title arising prior to Delivery and (f) such Contract Carbon Allowances have not otherwise been sold to any other person or retired or claimed for Seller’s own benefit.

6.3 Limitation of Warranties. EXCEPT AS SPECIFICALLY SET FORTH IN SECTION 6.2,

SELLER MAKES NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED

WITH RESPECT TO THE CONTRACT CARBON ALLOWANCES DELIVERED

PURSUANT TO THIS AGREEMENT, WHETHER AS TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER MATTER.

6.4 Survival. This Article 6 survives for a period of three years following the termination of this Agreement.

ARTICLE 7
EVENTS OF DEFAULT; REMEDIES

7.1 Events of Default. If an Event of Default occurs with respect to either Party (the “Defaulting Party”) at any time during the term of this Agreement, the other Party (the “Performing Party”) may (a) designate by written notice delivered to the Defaulting Party a date, no earlier than the day such notice is effective and no later than twenty (20) days after such notice is effective, as the early termination date in respect of this Agreement, (b) suspend performance or withhold any payments or transfers of Carbon Allowances due in respect of this Agreement to the extent of its damages pursuant to this Article, (c) exercise its rights under Section 7.2 of this Agreement, and (d) exercise such other remedies as may be available at law or in equity or as otherwise provided in this Agreement including an action for damages (except as limited by Section 7.3) .

7.2 Termination Payment. In the event the Performing Party terminates this Agreement in accordance with Section 7.1 above, the Performing Party shall in good faith calculate its Gains or Losses and Costs resulting from the termination of this Agreement, aggregate such Gains, Agenda Item 8.

Losses and Costs and any other amounts due under this Agreement into a single net amount (the “Termination Payment”), and then notify the Defaulting Party of the Termination Payment owed or owing. The Termination Payment is due to or due from the Performing Party as appropriate. The Party owing the Termination Payment shall pay the Termination Payment within three Business Days after the Defaulting Party’s receipt of notice of the amount of the Termination Payment. The Performing Party may from time to time set off any or all amounts which the Defaulting Party owes to it against any or all amounts which the Performing Party owes to the Defaulting Party (in either case, under any agreement and whether or not then due), provided that any amount not then due which is included in such set-off shall be discounted to present value as determined by the Performing Party in a commercially reasonable manner.

For purposes of this Section, the following terms apply:
“Costs” means, with respect to the Performing Party, brokerage fees, commissions and other similar third party transaction costs and expenses reasonably incurred by the Performing Party either in terminating any arrangement pursuant to which it has hedged its obligations or entering into new arrangements which replace this Agreement, and all reasonable attorneys’ fees and legal costs incurred by the Performing Party in connection with the termination of this Agreement.
“Gains” means, with respect to the Performing Party, an amount equal to the present value of the economic benefit, if any, (exclusive of Costs) to it resulting from the termination of this Agreement, as determined by the Performing Party in a commercially reasonable manner.
“Losses” means, with respect to the Performing Party, an amount equal to the present value of the economic loss, if any, (exclusive of Costs) to it resulting from the termination of this Agreement, as determined by the Performing Party in a commercially reasonable manner.

7.3 Limitations of Liability. THE PARTIES CONFIRM THAT THE EXPRESS REMEDIES

AND MEASURES OF DAMAGES PROVIDED IN THIS AGREEMENT SATISFY THE ESSENTIAL PURPOSES HEREOF. THE REMEDIES AND MEASURES OF DAMAGES SET FORTH IN THIS ARTICLE 7 ARE THE SOLE AND EXCLUSIVE REMEDIES AVAILABLE TO THE PARTIES HEREUNDER. THE PARTIES CONFIRM AND AGREE

THAT UNDER THIS AGREEMENT, NO PARTY IS REQUIRED TO PAY OR IS LIABLE

FOR SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY, OR

INDIRECT DAMAGES, LOST PROFIT OR BUSINESS INTERRUPTION DAMAGES, BY STATUTE, IN TORT, CONTRACT OR OTHERWISE. TO THE EXTENT ANY

DAMAGES REQUIRED TO BE PAID HEREUNDER ARE LIQUIDATED, THE PARTIES

ACKNOWLEDGE THAT THE DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO

DETERMINE, OTHERWISE OBTAINING AN ADEQUATE REMEDY IS

INCONVENIENT AND THE LIQUIDATED DAMAGES CONSTITUTE A REASONABLE APPROXIMATION OF THE HARM OR LOSS.

7.4 Adequate Assurance. Should either Party have reasonable grounds to believe that the creditworthiness of the other Party has become unsatisfactory or the ability of the other Party to perform its obligations under this Agreement has become impaired, then the dissatisfied Party (the “Requesting Party”) may demand that the other Party (the “Posting Party”) provide assurance of its ability to perform its obligations hereunder in an amount determined by the Requesting Party in its commercially reasonable discretion. Such assurance may include (i) Agenda Item 8.
posting of a letter of credit in favor of the Requesting Party by an issuing bank and in a form reasonably acceptable to the Requesting Party, (ii) posting of cash collateral with the Requesting Party, or (iii) providing other security reasonably acceptable to the Requesting Party. The Posting Party shall provide such assurance within two Business Days following demand by the Requesting Party.

7.5 Waiver of Immunity. Each Party waives, to the fullest extent permitted by applicable law, with respect to itself and its revenues and assets (irrespective of their use or intended use), all immunity on the grounds of sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief by way of injunction or order for specific performance or recovery of property, (iv) attachment of its assets (whether before or after judgment) and (v) execution or enforcement of any judgment to which it or its revenues or assets might otherwise be entitled in any suit, action, or proceedings relating to any dispute arising out of or in connection with this Agreement.

7.6 Survival; Term. This Article 7 survives termination of this Agreement. This Agreement is effective as of the date first above written and remains effective until the Delivery of the Contract Carbon Allowances and Seller’s receipt of the Contract Price, or upon the termination of this Agreement pursuant to Article 7, except that, as set forth herein, certain terms remain effective after termination.

ARTICLE 8

NOTICES
Methods. All notices, invoices, other formal communications which either Party may give to the other under or in connection with this Agreement must be in writing and sent by any of the following methods: hand delivery; reputable overnight courier; certified mail, return receipt requested; or, with respect to communications other than payments, by facsimile transmission. The communications must be sent to the following addresses, and are effective when received:

If to MEA:

Mercuria Energy America, LLC.
20 East Greenway Plaza
Suite 650
Houston, TX 77046
Attn: Adam Raphaely
Email: [email protected]
Phone: (203) 542-1426
Confirmations:

Attn: Physical Confirmations
Email: [email protected]
Phone: 832-209-2495
Invoices:

Attn: Settlements
Email: [email protected]
Phone: (832) 209-2494
If to City of Needles:

Attn:

Agenda Item 8.

Phone:

Invoices:

Attn:

Phone:

Email:

ARTICLE 9

GENERAL PROVISIONS

9.1 Entire Agreement and Amendments. The terms of this Agreement constitute the entire agreement between the Parties with respect to the matters set forth herein and may be changed only by written agreement executed by the Parties.

9.2 No Waiver. No waiver by either Party of any one or more defaults by the other Party in the performance of any of the provisions of this Agreement operates or is to be construed as a waiver of any other default or defaults whether of a like kind or different nature. Any delay, short of the maximum statutory period of limitation, in asserting or enforcing any right under this Agreement is not deemed a waiver of such right.

9.3 Waiver of Immunity. Each Party waives, to the fullest extent permitted by applicable law, with respect to itself and its revenues and assets (irrespective of their use or intended use), all immunity on the grounds of sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief by way of injunction or order for specific performance or recovery of property, (iv) attachment of its assets (whether before or after judgment) and (v) execution or enforcement of any judgment to which it or its revenues or assets might otherwise be entitled in any suit, action, or proceedings relating to any dispute arising out of or in connection with this Agreement.

9.4 Confidentiality.
(a) Except as provided in this Section 9.4, neither Party is permitted to publish, disclose, or otherwise divulge Confidential Information to any person at any time during or after the term of this Agreement, without the other Party’s prior express written consent. Each Party may permit knowledge of and access to Confidential Information only to those of its Affiliates and its and their members, directors, managers, officers, attorneys, accountants, representatives, agents and employees that have a need to know related to this Agreement and agree to keep such information confidential. (b) Notwithstanding the foregoing, if required by any law, statute, ordinance, decision, order or regulation passed, adopted, issued or promulgated, or if requested by a court, governmental agency or authority having jurisdiction over a Party, that Party may release Confidential Information, or a portion thereof, to the court, governmental agency or authority, as required or requested, provided that, if practicable, such Party has notified the other Party of the required disclosure, such that the other Party may attempt (if such Party so chooses) to cause that court, governmental agency, or authority to treat such information in a confidential manner and to prevent such information from being disclosed or otherwise becoming part of the public domain.
(c) For purposes of this Agreement, “Confidential Information” means all oral and written information exchanged between the Parties relative to the subject matter of this Agreement, including but not limited to the price, and all other material terms hereof. Notwithstanding the foregoing, the following does not constitute Confidential Information: (i) information which was already in a Party’s possession on a nonconfidential basis prior to its receipt from the other Party; (ii) information which is obtained from a third person who, insofar as is known to the Party, is not prohibited from transmitting the information to the Party by an obligation of confidentiality to the other Party; (iii) information which is or becomes publicly available through no fault of the Party; and (iv) information which is at any time independently developed by employees or consultants of a Party who have not had access to Confidential Information in the possession of that Party.

Agenda Item 8.
(d) This Section 9.4 survives for a period of one year following the termination of this Agreement.

9.5 Governing Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the principles of conflict of laws thereof, and jurisdiction for any dispute, proceeding or action instituted, initiated or arising under or out of the terms of this Agreement shall be proper in the Federal district courts located in the Borough of Manhattan, City of New York, State of New York. Each Party waives, to the fullest extent provided by applicable law, the right to a trial by jury in any dispute, proceeding or action instituted, initiated or arising under or out of this Agreement.

9.6 Regulatory Change. After the effective date and during the term of this Agreement, if any statute, rule, regulation, permit or authorization is enacted, amended, granted or revoked (including a final order of a court having jurisdiction) which has the effect of: (i) materially changing the ability of Seller to Deliver Contract CCIs to Buyer so that implementation of a transaction under this Agreement becomes illegal or impossible; or (ii) repealing the Applicable Law in its entirety so that the implementation of a transaction becomes impossible or impracticable; then, each such effect identified in clauses (i) and (ii) shall be considered a regulatory change (each a “Regulatory Change”). If a Regulatory Change occurs, the Parties shall for a period not to exceed thirty (30) calendar days meet, confer, and seek, in good faith, to amend this Agreement and/or the transaction(s) affected by such Regulatory Change to allow each Party to retain its respective benefits hereunder. If the Parties are unable to reach agreement on such an amendment, either Party may terminate the affected transactions upon written notice to the other Party. Neither Party shall take direct action to precipitate a Regulatory Change; provided, however, that a Party’s membership in any trade association that may advocate legislation or regulations, or repeal or amendment thereof, from time to time shall not be deemed a breach of this covenant. If a transaction affected by the Regulatory Change is terminated as set forth in this Section 9.6 there shall be no further payment or performance obligation with respect to such terminated transaction except for such obligations that accrued prior to such termination.

9.7 Recording. Each Party may electronically record all telephone conversations with respect to this Agreement between their respective employees of the Parties, without any special or further notice to the other Party. Each Party shall obtain any necessary consent of its agents and employees to such recording. The Parties may not contest the validity or enforceability of telephonic recordings entered into in accordance with the requirements of this Agreement. However, nothing herein shall be construed as a waiver of any objection to the admissibility of such evidence.

9.8 Headings. The Article and Section titles in this Agreement are only for purposes of convenience and do not form a part of this Agreement and will not be taken to qualify, explain or affect any provision thereof.

9.9 Assignment. Neither Party may assign this Agreement or its rights hereunder without the prior written consent of the other Party, which consent may not be unreasonable withheld, conditioned, or delayed; provided, however, either Party may, without the consent of the other Party (and without relieving itself from liability hereunder), (i) transfer, sell, pledge, encumber or assign this Agreement or the accounts, revenues or proceeds hereof in connection with any financing or other financial arrangements, (ii) transfer or assign this Agreement to an Affiliate of such Party which Affiliate’s creditworthiness is equal to or higher than that of such Party, or (iii) transfer or assign this Agreement to any person or entity succeeding to all or substantially all of the assets whose creditworthiness is equal to or higher than that of such Party; provided, however, that in each case, any such assignee agrees in writing to be bound by the terms and conditions hereof and so long as the transferring Party delivers such tax and enforceability assurance as the non-transferring Party may reasonably request.

9.10 Counterparts. This Agreement may be executed in one or more counterparts and by different Parties in separate counterparts, each of which will be deemed an original, but all of which will together constitute one instrument.

The delivery of an executed counterpart to this Agreement by electronic means, including via email, is effective as the delivery of a manually executed counterpart.

9.11 Compliance with Laws and Regulations.

Notwithstanding anything to the contrary herein, nothing in this Agreement is intended, and nothing herein should be interpreted or construed, to induce require or facilitate either Party hereto to act in any manner Agenda Item 8.
(including failing to take any actions in connection with a transaction) which is inconsistent with, penalized or prohibited by (i) such international sanction laws issued by the United Nations, Switzerland, the European Union, the United States of America or any other jurisdiction that may be applicable to that Party and/or (ii) any laws relating to human rights , labor (including child labor), money laundering, tax compliance, bribery, antislavery, trade controls, export controls, embargoes or international boycotts of any type applicable to that Party (together “the applicable Laws and Regulations”).

In addition each Party hereby also represents, warrants, and covenants that, with respect to any activities undertaken in connection with this Agreement or transactions contemplated hereunder, it has not violated or failed, and will not violate or fail, to comply with or give disclosure lawfully ordered under any of the applicable Laws and Regulations and that all activities undertaken in connection with this Agreement can be fully performed (including making and receiving payment) without violating any of the applicable Laws and Regulations.

Each Party represents that neither it nor any of its affiliates is an individual or entity (or is owned or controlled by or acting for or on behalf of an individual or entity) with whom transactions of the kind envisaged by this Agreement are currently prohibited or restricted under the applicable Laws and Regulations, including by reason of being included on any list of restricted entities, persons or organizations published by the United States of America government, the Swiss State Secretariat for Economic Affairs, the United Nations or the European Union or any member state of the European Union (a "Sanctioned Entity").

If a Party breaches any of its obligations under this provision or if it or any of its affiliates becomes a Sanctioned Entity, the other Party shall have the right of unilateral full or partial termination or suspension of this Agreement or any transactions entered into hereunder by written notice to such other Party and no liability will be applied to the terminating Party for such early termination and/or suspension of this Agreement. The Party in breach of its obligations shall be liable for any losses and damages suffered by the terminating Party as a result thereof.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement for the Purchase and Sale of California Carbon Allowance, to be duly executed and delivered by their duly authorized officers or individuals, as of the day and year first above written.

MERCURIA ENERGY AMERICA, LLC
By:

Name: Kemyia Austin
Title: Confirmations, Margining, Trade
Support Manager
Date: _10/30/2025___ _________________

CITY OF NEEDLES
By:

Name:

Title:

Date: ________________________________
Rainie Torrance
Utility Manager
10/30/2025
Agenda Item 8.

Agenda Item 8.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: December 9, 2025
Title: Approve Change Order No.1 (Final) with Shipley Construction for the Purchase & Install Metal Building Project and Authorize Issuance of the Notice of Completion for the Work
Background: On March 25, 2025, the Purchase & Install Metal Building project was awarded to Shipley Construction for an amount of $585,697 plus 15% contingency of $87,855 for a total project cost of $673,552.

During construction, additional concrete work, plumbing and fencing was added to the original scope of work to provide for a future restroom inside the new facility and to meet San Bernardino County Fire requirements.

The construction contingency of $87,855 that was previously approved on March 25, 2025, was utilized to cover these costs with a remaining amount of $3,355.95 to be funded by Capital Electric funds.

Fiscal Impact: Change Order No. 1 (final) to be funded by Project Contingency of $87,855 and $3,355.94 from FY 2026 budgeted Capital Electric funds
Recommendation: Approve Change Order No. 1 (Final) for the Purchase & Install Metal Building Project increasing the contract with Shipley Construction by $91,210.94 for total contract amount of $676,907.94; and authorize staff to execute said Change Order and issue the Notice of Completion for the work.

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

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

CITY OF NEEDLES

C H A N G E O R D E R
PROJECT: Purchase & Install Metal Building ORDER NO: 1 (Final) OWNER: City of Needles CONTRACTOR: Shipley Construction FOLLOWING CHANGES ARE MADE TO THE CONTRACT:

Description of Changes Decrease Contract Price Increase Contract Price 1) Survey -$ 2,750
2) Additional Concrete (Fire Requirement) $ 70,545.30
3) Rought Plumbing (Future Restroom) 8,800.00
4) Additional Site Work - Concrete & Fencing $ 14,615.64 JUSTIFICATION:

Final quantity adjustments during construction are reflected in this change order and funded with project contingency of $87,855.00 and $3,355.94 from the NPUA Capital Electric funds.

Original Contract Price $ 585,697.00
Previous Change Order(s) Amount $0.00
Original Contract Price plus previous Change Orders $ 585,697.00 Contract Price Due This Change Order $ 91,210.94
New Contract Price $ 676,907.94

CHANGE IN CONTRACT TIME
Contract Time will be
(Increased)
Adjusted Date for
Completion of all Work Calendar Days
N/A

APPROVALS REQUIRED
Requested by:

Signature (Project Manager)
Date: 12/03/25
Contractor Acceptance:

Signature (Contractor)
Date:

Approved by: Date: 12/09/2025
Signature (City Manager) CC meeting

C H A N G E O R D E R
12/03/2025
Agenda Item 9.

RECORDING REQUESTED BY:

City of Needles
817 Third Street
Needles, CA 92363
AND WHEN RECORDED MAIL TO:

City of Needles
817 Third Street
Needles, CA 92363
No fee per Govt. Code § 27383 ~ SPACE ABOVE FOR RECORDER’S USE ONLY ~

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:

The undersigned is OWNER or AGENT OF THE OWNER of the interest or estate stated below in the property hereinafter described.

The full NAME of the OWNER is CITY OF NEEDLES
The ADDRESS of the OWNER is 817 THIRD STREET, NEEDLES, CA 92363 The NATURE OF THE INTEREST or estate of the undersigned is In FEE Street Address / APN (if applicable)
The full name(s) and address(es) of all persons, if any, who hold such interest or estate with the undersigned as joint tenants or as tenants in common are:

Contractor’s Name Contractor’s Address:

I, am the
(Name of below signor) (Owner, President, Authorized Agent, Partner, etc.) the declarant of the foregoing Notice of Completion. I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Notice of Completion 03-17-2023
The property on which said work of improvement was completed is in the City of Needles, County of San Bernardino, State of California, and was approved by the Needles City Council by minute action at the meeting and is DESCRIBED AS FOLLOWS:

Improvement on the property hereinafter described and COMPLETED on Improvements described as
Date: Signature:

Patrick J. Martinez, City Manager, City of Needles
Patrick J. Martinez City Manager
12/10/2025
Purchase and Construction 60' x 120' Metal Storage Building for Electric Department Equipment. 11/30/2025
Shipley Construction and Plumbing 5075 Redding, Yucca Valley, CA 92284 711 CALIFORNIA AVE /
12/09/2025
Agenda Item 9.

City of Needles, California
Request for City Council Action
[8J CITY COUNCIL □ NPUA
Meeting Date: DECEMBER 09, 2025
Title: Warrants
Background: n/a
Fiscal Impact: See attached Warrant Registers
Environmental Impact: n/a
[8J Regular D Special
Recommended Action: Approve the Warrant Registers through December 09, 2025.

Submitted By: Jill Taura, Interim Director of Finance
City Manager Approval: M--� Date: 17-Z-Z,01,._s
Other Department Approval (when required)
: _______ _ Date: ____ _
Agenda Item 10.

Agenda Item 10.

City of Needles, California
Request for City Council Action
iz:;J CITY COUNCIL O NPUA
Meeting Date: NOVEMBER 25, 2025
Title: Warrants
Background: n/a
Fiscal Impact: See attached Warrant Registers
Environmental Impact: n/a
lz:;] Regular O Special
Recommended Action: Approve the Warrant Registers through November 25, 2025.

Submitted By: Jill Taura, Interim Director of Finance
City Manager Approval: � ½/
Other Department Approval (when req£)
: _______ _
Date: /2-z-zozs
Date: ____ _
Agenda Item 10.

Agenda Item 10.

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, NOVEMBER 12, 2025 - COUNCIL EXECUTIVE SESSION – 5:00 PM - CITY COUNCIL MEETING – 6:00 PM CALL TO ORDER - Mayor Jernigan called the meeting to order at 5:00 pm

ROLL CALL

PRESENT
Council Member Larry Ford
Council Member McCorkle
Vice Mayor Ellen Campbell arrived at 5:05 PM
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Tona Belt arrived at 5:03 PM
Council Member Henry Longbrake
ABSENT
None
Also present were City Manager Patrick Martinez, Deputy City Attorney Lena Wade, Utilities Manager Rainie Torrance, Director of Development Services/Capital Projects Kathy Raasch, City Planner Irene Romero, Community Services Manager Cheryl Sallis, and City Clerk Candace Clark.

PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION - None RECESSED TO EXECUTIVE SESSION - 5:03 PM

EXECUTIVE SESSION
a. Conference with Legal Counsel – Anticipated Litigation (Gov’t Code § 54956.9(d)(4)) In re: 419 D Street, Needles, CA.

A settlement agreement was approved by unanimous vote.
b. Conference with legal counsel regarding existing litigation pursuant to Government Code 54956.9(d)(1) City of Needles, Terry Reed, et al., Superior Court of the County of San Bernardino, Case No. CIVSB2316434
No reportable action
CALL TO ORDER - Mayor Jernigan called the meeting to order at 6:00 pm

ROLL CALL

PRESENT
Vice Mayor Ellen Campbell
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Tona Belt
Council Member Henry Longbrake
Council Member Larry Ford
Council Member McCorkle
ABSENT
None
EXECUTIVE SESSION REPORT – Deputy City Attorney Lena Wade gave report as noted above.

PLEDGE OF ALLEGIANCE - led by Mayor Jernigan
INVOCATION - given by Vice Mayor Campbell

APPROVAL OF AGENDA
Mayor Jernigan announced that Item 9 would be pushed to the end of the meeting (after item 12) and asked for a motion to approve the agenda as amended. Agenda Item 11.

Vice Mayor Campbell made a motion, second by Council Member Pogue, to approve the agenda as amended.

Motion carried by the following roll call vote:

Ayes: Council Member 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 City Manager Rick Daniels and former Utility Board Members Mike Schneider and Phil LeJeune in attendance.

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

PUBLIC APPEARANCE
Ruth Musser-Lopez asked City Staff to look into the house on D Street that has a porta-potty in the front yard, stating it is a nuisance and a health hazard.

PRESENTATION

1. Mayor Jernigan Presented plaques to Stephen Moffitt and Phillip LeJeune for years of service on the Board of Public Utilities
Rick Daniels, Terry Campbell, Mike Schneider, and Tona Belt expressed appreciation for their dedication and commitment to the betterment of the City of Needles.

2. Presentation given by Christian Schafer: Truck Parking at Ice Plant Road and Highway 95.

Ruth Musser-Lopez stated that Highway 95 is under the jurisdiction of the California Highway Patrol.

City Manager Martinez provided some background information on the City’s ongoing collaboration and efforts with the San Bernardino County Sheriff’s Department and City Code Enforcement.

Council members commented.

Council Member Belt left the meeting at 6:37 pm.

The special joint meeting of the Board of Public Utilities and Needles Public Utility Authority (NPUA) / City Council held on the 12th day of November 2025, was called to order at 6:38 p.m. with CHAIRMAN TERRY CAMPBELL presiding and the following COMMISSIONERS present:

Commissioners Jones, Walters, Brown, McNeil, Cairns, and Powell NPUA/City Council: Mayor Jernigan, Members Ford, McCorkle, Campbell, Pogue, and Longbrake.

Also Present: City Manager Martinez, Utility Manager Torrance, Board Secretary Sallis, City Clerk Clark, and Deputy City Attorney Wade
PUBLIC HEARINGS – WATER AND WASTEWATER RATE INCREASES

3. Board of Public Utilities / NPUA / Council: Public hearing noticed to consider all evidence and testimony for or against a proposed increase in water rates for water services Staff Report – Utility Manager Torrance provided a PowerPoint presentation on the utility services provided by the city including electric, water and wastewater. She noted that three community meetings were held on the proposed rate increases for water and wastewater and there was one resident at one hearing and two residents at another. The proposed rate increases include a 3% increase in water and 6% in wastewater each year for the next five years with the last increase October 1, 2029.

Board / NPUA / Council questions of staff - None
Mayor Jernigan opened the public hearing at 6:49 p.m.

Public Comment
Agenda Item 11.

Ruth Musser-Lopez asked that the protests be read into the record and not just announced how many were received. She voiced her objection to the rate increases speaking on city employees increases in salary and benefits, social security for seniors being 2.8% but the utilities increasing more every year and not considering use of cannabis business tax for utilities in the general fund or amortization of capital improvements over 30 years. She asked when rates will go down with no inflation.

Donna Rohr questioned if the rates projected for water overages are increasing and Utility Manager Torrance explained the proposed new rate for the basic service charge and volumetric rate (water used).

Mayor Jernigan closed the public hearing at 6:54 p.m.

City Clerk Clark announced that 15 written protests were received which do not constitute a majority.

Board / NPUA / Council Discussion / Deliberation – None BOARD ACTION: COMMISSIONER McNeil Moved, Seconded By Commissioner Brown, to Waive the Reading and Adopt Resolution No. 11-12-25 BPU establishing and recommending rates for water service effective February 1, 2026; and rescinding all prior resolutions relating to the establishment of water rates subject to adoption of new rates by the City Council and Needles Public Utility Authority. Motion carried by the following roll call vote:

AYES: CHAIRMAN CAMPBELL, COMMISSIONERS JONES, WALTERS, BROWN, McNEIL, CAIRNS AND POWELL
NOES: NONE
ABSENT: NONE
NPUA ACTION: MEMBER McCORKLE MOVED, SECONDED BY MEMBER POGUE, to waive the reading and adopt Resolution No. 11-12-2025-NPUA approving rates for water service effective February 1, 2026, and rescinding all prior resolutions relating to the establishment of water rates. Motion carried by the following roll call vote:

AYES: MEMBERS FORD, McCORKLE, CAMPBELL, JERNIGAN, POGUE, AND LONGBRAKE NOES: NONE
ABSENT: MEMBER BELT
COUNCIL ACTION: COUNCILMEMBER POGUE MOVED, SECONDED BY COUNCILMEMBER McCORKLE, to waive the reading and adopt Resolution No. 2025-47 approving rates for water service effective February 1, 2026, and rescinding all prior resolutions relating to the establishment of water rates. Motion carried by the following roll call vote:

AYES: COUNCILMEMBERS FORD, McCORKLE, CAMPBELL, POGUE, AND LONGBRAKE NOES: NONE
ABSENT: COUNCILMEMBER BELT

4. Board of Public Utilities / NPUA / Council: Public hearing noticed to consider all evidence and testimony for or against a proposed increase in wastewater rates for wastewater services Staff Report – Previously provided
Board / NPUA / Council questions of staff - None
Mayor Jernigan opened public hearing at 6:57 p.m.

Public Comment
Ruth Musser-Lopez noted her objection comments are the same as water. She does not feel it is right to take the inflation rate and then only allow protests. There should be a cap when inflation rates are unreasonable, and it should not be a protest vote but should go on the ballot. People cannot afford to pay and she felt this is wrong.

Mayor Jernigan closed the public hearing at 7:00 p.m.

City Clerk will announce the final number of written protests received under Prop 218 and whether a majority protest exists – As reported during the water rate public hearing increase.

Board / NPUA / Council Discussion / Deliberation - None BOARD ACTION: COMMISSIONER POWELL MOVED, SECONDED BY COMMISSIONER CAIRNS, to waive the reading and adopt Resolution No. 11-12-25-1 BPU establishing and recommending rates for wastewater Agenda Item 11. service effective February 1, 2026; and rescinding all prior resolutions relating to the establishment of wastewater rates subject to adoption of new rates by the City Council and Needles Public Utility Authority.

Motion carried by the following roll call vote:

AYES: CHAIRMAN CAMPBELL, COMMISSIONERS JONES, WALTERS, BROWN, McNEIL, CAIRNS AND POWELL
NOES: NONE
ABSENT: NONE
NPUA ACTION: MEMBER McCORKLE MOVED, SECONDED BY MEMBER POGUE, to waive the reading and adopt Resolution No. 11-12-2025-1-NPUA approving rates for wastewater service effective February 1, 2026, and rescinding all prior resolutions relating to the establishment of water rates. Motion carried by the following roll call vote:

AYES: MEMBERS FORD, McCORKLE, CAMPBELL, JERNIGAN, POGUE, AND LONGBRAKE NOES: NONE
ABSENT: MEMBER BELT
COUNCIL ACTION: COUNCILMEMBER McCORKLE MOVED, SECONDED BY COUNCILMEMBER FORD, to waive the reading and adopt Resolution No. 2025-48 approving rates for wastewater service effective February 1, 2026, and rescinding all prior resolutions relating to the establishment of wastewater rates.

Motion carried by the following roll call vote:

AYES: COUNCILMEMBERS FORD, McCORKLE, CAMPBELL, POGUE, AND LONGBRAKE NOES: NONE
ABSENT: COUNCILMEMBER BELT
City Manager Martinez commended the Board and NPUA/Council for the tough decisions that had to be made to protect the financial stability of the utilities. He also thanked the staff that were involved in the process to get to this action today.

CHAIRMAN CAMPBELL declared the special joint meeting of the Board of Public Utilities and Needles Public Utility Authority (NPUA) / City Council held on the 12th day of November 2025 adjourned at 7:03 p.m.

Council Member Belt rejoined the meeting at 7:03 pm.

5. Public hearing noticed to consider all evidence and testimony for or against Purchasing Ordinance Number 678-AC, Amending Chapter 8, Article II of the Needles Municipal Code (First Read) City Manager Patrick Martinez gave staff report.

Council questions of staff - none
Mayor Jernigan opened the public hearing at 7:15pm
Public Comment - None
Mayor Jernigan closed the public hearing at 7:15pm
Waive full reading and adopt Ordinance Number 678-AC, Amending Chapter 8, Article II of the Needles Municipal Code (First Read)
Vice Mayor Campbell made a motion, second by Council Member Pogue, to Waive full reading and adopt Ordinance Number 678-AC, Amending Chapter 8, Article II of the Needles Municipal Code (First Read)
Motion carried by the following roll call vote:

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

Absent: None
Abstain: None

COUNCIL CONSENT CALENDAR
Item 9 was moved to the end of the meeting, as noted during approval of agenda.

Vice Mayor Campbell made a motion, second by Council Member Belt, to approve Items 6 through 8 on the Consent Calendar.

Motion carried by the following roll call vote: Agenda Item 11.

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

Absent: None
Abstain: None

6. Approved the Warrants Register through November 12, 2025

7. Approved the Minutes of October 28, 2025

8. Accepted and filed the October 2025 Treasurer’s Report.

END OF COUNCIL CONSENT CALENDAR

REGULAR COUNCIL ITEMS

10. Approve Amendment No. 30 to Contract No. 99-376 with the County of San Bernardino amending Schedule A to reflect an MOU increase for certain personnel effective as of October 4, 2025; and Increase appropriations by $172,195 for the Sheriff’s contract and $25,000 for overtime funded with $197,195 of General Fund reserves.

City Manager Patrick Martinez gave staff report.

Council questions of staff - none
Mayor Jernigan opened public comment at 7:19pm
Public Comment – Ruth Musser-Lopez expressed her objection to the increase in the Sheriff’s contract.

Mayor Jernigan closed public comment at 7:20pm
Vice Mayor Campbell made a motion, second by Council Member McCorkle, to Approve Amendment No. 30 to Contract No. 99-376 with the County of San Bernardino amending Schedule A to reflect an MOU increase for certain personnel effective as of October 4, 2025; and Increase appropriations by $172,195 for the Sheriff’s contract and $25,000 for overtime funded with $197,195 of General Fund reserves.

Motion carried by the following roll call vote:

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

Absent: None
Abstain: None

11. Authorize those interested to attend the League of California Cities Mayor and Council Member Academy January 21-23, 2026, in Sacramento, CA.

City Manager Patrick Martinez gave staff report.

Mayor Jernigan and Vice Mayor Campbell expressed an interest in attending.

Public Comment – None
Vice Mayor Campbell made a motion, second by Council Member Ford, to Authorize Mayor Jernigan and Vice Mayor Campbell to attend the League of California Cities Mayor and Council Member Academy January 21-23, 2026, in Sacramento, CA.

Motion carried by the following roll call vote:

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

Absent: None
Abstain: None

12. Provide staff direction to extend the existing 3-ton gross vehicle weight restriction to include San Carlos Street E and Goodwill Street and prepare the necessary ordinance amendment to update the Needles Municipal Code accordingly.

City Manager Patrick Martinez gave staff report.

Council asked questions and considerable discussion ensued.

Public Comment – None
Further Council deliberation ensued.

Vice Mayor Campbell made a motion, second by Council Member Belt, directing staff to move forward with prohibiting 3-ton (commercial semi-truck) vehicle traffic on San Carlos, Monterrey, and Goodwill Agenda Item 11. streets (Zamora Heights area) and look into other areas of the city and explore prohibiting or limiting truck traffic in residential areas, including, but not limited to, Lilly Hill, Bailey Ave., J Street, and Erin Drive.

Motion carried by the following roll call vote:

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

Absent: None
Abstain: None

9. Waive full reading and adopt City Council Resolution 2025-46 of the City Council of the City of Needles approving the Second Amendment to the City Manager Employment Agreement with Patrick Martinez
City Manager Martinez stepped out at 7:44pm
Deputy City Attorney Lena Wade gave staff report.

Considerable Council discussion ensued.

Mayor Jernigan opened public comment at 7:48pm
Nancy Greenwood spoke against the raise, citing other examples of City Manager salaries that are less.

Ruth Musser-Lopez spoke against the raise and asserted that the Union is too involved in City business.

Wayne Colburn expressed concern, stating that the budget was already less than last year, and further asserting that it is not financially in the City’s best interest.

Mayor Jernigan closed public comment at 7:56pm
After further Council deliberation, Vice Mayor Campbell made a motion, second by Council Member Belt, to Waive full reading and adopt City Council Resolution 2025-46 of the City Council of the City of Needles approving the Second Amendment to the City Manager Employment Agreement with Patrick Martinez.

Motion carried by the following roll call vote, with the Mayor voting as a tie breaker:

Ayes: Council Members Ford, Vice Mayor Campbell, Belt, Mayor Jernigan Noes: Council Members McCorkle, Pogue, and Longbrake

Absent: None
Abstain: None
City Manager Martinez rejoined the meeting at 8:02 pm.

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 October 24 and 31, 2025, given by City Manager Patrick Martinez

COUNCIL REQUESTS
Council Member Ford
 Thanked Military Moms for their participation in the Veteran’s Breakfast Council Member McCorkle
 Replied to a public comment, reminding everyone that the Council Members’ monthly stipend is $1; infrastructure is paid for by grants and taxes, and taxes were not previously increased  Thanked City workers for continuing their training
Vice Mayor Campbell
 Thanked Sheriffs’ Department for the Trunk or Treat event  Thanked the public for participating in Council Meetings  Reported on the success of the Farmer’s Market
 Upcoming events – Christmas Parade, Christmas Tree, Angel Trees (1 for Children and 1 for Seniors)  NHS Teacher Danika Willis has a food pantry for kids without access to food  Thanked the Sheriffs Department, noting that they are cruising the streets and their presence is good Council Member Pogue
 Farmers Market success – sourdough bread is awesome Agenda Item 11.  Rite Aid closing prompted City Manager to get cross-border support to fill the gap; asked if this could be done regarding medical care for people who have Medi-Cal and no local access to services (have to travel to Apple Valley, Victorville, etc.)
Council Member Belt
 Volleyball has ended, basketball is starting, and the recreation center needs coaches and sponsors  Thanked Veterans for their service
 Farmers Market – encouraged the public to attend
 Needles Mustangs game on Saturday – Go Mustangs
Council Member Longbrake
 Thanked Council Member Pogue for bringing up the need for cross border collaboration on medical services for Medi-Cal patients
 Cannabis smell all over town – asked staff to address this issue  Carl’s Jr. closing – asked City staff to get the word out  Monster Truck event was rescheduled to end of January – asked City to utilize the digital billboard at K and Needles Highway to advertise local events
 Reported there is a sewer smell at 4th and F street
 Bailey and J Ball Park – gates need to be unlocked to allow dogs in the park Mayor Jernigan
 Reported that Zachery Longacre is working with a local artist on getting information on painting the Electric boxes
 Cal Trans approved signs for the anniversary of Route 66  River Valley Arts – funds for student art
 Fall festival was a success
 Asked City Staff to look into single event city business license exemptions or lower fees for vendors ADJOURNMENT – Mayor Jernigan adjourned the meeting at 8:33 PM ________________________________________ ________________________________________ Mayor Janet Jernigan City Clerk Candace Clark
Agenda Item 11.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: December 9, 2025
Title: November 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 November 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.

In November, no additional investments were made into LAIF. At month-end, the combined LAIF balance for the City, NPUA and Housing Authority remained at $21,919,263. The most recent LAIF rate for the September quarter was 4.34 percent and this rate has been used to estimate the accrued interest for the month of November. However, we do expect a small reduction in the LAIF rate over the current quarter which will be reflected in the December Treasurer’s Report as discussed in the next paragraph.

As the Federal Open Market Committee (the “Fed”) lowers or increases the Fed Funds rate to keep the national economy in balance, a corresponding change is reflected in the LAIF rate (and overall market rates), but usually with a smaller impact due to holdings in the LAIF portfolio that were previously invested in market securities when market conditions were different. At its October Federal Open Market Committee meeting, the Board lowered the Fed Funds Rate by an additional 0.25 percent to a range of 3.75-4.00 percent, based on continuing concern over the weak labor market. That reduction brought the rate to a “neutral” level according to Fed Chairman Jerome Powell. He also indicated there may not be enough data available for an additional reduction in December. Although the Federal government shutdown is over, only the September labor report was released after the government reopened and no October data was collected during the shutdown. The Fed is in a difficult position of balancing inflation, which is still above the target inflation rate of 2 percent, and lowering interest rates any further to spur the labor market, which could cause inflation to spike. Therefore, it is unlikely that the Fed will reduce the rate any further until hard data is available again.

Page 2 ends

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 (MWD) or 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 the 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 November 30 was $12,211,990.

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 upcoming bond payments. These various bond accounts are used simply to receive scheduled bond payments from the NPUA, and then the payments to bondholders are initiated by US Bank; the NPUA does not repay bondholders directly. The total residual cash held by US Bank was unchanged again this month at $188, since the next semi-annual debt service payments are not due again until February 2026.

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: LAIF interest is paid quarterly. Accrued interest on LAIF balances for the month of November was $78,189, compared to $74,340 in October, reflecting a full month of interest on the NPUA and Housing Authority deposits made during the month of October. Interest earned on the balance in the Arrowhead Credit Union money market account, which holds a portion of the City’s Vehicle Replacement Funds, was $28.

Environmental Impact: None.

Recommended Action: Accept and file the November 2025 Treasurer’s Report.

Submitted By: Jill Taura, Interim Finance Director
City Manager Approval: Date:

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

Agenda Item 12.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: December 9, 2025
Title: Adopt Purchasing Ordinance Number 678-AC, Amending Chapter 8, Article II of the Needles Municipal Code (Second Reading)
Background: Purchasing Ordinance 524-AC, adopted in 2006, increased purchasing limits for all materials, supplies, equipment and professional services. Under Ordinance 524-AC, purchases between $5,000 and $14,999 require staff to solicit 3 informal bids and purchases of $15,000 or more require a formal bid.

Purchasing Ordinance 658-AC, adopted in 2023, increased the formal bid limit solely for “utility related” projects, supplies and equipment to $100,000 or more, with no informal bid requirement. However, Ordinance 524-AC still governs non-utility related ordinary purchases for materials, supplies, equipment, and professional services.

In the two decades since Ordinance 524-AC was adopted, the rate of inflation has increased 59.46 percent, effectively eroding the purchasing power of the dollar and requiring bids on what now are standard and ordinary purchases necessary for daily city operations. In today’s dollars, the $5,000 limit for small purchases is only $3,136.

Staff reviewed a number of Purchasing Ordinances from other well-run, small cities in California to determine if higher purchasing limits are in force in cities elsewhere in the state. Staff found that nearly every other city surveyed had higher purchasing limits and most were significantly higher. The table below summarizes the findings:

Although other cities have much higher bid limits, staff recommends the following increases for non-utility related materials, supplies, equipment and professional services. Staff believes these levels are appropriate for the City of Needles at this time.

Proposed Bid Limits:

Small Purchases: <$15,000
Informal Bids: $15,000 to $29,999
Formal Bids: $30,000 or More
Additionally, the Purchasing Ordinance revision proposes increasing the capitalization threshold from $5,000 to $10,000 consistent with the Federal OMB Uniform Guidance (2 CFR Part 200) for federal grants and financial assistance, which was increased to the same threshold on October 1, 2024. The City’s independent auditors agree with this change.

Lastly, the proposed revision cleans up the language and reorganizes this section of the Municipal Code for clarity.

There are no changes proposed to the bid limits for utility-related purchases nor to the limits for non-utility public projects. The Needles Charter requires formal bids for all non-utility public projects greater than $15,000 and changes to the City Charter require voter approval or staff would have proposed raising that threshold as well.

Agenda Item 13.

Fiscal Impact: None. However, the higher bid limits will significantly reduce staff and finance time to procure materials, supplies, equipment, and professional services. Additionally, it will increase operational efficiency across all departments.

Environmental Impact: None.

Recommended Action: Waive full reading and Adopt Purchasing Ordinance Number 678-AC, Amending Chapter 8, Article II of the Needles Municipal Code (Second Reading) Submitted By: Jill Taura, Interim Finance Director
City Manager Approval: Date:

Other Department Approval (when required): Date:
12/4/2025
Agenda Item 13.
1 ORDINANCE NUMBER 678-AC

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA AMENDING AND RESTATING ARTICLE II OF CHAPTER 8 OF THE

CITY OF NEEDLES MUNICIPAL CODE
WHEREAS, the City Council of the City of Needles desires to update its purchasing code limits to reflect reasonable limits reflecting the current costs for goods and services, streamline administrative processes, and align with comparable cities; and
WHEREAS, the purchasing limits have not been increased since 2006, and the cumulative Consumer Price Index (“CPI”) increase from 2006 to 2025 is approximately 59.46%; and WHEREAS, the City Council finds that the current requirement for purchase orders on every item over $5,000 is administratively burdensome and that updating these limits will improve efficiency and expedite payment processes without creating undue risk due to inadequate internal controls; and WHEREAS, the City Council further desires to authorize the City Manager to approve combined change orders on a purchase order up to his/her signature authority, consistent with best practices in other cities; WHEREAS, the City Council has determined that amendments to Article 2 of Chapter 8 of the Needles Municipal Code are necessary and appropriate; and
WHEREAS, the City Council has determined that such amendments are in the best interests of the City and its residents; and
WHEREAS, this ordinance has been introduced and considered by the City Council in accordance with applicable law.

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

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

SECTION 2. CEQA. The City Council finds that the actions contemplated by this Ordinance are exempt from the California Environmental Quality Act (“CEQA”) pursuant to 15061(b)(3), CEQA review is not required because there is no possibility that this Ordinance may have a significant effect upon the environment and the proposed text amendments constitute a minor alteration in a land use limitation under CEQA Guidelines Section 15305, and such a land use limitation is a permissible exercise of the City's zoning powers.

SECTION 3. Severability. The City Council hereby declares that if any provision, section, paragraph, sentence, or word of this Ordinance is rendered or declared to be invalid or unconstitutional by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, such invalidity shall not affect the other provisions, sections, paragraphs, sentences, or words of this Ordinance, and to this end the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance enforced.

SECTION 4. Prosecution of Prior Ordinances. Neither the adoption of this Ordinance nor the repeal of any other ordinance of this City shall in any manner affect the prosecution of any violation of any City ordinance or provision of the City of Needles Municipal Code, committed prior to the effective date hereof, nor be construed as a waiver of any penalty or the penal provisions applicable to any violation thereof.

SECTION 5. Amendment to Needles Municipal Code. Chapter 8, Article II of the Needles Municipal Code is hereby amended and restated in its entirety as set forth in Exhibit “A” attached hereto and incorporated herein by this reference.

SECTION 6. Repeal of Certain Ordinances and Resolution. Ordinances 524-AC and 658-AC and Resolution 2023-13 are hereby repealed.

SECTION 7. Findings. The City Council HEREBY FINDS AND DETERMINES that facts do exist to approve an amendment to the Needles Municipal Code. Agenda Item 13. 2 SECTION 8. Approval. The City Council HEREBY APPROVES Ordinance 678-AC amending and restating Needles Municipal Code Chapter 8, Article II to read as set forth in Exhibit “A”.

SECTION 9. Effective Date. This action shall become final and effective thirty (30) days after this decision by the City Council as provided by the Needles Municipal Code.

SECTION 10. Severability. If any section or provision of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this Ordinance shall remain valid. The City Council hereby declares that it would have adopted this Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation.

SECTION 11. Certification. The City Clerk shall certify the introduction and adoption of this Ordinance.

INTRODUCED AND READ for the first time and ordered posted at a regular meeting of the City Council of the City of Needles, California, held on the 12th day of November 2025, by the following roll call vote:
__________________________________
Janet Jernigan, Mayor
ATTEST: __________________________________
Candace Clark, City Clerk
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 9th day of December 2025.

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
Janet Jernigan, Mayor
ATTEST: __________________________________
Candace Clark, City Clerk
Approved as to form:
_______________________________
Lena Wade, Deputy City Attorney
AYES:

NOES:

ABSENT:

ABSTAIN:

COUNCIL MEMBERS FORD, MCCORKLE, CAMPBELL, POGUE, BELT, LONGBRAKE NONE
NONE
NONE
Agenda Item 13.
3 EXHIBIT “A”

CITY OF NEEDLES MUNICIPAL CODE
CHAPTER 8 FINANCE ARTICLE II PURCHASING
Sec. 8-4. Purchasing system adopted - Purpose of system A purchasing system is hereby adopted which ensures efficient and timely purchasing of supplies, services and equipment for the city. The system is designed to encourage such purchases be made at the lowest possible price, at the appropriate quality level, and with adequate financial controls, authority levels and accountabilities to discourage abuse or misuse of the system and to ensure timely payment of suppliers.

Sec. 8-5. Purchasing officer
The responsibility and authority for the purchases of supplies, services and equipment is hereby vested in the city manager. As the purchasing officer, the city manager shall have authority to:
(a) Purchase or contract for supplies, services and equipment required by the city in accordance with the procedures described in this article, or other rules and regulations as approved by the city council; (b) Establish administrative procedures and policies for the management and operation of the purchasing system which may include the delegation of purchasing responsibilities to other management, departments or individual employees;
(c) Establish quality standards and specification procedures that will ensure the city is purchasing supplies, services and equipment that will meet or exceed the desired performance or expectations, and that such supplies, services and equipment, when received, are inspected and/or tested, as appropriate, to verify such standards and specifications have been delivered by the supplier; (d) Establish supplier selection criteria that considers the "total cost" of supplies, services and equipment, for evaluating a vendor. The criteria may include such items as warranty or guarantees, ability to service after sale, delivery schedules, estimated useful life, parts availability, repair or parts delivery guarantees, training, type of support documentation such as user's manuals, parts lists, training guides, etc.; (e) Develop supplier "partnerships" that may include single-source agreements referred to in Section

8.9(c), when approved by council, for reasonable periods of time. These arrangements shall be based upon either price, enhanced support services, supplier warehousing, guaranteed quantity purchases, technical design and support, training, or similar criteria;
(f) Create written policies, documentation and forms needed for the purchasing system; (g) Obtain full and open competition wherever possible on all purchases; (h) The city manager and finance director shall certify that this purchasing chapter has been followed when submitting the warrants to council for approval.

Sec. 8-6. Centralized purchasing procedure
Supplies, services and equipment purchases shall be completed through a centralized purchasing system to ensure conformity to applicable policies and procedures, accuracy of documentation and consistency with policies and procedures. Exceptions to centralized purchasing can be approved by the city manager, when the item(s) being purchased are necessary to restore a customer(s) utility service(s), or to protect the health, safety or welfare of employees or the public; or when the use of the centralized purchasing system would be detrimental to the best interests of the city. Exception to the use of the centralized purchasing system means that the city manager may authorize any city department to purchase or contract for specified supplies, materials, equipment and services independently of the purchasing department, provided that such purchases or contracts be made in conformity with the procedures set forth in this chapter.

Sec. 8-7. Encumbrance of funds
Except in cases of an emergency or in cases where specific authority has been first obtained from the city council, the city manager shall not issue any purchase order for supplies, services or equipment unless there exists an unencumbered appropriation in the department budget against which such purchase is to be charged. With the exception of salaries and associated expenses and capital items the department may move appropriated funds between accounts in the same department. All departments needing additional appropriation of funds must get city council approval for an amendment to the budget. For accounting purposes, the capitalization threshold will be ten thousand dollars ($10,000.00).

Sec. 8-8. Purchasing procedures
(a) Purchasing procedures shall be developed by the city manager which support the centralized purchasing system, minimize costs, avoid delays and provide adequate controls and financial accountability.

Agenda Item 13.
4 The system shall use purchase orders, except for purchases which may be exempted from this requirement, such pre-approved purchase agreements; and purchases of fifteen-thousand dollars ($15,000.00) or less.

Splitting or separating any purchase or project into smaller purchases or projects to avoid following the requirements in this chapter is prohibited.
(b) The dollar limits established in this Article shall apply to the original contract or purchase as well as to any amendments, modifications or change orders. Individual and cumulative amendments, modifications or change orders shall remain within the city manager’s signature authority for amounts of fifteen thousand dollars ($15,000) or less. Any amendments, modifications or change orders, individually or in the aggregate, of more than fifteen thousand dollars ($15,000) shall be subject to the approval requirements applicable to the higher contract amount as provided in this Article.

Sec. 8-9. Purchasing
(a) Preference to Local Vendors.
(1) "Local vendor" means any individual, limited liability company, partnership or corporation which regularly maintains a place of business and an inventory of merchandise or services for sale within the corporate limits of the city and holds a valid city business license. (2) The city manager may recommend and/or approve the awarding of a purchase to local vendors for supplies, services or equipment when the purchase is being made with an informal bid, even if the local vendor's price is not the lowest. Such awards may only be made when the local vendor can provide the quality and quantity required by the purchase order specifications, and if the difference in price does not exceed five percent(5%).
(3) The city council may approve the awarding of bids or contracts to a local vendor when the purchase is being made with a formal bid, even if the local vendor's price is not the lowest. Such awards may only be made, when the local vendor can provide the quality and quantity required by the purchase order specifications, and if the difference in price does not exceed five percent (5%). (4) The net return of any sales tax to the city shall be utilized as a bid evaluation factor in determining the lowest bid.
(b) Preferred Vendor.
(1) The city manager may identify a preferred vendor for supplies, services and equipment. A preferred vendor shall only be selected when the supplies, services or equipment from the vendor will either minimize spare parts inventory, eliminate equipment operation problems (such as configuration, coordination, downtime), expedite parts or equipment delivery, reduce employee training requirements, reduce customer outages or restoration time, or add significant life to the system. (2) A preferred vendor may be selected only if the above criteria have been met, and the supply, service or equipment price does not exceed five percent (5%) of the low bid or price of like supplies, services, or equipment. Support services and replacement parts for existing systems or equipment are exempt from the five percent (5%) price requirement.
(3) The council may authorize the use of a preferred vendor when the price exceeds five percent (5%) of the low bid or price, when system maintenance and/or operation demands consistency and uniformity. (4) Supplies, services and equipment being purchased from a preferred vendor shall be informally bid annually to establish the low bid or price for the five percent (5%) comparison. (5) Purchases from preferred vendors shall comply with the other applicable provisions of this Article applicable to purchases of supplies, services and equipment. (c) Single-Source Agreements
(1) The city may enter into a "single-source" or "partner" agreement with a vendor for services, supplies and equipment, if the agreement reduces the cost of purchasing or other costs such as inventory warehousing; and/or the agreement provides additional services such as maintenance, training, engineering; and/or the agreement provides other benefits which either reduce costs or increase customer service for the city.
(2) Single-source agreements may only be awarded, upon council approval, and only after a formal contract or bidding procedure has been completed. The contract and bidding procedure must include a published invitation to bid in at least one newspaper of general circulation and on the city’s website. (3) Single-source agreements may be awarded for a period of no longer than three (3) years.

Agenda Item 13.
5 (4) The city manager may develop and implement written purchasing procedures specific to a singlesource agreement, as required by that agreement. (d) Purchases from County, State and Federal Agencies. The city manager is authorized to procure supplies, services, equipment and motor vehicles through direct purchase from county, state or federal agencies when he or she deems it is in the best interest of the city to do so. All purchases from these agencies are exempt from the provisions of subsection (g) of this section, provided that purchases in excess of thirty thousand dollars ($30,000.00) shall require city council approval unless otherwise exempted under this Article.
(e) Bidding Requirements for Public Projects.
(1) Pursuant to Charter Section 1109, purchases for public projects meaning the construction or improvement of public buildings, works, streets, drains, sewers, utilities, parks or playgrounds, or for supplies and materials of such construction or improvement shall not be completed without a formal bid and written contract, when the amount being purchased exceeds fifteen thousand dollars ($15,000.00). (2) Formal Bid Requirements for public projects.
(A) The city manager shall establish a dollar amount in the purchasing procedures of public projects, for the required use of formal bids and contracts. All purchases greater than fifteen thousand dollars ($15,000.00) for public projects shall be by formal bid, unless otherwise authorized by the city council. (B) Purchases requiring the use of formal bid and written contract shall be approved by the city council, and other appropriate review boards or commissions, prior to advertising for proposals. (C) The formal bid procedure shall include criteria for inviting bids, publication of solicitations, bidder security, bid openings, bid rejection, "tie breaker" selection, notification and award of successful bids, performance and other bond requirements, contractor license requirements, recordkeeping, etc. (D) Except as otherwise provided in this article, formal bids shall be awarded by the city council to the lowest responsible and most responsive qualified bidder. The decision of the city council shall be final.

Projects for the extension or development of any public utility operated by the city or for the purchase of supplies or equipment for any such utility are excepted from the requirements of this Article up to the amount of one hundred thousand dollars ($100,000.00).
(f) Bidding requirements for maintenance and general services (1) Informal Bid Requirements for maintenance and general services. (A) The city manager shall establish a maximum dollar amount in the purchasing procedures for purchases which can be made without the use of a formal bid and/or contract. The amount to be authorized in the procedures for such informal bid purchases shall not exceed thirty thousand dollars ($30,000.00), unless authorized by the city council
(B) Purchases that do not exceed the dollar amount, established in the purchasing procedures, may be made without solicitation of sealed proposals or bids. However, when such a purchase exceeds five fifteen thousand dollars ($15,000.00), it shall be made only after three written or verbal bids are obtained for the supplies, services or equipment being purchased.

Agenda Item 13.
6 (C) Informal bid purchases shall be made from the low-cost vendor, unless local preference is being given, (which must be approved by the city manager), or the low-cost vendor cannot supply the quality, quantity or comply with "supplier selection criteria." (D) Informal written or verbal bids or prices for supplies, services or equipment may be used for additional purchases up to twelve months.

(2) Formal Bid Requirements for maintenance and general services. (A) The city manager shall establish a dollar amount in the purchasing procedures, for the required use of formal bids and contracts. All purchases for maintenance and general services greater than thirty thousand dollars ($30,000.00) shall be by formal bid, unless otherwise authorized by the city council. (B) Purchases requiring the use of formal bid and contract shall be approved by the city council, and other appropriate review boards or commissions. (C) The formal bid procedure shall include criteria for inviting bids, publication of solicitations, bidder security, bid openings, bid rejection, "tie breaker" selection, notification and award of successful bids, performance and other bond requirements, contractor license requirements, recordkeeping, etc. (D) Except as otherwise provided in this article, formal bids shall be awarded by the city council to the lowest responsible and most responsive qualified bidder. The decision of the city council shall be final.

(2) Formal Bid Requirements for materials, supplies and equipment. (A) The city manager shall establish a dollar threshold in the purchasing procedures for the required use of formal bids and contracts. All purchases greater than thirty thousand dollars ($30,000.00) for materials, supplies, and equipment shall be made by formal bid, unless otherwise authorized by the city council.
(B) Purchases requiring the use of formal bid and contract shall be approved by the city council, and other appropriate review boards or commissions, prior to advertising for proposals. (C) The formal bid procedure shall include criteria for inviting bids, publication of solicitations, bidder security, bid openings, bid rejection, "tie breaker" selection, notification and award of successful bids, performance and other bond requirements, contractor license requirements, recordkeeping, etc. (D) Except as otherwise provided in this article, formal bids shall be awarded by the city council to the lowest responsible and most responsive qualified bidder. The decision of the city council shall be final.

For purposes of this chapter, "lowest responsible and most responsive qualified bidder" means that bidder which best responds in price, quality, service, fitness, or capacity to the particular requirements of the city as determined by the city council. Price alone shall not be the determining factor but shall be considered along Agenda Item 13.
7 with the other factors including, but not limited to, the ability of the bidder to deliver, availability of parts or service, prior experience with the bidder, and other factors relating to the particular needs of the city for the materials, supplies, equipment or services to be purchased. (h) Emergency Purchases. The purchase of emergency supplies and/or equipment may be exempted from the requirements of chapter 8, article 2, including the requirement for formal or informal bid process, if the city manager determines that an emergency exists such that the purchase of such supplies and/or equipment must be made immediately to prevent or remedy a disruption of service, damage to the utility systems or other property, or injury to personnel or other persons. In such emergency situations, the city manager is authorized to purchase supplies and/or equipment in an amount not to exceed one hundred thousand dollars ($100,000.00) without prior council approval. The city manager shall immediately notify each member of the city council of the intent to make any emergency purchase. For purchases in excess of twenty-five thousand dollars ($25,000.00), the city manager shall wait, if feasible, to make the emergency purchase until forty-eight hours after notification of the city council members to allow the city council the opportunity to call a special meeting to consider the purchase. In any case, the city manager shall report all emergency purchases at the next meeting of the city council. (i) Exceptions to Bid Policy. Bidding shall not be required under the following conditions:
(1) When the amount of the purchase is not more than fifteen thousand dollars ($15,000.00); (2) When deemed to be of urgent necessity for the preservation of life, health or property; (3) When the purchase can be obtained from only one vendor and no equivalents or alternatives exist; (4) When the city council deems specific purchases as specialized and require specific technical knowledge or licenses, certification or other similar accreditation to complete the purchase; (5) When the council approves services for consulting or other similar support services and the award is based on professional qualification, experience or other such criteria; (6) When purchases are being made through the state's cooperative purchasing program; (7) When item(s) are purchased for resale;
(8) When item(s) fall under the demand order system
(9) Pursuant to section 1109 of the Charter, projects for the extension or development of any public utility operated by the City or for the purchase of supplies or equipment for any such utility may be excepted from the requirements of the purchasing procedures adopted by the City, provided the City Council so determines by at least five affirmative votes.
(j) Demand Order System. The purpose of the demand order system is to accommodate those expenditures that are not amenable to the city’s purchase order system, such as subscriptions, membership dues, conference/seminar registrations, travel expenses, books, and similar expenditures where payment is required to accompany the order. In addition, the demand system may be used to request payment for purchases of supplies or services of fifteen thousand dollars ($15,000.00) or less for which the vendor does not require a purchase order.

Sec. 8-10. Disposal of surplus supplies and equipment
(a) All departments and agencies shall submit to the city manager, upon request, reports listing all supplies and equipment which are no longer used or which have become obsolete or worn out. The city manager shall have authority to exchange or trade in these items for new supplies and equipment. (b) The city manager, with permission of the city council, may authorize the sale of any supplies or equipment which are no longer usable or which have become obsolete or worn out, to the public by sale either through public auction, or through a surplus sales site accessible to the public. (c) Surplus Sale Site. The city manager may sell excess or obsolete supplies and equipment at a surplus sale site(s) accessible to the public, if it is determined that such a sale may generate a better revenue for the city than an auction. The city manager, with permission of the city council, may designate all supplies and equipment of a general category or type be sold at such sales sites. Prices shall be established by the city manager and will reflect approximate resale market value of the item, without discouraging purchase.

Discounts to large quantity purchasers may be given by the city manager, if such discounts would be available to the purchaser in a retail/wholesale market environment. (d) Public Auction. The city manager may auction the supplies and equipment either through written or active competitive bid sale. Any individual, association or entity may bid at such a sale, including employees Agenda Item 13.
8 of the city. Notice of public sale shall be published in a newspaper having general circulation in the city at least thirty days, but not more than sixty days prior to the sale. The notice of public sale shall include the date of the sale, location of the sale and any bidder security requirements. (1) Active Competitive Bid. The supplies and equipment shall be sold by an auctioneer selected by the city manager. The cost of an auctioneer, if any, shall be paid from the proceeds of the auction. The supplies or equipment shall be sold on the date of the sale to the person, association or entity submitting the highest bid. The highest bidder shall pay for the item at the completion of the bidding, or may deposit ten percent (10%) of the bid and make arrangements for payment of the balance at the time of pick up, if such deposit is approved by the city manager. All items purchased must be removed from the sale premises upon the published removal date. If the highest bidder fails to fulfill his bid, or fails to pick up the items purchased upon the removal date, then the next highest bidder, with permission of the city manager, shall have the option of purchasing the supplies or equipment for the amount of his bid. If the next highest bidder does not desire to purchase the items, then the supplies and equipment may be disposed of as scrap, salvage or other, with permission of the city manager. If bidder security has been required, the city manager shall retain such security from the highest bidder upon default. All other bidders' security deposits shall be returned. (2) Written Competitive Bid. The supplies or equipment shall be sold on the date of the sale to the person, association or entity submitting the highest written bid. A written notice of award shall be given to the highest bidder within ten days from the date of the sale. If the highest bidder fails to fulfill his bid within ten days from the date of mailing of the notice of award, then the next highest bidder, with the permission of the city manager, shall have the option of purchasing the supplies or equipment for the amount of this submitted bid. If bidder security has been required, the city manager shall retain such security from the highest bidder upon default. All other bidders' security deposit shall be returned.

All items purchased must be removed from the sale premises upon the published removal date. If the highest bidder fails to pick up the items purchased upon the removal date, then the next highest bidder, with permission of the city manager, shall have the option of purchasing the supplies or equipment for the amount of his bid. If the next highest bidder does not desire to purchase the items, then the supplies and equipment may be disposed of as scrap, salvage or other, with permission of the city manager. If bidder security has been required, the city manager shall retain such security from the highest bidder upon default. All other bidders' security deposits shall be returned.

Footnote 3: For state law as to purchasing of supplies and equipment by cities, see Government Code Sections 54201 to 54205. For charter provisions as to purchasing of supplies, etc., by city manager, see Charter Section 525. See also Charter Sections 1107, 1115.

Agenda Item 13.

City of Needles, California
Request for Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: November 9, 2025
Title: Award a three-year contract to UniFirst Corporation to provide Uniform rental and laundry services from 2025 – 2028
Background: In 2018, the City Council awarded a three-year contract to UniFirst Corporation for uniform rental and laundry services. The City has continued to use UniFirst since the contract expired in 2021. City Staff reached out to Unifirst and requested a pricing change to enter into a three-year contract extension.

Unifirst provides approximately twenty-six (29) employees with furnished uniforms and laundry services.

The following departments receive these services:
• Department of Public Works (5
employees)
• Parks Department (8 employees)
• Wastewater Treatment Plant (4 employees)
• Electric Department (7 employees)
• Water Department (5 employees)
The recreation department receives mops and rugs. In addition, parks, golf maintenance, and mechanics receive rags.

Fiscal Impact: A weekly decrease in uniform cleaning services of $61.49 and annual savings of $3,197.48.

Environmental Impact: None
Recommended Action: Award a three-year contract to UniFirst Corporation to provide Uniform rental and laundry services from 2025 to 2028
Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
12/4/2025
Agenda Item 14.

Agenda Item 14.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: December 9, 2025
Title: Resolution 2025-50 of the City Council of the City of Needles, California Confirming and Adopting an Itemized Statement of Cost for Abatement of Property located at 415 D Street, Needles, CA 92363, also known as APN 0186-142-03-0000 Background: On April 4, 2025, Code Enforcement received numerous complaints from the City Manager, Council Members and Neighbors complaining of abandoned vehicles, household furnishings and miscellaneous trash on the vacant lot at 415 D Street.

On June 30, 2025, at an Administrative Hearing, the Judge declared the property and its contents included, along with all dead vegetation, trash, and debris on the property, a public nuisance.

The City is authorized (a) to seek an abatement order to return the Property to acceptable standards as established in the City's Municipal Code; (b) to clean the property; and/or (c) to seek the appointment of a receiver according to the Health and Safety Code and other applicable law as determined by the City. City may place a lien on the Property, and such lien may, at the option of City, be placed on the tax rolls to be collected by the tax collector or collected in any other means available to City.

Fiscal Impact: The potential City reimbursement in the amount of $11,918.14 Recommended Action: Adopt Resolution 2025-50, Confirming and adopting an itemized statement of cost for abatement of property located at 415 D Street, Needles, CA 92363, also known as APN 0186-142-03-0000, and file said Resolution with the County Recorder placing a lien on the property.

Submitted By: Bernard J. Hatz II , Sr. Code Enforcement Officer City Manager Approval: Date:

Other Department Approval (when required): Date:
12/4/2025
Agenda Item 15.

RESOLUTION 2025-50

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

CONFIRMING AND ADOPTING AN ITEMIZED STATEMENT OF COSTS FOR ABATEMENT OF PROPERTY LOCATED AT 415 D STREET (ASSESSOR’S PARCEL NO. 0186-142-03-0000) WHEREAS, pursuant to City of Needles Municipal Code, property located at 415 D Street (Assessor’s Parcel No. 0186-142-03-0000) was declared to be a threat to life and safety and presented as a public nuisance, due to the fact that the property is in close proximity to an elementary school; and WHEREAS, On April 4, 2025, Code Enforcement received numerous complaints from the City Manager, Council Members and Neighbors complaining of abandoned vehicles, household furnishings and miscellaneous trash on the vacant lot at 415 D Street; and
WHEREAS, On June 30, 2025, an Administrative Hearing was held, and the Judge declared the property and its contents inclusive, along with all dead vegetation, trash, and debris on the property, a public nuisance; and WHEREAS, As a result of said hearing, the City is authorized (a) to seek an abatement order to return the Property to acceptable standards as established in the City's Municipal Code; (b) to clean the property; and/or (c) to seek the appointment of a receiver according to the Health and Safety Code and other applicable law as determined by the City. City may place a lien on the Property, and such lien may, at the option of City, be placed on the tax rolls to be collected by the tax collector or collected in any other means available to City; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Needles California, hereby confirms and adopts the itemized statement in the amount of eleven thousand nine hundred and eighteen dollars and fourteen cents ($11,918.14) for the work performed by the City of Needles. The City Council further resolves that the statement shall be paid by the owner of the premises, beneficiary of any trust deed concerning the premises, or any other party interested in the property; and
BE IT FURTHER RESOLVED, that if the said statement is not paid, said changes shall constitute a lien on the real property upon which the public nuisance was abated and shall be collected as a special assessment against the real property; and
BE IT FURTHER RESOLVED, that the property in this Resolution is located in the City of Needles, State of California, and more particularly described as Assessor’s Parcel No. 0186-142-03-0000, record of San Bernardino County; and BE IT FURTHER RESOLVED, that the Director of Development Services is hereby directed to file with the Assessor and Tax Collector of San Bernardino County, certified copies of this Resolution, and further the Director of Development Services shall record said Resolution with the San Bernardino County Recorder; and BE IT FURTHER RESOLVED, that the Director of Development Services should direct the San Bernardino County Assessor to enter the amount of the charge against the real property described in this Resolution on the current assessment rolls; and
BE IT FURTHER RESOLVED, that the San Bernardino County Tax Collector shall add the amount of the assessment to the next regular tax bill against the property for municipal purposes.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 9th day of December 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 15.

Agenda Item 15.

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Agenda Item 15.

RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:

City of Needles
Director of Code Enforcement
817 Third Street
Needles, California 92363
(Above Space for Recorder's Use Only)
(EXEMPT FROM RECORDING FEES PURSUANT TO GOVERNMENT CODE SECTIONS 6103 AND 27383)

NOTICE OF LIEN
WHEREAS, a duly noticed public hearing was conducted by the City Manager of the City of Needles on the question of whether or not a nuisance in violation of the Needles Municipal Code Section 14-32 existed; and
WHEREAS, it was determined that such violation did exist and such violation was ordered and abated by the City on _______________; and
WHEREAS, the City Council of the City of Needles approved Resolution No. ________ confirming and adopting an itemized Statement of Costs in the amount of $__________ for such abatement.

NOW, THEREFORE be it known that an Abatement Lien exists on the property owned by:
___________________________________________________________, and described as follows:

PROPERTY DESCRIPTION: _________________________________ Also known as, Street Address: _______________________________
Assessor’s Parcel Number: ______________________
The amount of said lien shall be $___________ Plus interest and other costs which may thereafter become due.
_________________________________ ________
3DWULFN0DUWLQH], City Manager Date

STATE OF

COUNTY OF
On before me, ,
(Date) (Name and title of the officer)
Personally appeared _ , who proved to me on the basis
of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to be within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal.

WITNESS my hand and official seal.
, A Notary Public
June 30, 2025
2025-50
11,918.14
MEGNA Rea Estate Management 8740 Winnetka Ave, Northridge, California 91324 RIDDELLS ADD E 140 FT LOT 8 BLK 7
415 D Street Street Needles, CA, 92363
0186-142-03-0000
11,918.14
California
San Bernardino
Bernard J. Hatz II
Agenda Item 15.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: December 9, 2025
Title: Professional Services Agreement with Willdan Financial Services for a Comprehensive Fee Study
Background: Cities are entitled to recover the costs of providing services to city residents where participation in the service is elective and voluntary. These city-provided services include programs such as recreation classes, planning and permit services, and the many other services that the City provides to residents as shown on the Adopted Fee Schedule (attached).

However, under state law, it is not possible for cities to charge more than the cost of providing these services. If individual fee levels recover more than the cost of providing a particular service, the excess recovery is considered a tax, and the excess fees must be refunded to users. Therefore, it is imperative that cities regularly complete Comprehensive User Fee Studies and update fee schedules annually to legally demonstrate that fee levels are limited solely to cost recovery.

The City last completed a Comprehensive Fee Study by an outside consultant at least five years ago.

When the current fee schedule was adopted by Council in July 2025, staff indicated that it was time to complete another Comprehensive Fee Study due to several factors: the length of time since the last study, structural changes in departmental staffing, and the fact that the City’s fees have likely not kept pace with high inflation experienced since the pandemic. At that time, Council was advised the July adjustments were interim and that a full Comprehensive Fee Study would be required this fiscal year to ensure compliance with cost-recovery requirements. Those July adjustments were based on CPI and limited cost factors, not a recalculation of true service delivery costs, which further underscored the need for a comprehensive analysis.

In October 2025, the Finance Department issued an RFP on Planet Bids for a Comprehensive Fee Study.

The City received proposals from three firms: Willdan Financial Services, Matrix Consultant Group, and NBS Financial Consulting Group. All three firms met the mandatory and technical requirements, including scope, desired timeline, and deliverables. Since all firms are highly qualified, Finance recommends that City Council approve the proposal from the low bidder, Willdan Financial Services (Willdan).

Comprehensive fee studies are recommended every 5–7 years. As part of the scope of the project, Willdan will provide City staff an excel-based tool, so that staff can accurately update fees annually for inflation, personnel or staffing changes, other structural staffing changes, and approved MOU increases in the intervening years between full fee studies. This will ensure that Council-mandated fee recovery levels, as codified in the Needles Municipal Code, are met each year without over-recovering the cost of providing these services.

Fiscal Impact: The fixed cost of the contract with Willdan is $34,845 and can be funded from existing appropriations within the Finance Department budget.

Environmental Impact: None.

Recommended Action: Authorize the City Manager to execute a professional services agreement with Willdan Financial Services for a Comprehensive Fee Study.

Submitted By: Jill Taura, Interim Finance Director
City Manager Approval: Date:

Other Department Approval (when required): Date:
12/4/2025
Agenda Item 16.

City of Needles, CA
Comprehensive User Fee Study
Proposal for
Agenda Item 16.

Comprehensive User Fee Study i
City of Needles, CA

1. Title Page
City of Needles
Comprehensive User Fee Study
27368 Via Industria, Suite 200
Temecula, CA 92590
Tel: (800) 755-6864 | Fax: (951) 587-3510
Contact Person
Chris Fisher
Vice President
Email: [email protected] | Tel #: (951) 587-3500
November 19, 2025
Agenda Item 16.

T 951.587.3500 ▪ 800.755.6864 | F 951.587.3510 ▪ 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com ii

2. Transmittal Letter
November 19, 2025
Ms. Jill Taura
Interim Finance Director
Mr. Patrick Martinez
City Manager
City of Needles
8173rd Street
Needles, CA 92363
Re: Technical Proposal to Conduct a Comprehensive User Fee Study for the City of Needles Dear Ms. Taura & Mr. Martinez,
As municipalities throughout California are challenged to do more with less, they must strike a balance between effective use of limited financial resources, addressing competing priorities and objectives, and maintaining high standards of service and responsiveness to their communities. Processes and staffing evolve as staff seek out cost-effective and efficient service models, integrate technological improvements, or modify practices in response to events such as the pandemic.

Considering this, it is critical for the City of Needles (“City”) to ensure that its fees for requested services, are developed and updated utilizing a legally defensible methodology and updated information and data to reflect current processes and staffing, account for the true cost of providing services, confirm a reasonable relationship between the cost of service and the fees, and ensure maximum appropriate cost recovery, so that the revenues generated by fees cover the cost of those services to the greatest extent possible. City staff, and ultimately the City Council, need a clear understanding of standards, service levels and the associated costs. Recognizing this, the City has responded by soliciting proposals for a Comprehensive User Fee Study.

Willdan Financial Services (“Willdan”) is uniquely qualified to assist the City of Needles with this project, following are specific advantages that Willdan brings to the City for this study:

Extensive Local Experience with Similar Projects for Inland Empire and Southern California Cities — Willdan has worked with cities near Needles, and throughout Southern California, on User Fee Study projects with objectives very similar to those for this study. Our unique local knowledge will help us bring valuable perspective and knowledge of other local cities’ approach to fees and their policies on fee setting and subsidies and assist us in conducting meaningful and efficient fee comparisons to Needles. Recent and ongoing studies include the Cities of Barstow, Apple Valley, Fontana, San Jacinto, Murrieta, Norco, Chino, Chino Hills, Eastvale, Ontario, Corona, Claremont, Upland, San Dimas, Diamond Bar, La Verne, Brea, Fullerton, Pomona, and Lake Elsinore.

Collaborative Approach, Proven Results and User-friendly Models and Reports — Willdan prides itself on working closely with City staff to develop an approach that is targeted toward your specific objectives and reality, and then working together with you to gather first-hand information regarding the processes and tasks required to provide services to those requesting them. This is a distinct advantage we will bring in our approach with the City of Needles. A collaborative approach ensures we clearly understand your goals and challenges, and just as importantly, you understand the process and the results.

We create user-friendly Excel-based models that the City can retain and conduct our analysis and develop the model collaboratively with City staff. Rather than using an inflexible proprietary software program, we construct our models from the ground up, mirroring the City’s budget format wherever possible.

Created directly from the models, our reports clearly and graphically illustrate full and recommended levels of cost recovery and projections of revenue for fee programs, break down the costs into direct and indirect overhead categories, and present the fee methodologies.

Our Cost Allocation methodologies and
models have been reviewed and approved
by Cognizant Agencies such as the US
Army and recently, the US Department of
Housing and Urban Development,
providing evidence of our thorough and
defensible approach to the development
of Cost Allocation strategies.

Agenda Item 16.

Ms. Jill Taura, Interim Finance Director
Mr. Patrick Martinez, City Manager
City of Needles
Proposal to Conduct a Comprehensive User Fee Study
November 19, 2025 | Page iii
Our approach is geared toward delivering work on schedule and presenting results at public meetings and council workshops to stakeholders and elected officials who typically do not want or need to see the deep detailed analysis. The Willdan Team is experienced at communicating complex analytical results in a manner that is easy to understand by non-finance-oriented individuals. We have coordinated or participated in numerous public and staff workshops regarding fees and cost of service-based charges.

Unique Combination of Services and Expertise/Public Engagement — Established in 1988, Willdan is a team of over 80 professionals who provide essential financial consulting services throughout California, and the United States. Willdan has provided the requested services to municipal clients for over two decades; and is the only firm providing these types of consulting services that also has a long history of providing contract staff support to public agencies for the delivery of municipal services. This direct experience as “agency staff” provides us with firsthand understanding of City operations and is uniquely useful in determining the full effort associated with service delivery and in developing a fee schedule that is easy to communicate and implement.

We are excited about this opportunity to serve the City of Needles. To discuss any aspect of our proposal, please contact me; my contact information is provided in the table below.

Willdan Financial Services
Primary Contact
Chris Fisher
Vice President / Director
27368 Via Industria, Suite 200 | Temecula, CA 92590
Tel #: (951) 587-3500 | Fax #: (951) 587-3510
Email: [email protected] | www.willdan.com/financial
As a Vice President of Willdan Financial Services, I am authorized to bind the firm to the terms of this proposal, as well as the subsequent agreement.

Respectfully,

WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President / Director
Agenda Item 16.

Comprehensive User Fee Study iv
City of Needles, CA
Table of Contents

1. Title Page.....................................................................................................................................................................i

2. Transmittal Letter...................................................................................................................................................ii

3. Detailed Technical Proposal.............................................................................................................................. 1 Services to be Provided............................................................................................................................................... 1 Project Understanding...................................................................................................................... 1 Methodology...................................................................................................................................... 3 Comprehensive User Fee Study Work Plan .................................................................................... 5 Project Disclaimer........................................................................................................................... 10 Project Schedule ............................................................................................................................. 11 Firms Capacity to Provide Quality Services ....................................................................................................12 Firm Profile ...................................................................................................................................... 12 Fiscal Stability ................................................................................................................................. 13 Project Management and Quality Assurance/Control Approach ................................................. 14 Firm Qualifications ......................................................................................................................................................16 Experience....................................................................................................................................... 16 References....................................................................................................................................... 17 Recent Studies ................................................................................................................................ 19 Project Team.................................................................................................................................... 23 Resumes .......................................................................................................................................... 23 Chris Fisher....................................................................................................................................... 24 Tony Thrasher................................................................................................................................... 25 Priti Patel........................................................................................................................................... 26 Samantha Labitan ............................................................................................................................. 27 Robert Quaid..................................................................................................................................... 28 Proposed Fees/Compensation ...................................................................................Under Separate Cover Agenda Item 16.

Comprehensive User Fee Study 1
City of Needles, CA

3. Detailed Technical Proposal
Services to be Provided
Project Understanding
Willdan Financial Services (“Willdan”) understands that the City of Needles (“City”) is seeking an updated and welldocumented Comprehensive User Fee Study, based on a legally defensible methodology that is compliant with various statutes, that includes a comprehensive cost of services report and updated fee schedule and fully burdened hourly rates for positions included in the analysis.

The City's stated goal is to have a comprehensive citywide cost-based user fee study that will calculate the full (100%) cost of providing certain City services and provide recommended fees to be charged for them; this will include reviewing and updating existing fees and charges for user-requested services, suggesting new fees where reasonable and appropriate, and recommending cost recovery strategies and best practices for establishing user fees that account for the complexities and demands of various departments and activities. The study will result in fees that accurately account for the true cost of providing City services, allow the City to maximize recovery of actual costs, and reflect current practices, processes and staffing.

Given our extensive experience with User Fee Studies and our experience with the City of Needles, we have a clear understanding of the goals, issues and concerns for this project, and more importantly, how to address and overcome them and meet the City’s objectives.

Key City issues and objectives that are addressed within our scope of services include the following:
▪ Meeting with City Staff to review existing fee schedules, conduct interviews and gather information to understand the processes, operations, structure and staffing necessary for the City to provide services for which fees are charged; ▪ Conducting analysis that clearly identifies and establishes the full estimated cost of providing services for which fees are charged, ensuring there is a reasonable relationship between these costs, the services being provided, and the recipients of these services, demonstrating that fees do not exceed the reasonable estimated cost of providing the services, and that the fees bear a fair and reasonable relationship to the demand from the payer – all to support compliance with Prop 26 and Prop 218;
▪ Though this proposed engagement doesn’t include the preparation of a formal Cost Allocation Plan, we will incorporate provision for direct and indirect overhead support services into our analysis to ensure the full cost of service that is calculated includes costs related to overhead support provided to operating functions and departments.

Inclusion of overhead is a key element of any fee study, as it ensures that the full cost of service we calculate, and upon which fee recommendations are based, includes these costs; ▪ Comparing costs of providing services with current cost recovery levels and evaluating and adjusting fees and charges to ensure they align with the cost of the services being provided by the City; ▪ Identifying and evaluating opportunities to develop and implement fees for services being provided for which fees don’t currently exist;
▪ Providing guidance related to best practices and strategies for cost recovery, and working with City Staff to develop meaningful recommendations for fee setting and subsidies where charging full cost recovery fees may not be reasonable for policy or political reasons;
▪ Providing meaningful ‘apples to apples’ comparisons of key fees charged by the City of Needles to other similar and/or nearby cities chosen in discussions between Willdan and City Staff. These comparisons may involve applicable fees for sample representative projects which the City could anticipate encountering; ▪ Providing the City with a model that incorporates data and information used in developing updated fees, and allows for updates for CPI, new added personnel, updated time estimates and volumes, or other factors as necessary; and ▪ Preparing a report that clearly identifies services for which fees are charged, the cost of those services including direct, indirect and overhead costs, current and recommended cost recovery levels, recommended fee amounts with changes and revenue impacts, and presenting the results in a way that is readily understood by decision makers.

The overall goal is to establish an updated schedule of fees that is objective, fair and equitable. We will deliver a straightforward model and report that clearly identifies the full cost of providing services, including overhead, direct and indirect costs; and provide recommendations for setting fees that maximize cost recovery in accordance with the City’s policies.

Agenda Item 16.

Comprehensive User Fee Study 2
City of Needles, CA
The end products will include user-friendly Excel-based models, which City staff will retain, and which can be easily updated to add or remove services and/or costs, update budgets in future years, determine the proper allocation of expenditures, and on-going full cost of services provided by the City. Most importantly, we will ensure that the results and recommendations are clear and understandable, defensible, and easily implementable.

For this fee study, we will meet directly with Department representatives at the City, to discuss the best-suited approach and process; and then in more detail to identify processes and levels of activity and effort involved in providing services for which fees are paid.

Through this process we will identify the full cost recovery amount for each fee related activity, compare this with the City’s current cost recovery levels, and then discuss with staff, policy and/or political concerns that need to be considered in developing recommended fees. Final recommended fees will be the result of these collaborative discussions, so that they reflect realities and considerations that are specific to the City of Needles.

Willdan possesses the resources, practical experience, creative thinking, and collaborative consulting skills necessary to complete this important project. Key distinct advantages that Willdan brings to the City include the following:

On-site Data Gathering
Our experience has taught us that working together, via face-to-face discussions, is the most efficient and thorough way to ensure that results are accurate, and that studies are completed in a timely manner, which again, is critical in this proposed engagement. Consequently, through on-site interviews with your staff, Willdan will collect the majority of required data for the study. This method is better than the typical “time and motion surveys” that are provided to agency staff when studies like these are conducted. This process ensures that we gather the data we need in one coordinated step, rather than having to go through repeated follow-up and clarification. This approach and the dedication of our staff will help ensure we meet the City’s timeline and objectives and provide important information to City Staff and the City Council as soon as possible.

Public Engagement
Our models and project approach are geared toward delivering our work on schedule and presenting our analysis results at public meetings and Council workshops. While we understand that the City Council and local business community may be generally supportive of increasing fees where necessary, it will be important to present recommendations to them in a way that clearly demonstrates the rationale and supporting analysis.

The Willdan Team is experienced at communicating complex analytical results in a manner that is easy to understand by non-finance-oriented individuals and facilitates discussion. Our proposed principal-in-charge and project team for this engagement have coordinated or participated in numerous public and staff workshops regarding fees and cost of servicebased charges. As previously mentioned, our objective is to provide useful, detailed information to the City Council and City Staff, necessary to make important decisions. Our experience ensures that we can meet this objective.

User-friendly Models and Reports
Willdan prides itself on creating user-friendly Excel-based models that the City can retain and conducting our analysis and developing the models collaboratively with City Staff. With City Staff’s immediate input and collaboration, Willdan will design extremely flexible, intuitive Excel-based models. In the future, as the City assumes new responsibilities, modifies existing processes, and/or eliminates unnecessary services or programs, the models will be capable of adding or deleting funds, objects, departments, programs, staff positions, and activities. Willdan understands that issues facing the City are unique; consequently, we design our models to match your immediate and desired needs to ensure that end-results exceed staff expectations.

This model is then the City’s to retain, after our services are completed, and allows for the creation of revenue projections, highlighting potential new revenues, and levels of subsidy.

A key element of these studies is presenting results and recommendations in a straightforward manner, which allows the City Council and staff to confidently make fee setting policy decisions and understand the impacts of those decisions.

Rather than using an inflexible proprietary software program, we construct our models from the ground up, as previously discussed, mirroring the City’s budget format wherever possible.

Rather than costly and inflexible proprietary
software, which can require expensive
licensing fees, Willdan builds models
utilizing Excel, from the ground up,
employing the City’s budget as the gauge.

This model, which is then the City’s to
retain, gives City Staff the control to make
on-the-fly adjustments and updates.

The model will be developed to allow
the City to run “what-if” scenarios to
address potential changes in staffing
levels, working hours, etc.

Agenda Item 16.

Comprehensive User Fee Study 3
City of Needles, CA
As a result, the information contained in our models are easy for City Staff to interpret, and the familiar software ensures ease of navigation. As the models are being designed and constructed, we will work together with City Staff to determine the best and most effective features to include. After the project is completed, we will provide training, so that your staff can independently and efficiently evaluate the effects of changes in certain factors. Created directly from the models, our reports clearly and graphically illustrate bases for the full cost recovery level of fee programs, provide projections of revenue from fee programs, both at full cost recovery and at recommended levels, and present the fee methodologies.

Methodology
Comprehensive User Fee Study Methodology
The following describes our proposed methodology and approach to prepare a Comprehensive User Fee Study.

To comprehensively update fees, the City should develop a fee schedule that accurately accounts for the true cost of providing services. Once the study is complete, the fee study model must be flexible so that the City can add, delete, and revise fees in the future. To meet this goal, we will bring our expertise and unique perspectives to your fee study by approaching the project with these three principles:
1) Defensibility
Our user fee projects have not been legally challenged since the inception of this practice area in our firm. We have accomplished this by closely working with legal counsel familiar with user fee studies, our engineering division and with agency staff. In this way, we can tailor the correct approach to ensure full cost recovery combined with a sound and reasonable basis for each user fee you implement.

We employ principles from Proposition 218 to make certain that your user fee and rate schedule is developed with fairness, equity, and proportionate cost recovery principles in mind. With the addition of Proposition 26, Willdan will review each analyzed user fee for compliance and appropriateness to ensure continued defensibility. 2) Project and Staff Time
The City must have a sound and technically defensible fee schedule to ensure costs are appropriately recovered, as applicants approach the City for its services. Our standards and approaches serve to get to the issues of your fee study quickly. Starting with the project kick-off, we will make certain that your staff understands the purpose and scope of the study and its corresponding on-site departmental interview. As Willdan is able to communicate directly with the service providers, this face-to-face interaction provides valuable time estimates. 3) Responsiveness
We take great pride in providing responsive service to our clients. Frequent communication is critical to a successful user fee study experience. We will provide a list of data requirements in advance of the project kick-off. Due to this simple step, the introductory meeting can focus on the survey input process, answering questions, determining policy goals, and defining next steps in the project. We will follow up weekly with the City at each step in the fee study process to make sure that staff “buys in” to the fee study approach and results.

Approach
Our approach to preparing the user fee study and documentation for the City includes:
▪ Close coordination with your staff to devise a consensus approach. Different programs and/or different service delivery methods will necessitate different approaches. We will discuss specific pros and cons with City Staff as we determine which methods work best for various categories of fees; ▪ Strict adherence to key legal and policy issues with regard to user fees, including the percent of cost recovery that the City seeks to achieve. A user fee shall not be set higher than the reasonable cost of providing a fee-generating service.

Our approach provides you with a fee schedule that achieves maximum legal cost recovery while ensuring that each fee is supported by technically defensible documentation; and ▪ Technical analysis necessary for project participants to resolve policy issues.

Agenda Item 16.

Comprehensive User Fee Study 4
City of Needles, CA
As described below, there are two basic approaches to calculating user fees:

Approach 1: Case Study Method
This is also sometimes referred to as a cost build-up approach. Using a time and materials approach, the “Case Study Method” examines the tasks, steps and City Staff involved in providing a particular ‘unit’ of service, such as a permit review, and then uses that information to develop estimates of the actual labor and material costs associated with providing a unit of service to a single user. It is often used when a service is provided on a regular basis, and staff and other costs associated with the service can be segregated from available budget data.

A typical case study fee model should comprise
the following three general cost layers:
1) Central Services Overhead: This category
may involve such costs as labor, services, and
supplies that benefit more than one department,
division, or project. The exact benefits to specific
areas are impossible to ascribe to a single activity.

Examples are purchasing, human resources, and
liability insurance. As part of the user fee study,
these costs are calculated in the overhead cost
review.
2) Department Overhead: This category may
include expenses related to such items as office
supplies, outside consultants, and membership
dues. It may include management, supervision,
and administrative support that are not provided to
a direct fee-generating service. Typically, these
items are charged, on an item-by-item basis,
directly to the department, division, or project.
3) Personnel Costs: This category refers to direct
salary and benefit costs of staff hours spent on
providing a fee-generating service (e.g., on-site
building inspector).

Approach 2: Average Cost Method
This is also sometimes referred to as a
programmatic approach, because it looks at costs
at a program level, and then allocates them to
participants on an occurrence basis. By taking total
service costs across a substantial sample period
(a year) and dividing by the total number of service
units delivered over that same period, costs per
unit of service is estimated.

This approach is useful when services or programs are provided in a more aggregate manner, where it might be difficult to identify a specific sequence of steps associated with one user or participant; or where it is not feasible to cost-effectively segregate costs associated with specific activities.

Central
Services
Overhead
Departmental
Overhead
Personnel
Costs
Fully -
Burdened
Hourly Rate
Agenda Item 16.

Comprehensive User Fee Study 5
City of Needles, CA
Comprehensive User Fee Study Work Plan
Our proposed work plan, described in detail by task, is provided below. We explain how each task will be accomplished and identify associated meetings and deliverables. We want to ensure our scope provides quality and clarity and is responsive to the City’s needs and specific local circumstances. We will work in concert with the City to adjust the scope as needed during the course of the study.

Task 1: Initial Document Request
Objective: Initial due diligence; and obtain study-related data.

Description: Prior to the kick-off meeting, we will obtain and review relevant documentation to further enhance our understanding of the services, fees, and rates to be studied. A written request for data will be sent to the City. Please note that Time Survey data is not part of this request and will be gathered during the interviews described in Task 5.

We will request information, data sets, documentation on current fees and fee programs, activity levels, and budget and staffing information (to the extent not already available) related specifically to programs and activities which have associated fees, and for which the City has this level of detail.

As this proposed engagement does not include completion of a new or updated Cost Allocation Plan (CAP), we will request data related to existing overhead functions and Cost Allocation policies and methodologies currently used by the City in order to incorporate analysis into the User Fee model that provides for overhead factors and costs to support updated fee recommendations.

Deliverables: Willdan: Submit information request to City.

City: Provide requested data to Willdan (prior to Task 3, Kick-off Meeting/Refine Scope). We will follow up with the City to confirm receipt of requested data and information and highlight data elements that are outstanding.

Task 2: Compile Inventory of Current and Potential Fees/Review Existing Cost Allocation Method Objective: Willdan will identify the schedule of fees and develop the methodology for calculating the fees, review overhead services, factors and allocations in consultation with the City, and obtain updated staffing, salary, and benefit information.

Description: Based on the results of the initial document request and independent research, incorporate into our model the existing fees, provided by the City, to comprise the parameters of the fee study. We will review the existing fee schedule to ensure consistency and that it addresses areas where fees could be charged for services being provided and confer with Staff to identify potential new fees.

We will work with staff to incorporate reasonable indirect overhead factors from the City’s current Cost Allocation Plan, or develop new overhead factors to ensure the costs associated with central service overhead support are included in the full cost of providing services.

Reasonable indirect cost allocation percentages will be used in Task 4 to calculate departmental overhead rates and fully burdened hourly personnel rates. We will gather and review data and supporting analysis as necessary, related to the City’s cost allocation approach. This information will be used to verify or calculate the allocation of indirect service costs to operating departments, and then will be incorporated with staffing, and salary and benefit data to develop a comprehensive schedule of Fully Burdened Hourly Rates (FBHR). These rates will form a basis for the calculation of the costs of providing services to residents and customers, for which fees are charged.

Meetings: It is possible that a conference call with the City may be necessary to discuss new fees to implement or existing fees that may no longer be required.

Deliverables: Willdan: One (1) draft list of current fees based on initial data provided (to be discussed and finalized during the kick-off call).

City: Review completed fee schedules with comments/revisions to be discussed during the kick-off meeting.

Agenda Item 16.

Comprehensive User Fee Study 6
City of Needles, CA
Task 3: Kick-off / Refine Project Requirements, Objectives and Scope Objective: Confirm goals and objectives for the Comprehensive User Fee Study. Identify and discuss policy matters typically raised, address gaps in data, and refine appropriate existing or new fee categories (based on Task 2).

Description: Verify our understanding of the City’s goals, the City’s cost-recovery policy for user fees, and obtain and/or clarify data and information necessary for the project. It is important for the City and Willdan to identify and address any foreseeable problems and maintain open communication throughout the process.

During this discussion, we will ask that the City identify a project manager who will serve as the primary contact for the project. The project manager shall have responsibility for ensuring that all available data is provided in a timely manner, thereby maintaining adherence to the project’s schedule.

Meetings: One (1) project kick-off call/web meeting to initiate the project, discuss data needs, and address policy matters.

Deliverables: Willdan: 1) Revised project scope and schedule (if needed); and 2) brief summary of policy decisions (if needed).

City: 1) Provide further data needs; and 2) determine/introduce City’s project manager.

Task 4: Develop Comprehensive Fee Model/Incorporate Overhead/Develop Overhead Rates & FBHR Objective: Develop and test fee model and incorporate overhead factors.

Description: This task involves the development of the model ultimately used to calculate fees, based on data and information gathered in previous tasks and in the Time Survey Interviews described in Task 5. To ensure that City policies are met through the imposition of the calculated fees, the model will be formatted to include appropriate costs.

We will develop and determine the appropriate indirect cost factors and overhead rates to apply to personnel rates, to develop fully burdened hourly rates per the City’s employee structure. These rates will serve as a basis for calculating the full cost of providing services.

Key model inputs will include staff and allocated overhead costs per position, and relevant budget data on staffing, salaries and benefits. This information will be obtained directly from the City and incorporated directly into the user fee model. We will request clarification and/or additional data if necessary. We will also update, as appropriate, available fee volumes (occurrences) and revenue generation.

The model will provide an allocation of administrative and overhead costs to fee related activities, so that fees and billable rate schedules incorporate applicable costs. Furthermore, the fees and rates charged to customers will also reflect the cost of the services being provided, to the extent possible given policy and/or political considerations.

The model will be able to accommodate updates, additions, and revisions as costs, processes, staffing and the organization change from year to year.

The model will ultimately calculate the full cost of providing services for which fees are charged, based upon information and data provided by the City about the processes and staffing involved with direct service delivery in Task 5, supplemented by overhead percentages calculated in the CAP.

Deliverables: Willdan: One (1) user-friendly model in Microsoft Excel format, which, when finalized, City Staff can use to calculate fee changes annually, or as often as deemed appropriate by the City Council, and a schedule of Fully Burdened Hourly Rates.

Task 5: Time, Process and Effort Interviews and On-site or Virtual Information Gathering Objective: Meet with City Staff to review processes and staffing for fee-based services, and understand service delivery processes.

Description: In order to gather the information and feedback necessary to understand processes, staffing and levels of effort, we will schedule up to one (1) day of meetings with staff; however, the number of meetings needed may vary depending on the number of staff involved.

Agenda Item 16.

Comprehensive User Fee Study 7
City of Needles, CA
The Willdan Team will conduct interviews with managers, as well as other staff, as deemed appropriate and/or necessary, to understand the processes and staffing involved in delivering fee-based City services and determine the average time required by City Staff to provide each of the services. During this process we will identify instances of cross-departmental support and calculate associated costs.

The fee model is designed so that full cost recovery fees are calculated immediately upon input of staff time. These full costs are also compared to current cost recovery levels.

This will allow Willdan and City Staff to conclude with a final meeting to review the draft full cost recovery fees and adjust any times as necessary once all information has been compiled and input into the fee model. We will schedule the interviews with City Staff to minimize any disruption to their normal workflow.

During these meetings, we will discuss potential new fees with City Staff that could be added to the City’s fee schedule(s) for applicable departments. Fee additions may be at the request of Staff during the initial process of creating an inventory of fees to be included in the study in Task 2, those recommended to address legislative and/or policy updates or recommended based on fees we’ve encountered in comparable cities that aren’t currently included on the City’s fee schedules. We will discuss potential fee additions with the City Council during a brief presentation.

Meetings: One (1) business day of meetings/staff interviews. Depending upon circumstances and availability, these meetings may be conducted in person, or via WebEx or Zoom. These tools have proven to be highly effective and efficient, particularly for follow-up questions and/or discussions.

Deliverables: Willdan and City: Time surveys and draft full cost recovery fees.

Task 6: Data Analysis, Calculate Full Cost of Providing Services, Final Fee Schedule Objective: Incorporate information obtained from the meetings in Task 5 to fully develop model and calculate the cost of providing services.

Description: We will update the model, based on information received during the on-site surveys, to generate a comprehensive fee schedule. In addition, it is quite common that a supplemental data request may be necessary, based on new fees identified that the City is not currently collecting.

Where appropriate, we will suggest and discuss with staff alternate approaches to existing fee programs (i.e. deposit vs. straight fee, valuation, etc.) and suggest potential areas where fees could be collected, where they are not currently.

We will present the cost of service and full cost recovery level for fees, both current and projected under the new calculated fees, and revenue projections, given certain assumptions about the levels of subsidy for different fees.

We will begin the discussion of subsidies and fee-setting, and the implementation of policy and political objectives. We will provide guidance based upon our recent experience as to policy factors and approaches used by other similar cities.

Current levels of cost recovery will be compared to actual full costs calculated during the course of this study. Cost will be calculated at reasonable activity levels and include all appropriate direct and indirect costs and overhead. We will review fee programs for compliance with Propositions 218 and 26.

The fee data analysis and model development may take three (3) to five (5) weeks with frequent correspondence with City Staff to discuss current cost recovery amounts, necessary to recover full cost and frequency activity.

Meetings: Web meetings and/or conference calls, as necessary, to gather additional input, complete analysis and finalize fee schedule. Please see the note in Task 5 regarding in-person meetings.

Deliverables: Final user fee model for the City Council presentation and discussion.

Task 7: Common Fees Comparison
Objective: Examine up to five (5) comparable cities/agencies in San Bernardino County, or jurisdictions that are similar in either geography or profile to the City of Needles.

Description: We will access and use our knowledge of other jurisdictions to benchmark all applicable fees for up to five projects as determined by City Staff and Willdan.

Agenda Item 16.

Comprehensive User Fee Study 8
City of Needles, CA
The purpose is to select sample projects (such as a 5-unit residential project or a 10,000 square foot commercial building) that the City may reasonably expect to encounter, and determine the total fee burden, as compared to the other selected cities.

Fee schedules are rarely readily or directly comparable from agency to agency due to definitional and operational differences. For example, a grading permit in one jurisdiction may include the plan check service, while the same permit in another jurisdiction may not, resulting in similar sounding services with widely varying costs.

The survey will contain the following, a comparison of fees and charges used by the City and other jurisdictions for comparable sample projects; current and proposed fees and charges unique to the City of Needles; fees and charges used by other public entities not currently used in the City.

If possible, identify characteristics and processes unique to the City that account for significant variances in fees and charges used by other jurisdictions.

Deliverables: Willdan: Recommendations provided in Task 8 will incorporate the data gathered during our examination.

Task 8: Prepare and Present Draft Results and Report, Conduct Presentations Objective: Prepare and present draft results and report.

Description: This task involves the preparation of the draft report that discusses the study’s background, the methodologies utilized in the study, and the results and presentation to various stakeholder groups. As noted below, meetings may occur during this or the next task as appropriate. The calculations used to generate the user fee study will be included textually, as well as in easy to understand tables. Individual fee summaries and a comprehensive fee schedule will be included as well. The draft report will include the following:
▪ Key results and findings;
▪ Current and recommended fees and charges, changes in fees; ▪ Basic descriptions of each service;
▪ The full cost calculations for each service;
▪ Current and recommended cost recovery levels;
▪ Comparison of the cost of providing services to current and proposed recovery levels and fees; ▪ Costs broken down into indirect, direct and overhead components; ▪ Fee recommendations, associated levels of cost recovery, subsidies, changes from current fees; ▪ Projections of potential fee revenue;
▪ Fee comparisons completed as part of Task 7;
▪ Assessment of reasonableness of each City’s costs; and ▪ Summary and recommendations.

The objective of the report is to communicate the recommendation of appropriate fees, which include the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic.

Meetings: One (1) web meeting with City Staff and the City Manager to present the report, recommended fee structure, methodology and draft results, address questions, and receive feedback.

Deliverables: Willdan: Draft report for City review and comment.

City: Review of draft report, with comments and edits.

Task 9: Discuss and Revise Draft Report/Determine Cost Recovery Levels for Recommended Adoption Objective: Review and discussion of draft results, fee structure, methodology, report, and fee model.

Description: The goal of this task is to conduct an in-depth review of the draft results, report and model, incorporate feedback and changes as a result of previous discussions and meetings, and arrive at an optimum fee structure. During this Task, we will finalize the actual fee levels, with consideration given to policy and current practices.

Often through the course of an engagement, City Staff will volunteer insightful likes and dislikes regarding the existing fee structure.

Agenda Item 16.

Comprehensive User Fee Study 9
City of Needles, CA
We listen to this feedback carefully because your staff members know the community best. Comments usually revolve around issues of:
▪ Understandability;
▪ Fairness to applicants;
▪ Ease of calculation;
▪ Appropriate levels of cost recovery; and
▪ Full cost recovery hourly rates.

When adjusting fee recovery levels, we believe it is important to address these concerns.

One (1) meeting with City Staff and the City Manager to present the recommended fee structure, methodology and draft results, address questions, and receive feedback.

Following one (1) round of comments and feedback from the City on the methodology and draft report, we will prepare the final report for presentation to the City Council.

Meetings: Up to two (2) web meetings to review the model and report and finalize cost recovery levels.

Deliverables: Draft report, revised draft /final report.

Task 10: Prepare and Present Final Report/Instruct Staff on Model Objective: Prepare and present final report to the City Council. Instruct staff on the operation and use of the model for future modifications.

Description: This task is the culmination of the entire project. Based on staff comments received regarding the draft report, we will prepare the final report for presentation. We will provide Staff with guidance on how to update the model in future years, to incorporate cost increases and changes in staffing or processes.

Meetings: One (1) meeting to present recommended fee structure and methodology to the City Council to facilitate their understanding of the approach, analysis, results, recommendations and implications of the study.

We will also provide staff training on the operation and use of the model on the same day, during regular business hours. Follow-up offline discussions may occur as necessary with City Staff to review questions and/or requested clarifications from the City Council.

Deliverables: Provide one (1) electronic PDF file copy of the final report and model; and ten (10) bound copies, and one (1) unbound copy to the City, if requested. Using Microsoft Word and Excel, an updateable electronic copy of the study and models, as well as related schedules, will be provided on CD.

City Staff Support
To complete our tasks, we will need the cooperation of City Staff. We suggest that the City of Needles assign a key individual to represent the City as the project manager who can function as our primary contact. We anticipate that the City’s project manager will:
1) Coordinate responses to requests for information;
2) Coordinate review of work products; and
3) Help resolve policy matters.

Willdan will endeavor to minimize the impact on City Staff in the completion of this project. We will ask for responses to initial information requests in a timely manner. If there are delays on the part of the City, we will contact the City’s project manager to steer the project back on track. We will keep the City’s project manager informed of data or feedback we need to keep the project on schedule.

Agenda Item 16.

Comprehensive User Fee Study 10
City of Needles, CA
Project Disclaimer
Willdan is a registered municipal advisory firm with the U.S. Securities and Exchange Commission (“SEC”), as such we are providing the following disclaimer representing that we are not acting as a Municipal Advisor (as defined by the SEC), to the City of Needles, in any capacity as it relates to the project proposed in this Comprehensive User Fee Study RFP. (i) The City uses the services of one or more municipal advisors registered with the SEC to advise it in connection with municipal financial products and the issuance of municipal securities; (ii) The City is not looking to Willdan to provide, and City shall not otherwise request or require Willdan to provide, any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues);
(iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder;
(iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and (v) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services.

Agenda Item 16.

Comprehensive User Fee Study 11
City of Needles, CA
Project Schedule
Willdan understands time is of the essence for the City of Needles to begin this engagement. This schedule can only be met with the cooperation of City staff.

Delays in responding to our requests for data and review will result in corresponding delays to the project schedule. If that is the case, we will notify the City immediately of the possible impact on the schedule.

Scope of Services 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 6 13 20 27 2 9 16 23 30 Task 1: Initial Document Request z1
Task 2: Compile Inventory of Current and Potential Fees z2 Task 3: Kick-off / Refine Scope (web meeting/conference call) z3 Task 4: Develop User Fee Model z4
Task 5: Staff Interviews and On-site Information Gathering (web meetings) z5 Task 6: Data Analysis and Final User Fee Schedule (Web mtgs/conf calls) z6 Task 7: Common Fees Comparison z7
Task 8: Prepare and Present Draft Report (conference call) z8 Task 9: Revise Draft Report/Determine Cost Recovery Levels (conference call) z9 Task 10: Prepare and Present Final Report/Instruct Staff on Model (web meeting) z10 Deliverables:
z1: Information Request z6: Draft Fee and Rate Model Review z2: Draft List of Current Fees z7: Common Fee Comparison z3: Revised Project Scope and Schedule (if needed) z8: Draft Report z4: User-friendly Model in Microsoft Excel z9: Revised Draft Report/Final Report z5: Time Surveys and Draft Full Cost Recovery Fees z10: Final Report – Hard and Electronic Copies City of Needles
Comprehensive User Fee Study
Project Schedule
December January.2026 February March April May
Agenda Item 16.

Comprehensive User Fee Study 12
City of Needles, CA
Firms Capacity to Provide Quality Services
Firm Profile
Willdan Financial Services is an operating division within Willdan Group, Inc. (WGI), which was founded in 1964 as an engineering firm working with local governments. Today, WGI is a publicly traded company (WLDN). WGI, through its divisions, provides professional technical and consulting services that ensure the quality, value and security of our nation’s infrastructure, systems, facilities, and environment.

The firm has pursued two primary service objectives since its inception—ensuring the success of its clients and enhancing its surrounding communities.

A financially stable company, Willdan has approximately 1,770 employees working in more than a dozen states across the U.S. Our employees include a number of nationally
recognized Subject Matter Experts for all areas related to the broadest definition of connected communities—five of
whom are committed to contribute their expertise
throughout the duration of the City of Needles’ User Fee Study engagement.

Willdan has solved economic, engineering and energy
challenges for local communities and delivered industryleading solutions that have transformed government and commerce. Today, we are leading our clients into a future accelerated by change in resources, infrastructure, technology, regulations, and industry trends.

Willdan Financial Services
Established on June 24, 1988, Willdan Financial Services, is a national firm and is one of the largest public sector economic and financial analysis consulting firms in the United States. Since that time, we have helped over 800 public agencies successfully address a broad range of infrastructure challenges.

Our team is focused on actively supporting our clients by ensuring they stay informed about the latest advancements in our areas of expertise. We believe that by sharing this knowledge, we can empower our clients to make informed decisions and achieve their objectives. Willdan assists local public agencies by providing the following services:

Willdan Financial Services
Services
▪ User fee studies;
▪ Cost allocation studies;
▪ Utility rate and cost of service studies;
▪ Real estate economic analysis;
▪ Feasibility studies;
▪ Municipal Advisory;
▪ Arbitrage and Continuing Disclosure Services;
▪ Economic development strategic plans;
▪ Development impact fee establishment and analysis;
▪ District Administration Services;
▪ Property tax audits;
▪ Tax increment finance district formation and
amendment;
▪ Housing development and implementation strategies;
▪ Debt issuance support; and
▪ Long-term financial plans and cash flow modeling.

Agenda Item 16.

Comprehensive User Fee Study 13
City of Needles, CA
Fiscal Stability
To establish our financial stability, we are providing the following information. Willdan Group, Inc. (WGI) has sustained a healthy financial performance record due to the outstanding performance of our operating divisions and a strong, dependable reputation in municipal consulting.

A snapshot of WGI’s financial statistics have been provided to the right demonstrating our financial position and stability.

As a publicly traded company (WLDN), must provide public financial information as required by the SEC. Additional detailed financial statements and annual reports are included on our webpage (http://ir.willdangroup.com/).

Financial Stability
▪ In business for over 60 years
▪ Approximately 1,770 employees
▪ Fiscal Year 2024 Consolidated
Contract Revenue of $544 Million
▪ Market capitalization of 1.3 Billion
(November 2025)
▪ $50 Million Line of Credit
▪ $100 Million Revolving Credit Facility
Agenda Item 16.

Comprehensive User Fee Study 14
City of Needles, CA
Project Management and Quality Assurance/Control Approach Provided below is the firm’s project management approach to producing the required product in a timely fashion.

Project Management Approach
At Willdan, we utilize a Project Management Process/Approach that ensures projects are completed on time, within budget and most importantly yield results that match our clients’ expectations. We will document discussions leading to important policy decisions and/or the choice of critical assumptions used in constructing the analysis and model.

Following key stakeholder discussions, we will schedule a call to summarize findings and direction with City staff, to make certain that we are in agreement with stated objectives, and that feedback is incorporated as appropriate.

Project Management
Define the
Project Plan the Project Manage the Project
Review the
Project
Communicate
the Project
▪ Identify the project
scope, set
objectives, list
potential constraints,
document
assumptions.
▪ Define a course of
action and develop
an effective
communication plan.
▪ Provide a forum for
applying the team’s
collective expertise
to solving difficult
analytical issues that
arise in complex
projects.
▪ Collaborate with the
project team and
client staff and agree
upon timeline to meet
the estimated project
timeline.
▪ Assign workload
functions to
appropriately
qualified staff to
ensure milestones
are met, on time.
▪ Pre-schedule quality
control meetings with
project team to
maintain the
progressive motion of
the project.
▪ Manage the
execution of the
project.
▪ Direct existing and
upcoming project
tasks.
▪ Control and monitor
work in progress.
▪ Provide feedback to
client and project
team.
▪ Identify and resolve
deviances from
project timeline.
▪ Review all work
product and
deliverables.
▪ Utilize structured
quality assurance
process involving
up to three levels
of review at the
peer level, project
manager level.
▪ Procure executive
officer level review.
▪ Communicate with
the client regarding
work status and
progress.
▪ Ensure client is in
receipt of regular
status updates.
▪ Schedule regular
conference calls to
touch base.
▪ Inform client of
roadblocks, work
outside of projected
scope.

Through the process of providing
regular updates and conducting
status conference calls, potential
issues will be highlighted, discussed,
and resolved. Any deviances from
the project timeline will be identified
and plans will be developed for
course corrections.

Agenda Item 16.

Comprehensive User Fee Study 15
City of Needles, CA
Quality Assurance / Quality Control Process
Our quality control program is incorporated as a required element of Willdan’s day-to-day activities. There are three levels of reviews incorporated for our deliverables:
1) Peer review;
2) Project Manager review; and
3) Final quality assurance manager
review.

Peer reviews involve one analyst
reviewing the work of another, while
project manager reviews are conducted
prior to delivery to the quality assurance
manager. The quality assurance manager
then performs a final review. This assures
that our final product has been thoroughly
evaluated for potential errors; thus,
providing quality client deliverables, and
high levels of integrity and outcomes.

The primary mission of our quality control plan is to provide staff with the technical and managerial expertise to plan, organize, implement, and control the overall quality effort, thereby ensuring the completion of a quality project within the time and budget established.

Quality Assurance Goals
Goal Lead Task
Quality Assurance /
Control Process Chris Fisher
▪ Establish a set of planned and systematic actions for maintaining a high level of quality in the professional services performed; ▪ Emphasize quality in every phase of work;
▪ Ensure efficient use of resources;
▪ Establish a consistent and uniform approach to the services performed; and
▪ Implement appropriate quality control measures for each work task of the project.

Quality Control Plan
Chris Fisher
& Robert Quaid
▪ Contract deliverables;
▪ Specific quality control procedures;
▪ Special quality control emphasis;
▪ Budget and manpower requirements;
▪ Overall project schedule and budget; and
▪ Project documentation requirements.

Agenda Item 16.

Comprehensive User Fee Study 16
City of Needles, CA
Firm Qualifications
Experience
Willdan Financial Services employs a team of professionals who provide essential financial consulting services throughout the United States. Our direct experience as “agency staff” provides us with firsthand understanding of City operations and is uniquely useful in determining the full effort associated with service delivery and in developing a fee schedule that is easy to communicate and implement.

Willdan has provided Cost Allocation Plan and User Fee Study services to municipal clients for 27 years; and has prepared user fee studies, cost allocation plans, and OMB compliant cost allocation plans for clients throughout California, as well as the United States.

Willdan’s proven and successful track-record conducting user fee studies and cost allocation plan services for public agencies dates to 1998. Since that time, we have developed the expertise to successfully integrate this service into the Financial Consulting Services group’s primary functions.

Willdan has extensive experience with a range of fee studies and the typical pros, cons, and challenges, both in implementation and management. Willdan will bring its expertise to the City’s process of considering financial, practical, and policy issues in deciding on its future fee program. Our record of success within the industry provides assurance of the professionalism and capability we will bring to this engagement.

Breadth of Directly Related Experience
Willdan is the leading firm in California providing services to complete Cost Allocation Plan and User Fee Study projects, and one of the leaders throughout the Country. We have completed hundreds of successful similar studies in California, including more than thirty (30) in the past two years alone, in addition to projects in Arizona, Colorado, Texas, and Florida.

Extensive Public Sector Experience
For more than 60 years, Willdan has proudly contributed to the development of groundbreaking financial, energy, and engineering solutions. Our expertise has played a pivotal role in transforming the landscape of government operations, driving efficiency, innovation, and sustainable growth for our clients.

Experienced Team
Our employees know and understand the problems facing local government under the current economic climate, and we have oriented our practice to support an agency’s modified budget policies and public service priorities. The proposed project team consists of five subject matter experts; they collectively maintain 100 years of experience.

Staffing Capacity
The Financial Consulting Services group is made up of over 30 professionals who can be called upon as needed; we are confident that our team possesses the depth of experience that will successfully fulfill the desired work performance. Willdan Group Inc. is composed of over 1,770 employees, including a cadre of public finance experts. If necessary, Mr. Fisher can recruit additional, qualified individuals from our employee roster to assist with the completion of this engagement to deliver the final materials on time and within budget.

Community Investment
Much of our success in developing impactful programs and studies is due to our experiences in meeting with citizen / stakeholder groups and elected officials. Our ability to explain technical information in a concise, understandable manner is a fundamental reason for our high degree of success. Willdan staff takes the time to include and inform the Community.

Agenda Item 16.

Comprehensive User Fee Study 17
City of Needles, CA
References
Below are recent project descriptions, including client contact information, that are similar in nature to those requested by the City of Needles engagement.

City of Barstow, CA
Comprehensive User Fee Study and Full Cost Allocation Plan Willdan is currently conducting a Comprehensive User Fee Study and Cost Allocation Plan for the City of Barstow.

To support the development of models for both the Cost Allocation Plan and User Fee Study, Willdan is collecting and validating the necessary data and information. We will analyze the existing user fee programs, calculating the full cost of providing services, and through discussions with city staff, we will make suggestions for necessary adjustments. We are also providing policy guidance related to fee-setting and cost recovery strategies and approaches.

Willdan was previously engaged to prepare a Cost Allocation Plan for the City.

Client Contact: Sydnie Harris, Finance Director
Tel #: (760) 256-3531 | Email: [email protected]
City of Eastvale, CA
Comprehensive User Fee Study and Full & OMB Cost Allocation Plan Through competitive bid, the City of Eastvale engaged Willdan Financial Services to conduct a comprehensive study of the City’s user fees, as well as the preparation of a Full and OMB compliant Cost Allocation Plan.

Our primary objective for the cost allocation study was to ensure that general government costs are fairly and equitably allocated to appropriate programs and funds, based on tailored and well thought out allocation factors. The Cost Allocation Plan was also created to develop OMB compliant overhead allocations and indirect rates.

Willdan is currently wrapping up the Comprehensive User Fee Study. The Cost Allocation Plan and primary User Fee Study are complete. We are working with the City to incorporate some minor adjustments and conduct meetings with local stakeholder groups, Willdan developed the Cost Allocation Plan and model, reviewed and analyzed existing user fee programs, and working collaboratively with staff, made suggestions as necessary for additions to the City’s fee schedule for activities for which fees were not currently being charged.

Client Contact: Amanda Wells, Finance Director/ City Treasurer Tel #: (951) 703-4430 | Email: [email protected]
City of San Dimas, CA
Comprehensive User Fee Study and Cost Allocation Plan
The City of San Dimas engaged an outside consultant to conduct a comprehensive study of the City’s User Fees and to prepare a Full Cost Allocation Plan. These studies were conducted in a manner that identified and accounted for all direct and indirect costs. Our main objective for updating the cost allocation study was to ensure that general government costs are fairly and equitably distributed among the appropriate programs and funds, using tailored and well-considered allocation factors.

The Cost Allocation Plan was developed to create overhead allocations and indirect rates that comply with OMB standards. Willdan evaluated and analyzed the existing user fee programs and based on discussions with staff, recommended potential new fees to be added to the City’s fee schedule for services that were previously not charged.

We conducted a cost-of-service analysis and model, which updated existing fees, incorporated new fees, and was used to create a revised comprehensive fee schedule.

Client Contact: Michael O’Brien, Administrative Services Director Tel. #: (909) 394-6225 | Email: [email protected]
Agenda Item 16.

Comprehensive User Fee Study 18
City of Needles, CA
City of Burbank, CA
Comprehensive User Fee Study
In Spring of 2023 Willdan completed a comprehensive master user fee study for the City of Burbank. Burbank is a large, diverse city with a full range of municipal services. We worked with City staff to gather the necessary data to incorporate appropriate central service overhead factors from the City’s current Cost Allocation Plan into this analysis. Following this, we analyzed the current fee schedule, developed a detailed cost-of-service analysis, and calculated the full cost of providing services for which fees are charged.

We also evaluated opportunities to implement new fees and eliminate obsolete ones. Finally, we conducted fee comparisons with other local municipal agencies and worked with City Staff to develop fee-setting recommendations that incorporated policy guidelines and presented these to the City Council for adoption.

Willdan updated many of the fee programs and their structures. Final master fee recommendations were made to address the City’s goal to maximize the recovery of the costs of providing services, to the best extent possible, including overhead. The final steps of the process included a detailed presentation to the City Council, and delivery to the City of the fee model for their future use.

Client Contact: Justin Hess, City Manager
Tel #: (818) 238-5800| Email: [email protected]
City of Chino Hills, CA
Full Cost Allocation Plan and Comprehensive User Fee Study The City of Chino Hills engaged Willdan to complete a comprehensive Cost Allocation Plan and Comprehensive User Fee Study. Willdan staff met with City staff to verify the City’s objectives for the study, independently gathered most of the necessary data for the development of the CAP model and methodology and worked directly with City staff to gather additional detail or clarify information where necessary. We worked with City staff to understand the various functions served by indirect staff in various City departments, and which operating departments or funds they served. We worked directly with City staff to develop and verify allocation bases and make adjustments through several iterations of the CAP model, as necessary.

We developed a cost-of-service analysis and model that updated existing fees and incorporated new fees and used it to create an updated comprehensive fee schedule.

Willdan is currently providing an update to the User Fee Study and Cost Allocation Plan.

Client Contact: Christa Buhagiar, Finance Director
Tel. #: (909) 364-2642 | Email: [email protected] City of Upland, CA
Comprehensive User Fee Study and Cost Allocation Plan
Willdan conducted a comprehensive user fee study and developed a full cost allocation plan for the City of Upland. This project involved evaluating citywide user fees and comparing them to those of similar agencies.

To support the development of models for both the Cost Allocation Plan and User Fee Study, Willdan collected and validated the necessary data and information. We reviewed and analyzed the existing user fee programs, and through discussions with city staff, we made suggestions for necessary adjustments. This included identifying new fees that were not currently charged and recommending changes to the structure of certain existing fees.

We also created a cost-of-service analysis and model that updated the costs associated with providing services related to existing fees while incorporating new fees. This analysis was used to produce an updated comprehensive fee schedule. We presented the findings of both studies to City Staff and the City Council, and the updated fees were adopted by the City Council.

After the initial engagement, Willdan was engaged to prepare an update to both the Cost Allocation Plan and User Fee Study.

Client Contact: Stephen Parker, CPA, Assistant City Manager Tel. #: (909) 931-4121 | Email: [email protected]
Agenda Item 16.

Comprehensive User Fee Study 19
City of Needles, CA
Recent Studies
Provided in the table below is a list of the public agencies in which similar services are currently in progress, or have been completed, in the previous five years.

Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of Amarillo, TX Cost Allocation Plan
City of Arcadia, CA Cost Allocation Plan and Comprehensive User Fee Study City of Arroyo Grande, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study City of Arvin, CA Cost Allocation Plan
City of Atwater, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Aurora, CO Cost Allocation Plan and Comprehensive User Fee Study City of Baldwin Park, CA Cost Allocation Plan and Comprehensive User Fee Study City of Barstow, CA Cost Allocation Plan and Comprehensive User Fee Study City of Bedford, TX Cost Allocation Plan
City of Belmont, CA Development Services User Fee Study City of Bellflower, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Benicia, CA Cost Allocation Plan and Comprehensive User Fee Study City of Blythe, CA Cost Allocation Plan and Comprehensive User Fee Study City of Bradbury, CA Comprehensive User Fee Study
City of Brea, CA Cost Allocation Plan and Comprehensive User Fee Study City of Brighton, CO Cost Allocation Plan
City of Boulder, CO Cost Allocation Plan
City of Burbank, CA Comprehensive User Fee Study
City of Canyon Lake, CA Comprehensive User Fee Study & EMS User Fee Study City of Capitola, CA Cost Allocation Plan and Comprehensive User Fee Study City of Cave Creek, AZ Cost Allocation Plan and Comprehensive User Fee Study City of Chico, CA Cost Allocation Plan and Indirect Cost Rate Plan City of Chino, CA Comprehensive User Fee Study, Cost Allocation Plan and Indirect Cost Rate Studies
City of Chino Hills, CA Cost Allocation Plan and Comprehensive User Fee Study, and Updates City of Claremont, CA Cost Allocation Plan and User Fee Study City of Clermont, FL Building & Safety Department User Fee Study City of Coachella, CA Cost Allocation Plan and Comprehensive User Fee Study City of Commerce City, CO Comprehensive User Fee Study and Development Impact Fee Study City of Coppell, TX Full Cost Allocation Plan
City of Corona, CA Cost Allocation Plan and Comprehensive User Fee Study City of Coronado, CA Full Cost Allocation Plan and EMS User Fee Study City of Covina, CA Comprehensive User Fee Study
City of Cudahy, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of DeSoto, TX Comprehensive User Fee Study
City of Diamond Bar, CA Cost Allocation Plan and Comprehensive User Fee Study Agenda Item 16.

Comprehensive User Fee Study 20
City of Needles, CA
Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of Dinuba, CA Cost Allocation Plan & User Fee Study City of Duarte, CA Cost Allocation Plan & User Fee Study City of El Cerrito, CA Cost Allocation Plan and Community Development Department User Fee Study City of El Monte, CA Cost Allocation Plan, User Fee Study and Updates, and Development Impact Fee Study
City of Eastvale, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study City of Encinitas, CA Development Services User Fee Study and Cost Allocation Plan and Updates City of Fillmore, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Foster City, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study City of Fountain Hills, AZ Comprehensive User Fee Study City of Fountain Valley, CA Cost Allocation Plan and Comprehensive User Fee Study City of Fontana, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Fullerton, CA Community Development Department User Fee Study and Fire Department User Fee Study
City of Garden Grove, CA Cost Allocation Plan
City of Georgetown, TX Cost Allocation Plan
City of Gilroy, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study & 2023 CPI Updates
City of Goleta, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Hayward, CA Comprehensive Master User Fee Study, Full Cost Allocation Plan, and Updates City of Hesperia, CA Comprehensive User Fee Study
City of Hollister, CA Cost Allocation Plan and Planning User Fee Study City of Hughson, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Huntington Park, CA Cost Allocation Plan and Comprehensive User Fee Study City of Indian Wells, CA Comprehensive User Fee Study & Updates and Fire Services User Fee Study City of Irvine, CA Cost Allocation, Comprehensive User Fee Study, and Building & Safety Fee Update
City of Irwindale, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Kingsburg, CA Full & OMB Compliant Cost Allocation Plan City of La Puente, CA Cost Allocation Plan and Comprehensive User Fee Study City of La Verne, CA Cost Allocation Plan
City of Lake Elsinore, CA User Fee Study and Cost Allocation Plan and Updates City of Lindsay, CA Cost Allocation Plan, User Fee Study, and Impact Fee Analysis City of Lodi, CA Cost Allocation Plan & OMB Compliant Plan City of Lomita, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Analysis
City of Los Alamitos, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study
City of Los Angeles, CA Building & Safety User Fee Study City of Lynwood, CA User Fee Study Cost Allocation Plan, and Impact Fee Study City of McFarland, CA Cost Allocation Plan and Utility Rate Study City of Manhattan Beach, CA Full Cost Allocation Study, OMB Compliant Plan, and Comprehensive User Fee Study
Agenda Item 16.

Comprehensive User Fee Study 21
City of Needles, CA
Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of Manteca, CA Cost Allocation Plan and Comprehensive User Fee Study City of Martinez, CA Cost Allocation Plan
City of Maywood, CA Comprehensive User Fee Study
City of Melissa, TX Cost Allocation Plan and Comprehensive User Fee Study City of Mesquite, TX Cost Allocation Plan and OMB Compliant Plan, and Updates City of Missouri City, TX Full Cost Allocation Plan and User Fee Study City of Montebello, CA Cost Allocation Plan and User Fee Study, and Updates City of Monterey Park, CA Cost Allocation Plan and User Fee Study City of Monterey, CA Cost Allocation Plan and Indirect Cost Rate City of Mountain View, CA Cost Allocation Plan and Comprehensive User Fee Study City of Murrieta, CA Comprehensive User Fee Study, Cost Allocation Plan, and Updates City of Napa, CA Comprehensive User Fee Study, Cost Allocation Plan, and OMB Compliant Plan City of National City, CA Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee Study, and ISF Allocation Study
City of Norco, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of North Port, FL User Fee Study
City of Ontario, CA Comprehensive User Fee Study
City of Oroville, CA Cost Allocation Plan and Updates
City of Oviedo, FL Cost Allocation Plan
City of Palm Desert, CA Cost Allocation Plan and Comprehensive User Fee Study, and Updates City of Palm Springs, CA Cost Allocation Plan and Comprehensive User Fee Study City of Patterson, CA Comprehensive User Fee Study, Full and OMB Compliant Cost Allocation Plan City of Paramount, CA Cost Allocation Plan and Comprehensive User Fee Study City of Petaluma, CA Cost Allocation Plan, User Fee Study, CIP Admin Rate & Work Order Rate Analysis, Hourly Overhead Rates, and ISF Allocation Study, and Updates City of Pismo Beach, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Pittsburg, CA User Fee Study and Cost Allocation Plan, and Updates City of Pleasant Hill, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Pomona, CA Master Fee Schedule Update and Development Impact Fee Review City of Rancho Cordova, CA Cost Allocation Plan and Comprehensive User Fee Study City of Richmond, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of Rosemead, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of St. Helena, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study, and Updates
City of San Anselmo, CA Cost Allocation Plan and Comprehensive User Fee Study City of San Dimas, CA Cost Allocation Plan and Comprehensive User Fee Study City of San Fernando, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study, and Updates
City of San Jacinto, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of San Luis, AZ Cost Allocation Plan
Agenda Item 16.

Comprehensive User Fee Study 22
City of Needles, CA
Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of San Pablo, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study City of San Marcos, CA Cost Allocation Plan, Indirect Cost Rate Studies and Comprehensive Citywide User Fee Study
City of Santa Cruz, CA Citywide Overhead Cost Allocation Plan, Santa Cruz Library Cost Allocation Plan, and Fleet and Facility Services Cost Allocation Plan, and Updates City of Santa Paula, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of Sausalito, CA User Fee Study and Development Impact Fee Study City of Seaside, CA Comprehensive User Fee Study
City of Sierra Madre, CA Comprehensive User Fee Study and Full Cost Allocation Plan City of Solana Beach, CA Cost Allocation Plan and Comprehensive User Fee Study City of South Pasadena, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of Soledad, CA User Fee Study
City of Stanton, CA Comprehensive User Fee Study and Cost Allocation Plan City of Tamarac, FL Building & Safety Department User Fee Study City of Temple, TX Comprehensive User Fee Study
City of Tulare, CA Comprehensive User Fee and Rate Study and Full Cost Allocation Plan, City of Tustin, CA Comprehensive User Fee Study, and Updates City of Twentynine Palms, CA Comprehensive User Fee Study and Full Cost Allocation Plan, City of Upland, CA Cost Allocation Plan and Comprehensive User Fee Study City of Vernon, CA Cost Allocation Plan and Comprehensive User Fee Study City of Watsonville, CA Comprehensive User Fee and Rate Study, Cost Allocation Plan, and Updates City of West Hollywood, CA Cost Allocation Plan and User Fee Study, and Updates City of West Sacramento, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study, and Updates
City of Yucaipa, CA Comprehensive User Fee and Rate Study, Full Cost Allocation Plan, and Updates Coachella Valley Cemetery, CA User Fee Study
County of Coconino, AZ Cost Allocation Plan and User Fee Study County of Mono, CA Comprehensive User Fee Study
County of Placer, CA Land Development Fee Study
Housing Authority of the
City of Alameda, CA Cost Allocation Plan and Updates
Housing Authority of the County
of San Bernardino, CA Cost Allocation Plan and Updates
Navada Irrigation District , CA Cost Allocation Plan and Updates Placer County Water Agency, CA Cost Allocation Plan and Overhead Rate Study Town of Apple Valley, CA Cost Allocation Plan, Comprehensive User Fee Study and Development Impact Fee Study
Town of Monument, CO Cost Allocation Plan and User Fee Study Town of Paradise Valley, AZ Master User Fee Study
Town of Sunnyvale, TX Comprehensive User Fee Study
Town of Yucca Valley, CA Comprehensive User Fee Study
Agenda Item 16.

Comprehensive User Fee Study 23
City of Needles, CA
Project Team
Our management and supervision of the project team is very simple:
staff every position with experienced, capable personnel in sufficient numbers to deliver a superior product to the City, on time and on budget. With that philosophy in mind, we have selected experienced professionals for this engagement. We are confident that our team possesses the depth of experience that will successfully fulfill your desired work performance.

City of Needles
Project Team
Key Team Member Project Role Responsibility to the Engagement Chris Fisher
Vice President/Director
Principal-in-Charge
▪ Ensure client satisfaction, flow of communication, and oversight of the project;
▪ Technical guidance;
▪ Project oversight;
▪ Quality assurance & control; and
▪ Meeting and presentation attendance.

Tony Thrasher
Principal Consultant
Project Manager
▪ Task oversight;
▪ Model development;
▪ Produce key elements of the analysis;
▪ Responsible for project deliverables;
▪ Report preparation and evaluation; and
▪ Meeting and presentation attendance.

Priti Patel
Project Manager
Financial Analyst
▪ Collect, interpret, and disseminate key data;
▪ Assistance with model development;
▪ Peer review;
▪ Report preparation; and
▪ Meeting and presentation attendance.

Samantha Labitan
Senior Analyst
Analytical Support
▪ Collect, interpret, and disseminate key data;
▪ Assistance with model development;
▪ Peer review; and
▪ Report preparation.

Robert Quaid
Principal Consultant
Technical Advisor
▪ Third party reviewer; and
▪ Report evaluation.

Project Team Stability
Mr. Fisher has been assigned to serve as the City’s representative; he has been selected for this role due to his vast experience, which includes the preparation and supervision of numerous fee studies, as well as his experience presenting to governing bodies, stakeholders, and industry groups.

Resumes
Resumes for Willdan’s project team are presented on the following pages.

The team presented within this proposal
has worked collectively on numerous
projects, such as the one requested by the
City of Needles; an established work
practice between the team members has
been forged, this proven long-standing
system has benefited our clients.

It is important to note that Mr. Fisher
has been with Willdan for over 26
years, ensuring the City of Needles of
continuity and dedication in staffing
during the completion of the project.

Agenda Item 16.

Comprehensive User Fee Study 24
City of Needles, CA
Education
San Francisco State
University, Bachelor
of Science, Finance
Areas of Expertise
Cost of Service
Analyses
Multi-disciplinary
Team Management
Special District
Formations
Client Presentations
Proposition 218
Affiliations
California Society of
Municipal Finance
Officers
Municipal
Management
Association of
Northern California
California Municipal
Treasurers
Association
26 Years’ Experience
Chris Fisher
Principal-in-Charge
Mr. Chris Fisher, Vice President / Director of Willdan’s Financial Consulting Services group, will serve as Principal-in-Charge for the City of Needles project. He will also share his extensive knowledge related to cost-of-service principles with members of the project team.

Mr. Fisher joined Willdan in April of 1999, and during that time has managed an array of financial consulting projects for public agencies in California, Colorado, Texas, Arizona, and Florida, coordinating the activities of resources within Willdan, as well as those from other firms working on these projects. He is one of the firm’s leading experts for special district financing related to public infrastructure, maintenance, and services, including public safety.

Select Related Experience
City of West Hollywood, CA — Comprehensive User Fee Study and Cost Allocation Plan:

Mr. Fisher is the principal-in-charge for the City’s Comprehensive User Fee Study and Cost Allocation Plan engagement, managing the overall execution of the project, providing technical guidance and quality control.

City of Burbank, CA — Comprehensive Citywide User Fees and Charges Study: Mr. Fisher oversaw the City’s recently completed Citywide User Fees and Charges Study.

City of Pomona, CA – Master Fee Schedule Update: Mr. Fisher was the principal-in-charge for the City’s master fee schedule update and update of the development impact fees. Mr. Fisher provided quality control and served as the primary contact with the City.

City of Manhattan Beach, CA — Comprehensive Cost Allocation Plan and Comprehensive User Fee Study: Mr. Fisher oversaw the comprehensive full & OMB compliant cost allocation plan and user fee study, coordinating resources and providing technical guidance and quality review for analysis and key deliverables.

City of Irvine, CA — Cost Allocation Plan and Comprehensive User Fee Study: Willdan completed a cost allocation plan and user fee study for the City of Irvine. Mr. Fisher managed and provided quality assurance to this project, ensuring the accuracy of the models, as well as the final reports. He also presented the results to the City’s Finance Commission and to the City Council.

City of Covina, CA — Comprehensive User Fee Study: Mr. Fisher served in the role of principal for the City’s engagement, overseeing the project team responsible for completion of all work for the project, and providing quality assurance and technical support where necessary.

City of Fullerton, CA — Cost Allocation Plan and User Fee Study: As principal-in-charge, Mr. Fisher oversaw the development and review of a Full and OMB compliant cost allocation study and a comprehensive user fee and rate study for the City’s master list of fees.

Housing Authority of the County of San Bernardino – Cost Allocation Plan: Mr. Fisher is the principal-in-charge for the Authority’s full and OMB cost allocation plan engagement, and the ongoing update. Willdan was brought in and worked with the Housing Authority and HUD to respond to unfavorable OIG audit findings related to the Authority’s’ approach to the allocation of overhead costs.

We developed a new Cost Allocation Plan and are currently working on an update to that plan.

The initial work resulted in the clearance of the HUD findings with no penalty to the Housing Authority.

City of Palm Desert, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Mr. Fisher is the principal-in-charge for the ongoing full cost allocation plan and user fee study.

Willdan’s work includes the gathering of necessary data and information, interviews with City Staff to identify overhead support services and how they are used and interviews to gather information related to fee-based services. We are also developing financial models to calculate overhead allocations and personnel rates and the full cost of services for which fees are charged. We are working with Staff to finalize cost recovery targets, prepare reports and present the results.

City of Murrieta, CA — Cost Allocation & OMB Compliant Plan and Comprehensive User Fee Study: Mr. Fisher served as the project manager on the City’s fee study. The primary objective for the cost allocation study was to ensure that general government costs were fairly and equitably allocated to appropriate programs and funds. The City recently re-engaged Willdan to conduct an update to both studies.

Agenda Item 16.

Comprehensive User Fee Study 25
City of Needles, CA
Education
Bachelor of Science
in Economics;
California State
Polytechnic
University, Pomona
Areas of Expertise
Cost Allocation Plans
Fiscal Analysis for
User Fees and Rates
District Administration
Services
Utility Rate Studies
15 Years’ Experience
Tony Thrasher
Project Manager
Due to his cost allocation and user fee analyses experience, Mr. Tony Thrasher has been selected to serve as Project Manager for the City’s engagement. Mr. Thrasher is a Principal Consultant within the Financial Consulting Services group, whereby his responsibilities include managing projects and conducting fiscal analyses for cost allocation plans, user fees, and utility rate studies.

Mr. Thrasher’s prior employment was as a financial analyst working in bond, equity, and mortgagebacked security markets for Wells Fargo Bank, Bank of New York Mellon, and Deutsche Bank. His experience includes portfolio accounting, differential analysis, and forecasting.

Select Related Experience
City of West Hollywood, CA — Comprehensive User Fee Study and Cost Allocation Plan:

As the project manager for City’s Comprehensive User Fee Study and Cost Allocation Plan engagement, Mr. Thrasher is overseeing the project analysts and is heavily involved in the analysis, development of models, preparation of reports and delivery of results.

City of Burbank, CA — Comprehensive Citywide User Fees and Charges Study: Mr. Thrasher was the project manager for the City’s recently completed study, He directed the preparation of the model and reports and was responsible for the delivery of results to the City.

City of Chino Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study: Mr. Thrasher is the project manager for the City’s Cost Allocation Plan and Comprehensive User Fee Study. He is working directly with the City contact throughout the engagement.

City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study: Mr.

Thrasher was the project manager for the City’s cost allocation plan, OMB compliant plan and comprehensive user fee study engagement. Willdan has recently, through a competitive bid, been re-selected to update the cost allocation plan.

City of Pomona, CA – Master Fee Schedule Update: Mr. Thrasher served as the project manager for the master fee schedule update portion of the City of Pomona’s engagement, which also included an update of the development impact fees. Mr. Thrasher was responsible for the development of models and reports and coordinating analytical support.

City of Irvine, CA — OMB Cost Allocation Plan and Comprehensive User Fee Study: Serving as the project’s lead analyst, Mr. Thrasher provided analytical support; and designed micro-level allocation models to ensure full-cost recovery for public safety, public works, community development, community services, and administrative departments.

City of Eastvale, CA — Cost Allocation Plan and User Fee Study: Mr. Thrasher was the assigned project manager who worked directly with the City on this project, overseeing the analytical team, developing the cost allocation and fee models, and delivering results to City management and Council.

City of Indian Wells, CA — User Fee Study: Mr. Thrasher served as the technical project manager for the City’s Administrative, Building, Planning and Public Works Departments. The study involved the identification of existing and potential new fees, fee schedule restructuring, data collection and analysis, orientation and consultation, quality control, communication and presentations, and calculation of individual service costs cost recovery levels.

City of Palm Desert, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Mr. Thrasher served as the technical project manager for the City’s full cost allocation plan and user fee study. He was directly responsible for the creation of both models for the study, gathering and verification of the data, managing the analysts working to support him and presenting results.

City of San Marcos, CA — Cost Allocation Plan, Indirect Cost Rate Proposals and Comprehensive User Fee Study: Mr. Thrasher was the project manager for the City of San Marcos’ full and OMB compliant cost allocation plan, preparation of Indirect Cost Rate proposals, and Comprehensive User Fee Study engagement. He was the primary in developing the model, which contains all City personnel and expenditures broken down into the ICRP tables.

Agenda Item 16.

Comprehensive User Fee Study 26
City of Needles, CA
Education
Bachelor of Arts;
Business
Management,
Information Systems
and
International
Business,
University of
Cincinnati
Areas of Expertise
Cost Allocation Plans
User Fee Studies
Proposition 218
11 Years’ Experience
Priti Patel
Senior Analyst
Ms. Priti Patel is a Project Manager in the Financial Consulting Services group. She plays a crucial role in the project team by conducting utility rate analyses, fee studies, cost allocation plans, monitoring Proposition 218 compliance, and establishing special districts. Ms. Patel is responsible for coordinating and performing activities related to Cost Allocation Plans and User Fee Studies. This includes integrating and adjusting databases, analyzing revenues and expenditures, and preparing documentation. Additionally, she regularly interacts with clients as part of her responsibilities.

Ms. Patel joined Willdan as an analyst with the District Administration Group, while with DAS she performed research and analysis needed for local government financial issues related to district administration, including document data entry and updating, database management, research and report preparation. She also provided general information on questions pertaining to Assessment Districts and special taxes (such as Mello-Roo’s Pools), as well as the status of property delinquencies.

Select Related Experience
City of West Hollywood, CA — Comprehensive User Fee Study and Cost Allocation Plan:

Ms. Patel is serving as the primary financial analyst for City of West Hollywood’s Fee Study engagement. Ms. Patel has been instrumental in collecting the necessary data and collaborating with the City and Willdan senior project team members in conducting the study, including development of the model, researching similar fees in comparable cities and preparation of reports.

City of Burbank, CA — Comprehensive Citywide User Fees and Charges Study: Ms. Patel provided analytical support and gathered budget and allocation basis data for this engagement. She also assisted in the development of the financial model.

City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study: Ms. Patel provided support to senior team members in the preparation of the cost allocation plan, OMB compliant plan and comprehensive user fee study engagement.

City of Palm Desert, CA — Cost Allocation Plan and Comprehensive User Fee Study: Ms. Patel was assigned as the analyst to the City of Palm Desert’s full cost allocation plan and user fee study.

She supported the project manager by gathering necessary data, preparing the initial draft models and reports, and working directly with City Staff to refine and update results during review iterations.

City of Indian Wells, CA — User Fee Study: Ms. Patel served as the analyst for the City’s user fee study for the Administrative, Building, Planning and Public Works Departments. She led the analytical efforts by developing the User Fee model and report and gathering and evaluating the data necessary for the study. She also participated in the on-site interviews with Staff to discuss service delivery processes.

City of Chino Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study: Providing analytical support in the preparation of a cost allocation plan and comprehensive fee study, Ms. Patel worked to identify and take into account direct and indirect costs, along with changes in staffing, structure, and service delivery methods. She is also assisting in the preparation of user-friendly Excelbased models that City staff can easily update in the future to determine the proper allocation of expenditures and ongoing full cost of City-provided services.

City of Chino, CA — Cost Allocation Plan and Comprehensive User Fee Study: Ms. Patel provided analytical support in the preparation of a full cost allocation plan and fee study for the development of a master list of fees. She prepared and presented the models, results, findings and reports.

City of National City, CA — Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee Study, and ISF Allocation Study: Ms. Patel provided analytical support in the preparation of this study, her primary duties included development of the models, finalizing model figures and results, and generating reports.

City of Yucaipa, CA — Cost Allocation Plan and Comprehensive User Fee Study: Provided analytical support in the preparation of a Cost Allocation Plan and OMB compliant cost allocation plan and comprehensive fee study for the development of a master list of fees Agenda Item 16.

Comprehensive User Fee Study 27
City of Needles, CA
Samantha Labitan
Analytical Support
Ms. Samantha Labitan is Senior Analyst within Willdan’s Financial Consulting and District Administration Services groups. Ms. Labitan provides analytical support under the guidance of the project team. Her primary function is to support project managers and senior analysts with cost allocation plans and user fee studies. She specializes in analysis for a variety of clients, including cities, water districts, public utilities, and school districts.

Select Relevant Experience
City of West Hollywood, CA — Cost Allocation Plan and Comprehensive User Fee Study: For this project, Ms. Labitan provides analytical support. Primary duties include gathering and verifying necessary data, finalizing model figures and generating reports.

City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Ms. Labitan is currently providing support to senior team members in the preparation of a cost allocation plan, OMB compliant plan and comprehensive user fee study.

City of Lynwood, CA — Cost Allocation Plan & OMB Compliant Cost Allocation Plan and User Fee Study: Ms. Labitan provided support to the project team specific to the preparation of a comprehensive fee study, full and OMB compliant cost allocation plan. Ms. Labitan worked in tandem with the project managers to identify and account for direct and indirect costs, along with changes in staffing, structure, and service delivery methods.

City of Gilroy, CA — Cost Allocation Plan and Comprehensive User Fee Study: Ms. Labitan worked on the team for the City’s fee study project, providing analytical support, gathering data, working with staff to make refinements, and developing cost allocation and fee models to ensure fullcost recovery for building and safety, planning, community development, and public works departments.

City of Goleta, CA — Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study: Ms. Labitan provided analytical support to the project team for the City’s comprehensive fee study, full and OMB compliant cost allocation plan.

City of Los Banos, CA — Full & OMB Compliant Cost Allocation Plan and Comprehensive User Fee Study: Ms. Labitan provided analytical support to the project team for the City’s comprehensive fee study, full and OMB compliant cost allocation plan.

City of Pismo Beach, CA — Comprehensive User Fee Study: Ms. Labitan served in the capacity of assistant analyst for the City’s comprehensive fee study.

City of Palm Springs, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Ms. Labitan is the assigned as the analyst to the City of Palm Springs’ full cost allocation plan and user fee study. She is supporting the project manager by gathering necessary data, preparing the initial draft models and reports, and working directly with City Staff to refine and update results.

City of El Centro, CA — Full & OMB Compliant Cost Allocation Plan and User Fee Study:

Ms. Labitan served as the analyst in the preparation of a full & OMB compliant Cost Allocation Plan and Comprehensive User Fee Study, for the City of El Centro engagement.

City of Blythe, CA — Full and OMB Compliant Cost Allocation Plan: Ms. Labitan served as the analyst in the preparation of a full and OMB compliant cost allocation plan for the City of Blythe engagement.

City of Brighton, CO — Cost Allocation & OMB Compliant Plan: Ms. Labitan is providing analytical support for the City’s cost allocation plan.

City of Richmond, CA — Cost Allocation Plan & User Fee Study: As analytical support, Ms.

Labitan provided assistance to the project team. Primary duties included gathering and verifying necessary data, finalizing model figures and generating reports.

Education
University of
California, Santa
Barbara
Bachelor of Arts,
Mathematics
Areas of Expertise
Cost Allocation Plans
User Fee Studies
Benefit/Maintenance
Assessment Districts
Community Facilities
Districts
Local Improvement
Districts
8 Years’ Experience
Agenda Item 16.

Comprehensive User Fee Study 28
City of Needles, CA
Education
Bachelor of Science,
University of
Southern California
Areas of Expertise
Fiscal Analysis for
User Fees and Rates
Cost Allocation Plans
Acquisition Audit
Services
Statutory Financial
Reporting
Fund Audits
Quality Review of
Community Facilities,
Lighting &
Landscaping, and
Assessment Districts
Affiliations
California Society
of Municipal
Finance Officers
California Society
of CPAs
40 Years’ Experience
Robert Quaid
Technical Advisor
With his 40 years of extensive experience in public financing, Mr. Robert Quaid has been selected to provide quality assurance/quality control in the role of technical advisor. In his position as a Principal Consultant at Willdan, Mr. Quaid provides project management, procedural support, technical support, and quality review for Willdan’s District Administration group, as well as the Financial Services Consulting group specific to cost allocation plans, user fee studies, and special financial analysis.

Prior to joining Willdan, Mr. Quaid worked in the private industry of real estate accounting and finance.

He began his career with the public accounting firm formerly known as Haskins & Sells (currently known as “Deloitte & Touche”). His experience includes financial statement analyses, asset administration, computer conversion, and reporting to the Securities and Exchange Commission for several public real estate partnerships. In 1979, Mr. Quaid became a licensed California CPA.

Select Related Experience
City of Thousand Oaks, CA — Cost Allocation Plan: Mr. Quaid served as project manager for the development of an OMB compliant cost allocation plan model using fiscal year actual costs as the basis for the allocations. He was responsible for the preparation of the Cost Allocation Plan report and provided cost allocation model training to City staff.

The objective of this project was to determine the appropriate allocation of indirect costs from City General Fund central service departments to the General Fund operating departments/programs and the non-General Fund departments/programs. The plan model included 16 allocation bases allocating costs to over 100 departments and divisions. Both full and OMB cost allocation models were delivered to the City. Willdan was awarded a four-year contract.

Cities of Fontana, Gardena and Hawthorne, CA — Cost Allocation Plan Projects: For each of these cities, Mr. Quaid served in the role of task manager for the development of an OMB compliant cost allocation plan model using Microsoft Excel. He was responsible for the preparation of the cost allocation plan report and trained City staff on how to use the cost allocation model.

City of Cathedral City, CA — Comprehensive User Fee Study: Mr. Quaid served as project manager for a user fee study that required updating fees for Planning, Engineering, Building, Police, Fire, City Clerk, and Finance.

Mr. Quaid has provided Quality Assurance and Quality Control to multiple clients throughout California.

Provided below are a few examples of clients for which services have been provided in the previous five years.
▪ City of Arcadia, CA
▪ City of Belmont, CA
▪ City of Burbank, CA
▪ City of Cerritos, CA
▪ City of Chino Hills, CA
▪ City of Claremont, CA
▪ City of Coalinga, CA
▪ City of Fillmore, CA
▪ City of Hayward, CA
▪ City of Indian Wells, CA
▪ City of Lynwood, CA
▪ City of Monterey, CA
▪ City of Murrieta, CA
▪ City of Petaluma, CA
▪ City of Richmond, CA
▪ City of St. Helena, CA
▪ County of San Benito, CA
▪ City of San Bruno, CA
▪ City of Irvine, CA
▪ City of Salinas, CA
▪ City of Upland, CA
▪ City of Watsonville, CA
▪ City of West Hollywood, CA
▪ City of Yucaipa, CA
Agenda Item 16.
27368 Via Industria, Suite 200
Temecula, CA 92590-4856
951.587.3500 | 800.755.6864 | Fax: 951.587.3510
www.willdan.com
Agenda Item 16.

City of Needles, CA
Comprehensive User Fee Study
Proposal for
Agenda Item 16.

T 951.587.3500 ▪ 800.755.6864 | F 951.587.3510 ▪ 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com 1 November 19, 2025
Ms. Jill Taura
Interim Finance Director
Mr. Patrick Martinez
City Manager
City of Needles
8173rd Street
Needles, CA 92363
Re: Fee Proposal to Conduct a Comprehensive User Fee Study for the City of Needles Dear Ms. Taura & Mr. Martinez,
Willdan Financial Services (“Willdan”) is pleased to present the following fee proposal to the City of Needles (“City”) for a Comprehensive User Fee Study.

This submission reflects our understanding of the City’s Request for Proposal (RFP).

Willdan is excited about this opportunity to serve the City of Needles. To discuss any aspect of our technical and/or fee proposal, please contact me directly at (951) 587-3528 or via e-mail at [email protected].

Sincerely,

WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President / Director
Agenda Item 16.

Comprehensive User Fee Study 1
City of Needles, CA
Proposed Fees/Compensation
Comprehensive User Fee Study
Willdan proposes a fixed fee of $34,845 to conduct the Comprehensive User Fee Study on the City’s behalf. The table below provides a breakdown of the fee to complete each study by task and project team member.

Notes
▪ Our fee includes all direct expenses associated with the project. ▪ We will invoice the City monthly based on percentage of project completed. ▪ If the City wishes for Willdan to attend additional in person meetings, the fee is $1,850 per meeting. ▪ City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to City or relating to the project. Reimbursement shall be at Willdan's rates in effect at the time of such response.
▪ The cost of preparing the user fee study can be included in the resulting new user fee schedule. Therefore, over time, the City can recover the initial outlay of funds that was required to complete the studies. ▪ Willdan will rely on the validity and accuracy of the City’s data and documentation to complete the analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy and will not be responsible for any errors that result from inaccurate data provided by the client or a third party.

Hourly Rates
Additional services may be authorized in writing by the City and will be billed at our then current hourly consulting rates.

Our current hourly rates are identified in the table below.

Willdan Financial Services
Hourly Rate Schedule
Position Team Member Hourly Rate Position Team Member Hourly Rate Vice President / Director Chris Fisher $310 Managing Principal $300 Principal Consultant Tony Thrasher $270 Principal Consultant Bob Quaid $270 Senior Project Manager $250 Project Manager Priti Patel $210 Senior Project Analyst $150 Senior Analyst Samantha Labitan $135 Analyst II $120 Analyst I $110
C. Fisher
Principal-inCharge
T. Thrasher
Project
Manager
P. Patel
Lead
Analyst
S. Labitan
Analytical
Support
R. Quaid
QA/Tech
Advisor Total
$ 310 $ 270 $ 210 $ 135 $ 270 Hours Cost
Scope of Services
Task 1: Initial Document Request - - 1.0 1.0 - 2.0 $ 345 Task 2: Compile Inventory of Current and Potential Fees - 1.0 1.0 1.0 - 3.0 615 Task 3: Kick-off /Refine Scope - 1.0 1.0 - - 2.0 480
Task 4: Develop User Fee Model/Incorporate Overhead Factors 1.0 5.0 10.0 16.0 1.0 33.0 6,190 Task 5: Staff Interviews and On-site Information Gathering - 4.0 8.0 8.0 - 20.0 3,840 Task 6: Data Analysis and Final Fee and Rate Schedule 1.0 5.0 32.0 40.0 1.0 79.0 14,050 Task 7: Common Fees Comparison - 1.0 3.0 8.0 - 12.0 1,980 Task 8: Prepare and Present Draft Report 0.5 2.0 2.0 8.0 1.0 13.5 2,465 Task 9: Revise Draft/Determine Cost Recovery Levels 0.5 4.0 5.0 5.0 - 14.5 2,960 Task 10: Prepare and Present Final Report/Instruct Staff on Model - 4.0 4.0 - - 8.0 1,920 Total – User Fee Study 3.0 27.0 67.0 87.0 3.0 187.0 $ 34,845 City of Needles
Comprehensive User Fee Study
Cost Proposal
Agenda Item 16.
27368 Via Industria, Suite 200
Temecula, CA 92590-4856
951.587.3500 | 800.755.6864 | Fax: 951.587.3510
www.willdan.com
Agenda Item 16.

City of Needles

REQUEST FOR PROPOSALS

FOR A COMPREHENSIVE USER FEE STUDY

Page 1 of 10 ends

Needles City CouncilDecember 9, 2025

Needles City Council
December 9, 2025