Agenda packet — Needles City Council, August 11, 2026

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, AUGUST 11, 2026
COUNCIL EXECUTIVE SESSION – 5:00 PM
CITY COUNCIL MEETING – 6:00 PM

THE PUBLIC MAY ATTEND VIA TEAMS AND MAY SUBMIT ANY COMMENTS IN WRITING PRIOR TO NOON ON THE DAY OF THE MEETING BY EMAILING [email protected] TO JOIN THE LIVE TEAMS MEETING: log into the City of Needles website at www.cityofneedles.com to access the agenda and Click here to join the meeting
If asked, enter the following: Meeting ID: 202 746 159# OR listen in and participate by calling Teams: 1-323-488-2227 - Meeting ID: 202 746 159# The meetings are being recorded.

CALL TO ORDER

ROLL CALL

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

RECESS TO EXECUTIVE SESSION

EXECUTIVE SESSION
a. Conference with Real Property Negotiators pursuant to Government Code Section 54956.8. Property: Tri-State Alano Club located at 801 Third Street, Needles, CA. Agency Negotiator:

City Manager Patrick Martinez or his designee. Negotiating Parties: City of Needles as potential lessor and Tri-State Alano Club as Potential tenant. Under negotiation: Price and Terms of Potential lease. b. CONFERENCE WITH LABOR NEGOTIATORS – Pursuant to Government Code Section 54957.6 Agency designated representatives: Mayor Janet Jernigan, Vice Mayor Ellen Campbell, Councilman Henry Longbrake Unrepresented Employee: City Manager

CALL TO ORDER

ROLL CALL
EXECUTIVE SESSION REPORT - by City Attorney

PLEDGE OF ALLEGIANCE

INVOCATION

APPROVAL OF AGENDA

CONFLICT OF INTEREST

CORRESPONDENCE

INTRODUCTIONS
CITY ATTORNEY – Parliamentary Procedures
As a courtesy to those in attendance, we would ask that cell phones be turned off or set in their silent mode.

Thank you
PUBLIC APPEARANCE - Persons wishing to address the City Council on subjects other than those scheduled are requested to do so at this time. When called by the Mayor, please announce your name and address for the record. In order to conduct a timely meeting, a three-minute time limit per person has been established by Municipal Code Section 2-18. Amendments to the California Government Code Section 54950 prohibits the City Council from taking action on a specific item until it appears on the agenda.

PRESENTATION
(A ten-minute time limit per presentation has been established per Municipal Code Section 2-18.)

1. Assistant Fire Marshal Curtis Markloff will give a presentation on the newly adopted San Bernardino County Fire Code Ordinance FPD 26-02 AND Council consideration to waive the full reading and introduce by title only Ordinance 685-AC adopting by reference the 2025 California Fire Code, California Code of Regulations, Title 24, Part 9, together with applicable appendices and amendments adopted by the San Bernardino County Fire Protection District through Ordinance FPD 26-02 and direct the City Clerk to schedule and publish notice of a public hearing for September 8, 2026

HACN / COUNCIL REGULAR ITEMS

2. Receive and file the Housing Authority PHAS Recovery Plan Update 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 3 through 5 on the Consent Calendar by affirmative roll call vote. (ACT)

3. Approve the Warrants Register through August 11, 2026

4. Approve the Minutes of July 28, 2026

5. Accept and File the Treasurer's Report for the month of July 2026

END OF COUNCIL CONSENT CALENDAR

REGULAR COUNCIL ITEMS

6. Resolution 2026-34 of the City Council of the City of Needles, California approving the Measure I Five Year Local Street Capital Improvement for Fiscal Years 2026/2027 - 2030/2031 (ACT)

7. Resolution 2026-35 Authorizing the Submission of a Petition to the United States Department of Transportation Requesting a Time Zone Boundary Change for the City of Needles (ACT)

8. Waive the full reading and introduce by title only Ordinance 686-AC, Amending Chapter 14, Article I, of the Needles Municipal Code by Adding Section 14-21, "Sale of Kratom Prohibited." (ACT)

CITY ATTORNEY REPORT

CITY CLERK REPORT

CITY MANAGER REPORT
City Manager's Report for the weeks of July 24 and 31, 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: August 7, 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 7th day of August 2026
/s/        Candace Clark, CPMC, CMC, City Clerk
City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: August 11, 2026
Title: Ordinance 685-AC adopting by reference the 2025 California Fire Code, California Code of Regulations, Title 24, Part 9, together with applicable appendices and amendments adopted by the San Bernardino County Fire Protection District through Ordinance FPD 26-02 Background: The California Building Standards Commission adopts updated editions of the California Building Standards Code on a triennial basis. The California Fire Code is contained in Title 24, Part 9, of the California Code of Regulations and establishes minimum fire and life-safety standards applicable to buildings, structures, premises, operations, and activities throughout the state.

Fire protection and prevention services within the City of Needles are provided through the San Bernardino County Fire Protection District. On May 19, 2026, the Board of Directors for the San Bernardino County Fire Protection District (SBCFPD) adopted Ordinance No. FPD 26-02 (“Ordinance”). The Ordinance adopts the San Bernardino County Fire Protection District Fire Code, which adopts by reference the 2025 Edition of the California Fire Code, along with certain changes, modifications, amendments, additions, deletions, and exceptions to the 2025 Edition of the California Fire Code, relating to fire regulations, and the 2025 Wildland-Urban Interface (WUI) Code. Adoption would maintain consistency between the City’s municipal regulations and the fire-code requirements administered and enforced by the Fire Protection District within the City of Needles.

Except as otherwise provided herein, the proposed City ordinance would adopt by reference the 2025 California Fire Code, together with the applicable appendices, local amendments, and administrative provisions adopted by the San Bernardino County Fire Protection District through Ordinance No. FPD 26-02 (Attached as Exhibit A), subject to the modifications provided below.
a) Section 903.2 of FPD 26-02 concerning automatic fire sprinkler systems, including any and all amendments or successors thereto that may hereafter be made and adopted, shall not apply within the boundaries of the City and it is deemed stricken in its entirety
b) Exception number 2 of Section 503.2.3, "Surface" of FPD 26-02 including any and all amendments and successors thereto that may hereafter be made and adopted, shall not apply within the boundaries of the City and is deemed stricken and in place thereof Fire Apparatus Access Roads Surface Alternative Amendment dated June 12, 2020, attached hereto as Exhibit "B" is hereby re-adopted and shall continue in full force and effect. c) Section 505.1, "Address Identification" of the San Bernardino County Fire Protection District Ordinance FPD 26-02 including any and all amendments thereto that may hereafter be made and adopted, shall not apply to existing buildings within the boundaries of the City and to evidence the same the word "existing" is deemed stricken
Fiscal Impact: None
Recommendation: Waive the full reading and introduce by title only Ordinance 685-AC adopting by reference the 2025 California Fire Code, California Code of Regulations, Title 24, Part 9, together with applicable appendices and amendments adopted by the San Bernardino County Fire Protection District through Ordinance FPD 26-02 and direct the City Clerk to schedule and publish notice of a public hearing for September 8, 2026
Submitted By: Candace Clark, City Clerk
City Manager Approval: Date:

Other Department Approval (when required): Date:
8/6/2026
Agenda Item 1.

ORDINANCE NO. 685-AC

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA, ADOPTING SAN BERNARDINO COUNTY ORDINANCE FPD 26-02
WHICH ADOPTS BY REFERENCE ITS VERSION OF 2025 EDITION OF THE

CALIFORNIA FIRE CODE SUBJECT TO MODIFICATIONS REFERENCED HEREIN AND RESCINDING PRIOR ORDINANCE NO. 662-AC
WHEREAS, the City of Needles has been annexed as part of the San Bernardino County Fire Protection District, providing fire protection and services; and
WHEREAS, the San Bernardino County Fire Protection District has adopted 'the San Bernardino County Fire Protection District Fire Code referencing the 2025 Edition of the California Fire Code; and WHEREAS, the Board of Directors of the San Bernardino County Fire Protection District has adopted the 2025 Edition of the California Fire Code along with certain changes, modifications, amendments, additions, deletions, and exceptions, relating to fire regulations as shown in Exhibit A; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEEDLES AS FOLLOWS:

SECTION 1. The City Council HEREBY FINDS AND DETERMINES that this activity is not subject to the California Environmental Quality Act ("CEQA") as the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. (14C.C.R. 15060) SECTION 2. The City Council HEREBY FINDS AND DETERMINES that it is in the interests of the health, safety and general welfare of the City and its residents to amend CHAPTER 9 ARTICLE 1, SECTION 9-1 OF THE NEEDLES MUNICIPAL CODE TO READ AS FOLLOWS: :
9-1 Adoption of San Bernardino County Ordinance FPD 26-02 referencing the 2025 Edition of the California Fire Code Subject to Modifications
Except as otherwise provided herein, the City Council hereby adopts San Bernardino County Ordinance FPD 26-02, a copy of which is attached hereto and incorporated herein by this reference as Exhibit "A" as amended by the County Board of Supervisors from time to time, subject to the modifications provided below in subsections (a)-(c).
a) Section 903.2 of FPD 26-02 concerning automatic fire sprinkler systems, including any and all amendments or successors thereto that may hereafter be made and adopted, shall not apply within the boundaries of the City and it is deemed stricken in its entirety. b) Exception number 2 of Section 503.2.3, "Surface" of FPD 26-02 including any and all amendments and successors thereto that may hereafter be made and adopted, shall not apply within the boundaries of the City and is deemed stricken and in place thereof Fire Apparatus Access Roads Surface Alternative Amendment dated June 12, 2020 attached hereto as Exhibit "B" is hereby re-adopted and shall continue in full force and effect. c) Section 505.1, "Address Identification" of the San Bernardino County Fire Protection District Ordinance FPD 26-02 including any and all amendments thereto that may hereafter be made and adopted, shall not apply to existing buildings within the boundaries of the City and to evidence the same the word "existing" is deemed stricken.

SECTION 3. The City Council HEREBY FINDS AND DETERMINES that it is in the interests of the health, safety and general welfare of the City and its residents to approve rescinding Ordinance No. 662-AC and approve the attached Exhibit A thereby adopting the San Bernardino County Ordinance FPD 26-02 referencing the 2025 Edition of the California Fire Code, along with certain changes, modifications, amendments, additions, deletions, and exceptions, relating to fire regulations as provided herein.

Agenda Item 1.

SECTION 4. If any section, subsection, subdivision, paragraph, sentence, clause or phrase added by this Ordinance, or any part thereof, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining potions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof Irrespective of the fact that any one or more sections, subsections, subdivision, paragraphs, sentences, clauses or phrases are declared unconstitutional, invalid or ineffective.

SECTION 5. The action shall become final and effective after thirty (30) days from its adoption by the City Council as provided for by the Code.

SECTION 6. Publication and Certification. The City Clerk shall cause this ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage in accordance with Section 36933 of the Government Code, shall certify to the adoption of this ordinance, and shall cause this ordinance and certification, together with proof of publication, to be entered in the book of ordinances of the Council of this City.

INTRODUCED AND READ for the first time at a regular meeting of the City Council of the City of Needles, California, held on the 11th day of August 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

The ordinance was thereafter set for a public hearing and consideration of adoption at a regular meeting of the City Council to be held on September 8, 2026.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 8th day of September 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Mayor Janet Jernigan
ATTEST:

City Clerk Candace Clark
APPROVED AS TO FORM:

City Attorney
Agenda Item 1.

Agenda Item 1.

City of Needles 817 Third Street, Needles, California 92363 (760) 326-2113 • FAX (760) 326-6765
www.cityofneedles.com
Mayor, Janet Jernigan
Vice Mayor Ellen Campbell
Councilmember Tona Belt
Councilmember Jamie McCorkle
Councilmember JoAnne Pogue
Councilmember Henry Longbrake
Councilmember Larry Ford
City Manager Patrick Martinez
Exhibit B to Ordinance 685-AC
Fire Apparatus Access Roads Surface Alternative
Proposed "Exception Number 2 of Section 503.2.3" alternative:

PURPOSE: The requirement for the fire code official being authorized to allow alternate roadway surfaces designed or evaluated by a qualified professional engineer is over burdensome for developers in the City of Needles and creates challenges for development in the City as it is so isolated from the rest of San Bernardino County. The fire access roadway appropriate thickness of surface materials and base materials will be an administrative action determined by the City Manager or designee subject to applicable provisions of the Needles Municipal Code.

1. The City Manager or designee is authorized to evaluate and designate fire apparatus roadway surfaces and after consultation with the San Bernardino County Fire Protection District to determine the reliability and safety of the road and subject to applicable provisions of the Needles Municipal Code
Agenda Item 1.
www.sbcfire.org
San Bernardino County Fire
Protection District
2025 FIRE CODE ADOPTION

EXECUTIVE SUMMARY FOR THE CITY OF NEEDLES

EXECUTIVE SUMMARY FOR THE BOARD OF DIRECTORS
Curtis Markloff
Assistant Fire Marshal
Agenda Item 1.
www.sbcfire.org San Bernardino County Fire Protection District Duty, Honor, Community
• The State Building Standards Commission publishes the California Fire Code every 3 years:
• Contains regulations that pertain to fire safe building standards. • Becomes effective throughout California 180 days after publication. • San Bernardino County Fire Ordinance 26-02 was adopted as amended on May 19, 2026, by the Board of Directors of the San Bernardino County Fire Protection District.
• After adoption, cities must ratify the ordinance through an official action for it to become effective.
2025 FIRE CODE ADOPTION
Agenda Item 1.
www.sbcfire.org San Bernardino County Fire Protection District Duty, Honor, Community
• Pursuant to Health and Safety Code section 13869 and
Government Code section 50022, the San Bernardino County Fire Protection District may adopt by reference the 2025 Edition of the California Fire Code and may also make local amendments as necessary based on local climatic, geological, and/or topographical conditions.
• Significant amendments to the 2025 Edition of the California Fire Code, that are included in the adopted ordinance based on local climatic, geological, and/or topographical conditions include:
2025 FIRE CODE ADOPTION
Agenda Item 1.
www.sbcfire.org San Bernardino County Fire Protection District Duty, Honor, Community
2025 FIRE CODE ADOPTION
• Additional operational permits:
• Battery storage (carry over from 2022 ord.)
• Commercial cooking operations (carry over from 2022 ord.) • Commercial storage of pallets (carry over from 2022 ord.) • Additional construction permits:
• Electrified security fences
• Plant extraction systems
• Smoke control/exhaust systems
• Refrigeration systems
• Dust collection
Agenda Item 1.
www.sbcfire.org San Bernardino County Fire Protection District Duty, Honor, Community
2025 FIRE CODE ADOPTION
• Update to the mandated font size of a building address (as visible from the street) based on the size of the building. (carry over from the 2022 ord.)
• Clarified requirements regarding water flow when building a structure and the spacing of fire hydrants in commercial, industrial, and multi-family developments. (carry over from the 2022 ord.) • Amended requirements for mechanically operated security gates to require “exit loops” be installed at all fire access gates and require an “infrared automatic gate system” for all new and existing electrically operated gates.

Agenda Item 1.
www.sbcfire.org San Bernardino County Fire Protection District Duty, Honor, Community
2025 FIRE CODE ADOPTION
• Adopted “Appendix P” to provide codes for temporary haunted houses, ghost walks and similar amusement uses.
• Increased penalties for the transportation and storage of dangerous fireworks from $1,250 to a maximum penalty of $15,000.

Agenda Item 1.
www.sbcfire.org San Bernardino County Fire Protection District Duty, Honor, Community
2022 FIRE CODE ADOPTION
QUESTIONS?
Agenda Item 1.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: August 11, 2026
Title: Housing Authority PHAS Recovery Plan Update
Background: On April 29, 2026, the Housing Authority of the City of Needles received notification from the U.S. Department of Housing and Urban Development (HUD) that it had been designated Troubled/Capital Fund Troubled under the Public Housing Assessment System (PHAS).

The designation was based on the Housing Authority's Fiscal Year 2023-2024 PHAS assessment, which resulted in an overall score of 53 out of 100, consisting of Financial (25/25), Physical (22/40), Management (6/25), and Capital Fund (0/10) indicators.

HUD directed the Housing Authority to prepare and submit a Recovery Plan identifying the causes of the performance deficiencies and the corrective actions that would be implemented to improve future PHAS performance. HUD also advised that the Housing Authority would enter into a Recovery Agreement establishing performance benchmarks and monitoring requirements as part of the recovery process.

Following receipt of HUD's notification, Housing Authority staff met with HUD representatives, reviewed the PHAS assessment results, and prepared a PHAS Recovery Plan and Corrective Action Plan. The Recovery Plan addresses corrective actions related to physical inspection deficiencies, occupancy management, Capital Fund administration, procurement and contract oversight, staff training, and ongoing performance monitoring. The Recovery Plan was submitted to HUD on May 22, 2026.

Following submission of the Recovery Plan, HUD conducted a Public Housing Agency Recovery & Sustainability (PHARS) Remote Assessment from July 20 through July 23, 2026, as part of its evaluation of the Housing Authority's recovery efforts. During the assessment, Housing Authority staff and representatives of the Board of Commissioners met with HUD, participated in interviews, and provided documentation regarding the corrective actions implemented since the original PHAS assessment period. The Housing Authority is currently awaiting HUD's assessment findings and any additional direction regarding the Recovery Agreement process.

The attached exhibits include HUD's notification letter, the PHAS Score Report, the Housing Authority's PHAS Recovery Plan and Corrective Action Plan, and supporting documentation related to HUD's PHARS Remote Assessment for the Council's information.

Fiscal Impact: None. This is an informational update.

Recommendation: Receive and file the Housing Authority PHAS Recovery Plan Update.

Submitted By: Patrick Martinez, City Manager
City Management Review: Date: 8/6/2026
Other Department Approval (when required): Date:

Agenda Item 2.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
300 North Los Angeles Street, Suite 4054
Los Angeles, CA 90012

OFFICE OF PUBLIC HOUSING
April 29, 2026
Board of Commissioners
c/o Ms. Janet Jernigan, Board Chairperson
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Dear Commissioners:

On March 30, 2026, the Needles Housing Authority was designated Troubled/ Capital Fund Troubled by HUD based on a failing Public Housing Assessment System audited financial score of 25 (of 25), physical score of 22 (of 40), management score of 6 (of 25), and Capital Fund score of 0 (of 10), and an overall score of 53 (of 100) for the fiscal year ending 06/30/2024, as shown in the enclosed PHAS Score Report.

PHA Recovery Plan Due Within 30 Days
It is critical that the Agency assesses its current situation to determine if recovery is feasible or if alternative options for affordable housing should be considered. The Board of Commissioners/Governing Body of the Needles Housing Authority should take immediate action to identify the sources(s) of the performance deficiencies and develop and implement a plan to determine if an acceptable PHAS score can be achieved and sustained or to identify other uses for the housing subsidies. Included below is a list of actions offered as common suggestions to the Board to use in self-diagnosing the source(s) of its deficiencies and identifying solutions to recover its performance for long-term sustainability. Please provide our office with a proposed recovery plan within 30 days of receipt of this letter. Your plan will be reviewed by a Recovery Team of subject matter experts to determine further assistance to be provided by HUD and actions to be taken.

Recovery Agreement and Score Improvement Requirements
Please be advised that HUD is initiating actions to develop and execute a binding Recovery Agreement with the Needles Housing Authority as required by federal statute, to document and ensure that recovery efforts have been put in place and the Agency achieves and sustains acceptable performance or identifies other opportunities for affordable housing. If HUD’s assessment determines that Public Housing can be sustained and improved, the Recovery Agreement will include recovery benchmarks in accordance with statutory requirements, implemented by regulations found at 24 CFR 902.75(d). Specifically, the Needles Housing Authority must meet two sequential benchmarks after being designated Troubled: 1) a 50% recovery of the Troubled PHAS score on the first released PHAS assessment that is at least 12 months after the Troubled designation – that is to say, a minimum PHAS score for that period of Agenda Item 2.

Page | 2
26 and 60 and 2) a full recovery to a PHAS score of 60 or higher on the next sequential fiscal year PHAS assessment.

Noncompliance and Substantial Default
Please also be advised that a failure by the Needles Housing Authority to comply with HUD requirements, its Recovery Agreement and/or its Annual Contributions Contract under the United States Housing Act of 1937, as amended, may result in the referral of your agency to HUD’s Assistant Secretary for Public and Indian Housing for a declaration of substantial default. If Needles Housing Authority is determined to be in substantial default under section 6(j)(3)(A) of the Act and 24 CFR 907, HUD may seek any available remedy, including any one or several of the following actions consistent with the Act and its implementing regulations:
- Solicit competitive proposals from other PHAs and private housing management agents to manage all or part of Needles Housing Authority public housing program and project(s); - Petition for the appointment of a judicial receiver for Needles Housing Authority - Solicit competitive proposals from other PHAs and private entities with experience in construction management to oversee implementation of Needles Housing Authority public housing Capital Fund;
- Take possession of all or part of Needles Housing Authority, including all or part of its public housing program and project(s);
- Require Needles Housing Authority to make any other arrangements acceptable to HUD, in its full discretion, for managing all or part of the public housing program and project(s).

Common Suggestions for PHA’s Recovery Plan:

Physical
When a public housing agency becomes physically substandard, it typically has either:
(1) failed to prioritize capital funding; or (2) failed to correct deficiencies identified in previous REAC inspections reports.

Capital Funding
 Evaluate current contracts for priority and necessity in relationship to needed capital funding.
 Account for the amount of capital funds received and purchases made to date.  Verify that capital funds are not being used for non-capital purposes.  Evaluate the most recent physical needs assessment or conduct a new one.  Evaluate the use of resources for underfunded maintenance and modernization needs rather than for development.

Agenda Item 2.

Page | 3
Physical Inspection Deficiencies
 Verify that required annual inspections by the public housing agency are being conducted and that generated work orders are being completed timely.  Evaluate maintenance staffing levels, skill levels, and performance as well as how maintenance staff are deployed.
 Evaluate the maintenance plan as well as the planning efforts for REAC inspections.  Evaluate the use of previous REAC inspection reports for capital fund and maintenance planning.
o Verify whether health and safety deficiencies, which are cause for heavily weighted point deductions, are being targeted for immediate repairs. (These include tripping hazards, sharp edges, blocked exits, mold and mildew, exposed electrical wiring, fire hazards, improper storage of flammable or volatile materials, and pest infestations.)
o Verify whether critical and severe deficiencies, which are cause for a magnitude of point deductions for each inspectable area, are being targeted for repairs. (These include site issues such as fences, grounds, mailboxes, graffiti/litter, parking lots, driveways, roads, walkways and steps, play areas, refuse disposal areas, and storm drains; and building systems issues such as sanitary systems, domestic water systems, elevators, HVAC systems, sprinkler systems for fire protection, emergency power records and auxiliary lighting, and electrical systems.)
o Verify whether the most common and frequent deficiencies are being repaired sufficiently. (These include damaged interior and exterior walls, roof components, common area hallways and stairways, utility closets/rooms, kitchen appliances, window screens and locks, door surfaces and hardware/locks, and peeling paint.)
 Consider contracting maintenance of Public Housing to another entity or public housing agency.
 Consider a repositioning strategy for the agency’s assets if conversion to the Section 8 platform would allow for improved management of the properties.

Management
Generally, when a public housing agency becomes management substandard, it has failed to maintain an acceptable occupancy level in its developments.  Evaluate waiting list, tenant selection, and initial certification processes to ensure coordination with property managers and timely preparation for move-ins.  Assess existing new tenant intake policies and practices and consider implementing those Agenda Item 2.

Page | 4
that would contribute to quicker lease up, such as starting the certification process earlier or limiting the number of unit-offer turn-downs for new tenants.  Assess existing continued occupancy policies and practices and consider implementing those that would reduce the frequency of move-outs, such as educating tenants on lease enforcement and how to be good renters or limiting transfers for existing tenants.  Assess the impact of current operating protocols for late rent payments as well as timely payments to vendors.
 Evaluate the turn-around time of vacant units for occupancy, including the time it takes maintenance to make-ready units and the time it takes property managers to lease up units.
 Assess the feasibility and desirability of under-occupied developments, e.g. physical condition and configuration, rehabilitation costs and lifespan, neighborhood factors such as crime and proximity to employment, transportation, and services, etc., and consider repositioning options if appropriate.
 Ensure that units taken offline for modernization, special use, or other allowed reasons have been approved by HUD, do not exceed their permissible time limitation and are correctly classified in HUD systems.
 Consider contracting property management of Public Housing to another entity or public housing agency.

Capital Fund
A designation of Troubled based on Capital Funds results from failure of the public housing agency to obligate its Capital Funds timely.
 Evaluate management/staff performance, timeliness, and effectiveness in procurement and contracting functions, e.g., preparing solicitations, evaluating bids, entering obligation information into HUD systems, and maintaining documentation.  Evaluate management/staff ability to prepare award recommendations for Board review and approval.
 Confirm that the Board receives and approves contract awards timely and in advance of obligation deadlines.
 Verify that staff are correctly identified in and have access to HUD systems.

If you have any questions or need assistance in developing your recovery plan, please contact Mayfelisa Miso at [email protected] or Twan Quach at [email protected].

Sincerely,
Meena Bavan
Director
Office of Public Housing
Digitally signed by: MEENA
BAVAN
DN: CN = MEENA BAVAN C =
US O = U.S. Government OU =
Department of Housing and
Urban Development, Policy
Development and Research
Date: 2026.05.04 08:35:31 -
07'00'
MEENA
BAVAN
Agenda Item 2.

Page | 5
Enclosure
cc:

Janet Jernigan, Board Chairperson
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Kirsten Merritt, Board Vice Chairperson
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Tona Belt, Board Member
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Ellen Campbell, Board Member
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Henry Longbrake, Board Member
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Jamie McCorkle, Board Member
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Jo Anne Pogue. Board Member
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Dale Jones, Board Secretary
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Patrick Martinez, Executive Director
Agenda Item 2.

Page | 6
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Angelica Deermer, Housing Manager
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Mark DeMay, Finance Director
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Agenda Item 2.

U.S. Department of Housing and Urban Development

OFFICE OF PUBLIC AND INDIAN HOUSING

REAL ESTATE ASSESSMENT CENTER
Public Housing Assessment System (PHAS) Score Report for Interim 40 25.00
Capital Fund Score Details
PHA Name:

PHA Code:

Needles Housing Authority
Fiscal Year End: 06/30/2024
CA022
PHAS Indicators Original
Score Adjustment Net Score Maximum
Score
PHAS Total Score
Designation Status: Troubled / Capital Fund
40 25
25 10
22 25
6 0
0 22
0 0
0 0
0 25
6 0
-
Capital Fund
PHAS Adjustment
31 22 53 100
Notes:

Late Penalty Points - 0 0
Report Date: 03/30/2026
Published 03/30/2026 Initial published 03/30/2026

1. FASS Score before deductions

2. Audit Penalties
Financial Score Details
Total Financial Score Unrounded (FASS Score - Audit
Maximum
Submission Type: Score Score
Timeliness of Fund Obligation:

1. Timeliness of Fund Obligation %

2. Timeliness of Fund Obligation Points

0.0 Score Maximum
Score
Occupancy Rate: 25.00

3. Occupancy Rate %

4. Occupancy Rate Points
Total Capital Fund Score (Fund Obligation + Occupancy Rate):
0 0
0 0.00
Audited/Single Audit

1. The scores in this Report are the official PHAS scores of record for your PHA. PHAS scores in other systems are not to be relied upon and are not being used by the Department.

2. Due to rounding, the sum of the PHAS indicator scores may not equal the overall PHAS score.

3. "0" FASS Score indicates a late presumptive failure. See 902.60 and 902.92 of the Interim PHAS rule.

4. "0" Total Capital Fund Score is due to score of "0" for Timeliness of Fund Obligation. See the Capital Fund

5. PHAS Interim Rule website - http://www.hud.gov/offices/reac/products/prodphasintrule.cfm

25.00 24.50
-0.50
25 25
5 5
10 Management
Financial
Physical
Agenda Item 2.

City of Needles
Housing Authority
908 Sycamore Drive, Needles, California 92363
(760) 326-3222 • FAX (760) 326-6765
www.cityofneedles.com
Mayor Janet Jernigan
Vice Mayor Ellen Campbell
Councilmember Tona Belt
Councilmember Jamie McCorkle
Councilmember JoAnne Pogue
Councilmember Henry Longbrake
Councilmember Larry Ford
City Manager Patrick Martinez
May 22, 2026
Via Email
Ms. Meena Bavan
Director
U.S. Department of Housing and Urban Development
300 North Los Angeles Street, Suite 4054
Los Angeles, CA 90012
Via Email ([email protected])
Re: Housing Authority of the City of Needles – PHAS Recovery Plan Response Dear Ms. Bavan:

Thank you for your April 29, 2026 correspondence regarding the Housing Authority of the City of Needles's designation as Troubled and Capital Fund Troubled under the Public Housing Assessment System (PHAS). The Housing Authority appreciates the guidance and technical assistance provided by HUD staff and respectfully submits this Recovery Plan response together with the attached Exhibit A – PHAS Recovery Action Plan.

The Housing Authority has carefully reviewed the PHAS assessment results, including the Physical Assessment score of 22, Management Assessment score of 6, Capital Fund score of 0, and overall PHAS score of 53. Following receipt of HUD's determination, Housing Authority staff met with HUD representatives, reviewed the assessment findings, and developed a comprehensive strategy to improve performance and achieve sustained compliance with HUD requirements.

Physical Assessment (PASS)
The Housing Authority conducted a comprehensive review of NSPIRE Inspection INSP21523 and all cited deficiencies. The inspection identified deficiencies primarily involving smoke alarm placement, carbon monoxide detector testing, electrical components, appliance repairs, plumbing deficiencies, damaged doors and windows, water heater discharge piping, and resident-created obstructions affecting emergency egress.

All deficiencies identified during the inspection have been corrected. Corrective measures included installation of required smoke alarms, replacement and testing of carbon monoxide detectors, correction of electrical hazards, repair of plumbing leaks, repair or replacement of damaged appliances, correction of window and door Agenda Item 2.
deficiencies, repair of water heater discharge piping, and correction of all lifethreatening and severe deficiencies identified during the inspection.

To ensure long-term compliance, the Housing Authority has implemented biannual unit inspections, annual NSPIRE-style inspections, preventive maintenance schedules, work-order tracking procedures, tenant maintenance request forms, staff training, and resident education initiatives focused on housekeeping standards, maintenance reporting, smoke detector awareness, and maintaining unobstructed emergency exits.

These measures are intended to ensure year-round compliance rather than inspectiondriven preparation and are consistent with HUD's recommendations regarding planning, maintenance, and staff training.

Management Assessment (MASS)
The Housing Authority recognizes that occupancy levels and unit turnaround performance during the assessment period contributed to the Management Assessment score. A significant factor affecting occupancy was the Housing Authority's ongoing effort to rehabilitate and modernize aging public housing units. During the assessment period, HACN submitted requests to HUD to designate multiple public housing units as Vacant – Undergoing Modernization due to substantial rehabilitation needs, including replacement of flooring, cabinetry, appliances, plumbing components, lighting, smoke detectors, drywall repairs, painting, and other improvements necessary to return the units to service.

The Housing Authority also experienced vacancy activity associated with transferring existing residents into units better suited to household composition and family needs. As modernization projects progressed, some vacancies remained in transition while units were rehabilitated and prepared for occupancy.

As of May 2026, HACN operates 52 public housing units, with only three units currently vacant. This reflects an occupancy rate of approximately 94 percent, demonstrating substantial improvement from the assessment period. All three vacant units are undergoing extensive rehabilitation and modernization. One family is currently awaiting transfer into an available unit and additional applicants have been identified from the Housing Authority's waiting list for occupancy consideration as units become available.

HACN currently maintains an active public housing waiting list of 55 applicants, demonstrating continued demand for public housing assistance within the community.

Since the assessment period, the Housing Authority has implemented significant operational improvements, including appointment of a dedicated Housing Manager, adoption of updated Admissions and Continued Occupancy Policies (ACOP), adoption of an updated Administrative Plan, implementation of updated lease documents incorporating HOTMA requirements, enhanced vacancy tracking procedures, improved eligibility verification processes, routine occupancy monitoring, and periodic compliance reviews. The Housing Authority anticipates measurable improvement in occupancy performance and future Management Assessment scores as modernization activities are completed and rehabilitated units are returned to productive use.

Agenda Item 2.

Capital Fund Program
The Housing Authority acknowledges the Capital Fund Troubled designation resulting from untimely obligation requirements. The Housing Authority's review determined that personnel transitions, limited staffing resources, turnover in key administrative and financial positions, and insufficient tracking of Capital Fund obligation deadlines contributed to deficiencies in grant monitoring, procurement tracking, and Capital Fund administration.

Since that time, the Housing Authority has reviewed Capital Fund Program requirements with HUD staff and implemented corrective measures to strengthen compliance. Corrective actions include review of all open Capital Fund grants and obligation deadlines, establishment of internal tracking procedures for obligations and expenditures, enhanced procurement planning and contract administration procedures, monthly monitoring of Capital Fund deadlines and eLOCCS reporting requirements, increased coordination among Housing staff, Finance staff, and executive management, and expanded staff training regarding HUD grant administration and compliance requirements.

The Housing Authority has also strengthened management oversight to ensure contract awards, procurement actions, obligation deadlines, and reporting requirements are reviewed and monitored on a regular basis. These measures are intended to ensure timely obligation and expenditure of Capital Fund resources and prevent future scoring deficiencies.

Conclusion
The Housing Authority of the City of Needles remains fully committed to providing safe, decent, and affordable housing while improving organizational performance and compliance. The Housing Authority currently maintains occupancy of approximately 94 percent of its public housing inventory, with the remaining vacant units undergoing modernization and rehabilitation activities and qualified applicants available on the waiting list for future occupancy.

The corrective actions already completed, combined with the ongoing monitoring and management practices outlined in the attached Recovery Action Plan, position the Housing Authority to achieve substantial improvement in future PHAS assessments and meet HUD's recovery benchmarks. The Housing Authority appreciates HUD's continued partnership, technical assistance, and support and looks forward to working collaboratively toward successful recovery and long-term program sustainability.

Should you require any additional information, please do not hesitate to contact me.

Sincerely,
Patrick J. Martinez
Executive Director
Housing Authority of the City of Needles
Attachment: Exhibit A – PHAS Recovery Action Plan
Agenda Item 2.

EXHIBIT A
PHAS Recovery Action Plan
Physical Assessment (PASS)
Item Response
Deficiency Physical Assessment Score: 22/40
Cause Deferred maintenance, health and safety deficiencies, and lack of routine NSPIRE-style inspections
Corrective Action
Completed
All deficiencies identified in NSPIRE Inspection INSP-21523 have been corrected
Ongoing Actions Biannual inspections, annual NSPIRE inspections, preventive maintenance schedules, resident education, staff training Performance
Measure
100% completion of unit inspections and timely correction of health and safety deficiencies
Responsible Party Housing Manager
Target Date Ongoing
Management Assessment (MASS)
Item Response
Deficiency Management Assessment Score: 6/25
Cause Units undergoing modernization, temporary vacancy cycles caused by rehabilitation projects and transfers, staffing transitions Corrective Action
Completed
Updated ACOP, Administrative Plan, lease documents, vacancy tracking, occupancy monitoring
Ongoing Actions Lease rehabilitated units promptly, monitor occupancy monthly, quarterly file reviews, waiting list management
Performance
Measure
Maintain occupancy above 95%; reduce vacancy turnaround time; maintain active waiting list utilization
Responsible Party Housing Manager
Target Date Ongoing
Capital Fund Program
Item Response
Deficiency Capital Fund Score: 0/10
Cause Untimely obligation of Capital Fund resources resulting from staffing transitions and insufficient deadline tracking Corrective Action
Completed
Established obligation tracking procedures, reviewed grants, enhanced procurement monitoring
Ongoing Actions Monthly review of obligation deadlines, eLOCCS monitoring, contract tracking, staff training
Performance
Measure Timely obligation and expenditure of all Capital Fund grants Responsible Parties Housing Manager, Finance Director, Executive Director Target Date Ongoing
Agenda Item 2.

Recovery Monitoring
The Executive Director, Housing Manager, and Finance Director shall review implementation of this Recovery Plan on a monthly basis. Progress shall be reported periodically to the Board of Commissioners, and corrective actions shall be updated as necessary to ensure continued compliance with HUD requirements and achievement of PHAS recovery benchmarks established by HUD.

Recovery Commitment
The Housing Authority of the City of Needles is committed to restoring and maintaining compliance with HUD requirements, improving PHAS performance, maintaining safe and sanitary housing conditions, maximizing occupancy, and ensuring timely administration of Capital Fund resources. The Housing Authority believes the corrective actions already completed, together with the ongoing actions identified herein, provide a clear path toward achieving and sustaining a passing PHAS score.

Agenda Item 2.

Agenda Item 3.

MINUTES

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, JULY 28, 2026 CITY COUNCIL MEETING – 6:00 PM
VICE MAYOR CAMPBELL PARTICIPATED REMOTELY FROM 1007 E. OAK, WILLIAMS, AZ 86046 CALL TO ORDER – Mayor Jernigan called the meeting to order at 6:01 PM

ROLL CALL

PRESENT
Council Member Larry Ford
Vice Mayor Ellen Campbell
Mayor Janet Jernigan
Council Member Tona Belt arrived at 6:03 PM
Council Member Henry Longbrake
Council Member JoAnne Pogue
Council Member Jamie McCorkle
PLEDGE OF ALLEGIANCE - led by Mayor Jernigan
INVOCATION - given by Vice Mayor Campbell

APPROVAL OF AGENDA
Council Member Ford made a motion, seconded by Council Member Pogue, to approve the agenda.

Motion carried by the following roll call vote: