Needles City Council
September 8, 2026

AGENDA

REGULAR MEETING OF THE CITY COUNCIL

NEEDLES PUBLIC UTILITY AUTHORITY

HOUSING AUTHORITY CITY OF NEEDLES
COUNCIL CHAMBERS - 1111 BAILEY AVE
TUESDAY, SEPTEMBER 8, 2026
EXECUTIVE SESSION - 5:00 PM
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 onto 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:
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The meetings are being recorded.

CALL TO ORDER

ROLL CALL

PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION ITEMS

A THREE-MINUTE TIME LIMIT PER PERSON HAS BEEN ESTABLISHED

RECESS TO EXECUTIVE SESSION

EXECUTIVE SESSION
a) Conference with legal counsel regarding existing litigation pursuant to Government Code section 54956.9(d)(1) Jane Doe v. City of Needles, et al., Superior Court of the County of San Bernardino, Case No. CIVSB2603777
b) Conference with Labor Negotiation Pursuant to Government Code Section 54957.6. Agency designated representative City Manager Patrick Martinez or his designee. Unrepresented Employee: Utility Manager. c) Conference with Labor Negotiation Pursuant to Government Code Section 54957.6. Agency designated representative City Manager Patrick Martinez or his designee. Unrepresented Employee: Development Services Director/Capital Projects
d) Conference with Real Property Negotiators pursuant to Government Code Section 54956.8. Property:

APN(s): 0186-095-03-0-000, AND 0186-095-04-0-000. Agency Negotiator: City Manager Patrick Martinez.

Negotiating Parties: City of Needles as potential seller and Palm Communities as potential purchaser.

Under Negotiation: price and terms.
e) Conference with Legal Counsel – Anticipated Litigation – Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2) and/or (3). One potential case f) Conference with Legal Counsel Regarding Potential Initiation of Litigation Pursuant to Government Code Section 54956.9(d)(4). One Potential Case.

CALL TO ORDER

ROLL CALL
EXECUTIVE SESSION REPORT – 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.

PUBLIC HEARINGS
1) Public Hearing noticed to consider all evidence and testimony for or against adoption of Resolution 2026- 38 approving 2026-2027 Green Fee & Membership Rate Change at Rivers Edge Golf Course (ACT) 2) Public Hearing noticed to consider all evidence and testimony for or against approval of Ordinance 686- AC, Amending Chapter 14, Article I, of the Needles Municipal Code by Adding Section 14-21, "Sale of Kratom Prohibited (2nd Read Adopt) (ACT)
3) Public Hearing noticed to consider all evidence and testimony for or against approval of 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 (2nd Read Adopt) (ACT)

PRESENTATIONS
(A ten-minute time limit per presentation has been established per Municipal Code Section 2-18.) 4) Presentation of the future Colorado River Operating Guidelines (INF)

NPUA CONSENT CALENDAR
All matters listed on the NPUA 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 NPUA Consent Calendar for discussion. Prior to Council action, a member of the public may address the City Council on matters scheduled on the NPUA Consent Calendar. A three-minute time limit per person applies. Recommended Action: Approve Items 5 through 8 on the NPUA Consent Calendar by affirmative roll call vote. (ACT) 5) Accept and File the AB32 Greenhouse Gas (GHG) Emissions Verification Report 2025 Emissions prepared by Lincus Incorporated
6) Accept and File the 2027 California Air Resources Board (CARB) Publicly Owned Utility (POU) Allocation Distribution Form and Annual Free Allowance Allocation under the California Cap-and-Trade Program 7) Authorize Brooks Consulting LLC to Develop a 10-year Capital Funding Plan for the Needles Public Utility Authority (NPUA) Electric Department, not to exceed $15,000, utilizing the adopted FY 27 Operations and Maintenance Budget
8) Receive and File the October 2026 Water and Wastewater COLA Adjustment

NPUA REGULAR ITEMS
9) Approve a 2.9% cost-of-living (COLA) increase in electric basic service charge rate and streetlights as of October 1, 2026; approve an over-hydro rate of $0.1058 effective October 1, 2026; apply a .01 Power Cost Adjustment reducing the over-hydro rate to $.0958 and approve the methodology to calculate the annual electric base rate and the power cost adjustment rate based on the rate calculation spreadsheets (ACT)

HACN REGULAR ITEM
10) Receive and File Public Housing Agency Recovery & Sustainability (PHARS) Assessments Results and Determinations (ACT)

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 11 through 17 on the Consent Calendar by affirmative roll call vote. (ACT) 11) Approve the Warrants through September 8, 2026
12) Approve the Minutes of August 11, 2026
13) Approve filing of a claim for Local Transportation Fund (LTF) and State Transit Assistance (STA) Funds for the fiscal year 2026-2027
14) League of California Cities 2026 Annual Conference Resolution No. 1 - City Position and Voting Delegate Direction
15) Approve the 2027 Employee Benefits Plan for Medical, Dental, and Vision. 16) City Council Resolution 2026-41 Approving a Second Amendment to the Lease Agreement with News West Publishing Company Inc. doing business as the Needles Desert Star, for Office Space at 950 Front Street, Suite A-25
17) City Council Resolution 2026-40 Approving an Amendment to the Lease Agreement with Tri-State Alano Club of Needles, Inc., for the City-Owned Building at 801 Third Street Until September 9, 2029

END OF CONSENT CALENDAR

REGULAR ITEMS
18) Consideration of Purest USA LLC’s appeal of the City Manager’s denial of Cannabis Business Regulatory License Application No. 2017-80 and adoption of a resolution either denying the appeal and upholding the City Manager’s decision or granting the appeal and setting aside the denial. (ACT) 19) Approve the Purchase and Delivery of a Modified Shipping Container to Provide ADA Restrooms, Office Space and Utility Room for the Animal Control Facility (ACT) 20) Accept the Work Completed by Rainy Day Roofing, Inc. for the Administration Building Façade Awning Project and Authorize a Notice of Completion to Record with the San Bernardino County Recorder’s Office (ACT)

21) Award the base bid and Additive Alternate No. 1 to Phillips Excavating, Inc. for the Phase V-B Water Service Lateral Replacement Project in the amount of $474,386 plus 10% contingency for a total project cost of $521,825 and authorize staff to execute a Public Works Agreement with Phillips Excavating, Inc. and move forward with the Notice of Award and Notice to Proceed (ACT) 22) Resolution 2026-36 authorizing the City Manager to execute Program Supplement No.F005 to the Administering Agency-State Agreement for Federal-Aid Projects with the State of California Department of Transportation (Caltrans) for the administration of federal-aid funds for the River Road/River Street Rehabilitation Project (ACT)
23) Accept TKE Engineering Inc. Proposal to provide Professional Engineering Services to complete the project plans, contract documents, engineers’ estimate; and to provide right-of-way assistance for the River Road and River Street Rehabilitation Project for a Not to Exceed (NTE) amount of $256,000; and authorize staff to execute the Professional Services Agreement with TKE Engineering, Inc. (ACT) 24) Authorize those interested to attend the 2026 San Bernardino County State of the County Conference on October 8, 2026, at the Ontario Convention Center in Ontario, CA (ACT) 25) City of Needles Fall Festival Route 66 Celebration Update (INF) 26) Resolution 2026-39 Approving the Third Amendment to the City Manager Employment Agreement with Patrick Martinez (ACT)

CITY ATTORNEY REPORT

CITY CLERK REPORT

CITY MANAGER REPORT
City Manager Reports for the week of August 21 and 28, 2026

COUNCIL REQUESTS

COUNCIL MEMBER FORD

COUNCIL MEMBER MCCORKLE

VICE MAYOR CAMPBELL

COUNCIL MEMBER POGUE

COUNCIL MEMBER BELT

COUNCIL MEMBER LONGBRAKE

MAYOR JERNIGAN

ADJOURNMENT
Posted: September 4, 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 a meeting is available for public inspection at the Needles Administrative Office, 817 Third Street, Needles, CA 92363.

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact Candace Clark, City Clerk, 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) If a decision is made at this hearing and you later disagree with the decision, only issues raised at the public hearing or in written form at or before the public hearing can be considered.

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 4th day of September 2026
Candace Clark, CPMC, CMC, City Clerk

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Resolution 2026-38 of the City Council of the City of Needles, California Amending Resolution 2025-32 and increasing Green Fee Rates at the Rivers Edge Golf Course Background: On August 12, 2025, the City Council adopted Resolution 2025-32, approving a rate increase to $45 depicted in Exhibit A.

Kemper Sports has identified in our Competitive Market Analysis Study Rivers Edge Golf Course is priced far below the market. In order to keep pace with increased wages and commitment to improving the golf course maintenance a new fee structure has been proposed:

Increase of fees for All 18 Hole Green Fee Rates & Membership Increases. Attached is the breakdown of fees.

Fiscal Impact: Increase in Rivers Edge Golf Course Revenues by approximately $50,000 annually Recommendation: Adopt Resolution 2026-38 of the City Council of the City of Needles, California Amending Resolution 2025-32 and increasing Green Fee Rates at the Rivers Edge Golf Course Submitted By: JJ Deleon, Rivers Edge Golf Course Golf Pro City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026
9/3/2026

RESOLUTION 2026-38

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA, AMENDING RESOLUTION 2025-32 AND ADOPTING A NEW GREEN FEE RATE STRUCTURE

AT THE RIVERS EDGE GOLF COURSE
WHEREAS, the City Council adopted Resolution No. 2025-32 on August 12, 2025, adopting a greens fee rate structure at the Rivers Edge Golf Course and;
WHEREAS, a Notice of Public Hearing was published in the Needles Desert Star on August 19, 2026, and said public hearing was held on September 8, 2026, at which time all persons were provided an opportunity to speak for or against the proposed increase in fees (refer to Exhibit A); and WHEREAS, the City of Needles has made significant strides in improving the quality of the golf course; and WHEREAS, these improvements, along with the proposed fee adjustments, will enable the City of Needles to continue elevating the golf course experience for all players while ensuring we have the resources to maintain the course at a high standard.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Needles, California, hereby approves the new fee structure as show in Exhibit A.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
APPROVED AS TO FORM:

City Attorney

El Rio Los Lagos Huukan
18 Hole Walk 29 33 13.79%
18 Hole Ride 45 49 8.89%
Resident Rate Resident Rate Resident Rate
18 Hole Needles Resident - Ride 34 39 14.71% $55 Oct-Apr $59 Oct-Apr $58 Oct-Apr Valley Card
9 Holes Walk 22 24 9.09% $49 Oct-Dec
9 Holes Ride 29 32 10.34%
Twilight Walk 25 25 0.00%
Twilight Ride 35 39 11.43%
Super Walk - 2:00pm 22 24 9.09%
Super Ride - 2:00pm 32 32 0.00%
Junior 18 Walk - Daily 11 11 0.00%
Junior 18 Ride - Daily 18 18 0.00%
Junior 9 Walk - Daily 8 8 0.00%
Junior 9 Ride - Daily 10 10 0.00%
MEMBERSHIPS El Rio Los Lagos Huukan
Monthy Range Pass $55 $75 36.36%
3 month 3 Month
Monthly Golf/Cart/Range 330 425 28.79% Single $1500 Single $1600 Couple $2000 Couple $2150
Monthly Walk 220 285 29.55% 6 month 6 month Gold - 8 month Single $1875 Single $2100 Single $1775
Annual Golf/Cart/Range 1650 1850 12.12% Couple $2900 Couple $2475 Annual Annual
Annual Walk 1100 1350 22.73% Single $2495 Single $2900
Couple $3900
3-Month Golf/Cart/Range N/A $1,200 Family $3375
Rivers Edge Golf Rates 2025-26 2026-27 % Increase

Rivers Edge Proposed Membership
Rates 2026-27
Monthly Memberships
Route 66 Pass (Golf, Cart, Range) - $330 Proposed - $425

Silver Pass (Golf Walking - $220 Proposed - $285
3 Month Membership (NEW)
3 Month Pass (Golf, Cart, Range) - $1,200
Annual Memberships
Route 66 Pass (Golf, Cart, Range) - $1,650 Proposed - $1,850 Silver Pass (Golf Walking) - $1,100 Proposed -
$1,350

Rivers Edge Golf Course
2025/26 Rounds & ADR (Average Daily Rate)
25,739 Total Rounds Played
10,468 Member Rounds ($166,910 in Revenue)
Total ADR = $15.94
15,271 Total Paid Rounds (Includes Walking, Twilight & 9 Hole) ($375,740 in Revenue) Total ADR = $24.60
Rivers Edge Golf Course has created an exceptional golf product, and our rounds and course conditions reflect the value we provide to our customers. The next step is ensuring our Average Daily Rate (ADR) appropriately reflects that product and positions us competitively within our local market. To remain competitive with our local comparable courses, we need to strategically increase our ADR while continuing to deliver the high-quality golf experience that our customers have come to expect. Our goal is not simply to raise rates, but to align our pricing with the quality, condition, service and overall value of the Rivers Edge experience.

Tri-State Rate Comps for
Rivers Edge 2026/27 Fall/Winter Season
Rates - Local Golf Course
$49 Rivers Edge GC
$68* Mojave Resort GC
$58 Huukan GC
$55* El Rio GC
$59* Los Lagos GC
All Rates Include Golf & Cart *Include Range Balls*

Membership Comps – Tri-State Area
Los Lagos GC
Annual Single - $2,900 6-Month - $2,200
Huukan GC
8-Month Single - $1,775 Annual Single - $2,375 3-Month Single - $1,600 El Rio GC
Annual Single - $2,495 6-Month - $1,875

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Public Hearing Noticed to consider all evidence and testimony regarding Ordinance 686-AC Amending Chapter 14, Article I, of the Needles Municipal Code by Adding Section 14-21, "Sale of Kratom Prohibited."
Background: On August 11, 2026, City Council introduced and read Ordinance 686-AC and direct the City Clerk to schedule and publish notice of a public hearing for September 8, 2026. Such notice was published in the Desert Star on August 19, 2026.

The attached Ordinance No. 686-AC amends Chapter 14, Article I, of the Needles Municipal Code by adding Section 14-21, "Sale of Kratom Prohibited." The ordinance prohibits the commercial sale, offer for sale, advertisement for sale, distribution, or possession with intent to sell kratom products within the City while preserving exemptions for personal possession and authorized medical, academic, and scientific research activities.

Commercially available kratom products vary significantly in potency and purity and are frequently marketed without consistent ingredient verification, dosage information, or consumer warnings. Public health concerns associated with kratom include reports of dependence, withdrawal symptoms, respiratory depression, liver toxicity, seizures, hallucinations, and other adverse health effects. In the absence of a comprehensive statewide regulatory framework governing the commercial sale of kratom, several California cities, including San Buenaventura, Newport Beach, Dana Point, Tustin, and Stanton, have adopted local ordinances prohibiting its sale.

The proposed ordinance is intended to protect the public health, safety, and welfare by reducing the availability of unregulated kratom products and providing the City with clear enforcement authority. Violations would be enforceable through criminal, civil, and administrative remedies consistent with the Needles City Charter and Municipal Code.

Fiscal Impact: None
Recommendation: Waive the full reading and adopt Ordinance 686-AC Amending Chapter 14, Article I, of the Needles Municipal Code by Adding Section 14-21, "Sale of Kratom Prohibited." Submitted By: Candace Clark, City Clerk
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026

ORDINANCE 686-AC
ORDINANCE 686-AC

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEEDLES AMENDING CHAPTER 14, ARTICLE I, OF THE NEEDLES MUNICIPAL CODE BY ADDING SECTION 14-21, "SALE OF KRATOM PROHIBITED.”
WHEREAS, the City of Needles is a charter city organized and existing under the Constitution and laws of the State of California, and Article XI, section 7 of the California Constitution and the City Charter authorize the City to adopt ordinances to protect the public health, safety, and welfare through the exercise of its police powers; and
WHEREAS, kratom (Mitragyna speciosa) is a botanical substance containing psychoactive alkaloids that may produce stimulant and opioid-like effects and has been associated with adverse health consequences, including dependence, withdrawal, and other serious medical conditions; and WHEREAS, kratom products are sold in a variety of forms and are often marketed and distributed without consistent manufacturing standards, potency limitations, ingredient verification, dosage controls, or labeling requirements, creating potential risks to consumers; and WHEREAS, the City Council finds that the unregulated commercial sale and distribution of kratom products poses a potential threat to the public health, safety, and welfare of the residents and visitors of the City of Needles, particularly minors and other vulnerable populations, and that existing federal and state law does not provide a comprehensive regulatory framework sufficient to address these concerns at the local level; and
WHEREAS, after considering available public health information and the experiences of other California jurisdictions, the City Council finds that prohibiting the commercial sale and distribution of kratom within the City of Needles is a reasonable and appropriate exercise of the City's police powers to protect the public health, safety, and welfare.

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

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

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

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

SECTION 4. Approval. The City Council HEREBY APPROVES an amendment to the Needles Municipal Code by adding Section 14-21, "Sale of Kratom Prohibited," to Chapter 14, Article I, as set forth in Exhibit A, which Exhibit is attached hereto and incorporated herein by this reference.

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

ORDINANCE 686-AC
SECTION 6. Severability. If any section or provision of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this Ordinance shall remain valid.

The City Council hereby declares that it would have adopted this Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation.

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

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

AYES: COUNCIL MEMBERS FORD, MCCORKLE, CAMPBELL, POGUE, BELT, LONGBRAKE NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
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:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
Approved as to form: _______________________________
City Attorney

ORDINANCE 686-AC

EXHIBIT A
Section 14-21. Sale of Kratom Prohibited
(a) Findings and Purpose.

Kratom (Mitragyna speciosa) is a botanical substance that contains psychoactive compounds, including mitragynine and 7-hydroxymitragynine, which may have opioid-like effects. Kratom products are often sold without adequate regulation, labeling, dosage controls, or consumer warnings. The City Council finds that the sale and distribution of kratom and kratom products presents a potential risk to public health and safety, particularly to minors and vulnerable populations. (b) Definitions.

For purposes of this section, the following definitions shall apply:
“Kratom Product” means the leaf of the plant Mitragyna speciosa, or any product derived from the plant Mitragyna speciosa, including its leaves, extracts, powders, capsules, resins, concentrates, or any compound containing mitragynine or 7-hydroxymitragynine, whether natural or synthetic. “Leaf” means any or all parts of the leaf of the plant Mitragyna speciosa that contain mitragynine or 7- hydroxymitragynine.
“Sale” or “Sell” means any transfer, exchange, or distribution of kratom products for consideration, including but not limited to retail sales, wholesale transactions, internet sales, delivery services, or promotional giveaways.
“Person” means any individual, firm, partnership, association, corporation, limited liability company, or other legal entity.
(c) Prohibition on Sale.

No person shall sell, offer for sale, advertise for sale, distribute, or possess with intent to sell any Kratom Product within the geographic boundaries of the City.
(d) Exemptions.

This section shall not apply to:
(a) The possession or use of Kratom Products by an individual for personal consumption, provided such possession is not accompanied by intent to sell; or (b) Any activity expressly authorized by applicable law or regulation for bona fide medical, academic, or scientific research purposes.
(e) Enforcement and Penalties.

It is unlawful for any person to violate or fail to comply with this section. A violation of this section shall constitute a misdemeanor; however, the City may, in its discretion, prosecute any such violation as an infraction pursuant to Section 520 of the Needles City Charter. As an alternative to criminal prosecution, the City may redress any violation of this section by civil action. In addition to or in lieu of criminal prosecution, the City may seek civil remedies pursuant to Chapter 2A of the Municipal Code.

Any repeated violation of this section shall constitute good cause for revocation of the person’s City business license pursuant to Chapter 12 of the Needles Municipal Code.

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Public Hearing Noticed to consider all evidence and testimony regarding 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: On August 11, 2026, City Council introduced and read Ordinance 685-AC and direct the City Clerk to schedule and publish notice of a public hearing for September 8, 2026. Such notice was published in the Desert Star on August 19, 2026.

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 affect. 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 apply within the boundaries of the City; provided, however, that the illumination requirements contained in Sections 505.1.1(1) and 505.1.2(1) shall not apply and are deemed stricken. All other address identification requirements shall remain applicable within the boundaries of the City.

Fiscal Impact: None
Recommendation: Waive the full reading and adopt 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
Submitted By: Candace Clark, City Clerk
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026

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 FPD 26-02 shall apply within the boundaries of the City; provided, however, that the illumination requirements contained in Sections 505.1.1(1) and 505.1.2(1) shall not apply within the boundaries of the City and are deemed stricken. All other requirements of Section 505.1 and its subsections shall remain in full force and effect.

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.

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: COUNCIL MEMBERS FORD, MCCORKLE, CAMPBELL, POGUE, BELT, LONGBRAKE NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
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

COLORADO RIVER BASIN

LOWER COLORADO RIVER ALLOCATIONS BY STATE

Direct Impacts to Parker Davis Dam

What will be the impacts on the
Lower Basin States?
California, Arizona, and Nevada will take a combined 1.25 million acre-feet reduction in both 2027 and 2028, including 440,000 acre-feet from California, 760,000 acre-feet from Arizona, and 50,000 acrefeet from Nevada.

The plan also provides for at least 700,000 acre-feet of additional Lower Basin system conservation across 2026–2028, utilizing federal cost-share funding.

The next steps include the development of actions and agreements to implement the Operating Guidelines within the Lower Basin states. A separate intra-California agreement will also be needed to implement California provisions.

While the 2027–2028 Guidelines provide an important near-term bridge, they do not resolve the Colorado River’s longer-term challenges.

What could this mean for Needles?

The City of Needles holds Present
Perfected Rights (PPR) established by
the Arizona v. California Decree
PPR #43; City of Needles – 1,500 AF; 950 AF Consumption Priority Date 1885
PPR #44; City of Needles – 1,260 AF; 273 AF Consumption Priority Date 1896

-
500
1,000
1,500
2,000
2,500
3,000
Year 2025 2024 2023 2022 2021 2020
City of Needles Allocation Vs. Annual Diversion
Allocation (AF) Diversion (AF)
Based on 2,528 AF Diversion Allocation per year, which includes 145 AF SCIA Agreements and 273 AF Reductions from the LCWSP SCIA Agreement. A total of 418 AF reductions annually on the City’s Annual Water Order.

In accordance with the 2027-2028 Operating Guidelines, the Shortage Condition results in 6.25 million acre-feet (AF) available to the Lower Division States in CY 2027. Consistent with the Lower Division States' shortage sharing arrangement, the following reductions of 1.25 million AF, as distributed by state, will occur during CY 2027:

Arizona: a reduction of 760,000 AF, which is approximately 27 percent of the state's annual basic apportionment of 2.8 million AF of Colorado River water.

Nevada: a reduction of 50,000 AF, which is approximately 17 percent of the state's annual basic apportionment of 300,000 AF of Colorado River water.

California: a reduction of440,000 AF, which is 10 percent of the state's annual basic apportionment of 4,400,000 AF of Colorado River water.

The distribution of reductions by state will be confirmed in a forthcoming agreement among the Lower Division States in development.

Absent an agreement among the Lower Division States, the Secretary will determine the quantities and apportionment of reductions consistent with Section 5.3.A.3 of the 2027-2028 Operating Guidelines in consultation with the Lower Division States to allow adequate time to request CY 2027 water orders in September so that they can be reviewed and approved consistent with established timelines.

California Operations in CY 2027
In accordance with Section 5.3.A.2 of the 2027-2028 Operating Guidelines, and subject to the Lower Basin agreement mentioned above, 3.96 million AF is apportioned for consumptive use in the state of California in CY 2027, a reduction of 440,000 AF from its 4,400,000 AF annual basic apportionment. No surplus water and/or unused apportionment water will be available for use by California surplus water entitlement holders.

Needles-specific impacts are still being evaluated as California develops implementation of its 440,000 AF reduction.

Needles-specific impacts are still being evaluated. The City is reviewing how California's 440,000 AF reduction and forthcoming implementation agreements may affect the City's 2027 water order and operations.

WHAT WE KNOW
• A Shortage Condition has been determined for CY 2027. • California's basic apportionment is being reduced by 440,000 AF, from 4.4 MAF to 3.96 MAF. • Needles holds senior Present Perfected Rights dating to 1885 and 1896. • Needles' current annual diversion allocation is 2,528 AF, and recent diversions have remained below that amount.

WHAT IS STILL BEING DETERMINED
• Final implementation of the Lower Basin reductions.
• California's implementation of its 440,000 AF reduction. • Any specific effect on Needles' 2027 water order, entitlement, or operations. • Longer-term impacts beyond the 2027–2028 interim period.

WHAT THE CITY IS DOING
• Reviewing the new federal guidelines and Reclamation notice. • Evaluating Needles' PPR position and 2027 water order. • Monitoring implementation agreements and Colorado River conditions. • Continuing to brief Council as additional information becomes available.

Operating Guidelines – Colorado River Guidelines for 1
Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
Operating Guidelines
Colorado River Guidelines for Coordinated Operations
of Lake Powell and Lake Mead
Operating Years 2027 and 2028

1. Purpose
The Colorado River Guidelines for Coordinated Operations of Lake Powell and Lake Mead Operating Years 2027 and 2028 (2027–2028 Operating Guidelines) establish operating criteria applicable to Operating Years 2027 and 2028 (the “Effective Period”). These 2027–2028 Operating Guidelines are a final agency action issued pursuant to the Record of Decision adopted by the Secretary of the Interior (Secretary) for the Decision Framework for Colorado River Guidelines:

Coordinated Operations of Lake Powell and Lake Mead (2027–2036) (ROD).

The 2027–2028 Operating Guidelines are for Operating Years 2027 and 2028 only and are not intended to represent a long-term operational strategy. The Department is establishing these guidelines at a time of historic low storage conditions in Lake Powell and Lake Mead and with significant hydrologic risk facing the system should low runoff conditions continue. It is against this backdrop of hydrologic risk and lack of long-term consensus that Reclamation has prepared these 2027-2028 Operating Guidelines. These 2027–2028 Operating Guidelines and are not and shall not be construed to create a precedent for future operations as described in Section 10.11 of the ROD.

These 2027–2028 Operating Guidelines contemplate actions that rely upon necessary implementing and parallel agreements as described in Section 5.9. Where necessary parties do not reach consensus on proposed operational measures or agreements, the Secretary will proceed consistent with applicable Federal law, the 2006 Consolidated Decree of the U.S. Supreme Court in Arizona v.

California (Consolidated Decree), the Law of the River, and all other governing statutes, regulations, and contractual obligations necessary to fulfill the Secretary’s statutory responsibilities, protect Federal interests, and ensure continued system operations. The absence of such agreements shall not impair, delay, or otherwise limit the Secretary’s authority to implement operations in 2027 and 2028.

The Department of the Interior (Department) intends to implement the Criteria for Coordinated Long-Range Operation of Colorado River Reservoirs Pursuant to the Colorado River Basin Project Act of September 30, 1968 (Long-Range Operating Criteria or LROC) through these 2027–2028 Operating Guidelines and implemented through the Annual Operating Plan for Colorado River Reservoirs (AOP). These 2027–2028 Operating Guidelines also provide for temporary operational actions that are not otherwise provided for under the LROC when necessary to protect critical Federal infrastructure during extraordinary circumstances, consistent with applicable Federal law.

2 Operating Guidelines – Colorado River Guidelines for
Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026

2. Process to Develop Guidelines
These 2027–2028 Operating Guidelines were developed pursuant to the ROD and incorporate operational elements based on input provided by the Basin States, Basin Tribes, and other interested parties.

Further, these 2027–2028 Operating Guidelines were developed and reflect ongoing discussions regarding consensus arrangements by the Basin States for 2027 and 2028 which would be supported by implementing and parallel agreements that will facilitate water management tools such as: Lower Basin shortage sharing, forbearance, conservation efforts, releases of additional water from the Colorado River Storage Project (CRSP) Upper Initial Units – specific reservoirs above Lake Powell pursuant to Section 602 of the Colorado River Basin Project Act – to increase the elevation at Lake Powell to protect critical Federal infrastructure.

3. Effective Period
These 2027–2028 Operating Guidelines shall become effective upon (1) execution by the Secretary and (2) execution of the necessary implementing and parallel agreements, as described in Section

5.9. Absent such implementing and parallel agreements in (2), the Secretary will proceed as described in Sections 5.2, 5.3, and 5.4, consistent with applicable Federal law, the Consolidated Decree, the Law of the River, and all other governing statutes, regulations, and contractual obligations necessary to fulfill the Secretary’s statutory responsibilities, protect Federal interests, and ensure continued system operations. Once effective, these 2027–2028 Operating Guidelines shall govern the operation of Lake Powell and Lake Mead for the 2027 and 2028 Operating Years, unless modified or superseded by subsequent action of the Secretary pursuant to the provisions herein.

Further, these 2027–2028 Operating Guidelines could be superseded during the Effective Period if consensus operating guidelines, including among the Basin States and the Secretary, are reached.

4. Definitions
Definitions are included in the ROD and are incorporated by reference into these 2027–2028 Operating Guidelines. Additional definitions specific to these 2027–2028 Operating Guidelines are below.

1. “2027–2028 Operating Guidelines” shall mean the Colorado River Guidelines for Coordinated Operations of Lake Powell and Lake Mead for Operating Years 2027 and 2028.

2. “Exhibit Run” shall refer to modeling performed in addition to the official modeling runs, which are used for official operational determinations. Exhibit Runs reflect unofficial dam operations or sensitivity analysis based on hypothetical conditions or dam operations.

3. “Lower Colorado Regional Director” shall mean the Regional Director of the Lower Colorado River Basin Region of the Bureau of Reclamation (Reclamation).

4. “Most Probable” shall mean a modeling projection provided by Reclamation in the monthly 24-Month Study, which simulates conditions using a median (50th percentile exceedance) inflow scenario.

Operating Guidelines – Colorado River Guidelines for 3
Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026

5. Guidelines for the Coordinated Operation of Lake Powell and Lake Mead for Operating Years 2027–2028 For Operating Years 2027 and 2028, the Secretary shall coordinate the operations of Lake Powell and Lake Mead according to the strategy set forth in this Section 5.

The Secretary will base annual determinations regarding the operations on these 2027–2028 Operating Guidelines unless extraordinary circumstances exist as described in Section 5.1.D. The Secretary retains full legal authority to ensure ongoing operations of Colorado River facilities, including operational actions taken to address extraordinary circumstances in order to ensure protection of critical Federal infrastructure and continuous operational reliability of such facilities.

The Department is establishing these 2027–2028 Operating Guidelines at a time of historic low storage conditions in Lake Powell and Lake Mead, with combined storage at an all-time low, and with significant hydrologic risk facing the system should low runoff conditions continue. The Department recognizes the continued importance of Lake Powell operations that achieve the objective stated in Article II of the LROC: “the objective shall be to maintain a minimum release of water from Lake Powell of 8.23 maf for that year.” However, the Department also recognizes that achievement of this objective may not be possible under the hydrologic and operational conditions that exist at the time of adoption of these 2027–2028 Operating Guidelines, including low reservoir elevations, declining river flows, and the need to protect operational reliability. The coordinated operations described in these 2027–2028 Operating Guidelines are intended to account for these considerations and are intended to minimize adverse operational effects in the Upper and Lower Basins while preserving the Secretary’s ability to respond to changing hydrologic conditions.

5.1 Operation of Lake Powell for Operating Years 2027–2028 These operations are designed to protect a minimum Lake Powell elevation of 3,500 feet by initially seeking to maintain a minimum elevation of 3,510 feet. This provides an operational buffer and provides additional flexibility in recognition of the operational risks associated with sustained operations below elevation 3,490 feet, at which releases from Glen Canyon Dam can only pass through the river outlet works. As described in Section 3.1 of the ROD, there are infrastructure concerns associated with the uncertainty of extended operations through the river outlet works as the sole means of sustained water releases from Glen Canyon Dam that could compromise the reliability and operational flexibility of Glen Canyon Dam and affect the ability to meet critical downstream water supply needs. There are additional impacts to hydropower associated with operating below 3,490 feet, as this is the minimum power pool.

These operations involve various consultations and coordination with the Basin States, Basin Tribes and other affected parties. These consultations are described in Section 5.7.B.

The Most Probable August 24-Month Study projections of the October 1 Lake Powell elevation, for the following Water Year, shall be used to determine the applicable operational range for the coordinated operation of Lake Powell and Lake Mead as described below.

Releases from Lake Powell for coordinated operations will be consistent with the provisions of the 2016 Glen Canyon Dam Long-Term Experimental and Management Plan Environmental Impact Statement and Record of Decision and the 2024 Glen Canyon Dam Long-Term Experimental and Management Plan Supplemental Environmental Impact Statement and Record of Decision.

4 Operating Guidelines – Colorado River Guidelines for
Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
As described below, determinations in Operating Years 2027 and 2028 throughout this section will be based on the current month’s Most Probable 24-Month Study projections of Lake Powell elevations. In each range, the Lake Powell Water Year release could be reduced to a minimum of 6.0 million acre-feet (maf) if necessary to maintain elevation 3,510 feet. Releases may be further reduced as described in Section 5.1.D, should Lake Powell be projected to reach elevations below 3,500 feet.

Any such adjustments shall not require re-initiation of the AOP consultation process. Sections

5.1.A – 5.1.D describe the months and criteria for determining such adjustments.

A. Upper Elevation Range

1. In Water Years when the projected October 1 Lake Powell elevation is at or above 3,565 feet, the initial Water Year release will be determined by performing an incremental modeling approach using Exhibit Runs. Reclamation shall first evaluate a Water Year release of 8.23 maf and, if necessary, successively evaluate releases of 8.0 maf and 7.5 maf. The initial Water Year release shall be the first release evaluated that is projected to maintain a minimum Lake Powell elevation of 3,510 feet throughout the Water Year.

2. Beginning in October, and continuing each month through April, if the projected Lake Powell elevation is less than 3,510 feet, adjust Lake Powell releases downward as needed to no less than 6.0 maf, such that when combined with additional releases from the CRSP Upper Initial Units, a minimum of 3,510 feet is maintained through March of the following Water Year.

3. Should Lake Powell be projected to reach elevations below 3,500 feet, Reclamation shall consider and consult as described in Section 5.1.D on additional actions that may be necessary.

4. Beginning in October, and continuing each month through April, if the projected Lake Powell elevation at the end of the Water Year is greater than 3,565 feet, adjust releases upward, such that half the difference in volume from the projected September 30 Lake Powell storage at elevation 3,565 feet is added to the release.

B. Mid-Elevation Range

1. In Water Years when the projected October 1 Lake Powell elevation is below 3,565 feet and at or above 3,540 feet, the initial Water Year release will be determined by performing an incremental modeling approach using Exhibit Runs. Reclamation shall first evaluate a Water Year release of 8.0 maf and, if necessary, shall successively evaluate releases of 7.5 maf and

7.0 maf. The initial Water Year release shall be the first release evaluated that is projected to maintain a minimum Lake Powell elevation of 3,510 feet throughout the Water Year.

2. Beginning in October, and continuing each month through April, if the projected Lake Powell elevation is less than 3,510 feet, adjust releases downward as needed to no less than

6.0 maf, such that when combined with additional releases from the CRSP Upper Initial Units, a minimum of 3,510 feet is maintained through March of the following Water Year.

3. Should Lake Powell be projected to reach elevations below 3,500 feet, Reclamation shall consider and consult as described in Section 5.1.D on additional actions that may be necessary.

4. Beginning in October, and continuing each month through April, if the projected Lake Powell elevation at the end of the Water Year is greater than 3,565 feet, adjust the Lake Powell releases upward, such that half the difference in volume from the projected

Operating Guidelines – Colorado River Guidelines for 5
Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
September 30 Lake Powell storage at elevation 3,565 is added to the release, up to 8.23 maf or greater.

C. Low Elevation Infrastructure Protection Range

1. In Water Years when the projected October 1 Lake Powell elevation is below 3,540 feet, the initial Water Year release will be determined by performing a modeling approach using an Exhibit Run. Reclamation shall first assume a release of 7.0 maf. If Lake Powell is projected to remain above 3,510 feet during the Water Year, begin the year with an initial release of 7.0 maf if conditions allow and while preserving the flexibility to make reductions under Section

5.1.C.1.a and proceed as follows:
a. Beginning in October, and continuing each month through April, if the projected Lake Powell elevation is less than 3,510 feet, adjust Lake Powell releases downward as needed to no less than 6.0 maf, such that when combined with additional releases from the CRSP Upper Initial Units, a minimum of 3,510 feet is maintained through March of the following Water Year.
b. Beginning in October, and continuing each month through April, if the projected Lake Powell elevation at the end of the Water Year is greater than 3,565 feet, adjust releases upward, such that half the difference in volume from the projected September 30 Lake Powell storage at elevation 3,565 feet is added to the release.

2. If the Exhibit Run of the August 24-Month Study assuming a release of 7.0 maf (from Section 5.1.C.1) results in Lake Powell elevation projected to decline below 3,510 feet at any time during the Water Year, defer the determination of the Water Year release until April and proceed as follows in Table 1 below.

Table 1
Low Elevation Infrastructure Protection Range Determination Table Steps Reclamation will Follow to Determine Water Year Release in the Low Elevation Infrastructure Protection Range for 2027–2028 Operating Guidelines (when Lake Powell elevation is less than 3,510 feet in the August 24-Month Study Exhibit Run) Aug State that the expected Water Year release will be between 6.0 and 7.0 maf Determine monthly release pattern October-April that results in maintaining a minimum target elevation of 3,510 feet in March of the following year
- Perform at least 2 “official” August 24-Month Studies o Runs assume a Water Year release of 6.0 maf and 7.0 maf o All runs include the same release pattern Oct-Apr that maintains a minimum target elevation of 3,510 feet in March of the following year SeptDecPerform the same 2 “official” 24-Month Studies each month as described above (may include adjustments to the October-April monthly release pattern if needed to maintain a target of 3,510 feet)
JanMarContinue potential adjustment of Lake Powell monthly releases per above but begin including assumptions regarding use of the CRSP Upper Initial Units for May of the current year through April of the following year, into the 6.0 maf run only, as appropriate

6 Operating Guidelines – Colorado River Guidelines for
Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
Steps Reclamation will Follow to Determine Water Year Release in the Low Elevation Infrastructure Protection Range for 2027–2028 Operating Guidelines (when Lake Powell elevation is less than 3,510 feet in the August 24-Month Study Exhibit Run) Apr Determine Water Year release according to the following steps:

1. Evaluate the projected Lake Powell elevation in March of the following year assuming a

7.0 maf release. For the purpose of Water Year 2027 and 2028 only, this will be considered as the baseline for determining whether releases should be less than 7.0 maf, and additional releases from CRSP Upper Initial Units should be considered.

If the March projected elevation is > 3,510 feet,
o Set the Water Year release to 7.0 maf
o No releases from the CRSP Upper Initial Units will be made for infrastructure protection purposes

2. If the March projected elevation is < 3,510 feet, determine the volume needed to maintain a minimum of 3,510 feet in March of the following year. As practicable, Reclamation will determine the reduced Lake Powell releases and CRSP Upper Initial Unit actions required contemporaneously (subject to hydrologic conditions), considering historical consultations and volumetric reductions in Lake Powell Releases and CRSP Upper Initial Unit releases. Past actions have included 1) a planned 500 thousand acrefeet (kaf) CRSP Upper Initial Unit release and recovery coupled with a 480 kaf reduction in the Lake Powell release and 2) a planned 660-1,000 kaf CRSP Upper Initial Unit release and recovery coupled with a 1,480 kaf reduction in the Lake Powell release.

3. Reclamation will consult with the Basin States in the event of any of the following conditions:
a. if the volume needed to protect the critical elevation of 3,500 feet in March of the following year is > 2.0 maf; or
b. if any Basin State believes there is inequity between the volume available for release from the CRSP Upper Initial Units and the Lake Powell release reductions, it may request consultation; or
c. if a Lake Powell release of < 6.0 maf is required to protect 3,500 feet in March of the following year; or
d. if the Lake Powell elevation at the end of the water year is projected to be greater than 3,565 feet.

4. When operating under 2 or 3 above, Reclamation will consider any other tools available that can be used to maintain 3,510 feet
May Publish 24-Month Study with selected Water Year release and any projected releases from the CRSP Upper Initial Units for May of the current year through April of the following year (adjusted operations could begin in April if conditions warrant)

3. Should Lake Powell be projected to reach elevations below 3,500 feet, see Section 5.1.D to consult on additional actions that may be necessary.

D. Extraordinary Circumstances

1. As identified in Section 10.7 of the ROD, the highest and lowest contemplated release from Glen Canyon Dam is 12.0 maf and 5.0 maf, respectively. Based on any 24-Month Study, if

Operating Guidelines – Colorado River Guidelines for 7
Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
Lake Powell is projected to decline below 3,500 feet at any time from the current month through March of the following year, the Secretary will consult and coordinate with the Basin States and Basin Tribes, and other affected parties as appropriate, to consider potential actions throughout the Basin to respond to and address hydrologic and operational conditions.

5.2 Drought Operations of the Colorado River Storage Project Act Upper Initial Units for Operating Years 2027–2028
In Operating Years 2027 and 2028, the Secretary will conduct drought operations, in consideration of releases and recovery, at the CRSP Upper Initial Units pursuant to the process outlined in an agreement concerning drought operations at these facilities and as referenced in this section. The provisions of this section assume that the Upper Division States reach agreement. If such agreement is not reached by that date, the Secretary will conduct drought operations at CRSP Upper Initial Units consistent with existing authorities.

5.3 Operation of Lake Mead for Operating Years 2027–2028 As implemented in the AOPs for 2027 and 2028, the Secretary shall, in August, make the following determination for Lake Mead operation for the following Calendar Year as described in this Section 5.3.

These operations provide water users in the Lower Division States with water supply determinations for Calendar Years 2027 and 2028, with the potential for consultation at high and low water elevations at Lake Mead. This provides additional flexibility in recognition of the operational risks associated with operations below elevation 950 feet. Below elevation 950 feet, Lake Mead releases are restricted to only the upper penstock outlet works, which would reduce operational flexibility and severely constrain releases, and below this elevation hydropower can no longer be produced.

A. Shortage Condition Determination and Lower Basin Reductions

1. The Secretary will determine that a Shortage Condition exists for the applicable Year for purposes of the apportionment of Colorado River water among the Lower Division States and will apportion 6.25 maf for consumptive use in the Lower Division States. This represents a reduction of 1.25 maf from the quantity apportioned to the Lower Division States under a Normal Condition.

2. Of the 6.25 maf that shall be apportioned each calendar year for consumptive use in the Lower Division States of which 2.04 maf shall be apportioned for use in Arizona, 3.96 maf shall be apportioned for use in California and 250,000 acre-feet (af) shall be apportioned for use in Nevada, reflecting reductions of 760,000 af in Arizona, 440,000 af in California, and 50,000 af in Nevada, in accordance with a Lower Basin implementing agreement(s).

3. If the Lower Division States have not fully executed the applicable or necessary implementing agreements, the Secretary shall determine the quantities and apportionment thereof as identified in Section 5.3.A.1, in accordance with applicable law.

4. Should the Most Probable projection of any 24-Month Study show Lake Mead falling below 1,010 feet at any time in the subsequent 12-month period, the Secretary shall consult and coordinate with the Basin States and Basin Tribes, and other affected parties as appropriate,

8 Operating Guidelines – Colorado River Guidelines for
Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
to consider potential actions throughout the Basin to respond to and address hydrologic and operational conditions.

5. Should the Most Probable projection indicate a likelihood of achieving Lake Mead elevation 1,125 feet or above during 2027 or 2028, the Secretary will consult with the Lower Division States regarding the potential to increase apportionments.

B. Additional System Conservation Water
In addition to the reductions of 1.25 maf per year in 2027 and 2028, Contractors within the Lower Division States will conserve an additional 700,000 af in total of System Conservation water in 2026, 2027, and 2028 pursuant to voluntary agreements with those Contractors and in accordance with a Lower Basin implementing agreement(s). In the absence of a Lower Division State implementing agreement, the Secretary will work with Contractors within the Lower Division States to conserve additional System Conservation water, as possible.

5.4 Implementation of Intentionally Created Surplus
The provisions of this Section 5.4 assume that the Lower Division States reach agreement. If such agreement is not reached, the Secretary shall deliver Intentionally Created Surplus (ICS) created and stored through December 31, 2026, in accordance with the applicable provisions of the 2007 Record of Decision for the Colorado River Interim Guidelines for Lower Basin Shortages and Coordinated Operations for Lake Powell and Lake Mead (2007 Interim Guidelines) and the 2019 Lower Basin Drought Contingency Plan Agreement (Lower Basin DCP) executed on May 20, 2019). In the absence of such agreement, no new ICS may be created after December 31, 2026.

Subject to such agreement, the ICS program will be extended through these 2027–2028 Operating Guidelines. Tributary Conservation ICS and Developed Shortage Supply may be created and delivered and shall be accounted for pursuant to the provisions set forth in Sections 3 and 4 of the 2007 Interim Guidelines. DCP ICS shall be delivered and accounted for pursuant to Section III.F. of Exhibit 1 to the Lower Basin DCP.

All other categories of ICS, whether created before or after the effective date of these 2027–2028 Operating Guidelines, are subject to the following provisions. References to ICS in the following provisions refer to Binational ICS, Extraordinary Conservation ICS, and System Efficiency ICS, unless otherwise specified. ICS may be created through December 31, 2028. ICS may be delivered through December 31, 2038.

The existing categories of ICS are Binational ICS, Extraordinary Conservation ICS, Tributary Conservation ICS, System Efficiency ICS, and DCP ICS and are being carried forward as part of these 2027–2028 Operating Guidelines.

A Contractor may create ICS consistent with an approved ICS Exhibit.

ICS activity, as described in this section, does not and will not adversely impact operations upstream of Lee Ferry and is not factored into the determination of the Lake Powell release or any activities upstream of Lee Ferry.

Operating Guidelines – Colorado River Guidelines for 9
Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
A. Creation of ICS
A Contractor may only create ICS in accordance with the following conditions:

1. A Contractor shall submit a plan for the creation of ICS to the Secretary with sufficient information to demonstrate how all requirements of these 2027–2028 Operating Guidelines will be met in the Contractor’s creation of ICS. An ICS Creation Plan may be a single year or multi-year plan and may describe the creation of ICS pursuant to multiple projects consistent with a Contractor’s approved ICS Exhibit(s). Until such plan is reviewed and approved by the Secretary, such plan or any ICS purportedly created through it shall not be a basis for creation of ICS. An ICS plan will consist of, at a minimum, the following information:
a. Project description, including what extraordinary measures will be taken to conserve or import water;
b. Term of the activity;
c. Estimate of the amount of water that will be conserved or imported; d. Proposed methodology for verification of the amount of water conserved or imported; and
e. Documentation regarding any State or Federal permits or other regulatory approvals that have already been obtained by the Contractor or that need to be obtained prior to creation of ICS.

2. There shall be a one-time deduction of 10 percent from the amount of ICS, including Tributary ICS, in the Year of its creation. This system assessment shall result in additional system water in storage in Lake Mead. This one-time system assessment shall not apply to:
a. System Efficiency ICS created because a large portion of the water conserved by this type of project will increase the quantity of system water in storage over time. b. Extraordinary Conservation ICS created by conversion of Tributary Conservation ICS that was not delivered in the Year created, because the 10 percent of the ICS is deducted at the time the Tributary Conservation ICS is created.

3. Except as provided in 3.A.2. of the 2007 Interim Guidelines for the conversion of Tributary Conservation ICS to Extraordinary Conservation ICS, Extraordinary Conservation ICS can only be created if such water would have otherwise been beneficially used.

4. The maximum total amount of Extraordinary Conservation ICS that can be created during any Year is limited to the following:
a. 125,000 af for Arizona Contractors;
b. 400,000 af for California Contractors; and
c. 125,000 af for Nevada Contractors.
d. If one but not all of the Lower Division States reaches its annual Extraordinary Conservation ICS creation limit, and if there remains a desire to create additional amounts of Extraordinary Conservation ICS, the Secretary, subject to the provisions of a Lower Basin implementing agreement(s), may authorize additional Extraordinary Conservation ICS creation within the total combined Lower Division State annual limitation of 650,000 af.

5. The maximum quantity of Binational ICS, Extraordinary Conservation ICS, and DCP ICS that may be accumulated, at any time, is limited to the following:
a. 1.0 maf for Arizona Contractors;

10 Operating Guidelines – Colorado River Guidelines for Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
b. 2.0 maf for California Contractors; and
c. 800,000 af for Nevada Contractors.
d. If a Lower Division State reaches its maximum ICS accumulation limit, the ICS Contractor may coordinate with ICS Contractors from the other Lower Division States and request that the Secretary provide additional ICS accumulation space available in another State’s limit, subject to the provisions of a Lower Basin implementing agreement(s).

6. No surplus water can be used to create ICS.

7. A Contractor must notify Reclamation of the amount of ICS it wishes to create for the subsequent Year pursuant to an existing, approved plan. Once the Plan is approved, the Contractor cannot increase the amount of ICS they intend to create during the Year.

B. Delivery of ICS
In addition to the provisions in Section 10.9.G of the ROD, and as modified below, the Secretary shall deliver ICS, including the use of ICS to offset reductions, in accordance with applicable law and the following conditions:

1. The delivery shall be consistent with the terms of a Delivery Agreement with a Contractor regarding ICS. The Contractor shall agree in the Delivery Agreement that the records of the Contractor relating to the creation of ICS shall be maintained and open to inspection by the Secretary and by any Contractor or Basin State for 5 years after the creation of such ICS.

2. The existence of Forbearance Agreements necessary to bring the delivery of the ICS into compliance with Articles II(B)(2) and II(B)(6) of the Consolidated Decree.

3. A limitation on the total combined amount of any ICS that may be delivered in any Year is as follows:
a. 300,000 af for Arizona Contractors;
b. 400,000 af for California Contractors; and
c. 300,000 af for Nevada Contractors.

4. The total combined delivery of ICS from January 1, 2026, through December 31, 2028, shall not exceed 800,000 af.

5. In a year when the January 1 elevation of Lake Mead is between elevation 1,025 feet and 1,000 feet, the Secretary will consult with the ICS Contractor for requests for ICS delivery when Lake Mead elevations are between 1,025 feet and 1,000 feet. This consultation will occur before a request for ICS delivery is approved. The Secretary could reduce or deny a request for ICS delivery if the requested delivery would result in Lake Mead declining below elevation 1,000 feet in the current year based on the current Most Probable 24-Month Study projection or if the elevation of Lake Mead is below elevation 1,000 feet. Consultation will occur such that it is implementable by the Contractor within the calendar year.

6. No ICS shall be delivered in a year when the January 1 Lake Mead elevation is less than 1,000 feet.

7. A Contractor may request mid-Year modification(s) to the amount of ICS to be delivered during that Year because of changed conditions, emergency, or hardship, subject to the requirements of this Section 5.4.B.

Operating Guidelines – Colorado River Guidelines for 11 Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
C. Accounting for ICS
In addition to the provisions in Section 10.9.H of the ROD, and as modified below, the Secretary shall annually account for and verify ICS in accordance with the following:

1. A Contractor shall submit for the Secretary’s review and verification, appropriate information, as determined by the Secretary, contained in a Certification Report, to demonstrate the amount of ICS created and that the method of creation was consistent with the Contractor’s approved ICS plan, a Forbearance Agreement, and a Delivery Agreement.

Such information shall be submitted in the Year following the creation of the ICS.

2. The Secretary, acting through the Lower Colorado Regional Director, shall verify the information submitted pursuant to Section 5.4.C.1, and provide a final written decision to the Contractor regarding the amount of ICS created. The results of such final written decisions shall be made available to the public through publication of the Water Accounting Report or other appropriate means. A Contractor and any party to an applicable Forbearance Agreement may appeal the Regional Director’s verification decision first to the Regional Director and then to the Secretary; and through judicial processes.

3. The quantity of ICS remaining in an ICS Account at the end of each Year shall be diminished by annual evaporation losses of 3 percent. Losses shall be applied annually to the end-of-the-Year balance of ICS beginning in the Year after the ICS is created and continuing until no ICS remains in Lake Mead. This provision includes DCP ICS but excludes System Efficiency ICS created pursuant to the 2007 Forbearance Agreement Exhibit C - Drop 2 Reservoir System Efficiency Project.

4. ICS from a project within a State may be credited or transferred to the ICS Account of a different Contractor within that State that has funded or implemented the project creating ICS, or to the ICS Account of a Contractor within the same State as the funding entity and project and with written agreement of the funding entity.

5. Each Year the Water Accounting Report will include ICS Account balance information for each Contractor and shall address ICS creation, deliveries, amounts no longer available for delivery due to releases for flood control purposes, deductions applied to volumes of ICS created pursuant to Section 5.4.A.2, deductions due to annual evaporation losses pursuant to Section 5.4.C.3, any amounts of ICS converted to Extraordinary Conservation ICS, any ICS transferred pursuant to Section 5.4.C.4, and ICS remaining available for delivery.

6. A Contractor with ICS stored in Lake Mead can offset an inadvertent overrun resulting from gage error or unanticipated changes in water accounting discovered in December or after the end of the calendar year, as determined during development of the Water Accounting Report, with ICS subject to the following limitations:
a. The cumulative volume of ICS used to offset overruns in a given year is limited to a maximum of 25,000 af in each Lower Division State.
b. The volume of ICS used to offset potential overruns is not limited as described in Section 5.4.B.4.

7. Nothing in these 2027–2028 Operating Guidelines shall preclude the development of additional categories of ICS, such as ICS created through interstate exchanges involving a non-Colorado River supply, subject to Secretarial review and approval and the applicable forbearance.

12 Operating Guidelines – Colorado River Guidelines for Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026

8. Water provided to the United States pursuant to Section IX.A of Minute No. 323 and converted to Binational ICS in 2026 will be accounted for as Binational ICS on January 1, 2027, and credited to the applicable ICS Account.

5.5 Implementation of the Federally Managed Water Resources Pool A. A Federally Managed Water Resources Pool (FMWRP) in Lake Mead is established. The FMWRP shall be composed of Federally managed contractual rights to ICS in Lake Mead.

The FMWRP is created to provide additional tools to address continued drought, including:
(a) to meet Federal firming or other Federal delivery obligations pursuant to a congressionally authorized Indian Water Rights Settlement; and (b) to provide limited offsetting of Tribal wet water shortages up to 25 percent of shorted Mainstream Lower Colorado River or Central Arizona Project entitlements for these 2027–2028 Operating Guidelines.

B. Creation of the FMWRP

1. The Secretary shall create the FMWRP upon the effective date of the ROD.

2. The FMWRP may consist of the following sources of ICS:
a. ICS: The right to delivery of which the Secretary currently controls by contract;
b. Existing or future Binational ICS: The right to delivery of which the Secretary acquires by contract from account holders of such Binational ICS during the term of these 2027–2028 Operating Guidelines; and c. Existing or future ICS: The right to delivery of which the Secretary obtains from water rights holders in Arizona during the term of these 2027–2028 Operating Guidelines.

3. The Secretary shall account for and deliver ICS in FMWRP solely for the purposes listed in this Section 5.5.B, and subject to the provisions set forth in Section 5.5.C. a. Purposes of the FMWRP in order of precedence and as limited based on available resources:
i. Federal firming or other Federal delivery obligations pursuant to congressionally authorized Indian water rights settlements; and ii. After any Federal statutory obligations are met in any given calendar year, offsets of up to 25 percent of reductions of Tribal wet water shortages to Mainstream Lower Colorado River or Central Arizona Project entitlements for these 2027–2028 Operating Guidelines as further specified under delivery agreements with such affected Arizona Tribes.

C. FMWRP Administration
The FMWRP shall be subject to all provisions of Section 5.4 in addition to the provisions in this Section 5.5. For any State-specific criteria in Section 5.4, the FMWRP shall be subject to the criteria applicable to the State in which the ICS was created and shall count toward any maximum limits for that State, except that the delivery of ICS shall count toward the maximum limit of the State in which it is delivered.

1. The maximum quantity of ICS that may be accumulated in the FMWRP, at any time, is limited to the accumulation maximum of 450,000 af.

Operating Guidelines – Colorado River Guidelines for 13 Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026

2. Federal delivery agreements are required for delivery of FMWRP water.

3. Binational ICS the right to delivery of which the Secretary has acquired for the FMWRP may be delivered to any Lower Division State.

4. Each Year the Water Accounting Report will include FMWRP Account balance information.

D. In advance of the next operating period, the Secretary and the Lower Division States commit to discuss future details for the FMWRP for the remainder of the ROD duration, through 2036, as described in Section 10.8 of the ROD, including identification of mechanisms and potential water sources, sufficient to accomplish FMWRP purposes.

5.6 Water Deliveries to Mexico for Operating Years 2027–2028 Deliveries of water to the United Mexican States (Mexico) are made pursuant to the 1944 Water Treaty and associated implementing agreements called Minutes. Water delivery reductions applicable to Mexico, in accordance with Minutes to the 1944 Water Treaty, are determined by the International Boundary and Water Commission, U.S. and Mexico, and are in addition to and separate from the apportionment to the Lower Division States under Shortage Conditions determined under Section 5.3.A.1. For each such Year, the Secretary, in coordination with the Department of State and the United States Section of the International Boundary and Water Commission, will implement any reductions in deliveries to Mexico in accordance with the applicable Minute.

5.7 Implementation of the Guidelines for Operating Years 2027–2028 A. AOP Process
During Operating Years 2027 and 2028, the Secretary shall utilize the AOP process to implement operations under these 2027–2028 Operating Guidelines concerning the coordinated operations of Lake Powell and Lake Mead pursuant to Section 5 of these 2027–2028 Operating Guidelines, and the allocation of apportioned but unused water from Lake Mead and the implementation of whether Normal, Surplus, or Shortage Conditions shall apply for the delivery of water from Lake Mead, pursuant to Section 5.3 of these 2027–2028 Operating Guidelines.

B. Consultation
The Secretary shall consult on the implementation of these 2027–2028 Operating Guidelines in circumstances including but not limited to the following:

1. The Secretary shall first consult with all the Basin States before making any substantive modification to these 2027–2028 Operating Guidelines.

2. Upon a request for modification of these 2027–2028 Operating Guidelines, or upon a request to resolve any claim or controversy arising under these 2027–2028 Operating Guidelines or under the operations of Lake Powell and Lake Mead pursuant to these 2027– 2028 Operating Guidelines or any other applicable provision of Federal law, regulation, criteria, policy, rule, or guideline, or regarding application of the 1944 Water Treaty that has the potential to affect domestic management of Colorado River water, the Secretary shall invite the Governors of all the Basin States, or their designated representatives, and the Department of State and United States International Boundary and Water Commission as

14 Operating Guidelines – Colorado River Guidelines for Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
appropriate, to consult with the Secretary in an attempt to resolve such claim or controversy by mutual agreement.

3. The Secretary shall consult with the Basin States and ICS contractors regarding the creation and administration of ICS.

4. The Secretary shall consult with the Basin States in the event of any of the following conditions when in the Lower Elevation Infrastructure Protection Range:
if the volume needed to protect the critical elevation of 3,500 feet at Lake Powell in March of the following year is > 2.0 maf; or
if any Basin State believes there is inequity between the volume available for release from the CRSP Upper Initial Units and the Lake Powell release reductions, it may request consultation; or
if a Lake Powell release of < 6.0 maf is required to protect 3,500 feet in March of the following year; or
if the Lake Powell elevation at the end of the water year is projected to be greater than 3,565 feet; or

5. The Secretary shall consult with the Basin States if Lake Powell is projected to reach an elevation of above 3,665 feet during Water Years 2027 or 2028, to determine to what extent releases above 8.23 maf, including the potential for releases consistent with Section 602(a) storage requirement contained in the Colorado River Basin Project Act.

6. The Secretary shall consult with the Lower Division States in the event of any of the following conditions:

Should the Most Probable projection of any 24-Month Study show Lake Mead falling below 1,010 feet at any time in the subsequent 12-month period, the Secretary shall with the Basin States and Basin Tribes, and other affected parties as appropriate, to consider potential actions throughout the Basin to respond to and address hydrologic and operational conditions.

Should the Most Probable forecast indicate a likelihood of achieving Lake Mead elevation 1,125 feet or above during 2027 or 2028, the Secretary will consult with the Lower Division States regarding the potential to increase apportionments.

7. Reclamation will coordinate and consult throughout the 2027–2028 Operating Guidelines with Basin Tribes and Mexico pursuant to the circumstances detailed in this section.

C. Accounting
For Operating Years 2027–2028, Reclamation will continue to account for and verify Lower Division States water use, including reductions and ICS activity through the Lower Colorado River Water Accounting and Water Use Report.

D. Operations During the Effective Period
For Operating Years 2027–2028, the Secretary will base annual determinations regarding the operations of Lake Powell and Lake Mead on these 2027–2028 Operating Guidelines unless further extraordinary circumstances arise. As identified in Section 10.7 of the ROD, such circumstances could include operations that are prudent or necessary for safety of dams, public health and safety, other emergency situations, or other unanticipated or unforeseen activities arising from actual operating experience.

Operating Guidelines – Colorado River Guidelines for 15 Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
Beginning no later than October 1, 2027, the Secretary shall initiate the process to determine the next set of guidelines as described in Section 10.5 of the ROD. The Secretary shall consult with the Basin States and Basin Tribes, and other affected parties as appropriate, during this process.

5.8 Authority and Operations for Operating Years 2027–2028 The provisions of Section 10.11 of the ROD apply to these 2027–2028 Operating Guidelines.

5.9 Implementing and Parallel Agreements
These 2027–2028 Operating Guidelines contemplate actions that rely upon necessary implementing and parallel agreements as referenced herein. Agreements are anticipated to be executed within a sufficient timeframe to support implementation of 2027 and 2028 operations, including agreements to which the United States is a party or an approver, and non-federal agreements. Namely, the Secretary acknowledges that portions of Sections 5.3 and 5.4, as described, will be implemented only when a Lower Basin implementing agreement takes effect as well as the drought operations at the CRSP Upper Initial Units pursuant to the process outlined in an agreement concerning drought operations at these facilities and as referenced in Section 5.2. The absence of such agreements shall not impair, delay, or otherwise limit the Secretary’s authority to act and any Basin State or Basin Tribe or Contractor shall retain any rights as set forth in Section 10.11 of the ROD.

16 Operating Guidelines – Colorado River Guidelines for Coordinated Operations of Lake Powell and Lake Mead
Operating Years 2027 and 2028
August 2026
This page intentionally left blank.

For the past 26 years, the Colorado River Basin (Basin) has been experiencing an unprecedented drought,
resulting in historically low runoff and reservoir levels.

After a record-low snowpack during the winter of
2025-2026, the combined storage in Lake Powell and
Lake Mead is lower than it has been since before Lake
Powell began filling in 1963. Lake Mead and Lake Powell also reached record-low elevations in August 2026.

Several of the major reservoir and water management
documents and agreements that guide Colorado River
operations expire in 2026, and in 2022 the Department
of the Interior (Department) began engaging the Basin
States, Basin Tribes, partner Federal agencies and
other interested parties in pursuit of new consensusbased long-term operating guidelines. Unfortunately, consensus on long-term operations has not been
reached. Instead, a 2-year interval pursuant to a
10-year Decision Framework will be implemented by
October 1, 2026.
2027–2028 Operating Guidelines
The Department is issuing 2027-2028 Operating
Guidelines that will provide guidance for the next two
years. The Operating Guidelines are a final agency
action issued pursuant to the Record of Decision (ROD).

They were developed after extensive engagement
with the seven Basin States and incorporate concepts
from proposals from both the Upper and Lower Basin
States and Basin Tribes. The Operating Guidelines are
designed to provide certainty regarding Lower Basin
water use for 2027 and 2028 and adopt an operation
at Lake Powell that is both protective and provides
sufficient operational flexibility to respond to rapidly changing hydrologic conditions.

As summarized on page 2, the 2027-2028 Operating
Guidelines consist of objective criteria for Lake Powell operations, incorporation of the utilization of the
Colorado River Storage Project (CRSP) Upper Initial
Units (specific reservoirs above Lake Powell), and Lake Mead operations.

Record of Decision
(10-year Decision Framework)
The Decision Framework establishes the operational
principles, sideboards (key thresholds and ranges
for operational elements), and process that will
support development and issuance of Operating
Guidelines through 2036. The Operating Guidelines,
or the objective criteria that will govern operations at Lake Powell and Lake Mead, are anticipated to cover
2-year intervals unless consensus-based agreements
provide for a longer duration. The 2027–2028 Operating
Guidelines are the first set of guidelines issued
pursuant to the ROD. Subsequent Operating Guidelines
will also be issued pursuant to the ROD, as final agency actions, subject to environmental compliance, and
published in the Federal Register.

The Decision Framework operational principles guiding
development of Operating Guidelines address the
key issues of future hydrology, protection of critical
Federal infrastructure, relationship to existing law,
and the priority of developing and implementing
consensus agreements in future operations. The
operational sideboards provide boundaries for the
range of activities in any set of Operating Guidelines.

These sideboards in the Decision Framework were
selected to provide sufficiently broad operational
ranges and ensure the Department has the flexibility
and environmental compliance necessary to operate
consistent with the operational principles. The
sideboards do not imply the Department’s adoption
of specific volumes or predetermine future specific
operations, which will be established through
Operating Guidelines issued pursuant to the ROD.

During each operating interval a process will be
carried out consisting of reviews, consultation with
stakeholders and, opportunities for consensus
building. The Department will consult with the Basin
States, Basin Tribes, Mexico, other Federal agencies
and other interested stakeholders throughout the
guideline development process and will give priority
consideration to consensus recommendations. The
Department will provide the opportunity to submit
comments on draft Operating Guidelines. During the
development process, the Department will conduct a
review to determine whether additional environmental
compliance is needed and will complete any such
compliance prior to finalizing the Operating Guidelines and publishing them in the Federal Register.

My in-progress spot illustration
Canyon in progress too
Future Colorado River Operations

1 My in-progress spot illustration
Canyon in progress
Summary of the 2027-2028 Operating Guidelines
Operation of Lake Powell
• Three elevation ranges (Upper Elevation, Mid-Elevation and Low Elevation Infrastructure Protection) with corresponding annual release volumes between 6 million acre feet (maf) and 8.23 maf; the initial annual volume will be chosen such that Lake Powell is projected to stay above 3,510 ft.
• After consultation, release may be adjusted down to a minimum of 5 maf, in combination with releases from CRSP Upper Initial Units to protect elevation 3,500 ft
(subject to hydrologic conditions).
• Releases may be adjusted upward, provided Lake Powell stays above 3,510 ft, and may exceed 8.23 maf if Lake
Powell is projected to end the year above 3,565 ft.

Drought Operations of CRSP Upper
Initial Units
• Additional releases made from the CRSP Upper Initial Units (subject to hydrologic conditions) if Lake Powell release is < 7 maf.
• Releases determined using a process agreed to by
Department and Upper Basin States that expressly includes consultation requirements with the Lower Basin States.

Operation of Lake Mead
Basin Shortage
• Consistent with the proposal from the Lower Basin States,

1.25 maf reductions in 2027 and in 2028 with consultation for additional actions if Lake Mead is projected to fall below 1,010 ft.

System Conservation
• Consistent with the proposal from the Lower Basin States, a minimum of 700 thousand acre feet (kaf) of system
conservation in Lake Mead through 2028.

Intentionally Created Surplus (ICS)
• Consistent with the proposal from the Lower Basin States, expanded ICS accumulation limits, extended delivery
access, and system assessments. Limitation of cumulative ICS delivery to maximum of 800 kaf through 2028.
• Delivery of ICS below Lake Mead elevation 1,025 ft requires consultation with the Secretary and no ICS may be delivered below Lake Mead elevation 1,000 ft.

Federally Managed Water Resources Pool
• Consistent with a proposal from the Lower Basin States and incorporating input from Lower Basin Tribes, created to meet Federal firming or other Federal obligations
pursuant to Congressionally authorized Indian water rights settlements and to provide limited Tribal shortage offsets up to 25% of reduced entitlements.
• Maximum water accumulation limit of 450 kaf.

Lake
Powell Lake
Mead
Colorado River Basin map
Elevation data from U.S. Geological Survey
Shaded relief added to emphasize landforms
Colorado River Basin elevation map

2 STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Accept and File the AB32 Greenhouse Gas (GHG) Emissions Verification Report 2025 Emissions prepared by Lincus Incorporated
Background: The California Air Resources Board requires a third-party verifier of the GHG. Lincus Incorporated reported, “The City of Needles’ 2025 emission data reports for Electric Power Entity (ARB AD 3047) are found to be free of material misstatement and in conformance with the Mandatory Reporting Requirement”. The City’s annual metric tons of CO2e reported for 2025 is 25,958.7
Every year covered entities turn in allowances and offsets for 30 percent of the previous year’s emissions. The City of Needles meets this requirement annually by utilizing the free allocation of allowances provided by CARB. For 2025, the City of Needles has 14,523 free allowances. The free allowances for 2025 will cover the annual compliance obligation.

At the end of each compliance period, covered entities must turn in the remaining 70 percent of allowances and a limited number of offsets covering the remainder of emissions in that compliance period. To meet the remaining 70 percent requirement, entities may participate in CARB auctions or purchase allowances and offsets from the open market. The current compliance period is a three-year period beginning in 2024 to 2026.

The Board of Public Utilities approved the Recommended Action on September 1, 2026.

Fiscal Impact: Remaining allowances and offsets for 2025 are 11,436; market prices for 2025 were $37.40/allowance. The estimated fiscal impact for 2025 GHG allowances and offsets is $428K. This is half of the cost from the prior year due to the increase in free allowances. The City of Needles will not transact for the required allowances and offsets until the enclosed verification report is accepted by CARB and posted to the City of Needles Compliance and Tracking System to verify quantities needed.

Environmental Impact: Reduction in greenhouse gas emissions Recommendation: Accept and File the AB32 Greenhouse Gas (GHG) Emissions Verification Report 2025 Emissions prepared by Lincus Incorporated
Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date: Date:
9/3/2026
9/3/2026

City of Needles- EPE
ARB ID: 3047
GHG Emissions Verification Report
(2025 MRR Emissions)
Prepared for:

Rainie Torrance
City of Needles - EPE
[email protected]
Ph: (760) 326-2115
Prepared By:

Ramanujan Vetrivel
Lincus, Inc.
[email protected]
Ph: (626) 550-5196
Verification Statement:

Positive

DISCLAIMER OF WARRANTIES AND LIMITATION OF LIABILITIES
This document was prepared by Lincus, Inc. to verify the RY2025 greenhouse gas emissions inventory for the Reporting Entity, in accordance with the requirements set forth by the California Air Resource Board Regulation for Mandatory Reporting of Greenhouse Gas Emissions (MRR).

Lincus, Inc. makes no express or implied, regarding the use of any information, processes, or conclusions contained in this report. Furthermore, Lincus, Inc. assumes no liability or responsibility for any damages or consequences arising from the use of this document or the information, processes, or findings disclosed herein.

Aug 6th, 2026
Subject: 2025 GHG Verification Report for City of Needles – EPE ARB#3047 Dear Rainie,
We have completed our verification of the 2025 reporting year greenhouse gas emissions report submitted in compliance with the Regulation for the Mandatory Reporting (“MRR”) of Greenhouse Gas Emissions. We would like to inform you that:

City of Needles’ (ARB ID 3047) 2025 emissions data report is reasonably assured of no material misstatement and in full conformance with the MRR resulting in positive verification.

This letter, and the documents that follow it, constitute our verification report to you.

Consistent with §95131(c), this verification report consists of the following items:
• A detailed description of the facility including all emissions and product data sources and boundaries;
• A detailed description of the data acquisition, tracking, and emission calculation/product data systems;
• The Verification Plan;
• The detailed comparison of the data checks conducted during verification services for emissions and product data sources;
• The log of issues identified during the verification activities and their resolution; • Any qualifying comments on findings during verification services; and • The calculations performed per section §95131(b) (12) (A) for emissions and product data.

Please feel free to contact me if you have any questions regarding our recommendation or the verification process.

Best Regards,
Ramanujan Vetrivel

TABLE OF CONTENTS
1 INTRODUCTION ...................................................................................................... 5

1.1 Verification Objective ...................................................................................... 5

1.2 Verification Scope ........................................................................................... 5

1.3 Description of Emission Activities, Sources, and Boundaries.......................... 6

1.4 Standards Used to Verify Emissions (Criteria) ................................................ 7 2 VERIFICATION ACTIVITIES.................................................................................... 7

2.1 Verification Logistics ....................................................................................... 8

2.2 Prepare and Submit COI/NOVS Forms........................................................... 9

2.3 Verification Plan Development ........................................................................ 9

2.4 Develop Sampling Plan................................................................................... 9

2.5 Site Visit ........................................................................................................ 10

2.6 Assess Materiality ......................................................................................... 11

2.7 Assess Conformity ........................................................................................ 11

2.8 Internal Quality Control ................................................................................. 11

2.9 Verification Report and Verification Statement.............................................. 11 3 VERIFICATION FINDINGS .................................................................................... 12

3.1 Data Checks & Issues Log............................................................................ 12

3.2 Materiality Assessment ................................................................................. 15

3.3 Conformance Assessment ............................................................................ 15 4 VERIFICATION RESULTS..................................................................................... 17 5 VERIFICATION STATEMENT................................................................................ 18 APPENDIX A: VERIFICATION PLAN .......................................................................... 20

5 1 INTRODUCTION

1.1 Verification Objective
City of Needles – EPE (ARB ID 3047) retained Lincus, Inc. to conduct an independent verification of its reported greenhouse gas emissions for 2025 calendar year. City of Needles – EPE (also referred as “Needles” or “Reporter”) emissions data report was prepared in compliance to California Air Resources Board’s (CARB) GHG Mandatory Reporting Regulation, California Code of Regulation (CCR), Title 17, Subchapter 10, Article 2, Sections 95100 to 95163, amended March 29, 2019 (Revised Reporting Regulation). This standard is referenced as “MRR” throughout this report. The verification process covers the GHG data collection period from January 1, 2025 and December 31, 2025. The objective of this verification exercise is to independently review substantiating evidence in order to confirm that the submitted emissions data report is:
• Reasonable assured of no material misstatement; and
• In conformance with MRR.

Lincus is a CARB-accredited verification body under Executive Order H-25-007 (first accredited in 2009 and valid through Feb 2028) and is fully qualified to perform verification for this report.

1.2 Verification Scope
In accordance with the MRR (Sec §95130(a)(1)), Needles is required to obtain annual verification services. Reporting entities subject to this section are also required to obtain full verification services if any of the following apply:
• First year of the compliance cycle;
• There has been a change in the verification body;
• An adverse verification statement or qualified positive verification statement was issued for the previous year for either emissions data or product data, or both; • A change of operational control of the reporting entity occurred in the previous year.

Needles is subject to a full verification for the 2025 reporting year due to a change in Verification Body. The scope of this verification includes Needles’ electricity transactions as an electric power entity as well as associated emissions covered under the scope of the MRR.

To ensure the emissions data report is free of material misstatements, the Lincus verification team evaluates emissions from applicable covered sources and product data to determine if there is reasonable assurance that the report contains no material

6 misstatements in the covered GHG emissions reported as CO2 equivalents and/or in the product data. To assess compliance with MRR, the team reviews the methods and factors used to compile the emissions data report, verifying adherence to MRR requirements and ensuring all relevant standards are met.

1.3 Description of Emission Activities, Sources, and Boundaries Needles is a municipal electric utility that provides retail electric service within the City of Needles, California. Needles operates as a retail provider and serves its own load within the Western Area Lower Colorado (WALC) Balancing Authority. Western Area Power Administration - Desert Southwest Region (WAPA-DSW) acts as Needles' scheduling coordinator and manages electricity scheduling and associated e-Tags on the City's behalf. Needles receives electricity from a combination of Parker-Davis Project hydroelectric allocations, wholesale power purchases, Aggregate Energy Services (AES) resource sharing, and balancing authority energy imbalance services.Needles reports greenhouse gas emissions associated with electricity imported into California pursuant to the California Air Resources Board (CARB) Mandatory Reporting Regulation. Reported electricity transactions primarily consist of specified imports associated with the Parker-Davis Project hydroelectric allocation and unspecified imports from wholesale electricity purchases, AES resource sharing, and WALC balancing authority energy imbalance energy. Needles also reports retail electricity sales to its end-use customers. The City does not export or wheel electricity and does not sell power into CAISO. Emissions boundaries include all reportable imported electricity transactions for which Needles is responsible under CARB reporting requirements. Table 1a and 2 summarizes initially submitted emission activities, sources, and emission boundaries.

Table 1a: List of Imports

7 Table 2: List of Boundaries
Geographic Boundaries Needles’ service territory
Organizational Boundaries Needles’ operational control
Greenhouse Gases Verified CO2, CH4, N2O
Reporting Year 2025 Emissions
(January 1, 2025 through December 31, 2025)

1.4 Standards Used to Verify Emissions (Criteria)
Table 4 outlines the guidance and protocols used to conduct this verification:

Table 4: Standards Used to Verify Emissions
Topic Description
Verification Standard
Mandatory Reporting Regulation, California Code of
Regulation (CCR), Title 17, Subchapter 10, Article 2,
Sections 95100 to 95163, amended March 29, 2019
Operational
Boundaries
Delivered electricity/electricity transactions by City of Needles- EPE
Level of Assurance Reasonable Assurance
Materiality Threshold
Discrepancies, Omissions, and Misreporting greater
than plus or minus five (± 5) percent of the reported
covered GHG emission are considered “material.”
Non-compliance/Nonconformance
Threshold
Items not in conformance with verification standard
stated above that may lead to material misstatements,
errors, or omissions and/or other items discovered
during the verification process that may pose an
elevated risk of these occurrences.
2 VERIFICATION ACTIVITIES
The verification process was designed to gain clear understanding of Needles’ emission sources; to evaluate and verify the collection and handling of data; to review the calculations that lead to the emissions report; and to evaluate the processes and

8 procedures for reporting the associated data and results. Lincus personnel were particularly careful during this verification to refrain from providing advice to the reporting entity.

2.1 Verification Logistics
Upon acceptance of the verification proposal by the reporter and associated contractual obligations (e.g. proof of insurance, purchase order, etc.):
• A Lead Verifier to serve as a project manager and point of contact was assigned; • The reporter was asked to assign Lincus, Inc. as the Verification body in CaleGGRT; • The reporter was asked to provide electronic and/or physical copies of its GHG Monitoring or Inventory Plan and associated relevant data for review; • The lead verifier assigned discussed the general timing of verification services with facility personnel including:
o Types of proposed document and data reviews;
o Expected date for completing verification services.

At such point in time that initial information had been received, the lead verifier contacted the reporter to discuss initial verification logistics and selected the verification team.

NOTE: If it was believed that a real or perceived Conflict of Interest (COI) existed during any point up to COI/NOVS approval by ARB, the Lead Verifier reserved the right to halt verification logistic activities until a COI determination could be made. Internal evaluation of COI was also conducted for each member of the verification team.

The Lincus verification team for this verification activity consisted of the individuals shown in Table 5. These individuals were selected based on their verification experience, as well as familiarity with the technical operations of this facility type. The lead verifier had operational control over the verification team and was the primary point of contact for all verification activities.

Table 5: List of Verification Team Members
Name
CARB
Accredited
EO #
Project Role Company
Name
Ramanujan Vetrivel H-26-027 Lead Verifier Lincus, Inc.

9 Alyza Kashmiri H-26-011 Verifier Lincus, Inc.

Cristalle Mauleon H-24-122 Independent Reviewer Lincus, Inc.

2.2 Prepare and Submit COI/NOVS Forms
In accordance with MRR (§95131 and §95133), the Lead verifier completed a Conflict of Interest (COI) and Notification of Verification Services (NOVS) form using the ARB online portal and received approval by ARB on 03/19/2026. The COI risk for this verification was deemed to be low.

2.3 Verification Plan Development
After receiving COI/NOVs approval from ARB, a Verification Plan was developed for the site in accordance with §95131(b)(1). The Verification Plan provided an overall roadmap for the verification process and listed specific activities that must be conducted during the verification and also identifies an expected timeline for the completion of each activity. A copy of the Verification Plan is attached in Appendix A.

The verification team downloaded ONE workbook and the emissions data report from Cal e-GGRT.

The following documents were also requested before and after developing the verification and Sampling Plan:
• Updated GHG Inventory plan
• Hourly e-Tags data
• Previous Year’s Verification Report
• CAISO sales calculation file
• Raw OATI Data Files (downloaded during the site visit) • Copies of sample e-Tags

2.4 Develop Sampling Plan
After initial review of data, Lincus developed a Sampling Plan in accordance with the procedures outlined in §95131(b)(7)(A)-(C) based on a strategic risk analysis of submitted data to assess the nature, scale, and complexity of the verification activity.

The sampling plan for verification included a quantitative assessment of materiality risk for emission sources including:
• Ranking of emission sources by amount of contribution to total CO2 equivalent; • Ranking of emissions sources by risk of calculation uncertainty. • Fuel and electricity transactions were also ranked or evaluated relative to the amount of fuel or power exchanged.

10 The Sampling Plan also included a qualitative assessment of conformity risk as applicable, including as applicable under §95110 to §95123, §95129, and §95150 to §95157 including:
• Data acquisition equipment;
• Data sampling and frequency;
• Data processing and tracking;
• Emissions calculations;
• Product data (not applicable to this verification);
• Data reporting;
• Management policies or practices in developing emissions data reports.

Note that the Sampling Plan is considered an internal verification process document, which must be made available to CARB upon request. As such, it is not made available to the Reporter.

2.5 Site Visit
The lead verifier conducted a site visit on 06/25/2026. The meeting was attended by the following personnel:
• Yeshpal Gupta, Lincus, Inc., Verifier
• Rainie Torrance, Needles, Utility Manager
• Trent Nunn, WAPA, Settlements & Billing Supervisor
• Chenguang Wang, WAPA, Public Utilities Specialist
The purpose of the meeting was to
• Check that all sources specified in sections §95110 to 95124, and 95150 to 95157, as applicable to the reporting entity are identified appropriately as outlined in the sampling plan.
• Review and understand the data management systems used by the reporting entity to track, quantify, and report greenhouse gas emissions and electricity transactions to evaluate the uncertainty and effectiveness of these systems as outlined in the sampling plan.
• Query NERC E-Tags from OATI database and go over the steps and Calculations for aggregation of transaction data, QA/QC process, and other relevant content of the emissions data report.

The lead verifier carefully walked through the GHG calculations and sources for the data and asked questions, as needed. The verifier also witnessed download of the OATI reports for NERC e-tags and they were sent to the verifier via email.

11 2.6 Assess Materiality
Table 6a below summarizes the specific sections of the MRR directly applicable to this facility.

Table 6a: Sections of the MRR Utilized to Verify Materiality Mandatory Reporting
Requirement
Applicable Section
Data Requirements and Calculation
Methods for Electric Power Entities
§95111

2.7 Assess Conformity
Table 6b below summarizes the specific sections of the MRR directly applicable to this facility.

Table 6b: Sections of the MRR Utilized to Verify Conformity Mandatory Reporting Requirement Applicable Section
Applicability §95101
Greenhouse Gas Reporting Requirements §95103
Emissions Data Report Contents and Mechanism §95104
Recordkeeping Requirements §95105
Data Requirements and Calculation Methods for
Electric Power Entities §95111

2.8 Internal Quality Control
After the initial verification statement had been completed, a draft verification report was developed, and it was provided to an Independent Reviewer for review. The Independent Reviewer ensured that all applicable verification procedures were followed and identified any areas of significant concern, including errors in planning, data sampling, and/or judgment by the verification team that are related to the draft verification statement.

2.9 Verification Report and Verification Statement
At the completion of the verification services, a detailed verification report, including sampling plan, data checks completed issues logged, and their resolution, as well as any additional qualifying verification findings was provided to the reporter. Ten business days were allowed for the entity to make corrections (if needed). Once a discussion had been held with the reporter regarding their verification report, a final report and verification statement was submitted to ARB.

12 3 VERIFICATION FINDINGS

3.1 Data Checks & Issues Log
The verification team conducted verification activities as outlined in Section 2.4 “Sampling Plan.” In accordance with the MRR, the following “Data Checks” and “Issues Log” were developed to identify areas of material misstatement and/or nonconformance and any corrective action taken by the reporting entity prior to providing a verification statement to ARB. A sample list of data checks is provided below with the results summarized in Table 7a and Table 7b. There were no issues identified by the verifier, so there is no issues log for RY2025. • Reviewed GHG monitoring Program for MRR compliance.
• Re-created the transactions data calculations from the consolidated OATI NERC e-tags report and compared with submitted specified/unspecified import/ data aggregated By First Point of Receipt (POR).
• Checked submitted Transmission Loss Factor (TLF) for all sources. • Downloaded raw OATI data for the 2025 calendar year during the in-person site visit.
• Detailed data management system review was completed during the site visit and confirmed that no changes has been made to the reporting and QA/QC process.
• Reviewed the submitted NAICS Code and confirmed that the facility correctly identified itself as an Electric Power Distribution entity with a NAICS classification of 221122 based on review of the processes taking place at the facility.

13 Table 7a: Data Checks (Covered Emissions Data)
Table 7b: Data Checks (Non-covered Data)
Transaction Type Transaction Source Reported MWh
Reported
CO2e Verifier MWh Verifier CO2e Difference
Percent
Difference Notes
ABEL230 10 4.4 10 4.4 - 0%
APACHE115 48 21.0 48 21.0 - 0%
APACHE230 944 412.1 944 412.1 - 0%
AVA.SYS 29 12.7 29 12.7 - 0%
GILARIVER500 186 81.2 186 81.2 - 0%
GRIFFITH230 26,172 11,425.6 26,172 11,425.6 - 0%
HA500 304 132.7 304 132.7 - 0%
IPCOGEN 64 27.9 64 27.9 - 0%
IPP 224 97.8 224 97.8 - 0%
KAYLHV 3 1.3 3 1.3 - 0%
LYPK 144 62.9 144 62.9 - 0%
MEAD230 3,272 1,428.4 3,272 1,428.4 - 0%
NORTHSYS 33 14.4 33 14.4 - 0%
NWMTIMBALANC 10 4.4 10 4.4 - 0%
PACE 5 2.2 5 2.2 - 0%
PALOVERDE500 866 378.1 866 378.1 - 0%
PGE 16 7.0 16 7.0 - 0%
PSCO 9 3.9 9 3.9 - 0%
PSEI.SYSTEM 9 3.9 9 3.9 - 0%
RACEWAY230 27 11.8 27 11.8 - 0%
SOUTHSYS 136 59.4 136 59.4 - 0%
SPS 10 4.4 10 4.4 - 0%
SRPNETWORK 11,004 4,803.9 11,004 4,803.9 - 0%
TOPOCK230 64 27.9 64 27.9 - 0%
VAIL345 84 36.7 84 36.7 - 0%
WAUE 27 11.8 27 11.8 - 0%
WALC BAA IMB 9,046 3,949.1 9,046 3,949.1 - 0%
AES SHARING GROUP 6,716 2,931.9 6,716 2,931.9 - 0%
Specified Imports Parker-Davis Project 23,951 0.0 23,951 0.0 - 0% RPS Adjustment None reported 0 0.0 0 0.0 N/A N/A
QE Adjustment None reported 0 0.0 0 0.0 N/A N/A
Linked None reported 0 0.0 0 0.0 N/A N/A
Totals 83,413 25,958.7 83,413 25,958.7 - 0%
Unspecified Imports

14 Table 8: Issues Log

15 3.2 Materiality Assessment
The following formula was used to assess material misstatement, whereas the total reported emissions have emissions greater or less than five (5) percent:

Percent Error =
∑((Discrepancies + Omissions + Misreporting) × 100%)
Total Covered Reported Emissions
Whereas:
• “Discrepancies” - any differences between the covered emissions/product data and verifier calculated covered emissions/product data for a data source or product data subject to data checks in section 95131(b)(8).
• “Omissions” - any covered emissions or product data the verifier concludes must be part of the emissions data report, but were not included by the reporting entity in the emissions data report.
• “Misreporting” - duplicate, incomplete or other covered emissions the verifier concludes should, or should not, be part of the emissions data report or duplicate or other product data the verifier concludes should not be part of the emissions data report.

The materiality assessment for this facility was calculated as Percent Error =
(0.00)
𝟐𝟓, 𝟗𝟓𝟖. 𝟕 𝑴𝑻
= 0.00%
The percent error for Needles’ emissions is within the acceptable materiality threshold of ± 5% confidence.

3.3 Conformance Assessment
The Table below listed conformance assessment findings.

16 Table 9: Conformance Assessment
Requirement Code Section Assessment
Information to allow the verification team to develop a general understanding of entity boundaries, operations, and electricity transactions;
$95105(d) (1)
This entity is in
conformance with the
MRR.

Reference to management policies or practices applicable to reporting pursuant to section 95111; $95105(d) (2)
This entity is in
conformance with the
MRR.

List of key personnel involved in compiling data and preparing the emissions data report; $95105(d) (3)
This entity is in
conformance with the
MRR.

Training practices for personnel involved in reporting delivered electricity pursuant to section 95111 and responsible for data report certification, including documented training procedures; $95105(d) (4)
This entity is in
conformance with the
MRR.

Query of NERC e-Tag source data to determine the quantity of electricity (MWh) imported, exported, and wheeled for
transactions in which they are the purchasing-selling entity on the last physical path segment that crosses the border of the state of California, access to review the raw e-Tag data, a tabulated summary, and query description;
$95105(d) (5)
This entity is in
conformance with the
MRR.

Reference to other independent or internal data management systems and records, including written power contracts and associated verbal or electronic records, full or partial ownership, invoices, and settlements data used to document whether reported transactions are specified or unspecified and whether the requirements for adjustments to covered
emissions pursuant to sections 95852(b)(1)(B), 95852(b)(4) and 95852(b)(5) of the cap-and-trade regulation are met; $95105(d) (6)
This entity is in
conformance with the
MRR.

Description of sNeedless taken and calculations made to aggregate data into reporting categories required pursuant to section 95111
$95105(d) (7)
This entity is in
conformance with the
MRR.

Records of preventive and corrective actions taken to address verifier and ARB findings of past non-conformances and
material misstatements
$95105(d) (8)
This entity is in
conformance with the
MRR.

Log of emissions data report modifications made after initial certification; $95105(d) (9)
This entity is in
conformance with the
MRR.

A written description of an internal audit program that includes emissions data report review and documents ongoing efforts to improve the GHG Inventory Program $95105(d) (10)
This entity is in
conformance with the
MRR.

17 4 VERIFICATION RESULTS
Lincus, Inc. was selected by Needles to verify its reported greenhouse gas emissions for 2025 emissions year. The purpose of this verification activity was to confirm, on behalf of ARB that reported GHG emissions from this facility are free of material misstatement and in conformance with Subchapter 10 “Climate Change” Sections §95100 to §95157, Title 17, California Code of Regulations also referenced as “The California Global Warming Solutions Act of 2006 (AB 32).” The verification team planned and performed various data checks and assessments to verify these reported emissions based on objective evidence to provide reasonable assurance that the amount of GHG emission reported are free of material misstatement; and in full conformance with the requirements of the Regulation. Based on these verification activities as outlined in the above sections, it is the conclusion of Lincus Inc. in its role as independent ARB accredited verifier that, City of Needles - EPE’s reported emissions are free of material misstatement and in full conformance with the regulation.

18 5 VERIFICATION STATEMENT

19

20 APPENDIX A: VERIFICATION PLAN
Reporting Entity Name City of Needles - EPE
ARB ID 3047
Reporting Year 2025
Applicable Regulation
CARB Regulation for the Mandatory
Reporting of Greenhouse Gas Emissions
(§95111)
Verification Team
Ramanujan Vetrivel, Lead Verifier &
Transactions Specialist, Lincus, Inc.

Yeshpal Gupta, Verifier & Transactions
Specialist, Lincus, Inc.

Alyza Khan, Verifier, Lincus, Inc.

Cristalle Mauleon, Independent Reviewer,
Lincus, Inc.

INTRODUCTION
Lincus verification team developed this Verification Plan to verify 2025 emissions data report. The Verification Plan was prepared by considering 2025 emissions data report and “ONE workbook” downloaded from the Cal-eGGRT website along with the GHG inventory plan provided by the Reporter. The Verification Plan was produced in accordance with the California Code of Regulations, Title 17, Subchapter 10, Article 2, Section 95100 to 95163, Regulation for the Mandatory Reporting of Greenhouse Gas Emissions. The purposes of this verification exercise is, by review of objective evidence, to independently verify that the submitted emissions data report is:
• Reasonable assured of no material misstatement; and
• In conformance with the MRR.

FACILITY BOUNDARIES, OPERATIONS, AND EMISSIONS SOURCES (95131 [b][1][A][1])

21 City of Needles (the Utility) is a retail provider that serves electric customers in the City of Needles. The Utility imports electricity from one (1) specified source and from several unspecified sources located outside of California. The utility also purchases electricity from in-state resources. The utility sells the electricity to end-use customers and does not sell excess electricity into CAISO. Needles resides in the Western Area Lower Colorado Balancing Authority (WALC BA), and as part of the services provided by the BA, Needles receives untagged Energy Imbalance to close the gap between actual load and scheduled energy. This untagged amount is reported under unspecified imports.

The Utility does not export or wheel power and does not have RPS adjustments, QE adjustments, or Linked transactions in the 2015 reporting year. • Specified and Unspecified imports
TRAINING OR QUALIFICATIONS OF PERSONNEL (95131 [b][1][A][2]) The GHG Inventory Plan documentation provides the names of key personnel from the Reporter who are involved in compiling data and preparing the emissions data report.

The Inventory Plan also includes training practices for personnel involved in reporting delivered electricity and responsible for data report certification, including documented training procedures.

METHODOLOGIES USED TO QUANTIFY AND REPORT GREENHOUSE GAS EMISSIONS (95131 [b][1][A][3])
OATI database is used to quantity electricity transactions and “ONE workbook” is used to report greenhouse gas emissions.

DATA MANAGEMENT SYSTEM AND TRACKING (Section 95131 [b][1][A][4]) The City of Needles’ electricity import and delivery data are managed through coordination with the Western Area Power Administration – Desert Southwest (WAPA-DSW). WAPA-DSW serves as the generator-marketer for the Parker-Davis Project and acts as the scheduling agent for the City of Needles. In this role, WAPA schedules power on behalf of the City and manages the associated e-tags used to track electricity delivered to the City’s load.

Electricity transactions are tracked using OATI’s greenhouse gas (GHG) reporting module, which compiles e-tag data for all transactions sinking at Needles. The City of Needles relies on OATI-generated files provided through WAPA to identify electricity imports that cross the California border and are therefore reportable under the Mandatory Reporting Regulation (MRR). The City of Needles operates entirely within the WALC balancing authority and serves only its own load. It is not a multi-jurisdictional retail provider. Differences between reported retail electricity sales and imported

22 electricity volumes may occur due to balancing authority inadvertent energy, where WAPA covers shortfalls when actual load exceeds scheduled imports. Such inadvertent energy does not involve tagged transactions and is settled financially rather than through additional electricity scheduling.

Retail electricity sales data are generated through the City’s electric utility billing system.

Monthly retail sales reports are produced by the business office and used for regulatory reporting. These data are re-run and reconciled at year-end to ensure accuracy prior to submission of the annual GHG emissions report. Any post-month-end meter adjustments are incorporated during this reconciliation process. WAPA does not sell electricity into CAISO on behalf of the City of Needles, and the City does not have any CAISO sales obligations. Parker-Davis hydroelectric power marketed by WAPA is delivered to points outside of CAISO, and no CAISO transactions are associated with the City’s reported electricity imports.

PREVIOUS VERIFICATION REPORTS (Section 95131 [b][1][A][5]) City of Needles - EPE received a positive Verification Statement for the 2024 GHG Emissions Report.

TYPES OF PROPOSED DOCUMENT AND DATA REVIEWS (Section 95131 [b][1][B][3])
The verification team will perform document and data reviews to assess the material misstatement and conformance of the emissions data report in accordance with the MRR, including Sections 95105, 95111, and 95131. This review will include the GHG inventory program documentation to evaluate organizational boundaries, data management systems, methodologies, QA/QC procedures, and reporting controls. The emissions data report and ONE workbook will also be reviewed for completeness and consistency with supporting records.

Data reviews will focus on reported electricity transactions, including imports (specified and unspecified) and retail sales as applicable, with reconciliation of reported values to supporting documentation such as power contracts, NERC e-Tags, settlement data, WREGIS database, and accounting records. The verification team will assess whether all reportable transactions have been captured and properly classified in accordance with Section 95111. Supporting documentation, including contracts and related records, will be reviewed to substantiate specified source claims.

The verification team will also evaluate emissions calculation methodologies, including emission factors and transmission loss factors, and may independently trace data to its source and re-perform select calculations. OATI queries will be reviewed to assess data

23 completeness and aggregation logic. The results of these reviews will inform the development of the sampling plan and associated quantitative and qualitative risk assessment, providing reasonable assurance that the emissions data report is free of material misstatement and in conformance with the MRR.

SCHEDULE FOR VERIFICATION SERVICES (Section 95131 [b][1][B][1-4]) The Table below shows the proposed schedule for completion of the verification activities. Based on the review of the documents provided, the verifier(s) developed the scope of the proposed document and data review to ensure the accuracy, conformance, and completeness of the GHG report and that it is free of material misstatement.

Proposed Schedule for Verification Activities Subtasks Completion Dates COI/NOVS Evaluation
Submit COI/NOVS to
ARB 03/13/2026(Actual)
Receive ARB approval 03/19/2026 (Actual)
Project Kickoff and Coordination
Reporter submits
report in Cal-eGGRT 05/21/2026 (Actual)
Send initial data
request to the
Reporter
05/26/2026
Verification Plan Development
Submit Verification
Plan to the Reporter 06/12/2026
Receive complete
response from the
Reporter
06/12/2026
Sampling Plan Development Develop Sampling
Plan 06/19/2026
Site Visit Conduct In-Person
Site Visit 06/25/2026
Compliance Assessment
Send Issues Log to
the Reporter 07/03/2026
Receive completed
response from the
Reporter
07/15/2026
Internal Quality Control Complete internal
Quality Control 07/22/2026
Verification Report & Verification Opinion
Upload Verification
Opinion on CaleGGRT07/24/2026
Send verification
report to the Reporter 07/24/2026

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Accept and File the 2027 California Air Resources Board (CARB) Publicly Owned Utility (POU) Allocation Distribution Form and Annual Free Allowance Allocation under the California Cap-and-Trade Program
Background: On April 28, 2026, the Needles Public Utility Authority (NPUA) and the City of Needles submitted a letter of support for amendments to the California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms Regulation. The NPUA and City of Needles supported the proposed language changes identified in the Notice of Public Availability of Modified Text and Availability of Additional Documents and/or Information.

The proposed regulatory amendments would increase the number of free allowances allocated to publicly owned utilities (POUs) that have been negatively impacted financially by the State’s greenhouse gas compliance requirements. Enclosed is the annual POU report documenting the allocation and distribution of the 2027 free allowances to the City’s Compliance Holding Account.

Historically, the City/NPUA has received approximately 6,500 free allowances annually.

This limited allocation has placed an additional financial burden on the NPUA and its ratepayers to meet applicable compliance obligations.

The California Air Resources Board (CARB) subsequently approved the regulatory changes.

As a result, the City/NPUA will receive a significant increase in free allowances. The revised allocations are 14,523 allowances for 2027, 14,623 allowances for 2028, and 27,557 allowances for 2029.

This increase will provide meaningful financial relief to the NPUA by reducing the number of allowances that must be purchased to satisfy future compliance obligations and will help mitigate the financial impact on utility ratepayers.

The Board of Public Utilities approved the Recommended Action on September 1, 2026.

Fiscal Impact: The City/NPUA is able to utilize the free allowances to satisfy the annual compliance obligation for 30% of its verified GHG emissions. This increased allocation reduces the number of allowances the NPUA must purchase on the open market, thereby helping to reduce compliance costs and the financial burden on ratepayers.

Recommendation: Accept and File the 2027 California Air Resources Board (CARB) Publicly Owned Utility (POU) Allocation Distribution Form and Annual Free Allowance Allocation under the California Capand-Trade Program Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Authorize Brooks Consulting LLC to Develop a 10-year Capital Funding Plan for the Needles Public Utility Authority (NPUA) Electric Department, not to exceed $15,000, utilizing the adopted FY 27 Operations and Maintenance Budget
Background: The Needles Public Utility Authority (NPUA) adopted a Water and Wastewater Master Plan in approximately 2018. The adopted Master Plan identified necessary system improvements for both utilities and provided a comprehensive framework for prioritizing projects, which contributed to the successful pursuit and award of grant funding for the water system.

The Electric Department has not yet developed a comprehensive 10-Year Capital Funding Plan to evaluate the existing utility system, identify system constraints and deficiencies, and establish priorities for future capital improvements. The 10-Year Capital Funding Plan will provide a long-term framework for addressing safety, reliability, system capacity, maintenance, modernization, and overall system resiliency.

The 10-Year Capital Funding Plan will also establish a prioritized, multi-year capital improvement program based on the NPUA’s adopted 2025 Electric Cost of Service Study.

The plan will identify recommended projects and improvements, establish priorities and implementation timelines, and provide preliminary cost estimates for each recommended project or task. The financial component will assist the NPUA in developing a sustainable, long-term investment strategy for the electric system and positioning the utility to pursue available grant funding and other financing opportunities.

Developing the 10-Year Capital Funding Plan will provide the NPUA with a comprehensive roadmap for maintaining and modernizing the electric system, addressing existing and future system needs, improving reliability, and ensuring that capital investments are strategically prioritized and financially sustainable.

The Board of Public Utilities approved the Recommended Action on September 1, 2026.

Fiscal Impact: The adopted FY 27 Electric Operations and Maintenance Budget (O&M) has $40,000 available for professional services. The costto develop the 10-YearCapital Funding Plan will not exceed $15,000.

Recommendation: Authorize Brooks Consulting LLC to Develop a 10-year Capital Funding Plan for the Needles Public Utility Authority (NPUA) Electric Department, not to exceed $15,000, utilizing the adopted FY 27 Operations and Maintenance Budget
Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026
9/3/2026

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Water and Wastewater Cost of Living (COLA) Adjustments Effective October 1, 2026; Adopted November 2025
Background: On November 12, 2025, the City Council accepted the Board of Public Utilities’ recommendation and approved the rate increases established by Board of Public Utilities Resolution No. 11-12-25 BPU and Needles Public Utility Authority Resolution No. 11-12-2025-NPUA. The approved rate increases include annual cost-of-living adjustments (COLA) for water and wastewater services, as provided in the Attachment – Schedule of Rates.

The annual cost-of-living adjustment for 2026 is 3% for Water and 6% for Wastewater. Accordingly, the adopted rates effective October 1, 2026, are as follows:

Water Rates:

Fixed Service
Charge (per
Month)
Effective October 1,
Current 2026 (3% COLA)
5/8 or 3 /4 inch $ 48.78 $ 50.25
1" $ 75.75 $ 78.03

1.5" $ 143.17 $ 147.47
2" $ 224.07 $ 230.80
3" $ 439.82 $ 453.02
4" $ 682.54 $ 703.02
6" $ 1,353.76 $ 1,397.47
8" $ 2,165.82 $ 2,230.80
10" $ 5,671.75 $ 5,841.91
Per HCF $ 3.37 $ 3.48
Wastewater Rates:

Fixed Service
Charge Effective October 1,
All customers Current 2026 (6% COLA)
$ / EDU $ 56.03 $ 59.40
Fiscal Impact: Increase in water and wastewater revenues for the annual cost-of-living adjustments (COLA).

Recommendation: Information only
Submitted By: Patrick Martinez, Executive Director
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026

Water & Wastewater Cost of Service Study
Adopted Resolution’s 2025-47 and 2025-48
Table -1: Proposed Five-Year Water Rate Schedule
Description FY 2025
(Current)
FY 2026
(10/1/2025)
FY 2027
(10/1/2026)
FY 2028
(10/1/2027)
FY 2029
(10/1/2028)
FY 2030
(10/1/2029)
Proposed Revenue
Adjustment 3.0% 3.0% 3.0% 3.0% 3.0%
Fixed Service Charges (per
Month)
5/8 & 3/4-inch $48.86 $48.78 $50.25 $51.76 $53.32 $54.92 1-inch $79.10 $75.75 $78.03 $80.38 $82.80 $85.29

1.5-inch $177.30 $143.17 $147.47 $151.90 $156.46 $161.16 2-inch $225.36 $224.07 $230.80 $237.73 $244.87 $252.22
3-inch $611.58 $439.82 $453.02 $466.62 $480.62 $495.04
4-inch $801.89 $682.54 $703.02 $724.12 $745.85 $768.23
6-inch $1,437.60 $1,356.76 $1,397.47 $1,439.40 $1,482.59 $1,527.07 8-inch $2,259.31 $2,165.82 $2,230.80 $2,297.73 $2,366.67 $2,437.68 10-inch $1,977.70 $5,671.75 $5,841.91 $6,017.17 $6,197.69 $6,383.63 Commodity Charges (per
hcf)
All Customers $3.07 $3.37 $3.48 $3.59 $3.70 $3.82
Table -2: Proposed Five-Year Wastewater Rate Schedule
Description FY 2025
(Current)
FY 2026
(10/1/2025)
FY 2027
(10/1/2026)
FY 2028
(10/1/2027)
FY 2029
(10/1/2028)
FY 2030
(10/1/2029)
Proposed Revenue
Adjustment 6.0% 6.0% 6.0% 6.0% 6.0%
Fixed Service Charges (per
Month)
All Customers ($/EDU) $52.85 $56.03 $59.40 $62.97 $66.75 $70.76

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Approve a 2.9% cost-of-living (COLA) increase in electric basic service charge rate and streetlights as of October 1, 2026; approve an over-hydro rate of $0.1058 effective October 1, 2026; apply a .01 Power Cost Adjustment reducing the over-hydro rate to $.0958 and approve the methodology to calculate the annual electric base rate and the power cost adjustment rate based on the rate calculation spreadsheets
Background: The Statement of Policies, revised April 2022, provides that power rates will be designed to provide for operation and maintenance, bond payments, purchase payments, taxes, fair share allocation, trustee fee, mandated (but unfunded) state or federal program (conservation program), the asset replacement fund, and the actual costs to purchase power. The calculated rate will consist of two components: power purchase costs, and non-power purchase costs. The CPI for the USDLS U.S. West – Size Class B/C for June 2026 indicates a 2.9% cost of living increase. The policy sets a cap at 5%. The attached spreadsheets are in accordance with the revised Statement of Policies and will set the new rates as follows:

Current Effective Oct 1, 2026
Basic Service Charge $37.20 $38.28
Winter Hydro (Oct – Feb) $.0923– 376 kwh $.0981– 376 kwh Summer Hydro (Mar – Sept) $.0832 –707 kwh $.0874 –709 kwh Over-hydro $0.1159 *$0.1058
CA Energy Efficiency Program $0.0022 $0.0022
Utility Users Tax (UUT) 2.5% on all of the above 2.5% on all of the above As of July 2026, the Power Cost Adjustment has a positive balance of $1,073,102. Applying a .01 over-hyrdo rate reduction to $0.0958 will reduce the Power Cost Fund Balance by aproximately $182,246.94; PCA Rebate
Over-Hydro Projections
October November December
$/Kwhr 7,024,296 6,208,785 5,009,613

0.1058 743,170.52 656,889.45 530,017.06

0.0958 672,927.56 594,801.60 479,920.93
$ 70,242.96 $ 62,087.85 $ 50,096.13 $ 182,426.94
The Streetlights Cost of living adjustment is 2.9% below is the current and proposed new rates; Fiscal Impact: Cost-of-living adjustment applied to the basic service charge and streetlights; decrease in over hydro rate from $0.1159 to $0.0958.

Type Size KWh Current
Rate
Proposed Rates
(2.9%) COLA
Decorator 100 43 $ 22.39 $ 23.04
Sodium 100 43 $ 22.39 $ 23.04
Sodium 200 85 $ 26.57 $ 27.34
Sodium 400 171 $ 35.12 $ 36.14
LED 38 16 $ 19.71 $ 20.28

Recommendation: Approve a 2.9% cost-of-living (COLA) increase in electric basic service charge rate and streetlights as of October 1, 2026; approve an over-hydro rate of $0.1058 effective October 1, 2026; apply a .01 Power Cost Adjustment reducing the over-hydro rate to $.0958 and approve the methodology to calculate the annual electric base rate and the power cost adjustment rate based on the rate calculation spreadsheets The Board of Public Utilities approved the Recommended Action on September 1, 2026.

Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date: Date:
9/3/2026
9/3/2026

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: HUD Public Housing Agency Recovery & Sustainability (PHARS) Assessment Results and NSPIRE Inspection Update
Background: On March 30, 2026, the U.S. Department of Housing and Urban Development (HUD) designated the Housing Authority of the City of Needles (HACN) as Troubled / Capital Fund Troubled under the Public Housing Assessment System (PHAS) for the fiscal year ending June 30, 2024. HACN received an overall PHAS score of 53 out of 100, consisting of Financial Assessment 25/25, Physical Assessment 22/40, Management Assessment 6/25, and Capital Fund 0/10.

Following the designation, HACN submitted a PHAS Recovery Plan outlining corrective actions to address the identified deficiencies. Since the assessment period, HACN has corrected identified NSPIRE deficiencies; established preventive maintenance and recurring inspection programs; appointed a dedicated Housing Manager; updated the Admissions and Continued Occupancy Policy and Administrative Plan; strengthened vacancy, occupancy, waiting list, and Capital Fund monitoring; increased coordination among Housing, Finance, and executive management; enhanced procurement oversight; and expanded staff training.

As part of HUD’s recovery process, HUD conducted a Public Housing Agency Recovery & Sustainability (PHARS) Remote Assessment from July 20 through July 22, 2026. HUD reviewed financial records, Board minutes, and other documents and interviewed the Board Chair, program leadership, and staff.

On August 17, 2026, HUD issued its PHARS Assessment Results and Determinations, finding that HACN had made substantial progress toward organizational recovery since the City of Needles assumed operational responsibility in February 2023. HUD identified significant improvements in governance, financial management and internal controls, Capital Fund administration, physical conditions and modernization, program administration, and management coordination.

HUD also identified areas requiring continued attention, including governance oversight and training, financial staffing and reporting, VMS/PIC reconciliation, vacancy reduction and modernization, completion of Standard Operating Procedures, HOTMA implementation, and continued staff training.

On August 26, 2026, HUD conducted a General NSPIRE inspection of HACN properties. The inspection report issued September 1, 2026, reflects a Preliminary Inspection Score and Preliminary Calculated Score of

98. Although the final score remains pending, this preliminary result demonstrates substantial improvement in HACN’s physical property performance.

The PHARS results will serve as the basis for a Recovery Agreement and Action Plan establishing corrective actions, responsible parties, completion timeframes, documentation requirements, and monitoring provisions.

HUD will also assist HACN in developing a Sustainability Plan. Staff will continue working with HUD and utilizing available Technical Assistance to complete the remaining corrective actions and sustain HACN’s progress.

Recommendation: Receive and file the HUD Public Housing Agency Recovery & Sustainability (PHARS) Assessment Results and Determinations and the subsequent NSPIRE Inspection Report.

Submitted By: Patrick Martinez, HACN Executive Director City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026

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

OFFICE OF PUBLIC HOUSING
August 17, 2026
Board of Commissioners
c/o Ms. Janet Jernigan, Board Chairperson
Housing Authority of the City of Needles
908 Sycamore Drive
Needles, CA 92363
Subject: Public Housing Agency Recovery & Sustainability (PHARS) Assessments Results and Determinations
Dear Commissioners:

This letter is to convey the results and determinations of a PHARS assessment of the Housing Authority of the City of Needles (CA022) conducted by HUD on July 20, 2026, through July 22, 2026, and advises the Housing Authority of the next steps to be taken by HUD. The Housing Authority of the City of Needles received an assessment of its financial condition and governance because of a designation of Troubled by HUD’s Real Estate Assessment Center (“REAC”) for the fiscal year ending June 30, 2024.

HUD’s team reviewed the agency’s financial records, Board minutes, and other relevant documents. The review also included interviews with the Housing Authority’s Board Chair, program leadership, and staff. HUD appreciates the assistance and cooperation provided by the agency throughout the process.

The results and determinations from the assessment are outlined in the enclosed summary. These results will inform the development of a Recovery Agreement and Action Plan, as required by applicable federal statutes and requirements, which will establish specific performance standards and timelines, and identify the corrective actions and remedies to achieve and sustain agreed-upon levels of performance. As soon as feasible, HUD will negotiate and execute the Recovery Agreement and Action Plan with the Housing Authority and assist the agency in initiating the development of a Sustainability Plan.

We appreciate your cooperation and look forward to working with the Housing Authority of the City of Needles to support its continued recovery and achievement of sustainable performance. If you have any questions, please contact Ms. Mayfelisa Miso at [email protected] ,Mr. Twan Quach at [email protected] and Mr. Jameel Hill at [email protected]
Thank you for your continued assistance and cooperation in this matter.

Sincerely,
Meena S. Bavan
Director
Office of Public Housing
Enclosure: Results and Determinations
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
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

Housing Authority of the City of Needles – CA022
Public Housing Agency Recovery and Sustainability Assessment (PHARS) Results and Determinations
August 11, 2026
Results

1. Governance and Oversight
 The assessment found that the Housing Authority's governance and oversight practices were previously weakened by longstanding management deficiencies. Since the City of Needles assumed operational responsibility in February 2023, management has taken significant steps to strengthen Board oversight, executive management, communication, and accountability.
 Although the Board of Commissioners meets monthly and reviews budgets, procurement activities, policies, major expenditures, and operational updates, continued Board governance training is needed to ensure that Commissioners have a clear understanding of their oversight responsibilities and the financial and operational condition of the Housing Authority.
 The assessment found that executive management has established regular coordination meetings involving City leadership, Finance, and Housing management. These meetings have improved communication and accountability; however, continued formalization of management procedures is needed to ensure that responsibilities, reporting expectations, and follow-up activities are consistently documented.
 The Housing Authority has updated major policies, including the Admissions and Continued Occupancy Policy (ACOP), Administrative Plan, Annual Plan, and other operating policies. However, the Housing Authority has not completed development and implementation of all necessary Standard Operating Procedures (SOPs).  The assessment found that routine financial information provided to the Board should be further strengthened to ensure the Board receives sufficient information to effectively monitor the Housing Authority's financial condition, program performance, and emerging operational risks.
 These conditions indicate a need for continued strengthening of governance practices, Board training, management procedures, and formal reporting mechanisms to ensure sustained oversight and accountability.

2. Financial Management and Internal Controls
 The assessment found that the Housing Authority's financial management practices have improved substantially since the City assumed operational responsibility; however, continued improvements are necessary to ensure the sustainability of the Housing Authority's financial management and reporting processes.  The new Finance Director has implemented enhanced financial controls, including invoice review prior to payment, segregation of duties, financial monitoring using trial balances and accounting reports, and increased coordination between Finance and Housing personnel.
 Current Capital Fund applications have been approved, and monthly LOCCS reporting is current. These conditions demonstrate measurable improvement in Capital Fund administration and financial oversight.
 Despite these improvements, staffing limitations within the Finance Department continue to present an operational risk to the timely performance of financial management and reporting responsibilities.
 The assessment identified a continuing need for VMS reconciliation and improved coordination between Finance and Housing staff to ensure the accuracy and completeness of financial and program data.
 Previous audit and administrative deficiencies occurred before current staff assumed responsibility. Although management has implemented corrective measures, continued monitoring is necessary to ensure that improved internal controls are consistently applied and sustained.
 Continued Capital Fund training and HUD Technical Assistance are necessary to strengthen staff knowledge and reduce the risk of future reporting and administrative deficiencies.
 These conditions indicate a need for continued strengthening of financial staffing, internal controls, financial reporting, reconciliation procedures, and Capital Fund administration.

3. Physical Condition, Maintenance, and Vacancy Management  The assessment found that the Housing Authority has made measurable progress in addressing previous physical condition and NSPIRE-related deficiencies.  Management reported completion of corrective actions involving smoke alarms, carbon monoxide detectors, and other life-safety deficiencies.

 The Housing Authority has implemented maintenance tracking logs and preventive maintenance practices intended to improve inspection readiness and strengthen accountability for identifying and correcting deficiencies.  The Housing Authority has retained a third-party consultant to conduct pre-NSPIRE inspections and assist with inspection preparation and appeals.  The Housing Authority has rehabilitated approximately twenty-six (26) units since 2023 through modernization activities and continues to utilize Capital Funds to improve vacant units.
 Despite this progress, four (4) units remained vacant at the time of the assessment while modernization, repairs, and occupancy-related activities were being completed.  The assessment found that continued vacancy reduction and unit modernization are necessary to improve occupancy performance and ensure that available housing resources are returned to service as efficiently as possible.
 The Housing Authority's aging housing inventory also presents continuing long-term capital fund needs that require sustained planning, investment, and prioritization.  These conditions indicate a need for continued preventive maintenance, NSPIRE preparation, vacancy reduction, modernization, and long-term capital fund planning through the Five-Year Action Plan.

4. Program Administration, Data Integrity, and Staffing  The assessment found that Housing Authority staff continue to administer multiple HUD programs despite staffing limitations and increased operational responsibilities.  Staff are responsible for Public Housing administration, Housing Choice Voucher administration, VMS reporting, waiting list management, annual and interim reexaminations, VASH coordination, tenant services, financial coordination, and HUD reporting.
 Management acknowledged historical reporting discrepancies involving VMS and PIC and reported that reconciliation efforts remain ongoing in coordination with the Finance Department.
 The assessment found that continued reconciliation of VMS and PIC information is necessary to improve data accuracy, reporting reliability, and management's ability to monitor program performance.
 The Housing Authority has updated policies to incorporate HOTMA requirements; however, continued implementation, staff training, and monitoring are necessary to ensure full compliance with applicable requirements.

 The Housing Authority continues to work toward completion of the development and implementation of Standard Operating Procedures.
 Staffing limitations continue to place additional responsibilities on existing personnel and create a need for continued workforce development, cross-training, and management oversight.
 The assessment found that staff demonstrate commitment to program administration and compliance; however, continued training and technical assistance are necessary to ensure that staff have the knowledge and resources necessary to perform their assigned responsibilities effectively.
 These conditions indicate a need for continued strengthening of program administration, data integrity, staffing capacity, staff training, HOTMA implementation, and written operating procedures.

Determination
 The assessment determined that the Housing Authority of the City of Needles has made substantial progress toward organizational recovery since the City assumed operational responsibility in February 2023.
 The assessment identified significant improvements in governance, financial management and internal controls, Capital Fund administration, physical condition, modernization, program administration, and management coordination.  The assessment also identified areas requiring continued corrective action and management attention, including governance oversight and training, financial staffing and reporting, VMS/PIC reconciliation, vacancy reduction, modernization, Standard Operating Procedures, HOTMA implementation, and staff training.  Based on the totality of the assessment results, HUD determined that continued corrective action and monitoring are warranted to ensure that the improvements achieved by the Housing Authority are sustained and institutionalized.
 The findings identified through this assessment will serve as the basis for a Recovery Agreement establishing specific corrective actions, responsible parties, completion timeframes, documentation requirements, and monitoring provisions.  HUD recognizes the substantial progress made by the Housing Authority and City leadership since February 2023 and encourages continued collaboration with the HUD Field Office and utilization of HUD Technical Assistance to sustain and build upon the improvements achieved.

Inspection No: INSP-80494
Inspection Type: General NSPIRE Inspection
Property: (CA022000001) - SYCAMORE, NEEDLES, CA,
92363, US
Inspector: ,
Inspection Date: 8/26/2026
Escort Name: Serra Tieman
Property Type: RW
Inspection Start Date/Time: 8/26/2026 11:00 AM
Escort Email: [email protected]
Scattered Site:

Inspection End Date/Time: 8/26/2026 4:45 PM
Present During Inspection: Yes
Preliminary Scores
Preliminary Inspection Score: 98
Preliminary Calculated Score: 98
Preliminary Units Threshold: 1.83
Preliminary Property Threshold: 2
Preliminary Projected Inspection Score: 90
Preliminary Non-Scored Symbols: *+^
Final Scores
Final Inspection Score:

Final Calculated Score:

Final Units Threshold:

Final Property Threshold:

Final Projected Inspection Score:

Final Non-Scored Symbols:

Final Review: Accept
Building/Unit Inspection Data
Type
Inspection
Property Total Sample Size Total Units Inspected
Buildings 28 18 19
Units 52 21 22
Occupancy Information
Occupancy Rate(%)

94.2 Deficiency Summary
Inspectable Area Life-Threatening Severe Moderate Low
Inside 0 0 0 0
Outside 0 0 10 0
Units 11 3 7 3
Scoring Summary
Report Created: 9/3/2026 3:51 PM
Inspectable Area Life-Threatening Severe Moderate Low
Inside
Outside
Units
Total
Overall
9/3/26, 3:51 PM CA022, INSP-80494 Inspection Report With Scores 09-01-2026 09_53 AM.html file:///C:/Users/Patrick Martinez/Downloads/CA022, INSP-80494 Inspection Report With Scores 09-01-2026 09_53 AM.html 1/9

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Warrants through September 8, 2026
Background: N/A
Fiscal Impact: See Attached Warrant Registers
Recommendation: Approve the Warrant Registers through September 8, 2026 *Does not include most current check payroll run
Submitted By: Mark C. DeMay, CGFM, Director of Finance and Administrative Services City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026

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, AUGUST 11, 2026 COUNCIL EXECUTIVE SESSION – 5:00 PM CITY COUNCIL MEETING – 6:00 PM CALL TO ORDER - Mayor Jernigan called the meeting to order at 5:02 PM

ROLL CALL

PRESENT
Council Member Larry Ford
Vice Mayor Ellen Campbell
Mayor Janet Jernigan
Council Member Tona Belt arrived at 5:04 PM
Council Member Henry Longbrake
Council Member JoAnne Pogue
Council Member Jamie McCorkle
PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION ITEMS – None RECESSED TO EXECUTIVE SESSION at 5:03 PM

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.

No reportable action
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
No reportable action
CALL TO ORDER - Mayor Jernigan called the meeting to order at 6:10 PM ROLL CALL - As noted above
EXECUTIVE SESSION REPORT – given by City Attorney John Pinkney PLEDGE OF ALLEGIANCE - led by Mayor Jernigan
INVOCATION - given by Vice Mayor Campbell

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

Motion carried by the following roll call vote:

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

Absent: None
Abstain: None
CONFLICT OF INTEREST – None
CORRESPONDENCE – Mayor Jernigan acknowledged an email received opposing the ban of Kratom sales in the City of Needles.

INTRODUCTIONS – Mayor Jernigan acknowledged former Council Member Tim Terral in attendance.

CITY ATTORNEY – PARLIAMENTARY PROCEDURES given by City Attorney John Pinkney

PUBLIC APPEARANCE
Wayne Colburn announced the rescheduling of the RCC Rummage Sale to take place on August 21 and 22 at ABC Collision

PRESENTATION

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 City Manager Martinez gave staff report
Assistant Fire Marshal Curtis Markloff gave presentation Council asked questions and discussion ensued.

Mayor Jernigan opened public comment at 6:23 pm
No Public Comment
Mayor Jernigan closed public comment at 6:23 pm
Vice Mayor Campbell made a motion, seconded by Council Member Pogue, 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 Motion carried by the following roll call vote:

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

Absent: None
Abstain: None

HACN / COUNCIL REGULAR ITEMS

2. Receive and file the Housing Authority PHAS Recovery Plan Update City Manager Martinez gave staff report
Council asked questions and discussion ensued.

Mayor Jernigan opened public comment at 6:30 pm
No Public Comment
Mayor Jernigan closed public comment at 6:30 pm
Vice Mayor Campbell made a motion, seconded by Council Member McCorkle, to receive and file the Housing Authority PHAS Recovery Plan Update
Motion carried by the following roll call vote:

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

Absent: None
Abstain: None

COUNCIL CONSENT CALENDAR
Council Member McCorkle pulled item 5
Council Member Ford made a motion, seconded by Vice Mayor Campbell, to approve consent calendar items 3 and 4. Motion carried by the following roll call vote:

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

Absent: None
Abstain: None

3. Approved the Warrants Register through August 11, 2026

4. Approved the Minutes of July 28, 2026

PULLED ITEM

5. Accept and File the Treasurer's Report for the month of July 2026 City Manager Martinez and Finance Director Mark DeMay gave staff report Council asked questions and discussion ensued.

Mayor Jernigan opened public comment at 6:36 pm
No Public Comment
Mayor Jernigan closed public comment at 6:36 pm
Vice Mayor Campbell made a motion, seconded by Council Member Pogue, to Accept and File the Treasurer's Report for the month of July 2026
Motion carried by the following roll call vote:

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

Absent: None
Abstain: None

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 City Manager Martinez gave staff report
Council had no questions
Mayor Jernigan opened public comment at 6:38 pm
No Public Comment
Mayor Jernigan closed public comment at 6:38 pm
Council Member McCorkle made a motion, seconded by Council Member Ford, to adopt 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
Motion carried by the following roll call vote:

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

Absent: None
Abstain: None

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 City Manager Martinez gave staff report
Council had no questions
Mayor Jernigan opened public comment at 6:41 pm
No Public Comment
Mayor Jernigan closed public comment at 6:41 pm
Council Member McCorkle made a motion, seconded by Council Member Pogue, to adopt 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
Motion carried by the following roll call vote:

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

Absent: None

Abstain: None

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." City Manager Martinez and Senior Code Enforcement Officer Bernie Hatz gave staff report Council asked questions and discussion ensued.

Mayor Jernigan opened public comment at 6:50 pm
Jared Johnston asked about enforcement of this ordinance and who would be responsible Mayor Jernigan closed public comment at 6:53 pm
Council Member McCorkle made a motion, seconded by Vice Mayor Campbell, to 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."
Motion carried by the following roll call vote:

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

Absent: None
Abstain: None
CITY ATTORNEY REPORT given by City John Pinkney
CITY CLERK REPORT – given by City Clerk Candace Clark
CITY MANAGER REPORT – given by City Manager Patrick Martinez

COUNCIL REQUESTS
Council Member Ford
• No Requests
Council Member McCorkle
• Asked staff to email the City of Needles “Live” promotional video • Asked about Golf Course seeding and requested staff clean up overgrown vegetation Vice Mayor Campbell
• Thanked city crews for city wide cleanup despite the extreme heat • Offered condolences to the Hernandez family
Council Member Pogue
• No Requests
Council Member Belt
• No Requests
Council Member Longbrake
• Reported that one light in the dog park is out and another one is flickering Mayor Jernigan
• Offered condolences to the Hernandez family
• Urged everyone to exercise caution tomorrow when driving around the school – it is the first day of school ADJOURNMENT – Mayor Jernigan adjourned the meeting at 7:13 PM ________________________________________ ________________________________________ Mayor Janet Jernigan City Clerk Candace Clark

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Approve filing of a claim for Local Transportation Fund (LTF) and State Transit Assistance (STA) Funds for the fiscal year 2026-2027
Background: Staff is seeking approval to file a claim for LTF and STA for funding of the Needles Area Transit, Senior Dial-a-Ride Specialized Transportation, and DAR Fort Mohave/ Bullhead Shuttle programs for the 2026-2027 fiscal year. The claim includes operational and administrative expenses and the city's share of cost to participate in a transit performance reporting system. Council approval of the claim is required before submittal to the San Bernardino County Transportation Authority (SBCTA).

Fiscal Impact: $339,386 in LTF operations; $72,674 in STA operations; and $221,737 in STA capital. There is no financial impact to the general fund.

Recommendation: Approve filing of a claim for Local Transportation Fund (LTF) and State Transit Assistance (STA) Funds for the fiscal year 2026-2027.

Submitted By: Cheryl Sallis, Community Services Manager City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026
9/3/2026

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: League of California Cities 2026 Annual Conference Resolution No. 1 - City Position and Voting Delegate Direction
Background: On March 10, 2026, at the Regular City Council meeting, Vice Mayor Campbell was appointed as the voting delegate, and Mayor Jernigan as the voting alternate, for the upcoming League of California Cities Annual Conference. The Conference is being held at the Anaheim Convention Center, Wednesday, September 23 through Friday, September 25, 2026. Voting takes place during General Assembly, which is scheduled for Friday, September 25, 2026.

Resolution No. 1, submitted by the City of Murrieta and supported by letters of concurrence from six cities and two city officials, calls for Cal Cities to support development and advancement of a state constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use. The resolution would preserve the State's role in broad housing goals and in enforcing constitutional and civil rights, fair housing, building and lifesafety standards, and generally applicable environmental protections. It also asks Cal Cities to consider a statewide working group or committee to conduct legal, fiscal, and policy analyses, engage cities and stakeholders, and evaluate potential strategies, including preparation for the November 2030 General Election or another reasonable timeframe.

The resolution is scheduled for review by the Housing, Community, and Economic Development Policy Committee on September 17 and the Resolutions Committee on September 24. If both bodies disapprove or refer the resolution for further study, it will not proceed to the General Assembly. Cal Cities staff notes that the resolution does not prescribe a specific policy mechanism. City Council action on this item will establish the City's position and provide direction to the City's designated voting delegate if the resolution proceeds to the General Assembly.

Fiscal Impact: No direct fiscal impact is anticipated from establishing a City position. Cal Cities' staff analysis states that the resolution itself would not have a significant direct fiscal impact; however, future actions resulting from the resolution could involve significant costs.

Recommendation: Discuss Resolution No. 1, determine the City's position, and direct the City's designated voting delegate to cast the City's vote consistent with City Council direction if the resolution proceeds to the Cal Cities General Assembly on September 25, 2026.

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

Other Department Approval (when required): Date:
9/3/2026

2025-2026

CAL CITIES OFFICERS
President
Gabe Quinto
Mayor
El Cerrito
First Vice President
Teresa Acosta
Council Member
Carlsbad
Second Vice President
David Cohen
Council Member
San Jose
Immediate Past President
Lynne B. Kennedy
Mayor Pro Tem,
Rancho Cucamonga
Executive Director
and CEO
Carolyn M. Coleman
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org August 10, 2026
TO: Cal Cities Members
RE: Cal Cities 2026 Resolution Packet
Sixty days before the Cal Cities Annual Conference and Expo, Cal Cities members may submit resolutions on issues of importance to cities. This year, Cal Cities received one resolution by the July 25 deadline.

The attached packet contains the proposed resolution, background information, supporting letters from cities and city officials, and an analysis of the resolution by Cal Cities. The packet includes detailed information on the resolution process and the next steps for the resolution.

We encourage each city council to consider the resolution and determine a position so your voting delegate can represent your city’s position on the resolution.

Voting Delegates: City councils must appoint a voting delegate to vote during the General Assembly. Each city may also appoint up to two alternate delegates. If your city has not already done so, please appoint your voting delegate by Tuesday, Sept. 1, 2026. The voting delegate packet contains more information.

The 2026 General Assembly will be held Friday, Sept. 25, at 8:30 a.m. in the Anaheim Convention Center during the Annual Conference and Expo.

For questions about resolutions, voting delegates, or the General Assembly, please contact Zach Seals.

2026
Resolution
Packet

2026 Resolution Packet
Information on 2026 Resolutions Process
Consideration by Policy Committee (pre-conference)
Per the Cal Cities bylaws, Cal Cities President Gabe Quinto has referred the submitted resolution to the Housing, Community, and Economic Development Committee. The committee will meet on Thursday, Sept. 17, at 10 a.m. via Zoom to review the resolution and make a recommendation that will be sent to the Resolutions Committee. A public comment period will be held during the meeting. Register for the meeting here.

A list of recommendations the policy committee may make during its meeting is on page two of this packet.

Consideration by Resolutions Committee (during conference) On Thursday, Sept. 24, at 1:00 p.m. the Resolutions Committee will meet to review the resolution and the recommendation of the policy committee.

The Resolutions Committee consist of one representative from each of Cal Cities caucuses, departments, divisions, and policy committees, as well as up to ten additional appointments made by the Cal Cities President. A public comment period will be held during the meeting. Refer to the onsite conference program for the location.

A list of recommendations the Resolutions Committee may make during its meeting is on page two of this packet.

Consideration by the General Assembly (during conference) The General Assembly will convene on Friday, Sept. 25, at 8:30 a.m. to consider any resolutions the Resolutions Committee has forwarded. To vote during the General Assembly, voting delegates must have checked in at the voting delegate booth.

Conference attendees will receive materials for the General Assembly on the evening of Thursday, Sept. 24. For more information on voting and discussion procedures during the General Assembly, see page three of this packet.

Petitioned Resolutions (during conference)
The petitioned resolution is an alternate method to introduce policy proposals during the annual conference. To initiate a petitioned resolution, voting delegates from 10% of member cities must sign the petition. The resolution and signatures are due at least 24 hours before the beginning of the General Assembly. Voting delegates who have checked in at the voting delegate booth can receive more information on petitioned resolutions at the booth onsite. 1

2026 Resolution Packet
Policy Committee and Resolutions Committee Actions
The submitted resolution will be heard by the policy committee to which it was assigned, and the Resolutions Committee. The table below shows what recommendations these bodies may make on the resolution.

Policy Committee Actions Resolutions Committee Actions
Approve Approve
Disapprove* Disapprove*
No Action No Action
Amend and approve Amend and approve
Refer to appropriate policy committee
for further study*
Approve as amended
Refer as amended to appropriate
policy committee for further study*
Refer to appropriate policy committee
for further study*
Refer as amended to appropriate
policy committee for further study*
Approve with additional
amendment(s)
Additional amendments and refer to
appropriate policy committee for
further study*
*If a resolution is disapproved or referred for further study by all policy committees to which it is assigned and the Resolutions Committee, it will not proceed to the General Assembly. 2

2026 Resolution Packet
General Assembly Voting and Discussion Procedures
Discussion Procedures:

Discussion procedures during the General Assembly are guided by two calendars:
the Consent Calendar and the Regular Calendar. As seen below, resolutions are calendared by the recommendations they receive from policy committees and the Resolutions Committee.

For General Resolutions:

Policy Committee
Recommendation
Resolutions Committee
Recommendation Calendar
Approve Approve Consent Calendar
Approve Disapprove or refer Regular Calendar
Disapprove or refer Approve Regular Calendar
Disapprove or refer Disapprove or refer Does not proceed to General Assembly
For Petitioned Resolutions:

Policy Committee
Recommendation Resolutions Committee Action Calendar
N/A
Approve Regular Calendar
Disapprove or Refer Regular Calendar
Disqualified Does not proceed to General
Assembly
Items on the Consent Calendar will be presented as one motion during the General Assembly from the Resolutions Committee chair. Unless an item on the Consent Calendar is set aside by the majority of the General Assembly, a vote will be taken on the whole calendar. If an item is set aside, it will be opened for discussion, followed by a vote.

Items on the Regular Calendar will be presented individually by the Resolutions Committee chair. After a recommendation is presented by the Resolutions Committee chair, the resolution will be opened for discussion by the General Assembly. A vote will take place following discussion.

Voting Procedures:

Per Cal Cities Bylaws Article XII, Sec. 2, all votes will be conducted by voice vote first. If the presiding official cannot determine the outcome, a vote will be taken by an alternative method, typically a raise of voting cards by voting delegates. A roll call vote may be called for by delegates of ten percent or more of the General Assembly.
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2026 Resolution Packet
2026 Resolution

1. Resolution No. 1 submitted by City of Murrieta
• Letters of concurrence submitted by:
i. City of Banning;
ii. City of Calimesa;
iii. City of Canyon Lake;
iv. City of Moreno Valley;
v. City of Norco;
vi. City of Torrance;
vii. Crystal Ruiz, Mayor, City of San Jacinto;
viii. Jessica Alexander, Mayor, City of Temecula
• Referred to Housing, Community, and Economic Development Committee
• Policy Committee Recommendation:
• Resolutions Committee Recommendation:
4

2026 Resolution Packet
Resolution No. 1
Submitted by City of Murietta
5

2026 Resolution Packet

1. A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF CALIFORNIA CITIES

CALLING FOR A WORKING GROUP TO CONSIDER A STATE CONSTITUTIONAL

AMENDMENT OR OTHER FORM OF INITIATIVE TO ENSURE FINAL LOCAL AUTHORITY OVER

HOUSING AND LAND USE DECISIONS
Source: City of Murrieta
Concurrence of five or more cities/city officials
Cities/city officials: City of Banning; City of Calimesa; City of Canyon Lake; City of Moreno Valley; City of Norco; City of Torrance; Crystal Ruiz, Mayor, City of San Jacinto; Jessica Alexander, Mayor, City of Temecula
Referred to: Housing, Community, and Economic Development Policy Committee WHEREAS, California cities have historically been responsible for adopting general plans and zoning regulations, reviewing housing development proposals, and providing or coordinating the streets, water, wastewater, public safety, parks, transportation, and other infrastructure and services necessary to support responsible, environmentally sound, and well-planned residential growth; and
WHEREAS, the League of California Cities is dedicated to protecting and expanding local control for municipalities across the state to ensure their orderly growth and development; and
WHEREAS, the League of California Cities recognizes that local zoning is a primary function of cities and an essential component of home rule, and that a city’s general plan should guide its land use planning and strategic decision-making free from pre-emption by the state; and
WHEREAS, increasingly prescriptive statewide housing mandates and development approval requirements can override locally adopted plans, zoning standards, and public review procedures without adequately accounting for differences that exist in each unique jurisdiction in infrastructure capacity, water availability, wildfire and evacuation risks, environmental constraints, fiscal impacts, public service needs, and community priorities; and
WHEREAS, California’s housing goals can be more effectively advanced through state funding, streamlined environmental requirements, and voluntary partnerships that support housing production while preserving the authority of locally elected officials to determine how and where housing is best planned and approved; NOW, THEREFORE, BE IT RESOLVED, by the General Assembly of the League of California Cities, assembled during the Annual Conference in Anaheim, California, on September 25, 2026, that the League of California Cities support the development and advancement of a state constitutional amendment or other legislative, policy, or ballotbased strategies that restore and strengthen local authority over housing and land use matters within municipal boundaries, including general plans, housing elements, zoning, density, design and development standards, project siting, and the approval or denial of housing development applications; and
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2026 Resolution Packet
BE IT FURTHER RESOLVED, that any constitutional amendment or alternative strategy should preserve the State’s authority to establish broad statewide housing goals and enforce constitutional and civil rights, fair housing requirements, building and life-safety standards, and generally applicable environmental protections, while protecting cities from state actions that compel, through funding conditions or state law, the approval of housing developments that are inconsistent with locally adopted requirements; override local zoning or density standards; or invalidate locally adopted housing or land use decisions when a city has planned in good faith to accommodate its regional housing needs allocation and maintains adequate capacity for housing at all income levels; and BE IT FURTHER RESOLVED, that the League of California Cities consider establishing a statewide working group or other appropriate committee(s) to evaluate and develop a proposed constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use matters including but limited to: conducting appropriate legal, fiscal, and policy analyses; engaging cities and other stakeholders; and building a statewide coalition of proponent supporters in preparation for; the November 2030 General Election, or within another reasonable time frame as determined by the working group.
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2026 Resolution Packet
Resolution No. 1: Background
Information
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2026 Resolution Packet
Background Information for Resolution
Source: City of Murrieta
Background:

California cities are responsible for planning residential growth, adopting general plans and zoning regulations, reviewing development proposals, and providing or coordinating the infrastructure and public services necessary to support new housing. Since 2010, the State has enacted more than 500 housing-related laws that have increasingly shifted housing and land use authority away from local governments. These laws have expanded by-right development, limited locally adopted standards and review processes, and established enforcement mechanisms, including the builder’s remedy, that may override local plans and zoning. Although these measures are frequently presented as solutions to housing affordability, many increase development capacity or restrict local review without delivering the meaningful production of housing needed to address the housing crisis.

At the same time, the State has continued to prioritize increased development capacity without adequately accounting for the infrastructure, public services, economic realities, and safety measures necessary to support housing growth.

State mandates often fail to reflect local conditions, including roadway and utility capacity, water availability, wildfire exposure, environmental limitations, fiscal impacts, and the availability of essential services. Cities are consequently required to accommodate additional housing while receiving no funding or assistance to address the resulting infrastructure and service demands.

Local elected officials are directly accountable to the residents who experience the effects of development decisions and are responsible for balancing housing production with infrastructure capacity, public safety, environmental protection, fiscal sustainability, and community needs. Cities of all types in California have been grappling with this dynamic, ranging from urban to rural, coastal to inland, small to large, northern to southern, voicing concerns to legislative representatives with minimal responsiveness. This is an issue of statewide concern that needs the strength and diversity of the League of California Cities to pursue a long-term solution.

The proposed resolution directs the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions. The working group would be tasked with developing a more balanced framework that preserves the State’s role in establishing broad housing goals and enforcing constitutional, civil rights, fair housing, building, life-safety, and environmental requirements, while restoring meaningful local authority to allow cities to determine how statewide housing 9

2026 Resolution Packet
objectives should be implemented in a manner that reflects local conditions and community priorities while continuing to support responsible housing production.

As the primary statewide organization representing California cities, the League is uniquely positioned to lead this effort. Its established policy, legal, legislative, communications, and advocacy networks enable it to convene municipalities, evaluate potential strategies, conduct legal and fiscal analyses, build consensus, engage stakeholders, and coordinate with statewide decision-makers. League leadership would help ensure that any recommendation reflects the collective interests of California municipalities and would provide the credibility, organizational capacity, and statewide reach necessary to advance a viable strategy.
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2026 Resolution Packet
Resolution No. 1: Letters of
Concurrence
11

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July 23, 2026
President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority Dear President Quinto,
The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and

25. The resolution would direct the League to convene a working group to evaluate potential approaches for addressing the increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of Canyon Lake, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,
Arron Brown
City Manager
City of Canyon Lake
14

July 23, 2026
President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority Dear President Quinto,
The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and 25. The resolution would direct the League to convene a working group to evaluate potential approaches to address increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of Moreno Valley, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,
Brian Mohan
City Manager
City of Moreno Valley

15

July 22, 2026
President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority
Dear President Quinto,
The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and 25. The resolution would direct the League to convene a working group to evaluate potential approaches for addressing the increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of the Norco, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,
Kevin Bash
City Council Member
(951) 768-8981
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July 23, 2026
Mr. Gabe Quinto, President
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for the City of Murrieta's Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority Dear President Quinto:

I am writing in my individual capacity as Mayor of the City of Temecula to express my strong support for the City of Murrieta's proposed resolution for consideration by the General Assembly of the League of California Cities at the 2026 Annual Conference.

The proposed resolution presents an important opportunity to thoughtfully evaluate the appropriate balance between California's statewide housing objectives and the constitutional principle of local governance. Establishing a statewide working group to examine a potential constitutional amendment, legislative reforms, or other policy initiatives will provide a meaningful forum to assess how local authority over housing and land use decisions can be strengthened while continuing to address the State's housing challenges.

Cities are uniquely positioned to understand the needs, opportunities, and constraints of their communities. Local elected officials are accountable to the residents they serve and are best equipped to make land use decisions that reflect a community's character, infrastructure capacity, economic development goals, environmental stewardship, and long-term vision. Equally important, local governments bear the primary responsibility for protecting public safety. Decisions regarding housing density, transportation, emergency access, wildfire preparedness, evacuation routes, police and fire service capacity, water availability, and critical infrastructure are inherently local matters that require the knowledge and judgment of those who serve their communities every day.

While the State has an important role in addressing California's housing needs, a collaborative approach that respects local expertise and preserves meaningful local discretion will produce stronger, safer, and more sustainable communities. The proposed working group offers an opportunity to evaluate policies that achieve these shared objectives while restoring an appropriate balance between state direction and local authority.
21

Mr. Gabe Quinto, President
League of California Cities
July 23, 2026

Although this letter reflects my personal position and is not an official action or policy of the City of Temecula or the Temecula City Council, I respectfully endorse the City of Murrieta's submission of this resolution and encourage its favorable consideration by the League of California Cities General Assembly.

Thank you for your leadership and your thoughtful consideration of this important issue.

Respectfully,
Jessica Alexander
Mayor, City of Temecula
Signing in her individual capacity
and not on behalf of the City of Temecula
or the Temecula City Council.
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2026 Resolution Packet
Resolution No. 1: Staff Analysis
23

League of California Cities Staff Analysis on Resolution No. 1 Staff: Brady Guertin, Legislative Advocate
Committee: Housing, Community, and Economic Development Summary:

Resolution No.1 states that the League of California Cities (Cal Cities) will:

1. Support the development and advancement of a state constitutional amendment or legislative, policy, or ballot-based strategy that restores and strengthens local authority over housing and land use matters, including general plans, housing elements, zoning, density, design and development standards, project siting, and the approval or denial of housing development applications.

Pursuant to the resolution, the strategy should preserve the state’s authority to set broad, statewide housing goals and enforce civil rights, fair housing, building safety, and environmental standards while protecting local control by preventing the state from compelling the approval of developments that conflict with local requirements, override local zoning or density standards, or overturn local land use decisions where a city has planned for and maintained sufficient capacity to meet its housing obligations.

2. Consider establishing a statewide working group or other appropriate committee(s) to evaluate and develop a proposed constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use matters.

The resolution states: “conducting legal, fiscal, and policy analyses; engaging cities and other stakeholders; and building a statewide coalition of proponent supporters in preparation for the November 2030 General Election, or within another reasonable time period.” Background:

As provided in the background information, the city of Murrieta is sponsoring this resolution in response to concerns over state laws that have increasingly reduced city discretion over housing and land use decisions, including legislation that requires ministerial or by-right approvals for housing projects, limits the application of local development standards, and strengthens state enforcement mechanisms against local governments.

Additionally, the city of Murrieta, in its background information, maintains that these legislative efforts have not resulted in sufficient housing production to address California's housing shortage and have not adequately accounted for 24

local infrastructure, public service needs, public safety, market, and fiscal considerations.

The resolution states that California’s housing goals are better advanced through state funding, streamlined environmental requirements, and voluntary partnerships, while preserving local authority over how and where housing is best planned and approved.

Consideration of the resolution may be informed by a brief examination of how the California Constitution allocates authority between the state and cities with respect to land use decisions.

The constitution grants cities the power to adopt local laws to protect the public’s health, safety, and welfare. This grant is called the “police power,” which is the basis for local land use regulation. The constitution grants charter cities the additional power to adopt local laws affecting “municipal affairs.” This power, commonly referred to as “home rule,” is based on the principle that a city, rather than the state, is in the best position to identify and satisfy the needs of the local community.

The constitution’s broad grant of police power contains a significant limitation.

Local law adopted under the police power is not valid if it “conflicts” with state law. A local law “conflicts” with state law when it regulates the same “field” in which the Legislature has stated its intent to occupy. In that case, state law is said to “preempt” the local law and it cannot be enforced.

An ordinance adopted by a charter city under the municipal affairs power cannot be enforced if it affects a “matter of statewide concern.” The subjects that have been identified as “matters of statewide concern” have changed over the years due to economic, social, and political circumstances.

Since the 1960s, the state has enacted numerous laws that limit or preempt aspects of local land use and zoning authority. These laws include the Fair Employment and Housing Act, Housing Element Law, Housing Accountability Act, Density Bonus Law, Permit Streamlining Act, accessory dwelling unit laws, California Environmental Quality Act, and others. In recent years, the state has enacted several laws that Cal Cities was the leading opposition force against, as many of the proposals pre-empted local land use authority, limited public review, and constrained local flexibility. In support of its housing and land use legislation, the Legislature has cited a statewide housing crisis and the need for increased housing production at all income levels while asserting that a uniform approach to local land use decision-making is required. 25

Discussion:

The resolution does not prescribe a specific policy mechanism. The eight letters in support recommend creating a working group or committee to evaluate potential approaches, including legislative proposals, constitutional amendments, or ballot initiatives to strengthen local authority over housing and land use matters.

A discussion of a strategy to restore and strengthen local authority over housing and land use matters will need to consider the California Constitution’s framework for both preemption of police power enactments and municipal affairs, discussed above. It will also need to determine whether changes to the California Constitution will be proposed, and whether they constitute an amendment or a revision, which require different processes.

A constitutional revision is a multistep process blending legislative consensus, voter support, and on occasion, a constitutional convention. It requires significant public engagement.

A constitutional amendment would require a ballot initiative, which includes gathering enough valid signatures to qualify for the ballot, building large coalitions to support election efforts, and campaigning to voters to support the initiative. This process can involve significant costs. In the last major election for ballot initiatives in 2024, proponents spent $8-$18 million to qualify for the ballot and spent nearly $700 million for the full election cycle, averaging out to about $100 million per ballot initiative.

Cal Cities has been engaged in ballot advocacy for over 20 years. In the early 2000s, Cal Cities developed a ballot advocacy infrastructure that included forming an issue political action committee, fundraising, establishing a network of regional managers, and building a coalition with other organizations to ultimately advocate on a ballot measure. Ballot advocacy requires the approval of the Board of Directors with a supermajority vote.

In the Legislature, Cal Cities plays an active and influential role to ensure that local flexibility and autonomy in the land use and housing space is maintained by engaging on dozens of bills every legislative session to ensure that cities' voices are heard at the state Capitol. Below, you will find Cal Cities “Existing Policy” on local control, housing, and land use policies.

Fiscal Impact
The resolution itself would not have a significant direct fiscal impact. However, depending on what actions follow, the fiscal costs could be significant. 26

Existing Cal Cities Policy
Vision
To be recognized and respected as the leading advocate for the common interests of California's cities.

Mission Statement
To expand and protect local control for cities through education and advocacy to enhance the quality of life for all Californians.

We Believe
• Local self-governance is the cornerstone of democracy. • Our strength lies in the unity of our diverse communities of interest. • In the involvement of all stakeholders in establishing goals and in solving problems.
• In conducting the business of government with transparency, openness, respect, and civility.
• The spirit of honest public service is what builds communities. • Open decision-making that is of the highest ethical standards honors the public trust.
• Cities are vital to the strength of the California economy. • The vitality of cities is dependent upon their fiscal stability and local autonomy.
• The active participation of all city officials increases the League's effectiveness.
• Partnerships and collaborations are essential elements of focused advocacy and lobbying.
• Ethical and well-informed city officials are essential for responsive, visionary leadership and effective and efficient city operations.

Zoning
Cal Cities believes local zoning is a primary function of cities and is an essential component of home rule. The process of adoption, implementation and enforcement of zoning ordinances should be open and fair to the public and enhance the responsiveness of local decision-makers. State policy should leave local siting and use decisions to the city and not interfere with local prerogative beyond providing a constitutionally valid procedure for adopting local regulations. State agency siting of facilities, including campuses and office buildings, should be subject to local notice and hearing requirements in order to meet concerns of the local community. Cal Cities opposes legislation that seeks to limit local authority over parking requirements.

Housing Element
Housing issues should be addressed in the general plan as other planning issues are. The housing element should be prepared for the benefit of local 27

governments and should have equal status with the other elements of the general plan.

Encourage Full Community Participation
Foster an open and inclusive community dialogue and promote alliances and partnerships to meet community needs.

Well-Planned New Growth
Recognize and preserve open space, watersheds, environmental habitats, and agricultural lands, while accommodating new growth in compact forms, in a manner that:
• De-emphasizes automobile dependency;
• Integrates the new growth into existing communities;
• Creates a diversity of affordable housing near employment centers; • Provides job opportunities for people of all ages and income levels.

Support:

The following letters of concurrence were received:

City of Banning
City of Calimesa
City of Canyon Lake
City of Moreno Valley
City of Norco
City of Torrance
Crystal Ruiz, Mayor, City of San Jacinto
Jessica Alexander, Mayor, City of Temecula
28

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Accept 2027 Employee Benefits plan for Medical, Dental and Vision Background: The City of Needles received its 2027 employee benefits renewal from Alliant Insurance Services. The overall renewal is estimated to increase 9.6%, or $113,679 annually. Medical coverage through SDRMA Blue Shield PPO Gold and Silver will increase 10.6%, with rates guaranteed through December 31, 2027. Delta Dental PPO will increase approximately

3.1%, with rates guaranteed through December 31, 2027. VSP Vision will decrease 19.5%, with rates guaranteed through December 31, 2028. Mutual of Omaha Basic Life/AD&D, Short-Term Disability, and Long-Term Disability rates will remain unchanged through December 31, 2028. The City and its two bargaining units mutually agreed to share equally (50%) any increase in health, dental and vision insurance premiums commencing on or after July 1, 2013.

Fiscal Impact: Total annual premiums are projected to increase from $1,180,207 to $1,293,886, an increase of $113,679, or 9.6%. Medical premiums account for the majority of the increase:

Blue Shield PPO Gold increases by $91,662 annually and Blue Shield PPO Silver increases by $22,792 annually. Delta Dental increases by $1,228 annually, while VSP Vision decreases by $2,002 annually. Mutual of Omaha life and disability premiums remain unchanged. The City’s share of applicable health, dental and vision premium increases will be allocated in accordance with the existing 50/50 cost-sharing agreement with the bargaining units.

Recommendation: Accept 2027 Employee Benefits plan for Medical, Dental and Vision Submitted By: Pam Osteen, HR Analyst
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026
9/3/2026

2027
Financial
Summary
Overview
Program Overview
 City of Needles – overall renewal came in at an estimated annual increase of 9.6% or $113,679

MEDICAL
Overall, PRISM and SDRMA programs saw the following factors drive the 2027 renewal:
• Continued growth in catastrophic claims activity - 22 claims over $1M • Continued increases in healthcare utilization, including growth in chronic conditions, behavioral health services, and demand for healthcare access. • Escalating provider costs and market dynamics. Healthcare systems continue to experience elevated labor, operational, and supply costs. Provider contract negotiations are producing annual cost increases ranging from 7% to 12%.
• Rising prescription drug costs and expanded use of specialty medications. Specialty pharmaceuticals now represent more than 50% of total pharmacy expenditures and continue to be one of the fastest-growing healthcare cost drivers. • Significant increases in GLP-1 medication utilization for both diabetes and weight management indications.
• Increased utilization of advanced medical technologies and high-cost treatments, including oncology therapies, transplant services, and emerging gene therapies. • Ongoing regulatory and legislative changes continue to expand coverage requirements and increase healthcare costs.

6 2027 Financial Overview
Line of Coverage EE
Count
Current Renewal %∆ $∆ Rate Guarantee
SDRMA - Blue Shield PPO (GOLD) 30 $864,533 $956,194 10.6% $91,662 1/1/2027 - 12/31/2027 SDRMA - Blue Shield PPO (SILVER) 10 $214,977 $237,769 10.6% $22,792 1/1/2027 - 12/31/2027 Delta Dental PPO (PRISM) 45 $39,686 $40,914 3.1% $1,228 1/1/2027 - 12/31/2027 VSP Vision 44 $10,248 $8,246 -19.5% -$2,002 1/1/2027 - 12/31/2028 Mutual of Omaha Basic Life / AD&D 56 $28,121 $28,121 0.0% $0 1/1/2027 - 12/31/2028 Mutual of Omaha STD 17 $3,389 $3,389 0.0% $0 1/1/2027 - 12/31/2028 Mutual of Omaha LTD 56 $19,253 $19,253 0.0% $0 1/1/2027 - 12/31/2028 TOTAL ANNUAL PREMIUM $1,180,207 $1,293,886 9.6% $113,679 This summary is for informational purpose only.  It does not amend, extend, or alter the current policy in any way.  In the event information in this summary differs from the Plan  Document, the Plan Document will prevail.

Alliant Insurance Services
Medical 10 –Yr Renewal History
*includes plan change removing non-diabetic GLP-1s

11 20
Renewal Overview – Medical PPO
Medical Plan Benefits SDRMA - Blue Shield PPO (GOLD) SDRMA - Blue Shield PPO (SILVER) Current / Renewal Current / Renewal

MEDICAL BENEFITS IN-NETWORK OUT-OF-NETWORK IN-NETWORK OUT-OF-NETWORK Calendar Year Deductible
Individual / Family $500 / $1,000 $2,000 / $4,000
Annual Out-of-Pocket Maximum
Individual / Family $2,000 / $4,000 $5,000 / $10,000
Physician Office Visit $20 (ded waived) 50% $30 (ded waived) 50% Specialist Visit $20 (ded waived) 50% $30 (ded waived) 50% Preventative Care No Charge (ded waived) Not Covered No Charge (ded waived) Not Covered Lab & X-Ray $0 (ded waived) ($25 +
20% if at Hospital)
50% (up to $350/day in
Hospital)

Advanced Imaging- CT, MRI, PET scans 20% ($100 + 20% if at Hospital) 50% (limit $800/day) 20% ($100 + 20% if at
Hospital) 50% (limit $800/day)
Urgent Care Services $20 (ded waived) 50% $30 (ded waived) 50% Emergency Room $100 + 20%
(Copay waived if admitted)
$100 + 20%
(Copay waived if admitted)

Inpatient Hospitalization 20% 50%(limit $600/ day) 20% 50%(limit $600/ day) Outpatient Hospitalization ASC: 10% (ded waived)
Hospital: 20% 50% (limit $350/day) ASC: 10% (ded waived)Hospital: 20% 50% (limit $350/day) Chiropractic Care 20% (limit $50 / visit) 50% (limit $25 / visit) 20% (limit $50 / visit) 50% (limit $25 / visit) Visits per Calendar Year (26 visits/yr combined w/ Acupuncture) (26 visits/yr combined w/ Acupuncture) Acupuncture Care 20% 20%
Visits per Calendar Year (26 visits/year combined w/Chiro) (26 visits/year combined w/ Chiro)

PRESCRIPTION DRUGS
Prescrition Deductible None $200 / $500
Prescription Out-of-Pocket Maximum $4,600 / $9,200 $1,600 / $3,200 Pharmacy Tier Structure Generic / Brand / Non-Formulary Generic / Brand / Non-Formulary Retail Cost $5 / $30 / $45 $10 / $20 / $45
Supply Limit 30 days supply 30 days supply
Mail Order Cost $10 / $75 / $112.50 $20 / $40 / $90
Supply Limit 90 day supply 90 day supply
Specialty Medication Cost 30% up to $150 30% up to $150 Specialty Medication Cost (Mail) 30% up to $300 30% up to $300 RATE GUARANTEE 12
(1/1/2026 - 12/31/2026)
12 (1/1/2027 - 12/31/2027)
12 (1/1/2026 - 12/31/2026)
12 (1/1/2027 - 12/31/2027)
MONTHLY RATES EE Current Renewal EE Current Renewal
EE Only 10 $1,263.81 $1,397.71 2 $913.61 $1,010.43
EE + 1 8 $2,517.32 $2,784.09 5 $1,806.62 $1,998.20
EE + Family 12 $3,272.31 $3,619.42 3 $2,351.49 $2,600.75 MONTHLY PREMIUM 30 $72,044 $79,683 10 $17,915 $19,814
ANNUAL PREMIUM $864,533 $956,194 $214,977 $237,769
ANNUAL DOLLAR CHANGE $91,662 $22,792
ANNUAL PERCENT CHANGE 10.6% 10.6%
Enrollment as of April 2026 (Actives only)
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.
50% (up to $350/day in
Hospital)
$0 (ded waived) ($25 +
20% if at Hospital)

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: City Council Resolution 2026-41 Approving a Second Amendment to the Lease Agreement with News West Publishing, Inc. doing business as the Needles Desert Star, for Office Space at 950 Front Street, Suite A-25
Background: The City of Needles and News West Publishing Company, Inc., doing business as the Needles Desert Star, entered into a lease dated April 1, 2020 for enclosed office space at 950 Front Street, Suite A-25. The premises are used for the newspaper’s business and meetings. The lease requires monthly rent of $300 and an additional $30 per month for electricity.

A First Amendment dated June 9, 2023 extended the lease from July 1, 2023 through June 30, 2026. The parties now desire to extend the lease for an additional three-year term. The proposed Second Amendment retains either party’s right to terminate the lease upon thirty (30) days’ written notice.

The Second Amendment also provides that California law governs the lease and establishes San Bernardino County as the exclusive venue for related proceedings. It further gives the notice required by California Revenue and Taxation Code section 107.6 that the lease may create a taxable possessory interest and makes the Desert Star responsible for applicable possessory-interest taxes, assessments, penalties, and interest. All other lease terms remain unchanged.

Fiscal Impact: $330 per month, consisting of $300 in rent and $30 for electricity, for total annual revenue of $3,960. The tenant is responsible for any applicable possessory-interest taxes and related assessments under the proposed amendment.

Recommendation: Adopt Resolution No. 2026-41 approving the Second Amendment to the Lease Agreement with News West Publishing Company, Inc., doing business as the Needles Desert Star, for office space at 950 Front Street, Suite A-25, and authorize the Mayor to execute the Second Amendment on behalf of the City.

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

Other Department Approval (when required): Date:
9/3/2026
9/3/2026

RESOLUTION NO. 2026-41

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

APPROVING A SECOND AMENDMENT TO THE LEASE AGREEMENT WITH NEWS WEST PUBLISHING COMPANY, INC., DOING BUSINESS AS THE NEEDLES DESERT STAR, FOR OFFICE SPACE AT 950 FRONT STREET, SUITE A-25
WHEREAS, the City of Needles (“Lessor”) and News West Publishing Company, Inc., an Arizona corporation doing business as the Needles Desert Star (“Lessee”), entered into a Lease Agreement dated April 1, 2020 for office space located at 950 Front Street, Suite A-25, Needles, California; and WHEREAS, the Lease provides for monthly rent of Three Hundred Dollars ($300), plus Thirty Dollars ($30) per month for electricity; and
WHEREAS, the parties entered into a First Amendment to Lease Agreement dated June 9, 2023, extending the lease term from July 1, 2023 through June 30, 2026; and WHEREAS, the parties desire to extend the Lease for an additional three-year term while retaining either party’s right to terminate the Lease upon thirty (30) days’ written notice; and WHEREAS, the proposed Second Amendment provides that California law governs the Lease and that any action or proceeding arising from the Lease shall be brought in the state or federal courts located in San Bernardino County, California; and
WHEREAS, the proposed Second Amendment provides the notice required by California Revenue and Taxation Code section 107.6 concerning a potential taxable possessory interest and assigns responsibility to Lessee for applicable possessory-interest taxes and related assessments; and WHEREAS, except as expressly modified by the proposed Second Amendment, all terms and conditions of the Lease, as amended by the First Amendment, will remain in full force and effect.

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

SECTION 1. The foregoing recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The City Council hereby approves the Second Amendment to Lease Agreement with News West Publishing Company, Inc., doing business as the Needles Desert Star, substantially in the form presented to the City Council and attached hereto as Exhibit “A.”
SECTION 3. The Mayor is authorized to execute the Second Amendment on behalf of the City of Needles, and the City Manager is authorized to take all actions reasonably necessary to implement and administer the Second Amendment.

SECTION 4. This Resolution shall take effect immediately upon its adoption.

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

1 SECOND AMENDMENT TO LEASE AGREEMENT
THIS SECOND AMENDMENT TO LEASE AGREEMENT ("Amendment") effective as of September 8, 2026, is entered into by and between the CITY OF NEEDLES, a Charter City ("Lessor"), and NEWS WEST PUBLISHING COMPANY, INC., an Arizona corporation doing business as the NEEDLES DESERT STAR ("Lessee").

WITNESSETH:

A. Lessor and Lessee entered into that certain Lease Agreement dated April 1, 2020 ("Lease"), concerning the premises located at 950 Front Street, Suite A-25, Needles, California.

B. Lessor and Lessee entered into that certain First Amendment to Lease Agreement dated June 9, 2023 ("First Amendment"), which extended the term of the Lease through June 30, 2026.

C. Following June 30, 2026, Lessee remained in continuous possession of the Premises, continued paying rent, and Lessor accepted such rent. The parties acknowledge that the tenancy continued under the terms and conditions of the Lease, as amended by the First Amendment.

D. Lessor and Lessee desire to extend the term of the Lease for an additional three years.

E. Because the Premises is publicly owned and leased to a private party, Lessee’s leasehold or other property interest created by the Lease may constitute a possessory interest subject to property taxation under California law. Lessor and Lessee therefore desire to provide the notice required by California Revenue and Taxation Code section 107.6 and to clarify Lessee’s responsibility for taxes and assessments levied upon Lessee’s possessory interest in the Premises.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, Lessor and Lessee agree as follows:

1. Term. The parties acknowledge and confirm Lessee’s continuous occupancy of the Premises and the parties’ performance under the Lease from July 1, 2026, through September 7, 2026.

Effective September 8, 2026, the term of the Lease is extended for an additional period of three years, ending at midnight on September 7, 2029 (“Term”). Notwithstanding the foregoing, either party may give the other party thirty (30) days' written notice of its intent to vacate or of the need for the other party to vacate the Premises, in which case the Lease will terminate upon expiration of the thirty-day notice period.

2 2. Governing Law and Venue. The Lease, as amended, shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflict-of-laws principles. Any action or proceeding arising out of or relating to the Lease, as amended, shall be brought exclusively in the state or federal courts located in San Bernardino County, California.

Each party irrevocably submits to the jurisdiction of those courts and waives any objection based on venue or forum non conveniens.

3. The Lease is hereby amended by adding a new section 18, entitled “Possessory Interest Tax,” to read as follows:
“Possessory Interest Tax. Pursuant to California Revenue and Taxation Code section 107.6, Lessor hereby notifies Lessee that Lessee’s leasehold or other property interest created by this Lease may constitute a possessory interest subject to property taxation, and that Lessee, as the party in whom the possessory interest is vested, may be subject to the payment of property taxes levied upon that interest. Lessee acknowledges receipt of this notice and acknowledges its actual knowledge of the potential existence of a possessory interest tax.

Lessee shall be solely responsible for and shall timely pay all possessory interest taxes and any related supplemental assessments, escape assessments, fees, penalties, and interest levied or imposed upon Lessee’s leasehold, occupancy, use, improvements, personal property, or possessory interest in the Premises during or arising from the Term of the Lease, including any extension or renewal thereof.

Lessee shall pay all such taxes and assessments directly to the County of San Bernardino or other applicable taxing authority before delinquency and shall provide Lessor with evidence of payment within ten (10) days after Lessor’s written request. If any such tax or assessment is billed to, collected from, paid, or advanced by Lessor, Lessee shall reimburse Lessor for the actual amount paid, without administrative markup, within thirty (30) days after receipt of Lessor’s invoice and reasonable supporting documentation. Lessee shall also reimburse Lessor for any penalties and interest resulting from Lessee’s failure to timely pay an amount for which Lessee is responsible under this Section.

Nothing in this Section requires Lessee to pay any property tax or assessment imposed solely upon Lessor’s fee ownership of the Premises and unrelated to Lessee’s leasehold, occupancy, use, improvements, personal property, or possessory interest. Lessee’s obligations under this Section shall survive expiration or earlier termination of the Lease with respect to taxes and assessments attributable to Lessee’s possession, occupancy, or use of the Premises during the Term.”

3 4. Continuing Effect. Except as expressly amended by this Second Amendment, all terms and conditions of the Lease, as amended by the First Amendment, remain unchanged and in full force and effect. If there is any conflict between this Second Amendment and the Lease or First Amendment, this Second Amendment controls.
[SIGNATURES ON FOLLOWING PAGE]

4 IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the date first written above.

CITY OF NEEDLES
By: ________________________________
Its: ________________________________
Date: ______________________________
ATTEST:

By: ________________________________
Its: City Clerk
Date: ______________________________
APPROVED AS TO FORM:
__________________________________
John Pinkney, City Attorney
NEWS WEST PUBLISHING COMPANY, INC.

By: ________________________________
Its: ________________________________
Date: ______________________________

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: City Council Resolution 2026-40 Approving an Amendment to the Lease Agreement with TriState Alano Club of Needles, Inc. for the City-Owned Building at 801 Third Street Background: The Tri-State Alano Club of Needles, Inc., a nonprofit organization dedicated to community service, has leased the City-owned building at 801 Third Street since 1991 for Club business and meetings.

The current lease term extends through September 9, 2026 and permits either party to terminate the lease upon sixty (60) days’ written notice. The proposed amendment extends the lease through September 9, 2029 and retains the existing 60-day termination right.

The amendment also places responsibility on the Club, at its sole cost, to maintain, service, repair, and replace systems, fixtures, and equipment located in or exclusively serving the premises, including the HVAC system. The City will coordinate annual HVAC service and invoice the Club for the documented cost. Material work requires City coordination and approval. The amendment also provides notice of a potential taxable possessory interest and assigns responsibility for applicable taxes and assessments to the Club.

Fiscal Impact: $1 per year in lease revenue. The Club will reimburse the City for the actual documented cost of annual HVAC service and will be responsible for maintenance, repair, replacement, and applicable possessory interest taxes as provided in the amendment.

Recommendation: Adopt Resolution 2026-40 Approving the Amendment to Lease Agreement with Tri-State Alano Club of Needles, Inc. for the City-owned building at 801 Third Street, extending the term through September 9, 2029, and authorize the Mayor to execute the Amendment on behalf of the City.

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

Other Department Approval (when required): Date:
9/3/2026
9/3/2026

RESOLUTION NO. 2026-40

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA, APPROVING AN AMENDMENT TO THE LEASE AGREEMENT WITH TRI-STATE ALANO CLUB OF NEEDLES, INC. FOR THE CITY-OWNED BUILDING AT 801 THIRD STREET
WHEREAS, Tri-State Alano Club of Needles, Inc. (“Lessee”) has leased the City-owned building at 801 Third Street since 1991 for Club business and meetings; and
WHEREAS, the City of Needles (“Lessor”) and Lessee entered into a Lease Agreement dated July 11, 2017, which has been amended from time to time; and
WHEREAS, the most recent amendment extended the lease term through September 9, 2026 and retained either party’s right to terminate the lease upon sixty (60) days’ written notice; and WHEREAS, Lessor and Lessee desire to extend the lease term through September 9, 2029, while retaining the existing sixty (60)-day termination right; and
WHEREAS, the proposed Amendment clarifies and strengthens Lessee’s obligations, at its sole cost and expense, to maintain, service, repair, and replace the building systems, fixtures, and equipment located in or exclusively serving the premises, including the heating, ventilation, and air-conditioning system; and WHEREAS, the proposed Amendment requires annual professional HVAC inspection and service coordinated by the City and reimbursed by Lessee, establishes procedures for material repairs and replacements, and authorizes the City to recover actual documented costs if Lessee fails to perform its obligations; and WHEREAS, the proposed Amendment provides the notice required by California Revenue and Taxation Code section 107.6 concerning a potential taxable possessory interest and assigns responsibility to Lessee for applicable possessory interest taxes and related assessments.

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

SECTION 1. The foregoing recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The City Council hereby approves the Amendment to Lease Agreement with Tri-State Alano Club of Needles, Inc., substantially in the form presented to the City Council and attached hereto as Exhibit “A.” SECTION 3. The Mayor is authorized to execute the Amendment on behalf of the City of Needles, and the City Manager is authorized to take all actions reasonably necessary to implement and administer the Amendment.

SECTION 4. This Resolution shall take effect immediately upon its adoption.

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
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney

1 AMENDMENT TO LEASE AGREEMENT
THIS AMENDMENT TO LEASE AGREEMENT (“Amendment”) is entered into as of the 9th day of September 2026, by and between the CITY OF NEEDLES, a Charter City and Municipal Corporation, hereinafter called “Lessor”, and the TRI-STATE ALANO CLUB OF NEEDLES, INC., a California nonprofit public benefit corporation, hereinafter called “Lessee.”

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

B. The term of the Lease was subsequently extended through November 12, 2022, and Lessor and Lessee thereafter continued to recognize the pursuant to the AMENDMENT TO LEASE AGREEMENT dated June 13, 2023 and recognized the validity of the Lease
C. Lessor and Lessee subsequently entered into that certain AMENDMENT TO LEASE AGREEMENT dated June 13, 2023 (the “Amendment” and together with the Lease, hereafter the “Lease”), which further extended the term of the Lease through July 1, 2024.

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

E. Lessor and Lessee subsequently entered into that certain AMENDMENT TO LEASE AGREEMENT dated September 9, 2025 (“Amendment” and together with the Lease, the “Lease”), which extended the term of the Lease through September 9, 2026 and retained either party’s right to terminate the Lease upon sixty (60) days’ written notice.

F. Lessor and Lessee now desire to extend the term of the Lease through September 9, 2029, retain the existing sixty (60)-day termination right, and strengthen and clarify Lessee’s obligations to maintain, repair, and replace the building systems and equipment serving the Premises, including the heating, ventilation, and air-conditioning system.

G. Because the Premises is publicly owned and leased to a private party, Lessee’s leasehold or other property interest created by the Lease may constitute a possessory interest subject to property taxation under California law. Lessor and Lessee therefore desire to provide the notice required by California Revenue and Taxation Code section 107.6 and to clarify Lessee’s responsibility for taxes and assessments levied upon Lessee’s possessory interest in the Premises.

NOW THEREFORE, for and in consideration of the mutual promises, terms, covenants, conditions and Recitals contained herein, which Recitals are incorporated herein by reference, Lessor and Lessee hereby agree to amend the Lease as follows:

1. Section 3 of the Lease is hereby amended and restated in its entirety as follows:
“Term. The term of this Lease shall continue until the 9th day of September, 2029. (“Term”).

Notwithstanding the foregoing, either party may terminate the Lease upon sixty (60) days prior written notice to the other party, in which case the Lease shall terminate upon expiration of the sixty (60)-day notice period.

2. Section 10 of the Lease is hereby amended and restated in its entirety as follows:

2 “Condition; Maintenance, Repair, and Replacement.
a. Lessee shall, at its sole cost and expense, keep and maintain the Premises, and all building systems, fixtures, and equipment located in or exclusively serving the Premises, in good, safe, clean, sanitary, and operable condition and repair. Lessee’s obligations include all preventive maintenance, servicing, repairs, and replacements necessary to preserve the Premises and such systems, fixtures, and equipment, regardless of whether the need arises from age, deterioration, ordinary use, ordinary wear and tear, mechanical failure, or equipment failure. Lessee shall not commit or permit waste. Except for the HVAC obligations expressly assigned to Lessee below, Lessee shall not be responsible structural portions of the building, including the roof, foundation, and exterior walls, or for damage caused by fire or other casualty, except to the extent caused by the acts or omissions of Lessee or Lessee’s officers, employees, agents, contractors, invitees, or users.
b. Without limiting subsection (a), Lessee is financially responsible for all maintenance, servicing, repair, and replacement of the heating, ventilation, and air-conditioning system and related equipment exclusively serving the Premises (collectively, the “HVAC System”), including when repair or replacement is required because of age, deterioration, ordinary use, ordinary wear and tear, mechanical failure, or equipment failure.
c. The HVAC System shall be professionally inspected and serviced at least once each twelve (12)- month period. Lessor shall coordinate the annual service through the same qualified HVAC contractor or service provider used for City facilities. Lessor shall invoice Lessee for the actual, documented cost of the annual service, without administrative markup, and Lessee shall reimburse Lessor within thirty (30) days after receipt of the invoice. d. Lessee shall promptly notify Lessor of any condition requiring material repair or replacement. Any repair or replacement of the HVAC System, and any other material work affecting City-owned building systems, structural components, property, or equipment, must be coordinated with and approved in writing by Lessor before work begins, except for emergency measures reasonably necessary to protect persons or prevent imminent material property damage. Lessor shall not unreasonably withhold or delay approval of work that is required under this Section. Before work begins, Lessee shall submit to Lessor for approval the proposed scope of work, plans or specifications reasonably requested by Lessor, cost proposal, and identity and qualifications of the proposed contractor. Lessor may require that the work be performed or coordinated through a contractor selected or approved by Lessor. All work shall be performed in a good and workmanlike manner, in compliance with applicable laws and permit requirements, by properly licensed and insured contractors approved by Lessor. Lessee shall provide Lessor at least ten (10) days’ prior written notice before work begins, except in an emergency, so Lessor may post and record a notice of non-responsibility or take other protective measures. e. If Lessee fails to perform any maintenance, repair, replacement, or other obligation required by this Section, Lessor may provide written notice describing the failure and requiring Lessee to cure it within ten (10) days, or within a longer reasonable period stated in the notice if the work cannot reasonably be completed within ten (10) days, provided Lessee begins the cure within ten (10) days and diligently completes it. No cure period is required if the condition presents an emergency, an imminent threat to health or safety, or a risk of material damage to City property. If Lessee fails to timely cure, Lessor may, but is not obligated to, perform or arrange the required work. Lessee shall reimburse Lessor for the actual, reasonable, and documented costs incurred, without administrative markup, within thirty (30) days after receipt of Lessor’s invoice. Lessor’s exercise of this right does not waive any other right or remedy under this Lease or applicable law.”

3 3. The Lease is hereby amended by added a new section 18, entitled “Possessory Interest Tax,” to read as follows:
“Possessory Interest Tax. Pursuant to California Revenue and Taxation Code section 107.6, Lessor hereby notifies Lessee that Lessee’s leasehold or other property interest created by this Lease may constitute a possessory interest subject to property taxation, and that Lessee, as the party in whom the possessory interest is vested, may be subject to the payment of property taxes levied upon that interest.

Lessee acknowledges receipt of this notice and acknowledges its actual knowledge of the potential existence of a possessory interest tax.

Lessee shall be solely responsible for and shall timely pay all possessory interest taxes and any related supplemental assessments, escape assessments, fees, penalties, and interest levied or imposed upon Lessee’s leasehold, occupancy, use, improvements, personal property, or possessory interest in the Premises during or arising from the Term of the Lease, including any extension or renewal thereof.

Lessee shall pay all such taxes and assessments directly to the County of San Bernardino or other applicable taxing authority before delinquency and shall provide Lessor with evidence of payment within ten (10) days after Lessor’s written request. If any such tax or assessment is billed to, collected from, paid, or advanced by Lessor, Lessee shall reimburse Lessor for the actual amount paid, without administrative markup, within thirty (30) days after receipt of Lessor’s invoice and reasonable supporting documentation. Lessee shall also reimburse Lessor for any penalties and interest resulting from Lessee’s failure to timely pay an amount for which Lessee is responsible under this Section.

Nothing in this Section requires Lessee to pay any property tax or assessment imposed solely upon Lessor’s fee ownership of the Premises and unrelated to Lessee’s leasehold, occupancy, use, improvements, personal property, or possessory interest. Lessee’s obligations under this Section shall survive expiration or earlier termination of the Lease with respect to taxes and assessments attributable to Lessee’s possession, occupancy, or use of the Premises during the Term.” Except as expressly modified by this Amendment, all other terms and conditions of the Lease, as previously amended, shall remain in full force and effect. To the extent of any conflict between this Amendment and the Lease or any prior amendment thereto, this Amendment shall control. [SIGNATURES ON FOLLOWING PAGE]

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

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

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

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Consideration of Purest USA LLC’s appeal of the City Manager’s denial of Cannabis Business Regulatory License Application No. 2017-80 and adoption of a resolution either denying the appeal and upholding the City Manager’s decision or granting the appeal and setting aside the denial.

Background: On April 8, 2026, Purest USA LLC ("Purest") submitted an application for Cannabis Business Regulatory License No. 2017-80 for a cannabis business located at 250 Balboa Place, Needles, California. On April 17, 2026, the City Manager denied the application based on the eligibility requirements of Chapter 12A of the Needles Municipal Code, including Sections 12A-4(b)(16) and 12A-4(c)(7), and Purest's state cannabis licensing history. Purest timely appealed the City Manager's determination to the City Council.

Administrative Appeal and Council Determination: On July 22, 2026, the City Council conducted an administrative appeal hearing. Bernard Hatz, II, the City’s Senior Code Enforcement Officer, appeared on behalf of the City. Purest appeared through counsel, Arthur Hodge, Esq.. The Council considered the administrative record, documentary evidence, presentations and arguments of the parties, and other evidence properly before it.

The administrative record includes the California Department of Cannabis Control's February 25, 2025 Notice of Provisional License Revocation concerning Purest's provisional commercial cannabis distributor State License No. C11- 0000716-LIC. The revocation occurred within the three-year period preceding Purest's 2026 application.

Needles Municipal Code Section 12A-4(b)(16) requires the applicant to certify that, during the preceding three years, the applicant and specified persons associated with the applicant have not had a cannabis business license suspended or revoked by the City, the State, or another local agency. Section 12A-4(c)(7) provides grounds for denial when the applicable eligibility requirements are not satisfied.

The Council's determination is limited to Purest's application and appeal.

Alternative A - Resolution No. 2026-37 memorializes the City Council's determination following the administrative appeal hearing, denies Purest's appeal, and affirms the City Manager's denial of Cannabis Business Regulatory License No. 2017-80.

Alternative B - Resolution No. 2026-37 memorializes the City Council's determination following the administrative appeal hearing, grants Purest's appeal, and sets aside the City Manager's denial of Cannabis Business Regulatory License No. 2017-80.

Both versions of the Resolution further provide that the Council's action constitutes the City's final administrative determination and identify the time for judicial review under Code of Civil Procedure Section 1094.6. Pursuant to Needles Municipal Code section 12A-4(d)(2), not more than ninety (90) days following the conclusion of the hearing, the City Council shall issue a written decision as to whether the application shall be granted or denied. The written decision shall be served on the Owner(s) of the Cannabis Business, with a copy served on the City Manager or his/her designee Fiscal Impact: No direct fiscal impact is anticipated from adoption of the Resolution, other than staff and legal costs associated with the administrative appeal and any subsequent judicial review.

Recommendation: As stated at the appeal hearing, it was the recommendation of the Senior Code Enforcement Officer that the City Council (1) declare that the applicants, Mercedes Hand and John Schieder, Owners and Members of Purest USA LLC, do not qualify as applicants for a Regulatory Business License pursuant to the City’s determination -- NMC sections 12A-4(b)(16) and 12A-4(c)(7), and (2) direct staff to take all appropriate action, including but not limited to civil action, to enforce the prohibition of operation of a cannabis business in the City without a license. (Adoption of Alternative A).

Submitted By: City Attorney
City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026

1 ALTERNATIVE A

RESOLUTION NO. 2026-37

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEEDLES DENYING AN APPEAL BY PUREST USA LLC

AND THEREBY UPHOLDING THE CITY MANAGER'S DENIAL OF PUREST USA LLC'S APPLICATION FOR CANNABIS BUSINESS REGULATORY LICENSE NO. 2017-80
WHEREAS, Purest USA LLC ("Purest" or "Appellant") submitted an application to the City of Needles ("City") for Cannabis Business Regulatory License No. 2017-80 for a cannabis business located at 250 Balboa Place, Needles, California, pursuant to Chapter 12A of the Needles Municipal Code ("Municipal Code"); and WHEREAS, on April 17, 2026, the City denied Purest's application based on the eligibility requirements contained in Chapter 12A of the Municipal Code, including sections 12A-4(b)(16) and 12A-4(c)(7), and Purest's state licensing history; and
WHEREAS, Purest timely appealed the denial to the City Council; and WHEREAS, the City Council conducted an administrative appeal hearing on July 22, 2026, at which Purest appeared through counsel and the City appeared through staff, and the City Council received and considered the administrative record, documentary evidence, presentations and arguments of the parties, and all other evidence properly before it; and
WHEREAS, the administrative record contains a February 25, 2025 Notice of Provisional License Revocation issued by the California Department of Cannabis Control ("DCC") concerning Purest's provisional commercial cannabis distributor license, State License No. C11-0000716-LIC; and WHEREAS, the February 25, 2025 revocation occurred within three years preceding Purest's 2026 application for the City Cannabis Business Regulatory License; and
WHEREAS, the City Council's review is limited to whether the City properly denied the application under the Municipal Code and does not adjudicate the validity or merits of DCC's underlying revocation decision or make any finding concerning the individual licensing history of Purest's owners or managers; and WHEREAS, after considering the entire administrative record and the evidence and argument presented at the hearing, the City Council determined to deny the appeal and uphold the City Manager's denial of Purest's application.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1. The City Council, in exercising its independent judgment, finds and adopts the foregoing recitals as true and correct and incorporates them into this Resolution. Based on the administrative record and the evidence and argument presented at the appeal hearing, the City Council upholds the City Manager's decision and denies the appeal by Purest USA LLC.

A. Purest held provisional commercial cannabis distributor license State License No. C11-0000716- LIC, which DCC revoked on February 25, 2025.

B. The February 25, 2025 revocation occurred within the three-year period preceding Purest's 2026 application for Cannabis Business Regulatory License No. 2017-80.

C. Purest therefore did not satisfy the eligibility requirements relied upon by the City under Municipal Code sections 12A-4(b)(16) and 12A-4(c)(7) when the City acted on the application.

2 Section 2. The appeal of the City Manager's denial of Purest USA LLC's application for Cannabis Business Regulatory License No. 2017-80 is DENIED, and the City Manager's decision is AFFIRMED.

Section 3. The City Council hereby approves and upholds the denial of Purest USA LLC's application for Cannabis Business Regulatory License No. 2017-80.

Section 4. This Resolution constitutes the City Council's final administrative determination on the appeal presently before it.

Section 5. Judicial review of this decision is governed by California Code of Civil Procedure section 1094.6.

Any petition for writ of administrative mandate under Code of Civil Procedure section 1094.5 must be filed within the time prescribed by section 1094.6.

Section 6. Following adoption of this Resolution, the City Clerk shall serve a copy of the executed Resolution on Purest USA LLC, its Owner(s), and counsel for Purest USA LLC by first-class mail, with a copy served on the City Manager or his designee.

PASSED, APPROVED and ADOPTED this 8th day of September 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Mayor
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney

1 ALTERNATIVE B
RESOLUTION NO. 2026-37

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEEDLES GRANTING THE APPEAL BY PUREST USA

LLC AND THEREBY SETTING ASIDE THE CITY MANAGER'S DENIAL OF PUREST USA LLC'S APPLICATION FOR CANNABIS BUSINESS REGULATORY LICENSE NO. 2017-80
WHEREAS, Purest USA LLC ("Purest" or "Appellant") submitted an application to the City of Needles ("City") for Cannabis Business Regulatory License No. 2017-80 for a cannabis business located at 250 Balboa Place, Needles, California, pursuant to Chapter 12A of the Needles Municipal Code ("Municipal Code"); and WHEREAS, on April 17, 2026, the City denied Purest's application based on the eligibility requirements contained in Chapter 12A of the Municipal Code, including sections 12A-4(b)(16) and 12A-4(c)(7), and Purest's state licensing history; and
WHEREAS, Purest timely appealed the denial to the City Council; and WHEREAS, the City Council conducted an administrative appeal hearing on July 22, 2026, at which Purest appeared through counsel and the City appeared through staff, and the City Council received and considered the administrative record, documentary evidence, presentations and arguments of the parties, and all other evidence properly before it; and
WHEREAS, the administrative record contains a February 25, 2025 Notice of Provisional License Revocation issued by the California Department of Cannabis Control ("DCC") concerning Purest's provisional commercial cannabis distributor license, State License No. C11-0000716-LIC; and WHEREAS, the February 25, 2025 revocation occurred within three years preceding Purest's 2026 application for the City Cannabis Business Regulatory License; and
WHEREAS, the City Council's review is limited to whether the City properly denied the application under the Municipal Code and does not adjudicate the validity or merits of DCC's underlying revocation decision or make any finding concerning the individual licensing history of Purest's owners or managers; and WHEREAS, after considering the entire administrative record and the evidence and argument presented at the hearing, the City Council determined to grant the appeal and set aside the City Manager's denial of Purest's application.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1. The City Council, in exercising its independent judgment, finds and adopts the foregoing recitals as true and correct and incorporates them into this Resolution. Based on the administrative record and the evidence and argument presented at the appeal hearing, the City Council sets aside the City Manager's decision and grants the appeal by Purest USA LLC.

A. Purest held provisional commercial cannabis distributor license State License No. C11-0000716- LIC, which DCC revoked on February 25, 2025.

B. The February 25, 2025 revocation occurred within the three-year period preceding Purest's 2026 application for Cannabis Business Regulatory License No. 2017-80.

2 C. Purest satisfied the eligibility requirements relied upon by the City under Municipal Code sections 12A-4(b)(16) and 12A-4(c)(7) when the City acted on the application.

Section 2. The appeal of the City Manager's denial of Purest USA LLC's application for Cannabis Business Regulatory License No. 2017-80 is GRANTED, and the City Manager's decision is SET ASIDE.

Section 3. The City Council hereby disapproves and sets aside the denial of Purest USA LLC's application for Cannabis Business Regulatory License No. 2017-80.

Section 4. This Resolution constitutes the City Council's final administrative determination on the appeal presently before it.

Section 5. Judicial review of this decision is governed by California Code of Civil Procedure section 1094.6.

Any petition for writ of administrative mandate under Code of Civil Procedure section 1094.5 must be filed within the time prescribed by section 1094.6.

Section 6. Following adoption of this Resolution, the City Clerk shall serve a copy of the executed Resolution on Purest USA LLC, its Owner(s), and counsel for Purest USA LLC by first-class mail, with a copy served on the City Manager or his designee.

PASSED, APPROVED and ADOPTED this 8th day of September, 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Mayor
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Approve the Purchase and Delivery of a Modified Shipping Container and Appropriate Additional Funding to Complete the Animal Control Facility Improvements Background: Animal Control staff currently operate from a facility that does not provide onsite restroom facilities, adequate office space, animal washing station, and storage area. Staff have reviewed several options to improve the existing facility and determined that the purchase of a modified 40-foot storage container would provide the additional space and facilities needed for Animal Control operations.

Staff contacted several vendors in an effort to obtain competitive quotes for the modified container which include the following: Bitrich Containers and Falcon Containers, both located in Arizona; Bob's Containers in Texas, and Versa Products, Inc. from Los Angeles, CA. Staff received two (2) responses to the request for quotes (RFQ) as follows:

Versa Products, Inc. $70,550
Los Angeles, CA
Bob’s Containers $89,978
Austin, Texas
The above-mentioned vendors (who all advertise that they provide this type of product) were contacted by email and telephone with messages indicating the bid opportunity.

Due to the nature of this project, staff would like to move forward with the purchase and delivery of the modified container under the City’s procurement guidelines for purchasing equipment under $100,000. The additional site improvements to grade the site, install the container, ADA access ramp, and connect utilities will be performed under a separate contract and will follow the City formal or informal bid procedures. Therefore, staff is requesting authorization to purchase a modified 40-foot storage container from Versa Products, Inc., located in Los Angeles, California, for the amount of $70,550.00 plus 10% contingency for a total not to exceed (NTE) amount of $77,605.

The converted container provides the following features:
• A unisex restroom
• An animal washing station
• Three staff workstations
• Air conditioning and heating
• Finished flooring and wall coverings
• Interior lighting
• An exterior awning with lighting
• Delivery to the City
The addition of the modified container will allow the existing Animal Control Office space to be repurposed to provide additional storage space and an expanded kitten area, while providing staff with improved restroom, office, and animal care facilities.

09960.00000\45188851.1
Fiscal Impact: The total project budget will not exceed $97,000.00. Funding consists of $47,000.00 included in the FY 2026–27 approved Animal Control budget and an additional appropriation of up to $50,000.00 from Animal Shelter Contributions. The modified container purchase will not exceed $77,605.00, leaving up to $19,395.00 available for site preparation, installation, the ADA-accessible ramp, utility connections, and other related project costs. No additional General Fund appropriation is available or required for the project.

Recommendation: Approve the purchase and delivery of a modified 40-foot shipping container from Versa Products, Inc. to provide an ADA-accessible restroom, office space, animal washing station, and utility room for the Animal Control facility for an amount not to exceed $77,605.00; authorize an additional appropriation of up to $50,000.00 from Animal Shelter Contributions, establishing a total project budget not to exceed $97,000.00; authorize the remaining project funds to be used for site preparation, installation, ADA access, utility connections, and related improvements in accordance with the City’s procurement requirements; and authorize the City Manager to execute the purchase agreement and any other documents necessary to complete the project.

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

Other Department Approval (when required): Date:
9/3/2026
9/3/2026

Quote
VersaDesk / VersaProducts
14108 Towne Ave
Los Angeles, CA 90061-2651
USA
Quote Date: August 7, 2026
Quote Reference Number:

Quote Valid Until: 90 days
Sales Reps: Louie Ortiz
[email protected]
+14242502078

QUOTE FOR / BILL TO
[email protected]
+17603265700

SHIP TO
Item & Description Qty Unit Price Discount Unit Price after Discount Subtotal Mobile Office Turnkey Shipping
Container 40 ft
1 $48,000.00 10% $43,200.00 $43,200.00
Mobile Office Eve Lighting Package
40 ft
1 $6,000.00 10% $5,400.00 $5,400.00
Mobile Office Bathroom Unit -
Grouped / Premium Fixtures
1 $0.00 — $0.00 $0.00
CUST miscellaneous options
Mobile office bathroom-All Gender
1 $12,000.00 10% $10,800.00 $10,800.00
Custom Product
Professional Dog wash.grooming station
1 $3,500.00 10% $3,150.00 $3,150.00
Freight
FT00001
1 $8,000.00 — $8,000.00 $8,000.00
Additional information

POC LOUIE ORTIZ
Window dog wash?
ext -perm window left front side of mobile office?
interior doors to be 36"
Subtotal $77,500.00
Total discount $6,950.00
Total $70,550.00
Pay now Download

RETURN POLICY
We guarantee customer satisfaction on every item purchased from VersaDesk. If you are not completely satisfied, you may return the product within 30 days of the order being received. If you ordered a quantity of greater than two units, only one product may be opened for evaluation. Opening of additional products is considered to be an acceptance of the entire order. All shipping fees on returns are paid for by the purchaser. For all orders greater than or equal to $5,000 USD, there is a mandatory 25% restocking fee. All custom orders are non-refundable. VersaDesk will not accept any returns after 30 days from the delivery date.

HOW TO REQUEST A RETURN

1.) Call VersaDesk Customer Support at (800) 465-1660 to request an RMA.

2.) Include the RMA form from Customer Support with your return shipment.

VersaDesk will not accept returned items without an RMA form.

3.) A credit will not be issued without an RMA number. Typically 4–5 business days to process a refund upon receipt.

WARRANTY
We offer a true Lifetime Warranty on all products we manufacture — not a "limited" warranty with hidden fine print, not one that quietly expires. A real, best-in-class promise that we will stand behind our product as long as you own it.

RETURN ELIGIBILITY
Items must be in new/unused condition and in their original packaging. Items which are custom/made to order cannot be returned. Returns on clearance items and items marked as "non-returnable" will not be accepted.

ORDER CANCELLATION FEE
Customers may cancel their orders up to 5 business days after the order was placed without any penalty. Cancellation requests after 5 business days will be subject to a 25% cancellation fee calculated on the order total (minus any shipping fee and taxes). All custom orders are considered final.

SHIPPING & FREIGHT
All orders are shipped FOB Los Angeles, California USA. Freight charges are the responsibility of the customer. If free shipping is offered, it will be stated on all invoices and price quotes prior to payment transaction.

DAMAGES & CLAIMS
All damage claims must be reported at the time of delivery. Please photograph and note each issue on the bill of lading at the time of delivery. For assistance contact customer support: 800-804-1578, text 424-433-3257, or email [email protected].

For VersaDesk:

Authorized Signature
Date: Aug 18, 2026

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Accept the Work Completed by Rainy Day Roofing, Inc. for the Administration Building Façade Awning Project and Authorize a Notice of Completion to Record with the San Bernardino County Recorder’s Office
Background: On February 10, 2026, City Council Awarded the Base Bid and Additive Alternate to Rainy Day Roofing, Inc. for construction of the Administration Building Façade Awning project in the amount of $192,102.00 plus 10% contingency for a total project cost of $211,312.20.

The contractor began construction on March 30, 2026, and completed the work on August 6, 2026. Additional time to complete the project was granted to the contractor due to fire sprinkler relocations, longer than expected lead time on roofing materials, and extreme weather conditions. No change orders were issued to Rainy Day Roofing, Inc. therefore they completed the project at the original contract amount of $192,102.00.

The contractor has submitted required warranties for the project and is in the process of submitting final invoices and supporting documentation. Staff recommends acceptance of the work completed by Rainy Day Roofing and issuance of the Notice of Completion for the project.

Fiscal Impact: $100,000 Budgeted in the FY 2026 budget, and $92,102 apportionment from fund 510, Admin Facility, Property Capital
Recommendation: Accept the work completed by Rainy Day Roofing, Inc. for the Administration Building Façade Awning Project and authorize a Notice of Completion to record with the San Bernardino County Recorder’s office.

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

Other Department Approval (when required): Date:
9/3/2026

RECORDING REQUESTED BY:

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

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

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:

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

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

Contractor’s Name Contractor’s Address:

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

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

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

Patrick J. Martinez, City Manager, City of Needles

STAFF REPORT

CITY COUNCIL

CITY OF NEEDLES, CALIFORNIA
Meeting Date: September 8, 2026
Title: Award the Base Bid and Additive Alternate No. 1 to Phillips Excavating, Inc. for the Phase V-B Water Service Lateral Replacement Project
Background: In preparation for the Pavement Management Program, Phase V-B Street Improvements scheduled for FY27, staff advertised for bids the Phae V-B Water Service Lateral Replacement project for streets associated with the paving. Streets for this project include the following:

Base Bid: Rio Vista, Flora Vista, Luna Vista and J Street (Parkway St to Balboa St), Parkway St and Balboa St, (Rio Vista to J Street) and Coronado St (Peru to J Street) Additive Alternate No. 1: Redwood, Santa Fe and Larchwood (Casa Linda St to end) Due to long lead times for the contractor to procure fittings needed to replace existing service laterals, staff will be issuing two Notice to Proceeds’ (NTP) for this project: the 1st NTP for procurement of pipe and fittings and the 2nd NTP for actual construction. The work is anticipated to start in December 2026 and be completed in 120 calendar days.

Advertisement for bids was published on August 5, 2026, and bids were opened on August 26, 2026. The following five bids were received:

Advertisement for bids was published on August 5,2026, and bids were opened on August 26, 2026. The following five bids were received:
• Phillips Excavating Inc. $ 474,386.00
• WEKA Inc. $ 500,839.00
• MJB Power LLC $ 574.263.00
• M-RAE ENGINEERING $ 672,260.00
• The Van Dyke Corporation $ 683,036.00
Staff has completed a bid evaluation and determined Phillips Excavating, Inc. as the successful bidder.

Fiscal Impact: $500,000 budgeted in FY27 for Water Capital Projects with the remaining $21,825.00 to be funded by the Water Asset Replacement Fund
Recommendation: Award the base bid and Additive Alternate No. 1 to Phillips Excavating, Inc. for the Phase V-B Water Service Lateral Replacement Project in the amount of $474,386 plus 10% contingency for a total project cost of $521,825 and authorize staff to execute a Public Works Agreement with Phillips Excavating, Inc. and move forward with the Notice of Award and Notice to Proceed Submitted By: Kathy Raasch, Director of Development Services/Capital Projects City Manager Approval: Date:

Other Department Approval (when required): Date:
9/3/2026

LILLYHILL BOOSTER STATION LILLYHILL DRIVE LARCHWOOD STREET SANTA FE CIRCLE REDWOOD AVE CASA LINDA STREET 1401 1405 1395 1385 1375 1365 1355 1345 1335 1325 1315 1913 1903 1287 1277 1267 1257 1247 1348 1340 1332 1324 1316 1308 1300 1800 1309 1325 1317 1341 1333 1349 1357 1356 1340 1332 1324 1316 1308 1300 1348 1311 V V 1321 1361-V 1332-V 1371-V 1381 1380 1360 1350 1340 1330 1320 1310 1370 1309 1349 1339 1329 1319 1379 1369 1359V 1348 1338 1328 V 1308 V CASA LINDA STREET CALIFORNIA HIGHWAY PATROL ST. JOHN 'S EPISCOPAL CHURCH PARKWAY STREET J STREET 2012 2032 2028 2024 2020 2014 2010 2008 2004 2000 1932 1928 1924 1920 1914 1910 1908 1904 1900 1933 1929 1925 1921 1915 1911 1909 1905 1901 1932 1928 1924 1920 1914 1910 1908 1904 1900 1933 1929 1925 1921 1915 1911 1909 1905 1901 1932 1928 1924 1920 1914 1910 1908 1904 1900 1933 1929 1925 1921 1915 1911 1909 1905 1901 2032 2028 2024 2020 2014 2010 2008 2004 2000 2032 2028 2024 2020 2010 2008 2004 2000 2033 2029 2025 2021 2015 2011 2009 2005 2001 2033 2029 2025 2021 2015 2011 2009 2005 2001 2033 2029 2025 2021 2015 2011 2009 2005 2001 1916 1924 1932 2020 2030 5 6 7 8 1 2 3 4 D C B A BUY RITE MARKET FISH & WILDLIFE HOUSING FLORA VISTA STREET LUNA VISTA STREET RIO VISTA FLORA VISTA STREET LUNA VISTA STREET

CORONADO STREET
BALBOA STREET RIO VISTA J STREET J STREET 2014 X METER X X 23' CURB 10' SEWER 8' CURB 11' CURB 3' CURB X X METER METER 5' SEWER 3' CURB 7' SEWER 7' SEWER 6' CURB 6' CURB 8' CURB X 7' CURB 12' SEWER 7' CURB 6' SEWER 22' CURB 10' SEWER 14' SEWER 12' EOP 1' CURB RIO VISTA

PARKWAY

PARKWAY

PARKWAY

CORONADO ST CORONADO

CORONADO

CORONADO ST CORONADO CORONADO

BALBOA ST BALBOA
BALBOA

PARKWAY

CORONADO ST

BALBOA ST
CORONADO ST CITY OF NEEDLES CAPITAL PROJECT PHASE V-B PAVING PROJECT ALTERNATIVE RIO VISTA - Parkway to Balboa FLORA VISTA - Parkway to Balboa LUNA VISTA - Parkway to Balboa J STREET - Parkway to Balboa PARKWAY - J Street to Rio Vista BALBOA - J Street to Rio Vista REDWOOD - Casa Linda to End SANTA FE - Casa Linda to End LARCHWOOD - Casa Linda to End CASA LINDA ST - Lillyhill to Redwood

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: September 8, 2026
Title: Resolution 2026-36 authorizing the City Manager to execute Program Supplement No. F005 to the Administering Agency-State Agreement No. 08-5220F15 for Federal-Aid Projects with the State of California Department of Transportation (Caltrans) for the administration of federal-aid funds for the River Road/River Street Rehabilitation Project.

Background: On April 22, 2025, City Council approved a funding agreement with SBCTA for the Project Approval and Environmental Documentation (PA & ED) phase of the River Road and River Street rehabilitation projects in an amount of $60,000 for River Road and $13,000 for River Street.

In May 2025, City of Needles submitted an application to SCAG for the Surface Transportation Block Grant (STBG) program for design and construction of the River Road and River Street project. STBG program provides federal transportation funding for projects that preserve and improve the conditions and performance of highways, bridges, and public Roads; pedestrian and bicycle infrastructure; and transit capital projects.

On Dec. 4, 2025, SCAG Regional Council approved the Federal Fiscal Year 2026-27 and 2027-28 STBG/CMAQ funding recommendations for 132 projects within the SCAG region. Needles was recommended to receive $301,000 of the program contingency funds for the Design & Right-of-Way phases of the River Road and River Street projects. Staff has been working with SCAG and SBCTA on the funding allocation approvals and are ready to move forward with the Supplemental Agreement with Caltrans to administer the project.

Caltrans requires the City to designate an authorized person to execute any Master Agreements, Program Supplement Agreements, Fund Exchange Agreements, Fund Transfer Agreements, and any amendments thereto with the California Department of Transportation (Caltrans).

Fiscal Impact: City was awarded federal transportation funding under the Surface Transportation Block Grant (STBG) program, administered by Caltrans in the amount of $301,000 with a City match of $76,000 to be reimbursed by SBCTA as part of the PA & ED phase of the project. The $76,000 reflects an increase of $3,000 from the original approval for PA & ED for total project funding of $377,00 awarded to date.

Recommendation: Adopt Resolution 2026-36 authorizing the City Manager to execute Program Supplement No. F005 to the Administering Agency-State Agreement for Federal-Aid Projects with the State of California Department of Transportation (Caltrans) for the administration of federal-aid funds for the River Road/River Street Rehabilitation Project.

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

Other Department Approval (when required): Date:
9/3/2026

RESOLUTION NO. 2026-36

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

OF FEDERAL TRANSPORTATION FUNDING UNDER THE SURFACE TRANSPORTATION BLOCK GRANT

PROGRAM FOR THE CITY OF NEEDLES RIVER ROAD/RIVER STREET REHABILITATION PROJECT AND AUTHORIZING CITY MANAGER TO EXECUTE PROGRAM SUPPLEMENT NO. F005 TO ADMINISTERING AGENCY-STATE AGREEMENT FOR FEDERAL-AID PROJECTS NO. 08-5220F15 WHEREAS, the City of Needles is eligible to receive Federal and/or State funding for certain Transportation Projects, through the California Department of Transportation and WHEREAS, Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements need to be executed with the California Department of Transportation before such funds could be claimed and
WHEREAS, the City of Needles wishes to delegate authorization to execute these agreements and any amendments thereto to the City Manager all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, Fund Transfer Agreements and any amendments thereto with California Department of Transportation and
NOW, THEREFORE, BE IT RESOLVED that
1) The City Manager is hereby authorized and directed to sign and file, for and on behalf of the City of Needles/Needles Public Utility Authority, a Supplemental Agreement from Caltrans for the Project; 2) The City Manager or designee is hereby authorized to represent the City of Needles/Needles Public Utility Authority in carrying out the City of Needles/Needles Public Utility Authority responsibilities under the Supplemental Agreement, including approving and submitting disbursement requests (including Claims for Reimbursement) or other required documentation, compliance with applicable state and federal laws, and making any other necessary certifications; 3) The authority granted hereunder shall be deemed retroactive. All acts authorized hereunder and performed prior to the date of this Resolution are hereby ratified and affirmed. Caltrans is authorized to rely upon this Resolution until written notice to the contrary, executed by each of the undersigned, is received by Caltrans. Caltrans shall be entitled to act in reliance upon the matters contained herein, notwithstanding anything to the contrary, contained in the formation documents of the City of Needles/Needles Public Utility Authority in any other document.

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 vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Mayor
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney

F005
FOR FEDERAL-AID PROJECTS NO 08-5220F15
0826000153
July 31, 2026
08-SBD-0-NED
STPL-5220(013)
5220
This Program Supplement hereby adopts and incorporates the Administering Agency-State Agreement for Federal Aid which was entered into between the Administering Agency and the State on 07/19/2019 and is subject to all the terms and conditions thereof. This Program Supplement is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. 2026-36 approved by the Administering Agency on September 8, 2026 (See copy attached).

The Administering Agency further stipulates that as a condition to the payment by the State of any funds derived from sources noted below obligated to this PROJECT, the Administering Agency accepts and will comply with the special covenants or remarks set forth on the following pages.

River Road from North K Street to Jack Smith park; River Street from BNSF Railway to River Road; and Needles Highway from North K Street
to River Road.

Road Rehabilitation 0.0(MILES)
Estimated Cost Federal Funds Matching Funds
Y240 $201,000.00

CITY OF NEEDLES
By ________________________________ By ________________________________ Title _______________________________
Date _______________________________
Attest _______________________________ Date _______________________________ Division of Local Assistance
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:

Accounting Officer _______________________ Date _______________ PROGRAM SUPPLEMENT NO.
to

ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:

Location:

Project Number:

E.A. Number:

Locode:

PROJECT LOCATION:

TYPE OF WORK: LENGTH:

LOCAL OTHER
$277,000.00 $76,000.00 $0.00
Chief, Office of Project Implementation

STATE OF CALIFORNIA
Department of Transportation
$201,000.00
Program Supplement 08-5220F15-F005- ISTEA 1Page of 7
07/31/2026

SPECIAL COVENANTS OR REMARKS
08-SBD-0-NED
STPL-5220(013)

1. A. The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the current published Local Assistance Procedures Manual.

B. ADMINISTERING AGENCY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further State or Federal funds are needed for those future phase(s).

C. STATE and ADMINISTERING AGENCY agree that any additional funds which might be made available by future Federal obligations will be encumbered on this PROJECT by use of a STATE-approved "Authorization to Proceed" and Finance Letter. ADMINISTERING AGENCY agrees that Federal funds available for reimbursement will be limited to the amounts obligated by the Federal Highway Administration.

D. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer within 60 days of project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract.

Failure to do so will cause a delay in the State processing invoices for the construction phase.

Attention is directed to Section 15.6 "Award Package" of the Local Assistance Procedures Manual.

E. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations for Federal aid projects, or encumbrances for State funded projects, as well as to suspend invoice payments for any on-going or future project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period.

If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount.

ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual.

F. Administering Agency shall not discriminate on the basis of race, religion, age, disability, color, national origin, or sex in the award and performance of any Federal-assisted contract or in the administration of its DBE Program Implementation Agreement. The Administering Agency shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure Program Supplement 08-5220F15-F005- ISTEA Page 2 of 7