Agenda — Twentynine Palms City Council, June 13, 2023 (part 1 of 2)

TWENTYNINE PALMS CITY COUNCIL

REGULAR MEETING AGENDA
6136 Adobe Road
Twentynine Palms, CA 92277
www.29palms.org
Tuesday, June 13, 2023
NOTICE IS HEREBY GIVEN, that the City Council will hold a Regular Meeting on Tuesday, June 13, 2023 at City Hall, 6136 Adobe Road, Twentynine Palms, CA 92277 to consider the following:

REGULAR SESSION AGENDA
6:00 P.M.

CALL TO ORDER
Pledge of Allegiance.

Invocation - Pastor Nick Foley - Set Free Church.

Roll Call.

Closed Session Announcements.

Changes to the Agenda.

ANNOUNCEMENTS
These proceedings may be viewed on demand on the City of Twentynine Palms website at www.29palms.org.

You may also Live Stream this meeting by going on our website and clicking on the "Meeting Agendas" link.

AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

1. Presentation to the Explorer Post 870 for their Participation in the Cash for Trash and Recycling Program.

2. Proclamation Recognizing June 19, 2023 as Juneteenth Independence Day Proclamation Recognizing June 19, 2023 as Juneteenth Independence Day - Pdf 5 - 6

3. Proclamation Recognizing June 2023 as LGBTQ+ Pride Month Proclamation Recognizing June 2023 as LGBTQ+ Pride Month - Pdf 7 - 8

COUNCIL COMMENTS AND REPORTS OF MEETINGS ATTENDED

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CONSENT CALENDAR
All matters listed under the Consent Calendar are to be considered routine by the City Council and will be enacted by one motion in the form listed. Any item may be removed from the Consent Calendar and considered separately by the City Council. The public will be given an opportunity to comment on Consent Calendar items prior to the City Council action

4. Waive the Reading of Ordinance and Approve the Reading by Title Only.

5. Approval of Minutes of the City Council Meeting Held on May 23, 2023.

City Council - Regular Meeting - 23 May 2023 - Minutes - Pdf 9 - 15

6. Approval of Warrant Register Totaling $3,328,747.64.

Approval of Warrant Register Totaling $3,328,747.64. - Pdf Warrant Register 061323
17 - 30

7. Approval of Project Phoenix Warrant Register Totaling $10,822.80.

Approval of Project Phoenix Warrant Register Totaling $10,822.80. - Pdf Project Phoenix Warrant Register 061323
31 - 33

8. Annual Contract with San Bernardino County Sheriff's Department.

RECOMMENDATION: The City Council approve the annual contract with the San Bernardino County Sheriff’s Department for Law Enforcement Services in the amount of $5,323,535 plus incidental expenses.

Annual Contract with San Bernardino County Sheriff's Department. - Pdf 35 - 40

9. Accept the Luckie Park Pool Project.

RECOMMENDATION: The City Council:

1. Accept the Twentynine Palms Luckie Pool Project as completed for a total cost of $4,884,904.00.

2. Direct the City Clerk to file the Notice of Completion for the contract work.

3. Direct the Finance Director to release retained funds 30 days after the filing of the Notice of Completion, provided no claims are filed against the contractor.

Accept the Luckie Park Pool Project. - Pdf
41 - 49

10. Fire Station Lease.

RECOMMENDATION: The City Council approve the Fire Station lease with the County of San Bernardino for the use by San Bernardino County Fire as a Fire Station.

Fire Station Lease. - Pdf
51 - 55

11. Designating Authorized Signers on the City's Bank Accounts.

RECOMMENDATION: The City Council adopt Resolution No. 23-_, designating authorized signers on the City Bank Accounts.

Designating Authorized Signers on the City's Bank Accounts. - Pdf 57 - 60

12. Updating Information with the Local Agency Investment Fund (LAIF).

RECOMMENDATION: The City Council adopt Resolution No. 23-___, updating the City's authorized officers to order the deposit or withdrawal of funds in the City's LAIF account.

Updating Information with the Local Agency Investment Fund (LAIF). - Pdf 61 - 63

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13. Senate Bill 1 Road Maintenance and Rehabilitation Account Project List Approval and Budget Amendment.

RECOMMENDATION: The City Council adopt Resolution No. 23-__ Identifying the project(s) to be funded by SB1 RMRA funding.

Senate Bill 1 Road Maintenance and Rehabilitation Account Project List Approval and Budget Amendment. - Pdf
65 - 69

ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION

PUBLIC HEARINGS

14. DCA - Temporary Use Permits.

RECOMMENDATION: That the City Council conduct the Public Hearing, consider public comment, find the project exempt from CEQA, and adopt the Ordinance approving the amendment to the Development Code regarding Temporary Use Permits.

DCA - Temporary Use Permits. - Pdf
71 - 89

15. DCA - Film Permits.

RECOMMENDATION: The City Council conduct the Public Hearing, consider public comment, find the project exempt from CEQA and adopt the Ordinance approving the amendment to Development Code adding Chapter 19.35, Film Permits.

DCA - Film Permits. - Pdf
91 - 103

16. Proposed 2-Year Project Phoenix Funds Budget for FY 2023-24 & 2024-25.

RECOMMENDATION: The City Council approve Resolution 23-__ that authorizes the adoption of the Project Phoenix Funds Budget for FY 2023-24 & 2024-25.

Proposed 2-Year Project Phoenix Funds Budget for FY 2023-24 & 2024-25. - Pdf 105 - 126

17. Proposed Two-Year Special Funds Budget for FY 2023-24 & 2024-25.

RECOMMENDATION: The City Council approve:

1. Resolution No. 23-___ that authorizes the adoption of the Special Funds Budget for the Fiscal Years 2023-24 and 2024-25.

2. Interfund transfers for admin fees in FY 2023-24
a) $10K from the Gas Tax Fund to the General Fund
b) $10K from the Measure I Fund to the General Fund
c) $87.5K from the Successor Agency Fund to the General Fund Proposed Two-Year Special Funds Budget for FY 2023-24 & 2024-25. - Pdf 127 - 169

DISCUSSION AND POTENTIAL ACTION ITEMS

18. City Manager's Written Report and Intention to Levy Sewer Fees for FY 2023-24.

RECOMMENDATION: The City Council:
1) Adopt Resolution No.23-___, (A Resolution of the City Council of the City Twentynine Palms Directing the Filing of the Annual Written Report for the City's Sewer Fees.
2) Receive and approve the City Manager's Written Report as filed or as amended. 3) Adopt Resolution No.23-___, (A Resolution of the City Council of the City of Twentynine Palms Declaring its intention to levy and collect assessments pursuant to Section 5471 of the California Health and Safety Code for Fiscal Year 2023- 2024).
4) Direct City Clerk to schedule a Public Hearing to notify the public of the City's intent to place the sewer fees on the Tax Roll for Fiscal Year 2023-24.

City Manager's Written Report and Intention to Levy Sewer Fees for FY 2023-24. - Pdf 171 - 209

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19. Planning Commission Appointment.

RECOMMENDATION: The City Council appoint Alexander James Garcia and Jessica Cure to the Planning Commission as recommended by the Ad Hoc Committee (Mayor Pro Tem Steve Bilderain and Council Member Octavious Scott).

Planning Commission Appointment. - Pdf
211 - 214

FUTURE COUNCIL INITIATED ITEMS

1. Seasonal Banners throughout the City.

2. Maintained v. Non-Maintained Roads.

3. Discussion on working with non-profit organizations to establish a "Heating Shelter" during the Winter months.

4. Planning Commission review of what materials can be used for commercial driveways.

5. Identify ten (10) lots to start a self-help construction program.

6. Discussion on forming a Youth Advisory Council.

PUBLIC COMMENTS
This is the time for the public to address the City Council on issues within the jurisdiction of the City Council that are NOT on this agenda. All comments are to be directed to the City Council and shall not consist of any personal attacks. Members of the public are expected to maintain a professional, courteous decorum during their comments. There is a time limitation of three minutes per person. If you haven’t already done so, please fill out name and address slips and give them to the City Clerk. The City Council is prohibited by State law from taking action or discussing items not included on the printed agenda. Public comments on specific agenda items will be deferred until consideration of the item on the agenda.

CITY MANAGER UPDATE

ADJOURNMENT
It is the intention of the City of Twentynine Palms to comply with the Americans with Disabilities Act in all respects. If you are a person with a disability who requires a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, please request such modification or accommodation from the City Clerk at (760) 367- 4890 (facsimile). Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting. Please advise us at the time whether you will require accommodations to participate in meetings on a regular basis. Any person affected by any application on this agenda may submit their concerns in writing prior to the meeting or appear in person and be heard in support or opposition to the proposal at the time the matter is considered on the agenda. The staff reports, applications and environmental documents may be viewed at either the office of Community Development or the office of the City Clerk, 6136 Adobe Road, from 7:00 a.m. until 6:00 p.m. Monday through Thursday, except legal holidays. The Invocation is given per Policy 10-01, and does not reflect the views of the City but rather is an expression of speech by a private citizen making the presentation. Telephone inquiries may be made at (760) 367-6799. If you challenge any agenda issue in court, you may be limited to raising only those issues that you or someone else raised at the public meeting described in this notice, or in written correspondence delivered to the City of Twentynine Palms at, or prior to, the public meeting.

This notice of agenda is hereby certified to have been posted on or before 6:00 p.m., June 8, 2023.

Cindy Villescas CMC, City Clerk Time/Date

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STAFF REPORT
TO: City Council
FROM: Office Assistant
FOR MEETING: Jun 13 2023
SUBJECT: Proclamation Recognizing June 19, 2023 as Juneteenth Independence Day ATTACHMENTS:
• Proclamation Recognizing
June 19, 2023 as Juneteenth
Independence Day

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CITY OF TWENTYNINE PALMS

PROCLAMATION
JUNETEENTH INDEPENDENCE DAY 2023
WHEREAS, Juneteenth, also known as “Juneteenth Independence Day,” “Emancipation Day,” “Emancipation Celebration,” and “Freedom Day,” is the oldest known celebration commemorating the ending of slavery in the United States; and has been celebrated by the Black Community for over 150 years; and WHEREAS, President Abraham Lincoln issued the Emancipation Proclamation on January 1, 1863, and declared “that all person held as slaves” within the rebellious state “are, and henceforward shall be free,” paving the way for the passing of the thirteenth amendment, which formally abolished slavery in the United States of America; and
WHEREAS, this day, June 19, has special meaning and is called “Juneteenth” combining the words June and Nineteenth; it marks a time to appreciate the African American experience and encourage the continuous understanding and respect for the suffering of slavery; and WHEREAS, Juneteenth is an observance celebrated with traditions handed down through many generations, including family gatherings and picnics, music, stories told by elders and local historians, speeches, and recognition of prominent individuals who have made significant achievements and contributions to the community; and
WHEREAS, it is a time for reflection and rejoicing, a time for assessment self-improvement, and for planning the future; and
WHEREAS, residents are encouraged to join together in celebration of freedom, family, and community by embodying a spirit of peace, respect, and brotherly love, to honor and salute our City’s rich cultural legacy and diversity.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Twentynine Palms does hereby proclaim June 19, 2023, as JUNETEENTH INDEPENDENCE DAY. We recognize Juneteenth Independence Day’s historical significance to the United States and support the continued nationwide celebration. We call upon the residents of Twentynine Palms to take this opportunity to learn more about the past, better understand the experiences that have shaped the United States and recognize the observance of the end of slavery is part of the history and heritage of the United States.

DATED this 13th day of June 2023.
______________________________
McArthur Wright, Mayor

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STAFF REPORT
TO: City Council
FROM: Office Assistant
FOR MEETING: Jun 13 2023
SUBJECT: Proclamation Recognizing June 2023 as LGBTQ+ Pride Month ATTACHMENTS:
• Proclamation Recognizing
June 2023 as LGBTQ+ Pride
Month

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CITY OF TWENTYNINE PALMS

PROCLAMATION
LGBTQ+ PRIDE MONTH 2023
WHEREAS, the City of Twentynine Palms is a welcoming community and an exceptional place to live, work, and visit; and
WHEREAS, the City of Twentynine Palms is strengthened by the diversity of ethnic, cultural, racial, gender, and sexual identities of its residents, all of whom contribute to the vibrant character of our City; and WHEREAS, the City of Twentynine Palms has a diverse Lesbian, Gay, Bisexual, Transgender, Queer/Questioning (LGBTQ+) community and is committed to supporting visibility, dignity, and equality for all community members so that all residents can live free from discrimination; and WHEREAS, the nation was founded on the principle that every individual has infinite dignity and worth, and the Twentynine Palms City Council calls upon the people of this municipality to embrace this principle and work to eliminate prejudice everywhere it exists; and
WHEREAS, while society at large increasingly supports LGBTQ+ equality, it is essential to acknowledge that the need for education and awareness remains vital to end discrimination and prejudice; and WHEREAS, the City of Twentynine Palms commends the bravery and courage of those in the LGBTQ+ community who face adversity and various forms of violence. Continued opposition and oppression against LGBTQ+ peoples make it important for neighbors to stand up and show solidarity and support for our LGBTQ+ residents and the community at large.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Twentynine Palms does hereby proclaim June 2023 as LGBTQ+PRIDE MONTH in support of the LGBTQ+ community. We call upon the residents of Twentynine Palms to recognize the achievements of the LGBTQ+ community and celebrate the great diversity of our community.

DATED this 13th day of June 2023.
______________________________
McArthur Wright, Mayor

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TWENTYNINE PALMS CITY COUNCIL
City Council - Regular Meeting MINUTES
City Hall, 6136 Adobe Road, Twentynine Palms, CA 92277
www.29palms.org
May 23, 2023
CALL TO ORDER - Mayor Wright called the meeting to order at 6:02 p.m.

Pledge of Allegiance - Members of Boy Scout Troop 229 led the Pledge of Allegiance.

Invocation - Mary Kay Sherry, The Church of Jesus Christ of Latter-Day Saints, gave the Invocation.

Roll Call - The following Councilmembers were present: Bilderain, Klink, Mintz, Scott, Wright.

Closed Session Announcements - None.

Changes to the Agenda - None.

ANNOUNCEMENTS
Mayor Wright mentioned that these proceedings may be viewed on demand on the City of Twentynine Palms website at www.29palms.org. You may also Live Stream this meeting by going on our website and clicking on the "Meeting Agendas" link.

AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

1. Proclamation Recognizing May 2023 as California Tourism Month.

Mayor Wright read the proclamation in its entirety.

2. Presentation to the Twentynine Palms High School Interact Club and Boy Scout Troop 229 for their Participation in the Cash for Trash and Recycling Program.

Mayor Pro Tem Bilderain presented checks in the amount of $300 each from the City of Twentynine Palms and Burrtec Waste and Recycling Services to Boy Scout Troop 229 and the Twentynine Palms High School Interact Club for their Participation in the Cash for Trash and Recycling Program.

COUNCIL COMMENTS AND REPORTS OF MEETINGS ATTENDED
Councilmember Scott mentioned that he met with the Twentynine Palms High School Interact Club.

Councilmember Mintz commented that he attended the Ribbon Cutting Ceremony for the Channel Trail last week and he also attended the City County Conference in Lake Arrowhead.

Councilmember Klink mentioned that he attended the Ribbon Cutting Ceremony for the Channel Trail last week and the City County Conference in Lake Arrowhead. He also commented that it is a special time as his daughter Amanda is back in the United States after being stationed in England for five years with her husband. He also reminded everyone to drink water as it is getting hot out.

Mayor Pro Tem Bilderain mentioned that he did not attend any meetings.

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City Council - Regular Meeting
May 23, 2023
Mayor Wright commented that he attended the Ribbon Cutting Ceremony for the Channel Trail and he wished everyone celebrating a birthday in May a Happy Birthday and he echoed what Councilmember Klink said about drinking water.

CONSENT CALENDAR

3. Waive the Reading of Ordinance and Approve the Reading by Title Only.

4. Approval of Minutes of the City Council Meeting Held on May 9, 2023.

5. Steel Drum Roller Bomag BW 120 sl-5.

RECOMMENDATION: The City Council approve the purchase of a Bomag BW 120 sl-5 steel drum roller for the amount of $53,450.47.

6. Accept the SR 62 Raised Median Project.

RECOMMENDATION: The City Council:

1. Accept the SR 62 Raised Median Project as completed for a total cost of $171,996.

2. Direct the City Clerk to file the Notice of Completion for the contract work.

3. Direct the Finance Director to release retained funds 30 days after the filing of the Notice of Completion, provided no claims are filed against the contractor.

7. Accept the Twentynine Palms Channel Trail Project.

RECOMMENDATION: The City Council:

1. Accept the Twentynine Palms Channel Trail Project, Phase 1 as completed for a total cost of $677,261.

2. Direct the City Clerk to file the Notice of Completion for the contract work.

3. Direct the Finance Director to release retained funds 30 days after the filing of the Notice of Completion, provided no claims are filed against the contractor.

8. Twentynine Palms Lighting and Landscaping Assessment District #1, Engineer’s Annual Report, and Levy of Assessment for FY 2022-2023.

RECOMMENDATION: The City Council:
1) Adopt Resolution No.23-07 (A Resolution of the City Council of the City Twentynine Palms Directing the Filing of the Annual Report for the Twentynine Palms Landscaping and Lighting Assessment District No. 1); 2) Receive and approve the Engineer's Report as filed or as amended; 3) Adopt Resolution No.23-08, (A Resolution of the City Council of the City of Twentynine Palms Declaring its intention to order improvements, and to levy and collect assessments pursuant to the Lighting and Landscaping Act of 1972 for Fiscal Year 2023-2024).

City Manager Luckino commented that Item No. 8 calls for a Public Hearing on July 25th, however, the date will be changed to June 27th.

ACTION: A motion was made by Councilmember Mintz, seconded by Councilmember Klink to approve the Consent Calendar as amended.

The above motion was carried by the following:

ROLL CALL VOTE:

AYES: BILDERAIN, KLINK, MINTZ, SCOTT, WRIGHT
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION – None.

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City Council - Regular Meeting
May 23, 2023

PUBLIC HEARING

9. Presentation of the Proposed Two-Year General Fund Budget for Fiscal Year 2023-24 & 2024-25.

RECOMMENDATION: The City Council approve the following:

1. Resolution No. 23-09, approving the Fiscal Year 2023-24 & 2024-25 General Fund Budget including the following:
a. Annual Spending Plan
b. Employee Cost of Living Adjustment (COLA)
c. Wage Scale and Classification Schedule

2. Inter-fund transfers for FY 2023-24:
a. Transfers from the General Fund to Capital Projects Fund: $160K for self-funding; $105K for the purchase of a vehicle for Animal Control; and $5K to be put aside for the acquisition of a street sweeper.
b. $65K transfer from the General Fund to the Sewer Fund for fund’s subsidy.

Finance Director Abigail Hernandez-Conde (Director Hernandez-Conde) presented the Staff Report.

Mayor Wright opened up the Public Hearing.

Anna Stump, Twentynine Palms, spoke on behalf of the PAAC, asking that the $15,000 that is budgeted for Project Phoenix public art be used to move the 29! sign to Freedom Plaza and also for maintenance.

Veno Nathraj, Twentynine Palms, spoke regarding the sponsorship, specifically the $1516 allocated for the Pride event.

Mary Jane Binge, Twentynine Palms, commented on the 29! sign, saying she is totally against moving the sign.

She mentioned that many tourists stop and take photographs at the sign.

Mayor Wright closed the Public Hearing.

Councilmember Scott commented that he is recommending that the City Council remove the allocation to the Pride event and use it for Juneteenth event since TBID is already funding the Pride event.

Councilmember Klink mentioned that he agrees that the City should allocate those funds for the Juneteenth event and also for a Memorial event, since the Cemetery is no longer going to host an event for Memorial Day.

Eileen Leslie, Twentynine Palms, suggested that perhaps an art contest could be initiated for an additional concept for Freedom Plaza.

After a brief discussion, a motion was made by Councilmember Mintz, seconded by Councilmember Scott to approve Resolution No. 23-09, approving the Fiscal Year 2023-24 & 2024-25 General Fund Budget including the following:
a. Annual Spending Plan
b. Employee Cost of Living Adjustment (COLA)
c. Wage Scale and Classification Schedule

2. Inter-fund transfers for FY 2023-24:
a. Transfers from the General Fund to Capital Projects Fund: $160K for self-funding; $105K for the purchase of a vehicle for Animal Control; and $5K to be put aside for the acquisition of a street sweeper. b. $65K transfer from the General Fund to the Sewer Fund for fund's subsidy.

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City Council - Regular Meeting
May 23, 2023
The above motion was carried by the following:

ROLL CALL VOTE:

AYES: BILDERAIN, KLINK, MINTZ, SCOTT, WRIGHT
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE

DISCUSSION AND POTENTIAL ACTION ITEMS

10. City Manager's Written Report and Intention to Levy Sewer Fees for FY 2023-24.

RECOMMENDATION: The City Council:

1. Adopt Resolution No. 23-10, (A Resolution of the City Council of the City Twentynine Palms Directing the Filing of the Annual Written Report for the City's Sewer Fees.

2. Receive and approve the City Manager's Written Report as filed or as amended.

3. Adopt Resolution No. 23-11, (A Resolution of the City Council of the City of Twentynine Palms Declaring its intention to levy and collect assessments pursuant to Section 5471 of the California Health and Safety Code for Fiscal Year 2023-2024).

4. Direct City Clerk to schedule a public hearing to notify the public of the City's intent to place the sewer fees on the Tax Roll for Fiscal Year 2023-24.

City Manager Luckino presented the Staff Report.

Councilmember Scott commented that it doesn't seem right. He feels he may need to research this more. He asked how the percentage of charges are calculated. City Manager Luckino commented that it is by categories and the amount of water being used.

Veno Nathraj, Twentynine Palms, commented on the calculation. based on the EDU (Estimated Dwelling Unit).

Eileen Leslie, Twentynine Palms, commented on the initial setup of the infrastructure and on how the businesses should be charged. She mentioned this is not a water treatment plant, she has a septic tank. Revenue in the City is coming from the sales tax from businesses. She commented that she doesn't know how the City is going to charge 4.6% annually. These businesses will not be able to afford to stay open.

Joseph Carder, Twentynine Palms, asked are there any implications for other property owners on parcels not currently connected to the water system. City Manager Luckino replied no. He also asked what the rate controls are and if the 4.6% increase is the only increase or will there be more. City Manager Luckino replied that the maximum in rates will be the actual cost of the operation.

Carol Edwards, Twentynine Palms, reiterated what Ms. Leslie commented on. She commented that the restaurant business is not profitable and what little there may be, she holds onto. The increase in charges is the difference between her opening an additional day and hiring another employee.

ACTION: A motion was made by Councilmember Scott to table this item for further discussion, allowing the City Council to obtain more information on this. The motion was seconded by Councilmember Klink.

The above motion was carried by the following:

ROLL CALL VOTE:

AYES: BILDERAIN, KLINK, SCOTT, WRIGHT
NOES: MINTZ
ABSTAIN: NONE
ABSENT: NONE

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City Council - Regular Meeting
May 23, 2023

11. Potential Commercial Solar Field.

RECOMMENDATION: The City Council receive and file.

Community Development Director Gardner presented the Staff Report. He then passed the floor to Mr. Peter Bobro, with E Group and Mr. Robert M. Smith with K & L Gates who provided a PowerPoint Presentation on the anticipated solar farm.

Mayor Wright read an email that was sent by Russ and Gina Kohn for the record in opposition of the proposed Solar Field.

Veno Nathraj, Twentynine Palms, asked what the zoning is for the land for this proposed solar field. He commented that this project could create 200 jobs during the construction phase and another 300 full-time jobs over the lifespan. He commented that he is for development in our City, as long as the developer is responsible and that the project creates jobs in the City.

Pat Flanagan, Twentynine Palms, commented that this project is sitting on a heavy sand transport path and there is potential that this sand is going to blow into the surrounding residences and into the city.

Joseph Carder, Twentynine Palms, commented that he is pro solar, he commented that how ironic it is how these representatives are presenting the item and explaining how they are going to keep the project out of the eye of the community. He wished the same would go for the sewer project. He asked how much power the City would get to keep. Mr. Smith commented that there are a variety of options that can be discussed with city officials when the time comes. Mr. Carder then asked if that power can be used for a pumping station to move the treatment plant from his neighborhood.

Mary Jane Binge, Twentynine Palms, mentioned that she doesn't like the area this project is going into.

Terrence Latimer, Twentynine Palms, asked if there are any other competing bids, meaning are there any other developers that are interested in developing that land that might be more proactive.

Susan Peplow, Joshua Tree, commented that the City Council pay particular attention to the significant monetary benefit to the City and make sure that we hold E Group to it.

Councilmember Scott commented that he finds the threat this group is presenting is very offensive to him.

Mayor Pro Tem Bilderain mentioned that he particularly will be affected by this solar field as his residence is right across from this solar field, however, if this project will benefit the City, he is in agreement. He hopes that we can work together and something positive will come out of this moving forward.

Councilmember Klink commented that his home lies in the area as well. He asked what happens when more developers come and want to build more solar fields. He commented that he is in agreement with Mayor Pro Tem Bilderain's comments.

Councilmember Mintz commented that in the future there will be a huge demand for these products and if the City can benefit from this before the State gets involved and forces the City to comply, then he is in agreement.

12. Vacation Home Rental (VHR) Ordinance.

RECOMMENDATION: The City Council requested by future agenda item request to temporarily reduce the insurance requirement for Vacation Home Rentals (VHR) from $1M to $500K pending the formal updated policy from the Planning Commission.

Councilmember Klink recused himself from this discussion due to a possible conflict of interest and left the Council Chambers at 7:50 p.m.

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City Council - Regular Meeting
May 23, 2023
Director Gardner presented the Staff Report.

Councilmember Mintz mentioned that the County of San Bernardino and the Town of Yucca Valley has no requirement for insurance.

After a brief discussion, a motion was made by Councilmember Mintz, seconded by Mayor Pro Tem Bilderain to have NO requirement for liability insurance for vacation home rentals.

The above motion was carried by the following:

ROLL CALL VOTE:

AYES: BILDERAIN, MINTZ, SCOTT, WRIGHT
NOES: NONE
ABSTAIN: KLINK
ABSENT: NONE
Councilmember Klink returned to the Council Chambers at 7:55 p.m.

FUTURE COUNCIL INITIATED ITEMS

1. Seasonal Banners throughout the City.

2. Maintained v. Non-Maintained Roads.

3. Discussion on working with non-profit organizations to establish a "Heating Shelter" during the Winter months.

4. Planning Commission review of what materials can be used for commercial driveways.

5. Identify ten (10) lots to start a self-help construction program.

Councilmember Scott asked for a discussion on forming a Youth Council. Mayor Pro Tem Bilderain seconded the item.

PUBLIC COMMENTS
Alice Lawson, Twentynine Palms, spoke regarding crosswalks in the City, specifically near Oasis Elementary.

Karen Harper, Twentynine Palms, representing the "Women of Color" group, mentioned that they are sponsoring the Juneteenth event. She asked if the City has set aside any funding for Juneteenth.

Carol Edwards, Twentynine Palms, commented regarding the previous conversation regarding the 29! sign, mentioning that she agrees the current sign needs to stay where it is, but also agrees that one needs to be at Freedom Plaza, so is it possible to raise private funds to create another sign for Freedom Plaza. Mayor Wright mentioned that they are prohibited from responding to her question, however, the City Manager will discuss that with the City Council individually.

Terrence Latimer, Twentynine Palms, commented regarding events in the City. He commented that there should be a sense of ownness from the organizations that we are distributing funds to such as collecting data on attendance etc.

Joseph Carder, Twentynine Palms, commented on the solar fields and the sewer plant.

Mary Jane Binge, Twentynine Palms, commented that she hopes the City Council takes into consideration the repair and maintenance of the 29! sign. She also commented that she heard there are solar farms are going into the open areas on Interstate 10 going towards Blythe and there is no phone reception in that area now, so that might be something to consider when making the decision on the proposed solar field. She mentioned that the main concern she has is Project Phoenix and was hoping that the area would be considered as a playhouse, holding plays outdoors. She is saddened by the whole thing because this project was supposed to bring people to the area, and she doesn't see that happening.

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City Council - Regular Meeting
May 23, 2023
Ronnie Tiner, Twentynine Palms, spoke about the noise, speeding traffic, the light pollution, the smell in the Project Phoenix area and it has become unbearable.

CITY MANAGER UPDATE
City Manager Luckino provided updates on the following: he mentioned that he and Finance Director Hernandez had a meeting with HDL, who reviews our sales tax, and the report shows good results in the Downtown area/Project Phoenix, an event application is in the works, the Neighborhood Safety Project is almost complete, which includes new signs to be put up throughout the City and chip seal repair on various streets, and the Wastewater Advisory Committee meeting will be held June 1, 2023.

Mayor Wright sent a special shout out to Boy Scout Troop 229 for attending the meeting.

ADJOURNMENT - Mayor Wright adjourned the meeting at 8:14 p.m.

Respectfully submitted,
Cindy Villescas, CMC
City Clerk/Public Information Officer

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STAFF REPORT
TO: City Council
FROM: Senior Finance Technician
FOR MEETING: Jun 13 2023
SUBJECT: Approval of Warrant Register Totaling $3,328,747.64.

ATTACHMENTS:
• Warrant Register 061323

Page 17 of 214 ends

Check Date
Warrant Register
PPBI Gen Chkng

CITY OF TWENTYNINE PALMS
Vendor
WARRANT DATE: 06-13-23
Check / Payment
0016332 4/26/2023 [1001] LORI (8411) ABDELNOUR
0016333 4/26/2023 [1007] ANDY'S LANDSCAPE AND TREE SERVICE (3803) 0016334 4/26/2023 [1008] ANIMAL ACTION LEAGUE INC
0016335 4/26/2023 [1017] AUTOZONE (0842)
0016336 4/26/2023 [2246] CALTRANS
0016337 4/26/2023 [1052] CHARLES ABBOTT ASSOCIATES INC
0016338 4/26/2023 [1079] DATA TICKET INC
0016339 4/26/2023 [0467] BREANNE DUSASTRE
0016340 4/26/2023 [1106] FRONTIER
0016341 4/26/2023 [2183] JOE A GONSALVES & SON
0016342 4/26/2023 [3136] JONS FLAGS & POLES INC
0016343 4/26/2023 [3587] KEYSTONE RIDGE DESIGNS
0016344 4/26/2023 [0516] MATTHEW C KLINK
0016345 4/26/2023 [1890] KOSMONT COMPANIES (8271)
0016346 4/26/2023 [2022] LAMAR COMPANIES (8442)
0016347 4/26/2023 [1150] MARK SPEER AUTOMOTIVE (2109)
0016348 4/26/2023 [2507] MERRELL JOHNSON
0016349 4/26/2023 [3588] METLIFE SMALL BUSINESS CENTER
0016350 4/26/2023 [1167] MORONGO UNIFIED SCHOOL DISTRICT 0016351 4/26/2023 [1175] AARON NEVEU
0016352 4/26/2023 [1182] NV5 INC (8793)
0016353 4/26/2023 [1184] OFFICE DEPOT CREDIT PLAN
0016354 4/26/2023 [0001] ONE TIME VENDOR - THE HACIENDA MHP 0016355 4/26/2023 [0001] ONE TIME VENDOR - EILEEN LESLIE 0016356 4/26/2023 [1192] PETTY CASH/CH
0016357 4/26/2023 [2591] PORTER EQUIPMENT
0016358 4/26/2023 [2355] RELIANCE STANDARD LIFE INSURANCE CO. 0016359 4/26/2023 [1210] ROTARY CLUB OF TWENTYNINE PALMS 0016360 4/26/2023 [1213] SAN BERNARDINO CO SHERIFFS DEPT 0016361 4/26/2023 [1230] SCE
0016362 4/26/2023 [1249] SPECTRUM
0016363 4/26/2023 [1249] SPECTRUM
0016364 4/26/2023 [1249] SPECTRUM
0016365 4/26/2023 [3708] TANGUAY COMMUNICATIONS
0016366 4/26/2023 [0531] AMY TESSIER
0016367 4/26/2023 [1189] UNIVERUS SOFTWARE CANADA INC
0016368 4/26/2023 [1271] VCA 29 PALMS ANIMAL HOSPITAL (0319) 0016369 4/26/2023 [1273] VERIZON WIRELESS
0016370 4/26/2023 [0171] CYNTHIA VILLESCAS
0016371 4/26/2023 [1133] VISUAL EDGE IT, INC
0016372 4/26/2023 [1274] VSP
0016373 4/26/2023 [1275] VICKIE (3145) WAITE
0016374 4/26/2023 [1996] WINTER ROOFING (8412)
1,475.00
1,975.00
166.00
318.01
250.00
28,878.75
125.00
280.37
103.54
3,000.00
3,603.16
8,749.40

16.45 117.00
1,000.00
203.04
8,064.00
4,510.98
2,133.60
472.00
97,364.38
615.18

75.90 448.00

80.75 1,901.02
2,089.50
9,975.63
424,134.00
975.24

12.53 119.99
1,179.00
1,000.00

54.12 5,215.50

88.00 308.28

96.01 381.94
668.70
300.00
60,077.00
Run: 6/07/2023 at 10:19 AM Page: 1

Page 18 of 214 ends

0016375 4/27/2023 [3056] SOAP SUDS CLEANING SERVICE (9049) 1,790.00 0016376 5/04/2023 [2680] AIS 50.17
0016377 5/04/2023 [3713] ALEXANDRO G. ROMO 600.00
0016378 5/04/2023 [3121] AMERICAN EXPRESS 5,604.37
0016379 5/04/2023 [2326] ANIMAL CARE EQUIPMENT AND SERVICE 525.42 0016380 5/04/2023 [1037] BURRTEC WASTE & RECYCLING (2692) 532,120.80 0016381 5/04/2023 [3709] CA STATE DISBURSEMENT UNIT 85.00 0016383 5/04/2023 [1053] CINTAS CORPORATION (8315) 668.05 0016384 5/04/2023 [3640] CIVICPLUS LLC 1,884.75
0016385 5/04/2023 [1070] CNTY SAN BERDO CLERK BRD SUPERVISORS 50.00 0016386 5/04/2023 [1103] FRANCOTYP-POSTALIA INC 209.95
0016387 5/04/2023 [1106] FRONTIER 46.00
0016388 5/04/2023 [1106] FRONTIER 6.55
0016389 5/04/2023 [1112] GLOBAL ENVIRONMENTAL PROD INC 3,092.49 0016390 5/04/2023 [1123] HIGH TECH IRRIGATION INCORPORATED 5,885.08 0016391 5/04/2023 [2164] INNOVATIVE FEDERAL STRATEGIES LLC 3,800.00 0016392 5/04/2023 [3685] K2AWARDS 63.58
0016393 5/04/2023 [3660] KIMBERLY K. JOHNSON 1,415.00
0016394 5/04/2023 [3688] LCR EARTHWORK 20,895.91
0016395 5/04/2023 [1149] LLOYD PEST CONTROL CO INC (8202) 499.00 0016396[VOID] 5/04/2023 [3712] MARIACHI LLANOS DE MICHOACAN 1,600.00 0016397 5/04/2023 [1150] MARK SPEER AUTOMOTIVE (2109) 1,895.06 0016398 5/04/2023 [1151] ELIJAH (2503) MARSHALL 468.00
0016399 5/04/2023 [1182] NV5 INC (8793) 13,757.72
0016400 5/04/2023 [0001] ONE TIME VENDOR - RYAN HEFFINGTON 122.00 0016401 5/04/2023 [0001] ONE TIME VENDOR - BEVERLY LUSSOW 26.19 0016402 5/04/2023 [0001] ONE TIME VENDOR - GABRIELA VELA 143.26 0016403 5/04/2023 [0001] ONE TIME VENDOR - JUERGEN BLAEUL 26.73 0016404 5/04/2023 [0001] ONE TIME VENDOR - MATT FLAKE 167.53 0016405 5/04/2023 [0001] ONE TIME VENDOR - JUSTIN LIE DI LUE 33.62 0016406 5/04/2023 [3382] PARTYLIFE PHOTOBOOTH 600.00
0016407 5/04/2023 [2231] PAYCHEX INC 1,054.10
0016408 5/04/2023 [2591] PORTER EQUIPMENT 3,133.80
0016409 5/04/2023 [1203] REACH OUT MORONGO BASIN (5005) 11,426.69 0016410 5/04/2023 [2396] SAN BERNARDINO COUNTY-CSA 197.11 0016411 5/04/2023 [1230] SCE 7,319.12
0016412 5/04/2023 [1231] SPARKLETTS 401.67
0016413 5/04/2023 [1249] SPECTRUM 119.99
0016414 5/04/2023 [1249] SPECTRUM 149.98
0016415 5/04/2023 [1249] SPECTRUM 119.98
0016416 5/04/2023 [1249] SPECTRUM 164.99
0016417 5/04/2023 [1243] THE GAS COMPANY 2,405.85
0016418 5/04/2023 [1246] THE VAN DYKE CORP (0750) 1,200.00 0016419 5/04/2023 [2201] TRANSUNION RISK AND ALTERNATIVE 75.00 0016420 5/04/2023 [1254] TROPHY EXPRESS 55.92
0016421 5/04/2023 [1259] TWENTYNINE PALMS WATER DISTRICT 2,931.20 0016422 5/04/2023 [1267] UTILITY COST MANAGEMENT LLC 1,528.55 0016423 5/04/2023 [1269] VALIC C/O JP MORGAN CHASE 1,971.66 0016424 5/04/2023 [3710] YUCCA AUTO BODY 10,826.91
0016425 5/10/2023 [1506] A NEW CREATION FLOWERS & GIFTS (2187) 404.10 0016426 5/10/2023 [3581] ADVANCED IMAGING SOLUTIONS 198.62 Run: 6/07/2023 at 10:19 AM Page: 2

Page 19 of 214 ends

0016427 5/10/2023 [1008] ANIMAL ACTION LEAGUE INC 498.66 0016428 5/10/2023 [2326] ANIMAL CARE EQUIPMENT AND SERVICE 1,557.30 0016429 5/10/2023 [1017] AUTOZONE (0842) 66.46
0016430 5/10/2023 [3652] BANNER BANK 6,706.50
0016431 5/10/2023 [1137] BILL'S DIESEL 540.00
0016432 5/10/2023 [1027] BLUE DIAMOND MATERIALS 600,005.96 0016433 5/10/2023 [3288] BOGH ENGINEERING, INC. (9150) 28,265.63 0016434 5/10/2023 [3288] BOGH ENGINEERING, INC. (9150) 1,487.67 0016435 5/10/2023 [3650] CALIFORNIA COMMERCIAL POOLS 127,423.50 0016436 5/10/2023 [1046] CAMPBELL PET CO 969.68
0016437 5/10/2023 [3598] CANON SOLUTIONS AMERICA 97.97
0016438 5/10/2023 [3658] CAROLLO ENGINEERS, INC 68,519.00 0016439 5/10/2023 [1053] CINTAS CORPORATION (8315) 358.82 0016440 5/10/2023 [3448] CIRA 922.95
0016441 5/10/2023 [3659] CITIZENS BUSINESS BANK 552.30
0016442 5/10/2023 [3701] CIVITAS ADVISORS 6,240.00
0016443 5/10/2023 [1062] COMPANION ANIMAL CLINIC 56.66
0016444 5/10/2023 [1063] COMPUTERWORKS NFP SOLUTIONS 3,250.00 0016445 5/10/2023 [3568] CV STRATEGIES 3,200.00
0016446 5/10/2023 [1087] DESERT HARDWARE (0301) 2,048.24 0016447 5/10/2023 [3648] FEC ELECTRIC 12,311.71
0016448 5/10/2023 [1100] FEDEX 34.86
0016449 5/10/2023 [1102] FORENSIC DTS INC 89.00
0016450 5/10/2023 [1106] FRONTIER 91.32
0016451 5/10/2023 [1106] FRONTIER 262.89
0016452 5/10/2023 [1109] GALLS LLC 521.11
0016453 5/10/2023 [2696] HARRELL'S 19,030.00
0016454 5/10/2023 [3647] INLAND BUILDING CONSTRUCTION 8,089.02 0016455 5/10/2023 [3712] MARIACHI LLANOS DE MICHOACAN 1,600.00 0016456 5/10/2023 [1167] MORONGO UNIFIED SCHOOL DISTRICT 3,513.28 0016457 5/10/2023 [0001] ONE TIME VENDOR - BOY SCOUT TROOP 229 300.00 0016458 5/10/2023 [0001] ONE TIME VENDOR - DEPIERRO DEVELOPMENT 10.00 0016459 5/10/2023 [1036] PARKER'S BUILDING SUPPLY 29 PALMS (8036) 1,240.96 0016460 5/10/2023 [2538] PATRICIA O'ROURKE (V0051) - PATRICIA O'ROURKE 338.48 0016461 5/10/2023 [1193] PETTY CASH/REC 150.00
0016462 5/10/2023 [3649] PRO-CRAFT CONSTRUCTION 10,493.70 0016463 5/10/2023 [2499] RACKSPACE US, INC 5,415.69
0016464 5/10/2023 [1213] SAN BERNARDINO CO SHERIFFS DEPT 96,332.07 0016465 5/10/2023 [2268] SAN BERNARDINO COUNTY-RADIO 108.76 0016466 5/10/2023 [1230] SCE 14,031.20
0016467 5/10/2023 [3590] SOUTHWEST PROTECTIVE 2,772.00
0016468 5/10/2023 [1249] SPECTRUM 144.03
0016469 5/10/2023 [3708] TANGUAY COMMUNICATIONS 1,000.00 0016470 5/10/2023 [2484] TERRA NOVA PLANNING & RESEARCH INC. (9096) 9,672.43 0016471 5/10/2023 [1246] THE VAN DYKE CORP (0750) 4,582.56 0016472 5/10/2023 [2919] TILDEN COIL CONSTRUCTORS 48,055.20 0016473 5/10/2023 [2875] TOPS N BARRICADES INC 3,586.58 0016474 5/10/2023 [1300] TRIAD REALTORS (0101) 4,184.48 0016475 5/10/2023 [1259] TWENTYNINE PALMS WATER DISTRICT 87.78 0016476 5/10/2023 [1268] VAGABOND WELDING SUPPLY 25.88
0016477 5/10/2023 [1271] VCA 29 PALMS ANIMAL HOSPITAL (0319) 270.00 Run: 6/07/2023 at 10:19 AM Page: 3

Page 20 of 214 ends

0016478 5/10/2023 [1272] VCA YUCCA VALLEY 56.66
0016480 5/10/2023 [1287] XEROX FINANCIAL SVC 1,027.26
0016481 5/10/2023 [1744] YUNEX LLC 550.00
0016482 5/10/2023 [0382] JIMMY SHRAGGE 1,057.74
0016483 5/10/2023 [0382] JIMMY SHRAGGE 1,541.81
0016484 5/17/2023 [1005] AFLAC 865.60
0016485 5/17/2023 [1010] ANIMAL HEALTH AND SANITARY SUPPLY 1,626.63 0016486 5/17/2023 [1014] ARROWHEAD CREDIT UNION 11,094.55 0016487 5/17/2023 [3591] AVCOM SERVICES 834.80
0016488 5/17/2023 [3703] AVIR, INC 35,768.69
0016489 5/17/2023 [1053] CINTAS CORPORATION (8315) 115.29 0016490 5/17/2023 [1038] CMRSFP 900.00
0016491 5/17/2023 [1106] FRONTIER 45.14
0016492 5/17/2023 [1107] FULTON DISTRIBUTING 492.25
0016493 5/17/2023 [3632] INLAND EMPIRE TOURISM COUNCIL 1,229.81 0016494 5/17/2023 [3136] JONS FLAGS & POLES INC 608.46
0016495 5/17/2023 [0291] JOEL ANTHONY KLINK 145.41
0016496 5/17/2023 [0175] DANIEL MINTZ SR 145.41
0016497 5/17/2023 [1181] NRPA 470.00
0016498 5/17/2023 [0001] ONE TIME VENDOR - EXPLORER POST 870 300.00 0016499 5/17/2023 [0001] ONE TIME VENDOR - MOMO G'S PET OASIS 75.90 0016500 5/17/2023 [0001] ONE TIME VENDOR - SARKIS PELTAKIAN-ADOBE AUTO 110.90 0016501 5/17/2023 [0001] ONE TIME VENDOR - SHARON BISHOP 1,000.00 0016502 5/17/2023 [0001] ONE TIME VENDOR - JAKE POSSEHL 342.48 0016503 5/17/2023 [1230] SCE 335.55
0016504 5/17/2023 [1224] SKY'S THE LIMIT (3503) 2,250.00 0016505 5/17/2023 [2669] STATE WATER RESOURCES CONTROL BOARD 912.00 0016506 5/17/2023 [1239] SWANK MOTION PICTURES INC 3,255.00 0016507 5/17/2023 [1252] TPHS 300.00
0016508 5/17/2023 [1255] TURF STAR INCORPORATED 25,407.27 0016509 5/17/2023 [1269] VALIC C/O JP MORGAN CHASE 1,971.66 0016510 5/17/2023 [1271] VCA 29 PALMS ANIMAL HOSPITAL (0319) 413.78 0016511 5/17/2023 [1133] VISUAL EDGE IT, INC 498.67
0016512 5/24/2023 [3694] BEAUMONT COMMUNITY YOUTH BASKETBALL 2,400.00 0016513 5/24/2023 [1052] CHARLES ABBOTT ASSOCIATES INC 111,919.33 0016514 5/24/2023 [3568] CV STRATEGIES 2,631.25
0016515 5/24/2023 [3568] CV STRATEGIES 2,443.75
0016516 5/24/2023 [1079] DATA TICKET INC 660.80
0016517 5/24/2023 [1100] FEDEX 46.57
0016518 5/24/2023 [1106] FRONTIER 104.32
0016519 5/24/2023 [1134] INTERVET INC 770.18
0016520 5/24/2023 [2183] JOE A GONSALVES & SON 3,000.00 0016521 5/24/2023 [3715] KNC CONSTRUCTION, INC 36,375.50 0016522 5/24/2023 [2432] KOA CORP (9174) 1,202.00
0016523 5/24/2023 [2022] LAMAR COMPANIES (8442) 1,000.00 0016524 5/24/2023 [2367] MIDAMERICA 492.00
0016525 5/24/2023 [1177] NEWCO DISTRIBUTORS INCORPORATED 1,731.96 0016526 5/24/2023 [1182] NV5 INC (8793) 11,908.75
0016527 5/24/2023 [1184] OFFICE DEPOT CREDIT PLAN 746.06 0016528 5/24/2023 [0001] ONE TIME VENDOR - BRUCE VOLLZ 248.11 0016529 5/24/2023 [0001] ONE TIME VENDOR - ANGELA MENA 478.64 Run: 6/07/2023 at 10:19 AM Page: 4

Page 21 of 214 ends

0016530 5/24/2023 [2355] RELIANCE STANDARD LIFE INSURANCE CO. 2,051.14 0016531 5/24/2023 [2230] SAN BERNARDINO CO REGISTRAR OF VOTERS 2,501.00 0016532 5/24/2023 [1230] SCE 928.62
0016533 5/24/2023 [3056] SOAP SUDS CLEANING SERVICE (9049) 1,790.00 0016534 5/24/2023 [1249] SPECTRUM 12.53
0016535 5/24/2023 [1249] SPECTRUM 129.99
0016536 5/24/2023 [1249] SPECTRUM 159.98
0016537 5/24/2023 [1249] SPECTRUM 1,179.00
0016538 5/24/2023 [1178] SPRINT 110.21
0016539 5/24/2023 [1252] TPHS 955.00
0016540 5/24/2023 [1270] VALLEY INDEPENDENT PRINTING 348.00 0016541 5/24/2023 [1271] VCA 29 PALMS ANIMAL HOSPITAL (0319) 373.00 0016542 5/24/2023 [1272] VCA YUCCA VALLEY 158.90
0016543 5/24/2023 [0171] CYNTHIA VILLESCAS 69.69
0016544 5/24/2023 [1274] VSP 668.70
0016545 5/24/2023 [1275] VICKIE (3145) WAITE 300.00
0016546 5/24/2023 [2528] WELLS FARGO VENDOR FIN SERV 100.39 0016547 5/31/2023 [2463] 4 SPORTS N' MORE (8671) 480.99 0016548 5/31/2023 [2680] AIS 153.99
0016549 5/31/2023 [2680] AIS 130.00
0016550 5/31/2023 [3121] AMERICAN EXPRESS 2,553.69
0016551 5/31/2023 [1037] BURRTEC WASTE & RECYCLING (2692) 14,985.68 0016552 5/31/2023 [3716] CA DEPARTMENT OF INDUSTRIAL RELATIONS 658.75 0016553 5/31/2023 [1053] CINTAS CORPORATION (8315) 357.43 0016554 5/31/2023 [1103] FRANCOTYP-POSTALIA INC 262.60
0016555 5/31/2023 [1149] LLOYD PEST CONTROL CO INC (8202) 499.00 0016556 5/31/2023 [0394] FRANK LUCKINO 526.95
0016557 5/31/2023 [1150] MARK SPEER AUTOMOTIVE (2109) 69.80 0016558 5/31/2023 [3588] METLIFE SMALL BUSINESS CENTER 4,510.98 0016559 5/31/2023 [1175] AARON NEVEU 824.00
0016560 5/31/2023 [1182] NV5 INC (8793) 22,950.00
0016561 5/31/2023 [0001] ONE TIME VENDOR - TROOP 77 300.00 0016562 5/31/2023 [0001] ONE TIME VENDOR - RANDALL VANTINE (COMBAT 186.90 0016563 5/31/2023 [0001] ONE TIME VENDOR - MARIE RUELAS 186.90 0016564 5/31/2023 [0328] JACQUELINE PALMER 142.79
0016565 5/31/2023 [1191] PELICAN CLUB 140.00
0016566 5/31/2023 [3643] RANDYS AUDIO 319.58
0016567 5/31/2023 [1213] SAN BERNARDINO CO SHERIFFS DEPT 424,134.00 0016568 5/31/2023 [1226] RON (2706) SOMMER 200.00
0016569 5/31/2023 [1231] SPARKLETTS 490.01
0016570 5/31/2023 [1249] SPECTRUM 119.99
0016571 5/31/2023 [1249] SPECTRUM 149.98
0016572 5/31/2023 [1249] SPECTRUM 119.99
0016573 5/31/2023 [1249] SPECTRUM 189.99
0016574 5/31/2023 [1259] TWENTYNINE PALMS WATER DISTRICT 257.10 0016575 5/31/2023 [1269] VALIC C/O JP MORGAN CHASE 1,971.66 0016576 5/31/2023 [1270] VALLEY INDEPENDENT PRINTING 1,143.60 0016577 5/31/2023 [1271] VCA 29 PALMS ANIMAL HOSPITAL (0319) 368.00 0016578 5/31/2023 [1271] VCA 29 PALMS ANIMAL HOSPITAL (0319) 37.60 0016579 5/31/2023 [1272] VCA YUCCA VALLEY 206.66
0016580 5/31/2023 [1273] VERIZON WIRELESS 308.28
Run: 6/07/2023 at 10:19 AM Page: 5

Page 22 of 214 ends

0016581 6/05/2023 [1191] PELICAN CLUB 70.00
3412141 4/20/2023 [2231] PAYCHEX INC 285.60
CCF043023 4/30/2023 [2412] CREDIT CARD FEES 3,667.46
CR042023 4/20/2023 [1044] CALPERS 396.35
DCPPE041623 4/20/2023 [1044] CALPERS 1,474.23
EFT 4/21/2023 84,491.66
EFT 4/21/2023 8,089.95
GA042023 4/20/2023 [1055] PAYROLL 246.92
HRA051523 5/15/2023 [2367] MIDAMERICA 7,107.82
NWOPPE 4/20/2023 [1172] NATIONWIDE RETIREMENT SOLUTIONS OB 170.46 NWPPE041623 4/20/2023 [1173] NATIONWIDE RETIREMENT SOLUTIONS 1,691.80 PRTX042123 4/21/2023 [1055] PAYROLL 20,018.19
RC041623 4/20/2023 [1044] CALPERS 17,824.49
Approved by: Date:

Total Checks: 3,328,747.64
Run: 6/07/2023 at 10:19 AM Page: 6

PAYROLL

Page 23 of 214 ends

Page 24 of 214 ends

Check Date
Warrant Register
PPBI Gen Chkng

16.45 117.00
1,000.00
203.04
8,064.00
4,510.98
2,133.60
472.00
97,364.38
615.18

75.90 448.00

80.75 1,901.02
2,089.50
9,975.63
424,134.00
975.24

12.53 119.99
1,179.00
1,000.00

54.12 5,215.50

88.00 308.28

96.01 381.94
668.70
300.00
60,077.00
Run: 6/07/2023 at 10:19 AM Page: 1

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Page 27 of 214 ends

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Page 29 of 214 ends

Total Checks: 3,328,747.64
Run: 6/07/2023 at 10:19 AM Page: 6

PAYROLL

Page 30 of 214 ends

STAFF REPORT
TO: City Council
FROM: Senior Finance Technician
FOR MEETING: Jun 13 2023
SUBJECT: Approval of Project Phoenix Warrant Register Totaling $10,822.80.

ATTACHMENTS:
• Project Phoenix Warrant
Register 061323

Page 31 of 214 ends

CITY OF TWENTYNINE PALMS WARRANT DATE: 06-13-23
Warrant Register
PPBI Gen Checkng
Check Date Vendor Check/Payment
16352 4/26/2023 [1182] NV5 INC 1607.65
16382 5/04/2023 [1052] CHARLES ABBOTT ASSOCIATES INC 142.50 16479 5/10/2023 [2394] WILLDAN 7,915.00
16486 5/17/2023 [1014] ARROWHEAD 1,157.65
Total Checks: 10,822.80
Approved by: ______________________ Date: ____________________

Page 32 of 214 ends

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Page 34 of 214 ends

STAFF REPORT
TO: City Council
FROM: City Manager
FOR MEETING: Jun 13 2023
SUBJECT: Annual Contract with San Bernardino County Sheriff's Department.

RECOMMENDATION:

The City Council approve the annual contract with the San Bernardino County Sheriff’s Department for Law Enforcement Services in the amount of $5,323,535 plus incidental expenses.

ORDER OF PROCEDURE:

Request Staff Report (City Manager Presenting)
Council Questions of Staff
Public Comment
Council Discussion
Motion/Second
Call the Question
ATTACHMENTS:
• Schedule A Contract
BACKGROUND:

The City contracts with the San Bernardino County Sheriff for law enforcement services. The contract provides for two patrol deputies at all times in addition to one traffic officer (40 hours per week), a school resource officer, two volunteer citizen patrol units, two detectives (one new detective for this fiscal year) and related support services. The juvenile officer works throughout the City, not primarily at the schools.

Cost for these services will be $5,323,535 for Fiscal Year 2023-2024. However, within the budget for Sheriff Contract Services, the line item has $5,688,271. The school resource officer costs the City $236,805 annually; however, this position is only spending approximately 50% of his/her hours for school related activities or $118,402.50. Morongo Unified School District (MUSD) provides the City with $118,403 towards this service or 50% of the direct cost. The other 50% of the deputy’s time is spent on patrol related functions, on a priority basis. The following are the services provided:
• Direct Calls for service from a school;
• Clean Sweep citation processing;
• Investigations involving students within the school system; • Truancy;
• Graffiti investigation;
In addition, the City has budgeted the following expenses:
$69,106 Overtime
$105,000 Vehicle Maintenance and Operation
$150,000 SLEF (Supplemental Local Law Enforcement
Services Funds)

Page 35 of 214 ends

$37,130 Cal ID Program
$3,500 Special Department Supplies
$2,000 Citizens on Patrol
The sheriff’s contract cost (schedule A) is 12.36% above last year’s contract, or $585,796. The services provided by the Sheriff’s Department are considered to be excellent. The City has the advantage of a well-trained force with many specialized teams that can be brought into the City as needed (such as the homicide investigation team) and at a reasonable cost.

Approval of the contract will provide for a continuation of services.

ENVIRONMENTAL:

Not Applicable.

ALTERNATIVES:

No alternatives would be available for this fiscal year.

FISCAL IMPACT:

Total services are budgeted at $5,688,271.

Page 36 of 214 ends

Standard Contract Page 1 of 4

THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY Sheriff/Coroner/Public Administrator
Department Contract Representative Kelly Welty, Chief Deputy Director of Sheriff’s Administration
Telephone Number (909) 387-0640
Contractor City of Twentynine Palms
Contractor Representative McArthur Wright, Mayor
Telephone Number (760) 367-6799
Contract Term 07/01/2023 through 06/30/2024
Original Contract Amount $5,323,535
Amendment Amount ---------------
Total Contract Amount $5,323,535
Cost Center 4414451000
IT IS HEREBY AGREED AS FOLLOWS:

AMENDMENT No. 32
Effective July 1, 2023, Contract No. 94-525 to provide law enforcement service to the City of Twentynine Palms is hereby amended by replacing Schedule A referred to in Section II. CONSIDERATION, with the Schedule A attached hereto and incorporated by reference.

Except as amended, all other terms and conditions of this contract remain as stated therein.

Contract Number
94-525 A-32
SAP Number
N/A

Page 37 of 214 ends

Revised 1/10/23 Page 2 of 4
[With the exception of signatures, this page is intentionally left blank].

FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department Richard D. Luczak, Deputy County Counsel Kelly Welty, Chief Deputy Director of Sheriff’s Administration
Date Date Date
SAN BERNARDINO COUNTY City of Twentynine Palms
(Print or type name of corporation, company, contractor, etc.) By
Dawn Rowe, Chair, Board of Supervisors (Authorized signature - sign in blue ink) Dated: Name McArthur Wright
SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract)

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

Deputy
Address 6136 Adobe Road
Twentynine Palms, CA 92277

Page 38 of 214 ends

Revised 1/10/23 Page 3 of 4

SCHEDULE A
Law Enforcement Services Contract
City of Twentynine Palms
2023-24
CHANGE: ADD 1 Additional MDC (Access Only)
FY 2023-24
COST

0.45 - Lieutenant 179,005 1

1.93 - Sergeant 654,420 1

2.22 - Detective/Corporal (80 hours per week) 632,101 1

9.30 - Deputy Sheriff (336 hours per week) 2,202,287 1

1.00 - Deputy Sheriff (non-relief) 236,805 1

1.00 - School Resource Officer 236,805 1

2.70 - Office Specialist 218,824 1

0.31 - Motor Pool Services Assistant 28,767 1

4.00 - Marked Unit 77,261 2

2.00 - Marked Unit - 4X4 SUV 45,579 2

2.00 - Unmarked Unit 17,133 2

1.00 - Pickup truck- Citizen Patrol 7,445 2

1.00 - Citizen Patrol Donated Hybrid SUV (Equip & Comm Only) 1,613 3 Dispatch Services 252,131 1

18.00 - HTs (Amortization, Access & Maintenance) 25,146

1.00 - Additional MDCs (Access Only) 571

15.00 - Taser Replacement (Amortized over 5-years) 5,040 Administrative Support 21,110
Office Automation 50,421
Vehicle Insurance 11,235
Personnel Liability & Bonding 311,158
Workers' Comp Experience Modification 28,462
County Administrative Cost 80,216
Cost for FY2023-24 $ 5,323,535 1,3,4
Monthly Payment Schedule
$443,638
2nd through 12th payments due the 5th of each month: $443,627 1 2
3 4 Services and Supplies will be billed to the City on a quarterly invoice.

No replacement cost is included for grant funded or donated vehicles.

LEVEL OF SERVICE
1st payment due July 15, 2023:

Personnel costs include salary and benefits and are subject to change by Board of Supervisors’ action. Changes in salary and benefit costs will be billed to the City on a quarterly invoice.

Vehicle costs do not include fuel and maintenance. The City is responsible for fuel, repair and maintenance of all contract vehicles, including collision damage. All fuel, repair and maintenance costs incurred by the County will be billed to the City on a quarterly invoice.

Page 39 of 214 ends

Revised 1/10/23 Page 4 of 4

SCHEDULE A
Law Enforcement Services Contract
City of Twentynine Palms
2023-24
Additional Costs Billed Quarterly:

The City will be billed on a quarterly basis for the following items:
• Increase to salaries and benefits resulting from Board of Supervisors-approved changes to Memorandums of Understanding with the County’s various employee organizations. • Actual overtime cost.
• Actual on-call cost (on call pay for safety employees for 2023-24 is $195 per week) • Actual cost of vehicle fuel, repair and maintenance, including the cost of collision repair. • Actual costs of services and supplies.

SAFETY: GENERAL:

Lieutenant - 0.45 Office Specialist - 2.70
Sergeant - 1.93 Motor Pool Service Assistant - 0.31
Detective/Corporal - 2.22 Dispatchers - 2.00
Deputy Sheriff - 10.30 5.01
School Resc Officer - 1.00

15.90 VEHICLES: DONATED VEHICLES LIST:

Marked Patrol Units - 4 Citizen On Patrol-Hybrid - 1 *
Marked Patrol Units-4x4 SUV - 2 DUI Trailer - 1 *
Safety Unmarked Units - 2 2 *
Citizen Patrol Pick-up - 1
Donated Vehicles-Ins Only - 2 *
11 * (Included for insurance costs only)

LEVEL OF SERVICE SUMMARY

Page 40 of 214 ends

STAFF REPORT
TO: City Council
FROM: City Manager
FOR MEETING: Jun 13 2023
SUBJECT: Accept the Luckie Park Pool Project.

RECOMMENDATION:

The City Council:

1. Accept the Twentynine Palms Luckie Pool Project as completed for a total cost of $4,884,904.00.

2. Direct the City Clerk to file the Notice of Completion for the contract work.

3. Direct the Finance Director to release retained funds 30 days after the filing of the Notice of Completion, provided no claims are filed against the contractor.

ORDER OF PROCEDURE:

Request Staff Report (City Manager Presenting)
Commission Questions of Staff
Receive Public Comment
Council Discussion
Motion/Second
Call the Question
ATTACHMENTS:
• LPR NOC - Pro-Craft
Construction Inc
• LPR NOC - The Van Dyke
Corporation (003)
• LPR NOC - Masonry Concepts
Inc (003)
• LPR NOC - Bogh Engineering
Inc (003)
• LPR NOC - California
Commercial Pools (003)
• LPR NOC - F.E.C.

Engineering Inc
• LPR NOC - Inland Building
Construction Companies Inc
(003)

Page 41 of 214 ends

BACKGROUND:

This project first came to the attention of the City Council during the Strategic Planning Session in January 2021, with this task making the "Top 10". With the additional funding from American Rescue Plan Act (ARPA), the project turned from a rehabilitation project to a full demo and rebuild so then appeared to be at $3.8M, including soft costs, from Tilden Coil's initial analysis (December 2021). Then in January 2022, Tilden Coil recommended additional funding due to the inflationary bidding environment along with the City Council adding the gutter system to the pool to make it more competitive for High School CIF competition; these two changes made the price for the pool at $4.7M.

However, given the current bidding market that has hyperinflation, the City had an actual bid opening on June 2, 2022 that drove the cost to $6.2M. Not only did the City demo the current pool and rebuild the pool, but also rebuilt the chemical building and bathrooms. With this rehabilitation, the City will be in compliance with the current standards from County Public Health.

ENVIRONMENTAL:

The contractor completed all environmental requirements for the project.

ALTERNATIVES:

None.

FISCAL IMPACT:

The projected fiscal impact is $6,175,803.00, of which $2,407,652.00 was paid with ARPA funds.

Page 42 of 214 ends

Recording Requested by:

City of Twentynine Palms
When Recorded mail to:

City of Twentynine Palms
Engineering Department
6136 Adobe Road
Twentynine Palms, CA 92277
Exempt from filing fees pursuant to
Government Code Section 6103.

FOR R

SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
(Public Work)
NOTICE IS HEREBY GIVEN, that

1. The undersigned, Paul Osterman, is the duly appointed and qualified Building Official of the owner of interest or estate stated below in the property hereinafter described:

2. The full name of the owner is: City of Twentynine Palms, a municipal corporation of the State of California, and which is located within the County of San Bernardino, in said State, and the address is 6136 Adobe Road, Twentynine Palms, California 92277.

3. That on the 17th day of June 2022 and pursuant to approval of the City Council of the said City, the City entered into a contract with Pro-Craft Construction, Inc. whose address is 500 Iowa Street, Redlands, CA 92373, to perform and complete all work required in connection with Luckie Pool Replacement in the City of Twentynine Palms, and in accordance with the City of Twentynine Palms' Plans and Specifications.

4. That all of the said work or improvement was located at: 5885 Luckie Ave, Twentynine Palms, CA 92277.

5. That all of the said work or improvement contemplated in and under said contract was completed on April 27, 2023, and accepted by Council action on June 12, 2023.

6. That the Surety on the Payment Bond of said Contractor and the surety on the Performance Bond of said Contractor, under said contract, was $522,000.00 and is $564,795.00.

The undersigned states: That the City of Twentynine Palms, the political subdivision of the State of California conducted the proceedings for the improvement located at 6136 Adobe Road, in said City, described or referred to in the foregoing "Notice of Completion”.

I certify under penalty of perjury that the foregoing is true and correct. __________________________________________________ DATE:

Building Official of the City of Twentynine Palms, California

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO

CITY OF TWENTYNINE PALMS

Page 43 of 214 ends

Recording Requested by:

City of Twentynine Palms
When Recorded mail to:

City of Twentynine Palms
Engineering Department
6136 Adobe Road
Twentynine Palms, CA 92277
Exempt from filing fees pursuant to
Government Code Section 6103.

FOR R

SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
(Public Work)
NOTICE IS HEREBY GIVEN, that

1. The undersigned, Paul Osterman, is the duly appointed and qualified Building Official of the owner of interest or estate stated below in the property hereinafter described:

3. That on the 17th day of June 2022 and pursuant to approval of the City Council of the said City, the City entered into a contract with The Van Dyke Corporation. whose address is 6797 Adobe Road, Twentynine Palms, CA 92277, to perform and complete all work required in connection with Luckie Pool Replacement in the City of Twentynine Palms, and in accordance with the City of Twentynine Palms' Plans and Specifications.

4. That all of the said work or improvement was located at: 5885 Luckie Ave, Twentynine Palms, CA 92277.

5. That all of the said work or improvement contemplated in and under said contract was completed on April 27, 2023, and accepted by Council action on June 12, 2023.

6. That the Surety on the Payment Bond of said Contractor and the surety on the Performance Bond of said Contractor, under said contract, was $292,000.00 and is $277,520.00.

I certify under penalty of perjury that the foregoing is true and correct. __________________________________________________ DATE:

Building Official of the City of Twentynine Palms, California

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO

CITY OF TWENTYNINE PALMS

Page 44 of 214 ends

Recording Requested by:

City of Twentynine Palms
When Recorded mail to:

City of Twentynine Palms
Engineering Department
6136 Adobe Road
Twentynine Palms, CA 92277
Exempt from filing fees pursuant to
Government Code Section 6103.

FOR R

SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
(Public Work)
NOTICE IS HEREBY GIVEN, that

1. The undersigned, Paul Osterman, is the duly appointed and qualified Building Official of the owner of interest or estate stated below in the property hereinafter described:

3. That on the 17th day of June 2022 and pursuant to approval of the City Council of the said City, the City entered into a contract with Masonry Concepts, Inc., whose address is 15408 Cornet Street, Sante Fe Springs, CA 90670, to perform and complete all work required in connection with Luckie Pool Replacement in the City of Twentynine Palms, and in accordance with the City of Twentynine Palms' Plans and Specifications.

4. That all of the said work or improvement was located at: 5885 Luckie Ave, Twentynine Palms, CA 92277.

5. That all of the said work or improvement contemplated in and under said contract was completed on April 27, 2023, and accepted by Council action on June 12, 2023.

6. That the Surety on the Payment Bond of said Contractor and the surety on the Performance Bond of said Contractor, under said contract, was $230,000.00 and is $220,000.00.

I certify under penalty of perjury that the foregoing is true and correct. __________________________________________________ DATE:

Building Official of the City of Twentynine Palms, California

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO

CITY OF TWENTYNINE PALMS

Page 45 of 214 ends

Recording Requested by:

City of Twentynine Palms
When Recorded mail to:

City of Twentynine Palms
Engineering Department
6136 Adobe Road
Twentynine Palms, CA 92277
Exempt from filing fees pursuant to
Government Code Section 6103.

FOR R

SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
(Public Work)
NOTICE IS HEREBY GIVEN, that

1. The undersigned, Paul Osterman, is the duly appointed and qualified Building Official of the owner of interest or estate stated below in the property hereinafter described:

3. That on the 17th day of June 2022 and pursuant to approval of the City Council of the said City, the City entered into a contract with Bogh Engineering, Inc., whose address is 401 West 4th Street, Beaumont, CA 92223, to perform and complete all work required in connection with Luckie Pool Replacement in the City of Twentynine Palms, and in accordance with the City of Twentynine Palms' Plans and Specifications.

4. That all of the said work or improvement was located at: 5885 Luckie Ave, Twentynine Palms, CA 92277.

5. That all of the said work or improvement contemplated in and under said contract was completed on April 27, 2023, and accepted by Council action on June 12, 2023.

6. That the Surety on the Payment Bond of said Contractor and the surety on the Performance Bond of said Contractor, under said contract, was $730,240.00 and is $754,946.00.

I certify under penalty of perjury that the foregoing is true and correct. __________________________________________________ DATE:

Building Official of the City of Twentynine Palms, California

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO

CITY OF TWENTYNINE PALMS

Page 46 of 214 ends

Recording Requested by:

City of Twentynine Palms
When Recorded mail to:

City of Twentynine Palms
Engineering Department
6136 Adobe Road
Twentynine Palms, CA 92277
Exempt from filing fees pursuant to
Government Code Section 6103.

FOR R

SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
(Public Work)
NOTICE IS HEREBY GIVEN, that

1. The undersigned, Paul Osterman, is the duly appointed and qualified Building Official of the owner of interest or estate stated below in the property hereinafter described:

3. That on the 17th day of June 2022 and pursuant to approval of the City Council of the said City, the City entered into a contract with California Commercial Pools, Inc., whose address is 2255 Auto Centre Dr, Glendora, CA 91740, to perform and complete all work required in connection with Luckie Pool Replacement in the City of Twentynine Palms, and in accordance with the City of Twentynine Palms' Plans and Specifications.

4. That all of the said work or improvement was located at: 5885 Luckie Ave, Twentynine Palms, CA 92277.

5. That all of the said work or improvement contemplated in and under said contract was completed on April 27, 2023, and accepted by Council action on June 12, 2023.

6. That the Surety on the Payment Bond of said Contractor and the surety on the Performance Bond of said Contractor, under said contract, was 2,695,000 and is 2,670,271.

I certify under penalty of perjury that the foregoing is true and correct. __________________________________________________ DATE:

Building Official of the City of Twentynine Palms, California

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO

CITY OF TWENTYNINE PALMS

Page 47 of 214 ends

Recording Requested by:

City of Twentynine Palms
When Recorded mail to:

City of Twentynine Palms
Engineering Department
6136 Adobe Road
Twentynine Palms, CA 92277
Exempt from filing fees pursuant to
Government Code Section 6103.

FOR R

SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
(Public Work)
NOTICE IS HEREBY GIVEN, that

1. The undersigned, Paul Osterman, is the duly appointed and qualified Building Official of the owner of interest or estate stated below in the property hereinafter described:

3. That on the 17th day of June 2022 and pursuant to approval of the City Council of the said City, the City entered into a contract with F.E.C. Engineering, Inc., whose address is P.O Box 77, Redlands, CA 92373, to perform and complete all work required in connection with Luckie Pool Replacement in the City of Twentynine Palms, and in accordance with the City of Twentynine Palms' Plans and Specifications.

4. That all of the said work or improvement was located at: 5885 Luckie Ave, Twentynine Palms, CA 92277.

5. That all of the said work or improvement contemplated in and under said contract was completed on April 27, 2023, and accepted by Council action on June 12, 2023.

6. That the Surety on the Payment Bond of said Contractor and the surety on the Performance Bond of said Contractor, under said contract, was $91,225.00 and is $95,525.00.

I certify under penalty of perjury that the foregoing is true and correct. __________________________________________________ DATE:

Building Official of the City of Twentynine Palms, California

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO

CITY OF TWENTYNINE PALMS

Page 48 of 214 ends

Recording Requested by:

City of Twentynine Palms
When Recorded mail to:

City of Twentynine Palms
Engineering Department
6136 Adobe Road
Twentynine Palms, CA 92277
Exempt from filing fees pursuant to
Government Code Section 6103.

FOR R

SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
(Public Work)
NOTICE IS HEREBY GIVEN, that

1. The undersigned, Paul Osterman, is the duly appointed and qualified Building Official of the owner of interest or estate stated below in the property hereinafter described:

3. That on the 17th day of June 2022 and pursuant to approval of the City Council of the said City, the City entered into a contract with Inland Building Construction Companies, Inc. whose address is 323 S. Sierra Way, San Bernardino, CA 92408, to perform and complete all work required in connection with Luckie Pool Replacement in the City of Twentynine Palms, and in accordance with the City of Twentynine Palms' Plans and Specifications.

4. That all of the said work or improvement was located at: 5885 Luckie Ave, Twentynine Palms, CA 92277.

5. That all of the said work or improvement contemplated in and under said contract was completed on April 27, 2023, and accepted by Council action on June 12, 2023.

6. That the Surety on the Payment Bond of said Contractor and the surety on the Performance Bond of said Contractor, under said contract, was and is $290,000.00 and $301,938.00.

I certify under penalty of perjury that the foregoing is true and correct. __________________________________________________ DATE:

Building Official of the City of Twentynine Palms, California

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO

CITY OF TWENTYNINE PALMS

Page 49 of 214 ends

Page 50 of 214 ends

STAFF REPORT
TO: City Council
FROM: City Manager
FOR MEETING: Jun 13 2023
SUBJECT: Fire Station Lease.

RECOMMENDATION:

The City Council approve the Fire Station lease with the County of San Bernardino for the use by San Bernardino County Fire as a Fire Station.

ORDER OF PROCEDURE:

Request Staff Report (City Manager Presenting)
Council Questions of Staff
Receive Public Comment
Council Discussion
Motion/Second
Call the Question
ATTACHMENTS:
• SBCounty Contract #16-254
Fire Dept Building
BACKGROUND:

As part of the annexation of the Twentynine Palms Water District's Fire Service into San Bernardino County Fire, the City purchased the Fire Station from the Water District to then be leased to the San Bernardino County Fire District. The initial lease period was seven years. This is the renewal of the lease increasing it to ten years.

ENVIRONMENTAL:

Not Applicable.

ALTERNATIVES:

The City Council could choose to add, change, or delete items within the lease.

FISCAL IMPACT:

Annual Rent in the first year is $35,208 with a 2% annual escalator for ten years.

Page 51 of 214 ends

#16-254 ontract
Amendment irst

WHEREAS, S
a
n
Palms and the of Twentynine City Dstrict (“COUNTY”) Ber Fire Protection nar
din
o
(“LANDLORD”)have 20165, (“the dated May Contract No.16-254 Lease Agreement, into aentered Lease”) wherein LA
ND
LO
RD
square feet of building comprising 7,051 approximately premises, certain leases located at 6560 Ado
be
2023, but has Plms, CA, 30, June for that expired onRo aterm Twentynine in ad, continued on permitt
ed
and, holdover; m
on
thtom
on
th
WHE
REAS
,
the Lease reflect permited (2) two amend todesire now LANDLORD toand COUN TY month permi
tted
of LANDLORD 2023 31, the August consent 1, through with July 2023 hold from period over granted here
in,
years for period the Lease holdover, of tenrm extend said permitted followin and g from Septem
ber
schedule, amend othr and certain 31, 2033, the rental August adjust 2023 rate 1, through terms of the and, Amendment); (“First this amendment forth specifically asmore set in Contractor Contractor Representat
ive Telephone Number
Contract Term
Original Contract Am
ount Amendment Amount
Total Contract Amoun
t Cost Center
GRC/PROJ/JOB No.

City of 29 Palms
Frank J. Luckino, Ci
ty
M
a
n
a
g
er
1760}367-6799
7/1/2016 — 8/31/2033
$228,012.00
$391 ,352.00
$619,364.00
6100442454
79004369
herein, contained the and conditions the mutual THEREF covenants consideration of Nin ORE, parti
es
follows: isasLease amended thate heagree
ret
o
R
ea
l
Department Services Est
ate
Depa
rtme
nt
Representative Contract
Tele
phon
e
Numbe
r
T
H
E

USE ONLY THE CONTRACT AND ISFOR OFCOUNTY BX NOT PART THIS AIN FO
R
M
AT
IO
N
Ter
gy
Director Thom
pson, (
909
)
3 8
7-
5 0
0 0

IT IS HE
REB
Y
AS FOLLOWS: AGR
EED
INO R
N
A S
C
Con
tract
Numb
erA-1 Nu
mb
er
S
tan
d
a
r
Contract
Pa
ge
of 41 Page 52 of 214
“6. OPTION TO toextend the LANDLORD gives COUNTY option term TERM:
of the Lease on the rent, five- (2) conditions, twohe and for monthly except provisi ons year periods ("
extend
ed
Term, byCOUNTY the First Extended of following expiration terms ") giving notice of its the of LANDLORD the expiration option prior toexercise preceding term or d
u
ri
n
g
The HOLDING OVER. any rent Paragraph holding pursuant 8, over to for each extended t
e
r
negotiation parties fair of the market tobefaith adjusted bygood sha ll rental rate then pre
vai
lin
g
leased of comparable property San bsed the rentalates inupon Bernardino County.

September 1, 2023 — Au
gust
—2024 31, $2934.00 monthly of payments
September 1, 2024 — Au
gust
—2025 $2,993.00 of monthly 31, payments
September 1, 2025 — Au
gust
—31, $3053.00 of monthly 2026 payments
September 1, 2026 — Au
gust
—2027 31, $3114.00 monthly of payments
September 1, 2027 — Au
gust
—$3,177.00 31, of monthly 2028 payments
September 1, 2028 — Au
gust
—$3,240.00 31. of monthly 2029 payments
September 1, 2029 — Au
gust
-31, $3304.00 of monthly 2030 payments
September 1, 2030 — Au
gust
—$3,371.00 31, of monthly 2031 payments
September 1, 2031 — Au
gust
—$3,439.00 31, of monthly 2032 payments
September 1, 2032 — Au
gust
—$3,508.00 31, of monthly 2033 payments
Ifthe parties have five (5) months upon said rental the fair market within torate unable agree of the COUNTY's term, said fr market rental option rate for extended exercise anto shall be determine
d
Arbitration the Commercial conducted accordance arbitration with thr in ou
gh
Rules of the Am
eric
an
isdetermined the fair market rental byrate Association. Arbitr If ation arbitration, the C
O
U
N
T
Y
the notice tohe Lease bytermination giving tohas right terminate LANDLORD with
in
rental The rate. cost notified of the fair market days of new bing (30) th ir
ty
of arbitration shallparties. evenly between the split

1. OVER, the shall, LANDLORD’s express HOLDING COUNTY with 8, Paragraph toP ur
su
an
t
consent gran
ted
1, from July period 2023 atwo-month holdover for Premises onatenancy herei the occupy n, through Aug
ust
Twohousand and 00/100 of Eight Seventy-Eight rental Hundred monthly amount 31, a2023t ($2,878.00) Fifty- Seven-Hundred rent Thousand for ttal of Five period, athe holdover during Six and 00/
100
holdover period. said month for (2) two ($5 Dollars
,75

6. 00)
existing OPTION TOParagraph 2033, 6., 1, delete the its entirety Effective September in4 . EXTE
ND
TERM,Ofollowing Paragraph OPTION anew 6., the EXTEND therefore asSUBSTITUTE Tand E
R
M,
which read follows: as
inrental the monthly LANDLORD following payments shall COUN pay to TY arrears commencing the First Extended Term month when last of each before the day or comme
nces
continuing the and during term:

RENT, and existing A., the Paragraph entirety 2023, ints 1, 4. September DELETE Effective 3.

SUB
STI
TUT
E
RENT, 4.A., read follows: Paragraph which shall asthe new following astherefore and etirety existing TERM, Paragraph 2023, its 3., 1, the September DELETE inEffective 2.

SUB
STI
TUT
E
TERM, read follows: asParagraph 3., whichill the anew following astherefore “3. onExtended shall Term”) commence (“First term The extended Lease’s T E
R
M
:

Sept
emb
er
31, Date”).” August 2033 (“Ending 2023 1, and oexpire
R
E
N
R
e
v
is
e
d
1/10/23
Pa
ge
of 24 Page 53 of 214

6. All other p
r
o
v
i
s
i
o
n
s
and terms of the Lease shall remain and same are hereby incorporated by reference. In the ev
en
t
any of conflict between the oferms the Lease and this First Amendment, the provisions and terms of t
h
i
s
Fir Amend shall control.
stment

7. This First bemay executed number any inof counterparts, each which soexecuted shall be deemed to be ori and suchhall counterparts together constitute one ad the same First gi
nal
, Amendment. The parties beentitled toand sign transmit ansignature electronic of this First Amendment (whether by facsimile, P
D
F
orther email transmission), which signature shall beinding the onparty whose name is contained therei
n.

Epartyroviding anelectronic agrees signature topromptly execute and deliver ac
h
to the other party an origi
nal
sig First Amendment upon request.
ned
“8 HOLDI
NG
OVthe Inevent COUNTY shall hold over and continue occupy to ER
:
the Premises express the implied or thef consent LANDLORD, theenancy shall be deemed to be from tmonth-to-month the upon same and terms conditions, including e
n
a
n
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Page 56 of 214 ends

STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: Jun 13 2023
SUBJECT: Designating Authorized Signers on the City's Bank Accounts.

RECOMMENDATION:

The City Council adopt Resolution No. 23-_, designating authorized signers on the City Bank Accounts.

ORDER OF PROCEDURE:

Request Staff Report (Finance Director Presenting)
Request Public Comment
Council Question of Staff
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Resolution 23_ Pacific Premier
Bank Signers
BACKGROUND:

Banks with whom the City does business with normally require a City Resolution designating which City officials are authorized to open bank accounts and to execute checks and other orders for payment of City funds. The City currently has two active accounts with Pacific Premier Bank, one is a general checking account (43505041) and one is for the Successor Agency Non-Housing Fund (1000361582). With the recent changes in the City's governing body, the City needs to update its authorized signers on the aforementioned bank accounts. This update includes adding Councilmember Octavious Scott as a new signer on both accounts and removing former Mayor Karmolette O'Gilvie from both accounts.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

The City Council could choose to add or remove any of the individuals listed.

FISCAL IMPACT:

None.

Page 57 of 214 ends

CITY OF TWENTYNINE PALMS

CITY COUNCIL
RESOLUTION NO. 23-__

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF TWENTYNINE PALMS DESIGNATING

AUTHORIZED SIGNERS ON CITY BANK

ACCOUNTS
WHEREAS, in the course of business for the City of Twentynine Palms ("City"), it establishes relationships with various financial institutions (“banks”) for purposes including, but not limited to, depository of City funds, investment of funds, borrowing money, or making payments on bonds and other debt issued by the City; and
WHEREAS, banks with whom the City does business normally require a City resolution designating which City officials are authorized to open bank accounts and to execute checks and other orders for payment of City funds; and WHEREAS, the City desires to designate certain City officials to open bank accounts and execute checks and other orders for payment of City funds;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TWENTYNINE PALMS, CALIFORNIA, RESOLVES AS FOLLOWS:

Section 1. As used in this Resolution, the term "Bank" shall mean any financial institution with whom, pursuant to this Resolution, the City establishes a banking relationship. A list of accounts active as of the date of this resolution is attached as Appendix A.

Section 2. That checks, drafts, or other orders for the payment, transfer, or withdrawal of any of the funds or other property of the City on deposit with a Bank shall be binding on the City when signed, manually or by use of a facsimile or mechanical signature or otherwise authorized, by any one of the individuals listed below as Authorized Signers, and the Bank is hereby authorized to pay and charge to the account of the City any such checks, drafts or other orders so signed or otherwise authorized, including those payable to the individual order of the same person or persons signing or otherwise authorizing the same and including also those payable to the Bank or to any other person for application, or which are actually applied to the payment of any such indebtedness owing the Bank from the person or persons who signed such checks, drafts, or other withdrawal orders or otherwise authorized such withdrawals. In particular, and not in limitation of foregoing, such persons may authorize payment, transfer, or withdrawal by oral or telephonic directions to the Bank complying with such rules and regulations relating to such authorization as the Bank may communicate to the City from time to time.

Page 58 of 214 ends

Section 3. That City’s Finance Director or Treasurer will certify to a Bank the names and signatures (either actual or any form or forms of facsimile or mechanical signatures adopted by the person authorized to sign) of the Authorized Signers listed below and shall notify the Bank of any change of the persons then authorized to sign or to act.

Section 4. That the holders of the following positions with the City are authorized to sign or act on behalf of the City ("Authorized Signers"):

Mayor: McArthur Wright
Councilmember: Steven Bilderain
Councilmember: Joel A. Klink and
Councilmember: Daniel L. Mintz, Sr.

Councilmember: Octavious Scott
City Manager: Frank J. Luckino
Section 5. That this Resolution shall continue in force until express written notice of its rescission or modification has been furnished to and received by a Bank.

PASSED, APPROVED, AND ADOPTED, on the 13th day of June 2023.

______________________
McArthur Wright, Mayor
ATTEST:
_______________________________
Cindy Villescas CMC, City Clerk
I hereby certify that the foregoing Resolution No. 23-__ was duly adopted by the City Council of the City of Twentynine Palms at a regular meeting thereof, held on the 13th day of June 2023, by the following vote of the Council:

AYES: COUNCILMEMBER:

NOES: COUNCILMEMBER:

ABSENT: COUNCILMEMBER:

ABSTAIN: COUNCILMEMBER:

_______________________________
Cindy Villescas CMC, City Clerk

Page 59 of 214 ends

Appendix A
Bank Name Account Number
Pacific Premier Bank General Account 43505041
Pacific Premier Bank Successor Agency Non-Housing 1000361582

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STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: Jun 13 2023
SUBJECT: Updating Information with the Local Agency Investment Fund (LAIF).

RECOMMENDATION:

The City Council adopt Resolution No. 23-___, updating the City's authorized officers to order the deposit or withdrawal of funds in the City's LAIF account.

ORDER OF PROCEDURE:

Request Staff Report (Finance Director Presenting)
Request Public Comment
Council Question of Staff
Council Discussion
Motion/Second
Discussion of Motion
Call the Question (voice vote)
ATTACHMENTS:
• LAIF Resolution 23_
BACKGROUND:

The City invests idle funds in the LAIF, currently about $9,000,000. Transfers in and out of the City's LAIF account can only be made by persons that have been pre-registered with LAIF. With the changes in the governing body, the City needs to update the list of those authorized to access the LAIF account. The authorized users include the Mayor, all four Councilmembers, City Manager, and Finance Director/City Treasurer.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

The City Council could choose to add or remove any of the personnel listed.

FISCAL IMPACT:

None.

Page 61 of 214 ends

CITY OF TWENTYNINE PALMS

CITY COUNCIL
RESOLUTION NO. 23-__

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF TWENTYNINE PALMS AUTHORIZING

CITY COUNCIL MEMBERS AND STAFF ACCESS
TO THE CITY’S ACCOUNT AT THE LOCAL

AGENCY INVESTMENT FUND (LAIF)
WHEREAS, The Local Agency Investment Fund is established in the State Treasury under Government Code section 16429.1 et. seq. for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the City Council of the City of Twentynine Palms hereby finds that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with Government Code section 16429.1 et. seq. for the purpose of investment as provided therein is in the best interests of the City of Twentynine Palms.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Twentynine Palms, California, hereby authorizes the deposit and withdrawal of the City of Twentynine Palms’ monies in the Local Agency Investment Fund in the State Treasury in accordance with Government Code section 16429.1 et. seq. for the purpose of investment as provided therein.

BE IT FURTHER RESOLVED, as follows:

Section 1. The following City of Twentynine Palms officers holding the title(s) specified hereinbelow or their successors in office are each hereby authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transactions contemplated hereby:

Name Title
McArthur Wright Mayor
Steven Bilderain Councilmember
Joel A. Klink Councilmember
Daniel L. Mintz, Sr. Councilmember
Octavious Scott Councilmember
Frank J. Luckino City Manager
Abigail Hernandez Conde Finance Director/ City Treasurer

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Section 2. This resolution shall remain in full force and effect until rescinded by the City Council of the City of Twentynine Palms by resolution and a copy of the resolution rescinding this resolution is filed with the State Treasurer’s Office.

PASSED, APPROVED AND ADOPTED this 13th day of June, 2023.

______________________
McArthur Wright., Mayor
ATTEST:
_______________________________
Cindy Villescas CMC, City Clerk
I hereby certify that the foregoing Resolution No. 23-__ was duly adopted by the City Council of the City of Twentynine Palms at a regular meeting thereof, held on the 13th day of June, 2023, by the following vote of the Council:

AYES: COUNCILMEMBER:

NOES: COUNCILMEMBER:

ABSENT: COUNCILMEMBER:

ABSTAIN: COUNCILMEMBER:
_______________________________
Cindy Villescas CMC, City Clerk

Page 63 of 214 ends

Page 64 of 214 ends

STAFF REPORT
TO: City Council
FROM: Public Works Superintendent
FOR MEETING: Jun 13 2023
SUBJECT: Senate Bill 1 Road Maintenance and Rehabilitation Account Project List Approval and Budget Amendment.

RECOMMENDATION:

The City Council adopt Resolution No. 23-__ Identifying the project(s) to be funded by SB1 RMRA funding.

ORDER OF PROCEDURE:

Request Staff Report (Public Works Superintendent
Presenting)
Council Questions of Staff
Request Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Senate Bill 1 Road
Maintenance and Rehabilitation
Account Project List Approval
and Budget Amendment
BACKGROUND:

Pursuant to the requirements of Senate Bill (SB1), each local jurisdiction receiving funds must submit a list of street maintenance projects each year to be eligible for Road Maintenance and Rehabilitation Account (RMRA) funds. Fiscal year 2023-2024’s RMRA allocation for the City of Twentynine Palms is estimated to be $670,851.00.

On April 28, 2017, the Governor signed Senate Bill (SB) 1 (Beall, Chapter 5, Statutes of 2017), which is known as the Road Repair and Accountability Act of 2017. To address basic road maintenance, rehabilitation and critical safety needs on both the state highway and local streets and road system, SB 1: increases per gallon fuel excise taxes; increases diesel fuel sales taxes and vehicle registration fees; and provides for inflationary adjustments to tax rates in future years.

Beginning November 1, 2017, the State Controller (Controller) began depositing various portions of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding will be apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.

The goal of SB1 is to bring all streets up to an average pavement condition index of 80 (80 out of 100).

Currently, the average pavement condition index for the City’s roads is 91.5. Per the SB1 guidelines, the City’s Pavement Management System is the tool used to identify roadway segments for inclusion in RMRA funded projects.

Page 65 of 214 ends

For Fiscal Year 2023-2024, staff proposes providing the necessary labor, equipment, and materials to overlay 538,128 Square Feet of asphalt pavement on local street segments. The project will commence in July 2023 and be completed no later than June 2024. The useful life of the project area is estimated to be 7-10 years.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

The City Council could choose to make other recommendations.

FISCAL IMPACT:

The City's anticipated revenue from SB1 for this Fiscal Year's RMRA allocation is estimated to be $670,851. The above projects costs are within the estimated revenue.

Page 66 of 214 ends

RESOLUTION NO. 23-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

TWENTYNINE PALMS, CALIFORNIA, ADOPTING A LIST OF
PROJECTS FOR FISCAL YEAR 2023-24 FUNDED BY SB 1:

THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Twentynine Palms are aware of the projects proposed for funding in the community and which projects have been completed each fiscal year; and WHEREAS, the City of Twentynine Palms must adopt by Resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Twentynine Palms, will receive an estimated $670,851.00 in RMRA funding in Fiscal Year 2022-2023 from SB 1; and
WHEREAS, this is the seventh year in which the City of Twentynine Palms is receiving SB 1 funding and will enable the City of Twentynine Palms to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City of Twentynine Palms has undergone a robust public process to ensure public input into our community’s transportation priorities/project list; and WHEREAS, the City of Twentynine Palms used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City of Twentynine Palms maintain and rehabilitate residential, collector, and arterial roads throughout the City of Twentynine Palms this year with similar projects into the future; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City of Twentynine Palms’ streets and roads are in an “at-risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good” condition; and

Page 67 of 214 ends

WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TWENTYNINE PALMS AS FOLLOWS:

1. The foregoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2023-24 Road Maintenance and Rehabilitation Account revenues:

Project 1: 2023-2024 Street
The Project generally consists of providing the necessary labor, equipment, and materials to overlay 538,128 SF of asphalt pavement street segments. The project will commence in July 2023 and be completed no later than June 2024. The useful life of the project area is estimated to be 7-10 years.

Street___________________From_____________________To______________________SQF________ Mariposa Ave. Sunnyslope El Paseo 22,880
Morongo Rd. Sunnyslope South of Joshua 72,600
La Buena Tierra Two Mile Rd. Larrea 57,000
Indian Trail Mesquite Springs Rd. Adobe Rd. 165,188
Pine Spring Ave. Sullivan Rd. Outer Hwy. 68,580
Sullivan Rd. Indian Cove Rd. Copper Mountain 39,680
Chia Ave. Two Mile Rd. Samarkand 83,500
Cholla Ave. Joshua Dr. Buena Vista 28,700
Total SF 538,128
Total Cost $670,851.00

Page 68 of 214 ends

PASSED, APPROVED AND ADOPTED by the City Council of Twentynine Palms this 13th day of June 2023.

______________________________
McArthur Wright, Mayor
ATTEST:
______________________________________
Cindy Villescas CMC, City Clerk
I, do hereby certify that the foregoing Resolution No. 23-__ was duly adopted by the City Council of the City of Twentynine Palms at a regular meeting thereof held on 13th day of June 2023, by the following vote:

AYES: COUNCILMEMBER:

NOES: COUNCILMEMBER:

ABSENT: COUNCILMEMBER:

ABSTAIN: COUNCILMEMBER:
_________________________________
Cindy Villescas CMC, City Clerk

Page 69 of 214 ends

Page 70 of 214 ends

STAFF REPORT
TO: City Council
FROM: Community Development Director
FOR MEETING: Jun 13 2023
SUBJECT: DCA - Temporary Use Permits.

RECOMMENDATION:

That the City Council conduct the Public Hearing, consider public comment, find the project exempt from CEQA, and adopt the Ordinance approving the amendment to the Development Code regarding Temporary Use Permits.

ORDER OF PROCEDURE:

Request Staff Report
Council Questions of Staff
Open the Public Hearing
Receive Public Comment
Close the Public Hearing
Council Discussion
Motion/Second
Discussion on Motion
Call the Question
ATTACHMENTS:
• City Council Ordinance -
Temporary Use Permits
• Chapter 19.34_Temporary
Use Permit draft
• Planning Commission
Resolution - Temporary Use
Permits
• Notice of Exemption -
Temporary Use Permits
BACKGROUND:

At the meeting of April 18, 2023, the Planning Commission held a Public Hearing on revisions to Chapter 19.34 of the Development Code, separating out the regulations for Film Permits from Temporary Use Permits. In so doing, a Development Code Amendment is required for the the Temporary Use Permit (TUP) Chapter of the Code to reflect this change.

ENVIRONMENTAL:

The project is exempt from the California Environmental Quality Act (CEQA). Pursuant to Section 15061(b)(3), the activity is covered by the common-sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no

Page 71 of 214 ends

possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

ALTERNATIVES:

The City Council could choose to:

1. Request additional information from Staff and postpone the hearing to a date certain.

2. Deny the Development Code Amendment.

FISCAL IMPACT:

None.

Page 72 of 214 ends

CITY OF TWENTYNINE

PALMS CITY COUNCIL
ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TWENTYNINE

PALMS, CALIFORNIA, ADOPTING A DEVELOPMENT CODE
AMENDMENT AMENDING CHAPTER 19.34 TEMPORARY USE PERMITS
OF THE CITY OF TWENTYNINE PALMS DEVELOPMENT CODE.

19.34 was duly noticed in the Desert Trail, a newspaper of general circulation within the City of Twentynine Palms; and
WHEREAS, on June 13, 2023, the City Council of the City of Twentynine Palms conducted a duly noticed and advertised Public Hearing on the Development Code Amendment as reflected in "Exhibit A" in accordance with the California Government Code Section 65350 et. seq. and California Government Code Section 65853 et. seq., required by law for this amendment; and
WHEREAS, a Public Hearing was held by the City Council on June 13, 2023, at which time the Council introduced Ordinance No. ___, amending Chapter 19.34 Temporary Use Permits of the Development Code, and
WHEREAS, on June 13, 2023, at the above noted Public Hearing for the Development Code Amendment, the City Council of the City of Twentynine Palms considered the potential environmental impacts that may occur with the adoption of the proposed Development Code Amendment and recommended that in accordance with the California Environmental Quality Act (CEQA) Guidelines Section, the proposed zoning text amendment has been reviewed for its potential to impact the environment. Pursuant to Section 15061(b)(3) of the State Guidelines to Implement the California Environmental Quality Act, the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and

Page 73 of 214 ends

WHEREAS, the City Council found that on the basis of the whole record before it, including any public comments received, there is no substantial evidence that the Development Code Amendment would have a significant effect on the environment and that the proposed CEQA determination reflected the City Council's independent judgment and analysis; and
WHEREAS, the City Council, in its review of the proposed Development Code Amendment, makes the following findings:

A. That the Zone Change or Development Code Amendment is consistent with the intent of the goals and policies of the General Plan.

The Development Code Amendment is consistent with the following policies of the General Plan:

Goal LU-1 – Encourage orderly growth and development as envisioned by community residents.

Goal LU-10 - Promote a high quality of life for Twentynine Palms residents by developing and sustaining a strong and diverse local economy.

B. The Zone Change or Development Code Amendment prescribes reasonable controls and standards to ensure compatibility with other established uses.

The Development Code Amendment is to amend Chapter 19.34 Temporary Use Permit and Standards, removing the language regarding Film Permits.

C. The Zone Change or Development Code Amendment provides reasonable property development rights while protecting environmentally sensitive land uses and species.

The Development Code Amendment is to amend Chapter 19.34 Temporary Use Permit and Standards, removing the language regarding Film Permits D. The Zone Change or Development Code Amendment ensures protection of the general health, safety and welfare of the community.

The Development Code Amendment is to amend Chapter 19.34 Temporary Use Permit and Standards, removing the language regarding Film Permits

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TWENTYNINE PALMS, CALIFORNIA, TAKES THE FOLLOWING ACTIONS:

Section 1. Based upon the review of the proposed amendment of the Development Code, Chapter 19.34 Temporary Use Permits, the City Council finds that the proposed amendment does not have the potential to have an adverse impact on the environment and, in accordance with the California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3), the activity is covered by the common-sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Section 2. The City Council finds that the proposed amendment is consistent with the City's adopted General Plan Goals and Policies as the proposal will support the implementation of the General Plan and State law.

Section 3. The City Council approve and adopt the "Findings" required for approval of the Development Code update as set forth above.

Page 74 of 214 ends

Section 4. The City Council of the City of Twentynine Palms amend the Development Code as reflected in Exhibit "A."
Section 5. Notice of Adoption. The City Clerk of the City of Twentynine Palms shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted by Section 36933 of the Government Code of the State of California.

Section 6. Introduction Date. Ordinance No.___ was introduced by Council action on the 13th day of June 2023.

Section 7. Effective Date. Ordinance No. ___ becomes effective thirty (30) days after the second reading by City Council.

Section 8. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and, to this end, the provisions of this Ordinance are declared to be severable.

PASSED, APPROVED, AND ADOPTED this 27
th day of June 2023.

MacArthur Wright, Mayor
ATTEST:

Cindy Villescas CMA, City Clerk
APPROVED AS TO FORM:

A. Patrick Munoz, City Attorney
I hereby certify that the foregoing is a true copy of Ordinance No. ___, introduced on the 13 th
day of June 2023 and duly adopted by the City Council of the City of Twentynine Palms in a meeting held on 27
th day of June 2023, in Twentynine Palms, California by the following vote, to wit.

AYES:

NOES:

ABSENT:

ABSTAIN:

COUNCILMEMBER:

Page 75 of 214 ends

Cindy Villescas CMC, City Clerk

Page 76 of 214 ends

Page 77 of 214 ends

City of Twentynine Palms Development Code Article 3, Administration, Permits and Procedures Adopted July 26, 2016
Effective August 25, 2016 Page 19.34-1 Temporary Use Permit and Standards Chapter 19.34 Temporary Use Permit and Standards
Sections:

19.34.010 Purpose................................................................................................................19.34-1

19.34.020 Applicability........................................................................................................19.34-1

19.34.030 Application and Required Fees...........................................................................19.34-2

19.34.040 Approving Authority...........................................................................................19.34-2

19.34.050 Public Hearing and Notice ..................................................................................19.34-2

19.34.060 Conditions of Approval.......................................................................................19.34-3

19.34.070 Findings for Approval.........................................................................................19.34-3

19.34.080 Notice of Decision ..............................................................................................19.34-3

19.34.090 Effective Date .....................................................................................................19.34-4

19.34.100 Appeals................................................................................................................19.34-4

19.34.110 Expiration............................................................................................................19.34-4

19.34.120 Extensions of Time .............................................................................................19.34-4

19.34.130 Amendments .......................................................................................................19.34-4

19.34.140 Conflicting Regulations ......................................................................................19.34-4

19.34.150 Annual Renewal of Temporary Use Permit........................................................19.34-4

19.34.160 Temporary Use Standards...................................................................................19.34-5

19.34.010 Purpose
The purpose of this Chapter is to establish standards for temporary activities and uses to ensure the overall health, safety and general welfare of the community is maintained and to establish permit and processing requirements of these temporary activities and uses.

19.34.020 Applicability
A. Temporary Use Permit Required. A Temporary Use Permit is required for each individual, agency, organization, institution or business wishing to conduct a temporary activity or use in conformance with the standards of this Chapter. A Temporary Use Permit is required for the following activities and uses:

1. Circuses, carnivals, concerts, rodeos, parades, car shows/sales, motor sports events, or similar outdoor events or enterprises.

2. Farmers market uses.

3. Outdoor art and craft shows and exhibits.

4. Sidewalk or parking lot sales.

EXHIBIT “A”

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City of Twentynine Palms Development Code Article 3, Administration, Permits and Procedures Adopted July 26, 2016
Effective August 25, 2016 Page 19.34-2 Temporary Use Permit and Standards

5. Christmas tree sales lots, Halloween pumpkin sales, and other similar holiday sales.

6. Charitable or school-sponsored drop-off bins for recycling and/or for drop-off of clothes and small items.

7. Temporary security quarters, earth stockpiling sites, and/or storage yards on the site of a construction project.

8. Filming or photographic activities.

9. Temporary model home/sales office for the sale or lease of residential property or vacant lots.

10. Manufactured homes, mobile offices, or other approved structures to provide temporary office, retail, meeting, assembly, wholesale, manufacturing and/or storage space for commercial, industrial or institutional uses.

11. Seagoing cargo containers and other similar storage containers used for temporary storage.

12. Recreational or other civic uses which are strongly vested with public or social importance.

13. Additional uses and corresponding regulations determined by the Community Development Director.

B. Conditional Use Permit Required. Uses identified in Subsection 19.34.020.A of a proposed duration exceeding that specified in Section 19.34.160 (Temporary Use Standards) shall require a Conditional Use Permit in accordance with Chapter 19.42 (Conditional Use Permit).

19.34.030 Application and Required Fees
A. Application Filing and Processing. Applications for a Temporary Use Permit shall be filed and processed in accordance with Chapter 19.28 (Approval Requirements and Common Procedures).

B. Application Fees. Application fees shall be collected in accordance with Section 19.28.050 (Applications and Fees).

C. A copy of the n Additional Insured Endorsement of public liability insurance, along with an endorsement naming the City of Twentynine Palms as an additional named insured, and which includes coverage for the effective dates of the permit with a minimum limit of liability of $1 million per claim or occurrence shall be submitted with the application.

19.34.040 Approving Authority
Temporary Use Permits shall be approved by the specified approving authority as designated in Table

19.28.110-1 (Approving Authority for Land Use Permits). The designated approving authority is authorized to approve, conditionally approve, modify or deny a Temporary Use Permit application.

Page 79 of 214 ends

City of Twentynine Palms Development Code Article 3, Administration, Permits and Procedures Adopted July 26, 2016
Effective August 25, 2016 Page 19.34-3 Temporary Use Permit and Standards

19.34.050 Public Hearing and Notice
No public hearing is required for processing of a Temporary Use Permit.

Page 80 of 214 ends

City of Twentynine Palms Development Code Article 3, Administration, Permits and Procedures Adopted July 26, 2016
Effective August 25, 2016 Page 19.34-4 Temporary Use Permit and Standards

19.34.060 Conditions of Approval
In approving an application for a Temporary Use Permit, the approving authority may impose reasonable and appropriate conditions in order to achieve the purposes of this Code, ensure consistency with the goals and policies of the General Plan, and justify making the necessary findings. Conditions may include, but shall not be limited to:

A. Hours of operation.

B. Walls, fences and lighting necessary to reduce possible detrimental effects to surrounding properties and to protect the public health, safety and welfare of the City.

C. The issuance of a cash performance bond deposited with the City to defray the City’s costs of providing services or cleaning up the property in the event the permittee fails to do so.

D. An Additional Insured Endorsement of public liability insurance, naming the City of Twentynine Palms as an additional named insured, and which includes coverage for the effective dates of the permit with a minimum limit of liability of $1 million per claim or occurrence.

19.34.070 Findings for Approval
Prior to approving a Temporary Use Permit as prescribed by this Chapter, the approving authority shall make all the following findings:

A. The operation will not jeopardize, endanger or otherwise constitute a risk to public health, safety or welfare.

B. The proposed site will accommodate the temporary use without being materially detrimental to the use and enjoyment of other properties in the vicinity.

C. The proposed site is adequately served by streets or highways having sufficient width and improvements to accommodate the traffic that the temporary use will or could reasonably be expected to generate.

D. Adequate temporary parking will be available either on-site or at an acceptable alternate location.

19.34.080 Notice of Decision
Written notice of decision shall be provided within five business days of the date of decision to the applicant and interested parties having requested notices in writing. The notice shall include:

A. The application request as acted upon by the Director.

B. The action taken by the Director.

C. Findings as listed for the permit.

D.C. The deadlines, criteria and fees for filing an appeal.

Page 81 of 214 ends

City of Twentynine Palms Development Code Article 3, Administration, Permits and Procedures Adopted July 26, 2016
Effective August 25, 2016 Page 19.34-5 Temporary Use Permit and Standards

19.34.090 Effective Date
Temporary Use Permits shall become effective on the day immediately following expiration of the appeal period when no timely appeal has been filed. Upon filing of a timely appeal, the effective date shall be suspended until such time that final action is taken on the appeal.

19.34.100 Appeals
Appeal of an action made pursuant to this Chapter shall be filed in accordance with Section 19.28.120 (Appeals).

19.34.110 Expiration
Temporary Use Permits shall expire one year from the date the original approval was granted, unless a shorter period is specified in the terms of the permit approval. Temporary Use Permits may be renewed in accordance with Section 19.34.150 (Annual Renewal of Temporary Use Permit).

19.34.120 Extensions of Time
No extensions are permitted for Temporary Use Permits.

19.34.130 Amendments
Amendments to an approved Temporary Use Permit shall be processed as a new application.

19.34.140 Conflicting Regulations
Where this Chapter prescribes regulations more restrictive than the land use district in which a temporary use is proposed, the provisions of this Chapter shall apply.

19.34.150 Annual Renewal of Temporary Use Permit
A. Request for Renewal. A request for renewal of a Temporary Use Permit must be filed in writing, along with any required fees, with the Community Development Director a minimum of 30 days prior to the expiration date of the approved permit.

B. Temporary Use Permits may be granted a renewal if all of the following conditions are met:

1. There has been no change in the number of the specified events under the approved Temporary Use Permit.

2. There has been no change in the duration or operation of the specified events under the approved Temporary Use Permit.

3. All events have been conducted in accordance with the time and duration specified under the approved Temporary Use Permit. Failure to conduct an approved event as specified in any year will result in termination of the Temporary Use Permit and no renewal shall be granted.

Page 82 of 214 ends

City of Twentynine Palms Development Code Article 3, Administration, Permits and Procedures Adopted July 26, 2016
Effective August 25, 2016 Page 19.34-6 Temporary Use Permit and Standards

4. Upon review of the Temporary Use Permit, the Director may modify the permit at any time to ensure compatibility with existing uses, changes in underlying land use designations, or compliance with the terms of the approved permit.

19.34.1560 Temporary Use Standards
A. General Standards. The following standard shall apply to all temporary activities and uses:

1. Upon completion or removal of the temporary activity or use, each site shall be left free of litter and any other evidence of the temporary use within 48 hours.

B. Standards by Activity/Use. The following standards shall apply to the specified temporary activity or use:

1. Circuses, carnivals, concerts, rodeos, parades, car shows/sales, motor sports events, or similar outdoor events or enterprises shall not exceed seven consecutive calendar days of operation. A maximum of four events may be held in any calendar year.

2. Farmers market uses shall not exceed 28 days in duration in any calendar year and shall not exceed seven consecutive calendar days of operation, except as otherwise allowed pursuant to Chapter

19.110 (Farmers Market Uses). A maximum of four events may be held in any calendar year. All farmers market uses shall comply with the standards of Chapter 19.110 (Farmers Market Uses).

3. Outdoor art and craft shows and exhibits shall not exceed seven consecutive calendar days of operation. A maximum of four events may be held in any calendar year.

4. Sidewalk or parking lot sales shall be in commercially zoned districts and shall not exceed seven consecutive calendar days of operation. A maximum of four events may be held in any calendar year.

5. Christmas tree sales lots, Halloween pumpkin sales, and other similar holiday sales shall not exceed 40 consecutive calendar days of operation. A maximum of four events may be held in any calendar year.

6. Charitable or school-sponsored drop-off bins for recycling and/or for drop-off of clothes and small items shall be located on commercial, industrial, or publicly owned property and may not exceed 90 days in duration in any calendar year. These may be consecutive days or cumulative days in any calendar year.

7. Temporary security quarters, earth stockpiling sites, and/or storage yards on the site of a construction project may continue for the duration of a valid Building Permit.

8. Filming or photographic activities shall not exceed 10 consecutive calendar days in duration. A maximum of four events may be approved in any calendar year.

9. Temporary model home/sales office for the sale or lease of residential property or vacant lots shall meet the following minimum requirements:

Page 83 of 214 ends

City of Twentynine Palms Development Code Article 3, Administration, Permits and Procedures Adopted July 26, 2016
Effective August 25, 2016 Page 19.34-7 Temporary Use Permit and Standards a. The model home/sales office shall be located in the subdivision or development for which the property is being offered.
b. A minimum of four paved parking spaces shall be provided. c. A cash performance bond shall be provided, in an amount appropriate to guarantee removal and/or conversion of the sales office and attendant facilities.

11. Seagoing cargo containers and other similar storage containers used for temporary storage may continue for the duration of a valid Building Permit.

12. Recreational or other civic uses which are strongly vested with public or social importance. Such uses may continue for the duration as specified in the permit, not to exceed 30 consecutive days.

Page 84 of 214 ends

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To: County of San Bernardino Clerk of the Board of Supervisors 385 North Arrowhead Avenue 2nd Floor
San Bernardino, CA 92415-0130
Office of Planning and Research
1400 Tenth Street, Room 121
Sacramento, CA 95814
Project Title: DCA23-000005 Chapter 19.34 Temporary Use Permits Project Location: Citywide
Project Location: Twentynine Palms, San Bernardino County Description of nature, purpose and beneficiaries of Project:

Amending Chapter 19.34 Temporary Use Permit of the Development Code, removing the requirements for Film Permits
Public Agency approving Project: X City of Twentynine Palms Name of Person Carrying Out Project:

Exempt Status (check one):

Ministerial (Sec. 15073)
Declared Emergency [Sec. 15071 (a)]
Emergency Project [Sec. 15071 (b) and (c)]
X Categorical Type/Sec. 15061 (b)(3)
Reason(s) Project is Exempt: Pursuant to Section 15061(b)(3), the activity is covered by the commonsense exemption that CEQA only applies to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA..

For information, contact Keith Gardner, Community Development Director, City of Twentynine Palms. (760) 367-6799, ext. 1008
Community Development Director
Keith Gardner Date Title
Notice of Exemption
City of Twentynine Palms
Community Development Department
6136 Adobe Road
Twentynine Palms, CA 92277

Page 89 of 214 ends

Page 90 of 214 ends

STAFF REPORT
TO: City Council
FROM: Community Development Director
FOR MEETING: Jun 13 2023
SUBJECT: DCA - Film Permits.

RECOMMENDATION:

The City Council conduct the Public Hearing, consider public comment, find the project exempt from CEQA and adopt the Ordinance approving the amendment to Development Code adding Chapter 19.35, Film Permits.

ORDER OF PROCEDURE:

Request Staff Report (Community Development Director
Presenting)
Council Questions of Staff
Open the Public Hearing
Receive Public Comment
Close the Public Hearing
Council Discussion
Motion/Second
Discussion on Motion
Call the Question
ATTACHMENTS:
• City Council Ordinance - Film
Permits
• Chapter 19.35 Film Permits
draft
• Planning Commission
Resolution - Film Permits
• Notice of Exemption - Film
Permits
BACKGROUND:

In brief, the proposed Film Permit Ordinance makes the following changes to the way film permits are processed:
• Film Permits would be separated from the Temporary Use Permit section of the Development Code • Application processing time has been reduced from 30 days to 10 days • There are no restrictions on the number of Film Permits on any given location, such as there is under Temporary Use Permits
• If there are five (5) or fewer personnel (including crew) involved in a film shoot, there are no more than two passenger vehicles, and no other criteria are met (i.e. the use of pyrotechnics or road closures), then no Film Permit is required.

The Planning Commission held a study session at their meeting of March 07, 2023, creating regulations for Film Permit processing. Currently, Film Permits are included as a part of the Temporary Use Permit Page 91 of 214 (TUP) regulations. Commission direction was to separate out Film Permits from TUP's and create a new Chapter within the Development Code.

At the meeting of April 18, 2023, the Planning Commission held a Public Hearing on a Development Code Amendment adding Chapter 19.35 Film Permits as written. The Commission forwarded a recommendation to the City Council for adoption of the Ordinance.

The draft regulations for Film Permits was presented to the Public Arts Advisory Committee (PAAC) on April 19, 2023 and the following changes were recommended:
• Student productions should be exempt from fees
• Filming in the National Park buffer zone should require a City approved conservationist.

These items have not been included in the draft Ordinance, as neither of these subjects are in the purview of the PAAC.

Staff has created a draft Ordinance which identifies when a permit is required, two levels of permitting based upon length of filming activity, conditions of approval and additional permits or approvals that may be required.

ENVIRONMENTAL:

ALTERNATIVES:

The City Council could choose to:

1. Request additional information from Staff and postpone the hearing to a date certain.

2. Deny the Development Code Amendment.

FISCAL IMPACT:

None.

Page 92 of 214 ends

CITY OF TWENTYNINE

PALMS CITY COUNCIL
ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TWENTYNINE

PALMS, CALIFORNIA, ADOPTING A DEVELOPMENT CODE
AMENDMENT ADDING CHAPTER 19.35 FILM PERMITS TO THE CITY OF TWENTYNINE PALMS DEVELOPMENT CODE.

WHEREAS, the City of Twentynine Palms General Plan was adopted by the City Council on April 24, 2012; and
WHEREAS, the City of Twentynine Palms Development Code was adopted by the City Council on July 26, 2016; and
WHEREAS, on March 07, 2023, the Planning Commission held a study session regarding regulations for Film Permits; and
WHEREAS, on April 18, 2023, the Planning Commission of the City of Twentynine Palms conducted a duly noticed and advertised Public Hearing on the Development Code Amendment for Chapter 19.35, Film Permits; and
WHEREAS, on May 31, 2023, the Development Code Amendment was duly noticed in the Desert Trail, a newspaper of general circulation within the City of Twentynine Palms; and
WHEREAS, on June 13, 2023, the City Council of the City of Twentynine Palms conducted a duly noticed and advertised Public Hearing on the Development Code Amendment as reflected in "Exhibit A" in accordance with the California Government Code Section 65350 et. seq. and California Government Code Section 65853 et. seq., required by law for this amendment; and
WHEREAS, a Public Hearing was held by the City Council on June 13, 2023, at which time the Council introduced Ordinance No. ___, adding Chapter 19.35 Film Permits to the Development Code, and
WHEREAS, on June 13, 2023, at the above noted Public Hearing for the Development Code Amendment, the City Council of the City of Twentynine Palms considered the potential environmental impacts that may occur with the adoption of the proposed Development Code Amendment and recommended that in accordance with the California Environmental Quality Act (CEQA) Guidelines Section, the proposed zoning text amendment has been reviewed for its potential to impact the environment. Pursuant to Section 15061(b)(3) of the State Guidelines to Implement the California Environmental Quality Act, the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and WHEREAS, the City Council found that on the basis of the whole record before it, including any public comments received, there is no substantial evidence that the Development Code Amendment would have a significant effect on the environment and that the proposed CEQA determination reflected the City Council's independent judgment and analysis; and Page 93 of 214
WHEREAS, the City Council, in its review of the proposed Development Code Amendment, makes the following findings:

A. That the Zone Change or Development Code Amendment is consistent with the intent of the goals and policies of the General Plan.

The Development Code Amendment is consistent with the following policies of the General Plan:

Goal LU-1 – Encourage orderly growth and development as envisioned by community residents.

Goal LU-10 - Promote a high quality of life for Twentynine Palms residents by developing and sustaining a strong and diverse local economy.

B. The Zone Change or Development Code Amendment prescribes reasonable controls and standards to ensure compatibility with other established uses.

The Development Code Amendment is to add a Chapter to the Development Code establishing regulations on the issuance of film permits.

C. The Zone Change or Development Code Amendment provides reasonable property development rights while protecting environmentally sensitive land uses and species.

The Amendment is to establish regulations on the issuance of Film Permits.

D. The Zone Change or Development Code Amendment ensures protection of the general health, safety and welfare of the community.

The Development Code Amendment will provide regulations on the type and timeframes for filming in the City to protect the health, safety and welfare of the community.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TWENTYNINE PALMS, CALIFORNIA, TAKES THE FOLLOWING ACTIONS:

Section 1. Based upon the review of the proposed amendment of the Development Code, Chapter 19.35 Film Permits, the City Council finds that the proposed amendment does not have the potential to have an adverse impact on the environment and, in accordance with the California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3), the activity is covered by the common-sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Section 3. The City Council approve and adopt the "Findings" required for approval of the Development Code update as set forth above.

Page 94 of 214 ends

Section 6. Introduction Date. Ordinance No.___ was introduced by Council action on the 13th day of June 2023.

Section 7. Effective Date. Ordinance No. ___ becomes effective thirty (30) days after the second reading by City Council.

PASSED, APPROVED, AND ADOPTED this 27
th day of June 2023.

MacArthur Wright, Mayor
ATTEST:

Cindy Villescas CMA, City Clerk
APPROVED AS TO FORM:

AYES:

NOES:

ABSENT:

ABSTAIN:

COUNCILMEMBER:

Cindy Villescas CMC, City Clerk

Page 95 of 214 ends

Page 96 of 214 ends

City of Twentynine Palms Development Code Article 3, Administration, Permits and Procedures Adopted
Effective Page 19.35-1 Film Permits
Chapter 19.35 Film Permits
Sections:

19.35.010 Purpose................................................................................................................19.35-1

19.35.020 Permit Required ..................................................................................................19.35-1

19.35.030 Exemptions..........................................................................................................19.35-1

19.35.040 Application Submittal and Required Fees ..........................................................19.35-2

19.35.050 Approving Authority...........................................................................................19.35-2

19.35.060 Conditions of Approval.......................................................................................19.35-3

19.35.070 Additional Permits/Approvals Required.............................................................19.35-3

19.35.080 Notice of Decision ..............................................................................................19.35-3

19.35.090 Expiration ...........................................................................................................19.35-4

19.35.100 Extensions of Time .............................................................................................19.35-4

19.35.110 Amendments .......................................................................................................19.35-4

19.35.010 Purpose
The purpose of this Chapter is to establish standards for filming, videotaping, motion picture, still photography, and the use of drones for filming activity for commercial purposes and to ensure that the overall health, safety and general welfare of the community is maintained and to establish permit and processing requirements of these activities and uses.

19.35.020 Permit Required
Except as otherwise exempt by this Chapter, a Film Permit is required for each individual, agency, organization, institution or business wishing to conduct any filming, , videotaping, motion picture and still photography, and the use of drones for filming activity or use within City limits.

19.35.030 Exemptions
The provisions of this Chapter shall not apply to the following:

A. News media, for the purpose of television news broadcast by reporters, photographers or cameramen.

B. Filming activities conducted for use in a criminal investigation, civil proceedings and emergencies, such as fire, flood, police actions, etc.

C. Film crews of less than five people, limited to the use of two (2) passenger vehicles, D. Filming activities that are conducted completely inside a structure not visible from the public, and limited to two (2) passenger vehicles,
EXHIBIT “A”

Page 97 of 214 ends

City of Twentynine Palms Development Code Article 3, Administration, Permits and Procedures Adopted
Effective Page 19.35-2 Film Permits
E. Filming with a cell phone or handheld camera for personal use or online platform, limited to five participants and two (2) passenger vehicles.

F. Filming personal events such as a wedding, birthday party, etc.

19.35.040 Application Submittal and Required Fees
A. Application Filing and Processing. Applications for a Film Permit shall be filed and processed in accordance with Chapter 19.28 (Approval Requirements and Common Procedures).

B. Application Fees. Application fees shall be collected in accordance with Section 19.28.050 (Applications and Fees).

C. Filming activities less than or equal to seven (7) days in duration will require that the application shall be filed no less than ten (10) working days prior to the proposed filming activity. The applicant is required to provide proof of noticing as directed by the City and will require a Minor Film Permit.

D. Filming activities greater than seven (7) days in duration will require that the application shall be filed no less than ten (30) working days prior to the proposed filming activity, and will require a Major Film Permit.

19.35.050 Approving Authority
Film Permits shall be approved by the Community Development Director or his/her designee. The designated approving authority is authorized to approve, conditionally approve, modify or deny a Film Permit application.

19.35.060 Conditions of Approval
In approving an application for a Film Permit, the approving authority may impose reasonable and appropriate conditions in order to achieve the purposes of this Code, ensure consistency with the goals and policies of the General Plan. Conditions may include, but shall not be limited to:

A. Restrictions on hours of filming activity
B. Requirements concerning notice to affected property owners of the filming activity.

C. Requirements concerning posting of no parking signs and placement of other traffic control devices.

D. Requirements for the presence of County Sheriff, County Fire Dept., or City Public Works employees when required, at the applicant’s expense.

E. Restrictions on the use of gunfire, pyrotechnics, explosions, and/or other noise-creating or hazardous devices.

F. Restrictions on construction of new structures (i.e. stages), including the requirements of utility connections thereto.

Page 98 of 214 ends

City of Twentynine Palms Development Code Article 3, Administration, Permits and Procedures Adopted
Effective Page 19.35-3 Film Permits
G. Restrictions on the use of lighting equipment, especially at night.

H. Special noticing requirements if the filming activities emulate law enforcement, military, or weaponry.

I. Restrictions of activities within certain areas of the City, or nearby sensitive areas.

J. Restrictions on the use of drones for the purpose of filming.

K. Filming permit activity may not exceed a total of 90 days at one location in one calendar year.

19.35.070 Additional Permits/Approvals Required
A. Any proposed filming activity that may be conducted in the public right of way or may impact traffic circulation shall require the submittal of Encroachment Permit to the Engineering Division.

B. The use of, or emulation of, any type of weaponry shall require written approval from the San Bernardino County Sheriff’s office.

C. The use of, or emulation of, any type of explosives, fires, or pyrotechnics shall require written approval from the San Bernardino County Fire Department.

19.35.080 Notice of Decision
Written notice of decision shall be provided within five business days of the date of decision to the applicant and interested parties having requested notices in writing. The notice shall include:

A. The application request as acted upon by the Director.

B. The action taken by the Director.

C. The deadlines, criteria and fees for filing an appeal.

19.35.090 Expiration
Film Permits are valid only for the dates specified in the application and shall expire on the last date listed.

19.35.100 Extensions of Time
Extension of time may be permitted, provided that no violations of the Conditions of Approval have occurred as a part of the filming activity.

19.35.110 Amendments
Amendments to an approved Film Permit shall be processed as a new application.

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To: County of San Bernardino Clerk of the Board of Supervisors 385 North Arrowhead Avenue 2nd Floor
San Bernardino, CA 92415-0130
Office of Planning and Research
1400 Tenth Street, Room 121
Sacramento, CA 95814
Project Title: DCA23-000003 Chapter 19.35 Film Permits
Project Location: Citywide
Project Location: Twentynine Palms, San Bernardino County Description of nature, purpose and beneficiaries of Project:

Adding Chapter 19.35 Film Permits to the Development Code Public Agency approving Project: X City of Twentynine Palms Name of Person Carrying Out Project:

Exempt Status (check one):

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STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: Jun 13 2023
SUBJECT: Proposed 2-Year Project Phoenix Funds Budget for FY 2023-24 & 2024-25.

RECOMMENDATION:

The City Council approve Resolution 23-__ that authorizes the adoption of the Project Phoenix Funds Budget for FY 2023-24 & 2024-25.

ORDER OF PROCEDURE:

Request Staff Report (Finance Director Presenting)
Council Questions of Staff
Open Public Hearing
Receive Public Comment
Close Public Hearing
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Resolution Project Phoenix
Funds FY 2023-24 & 2024-25
• Proposed PP 2-Year Budget -
FY 2023-24 and 2024-25 -
PowerPoint
• Project Phoenix Funds Budget
FY 2023-24 & 2024-25
BACKGROUND:

The Finance Director is presenting this proposed two-year Project Phoenix Funds Budget for Fiscal Year 2023-24 & 2024-25 for Council review and approval. Council is not required to approve this proposed budget today; however, the final budget needs to be approved before the beginning of the new fiscal year which begins July 1, 2023.

Project Phoenix Funds account for the activities associated with the City’s downtown revitalization project which is expected to be fully completed during FY 2023-24, with the exception of the Project Phoenix Housing funds.

The funding for the remainder of capital improvements at Project Phoenix (PP) is as follows:

Project Type: Amount Funding Source
PP Package Treatment Plant $2,065,906 EDA Grant/City Match Store Improvements $ 266,439 General Capital
Street Furniture $ 29,319 General Capital
Multi-Purpose Facility Fixtures $ 33,330 General Capital

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Public Art $ 15,000 General Capital
TOTAL $2,409,994
The Project Phoenix Housing fund has fund balance of $1.1M which is comprised of $713K from bond proceed reserves and $416K from the sale of the hotel property at Project Phoenix. These funds have not been committed to a specific project.

ENVIRONMENTAL:

Not applicable.

ALTERNATIVES:

The City Council could reject, add, or reduce any of Staff’s spending recommendations.

FISCAL IMPACT:

A balanced budget.

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CITY OF TWENTYNINE PALMS

CITY COUNCIL
RESOLUTION NO. 23- ____

A RESOLUTION OF THE CITY COUNCIL O F THE CITY OF TWENTYNINE PALMS, CALIFORNIA, ADOPTING THE CITY’S PROJECT PHOENIX
FUNDS BUDGET FOR FISCAL YEAR 2023/2024 & 2024/2025
WHEREAS, the City Council is adopting a budget before the beginning of Fiscal Year July 1, 2023; and
WHEREAS, the City Council has reviewed the budget and accepted public input.

NOW, THEREFORE, BE IT RESOLVED that the City Council adopts the budget for the Fiscal Year ending June 30, 2024 & June 30, 2025 as follows:

1. The adopted budget for the Project Phoenix Funds for Fiscal Year 2023/2024 is $2,409,994 and Fiscal Year 2024/2025 is $0;

3. The City Manager is authorized to transfer appropriations within funds as long as the total adopted budget allocation of that fund is not exceeded.

4. Transfers from fund to fund will require approval of the City Council, if not approved in the budget.

PASSED, APPROVED, AND ADOPTED on the 13th day of June 2023.

McArthur Wright, Mayor
ATTEST:

Cindy Villescas, City Clerk
I, do hereby certify that the foregoing Resolution No. 23-___, was duly adopted by the City Council of the City of Twentynine Palms at a regular meeting thereof held on 13th day of June, 2023, by the following vote:

AYES: COUNCILMEMBER:

NOES: COUNCILMEMBER:

ABSENT: COUNCILMEMBER:

ABSTAIN: COUNCILMEMBER:
_________________________________
Cindy Villescas, City Clerk

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PROPOSED TWO-YEAR BUDGET
Budget calendar:April 25th: Preliminary General Fund Budget May 9th: Preliminary Special Funds/Project Phoenix Funds Budgets May 23rd: Proposed General Fund Budget
June 13th: Proposed Special Fund/Project Phoenix Funds Budgets June 27th: Budget Meeting, if needed
2

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STRATEGIC PRIORITIES

1. New Shelter / Animal Control2. Addition of a Sheriff Detective3. Ballfield Lights4. Theatre29 Expansion 5. Housing and Homeless Advisory Committee 6. Events7. IT Improvements8. Debt Financing to pay for major improvements9. Revenue Augmentation to pay for debt financing10.Emergency Response Plan 3

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PROPOSED PROJECT PHOENIX FUNDS BUDGET
Project Phoenix Funds account for the
activities associated with the City’s downtown revitalization project that is expected to be completed during FY 2023-24, with the exception of the Project Phoenix Housing Fund. 4

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PROPOSED PROJECT PHOENIX FUNDS BUDGET
• Summary
Fiscal Year
2023-24
Revenue Sources
Grants $1,675,680Housing Funds* $1,100,000
*The Project Phoenix Housing fund has fund balance of $1.1M which is comprised of $713K from bond proceed reserves and $416K from the sale of the hotel property at Project Phoenix. These funds have not been committed to a specific project. 5

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PROPOSED PROJECT PHOENIX FUNDS BUDGET
Capital Spending Amount Funding SourcePP Package Treatment Plant $2,065,906 EDA Grant/City Match Store Improvements $266,439 General CapitalStreet Furniture $29,319 General Capital Multi-purpose Facility Fixtures $33,330 General Capital Public Art $15,000 General Capital
TOTAL $2,409,994
6

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PROPOSED PROJECT PHOENIX FUNDS BUDGET
Recommendations:1. Council approve Resolution 23-_ authorizing the adoption of the Project Phoenix Funds Budget for FY 2023-24. 7

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Questions/Comments
8

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Thank you
9

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APPROVED
2/28/23
2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
10-0000 REVENUE
4316 Transfer In - $ - $ - $ - $ - $ - $
4715 EV Charger Grant 8,892 $ 140,831 $ - $ - $ - $ - $ 4716 Project Phoenix-JT Visitor Cultral Center - $ 1,783,642 $ 216,358 $ - $ - $ - $ 4718 Prop 68-Project Phoenix Funds - $ - $ 194,454 $ - $ - $ - $ Reserves 426,984 $ 1,083,397 $ 76,977 $ 428,131 $ 344,088 $ - $ TOTAL REVENUE 435,876 $ 3,007,870 $ 487,789 $ 428,131 $ 344,088 $ - $ 10-1014 EXPENDITURES
6244 Project Phoenix - Miscellaneous Expense - $ - $ 1,868 $ 2,000 $ - $ - $ 6364 Project Phoenix - Site Planning 22,281 $ 2,857 $ - $ - $ - $ - $ 6365 Preliminary Design & Engineering 38,997 $ 49,085 $ 9,281 $ 15,000 $ - $ - $ 6366 Project Phoenix - Site Improvements - $ 142,653 $ 13,559 $ 15,000 $ - $ - $ 6806 Project Phoenix-JT Visitor Cultural Center 560,005 $ 1,427,219 $ - $ - $ - $ - $ 6829 EV Charger + City Match - $ 182,148 $ 2,216 $ 1,000 $ - $ - $ 6830 Project Phoenix - Public Art - $ - $ - $ 15,000 $ 15,000 $ - $ 6831 Project Phoenix - Store Front Improvements 990 $ 43,330 $ 39,241 $ 306,670 $ 266,439 $ - $ 6832 Project Phoenix - Grand Opening Celebretion - $ 13,863 $ - $ - $ - $ - $ 6833 Project Phoenix - Street Furniture - $ 63,751 $ 6,930 $ 36,249 $ 29,319 $ - $ 6834 Project Phoenix - Monument Sign - $ 21,545 $ - $ - $ - $ - $ 6835 Project Phoenix - Meeting Room/Kitchen 62,327 $ 391,295 $ - $ - $ - $ - $ 6836 Project Phoenix - Store - Conex Box - $ 9,095 $ - $ - $ - $ - $ 6844 Project Phoenix - Architecture - $ 3,416 $ - $ - $ - $ - $ 6849 Project Phoenix-City Funds - Community Center 30,580 $ 31,343 $ - $ - $ - $ - $ 6849 Project Phoenix-Prop 68 - Community Center - $ 194,454 $ - $ - $ - $ - $ 6850 Transfer Out - $ 177,925 $ - $ - $ - $ - $
6906 Project Phoenix-Multi-Purpose Facility Fixtures - $ 102,788 $ 3,882 $ 37,212 $ 33,330 $ - $ 6975 Project Phoenix - Roads 271,809 $ (10,866) $ - $ - $ - $ - $ TOTAL EXPENDITURES 986,989 $ 2,845,901 $ 76,977 $ 428,131 $ 344,088 $ - $

GENERAL CAPITAL PROJECTS FUND
The Capital Improvement Fund tracks grants and projects that aren't related to Community Development Block Grants. 1

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
11-0000 REVENUE
4400 Community Development
Block Grant 196,032 $ 63,781 $ 85,000 $ 85,000 $ - $ - $ TOTAL REVENUE 196,032 $ 63,781 $ 85,000 $ 85,000 $ - $ - $ 11-1014 EXPENDITURES
6844 Project Phoenix-Architecture 170,980 $ 54,533 $ - $ - $ - $ - $ 6906 Project Phoenix-Multi-Purpose Facility Fixtures - $ - $ 85,000 $ 85,000 $ - $ - $ TOTAL EXPENDITURES 170,980 $ 54,533 $ 85,000 $ 85,000 $ - $ - $

COMMUNITY DEVELOPMENT BLOCK GRANT FUND
Community Development Block Grants (CDBG) are funded by the Federal Government and administered by the County. In order to benefit as many citizens as possible, the funds are used for parks and public buildings.
2

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
14-0000 REVENUE
4245 Interest - $ - $ - $ - $ - $ - $
4264 Fire Impact Fees - $ - $ - $ - $ - $ - $
Reserves 35,988 $ 21,925 $ - $ - $ - $ - $
TOTAL REVENUE 35,988 $ 21,925 $ - $ - $ - $ - $
14-1014 EXPENDITURES
6513 Fire Sprinkler Project Phoenix 35,988 $ 21,925 $ - $ - $ - $ - $ TOTAL EXPENDITURES 35,988 $ 21,925 $ - $ - $ - $ - $

FIRE IMPACT FEE FUND
This Fund was created to track the collection and use of impact fees collected when building permits are issued. The purpose is to provide additional equipment for the Fire Department.
3

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
21-0000 REVENUE
4245 Interest 947 $ - $ - $ - $ - $ - $
4432 RMRA SB1 542,400 $ 515,925 $ - $ - $ - $ - $
Reserves 67,059 $ - $ - $ - $ - $ - $
TOTAL REVENUE 610,406 $ 515,925 $ - $ - $ - $ - $
21-1014 EXPENDITURES
6975 Project Phoenix Roads-Tamarisk, Yucca,
Smoke Tree & Cholla 610,406 $ 515,925 $ - $ - $ - $ - $ TOTAL EXPENDITURES 610,406 $ 515,925 $ - $ - $ - $ - $
RMRA Funds are derived from a per gallon fuel excise tax, diesel fuel sales tax and vehicle registartion fee. These funds are used on roads for major work rather then day to day repairs.

ROAD MAINTENANCE REHAB ACCOUNT (RMRA) SB1
4

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
27-0000 REVENUE
4455 Measure I Distribution - $ 225,195 $ - $ - $ - $ - $ TOTAL REVENUE - $ 225,195 $ - $ - $ - $ - $
27-1014 EXPENDITURES
6975 Project Phoenix Roads-Tamarisk, Yucca,
Smoke Tree & Cholla - $ 225,195 $ - $ - $ - $ - $
TOTAL EXPENDITURES - $ 225,195 $ - $ - $ - $ - $
MEASURE "I" FUNDS BUDGET 2010 TO 2040
Measure I funds are derived from a one-half percent addition to the sales taxes approved by voters of the county. The funds are for use on roads for major work rather then day-to- day repairs.
5

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
61-0000 REVENUE
4252 Project Phoenix State Specified Grant 452,083 $ 4,134,592 $ - $ - $ - $ - $ TOTAL REVENUE 452,083 $ 4,134,592 $ - $ - $ - $ - $
61-1014 EXPENDITURES
6359 Project Management 246,344 $ 427,390 $ - $ - $ - $ - $ 6365 Design & Engineering 119,869 $ 25,304 $ - $ - $ - $ - $ 6366 Site Improvement 1,749,504 $ 739,842 $ - $ - $ - $ - $ 6844 Architecture 159,263 $ 27,237 $ - $ - $ - $ - $
6847 Undergrounding-20b 47,517 $ (35,348) $ - $ - $ - $ - $ 6849 Project Phoenix-City Funds - Community Center 232,234 $ 756,343 $ - $ - $ - $ - $ TOTAL EXPENDITURES 2,554,731 $ 1,940,768 $ - $ - $ - $ - $ The City has a downtown revitalization project that consists of public buildings and housing. This Funding source is a Grant from the State of California Department of Parks and Recreation.

PROJECT PHOENIX STATE SPECIFIED GRANT $6 MILLION
6

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
76-0000 REVENUE
4245 Interest 554 $ 1,059 $ 1,481 $ 1,400 $ - $ - $
4890 Other/Miscellaneous Revenue 30,250 $ - $ - $ - $ - $ - $ Bond Reserves - $ - $ 13,068 $ 13,978 $ - $ - $
TOTAL REVENUE 30,804 $ 1,059 $ 14,549 $ 15,378 $ - $ - $ 76-1014 EXPENDITURES
6244 Miscellaneous Expense 2,025 $ - $ - $ - $ - $ - $
6359 Project Management 119,467 $ 140,900 $ - $ - $ - $ - $ 6362 Building & Safety 4,515 $ 3,780 $ - $ - $ - $ - $
6364 Site Planning 319,769 $ 39,829 $ - $ - $ - $ - $
6365 Design & Engineering 17,677 $ 4,280 $ - $ - $ - $ - $ 6366 Site Improvements 57,431 $ 313,002 $ 706 $ 234 $ - $ - $ 6841 Legal 18,420 $ 42,803 $ - $ - $ - $ - $
6842 Consulting Service 11,221 $ 139 $ - $ - $ - $ - $
6844 Architecture 20,000 $ 1,809 $ - $ - $ - $ - $
6845 Permits 3,325 $ - $ - $ - $ - $ - $
6849 Project Phoenix-City Funds - Community Center 896,675 $ 3,069,793 $ 13,843 $ 15,144 $ - $ - $ 6850 Transfer Out - $ 17,422 $ - $ - $ - $ - $
6865 Property Acquisition - $ (17,422) $ - $ - $ - $ - $ TOTAL EXPENDITURES 1,470,525 $ 3,616,335 $ 14,549 $ 15,378 $ - $ - $

PROJECT PHOENIX NON-HOUSING
The City has a downtown revitalization project that consists of public buildings and housing. 7

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET * BUDGET
77-0000 REVENUE
4245 Interest 168 $ 710 $ 15,087 $ 5,400 $ - $ - $
Bond Reserves - $ - $ 89,475 $ 102,365 $ 1,100,000 $ - $ TOTAL REVENUE 168 $ 710 $ 104,562 $ 107,765 $ 1,100,000 $ - $ 77-1013 EXPENDITURES
6841 Legal - $ - $ - $ 2,500 $ - $ - $
6842 Consulting Services - $ - $ - $ 25,265 $ - $ - $
6844 Architecture - $ - $ - $ 15,000 $ - $ - $
77-1014
6841 Legal 34,827 $ 1,948 $ 12,026 $ - $ - $ - $
6842 Consulting Services - $ 9,066 $ 6,020 $ - $ - $ - $ 6844 Architecture - $ - $ 13,650 $ - $ - $ - $
6865 Property Acquisition 1,172,895 $ 48,677 $ 72,866 $ 65,000 $ - $ - $ 6975 Roads 98,354 $ - $ - $ - $ - $ - $
TOTAL EXPENDITURES 1,306,076 $ 59,691 $ 104,562 $ 107,765 $ - $ - $ * The $1.1M has not been committed to any particular project thus far.

PROJECT PHOENIX HOUSING
The City has a downtown revitalization project that consists of public buildings and housing. 8

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
80-0000 REVENUE
4252 Project Phoenix State Specified Grant 176,149 $ 97,659 $ - $ - $ - $ - $ 4255 EDA Grant - $ - $ - $ 1,675,680 $ 1,675,680 $ - $
4316 Transfer In - $ 144,550 $ - $ 368,200 $ - $ - $
Reserves - $ - $ 62,650 $ 84,676 $ 390,226 $ - $
TOTAL REVENUE 176,149 $ 242,209 $ 62,650 $ 2,128,556 $ 2,065,906 $ - $ 80-1014 EXPENDITURES
6364 Site Planning-Van Dyke 102,799 $ 11,456 $ - $ - $ - $ - $ 6837 Package Treatment Plant - $ - $ - $ 2,043,880 $ 2,043,880 $ - $ 6837 Package Treatment Plant - Design - $ 59,874 $ 62,650 $ 84,676 $ 22,026 $ - $ 6865 Package Treatment Plant - Extension - $ 355,673 $ - $ - $ - $ - $ TOTAL EXPENDITURES 102,799 $ 427,003 $ 62,650 $ 2,128,556 $ 2,065,906 $ - $

SEWER FUND
This fund was created to account for the cost of providing sewer services to the general public and the user charges by which these costs are recovered.

ENTERPRISE FUND
9

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STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: Jun 13 2023
SUBJECT: Proposed Two-Year Special Funds Budget for FY 2023-24 & 2024-25.

RECOMMENDATION:

The City Council approve:

1. Resolution No. 23-___ that authorizes the adoption of the Special Funds Budget for the Fiscal Years 2023-24 and 2024-25.

Request Staff Report (Finance Director Presenting)
Council Questions of Staff
Open Public Hearing
Receive Public Comment
Close Public Hearing
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Proposed SF 2-Year Budget -
FY 2023-24 & 2024-25 -
PowerPoint
• Resolution Special Funds FY
2023-24 & 2024-25
• Proposed Special Funds
Budget FY 2023-24 & 2024-25
BACKGROUND:

The City Manager and Finance Director are presenting this proposed Special Funds Budget for Fiscal Year 2023- 24 & 2024-25 for review and comment. City Council is required to approve the proposed budget before the beginning of the new Fiscal Year, which is July 1, 2023. City Staff will schedule another Public Hearing for June 27, 2023 should the City Council need more time to review the proposed budget. This proposed budget is developed by utilizing historical spending by department, with input and review by the department heads, direction from City Council during strategic planning, and Council budget committee (Mayor Pro Tem Bilderain and Council Member Klink).

Special funds are funds established by the City Council or other agencies to collect money that must be used for a specific project or purpose. Special revenue funds provide an extra level of accountability and transparency to taxpayers and/or ratepayers that their tax or fee dollars will go toward an intended project or purpose. Page 127 of 214 The funding for capital improvements, capital maintenance (streets), and other capital related projects are proposed at $21,743,541. Project categories are segregated into the following:

Streets $ 4,389,006
Parks $ 1,630,078
Safety $ 9,913,279
Sewer $ 4,621,965
Other Projects $ 1,189,213
TOTAL $21,743,541
In addition to the above capital improvements, capital maintenance (streets), and other capital related projects, the special funds are addressing the following special tasks:
• Traffic Safety Fund – This fund is for the collection of traffic fines to improve traffic safety. The allocation of traffic fines to the City has been decreasing significantly in the past few years due to the State diverting this money to the Courts, as such, the fund will be closed in FY 2022-23, and the activity will now be recorded in the General Fund.
• Risk Management Fund - This fund is for the collection of resources, mainly from PARSAC rebates, to use for SIR (Self Insured Retention) and other Risk related expenditures. This fund is merged with the General Fund at year-end for financial reporting purposes.
• Lighting and Landscaping Assessment Districts – A parcel approved assessment district for the benefit of lighting and landscaping within a specific area. The two assessments are the Historic Plaza and Desert Vista housing.
• Public Access TV Fund – A 1% fee on our cable television bills to pay for the access of information by the public. The fee is referred to as PEG (Public, Educational, and Governmental) access channels. • TBID (Tourism Business Improvement District) - A 1.5% fee on our short-term overnight stays in our hotels, motels, and vacation home rentals that benefits the Tourism Marketing, Promotion, and Advertising of our destination. TBID Staff is currently working with legal advisors to determine the feasibility of the TBID's intent to convert from a Parking and Business Improvement Area ("89 Act Law") to a Property and Business Improvement District ("94 Act Law"). By converting to the "94 Act Law", the TBID will be its own entity separate from the City.
( "94 A ct Law")
• Landfill/Land Use Fund – The revenues are from mainly the approved Article 19 fees from the Waste Disposal Agreement (WDA) to pay for costs associated with abatement programs, recycling programs, and household hazardous waste (HHW).
• Successor Agency – The revenues from property tax increments to pay the bond (principal and interest) associated with Project Phoenix and administration of the successor agency. The City has filed its last and final ROPS with the County, pending DOF approval. The County approved the City's request of $25K, adjusted for inflation of 4% each year, to administer the Fund, which will go into effect from FY 2024-25 through FY 4042-43. The admin allowance for FY 2023-24 will be $87K, however, the admin allowance will decrease to $25K starting in FY 2024-25. • Enterprise Sewer Fund - The revenues collected from sewer service fees are used to pay for the operations and maintenance of the sewer collection system including, inspections, pumping, water quality monitoring, and permitting. Operating & Maintenance costs are projected to be $83K and $87K in Year 1 and Year 2, respectively, while charges for services are expected to be approximately $18K per year. The operating deficit in each year will be subsidized by the General Fund.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

The City Council could choose not to approve the Special Funds Budget and the Transfers associated with this Budget.

FISCAL IMPACT:

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A balanced budget.

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PROPOSED TWO-YEAR BUDGET
Budget calendar:April 25th: Preliminary General Fund Budget May 9th: Preliminary Special Funds Budget & Project Phoenix Budget May 23rd: Proposed General Fund Budget
June 13th: Proposed Special Fund Budget & Project Phoenix Budget June 27th: Budget Meeting, if needed
2

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STRATEGIC PRIORITIES

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PROPOSED SPECIAL FUNDS BUDGET
 Special funds are funds established by the City
Council or other agencies to collect money that must be used for a specific project or purpose;  Special revenue funds provide an extra level of
accountability and transparency to taxpayers and/or ratepayers that their tax or fee dollars will go toward an intended purpose. 4

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PROPOSED SPECIAL FUNDS BUDGET
• Summary
Fiscal Year
2024-25
Fiscal Year
2023-24
Revenue Sources
$14,880,284 $3,805,210 Grants & Contributions [1]
Tax Revenue $2,042,701 $2,170,451
Property Tax – SA $943,181 $878,000 [2]
Fees $547,769 $563,695
General Fund Transfers $335,000 $233,000Financing Proceeds $350,000 $0Other $26,500 $26.500 [1] A total of $ 7.2M in grants has not been secured[2] Successor Agency 5

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PROPOSED SPECIAL FUNDS BUDGET
Cumulative
Gain/(Loss) FY AMOUNT
13/14 $965,245
14/15 $850,165 ($115,080)
15/16 $658,700 ($306,545)
16/17 $513,641 ($451,604)
17/18 $736,604 ($228,641)
18/19 $994,720 $29,475
19/20 $1,150,172 $184,927
20/21 $1,190,386 $225,14121/22 $1,303,335 $338,090
22/23 - Forecast $1,278,653 $313,408
23/24 - Proposed $1,424,965 $459,720
24/25 - Proposed $1,495,914 $530,669
GAS/SB1 Tax Revenue
6

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PROPOSED SPECIAL FUNDS BUDGET
Capital Spending FY 23/24 FY 24/25
Streets $4,389,006 $5,975,701Parks $1,630,078 $50,000
Safety $9,913,279 $0
Sewer Projects $4,621,965 $0
Other Projects $1,189,213 $153,000
TOTAL $21,743,541 $6,178,701
7

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PROPOSED SPECIAL FUNDS BUDGET
Street Projects Amount Funding SourceRoads Overlay $913,750 SB1/Measure I Chip Seal $174,000 Measure I [1]
Street Repairs & Maintenance $790,822 Gas Tax/Measure IChannel at El Rey $378,422 Measure I Street Widening – Cholla Ave. $211,512 Curb, Gutter, & SidewalkSR62 Str. Imp. Phase 2B $1,920,500 MLHP/Measure I [2] TOTAL $4,389,006
[1] Cooperative agreement with the San Bernardino County to conduct pavement preventative maintenance work, which includes preparation work and chip seal or leveling course and chip seal, on approximately 4.26 miles of City roads. [2] Funding has not been secured.
8

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PROPOSED SPECIAL FUNDS BUDGET
These roads have been identified as priorities based on current pavement conditions and based on their rating on the Pavement Management System (PMS) 9

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PROPOSED SPECIAL FUNDS BUDGET
Cooperative Agreement – Pavement Preventative Maintenance Project County Road
Length
City Road
Length
Road Name Project Limits
Amboy Rd N/Valley Vista
1 1
Rd
Bullion Mountain Road
.75M N. Siesta Dr. (PMS .75 .75CL) N/Indian Tr
Mesquite Springs Road
Indian Tr. N/Sunny .50 .50Sands Dr. (NM)
Mesquite Springs Road
Jos Tr Mon Bdry N/.30M 1.01
1 S. Starlight D
Utah Trail
Utah Tr. E/Bullion Mtn
1 1
Rd
Valley Vista Road
TOTAL MILES 4.26 4.25
10

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PROPOSED SPECIAL FUNDS BUDGET
Park Projects Amount Funding SourceLuckie Park Light Poles $1,450,000 General CapitalBasketball, Tennis, and Ball $160,078 CDBG*Courts Resurfacing Projects Well Repair $20,000 General Capital
TOTAL $1,630,078
* Community Development Block Grant
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PROPOSED SPECIAL FUNDS BUDGET
Safety Projects Amount Funding Source
MLHP $4,201,813 [2]/Measure I [1] Split Rock Bridge
Hatch/Sullivan Bike Path $3,710,926 General CapitalSafe Route 2 School $1,452,450 MLHP/Measure INeighborhood Safety Project $57,500 MLHP/Measure I HSIP Two Mile, Adobe and Utah $490,590 MLHP/Measure I
TOTAL $9,913,279
[1] $3.7M in grants for this project has not been secured[2] Major Local Highway Program 12

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PROPOSED SPECIAL FUNDS BUDGET
Amount Funding Source [1] Enterprise Sewer
Wastewater Treatment Plant $2,546,394 Sewer Fund
Collection System Design $2,075,571 Sewer Fund
TOTAL $4,621,965
[1] $1.9M in grants for this project has not been secured. 13

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PROPOSED SPECIAL FUNDS BUDGET
Other Projects Amount Funding Source
Animal Control - New Shelter Design $500,000 General Capital Animal Control - Building Upgrades $177,482 General CapitalCD/Finance Building Remodel $208,129 General Capital Vehicle Replacement - Animal Control $105,000 General Capital Re-roof City Buildings $100,750 General Capital
Shade Structures - City Hall $45,000 General Capital
Vehicle Replacement - Code $40,000 General CapitalEnforcementGeneral Plan - Social Equity Element $7,852 General CapitalStreet Sweeper Replacement $5,000 General Capital TOTAL $1,189,213
14

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PROPOSED SPECIAL FUNDS BUDGET
Sewer Fund FY 23/24 FY 24/25Operating Revenue
Charges for services $17,742 $18,186
Operating Expenses
Collection System Maintenance $56,528 $60,046
Well Monitoring $24,100 $25,305Permits $2,700 $2,835
Total Operating Expenses $83,328 $88,186
Deficit * $(65,586) $(70,000)
* Deficit will be subsidized by General Fund
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PROPOSED SPECIAL FUNDS BUDGET
Other Special Funds: Traffic Safety Fund – For Traffic Safety – Revenues from Traffic fines has been decreasing significantly due to the State diverting this revenue source to the Courts, as such this fund will be closed in FY 2022-23 and expenditures will be absorbed by the General Fund.  Risk Management Fund - This fund is the collection of resources, mainly from PARSAC rebates, to use for SIR (Self Insured Retention) and other Risk related expenses. This fund is combined with the General Fund for financial reporting purposes.  Lighting and Landscaping Assessment Districts – A parcel approved assessment district for the benefit of lighting and landscaping within a specific area. The two assessments are the Historic Plaza and Desert Vista housing.  Public Access TV Fund – A 1% fee on our cable television bills to pay for the access of information by the public (Public, Educational, and Governmental, PEG, access channel). 16

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PROPOSED SPECIAL FUNDS BUDGET
Other Special Funds, continued: TBID (Tourism Business Improvement District) - A 1.5% fee on our short-term overnight stays in our hotels, motels, and vacation home rentals that benefits the Tourism Marketing, Promotion, and Advertising of our destination. Currently working on conversion from “89 Act Law” to “94 Act Law” to separate from City.  Landfill/Land Use Fund – Article 19 Fees for city clean up & recycling.  Successor Agency – Tax Increment to pay the bond (principal and interest) associated with Project Phoenix and administration of the successor agency. City has submitted its last & final ROPS pending DOF approval. Administrative fee is expected to decrease from $87K to $25K starting in FY 2024-25.  Enterprise Sewer Fund - The revenues collected from sewer service fees are used to pay for the operations and maintenance of the sewer collection system and well monitoring. The operating deficit in each year will be subsidize by the General Fund. 17

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PROPOSED SPECIAL FUNDS BUDGET
Recommendations:1. Council approve Resolution 23-__ adopting the City’s Special Funds Budget for FY 2023-24 & 2024-25.

2. Interfund Transfers for FY 2023-24
 Admin Fees:
i. $10,000 from Gas Tax Fund to GF;ii. $10,000 Measure I fund to GF; and iii. $87,500 from Successor Agency Fund to GF. 18

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Questions/Comments
19

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Thank you
20

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CITY OF TWENTYNINE PALMS

CITY COUNCIL
RESOLUTION NO. 23- ____

A RESOLUTION OF THE CITY COUNCIL O F THE CITY OF TWENTYNINE PALMS, CALIFORNIA, ADOPTING THE CITY’S SPECIAL FUND BUDGET FOR FISCAL YEAR 2023/2024 & 2024/2025
WHEREAS, the City Council is adopting a budget before the beginning of Fiscal Year July 1, 2023; and
WHEREAS, the City Council has reviewed the budget and accepted public input.

NOW, THEREFORE, BE IT RESOLVED that the City Council adopts the budget for the Fiscal Year ending June 30, 2024 & June 30, 2025 as follows:

1. The adopted budget for the special funds and capital projects funds for Fiscal Year 2023/2024 is $22,466,184 and Fiscal Year 2024/2025 is $6,830,232;

2. The City Council/Successor Agency Board of Directors have determined that the Fiscal Year 2023/2024 is $943,181 and Fiscal Year 2024/2025 is $878,000 budget complies with the dissolution laws;

3. The City Manager is authorized to transfer appropriations within funds as long as the total adopted budget allocation of that fund is not exceeded.

4. Transfers from fund to fund will require approval of the City Council, if not approved in the budget.

PASSED, APPROVED, AND ADOPTED on the 13th day of June 2023.

McArthur Wright, Mayor
ATTEST:

AYES: COUNCILMEMBER:

NOES: COUNCILMEMBER:

ABSENT: COUNCILMEMBER:

ABSTAIN: COUNCILMEMBER:
_________________________________
Cindy Villescas, City Clerk

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APPROVED
2/28/23
2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
10-0000 REVENUE
4245 Interest 1,208 $ - $ 433 $ - $ - $ - $
4254 Cares Act of 2020 261,570 $ - $ - $ - $ - $ - $
4316 Transfer In 810,225 $ 4,268,933 $ 133,333 $ 3,558,119 $ 270,000 $ 163,000 $ 4321 LEAP Grant - $ 36,015 $ 23,449 $ 90,535 $ - $ - $
4322 SB2 Planning Grant 108,208 $ 34,953 $ - $ - $ - $ - $ 4323 Major Local Hwy Program/HSIP - $ - $ - $ - $ - $ - $ 4325 Major Local Hwy Program/HBP - $ - $ - $ - $ - $ - $ 4328 Caltrans/HBP - Split Rock 22,488 $ 146,079 $ - $ 58,430 $ - $ - $ 43?? SBCTA - Split Rock - $ - $ - $ 7,570 $ - $ - $
4329 HSIPL Neighborhood Grant - PE 64,947 $ 45,053 $ - $ - $ - $ - $ 4330 SSARP Grant/Cal Trans - $ - $ - $ - $ - $ - $
4??? SBCTA/SCAG - Sullivan Bike Path - $ - $ - $ - $ 3,479,926 $ - $ 4340 I-Bank Energy Project - $ 26,450 $ - $ - $ - $ - $ 4340 I-Bank Ballfield Lights - $ - $ - $ - $ 350,000 $ - $ 4717 Trails and Greenway Prop 68 9,463 $ 80,033 $ 601,330 $ 757,450 $ - $ - $ 4719 State Grant - Luckie Park Pool - $ - $ - $ 1,300,000 $ - $ - $ 4829 Caltrans HSIP Grant 153,996 $ - $ - $ - $ - $ - $
4890 Other/Miscellaneous Revenue 30,000 $ - $ - $ - $ - $ - $ Reserves 125,806 $ 19,000 $ 5,484,835 $ 3,797,023 $ 2,410,213 $ - $ TOTAL REVENUE 1,587,911 $ 4,656,516 $ 6,243,380 $ 9,569,127 $ 6,510,139 $ 163,000 $ 10-DEPT EXPENDITURES
6295 Well Repair** 11,742 $ 8,435 $ 17,454 $ 20,000 $ 20,000 $ 50,000 $ 6335 Trails Flood Control Plan Prop 68 19,776 $ 81,986 $ 711,733 $ 806,223 $ - $ - $ 6336 Downtown Specific Plan City + Match 108,208 $ 206,188 $ - $ - $ - $ - $ 6351 General Plan/Housing Element Update 14,243 $ 45,222 $ 51,950 $ 90,535 $ - $ - $ 6351 General Plan/Social Equity Element - $ 9,172 $ 30,776 $ 47,800 $ 7,852 $ - $ 6359 Contract & Consulting 8,380 $ - $ - $ - $ - $ - $
6364 Grease Traps 55,000 $ - $ - $ - $ - $ - $
6512 Re Roof City Buildings - $ - $ 141,919 $ 242,669 $ 100,750 $ - $ 6520 Vehicle Replacement - Code Enforcement - $ - $ - $ 40,000 $ 40,000 $ - $ 6520 Vehicle Replacement - Animal Control - $ - $ - $ - $ 105,000 $ - $ 6611 Adobe/SR62 Safety Improvement Project 270 $ - $ - $ - $ - $ - $ 6693 Animal Control - New Shelter Design 16,293 $ - $ - $ 200,000 $ 500,000 $ - $ 6694 Animal Control Building - $ - $ 11,518 $ 500,000 $ 177,482 $ - $ 6778 Amboy Bike Path 11,650 $ 104,173 $ - $ - $ - $ - $ 6779 Hatch/Sullivan Bike Path - $ 19,000 $ - $ 250,000 $ 3,710,926 $ - $ 6781 Split Rock Bridge Design + CM 23,242 $ 178,940 $ 22,046 $ 75,900 $ - $ 6787 City Wide Energy Project 703 $ - $ - $ - $ - $ - $ 6803 MBTA Project Phoenix Transfer Station 730 $ (1,619) $ 1,726 $ - $ - $ - $ 6804 Theatre 29/Pioneer Park Prop 68 125,806 $ - $ - $ - $ - $ - $ 6865 Pioneer Park Property Acquisition - $ 173,480 $ 47,980 $ 47,980 $ - $ - $ 6692 Building Improvement - CD/Finance - $ - $ 41,871 $ 250,000 $ 208,129 $ - $ 6852 Shade Structures - Luckie Park 331,240 $ - $ 69,401 $ 94,000 $ - $ - $ 6852 Shade Structures - City Hall - $ - $ - $ 45,000 $ 45,000 $ - $ 6853 Playground Equipment 59,095 $ - $ - $ - $ - $ - $
6897 Replace Luckie Park Light Poles - $ - $ 14,590 $ 1,000,000 $ 1,450,000 $ - $ 6961 Hwy 62, Curb, Gutter, Sidewalk Encelia 67,617 $ - $ - $ - $ - $ - $ 6962 HSIPL-Neighborhood Safety Project - PE 86,264 $ 47,473 $ - $ - $ - $ - $ 6985 Equipment Replacement Fund - $ - $ - $ 20,000 $ 5,000 $ 3,000 $ 6985 Equipment Replacement Fund - PW Mower - $ - $ 25,407 $ 26,000 $ - $ - $ 6987 Hardware & Software Upgrades 81,900 $ - $ - $ - $ - $ - $ 6988 Luckie Park Pool Upgrade - $ 290,183 $ 5,194,759 $ 5,720,620 $ - $ - $ TOTAL EXPENDITURES 1,022,159 $ 1,162,633 $ 6,383,130 $ 9,476,727 $ 6,370,139 $ 53,000 $

GENERAL CAPITAL PROJECTS FUND
The Capital Improvement Fund tracks grants and projects that aren't related to Community Development Block Grants. 1

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
11-0000 REVENUE
4400 Community Development
Block Grant - $ - $ - $ - $ 160,078 $ 150,000 $
4400 CDBG - Homekey Program - $ - $ 511,126 $ 511,126 $ - $ - $ 4400 CDBG - Luckie Park Pool Deck - $ - $ - $ 230,000 $ - $ - $ 4410 Meal Assistance Program 56,266 $ 95,659 $ - $ 62,310 $ - $ - $ Reserves - $ - $ - $ - $ - $ - $
TOTAL REVENUE 56,266 $ 95,659 $ 511,126 $ 803,436 $ 160,078 $ 150,000 $ 11-XXXX EXPENDITURES
6865 Homekey Project - Property Acquisition - $ 511,126 $ - $ - $ - $ - $ 6905 COVID-19 Meal Assistance Progam 56,420 $ 95,505 $ 18,746 $ 62,310 $ - $ - $ 6988 Luckie Park Pool Project - CM - $ - $ 230,000 $ 230,000 $ - $ - $ 6??? Luckie Park Basketball Court, Tennis Courts,
and Ball Courts Resurfucing - $ - $ - $ - $ 160,078 $ - $ 6??? Animal Shelter - $ - $ - $ - $ - $ 150,000 $
TOTAL EXPENDITURES 56,420 $ 606,631 $ 248,746 $ 292,310 $ 160,078 $ 150,000 $

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
12-0000 REVENUE
4245 Interest 2,936 $ 2,790 $ 12,408 $ - $ 2,500 $ 2,500 $ 4264 Curb, Gutter & Sidewalk Impact
Fees 136,461 $ 119,075 $ 139,152 $ 85,000 $ 120,000 $ 120,000 $ Reserves - $ - $ - $ 135,596 $ 280,962 $ - $
TOTAL REVENUE 139,397 $ 121,865 $ 151,560 $ 220,596 $ 403,462 $ 122,500 $ 12-4043 EXPENDITURES
6655 Street Widening Desing - Cholla Ave - $ - $ 13,118 $ 24,630 $ 211,512 $ - $ 6920 Safe Route 2 School Master Plan 24,414 $ - $ - $ - $ - $ - $ 6922 Safe Route 2 School Eng/Adm - $ 24,084 $ 23,344 $ 195,966 $ 189,450 $ - $ TOTAL EXPENDITURES 24,414 $ 24,084 $ 36,462 $ 220,596 $ 400,962 $ - $

CURB, GUTTER & SIDEWALK IMPACT FEE FUND
This Fund was created to track the collection and use of impact fees collected when building permits are issued. The purpose is to provide off-site improvements . 3

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
20-0000 REVENUE
4245 Interest 9 $ - $ - $ - $ - $
4251 Vehicle Code Fines 3,377 $ 3,626 $ 1,845 $ 2,000 $ - $ - $ 4316 Transfer in 10,000 $ 15,000 $ 25,000 $ 30,000 $ - $ - $ Reserves - $ - $ - $ - $ - $ - $
TOTAL REVENUE 13,386 $ 18,626 $ 26,845 $ 32,000 $ - $ - $ 20-4043 EXPENDITURES
6530 Traffic Signal/Lights-SCE 7,636 $ 9,625 $ 9,163 $ 20,000 $ - $ - $ 6531 Signal Maintenance 20,741 $ 8,322 $ 10,465 $ 10,000 $ - $ - $ TOTAL EXPENDITURES 28,377 $ 17,947 $ 19,628 $ 30,000 $ - $ - $

TRAFFIC SAFETY FUND
The source of revenue is a percentage of traffic fines collected for violations within the City. The funds must be expended in a manner that enhances traffic safety. Funds cannot be used for police salaries.
4

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
21-0000 REVENUE
4245 Interest - $ 150 $ 4,395 $ - $ - $ - $
4432 RMRA SB1 - $ 74,703 $ 408,120 $ 663,593 $ 670,851 $ 704,394 $ Reserves - $ - $ 257,503 $ - $ 10,899 $ - $
TOTAL REVENUE - $ 74,853 $ 670,018 $ 663,593 $ 681,750 $ 704,394 $ 21-4043 EXPENDITURES
6772 Overlay by Street Crew - $ - $ 670,018 $ 663,593 $ 681,750 $ 694,394 $ 6850 Admin Fees Transferred to GF - $ - $ - $ - $ - $ 10,000 $ TOTAL EXPENDITURES - $ - $ 670,018 $ 663,593 $ 681,750 $ 704,394 $ RMRA Funds are derived from a per gallon fuel excise tax, diesel fuel sales tax and vehicle registartion fee. These funds are used on roads for major work rather then day to day repairs.

ROAD MAINTENANCE REHAB ACCOUNT (RMRA) SB1
5

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
22-0000 REVENUE
4245 Interest 927 $ 1,129 $ 4,781 $ - $ - $ - $
4432 2032 Gov's Add'l Funds - $ - $ - $ - $ - $ - $
4439 2103 Funds 195,201 $ 235,636 $ 185,980 $ 269,359 $ 256,475 $ 269,299 $ 4440 2106 Funds 96,023 $ 108,748 $ 85,005 $ 117,219 $ 109,619 $ 115,100 $ 4441 2107 Funds 201,703 $ 197,208 $ 176,026 $ 254,696 $ 208,331 $ 218,748 $ 4442 2107.5 Funds 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 4443 2105 Funds 149,059 $ 165,115 $ 129,776 $ 186,615 $ 173,689 $ 182,373 $ 4890 Other/Misc - $ - $ - $ - $ - $ - $
4910 Sale of Assets - $ - $ - $ - $ - $ - $
Reserves - $ - $ - $ 58,000 $ 26,708 $ 24,461 $
TOTAL REVENUE 648,913 $ 713,836 $ 587,568 $ 891,889 $ 780,822 $ 815,981 $ 22-4043 EXPENDITURES
5110 Salaries 262,852 $ 300,395 $ 312,562 $ 400,142 $ 382,828 $ 401,402 5235 Vehicle/Cell Allowance 270 $ 1,440 $ 1,465 $ 1,920 $ 1,920 $ 1,920 5250 Insurance 41,768 $ 46,590 $ 47,453 $ 63,005 $ 64,979 $ 67,282 5251 Retirement 27,236 $ 29,970 $ 31,879 $ 39,420 $ 41,993 $ 44,062 5252 Workers Comp 9,145 $ 7,937 $ 11,393 $ 16,006 $ 13,399 $ 16,056 5253 PTO 4,251 $ 4,178 $ 12,014 $ 10,000 $ 5,000 $ 8,000 6210 Electricity 3,025 $ 6,347 $ 6,021 $ 7,299 $ 7,613 $ 7,994 6211 Natural Gas 652 $ 253 $ 542 $ 700 $ 700 $ 700
6212 Water 646 $ 253 $ 255 $ 600 $ 600 $ 600
6221 Telephone 579 $ 142 $ 209 $ 2,000 $ 300 $ 300
6241 Office Supplies - $ 438 $ 540 $ 1,000 $ 800 $ 800
6251 Training & Meetings - $ - $ - $ 3,000 $ 2,000 $ 2,000 6262 Equipment Repair &
Maintenance 28,572 $ 50,094 $ 21,384 $ 60,000 $ 55,000 $ 55,000 6272 Vehicle Repair &
Maintenance 14,775 $ 14,330 $ 24,594 $ 20,000 $ 20,000 $ 20,741 6291 Building Repair &
Maintenance 1,725 $ 3,115 $ 1,038 $ 6,000 $ 4,000 $ 4,000 6312 Small Equip. & Tools 2,519 $ 2,895 $ 1,656 $ 6,000 $ 3,000 $ 3,000 6327 Equipment Lease 26 $ - $ - $ 1,000 $ 1,000 $ 1,000 6332 Uniforms 3,344 $ 2,451 $ 3,393 $ 4,000 $ 4,000 $ 4,000 6359 Contract Services 8,751 $ 4,573 $ 4,710 $ 4,710 $ 4,946 $ 5,193 6432 Liability and Property
Insurance 32,915 $ 30,265 $ 41,661 $ 41,661 $ 43,744 $ 45,931 6508 Capital Equipment - $ - $ - $ 58,000 $ - $ -
6532 Signs & Striping 4,787 $ 2,875 $ 3,651 $ 10,000 $ 7,000 $ 7,000 6534 Road Improvement
& Maintenance 1,663 $ 140 $ 286 $ 5,000 $ 5,000 $ 5,000 6536 Asphalt & Concrete 9,433 $ 309 $ 123 $ 15,000 $ 12,000 $ 12,000 6537 Emergency Road Work 139 $ 1,331 $ - $ 8,000 $ 3,000 $ 3,000 6556 Street Lighting-SCE 46,954 $ 52,189 $ 50,467 $ 57,000 $ 52,000 $ 52,000 6765 Sign Material 34,843 $ 36,553 $ 6,698 $ 40,426 $ 34,000 $ 37,000 6850 Admin Fees Transferred to GF 10,000 $ 10,000 $ 8,333 $ 10,000 $ 10,000 $ 10,000 TOTAL EXPENDITURES 550,870 $ 609,063 $ 592,327 $ 891,889 $ 780,822 $ 815,981 $

GAS TAX FUND
Also referred to as the Highway Users Tax is derived from $.18 per gallon of gasoline sold. Revenue is divided between the State, cities and counties. The funds must be spent on street repair and maintenance within the roadway, and cannot be used to widen or extend a road. 6

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2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
23-0000 REVENUE
4245 Interest 160 $ 23 $ 91 $ - $ - $ - $
Reserves - $ - $ - $ 5,859 $ - $ - $
TOTAL REVENUE 160 $ 23 $ 91 $ 5,859 $ - $ - $
23-4043 EXPENDITURES
6351 Signal Maintenance - $ - $ 5,692 $ - $ - $ - $
6823 Message Board 28,615 $ - $ - $ 5,859 $ - $ - $
6972 Micro Surfacing Projects - $ - $ - $ - $ - $ - $
TOTAL EXPENDITURES 28,615 $ - $ 5,692 $ 5,859 $ - $ - $ TCRF LOAN REPAYMENT SB1
The source of revenue is a loan repayment from the State for the Traffic Congestion Relief Fund (TCRF). TCRF is a percentage of traffic fines collected for violations within the City.
7

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ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
26-0000 REVENUE
4720 HSIPL Neighborhood Safety Project - Construction - $ - $ - $ 1,040,000 $ 50,000 $ - $ 4721 Split Rock Bridge Construction - Calgrants * $ - - $ - $ 2,175,400 $ 3,234,665 $ - $ 4721 Split Rock Bridge Construction - SBCTA* $ - - $ - $ 217,540 $ 419,085 $ - $ 4721 Split Rock Bridge ROW - Calgrants* - $ - $ - $ 26,559 $ - $ - $ 4721 Split Rock Bridge ROW - SBCTA* - $ - $ - $ 3,441 $ - $ - $ 4722 HSIP Cycle 10 Two Mile, Adobe and Utah - $ - $ - $ 426,600 $ 426,600 $ - $ 4723 HSIPSL - 5448(011) - Two Mile, Adobe and Utah - PE - $ 39,974 $ (6,418) $ 20,026 $ - $ - $ 4725 ATP(010) SRS E&P and Final Design CalTrans 42,728 $ 152,313 $ - $ 47,047 $ - $ - $ 4725 ATP(010) SRS Construction CalTrans - $ - $ - $ 1,263,000 $ 1,263,000 $ - $ 4740 Major Local Hwy Program Median HWY 62 7,155 $ 19,087 $ (455) $ 601,357 $ - $ - $ 47?? MLHP - SR62 Str. Imp. Phase 2B* - $ - $ - $ - $ 1,670,000 $ 3,648,110 $ TOTAL REVENUE 49,883 $ 211,374 $ (6,873) $ 5,820,970 $ 7,063,350 $ 3,648,110 $ 26-4043 EXPENDITURES
6612 HSIPSL - 5448(011) - Two Mile, Adobe and Utah - PE - $ 44,415 $ 3,728 $ 15,585 $ - $ - $ 6612 HSIP Two Mile, Adobe and Utah - Construction - $ - $ - $ 426,600 $ 426,600 $ - $ 6782 Split Rock Bridge Construction - $ - $ 21,335 $ 2,392,940 $ 3,653,750 $ - $ 6782 Split Rock Bridge Construction - ROW - $ - $ 2,950 $ 30,000 $ - $ - $ 6920 ATP Safe Routes to School Grant PS&E 79,777 $ 115,264 $ - $ 8,959 $ - $ - $ 6920 ATP Safe Routes to School Construction - $ - $ - $ 1,263,000 $ 1,263,000 $ - $ 6962 HSIPL Neighborhood Safety Project - Construction - $ - $ - $ 1,040,000 $ 50,000 $ - $ 6970 Median HWY 62 P&E 15,005 $ 11,238 $ 32,801 $ 26,357 $ - $ - $ 6970 Median Construction HWY 62 - $ - $ 142,500 $ 575,000 $ - $ - $ 69?? SR62 Str. Imp. Phase 2B - $ - $ - $ - $ 1,670,000 $ 3,648,110 $ TOTAL EXPENDITURES 94,782 $ 170,917 $ 203,314 $ 5,778,441 $ 7,063,350 $ 3,648,110 $ * Funding has not been secured as of 6/13/2023.

MAJOR LOCAL HIGHWAY PROGRAM
The Major Local Highway Fund accounts for street projects funded by Major Local Highway Funds received from SBCTA, Cal-Trans or other State Funds. 8

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ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
27-0000 REVENUE
4245 Interest 3,894 $ 4,622 $ 22,923 $ - $ - $ - $
4455 Measure I Distribution 623,201 $ 429,872 $ 411,914 $ 672,105 $ 617,736 $ 674,537 $ Reserves - $ - $ - $ 539,576 $ 1,049,239 $ - $
TOTAL REVENUE 627,095 $ 434,494 $ 434,837 $ 1,211,681 $ 1,666,975 $ 674,537 $ 27-4043 EXPENDITURES
6612 HSIP Two Mile, Adobe and Utah - $ - $ 5,934 $ 63,990 $ 63,990 $ - $ 6772 Overlay/Chip Seal Work by Street Crew 181,796 $ 184,247 $ - $ 300,000 $ 406,000 $ 250,000 $ 6781 Split Rock Bridge Const Eng/Admin - $ - $ - $ 358,941 $ 548,063 $ - $ 6781 Split Rock Bridge Design - $ - $ - $ - $ - $ - $
6781 Split Rock Bridge Const Inspection - $ - $ - $ 120,000 $ - $ - $ 6850 Admin Fees Transferred to GF 10,000 $ 10,000 $ 8,333 $ 10,000 $ 10,000 $ 10,000 $ 6886 Pavement Management Program - $ - $ - $ - $ - $ - $ 6961 Hwy 62 - Curbs, Gutters &
Sidewalks Engineering from
Encelia Avenue to Larrea - $ - $ - $ - $ - $ - $
6962 HSIPL(009) - Neighborhood Safety Engineering/Admin - $ - $ 17,858 $ 156,000 $ 7,500 $ - $ 6970 Median Construction HWY 62 - $ - $ 34,455 $ 86,250 $ 2,500 $ - $ 69?? SR62 Str. Imp. Phase 2B - $ - $ - $ - $ 250,500 $ 547,217 $ 6973 Channel at El Rey Cost Sharing/Admin - $ - $ - $ 116,500 $ 378,422 $ - $ TOTAL EXPENDITURES 191,796 $ 194,247 $ 66,580 $ 1,211,681 $ 1,666,975 $ 807,217 $ MEASURE "I" FUNDS BUDGET 2010 TO 2040
Measure I funds are derived from a one-half percent addition to the sales taxes approved by voters of the county. The funds are for use on roads for major work rather then day-to- day repairs.
9

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ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
32-0000 REVENUE
4245 Interest 2,265 $ 1,023 $ 2,792 $ - $ - $ - $
4465 Article 8 75,585 $ - $ - $ - $ - $ - $
Reserves 113,711 $ 194,894 $ 169,339 $ 176,699 $ 21,000 $ - $ TOTAL REVENUE 191,561 $ 195,917 $ 172,131 $ 176,699 $ 21,000 $ - $ 32-4043 EXPENDITURES
5110 Salaries 96,730 $ 113,771 $ - $ - $ - $ - $
5250 Insurance 15,341 $ 17,291 $ - $ - $ - $ - $
5251 Retirement 10,164 $ 11,439 $ - $ - $ - $ - $
5252 Workers Comp 3,325 $ 2,887 $ - $ - $ - $ - $
6612 HSIPSL - 5448(011) - Two Mile, Adobe and Utah - Eng/Adm - $ 15,853 $ 3,545 $ 3,967 $ - $ - $ 6772 Overlay Work by Street Crew - $ - $ 168,586 $ 170,000 $ 21,000 $ - $ 6781 Split Rock Bridge Engineering 4,995 $ - $ - $ - $ - $ - $ 6850 Admin Fees Transferred to GF 10,000 $ - $ - $ - $ - $ - $ 6961 HWY 62, CG&S Encelia Engineering 12,150 $ - $ - $ - $ - $ - $ 6962 HSIPL Neighborhood Safety Project 32,255 $ 24,318 $ - $ - $ - $ - $ 6970 Median Design HWY 62 6,466 $ 10,358 $ - $ 2,732 $ - $ - $ 6972 Micro-Surfacing Projects 135 $ - $ - $ - $ - $ - $ TOTAL EXPENDITURES 191,561 $ 195,917 $ 172,131 $ 176,699 $ 21,000 $ - $ Up until FY 21/22, the City's Public Works Department used to have 30% of their salaries charged against Article 8 Funds. The City's PW Department is responsible for implementing the City's Pavement Management System (PMS), which includes planning, management, purchasing and pavement of the City's Streets.

Also known as Local Transportation Funds (LTF), Article 8 gets 1/4 of one percent of sales taxes state-wide. It is distributed based on population. Transit has first call for these funds and what they (MBTA) don't use is made available to cities for street maintenance. Starting in FY 21/22, all LTF funds will be required to go to Transit agencies and the City will no longer receive these funds.

ARTICLE 8 OF THE PUBLIC UTILITIES CODE
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ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
35-0000 REVENUE
4316 Transfer in from GF 10,000 $ - $ - $ - $ - $ - $
4890 Workers Comp Refund 36,331 $ - $ 31,609 $ 31,609 $ 20,000 $ 20,000 $ Reserves - $ - $ 11,211 $ 18,391 $ - $ - $
TOTAL REVENUE 46,331 $ - $ 42,820 $ 50,000 $ 20,000 $ 20,000 $ 35-0107 EXPENDITURES
6436 Claims Settlement - $ 16,376 $ 42,820 $ 50,000 $ 20,000 $ 20,000 $ TOTAL EXPENDITURES - $ 16,376 $ 42,820 $ 50,000 $ 20,000 $ 20,000 $

RISK MANAGEMENT
This Fund is the collection of resources, mainly from PARSAC rebates, to use for SIR (Self Insured Rentention) and other Risk related expenses. 11 Page 161 of 214
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ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
41-1000 REVENUE
4107 Homeowner
Assessments 13,441 $ 12,914 $ 12,709 $ 12,832 $ 12,892 $ 12,892 $ 4245 Interest 478 $ 370 $ 1,366 $ - $ - $ - $
Reserves - $ 6,464 $ 1,754 $ 10,813 $ 10,503 $ 10,661 $ TOTAL REVENUE 13,919 $ 19,748 $ 15,829 $ 23,645 $ 23,395 $ 23,553 $ 41-4043 EXPENDITURES
6210 Electricity 370 $ 395 $ 372 $ 795 $ 435 $ 478 $
6212 Water 1,724 $ 2,253 $ 701 $ 2,200 $ 2,310 $ 2,426 $ 6233 Publishing/Notices - $ - $ - $ 250 $ 250 $ 250 $
6260 Graffiti Removal - $ - $ - $ 400 $ 400 $ 400 $
6290 Maintenance Contract 10,600 $ 17,100 $ 14,756 $ 20,000 $ 20,000 $ 20,000 $ TOTAL EXPENDITURES 12,694 $ 19,748 $ 15,829 $ 23,645 $ 23,395 $ 23,553 $

LIGHTING & LANDSCAPING DISTRICT DESERT VISTA
This is an assessment District for a development within the City. The homeowners are charged on their property taxes and the proceeds are used for street lights within the project and upkeep of the landscaping around the perimeter. 12 Page 162 of 214
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ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
42-0000 REVENUE
4245 Interest 520 $ 416 $ 1,637 $ - $ - $ - $
4500 Subscriber
Contributions 24,712 $ 24,313 $ 11,724 $ 24,000 $ 24,000 $ 24,000 $ Reserves - $ 1,295 $ - $ 56,081 $ 25,438 $ 10,303 $
TOTAL REVENUE 25,232 $ 26,024 $ 13,361 $ 80,081 $ 49,438 $ 34,303 $ 42-0104 EXPENDITURES
6275 Videotaping Meetings - $ 1,030 $ - $ - $ - $ - $
6751 Agenda Management 15,311 $ 20,759 $ 18,455 $ 22,231 $ 23,788 $ 25,453 $ 6776 Public Access Website 2,760 $ 3,068 $ - $ 3,850 $ 3,850 $ 3,850 $ 6823 Electronic Equipment 5,159 $ 1,167 $ 41,237 $ 54,000 $ 21,800 $ 5,000 $ TOTAL EXPENDITURES 23,230 $ 26,024 $ 59,692 $ 80,081 $ 49,438 $ 34,303 $ The City receives funds from the cable television franchisee to support public access programming. The funds are used for programming and payment for television time.

PUBLIC ACCESS TV FUND
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ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
43-0000 REVENUE
4107 Homeowner
Assessments 14,037 $ 6,909 $ 7,377 $ 9,038 $ 9,635 $ 10,117 $ 4245 Interest 1 $ 5 $ 11 $ - $ - $ - $
Reserves - $ - $ - $ - $ - $ - $
TOTAL REVENUE 14,038 $ 6,914 $ 7,388 $ 9,038 $ 9,635 $ 10,117 $ 43-4043 EXPENDITURES
6212 Water 940 $ 975 $ 858 $ 1,177 $ 1,295 $ 1,424 $
6290 Maintenance Contract 6,000 $ 6,000 $ 5,000 $ 7,861 $ 8,340 $ 8,693 $ TOTAL EXPENDITURES 6,940 $ 6,975 $ 5,858 $ 9,038 $ 9,635 $ 10,117 $

LIGHTING & LANDSCAPING DISTRICTS HISTORIC PLAZA
This is an assessment District for a development within the City. The homeowners are charged on their property taxes and the proceeds are used for street lights within the project and upkeep of the landscaping around the perimeter. 14 Page 164 of 214
2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT ACTUAL ACTUAL THROUGH AMENDED PROPOSED PROPOSED CODE THRU SEPT THRU SEPT 10/22 THRU 5/23 BUDGET BUDGET BUDGET 51-0000 REVENUE
4125 Visit 29! Tourism Fee 284,277 $ 359,394 $ 219,223 $ 285,000 $ 315,000 $ 330,000 $ 4150 Merchandise for Resale 2,031 $ 2,011 $ 734 $ 500 $ 500 $ 500 $ 4152 Partnership Program 1,456 $ 291 $ - $ 3,500 $ 3,500 $ 3,500 $ 4245 Interest 1,262 $ 1,511 $ 7,717 $ 2,000 $ 500 $ 500 $ 4890 Other/Misc Revenue 2,500 $ - $ - $ - $ - $ - $
Reserves - $ - $ - $ - $ 47,284 $ 32,169 $
TOTAL REVENUE 291,526 $ 363,207 $ 227,674 $ 291,000 $ 366,784 $ 366,669 $ 51-1013 EXPENDITURES
5110 Salaries 74,764 $ 80,252 $ 60,813 $ 87,184 $ 100,125 $ 102,686 $ 5120 Salaries Part-time 3,078 $ 13,717 $ 9,951 $ 44,500 $ 33,221 $ 33,415 $ 5250 Health Benefits 12,123 $ 13,174 $ 12,274 $ 12,000 $ 29,781 $ 30,917 $ 5251 Retirement Benefits 5,780 $ 6,064 $ 4,559 $ 5,000 $ 7,690 $ 7,907 $ 5252 Workers comp 4,325 $ 2,233 $ 2,830 $ 4,000 $ 4,667 $ 5,444 $ 5254 Unemployement 592 $ - $ - $ 305 $ 300 $ 300 $
6241 Office Supplies 1,295 $ 2,802 $ 896 $ 2,500 $ 3,000 $ 3,000 $ 6244 Miscellaneous 4,495 $ 6,295 $ 775 $ 4,000 $ 5,000 $ 5,000 $ 6245 Contingency - $ - $ - $ 10,000 $ 10,000 $ 10,000 $ 6251 Meeting & Travel - $ 282 $ - $ 1,000 $ 1,000 $ 1,000 $ 6281 Covid-19 Safety Measures 349 $ 412 $ - $ - $ - $ - $ 6291 Building & Maint 826 $ 246 $ 200 $ 2,000 $ - $ - $ 6340 Merchandise for Resale - $ 232 $ - $ - $ - $ - $
6343 Video Production 12,560 $ 22,000 $ 8,000 $ 16,000 $ 20,000 $ 20,000 $ 6344 Broadcast Media 15,250 $ 16,816 $ 21,000 $ 24,000 $ 30,000 $ 30,000 $ 6345 Regional Print Ad's - $ 2,730 $ 2,730 $ 2,000 $ 2,000 $ 6346 Tourism Print Ad's - $ 1,800 $ - $ - $ - $ - $
6347 Trade Conventions - $ 1,011 $ 5,520 $ 8,020 $ 10,000 $ 5,000 $ 6353 Contract Services - $ 1,970 $ 14,430 $ 45,000 $ 10,000 $ - $ 6356 Internet Marketing & Website Design 15,654 $ 29,994 $ 21,022 $ 53,520 $ 50,000 $ 50,000 $ 6360 Special Projects - $ - $ - $ - $ 20,000 $ 30,000 $ 6371 Community Events/Sponsorships 17,439 $ 17,895 $ 12,073 $ 20,000 $ 30,000 $ 30,000 $ 6518 Electronic Equipment - $ - $ 578 $ 578 $ - $ - $
6841 Legal Services - $ - $ 6,268 $ 15,000 $ - $ - $
TOTAL EXPENDITURES 168,530 $ 217,195 $ 183,919 $ 357,337 $ 366,784 $ 366,669 $

TOURISM BUSINESS IMPROVEMENT DISTRICT
The TBID was established in 2017 to levy and collect assessments on all business that are subject to the City's Transit Occupancy Tax to raise funds for marketing the City as a tourism destination. The TBID is funded by a 1.5% Visit 29! Tourism Fee and is managed by a TBID Advisory Board. 15 Page 165 of 214
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ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
62-0000 REVENUE
4252 Coronavirus Local Fiscal Recovery Fund Grant - $ 3,118,608 $ 3,118,608 $ 3,118,608 $ - $ - $ TOTAL REVENUE - $ 3,118,608 $ 3,118,608 $ 3,118,608 $ - $ - $ 62-0000 EXPENDITURES
6282 COVID-19 Expenses - $ 2,189 $ - $ - $ - $ - $
6850 Transfer Out - Revenue Loss - Government services - $ 3,116,419 $ 3,118,608 $ 3,118,608 $ - $ - $ TOTAL EXPENDITURES - $ 3,118,608 $ 3,118,608 $ 3,118,608 $ - $ - $ THE AMERICAN RESCUE PLAN: CORONAVIRUS LOCAL FISCAL RECOVERY FUND On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law. The Act established the Coronavirus State and Local Fiscal Recovery Funds to address the COVID-19 public health emergency and its economic impacts. This Fund was created to track the collection and use of funds received through the ARPA of 2021. 16 Page 166 of 214
2020-2021 2021-2022 2022-2023 2022-2023 2023-2024 2024-2025

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
65-0000 REVENUE
4245 Interest 945 $ 712 $ 3,110 $ - $ - $ - $
4262 Recycling Grant - Beverage Container Recycling 7,519 $ 7,750 $ 7,239 $ 7,100 $ 7,100 $ 7,100 $ 4262 Recycling Grant - SB1383 - $ - $ 4,325 $ 43,262 $ 38,937 $ - $ 4263 Perch Haul/Article 19 Fees 62,548 $ 61,847 $ 25,545 $ 48,000 $ 48,000 $ 48,000 $ 4890 Other/Miscellaneous Revenue - $ 26,830 $ - $ - $ - $ - $ Reserves - $ - $ 22,123 $ 52,662 $ 52,527 $ 53,603 $
TOTAL REVENUE 71,012 $ 97,139 $ 62,342 $ 151,024 $ 146,564 $ 108,703 $ 65-1011 EXPENDITURES
6260 Graffiti removal - $ - $ - $ 2,000 $ 2,000 $ 2,000 $ 6509 Recycling Programs - SB1383 - $ - $ 4,325 $ 43,262 $ 38,937 $ - $ 6548 Dangerous Building
Abatement 47,743 $ 6,371 $ 7,600 $ 52,000 $ 52,000 $ 52,000 $ 6551 Recycling Programs - Beverage Container 15,098 $ 6,653 $ 8,072 $ 7,100 $ 7,100 $ 7,100 $ 6560 Household Hazardous
Waste Program 21,126 $ 21,761 $ 22,413 $ 25,000 $ 25,000 $ 25,000 $ 6562 Mojave Desert JPA 19,592 $ 20,436 $ 19,932 $ 21,662 $ 21,527 $ 22,603 $ TOTAL EXPENDITURES 103,559 $ 55,221 $ 62,342 $ 151,024 $ 146,564 $ 108,703 $

LANDFILL/LAND USE FUND BUDGET
The revenues for this Fund are mainly from the recently approved Article 19 fees from the Waste Disposal Agreement (WDA) to pay for cost associated with abatement programs, recycling programs, and houseshold hazardous waste (HHW). 17 Page 167 of 214
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ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
74-0000 REVENUE
4108 Property Taxes 775,580 $ 982,243 $ 292,381 $ 963,899 $ 943,181 $ 878,000 $ TOTAL REVENUE 775,580 $ 982,243 $ 292,381 $ 963,899 $ 943,181 $ 878,000 $ 74-0000 EXPENDITURES
6359 Contract & Consulting SVC 7,967 $ 6,213 $ 2,420 $ 7,700 $ 7,700 $ 8,600 $ 6437 Bond Interest 491,892 $ 482,147 $ 470,115 $ 470,656 $ 457,981 $ 444,400 $ 6801 Bond Principal 305,000 $ 360,000 $ 375,000 $ 375,000 $ 390,000 $ 400,000 $ 6850 Transfer to General Fund 131,250 $ 68,750 $ 112,273 $ 110,543 $ 87,500 $ 25,000 $ TOTAL EXPENDITURES 936,109 $ 917,110 $ 959,808 $ 963,899 $ 943,181 $ 878,000 $ The revenues from property tax increments to pay the bonds (principal and interest) associated with Project Phoenix and administration of the Successor Agency.

SUCCESSOR AGENCY NON-HOUSING
18 Page 168 of 214
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ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 5/25/2023 BUDGET BUDGET BUDGET
80-0000 REVENUE
4316 Transfer In - $ 478,937 $ 55,625 $ 566,750 $ 65,000 $ 70,000 $ 4880 Charge for Services - $ 5,218 $ 13,995 $ 12,000 $ 17,742 $ 18,186 $ 4891 Clean Water Planning Loan 33,069 $ 377,778 $ 60,231 $ 572,366 $ 136,531 $ - $ 4891 Clean Water Planning Loan - USGS Study - $ - $ - $ 1,000,000 $ 1,000,000 $ - $ 4??? Federal Earmark - STAG1* - $ - $ - $ 663,224 $ 619,362 $ - $ 4??? Federal Earmark - STAG2* - $ - $ - $ 1,275,000 $ 1,275,000 $ - $ 4??? Contributions - $ - $ - $ 1,100,000 $ 1,100,000 $ - $ Reserves - $ - $ - $ - $ 491,658 $ - $
TOTAL REVENUE 33,069 $ 861,933 $ 129,851 $ 5,189,340 $ 4,705,293 $ 88,186 $ 80-0000 EXPENDITURES
6365 Preliminary Design - Collection System - $ 15,959 $ 207,740 $ 272,255 $ 64,515 $ - $ 6820 Feasibility Study - Collection System 83,356 $ 226,154 $ 17,061 $ 34,126 $ 17,065 $ - $ 6821 Funding Plan - Collection System - $ - $ 12,215 $ 34,003 $ 21,788 $ - $ 6359 Wastewater Treatment Planning - $ - $ 122,719 $ 69,929 $ 1,210,434 $ - $ 6843 Environmental Analysis - $ 85,377 $ 128,890 $ 162,053 $ 33,163 $ - $ 6820 Feasibility Study - Wastewater Treatment Plant - $ - $ - $ 111,416 $ - $ - $ 6821 Funding Plan - Wastewater Treatment Plant - $ - $ - $ 82,556 $ - $ - $ 6365 Preliminary Design - Wastewater Treatment Plant - $ - $ - $ 42,500 $ - $ - $ 6837 Wastewater Treatment Plant - $ - $ 123,818 $ 927,472 $ - $ - $ 6359 Outreach - $ - $ - $ 42,763 $ 42,763 $ - $
6822 USGS Study - $ - $ - $ 1,078,658 $ 1,104,757 $ - $ 6838 Collection System - Full Design - $ 26,099 $ 313,786 $ 1,883,200 $ 1,883,200 $ - $ 6364 Site Planning-Carollo - $ - $ - $ 61,078 $ - $ - $ 6363 Assessment Engineers - $ - $ - $ - $ - $ - $
6359 Owners Representative & Project Management - $ - $ - $ 94,042 $ 55,840 $ - $ 6865 Property Acquisition - Wastewater Treatment Plant - $ - $ 3,750 $ - $ - $ - $ 6923 Right of Way Acquistion - $ - $ - $ 188,440 $ 188,440 $ - $ 80-4047 Sewer Department
Pumping - $ - $ - $ 4,500 $ - $ - $
6533 Maintanance - $ 35,269 $ 45,100 $ 66,750 $ 83,328 $ 88,186 $ 80-4048 Treatment Department
6843 Environmental - $ 912 $ - $ - $
Maintanance - $ - $ - $ - $
Water Testing - $ - $ - $ 4,500 $ - $ - $
TOTAL EXPENDITURES 83,356 $ 389,770 $ 975,079 $ 5,160,241 $ 4,705,293 $ 88,186 $ * Funding has not been secured as of 6/13/2023.

SEWER FUND
This fund was created to account for the cost of providing sewer services to the general public and the user charges by which these costs are recovered.

ENTERPRISE FUND
19 Page 169 of 214

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STAFF REPORT
TO: City Council
FROM: City Manager
FOR MEETING: Jun 13 2023
SUBJECT: City Manager's Written Report and Intention to Levy Sewer Fees for FY 2023-24.

RECOMMENDATION:

The City Council :
1) Adopt Resolution No.23-___, (A Resolution of the City Council of the City Twentynine Palms Directing the Filing of the Annual Written Report for the City's Sewer Fees. 2) Receive and approve the City Manager's Written Report as filed or as amended. 3) Adopt Resolution No.23-___, (A Resolution of the City Council of the City of Twentynine Palms Declaring its intention to levy and collect assessments pursuant to Section 5471 of the California Health and Safety Code for Fiscal Year 2023-2024).
4) Direct City Clerk to schedule a Public Hearing to notify the public of the City's intent to place the sewer fees on the Tax Roll for Fiscal Year 2023-24.

ORDER OF PROCEDURE:

Request Staff Report (City Manager Presenting)
Council Questions of Staff
Request Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• 1st Resolution 1st meeting -
Sewer Assessment
• 2nd Resolution 1st meeting -
Sewer Assessment
• City Manager's Written Report
FY 2023-24
• Sewer Rate Study Final
Report Dec 23 2020
BACKGROUND:

Pursuant to Sections 5471 of the California Health and Safety Code, "any entity shall have power, by an Ordinance or Resolution approved by a two-thirds vote of the members of the legislative body thereof, to prescribe, revise and collect, fees, tolls, rates, rentals, or other charges for services and facilities furnished by it, either within or without its territorial limits, in connection with its water, sanitation, storm drainage, or sewerage system."

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Beginning March 2021, the City of Twentynine Palms (City) began providing sewer service to customers in a new relatively small downtown project (Phoenix Project) in Fiscal Year (FY) 2020-21, including the Joshua Tree National Park (JTNP) Visitor Center. This project is unique in that it has a limited number of customers and has a centralized septic tank serving the private businesses, multi-purpose facility, and Joshua Tree National Park Visitor/Cultural Center. The City's adopted sewer rate identified in this report is intended to fund operations and maintenance (O&M) costs and capital maintenance costs for this specific system. The amount of the charge is based on the amount discharged on an Equivalent Dwelling Unit or EDU. Based on the Sewer Rate Study conducted by Willdan (attached), City's Sewer Rate independent consultant, an EDU represents the average daily discharge for a single-family residential home estimated at 175 gallons per day. The rate structure was designed so that each system user will be charged an amount that is proportional to the cost of serving that user based on their respective flows and which does not exceed the cost of serving that customer. The City initially brought forward the five-year rate study in April 2021, however given the Pandemic, the City Council deferred it six months, and Staff started to bill in January 2022. Then for the 2022/23 property tax roll, those fees were included on the bill which now leads us to 2023/24 property tax roll.

Utility Rates are meant to recover the cost of operations in a typical scenario, however due to the small project, the General Fund is subsidizing the operation. Here is the summary of the revenue and expenses:

Revenue $17,742 (various business and Joshua Tree National Park annual billings) Expenses:
• San Bernardino County Special Districts - Collection System Maintenance - $56,528 • Well Monitoring (Kennedy Jenks, Water District Engineer) - $24,100 • Colorado Regional Water Quality Control Board Permits - $2,700 Total Expenses $83,328
DEFICIT - $65,586, subsidized by the General Fund
The City had an outreach meeting on February 20, 2020 to discuss the rates and methodology. Staff felt after the meeting that most of the businesses and/or owners were comfortable with the rates as proposed comparing to the Hi-Desert Water District (HDWD) rates. In contrast to HDWD, the City of Twentynine Palms will NOT charge businesses for connection fees or private property connection costs.

To ensure the rates were comparable to HDWD rates, the City of Twentynine Palms General Fund will have to subsidize the sewer enterprise fund up to $65,000 in FY 2023-24. The City Council approved the Sewer Rate on February 23, 2021, and the fee was added to the City's Master Fee Schedule adopted by City Council on June 14, 2022 through Resolution No. 22-14. Through this Resolution, City Council approved for fees to be adjusted by the Consumer Price Index (CPI) annually. The average Consumer Price Index for the past 12 months for the region is 4.6%; however, sewer fees will only be increased by 2.6% following Council guidance. These sewer fees are governed by Proposition 218, which establishes the following: 1) rates must be based upon the proportionate cost of providing the service and not exceed the cost of providing the service; 2) rates must be fair and equitable; and 3) a rate payer cannot subsidize another rate payer.

For levying annual assessments, it is necessary that the City Council adopt the initial Resolution ordering the City Manager to file a report. (Note: the City Manager’s Report has already been filed and is made a part of this agenda item for the Council’s review and approval). Second, the City Council should approve the report as filed, or the Council may modify and then approve the report. Third, adopt a Resolution of intention to levy assessments and set a date for a Public Hearing. The Resolution of Intention declares to the affected property owners that the City intends to levy and collect assessments within the City for the next fiscal year. The Resolution also gives notice of the time and place for the Public Hearing of the proposed assessment.

The City will collect the sewer fee directly from JTNP Visitor Center due to the Center being a federal entity.

ENVIRONMENTAL:

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Not applicable.

ALTERNATIVES:

The City Council could choose to amend the Report.

FISCAL IMPACT:

There is no financial impact to the City.

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RESOLUTION NO. 23-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

TWENTYNINE PALMS DIRECTING THE FILING OF THE ANNUAL

REPORT FOR THE CITY OF TWENTYNINE PALMS SEWER
ASSESSMENT FEE.

SEWER ASSESSMENT FEE
(Pursuant to Section 5473 of the California Health and Safety Code) The City Council of the City of Twentynine Palms hereby resolves as follows:

Section 1: The City Manager, the person designated by this Council to prepare a written report of Assessed Fees by Land Use, is hereby directed to file an annual report in accordance with provisions of Section 5473 of the California Health and Safety Code.

Section 2: This resolution is adopted pursuant to Section 5473 of the California Health and Safety Code.

APPROVED and ADOPTED this 23rd day of May 2023.
____________________________
MAYOR
ATTEST:
____________________________

CITY CLERK
(SEAL)

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RESOLUTION NO. 23-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

TWENTYNINE PALMS DECLARING ITS INTENTION TO LEVY

AND COLLECT SEWER ASSESSMENT FEES FOR FISCAL
YEAR 2023-2024

SEWER ASSESSMENT FEES
(Pursuant to Section 5471 of the California Health and Safety Code) The City Council of the City of Twentynine Palms hereby resolves as follows:

Section 1: The City Council intends to levy and collect sewer assessment fees during fiscal 2023-2024. The area of land to be assessed is located in the City of Twentynine Palms, San Bernardino County.

Section 2: In accordance with Proposition 2018, the assessed fees must be based upon the proportionate cost of providing sewer services. The costs of providing these services include costs associated with the collection, transmission, and treatment of flows, as well as inspections, permits, and other operation and maintenance costs.

Section 3: In accordance with this Council’s resolution directing the filing of an annual report, the City Manager has filed with the City Clerk the report required pursuant to Section 5473 of the California Health and Safety Code. The City Council has received and reviewed the written report from the City Manager regarding the proposed levy and assessment for fiscal year 2023-2024. All interested persons are referred to that report for a full and detailed description of the charges, the boundaries of the assessed properties, and the proposed assessment upon assessable lots and parcels of land within the City limits.

Section 4: On Tuesday, the 13th day of June 2023, at the hour of 6:00 o’clock P.M., the City Council will conduct a public hearing on the question of the levy of the proposed annual assessment. The hearing will be held at the Council Chamber of the City Council located at 6136 Adobe Road, City of Twentynine Palms, California.

Section 5: Excluding the inflation escalation factor of 4.6% Consumer Price Index, the assessment for all customers is not proposed to increase from prior year.

APPROVED and ADOPTED this 23rd day of May, 2023.

_________________________________
MAYOR
ATTEST:
____________________________

CITY CLERK (SEAL)

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City of
Twentynine Palms
City Manager's
Written Report
Fiscal Year 2023-24

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CITY OF TWENTYNINE PALMS

ASSESED FEES BY LAND USE FOR
FISCAL YEAR 2023-24
The undersigned respectfully submits the enclosed report as directed by City Council.

Frank J. Luckino
City Manager
By____________________________
I HEREBY CERTIFY that the enclosed Written Report, together with the assessed fees and Assessment Diagram thereto attached, was filed with me on the _____ day of __________________, 2023

Cindy Villescas,
City Clerk, City of Twentynine Palms,
San Bernardino County,
State of California

By____________________________
I HEREBY CERTIFY that the enclosed Written Report, together with the assessed fees and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Twentynine Palms, California, on the _____ day of __________________, 2023.

Cindy Villescas,
City Clerk, City of Twentynine Palms,
San Bernardino County,
State of California

By____________________________

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CITY MANAGER’S WRITTEN REPORT

CITY OF TWENTYNINE PALMS

TABLE OF CONTENTS
PART A - Overview ………………………………………………………………….. 1
PART B - Estimated Costs ………………………………………………………….. 2
PART C - City Boundary Diagram ………………………………………………….. 4
PART D - Assessed Fees by Land Use ……………………………………………. 5

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PART A

OVERVIEW
The City of Twentynine Palms (City) began providing sewer service to customers in a new relatively small downtown project (Phoenix Project) in Fiscal Year (FY) 2020-21. This project is unique in that it has a limited number of customers and will have its own package treatment plant serving only those customers within the new development (see Diagram in page 3).

Willdan Financial Services (“Willdan”) was retained by the City of Twentynine Palms, California (“City”) to conduct a Sewer Rate Study (“Rate Study”) for the City’s new Phoenix Project. The report, dated December 22, 2022, details the results of the Rate Study analysis for the forecast period, fiscal year (FY) 2020-21 through FY 2024-25. The City’s Phoenix Project sewer rates identified in this report are intended to fund operations and maintenance (O&M) costs and capital maintenance costs for this specific system.

The City has been working together with the Project Phoenix development team and Willdan to ensure the system is sustainable with operation costs and infrastructure replacement. The system initially will be a sewer collection system with a septic tank disposal system, along with three monitoring wells to ensure water quality. Approximately every five years, government entities should go through a rate setting process to ensure operational sustainability and infrastructure replacement, however, the City will review this process again in approximately one year, or once the package treatment plant is funded and put into operation.

The sewer rates identified in this report are proportionate to water usage and are governed by Proposition 218 (Prop 218). In accordance with Prop 218, a Rate Study was conducted by Willdan to justify these rates. The Rate Study was presented to the City Council on January 5, 2021 for initial review and comment. On the same day, City Council authorized the mailings of the notices notifying the property and business owners about the proposed fees and the Public Hearing held on February 23, 2021 at 6:00 p.m. in the City Hall Council Chambers, 6136 Adobe Rd, Twentynine Palms, CA 92277. The Public Hearing was published, and a notice was mailed directly to all the City sewer customers and the owner of record of the properties that would receive City sewer service. Only one written protest to the proposed rate was received before the Public Hearing held on February 23, 2021, which accounted for only 3% of the total votes and did not meet the threshold for rejecting the proposed fee. As such, on February 23, 2021, the sewer rates were adopted by more than a two-third vote of the City Council.

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PART B

ESTIMATED COSTS
The principles by which rate practitioners are guided is that rates designed for any utility should strike a reasonable balance between several key factors. In general, rates designed should:
 Generate a stable rate revenue stream which, when combined with other sources of funds, is sufficient to meet the financial requirements and goals of the utility;  Be based upon the proportionate cost of providing the service and not exceed the cost of providing the service, as required by Proposition 218;
 Be fair and equitable – that is, they should generate revenue from customer classes which is reasonably in proportion to the cost to provide service to that customer class;  Be easy to understand by customers; and
 Be easy to administer by the utility.

The City’s customer base has been converted to an equivalent dwelling unit (EDU) basis, based on the assumed flows of single-family residential customer. A single-family customer is assumed to contribute 175 gallons of discharge per day. The projected discharge in gallons per day (GPD) for all other customers are divided by 175 to determine their equivalent EDUs.

The rate design analysis used the identified revenue requirements by year and associated EDUs to identify the monthly rate per EDU. As the Phoenix Project sewer utility is a new startup, the City will be using funds from outside the Phoenix Project revenue stream to subsidize the monthly rates until the system becomes more mature. Table 1-1 summarizes the rates prior to the subsidy as well as the revised (proposed) rates as a result of the subsidy. (Note: The City is currently working on a new Rate Study at the time this report was prepared, as such the proposed rate shown on the table below for FY 2023-24 will not be implemented until the new Rate Study is adopted by City Council. Through resolution No. 22-14, City Council approved for fees to be adjusted by the Consumer Price Index (CPI) annually. The average Consumer Price Index for the past 12 months for the region was 4.6%; however, sewer fees will only be increased by 2.6% following Council guidance. The proposed rate for FY 2023-24 is $36.00.

Table 1‐1 ‐ Five‐Year Financial Plan
Project Phoenix Sewer Rates ‐ Fiscal Years 2020‐21 through FY 2024‐25 Billing Category 20‐21 21‐22 (1) 22‐23 (1)(2) 23‐24 (1) 24‐25 (1) Annual Revenue Requirement $30,000 $80,000 $127,000 $165,000 $180,000 Number of EDUs 29 29 55 95 95
Months Effective 4 12 12 12 12
Rate per EDU per Month $256.76 $228.23 $191.69 $142.92 $155.91 Annual Rate Subsidy $25,900 $67,000 $86,202 $93,905 $108,905 Revised (Proposed) Rate per EDU $35.09 $35.09 $61.58 $61.58 $51.65 (1) Effective each July 1 (2) The rate that will be applied for FY 2022‐23 is $35.09 until the City Council adopts a new Rate Study.

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The proposed financial plan, including identified revenue needs is presented in Table 1-2 which provides for funding of projected revenue requirements during the forecast period.

Revenues from sewer charges are projected at $12,636 for FY 23/24, and expenditures are projected at $83,328. The expenditures include $56,528 for maintenance, inspections, pumping and emergency calls, $24,100 for water quality monitoring; and $2,700 for permitting. The operating loss of the sewer fund is projected at $70,692, which the General Fund will subsidize.

Table 1‐2 ‐ Projected Net Operating Fund Results
Fiscal Years 2020‐21 through FY 2024‐25
Description 20‐21 21‐22 22‐23 23‐24 24‐25
a Beginning Cash Balance $0 $2,658 $3,815 $5,202 $1,551 b Total Revenue $30,000 $80,000 $127,000 $165,000 $180,000 c Operating & Maint. Expenses $27,342 $78,843 $111,168 $153,918 $158,536 d Capital Outlay $0 $0 $14,444 $14,733 $15,028
e Net Cash Flow (b‐c‐d) $2,658 $1,157 $1,388 ($3,651) $6,436 Ending Cash Balance (a+e) $2,658 $3,815 $5,203 $1,551 $7,987 Target Cash Reserve $6,742 $19,441 $30,973 $41,858 $42,796

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PART C

CITY BOUNDARY DIAGRAM

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PART D
City of Twentynine Palms
Assessed Fees by Land Use
Project Phoenix Sewer System Customer Charges – FY 2023-24 Land Use: Commercial
Account
#
Assessor’s
Parcel Numbers
EDU’s Rate per
EDU
Assessment
per Month
Assessment
per Year
1 0617-114-12 3.79 $36.00 $136.44 $1,637.28
2 0617-112-11 0.89 $36.00 $32.04 $384.48
3 0617-112-15 0.15 $36.00 $5.40 $64.80
4 0617-113-12 0.25 $36.00 $9.00 $108.00
5 0617-113-11 2.17 $36.00 $78.12 $937.44
6 0617-113-13 3.79 $36.00 $136.44 $1,637.28
7 0617-112-11 0.25 $36.00 $9.00 $108.00
8 0617-114-10 0.90 $36.00 $32.40 $388.80
9 0617-112-10 0.25 $36.00 $9.00 $108.00
10 0617-113-11 2.17 $36.00 $78.12 $937.44
11 0617-112-27 1.82 $36.00 $65.52 $786.24
12 0617-114-13 0.25 $36.00 $9.00 $108.00
13 0617-114-14 5.05 $36.00 $181.80 $2,181.60
14 0617-112-10 0.25 $36.00 $9.00 $108.00
15 0617-113-12 0.15 $36.00 $5.40 $64.80
16 0617-112-12 1.00 $36.00 $36.00 $432.00
17 0617-112-13 0.07 $36.00 $2.52 $30.24
19 0617-112-10 1.00 $36.00 $36.00 $432.00
GRAND TOTAL 22.20 $871.20 $10,454.40

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CITY OF TWENTYNINE PALMS
Sewer Rate Study
December 2020

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i Rate Study ‐ Final Report
December 22, 2020

TABLE OF CONTENTS
TABLE OF CONTENTS ...................................................................................................................................... i Section 1 – Executive Summary ..................................................................................................................... 1

1.1 Study Overview ....................................................................................................................................... 1

1.2 Financial Plans ........................................................................................................................................ 1

1.3 Cash Reserve Targets .............................................................................................................................. 1

1.4 Findings and Recommendations ............................................................................................................ 2 Section 2 ‐ Introduction ................................................................................................................................. 3

2.1 Introduction ............................................................................................................................................ 3

2.2 Goals and Objectives .............................................................................................................................. 3

2.3 Overview of the Rate Study Process ....................................................................................................... 3

2.4 Organization of this Report .................................................................................................................... 4

2.5. Reliance on Data .......................................................................................................................................... 4 Section 3 – Overview of Financial Planning Principles, Processes and Issues .................................................. 5

3.1 Introduction ............................................................................................................................................ 5

3.2 Discussion of General Financial Planning Principles ............................................................................... 5

3.3 The Revenue Sufficiency Process ............................................................................................................ 6

3.3.1 Determination of the Revenue Requirements ............................................................................... 6

3.4 Financial Management Goals of the City ................................................................................................ 7

3.4.1 Cash Reserve Targets ...................................................................................................................... 7 Section 4 – Financial Plan Development and Results ..................................................................................... 8

4.1 Revenue Sufficiency Analysis .................................................................................................................. 8

4.1.1 General Methodology .................................................................................................................... 8

4.1.2 Data Items ...................................................................................................................................... 8

4.1.3 FY 2020‐21 Beginning of Year Cash Balance ................................................................................... 8

4.1.4 FY 2020‐21 Estimated Costs ........................................................................................................... 8

4.1.7 General Assumptions ..................................................................................................................... 9

4.2 Rate Design Analysis ................................................................................................................................... 11

4.2.1 General Methodology .................................................................................................................. 11

4.2.3 Cost of Service Principles and Analysis ................................................................................................ 11

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ii Rate Study ‐ Final Report
December 22, 2020

4.2.4 Proposed Rates .................................................................................................................................... 12 Section 5 – Conclusions and Recommendations .......................................................................................... 14

5.1 Conclusions ................................................................................................................................... 14

5.2 Recommendations ........................................................................................................................ 14

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1 | Page
Section 1 – Executive Summary
The City of Twentynine Palms (City) is anticipated to begin providing sewer service to customers in a new relatively small downtown project (Phoenix Project) in Fiscal Year (FY) 2020‐21. This project is unique in that it has a limited number of customers and will have its own package treatment plant serving only those customers within the new development. The City’s proposed Phoenix Project sewer rates identified in this report are intended to fund operations and maintenance (O&M) costs and capital maintenance costs for this specific system. The main objective of this study was to a develop five‐year financial plan that identifies the costs associated with operating the Phoenix Project and provide recommended rates for the initial five years of the sewer treatment services. These are discussed in further detail in the body of this report.

1.1 Study Overview
The City contracted with Willdan Financial Services (“Willdan”), to complete a sewer rate study comprised of the following objectives:
 Five‐Year Financial Plan: Identify the revenues required by the utility to meet the respective annual costs of operation and maintenance.
 Rate Development: Develop initial rates reflecting the City’s cost of providing Phoenix Project sewer treatment services.

1.2 Financial Plans
The five‐year Phoenix Project sewer financial plan was developed based on projected revenues, expenditures and system growth. The projections reflect the best available information and assessments developed and refined through numerous teleconferences between Willdan and City staff. It should be noted that while a five‐year plan was developed the focus was on the initial year of the treatment service, and the financial plan will be refined in the future as additional data is acquired.

1.3 Cash Reserve Targets
Through the study process Willdan worked with City staff to identify and recommended financially prudent cash reserve targets for the utility to help ensure the financial viability of the Phoenix Project. The cash reserve target included:

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 Operating Reserve: Cash reserve equivalent to 90 days of annual operations and maintenance expenses. It is anticipated that this reserve will be achieved over time with an incremental build up of reserves over time rather than immediately upon initial operation of the plant.

1.4 Findings and Recommendations
It is recommended that the City update the cashflow portion of this study each year to ensure projected revenue is sufficient to fund projected expenses going forward as assumptions made during this analysis may change and have a material impact on the analysis. The proposed revenue targets and rates are illustrated in Tables 1‐1 and 1‐2.

Table 1‐1
Projected Revenue Target
Fiscal Years Ending June 30
Description
Phoenix Project
Sewer Revenue
Target
2020‐21 $30,000
2021‐22 80,000
2022‐23 127,000
2023‐24 165,000
2024‐25 180,000
Table 1‐2
Proposed Phoenix Project Sewer Rates
Fiscal Years 2020‐21 through FY 2024‐25
Billing Category Existing 20‐21 21‐22 (2) 22‐23 (2) 23‐24 (2) 24‐25 (2) All Customer (per Equivalent Dwelling Unit1) $0.00 $35.09 $35.09 $61.58 $61.58 $61.58 (1) An equivalent dwelling unit represents 175 gallons per day, the assumed flow of a single family residential development (2) Effective July 1

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Section 2 - Introduction

2.1 Introduction
Willdan Financial Services (“Willdan”) was retained by the City of Twentynine Palms, California (“City”) to conduct a Sewer Rate Study (“Rate Study”) for the City’s new Phoenix Project. This report details the results of the Rate Study analysis for the forecast period, fiscal year (FY) 2020‐21 through FY 2024‐25, the results of which are presented in this Rate Study Report.

The results of the Rate Study presented herein are a financial plan and suggested rate adjustments designed to provide revenues sufficient to fund the ongoing operating, maintenance and capital costs necessary to operate the City’s sewer treatment facility serving the new Phoenix Project, while striving to meet the financial requirements and goals set forth by the City’s for the Phoenix Project.

Based on discussion with City staff, this report presents the recommended financial plan and adjustments to meet the City’s objectives.

2.2 Goals and Objectives
The primary goal of the Rate Study was to develop a financial plan that identified the necessary revenue streams to meet ongoing costs (operations & maintenance and capital maintenance), and to maintain industry standard financially prudent cash reserves. More specifically the Rate Study was undertaken to:
 Conduct the analysis in accordance with industry standards consistent Water Environment Federation (“WEF”) guidelines;
 Develop a financial plan consistent with industry standards and best practices while recognizing the needs specific to the City; and
 Recommend rates that adhere to and meet Proposition 218 requirements which requires a matching between the fees being assessed to customers and the cost they place on the system.

2.3 Overview of the Rate Study Process
The rate study process consists of two primary study components. First, the identification of revenues required to meet system expenses during the study forecast period must be made. The result of this analysis, known as the Revenue Sufficiency Analysis, is an assessment of the ability of the revenue stream to meet the projected financial requirements of the system during the forecast period and, to the extent required, the identification of the magnitude and timing of any required revenue adjustments.

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Next, a determination of the user rates and charges that will meet the City’s goals and objective.

2.4 Organization of this Report
This Rate Study presents an overview of the financial planning concepts employed in the development of the analysis contained here. The analysis is followed by a discussion of the data, assumptions and results associated with each component of the analysis. Finally, appendices with detailed schedules are presented for further investigation and insight into the data, assumptions and calculations which drive the results presented in this Rate Study. The report is organized as follows:
• Section 1 – Executive Summary
• Section 2 – Introduction
• Section 3 – Overview of Financial Planning Principles, Processes and Issues • Section 4 – Financial Plan Development and Results
• Section 5 – Conclusions and Recommendations
• Appendix A – Phoenix Project Sewer System Financial Plan and Rate Design

2.5. Reliance on Data
During this project the City (and/or its representatives) provided Willdan with a variety of technical information, including operational cost and customer data. This data was used by Willdan in the process of developing the financial plans and recommended rates adjustments. Willdan did not independently assess or test for the accuracy of such data, historic or projected, but worked with City staff to better understand the data and its sources and believe it to be the best available information at the time of the study.

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Section 3 – Overview of Financial Planning
Principles, Processes and Issues

3.1 Introduction
The scope of this study included the development of a Phoenix Project sewer financial plan for the planning period FY 2020‐21 through FY 2024‐25, for the package treatment plant serving the new development in the downtown area.

The scope of this study also included the development of sewer user rates for treatment services the City will begin providing to this project in FY 2020‐21. Utility rates must be set at a level where operating, maintenance and capital maintenance expenses are met with the revenues received from customers; that revenues generated from utility rates are used only for this purpose; and that revenues generated do not exceed the cost of providing the service. This is a significant point, as failure to achieve this level could lead to insufficient funds being available to adequately maintain the system.

This Rate Study utilized generally accepted rate‐making principles and standards established by the industry’s governing body the Water Environment Federation (WEF) in its “Financing and Charges for Sewer Systems, Manual of Practice No. 27 (2004)”. The principles used resulted in the update of rates and charges which are projected to: 1) generate sufficient revenue to meet the financial requirements of the sewer utility, and 2) address the need to recover costs from users in a manner which is proportionate to the cost of providing service on a fair and equitable basis relative to the service provided, and which does not exceed the cost of providing the service.

3.2 Discussion of General Financial Planning Principles While the individual rates vary based on a variety of factors, rates should be consistent with general rate‐ making principles set forth in utility rate‐making practice and literature. The principles by which rate practitioners are guided is that rates designed for any utility should strike a reasonable balance between several key factors. In general, rates designed should:
 Generate a stable rate revenue stream which, when combined with other sources of funds, is sufficient to meet the financial requirements and goals of the utility;  Be based upon the proportionate cost of providing the service and not exceed the cost of providing the service, as required by Proposition 218;

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 Be fair and equitable – that is, they should generate revenue from customer classes which is reasonably in proportion to the cost to provide service to that customer class;  Be easy to understand by customers; and
 Be easy to administer by the utility.

Striking the appropriate balance between the principles of rate‐making is the result of a detailed process of evaluation of revenue requirements and how those translate into the rate design alternatives which meet legal requirements and the specific objectives of the utility under the circumstances in which it operates.

3.3 The Revenue Sufficiency Process
In order to evaluate whether rates and charges which will generate sufficient revenue to meet the fiscal requirements of the Phoenix Project sewer utility, a determination of the annual rate revenue required must be completed. The first step in the process is the Revenue Sufficiency Analysis. The Revenue Sufficiency Analysis compares the forecasted revenues of the utility under proposed rate alternatives to its forecasted operations and maintenance, capital, and reserve costs to determine the adequacy of the rates to recover the utility’s costs.

The process employed in the Revenue Sufficiency Analysis involves a rigorous review of operating, maintenance and capital budgets for the utility, and results in the identification of revenue requirements of the system, such as operating expenses, capital expenses (minor and major), transfers in and out, and the maintenance of both restricted and unrestricted reserves at appropriate levels. These revenue requirements are then compared to the total sources of funds available during each year of the forecast period to determine the adequacy of projected revenues to meet projected revenue requirements. Rates are calculated which if enacted, would provide revenue sufficient to meet those needs.

3.3.1 Determination of the Revenue Requirements
Considerations in Setting Revenue Requirements
There are a multitude of considerations, ranging from financial to political to legal that must be analyzed or discussed during the revenue requirements process of a rate analysis. This section provides an overview of the considerations that are reviewed during this process.

Realities
Principles
Policies
Bond (Legal) Covenants
Laws/Regulations

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Financial Planning
In the development of the revenue requirements, certain parameters are utilized to project future expenditures, growth in customers and necessary revenue needs. The City’s cost estimates were used as the baseline, which were then projected over the planning horizon to account for fluctuations in costs from year to year. Growth assumptions and prudent financial planning were fundamental in ensuring adequate rate revenue to promote financial stability.

3.4 Financial Management Goals of the City
The establishment of specific financial management goals of a utility is a key step in developing financial plans which will ensure the financial health of the utility remains strong. The financial management goals of the City are described below.

3.4.1 Cash Reserve Targets
In order to maintain financially stable and sustainable utilities, the City has identified a reserve target that it will strive to achieve and maintain over time. The reserve target is identified in Table 3‐1.

Table 3‐1
Reserve Target
Reserve Purpose
Minimum
Balance
Phoenix Project Sewer
Operating Reserves
Manage timing differences
between revenue receipt and
expense payments
90 days of
O&M
While it is not essential that the City meet the operating reserve on annual basis (it is not a legal requirement), prudent financial planning suggests that the City should strive to achieve and maintain the reserve target and should not dip below the minimum balance on a continuous basis once the target reserve has been achieved.

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Section 4 – Financial Plan Development and Results

4.1 Revenue Sufficiency Analysis

4.1.1 General Methodology
In order to develop rates and charges which generate sufficient revenue to meet the fiscal requirements of the City, a determination of the annual required revenue from rates which, when combined with other sources of funds, will provide sufficient funds to meet those fiscal requirements must first be completed. This process is typically referred to as a Revenue Sufficiency Analysis.

The process employed in the Revenue Sufficiency Analysis resulted in the identification of revenue requirements of the system, such as operating expenses, capital maintenance expenses and the maintenance of both restricted and unrestricted reserves at appropriate levels. These revenue requirements were then compared to the total sources of funds during each year of the forecast period to determine the adequacy of projected revenues to meet requirements.

4.1.2 Data Items
Key data items reviewed, discussed and incorporated into the Revenue Sufficiency Analysis were:
 Financial management goals of the City
 FY 2020‐21 Beginning of Year Fund Balances;
 FY 2020‐21 Estimated Costs;
 General assumptions related to:
 Customer growth;
 Cost escalation factors;
A discussion of the use of each of the above data items is presented below.

4.1.3 FY 2020-21 Beginning of Year Cash Balance
The City’s Phoenix Project sewer utility does not have any cash on hand since as of the timing of this report the City has not yet begun providing sewer treatment service utilizing this new Phoenix Project.

4.1.4 FY 2020-21 Estimated Costs
Staff provided Willdan with the FY 2020‐21 estimated costs to provide Phoenix Project sewer treatment, including associated line‐item detail, as the basis for the financial projections for the forecast period. The line‐

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item projected expenses for FY 2020‐21 were used as the basis for the projection of future budgetary line‐ items for the remainder of the forecast period.

Cost escalation factors were reviewed by staff and were used to project increases in line‐item costs beyond the FY 2020‐21 estimates. Those factors were applied based on line‐item cost classifications.

A summary of the FY 2020‐21 estimated costs, and subsequent projected expenses are presented below in Table 4‐1. A more detailed presentation of the line‐item projected revenues and expenses is presented in Schedules A‐2 through A‐3, in the Appendix.

4.1.7 General Assumptions
In order to develop the financial and rate projections, certain assumptions were made with regard to elements of the revenue sufficiency analysis. A summary of those assumptions is presented below.

4.1.7.1. System Growth
The City’s anticipated customer base has been converted to an equivalent dwelling unit basis, based on the assumed flows of single family residential customer. A single family customer is assumed to contribute 175 gallons of discharge per day. The projected discharge in gallons per day (GPD) for all other customers are divided by 175 to determine their equivalent EDUs. The City anticipates that 29 EDUs will be served annually through FY 2021‐22. In FY 2022‐23 an additional 26 EDUs are anticipated to come online, followed by an additional 41 EDUs in FY 2023‐24 bringing the total EDUs to 96.

4.1.7.2. O&M Escalation Factors
Willdan worked with City staff to identify reasonable cost escalation factors to be applied to operations and maintenance expenses in recognition of increasing costs over time. It was determined that a 3.0% inflationary factor represented a reasonable estimate of annual cost increases for O&M costs during the study period.

There are some line items, however, that are projected to increase at the rate of growth plus inflation. Those line items include:
 Plant washdown and field work
Table 4‐1
Operating Budget
Fiscal Years Ending June 30
Description 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 O&M $27,342 $78,843 $111,168 $153,918 $158,536
Capital Outlay 0 0 14,444 14,733 15,028
Total Expenses $27,342 $78,843 $125,612 $168,651 $173,564

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 Sludge disposal
 Annual maintenance and inspection

4.1.7.2. Revenue Requirements
Based on the anticipated costs of providing Phoenix Project sewer treatment service, our analysis has identified the annual revenue requirements to operate the system. Table 4‐2 summarizes the annual revenue targets for the study period.

Table 4‐2
Projected Revenue Target
Fiscal Years Ending June 30
Description
Phoenix Project
Sewer Revenue
Target
2020‐21 $30,000
2021‐22 80,000
2022‐23 127,000
2023‐24 165,000
2024‐25 180,000
A more detailed presentation of the pro forma is presented in Schedule A‐1 of the appendix.

4.1.7.3. Summary of Revenue Sufficiency Analysis
The proposed financial plan, including identified revenue needs is presented in Table 4‐3 which provides for funding of projected revenue requirements during the forecast period.

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Table 4‐3
Projected Net Operating Fund Results
Fiscal Years 2019‐20 to 2024‐25
Description 20‐21 21‐22 22‐23 23‐24 24‐25
Beginning Cash Balance $0 $2,658 $3,815 $5,202 $1,551 Total Revenue    30,000 80,000 127,000 165,000 180,000 Operating & Maintenance Expenses    27,342 78,843 111,168 153,918 158.536 Capital Outlay 0 0 14,444 14,733 15,028
Net Cash Flow    2,658 1,157 1,388 (3,651) 6,436
Ending Cash Balance    $2,658 $3,815 $5,202 $1,551 $7,988 Target Cash Reserve $6,742 $19,441 $30,973 $41,585 $42,796

4.2 Rate Design Analysis

4.2.1 General Methodology
With the rate revenue requirement determined in the Revenue Sufficiency Analysis, the development of specific rates and charges was completed as described below.

First, the rate design goals of the City were reviewed to identify areas the City wanted to address over the forecast period included in this Rate Study. In addition to the City’s goals, rate design should seek to achieve the following industry standard objectives:
 Generate a stable rate revenue stream which, when combined with other sources of funds, is sufficient to meet the financial requirements and goals of the utility;  Be fair and equitable – that is, they should generate revenue from customer classes which is reasonably in proportion to the cost to provide service to that customer class;  Be easy to understand by customers;
 Be easy to administer by the utility; and
 Be compliant with California State law, specifically Proposition 218, whereby the rates must be based upon the proportionate cost of providing sewer service.

4.2.3 Cost of Service Principles and Analysis
In conducting a cost of service analysis, sewer costs are allocated based on their need to meet general capacity requirements associated with the collection, transmission and treatment of flows, as well as customer related costs such as billing and customer service. As mentioned in Section 4.1.7.1, through an analysis of assumed

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flows, it was determined that the average daily discharge for a single family residential home will be 175 gallons per day (GPD). This value represents the flows of an equivalent dwelling unit or EDU. Initially the City is only proposing to provide service to non‐residential customers and does not have discharge strength sampling data to justify assessing fees based on the type of non‐residential development. In anticipation of serving residential customers in the future, a rate is proposed to be charged to all customers based on the amount discharged on an EDU basis. Table 4‐4 illustrates the non‐residential customer categories flows and associated EDUs.

Table 4‐4
Phoenix Project Sewer System Customer Classifications
Customer Flows (GPD) EDUs (1)
Residential 7,100 40.57
Public Building 4,500 25.71
Restaurant/Store 832 4.75
Hair/Nail Salon 156 0.89
Restaurant 664 3.79
Papa Johns Pizza 318 1.82
Real Estate Office 27 0.15
Nail Salon/Tattoo 379 2.17
Stores 43 0.25
Restaurant 705 4.03
Furniture Store 157 0.90
Restaurant 937 5.35
Store 12 0.07
Bar 883 5.05
Total 16,712 95.50
(1) An EDU represents the average daily discharge for a single family residential home estimated at 175 gallons per day

4.2.4 Proposed Rates
The rate design analysis used the identified revenue requirements by year and associated EDUs to identify the monthly rate per EDU. As the Phoenix Project sewer utility is a new startup the City has indicated that it will be using funds from outside the Phoenix Project revenue stream to subsidize the monthly rates until the system becomes more mature. Table 4‐5 summarizes the rates prior to the subsidy as well as the revised (proposed) rates as a result of the subsidy. The anticipated charges by customer for the initial year of service are summarized in Table 4‐6.

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Table 4‐5
Proposed Phoenix Project Sewer Rates
Fiscal Years 2020‐21 through FY 2024‐25
Billing Category 20‐21 21‐22 (1) 22‐23 (1) 23‐24 (1) 24‐25 (1) Annual Revenue Requirement $30,000 $80,000 $127,000 $165,000 $180,000 Number of EDUs 29 29 55 95 95
Months Effective 4 12 12 12 12
Rate per EDU per Month $256.76 $228.23 $191.69 $142.92 $155.91 Annual Rate Subsidy 25,900 67,700 86,202 93,905 108,905 Revised (Proposed) Rate per EDU $35.09 $35.09 $61.58 $61.58 $61.58 (1) Effective each July 1

Table 4‐6
Phoenix Project Sewer System Customer Charges – FY 2020 Customer Flows (GPD) EDUs (1) Rate per EDU (2) Charge (2) Restaurant/Store 832 4.75 $35.09 $166.84
Hair/Nail Salon 156 0.89 35.09 31.23
Restaurant 664 3.79 35.09 133.14
Papa Johns Pizza 318 1.82 35.09 63.69
Real Estate Office 27 0.15 35.09 5.34
Nail Salon/Tattoo 379 2.17 35.09 76.02
Stores 43 0.25 35.09 8.63
Restaurant 705 4.03 35.09 141.36
Furniture Store 157 0.90 35.09 31.44
Restaurant 937 5.35 35.09 187.79
Store 12 0.07 35.09 2.47
Bar 883 5.05 35.09 177.06
(1) An EDU represents the average daily discharge for a single family residential home estimated at 175 gallons per day
(2) Per Month

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Section 5 – Conclusions and Recommendations

5.1 Conclusions
 Projected operating revenues and operating expenses for the forecast period were developed by, and/or in consultation with, City staff and are based upon reasonable projections;  The projected capital maintenance expenses have been developed by City staff, to address anticipated Phoenix Project sewer system needs;
 Based on Conclusions 1 and 2 above, we are of the opinion that the financial projections presented herein address the Phoenix Project’s ability to meet its ongoing obligations with regard to:
 Operating and maintenance expenses, including maintenance of system components; and  Provision for key financial policies, including:
o Over time achieving and maintenance of at least 90 days of operating reserve balances.  The proposed rates presented herein are in conformance with industry standard rate‐making practices, Proposition 218 and/or the City’s rate policies with respect to:
 The fair and equitable recovery of costs through Phoenix Project sewer rates; and  Generation of sufficient revenue to recover system revenue requirements and reserve requirements.

5.2 Recommendations
 It is recommended that the City implement the proposed rates and charges presented in this Report for FY 2020‐21.
 It is recommended that the City update the revenue sufficiency analysis portion of this study each year to ensure projected revenue continues to be sufficient to fund projected expenses going forward as assumptions made during this analysis may change and have a material impact upon the analysis.

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APPENDIX A

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City of Twentynine Palms
Projected Operating Results - Sewer SystemFiscal Years 2021 - 2025 Line
No. Description 2021 2022 2023 2024 2025
Sources of Funds
1 Beginning-of-Year Cash $0 $2,658 $3,815 $5,202 $1,551 Operating Revenues
2 Operating Revenue $ 30,000 $ 127,000 80,000 $ $ 165,000 $ 180,0003 Other Revenues - - - - -4 Total Operating Revenues $ 30,000 $ 127,000 80,000 $ $ 165,000 $ 180,000 Non-Operating Revenue
5 Interest Income - - - - -6 Total Non-Operating Revenue $ - $ - $ - $ - $ -7 Total Operating Revenues $ 30,000 $ 127,000 80,000 $ $ 165,000 $ 180,000 Operating Expenses
8 Services and Supplies $ 27,342 $ 78,843 $ 111,168 $ 153,918 $ 158,5369 Capital Outlay - - 14,444 14,733 15,028 10 Total Operating Expenses $ 27,342 $ 125,612 78,843 $ $ 168,651 $ 173,56411 Net Result of Operations $ 2,658 $ 1,157 $ 1,388 $ (3,651) $ 6,436 Non-Operating Expenses
12 Capital Improvements $ - $ - $ - $ - $ -13 Existing Debt Service - - - - -14 Other Miscellaneous - - - - -15 Total Non-Operating Expenses $ - $ - $ - $ - $ -16 Net Available After Operations $ 2,658 $ 1,157 $ 1,388 $ (3,651) $ 6,436 Other Uses
New Debt Service $ - $ - $ - $ - $ -Additional Capital Improvements - - - - - 17 Total Other Uses $ - $ - $ - $ - $ -18 Net Available After Other Uses $ 2,658 $ 1,157 $ 1,388 $ (3,651) $ 6,43619 End-of-Year Cash $2,658 $3,815 $5,202 $1,551 $7,988 20 Target Cash $6,742 $19,441 $30,973 $41,585 $42,796
City of Twentynine Palms, CA Phoenix Project Financial Plan and rate Design A-1

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City of Twentynine Palms
Revenues - Sewer System Sewer Financial Model
Line
No. Description 2021 2022 2023 2024 2025
Operating Revenues
Sewer
1 Operating Revenue $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,0002 Other Revenues - - - - - 3 Total Operating Revenues $ 30,000 $ 127,000 80,000 $ $ 165,000 $ 180,000 Non-Operating Revenue
4 Non-Utility Income $ - $ - $ - $ - $ -5 Interest Income - - - - - 6 Total Non-Operating Revenue $ - $ - $ - $ - $ -7 Total Revenues $ 30,000 $ 127,000 80,000 $ $ 165,000 $ 180,000

OPERATING REVENUES
8 Rate Revenue $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,0009 Growth 0.00% 0.00% 0.00% 0.00% 0.00% Revenues Adjusted for Growth $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 10 Revenue Increase 0.0% 0.0% 0.0% 0.0% 0.0%11 Percent of Year w/Rate Increase 100.0% 100.0% 100.0% 100.0% 100.0%12 Revenues under old rates - $ $ - $ - $ - $ -13 Revenues under new rates 30,000 80,000 127,000 165,000 180,00014 Total Charges for Services - After Revenue Increase $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 Other Sewer Revenue
15 Sewer Connection - - - - -16 Miscellaneous Revenue - - - - - Interest Income
17 Interest Income - - - - -
18 Total Operating Revenues $ 30,000 $ 127,000 80,000 $ $ 165,000 $ 180,000 City of Twentynine Palms, CA Phoenix Project Financial Plan and rate Design A-2

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Twentynine Palms City CouncilJune 13, 2023

Twentynine Palms City Council
June 13, 2023