Agenda packet — Needles City Council, January 27, 2026

(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, JANUARY 27, 2026
COUNCIL EXECUTIVE SESSION – NONE
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: : 480 703 240# OR listen in and participate by calling Teams: 1-323-488-2227 - Meeting ID: : 480 703 240# The meetings are being recorded.

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

INVOCATION

APPROVAL OF AGENDA

CONFLICT OF INTEREST

CORRESPONDENCE

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

PUBLIC HEARING

1. Adopt Resolution 2026-1 of the City Council of the City of Needles Approving a Conditional Use Permit Amendment to City Council Resolution 2017-114 for a Medical Marijuana Cultivation Facility Located at 204 Bazoobuth Street (APN 0186-154-13), Including Modification of Perimeter Wall Materials and Relocation of Parking and Trash Enclosure to Adjacent Parcels (APNS 0186-154-05 And 0186-154-01). ITEM CONTINUED TO FEBRUARY 10, 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 2 through 3 on the Consent Calendar by affirmative roll call vote (ACT)

2. Approve Change Order No.1 to the Public Works Agreement with WEKA, Inc. for the Phase V Water Service Lateral Replacement Project resulting in an increase to the contract in the amount of $166,994.81 for a total contract amount of $555,933.81 and authorize staff to execute said Change Order.

3. Authorize the City Manager to execute the First Amendment to the California River Contractors Forbearance Agreement for 2024 – 2026 Conservation Agreement under the Lower Colorado Conservation and Efficiency Program

END OF NPUA CONSENT CALENDAR

REGULAR NPUA / COUNCIL ITEMS

4. Accept and file the FY 24 NPUA Financial Statements Audit (ACT)

HACN/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 HACN / City Council may pull an item from the Consent Calendar for discussion. Prior to HACN / City Council action, a member of the public may address the HACN / City Council on matters scheduled on the Consent Calendar. A three-minute time limit per person applies. RECOMMENDED ACTION: Approve Items 5 through 7 on the Consent Calendar by affirmative roll call vote. (ACT)

5. Accept the work by Golden West Fence for the Needles Housing Authority (NHA) Primary Fencing Project and Authorize Staff to Issue the Notice of Completion

6. Waive the formal bid requirement for collection services and approve the proposal and agreement with Sequoia Concepts, Inc., dba Sequoia Financial Services to provide third-party collection services for delinquent Housing Authority accounts receivable. Authorize the Executive Director to execute the agreement and make minor administrative modifications as needed, provided such changes do not affect the agreement’s intended purpose.

7. Housing Commission Update

END OF HACN / COUNCIL 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 8 through 12 on the Consent Calendar by affirmative roll call vote. (ACT)

8. Approve the Warrants Register through January 27, 2026

9. Approve the Minutes of January 13, 2026

10. Accept and file the December 2025 Treasurer’s Report

11. Adopt Resolution 2026-03 of the City Council, City of Needles, prioritizing and approving the dollar amount of Needles eligible projects for the Community Development Block Grant Funding in fiscal year 2026-2027.

12. Authorize the Mayor to sign the Informed Consent from Best Best and Krieger (BBK)

END OF COUNCIL CONSENT CALENDAR

REGULAR COUNCIL ITEMS

13. Visitor Center Operating Hours (DIS)

14. Authorize the City of Needles to host the Route 66 Centennial Celebration on November 7, 2026, and approve an event budget in an amount not-to-exceed $7,500, funded from General Fund Reserves. (ACT)

15. Adopt Resolution 2026-04 of the City Council, City of Needles, Approving a Third Amendment to the Use Permit between the City of Needles and County of San Bernardino for the City-owned property located at 1111 Bailey Avenue (ACT)

16. Authorize the City cosponsor the Run for the Wall with an approximate amount of $2,500 for services. (ACT)

17. Authorize Mayor Jernigan’s travel reimbursement and continued participation in the Mohave County Economic Development and Tourism meetings. (ACT)

18. Authorize those interested to attend the 2026 City / County Conference scheduled for early May 2026, in Lake Arrowhead (ACT)

19. Authorize those interested to attend the League of California Cities (LCC) City Leaders Summit in Sacramento April 22-24, 2026. (ACT)

20. Authorize those interested to attend the ICSC Event at the Las Vegas Convention Center on May 18-20, 2026. (ACT)

CITY ATTORNEY REPORT

CITY CLERK REPORT

CITY MANAGER REPORT
City Manager's Report for the weeks of January 9 and 16, 2026

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: January 23, 2026
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 23rd day of January 2026
/s/        Candace Clark, CPMC, CMC, City Clerk
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: January 27, 2026
Title: Approve Change Order No.1 to the Public Works Agreement with WEKA, Inc. for the Phase V Water Service Lateral Replacement Project
Background: In preparation for the upcoming Pavement Management Program, Phase V Street Improvements scheduled for FY26, staff advertised for bids for the Water Service Lateral Replacement project for streets associated with the paving. Streets for this project include the following:

LillyHill Drive (Parkway Street to Coronado Street), Peru Street (Desoto Street to Balboa Street), Cortez Street (Desoto Street to Balboa), Parkway Street (LillyHill Drive to Rio Vista Street), Coronado Street (LillyHill Drive to Cortez Street), and Balboa Street (Desoto Street to Rio Vista Street). The contract was awarded to WEKA, Inc on October 14, 2025, and work commenced in November 2025. The original bid awarded was $388,939 and $28,141.54 additional work was added during construction that was funded by the project contingency.

During construction, water crews found that several valves in the construction area were broken, creating a risk to service continuity and the City’s ability to isolate the system in an emergency water main break. Therefore, four (4) insert valves were added to this water zone to be able to isolate a water shut down if such emergency were to exist. This additional work was added to this contract as recommended by the City Contract Engineer and Chief Water Operator to install these valves prior to installing new pavement in this area. The cost associated with this work is $138,853.27 as it is specialized work from an out-of-area vendor. Insert valves require specialized installation and equipment; due to project sequencing and the paving schedule, it is not practical to rebid this work without delaying Phase V improvements.

Fiscal Impact: The FY 2026 adopted budget for the Water Capital Replacement Fund (Fund 582) includes $500,000 for the lateral replacement project, funded from Water Asset Replacement Reserves. Approval of this change order will require an additional $55,933.81 in appropriations from Water Asset Replacement Reserves.

Recommendation: Approve Change Order No.1 to the Public Works Agreement with WEKA, Inc. for the Phase V Water Service Lateral Replacement Project resulting in an increase to the contract in the amount of $166,994.81 for a total contract amount of $555,933.81 and authorize staff to execute said Change Order.

Submitted By: Kathy Raasch, Director of Development Services/Capital Projects City Manager Approval: Date: 1/22/2026
Other Department Approval (when required): Date: 01/22/2026 Agenda Item 2.

CITY OF NEEDLES

C H A N G E O R D E R
PROJECT: Phase V Water Service Replacement Project ORDER NO: 1 OWNER: City of Needles CONTRACTOR: WEKA, Inc.

FOLLOWING CHANGES ARE MADE TO THE CONTRACT:

Description of Changes Decrease Contract Price Increase Contract Price Install 1” Water Service Lateral (3 @ $2,800) $8,400
Hot Tap six (6) New Services $19,741.54
Excavate & Verify Pipe Size for Valve Inserts $10,171.80 Four (4) Valve Inserts $128,681.47
JUSTIFICATION:

Three water service lateral replacements were added to the project that were not identified on the project plans at the bid unit cost of $2,800 each for a total of $8,400.

Six (6) Hot Taps and new service installations were added to the project to separate services that either had shared service laterals or required new services for a total of $19,741.54.

Four (4) insert valves installed to isolate the water zone in this area in case of a water main leak or break in the future. Existing valves were not operable during construction and required replacement. $10,171.80 plus $128,681.47 additional for these isolation valves recommended by the City Contract Engineer.

Total additions to be funded by $38,893.90 project contingency and $128,100.91 Water Asset Replacement funds.

Original Contract Price $ 388,939.00
Previous Change Order(s) Amount $ 0.00
Original Contract Price plus previous Change Orders $ 388,939.00 Contract Price Due This Change Order $ 166,994.81
New Contract Price $ 555,933.81

CHANGE IN CONTRACT TIME
Contract Time will be
(Increased)
Adjusted Date for
Completion of all Work Calendar Days
February 6, 2026

APPROVALS REQUIRED
Requested by:

Signature (Project Manager)
Date: 01/21/26
Contractor Acceptance:

Signature (Contractor)
Date: 01/21/26
Approved by: Date: 01/27/26
Signature (City Manager) CC meeting

C H A N G E O R D E R
Agenda Item 2.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: January 27, 2026
Title: Authorize the City Manager to execute the First Amendment to the California River Contractors Forbearance Agreement for 2024 – 2026 Conservation Agreement under the Lower Colorado Conservation and Efficiency Program Background: Recently, MWD, PVID, and USBR amended the SCIA. Attached is a draft amendment to the 2024-2026 California Forbearance Agreement to cover the amended SCIA that extends the agreement for an additional 5 months through December 31, 2026.

The amendment is not objectionable. It adds to the existing system conservation from within PVID but on a voluntary basis, with a callback provision for the Metropolitan Water District, ending December 31, 2026.

The underlying 117,000 AF of system conservation is unchanged.

Enclosed is the forbearance agreement and SCIA amendment.

The Board of Public Utilities approved the recommended action on January 20, 2026.

Fiscal Impact: None
Environmental Impact: None
Recommended Action: Authorize the City Manager to execute the First Amendment to the California River Contractors Forbearance Agreement for 2024 – 2026 Conservation Agreement under the Lower Colorado Conservation and Efficiency Program
Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
1/22/2026
Agenda Item 3.
1 California Colorado River Contractors Forbearance Agreement for 2024-2026 Conservation Agreements Under the Lower Colorado Conservation and Efficiency Program
Coachella Valley Water District, Imperial Irrigation District, The Metropolitan Water District of Southern California, Palo Verde Irrigation District, and the City of Needles, each of which is a “Party” and together are the “Parties,” enter into this Agreement as follows:

Recitals
A. Each of the Parties to this Agreement is a California Colorado River contractor pursuant to a contract with the Secretary of the Interior for delivery of Colorado River water under Section 5 of the Boulder Canyon Project, which contracts, together with subsequent agreements among some or all the Parties or among some or all of the parties and the United States Department of Interior Bureau of Reclamation, and along with applicable State and Federal laws, define the rights of each Party to request and receive delivery of Colorado River water for diversion for beneficial uses within the State of California.

B. Several of the Parties are individually or collectively engaging in programs to conserve Colorado River water to assist in maintaining storage in the Colorado River reservoirs to help prevent the reservoirs from declining below critical elevations as a result of recent hydrologic conditions in the Colorado River system.

C. In 2023, the Parties entered into the California Colorado River Contractors Forbearance Agreement for 2023 Conservation Agreements Under the Lower Colorado Conservation and Efficiency Program to provide assurance that no Party would claim a right to the benefit of, the delivery of, or to the diversion of certain water conserved during 2023 in order to enable that water to increase storage in the Colorado River reservoirs.

D. The purpose of this Agreement is to provide assurance that no Party will claim a right to the benefit of, the delivery of, or to the diversion of the water conserved beginning in 2024 and through 2026 under the Conservation Programs listed below in order to enable the water conserved to increase storage in the Colorado River reservoirs.

Now THEREFORE, in consideration of the agreements and covenants herein, the Parties agree as follows:

Forbearance

1. Each of the Parties hereby forbears any claim to the benefit of, to divert, or to seek the delivery of Colorado River water conserved by any of the following programs (“Conservation Programs”):
a. The System Conservation Implementation Agreement (SCIA) between the United States Bureau of Reclamation and the Coachella Valley Water District to Implement the Lower Colorado Conservation and Efficiency Program (LC Conservation Program) based upon temporary and Docusign Envelope ID: 60BD561E-1652-4652-B775-487667C02669 Agenda Item 3.
2 compensated conservation of Colorado River water historically used to recharge groundwater aquifers, SCIA No. 23-XX-30-W0764 dated July 24, 2023 (up to 35,000 acre-feet/year in 2024 and 2025).
b. The System Conservation Implementation Agreement between the United States Bureau of Reclamation and the Coachella Valley Water District to Implement the Lower Colorado Conservation and Efficiency Program (LC Conservation Program) based upon temporary and compensated conservation of Colorado River water historically used for irrigation of lands within Coachella Valley Water District, SCIA No. 23-XX-30-W0821 dated March 28, 2024 (up to 10,000 acre-feet/year from 2024-2026).
c. The System Conservation Implementation Agreement between the United States Bureau of Reclamation and The Metropolitan Water District of Southern California to implement a Lower Colorado Conservation and Efficiency Program (LC Conservation Program) based upon temporary and compensated conservation of Colorado River water historically used for irrigation of lands within the Palo Verde Irrigation District, SCIA No. 23-XX-30-W0772 dated December 13, 2023 (up to 117,021 acre-feet/year from 2024-2026). d. The System Conservation Implementation Agreement between the United States Bureau of Reclamation and the Imperial Irrigation District to implement a Lower Colorado Conservation and Efficiency Program (LC Conservation Program) based upon temporary and compensated conservation of Colorado River water historically used for irrigation of lands within Imperial Irrigation District’s service area, SCIA No. 24-XX-30-W0825 dated August 26, 2024 (up to 300,000 acre-feet/year with a cumulative total not to exceed 700,000 acre-feet from 2024-2026). e. The System Conservation Implementation Agreement among the United States Bureau of Reclamation, The Metropolitan Water District of Southern California, and the Bard Water District to implement a Lower Colorado Conservation and Efficiency Program (LC Conservation Program) based upon temporary and compensated conservation of Colorado River water historically used for irrigation of lands within Bard Water District, SCIA No. 23-XX-30-W0773 dated September 23, 2024 (up to 5,700 acre-feet/year from 2024-2026).

2. Imperial Irrigation District, The Metropolitan Water District of Southern California, Palo Verde Irrigation District, and the City of Needles, each hereby forbears any claim to the benefit of, to divert, or to seek the delivery of Colorado River water conserved during 2024 and 2025 by the following Conservation Program:
a. The System Conservation Implementation Agreement between the United States Bureau of Reclamation and The Metropolitan Water District of Southern California to implement a Lower Colorado Conservation and Efficiency Program (LC Conservation Program) based upon temporary and compensated conservation of Colorado River water historically used for irrigation of lands within the Quechan Indian Reservation in California, SCIA No. 23-XX-30-W0783 dated December 13, 2023, and as amended on November 12, 2024 (up to 13,000 acre-feet per year in 2024-2026).

Docusign Envelope ID: 60BD561E-1652-4652-B775-487667C02669 Agenda Item 3.
3 3. The forbearance given by this Agreement as to the Conservation Programs identified in Sections 1 and 2 above shall be for the benefit of each of the Parties and shall also be for the benefit of the United States Department of Interior, Bureau of Reclamation. This Agreement does not create any third-party beneficiary rights in any person other than the Parties and the United States Department of the Interior, Bureau of Reclamation.

4. The Parties’ forbearance under this Agreement is conditioned upon the annual verification of the conserved water after a workgroup consultation between the United States Department of Interior, Bureau of Reclamation, The Metropolitan Water District of Southern California, Imperial Irrigation District, and Coachella Valley Water District. Any objection must be conveyed in writing within twenty-one (21) days following the consultation.

CVWD Limitation

5. Coachella Valley Water District hereby reaffirms its commitment made in paragraph 6 of the Drought Contingency Plan Implementation Agreement Between The Metropolitan Water District of Southern California and Coachella Valley Water District dated May 20, 2019.

Agreement Is Non-Precedential, Contains No Admissions, and Modifies No Other Agreements

6. The Parties agree that this Agreement shall not in any matter constitute a precedent as to the following:
(a) any right, obligation, or authority of any Party to engage in a conservation program; (b) any methodology used to establish a baseline of consumptive use by which conservation for a program is measured or established in any future year; and (c) the quantity of water or the proportion of reduction of contractual entitlement that an agency may be required to conserve or not divert, during any declared shortage.

7. The Parties agree that the reference to “forbearance” in this Agreement does not constitute an admission by any Party that any Party actually has a legal right to claim the conserved water created by any other Party in the absence of a forbearance agreement.

8. Some of the Parties are parties to other agreements among themselves and others relating to drought or shortages on the Colorado River. Nothing in this Agreement expressly or implicitly amends, modifies, or conflicts with the provisions of any of those other such agreements.

Term

9. This Agreement shall be effective when signed by two or more Parties as between the initial signatory Parties and shall be binding upon a subsequent signatory Party as of the date of signature of that Party.

Docusign Envelope ID: 60BD561E-1652-4652-B775-487667C02669 Agenda Item 3.
4 10. The obligations related to the forbearance of conserved water conserved relating to the Conservation Programs under this Agreement shall terminate on May 31, 2027. Otherwise, the provisions of this Agreement shall remain enforceable.

Miscellaneous

11. The rights and obligations under this Agreement do not commit any Party to engage in the creation of conserved water under the Conservation Programs identified in Section 1 above.

12. Each Party represents and warrants that each person or persons executing this Agreement on its behalf is duly authorized to do so by the respective Party and that this Agreement binds that Party.

13. This Agreement may be executed in counterparts, each which is an original, but all of which together will constitute one and the same instrument.
[Signatures on following page]
Docusign Envelope ID: 60BD561E-1652-4652-B775-487667C02669 Agenda Item 3.
5 The Parties are signing this Agreement as of the dates indicated below:

Approved as to form:
_______________________________
General Counsel
Approved as to form:
_______________________________
Legal Counsel
Approved as to form:
_______________________________
General Counsel
Approved as to form:
_______________________________
Legal Counsel
Approved as to form:
_______________________________
City Attorney

THE METROPOLITAN WATER DISTRICT

OF SOUTHERN CALIFORNIA
_______________________________
General Manager

COACHELLA VALLEY WATER DISTRICT
_______________________________
General Manager

IMPERIAL IRRIGATION DISTRICT
_______________________________
General Manager

PALO VERDE IRRIGATION DISTRICT
_______________________________
General Manager

CITY OF NEEDLES
_______________________________
City Manager
Docusign Envelope ID: 60BD561E-1652-4652-B775-487667C02669 Agenda Item 3.

Agenda Item 3.

First Amendment to the California Colorado River Contractors Forbearance Agreement for 2024-2026 Conservation Agreements Under the Lower Colorado Conservation and Efficiency Program
A. On or about November 19, 2024, Coachella Valley Water District, Imperial Irrigation District, The Metropolitan Water District of Southern California (Metropolitan), Palo Verde Irrigation District (PVID), and the City of Needles (the Parties) entered into an agreement titled “California Colorado River Contractors Forbearance Agreement for 2024-2026 Conservation Agreements Under the Lower Colorado Conservation and Efficiency Program” (Forbearance Agreement).

B. The Agreement provides forbearance for several system conservation agreements, including an agreement entered into by Metropolitan and the United States Bureau of Reclamation (Reclamation) on December 20, 2023, titled “System Conservation Implementation Agreement (SCIA) Between the United States Bureau of Reclamation and The Metropolitan Water District of Southern California, to Implement the Lower Colorado Conservation and Efficiency Program (LC Conservation Program)” (SCIA), SCIA No. 23-XX-30-W0772, dated December 13, 2023 (up to 117,021 acrefeet/year from 2024-2026).

C. On December 5, 2025, Metropolitan and Reclamation entered into Amendment No. 1 to the SCIA. Under Amendment No. 1 to the SCIA, Reclamation provides funding to Metropolitan to create system conservation water from August 1, 2026 through December 31, 2026 on a voluntary basis that would otherwise accrue to Metropolitan under the Fallowing Program for up to 36,066 acre-feet from August 1, 2026 through December 31, 2026. On or about December 5, 2025, PVID provided its written concurrence with Amendment No. 1 to the SCIA.

D. The Parties desire to incorporate Amendment No. 1 to SCIA No. 23-XX-30- W0772 in the Forbearance Agreement.

Therefore, the Parties hereby amend the Forbearance Agreement by deleting Section 1c in its entirety and replace it with the following:

The System Conservation Implementation Agreement between the United States Bureau of Reclamation and The Metropolitan Water District of Southern California to implement a Lower Colorado Conservation and Efficiency Program (LC Conservation Program) based upon temporary and compensated conservation of Colorado River water historically used for irrigation of lands within the Palo Verde Irrigation District, SCIA No. 23- XX-30-W0772 dated December 13, 2023, as revised by Amendment 1 to the SCIA (up to 117,021 acre-feet/year from 2024-2026 and up to 36,066 acre-feet from August 1, 2026 through December 31, 2026).

Agenda Item 3.

THE METROPOLITAN WATER DISTRICT

OF SOUTHERN CALIFORNIA
_______________________________
General Manager

COACHELLA VALLEY WATER DISTRICT
_______________________________
General Manager

IMPERIAL IRRIGATION DISTRICT
_______________________________
General Manager

PALO VERDE IRRIGATION DISTRICT
_______________________________
General Manager

CITY OF NEEDLES
_______________________________
City Manager
Agenda Item 3.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: January 27, 2026
Title: Presentation by Vasquez & Company LLP of the NPUA audit report for the fiscal year ended June 30, 2024
Background: The Public Utility Board has accepted the final audit report on January 20, 2026.

The fiscal year 2023/24 NPUA audit report has been completed by Vasquez & Company LLP. The audit report will be presented via teleconference.

Attached are the 2024 Financial Audit Results Presentation materials, and audit report for the fiscal year ended June 30, 2024.

Fiscal Impact: None
Recommendation: Accept and file the FY 24 NPUA Financial Statements Audit Submitted By: Mark DeMay, Director of Finance and Administrative Services City Manager Approval: Date:

Other Department Approval (when required): Date:
1/22/2026
Agenda Item 4.

REPORT TO THE

BOARD OF PUBLIC UTILITIES
January 20, 2026
Agenda Item 4.
1 / Introduction
To the Honorable Members of the Board of Public Utilities Needles Public Utility Authority
We are pleased to present this report related to our audit of the financial statements of Needles Public Utility Authority (the Authority) as of and for the year ended June 30, 2024. This report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for the Authority’s financial reporting process, as well as other matters that we believe may be of interest to you. Our audit of the financial statements does not relieve management or those charged with governance of their responsibilities.

This report is intended solely for the information and use of the Board of Public Utilities and Management, and is not intended to be, and should not be, used by anyone other than these specified parties. It will be our pleasure to respond to any questions you have regarding this report. We appreciate the opportunity to be of service to the Authority.

Agenda Item 4.
2 Engagement Team 3
Independence 4
Scope of Engagement 5
Summary of Audit Results 6
9 Auditor’s Required Communications to Those Charged with Governance
New Accounting Pronouncements – GASB Implementation 13
Questions 14
Contact Information 15
/ Table of Contents
Agenda Item 4.
3 / Engagement Team
Roger Martinez, CPA
Engagement Partner
Sam Tolentino, CPA
Audit Manager
Needles Public Utility Authority Engagement Team
Cristy Canieda, CPA, CGMA
Quality Control Partner
Isidro (Cid) Conde, CPA
Engagement Director
Rachel Anne A. Francisco - Estoque
Audit Associate Manager
Jeny Felipe
Eileen Bacaltos
Senior Auditors
Agenda Item 4.
4 / Independence
There are no relationships between any of our
representatives and the Authority that in our professional judgment may reasonably be thought to bear on
independence.

Vasquez & Company LLP meets the independence
requirements of the Government Auditing Standards as
it relates to the Authority.

Agenda Item 4.
5 / Scope of Engagement

FINANCIAL STATEMENTS AUDIT
• In accordance with Generally Accepted Government Auditing Standards • As of and for the year ended June 30, 2024
Agenda Item 4.
6 / Summary of Audit Results
Agenda Item 4.
7 / Independent Auditor’s Report
Unmodified
“Clean” Opinion
Audit performed in
accordance with auditing
standards generally accepted
in the United States of
America and the standards
applicable to financial audits
contained in Government
Auditing Standards
The financial statements present fairly, in all material respects, Needles Public Utility Authority:

Cash flows Changes in
net position
Results of
operations Financial position
Financial Statements Audit – UNMODIFIED OPINION – “Clean” Opinion Agenda Item 4.
8 Report on Internal Control Over Financial Reporting and on Compliance Material weakness(es) None noted
Significant
Deficiency on
Internal Controls
over Inventories
Significant deficiency
Noncompliance material to the financial statements None noted / Independent Auditor’s Report, Continued
Agenda Item 4.
9 / Auditor’s Required
Communication to Those
Charged with Governance
(AU-C 260)
Agenda Item 4.
10 Management has primary responsibility for the accounting principles used, including their consistency, application, clarity and completeness.

Management’s
Responsibility
The Authority’s significant accounting policies are appropriate, and management has applied its policies consistently with prior periods in all material respects.

Significant
Accounting
Policies
No significant or unusual transactions or accounting policies in controversial or emerging areas for which there is lack of authoritative guidance or consensus were identified.

Controversial
issues
The financial statements were prepared on the assumption that the Authority will continue as a going concern.

Basis of
Accounting
/ Required Communication to Those Charged
with Governance
Agenda Item 4.
11 Audit adjustments, other than those that are clearly trivial, proposed by us were recorded by the Authority.

Audit Adjustments
We encountered no disagreements with management on financial accounting and reporting matters as it relates to the current year financial statements.

Disagreements
with Management
We are not aware of any consultations management had with other accountants about accounting and auditing matters.

Consultations with
Other Accountants
No significant issues were discussed, or subject to correspondence, with management prior to retention.

Conditions of
Retention
/ Required Communication to Those Charged
with Governance, Continued
Agenda Item 4.
12 We did not encounter any difficulties with management while performing our audit procedures that require the attention of the Board.

Difficulties with
Management
A significant deficiency on internal controls over inventories was identified related to the controls in place in relation to withdrawal and purchases of inventories, and update of inventory unit cost. This is a reiteration of the prior year finding and the Authority committed to address this finding on or before June 30, 2026. Details of the significant deficiency noted is reported starting on page 37 of the audit report. No material weaknesses in internal controls were identified.

Material Weakness
and Significant
Deficiency
No irregularities, fraud or illegal acts or that would cause a material misstatement of the financial statements, came to our attention as a result of our audit procedures.

Irregularities,
Fraud or Illegal
Acts
The Authority provided us with a signed copy of the management representation letter at the end of the audit and prior to our issuance of the report on financial statements.

Management
Representations
/ Required Communication to Those Charged
with Governance, Continued
Agenda Item 4.
13 New Accounting
Pronouncements
– GASB
Implementation
To be implemented in FY2025 and FY2026
• GASB Statement No. 101, Compensated Absences
(effective for fiscal year 2025) • GASB Statement No. 102, Certain Risk Disclosures (effective for fiscal year 2025) • GASB Statement No. 103, Financial Reporting Model Improvements
(effective for fiscal year 2026). • GASB Statement No. 104, Disclosure of Certain Capital Assets (effective for fiscal year 2026)
Agenda Item 4.
14 QUESTIONS
Agenda Item 4.

Vasquez + Company LLP has over 50 years of
experience in performing audit, tax, accounting, and
consulting services for all types of nonprofit
organizations, governmental entities, and private
companies. We are the largest minority-controlled
accounting firm in the United States and the only
one to have global operations and certified as MBE
with the Supplier Clearinghouse for the Utility
Supplier Diversity Program of the California Public
Utilities Commission.

We are clients of the RSM Professional Services+
Practice. As a client, we have access to the
Professional Services+ Collaborative, a globally
connected community that provides access to an
ecosystem of capabilities, collaboration and
camaraderie to help professional services firms
grow and thrive in a rapidly changing business
environment. As a participant in the PS+
Collaborative, we have the opportunity to interact
and share best practices with other professional
services firms across the U.S. and Canada.
/ Contact Information
15 Roger Martinez, CPA
O: +1.213.873.1703
[email protected]
Isidro (Cid) Conde, CPA
O: +1.213.873.1730
[email protected]
Cristy Canieda, CPA, CGMA
O: +1.213.873.1720
[email protected]
Sam Tolentino, CPA
O: +1.213.873.1714
[email protected]
www.vasquez.cpa
Agenda Item 4.
16 Thank you for your
time and attention!
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Audited Financial Statements
As of and for the Year Ended June 30, 2024
with Independent Auditor’s Report
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Table of Contents
PAGE
INDEPENDENT AUDITOR'S REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) 4

BASIC FINANCIAL STATEMENTS
Statement of Net Position 10
Statement of Revenues, Expenses, and Changes in Net Position 11 Statement of Cash Flows 12
Notes to Financial Statements 13

SUPPLEMENTARY SCHEDULES
Combining Schedule of Net Position 33
Combining Schedule of Revenues, Expenses, and Changes in Net Position 34 Combining Schedule of Cash Flows 35
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 36
Agenda Item 4.
1 Independent Auditor’s Report
The Board of Public Utilities
Needles Public Utility Authority
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Needles Public Utility Authority (the Authority), a component unit of the City of Needles, California, which comprise the statement of net position as of June 30, 2024, the related statement of revenues, expenses and changes in net position, and cash flows for the year then ended, and the related notes to the financial statements, (collectively, the Authority’s basic financial statements).

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Authority as of June 30, 2024, and the changes in its net position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the State Controller’s Minimum Audit Requirements for California Special Districts. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Management’s Responsibilities for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Agenda Item 4.
2 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Agenda Item 4.
3 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s discussion and analysis on pages 4 through 9, be presented to supplement the basic financial statements. Such information is the responsibility of management, and although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Authority’s basic financial statements. The accompanying combining schedules of net position, revenues, expenses and changes in net position, and cash flows, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 5, 2025, on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

Glendale, California
December 5, 2025
Agenda Item 4.

MANAGEMENT'S DISCUSSION AND ANALYSIS
(UNAUDITED)
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)
June 30, 2024
4 As Management of the Needles Public Utility Authority (the Authority), we offer readers of the Authority's financial statements this narrative overview and analysis of the Authority's financial performance during the fiscal year ended June 30, 2024. Please read it in conjunction with the Authority's financial statements, which follow this section.

FINANCIAL HIGHLIGHTS
• The total net position amounted to $26.585 million and $17.332 million, as of June 30, 2024 and 2023, respectively. The increase of $9.253 million or 53.39% in the current year was primarily due to an increase in capital contributions and adjustment of pension-related accounts. • Operating revenues amounted to $21.068 million and $16.746 million in 2024 and 2023, respectively. The increase of $4.322 million or 25.81% in 2024 was due to higher consumption and usage and increases in utility rates.
• Operating expenses (excluding depreciation) amounted to $15.751 million and $14.389 million in 2024 and 2023, respectively. The increase of $1.362 million or 9.47% in 2024 was primarily due to the payment to the California Energy Commission’s renewable portfolio standard for Renewable Energy Certificates for the compliance period covering years 2021-2024.

Overview of the Financial Statements
This annual report includes the management's discussion and analysis report, the independent auditors' report, the Authority's basic financial statements, and the supplementary schedules.

The financial statements also include notes that explain in more detail some of the information in the financial statements.

Required Financial Statements
The Authority's financial statements report information using accounting methods like those used by private sector companies. These statements offer both short-term and long-term financial information about its activities. The Statement of Net Position includes all the Authority's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, and provides information about the nature and amount of investments in resources (assets), and the obligations to creditors (liabilities). It also provides the basis for evaluation of the capital structure of the Authority and assessing the liquidity and financial flexibility of the Authority.

All the revenues and expenses for the year are accounted for in the Statement of Revenues, Expenses and Changes in Net Position. This Statement measures the success of the Authority's operations over the past two years and can be used to determine whether the Authority has successfully recovered its costs, through its fees and other charges, profitability, and creditworthiness.

The final required financial statement is the Statement of Cash Flows. This statement reports cash receipts, cash payments, and net changes in cash resulting from operations, investing, and financing activities, and provides answers to such questions as sources of cash coming in, what expenditures cash was used for, and the change in the cash balance during the reporting periods.

Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)(Continued) June 30, 2024
5 Financial Analysis of the Authority
One of the most important questions asked about the Authority's finances is "Is the Authority, as a whole, better off, or worse off as a result of the year's activities?”. The Statement of Net Position, and the Statement of Revenues, Expenses and Changes in Net Position will help answer this question.

These two statements report the net position of the Authority, and changes in them.

One can think of these changes as indicators of whether the financial health is improving or deteriorating. However, one should also consider other factors, such as changes in the economy, population growth, and if there is any new governmental legislation.

We begin our analysis with a summary of the Authority's Statement of Net Position. 2024 2023
Dollar
Change
Percent
Change
Assets
Current and other assets $ 16,917 $ 14,046 $ 2,871 20.44% Capital and intangible assets 31,384 26,050 5,334 20.48% Total assets 48,301 40,096 8,205 20.46%
Deferred outflows of resources 1,129 1,089 40 3.67%
Liabilities
Long-term debt 19,476 20,368 (892) -4.38%
Other liabilities 3,308 3,371 (63) -1.87%
Total liabilities 22,784 23,739 (955) -4.02%
Deferred inflows of resources 61 114 (53) -46.49%
Net Position
Net investment in capital and intangible assets 16,222 9,728 6,494 66.76% Restricted for debt service 6,858 6,321 537 8.50%
Unrestricted 3,505 1,283 2,222 173.19%
Total net position $ 26,585 $ 17,332 $ 9,253 53.39%
Condensed Statement of Net Position
(000’s)
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)(Continued) June 30, 2024
6 The $9.253 million increase in total net position in 2024, versus an increase of $5.018 million in 2023, reflects the combination of increase in operating revenues and increase in capital contributions. The higher operating revenues in 2024 were due to increased consumption and usage and increases in utility rates in FY2024.

While the Statements of Net Position show the changes in financial position, the Statements of Revenues, Expenses and Changes in Net Position provide answers as to the nature of and source of these changes.
2024 2023
Dollar
Change
Percent
Change
Revenues
Operating revenues $ 21,068 $ 16,746 $ 4,322 25.81%
Nonoperating revenues 149 67 82 122.39%
Total revenues 21,217 16,813 4,404 26.19%
Expenses
Depreciation and amortization 1,540 1,372 168 12.24%
Other operating expenses 15,754 14,389 1,365 9.49%
Nonoperating expenses 951 976 (25) -2.56%
Total expenses 18,245 16,737 1,508 9.01%
Income before contributions and
transfers 2,972 76 2,896 3810.53%
Capital contributions 6,931 5,781 1,150 19.89%
Transfers (650) (839) 189 -22.53%
Changes in net position 9,253 5,018 4,235 84.40%
Net position at beginning of year 17,332 12,314 5,018 40.75% Net position at end of year $ 26,585 $ 17,332 $ 9,253 53.39% Condensed Statement of Revenues, Expenses, and Changes in Net Position (000’s)
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)(Continued) June 30, 2024
7 The Authority's capital plan for the ensuing 10 years includes various capital and deferred maintenance projects, which include, but are not limited to the following:

ELECTRIC DEPARTMENT
• Cure Farms substation.
• Pole yard equipment steel building
• Advanced Metering Infrastructure (AMI) project.
• Wire trailer
• Mohave Line rehabilitation
• Park Moabi Line Upgrade
• Street light LED phase out program
• Double bucket truck
• South Hwy 95 Substation (cemetery site)
• Eagle Pass to Cemetery site Line Upgrade
• 230kv line

WATER DEPARTMENT
• Well No. 11 Treatment
• 1.5 MG of reservoir capacity
• Water services replacement – fourth year street paving • Water services replacement – fifth year street paving • Replace deteriorating pipe in Monterey & Arizona Avenues • Replace deteriorating pipe in Chesney’s subdivision
2024 2023
Dollar
Change
Percent
Change
Costs
Land $ 3,381 $ 3,199 $ 182 5.69%
Utility plant 48,586 42,588 5,998 14.08%
Right-of-use lease asset 236 236 - 0.00%
Construction in progress 5,992 5,374 618 11.50%
Total costs 58,195 51,397 6,798
Accumulated depreciation 29,213 27,768 1,445 5.20%
Net capital assets $ 28,982 $ 23,629 $ 5,353 22.65%
Capital Assets
(000’s)
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)(Continued) June 30, 2024
8 • Replace deteriorating pipe in Coronado Street area
• Replace deteriorating pipe in Chestnut Street area
• Replace deteriorating pipe in Casa Linda Street area
• Replace deteriorating pipe in River Road area
• Main replacement in the Vista Street area & new services • AMI meters
• Golf course maintenance yard main distribution manifold • Jet Vac / Trailer
• Main replacement at Verde Shores
• Extension into North Needles
• Fire hydrant replacements

WASTEWATER DEPARTMENT
• Railroad crossing at Bazoobuth
• Plant grit separator
• Upsize deficient sewer lines on T Street to Front Street • Upsize deficient sewer lines on 15 blocks of Front Street • Jet Vac trailer
• Mini excavator & tilt trailer
• Upsize effluent pump
• North Needles sewer line extension
• Manhole rehab program (ongoing)
• Manhole replacement and upsize project
• Bazoobuth lift station pump replacement
• North Needles sewer line extension
During the current fiscal year, the Authority carried out several capital and maintenance projects for the Water department, as follows:
• Well No. 11 Treatment
• Stand by Generator & ATS-Well 15
• Waterline Inter-Tie 11-15
Long-term Debt
Total indebtedness (all liabilities) outstanding at June 30, 2024, and 2023 amounted to $22.784 million and $23.739 million, respectively. The decrease in total liabilities was primarily due to payments of debt. More detailed information about the Authority’s long-term liabilities is presented in Note 7 of the financial statements.

Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Management's Discussion and Analysis (Unaudited)(Continued) June 30, 2024
9 Economic Factors and Power Rates
The Authority's cost for electricity is dependent upon the open market prices. Since 2008 the Authority has been purchasing its power from the Western Area Power Administration (WAPA), and energy costs decreased substantially because of this contract, from their peak in 2006 and 2007. In September 2020, the City of Needles, on behalf of the Authority, entered into Amendment No. 6 to Contract No. 00-DSR-11223 among United States Department of Energy Western Area Power Administration Desert Southwest Service Region (“WAPA”), Parker-Davis Project, SLCA Integrated Projects, Boulder Canyon Project and Yuma County Water Users’ Association and Wellton-Mohawk Irrigation and Drainage District and Eastern Arizona Preference Pooling Association for Aggregated Energy Services (“AES”) (through WAPA) that accommodates aggregation of all member resources (hydroelectric and thermal electric) subject to transmission arrangements. There is an opportunity for Needles to receive excess Wellton-Mohawk Irrigation and Drainage District Federal Energy Services (“FES”) hydro at a pre-negotiated cost, based on the FES rate (exchanges cannot be made at a rate greater than the FES rate). Those hydro deliveries will be deemed “specified” resources and will not be subject to Cap and Trade penalties.

Contacting the Authority's Financial Manager
This financial report is designed to provide our customers and creditors with a generalized overview of the Authority's finances and to demonstrate the Authority's accountability for the money it receives.

If you have questions about this report, or if additional financial information is needed, please contact the Needles Public Utility Authority, Director of Finance, 817 Third Street, Needles, California 92363.

Agenda Item 4.

BASIC FINANCIAL STATEMENTS
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Statement of Net Position
June 30, 2024
See accompanying notes to financial statements.
10 Current assets
Cash and investments $ 6,857,694
Accounts receivables, net 3,806,926
Notes receivable, current portion -
Due from City of Needles 5,044,547
Materials and supplies inventory 1,039,089
16,748,256
Noncurrent assets
Notes receivable 168,441
Capital assets, net of accumulated depreciation 28,981,598 Intangible assets, net of accumulated amortization 2,402,772 31,552,811
Total assets 48,301,067
Deferred outflows related to pensions 1,102,416
Deferred outflows related to OPEB 26,724
Total deferred outflows of resources 1,129,140
Current liabilities
Lease liability, current portion 51,101
Accounts payable and other current liabilities 196,339
Due to the City of Needles 30,246
Compensated absences 230,122
Customer deposits 2,709,595
Accrued interest payable 141,117
Bonds and notes payable, current portion 1,272,074
4,630,594
Noncurrent liabilities
Lease liability, net of current portion 68,966
Net pension liability 2,478,277
Net OPEB liability 526,945
Bonds and notes payable, net of current portion 15,078,996 Total noncurrent liabilities 18,153,184
Total liabilities 22,783,778
Deferred inflows related to pensions 61,445
Net position
Net investment in capital and intangible assets 16,221,949 Restricted for debt service 6,857,694
Unrestricted 3,505,341
Total net position $ 26,584,984

DEFERRED INFLOWS OF RESOURCES

DEFERRED OUTFLOWS OF RESOURCES
Total current liabilities
ASSETS
Total current assets
Total noncurrent assets

LIABILITIES AND NET POSITION
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Statement of Revenues, Expenses and Changes in Net Position Year ended June 30, 2024
See accompanying notes to financial statements.
11 Operating revenues
Sales of electricity $ 14,890,864
Sales of water 3,937,189
Charges for wastewater system use 2,197,020
Other revenues 43,424
Total operating revenues 21,068,497
Operating expenses
Operations and maintenance 8,392,509
Electric power purchased 6,539,507
Depreciation and amortization 1,539,936
Fair share allocation 821,803
Total operating expenses 17,293,755
Operating income 3,774,742
Nonoperating revenues (expenses)
Interest expense (951,623)
Interest and investment revenue 149,227
Net nonoperating expenses (802,396)
Income before contributions and transfers 2,972,346
Capital Contributions 6,930,945
Operating transfers
Transfers to the City (650,064)
Change in net position 9,253,227
Net position at beginning of year 17,331,757
Net position at end of year $ 26,584,984
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Statement of Cash Flows
Year ended June 30, 2024
See accompanying notes to financial statements.
12 Cash flows from operating activities
Receipts from customers $ 19,734,844
Payments to City of Needles:

Suppliers and other costs (14,093,461)
Employee compensation and related costs (2,422,257)
Net cash flows provided by operating activities 3,219,126 Cash flows from capital and related financing activities Capital contributions 6,930,945
Cash paid for lease (48,925)
Purchases of capital assets (6,874,623)
Principal paid on capital debt (1,220,349)
Interest paid on capital debt (968,873)
Net transfers for asset replacement reserves (650,064)
Cash flows used in capital and related financing activities (2,831,889) Cash flows from investing activity
Interest and investment revenue 149,227
Cash flows from investing activity 149,227
Net increase in cash and investments 536,464
Cash and investments at beginning of year 6,321,230
Cash and investments at end of year $ 6,857,694
Reconciliation of operating income to net cash flows
used in operating activities
Operating income $ 3,774,742
Adjustments to reconcile operating income to net cash
from operating activities:

Depreciation and amortization 1,539,936
Changes in operating assets and liabilities:

Receivables (1,196,514)
Materials and supplies inventory (209,539)
Deferred outflows of resources (40,355)
Deferred inflows of resources (52,697)
Accounts payable and other current liabilities (10,317) Due from (to) the City of Needles (917,000)
Compensated absences (8,495)
Customer deposits (38,263)
Net pension liability 340,075
Net OPEB liability 37,553
Net cash flows provided by operating activities $ 3,219,126 Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements
Year ended June 30, 2024
13 NOTE 1 REPORTING ENTITY
Organization and Operations of the Reporting Entity
The financial statements of the Needles Public Utility Authority (the Authority) have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The Authority was formed by a Joint Powers Agreement, entered into on June 6, 1997, between the City of Needles, California (City) and the Redevelopment Agency of the City of Needles (Agency). Pursuant to the provisions of ABX126, the Agency was dissolved effective February 1, 2012. After the Agency was dissolved, the Authority was reorganized as a Joint Powers Agreement between the City and the Needles Public Financing Authority.

The Authority was formed for the purpose of acquiring and operating the City’s water, sewer and electrical enterprises. The Authority is governed by a Commission, the members of which are also members of the City Council. The Authority has no employees; its day-to-day activities and operations are performed by City employees under a management agreement with the City. The Authority is a blended component unit of the City.

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting and Measurement Focus
The financial statements of the Authority are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) issued by the Governmental Accounting Standards Board (GASB) applicable to governmental entities that use proprietary fund accounting.

The Authority reports its activities as an enterprise fund, which is used to account for operations that are financed and operated in a manner similar to a private business enterprise, where the intent of the Authority is that the costs of providing electricity, water and wastewater services, collection, and treatment for its service areas on a continuing basis be financed or recovered primarily through utility charges, capital grants and similar funding. Revenues and expenses are recognized on the full accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned, and expenses are recognized in the period incurred, regardless of when the related cash flows take place.

Operating revenues and expenses, such as electric, water and sewer charges, result from exchange transactions associated with the principal activity of the Authority.

Exchange transactions are those in which each party receives and gives up essentially equal values. Management, administration, and depreciation expenses are also considered operating expenses. Other revenues and expenses not included in the above categories are reported as non-operating revenues and expenses.

Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
14 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial Reporting
The following recent accounting pronouncements are not yet applicable to the Authority for the year ended June 30, 2024.

GASB 101, "Compensated Absences", effective for fiscal years beginning after December 15, 2023.

GASB 102, "Certain Risk Disclosures", effective for fiscal years beginning after June 15, 2024.

GASB 103, "Financial Reporting Model Improvements", effective for fiscal years beginning after June 15, 2025.

GASB 104, " New Capital Asset Disclosures", effective for fiscal years beginning after June 15, 2025.

Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position The basic financial statements are comprised of the statement of net position, the statement of revenues, expenses, and changes in net position, the statement of cash flows, and the related notes to the financial statements.

Cash and Cash Equivalents
Cash and cash equivalents include cash on hand and in banks, money market accounts and deposits with the Local Agency Investment Fund (LAIF), and also certificates of deposit and U.S. Treasury bills with maturities of less than 90 days when purchased. It also includes money market accounts in deposits held by the bond trustee that are not restricted.

Investments
Investments are generally reported at fair value. Investments in the LAIF are reported at amortized cost, which approximates fair value.

Accounts Receivables
The Authority extends credit to customers in the normal course of operations.

Management closely monitors outstanding balances and based on collection experience, has determined receivables that are doubtful of collection. Allowances for doubtful accounts as at June 30, 2024 were estimated at $395,125. Receivables also includes accrued interest receivable of $35,389 from its LAIF investment, representing interest earned but not yet received as at June 30, 2024.

Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
15 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position (Continued)
Inventories
Inventories are recorded at average cost, which approximates net realizable value.

Inventories consist of expendable supplies held for consumption. The cost is recorded as an expense at the time individual inventory items are consumed rather than when purchased.

Capital Assets
Capital assets are defined by the Authority as assets with an initial, individual cost of more than $5,000 and with an estimated useful life in excess of one year.

Capital assets of the Authority are recorded at either their historical cost or at an allocation of the utility plant purchase price, based on appraisal values at January 1, 1997. Donated assets are valued at their estimated fair value on the date donated.

Depreciation for all exhaustible capital assets is charged as an expense against operations.

Depreciation is computed using the straight-line method over estimated useful lives of the assets as follows:

Buildings 20 – 40 years
Improvements 20 – 40 years
Utility Plant 15 – 30 years
Equipment 3 – 10 years
Major additions and betterments are capitalized while expenditures for maintenance and repairs that do not add value to the assets and materially extend asset lives are charged to operations as incurred.

Right-of-Use Lease Assets and Lease Payable
The Authority recorded right-of-use lease assets and lease payable as a result of implementing GASB Statement No. 87, Leases. The right-of-use lease assets are initially measured at an amount equal to the related lease liability plus any lease payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary to place the lease into service. The lease assets are amortized on a straight-line basis over the term of the related leases or the useful life of the underlying assets, whichever is shorter.

Deposits
Customer deposits represent deposits held by the Authority as collateral in the event of non- payment for service rendered.

Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
16 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position (Continued)
Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pension, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS.

For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The City allocates about 42.17% of the net pension liability and pension-related transactions to the Authority based on its share in the pension contribution for the year ended June 30, 2024.

GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
• Valuation Date: June 30, 2022
• Measurement Date: June 30, 2023
• Measurement Period: July 1, 2022 to June 30, 2023
Other Post-Employment Benefits Other Than Pensions (OPEB) The Authority’s OPEB Plan benefits are paid on pay-as-you-go basis. There is no OPEB Trust established that meets the criteria in paragraph 4 of GASB Statements

75. GASB 75 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
• Valuation Date: June 30, 2023
• Measurement Date: June 30, 2023
• Measurement Period: July 1, 2022 to June 30, 2023
The City allocates about 42.17% of the net OPEB liability and OPEB-related transactions to the Authority based on its share in the OPEB contribution for the year ended June 30, 2024.

Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
17 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position (Continued)
Deferred Outflows and Inflows of Resources
In addition to assets, the statement of net position includes a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/ expenditure) until then. In addition to liabilities, the statement of net position includes a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time.

Compensated Absences
As discussed in Note 13, the Authority has a management agreement with the City concerning employees and their compensation.

All earned vacation, holiday, compensatory time off, and a portion of accumulated sick leave of the City’s employees payable upon termination or retirement are accrued. The liability is accrued for a portion of the sick leave balances of all employees who are currently eligible to receive a payment for sick leave upon termination, as well as for those expected to become eligible. As of June 30, 2024, the total estimated liability for all compensated absences, including sick leave, was $230,122.

Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses include amounts payable to vendors.

Long-term Debt
Debt premiums and discounts are amortized over the life of the debt using the straightline method. Long-term debt is reported net of the applicable unamortized bond premium or discount. Debt issuance costs are expensed when incurred.

Amortization
Canal construction cost sharing is amortized using the straight-line method over 40 years. Effective July 1, 2004, the Authority discontinued amortizing its Water Rights intangible asset, as this asset has an indeterminate life and has value. Water Rights are tested annually for impairment under GASB 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. If it is determined that the asset has been impaired, the book value will be adjusted to reflect the reduced fair value of the rights. Accumulated amortization on Water Rights amounted to $490,687 prior to July 1, 2004. As of June 30, 2024, no impairment was recognized.

Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
18 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position (Continued)
Revenues and Expenses
Revenue Recognition
Charges for electricity, water and sewer use are recorded as billed to customers on a monthly cycle billing basis. At the end of each year, unbilled revenues are accrued for each cycle based on the most recent cycle billings.

Operating and Non-Operating Revenues and Expenses
Revenues and expenses are distinguished between operating and nonoperating items. The Authority defines operating revenues to be exchange transactions where a product or service is furnished and a charge collected therefrom, while operating expenses are all of the costs incurred in delivering those products or services including depreciation on capital assets. Nonoperating revenues and expenses are generally non-exchange transactions and those transactions that are capital and non-capital related financing activities or investing activities.

Net Position
Net position represents the difference between all other elements in the statement of net position and should be displayed in the following three components:

Net Investment in Capital and Intangible Assets – This component of net position consists of capital and intangible assets, unexpended proceeds of debt restricted to the financing of capital and intangible assets, and related deferred charges on refunding, net of accumulated depreciation and amortization and reduced by any related debt outstanding against the acquisition, construction or improvement of those capital and intangible assets.

Restricted – This component of net position consists of constraints placed on net position use through external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments or restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
19 NOTE 3 CASH AND INVESTMENTS
The indenture for the 2016 Revenue Refunding Bonds (Note 7) requires the establishment of special funds to be held and administered by trustees and by the Authority. As of June 30, 2024, investments and cash held by trustees and by the Authority in these funds and accounts are as follows:

The Authority has, periodically during the year, maintained bank balances in excess of federally insured limits.

The California Government Code requires California banks and savings and loan associations to secure the Authority's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.

Thus, collateral for cash deposits is considered to be held in the Authority’s name.

The fair value of pledged securities must equal at least 110% of the Authority's cash deposits. California law also allows institutions to secure the Authority's deposits by pledging first trust deed mortgage notes having a value of 150% of the Authority's total cash deposits. The Authority may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.

The Authority, however, has not waived the collateralization requirements.

Investment in State Investment Pool
The Authority is a voluntary participant in LAIF that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the Authority’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).

The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. At June 30, 2024, the total fair value of LAIF, including accrued interest was approximately $179 billion. The fair value of the Authority’s investment in the pool was $3,124,952 as of June 30, 2024.

Custodian
Local Agency Investment Fund $ 3,124,952
Bank 3,732,742
$ 6,857,694
Special funds balances
Operating funds $ 2,583,731
Electric asset replacement reserve 2,873,991
Utility rate stabilization fund 699,972
PCA balances 700,000
$ 6,857,694
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
20 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the Authority’s Investment Policy
The table below identifies the investment types that are authorized for the Authority by the California Government Code (or the Authority's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the Authority’s investment policy, where more restrictive) that addresses interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by the bond trustee that are governed by the provisions of debt agreements of the Authority, rather than the general provisions of the California Government Code or the Authority's investment policy.

Authorized Investment Type
Maximum
Maturity
Maximum
Specified
Percentage of
Portfolio
Minimum Quality
Requirements
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
State Obligations - CA and Others 5 years None None
CA Local Agency Obligations 5 years None None
U.S. Agency Obligations 5 years None None
Banker's Acceptances 180 days 40% None
Commercial Paper - Non-Pooled Funds
(under $100,00,000) 270 days 25%
Highest letter and number
rating
Commercial Paper - Non-Pooled Funds
(min. $100,000,000) 270 days 40%
Highest letter and number
rating
Commercial Paper - Pooled Funds 270 days 40%
Highest letter and number
rating
Negotiable Certificates of Deposit 5 years 30% None
Non-negotiable Certificates of Deposit 5 years None None Placement Service Deposits 5 years 50% None
Placement Service Certificates of
Deposits 5 years 50% None
Repurchase Agreements 1 year None None
Reverse Repurchase Agreements and
Securities Lending Agreements 92 days 20% None
Medium-Term Notes 5 years 30% "A" rating or better
Mutual Funds and Money Market Mutual
Funds N/A 20% Multiple
Collateralized Bank Deposits 5 years None None
Mortgage Pass-Through and AssetBacked Securities 5 years 20% "AA" rating or better County Pooled Investment Funds N/A None None
Joint Powers Authority Pool N/A None Multiple
Local Agency Investment Fund (LAIF) N/A None None
Voluntary Investment Program Fund N/A None None
Supranational Obligations 5 years 30% "AA" rating or better Public Bank Obligations 5 years None None
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
21 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Authority’s investment policy. The Authority has no investment authorized by debt agreements as of June 30, 2024.

Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways to manage the exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the Authority’s investments (including investments held by the bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the Authority’s investments by maturity as of June 30, 2024.

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. State law limits investments in commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations (NRSROs). As of June 30, 2024, the Authority has no investments in commercial paper and corporate bonds.

Concentration of Credit Risk
The Authority’s investment policy contains no limitation on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.

As of June 30, 2024, there were no investments in any one issuer (other than U.S.

Treasury securities, mutual funds, and external investment pools) that represent 5% or more of the total Authority’s investments.

Remaining
Maturity (in
Years)
Investment Type
Less Than 1
Year
Local Agency Investment Fund $ 3,124,952
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
22 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Authority's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies.

California law also allows financial institutions to secure Authority deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2024, none of the Authority’s deposits or investments were exposed to custodial credit risk.

Fair Value Measurements
The Authority categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

The Authority’s investment in LAIF as of June 30, 2024 is reported at the Agency’s pro-rata share of the amortized cost provided by LAIF for the entire LAIF portfolio. This valuation amount, which approximates fair value, is not categorized under the fair value hierarchy.

NOTE 4 RECEIVABLES
Accounts Receivables
As of June 30, 2024, accounts receivable consisted of the following:

Electric Water AAC Wastewater Total
Accounts receivables $ 3,195,453 $ 463,476 $ 182,239 $ 325,494 $ 4,166,662 Accrued interest receivable 26,721 2,219 1,773 4,676 35,389 Allowance for doubtful accounts (251,788) (53,598) - (89,739) (395,125) Net receivables $ 2,970,386 $ 412,097 $ 184,012 $ 240,431 $ 3,806,926 Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
23 NOTE 4 RECEIVABLES (CONTINUED)
Notes Receivable
As of June 30, 2024, notes receivable consisted of the following:

On May 24, 2022, the City of Needles entered into a payment agreement and release with Medical Investor Holdings, LLC (MIH) for its delinquent business taxes and utilities amounting to $1,839,458. Out of this amount, $924,956 is owed to the Authority for the unpaid utilities as of the date of the agreement. MIH agreed to pay the City, by July 11, 2024, the full delinquent amount in a secured promissory note. The note is payable in 24 monthly installments. The balance of the unpaid utilities owed to the Authority as of June 30, 2024 was $168,441.

On February 15, 2024, the payment agreement and release entered into between the City and Medical Investor Holdings, LLC (MIH) was amended to extend the payment period of the promissory note until February 12, 2026.

NOTE 5 CAPITAL ASSETS
Changes in capital assets for the year ended June 30, 2024 were as follows:

Out of the total additions of $10,864,790 during the year, total amount cash paid was $6,874,623, the remaining $3,990,167 was transferred from prior year construction in progress that was completed in the current year.

Electric Water Total
Due within one year $ 167,019 1,422 $ 168,441
Beginning
Balance Additions
Transfers/
Deductions Ending Balance
Non depreciable Assets
Land $ 3,199,100 $ 182,153 $ - $ 3,381,253
Construction in progress 5,374,183 4,608,201 (3,990,167) 5,992,217 Total 8,573,283 4,790,354 (3,990,167) 9,373,470
Depreciable Assets
Utility plant 42,588,389 6,074,436 (77,086) 48,585,739
Right-of-use lease assets 235,748 - - 235,748
Total 42,824,137 6,074,436 (77,086) 48,821,487
Accumulated Depreciation
Utility plant (27,698,019) (1,471,094) 77,086 (29,092,027) Right-of-use lease assets (70,699) (50,633) - (121,332) Total (27,768,718) (1,521,727) 77,086 (29,213,359)
Total depreciable assets, net 15,055,419 4,552,709 - 19,608,128 Capital Assets, net $ 23,628,702 $ 9,343,063 $ (3,990,167) $ 28,981,598 Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
24 NOTE 6 INTANGIBLE ASSETS
Changes in the intangible assets for the year ended June 30, 2024 were as follows:

NOTE 7 LONG-TERM DEBT
Long-term debt consisted of the following:
• 2016 Revenue Refunding Bonds, interest at 3.86% payable each February 1st and August 1st – principal redemptions in varying annual amounts that are due through February 2031.

Purchase Obligation due to the City, $685,300 payable each February 1st, including interest imputed at 6.714% through February 2011. Starting in February 2011, the annual payment was reduced as a result of the $250,000 prepayments made in 2010.

The annual payment was further reduced to $666,436 as a result of additional prepayments made in the years 2012 and 2013 amounting to $750,000. The prepayments have resulted in lower interest charges. The annual payment will be reduced to $535,421 beginning in fiscal year 2026.

Long-term liabilities activity for the year ended June 30, 2024 was as follows:

Beginning
Balance Additions
Transfers/
Deductions
Ending
Balance
Cost
Water rights $ 2,662,807 $ - $ - $ 2,662,807
Canal construction cost sharing 728,366 - - 728,366
Total 3,391,173 - - 3,391,173
Accumulated amortization
Water rights (490,687) - - (490,687)
Canal construction cost sharing (479,505) (18,209) - (497,714) Total (970,192) (18,209) - (988,401)
Intangibles, net $ 2,420,981 $ (18,209) $ - $ 2,402,772 Beginning
Balance Additions Reductions
Ending
Balance
Amounts
Due Within
One Year
Revenue bonds $ 9,846,660 $ - $ (1,072,556) $ 8,774,104 $ 1,114,355 Purchase obligation 7,724,759 - (147,793) 7,576,966 157,719 $ 17,571,419 $ - $ (1,220,349) $ 16,351,070 $ 1,272,074 Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
25 NOTE 7 LONG-TERM DEBT (CONTINUED)
Annual maturities of long-term debt are as follows:

The varying long-term debt installment payments are to be made from various Authority revenues (all as defined in the applicable agreements) which are irrevocably pledged to such payments, as follows: net independent utility revenues for the 2016 Revenue Refunding Bonds; and surplus revenues for the Purchase Obligation.

If an event of default shall have occurred and be continuing and if requested by the bond owner of a majority in aggregate principal amount of outstanding bonds, the Trustee shall exercise one or more of such available remedies as the Trustee as directed by the bond owner. All amounts received by the Trustee pursuant to any right given or action taken by the Trustee under the provisions of the Indenture shall be applied by the Trustee in order upon presentation of the bonds.

Upon payment in full of all indebtedness of the Authority, title to the water, sewer, and electrical enterprises (Enterprises) shall automatically revert to the City.

NOTE 8 LEASES
The Authority has existing seven (7) leased vehicles from a car rental company during the fiscal year 2024. The lease term of each leased vehicle is five (5) years with monthly payments ranging from $465 to $880.

Since the interest rate of the leases is not readily determinable by the Authority, the future lease payments were discounted using an estimated incremental borrowing rate should a loan be taken to pay lease amounts during the lease terms. The discount rates used to calculate the lease liability range from 2.62% to 7.50%.

The Authority recorded right-to-use lease assets with net book value of $114,416 and lease liabilities of $120,067 for all the leases as of June 30, 2024.

Year Ending June 30
Revenue
Refunding
Bonds
Purchase
Obligation Interest Total
2025 $ 1,114,355 $ 157,719 $ 1,133,152 $ 2,405,226
2026 1,157,784 37,293 1,061,051 2,256,128
2027 1,202,907 39,797 993,044 2,235,748
2028 1,249,787 42,469 920,215 2,212,471
2029 1,298,494 45,320 842,551 2,186,365
2030-2031 2,750,777 7,254,368 13,113,032 23,118,177
Total $ 8,774,104 $ 7,576,966 $ 18,063,045 $ 34,414,115 Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
26 NOTE 8 LEASES (CONTINUED)
As of June 30, 2024, the lease liability consisted of the following:

Payments of principal and interest for each of the next four (4) fiscal years are as follows:

NOTE 9 RETIREMENT PLAN
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City of Needles’ Miscellaneous Employee Pension Plan, cost-sharing multiple employers defined benefit pension plan administered by CalPERS. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Beginning
Balance Additions Payments
Ending
Balance
Amounts
Due Within
One Year
Vehicle 23JSN6 $ 12,230 $ - $ (5,555) $ 6,675 $ 5,709
Vehicle 23MS7Z 12,340 - (5,189) 7,151 5,338
Vehicle 23JSN5 12,348 - (5,609) 6,739 5,763
Vehicle 23MS7J 20,328 - (8,256) 12,072 8,475
Vehicle 254JCC 36,916 - (8,645) 28,271 9,160
Vehicle 254JD7 34,235 - (7,960) 26,275 8,347
Vehicle 25T9QX 40,595 - (7,711) 32,884 8,309
$ 168,992 $ - $ (48,925) $ 120,067 $ 51,101
Year Ending
June 30 Principal Interest
2025 51,101 5,222
2026 34,765 3,096
2027 28,230 1,357
2028 5,971 150
$ 120,067 $ 9,825
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
27 NOTE 9 RETIREMENT PLAN (CONTINUED)
General Information about the Pension Plans (Continued) Plan Description (Continued)
Classic participants (defined as eligible participants prior to January 1, 2013) are required to contribute 8% of their annual covered salary. New participants (defined as eligible employees brought into CalPERS membership for the first time on or after January 1, 2013) contribute at least half the normal cost rate as determined by CalPERS. The City contributes the remaining amounts necessary to fund the benefits for its employees, using the actuarial basis adopted by the CalPERS Board of Administration.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Classic members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

With the implementation of GASB Statement No. 68, the City allocates about 42.17% of the City’s net pension liability and pension-related transactions to the Authority based on its share in the pension contribution for the year ended June 30, 2024.

Amounts allocated in fiscal year 2023-24 were as follows:

Please refer to the City’s audited financial statements for the fiscal year ended June 30, 2024, for more information about the City’s retirement plan required financial statements note disclosures and supplementary information in accordance with GASB Statement No. 68.

Net pension liability $ 2,478,277
Deferred outflows of resources 1,102,416
Deferred inflows of resources 61,445
Pension expense 385,793
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
28 NOTE 10 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) General Information About the OPEB Plan
Plan Description
In addition to providing pension benefits, the City provides certain healthcare benefits for retired employees. Classified and unclassified employees retiring after 20 or more years of service and after having reached age 58 or older are provided medical insurance coverage until the retiree becomes eligible for Medicare. Classified employees hired after July 1, 2007 and retiring at age 55 or later with 20 or more years of service are paid $300 per month for medical insurance coverage until the retiree becomes eligible for Medicare.

Contributions and Funding Policy
The contribution requirements of the City are established and may be amended by the City Council. While GASB Statement 75 requires that the liability for all postemployment benefits be measured, it does not require that an agency “pre-fund” the accrued liability. The City pays for the postemployment healthcare cost on a “pay-as-you-go” basis. The provisions of GASB Statement 75 determine the amount that must be presented as an annual expense and accrued liability on the City’s financial statements.

Net OPEB Liability
The Authority’s net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023.

GASB 75 requires the total OPEB liability to be measured as of a date no earlier than the end of the employer’s prior fiscal year and no later than the end of the employer’s current fiscal year, consistently applied from period to period. The City has elected to measure liabilities as of the end of the prior fiscal year.

GASB 75 requires that the total OPEB liability should be determined by (a) an Alternative Measurement Method (AMM) valuation as of the measurement date or (b) the use of update procedures to roll forward to the measurement date amounts from an AMM valuation as of a date no more than 30 months and 1 day earlier than the employer’s most recent fiscal year-end. Liabilities were calculated as of the valuation date and rolled forward to the measurement date using standard actuarial roll forward techniques per GASB 75 option (b) mentioned above. No adjustments were made for events occurring after the measurement date.

Valuation date June 30, 2023
Measurement date June 30, 2023
Measurement period July 1, 2022 to June 30, 2023
Reporting date June 30, 2024
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
29 NOTE 10 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (CONTINUED) General Information About the OPEB Plan (Continued)
Net OPEB Liability (Continued)
With the implementation of GASB Statement No. 75, the City allocates about 42.17% of the City’s net OPEB liability and related transactions to the Authority based on its share in the contribution for the year ended June 30, 2024. Amounts allocated in fiscal year 2023-24 were as follows:

Please refer to the City’s audited financial statements for the fiscal year ended June 30, 2024 for more information about the City’s OPEB plan required financial statements note disclosures and supplementary information in accordance with GASB Statement No. 75.

NOTE 11 ASSET REPLACEMENT FUNDS
The Authority transfers certain amounts to the City to fund future replacement of existing property and equipment and other capital expenditure requirements of the Authority. For the year ended June 30, 2024, the Authority transferred $650,064 to the City for deposit to the asset replacement funds.

As of June 30, 2024, the following asset replacement funds are under the control and custody of the City and are recorded in the City’s accounting records as restricted funds (less usage):

NOTE 12 COMMITMENTS AND CONTINGENCIES
The Authority is considered a transmission and generation-dependent electric utility, and, therefore, completely dependent on others for the supply and transmission of energy to the City’s electric system.

Net OPEB liability $ 526,945
Deferred outflows of resources 26,724
OPEB expense 88,462
Water $ 1,866,067
Wastewater 345,317
Electric 2,218,020
$ 4,429,404
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
30 NOTE 12 COMMITMENTS AND CONTINGENCIES (CONTINUED)
The Authority receives a hydroelectric allotment from the Parker-Davis Dam. The Authority’s rate structure is designed to allocate the hydroelectric allotment equally among all customers, giving 402 KWH per customer per month in winter months and 757 KWH per customer per month in summer months. The actual cost of power is analyzed every month and if a Power Cost Adjustment (PCA) is required, it is to be put into effect the following month. If the PCA has gone down, then a credit is to be calculated by KWH per bill. The new rate structure is put into place every October.

In 2008, the Authority partnered with the United States Department of Energy Western Area Power Administration (WAPA) for the management of energy costs. This partnership was effective April 1, 2008 and has allowed the Authority greater flexibility in the power purchase market. Through WAPA, the Authority is able to procure long-term power supply contracts and limit risks in the spot market. Rate studies are conducted every 5 years to ensure the NPUA rates are established at the cost to provide the service. The next rate study is scheduled for fiscal year 2025.

NOTE 13 RELATED PARTY TRANSACTIONS
Section 1202 of the Needles Municipal Code states, “Each utility shall be operated as a separate unit and all accounting respecting such utility shall be on that basis. All personal services of officers or employees and all costs incurred for the joint benefit of any such utility and any other office, department or agency of the city shall be prorated between them. Charges shall be made by the utility for all service, property or other things of value supplied or rendered by it to any other office, department or agency of the city.”
The City acts as the manager and operator of the Authority’s Enterprises under a Management Agreement. The City receives a management fee equal to its actual costs and direct overhead incurred in connection with the management and operation of the Enterprises.

Such costs include, but are not limited to, salaries, insurance and retirement benefits of City employees providing services to the Enterprises. Each July 1, the Management Agreement is extended for one year, unless either party notifies the other that it does not intend to extend the term of the Agreement. Total payments made to the City for operating the Enterprises for the year ended June 30, 2024 amounted to $16,139,611.

This amount includes payment of Fair Share Allocation (FSA) and purchases of electric power and capital assets.

Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
31 NOTE 13 RELATED PARTY TRANSACTIONS (CONTINUED)
In exchange for the City providing rights of way and rights of access to all real property owned by the City and necessary for the Authority to operate the Enterprises, the City collected an annual franchise fee from the Authority. The amount of the franchise fee was determined by the City, the payment of which is subordinate to the Authority’s annual debt service. In August 2010, the Authority’s Board approved the increase in franchise fee from 5% of gross revenues to 7.5% of gross revenues for two years, and then 5% thereafter. In November 2012, the voters of the City of Needles approved Measure T eliminating 2.5% of the franchise fee that the City of Needles charges the Authority and established a utility user tax of up to 2.5% to be applied to electric, water and sewer charges. In FY17 the City underwent a study to determine the utilities’ actual usage of rights of way and rights of access to all real property owned by the City. After the study, the City eliminated the franchise fee and created the FSA. The Authority paid FSA and utility user tax which amounted to $821,803 and $387,841 for the year ended June 30, 2024, respectively.

In connection with the City’s 1997 sale of the Enterprises to the Authority, the Authority’s remaining unpaid purchase obligation to the City is payable annually, each February 1, through 2065. Payments are payable solely from Surplus Revenues (as defined). Purchase obligation payments amounted to $666,436 for the year ended June 30, 2024, which included interest amounting to $518,643. The unpaid purchase obligation is included in the bonds and note payable account in the Statement of Net Position.

NOTE 14 RISK MANAGEMENT
The Authority is subject to various risks in the normal course of operations. The Authority, as a component unit of the City, protects itself against such risks by the City’s participation in the California Joint Powers Insurance Authority (CJPIA), a joint power agency (risk-sharing pool) that provides an independently managed, self-insurance program for member cities.

The City contributes its pro rata share of anticipated losses to a pool administered by CJPIA. Should actual losses among participants exceed anticipated losses, the City will be assessed its pro rata share of that deficiency. Conversely, if the actual losses are less than anticipated, the City will be refunded its pro rata share of the excess.

The Authority’s allocated share of the City’s contributions to CJPIA is included in the operations and maintenance expenses paid to the City under the management agreement discussed in Note 13.

Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Notes to Financial Statements (Continued)
Year ended June 30, 2024
32 NOTE 15 SUBSEQUENT EVENTS
In preparing these financial statements, the Authority has evaluated events and transactions for potential recognition or disclosure through December 5, 2025, the date the financial statements were available to be issued. Based upon this evaluation, it was determined that, no subsequent events occurred that require recognition or additional disclosure in the financial statements.

Agenda Item 4.

SUPPLEMENTARY SCHEDULES
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Combining Schedule of Net Position
June 30, 2024
See independent auditor’s report.
33 Electric Water
All American
Canal Wastewater Total
Current assets 12% 12%
Cash and investments $ 5,178,197 $ 429,968 $ 343,537 $ 905,992 $ 6,857,694 Accounts receivables, net 2,970,386 412,097 184,012 240,431 3,806,926 Due from City of Needles 4,138,544 341,828 230,693 333,482 5,044,547 Materials and supplies inventory 964,877 35,223 - 38,989 1,039,089 13,252,004 1,219,116 758,242 1,518,894 16,748,256
Noncurrent assets
Notes receivable 167,019 1,422 - - 168,441
Capital assets, net of accumulated depreciation 11,665,765 13,435,650 - 3,880,183 28,981,598 Intangible assets, net of accumulated amortization - 2,402,772 - - 2,402,772 11,832,784 15,839,844 - 3,880,183 31,552,811
Total assets 25,084,788 17,058,960 758,242 5,399,077 48,301,067 60% 27% 2% 11% 100%
Deferred outflows related to pensions 493,162 322,245 198,229 88,780 1,102,416 Deferred outflows related to OPEB 12,026 7,750 4,810 2,138 26,724 Total deferred outflows of resources 505,188 329,995 203,039 90,918 1,129,140 Current liabilities
Lease liabilities, current portion 23,398 14,056 - 13,647 51,101 Accounts payable and other current liabilities 141,363 23,167 8,246 23,563 196,339 Due to the City of Needles 30,246 - - - 30,246
Compensated absences 161,450 42,653 8,139 17,880 230,122 Customer deposits 2,610,342 99,253 - - 2,709,595
Accrued interest payable 66,325 31,046 - 43,746 141,117 Bonds and notes payable, current portion 597,875 279,856 - 394,343 1,272,074 3,630,999 490,031 16,385 493,179 4,630,594
Noncurrent liabilities 0%
Lease liabilities, net of current portion 23,684 18,894 - 26,388 68,966 Net pension liability 1,108,648 724,420 445,627 199,582 2,478,277 Net OPEB liability 237,125 152,814 94,850 42,156 526,945 Bonds and notes payable, net of current portion 7,087,128 3,317,379 - 4,674,489 15,078,996 Total noncurrent liabilities 8,456,585 4,213,507 540,477 4,942,615 18,153,184 Total liabilities 12,087,584 4,703,538 556,862 5,435,794 22,783,778 Deferred inflows related to pensions 27,487 17,961 11,049 4,948 61,445 Net position
Net investment in capital and intangible assets 3,980,762 12,241,187 - - 16,221,949 Restricted for debt service 5,178,197 429,968 343,537 905,992 6,857,694 Unrestricted 4,315,946 (3,699) 49,833 (856,739) 3,505,341 Total net position $ 13,474,905 $ 12,667,456 $ 393,370 $ 49,253 $ 26,584,984 Water

DEFERRED OUTFLOWS OF RESOURCES

DEFERRED INFLOWS OF RESOURCES
Total current liabilities
ASSETS
Total current assets
Total noncurrent assets

LIABILITIES AND NET POSITION
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Combining Schedule of Revenues, Expenses and Changes in Net Position Year ended June 30, 2024
See independent auditor’s report.
34 Electric Water
All American
Canal Wastewater Total
Operating revenues
Sales of electricity $ 14,890,864 $ - $ - $ - $ 14,890,864 Sales of water - 2,858,163 1,079,026 - 3,937,189
Charges for wastewater system use - - - 2,197,020 2,197,020 Other revenues 43,424 - - - 43,424
Total operating revenues 14,934,288 2,858,163 1,079,026 2,197,020 21,068,497 Operating expenses
Electric power purchased 6,539,507 - - - 6,539,507
Salaries and benefits 1,304,488 956,055 121,997 315,798 2,698,338 Depreciation and amortization 586,539 490,544 - 462,853 1,539,936 Fair share allocation 584,454 145,564 - 91,785 821,803
Supplies 62,952 121,234 937 22,596 207,719
Administrative and management 485,248 344,588 19,920 179,937 1,029,693 Power and utilities 59,944 94,861 26 118,655 273,486
Contractual services 182,042 120,771 895,518 377,924 1,576,255 Maintenance and operations 30,897 40,525 - 40,850 112,272 Insurance 255,014 37,326 - 45,892 338,232
Conservation/solar rebates 118,009 5,615 - - 123,624
Miscellaneous 1,912,067 39,514 7,448 73,861 2,032,890
Total operating expenses 12,121,161 2,396,597 1,045,846 1,730,151 17,293,755 Operating income 2,813,127 461,566 33,180 466,869 3,774,742 Nonoperating revenues (expenses) 47% 22% 31%
Interest expense (447,263) (209,357) - (295,003) (951,623) Interest and investment revenue 70,137 32,830 - 46,260 149,227 Net nonoperating expenses (377,126) (176,527) - (248,743) (802,396) Income before contributions and transfers 2,436,001 285,039 33,180 218,126 2,972,346 Capital contributions 307,882 6,460,704 - 162,359 6,930,945 Operating transfers
Transfers to the City (355,080) (259,308) - (35,676) (650,064) Change in net position 2,388,803 6,486,435 33,180 344,809 9,253,227 Net position at beginning of year 11,086,102 6,181,021 360,190 (295,556) 17,331,757 Net position at end of year $ 13,474,905 $ 12,667,456 $ 393,370 $ 49,253 $ 26,584,984 Water
Agenda Item 4.

Needles Public Utility Authority
(A Component Unit of the City of Needles)
Combining Schedule of Cash Flows
Year ended June 30, 2024
See independent auditor’s report.
35 Electric Water
All American
Canal Wastewater Total
Cash flows from operating activities
Receipts from customers $ 13,757,265 $ 2,683,186 $ 1,081,006 $ 2,213,387 $ 19,734,844 Payments to City of Needles:

Suppliers and other costs (10,303,411) (1,605,505) (963,037) (1,221,508) (14,093,461) Employee compensation and related costs (1,533,085) (744,747) 225,568 (369,993) (2,422,257) Net cash flows provided by
operating activities 1,920,769 332,934 343,537 621,886 3,219,126 Cash flows from capital and related financing activities Capital contributions 307,882 6,460,704 - 162,359 6,930,945 Cash paid for lease (22,510) (13,515) - (12,900) (48,925) Purchases of capital assets (283,128) (6,445,582) - (145,913) (6,874,623) Principal paid on capital debt (573,565) (268,478) - (378,306) (1,220,349) Interest paid on capital debt (455,370) (213,152) - (300,351) (968,873) Net transfers for asset replacement reserves (355,080) (259,308) - (35,676) (650,064) Net cash flows used in capital and related financing
activities (1,381,771) (739,331) - (710,787) (2,831,889) Cash flows from investing activity
Interest and investment revenue 70,137 32,830 - 46,260 149,227 Cash flows provided by investing activity 70,137 32,830 - 46,260 149,227 Net increase (decrease) in cash and investments 609,135 (373,567) 343,537 (42,641) 536,464 Cash and investments at beginning of year 4,569,062 803,535 - 948,633 6,321,230 Cash and investments at end of year $ 5,178,197 $ 429,968 $ 343,537 $ 905,992 $ 6,857,694 Reconciliation of operating income to net cash flows 1,713,983 - - - from operating activities
Operating income $ 2,813,127 $ 461,566 $ 33,180 $ 466,869 $ 3,774,742 Adjustments to reconcile operating income to net cash
from operating activities:

Depreciation and amortization 586,539 490,544 - 462,853 1,539,936 Changes in operating assets and liabilities:

Receivables (972,794) (257,899) 1,980 32,199 (1,196,514) Materials and supplies inventory (192,456) (13,910) - (3,173) (209,539) Deferred outflows of resources 110,833 (299) (172,053) 21,164 (40,355) Deferred inflows of resources (105,016) 48,539 24,594 (20,814) (52,697) Accounts payable and other current liabilities (7,428) (1,217) (434) (1,238) (10,317) Due from (to) the City of Needles (746,660) (106,024) 9,070 (73,386) (917,000) Due from (to) other funds 806,554 (550,687) (47,824) (208,043) - Compensated absences 1,387 (9,529) 5,859 (6,212) (8,495) Customer deposits (137,516) 99,253 - - (38,263)
Net pension liability (179,291) 151,919 404,103 (36,656) 340,075 Net OPEB liability (56,510) 20,678 85,062 (11,677) 37,553 Net cash flows provided by
operating activities $ 1,920,769 $ 332,934 $ 343,537 $ 621,886 $ 3,219,126 Water
Agenda Item 4.
36 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Board of Public Utilities
Needles Public Utility Authority
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Needles Public Utility Authority (the Authority), a component unit of the City of Needles, California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated December 5, 2025.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Authority’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified a deficiency in internal control described in the following page as Finding FS 2024-001 that we consider to be a significant deficiency.

Agenda Item 4.
37 Authority’s Response to the Finding
Government Auditing Standards requires the auditor to perform limited procedures on the Authority’s response to the finding identified in our audit and described below. The Authority’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Repeat of Prior Year Finding:

Finding FS 2024-001 Significant Deficiency on Internal Controls over Inventories Criteria
Maintaining detailed audit trails for all transactions and adjustments and ensuring all documentation is complete and readily available for audits are essential practices that are crucial for demonstrating compliance with policies, substantiating financial statements, and providing necessary documents for audits. Audit preparedness and keeping organized, accessible records are key components of a successful audit process.

Condition
We have noted that there are no controls in place in relation to withdrawal and purchase of inventories.

Based on our understanding of the process, there is no documentation and monitoring being made for every material receipt and issuance. There are no formal controls in place to verify whether the items picked from the warehouse or yard are valid and properly authorized.

In addition, during our review of inventory listings, we noted that listings are not being updated based on the recent purchase date and cost of materials and inventories. We noted non-moving materials and items that have a date of last order or receipt still from the years 1997, 1998 and 1999 up to 2005.

We also noted that the unit cost is not updated in the system based on the recent purchases.

Further, the Authority does not perform a random count of sample inventories on a regular basis to verify the existence and completeness of inventories. Inventory count is being performed only at fiscal year-end.

Lastly, based on the inventory count procedures we performed, five (5) out of eight (8) samples from the inventory listing have discrepancies against the actual count.

Repeat Finding
The audit team noted that this is a repeat finding from prior year as this has not yet been implemented by the Authority based on the results of the audit procedures performed during the current year.

Cause / Effect
The above condition is attributed to the lack of proper controls and documentation which may pose a risk to the existence, accuracy, valuation, and completeness of the inventory on hand. Accordingly, the Authority is exposed to the risk of misappropriation of assets, financial reporting misstatements, and/or negative impact on its operations.

Recommendation
We recommend that management establish and strictly implement controls over receipts and withdrawals of inventory. This is to avoid unauthorized issuance of inventory supplies and materials to safeguard company assets and will also help to ensure the existence, completeness and accuracy of inventory.

Agenda Item 4.
38 We further recommend that management perform a detailed review of inventory listings and ensure that the listings are updated based on the recent purchase date and purchase cost and provide allowance for obsolescence for non-moving inventories. This is to ensure proper valuation of assets and present more fairly the status of inventory as well as to enhance the fair presentation of the financial statements in accordance with generally accepted accounting principles.

Management’s Response and Action Plan
The NPUA inventory is located at several sites and in some places, multiple locations at one site. Our goal is to relocate inventory into one area for Electric and one area for Water. Electric inventory will be relocated to the planned building on California Ave and Water will be located at Third St. After this, a formal inventory check in and out procedure will be implemented. The warehouse employee will be responsible for logging in material and checking out material into NPUA’s accounting system. All inventory will be properly recorded into NPUA’s accounting system upon receipt. Costs will also be updated. A formal inventory policy will be created, adopted, and implemented. This policy will also deal with handling obsolete inventory
Personnel Responsible:

Rainie Torrance – Utility Manager
Anticipated Completion Date:

June 30, 2026
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Glendale, California
December 5, 2025
Agenda Item 4.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: January 27, 2026
Title: Accept the work by Golden West Fence for the Needles Housing Authority (NHA) Primary Fencing Project and Authorize Staff to Issue the Notice of Completion Background: The Needles Housing Authority Five (5) year Capital Improvement plan identifies improvements approved by the Housing Commission to be constructed within the plan period.

Perimeter Security Fencing was identified as one of the remaining priority projects to be constructed within the existing program; therefore, staff moved forward with solicitation of bids. Bids were received on May 21, 2025, and awarded to Golden West Fencing on May 27, 2025. During initial construction activities, it was apparent that removal of the existing pony wall was not feasible without damaging the existing sidewalk, therefore staff determined that the best option for construction was to construct the fence on top of the existing wall.

The project started in August 2025 and was completed in November 2025 for a total project amount of $233,099.77 which is within the project budget approved with Change Order #1 on August 12, 2025.

Fiscal Impact: N/A
Environmental Impact: N/A
Recommendation: Accept the work by Golden West Fence for the Needles Housing Authority (NHA) Primary Fencing Project and Authorize Staff to Issue the Notice of Completion Submitted By: Kathy Raasch, Director of Development Services/Capital Projects City Manager Approval: Date:

Other Department Approval (when required): Date:
1/22/2026
Agenda Item 5.

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 HOUSING AUTHORITY OF THE 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
1/27/2026
Needles Housing Authority Primary Fencing Project
1/9/2026
Golden West Fence 20741 Hansen Ave., Nuevo, CA 92567
1104 Baily Ave Needles, CA 92363 / APN: 0185-245-01-0000 1/27/2026
Agenda Item 5.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: January 27, 2026
Title: Approving a proposal and agreement with Sequoia Concepts, Inc., dba Sequoia Financial Services to provide third-party collection services for delinquent Housing Authority accounts receivable.

Background: The Housing Authority currently has outstanding tenant accounts receivable related to unpaid rent, tenant-caused damages, and other obligations owed to the Housing Authority. These debts represent public housing funds that should be recovered when reasonable and lawful to do so. While staff continues to pursue voluntary repayment where feasible, collection activity can require extensive follow-up, documentation, and ongoing monitoring, placing an administrative burden on Housing Authority operations. For this reason, staff is recommending the use of a professional collection agency as a standard accounts receivable tool to improve recovery of delinquent accounts while allowing staff to remain focused on core Housing Authority operations.

In 2024, the Housing Authority adopted Admissions and Continued Occupancy Plan (ACOP) Policy 16-III.B (Repayment Policy – Family Debts to the PHA), which requires that any amount owed to the Housing Authority must be repaid and authorizes enforcement action when a family refuses repayment, fails to enter into a repayment agreement, or breaches a repayment agreement. Policy 16-III.B further provides that, in addition to termination of assistance when warranted, the Housing Authority may pursue other available collection alternatives, including collection agencies, small claims court, civil lawsuit, and the state income tax set-off program. This existing policy provides the Housing Authority with the authority to utilize a professional collection agency for delinquent accounts.

The proposed agreement would retain Sequoia Concepts, Inc., dba Sequoia Financial Services to provide thirdparty collection services for qualifying delinquent Housing Authority accounts receivable. Sequoia will pursue lawful collection efforts consistent with applicable requirements, including the Fair Debt Collection Practices Act.

The agreement is performance-based with no upfront cost, and Sequoia is compensated through a commission only on amounts successfully collected. Staff is recommending Sequoia Financial Services because in 2023, the City of Needles implemented advanced collections for administrative and parking citations utilizing Sequoia Financial Services and the program has been successful.

Approving this agreement will provide the Housing Authority with an additional enforcement mechanism to support financial accountability and protect public resources while maintaining appropriate oversight and control of escalation.

Fiscal Impact: Approval of the agreement does not require a direct appropriation of Housing Authority funds. Collection costs are performance-based and paid only from amounts recovered, which may increase repayment of delinquent accounts to the Housing Authority.

Recommendation: Waive the formal bid requirement for collection services and approve the proposal and agreement with Sequoia Concepts, Inc., dba Sequoia Financial Services to provide third-party collection services for delinquent Housing Authority accounts receivable. Authorize the Executive Director to execute the agreement and make minor administrative modifications as needed, provided such changes do not affect the agreement’s intended purpose.

Submitted By: Angelica Deermer, Housing Manager
Patrick Martinez, Executive Director
Attachments:

1. Sequoia Contract Debt Collections Agreement

2. Housing Authority Admissions and Continued Occupancy Plan Policy (ACOP) City Manager Approval: Date: 1/22/2026
Other Department Approval (when required): Date:

Agenda Item 6.
1 Sequoia Financial Services Collection Agreement
This Agreement is made and entered into this 27 day of January, 2026, by and between Sequoia Concepts, Inc., dba Sequoia Financial Services, hereinafter referred to as “Sequoia”, a Collection Agency incorporated in the State of California, and Housing Authority of the City of Needles hereinafter referred to as “Client”.

I. BACKGROUND INFORMATION
A. Assignment of Debtor Accounts
Client is desirous of retaining the professional services of Sequoia for the collection of its accounts receivable.

B. Collection Services
Sequoia is willing to provide collection services for the accounts that may be referred by Client according to the terms, conditions and charges referred to within this Agreement.

II. AGREEMENT
A. Responsibilities of Client

1. Debtor File Documentation
Client agrees to provide to Sequoia all file documentation, when available, as is ordinarily necessary to properly exercise collection activity for account(s).

Additionally, Client agrees to promptly expedite all requests from Sequoia to provide additional information as may be necessary from time to time to further the collection activity on said account(s).

2. Payment Notification
Client agrees to promptly advise Sequoia of all payments made directly to Client that relate to all accounts referred to Sequoia.

3. Phone Inquiries and Correspondence
Client agrees to refer all phone calls and correspondence received from debtors and/or related third party to Sequoia pertaining to those accounts that have been referred to Sequoia for handling.

Agenda Item 6.
2 4. Legal Proceedings
a. Client agrees to promptly respond to Sequoias’ requests for authorization on all accounts being recommended for litigation by Sequoia and to forward any additional documentation that may be requested in order to proceed with authorized legal proceedings.
b. In the event that Sequoia advances court costs for litigation and, thereafter, Client requests that legal proceedings be terminated, Sequoia shall be reimbursed by Client for the expended legal fees and court costs on said account and in addition Sequoia shall have a lien on any future collections to the extent of services rendered, but not less than 20% of the assigned amount.
c. Client agrees to, when necessary, furnish to Sequoia a witness for all trials, mediations, arbitrations and hearings as needed, in addition to providing any and all declarations and documents necessary for litigation. d. Client warrants that none of the claims assigned to Sequoia hereunder, have been assigned to other collection agencies, attorneys or other third party debt collectors, unless such prior assignments have been terminated and reassigned to Client. Any monies received by a prior third party debt collector for accounts assigned to Sequoia hereunder, shall be deemed to be direct payments to Client for which Sequoia shall be entitled to its full fee.

B. Responsibilities of Sequoia

1. Collection Services
Sequoia agrees to accept all accounts assigned by Client under the terms, conditions and charges referred to within this Agreement. Sequoia will use due diligence and employ such lawful means, methods and procedures as Sequoia, in its judgment, discretion and experience, believe will best effect the collection of all accounts assigned. Sequoia adheres to the Federal Fair Debt Collection Practices Act (15 U.S.C.A. Sections 1601 et. seq.), any regulations or rules promulgated pursuant thereto, and all other applicable laws, rules and regulations, whether federal, state or local.

2. Insurance Coverage
Sequoia agrees to maintain Liability and Errors & Omissions Insurance in the amount of $1,000,000 to protect Client against any neglect, error, or omission that may result from Sequoia’s activities as a collection agency.

Commercial general liability insurance in an amount of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; Sequoia agrees to have its insurer endorse the general liability coverage required herein to include as additional insured’s City, its officials, employees and agents. Sequoia also agrees to require Agenda Item 6.
3 all contractors and subcontractors to provide the same coverage required under this Section.

Workers’ Compensation insurance for any of Sequoia’s employees that will be providing any Services hereunder. Sequoia will have a state-approved policy form providing statutory benefits as required by California law. The provisions of any Workers’ Compensation insurance will not limit the obligations of Sequoia under this Agreement. Sequoia expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents.

Errors and omissions insurance in a minimum amount of $2 million per occurrence to cover any negligent acts or omissions committed by Sequoia, its employees and/or agents in the performance of any Services for City.

Liability Insurance REQUIRED IF CHECKED HERE ONLY [___] (Technology Professional Liability – Errors and Omissions), with limits not less than $2,000,000 per occurrence or claim, and $2,000,000 aggregate or the full per occurrence limits of the policies available, whichever is greater. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Sequoia in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

Sequoia will file with City, before beginning professional services, certificates of insurance (Acord Form 25 or equivalent) satisfactory to City evidencing.

C. Terms, Conditions, and Charges

1. Commission
Client agrees to pay a fee to Sequoia on all monies collected, subsequent to the date assigned as of the date of this Agreement.
a. The following is the commission rate structure for Client assigned under this Agreement:
i. A fee of 25% will be charged for collection of any portion of the assigned claim prior to filing suit.
ii. A fee of 35% after suit is filed. (Legal Action)
b. Sequoia is entitled to receive commission on the full recovery regardless of the dollar amount actually assigned by Client, whether the recovery is less than or greater than the assignment amount.

Agenda Item 6.
4 c. Both parties mutually agree that in the event a payment is made directly to Client, Sequoia will be entitled to the commission fees described above.

2. Settlement Authorization
Client hereby authorizes Sequoia to settle any account assigned to a maximum of seventy five percent (75%) of the principal balance, which is a twenty five percent (25%) reduction. Any settlement for an amount greater than 25% reduction requires prior written consent by Client. Sequoia will make every effort on all accounts assigned by Client to recover the full amount of the principal balance due from the debtor.

3. Remittance Advice/Invoice
a. Sequoia will remit to Client on a monthly basis.
b. Sequoia shall have the right to endorse for deposit and collection all remittances received in the name of Client on accounts assigned to Sequoia and to deduct from such remittance its authorized commission. c. If at the time of Sequoia’s monthly remittance Client is indebted to Sequoia, Client agrees to allow Sequoia to offset (deduct) said indebtedness from the amount of the remittance.

4. Legal Proceedings
a. Sequoia agrees to file suit only upon receipt of written authorization from Client for suit authorization.
b. Sequoia will advance all court costs and attorney fees in the event suit is filed. It is agreed by both parties that Sequoia will be allowed to withhold first monies received to offset court costs advanced by Sequoia.

5. Interest and Attorney fees
Sequoia will compute interest on all accounts assigned for collection at an interest rate currently allowed by law. All interest and attorney fees collected will be retained by Sequoia whether pre-judgment or post judgment. Interest and attorney fees will only be retained by Sequoia after the principal balance assigned has been collected.
.

6. Credit Reporting

Sequoia will list with member credit reporting agencies all accounts that are referred for direct collection based on applicable laws and criteria that may be set by Client.

7. Mutual Indemnification
Agenda Item 6.
5 Sequoia agrees to defend, indemnify and hold Client harmless of and from any and all claims, actions, causes of action, losses or damages based upon acts of omissions of Sequoia, its employees or agents (other than acts undertaken by Sequoia in good faith based specifically upon information provided by Client to Sequoia). Client agrees to defend, indemnify and hold Sequoia harmless of and from any and all claims, actions, causes of action, losses or damages based upon acts or omissions are alleged to have occurred before or after the assignment to Sequoia.

Each party shall be responsible for its own acts and omissions in connection with this Agreement. Neither Sequoia nor Client shall be required to defend, indemnify, or hold harmless the other party from or against any claims, damages, losses, liabilities, costs, or expenses arising out of or resulting from that other party’s negligence or willful misconduct.

8. Term and Termination
No account(s) may be withdrawn during the first 180 days after assignment without the consent of Sequoia.

This agreement shall continue in effect for 2 years, unless earlier terminated by either party, with or without cause, upon sixty (60) days’ written notice to the other party (“Term”). In the event of termination, Sequoia is entitled to maintain and continue collection activity under the terms, conditions and charges of this Agreement on all accounts assigned prior to termination or otherwise be entitled to full commission compensation from Client for accounts in a paying, promise to pay or legal status.

9. Severability
The invalidity of any provision of this Agreement will not affect the validity of any other provision.

10. Governing Law
The laws of the State of California will govern the interpretation and enforcement of this Agreement. In the event that any litigation is commenced between the parties arising out of or relating to this Agreement, such litigation shall be brought exclusively in the state or federal courts located within San Bernardino County, California, and the parties hereby consent to the personal jurisdiction and venue of such courts.

11. Dispute Resolution Procedure
In lieu of litigation, Client and Sequoia agree that any dispute that cannot be resolved by negotiation between parties shall be submitted to arbitration with Agenda Item 6.
6 and pursuant to the Rules of the Los Angeles County Bar Association or such other arbitration rules as may be mutually agreed upon by the parties, with the arbitration to be conducted in San Bernardino County, California. . Each party agrees to submit to such arbitration, to participate in the arbitration hearing, and to pay one-half of the costs and expenses as charged by the Association for such arbitration. The award of the arbitrators shall be final, non-appealable, and binding, and may be enforced be petition to the Superior Court of the State of California. The parties stipulate and submit to venue in the County of San Bernardino, California. This agreement to arbitrate shall be specifically enforceable in accordance with the laws of the State of California.

12. Modification and Effect
This Agreement contains the entire understanding of the parties and will be modified only by written document signed by each party. This Agreement expressly supersedes any agreement Sequoia may have with Client and such agreements will automatically terminate upon execution of this Agreement.

Agreed To By:

Client: Housing Authority of the City of Needles
Name/Title(Print): Patrick Martinez, Executive Director Authorized Signature: _________________________ Date: ____________

Sequoia Concepts Inc., dba Sequoia Financial Services
28632 Roadside Drive, Suite 110
Agoura Hills, CA 91301
Name/Title(Print): ____________________________________________ Authorized Signature: __________________________ Date: ______________ Agenda Item 6.

Housing Authority
of the
City of Needles
Admissions and Continued
Occupancy Plan
October 2024
Agenda Item 6.

Housing Authority
of the ACOP 10/01/2024
City of Needles

Page 16 ends

16-III.B. REPAYMENT POLICY
Family Debts to the PHA
HACN Policy
Any amount owed to the PHA by a public housing family must be repaid. If the family is unable to repay the debt within 30 days, the PHA will offer to enter into a repayment agreement in accordance with the policies below.

Refusal to Enter into An Agreement
If the family refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, the PHA will terminate the family’s tenancy.

HACN Policy
When a family refuses to repay monies owed to the PHA, in addition to termination of program assistance, the PHA will utilize other available collection alternatives including, but not limited to, the following:

Collection agencies
Small claims court
Civil lawsuit
State income tax set-off program
Repayment Agreement [24 CFR 792.103]
The term repayment agreement refers to a formal written document signed by a tenant or owner and provided to the PHA in which a tenant or owner acknowledges a debt in a specific amount and agrees to repay the amount due at specific time periods.

General Repayment Agreement Guidelines
Down Payment Requirement
HACN Policy
Before executing a repayment agreement with a family, the PHA will generally require a down payment of 10 percent of the total amount owed. If the family can provide evidence satisfactory to the PHA that a down payment of 10 percent would impose an undue hardship, the PHA may, in its sole discretion, require a lesser percentage or waive the requirement.

Agenda Item 6.

City of Needles, California
Request for Commission Action
CITY COUNCIL HOUSING COMMISSION Regular Special
Meeting Date: January 27, 2026
Title: Housing Authority of the City of Needles Update
Background:

Public Housing Vacancies and Transfers:
• Current Vacancies: 4 out of 52 units.
• Families Awaiting Transfers:3
• Families Selected for Consideration from Waiting List: 1 Housing Choice Vouchers (HCV):
• Open and Pending Eligibility: 0 out of 23 allocated vouchers. • Leased Up: 25
• Issued: 0
• Open:0
Veteran Affairs Supportive Housing (VASH) Vouchers:
• Open and Pending Eligibility: 12 out of 30 allocated vouchers. • Referrals Received from VA Loma Linda:2
• Leased Up: 14
• Issued: 2
Public Housing Waiting List:
• Applicants on the waiting list:102
• Always open for applications.
• Allows the public to submit applications for future selection and consideration.

Section 8 Housing Choice Voucher (HCV) Waiting List:
• Applicants on the waiting list: 52
• Opened July 1, 2024 – CLOSED July 31, 2024
• Public submitted applications for future selection and consideration.

Attached Exhibits:

Exhibit A: January 19, 2026 Voucher Statistics Form
Fiscal Impact: None
Environmental Impact: None
Recommended Action: Informational Only
Submitted By: Angelica Deermer, HACN Housing Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
1/21/2026
Agenda Item 7.

HACN PubliC HousiNg / VouCHer stAtistiCs
JANuAry 2026
Public Housing = 52 units, 4 current vacancies
104- Vacated 6/10/2024*
106- Vacated 7/1/2024*
212- Vacated 3/14/2025*
922- Vacated 12/29/2025
*Units are under modification due to
extensive repair/renovation
Current PH family awaiting transfer
Current PH family awaiting transfer
Waitlist admission
Current PH family awaiting transfer
Units to be transferred
213  106
905 104
913 922
HUD allocated HACN HCV Vouchers = 23
HCV Vouchers leased up = 25*
HCV Vouchers issued = 0
HCV Vouchers open = 0
Port in Vouchers Issued = 0
Port in Vouchers Leased=2
**Port out Vouchers=2
HUD allocated VASH Vouchers =30
VASH Vouchers leased up = 14
VASH Vouchers issued = 2*
VASH vouchers open = 12
VASH Referrals = 2
*VASH Port-outs= 2
Current Waitlist Applicants
Public Housing: 102 HCV: 52
Agenda Item 7.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: January 27, 2026
Title: WARRANTS
Background: N/A
Fiscal Impact: See attached Warrant Registers
Environmental Impact: N/A
Recommendation: Approve the Warrant Registers through January 27, 2026 *Does not include most current check payroll run
Submitted By: Mark C. DeMay, CGFM, Director of Finance
City Manager Approval: Date:

Other Department Approval (when required): Date:

Agenda Item 8.
1/23/2026

Agenda Item 8.

MINUTES

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, JANUARY 13, 2026 - COUNCIL EXECUTIVE SESSION – 5:00 PM - CITY COUNCIL MEETING – 6:00 PM CALL TO ORDER - Mayor Jernigan called the meeting to order at 5:04 pm

ROLL CALL

PRESENT
Council Member Larry Ford
Council Member McCorkle
Vice Mayor Ellen Campbell
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Tona Belt
ABSENT
Council Member Henry Longbrake
Also present were City Manager Patrick Martinez, Deputy City Attorney Lena Wade, City Clerk Candace Clark, Utilities Manager Rainie Torrance, and City Planner Irene Romero.

PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION - None RECESSED TO EXECUTIVE SESSION - 5:05 PM

EXECUTIVE SESSION
a. Conference with real property negotiator pursuant to Government Code §54956.8: Agency negotiator City Manager Patrick Martinez or his designee. Negotiating Parties are the City of Needles as the potential lessor and San Bernardino County as the potential lessee for of a portion of the building located at 1111 Bailey Avenue, APN 0185-221-13-0000. Under negotiations are the price and terms.

No reportable action
b. Conference with legal counsel regarding existing litigation pursuant to Government Code section 54956.9(d)(1) City of Needles v. Rivera, et al., Superior Court of the County of San Bernardino, Case No.

CIVSB2022575
No reportable action
CALL TO ORDER - Mayor Jernigan called the meeting to order at 6:02 pm and announced an excused absence for Council Member Longbrake

ROLL CALL

PRESENT
Council Member Larry Ford
Council Member McCorkle
Vice Mayor Ellen Campbell
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Tona Belt
ABSENT
Council Member Henry Longbrake
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 10 will be continued to January 27, 2026.

Vice Mayor Campbell made a motion, seconded 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 Noes: None
Agenda Item 9.

Absent: Council Member Longbrake
Abstain: None
CONFLICT OF INTEREST – None
CORRESPONDENCE – Mayor Jernigan announced two items of correspondence. One email regarding public hearing item 3; and one letter regarding item11
INTRODUCTIONS - Mayor Jernigan acknowledged former Council Members Tim Terral, Shawn Gudmundson, Zachery Longacre, and Former Mayor Jeff Williams in attendance.

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

PUBLIC APPEARANCE
Marianne Jones gave an update on the Museum and highlighted an article about the 100th Anniversary of Route 66 in the museum’s newsletter.

PRESENTATION

1. Representatives from Tri-State Community Healthcare Center gave a Presentation on Local Primary Care Services, Behavioral Health Programs, and Community Health Resources.

Council asked questions, and representatives responded.

No public comment.

2. The Mayor presented a plaque to recent retiree Kathy Bernal.

Former City Manager Rick Daniels acknowledged Kathy’s contribution to the City of Needles.

3. Adopt Resolution 2025-49 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
City Planner Romero gave staff report.

Council asked considerable questions and applicant responded. Council deliberated on setting timeline conditions and applicant agreed.

Mayor Jernigan opened the public hearing at 6:45pm
Public Comment
James McGue spoke as a representative of THC, stating he opposes another dispensary.

Mayor Jernigan closed the public hearing at 6:48pm
Vice Mayor Campbell made a motion, seconded by Council Member Ford, adopt Resolution 2025-49 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, with the following conditions: The exterior is to be completed within 6 months of start, and the entire project to be completed within 9 months of start.

Motion carried by the following roll call vote:

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

Absent: Council Member Longbrake
Abstain: None

4. Adopt Resolution 2026-1 of the City Council of the City of Needles Approving a Conditional Use Permit Amendment to City Council Resolution 2017-114 for a Medical Marijuana Cultivation Facility Located at 204 Bazoobuth Street (APN 0186-154-13), Including Modification of Perimeter Wall Materials and Relocation of Parking and Trash Enclosure to Adjacent Parcels (APNS 0186-154-05 and 0186-154-01). CONTINUED TO JANUARY 27, 2026

REGULAR NPUA / COUNCIL ITEMS

5. Approve Change Order 2 to the Public Works Agreement with Pyramid Building and Engineering, Inc. for the Water Main and Manifold Improvements Project resulting in an increase to the contract in the amount of $84,333.60 for a new total contract amount of $1,302,710.42; and authorize staff to execute said Change Order.

City Manager Martinez gave staff report.

Council asked minimal questions
Mayor Jernigan opened public comment at 6:54pm
Public Comment – none
Mayor Jernigan closed public comment at 6:54pm
Agenda Item 9.

Council Member Ford made a motion, seconded by Vice Mayor Campbell, to approve Change Order 2 to the Public Works Agreement with Pyramid Building and Engineering, Inc. for the Water Main and Manifold Improvements Project resulting in an increase to the contract in the amount of $84,333.60 for a new total contract amount of $1,302,710.42; and authorize staff to execute said Change Order.

Motion carried by the following roll call vote:

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

Absent: Member/Council Member Longbrake
Abstain: None

6. Public Art Mural(s) to Be painted on Electrical Utility Boxes City Manager Martinez gave staff report.

Council asked questions and discussion ensued.

Applicants who submitted a proposal from the Scarce Collective answered questions via speakerphone with the assistance of Zachery Longacre
Mayor Jernigan opened public comment at 7:00pm
Public Comment – none
Mayor Jernigan closed public comment at 7:00pm
Vice Mayor Campbell made a motion, seconded by Council Member Pogue to accept the proposal to paint murals on 8 electrical utility boxes as outlined, for a total cost of $7,900, including artistic services, materials, travel, and mobilization, to be funded by the Electric Department’s Annual Adopted Operations and Maintenance (O&M) Budget.

Motion carried by the following roll call vote:

Ayes: Members/Council Member Ford, McCorkle, Campbell, Mayor Jernigan, Members/Council Members Pogue
Noes: Member/Council Member Belt

Absent: Member/Council Member Longbrake
Abstain: None

COUNCIL CONSENT CALENDAR
Council Member McCorkle made a motion, seconded by Council Member Ford, to approve items 7 and 8 on the consent calendar.

Motion carried by the following roll call vote:

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

Absent: Council Member Longbrake
Abstain: None

7. Approved the Warrants Register through January 13, 2026

8. Approved the Minutes of December 9, 2025.

END OF COUNCIL CONSENT CALENDAR

REGULAR COUNCIL ITEMS

9. Appoint a Council Member to the Budget Committee (replacing former Council Member Longacre) City Manager Martinez gave staff report.

No public comment.

Council Member Ford made a motion, seconded by Council Member McCorkle, to appoint Vice Mayor Campbell to the Budget Committee. Vice Mayor Campbell consented.

Motion carried by the following roll call vote:

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

Absent: Council Member Longbrake
Abstain: None
Agenda Item 9.

10. Visitor Center Operating Hours continued to January 27, 2026

11. Adopt Resolution 2026-2 Approving the Off-Highway Motor Vehicle (OHMV) Designated Routes Signage Plan, Authorizing Implementation Including Signage, Public Education, and Coordination with Law Enforcement.

City Manager Martinez gave staff report.

Fred Minegar spoke about the project via Teams
Council asked questions and considerable discussion ensued.

Mayor Jernigan opened public comment at 7:37pm
Shawn Gudmundson spoke about the history of this project and expressed his support in moving this forward.

City Manager Martinez clarified that this approval is for signage and does not implement the program immediately. Further stating that there will be a ribbon cutting and community workshop.

Vice Mayor Campbell asked about a time frame and City Manager Martinez responded.

Mayor Jernigan closed public comment at 7:40pm
Vice Mayor Campbell made a motion, seconded by Council Member McCorkle to adopt Resolution 2026-2 approving the Off-Highway Motor Vehicle (OHMV) Designated Routes Signage Plan, Authorizing Implementation Including Signage, Public Education, and Coordination with Law Enforcement.

Motion carried by the following roll call vote:

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

Absent: Council Member Longbrake
Abstain: None
CITY ATTORNEY REPORT – given by Deputy City Attorney Lena Wade CITY CLERK REPORT – given by City Clerk Candace Clark
CITY MANAGER REPORT – for the weeks of December 26, 2025, and January 2, 2026, given by City Manager Patrick Martinez

COUNCIL REQUESTS
Council Member Ford
• Requested staff research the possibility of adding a pet cemetery to the existing cemetery. • Report that with the owner’s permission, he will be installing a marquis on the old theater building advertising the upcoming Route 66 Centennial Celebration.
• Requested staff look into paying the Mayor more than the $1/month stipend.

Council Member McCorkle
• Suggested that time-frame requirements be added to all new projects upon approval.

Vice Mayor Campbell
• Thanked everyone for the condolences on the loss of her sister over the holidays Council Member Pogue
• Nothing
Council Member Belt
• Nothing
Mayor Jernigan
• Thanked local agencies for food and gifts over the holidays, especially the Sheriff’s department. • Congratulated St. Vincent DePaul on their recent remodel and thanked them for providing services to the community.
• Reported on upcoming events, including the Info Fair and Car Show • Asked about showcasing the City Fire Truck at the west end of El Garces.

ADJOURNMENT – Mayor Jernigan adjourned the meeting at 7:57 PM ________________________________________ ________________________________________ Mayor Janet Jernigan City Clerk Candace Clark Agenda Item 9.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: January 27, 2026
Title: December 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 December 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 December, no additional investments were made into LAIF. At month-end, the combined LAIF balance for the City, NPUA and Housing Authority remained at $22,145,828. The most recent LAIF rate for the December 2025 quarter end was 4.20 percent.

Major factor affecting the LAIF interest rate, 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 December Federal Open Market Committee meeting, the Board lowered the Fed Funds Rate by an additional 0.25 percent to a range of 3.50-3.75 percent, marking the third consecutive rate cut but also revealing a continuing concern over slowing job growth and rising unemployment. 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. Alongside the cut, the Fed also resumed buying Treasury securities, starting with $40 billion in bills, to ensure ample reserves, while projections suggested fewer rate cuts in 2026 than previously anticipated.

The Treasurer’s Report shows the cash held by fiscal agents related to the All American Canal Trust Fund and the NPUA 2016 Refunding Revenue Bonds. The All American Canal Trust Fund was created by the US Bureau of Reclamation, the City of Needles and the Metropolitan Water District (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 December 31 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. Interest on LAIF balances for the month of December was $74,036, compared to $78,189 accrued in November. 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 $29.

Environmental Impact: None.

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

Submitted By: Mark DeMay, Director of Finance and Administrative Services City Manager Approval: Date:

Other Department Approval (when required): Date:
1/22/2026
Agenda Item 10.

Agenda Item 10.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: January 27, 2026
Title: Resolution 2026-03 of the City Council, City of Needles, prioritizing and approving the dollar amount of Needles eligible projects for Community Development Block Grant funding in fiscal year 2026-2027.

Background: This is the public’s opportunity to comment on the City’s eligible Community Development Block Grant project proposed for funding in 2026-2027. The proposed projects are:

1. Continuation of Needles Senior Citizen’s Transportation Services - $7,900.

Each year we are asked by the County to prioritize eligible projects for funding.

This year’s allocation is a total of $ $7,900, this allocation is subject to change per San Bernardino County Department of Community Development.

Fiscal Impact: None

Recommendation: Adopt Resolution 2026-03 prioritizing and approving the dollar amount of Needles eligible projects for the Community Development Block Grant Funding in fiscal year 2026-2027.

Submitted By: Tammy Ellmore, Engineering Tech II
City Manager Approval: Date:

Other Department Approval (when required): Date:
1/22/2026
Agenda Item 11.

RESOLUTION 2026-03

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

APPROVING ELIGIBLE ACTIVITIES FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING IN FISCAL YEAR 2026-2027
WHEREAS, the City of Needles anticipated share of San Bernardino County’s Community Development Block Grant (CDBG) program allocation is approximately $7,900 for the Fiscal Year 2026 - 2027, and
WHEREAS, public hearing is held for the prioritization of CDBG program applications on January 27, 2026, and
WHEREAS, each year the County requests the City to prioritize CDBG eligible projects for funding, and
WHEREAS, This year’s estimated allocation is $7,900, with the use of CDBG unprogrammed funds for a total of $7,900, this estimated allocation is subject to change per San Bernardino County Department of Community Development, and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Needles, California, that it hereby approves the following priority and dollar amount of allocated funds for 2026-2027 CDBG eligible projects.

1. Continuation of Needles Senior Citizens’ Transportation Service - $7,900.

BE IT FURTHER RESOLVED, by the City of City of Needles, California, that it authorizes the City Manager to sign said agreement.

PASSED, APPROVED, AND ADOPTED at the regular meeting of the City Council of the City of Needles, California, held on the 27th day of January 2026, 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 11.

City (1): City Council Hearing Date (2): 1/27/2026
$ 7,900 Public Service Limit (15%) (4): N/A
Public Service
YIN
(8)
Applicant's
Requested Amount (9)
City's2025-2026
Recommended
Allocation Amount
(10)
Available
Unprogrammed
Funds to Commit
to Activity
(11)
Public Service
Amount
(12)
Activity
Total
(13)
$ - $ - $ - $ - $ -
Y $ 7,900 $ 7,900 $ - $ 7,900 $ 7,900
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
Totals (14) $ 7,900 $ 7,900.00 $ - $ 7,900.00 $ 7,900.00 Public Service Calculation (15):

N/A
Less Total Public Service
Activity Amount: $ 7,900.00 $ 7,900
$ -
1/28/2026
Signature Date (18)
The City agrees to enter into a "General Fund Guarantee" in order for the County to recommend activity funding.

Remaining Balance of Unprogrammed Funds (16):

Public Service Limit:

Authorized City Representative (17):

General Fund Guarantee Certification (19)
For Third-Party capital improvement activities, the City understands that reimbursements received from the County for which no measurable outcome is achieved may subsequently be required to be repaid by the City (using non-federal funds) to County. Measurable outcomes are defined as providing benefits to low- to moderate-income individuals, families, organizations, and communities and are derived from the project or program.

Amount Available to Program to Public
Service Activities:

Project Title
(* indicates project requires a "General Fund Guarantee") (7)
52328841 Needles Dial-A-Ride Tranportation Services

COUNTY OF SAN BERNARDINO
Community Development and Housing Department
2026-2027 Community Development Block Grant (CDBG) Program Cooperating City Recommended Projects Form
Sumbission ID#
City's 2025-2026 Allocation (3):

Needles
YES
Agenda Item 11.

San Bernardino County
Department of Community Development and Housing
2026-2027 CDBG Project Proposals
New/
Continuing City Applicant Submission ID Project Title Short Activity Description Total
Review
Score
Amount
Requested
Eligible?
Yes/No
Cont Needles
Patrick Martinez, City Manager
City of Needles
817 Third Street,
Needles, CA 92363
[email protected]
1-760-326-5700
52328841 Needles: Dial-A-Ride
Transportation Services
The City of Needles Dial-A-Ride Program provides curb-to-curb, demand-response transportation services to low- and moderate-income senior residents age 60 and older and persons with disabilities within the City of Needles. The program operates Monday through Friday and offers transportation to essential destinations, including medical appointments, grocery shopping, and the Senior Citizens Center noon meal program, supporting mobility, independence, and social engagement. CDBG funds will support a portion of driver personnel costs necessary to operate the service. During the program period, the activity is expected to provide approximately 6,600 rides, serving an estimated 76 unduplicated individuals. 87 $ 7,900 Yes
Agenda Item 11.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: January 27, 2026
Title: Approve Informed Consent Request from Best Best and Krieger (BBK) Background: Best Best & Krieger, LLP (“BBK” or the “Firm”) serves as City Attorney to the City of Colton, City of Fontana, City of Upland, City of Ontario, City of San Bernardino and City of Big Bear (collectively, the “Other BBK Clients”). Recently, each of these cities requested BBK to review and comment on an agreement to create a new joint powers authority known as the San Bernardino Regional Housing Trust (“JPA Matter”). Each city will be represented by a different BBK attorney. San Bernardino County Transportation Authority (“SBCTA”) is coordinating the JPA Matter so that several proposed JPA members may review and comment on the agreement. The City of Needles (“City”) is a proposed member of the JPA.

BBK represents the City as Special Counsel on a variety of matters. However, the City has not requested that BBK represent it on the JPA Matter..

BB&K has requested that the city sign the attached Informed Consent regarding the JPA matter. The informed consent has been reviewed by the City Attorneys’ office and the City Attorney does not have any objections.

Fiscal Impact: None
Recommendation: Authorize the Mayor to sign the Informed Consent from Best Best and Krieger (BBK) Submitted By: Patrick Martinez, City Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
1/22/2026
Agenda Item 12.
09962.00000\44550096.1

Miles Krieger
Partner
(951) 826-8215
[email protected]
Best Best & Krieger LLP | 3390 University Avenue, 5th Floor, P.O. Box 1028, Riverside, California 92502 Phone: (951) 686-1450 | Fax: (951) 686-3083 | bbklaw.com January 16, 2026
Mr. Patrick Martinez - [email protected]
City Manager
City of Needles
817 Third Street
Needles, CA 92363
Re: Informed Consent - Representation of Other BBK Clients Dear Patrick:

Best Best & Krieger, LLP (“BBK” or the “Firm”) serves as City Attorney to the City of Colton, City of Fontana, City of Upland, City of Ontario, City of San Bernardino and City of Big Bear (collectively, the “Other BBK Clients”). Recently, each of these cities requested BBK to review and comment on an agreement to create a new joint powers authority known as the San Bernardino Regional Housing Trust (“JPA Matter”). Each city will be represented by a different BBK attorney. San Bernardino County Transportation Authority (“SBCTA”) is coordinating the JPA Matter so that several proposed JPA members may review and comment on the agreement. The City of Needles (“City”) is a proposed member of the JPA.

As you know, BBK represents the City as Special Counsel on a variety of matters. However, the City has not requested that BBK represent it on the JPA Matter.

The City and the Other BBK clients could potentially be adverse to each other in the JPA Matter.

Although they may have a common goal with the JPA Matter, it is possible there may be disagreements on the contract to create the JPA and possibly other transactional issues that may arise regarding the JPA.

Consequently, BBK’s handling of the JPA Matter may create a conflict of interest for the firm under the applicable rules of professional conduct.

Rule 1.7 of the California Rules of Professional Conduct provides in pertinent part:
(a) A lawyer shall not, without informed written consent from each client and compliance with paragraph (d), represent a client if the representation is directly adverse to another client in the same or a separate matter. (b) A lawyer shall not, without informed written consent from each affected client and compliance with paragraph (d), represent a client if there is a significant risk the lawyer’s representation of the client will be materially limited by the lawyer’s responsibilities to or relationships with another client, a former client or a third person, or by the lawyer’s own interests.
. . .

Agenda Item 12.
09962.00000\44550096.1
Mr. Patrick Martinez, City Manager
January 16, 2026

Page 2 ends

Best Best & Krieger LLP
(d) Representation is permitted under this rule only if the lawyer complies with paragraphs (a), (b), . . . and:
(1) the lawyer reasonably believes that the lawyer will be able to provide competent and diligent representation to each affected client; (2) the representation is not prohibited by law; and
(3) the representation does not involve the assertion of a claim by one client against another client represented by the lawyer in the same litigation or other proceeding before a tribunal.

The purpose of this letter is to request the informed consent from the City so that BBK may represent the Other BBK Clients on the JPA Matter while BBK also represents the City on other unrelated matters. If an actual conflict arises, such as a dispute or litigation between the City and the Other BBK Clients on the JPA Matter, BBK will not represent any client on the JPA Matter. However, BBK will continue to represent the City and the Other BBK Clients, separately, on other unrelated matters.

We do not believe our representation of the Other BBK Clients will impair the competence, diligence or loyalty with which we will represent the City, nor will it otherwise materially limit our representation of the City or impair our independent professional judgment in any way. For example, we do not believe we will be tempted to favor the interests of one client over the other, nor do we think the relationship will create any appearance of impropriety. However, these are all things you should consider before signing this conflict waiver letter.

In the event that circumstances change or we become aware of new information that requires client consent or new notice, each client will be notified of that fact immediately, and continued representation will be subject to that notice and the informed written consent of each client will be obtained as necessary.

Your execution of this letter will constitute an acknowledgment of full disclosure in compliance with the requirements of Rule 1.7 of the California Rules of Professional Conduct previously quoted in this letter. Please consider this matter carefully, and do not hesitate to contact us if you have any questions or concerns. You may wish to confer with independent legal counsel regarding this disclosure and your consent, and you should feel free to do so.

Best regards,
Miles Krieger
Partner
of BEST BEST & KRIEGER LLP
By:

Dated:

Agenda Item 12.

City of Needles, California
Request for City Council Action
Meeting Date: January 27, 2026
Title: Visitor Center Operating Hours
Background: At a prior City Council meeting, Council requested that the operating hours of the City of Needles Visitor Center be revisited. The Visitor Center is operated by the Needles Area Chamber of Commerce under an agreement originally approved in April 2021. The City Council established the Visitor Center Subcommittee in 2021 to provide ongoing oversight of Visitor Center operations and coordination with the Chamber of Commerce. The Subcommittee currently consists of Mayor Jernigan, Vice Mayor Campbell, and Councilmember Belt.

On October 10, 2023, the Visitor Center agreement was amended to establish operating hours of 10:00 a.m. to 3:00 p.m., Tuesday through Saturday, along with other operational changes. In May 2024, staffing changes at the Visitor Center resulted in an informal adjustment by the Chamber to 9:00 a.m. to 2:00 p.m.

During this period, Visitor Center staff observed that a significant number of visitors were arriving earlier in the morning. In response, operating hours were further adjusted to 8:00 a.m. to 1:00 p.m. to better align with visitor demand.

As part of its ongoing role, the Visitor Center Subcommittee met with the Chamber of Commerce to review Visitor Center operations and analyze Q4 2025 visitation data, including visitation trends by day of week and time of day (see attached Chamber data). The data indicates that the majority of visitor activity occurs before noon, with peak visitation between 8:00 a.m. and 12:00 p.m., while Tuesday and Wednesday experience the lowest visitation levels. Based on this information and operational considerations, the Subcommittee is proposing adjustments to the Visitor Center’s operating schedule to better align staffing resources with demonstrated visitor demand.

Fiscal Impact: No additional fiscal impact. The recommended operating hours can be accommodated within existing contractual and staffing resources.

Recommended Action: Provide Staff Direction
Submitted By: Patrick Martinez, City Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:

CITY COUNCIL NPUA HACN Regular Special
1/22/2026
Agenda Item 13.

Agenda Item 13.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: January 27, 2026
Title: Approve Route 66 Centennial Celebration (November 7, 2026) and Event Budget Not-to-Exceed $7,500
Background: The year 2026 marks the 100th Anniversary of historic Route 66, which was officially established on November 11, 1926. Route 66 originally spanned approximately 2,448 miles from Chicago to Los Angeles and passed through eight states, including California and the City of Needles.

To ensure Needles is positioned as a must-stop destination for Centennial travel and celebrations, the City has been actively working to promote its Route 66 identity and develop year-long Centennial activities.

In October 2024, the City Council appointed Mayor Jernigan, Vice Mayor Campbell, and Councilmember McCorkle to serve on the Route 66 Centennial Committee to assist staff with coordinating Centennial planning, partnerships, and special events. The committee oversees the organization and promotion of activities that highlight Needles’ Route 66 heritage, attract visitors, and foster community pride.

As part of the City’s early promotional efforts, the committee placed a Route 66 Centennial advertisement in Memories from the Mother Road: Celebrating a Century of Route 66, directing travelers to the Needles Visitor Center and highlighting Needles as an original Route 66 town. In addition, the City has incorporated Centennial branding on City vehicles and through Route 66-themed street markings.

To commemorate the Centennial locally, the City intends to host a major Centennial Celebration on November 7, 2026. The event is anticipated to include a morning partnership activity with the Needles Unified School District (Holiday Fun Fair), followed by an afternoon and evening community celebration that may include food vendors, live entertainment, and fireworks (subject to feasibility and required approvals).

This event is intended to increase visitation, support local businesses, and generate additional Transient Occupancy Tax (TOT) revenue during the Route 66 Centennial year.

Fiscal Impact: An amount not-to-exceed $7,500 is requested to support materials, equipment, and event services necessary for the November 7, 2026, Centennial Celebration. The Route 66 Centennial Committee will also seek sponsorships and donations to supplement City funding and expand event programming. The City’s contribution will be funded from General Fund Reserves.

Recommendation: Authorize the City of Needles to host the Route 66 Centennial Celebration on November 7, 2026, and approve an event budget in an amount not-to-exceed $7,500, funded from General Fund Reserves.

Submitted By: Patrick Martinez, City Manager
City Manager Approval: Date: 1/22/2026
Other Department Approval (when required): Date: 01/22/2026 Agenda Item 14.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: January 27, 2026
Title: City Council Resolution No. 2026-4 Approving a Third Amendment to the Use Permit between the City of Needles and County of San Bernardino for the City-owned property located at 1111 Bailey Avenue and granting authority to the City Manager to execute the agreement.

Background: On May 23, 2023, the City Council approved the Second Amendment to the Use Permit between the City of Needles and the County of San Bernardino for the Cityowned property located at 1111 Bailey Avenue (refer to the attached lease), which expanded the leased premises by 321 square feet (approximately 4,005 square feet total in Building “C”) and updated the rent, utility reimbursement, and maintenance obligations through October 24, 2025.

On October 23, 2025, the San Bernardino County Sheriff’s Department hosted a ribbon cutting ceremony for the remodeled Colorado River Station in Needles, which includes the approximately 4,005-square-foot leased area within Building “C” (refer to the attached floor plan).

The San Bernardino County Sheriff’s Department has requested approval of the attached Third Amendment to the Use Permit, which recognizes a holdover period from October 25, 2025 through March 31, 2026, and extends the term for two years from April 1, 2026 through March 31, 2028, with monthly rent set at $4,636, annual CPI adjustments capped at 3%, and continued Sheriff’s responsibility for HVAC maintenance and replacement.

Fiscal Impact: Approval of the Third Amendment will generate $277,809.29 in lease revenue to the City over the full two-year term (April 1, 2026, through March 31, 2028).

Recommendation: Approve City Council Resolution No. 2026-4 approving the Third Amendment to the Use Permit between the City of Needles and the County of San Bernardino for the City-owned property located at 1111 Bailey Avenue and granting authority to the City Manager to execute the agreement
Submitted By: Patrick Martinez, City Manager
Attachments:

1. Resolution 2026-4 Sheriff Lease Third Amendment

2. Resolution 2023-32 Sheriff Lease Second Amendment

3. Third Amendment to Use Permit (Contract No. 14-47 A-3)

4. Building “C” Floor Plan (Use Area)
City Manager Approval: Date: 1/21/2026
Other Department Approval (when required): Date: 01/22/2026 Agenda Item 15.

RESOLUTION NO. 2026-4

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

APPROVING A THIRD AMENDMENT TO THE USE PERMIT WITH THE COUNTY OF

SAN BERNARDINO FOR THE CITY-OWNED PROPERTY LOCATED AT
1111 BAILEY AVENUE, AND AUTHORIZING THE CITY MANAGER
TO EXECUTE ALL NECESSARY DOCUMENTS.

WHEREAS, The City of Needles (“City”) and the County of San Bernardino (“County”) entered into that certain Use Permit dated February 11, 2014, allowing the County to use a portion of the City-owned building known as Building “C” located at 1111 Bailey Avenue (“Property”) in the City of Needles, as more specifically described in the Use Permit; and
WHEREAS, The parties subsequently amended the Use Permit, including the First Amendment dated October 25, 2022, and the Second Amendment dated August 22, 2023 (collectively, the “Use Permit”); and WHEREAS, The Use Permit expired October 24, 2025, and the parties desire to amend the Use Permit to recognize a holdover period from October 25, 2025 through March 31, 2026, and to extend the term for an additional two (2) years from April 1, 2026 through March 31, 2028, with updated rent and maintenance responsibilities as set forth in the Third Amendment.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Needles, California hereby approves the Third Amendment to the Use Permit between the City of Needles and the County of San Bernardino for the City-owned property located at 1111 Bailey Avenue, extending the term from April 1, 2026 through March 31, 2028, and recognizing the holdover period from October 25, 2025 through March 31, 2026, with rent and related terms as provided therein. Further, that the City Manager is authorized to make minor and administrative modifications to the Agreement as needed and as not to affect its intended purpose.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 27th day of January 2026, 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.

Standard Contract Page 1 of 3

THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY Real Estate Services Department
Department Contract Representative Terry W. Thompson, Director Telephone Number (909) 387-5000
Contractor City Of Needles
Contractor Representative Patrick Martinez - City manager Telephone Number (760)326-2115
Contract Term Two years commencing April 1,
2026 through March 31, 2028
Original Contract Amount $145,875.00
Amendment Amount $131,934.29
Total Contract Amount $277,809.29
Cost Center 7810001000
GRC/PROJ/JOB No. 33003047
Grant Number (if applicable)
IT IS HEREBY AGREED AS FOLLOWS:

WHEREAS, The City of Needles (“City”) and San Bernardino County (“County”) entered into that certain Use Permit dated February 11, 2014 allowing the County to use a certain portion of the City owned building known as building “C” (“building”) located at 1111 Bailey Avenue (“Property”) in the City of Needles, as more specifically described in the Use Permit; and, as amended by the First Amendment dated October 25, 2022; the Second Amendment dated August 22, 2023, (collectively, the “Use Permit”), which Use Permit expired on October 24, 2025; and,
WHEREAS, The County and City now desire to amend the Use Permit to reflect a holdover period from October 25, 2025 to March 31, 2026, with the LANDLORD’S consent, extend the term of the Use Permit, following the said holdover, for the period of April 1, 2026 through March 31, 2028 (the “Third Extended Term”) as more specifically set forth in this amendment (“Third Amendment”).

NOW THEREFORE, in consideration of mutual covenants and conditions, the parties hereto agree the Use Permit, is amended as follows:

A. Effective April 1, 2026, DELETE in its entirety the existing Section 3. TERM and SUBSTITUTE therefore the following as new Section 3. TERM:
“3. TERM: This Use Permit is entered into for a term of two (2) years commencing on April 1, 2026 through March 31, 2028, unless earlier terminated in accordance with this lease.” Contract Number
14-47 A-3
SAP Number
Agenda Item 15.

Revised 7/1/24 Page 2 of 3
B. Effective April 1, 2026, DELETE in its entirety the existing Section 4. RENT AND MAINTENANCE and SUBSTITUTE therefore the following as new Section 4. RENT AND MAINTENANCE:
“4. RENT AND MAINTENANCE: Commencing the Effective Date, County shall pay rent in the sum of $4,636.00 which is payable to the City on or before the first day of each month in advance, Any partial month’s rent shall be prorated based on a thirty day month. County shall regularly maintain the heating and ventilating system servicing said building. Such maintenance shall include, but not limited to, filters, electrical or mechanical repairs, and freon gas replacement due to leaks, COUNTY shall provide any unit replacement including, but limited to, condenser coils, motors and full unit replacement. Except for any obligations of City, County shall maintain and repair the Use Area at all times in as good a condition as existed on the initial commencement date of this Use Permit, including plumbing, electrical, mechanical, windows, interior walls improvements and furnishings that are part of the use area.

Beginning on April 1, 2027, and on each April 1 thereafter during the Term (each, an “Adjustment Date”), the monthly Base Rent shall be adjusted annually by an amount equal to the percentage increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles–Riverside–Orange County, California area (or any successor index thereto), as published by the United States Department of Labor, Bureau of Labor Statistics, for the twelve (12) month period immediately preceding the applicable Adjustment Date. In no event shall any annual increase in Base Rent exceed three percent (3%). If the CPI reflects no increase or a decrease, the Base Rent shall remain unchanged for that year.

C. All other provisions and terms of the Lease shall remain the same and are hereby incorporated by reference. In the event of any conflict between the Lease and this Amendment, the terms and conditions of this Amendment shall control.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Agenda Item 15.

Revised 7/1/24 Page 3 of 3
D. This Amendment may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Amendment.

The parties shall be entitled to sign and transmit an electronic signature of this Amendment (whether by facsimile, PDF or other email transmission), which signature shall be binding on the party whose name is contained therein.

Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Amendment upon request.

END OF THIRD AMENDMENT.

FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department John Tubbs II, Deputy County Counsel John Gomez, Real Property Manager, RESD Date Date Date

SAN BERNARDINO COUNTY CITY OF NEEDLES, A CALIFORNIA CHARTER CITY (Print or type name of corporation, company, contractor, etc.) By
Dawn Rowe, Chair, Board of Supervisors (Authorized signature - sign in blue ink) Dated: Name Patrick J. Martinez
SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract)

DOCUMENT HAS BEEN DELIVERED TO THE
CHAIRMAN OF THE BOARD Title City Manager
Lynna Monell
Clerk of the Board of Supervisors
San Bernardino County
(Print or Type)
By Dated:

Deputy
Address 817 Third Street
Needles, CA 92363
Agenda Item 15.

Agenda Item 15.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: January 27, 2026
Title: Authorize the City to co-sponsor the Run for the Wall with an approximate amount of $2,500 for services
Background: The Run for the Wall (RFTW) is an annual cross-country motorcycle procession honoring Vietnam Veterans. Beginning in Los Angeles, the journey gains participants as it traverses the country, culminating in Washington, D.C., where hundreds of thousands of riders rally at the Vietnam Memorial Wall. The 2026 event is scheduled for May 13, 2026.

The group traditionally arrives in Needles around noon, just in time for lunch. For nearly a decade, the local business community, residents, and veteran organizations have donated a meal to support the 50–60 riders participating at this point in the procession. However, this year’s participation is expected to exceed 350 riders.

Historically, the City Council has co-sponsored the event by donating the Santa Fe Park rental fee (approximately $300), providing traffic control, and ensuring final park cleanup. In return, the City receives sponsorship credit on all promotional materials.

This year, the City has once again been approached to sponsor the event. City Council approval is required to authorize the donation of services.

City staff is working closely with event organizers to address logistics, including parking, street closures, restroom and sink placement, and ensuring that local veterans from Needles and the surrounding region are invited to participate in and enjoy the festivities.

Fiscal Impact: $2,500 includes Santa Fe Park rental fee and staff time for traffic control and clean up.

Recommendation: Authorize the City cosponsor the Run for the Wall with an approximate amount of $2,500 for services
Submitted By: Patrick Martinez, City Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
1/22/2026
01/22/2026
Agenda Item 16.
"'O
C:

Cl)
C>
Cl)
...J
Cl)
.c: I-
�
0 LL
C:
:::s
� Agenda Item 16.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: January 27, 2026
Title: Regional Mohave County Tourism Meeting
Background: The Mohave County Economic Development and Tourism Department hosts monthly regional meetings to discuss local tourism, economic development, and community projects. Mayor Jernigan attends these meetings in an effort to promote tourism in Needles, and the larger Tri-State area. She recently attended a meeting on January 15, 2026 in Peach Springs, AZ and is seeking travel reimbursement, and authorization to attend future meetings to continue promoting tourism in the Tri-State area.

Fiscal Impact: Mileage only (meal was provided) to and from Peach Springs, AZ is $158.20.

Future meetings in Mohave County. General Fund travel per diem account 2025-2026 budget.

Recommendation: Authorize Mayor Jernigan’s travel reimbursement and continued participation in the Mohave County Economic Development and Tourism meetings.

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

Other Department Approval (when required): Date:
1/22/2026
01/22/2026
Agenda Item 17.

Agenda Item 17.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: January 27, 2026
Title: City / County Conference 2026
Background: The annual City / County Conference happens yearly in early May, at the Lake Arrowhead Resort.

The conference is a good opportunity to network with other cities and various County representatives.

Critical Timeline: This is a very popular event. Rooms are limited and the event is sold out very quickly.

Fiscal Impact: Cost for the full conference is approximately $300. Hotel accommodation approximately $500 for two nights. Travel expenses (mileage and per diem) approximately $400. Total cost is approximately $1200 per person. General Fund travel per diem account 2025-2026 budget.

Recommended Action: Authorize those interested to attend the 2026 City / County Conference scheduled for early May, 2026, in Lake Arrowhead
Submitted By: Candace Clark, City Clerk
City Manager Approval: Date:

Other Department Approval (when required): Date:
1/22/2026
01/22/2026
Agenda Item 18.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: January 27, 2026
Title: League of California Cities (LCC) City Leaders Summit Background: The League of California Cities (LCC) City Leaders Summit is in Sacramento April 22-24, 2026. Councilmembers Campbell, McCorkle and Pogue, and Mayor Jernigan have previously attended.

Critical Timeline: Registration Deadline is April 15, 2026. Discounted hotel rate cut-off is March 31, however, rooms at this rate are limited and book up very quickly.

Fiscal Impact: Registration cost for the full conference is $650. Hotel accommodation per person is approximately $1600 for three nights. Flight approximately $400 per person round trip; per diem and mileage estimated cost is $450.

Estimated total cost per councilmember is approximately $3,200. General Fund travel per diem account 2025-2026 budget.

Recommendation: Authorize those interested to attend the League of California Cities (LCC) City Leaders Summit in Sacramento April 22-24, 2026.

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

Other Department Approval (when required): Date:
1/22/2026
01/22/2026
Agenda Item 19.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA Regular Special
Meeting Date: January 27, 2026
Title: Innovating Commerce Serving Communities (ICSC)
Background: The ICSC Event is at the Las Vegas Convention Center May 18-20, 2026. We will have a booth to display information about our city and to meet with potential businesses interested in what our city has to offer. Council Members Campbell, McCorkle, Pogue, Longbrake, and Mayor Jernigan have previously attended.

Advanced Registration ends February 17, 2026.

Fiscal Impact: Cost for the full conference is $875 per councilmember.Hotel accommodation approximately $600 for two nights plus travel expenses. Estimated cost per councilmember is approximately $1800. General Fund travel per diem account 2025-2026 budget.

Recommendation: Authorize those interested to attend the ICSC Event at the Las Vegas Convention Center on May 18-20, 2026
Submitted By: Candace Clark, City Clerk
City Manager Approval: Date:

Other Department Approval (when required): Date:

1/22/2026
01/22/2026
Agenda Item 20.

Page 1 of 6 ends

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

MEMORANDUM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PATRICK J. MARTINEZ, CITY MANAGER
SUBJECT: WEEKLY MEMORANDUM
DATE: January 9, 2026

1. Needles Pride Program – Community Cleanup Day
As part of the City’s ongoing Needles Pride Program, staff is coordinating a community cleanup at Duke Watkins Park to support neighborhood pride, cleanliness, and shared stewardship of public spaces. The cleanup will take place on Saturday, January 17, 2026, from 8:00 a.m. to 9:00 a.m. at Duke Watkins Park, located near Flip Mendez Parkway and J Street. Residents are invited to join friends and neighbors in helping beautify the area; no registration is required. The City will provide cleanup supplies, including bags, pickers, and gloves. This effort reinforces the City’s commitment to visible, grassroots improvements that encourage community engagement and complement recent investments in park infrastructure.

2. Water Main and Manifold Improvements Project – Construction Update The City of Needles’ Water Main and Manifold Improvements Project has resumed, with the contractor back in town to complete remaining phases of this critical infrastructure investment. Work is currently underway along River Road, with crews also returning to complete improvements in the area of Monterey Avenue and Arizona Avenue. This project represents a $1.3 million investment authorized by the NPUA to replace deteriorated water distribution mains, service laterals, and key system components to improve reliability and long-term system performance. The upcoming scope includes replacement of the 6-inch distribution main on River Road near Park Drive and upgrades to the pipe manifold at the golf course maintenance yard. Photos of current construction activity are attached for Council’s reference. This project is funded through emergency grant assistance from the State of California’s Drinking Water State Revolving Fund, and the City appreciates the continued partnership of the State Water Resources Control Board in strengthening Needles’ water infrastructure.

Page 2 of 6 ends

3. Well No. 11 Treatment Plant Upgrade – System Reliability Enhancement As part of the Well No. 11 Treatment Plant Upgrade Project, contractor Layne Christensen has completed a motor replacement at Well No. 11, significantly improving system reliability and operational redundancy. The replaced motor allows the City to retain the existing motor as a backup, ensuring both wells now have dedicated backup motors available if needed. This upgrade strengthens the City’s ability to maintain uninterrupted water service and respond quickly to mechanical issues. The Well No. 11 Treatment Plant Project, which broke ground on May 31, 2023, represents an $8.9 million investment in modernizing Needles’ water infrastructure and is now in its final stages of system calibration for startup. The facility will treat Well No. 11 and support Wells No. 12 and No. 15, improving water quality by addressing long-standing iron and manganese contamination. This project supports the City Council’s goal of investing in critical infrastructure to ensure long-term system reliability, public health, and service continuity for the community.

4. Public Works – Crack Seal Program and Street Maintenance Update This week, Public Works crews continued implementation of the City’s crack seal program as part of ongoing preventative maintenance efforts to extend the life of local streets. Crews completed crack sealing north of River Road and North K Street, as well as along Civic Center Drive adjacent to the Recreation Center. In addition, pothole repairs were completed on National Old Trails Road and Airport Road to address localized pavement failures and improve driving conditions. This work builds on the City’s recent investment in crack seal equipment and reflects a proactive maintenance approach that protects prior roadway investments and reduces long-term repair costs. These visible improvements demonstrate the City’s continued commitment to reinvesting in its streets, enhancing safety, and maintaining community pride. Refer to the attached images for a snapshot of work in progress. Residents can report concerns by calling 760-326-5700 (press 9) or using the Needles Connect app on Google Play Store (Android) and Apple Store (iOS). Together, we continue to make Needles a brighter and more vibrant place to live.

5. Flood Control Coordination – Graffiti Abatement near D Street Bridge Following recent community complaints regarding graffiti on Flood Control facilities near the D Street Bridge—highly visible from D Street and Interstate 40—City staff coordinated with Flood Control to address vandalism within multiple culvert and channel areas in the vicinity. Flood Control crews responded and completed graffiti abatement efforts, improving the appearance of these highly visible structures and addressing community concerns. The City of Needles appreciates Flood Control’s prompt response and continued

Page 3 of 6 ends

collaboration in maintaining shared infrastructure and public-facing areas. This coordination supports City Council goals related to community pride, public safety, and effective inter-agency partnerships. Refer to the attached photos for a snapshot of the completed work.

6. Duke Watkins Park – Small Dog Park Lighting Improvement This week, City electric crews successfully installed a new solar light at the Duke Watkins Park small dog park to improve visibility and enhance safety for park users. The lighting was added in response to recent vandalism in the nearby restroom facilities and to better illuminate access to the dog park. This targeted improvement builds on the City’s recent investment in Duke Watkins Park and reflects a continued focus on maintaining public amenities following major capital improvements. The installation supports safer use of the park during early morning and evening hours while helping deter vandalism. This effort aligns with City Council goals related to public safety, park maintenance, and community pride. Refer to the attached image for a glimpse of the new infrastructure.

7. City Website – Route 66 Centennial and Railcam Features The City’s redesigned website, launched in June 2025 in collaboration with Tripepi Smith, continues to serve as a key resource for residents, businesses, and visitors by improving access to City services, community information, and economic development materials. As a reminder to Council, the website is also being actively used as a tourism and outreach platform through two featured highlights now prominently available online. First, the Route 66 Centennial page supports the City’s strategy to position Needles as a must-stop destination at the gateway to California ahead of the 100th anniversary in 2026, while providing a central hub for Centennial updates and local programming. Second, the site highlights the City’s Railcam initiative, including the new PTZ camera donated by SouthWest RailCams, expanding real-time visibility of Needles to a national and international audience and strengthening digital tourism exposure. These features reinforce the City’s ability to convert online interest into visitation and community engagement. This work supports City Council goals focused on promoting tourism, improving public relations, and strengthening the City’s business-friendly image through modern communication tools.

8. Community Events Calendar Now Live
The City’s new website now features a Community Events Calendar—a single source for community events, civic meetings, and community programs. Local organizations are invited to submit or update events through the City Clerk’s Office to keep the calendar current and inclusive. Contact Candace Clark at [email protected] to participate. Residents can subscribe and sync

Page 4 of 6 ends

the calendar to mobile devices for real-time updates, making it easier to stay informed and engaged.

9. Assemblymember Gonzalez Mobile Office Hours
As a reminder, Assemblymember Jeff Gonzalez will host Mobile Office Hours at El Garces on Thursday, January 15 from 12:00 p.m. – 3:00 p.m. This provides residents with convenient local access to state legislative assistance and resources without needing to travel outside the community. Constituents will have the opportunity to meet directly with the Assemblymember’s office for support on state-related matters and services. The City of Needles appreciates Assemblymember Gonzalez’s continued engagement and responsiveness to the needs of rural communities and extends its gratitude to him and his staff for their ongoing support.

10.Needles Branch Library – Winter Programs and Community Activities The Needles Branch Library has launched its winter programming schedule, offering a range of educational and enrichment activities for youth, adults, and families throughout January and February. Programs include weekly Craft Corner and Storytime for children ages 6–11, a Basic Computer Class for adults, and special events such as a Family Paint Night on Tuesday, February 17, at 5:30 p.m., and the nationwide “Read for the Record” storytime event on Thursday, February 26, at 3:00 p.m. The Library will observe a brief offsession period from February 15–28, with limited programming during that time.

These offerings provide accessible learning opportunities, promote literacy, and support family engagement within the community. This programming aligns with City Council goals focused on enhancing community amenities, supporting youth and families, and improving overall quality of life.

11.Spring Youth Sports Registration Now Open
Spring youth sports registration is now underway, with sign-ups opening for Needles Little League Baseball and Colorado River Area Girls Softball (CRAGS) (see attached flyers for full details). Both programs will offer in-person registration assistance at the Needles Recreation Center beginning January 12.

CRAGS will complete sign-ups in person, while Needles Little League Baseball registration is required to be completed online, with staff available onsite to assist families in completing the online registration form. These spring programs provide a positive opportunity for local youth to stay active, build skills, and develop teamwork while strengthening community pride. This effort supports the City Council’s goal of promoting sports and recreational activities that enhance quality of life and attract visitors to the community. The City appreciates the volunteers, coaches, and board members who help make youth sports possible and encourages families to register early. Additional Needles Little League updates are available through the “Needles Little League” Facebook group.

Page 5 of 6 ends

12.Youth Fundraiser Supporting Needles Recreation Center Needles Eagles Aerie 2599 will host its annual youth fundraiser featuring a baked potato, soup, and salad bar to support the Needles Recreation Center and help purchase new All-Star basketball uniforms. The fundraiser will take place on January 16, 2026 from 5:00 p.m. – 8:00 p.m. at 729 Front Street, Needles, CA 92363. The event is open to members and guests only and will also include a 50/50 raffle. This effort reflects strong community partnership and directly supports the City Council’s goal of promoting youth sports and recreational opportunities that enhance quality of life for Needles families. The City appreciates Needles Eagles Aerie 2599 for its continued support of local youth programs.

13.Needles Elks Junior Golf League
Needles Elks Lodge #1608, in partnership with River Edge, Los Lagos, and Huukan Golf Courses, is offering a Junior Golf League for students in 6th through 9th grade at no cost to participants. The program provides local youth with an opportunity to learn the fundamentals of golf while gaining playing experience on multiple regional courses. The league will begin on January 24, 2026, and run through March 2026, concluding with a hosted luncheon for participating students and their immediate families. Course play will rotate among River Edge, Los Lagos, and Huukan Golf Courses, subject to availability.

Families interested in participating may text registration information to 917-797- 1205 or contact League Coordinator Brian Dooley at 917-882-9711. For River’s Edge course-related questions, residents may contact Golf Professional JJ DeLeon at (760) 326-3931. This program supports the City Council’s goal of promoting youth recreation, healthy activities, and strong community partnerships.

14.Needles Sunday Farmers Market at Santa Fe Park
The Needles Sunday Farmers Market continues each week at Santa Fe Park, providing residents and visitors with an opportunity to shop local and support small businesses. Hosted by Tumbleweed Markets Inc., the market features a rotating mix of vendors offering fresh produce, baked goods, coffee, handmade items, flowers, and other local goods. The market is held every Sunday through March 31, 2026 from 8:00 a.m. – 12:00 p.m. at Santa Fe Park. The market is also welcoming new vendors, further expanding opportunities for local entrepreneurs and artisans. This effort supports the City Council’s goal of promoting community engagement while strengthening local economic activity.

Additional vendor information is available by contacting Market Manager Patrick Lauterio at (760) 848-8289 or [email protected].

Page 6 of 6 ends

15.Needles Women’s Club Fundraiser – Turkey Soup Luncheon The Needles Women’s Club will host its monthly fundraising luncheon on Tuesday, January 13, supporting programs that promote women’s empowerment, youth activities, scholarships, and civic engagement. This month’s menu features turkey soup, salad, cornbread, and dessert for $10.

Orders may be placed online, with options for pickup or delivery within Needles.

As a 501(c)(3) nonprofit, the Women’s Club relies on community participation to continue its charitable and civic work. Residents are encouraged to enjoy a meal while supporting the positive impact the Women’s Club continues to make in the community. Order information is available at https://bit.ly/TurkeyWC.

16.Needles Animal Shelter – “Adopt a Pet, Don’t Shop” Program Success The Needles Animal Shelter’s “Adopt a Pet, Don’t Shop” adoption campaign concluded successfully, resulting in 10 pets being adopted into permanent homes and helping reduce shelter crowding during the holiday season. The campaign encouraged families to consider adoption as a meaningful way to support local animal welfare while providing animals the opportunity for a safe and caring home. Although the promotional period has ended, the Shelter remains at capacity and continues to encourage adoptions to support ongoing operations and animal care. The Shelter is open Monday–Friday from 8:00 a.m. – 2:00 p.m., and residents may call 760-326-4952 to schedule a visit or request adoption information. This effort supports the City Council’s goal of strengthening community services and enhancing quality of life through responsible public stewardship. The City appreciates the community’s support and compassion in helping animals find permanent homes.

17.Society of St. Vincent de Paul – Open House & Pantry Dedication The City of Needles is pleased to share that the Society of St. Vincent de Paul will host an open house and dedication of its newly improved pantry, providing the community an opportunity to view recent facility upgrades and learn more about its services. The event will take place on January 12, 2026, from 5:00 p.m. – 6:00 p.m., at 839 Front Street, with refreshments available. This event reflects continued investment in community-based services that support individuals and families in need. The City appreciates St. Vincent de Paul’s ongoing commitment to serving Needles residents and strengthening the local social safety net. RSVP information is available at
[email protected] or (928) 299-9872.

1. NEEDLES PRIDE

3. WATERMAIN INFRASTRUCTURE

3. WELL NO. 11 INFRASTRUCTURE

4. CRACK SEAL PROGRAM

5. FLOOD CONTROL COORDINATION

6. DUKE WATKINS LIGHTING

7. CITY WEBSITE FEATURES

9. ASSEMBLYMEMBER OFFICE HOURS

10. NEEDLES LIBRARY PROGRAMS

11. SPRING YOUTH SPORTS

12. FUNDRAISER EAGLES AERIE 2599

13. ELKS JUNIOR GOLF LEAGUE

15. NEEDLES WOMEN’S CLUB FUNDRAISER

17. ST. VINCEMT DE PAUL OPEN HOUSE

Page 1 of 5 ends

MEMORANDUM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PATRICK J. MARTINEZ, CITY MANAGER
SUBJECT: WEEKLY MEMORANDUM
DATE: January 16, 2026

1. OHMV Master Plan – Signage Plan Approved
The City Council is starting the year off with a bang, taking a major step forward in implementing the City’s Off-Highway Motor Vehicle (OHMV) Master Plan by approving the Designated Routes Signage Plan through Resolution 2026-2 on January 13, 2026. This action is important because the signage plan establishes clear, enforceable OHMV corridors and provides the safety and route clarity needed for consistent public use and law enforcement implementation, while supporting connectivity between trail access points and local service and lodging facilities. Next steps include final sign fabrication and installation throughout the designated routes, a community workshop focused on public education, followed by a community ribbon-cutting event anticipated within the next couple of months. Refer to the attached map of the OHMV Master Plan routes. Residents with questions regarding the OHMV Master Plan or signage implementation are encouraged to contact the City Manager’s Office by email at [email protected].

2. Tri-State Community Healthcare Center – Council Presentation At this week’s City Council meeting, representatives from Tri-State Community Healthcare Center provided an overview of the critical healthcare services they deliver to the Needles community. Since 2011, Tri-State has served as a trusted local provider and an essential partner in improving access to care in our region.

Their presentation highlighted the wide range of services available to residents, including primary care, pediatrics, immunizations, dental, behavioral health, pharmacy support, mobile clinic outreach, ultrasound, and telehealth. The City of Needles appreciates Tri-State for engaging directly with the public, sharing valuable resources, and increasing awareness of available healthcare options.

Their participation reinforced our shared commitment to improving patient access and advancing health equity in Needles. Tri-State’s Needles clinic is located at 820 W. Broadway Street and can be reached at (760) 326-0222.

Page 2 of 5 ends

3. On-The-Go Health – Mobile Medical Clinic in Needles
San Bernardino County Department of Public Health continues to provide convenient healthcare access in Needles through its “On-The-Go Health” Mobile Medical Clinic. The clinic is available to Medi-Cal patients and those who have applied for Medi-Cal, and offers both primary care and urgent care services, including adult health screenings, diabetes and hypertension testing, pregnancy testing, minor wound care, UTI testing, and hepatitis C screening. The mobile clinic visits Needles every Thursday from 8:00 a.m. to 4:00 p.m. and is located in the parking lot of the Transitional Assistance Department at 1090 E.

Broadway Street. Appointments are highly recommended to ensure timely service. To schedule a mobile clinic appointment, residents may call 1(800) 722- 4777 (press 5) or visit dph.sbcounty.gov.

4. Tri-State Community Healthcare – Mixed Produce Community Giveaways The City of Needles would like to recognize and thank Tri-State Community Healthcare and its partners for their continued leadership and generosity in providing Mixed Produce Giveaway events for local residents. Since the beginning of the year, this effort has distributed more than 160,000 pounds of fresh produce to families in our community, improving access to nutrition and easing financial strain for households in need. The City also appreciates the sponsors and supporters who make this program possible through ongoing investment and collaboration. This initiative supports City Council goals by strengthening community partnerships, improving quality of life, and promoting a healthy, family-friendly community.

5. Community Events Calendar Now Live
The City’s new website now features a Community Events Calendar—a single source for community events, civic meetings, and community programs. Local organizations are invited to submit or update events through the City Clerk’s Office to keep the calendar current and inclusive. Contact Candace Clark at [email protected] to participate. Residents can subscribe and sync the calendar to mobile devices for real-time updates, making it easier to stay informed and engaged.

6. Needles Pride Program – Community Cleanup Day Reminder Staff is issuing a final reminder that the Needles Pride Program Community Cleanup Day is tomorrow, Saturday, January 17, 2026, from 8:00 a.m. to 9:00 a.m. at Duke Watkins Park. This cleanup is intended to support park readiness and neighborhood pride as the upcoming sports and visitor season approaches. The event is open to the public, and no registration is required. The City will provide all supplies, including bags, pickers, and gloves. Staff will be on-site to coordinate volunteer check-in and logistics. Council is encouraged to help spread the word to residents and community partners to boost participation.

Page 3 of 5 ends

7. Home Run Derby Fundraiser (Last Chance to Register)
The Needles Little League will be hosting its Home Run Derby on Saturday, January 24 at 12:00 p.m. at Ed Parry Field as the final fundraiser ahead of the regular season. This family-friendly event is the community’s last chance to register and participate while supporting the Little League Shade Structure Project. The derby will feature a structured format with participant awards, an open snack bar, and live music by DJ Loke. The City supports this event, which aligns with City Council goals to promote youth recreation, strengthen community partnerships, and enhance community amenities that improve quality of life. For additional information, please contact Josh Raley at 760-220-7886.

8. Rivers Edge Golf Course – Upcoming Tournaments and Events Rivers Edge Golf Course is in full swing and continues to strengthen its reputation as one of the premier recreational destinations in the Tri-State Region. With outstanding course conditions and some of the finest greens in the area, Rivers Edge is hosting a strong lineup of upcoming tournaments and events, including the January Blues Tournament (January 17), Golf Clinic (February 14), Wilson Birthday Bash Tournament (February 21), and the Teeing Off on Route 66 Tournament (March 7). These events support local tourism, increase community activity, and position Rivers Edge as a growing championship-caliber destination. For tee times or tournament coordination, reach out to JJ DeLeon at Rivers Edge Golf Course at (760) 326-3931.

9. Needles Chamber of Commerce – Sponsorship Opportunity The Needles Area Chamber of Commerce is currently seeking sponsors for its upcoming “Teeing Off on Route 66” Golf Tournament on March 7, 2026.

Sponsorship opportunities are available for local businesses and community partners interested in supporting the event while promoting Needles tourism and economic activity. The City encourages interested businesses to participate and partner with the Chamber in supporting this community event. For more information on sponsorship opportunities, contact Tena at [email protected] or (760) 326-2050.

10.Route 66 100th Anniversary Kickoff – Info Fair & Classic Car Show The City of Needles is excited to kick off the Route 66 100th Anniversary with the Route 66 Info Fair and a Classic Car Show at El Garces. The celebration will take place on Saturday, February 14, 2026, from 9:00 a.m. to 2:00 p.m. (PST) at 950 Front Street and will bring Route 66 heritage to life through vendors, Route 66 memorabilia and information, food trucks, complimentary El Garces tours, and community activities. A Classic Car Show will be added this year for the first time, providing an additional attraction for residents, visitors, and Route 66 travelers. Vendor spaces are complimentary and include a table and two chairs, with setup beginning at Friday at 12:00 p.m. (PST). For vendor reservations or event information, contact Mayor Jernigan at (760) 221-3211.

Refer to the attached flyer for additional details.

Page 4 of 5 ends

11.Needles Chamber “Good Morning Needles” – Palo Verde College Update At this month’s Good Morning Needles Chamber Coffee, the City appreciated hearing from Palo Verde College – Needles Center regarding the continued value the College provides to our community through affordable and accessible higher education. Palo Verde College continues to expand opportunities for residents, including low-cost courses at $46 per unit and, in some cases, free college tuition for Needles residents. High school students can also earn up to 11 units at no cost toward an associate degree or certificate program. The College highlighted several workforce training pathways including nursing, early childhood education, construction building trades, welding, phlebotomy, and microbiology. The City encourages residents to stay engaged with these opportunities and attend the Chamber’s monthly gatherings, which continue to support community connection and economic vitality. The Needles Area Chamber of Commerce is located at 950 Front Street and can be reached at [email protected] or (760) 326-2050.

12.Palo Verde College Needles Center – Spring 2026 Registration The City is pleased to share that Palo Verde College’s Needles Center is now accepting students for the Spring 2026 semester. New Student Orientation will be held Thursday, January 22 at 10:00 a.m. and classes begin Monday, January 26, 2026. Registration closes January 30, 2026. Residents interested in enrolling or learning more are encouraged to visit www.paloverde.edu or contact the Needles Center at (760) 326-5033.

13.Palo Verde College Blood Drive
Palo Verde College – Needles Center will be hosting a community blood drive at 725 W. Broadway. The blood drive will take place on Wednesday, January 21, from 10:00 a.m. to 1:45 p.m. and residents are encouraged to participate if they are able. Donating blood is a simple way to make a meaningful difference and help ensure lifesaving supplies are available for those in need. As an added incentive, all donors will be entered for a chance to win a $500 gift card.

Appointments are encouraged to help streamline the donation process and reduce wait times. To schedule an appointment, visit vitalant.org or call 877- 258-4825 and use blood drive code 100563204. The City appreciates Palo Verde College and Vitalant for their partnership in supporting this important community service opportunity.

14.Palo Verde College– Needles Center Scholarship 5K Color Run & Walk Residents are encouraged to sign up for the Needles Center Scholarship 5K Color Run & Walk, hosted by the Palo Verde College Foundation on Saturday, March 21, 2026 at Palo Verde College. Check-in begins at 7:30 a.m. and the event starts at 9:00 a.m. Registration is $25 per person and includes a t-shirt and meal. Last year’s event raised $8,000, supporting 64 students through scholarship assistance. Participants must register by March 14, 2026 to secure a spot. For more information or to register, visit paloverde.edu or contact the Needles Center at (760) 326-5033.

Page 5 of 5 ends

15.St. Vincent de Paul – Open House & Pantry Dedication The Society of St. Vincent de Paul recently hosted an open house and dedication of its newly improved pantry, providing residents an opportunity to tour recent facility upgrades and learn more about available services. The City of Needles appreciates St. Vincent de Paul’s continued commitment to supporting individuals and families in need and strengthening the local social safety net. This event reflects the importance of community partnerships that help expand access to resources and improve quality of life for residents. Refer to the attaches imaged for a glimpse.

16.Assemblymember Gonzalez Mobile Office Hours
Assemblymember Jeff Gonzalez’s Mobile Office Hours were successfully held at El Garces on Thursday, January 15, providing residents with convenient local access to state legislative support and resources. Three representatives from Assemblymember Gonzalez’s staff attended to meet with residents, listen to community concerns, and gain a better understanding of local needs and priorities. The City of Needles appreciates Assemblymember Gonzalez and his staff for their continued engagement and responsiveness, and for taking the time to connect directly with our community and serve our residents.

17.Needles Sunday Farmers Market at Santa Fe Park
The Needles Sunday Farmers Market continues each week at Santa Fe Park, providing residents and visitors with an opportunity to shop local and support small businesses. Hosted by Tumbleweed Markets Inc., the market features a rotating mix of vendors offering fresh produce, baked goods, coffee, handmade items, flowers, and other local goods. The market is held every Sunday through March 31, 2026 from 8:00 a.m. – 12:00 p.m. at Santa Fe Park. The market is also welcoming new vendors, further expanding opportunities for local entrepreneurs and artisans. This effort supports the City Council’s goal of promoting community engagement while strengthening local economic activity.

Additional vendor information is available by contacting Market Manager Patrick Lauterio at (760) 848-8289 or [email protected].

18.Needles Elks Lodge – Wine, Cheese & Chocolate Pairing Event The Needles Elks Lodge #1608 will be hosting its second annual Wine, Cheese, and Chocolate Pairing Event, open to both members and non-members. The event will take place on February 7, 2026, from 2:00 p.m. to 5:00 p.m. at the Needles Elks Lodge located at 1000 Lilyhill Drive. Ticket prices are $25 per person, and proceeds will support local youth scholarships. Residents interested in attending are encouraged to purchase tickets in advance. To reserve tickets, contact Sharon Dooley at (917) 797-1205. Refer to the attached flyer for more information.

1. OHMV MASTER PLAN SIGNAGE PLAN

2. TRI-STATE COMMUNITY HEALTHCARE

3. ON-THE-GO HEALTH MOBILE CLINIC

6. NEEDLES PRIDE

7. HOME RUN DERBY

8. RIVERS EDGE GOLF COURSE

9. NEEDLES CHAMBER GOLF SPONSORSHIP

10. ROUTE 66 100TH INFO FAIR & CLASSIC CAR SHOW

11. GOOD MORNING NEEDLES CHAMBER

12. PALO VERDE COLLEGE NEEDLES

13. PALO VERDE BLOOD DRIVE

14. PALO VERDE COLLEGE

15. ST VINCENT OPEN HOUSE

16. ASSEMBLYMEMBER MOBILE OFFICE HOURS

17. FARMERS MARKET

18. NEEDLES ELKS LODGE EVENT

Needles City CouncilJanuary 27, 2026

Needles City Council
January 27, 2026