Twentynine Palms City Council
May 13, 2025

TWENTYNINE PALMS CITY COUNCIL

REGULAR MEETING AGENDA
6136 Adobe Road
Twentynine Palms, CA 92277
www.29palms.org
Tuesday, May 13, 2025
NOTICE IS HEREBY GIVEN, that the City Council will hold a Regular Meeting on Tuesday, May 13, 2025, at City Hall, 6136 Adobe Road, Twentynine Palms, CA 92277, to consider the following:

REGULAR SESSION AGENDA
6:00 P.M.

CLOSED SESSION AGENDA
5:30 P.M.

CALL TO ORDER
Roll Call.

Adjourn to Closed Session.

CLOSED SESSION
A “Closed” Session of the City Council may be held in accordance with state law which may include, but is not limited to, the following types of items: personnel matters, labor negotiations, security matters, providing instructions to real property negotiators and conference with legal counsel regarding pending litigation. The Closed Session will be held in the City Hall Conference Room located at 6136 Adobe Road, Twentynine Palms, California. Any public comment on Closed Session items will be taken before the Closed Session. Any required announcements or discussion of Closed Session items or actions following the Closed Session will be made in the City Council Chambers, 6136 Adobe Road, Twentynine Palms, California.

1. CLOSED SESSION PURSUANT TO GOVERNMENT CODE §54957 - PUBLIC

EMPLOYEES PERFORMANCE EVALUATION, CITY MANAGER

REGULAR SESSION AGENDA
6:00 p.m.

CALL TO ORDER
Pledge of Allegiance.

Invocation - Fr. Eliseus Uju – Blessed Sacrament Catholic 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 the City website and clicking on the "Meeting Agendas" link.

AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

2.. Presentation to the Youth Council by Senator Rosalice Ochoa Bogh.

COUNCIL COMMENTS AND REPORTS OF MEETINGS ATTENDED

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.

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

4. Approval of Minutes of the City Council Meeting Held on April 22, 2025.

City Council - Regular Meeting with Closed Session - 22 Apr 2025 - Minutes - Pdf 5 - 12

5. 2nd Reading DCA - Chapter 19.02 Authority and Chapter 19.04 The General Plan.

The City Council find the project exempt from CEQA and adopt the Ordinance approving the Development Code Amendment.
2nd Reading DCA - Chapter 19.02 Authority and Chapter 19.04 The General Plan. - Pdf 13 - 29

6. Annual Contract with San Bernardino County Sheriff's Department for FY 2025 - 26.

RECOMMENDATION: The City Council approve the annual contract with the San Bernardino County Sheriff's Department for Law Enforcement Services in the amount of $5,428,099, plus incidental costs.

Annual Contract with San Bernardino County Sheriff's Department for FY 2025 - 26. - Pdf 31 - 36

7. Approval of Warrant Register Totaling $1,055,432.70.

Approval of Warrant Register Totaling $1,055,432.70. - Pdf 37 - 40

8. Retirement Plan Investment Advisory Services Agreement.

RECOMMENDATION: The City Council approve the service agreement with Sage View to provide retirement plan investment advisory services for the City's Deferred Compensation Program.

Retirement Plan Investment Advisory Services Agreement. - Pdf 41 - 114

ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION

PUBLIC HEARING- NONE

DISCUSSION AND POTENTIAL ACTION ITEMS

9. Presentation of the Preliminary Two-Year General Fund Budget for Fiscal Year 2025-26 & 2026-27.

RECOMMENDATION: Staff is presenting the preliminary two-year General Fund Budget for Fiscal Year 2025-26 & 2026-27 for initial City Council review and direction.

Presentation of the Preliminary Two-Year General Fund Budget for Fiscal Year 2025-26 & 2026-27. - Pdf
115 - 165

10. Reallocation of Funds to Clean Up Blight.

RECOMMENDATION: The City Council approve reallocating the remaining $30,510 of the Navigation and Resource Center and shower funds to residential, commercial, vacant land, and homeless camp cleanup.

Reallocation of Funds to Clean Up Blight. - Pdf
167 - 168

11. City Manager Contract Amendment.

Link to this Staff Report to be provided prior to consideration of item.

FUTURE COUNCIL INITIATED ITEMS

1. Discussion on the General Plan Update.

2. Discussion surrounding (i) costs to maintain dirt roads verses paved roads; (ii) what is a City maintained dirt road, a non-maintained dirt road, a road that has been accepted by the City, a road that is private and not accepted by the City; (iii) the City's ability and liability associated with the City periodically maintaining non-maintained roads, and (iv) ways residents can bring non-maintained and non-accepted dirt roads to paved-rural-road standards ready for acceptance into the City's accepted-and-maintained road list.

3. Shade structures around Freedom Plaza and a possible art fixture with "Freedom Plaza" announcing the location.

4. A review and discussion of fees as it relates to Site Plan Reviews for ancillary uses.

5. Discussion on abandoned homes in the community.

6. Discussion on reorganizing the Homeless and Housing Committee.

7. Discussion on partnering with the Boys and Girls Club.

8. Discussion on reviewing policies for non-profits who receive funding from the City.

9. Discussion of a policy regulating the use of City Attorney resources.

10. Revisit allocated funds for the portable showers and Navigation Center.

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 5:00 p.m., May 8, 2025.

Cindy Villescas CMC, City Clerk Time/Date

TWENTYNINE PALMS CITY COUNCIL
City Council - Regular Meeting with Closed Session MINUTES City Hall, 6136 Adobe Road, Twentynine Palms, CA 92277
www.29palms.org
April 22, 2025

CLOSED SESSION AGENDA
5:00 P.M.

CALL TO ORDER - Mayor Bilderain called the Closed Session to order at 5:02 p.m.

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

Adjourn to Closed Session - Mayor Bilderain adjourned to Closed Session at 5:05 p.m.

CLOSED SESSION

1. CLOSED SESSION PURSUANT TO GOVERNMENT CODE §54957 - PUBLIC EMPLOYEES PERFORMANCE EVALUATION, CITY MANAGER.

2. CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION, SIGNIFICANT EXPOSURE TO LITIGATION.

GOVERNMENT CODE §54956.9 (D) (2) (4 CASES).

3. CLOSED SESSION, CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION, GOVERNMENT CODE §54956.9 (c), (1 CASE).

REGULAR SESSION AGENDA
6:00 p.m.

CALL TO ORDER - Mayor Bilderain called the meeting to order at 6:26 p.m.

Pledge of Allegiance - Ms. Mary Jane Binge led the Pledge of Allegiance.

Invocation - Rev. Don Thursby, Little Church of the Desert, gave the Invocation.

Roll Call - the following Councilmembers were present: Mintz, Ramirez, Scott, Wright, Bilderain.

Closed Session Announcements - Nothing to report.

Changes to the Agenda - None.

ANNOUNCEMENTS
Mayor Bilderain announced 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 the City website and clicking on the "Meeting Agendas" link.

AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

1. Proclamation Recognizing April 2025 as Sexual Assault Awareness Month.

Mayor Bilderain read the Proclamation in its entirety and presented the Proclamation to Sara Shook on behalf of Partners Against Violence.

City Council - Regular Meeting with Closed Session
April 22, 2025

2. Proclamation Recognizing April 2025 as DMV Donate Life Month.

Mayor Bilderain read the Proclamation in its entirety.

3. Proclamation Recognizing April 2025 as Child Abuse Prevention Awareness Month.

Mayor Bilderain read the Proclamation in its entirety.

4. Presentation to the Twentynine Palms High School Class of 2028 for their Participation in the Cash for Trash and Recycling Program.

Mayor Pro Tem Mintz presented checks in the amount of $300 each, from Burrtec Waste and Recycling Services and the City of Twentynine Palms to the Twentynine Palms High School Class of 2028 for their trash pick-up efforts in and around the area of Cienega Dr and Hwy 62.

COUNCIL COMMENTS AND REPORTS OF MEETINGS ATTENDED
Councilmember Ramirez said that she attended the Easter Sunday Sunrise Service, Special Olympics, Wing n It Easter Extravaganza, 29 Palms Youth Council Youth Olympics, Morongo Basin Fire Egg Hunt, EDRSC Meeting, and met with constituents.

Councilmember Scott mentioned that he attended the 29 Palms Youth Council Youth Olympics, EDRSC meeting, Special Olympics, Wing n It Easter Extravaganza, Sunrise Service, Morongo Basin Housing Solutions Team meeting, two (2) Toastmasters meetings, and met with constituents.

Councilmember Wright said that he attended the Good Friday Service, Sunrise Service, Easter Resurrection Service Basin Transit meeting and TPHS Track and Field event where Aaron Haney broke the long jump record.

Mayor ProTem Mintz commented that he attended a Basin Transit meeting to review next year's budget, Mojave Desert Air Quality Management District meeting, San Bernardino County Transit Authority meeting, City of Twentynine Palms’ 2- Day Strategic Planning meetings, and Mountain Desert Measure I meeting. He apologized for missing the Special Olympics and Youth Olympics as both events took place while he was out of town.

Mayor Bilderain wished everyone a Happy Easter and thanked all public service agencies that hosted Easter events. He requested Happy Birthday be sung for Councilmember Ramirez. He mentioned that he attended the 1st quarter NCO Service Member Luncheon, the City of Twentynine Palms 2-Day Strategic Planning meeting, Budget and Personnel Committee meetings, and the Twentynine Palms Youth Council Olympics.

CONSENT CALENDAR

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

6. Approval of Minutes of the City Council Meeting Held on March 25, 2025.

7. Approval of Warrant Register Totaling $2,372,871.69

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

RECOMMENDATION: The City Council adopt Resolution No. 25-01, updating the City's authorized officers to order the deposit or withdrawal of funds in the City's LAIF account.

City Council - Regular Meeting with Closed Session
April 22, 2025

9. Updating the Authorized Signers on the City's Bank Accounts.

RECOMMENDATION: The City Council adopted Resolution No. 25-02, designating authorized signers on the City Bank Accounts.

10. Treasurer's Report - FY 2024-25 Quarter 3.

RECOMMENDATION: The City Council receive and approve the Treasurer's Report for the 3rd Quarter of Fiscal Year 2024-25.

ACTION: A motion was made by Mayor Pro Tem Mintz, seconded by Councilmember Wright, to approve the Consent Calendar as submitted.

The above motion was carried by the following:

ROLL CALL VOTE:

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

PUBLIC HEARINGS

11. Housing Element Annual Report.

RECOMMENDATION: The City Council accept the Housing Element Annual Progress Report.

ACTION: A motion was made by Councilmember Scott, seconded by Councilmember Wright, to accept and file the Housing Element Annual Progress Report
The above motion was carried by the following:

ROLL CALL VOTE:

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

12. General Plan Status Report.

RECOMMENDATION: The City Council accept this report.

ACTION: A motion was made by Councilmember Wright, seconded by Councilmember Scott, to accept the General Plan Status report.

The above motion was carried by the following:

ROLL CALL VOTE:

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

City Council - Regular Meeting with Closed Session
April 22, 2025

13. DCA - Chapter 19.02 Authority and Chapter 19.04 The General Plan.

RECOMMENDATION: The City Council find the project exempt from CEQA and adopt the Ordinance approving The Development Code Amendment.

ACTION: A motion was made by Mayor Pro Tem Mintz, seconded by Councilmember Wright, to accept the staff recommendation on Chapter 19.02 Authority and Chapter 19.04 The General Plan.

The above motion was carried by the following:

ROLL CALL VOTE:

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

14. DCA23-000004 - Mobile Home Parks and Special Occupancy Parks.

RECOMMENDATION: The City Council find the project exempt from CEQA and adopt the Ordinance approving the Development Code Amendment for Chapter 19.124 Mobile Home Parks and Special Occupancy Parks.

Community Development Director Gardner (Director Gardner) presented the Staff Report.

Cindy Bernard, Twentynine Palms, spoke on behalf of Pat Flanagan who is not against campgrounds or RVs but believes commercial uses like these under consideration should be in tourist commercial zoning.

Cindy Bernard, Twentynine Palms, endorsed Pat Flanagan's comments.

Susan Peplow, Joshua Tree, attended the Planning Commission session surrounding this discussion. She commented that she supports commercial tourism and feels this is an appropriate location for RV parks, camping and public lands.

John Talley-Jones, Twentynine Palms, spoke against this code.

MHeT - Manufactured Housing Educational Trust, submitted a letter for the record with recommended modifications to the zoning proposal.

Pat Flanagan - Twentynine Palms, submitted a letter referenced above for the record.

ACTION: All Councilmembers were in favor by voice vote, to table this item.

DISCUSSION AND POTENTIAL ACTION ITEMS

15. Confirming the Costs of Abating 6045 Adobe Road.

RECOMMENDATION: The City Council confirm the cost of $2,527.70 for the abatement of the property. The City Council to direct the property owner to pay the confirmed cost of abatement within ten (10) days following the Public Hearing and/or the Code Enforcement Division would be directed to record the confirmed cost of abatement as a Special Assessment against the property.

ACTION: A motion was made by Councilmember Scott, seconded by Councilmember Ramirez, to approve the cost of $2,527.70 for the abatement of the property and direct the property owner to pay the confirmed cost of the abatement within ten (10) days following the Public Hearing and/or the Code Enforcement Division would be directed to record the confirmed cost of the abatement as a Special Assessment against the property.

City Council - Regular Meeting with Closed Session
April 22, 2025
The above motion was carried by the following:

ROLL CALL VOTE:

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

16. Contract Amendment for Charles Abbott Associates.

RECOMMENDATION: The City Council approve the Agreement for Contract Services Fee Amendment.

ACTION: A motion was made by Councilmember Scott, seconded by Councilmember Wright, to approve the Agreement for Contract Services Fee Amendment for Charles Abbott Associates.

The above motion was carried by the following:

ROLL CALL VOTE:

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

17. Update on the Self-Build Housing Project.

City Manager James presented the report.

City Attorney Munoz provided additional information.

Scott Curry, Twentynine Palms, encouraged the City Council to purchase the lots.

Cindy Bernard, Twentynine Palms, agreed with Scott Curry and spoke in favor of purchasing the lots.

Thelma Wingate, Twentynine Palms, supports the Self-Build Housing Project.

Shane DeFalco, Twentynine Palms, spoke in favor of the Self-Build Housing Project.

Jenn DeFalco, Twentynine Palms, supports the Self-Build Housing Project, and believes this is an amazing opportunity for our community.

Karen Harper, Twentynine Palms, thinks this is a good idea and asked what has the City done to get community members approved for the program.

Carlos A. Blandon, Twentynine Palms, said he heard at our last meeting that we are in a deficit and questioned why we don't we go after abated property and slumlords . He added that CVHC has a lot of legal issues, including fraud and corruption.

Stephen Friedley, Twentynine Palms, agreed with Councilmember Scott and previous public comments on this item and added that the City Council needs to start thinking outside the box.

City Council - Regular Meeting with Closed Session
April 22, 2025
A motion was made by Councilmember Scott, giving direction to staff to inquire about the acquisition of ten (10) residential vacant lots in the City of Twentynine Palms for the Self-Help Construction Program. * Motion Died due to lack of second.

Following the City Council discussion, the City Council provided direction to City Manager James to invite Coachella Valley Housing Coalition (CVHC) to Twentynine Palms to have a community workshop to explain to community members the qualifications of the Self-Help Construction Program.

18. Repurposing Unhoused Shower and Resource Center Funds for Youth Backpacks.

RECOMMENDATION: This is an opportunity to discuss the City Council's interest in repurposing a portion of the remaining $37,010 previously allocated to purchase a mobile shower and partially fund a community resource center. Additionally, the City Council should decide whether this item should go through the Housing and Homelessness Committee for a recommendation as to whether the funds be repurposed.

Karen Harper, Twentynine Palms, spoke in support of the program. Ms. Harper's business Jeanine Beauty Supply is willing to support the voucher program along with Women of Color Global.

Jenn DeFalco, Twentynine Palms, said she is concerned that the funds are coming from the Unhoused Fund and Morongo Unified School District gives back to school backpacks and gift cards to students.

ACTION: A motion was made by Councilmember Scott, seconded by Councilmember Wright, to grant $5,000 to Lynette Ramirez's Ready for Reading Book Club for the purpose of providing back to school backpacks and haircuts and clothing vouchers to Twentynine Palms students. The remaining funds would be donated to a local teacher to assist with classroom supplies.

The above motion was carried by the following:

ROLL CALL VOTE:

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

19. Joshua Tree No Kill Animal Shelter Woof Walk Donation Request.

RECOMMENDATION: Recognizing the important partnership between the Palms N Paws Animal Shelter and the Joshua Tree Animal Shelter, Staff requests the City Council support this event.

Glen Harris, Co-President of the Joshua Tree Animal Shelter, gave a presentation to the City Council.

ACTION: All Councilmembers were in favor by voice vote to sponsor $1,500 to the Joshua Tree Animal Shelter for the 2025 Woof Walk.

20. AB 647 (González, M.) Housing Development Approvals: Bill Allowing Demolition of Single-Family Homes and Constructing up to Eight Dwelling Units
RECOMMENDATION: City Staff and the California League of Cities recommend the City Council vote to oppose AB 647 and authorize the City Manager to sign and submit the attached opposition letter, on City letterhead, to our local legislator.

ACTION: A motion was made by Councilmember Wright, seconded by Mayor Pro-Tem Mintz, to authorize the City Manager to sign and submit the opposition letter, on City letterhead, to our local legislator.

City Council - Regular Meeting with Closed Session
April 22, 2025
The above motion was carried by the following:

ROLL CALL VOTE:

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

FUTURE COUNCIL INITIATED ITEMS

1. Discussion on the General Plan Update.

2. Discussion surrounding (i) costs to maintain dirt roads verses paved roads; (ii) what is a City maintained dirt road, a non-maintained dirt road, a road that has been accepted by the City, a road that is private and not accepted by the City; (iii) the City's ability and liability associated with the City periodically maintaining non-maintained roads, and (iv) ways residents can bring non-maintained and non-accepted dirt roads to paved-rural-road standards ready for acceptance into the City's accepted-and-maintained road list.

3. Shade structures around Freedom Plaza and a possible art fixture with "Freedom Plaza" announcing the location.

4. A review and discussion of fees as it relates to Site Plan Reviews for ancillary uses.

5. Discussion on abandoned homes in the community.

6. Discussion on reorganizing the Homeless and Housing Committee.

7. Discussion on partnering with the Boys and Girls Club.

8. Discussion on reviewing policies for non-profits who receive funding from the City.

9. Discussion of a policy regulating the use of City Attorney resources.

10. Revisit allocated funds for the portable showers and Navigation Center.

City Manager James mentioned Director Gardner and the Public Works Department have been working together to map all of the roads (paved and dirt) within our City. Director Gardner and City Manager James will bring an overview report to the City Council in May regarding maintained and non-maintained roads and share with the community the cost of making a dirt road to a paved road. Director Gardner and his department are making progress on review and discussion of fees as it relates to site plan reviews for ancillary uses and he expects to bring this to the City Council on the May 27th agenda.

City Manager James commented that he is waiting on an update from the Boys and Girls Club and City Staff is circulating a grant document for future use to assist with the process of City grant recipients.

PUBLIC COMMENTS
Bryan Mejia, Twentynine Palms, spoke regarding the knife incident at Luckie Park involving a 13-year-old boy with autism.

Jenn DeFalco, Twentynine Palms, spoke regarding the need of a water fill station at four corners for the unhoused. The City would provide the water fill station and water and she would provide the cups.

Cindy Bernard, Twentynine Palms, spoke regarding a consistent vetting system for nonprofits. She also invited the City Council to the Morongo Basin Conservation Association Water Wise Garden Tour on Sunday, April 27, 2025, 9am - 4pm, tickets are $20 per person. The Bernard home is the only home in Twentynine Palms that is participating.

Lashara Maea, Twentynine Palms, spoke regarding the knife incident at Luckie Park involving a 13-year-old boy with autism.

Kimber Hartley, Twentynine Palms, spoke regarding the knife incident at Luckie Park involving a 13-year-old boy with autism.

City Council - Regular Meeting with Closed Session
April 22, 2025
Gale French, Twentynine Palms, spoke regarding a few undesirable properties on Two Mile Road and requested that the City Council consider an Ordinance to limit the number of non-op vehicles on private properties. She asked if you could rent out a trailer on your property.

Johnathan Santiago, representing ESA Solar, introduced himself to the community and mentioned that ESA Solar is working with Southern California Edison, to develop a 20-acre battery energy storage system and solar field. They are looking to break ground 2026/2027.

Susan Peplow spoke positively regarding the Planning Department sending postcards out to residents on the topic of trash and garbage cans, PAAC and Public Works did a great job with the refurbishment of the 29! sign, and invited the public to the TBID board meeting Thursday, April 24, 2025 at 3:30pm, where the second half of 2025 grants and sponsorships will be awarded.

CITY MANAGER UPDATE
City Manager James provided the following update: the Strategic Planning effort is still underway, who do we want to become in twenty years and identify our zero-to-five-year strategic plan to get there. In addition, he shared a recap of the Strategic Planning Workshops that were held on April 4th & 5th. He mentioned that a community survey will be launched in the next week or so, and welcomed a new restaurant to Twentynine Palms, Snake Bite.

ADJOURNMENT- Mayor Bilderain adjourned the meeting at 8:54 p.m.

Respectfully submitted,
Christina Benton
Deputy City Clerk

STAFF REPORT
TO: City Council
FROM: Assistant Planner
FOR MEETING: May 13 2025
SUBJECT: 2nd Reading DCA - Chapter 19.02 Authority and Chapter 19.04 The General Plan.

RECOMMENDATION:

The City Council find the project exempt from CEQA and adopt the Ordinance approving the Development Code Amendment.

ORDER OF PROCEDURE:

Request Staff Report (Community Development Director
Presenting)
Council Questions of Staff
Receive Public Comment
Council Discussion
Motion/Second
Discussion on Motion
Call the Question
ATTACHMENTS:
• Chapter 19.02 and Chapter

19.04 draft
• DCA25-000001 ORD PC
Terms and GP Reports
• PC Reso 25-03 Article 1
BACKGROUND:

At the meeting of April 22, 2025, the City Council held a Public Hearing and approved a Development Code Amendment defining the expiration of the terms of Planning Commission and the election of the Chair and Vice Chair and on the removal of the need for a public hearing for the General Plan Annual Report and Annual Housing Report.

At the meeting of February 18, 2025, the Planning Commission forwarded a recommendation to the City Council for approval of a Development Code Amendment that would define that the terms of the Commission will expire at the first meeting of March and that a new Chair and Vice Chair would also be elected at the first meeting in March. Currently, pursuant to Section 19.02.100 of the City's Development Code, the Planning Commission terms expire in February and the Chair and Vice Chair are elected in April.

Pursuant to Section 19.04.060 of the Development Code, the General Plan Annual Report and the Annual Housing Report shall be reviewed by both the Planning Commission and the City Council at a Public Hearing.

The code requires that this report be completed by July 01 of each year.

State Law requires that the report be submitted to the State by April 1 of each year, along with other requirements. The Development Code does not completely match the requirements of State law. Instead of

modifying the Development Code every time the State Law changes, this amendment is a minor modification to the language of the Development Code to simply reference State Law.

ENVIRONMENTAL:

This action is exempt from CEQA pursuant to Section 15061(b)(3), which states that the activity is covered by the common-sense exception that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where this 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.

ALTERNATIVES:

The City Council could choose to:

1. Request additional information from Staff.

2. Make modifications to the draft code and adopt with recommended changes.

3. Deny the Development Code Amendment.

FISCAL IMPACT:

None.

City of Twentynine Palms Development Code Article 1, General Provisions Adopted July 26, 2016
Effective August 25, 2016 Page 19.02-1 Authority
Chapter 19.02 Authority
Sections:

19.02.010 Title ....................................................................................................................19.02-1

19.02.020 Purpose ...............................................................................................................19.02-1

19.02.030 Constitutional Authority.....................................................................................19.02-1

19.02.040 Effect of Development Code..............................................................................19.02-1

19.02.050 Rules of Interpretation........................................................................................19.02-2

19.02.060 Prior Approvals..................................................................................................19.02-2

19.02.070 Status of Covenants and Agreements.................................................................19.02-2

19.02.080 Conflicting Ordinances.......................................................................................19.02-3

19.02.090 Status of Specific Plans......................................................................................19.02-3

19.02.100 Planning Commission.........................................................................................19.02-3

19.02.110 Development Code Administration....................................................................19.02-5

19.02.120 Severability.........................................................................................................19.02-5

19.02.010 Title
This Title shall be known as the “City of Twentynine Palms Development Code,” hereinafter referred to as the “Development Code.”

19.020.020 Purpose
The purpose of this Development Code is to protect and promote the public health, safety and welfare of the citizens of Twentynine Palms; implement the goals and objectives of the General Plan in guiding future growth of the City; safeguard and enhance the appearance and quality of development of the City; and protect the physical, social and economic stability resulting from comprehensive and orderly planned development.

19.02.030 Constitutional Authority
This Development Code is adopted pursuant to the authority granted to the City of Twentynine Palms by the California Constitution, and pursuant to the California Planning and Zoning Law (Government Code Section 65000 et seq.), the State Subdivision Map Act (Government Code Section 66410 et seq.), the California Environmental Quality Act (Public Resources Code 21000 et seq.), and other applicable state and local requirements.

19.02.040 Effect of Development Code
The standards, criteria, policies and requirements contained in this Development Code shall be considered the minimum necessary to promote the health, safety and welfare of the City.

EXHIBIT “A”

City of Twentynine Palms Development Code Article 1, General Provisions Adopted July 26, 2016
Effective August 25, 2016 Page 19.02-2 Authority

19.02.050 Rules of Interpretation
A. Development Code Regulations. Where uncertainty exists regarding the interpretation of any provision of this Title or its application to a specific site, the Community Development Director shall determine the intent of the provision. The determination of the Director may be appealed in accordance with the provisions of Section 19.28.120 (Appeals).

B. Zoning Map. Where uncertainty exists regarding the boundary of a land use/zoning district, the following rules shall apply:

1. District boundaries shown as approximately following the property line of a lot or an open space line shown on a map shall be construed to follow such lines.

2. Where a district boundary divides a lot, the location of the district boundary shall be determined by the Director. Such determinations shall not constitute amendment of the Zoning Map.

3. District boundaries shown as approximately following right-of-way lines of highways, streets or other identifiable boundary lines shall be construed to follow such right-of-way or boundary lines.

4. District boundaries shown as lying within right-of-way lines of highways, streets, defined natural features or other identifiable boundary lines shall be construed to follow the centerline of such right-of-way or boundary lines.

5. District boundaries shown as lying at the edge of a mapped floodplain boundary line shall be construed to follow the adopted FEMA or DWR floodplain boundary or contour for the watercourse, as determined by the Director.

6. If any uncertainty remains as to the location of a district boundary or other feature shown on the Zoning Map, the location shall be determined by the Director. Such determinations shall not constitute amendment of the Zoning Map.

C. Record of Interpretation. The Director shall keep a record of interpretations made pursuant to this Section that shall be available to the public.

19.02.060 Prior Approvals
Any project approved by the City prior to the effective date of this Development Code, which includes a use or improvement that does not conform to the regulations set forth herein, may nevertheless be developed to the extent authorized by the approval, provided the approval has not expired. Such uses and improvements shall be deemed legal nonconforming.

19.02.070 Status of Covenants and Agreements
The provisions of this Development Code are not intended to abrogate any legally adopted easements, covenants or other agreements which are more restrictive than the provisions of this Development Code.

City of Twentynine Palms Development Code Article 1, General Provisions Adopted July 26, 2016
Effective August 25, 2016 Page 19.02-3 Authority

19.02.080 Conflicting Ordinances
In the event the provisions of this Development Code conflict with any other City ordinance or regulation, the more restrictive shall govern.

19.02.090 Status of Specific Plans
Where a specific plan has been adopted containing specific development standards, the development standards contained in this Development Code shall not apply to the degree that they are not consistent with the development standards contained in the specific plan.

19.02.100 Planning Commission
A. Purpose. The purpose of this Section is to establish the Planning Commission for the City of Twentynine Palms and identify the membership, powers and duties of the Planning Commission.

B. Membership. The Planning Commission shall consist of five members, each of whom shall be appointed by and serve at the pleasure of the City Council.

1. The Planning Commission shall represent differing segments of the community. The members of the Planning Commission shall be residents of the City and shall be registered voters. When a person serving on the Planning Commission ceases to be a resident of the City of Twentynine Palms, the City Council shall declare vacant such person’s position on the Planning Commission and shall nominate another eligible person to the unexpired term.

2. No members of the Planning Commission shall hold any other remunerative office or position with the City. No member of the City Council shall be eligible for membership on the Planning Commission.

3. Planning Commissioners may, at the discretion of the City Council, be reappointed to subsequent terms of office upon the expiration of their term.

4. Members of the Planning Commission shall receive compensation for their attendance at each meeting of the Commission as deemed appropriate by the City Council by Resolution.

C. Term of Office. The term of office for Planning Commissioners shall be four years, or until their successor is sworn into office. Terms shall be staggered with three terms expiring at the first meeting March in February following a three-person City Council election and two terms expiring at the first meeting in March in February following a two-person City Council election.

1. To be considered for reappointment to the Planning Commission at the conclusion of each Planning Commissioner's term, Planning Commissioners shall be required to reapply for consideration of reappointment.

2. Any member of the Planning Commission may be removed by a majority vote of the City Council at a duly noticed public meeting.

City of Twentynine Palms Development Code Article 1, General Provisions Adopted July 26, 2016
Effective August 25, 2016 Page 19.02-4 Authority
D. Absence from Meetings. If a member of the Planning Commission is absent from three successive regular meetings of the Planning Commission, without cause, the office of such member shall be deemed vacant and the Director shall immediately inform the City Council of such vacancy. An absence due to illness is an unavoidable absence and written or verbal notice thereof to the Community Development Director Chair of the Planning Commission on or before the day of any regular meeting of the Commission shall be deemed absence for cause.

E. Selection of Chair and Vice Chair. At the first meeting of March April each year or as soon thereafter as practical, the Planning Commission shall elect its Chair from among the appointed members. The term of office as Chair shall be for one year. Upon selection and seating of the Chair, the Planning Commission shall elect a Vice Chair from among the four remaining members.

F. Planning Commission Meetings. The Planning Commission shall hold regular meetings. The meeting schedule shall be determined by the Planning Commission after selection of the Chair and Vice Chair.

Such determination shall include the dates, time and place of such meetings.

1. The Commission may hold additional adjourned or special meetings as may be called in accordance with the law.

2. If any regular meeting falls on a holiday, it may shall be held on the next scheduled business day.

All meetings otherwise scheduled or noticed to be held on a regular meeting day falling on a holiday may shall be held at the meeting of the next business day without additional noticing requirements.

G. Powers of the Planning Commission.

1. The Planning Commission shall perform the following functions and shall have the power, except as otherwise provided by law, to:
a. Act as the planning agency for the City of Twentynine Palms. b. Prepare and implement the General Plan. Such duties to include:
i. Review public works projects for consistency with the General Plan. ii. Review discretionary projects and determine consistency with the General Plan. iii. Promote public interest in the General Plan regarding its implementation.

2. Provide an annual report to the City Council on the status of the General Plan.

3. Recommend regulations for the future growth, development and beautification of the City, in respect to its public and private buildings and works, streets, schools, parks, grounds and vacant lots.

City of Twentynine Palms Development Code Article 1, General Provisions Adopted July 26, 2016
Effective August 25, 2016 Page 19.02-5 Authority

4. Recommend plans, consistent with the future growth and development of the City, to secure sanitation, proper service of public utilities, and transportation facilities.

5. Recommend to the City Council approval, conditional approval or disapproval of tentative maps of proposed subdivision of land.
a. The City Council hereby designates the Planning Commission as its advisory agency with respect to the design and improvement of proposed subdivisions. b. Every such map or plat shall, prior to its final approval or disapproval by the Council, be submitted to the Commission for action thereon.

6. Hold public hearings to review and approve or deny, or make recommendation to the City Council on, development and land use applications as identified on Table 19.28.110-1 (Approving Authority for Land Use Permits) of the Development Code.

7. Perform other duties as shall be necessary to carry out the provisions of this Article and the provisions of the Conservation and Planning Act of the state, amendments or any act substituted therefore.

19.02.110 Development Code Administration
Administration of the Development Code shall be consistent with federal, state and local laws.

19.02.120 Severability
Should any section, chapter, paragraph, phrase or any portion of this Development Code be declared unconstitutional or invalid or set aside by any court of competent authority, such action shall not affect other sections, chapters, paragraphs, phrases or parts hereof as adopted or amended.

City of Twentynine Palms Development Code Article 1, General Provisions Adopted July 26, 2016
Effective August 25, 2016 Page 19.04-1 The General Plan Chapter 19.04 The General Plan
Sections:

19.04.010 Purpose ...............................................................................................................19.04-1

19.04.020 Adoption.............................................................................................................19.04-1

19.04.030 Interpretation ......................................................................................................19.04-1

19.04.040 Consistency ........................................................................................................19.04-2

19.04.050 Amendment ........................................................................................................19.04-2

19.04.060 Annual Review...................................................................................................19.04-2

19.04.010 Purpose
The purpose of this Chapter is to establish guidelines and procedures for the adoption, maintenance and administration of the General Plan. The General Plan and these procedures are to be consistent with state planning laws (California Government Code Section 65300 et seq.) and state General Plan Guidelines.

19.04.020 Adoption
The Community Development Director (Director) shall prepare, the Planning Commission shall recommend, and the City Council shall adopt a comprehensive, long-term General Plan for orderly physical development and the preservation of resources and open space in the City according to Section 65300 et seq. of the California Government Code, the state General Plan Guidelines and any other applicable state statutes.

A. Form. The General Plan shall constitute an integrated, internally consistent, and compatible statement of land use policies, consisting of:

1. Maps covering the incorporated area of the City and designating existing and proposed land uses and public facilities.

2. Text stating citywide goals, objectives, policies, standards and implementation programs.

B. Content. The General Plan shall include background data and analysis, required elements and other optional elements, and related planning studies to be utilized for interpretation, explanation and support of the plan’s policies and designations.

19.04.030 Interpretation
The General Plan shall be applied and interpreted under the direction of the Director. Where disputes arise over the interpretation of General Plan policies or mapping designations, such interpretation shall be resolved by a majority vote of the Planning Commission based on a report by the Director. Determinations made by the Planning Commission shall be final unless appealed to the City Council in accordance with the procedures of Section 19.28.120 (Appeals).

City of Twentynine Palms Development Code Article 1, General Provisions Adopted July 26, 2016
Effective August 25, 2016 Page 19.04-2 The General Plan

19.04.040 Consistency
A. Land Use Regulation. All land use regulations including building, zoning, subdivision and environmental protection regulations shall be consistent with the adopted General Plan.

B. Public Works Project. Pursuant to California Government Code Section 65402, no real property shall be acquired by dedication or otherwise for street, square, park or other public purpose, and no real property shall be disposed of, no street shall be vacated or abandoned, and no public building or structure shall be constructed or authorized, until such project has been submitted to, and reported upon, as to conformity with the General Plan by the Director.

C. Reviewing Agency. Pursuant to California Government Code Sections 65401 and 65403, the Community Development Department is designated as the planning agency to review and report on, and the Planning Commission is designated as the body to make a finding of consistency with, the General Plan for public works and capital improvement programs.

19.04.050 Amendment
Any proposal to update or otherwise amend any element of the General Plan shall be processed in accordance with Chapter 19.50 (General Plan Amendment) of this Development Code.

19.04.060 Annual Review
A. Pursuant to Government Code Section 65400, on or before April July 1 of each year, the Director shall prepare and the Planning Commission shall review and submit to the City Council an annual report on the status of the General Plan and progress in its administration and implementation. The report shall be considered subject at to a public meeting hearing by the Planning Commission and City Council and shall include, but not be limited to, a summary of the following information:

1. A summary of General Plan amendments processed during the preceding year and those pending review.

2. A report on progress in administering and implementing the General Plan including progress in meeting the City’s fair share of regional housing needs pursuant to California Government Code Section 65584.

3. A review of significant policy issues which may have arisen regarding provisions of the General Plan.

4. Recommendations for amendments to be initiated to maintain an effective, up-to-date General Plan, including policy changes, clarifications and changes in land use allocations and maps.

City of Twentynine Palms Development Code Article 1, General Provisions Adopted July 26, 2016
Effective August 25, 2016 Page 19.04-3 The General Plan B. Pursuant to Government Code Section 65401, the Director shall request from each City department and each special district or school district, whose jurisdiction lies wholly or partially within the City, a list of the proposed public works projects recommended for planning, initiation or construction during the ensuing fiscal year. The Director shall list and classify all such projects and prepare a coordinated program of public works projects for the ensuing fiscal year.

C. The Director shall report to the City Council as to the coordinated program of public works projects’ conformity with the General Plan.

1 CITY OF TWENTYNINE PALMS CITY

COUNCIL
ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TWENTYNINE PALMS, CALIFORNIA, APPROVING AN AMENDMENT TO THE CITY’S DEVELOPMENT CODE, AMENDING CHAPTER 19.02 AUTHORITY, DEFINING

THE EXPIRATION OF THE TERMS OF THE PLANNING COMMISSION AND

THE ELECTION OF THE CHAIR AND VICE CHAIR AND AMENDING CHAPTER

19.04 THE GENERAL PLAN, REFERENCING STATE LAW FOR THE

SUBMITTAL OF THE GENERAL PLAN ANNUAL REPORT AND ANNUAL
HOUSING REPORT.

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, the Development Code identifies the expiration of the Planning Commissioners term in February and the election of the Chair and Vice Chair in April; and WHEREAS, this amendment will establish the expiration of the Planning Commissioner term and the election of the Chair and Vice at the first meeting in March; and
WHEREAS, the General Plan Annual Report and the Annual Housing Report are due to the State by April 01st of each year; and
WHEREAS, the Development Code requires that these reports be completed by July 01st of each year; and
WHEREAS, this amendment will modify the language of the Development Code to reference State law; and
WHEREAS, on February 18, 2025, the Planning Commission of the City of Twentynine Palms conducted a duly noticed and advertised Public Hearing on the Development Code Amendment for Chapter 19.02, Authority and Chapter 19.04, The General Plan; and
WHEREAS, the Planning Commission forwarded a recommendation to the City Council for approval of the Development Code Amendment; and
WHEREAS, on Wednesday, April 02, 2025, 2025, 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 April 22, 2025, the City Council of the City of Twentynine Palms

2 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 April 22, 2025, at which time the Council introduced Ordinance No. ___, amending Chapter 19.02, Authority and Chapter 19.04, The General Plan; and
WHEREAS, on April 22, 2025, 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
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 a text amendment to define the expiration dates of Planning Commissioner terms and the election of the Chair and Vice Chair and includes a minor modification to the language to be consistent with State Law.

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 a text amendment to define the expiration dates of Planning Commissioner terms and the election of the Chair and Vice Chair and includes a minor modification to the language to be consistent with State Law.

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 a text amendment to define the expiration dates of Planning Commissioner terms and the election of the Chair and Vice Chair and includes a minor modification to the language to be consistent with State Law.

D. The Zone Change or Development Code Amendment ensures protection of the general

3 health, safety and welfare of the community.

The Development Code Amendment is a text amendment to define the expiration dates of Planning Commissioner terms and the election of the Chair and Vice Chair and includes a minor modification to the language to be consistent with State Law.

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 19.02, Authority and Chapter 19.04, The General Plan, 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 approves and adopts the "Findings" required for approval of the Development Code update as set forth above.

Section 4. The City Council of the City of Twentynine Palms amends 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 22nd day of April 2025.

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.

4 PASSED, APPROVED, AND ADOPTED this 13
th day of May 2025.

Steve Bilderain, Mayor
ATTEST:

Cindy Villescas CMC, 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 22 nd
day of April 2025 and duly adopted by the City Council of the City of Twentynine Palms in a meeting held on the 13
th day of May 2025, in Twentynine Palms, California by the following vote, to wit.

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS
Cindy Villescas CMC, City Clerk

STAFF REPORT
TO: City Council
FROM: City Manager
FOR MEETING: May 13 2025
SUBJECT: Annual Contract with San Bernardino County Sheriff's Department for FY 2025 - 26.

RECOMMENDATION:

The City Council approve the annual contract with the San Bernardino County Sheriff's Department for Law Enforcement Services in the amount of $5,428,099, plus incidental costs.

ORDER OF PROCEDURE:

Request Staff Report (City Manager Presenting)
Council Questions of Staff
Public Comment
Council Discussion
Motion/Second
Call the Question
ATTACHMENTS:
• SB County Sheriff Contract
Schedule A July 2025 - June
2026
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 and related support services. The juvenile officer works throughout the City, not primarily at the schools. Cost for these services will be $5,428,099 for Fiscal Year 2025-26. However, the total budget for law enforcement services is $5,939,605, which includes incidental costs such as vehicle operation and maintenance, department supplies, and overtime as stated below. The School Resource Officer will cost the City approximately $229,647 in FY 2025-26; however, this position is only spending approximately 50% of his/her hours for school related activities. Morongo Unified School District (MUSD) will provide the City with approximately $114,824 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:

Overtime: $95,000
Cal ID Program: $30,506
Vehicle Maintenance and Operation: $200,000
Special Department Supplies: $4,000 Page 31 of 168
Seized Assets Law Enforcement costs: $2,000
SLEF (Supplemental Local Law Enforcement Service Funds): $180,000 The sheriff’s contract cost (schedule A) is 0.6% below last year’s contract, or $32,626. However, the attached contract is subject to change as the Sheriff's department is currently undergoing labor negotiations with the County's various employee organizations/unions. The fiscal impact is difficult to assess at this time; however, negotiations are expected to be completed by December 2025. The City is considering requesting the addition of a Sheriff Service Specialist position to support deputies with various administrative tasks; however, due to the unknown fiscal impact of the undergoing labor negotiations, the request will have to be put on hold until an informed decision can be made. The projected fiscal impact for adding a Sheriff Service Specialist is approximately $108,000, which includes the position on a full-time basis, one (1) truck and one (1) Handheld Transceiver (HT) for the specialist.

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:

The Sheriff's contract for FY 2025-26 is $5,428,099, plus incidental costs; however, due to the undergoing labor negotiations, the proposed contract is subject to change. Total law enforcement costs for the upcoming fiscal year are budgeted at $5,939,605.

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 Carolina Mendoza, Chief Deputy Director of Sheriff’s Administration
Telephone Number (909) 387-0640
Contractor City of Twentynine Palms
Contractor Representative Steven Bilderain, Mayor
Telephone Number (760) 367-6799
Contract Term 07/01/2025 through 06/30/2026
Original Contract Amount $5,428,099
Amendment Amount ---------------
Total Contract Amount $5,428,099
Cost Center 4414451000
IT IS HEREBY AGREED AS FOLLOWS:

AMENDMENT No. 34
Effective July 1, 2025, 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 herein by this reference.

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

Contract Number
94-525 A-34
SAP Number
N/A

[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 Grace B. Parsons, Deputy County Counsel Carolina Mendoza, 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 Steven Bilderain
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

SCHEDULE A
Law Enforcement Services Contract
City of Twentynine Palms
2025-26
FY 2025-26
COST

0.45 - Lieutenant 178,914 1

1.93 - Sergeant 627,419 1

2.22 - Detective/Corporal (80 hours per week) 612,196 1

9.30 - Deputy Sheriff (336 hours week) 2,135,717 1

1.00 - Deputy Sheriff (non-relief) 229,647 1

1.00 - School Resource Officer 229,647 1

2.70 - Office Specialist 267,880 1

0.31 - Motor Pool Services Assistant 30,358 1

4.00 - Marked Unit 90,634 2

2.00 - Marked Unit - 4X4 SUV 51,747 2

2.00 - Unmarked Unit 22,790 2

1.00 - Pickup truck - Citizen Patrol 8,854 2

1.00 - Citizen Patrol Donated Hybrid SUV (Equip & Comm Only) 2,530 3 Dispatch Services 313,037 1

18.00 - HTs (Amortization, Access & Maintenance) 28,836

1.00 - Additional MDCs (Access Only) 571

15.00 - Taser Replacement (Amortized over 5-years) 15,474 Administrative Support 26,073
Office Automation 64,156
Body Worn Cameras 21,010
Vehicle Insurance 31,157
Personnel Liability & Bonding 378,185
Workers' Comp Experience Modification (18,075)
County Administrative Cost 79,342
Cost for FY2025-26 $ 5,428,099 1-5
Monthly Payment Schedule
$452,337
2 nd through 12th payments due the 5th of each month: $452,342 1 2
3 4
5 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.

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

Services and supplies will be billed to the City on a quarterly invoice.

LEVEL OF SERVICE
1 st payment due July 15, 2025:

Grant funded, donated and non-replaceable vehicles will incur a vehicle insurance and equipment connection cost for the period the vehicle is in use.

SCHEDULE A
Law Enforcement Services Contract
City of Twentynine Palms
2025-26
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 Memoranda of Understanding with the County’s various employee organizations. • Actual overtime costs.
• Actual on-call costs.
• Actual costs of vehicle fuel, repair and maintenance, including the costs of collision repair. • Actual costs for 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 Tier 2 - 10.30 5.01
School Resc Officer - 1.00

15.90 VEHICLES: DONATED VEHICLES LIST:

Marked Patrol Units - 4.00 Citizen On Patrol-Hybrid
SUV
- 1.00 *
Marked Patrol Units-4x4 SUV - 2.00 DUI Trailer - 1.00 * Safety Unmarked Units - 2.00 2.00 *
Citizen Patrol Pick-up - 1.00
Donated Vehicles-Ins Only - 2.00 *

11.00 * (Included for insurance costs only)

LEVEL OF SERVICE SUMMARY

STAFF REPORT
TO: City Council
FROM: Finance Technician
FOR MEETING: May 13 2025
SUBJECT: Approval of Warrant Register Totaling $1,055,432.70.

ATTACHMENTS:
• Approval of Warrant Register
Totaling $1,055,432.70

Check Date
Warrant Register
PPBI Gen Chkng

CITY OF TWENTYNINE PALMS
Vendor
WARRANT DATE: 05-13-25
Check / Payment
0020331 4/16/2025 [1005] AFLAC 648.86
0020332 4/16/2025 [1008] ANIMAL ACTION LEAGUE INC 5,944.00 0020333 4/16/2025 [1014] ARROWHEAD CREDIT UNION 18,372.19 0020334 4/16/2025 [1017] AUTOZONE (0842) 747.27
0020335 4/16/2025 [1037] BURRTEC WASTE & RECYCLING (2692) 2,000.00 0020336 4/16/2025 [3716] CA DEPARTMENT OF INDUSTRIAL RELATIONS 268.75 0020337 4/16/2025 [1053] CINTAS CORPORATION (8315) 527.49 0020338 4/16/2025 [3701] CIVITAS ADVISORS 6,786.00
0020339 4/16/2025 [1079] DATA TICKET INC 801.66
0020340 4/16/2025 [3849] DESERT TRADE LLC 14,250.00
0020341 4/16/2025 [2473] ENNIS-FLINT, INC. 1,670.13
0020342 4/16/2025 [3618] FIFTH ASSET, INC. DBA DEBTBOOK 6,500.00 0020343 4/16/2025 [1107] FULTON DISTRIBUTING 492.28
0020344 4/16/2025 [0510] ABIGAIL HERNANDEZ CONDE 31.85
0020345 4/16/2025 [3874] LINCOLN FINANCIAL GROUP 1,847.73 0020346 4/16/2025 [1182] NV5 INC (8793) 1,620.00
0020347 4/16/2025 [3884] ODP BUSINESS SOLUTIONS LLC 202.32 0020348[VOID] 4/16/2025 [3382] PARTY LIFE PHOTO BOOTH 675.00 0020349 4/16/2025 [2230] SAN BERNARDINO CO REGISTRAR OF VOTERS 3,454.00 0020350 4/16/2025 [1249] SPECTRUM 44.00
0020351 4/16/2025 [3186] STILES ANIMAL REMOVAL INC. 1,350.00 0020352 4/16/2025 [1252] TPHS 300.00
0020353 4/16/2025 [1269] VALIC C/O JP MORGAN CHASE 1,971.66 0020354 4/16/2025 [1271] VCA 29 PALMS ANIMAL HOSPITAL (0319) 457.00 0020355 4/16/2025 [1679] YUCCA VALLEY MIRROR & GLASS DBA UNITED GLASS 1,015.94 0020356 4/23/2025 [3861] AMERICAN MUSIC PRODUCTIONS 600.00 0020357 4/23/2025 [2760] AMERICAN RED CROSS TRAINING SERVICES 423.00 0020358 4/23/2025 [3877] AMERITAS LIFE INSURANCE CORP 3,599.28 0020359 4/23/2025 [3877] AMERITAS LIFE INSURANCE CORP 634.00 0020360 4/23/2025 [1008] ANIMAL ACTION LEAGUE INC 952.00 0020361 4/23/2025 [3909] BARRY CALVERT 847.00
0020362 4/23/2025 [0525] ADESSA BIGLER 299.29
0020363 4/23/2025 [1037] BURRTEC WASTE & RECYCLING (2692) 662,262.97 0020364 4/23/2025 [3701] CIVITAS ADVISORS 6,240.00
0020365 4/23/2025 [1106] FRONTIER 105.95
0020366 4/23/2025 [3911] GEMINI TRAINING SOLUTIONS LLC 2,950.00 0020367 4/23/2025 [3910] GISELLE WOO 2,100.00
0020368 4/23/2025 [1114] GLOBALSTAR 2,729.98
0020369 4/23/2025 [3743] HOME DEPOT CREDIT SERVICES 1,046.80 0020370 4/23/2025 [1157] MCCS 12,500.00
0020371 4/23/2025 [1167] MORONGO UNIFIED SCHOOL DISTRICT 6,982.08 0020372 4/23/2025 [1167] MORONGO UNIFIED SCHOOL DISTRICT 3,276.00 0020373 4/23/2025 [3782] MRC SMART TECHNOLOGY SOLUTIONS 883.02 Run: 5/06/2025 at 8:19 AM Page: 1

0020374 4/23/2025 [3884] ODP BUSINESS SOLUTIONS LLC 179.14 0020375 4/23/2025 [3076] ONLINE SOLUTIONS LLC 25,200.00 0020376 4/23/2025 [3886] PARSONS TRANSPORTATION GROUP INC 25,757.00 0020377 4/23/2025 [3382] PARTY LIFE PHOTO BOOTH 675.00
0020378 4/23/2025 [0564] APRIL RAMIREZ 140.07
0020379 4/23/2025 [1212] RUTAN AND TUCKER 31,526.11
0020380 4/23/2025 [2396] SAN BERNARDINO COUNTY-CSA 247.44 0020381 4/23/2025 [1230] SCE 892.72
0020382 4/23/2025 [3810] SHERWOOD DESIGN ENGINEERS, LTD. 1,726.25 0020383 4/23/2025 [1249] SPECTRUM 199.99
0020384 4/23/2025 [1249] SPECTRUM 55.73
0020385 4/23/2025 [1249] SPECTRUM 24.80
0020386 4/23/2025 [1249] SPECTRUM 130.00
0020387 4/23/2025 [1249] SPECTRUM 159.63
0020388 4/23/2025 [1249] SPECTRUM 1,179.00
0020389 4/23/2025 [1249] SPECTRUM 119.99
0020390 4/23/2025 [1249] SPECTRUM 119.99
0020391 4/23/2025 [1249] SPECTRUM 149.99
0020392 4/23/2025 [1178] T-MOBILE 44.60
0020393 4/23/2025 [0531] AMY TESSIER 115.07
0020394 4/23/2025 [1254] TROPHY EXPRESS 63.25
0020395 4/23/2025 [1271] VCA 29 PALMS ANIMAL HOSPITAL (0319) 516.25 0020396 4/23/2025 [2528] WELLS FARGO VENDOR FIN SERV 121.71 0020397 4/23/2025 [0563] XAVIER WILHITE 59.22
0020398 4/30/2025 [3581] ADVANCED IMAGING SOLUTIONS 516.65 0020399 4/30/2025 [2680] AIS 262.27
0020400 4/30/2025 [3121] AMERICAN EXPRESS 3,860.09
0020401 4/30/2025 [1007] ANDY'S LANDSCAPE AND TREE SERVICE (3803) 1,975.00 0020402 4/30/2025 [1037] BURRTEC WASTE & RECYCLING (2692) 583.42 0020403 4/30/2025 [1052] CHARLES ABBOTT ASSOCIATES INC 37,291.85 0020404 4/30/2025 [0488] SCOTT CLINKSCALES 125.00
0020405 4/30/2025 [3912] DESIGN CONCEPTS 15,400.00
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0020408 4/30/2025 [1106] FRONTIER 106.14
0020409 4/30/2025 [2183] JOE A GONSALVES & SON 3,000.00 0020410 4/30/2025 [3913] MIG 6,580.00
0020411 4/30/2025 [1231] PRIMO BRANDS 932.35
0020412 4/30/2025 [0564] APRIL RAMIREZ 241.36
0020413 4/30/2025 [2268] SAN BERNARDINO COUNTY-RADIO 111.52 0020414 4/30/2025 [1230] SCE 170.61
0020415 4/30/2025 [3056] SOAP SUDS CLEANING SERVICE (9049) 2,627.00 0020416 4/30/2025 [1243] THE GAS COMPANY 4,847.26
0020417 4/30/2025 [1255] TURF STAR INCORPORATED 4,812.53 0020418 4/30/2025 [1269] VALIC C/O JP MORGAN CHASE 1,971.66 0020419 4/30/2025 [1271] VCA 29 PALMS ANIMAL HOSPITAL (0319) 300.00 0020420 4/30/2025 [1271] VCA 29 PALMS ANIMAL HOSPITAL (0319) 1,001.21 0020421 4/30/2025 [1272] VCA YUCCA VALLEY 84.33
0020422 4/30/2025 [1273] VERIZON WIRELESS 818.51
0020423 4/30/2025 [0171] CYNTHIA VILLESCAS 74.90
Run: 5/06/2025 at 8:19 AM Page: 2

EFT 4/18/2025 97,715.79
Approved by: Date:

Total Checks: 1,055,432.70
Run: 5/06/2025 at 8:19 AM Page: 3

STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: May 13 2025
SUBJECT: Retirement Plan Investment Advisory Services Agreement.

RECOMMENDATION:

The City Council approve the service agreement with SageView to provide retirement plan investment advisory services for the City's Deferred Compensation Program.

ORDER OF PROCEDURE:

Request Staff Report (Finance Director Presenting)
Council Question of Staff
Request Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Knowledge Center Paper -
White Paper_Fiduciary
Responsibilities
• SageView Advisory Group
LLC - Agreement
• EXHIBIT A - SageView's
Proposal
• Benefits Workshop
Presentation 4.15.25
BACKGROUND:

The City sponsors and maintains deferred compensation plans under Section 457(b) of the of the Internal Revenue Code of 1986, as amended (“457(b) plans”). The City established 457(b) plans with CalPERS, Nationwide, and Valic (now Corebridge Financial). The City's Fiduciary duties and obligations in administering its 457(b) plans fall under California Law (see attached White Paper - Fiduciary Responsibilities).

Under California Law, the City has an obligation to:
 act for the exclusive purpose of providing retirement benefits to participants. This obligation takes precedence over all other duties;

 engage in a prudent process for making all decisions related to the operation of the plan, including decisions related to the plan's investments and services;  prudently select and monitor the investment alternatives offered under the plan; and  seek help from competent consultants and advisors.

The City is overdue for a review of its 457(b) program. Finance Staff met with two different advisors to discuss the review process of the current program. Staff is recommending that the City Council engage with SageView to provide retirement plan investment advisory services. Staff selected SageView, not only based on price, but primarily based on its team's experience and knowledge of deferred compensation programs, including 457(b) plans, and applicable laws and regulations. Under the proposed agreement, SageView will conduct a Request for Information (RFI) to assist the City in finding and selecting an enhanced deferred compensation program. The ultimate goal of this review is to provide plan participants with best-in-class investment options, lower recordkeeping and administrative fees, and enhanced education and ongoing support.

A preliminary review of the City's 457(b) plans revealed that Nationwide's current pricing structure is quite high compared to market. Currently, recordkeeping fees with Nationwide range an average of

0.82%, and weighted operating expenses range an average of 0.73%. However, other vendors can offer recordkeeping fees and operating expenses as low as 0.20% and 0.25% respectively. CalPERS pricing structure is reasonable; however, its investment options are very limited and do not provide plan participants with optional provisions afforded under the SECURE 2.0 Act.

Since this change will impact active and retired employees enrolled in the current 457(b) program, Staff hosted an employee workshop on Tuesday, April 15, 2025, to inform plan participants of this anticipated change. Javier Obando, SageView's Retirement Plan Consultant, facilitated this workshop, and those in attendance had a chance to provide input and ask questions about the review process and its benefits.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

The City Council could choose not to approve the agreement.

FISCAL IMPACT:

The Request for Information will be at no cost to the City. SageView's fees and expenses related to the plan will be paid by the plan participants.

.oc
Fiduciary Duties and Obligations
in Administering 457(b) Plans
under California Law

A WHITE PAPER
By
Fred Reish, Bruce Ashton and Stephanie
Bennett
11755 Wilshire Boulevard, 10th Floor
Los Angeles, CA 90025-1539
(310) 478-5656 / (310) 478-5831 [fax]
[email protected] / [email protected]
www.reish.com
August 2006

.oc

TABLE OF CONTENTS

1. Introduction................................................................................................................ 1

2. Executive Summary................................................................................................... 2

3. Discussion.................................................................................................................. 4

3.1 Fiduciary Duties under California Law ............................................................ 4

3.2 The Exclusive Purpose Rule ............................................................................. 6

3.3 Prudent Person Rule.......................................................................................... 8

3.4 The Duty to Monitor ....................................................................................... 13

3.5 Delegation of Investment Direction to Participants........................................ 14

4. Best Practices........................................................................................................... 17

5. Conclusion ............................................................................................................... 19

1 Fiduciary Duties and Obligations in Administering 457(b) Plans under California Law

1. Introduction
The purpose of this White Paper is to educate sponsors of plans formed under section 457(b) of the Internal Revenue Code of 1986, as amended (“457(b) plans”) about their fiduciary duties and responsibilities under California law. The discussion will focus on duties imposed on the fiduciaries of California governmental 457(b) plans by the California State Constitution and the Government Code. Those duties are substantially identical to the fiduciary duties imposed on private sector fiduciaries by the Employee Retirement Income Security Act of 1974 (ERISA). As a result, where the California legal provisions are not developed, we will look to the welldeveloped regulatory and judicial authorities under ERISA to interpret the fiduciary requirements.1

This White Paper is organized as follows:
¾ We first discuss the requirements under the California Constitution regarding retirement boards of public pension and retirement systems, including the duties to:
• act for the exclusive purpose of providing benefits to participants and beneficiaries; and
• engage in a prudent process for making all decisions related to the operation of the plan, including decisions related to the plan’s investments and services. ¾ We then discuss how those rules apply to fiduciaries responsible for the investment of money and/or administration of section 457(b) plans.
¾ Finally, we conclude by describing best practices for fiduciaries in administering 457(b) plans consistent with their obligations under California law.

1 Government plans are exempt from ERISA. Therefore, we will analyze the federal law for guidance where the state provisions are identical or substantially similar to those under ERISA.

2 2. Executive Summary
The California Constitution provides that retirement boards (and their members) of public pension and retirement systems, including 457(b) plans, have a duty to:
• invest the assets of the plan;
• administer the plan;
• act for the exclusive purpose of providing benefits to participants and beneficiaries; and
• engage in a prudent process for making all decisions related to the operation of the plan, including decisions related to the plan’s investments and related services.

The primary duty is the obligation to act for the exclusive purpose of providing retirement benefits to the participants. That is, the other duties must be fulfilled in a manner consistent with the provision of secure, yet meaningful, retirement benefits.

The conduct of fiduciaries in fulfilling that objective is measured under the prudent person standard. Although this standard is not well-developed under California law, the duty to act prudently under ERISA requires that fiduciaries make informed and reasoned decisions about all issues related to management of the plan, for example, plan investments, participant education, expenses, and plan administration. Applying these prudence requirements to California governmental plans, fiduciaries of 457(b) plans must determine the information that is relevant (or needed) to making a particular decision, gather that information, and evaluate the information – in order to make an “informed” decision. The decision must also be “reasoned,” that is, the decision must bear a rational relationship to the relevant information that was reviewed by the fiduciaries. Once they have engaged in that process, the fiduciaries have a duty to take action to implement their decisions.

The prudent process requirement applies to all fiduciary decisions, including the selection and monitoring of the investments in the plan. This means that fiduciaries of 457(b) plans are required to use generally accepted investment theories and prevailing practices within the investment community when selecting or reviewing the investment options for the plan.

Generally accepted investment theories include concepts such as modern portfolio theory (MPT)

3 and strategic asset allocation. Prevailing investment industry standards include both qualitative and quantitative analysis of the investments. Fortunately, fiduciaries are not required to be experts on those issues, but instead may rely on competent consultants – and may rely most heavily on independent advisors (that is, advisors who are not affiliated with the plan providers and/or who are not compensated through the investments that are “bought” by the plan).

The prudent person standard also requires that fiduciaries consider the circumstances prevailing from time to time. This means that fiduciaries must review their decisions periodically – to monitor the choices they previously made – to ensure that their decisions continue to be appropriate for the purpose of providing retirement benefits for the participants.

Because of the complexity of the investment process and the potential losses if imprudent decisions are made, fiduciaries are well-advised to retain the services of prudent experts (and particularly of independent experts) to assist them in the selection and monitoring of the investments.

4 3. Discussion

3.1 Fiduciary Duties under California Law
Under the Internal Revenue Code, 457(b) plans can be sponsored by governmental entities and by tax-exempt entities.2
ERISA provides a statutory exemption for government plans, including governmental 457(b) plans, from its fiduciary and prohibited transaction provisions.3 As a result, state law governs the fiduciary requirements for the operation and investment of 457(b) plans sponsored by governmental entities.

While ERISA does not regulate the conduct of fiduciaries of government plans, it is the most detailed, comprehensive, and developed body of law concerning the management of retirement plans. As a result, courts often look to ERISA authorities for guidance on fiduciary issues.

Further, the California Constitution and Government Code place duties and obligations on fiduciaries (e.g., retirement boards) that are virtually identical, in both concept and wording, to those in ERISA. Thus, to the extent the state law is not well-developed or particularly informative, this White Paper discusses guidance under ERISA.

Subsections (a), (b) and (c) of Article XVI, §17 of the California Constitution contain the provisions governing the fiduciary duties for the administration of public pension and retirement systems.4
One obvious question is whether 457(b) plans are subject to these provisions. This is answered in Section 53609 of the Government Code, which provides that deferred compensation plans are “public pension or retirement funds” for purposes of Article XVI, §17 of the California Constitution. In particular, Section 53609 provides:
“Notwithstanding the provisions of this chapter or any other provisions of this code, funds held by a local agency pursuant to a written agreement between the agency and employees of the agency to defer a portion of the compensation otherwise receivable by the agency's employees and pursuant to a plan for such deferral as adopted by the governing body of the agency, may be invested

2 IRC §457(e)(1).
3 ERISA §4(b).
4 Section 31476 of the California Government Code provides the definition of retirement system: “‘Retirement system’ means each of the systems created and established pursuant to this chapter [This chapter refers to the County Employees Retirement Law of 1937] or its predecessor. The retirement system for county employees created by Chapter 677 of the Statutes of 1937, as amended, is continued in existence under this chapter.”

5 in the types of investments set forth in Sections 53601 and 53602 of this code, and may additionally be invested in corporate stocks, bonds, and securities, mutual funds, savings and loan accounts, credit union accounts, life insurance policies, annuities, mortgages, deeds of trust, or other security interests in real or personal property. Nothing herein shall be construed to permit any type of investment prohibited by the Constitution.

Deferred compensation funds are public pension or retirement funds for the purposes of Section 17 of Article XVI of the Constitution.” [Emphasis added.]
Thus, if a plan includes deferred compensation funds, section 53609 would apply the requirements of Article XVI, §17 to the fiduciaries of the plan. Since 457(b) plans are deferred compensation plans for state and local governments, 457(b) plans satisfy the definition of public pension and retirement funds for purposes of the California Constitution. This means that the retirement boards, and their members, who are responsible for 457(b) plans (for ease of reference, we refer to retirement boards, committees or other responsible fiduciaries of 457(b) plans as the “board”) are fiduciaries subject to the duties and obligations under Article XVI, §17.

The Constitutional provision describes the following fiduciary duties of public retirement boards:

1. The members of the board have the fiduciary responsibility for the investments of plan assets and administering the plan. The Constitution provides:
“Notwithstanding any other provisions of law or this Constitution to the contrary, the retirement board of a public pension or retirement system shall have plenary authority and fiduciary responsibility for investment of moneys and administration of the system, subject to all of the following:
(a) The retirement board of a public pension or retirement system shall have the sole and exclusive fiduciary
responsibility over the assets of the public pension or retirement system. The retirement board shall also have sole and exclusive responsibility to administer the system in a manner that will assure prompt delivery of benefits and related services to the participants and their beneficiaries.” [Emphasis added.]

6 2. The assets of the plan must be held for the exclusive purpose of providing retirement benefits and defraying reasonable expenses. The duty owed to the participants takes precedence over any other duty. The language of the Constitution states:
“The assets of a public pension or retirement system are trust funds and shall be held for the exclusive purposes of providing benefits to participants in the pension or retirement system and their beneficiaries and defraying reasonable expenses of administering the system.
“(b) The members of the retirement board of a public pension or retirement system shall discharge their duties with respect to the system solely in the interest of, and for the exclusive purposes of providing benefits to, participants and their beneficiaries, minimizing employer contributions thereto, and defraying reasonable expenses of administering the system. A retirement board's duty to its participants and their beneficiaries shall take precedence over any other duty.” [Emphasis added.]

3. The board’s standard of care, as to its fiduciary duty to administer the plan, is the “prudent person” standard. This standard is described as follows:
“(c) The members of the retirement board of a public pension or retirement system shall discharge their duties with respect to the system with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character and with like aims.….” [Emphasis added.]
The duties imposed on the governing bodies of California public sector retirement plans, including 457(b) plans, by the California Constitution are discussed in the following sections of this White Paper.

3.2 The Exclusive Purpose Rule
Subsection (b) of Article XVI, §17 of the California Constitution provides that fiduciaries must act for the exclusive purpose of providing benefits to participants and beneficiaries. This is referred to as the exclusive purpose rule.

7 In 1992, Article XVI, §17 was amended by Proposition 162, which added the last sentence to subsection (b) indicating that a “retirement board’s duty to its participants and their beneficiaries shall take precedence over any other duty.” Prior to the addition of that last sentence, the three duties of providing benefits to participants, defraying reasonable expenses of administration and minimizing employer contributions were of equal importance. The addition of this sentence clarified that the “exclusive purpose” requirement, to provide benefits to members of the retirement system, has priority over a retirement board’s other obligations.

This interpretation echoes the interpretation of the exclusive purpose rule under ERISA. The U.S. Department of Labor (DOL) (the federal agency authorized to interpret and enforce the provisions of ERISA) has explained:
“The Department has construed the requirements that a fiduciary act solely in the interest of, and for the exclusive purpose of providing benefits to, participants and beneficiaries as prohibiting a fiduciary from subordinating the interests of participants and beneficiaries in their retirement income to unrelated objectives.”5
[Emphasis added.]
Consistent with Article XVI, §17 of the California Constitution, the Government Code §53216.6 provides that the assets of a public retirement system are trust funds and should be held for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the pension system. That section reads as follows:
“The assets of the pension trust are trust funds and shall be held for the exclusive purposes of providing benefits to participants in the pension or retirement system and their beneficiaries and defraying reasonable expenses of administering the system.
“The legislative body, trust, or other body authorized to make investments for a pension trust, shall discharge its duties with respect to investing the assets of the pension trust:
“(a) Solely in the interest of, and for the exclusive purposes of providing benefits to, participants and their beneficiaries, minimizing employer contributions thereto, and defraying reasonable expenses of administering the trust.” [Emphasis added.]

5 DOL Interpretive Bulletin 94-1

8 In light of these “exclusive purpose” requirements, every action that fiduciaries (i.e., members of retirement boards) take and every decision that they make must be consistent with that purpose.

Thus, the exclusive purpose rule establishes the fiduciary objective; that is, providing retirement benefits for the participants.

In order to meet this objective when making decisions regarding the plan, such as investment selection, the board must focus on the goal of accumulating retirement savings. As stated earlier, this duty takes precedence over other duties and considerations. For example, a board cannot prioritize other benefits or payments, or the interests of other parties, over the interests of the participants. To do so would be a fiduciary breach. As another example, board members, as fiduciaries, must diligently and rigorously evaluate the plan and investment expenses and pay no more than is reasonably required for the successful operation of the plan. The failure to gather and evaluate the expense information is also a breach of fiduciary responsibilities. As a practical matter, fiduciaries need to obtain information from the marketplace about the expenses charged by 457(b) providers in order to understand and compare expenses.

In the case of 457(b) plans, in which the individual participants direct the investments, although participants can decide which of the offered investments to use, they cannot decide which investments are available; that is the job of the board. Thus, in evaluating investments, the board must select, monitor and dispose of investments for the exclusive purpose of providing retirement benefits. The board’s conduct in fulfilling this objective is measured under the prudent person standard, which requires that the board act with “care, skill, prudence and diligence” and make informed and reasoned decisions, as discussed in the next section.

3.3 Prudent Person Rule
Subsection (c) of Article XVI, §17 of the California Constitution contains the “prudent person” requirement by which the conduct of the board members in fulfilling the exclusive purpose requirement is measured. The prudent person rule in the California Constitution has a number of elements:
• It requires that fiduciaries of 457(b) plans act with “care, skill, prudence, and diligence.”

9 • It requires them to do so in the context of the “circumstances then prevailing.” • It requires that they do so in the same way that “a prudent person acting in a like capacity and familiar with these matters would use.”
• It requires that these steps be taken in connection with the “conduct of an enterprise of a like character and with like aims.”6

Unfortunately, California law is not well-developed in terms of either case law or administrative guidance, regarding fiduciary responsibility issues under the California prudent person standard.

Fortunately, other than a substitution of the word “person” for the word “man,” the language of the prudent person rule under the California Constitution is identical to the prudent man rule under ERISA. Thus, in order to provide meaningful guidance to fiduciaries of 457(b) plans, we are able to refer to DOL guidance and case law interpreting ERISA.

The DOL has described the steps that a fiduciary must take in fulfilling the prudent man rule, with regard to investments, as follows:
“the requirements of the [prudent man rule] are satisfied if the fiduciary (A) has given appropriate consideration to those facts and circumstances that...the fiduciary knows or should know are relevant to the particular investment or investment course of action involved...and (B) has acted accordingly.”7
Thus, the prudent man rule requires fiduciaries to be prudent both substantively and procedurally. As indicated in the DOL regulation, fiduciaries need to determine what information is material and relevant to making a particular decision; they must gather that “relevant” information; they must examine and understand the information; and then they must make an informed and reasoned decision.8
In the context of investments, the fiduciaries must understand generally accepted investment principles and prevailing investment industry practices,9 which form the “backbone” of a prudent process for investment decisions. Therefore, fiduciaries must engage in a process of determining and gathering the data relevant to make an informed decision

6 CA Const. Article XVI, §17(c)
7 DOL Regulation Section 2550.404a-1(b)(1).
8 See, e.g., DOL Reg. §2550.404a-1(b); 29 CFR 2550.404a-1(b). 9 DOL Interpretive Bulletin 96-1

10 and of evaluating that information to make a reasoned decision. Fiduciaries may use competent consultants and advisors to assist them in fulfilling that standard (see Part 3.5 of this White Paper).

Below is a list of factors fiduciaries (such as boards of 457(b) plans) should consider in fulfilling their duty to engage in a prudent process for making decisions:

1. The board must determine which “facts and circumstances” are relevant to making a decision on the issue (e.g., the investments or services to be offered to participants).

2. The board then must gather the relevant information. The collected information must include not only what the board “knows” is significant to the decision, but also what the board “should know” is relevant. The “should know” requirement creates an obligation on the board members to either investigate the issues and facts themselves or to hire an experienced and knowledgeable advisor in order to fully understand the issues and to gather the information that is relevant to the decision.

3. The board must then give “appropriate consideration” to the relevant information.

That is, they must review and evaluate the relevant information in order to make a decision that is informed. As part of this process, they may engage experts to assist them in the analysis, but they must prudently select the experts and evaluate their advice; they may not rely “blindly” on their advisors. However, as a practical matter, if the advisors are well-qualified, then the board may place great weight on their recommendations.

4. The board must then reach a decision on the basis of the analysis they have undertaken and the assessment they have made of the information they have considered and the advice they have received. This is the essence of a “reasoned” decision.

5. Finally, the board must implement that decision.

The steps in this process are orderly and logical. While these steps require that board members take a diligent and disciplined approach to managing the plan, they are not overly burdensome.

Nevertheless, they do require a level of expertise – expertise in selecting investments and services that will produce meaningful retirement benefits in the context of a participant-directed plan, taking into account the unique needs of the employees covered by the plan. Thus, the key to the prudent process is deciding on and gathering the information that a prudent and knowledgeable fiduciary would determine is needed in order to make an informed and reasoned

11 decision. And, where the rules require the collection and analysis of data, boards may substantially reduce that burden by working with competent advisors.

3.3.1 Prudence Regarding Plan Investments
As stated in Article XVI, §17 of the California Constitution, “the retirement board of a public pension or retirement system shall have plenary authority and fiduciary responsibility for investment of moneys and administration of the
system…”[Emphasis added.]
As the highlighted language indicates, boards have the “fiduciary responsibility” for the investment of assets and the administration of the plan. In discharging their duties to invest the assets of the plan, boards must act in accordance with the “exclusive purpose requirement,” which means that a board must prudently manage investments for the exclusive purpose of accumulating retirement benefits for the participants. As explained in a previous section, the prudent person standard requires that the board engage in a prudent process in making decisions.

This prudent process requirement applies to both the selection and monitoring of the investments offered by a plan and for how those investments are actually used by the participants (see, Part

3.5). And, when handling those duties, board members must keep in mind that the decisions, including the investment decisions, must be made with an eye to whether they are effective in terms of producing retirement benefits.

The California Constitution also notes that boards have plenary authority for the investment of plan monies. Courts have been careful to point out that the “plenary authority” granted to boards is not an unchecked power. As one court explained, “Plenary power does not mean unreviewable power.”10 Thus, although boards have plenary authority and fiduciary responsibility over the investments and administration of plans, such duties and obligations are subject to judicial review and oversight.

Based on both legal guidance and our observations of the practices of fiduciaries, the primary investment duties for fiduciaries of participant-directed plans are:

10 Board of Retirement v. Santa Barbara County Grand Jury(1997) 58 Cal.App.4th 1185, 1193; See also, Singh v.

Board of Retirement (1996) 41 Cal.App.4th 1180, 1190.

12 • The development of an investment policy for the plan. • The selection of the investment alternatives to be offered to the participants. • The selection of investment services for the participants. • The selection of a “default” investment.
• The selection of advisors if the fiduciary desires assistance or does not have the relevant expertise.
• The monitoring and, if necessary, the removal of investment options.

Each of those activities is a fiduciary act. As such, each must be done according to the prudent person standard – which means that the board must engage in a prudent process to consider and decide each issue. They must review the right information in the right way and reach a reasoned decision. Or, alternatively, they must seek outside help.

Looking to the ERISA requirements related to investments, fiduciaries are required to use generally accepted investment principles, including modern portfolio theory, and prevailing practices within the investment community to establish a plan’s investment policies and to select the investment options.11 By “generally accepted investment theories,” we are referring to the fundamental principles underlying modern concepts of proper investing. These include modern portfolio theory and strategic asset allocation – looking at an investment portfolio as a whole and taking into account diversification within the portfolio. When this guidance is applied to a board, the members of the board must ensure that the number and types of investments are adequate to allow participants to use those investments to properly balance risk and reward according to their individual needs.

For example, in establishing the plan’s investment policy, the board would need to select investment classes in various equity and debt categories that would permit the creation of welldiversified portfolios at the participant level.

If the board does not have a grasp of these theories and principles, it will be difficult, if not impossible, for its members to prudently select the investments to be offered for participant direction. In those situations the board should consider selecting an advisor, especially since the

11 DOL Interpretive Bulletin 96-1.

13 duties of board members do not end with the selection of the investments. Instead, those duties include an ongoing duty to monitor the investments. This duty to monitor is discussed below.

3.4 The Duty to Monitor
In light of the requirement under the prudent person standard that fiduciaries take into account the “circumstances then prevailing,” boards have an ongoing duty to periodically review the investments and services offered by the plan and to decide whether their initial decisions remain valid in light of changed circumstances. In describing the obligations of fiduciaries, the courts have said that “ERISA fiduciaries must monitor investments with reasonable diligence and dispose of investments which are improper to keep.”12 And again: “Once an investment has been made, a fiduciary has an ongoing duty to monitor investments with reasonable diligence and remove plan assets from an investment that is improper.”13 This means that fiduciaries have a duty to remove specific investments when, under the prudent person standard, they should no longer continue to be available as investment options for participants. It states by the DOL:
“Thus, for example, in the case of look-through investment vehicles, the plan fiduciary has a fiduciary obligation to prudently select such vehicles, as well as a residual fiduciary obligation to periodically evaluate the performance of such vehicles to determine, based on that evaluation, whether the vehicles should continue to be available as participant investment options.”14 This means that it is not enough for the members of the board to act prudently and in the best interests of the participants in the initial selection of investments. They must periodically review their decisions, gather more relevant information and go through a process of monitoring the performance of the selected investments to determine whether to reaffirm or change their original decision.

12 Morrissey v. Curran, 567 F.2d 546, 548-49 (2d Cir. 1977). 13 Harley v. Minnesota Mining and Manufacturing Company, 42 F.Supp.2d 898, 906 (D.Minn. 1999). 14 Preamble to ERISA 404(c) regulation 57 FR 46924 FN.27.

14 3.5 Delegation of Investment Direction to Participants As discussed above, the California Constitution and the Government Code provide that the basic fiduciary responsibility of the board in selecting investments is to engage in a prudent process.

That process includes an appropriate investigation of the investments, prudent selection of the investments that are to be offered to the participating employees, and the selection of advisors to help in the process.

In our experience, 457(b) plans almost universally delegate investment direction to the participants. That is, while the board members, as fiduciaries, select the investment options for the plan, the participants decide which investments to actually use in their accounts. In that regard, the law contemplates that, consistent with modern portfolio theory,15 the participants will select from among the investment options to craft portfolios in their accounts which balance their needs for return with their tolerance for risk.16
The California Government Code recognizes that the board may delegate control over the use of the investments to the participants. However, the Government Code also requires that, for the fiduciaries to avoid liability for potential imprudent investment decisions by the participants, the board must satisfy a number of conditions:
“Notwithstanding any other provision of law, participants choosing individually directed investments shall relieve the trustee and local agency of responsibility under the terms of the plan and trust. That relief shall be conditioned upon the local agency compliance with communication and education requirements similar to those prescribed in subdivision (c) of Section 1104 of Title 29 of the United States Code for private sector employers.”17 [Emphasis added.]
The provision of federal law referred to in that section is also known as ERISA Section 404(c).

Section 404(c) provides that fiduciaries of a retirement plan are relieved of liability for losses that are the direct result of a participant’s exercise of control over his account . . . if certain requirements are met.

15 Laborers Nat. Pension Fund v. Northern Trust Quantitative Advisors, Inc., 173 F.3d 313 (5th Cir 1999). See, also, In re Unisys Sav. Plan, 1997 WL 732473 (ED Pa), Chao v. Moore, 2001 WL 743204 (D Md), and In re Enron Corp.

Securities, 2003 WL 222245394 (SD Tx); DOL Regulation 29 CFR §2509.96-1. 16 DOL Regulation 29 CFR 2550.404c-1(b)(2)(i)(B)(1)(ii). 17 Ca. Govt. Code § 53213.5(b)

15 It is important to note that the relief offered to fiduciaries under Section 404(c) of ERISA is limited, because participant investments in a participant-directed plan are limited to the investment options selected by the plan fiduciary. As the DOL has stated:
“All of the fiduciary provisions of ERISA remain applicable to both the initial designation of investment alternatives and investment managers and the ongoing determination that such alternatives and managers remain suitable and prudent investment alternatives for the plan. Therefore, the particular plan fiduciaries responsible for performing these functions must do so in accordance with ERISA.”18
The DOL has issued a regulation under Section 404(c) (referred to as the 404(c) regulation) discussing the conditions that must be satisfied for the relief from liability granted by that section to be available. In general, the requirements are that the plan provide the participants with an “opportunity to exercise control” and an opportunity to select from a broad range of investment options. There are roughly 20 more detailed requirements in the regulation that must be met in order for fiduciaries to be relieved of liability for losses resulting from participants’ exercise of control over their accounts. In general, the requirements relate to the information that must be provided to participants in order for the participants to make informed investment decisions and the disclosure of restrictions that may be imposed on the participants’ ability to exercise control over their accounts.

In considering the application of the requirements under the section 404(c) regulation to a 457(b) plan, it is important to note that Government Code Section 53213.5 states that the governing body or trustee will be relieved of liability if the plan complies with requirements “similar” to those imposed by ERISA section 404(c). Although it is not entirely clear what is contemplated by the use of “similar,” it appears that substantial compliance with the conditions of the 404(c) regulation would be required.

As a word of warning, our experience is that few boards of California 457(b) plans are aware of this provision. As a result, almost none are complying with the 404(c) conditions. Because of that failure, most boards, and their members, are responsible, as fiduciaries, for the prudence of

18 Preamble to ERISA 404(c) regulation 57 FR 46922.

16 the investment decisions made by the participants. (This is in addition to the responsibility for the selection and monitoring of the investments offered to the participants.) With that in mind, to avoid liability for potential imprudent investment decisions by the participants, boards for California 457(b) plans should comply with the 404(c) requirements with assistance from providers, advisors and benefits lawyers. Additionally, boards should work with their advisors and providers to assist participating employees in prudently investing their accounts, for example, through the use of asset allocation models, age-based lifecycle funds and risk-based lifestyle funds and through investment education advice.

17 4. Best Practices
Although not an exhaustive list, the following is a summary of best practices that boards of 457(b) plans should consider:

Practice No. 1: Hold quarterly or semi-annual meetings with consultants, providers and other advisors (such as benefits attorneys) to review information about the operation and investment activities of the plan and to evaluate methods for improvement. Report to their appointing authority regarding the board’s activities at least once a year.

Practice No. 2: Prudently select the investment options (including the default investment option) to be offered by the plans offered to participants:
• The options should constitute a broad range of
investment categories;
• The options should be prudently selected and monitored (which includes removing and replacing investment
options that are performing poorly); and
• Options should be suitable and appropriate for the
participants.
• The investment considerations and decisions should be based on generally accepted investment theories and
prevailing investment industry practices. Competent
advisors should be engaged to assist in understanding
and applying these principles.

Practice No. 3 Prepare an Investment Policy Statement for the Plan.

Practice No. 4: Establish a process designed to monitor the performance of the investment options in accordance with the criteria and benchmarks set forth in the Investment Policy Statement.

Practice No. 5: Prudently select independent, competent advisors to assist the board.

Once the advisor is selected, monitor the performance of the advisor, and remove and replace the advisor if it fails to perform adequately or properly.

Practice No. 6: Document activities including the process of selecting and monitoring investments, because regardless of the process used, the fiduciary should be able to demonstrate compliance with the legal standards.

18 Practice No. 7: Comply with the requirements under ERISA section 404(c) to obtain relief for the board for liability for losses that are the direct result of a participant’s exercise of control over his account.

19 5. Conclusion
The fiduciary duties imposed on a board with respect to a 457(b) plan of a governmental unit under California law are significant and are similar to the duties and obligations of ERISA fiduciaries. Thus, boards have an obligation to prudently perform their duties for the exclusive purpose of providing retirement benefits to participants and beneficiaries. This obligation encompasses a number of separate tasks, including:
• To act for the exclusive purpose of providing retirement benefits to participants.

This obligation takes precedence over all other duties. • To comply with the law’s prudent person standard when carrying out their duties.

This duty requires board members to engage in a prudent process when making decisions.
• To prudently select and monitor the investment alternatives offered under the plan. This duty requires that the members of the board develop criteria and policies for selecting investments. The chosen investment options should:
constitute a broad range of investment categories; be prudently selected and monitored (which includes removing and replacing investment options that are performing poorly); and be suitable and appropriate for the participants. • To seek help from competent consultants and advisors.

In addition, boards of 457(b) plans should obtain relief similar to that offered under section 404(c) of ERISA as protection from imprudent participant investment decisions. However, that relief is limited to losses that are the direct result of a participant’s exercise of control over his account. Thus, even in those situations, boards remain responsible for the prudent selection and monitoring of the investment options in the plan. Therefore, boards of 457(b) plans should consider adopting practices similar to the “Best Practices” described in this White Paper.

CITY OF TWENTYNINE PALMS

AGREEMENT FOR CONSULTANT SERVICES
THIS AGREEMENT is made and effective as of May 13, 2025, between the City of Twentynine Palms, a municipal corporation ("City") and SageView Advisory Group, LLC, ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. TERM
This Agreement shall commence on May 13, 2025 and shall remain and continue in effect until tasks described herein are completed, or until terminated by either party without cause upon 90 days prior written notice to the other party.

Notwithstanding the above, Section 9 of this Agreement shall survive the term of this Agreement.

2. SERVICES
Consultant shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A.

3. PERFORMANCE
Consultant shall at all times faithfully, competently and to the best of his/her ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. Consultant represents it holds the necessary skills and abilities to perform the work as set forth in this Agreement, and City relies upon the skills and abilities of Consultant. Consultant shall perform the work and services under this Agreement in accordance with such heightened standard of work and in accordance with the accepted standards of the professional disciplines involved in the tasks described herein.

4. CITY MANAGEMENT
The City’s City Manager shall represent the City in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by Consultant, but not including the authority to enlarge the Tasks to Be Performed or change the compensation due to Consultant. The City’s City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Tasks to Be Performed or change Consultant's compensation, subject to Section 5 hereof.

5. PAYMENT
(a) Except as otherwise stated herein, the City agrees to pay Consultant in accordance with the payment rates and terms and the schedule of payment as set forth in section 5 (f) of Exhibit A, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks.
(b) Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. Based on the City’s procurement regulations, only the City Council may authorize additional work in connection with this Agreement. (c) Consultant will submit invoices monthly for actual services performed.

Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Invoices shall include the contract amount, invoice amount to date, and balance remaining.

Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of Consultant's fees it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.
(d) Prior to signing the Agreement, Consultant shall provide to City a completed and signed Form W-9, Request for Taxpayer Identification Number and Certification. All of City’s monetary obligations set forth in this Agreement are conditioned upon City’s receipt of an executed W-9 form from Consultant. (e) Notwithstanding Consultant’s delivery of invoices to City and/or other remedies available to the City, City may retain ten percent (10%) of the payment on each month’s invoice, on a cumulative basis, until Consultant has completed all of the tasks set forth in Exhibit A.
(f) Notwithstanding Consultant’s delivery of invoices to City and/or other remedies available to the City, if Consultant has not delivered to the City the required certified insurance policies and endorsements within the time required by Section 10(f) (3) of this Agreement, City has the sole discretion to withhold any and all payments to Consultant until Consultant delivers to the City the certified insurance policies and endorsements required by Section 10 of this Agreement.

6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ninety (90) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement.
(b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 5.
(c) Except as otherwise provided herein and prior to the termination date of this Agreement, this Agreement may be terminated by written consent of both the City and the Consultant.

7. DEFAULT OF CONSULTANT
(a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. (b) If the City Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default.

The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

8. OWNERSHIP OF DOCUMENTS
(a) Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts there from as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.
(b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files.

9. INDEMNIFICATION

(a) Indemnification

To the fullest extent permitted by law, Consultant shall protect, indemnify, defend and hold harmless City and any and all of its officials, employees, volunteers and agents from and against any and all losses, liabilities, damages, and costs and expenses (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney’s fees and costs, court costs, interest, defense costs, and expert witness fees) where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the actions or failure to act of Consultant, its officers, agents, employees or subcontractors, or any entity or individual that Consultant shall bear the legal liability thereof.

For purposes of this Agreement, a “Licensed Design Professional” shall be limited to licensed architects, licensed landscape architects, registered professional engineers, and licensed professional land surveyors, all as defined by current law, and as may be amended from time to time by California Civil Code § 2782.8. (b) Indemnification Provisions Pertaining To Subcontractors And Others Performing Work.

Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth in this section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required herein, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth herein is binding on successors, assigns or heirs of Consultant and shall survive the termination of this Agreement or this section.

10. INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of the Work, Consultant shall maintain insurance in conformance with the requirements set forth below.

Consultant shall use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Consultant agrees to amend, supplement or endorse the existing coverage to do so.

Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City.

Consultant shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. All Sections of this Agreement and any provision in City's Request for Proposal and Consultant's submitted proposal are subordinate to and superseded by the requirements contained in this Section to the extent that any provision or portion thereof conflicts with or impairs these requirements or any obligation to or right under or pursuant to these insurance requirements. These insurance requirements are intended to be separate and distinct from any other provision in this Agreement and are intended by the parties to be interpreted as such.
(a) Minimum Scope of Insurance. Coverage shall be at least as broad as:

(1) Commercial General Liability Insurance – Written on the Insurance Services Office “Commercial General Liability” policy form CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another.
(2) Business Auto Coverage –Written on the ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each person.

(3) Workers' Compensation/Employer's Liability Insurance - Written on a policy form providing workers' compensation statutory benefits as required by the State of California. Employer's Liability limits shall be no less than one million dollars ($1,000,000) per accident or disease. Employer's Liability coverage shall be scheduled under any umbrella policy described above. Unless otherwise agreed, this policy shall be endorsed to waive any right of subrogation as respects City, its officers, officials, employees, or agents.

(4) Professional Liability or Errors and Omissions Insurance as appropriate to the Consultant’s profession - Written on policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement.

(b) Minimum Limits of Insurance. Consultant shall maintain limits no less than:

(1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
(2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

(3) Errors and Omissions Liability: The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy
retroactive date shall be on or before the effective date of this agreement. Insurance shall continue to be effective to cover all claims made within three (3) years of the completion of the work in the Agreement.
(c) Deductibles and Self-Insured Retention. Consultant agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to selfinsure its obligations to City. If Consultant’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or the Consultant to procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses or other solutions. Any deductibles in excess of ten percent (10%) or self-insured retention must be approved by the City Manager. (d) Other Insurance Provisions. The general liability, business auto liability, and any necessary umbrella liability policies are to contain, or be endorsed to contain, the following provisions:
(1) General liability and umbrella policies shall cover the City, its officers, officials, employees, agents, and volunteers are to be covered as insureds or additional insureds as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees, agents, or volunteers. Endorsements including the additional insured shall be identified on standard ISO endorsement number CG 20 10, attached to an ISO-CGL policy with an edition prior to 1992, or other form as expressly approved by City, and which does not limit the scope of coverage for the additional insured to vicarious liability or to the additional insured's supervision of a given project. In no event shall the Consultant use an additional insured endorsement with an edition date of 1992 or later, absent express written authorization by City. Consultant also agrees to require all contractors and subcontractors to do likewise.

(2) For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respect to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers shall be excess of the Consultant's insurance and shall not contribute with it.
(3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents, or volunteers.
(4) The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability, and there shall be no cross liability exclusions that preclude coverage for suits between Consultant and City or between City and any other insured.

Consultant expressly waives any claim against City for any covered act or event, and Consultant's insurance policy shall not prevent such waiver. The limits of insurance required herein shall in no way limit the liability of the party providing the insurance. In addition, if the coverage or limits available to Consultant exceed that required by this Agreement, and the loss incurred by the additional insured exceeds the amount required by this Agreement, it is the parties' intent that all such additional coverage and limits available will apply irrespective of the specific coverage or limits required herein. (5) No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant’s employees, or agents, from waiving the right of subrogation prior to a loss.

Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. (6) All insurance coverage and limits provided by Consultant and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage.
(7) The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change.

If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City.

(8) For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement.
(9) Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard.
(10) None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
(11) No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.
(12) All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.
(13) The provisions of any workers’ compensation or similar act will not limit the obligations of Consultant under this Agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. (14) Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.

(15) Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements.

There shall be no recourse against City for payment of premiums or other amounts with respect thereto.

(e) Acceptability of Insurers. Insurance is to be placed with insurers authorized and admitted to do business in California and with a current A.M. Best's rating of A or better and a financial size of VII or greater, unless otherwise acceptable to the City.
(f) Verification of Coverage and Notice of Cancellation. (1) Consultant shall immediately furnish to City certificates of insurance or endorsements, satisfactory to City, evidencing the insurance coverage above required prior to the commencement of performance of services hereunder. These certificates or endorsements shall provide that such insurance is the minimum, is in no way limited by any provision herein, and allows for the application of all coverage available to the additional insureds. Further, the certificates or endorsements shall require thirty (30) days written notice to additional insured City prior to any termination, suspension, cancellation, or non-renewal, or the reduction of available coverage, or any change in the terms of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will “endeavor” (as opposed to being required) to comply with the requirements of the certificate.
(2) Consultant agrees that if Consultant commences work under this Agreement without first providing City copies of the required insurance certificates or endorsements, that Consultant does so at its own and sole risk. In the event Consultant's insurance is not acceptable to City or copies of insurance certificates or endorsements are not provided, City shall have no obligations to compensate Consultant for such work unless Consultant possesses a notice to proceed from City for this work.

(3) Within sixty (60) days of the commencement of this Agreement, Consultant shall furnish certified copies of the actual policies and endorsements. Failure to submit such policies shall constitute a material breach of this Agreement entitling City to any and all remedies at law or in equity, including summary termination of this Agreement. If proof of any insurance required under this Agreement is not delivered as required or if such insurance is canceled at any time and no replacement coverage is provided, City shall have the right but not the duty to obtain any insurance it deems necessary to protect its interests under this Agreement, express or implied, in any way relating to City. Any premium for such coverage shall be charged to and promptly paid by Consultant or, at City's option, may be deducted from sums due to Consultant.
(4) In the event of the premature termination of this Agreement for any reason, Consultant agrees to maintain the required insurance coverage until City provides written authorization to terminate the coverage following a review and determination that all liability posed under this Agreement as to the party providing the insurance has been eliminated.
(5) Except as outlined in Section 10(b) (3) above, Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this Agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. (6) Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages.
(g) Notice of Claim or Loss. Consultant agrees to provide immediate notice to City of any claim or loss likely to involve City or its employees or agents which exceeds $2,500 or is likely to exceed that amount arising out of the work performed under this Agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.
.

(h) Sub-Consultant Insurance Requirements. Consultant agrees to require that all parties, including but not limited to sub-Consultants and additional Consultants or professional services with whom Consultant enters into contracts or whom Consultant hires pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required here, at a minimum.

Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. Consultant acknowledges and agrees that upon request, all agreements with sub-Consultants and others engaged in the project contemplated by this Agreement will be submitted to City for review. Consultant agrees and acknowledges that such contracts may require modification as to the insurance requirements necessary to properly protect City.

11. INDEPENDENT CONSULTANT
(a) Consultant is and shall at all times remain as to the City a wholly independent Consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner.
(b) No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.

12. LEGAL RESPONSIBILITIES
The Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section.

13. UNDUE INFLUENCE
Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the City of Twentynine Palms in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City of TWENTYNINE PALMS will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity.

14. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with this Agreement.

15. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
(a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents, or subConsultants, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena.
(b) Consultant shall promptly notify City should Consultant, its officers, employees, agents, or sub-Consultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed hereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

16. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:

To City: City of TWENTYNINE PALMS
6136 Adobe Road
TWENTYNINE PALMS, California 92277
Attention: City Clerk
To Consultant: SageView Advisory Group, LLC
Attention: Jon Upham, President
4000 MacArthur Blvd, Suite 1050
Newport Beach, CA 92660

17. ASSIGNMENT
The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. Because of the personal nature of the services to be rendered pursuant to this Agreement, only SageView Advisory Group, LLC, shall perform the services described in this Agreement.

SageView Advisory Group, LLC, may use assistants, under their direct supervision, to perform some of the services under this Agreement. Consultant shall provide City fourteen (14) days' notice prior to the departure of key team members from Consultant's employ. Should he/she leave Consultant's employ, the City shall have the option to immediately terminate this Agreement, within three (3) days of the close of said notice period. Upon termination of this Agreement, Consultant's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the City Council and the Consultant.

18. LICENSES
At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement.

19. GOVERNING LAW
The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with jurisdiction over the City of TWENTYNINE PALMS.

20. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.

21. SEVERABILITY
The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of the other provisions of this Agreement.

22. NO PRESUMPTION REGARDING DRAFTER OF THIS AGREEMENT
The parties acknowledge and agree that the terms and provisions of this Agreement have been negotiated and discussed between the parties and their attorneys, and this Agreement reflects their mutual agreement regarding the same.

Because of the nature of such negotiations and discussions, it would be inappropriate to deem any party to be the drafter of this Agreement, and therefore, no presumption for or against validity or as to any interpretation hereof, based upon the identity of the drafter shall be applicable in interpreting or enforcing this Agreement.

23. ATTORNEY’S FEES
If any action at law or suit in equity, including an action for declaratory relief, is brought by either party with respect to this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, in addition to any other relief to which it may be entitled, and such amount may be added to, and made a part of, such judgment.

24. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

CITY OF TWENTYNINE PALMS
By:___________________________
Stone James, DPPD, City Manager
Attest:
________________________________
Cindy Villescas, City Clerk
Approved As to Form:
________________________________
A. Patrick Munoz, City Attorney

CONSULTANT
By:___________________________
Jon Upham (Signature)
_Jon Upham____________________
(Typed Name)
Its:_President____________________
(Title)
By:_____________________________
(Signature)
________________________________
(Typed name)
Its:_____________________________
(Title)

EXHIBIT A
CONSULTANT’S PROPOSAL/TASKS TO BE PERFORMED

RETIREMENT PLAN INVESTMENT ADVISORY SERVICES

1 Version: 2023.11.27
Name of Plan: City of Twentynine Palms 457 Retirement Plan Name of Employer: City of Twentynine Palms
Effective Date: February 28, 2025
This Agreement is entered into between SageView Advisory Group, LLC, (“SageView”), having its principal offices at 4000 MacArthur Blvd., Suite 1050, Newport Beach, CA 92660, and the employer named above (“Client”), having its principal place of business at 6136 Adobe Rd, Twentynine Palms, CA 92277.

The Agreement is effective as of the date set forth above, with respect to Services to be provided by SageView for the benefit of the above named plan (the “Plan”) in accordance with the terms and conditions of this Agreement. In the event of any conflict between the provisions contained in the body of this Agreement and in the Schedules, the provisions in the Schedules shall control.

Client sponsors and maintains the Plan, which may or may not be qualified under Section 401(a), 401(k), 403(b), 408, or 457(b) of the Internal Revenue Code of 1986, as amended, and/or subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

1. SERVICES & COMPENSATION
 SERVICES
Client authorizes and engages SageView to render the Plan the Non-Discretionary and/or Discretionary Fiduciary Services described on Schedule A (collectively, “Fiduciary Services”) and/or Non-Fiduciary Services (described on Schedule B the “Non-Fiduciary Services,” and referred to collectively with the Fiduciary Services as the “Services”).
(a) In providing Services, Client acknowledges that SageView has no responsibility to provide any Services hereunder with respect to the following types of assets: employer securities, real estate (but excluding real estate funds and publicly traded REITS), participant loans, non-publicly traded securities or assets (other than Collective Investment Funds or non-publicly traded securities or assets recommended by SageView), other illiquid investments, or brokerage window programs (collectively, “Excluded Assets”). Non-Excluded Assets are “Included Assets”.

Client further acknowledges that SageView shall have no authority or responsibility to provide Services with respect to voting proxies for securities held by the Plan or take other action related to the exercise of shareholder rights regarding such securities.
(b) In performing the Non-Discretionary Fiduciary Services under this Agreement, SageView has agreed to act as a fiduciary and non-discretionary investment adviser of the Plan as provided for in Section 3(21)(A)(ii) of ERISA, and as a registered investment adviser under the Investment Advisers Act of 1940, as amended (“Act”). If Client has engaged SageView to perform the Discretionary Fiduciary Services under this Agreement as shown on Schedule A, SageView has agreed to act as a fiduciary and discretionary investment manager of the Plan as provided for in Sections 3(21)(A)(i) and 3(38) of ERISA, and as a registered investment adviser under the Act. In performing any of the Fiduciary Services, SageView does not act as, nor has SageView agreed to assume the duties of, a trustee of the Plan or as Plan Administrator (as such term is defined under ERISA), and SageView’s discretion, if any, is limited to the functions set forth on Schedule A with respect to investments but no discretion to interpret the RETIREMENT PLAN INVESTMENT ADVISORY SERVICES AGREEMENT – 3(21)

2 Version: 2023.11.27
Plan documents, to determine eligibility or participation under the Plan, or to take any other action with respect to the management, administration or any other aspect of the Plan.

In performing the Non-Fiduciary Services under this Agreement, SageView will not act as a fiduciary.

Further, SageView does not serve as a custodian for the Plan and does not take custody of Plan assets.

SageView will perform the Fiduciary Services described in Schedule A to the Plan in accordance with the standard of care of the prudent man rule set forth in ERISA Section 404(a)(1)(B), provided, however, that nothing in this Agreement shall be deemed to limit any responsibility that SageView may have to Client to the extent such limitation would be inconsistent with applicable laws, including securities laws. (c) SageView shall not, and cannot, provide legal or tax advice to Client or the Plan. Client agrees to seek the advice of its legal counsel as to matters that might arise relating to the operations and administration of the Plan.
(d) Client acknowledges that SageView is entitled to rely upon all information necessary for it to carry out its duties hereunder that is provided by Client, Client’s representatives or Client’s other service providers without independent verification by SageView. Client represents that all such information provided to SageView is and shall be true, correct and complete in all material respects. Client agrees to promptly notify SageView in writing of any material change in the information provided to SageView and to promptly provide any such additional information as may be reasonably requested by SageView.  DISCRETIONARY AUTHORITY
If SageView is acting to provide Discretionary Fiduciary Services, the following shall apply to the discretionary power and authority granted to SageView:
(a) SageView shall have full power and authority to select, monitor, remove and replace the investment options offered under the Plan, consistent with the objectives, written guidelines and/or investment objectives set forth in the written investment policy statement (“IPS”) accepted and adopted by Client.
(b) SageView is not responsible for placing trades or entering orders for securities transactions with respect to Plan assets or for the execution of any such orders. The placing and execution of trades in Plan assets will be the responsibility of the Plan recordkeeper or custodian. SageView may direct the custodian or recordkeeper, as the case may be, to replace an investment option offered under the Plan.  FEES AND EXPENSES
(a) Client authorizes SageView to charge the fees associated with the selected Services described in Schedules A and B as either (i) a percentage of assets or (ii) an annual flat fee, as mutually agreed (the “Fees”). The Plan will be obligated to pay SageView’s Fees unless the Client determines to pay the Fees directly.

Fees paid as a percentage of assets are based on the fair market value of the Included Assets on the last trading day of the quarter to be billed as reported by the Plan custodian, and will be paid quarterly in arrears. Fees paid as an annual flat fee shall be paid quarterly in arrears. Fees may be paid (i) by Client directly, or (ii) paid out of Plan assets pursuant to Client’s written instructions to the Plan recordkeeper or custodian to calculate and remit fees directly to SageView. All Fees shall be prorated for partial quarters or applicable fee calculation periods.

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(b) Client acknowledges that certain mutual funds, investment funds, other investment companies or their distributors which offer investment alternatives under the Plan may from time to time pay fees such as 12b-1 fees, sub-transfer agency fees and/or similar fees to service providers to the Plan. SageView charges and receives only the fees as set forth in this Agreement and does not receive any additional direct or indirect fees or compensation from any mutual fund, investment company, investment fund, fund distributor, or other third party in connection with the performance of the Services.

If SageView receives any other compensation for Services, SageView will disclose the amount of such compensation, the services provided for such compensation and the payer of such compensation to Client in accordance with Section 5 and will offset that compensation against its stated fees. (c) Client agrees to reimburse SageView for all reasonable out of pocket expenses incurred by it in connection with the Services provided hereunder. All expenses must be approved in advance by Client, including legal and travel costs.

2. TERMINATION
This Agreement shall continue until terminated by either party with or without cause upon 90 days prior written notice to the other party. The effective date of the termination will be effective 90 days after written notification is given. In the event of a termination by either party, SageView’s annual compensation will be deemed earned on a pro-rata basis and SageView will be entitled to receive compensation up to the date the termination takes effect. In the event of termination, SageView will use reasonable efforts to assist Client in arranging a smooth transition process to a new investment manager and/or advisor. Upon termination, SageView will have no further obligation under this Agreement to act or advise Client with respect to Services.

3. BOOKS AND RECORDS
Client is entitled to copies of all reports and/or documents relating to its account. SageView will not, however, retain files (other than contracts) for more than seven years. Client shall provide SageView with any information it reasonably requests, and SageView may rely on information received from Client, Client’s representatives or Client’s other service providers without independent verification.

4. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to agreements executed and to be performed entirely within California, without regard to its conflicts of law provisions, except to the extent state law is preempted by federal law.

5. REPRESENTATIONS AND ADDITIONAL COVENANTS
Representations of Client. Client represents and warrants as follows:
(a) It is the “Responsible Plan Fiduciary” (unless another person has been designated as such by Client and is identified on the signature page) with respect to the control and/or management of the assets of the Plan, in accordance with the requirements of ERISA. As such, Client has the power and authority to appoint SageView as an advisor under the terms of the Plan, and to enter into contractual arrangements with third parties to assist in the discharge of these and related duties. (b) The person signing the Agreement on behalf of Client has been delegated all necessary authority to do so.

4 Version: 2023.11.27
(c) The execution of this Agreement and the performance thereof is within the scope of the investment authority authorized by the governing instrument and/or applicable laws. If Client is a corporation, the signatory on behalf of such Client represents that the execution of the Agreement has been duly authorized by appropriate corporate action and agrees to provide such supporting documentation as may be reasonably required by SageView. (d) Client (and the Responsible Plan Fiduciary, if different than the Client) undertake to review and consider the disclosures made by SageView (including in this Agreement and the Form ADV Part 2), in particular the portions related to services, compensation, and potential conflicts of interest, as well as the remainder of the disclosures concerning, among other matters, background information such as educational and business history, business practices such as the types of advisory services provided, the methods of securities analysis used, and the like. Client (and the Responsible Plan Fiduciary, if different than Client) acknowledges receipt of this Agreement, which contains the disclsoures required by ERISA Regulation Section 2550.408b-2(c), including the disclsoure as to SageView’s status as a fiduciary and a registered investment adviser under the Act, and SageView’s Form ADV Part 2 reasonably in advance of entering into this Agreement.
(e) Client acknowledges that investments fluctuate in value and the value of investments when sold may be more or less than when purchased, and that past investment performance does not necessarily guarantee any level of future investment performance. SageView does not guarantee the future performance of the Plan investments or of any Participant account, or any specific level of performance, or the success of any investment decision or strategy that SageView may use, or the overall success of SageView’s management of the Plan.
(f) The Plan and related Trust permit payment of Fees out of Plan assets. Client has determined that the Fees charged by SageView are reasonable and, if paid out of Plan assets, are a proper obligation of the Plan.

Representations of SageView. SageView represents and warrants as follows:
(a) It is registered as an investment adviser under the Act. (b) It has the power and authority to enter into and perform this Agreement, and there are no authorizations, permits, certifications, licenses, filings, registrations, approvals or consents which must be obtained by it from any third party, including any governmental authority, in connection with this Agreement that have not been obtained.
(c) It will disclose to the Client any change to the information in this Agreement required to be disclosed by SageView under ERISA Regulation Section 2550.408b-2(c)(1)(iv) as soon as practicable but no later than sixty (60) days from the date on which SageView is informed of the change (unless such disclosure is precluded due to extraordinary circumstances beyond SageView’s control, in which case the information will be disclosed as soon as practicable). (d) It will disclose within thirty (30) days following receipt of a written request of the Responsible Plan Fiduciary or Plan Administrator (unless such disclosure is precluded due to extraordinary circumstances beyond SageView’s control, in which case the information will be disclosed as soon as practicable) all information related to this Agreement and any compensation or fees received in connection with this Agreement that is required for the Plan to comply with the reporting and disclosure requirements of Title I of ERISA and the regulations, forms and schedules issued thereunder, as required under ERISA Regulation Section 2550.408b-2(c)(1)(vi)(A).

5 Version: 2023.11.27
(e) If SageView makes an unintentional error or omission in disclosing the information required under ERISA Regulation Section 2550.408b-2(c)(1)(iv) or (vi), SageView will disclose to Client the corrected information as soon as practicable but no later than thirty (30) days from the date on which SageView knows of such error or omission.

6. ARBITRATION CLAUSE
To the extent permitted by law, all controversies between Client and SageView, which may arise out of or relate to any of the Services provided by SageView under this Agreement, or the construction, performance or breach of this or any other Agreement between SageView and Client, whether entered into prior to, on or subsequent to the date hereof, shall be settled by binding arbitration in San Bernardino County, California, under the Commercial Arbitration Rules of the American Arbitration Association. Judgment upon any award rendered by the arbitrator(s) shall be final, and may be entered into any court having jurisdiction.

7. MISCELLANEOUS
(a) This Agreement contains the entire understanding of the parties with respect to the subject matter contained herein, superseding all prior agreements, understandings and negotiations with respect to such matters.
(b) This Agreement may be modified or otherwise amended and the observance of any term of this Agreement may be waived, only if such modification, amendment or waiver is (i) in writing and signed by the party agreeing to the modification, or (ii) in the manner set forth in Section 7(c). (c) SageView may propose to increase or otherwise change the Fees charged, or to change the Services provided by giving Client at least sixty (60) days advance notice of the proposed change. The notice shall be given in the manner described in Section 7(g) below. The notice will (1) explain the proposed modification of the Fees or Services; (2) fully disclose any resulting changes in the Fees to be charged as a result of any proposed change in the Services; (3) identify the effective date of the change; (4) explain Client’s right to reject the change or terminate this Agreement; and (5) state that pursuant to the provisions of this Agreement, if Client fails to object to the proposed change(s) before the date on which the change(s) become effective Client will be deemed to have consented to the proposed change(s).

If Client rejects any change to this Agreement proposed by SageView, SageView shall not be authorized to make the proposed change. In that event Client shall have an additional sixty (60) days from the proposed effective date (or such additional time beyond 60 days as may be agreed by SageView) to locate a service provider in place and instead of SageView. If at the end of such additional sixty (60) day period (or such additional time period as agreed by SageView), the parties have not reached agreement on the proposed changes, this Agreement shall automatically terminate. (d) Neither party shall have any liability for any failure or delay in performance of its obligations under this Agreement because of circumstances beyond its reasonable control, including without limitation, acts of God, fires, floods, earthquakes, acts of war or terrorism, civil disturbances, sabotage, accidents, unusually severe weather, governmental actions, power failures, computer/network viruses that are not preventable through generally available retail products, catastrophic hardware failures or attacks on its server.
(e) Nothing in this Agreement shall in any way constitute a waiver or limitation of any rights which the Client or the Plan or any other party may have under ERISA or federal or state securities laws.

6 Version: 2023.11.27
(f) Neither SageView nor Client may assign this Agreement without the consent of the other party; provided, however, that in the event of a change in control or ownership of SageView that would result in an “assignment” of this Agreement under the Advisers Act, SageView will provide written notice to Client, and Client will be deemed to consent to the assignment unless Client notifies SageView otherwise within 30 days from the date of SageView’s notice. (g) Any and all notices, advice, or reports required or permitted under this Agreement shall be in writing and shall be sufficient in all respects if (i) delivered personally, (ii) mailed by registered or certified mail, return receipt requested and postage prepaid, (iii) sent via a nationally recognized overnight courier service, (iv) sent via email, or (v) sent via facsimile.

Electronic Communications: Client expressly agrees to accept electronic communication of any notice, advice, or report in lieu of a printed copy, including applicable disclosure documents and disclosures required under ERISA section 408(b)(2) at the email address listed on the signature page or such other email address as Client may designate in writing to SageView. Client may revoke this consent at any time by providing notice to SageView pursuant to this Section 7(g). (h) Client understands that SageView performs, among other things, retirement plan investment consulting, retirement plan fiduciary consulting, retirement plan design consulting, and portfolio management services for other clients. Client recognizes that SageView may give advice and take action in the performance of its duties for such other clients (including those who may have similar retirement plan arrangements as Client) that may differ from advice given, or in the timing and nature of action taken, with respect to Client. Nothing in this Agreement shall be deemed to impose on SageView any obligation to advise Client with respect to the Plan, including the Services provided by SageView under this Agreement in the same manner as it may advise any of its other clients. Client also acknowledges that SageView may, by reason of its other such activities as described above, from time to time acquire confidential information. Client acknowledges and agrees that SageView is unable to divulge to the Client or any other party, or to act upon, any such confidential information with respect to its performance of this Agreement.

8. INDEMNIFICATION
Each party, to the fullest extent permitted by law, hereby agrees to indemnify and hold the other party harmless from and against any claims, actions, damages, liabilities or obligations of any kind and nature (including, without limitation, reasonable legal fees, costs of court and costs of any investigation or administrative proceeding brought by any governmental agency) ("Liabilities") to the extent that such Liabilities arise from or are in connection with the party's negligence, willful misconduct, bad faith, failure to perform or breach of any of its obligations under this Agreement, ERISA, or other applicable federal or state law. Notwithstanding the foregoing, unless otherwise required by ERISA or other applicable law, in no event shall SageView (i) be liable to Client, (ii) have any obligation to indemnify Client, or (iii) have any liability to any Plan participants, with respect to (A) any general market decline, (B) investment losses directly resulting from either Client's failure to follow SageView 's investment advice, or (C) a Plan participant's claim of breach of fiduciary duty committed by Client or any other Plan fiduciary; provided, however, that nothing in this Section or the Agreement shall be construed to relieve SageView of any liability for its own failure to fulfill its obligations under applicable federal and state law (including ERISA), any breach of its fiduciary duty in performing services contemplated by this Agreement, or for its acts or omissions that are the result of SageView's gross negligence, willful misconduct or bad faith. Each party shall cooperate with the other party in connection with the defense of any matter subject to indemnification hereunder. Additionally Client agrees to indemnify SageView from any claims related to the Client’s decision to use plan revenue sharing to pay plan expenses. Client acknowledges that

7 Version: 2023.11.27
SageView does not have the authority or control over the Client’s decisions as it relates to the use of plan revenue sharing.

9. CONFIDENTIAL INFORMATION
All information and advice furnished by either of the parties to the other will be treated as confidential and will not be disclosed to third parties except as required by law, as required to perform the Services, as described in SageView’s Privacy Notice, or as otherwise mutually agreed upon in writing by SageView and Client. Client acknowledges receipt of SageView’s Privacy Notice.

10. EXECUTION
IN WITNESS WHEREOF, the Parties have hereunto executed this Agreement as of the date first written above.

By: _________________________________________ Date: ______________________ Name: Jon Upham, President
Company: SageView Advisory Group, LLC.

Email: [email protected]
ACCEPTED AND AGREED:

By: _________________________________________ Date: ______________________ Name: Stone James
Client: City of Twentynine Palms
Email: [email protected]
Title: City Manager

8 Version: 2023.11.27
SageView Fees
The services listed on Schedule A and B are included in the below fee unless specifically listed under the respective service being provided.

The Fee shall be an annual fee of 0.30% (30 basis points) of plan assets, invoiced quarterly in arrears, due upon receipt.

SCHEDULE A

FIDUCIARY SERVICES
SageView shall perform the following core Non-Discretionary Fiduciary Services for the Plan.

NON-DISCRETIONARY FIDUCIARY SERVICES
Non-Discretionary Investment Advice Services: SageView ____ Client ____ SageView will provide investment selection, analysis and oversight and make recommendations to Client to select, monitor, remove and replace investment options to be offered to the participants in the Plan.

In performing this service, SageView will not exercise discretionary authority to change the investment options within the platform selected by Client and the Investment Policy Statement (IPS) adopted by the Client. All recommendations must be accepted and implemented by and at the sole discretion of Client.

SageView will also provide a comprehensive semi-annual investment analysis review of all plan investment options, including:
 Market overview addressing the major markets, indices, sectors and the economic statistics that are affecting them.
 An in-depth portfolio summary, including fund and benchmark returns, style analysis and overall portfolio return.
 Analyzing the plan asset allocation by fund and underlying sectors. The fund lineup will also be analyzed to determine the amount of investment overlap that is occurring.  A detailed examination of each investment option within the plan, including performance numbers versus the category and index, manager style drift, risk/return, standard deviation, Sharpe ratio, upside and downside capture, expense ratio and fund allocation.

Fee: included in fee
Investment Policy Services (IPS): SageView ____ Client ____ SageView will gather information regarding the Plan’s investment policies and objectives and provide Client with information to be used in developing a written IPS. Alternatively, if the Plan has an existing IPS, SageView will review the existing IPS and assist Client in determining whether the Plan is performing consistent with the IPS and/or whether the IPS needs to be revised, based on an analysis of the Plan's asset class and risk tolerance guidelines, liquidity requirements, and performance goals. The IPS shall be based on generally accepted investment theories and prevailing industry practices. Client must consider the demographics and needs of its workforce when considering the objectives of the IPS. Client retains sole discretion to accept and adopt the IPS.

Fee: Included in fee

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SCHEDULE B

NON-FIDUCIARY SERVICES
In performing the following additional Non-Fiduciary Services, SageView will not be acting as a fiduciary under ERISA or the Investment Advisers Act of 1940 and will not be held to a fiduciary standard of care.

Strategic Planning: SageView ____ Client ____
SageView will conduct strategic planning sessions to assist Client in reviewing current performance and plan structure (periodic reports), and assist Client in establishing future objectives and strategies for the Plan, but SageView shall not be responsible for whether the plan complies with legal requirements in form or operation. SageView will also identify and assist with vendors and service providers and keep Client informed of all developments in this regard. Client hereby authorizes SageView to assist Client in discussions and transactions with Plan service providers.

Fee: Included in fee
Plan Provider-Administrator Benchmarking/Review: SageView ____ Client ____ SageView will assist Client in designing and conducting a provider-administrator analysis (Request for Proposal—RFP) and manage implementation or conversion of a new service provider. SageView will not render individualized investment advice to the Plan for services rendered hereunder and, thus, will not be held to an ERISA fiduciary standard with respect to such services.

Fee: Optional - $2,500
Plan Fee Benchmarking/Review: SageView ____ Client ____ SageView will conduct a periodic annual review of plan fees and costs charged to the Plan by all service providers to assist Client in discharging its duty to monitoring the reasonableness of fees and costs paid by the Plan. SageView will not render individualized investment advice to the Plan for services rendered hereunder and, thus, will not be held to an ERISA fiduciary standard with respect to such services.

Fee: Included in fee

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SCHEDULE M

MARKETING PERMISSION
City of Twentynine Palms is granting SageView permission the use of its name and logos in SageView marketing materials and information disclosure during the marketing process.

SageView prepares marketing materials to show to potential clients that may include logos of current clients. The use of these names and logos is to show representative clients based on various factors including industry or size. City of Twentynine Palms grants permission to SageView to utilize its logo and name in marketing pieces.

At various times, SageView may receive requests to provide representative client names based on size or particular industry by prospective clients during the marketing and sales process. City of Twentynine Palms agrees to allow SageView to provide its name to SageView prospects when requested to show current SageView clients with similar characteristics.

ACCEPTED AND AGREED:

By: _____________________________________ Date: ______________________ Client: City of Twentynine Palms
Name: Stone James
Email: [email protected]
Title: City Manager

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SageView Advisory Group, LLC

PRIVACY NOTICE
Effective Date: November 2023
Maintaining the trust and confidence of our clients is a high priority at SageView Advisory Group. This Privacy Policy is provided to you on behalf of SageView Advisory Group, LLC, AQ Sage Personnel, LLC, New SIS, LLC, SageView Private Client Group, LLC and SageView Consulting Group, LLC (collectively with SageView Advisory Group, LLC and its affiliates, “SageView”, or “we”, “us” or “our”). This privacy policy (“Privacy Policy”) describes the data collection and privacy practices of our businesses, including in situations in which we provide services directly to individuals and in the context of programs we offer to institutions, such as through a retirement plan sponsor client, and/or directly to clients through our wealth advisory and financial planning services (collectively, the “Services”), and the steps that we take to safeguard that information. and applies to information collected through our websites that link to this policy (the “Websites”) which include: www.sageviewadvisory.com, www.sageviewwealth.com, www.mypersonalsage.com, www.sage411.com, www.usarsp.com, and www.integrityira.com.

If you are a California resident, please see our California Privacy Policy.

Changes to this Privacy Policy: We may change this Privacy Policy at any time. The most recent version of the Privacy Policy is reflected by the Effective Date at the top of this Privacy Policy. All amendments to this Privacy Policy will be effective immediately upon providing notice thereof.

Personal Information We Collect: In connection with providing our Services, we obtain non-public personal information about you, including:
 Information we receive from you or from a third party whom you have authorized to disclose to us information needed to set up your account, such as your name, address, date of birth, Social Security Number, occupation, financial goals, assets and income;  Information about your transactions with us, our affiliates, or others;  Information received from credit or service bureaus or other third parties, such as your credit history or employment status as needed for KYC/CIP background checks; and  Other information we are required to collect by law or regulation in order to provide the Services.

Categories of Personal Information We Disclose: We may disclose any of the categories of personal information listed above that we collect in accordance with this Privacy Policy.

Categories of Parties to Whom We Disclose Personal Information: We will not disclose personal information collected in connection with our Services, except under the following circumstances:
 To entities that perform services for us or function on our behalf, including financial service providers, such as a clearing broker-dealer, plan sponsor, record keeper, investment company, insurance company, or other advisers;
 To consumer reporting agencies;
 To third parties who provide services with client resource management, who assist us with managing your account or who provide marketing, lead generation and other marketing services;
 To your attorney, trustee or anyone else who represents you in a fiduciary capacity or whom you have authorized to take action or receive information about your account;  To our attorneys, accountants or auditors;

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 To government entities or other third parties in response to subpoenas or other legal process as required by law or to comply with regulatory inquiries; and  To our affiliates in order to service accounts, improve Services or for other purposes permissible under applicable law and regulation.

How We Use Personal Information: Personal information may be used by us and the third parties listed above for a number of purposes, such as:
 To protect your accounts/non-public information from unauthorized access or identity theft;  To authenticate identity;
 To process your requests such as securities purchases and sales;  To establish or maintain an account with an unaffiliated third party, such as a clearing brokerdealer providing services to you and/or SageView;  To service your accounts, such as by issuing checks and account statements;  To comply with federal, state, and self-regulatory organization requirements;  To keep you informed about financial services of interest to you.  To conduct marketing activity, such as developing marketing strategies, identifying marketing recipients, creating marketing materials and disseminating communications about our services through email, webinar, direct phone call, mail or text/SMS; and  To monitor activity on our website.

We may also use your personal information for any other reason that we disclose at the time you provide, or when we collect, your information, and other purposes permitted by applicable law.

Limiting Sharing: Federal law gives you the right to limit only: (1) sharing for affiliates’ everyday business purposes – information about your creditworthiness; (2) affiliates from using your information to market to you; and (3) sharing for nonaffiliates to market to you. SageView does not share information with its affiliates, so (1) and (2) above don’t apply to us. To limit our sharing of nonpersonal information to nonaffiliates to market to you, please send an email to [email protected] with your request to opt-out or contact us at (800) 814-8742.

Personal Information Protection: Federal law requires our firm to have an Identity Theft Protection Program (ITPP) that controls reasonably foreseeable risks to customers or to the safety and soundness of our firm from identity theft. We have developed an ITPP to adequately identify and detect potential red-flags to prevent and mitigate identity theft. In addition, we restrict access to nonpublic personal information about you to those individuals who need to know that information to provide products or services to you and perform their respective duties. We maintain physical, electronic, and procedurals security measures that are designed to comply with federal law to safeguard confidential client information.

California Privacy Policy:

This portion of our Privacy Policy (the “California Privacy Policy”) applies exclusively to California residents and provides California residents with certain information under the California Consumer Privacy Act, as amended by the California Privacy Rights Act (collectively, the “CCPA”). As a financial services organization, much of the information we collect is exempt from the CCPA because it is covered by a federal or state financial privacy laws, such as the Gramm-Leach-Bliley Act and the Fair Credit Reporting Act.

Categories of Personal Information Collected: SageView may collect the following categories of personal information from you:

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 Identifiers, such as name, address, online identifier, IP address, email address, account name, social security number, or other similar identifiers;
 Additional personal information, such as telephone number and financial information;  Internet or other electronic activity information, such as browsing history and information regarding your interaction with an internet website applicable or advertisement; and  Professional or employment information.

Categories of Sources of Personal Information: SageView may have collected the categories of personal information listed above either directly from you, from your devices, from our third-party service providers, or from data brokers.

Business or Commercial Purposes for Collecting Personal Information: SageView may have collected the categories of personal information listed above for any of the business or commercial purposes listed in the “How We Use Personal Information” section of this Privacy Policy. “Sale” or “Sharing” of Personal Information: SageView does not “sell” or “share” (as such terms are defined under the CCPA) your personal information. Accordingly, we have not “sold” or “shared” your personal information to third parties, and we do not have actual knowledge that we “sell” or “share” the personal information of consumers under the age of 16.

Personal Information Retention: SageView will only keep your personal information for so long as it is necessary for the purposes set out in this Privacy Policy, unless a longer retention period is permitted or required by law (such as tax, accounting, investment advisor, ERISA or other legal requirements).

Categories of Personal Information Disclosed to Third Parties: SageView may have disclosed the categories of personal information listed above to the third parties listed in the “Categories of Whom We Disclose Personal Information” section above in this Privacy Policy for the business or commercial purposes” listed in the “How We Use Personal Information” section above in this Privacy Policy.

CCPA Rights: To the extent that we collect personal information that is subject to the CCPA, your rights as a California resident under the CCPA are described below.  Right to Know: If you are a California resident, you have the right to know the categories of personal information collected about you, the categories of sources of that information, the business or commercial purposes for which we collect it, the categories of third parties with whom we disclose it, and the specific pieces of Personal Information we have collected about you.
 Right to Delete: If you are a California resident, and subject to certain exemptions, you have the right to request that we delete any personal information that we have collected from you.  Right to Correct: If you are a California resident, you have the right to correct personal information that we maintain about you.
 Right Not to Receive Discriminatory Treatment: If you are a California resident, you have the right not to receive discriminatory treatment for the exercise of your privacy rights under this section of our Privacy Policy.

SageView does not use or disclose “sensitive personal information” (as defined under the CCPA) of California residents outside of the following purposes: (1) performing our service or providing goods; (2) detecting security incidents; (3) resisting malicious, deceptive, fraudulent, or illegal actions; (4) ensuring physical safety; (5) for short-term transient use, including certain non-personalized advertising; (6) maintaining or servicing accounts, providing customer service, verifying customer information, or

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providing similar services; and (7) verifying and maintaining the quality or safety of a service or product to improve, upgrade, or enhance a service or product. Accordingly, we do not provide the right to limit the use or disclosure of your sensitive personal information under the CCPA.

How to Submit a Request: You may submit a request to exercise your California privacy rights by contacting us at (800) 814-8742, or by completing the form located here. You may also authorize an agent to make such a request by contacting us through our form, disclosing that they are your “authorized agent” and providing your last and first name in connection with the request. Before we can honor your requests, we may confirm that you or your authorized agent are the requesting party. In addition, depending on the type of request and the categories of the information subject to the request, we may request verifying information from the requesting party, such as identifiers already known to or collected by us.

Questions: If you have any questions concerning this Privacy Policy, please contact us at: SageView Advisory Group, LLC, 4000 MacArthur Blvd., Suite 1050, Newport Beach, CA 92660; (800) 814-8742.

SageView Advisory Group
457 Plan & Investment Basics
Javier Obando, Retirement Plan Consultant

MEETING
AGENDA
1 Who is SageView Advisory?
2 Plan Enhancements?
3 Review Investment and
Investment Strategies
4 What are my investment options?

5 Accessing your account
SageView Advisory Group SEE WHERE YOU’RE GOING
$202B
AUA + AUM
270
Employees
2,300+
Retirement Plans
20-Member
Investment Committee
30+
Office Locations
SageView Snapshot
Atlanta, GA
Austin, TX
Bloomfield Hills, MI
Boston, MA
Chicago, IL
Cleveland, OH
Dallas, TX
Denver, CO
Fort Wayne, IN
Honolulu, HI
Richmond, VA
San Diego, CA
San Jose, CA
Seattle, WA
Syracuse, NY
Houston, TX
Kansas City, MO
Knoxville, TN
Los Angeles, CA
Milwaukee, WI
Minneapolis, MN (2)
Newport Beach, CA
Omaha, NE
Phoenix, AZ
Portland, OR
Valencia, CA
Washington, DC
West Palm Beach, FL
Westlake Village, CA
Woodside, CA
3 Page 98 of 168
SageView Advisory Group SEE WHERE YOU’RE GOING
4 SEE WHERE YOU’RE GOING
Your Primary SageView Team
4 Christina Pao

CPFA, NQPA
Sr. Advisory Services Associate
Chris Donnelly
QFPC®
Vendor Oversight
and Bench Marking
Jonathan St.Clair
JD
Chief Fiduciary Officer
Sharina Merid
JD
Director of Compliance
Jaime McCrary
Managing Director
Javier Obando
Retirement Plan Consultant
Additional Support from National Resources

SageView Advisory Group SEE WHERE YOU’RE GOING
Relevant Experience: A Snapshot of Our Tax-Exempt Clients 5 Page 100 of 168
6 Understanding
Your 457 Plan

7 Enhancements
City of Twentynine Palms 457 Plans
Scope of Services:
» Reduction in fee
» Investment Review
» Best in class funds
» Enhanced Education
» New Retirement Specialist
» In-Person
» Virtual
» Ongoing Support

SageView Advisory Group SEE WHERE YOU’RE GOING
457
• Nationwide
• Recordkeeping 0.70%, 0.80%, 0.95% (Avg 0.82%)
• Weighted Expense Average – 0.73%
• CalPERS
• Recordkeeping and Weighted Expense 0.22% - 0.26%
A Glimpse Into Your Retirement Program - Fees
8 Page 103 of 168
SageView Advisory Group SEE WHERE YOU’RE GOING
9 Fee Benchmark Proposal

SageView Advisory Group SEE WHERE YOU’RE GOING
Client City RFP Results
10 Page 105 of 168
SageView Advisory Group SEE WHERE YOU’RE GOING
457
• Single Vendor
• 0.20% - 0.30% Recordkeeping Fee
• 0.25% – 0.40% Operating Expense
A Glimpse Into Your Retirement Program – Single Vendor Fees 11 Page 106 of 168
SageView Advisory Group SEE WHERE YOU’RE GOING
A Glimpse Into Your Retirement Program – Single Vendor Fees 12 Page 107 of 168
13 Things to Consider – How should I invest?
Do-It-Yourself
Select and monitor
mutual funds from the
core investment menu
The 457 Plan offers three ways to invest
Target Date Fund
Select the mutual
fund that aligns
with your desired
retirement date
Managed Account
Professionally
managed for you

14 What Type of Investor Are You?
CONSERVATIVE investors generally: are most comfortable with stability of principal, willing to forgo potential higher returns for less volatility.

MODERATE investors generally: are most comfortable with small fluctuations in principal, seek slightly higher returns at the risk of principal; and do not worry about everyday market returns.

GROWTH investors generally: are most comfortable with larger fluctuations in principal, seek top performance and recognize the need to accept risk to get there, take a long-term perspective on investing,

15 DIY: Core Investment Options

16 Putting money in Taking money out
Years before retirement Years in retirement
Simplest solution: Target Date Funds
Equity %
Fixed Income %
The Retirement Journey

17 Asset Allocation Funds: Target Date Funds
• A single investment option that allows investors to hold a mix of asset classes • Rebalances periodically and shifts allocations over time • Invests more aggressively in the decades before retirement and shifts to a more conservative asset mix in the years immediately preceding retirement. This shift in assets is called the “glide path.” Takes you THROUGH retirement! 2015, 2020, 2025
Less aggressive, closer to
retirement
2030, 2035, 2040…
More aggressive, farther
away from retirement
17 Less stock, more bonds More stocks, less bonds

SageView Advisory Group SEE WHERE YOU’RE GOING
Our Team Supports You with Best-in-Class Deliverables
18 INVESTMENTS
Investment Selection and Monitoring
• 20-member internal Investment Committee
• Fund watch list due diligence
• Proprietary Target Date Fund Decision Guide
• Custom portfolio solutions
• IPS and fiduciary file

PLAN SPONSOR SUPPORT
Client and Provider Management
• Dedicated client service team
• Plan benchmarking resources
• Provider search and contract review
• More than 100 RFPs annually
• Plan cost management

COMPLIANCE CONSULTING
Plan Compliance, Operations and Records Management
• Committee Charter
• Compliance evaluation
• Fiduciary process review
• On-demand fiduciary training
• Administrative procedural review
• Audit support

EMPLOYEE EDUCATION
Participant Education
• Participant transition education
• National education team with a dedicated local consultant • Comprehensive educational programs
• One-on-one participant support
• Annual planning and reporting

19 Thank You!

STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: May 13 2025
SUBJECT: Presentation of the Preliminary Two-Year General Fund Budget for Fiscal Year 2025-26 & 2026-

27. RECOMMENDATION:

Staff is presenting the preliminary two-year General Fund Budget for Fiscal Year 2025-26 & 2026-27 for initial City Council review and direction.

ORDER OF PROCEDURE:

Request Staff Report (Finance Director Presenting)
Council Questions of Staff
Request Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Preliminary Two-Year Budget
Worksheets - GF
• Preliminary Two-Year Budget
Presentation - GF
BACKGROUND:

The City Manager and Finance Director are presenting this preliminary two-year General Fund Budget for Fiscal Year 2025-26 & 2026-27 (henceforth FY 25-26 & FY 26-27) for initial City Council review and direction. The preliminary Special Funds Budget will be presented to the City Council on May 27th for review. A Public Hearing will be scheduled on May 27th for the adoption of the General Fund budget. The City Council is required to approve the City's biannual budgets before the beginning of the new Fiscal Year which begins July 1, 2025. This preliminary budget was developed by utilizing historical spending by department, with input and review by the department heads, direction from the City Council during Strategic Planning, and the City Council budget committee (Mayor Bilderain and Council Member Ramirez). The City’s revenue was developed with input from San Bernardino County (Property Tax), HDL (Sales Tax), and local trends (Transient Occupancy Tax – TOT).

TOT trends are the most difficult to predict, primarily due to the current economic uncertainty. The presented preliminary two-year budget is a balanced budget.

Operating Revenues:

Overall, this is a cumulative balanced two-year budget for Fiscal Year 25-26 & 26-27 with revenues, excluding transfers in and use of reserves, of $14.8M and $15.4M, respectively. The City's top five revenue sources include 1) Property Tax in lieu of Vehicle License Fee (VLF) - $4.7M and $5.1M in FY 25-26 & 26-27, respectively; 2) Property Taxes - $3.4M and $3.6M in FY 25-26 & 26-27, respectively; 3) Transient Occupancy Tax (TOT) - $1.9M in each fiscal year; 4) Sales Tax - $1.6M in each fiscal year; and 5) Planning, Business License Fees & Building Permit Fees - $975K and $985K, in FY 25-26 & 26-27, respectively.

Operating Expenditures:

Operating expenditures, excluding transfers out, are presented at $14.4M and $15.2M for 25-26 and 26- 27, respectively. The City's top operating expenditures include the Sheriff's contract and salaries and benefits. For FY 25-26, law enforcement costs represent approximately 41.9% of the City's total operating expenditures, and Salaries & Benefits represent 29.4% of total operating expenditures.

Employee-related costs are projected to increase by $219K and $249K for FY 25-26 and FY 26-27, respectively. Salary and Benefit changes are mainly due to COLA increases (2.5% and 3.0% for FY 25- 26 and 26-27, respectively), merit increases, employee reclassifications, longevity pay, and projected increases in health insurance and pension costs. The proposed Sheriff's contract decreased by 0.6%, or $32,626. However, the Sheriff's department is currently undergoing labor negotiations with the County's various employee organizations/unions, and the proposed contract amount is expected to increase in the second half of FY 25-26. The fiscal impact is difficult to assess at this time; however, for planning purposes, the budget for FY 25-26 includes a projected increase of $109K in the Sheriff's contract.

Furthermore, the City is considering requesting the addition of a Sheriff Service Specialist position to support deputies with various administrative tasks; however, due to the unknown fiscal impact of the undergoing labor negotiations, the request will have to be put on hold until an informed decision can be made. The projected fiscal impact for adding a Sheriff Service Specialist is approximately $108K per year, which includes the position on a full-time basis, one (1) truck and one (1) Handheld Transceiver (HT) for the specialist. If the Sheriff Service Specialist and related costs were to be added to the budget, the surplus for FY 25-26 would decrease from $213K to $105K, approximately. For FY 26-27, the addition of the Service Specialist would actually result in a deficit of approximately $36K.

Some of the major discretionary expenditures in the two-year budget include the additional prefunding of the City's pension liability - $50K in each fiscal year; $50K for community events in each fiscal year, exclusive of other events managed by the City such as 4th of July, JT55, Pioneer Days, Movies in the Park, Juneteenth event, and Veterans' Day; Contributions to Non-Profits - $50K in each fiscal year; Housing/Homelessness program - $25K each fiscal year; grant writing services - $25K each fiscal year, $16K for crisis communication services for FY 25-26, and $15K for the City's 40 year anniversary.

The latest CalPERS actuarial valuation indicates that the City's pension funded ratio is 88.4%; however, this ratio is expected to decrease as the City's pension liability is expected to increase significantly over the next five years. The City's current funded ratio of 88.4% is considered excellent and above the average funded ratio. However, in light of projected increases in the City's pension obligations, the City should consider making additional employer pension prepayments to reduce large fluctuations in future employer contributions. As mentioned above, the two-year budget includes $50K in each fiscal year for such prepayments.

Transfers In/Out:

Transfers in for FY 25-26 and FY 26-27 are $46K and $47K, respectively. The transfers are intended to fund a portion of the administrative costs associated with managing the following funds: Measure I, Gas Tax, and Successor Agency. As of the date of this report, the City Council's strategic priorities have not been clearly defined; as such, the preliminary two-year budget does not include any transfers out other than the annual transfers, which include $160K for self-funding of the Capital Projects Fund, $20K-$25K to be put aside for the acquisition of a street sweeper, and $70K to the Sewer fund to subsidize sewer operation costs.

Reserves:

The unrestricted and unassigned reserve balance for the General Fund as of June 30, 2024 is $11.1M or 79% of actual operating expenditures, which is in line with the City's current reserve policy of 50-55%.

Staff is projecting a surplus of $91.6K for FY 2024-25, and an unassigned fund balance of $11.0M, which equates to 80% of the City's total operating expenditures, a ratio that is in line with the City's reserve policy. Based on a General Fund Reserve assessment conducted in 2018 by hired Consultant, William C. Statler, the City needs to maintain reserves at 25% of operating and debt service expenditures just to meet cash flows during the year. To provide appropriate flexibility in addressing economic uncertainties, such as downturns in the economy; responding to local disasters; contingencies

for unforeseen operating or capital needs, the City Council adopted a reserve policy of 50-55% of operating and debt service expenditures, which is segregated into the following components:

1.Cash Flows: 25%

2.Fiscal Stability: 15%

3.Contingencies/Strategic Opportunities: 15%
Assuming $14.4M in operating expenditures for FY 25-26, the City can use up to $3.3M in reserves before reaching the 55% threshold.

Staff is recommending using FY 2024-25 as the baseline for the two-year budget, which includes maintaining all programs at current levels and accounting for other changes as follows:
 COLA at 2.5% in FY 25-26 and 3.0% in FY 26-27.
 Staff development and training continue to be a priority for the City Council and City Manager, as such the two-year budget includes $87K annually for trainings and meetings, including $12.5K for Staff Education reimbursement programs in each fiscal year.
 Maintained the historical legal costs of $118K annually; however, if legal issues arise, legal costs could increase, as was the case in FY 20-21 with the FP5 challenge and the Wastewater issues in FY 22-23.  The City has filed its last and final ROPS with the County. The County approved the City's request of $25K, adjusted for inflation of 4% each year, for Successor Agency administrative costs and allowance effective FY 2024-25 through FY 4042-43. The admin allowance for FY 25-26 and FY 26-27 will be $26K and $27K, respectively.
 Pension Unfunded Accrued Liability (UAL) Contributions are projected to increase by 111% and 25% in FY 25-26 and FY 26-27, respectively.
 Liability and property insurance costs are also projected to increase between 20% and 22% each fiscal year.
 The Sheriff's contract is projected to increase in the second half of FY 25-26 due to current labor negotiations. The budget for FY 25-26 includes a 4% increase in the Sheriff's contract, but only for half of the year. FY 26-27 includes a 5% increase in the Sheriff's contract.  Maintained contributions to non-profits at $50K each fiscal year.  Maintained community event contributions at $50K each fiscal year.  Reduced funding for Housing/Homeless programs to $25K in each fiscal year.  Increased utility costs by 5% per year to be in line with historical trends.  $25K for Emergency Response Plan.
 $25K for annual Grant Writing Services.
 $14K for TOT audits of both Hotels and VHRs (on a sample basis only) in FY 25-26.  $16K for crisis communication services in FY 25-26.

ENVIRONMENTAL:

Not Applicable.

ALTERNATIVES:

The City Council could choose to make policy changes on funding.

FISCAL IMPACT:

A balanced preliminary two-year budget.

Approved
2/25/2025
2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY
ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
Total Revenue and Transfers In 16,988,823 $ 14,901,267 $ 10,813,428 $ 14,681,790 $ 14,898,582 $ 15,503,134 $ Total Expenditures and Transfers Out 16,009,631 $ 14,475,029 $ 10,442,628 $ 14,590,233 $ 14,685,218 $ 15,426,247 $ Net Revenue (Loss) 979,192 $ 426,238 $ 370,800 $ 91,557 $ 213,364 $ 76,887 $ Fund Balance Classification
Nonspendable 93,963 $ 93,963 $ 93,963 $ 93,963 $ $ 93,963 $ 93,963 Restricted $ 431,729 406,426 $ 588,656 $ 517,659 $ 466,423 $ 466,423 $ Assigned 2,011,441 $ 396,982 $ 196,972 $ 150,000 $ 150,000 $ 150,000 $ Unassigned 9,098,342 $ 11,103,632 $ 11,517,515 $ 10,999,231 $ 11,233,321 $ 11,310,208 $ Total Fund Balance 11,610,172 12,026,306 $ 12,397,106 $ 11,760,853 $ 11,943,707 $ 12,020,594 $ Total Operating Expenditures (1) $ 11,564,720 $ 14,002,893 $ 10,270,128 $ 13,833,773 $ 14,430,261 $ 15,175,398 Reserves (%) (2) 79% 79% 80% 78% 75%
City's Reserve Policy 50-55% 50-55% 50-55% 50-55% 50-55% (1) Exclusive of Transfers Out
(2) Operating Reserves = Unassigned Fund Balance/Total Operating Expenditures FISCAL YEAR 2025-2026
AND FISCAL YEAR 2026-2027

CITY OF TWENTYNINE PALMS

GENERAL FUND BUDGET

SUMMARY
1 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE R E V E N U E ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 0000 4101 Property Taxes: Current and Prior Year 2,715,614 $ 3,092,764 $ 2,917,140 $ 3,216,475 3,377,299 3,579,937 01 0000 4106 Property Tax / VLF 3,794,419 $ 4,250,176 $ 2,249,244 $ 4,498,486 4,723,410 5,054,049 01 0000 4110 Property Transfer Fees 76,031 $ 61,222 $ 5,667 $ 56,925 59,771 62,760 01 0000 4115 Utility Unitary Tax 155,668 $ 177,984 $ 104,749 $ 155,250 159,908 164,705 01 0000 4120 Sales & Use Tax 1,562,276 $ 1,538,338 $ 1,114,391 $ 1,549,505 1,553,459 1,596,939 01 0000 4125 Transient Occupancy Tax 2,346,125 $ 2,237,285 $ 1,649,008 $ 1,900,000 1,900,000 1,900,000 01 0000 4140 Franchise Fees 930,375 $ 969,861 $ 740,331 $ 964,624 911,325 926,534 01 0000 4145 Business License Fees 69,387 $ 74,185 $ 65,146 $ 65,000 70,000 70,000 01 0000 4155 Motor Vehicle In-Lieu Tax 28,378 $ 32,518 $ 44,584 $ 29,120 30,576 32,105 01 0000 4200 Animal Control Revenue 81,486 $ 98,533 $ 59,480 $ 84,000 85,000 85,000 01 0000 4220 Planning & Engineering Fees 282,413 $ 201,542 $ 233,175 $ 190,000 195,000 195,000 01 0000 4224 Building & Road Permits 710,752 $ 561,818 $ 444,170 $ 550,000 710,000 720,000 01 0000 4245 Interest 288,409 $ 359,440 $ 338,983 $ 150,000 180,000 180,000 01 0000 4252 Grant Revenue 41,540 $ 2,400 $ 75,200 $ 85,200 50,000 50,000 01 0000 4272 Rent 72,418 $ 71,564 $ $ 62,824 65,000 65,000 70,000 01 0000 4288 Burrtec/Street Sweeper $ 100,000 $ 120,000 $ 100,000 120,000 120,000 120,000 01 0000 4603 Swimming Pool $ 19,528 $ 40,664 $ 21,490 25,500 25,500 25,500 01 0000 4605 Recreation Fees $ 107,001 $ 116,169 $ 82,636 91,237 100,000 110,000 01 0000 4608 Park & Rec Event Fees $ 73,914 $ 54,144 $ 52,707 50,000 50,000 50,000 01 0000 4610 Project Phoenix Community Center $ - $ 7,122 $ 6,184 5,000 5,000 5,000 01 0000 4611 EV Charging Fees $ 24,287 $ 33,668 $ 27,711 25,000 26,000 28,000 01 0000 4702 Police Grants $ 165,306 $ 186,305 $ 194,820 180,000 180,000 180,000 01 0000 4703 SRO Contract $ 88,217 $ 118,403 $ 118,181 118,181 114,824 120,565 01 0000 4890 Miscellaneous $ 151,577 $ 127,634 $ 65,321 85,000 110,000 110,000 01 0000 4911 Fair Market Value Adjustment $ (189,774) $ 249,923 $ - - - - 01 0000 4XXXReserves/COPS Deferred Rev $ - $ - $ - 357,010 30,510 - TOTAL REVENUE $ 13,695,347 $ 14,783,662 $ 10,773,142 $ 14,616,513 $ 14,832,582 $ 15,436,094 TRANSFER IN:
01 0000 4316 Admin Fees $ 132,273 $ 107,500 $ 40,277 $ 45,277 $ 46,000 $ 47,040 01 0000 4316 ARPA Revenue Loss Transfer $ 3,118,608 $ - $ - $ - $ - $ - TOTAL TRANSFER IN $ 3,250,881 $ 107,500 $ 40,277 $ 45,277 $ 46,000 $ 47,040

TOTAL REVENUE AND
TRANSFERS IN $ 16,946,228 $ 14,891,162 $ 10,813,419 $ 14,661,790 $ 14,878,582 $ 15,483,134

GENERAL FUND REVENUE BUDGET
All revenue that is not designated to go to another fund is General Fund revenue. This revenue is used to pay for the 2 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE DEPARTMENT ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 0101 City Council 61,329 $ 59,426 $ 47,406 $ 65,112 $ 80,206 99,691 01 0102 City Administration 552,109 $ 518,961 $ 483,856 $ 582,078 $ 586,357 590,266 01 0103 City Attorney 111,185 $ 135,902 $ 83,036 $ 118,000 $ 118,000 118,000 01 0104 City Hall 175,774 $ 224,099 $ 163,018 $ 247,585 $ 240,126 243,936 01 0105 Finance 276,914 $ 288,316 $ 326,353 $ 397,807 $ 412,765 443,206 01 0106 City Clerk 162,067 $ 196,829 $ 185,528 $ 234,007 $ 269,334 288,483 01 0107 Nondepartmental 5,456,278 $ 2,941,204 $ 1,055,311 $ 1,957,311 $ 1,634,941 1,752,586 01 0108 Successor Administration 115,021 $ 114,251 $ 32,454 $ 34,141 $ 38,007 40,101 01 0109 IT Department 280,446 $ 243,775 $ 225,174 $ 301,002 $ 299,351 309,142 01 1010 Community Development 622,684 $ 570,257 $ 468,152 $ 670,688 $ 567,468 586,687 01 1011 Code Enforcement 240,369 $ 259,355 $ 221,835 $ 282,745 $ 321,160 302,580 01 1012 Building, Safety & Eng. 607,115 $ 482,635 $ 328,363 $ 486,850 $ 593,570 600,240 01 1013 Economic Development 11,893 $ 1,847 $ 2,726 $ 11,000 $ 9,000 4,000 01 2021 Law Enforcement 4,996,955 $ 5,726,529 $ 4,295,997 $ 5,958,273 $ 6,048,167 6,440,515 01 2022 Animal Control $ 497,940 $ 561,335 $ 496,553 $ 630,607 683,142 715,715 01 3031 Community Services $ 197,701 $ 248,353 $ 227,573 $ 278,774 297,762 313,021 01 3032 Recreation Department $ 401,321 $ 475,192 $ 387,857 $ 515,273 553,814 574,222 01 3033 Luckie Park Pool $ 48,783 $ 109,518 $ 90,710 $ 124,770 145,393 152,583 01 3034 Senior Center $ 50,871 $ 53,074 $ 42,950 $ 58,679 61,981 63,455 01 3035 Community Events $ 167,384 $ 211,815 $ 193,266 $ 249,033 271,445 289,114 01 3036 Patriotic Hall $ 9,949 $ 10,146 $ 14,081 $ 20,475 19,250 19,828 01 3037 Luckie Park Activity Center $ 6,565 $ 7,453 $ 7,529 $ 13,545 13,573 13,907 01 3038 Project Phoenix Community Center $ 152,554 $ 132,428 $ 187,913 $ 231,034 226,849 231,636 01 4041 Public Works Administration $ 117,051 $ 206,521 $ 303,267 $ 373,463 399,839 415,637 01 4042 Public Works Street Sweeping $ 116,640 $ 120,000 $ 89,408 $ 120,000 120,000 120,000 01 4045 Parks Maintenance $ 530,138 $ 565,703 $ 482,303 $ 607,981 653,718 677,696 35 0107 Risk Management $ 42,595 $ 10,105 $ 9 $ 20,000 20,000 20,000 TOTAL EXPENDITURES $ 16,009,631 14,475,029 10,442,628 $ 14,590,233 14,685,218 15,426,247

GENERAL FUND EXPENDITURE SUMMARY
General or operating expenditures provide basic services throughout the City and are charged to the General Fund. 3 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 0101 Expenditures
01 0101 5110 Salaries 29,258 $ 28,793 $ 24,310 $ 30,225 $ 44,775 $ 61,750 $ 01 0101 5250 Insurance 14,440 $ 14,913 $ 12,196 $ 15,422 $ 14,399 $ 14,645 $ 01 0101 5251 Retirement 2,770 $ 2,975 $ 2,089 $ 3,256 $ 4,241 $ 5,826 $ 01 0101 5252 Workers Comp 776 $ 704 $ 949 $ 1,209 $ 1,791 $ 2,470 $ 01 0101 6251 Training & Meetings 14,085 $ 12,041 $ 7,862 $ 15,000 $ 15,000 $ 15,000 $ TOTAL EXPENDITURES 61,329 $ 59,426 $ 47,406 $ 65,112 $ 80,206 $ 99,691 $

CITY COUNCIL
The City Council is the Legislative body that governs the City and is made up of five elected members who meet regularly on the second and fourth Tuesday of each month.
4 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 0102 Expenditures
01 0102 5110 Salaries 372,304 $ 371,164 $ 354,636 $ 415,426 $ 401,007 $ 411,459 $ 01 0102 5235 Vehicle/Cell Allowance 5,763 $ 3,304 $ 6,397 $ 7,560 $ 7,560 $ 7,560 $ 01 0102 5250 Insurance 45,617 $ 34,974 $ 40,969 $ 49,813 $ 50,663 $ 52,483 $ 01 0102 5251 Retirement 40,069 $ 34,888 $ 34,020 $ 40,922 $ 40,347 $ 41,566 $ 01 0102 5252 Workers Comp 11,119 $ 10,420 $ 15,103 $ 16,617 $ 16,040 $ 16,458 $ 01 0102 5253 Paid Time Off 16,078 $ 31,993 $ 15,482 $ 15,000 $ 25,000 $ 25,000 $ 01 0102 6221 Telephone - $ 1,022 $ 1,146 $ 1,740 $ 1,740 $ 1,740 $ 01 0102 6241 Office Supplies - $ - $ - $ - $ 2,000 $ 2,000 $ 01 0102 6244 Miscellaneous - $ 3,801 $ 624 $ 2,500 $ 1,500 $ 1,500 $ 01 0102 6251 Training & Meetings 11,574 $ 6,694 $ 13,628 $ 17,000 $ 15,000 $ 15,000 $ 01 0102 6258 Staff Education Reimbursement - $ - $ 506 $ 12,500 $ 12,500 $ 12,500 $ 01 0102 6359 Contract & Consulting 3,822 $ 1,501 $ 1,345 $ 3,000 $ 13,000 $ 3,000 $ 01 0102 6359 Contract & Consulting - Outreach 45,010 $ 19,200 $ - $ - $ - $ - $ 01 0102 6518 Electronic Equipment 753 $ - $ - $ - $ - $ - $ TOTAL EXPENDITURES $ 552,109 $ 518,961 $ 483,856 $ 582,078 $ 586,357 $ 590,266 Council and supports the day to day operations of the City. City Manager 83%, Executive Assistant 40%, Human Resources 98%, and Office Assistant 100%.

CITY ADMINISTRATION
City Manager and administrative staff carry out policies set by the City 5 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 0103 Expenditures
01 0103 6107 City Attorney 111,185 $ 135,902 $ 83,036 $ 118,000 $ 118,000 $ 118,000 $ TOTAL EXPENDITURES 111,185 $ 135,902 $ 83,036 $ 118,000 $ 118,000 $ 118,000 $

CITY ATTORNEY
The City Attorney acts as legal advisor to the City Council and the Successor Agency. 6 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 0104 Expenditures
01 0104 6210 Electricity 22,311 $ 24,676 $ 19,759 $ 26,198 $ 27,508 $ 28,883 $ 01 0104 6211 Gas 4,401 $ 3,158 $ 3,242 $ 5,500 $ 5,775 $ 6,064 $ 01 0104 6212 Water 18,808 $ 23,701 $ 19,379 $ 24,933 $ 26,180 $ 27,489 $ 01 0104 6221 Telephone 10,655 $ 10,553 $ 10,495 $ 13,097 $ 13,752 $ 14,440 $ 01 0104 6291 Building Operations & Main 11,793 $ 52,793 $ 8,445 $ 27,000 $ 15,000 $ 15,000 $ 01 0104 6359 Contract & Consulting Services 26,580 $ 28,130 $ 20,753 $ 29,912 $ 31,112 $ 31,412 $ 01 0104 6442 Internal Loan - $ - $ - $ 40,000 $ 40,000 $ 40,000 $ 01 0104 6441 Debt Svc Interest Payment 38,206 $ 36,939 $ 39,066 $ 35,631 $ 37,592 $ 36,072 $ 01 0104 6442 Debt Svc Principal Payment 43,020 $ 44,149 $ 41,879 $ 45,314 $ 43,207 $ 44,576 $ TOTAL EXPENDITURES 175,774 $ 224,099 $ 163,018 $ 247,585 $ 240,126 $ 243,936 $

CITY HALL
This Department supports the cost associated with the daily operation of City Hall. 7 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 0105 Expenditures
01 0105 5110 Salaries 177,343 $ 185,530 $ 223,496 $ 264,464 $ 274,632 $ 297,883 $ 01 0105 5235 Vehicle Allowance 289 $ 248 $ 929 $ 1,098 $ 1,098 $ 1,098 $ 01 0105 5250 Insurance 21,214 $ 19,901 $ 23,697 $ 24,559 $ 31,163 $ 32,524 $ 01 0105 5251 Retirement 15,804 $ 15,497 $ 17,140 $ 20,372 $ 21,891 $ 23,861 $ 01 0105 5252 Workers Comp 5,134 $ 5,123 $ 9,373 $ 10,611 $ 10,985 $ 11,915 $ 01 0105 5253 Paid Time Off 2,603 $ 11,398 $ 6,911 $ 10,000 $ 14,000 $ 14,000 $ 01 0105 6241 Office Supplies 1,843 $ 2,172 $ 661 $ 3,000 $ 2,500 $ 2,500 $ 01 0105 6251 Training & Meetings 2,819 $ 5,829 $ 869 $ 5,000 $ 5,000 $ 5,500 $ 01 0105 6257 Dues & Subscriptions 8,400 $ 9,315 $ 7,535 $ 10,500 $ 9,000 $ 9,000 $ 01 0105 6359 Contract & Consulting 5,371 $ 151 $ 425 $ 10,000 $ 2,000 $ 2,000 $ 01 0105 6518 Computer Software
& Hardware 17,932 $ 14,795 $ 15,626 $ 17,978 $ 19,057 $ 20,200 $ 01 0105 6554 Payroll Service 18,162 $ 18,357 $ 19,691 $ 20,225 $ 21,439 $ 22,725 $ TOTAL EXPENDITURES 276,914 $ 288,316 $ 326,353 $ 397,807 $ 412,765 $ 443,206 $

FINANCE DEPARTMENT
The Finance Department accounts for financial activities including payroll accounts payable, the receipt of monies, issuance of business licenses, preparation of the annual budget and annual audits.
8 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 0106 Expenditures
01 0106 5110 Salaries 109,099 $ 122,251 $ 109,148 $ 135,434 $ 166,928 $ 177,341 $ 01 0106 5235 Vehicle/Cell Allowance 2,280 $ 1,535 $ 995 $ 1,176 $ 1,176 $ 1,176 $ 01 0106 5250 Insurance 10,578 $ 10,825 $ 9,397 $ 11,388 $ 12,896 $ 13,305 $ 01 0106 5251 Retirement 13,361 $ 17,212 $ 15,443 $ 19,148 $ 21,525 $ 22,643 $ 01 0106 5252 Workers Comp 3,185 $ 3,321 $ 4,967 $ 5,417 $ 6,677 $ 7,094 $ 01 0106 5253 Paid Time Off - $ 2,216 $ 8,810 $ 10,000 $ 10,000 $ 10,000 $ 01 0106 6221 Telephone - $ 623 $ 521 $ 636 $ 636 $ 636 $ 01 0106 6231 Printing - $ - $ - $ 500 $ - $ - $
01 0106 6233 Legal Notices 7,787 $ 6,224 $ 1,112 $ 8,000 $ 8,000 $ 8,000 $ 01 0106 6241 Office Supplies 1,237 $ 679 $ 651 $ 1,500 $ 1,000 $ 1,000 $ 01 0106 6244 Miscellaneous 44 $ - $ 141 $ 500 $ 500 $ 500 $ 01 0106 6251 Training & Meetings 5,281 $ 5,509 $ 5,854 $ 9,000 $ 8,500 $ 9,000 $ 01 0106 6257 Dues & Subscriptions 6,292 $ 6,946 $ 4,289 $ 7,500 $ 7,910 $ 7,910 $ 01 0106 6257 Subscription Software - $ 4,950 $ 5,198 $ 5,198 $ 5,458 $ 5,731 $ 01 0106 6349 Marketing $ - $ 14,168 $ 13,988 $ 15,000 $ 17,000 $ 17,000 01 0106 6359 Contract & Consulting $ - $ - $ - $ 500 $ - $ - 01 0106 6360 Special Department
Supplies $ - $ 370 $ - $ 500 $ 500 $ 500
01 0106 6405 Redistricting $ - $ - $ 610 $ 610 $ 628 $ 647 01 0106 6411 Elections $ 2,923 $ - $ 4,404 $ 2,000 $ - $ 6,000 TOTAL EXPENDITURES $ 162,067 $ 196,829 $ 185,528 $ 234,007 $ 269,334 $ 288,483

CITY CLERK
The City Clerk records and retains the records of the City Council, Planning Commission and other City activities. 9 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 0107 Expenditures
01 0107 6231 Printing 2,268 $ 1,926 $ 1,960 $ 3,600 $ 3,200 $ 3,300 $ 01 0107 6232 Advertising Note 1 $ - 3,258 $ - $ 2,000 $ 2,000 $ 2,000 $ 01 0107 6241 Office Supplies 17,411 $ 10,563 $ 8,894 $ 13,000 $ 14,000 $ 14,000 $ 01 0107 6242 Postage 9,334 $ 5,714 $ 5,529 $ 10,000 $ 10,000 $ 10,000 $ 01 0107 6243 Credit Card Admin Fees 55,981 $ 59,462 $ 44,900 $ 62,000 $ 64,000 $ 64,000 $ 01 0107 6244 Miscellaneous Note 2 $ 34,984 21,143 $ 13,072 $ 36,000 $ 35,500 $ 35,500 $ 01 0107 6246 Cafeteria Plan Costs 1,425 $ 1,395 $ 915 $ 2,500 $ 2,500 $ 2,500 $ 01 0107 6257 Dues & Subscriptions Note 3 $ 19,444 91,382 $ 32,765 $ 26,850 $ 37,051 $ 38,904 $ 01 0107 6259 Dues, League of Cal. Cities 12,432 $ 12,272 $ 12,622 $ 13,707 $ 13,127 $ 13,652 $ 01 0107 6281 Emergency/Safety Management 7,268 $ 10,622 $ 5,669 $ 50,000 $ 40,000 $ 40,000 $ 01 0107 6291 Rental Property Maintenance 30,245 $ 5,740 $ 6,392 $ 29,000 $ 25,000 $ 26,000 $ 01 0107 6327 Copiers at City Hall 6,066 $ 1,731 $ 1,936 $ 2,500 $ 2,500 $ 2,500 $ 01 0107 6354 Audit 56,695 $ 55,319 $ 46,598 $ 68,900 $ 76,684 $ 65,085 $ 01 0107 6359 Contract Svcs 3,015 $ - $ 6,580 $ 53,000 $ 36,000 $ 15,000 $ 01 0107 6359 Contract Svcs - Grant Writing 12,000 $ $ - $ - $ 13,000 $ 25,000 $ 25,000 01 0107 6359 Contract Svcs-LAFCO $ (9,299) $ - $ - $ - $ - $ - 01 0107 6370 Lobbyist $ 84,600 $ 78,600 $ 67,200 $ 84,000 $ 89,600 $ 92,180 01 0107 6372 Property Tax Collection Charges 4 $ 19,768 $ 20,679 $ 107 $ 25,000 $ 25,000 $ 25,000 01 0107 6418 PERS Pension UAL - Fire $ 56,889 $ 1,689,685 $ - $ - $ - $ - 01 0107 6419 OPEB Note 5 $ - $ - $ - $ - $ - $ -
01 0107 6420 OPEB Retiree Medical Note 6 $ 136,920 $ 137,109 $ 95,291 $ 164,597 $ 169,535 $ 176,316 01 0107 6431 Liability and Property Insurance 7 $ 288,563 $ 305,075 $ 357,136 $ 366,236 $ 446,420 $ 535,704 01 0107 6501 Citation Processing Fee $ 6,378 $ 7,720 $ 6,508 $ 8,000 $ 8,000 $ 8,000 01 0107 6509 Grant Purchases $ 41,346 $ 13,900 $ 91,855 $ 85,200 $ 50,000 $ 50,000 01 0107 6544 Water Assessment $ 6,287 $ 5,977 $ 5,919 $ 7,207 $ 7,567 $ 7,945 01 0107 6753 Prepay PERS Unfunded Liability $ 57,314 $ - $ 66,863 $ 66,863 $ 191,257 $ 239,000 01 0107 6850 Transfers Out $ 4,437,476 $ 463,158 $ 172,500 $ 723,151 $ 230,000 $ 230,000 01 0107 6879 ADA Compliance $ - $ - $ 4,100 $ 40,000 $ 30,000 $ 30,000 01 0107 6993 Adopt-A-Street Program $ 113 $ 129 $ - $ 1,000 $ 1,000 $ 1,000 TOTAL EXPENDITURES $ 5,456,278 $ 2,941,204 $ 1,055,311 $ 1,957,311 $ 1,634,941 $ 1,752,586

NONDEPARTMENTAL
Expenditures of the General Fund that benefits all departments, or are not easily assigned to a particular department are charged to Nondepartmental.
10 5/7/2025
DRAFT

Note 1:

Advertising is a provisional account which is used for advertising personnel openings.

Note 2:

Note 3:

Dues and subscriptions are for those items that are not attributable to a particular department examples are: LAFCO, FCC publications, ASCAP, SANBAG, ICMA/CAL, CMA, ERC and Basin-wide Foundation.

Note 4:

Note 5:

OPEB is an amount the City pays to a third party administrator (PARS, previously CalPERS) to be set aside for future payment of Other Post Employment Benefits or retiree medical costs.

The unfunded liability is calculated every two years by a certified actuary.

Note 6:

Note 7:

Liability and property insurance is the amount the City pays for coverage to the Public Agency Risk Sharing Authority of California (PARSAC) plus the cost of self-insured retention (deductible).

OPEB retiree medical is the amount the City pays each year for the medical premiums of current retirees.

Property tax collection expenditures cover the amount the County charges the City for processing the property tax rolls.

Miscellaneous expenditures are used for various unexpected costs that come up during the year.

NONDEPARTMENTAL - NOTES
11 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 0108 Expenditures
01 0108 5110 Salaries 92,415 $ 96,012 $ 25,520 $ 26,742 $ 29,727 $ 31,417 $ 01 0108 5250 Insurance 9,480 $ 7,297 $ 2,509 $ 2,690 $ 3,191 $ 3,322 $ 01 0108 5251 Retirement 9,300 $ 7,270 $ 2,197 $ 2,409 $ 2,669 $ 2,825 $ 01 0108 5252 Workers Comp 2,626 $ 2,472 $ 1,028 $ 1,050 $ 1,170 $ 1,237 $ 01 0108 6359 Contract & Consulting SVC 1,200 $ 1,200 $ 1,200 $ 1,250 $ 1,250 $ 1,300 $ TOTAL EXPENDITURES 115,021 $ 114,251 $ 32,454 $ 34,141 $ 38,007 $ 40,101 $

SUCCESSOR AGENCY
Successor Agency Administrative cost associated with supporting this department. 12 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 0109 Expenditures
01 0109 5110 Salaries 123,812 $ 138,118 $ 127,620 $ 151,216 $ 162,282 $ 175,510 $ 01 0109 5235 Vehicle Allowance - $ 739 $ 1,015 $ 1,200 $ 1,200 $ 1,200 $ 01 0109 5250 Insurance 7,994 $ 8,264 $ 6,961 $ 8,509 $ 8,064 $ 8,256 $ 01 0109 5251 Retirement 9,236 $ 10,632 $ 10,060 $ 11,912 $ 12,929 $ 14,052 $ 01 0109 5252 Workers Comp 3,609 $ 3,747 $ 5,414 $ 6,048 $ 6,491 $ 7,020 $ 01 0109 5253 Paid Time Off 5,041 $ 6,640 $ 4,166 $ 8,000 $ 8,000 $ 8,000 $ 01 0109 6221 Telephone 599 $ 624 $ 469 $ 643 662 682
01 0109 6241 Office Supplies 1,744 $ 234 $ - $ 300 $ 300 $ 300 $ 01 0109 6251 Training & Meetings 151 $ 1,640 $ 599 $ 4,000 $ 1,000 $ 1,000 $ 01 0109 6257 Dues & Subscriptions 109 $ - $ 100 $ 500 $ - $ - $ 01 0109 6279 Internet Connection/TV 25,120 $ 26,283 $ 21,989 $ 27,654 $ 25,966 $ 26,485 $ 01 0109 6355 Laserfiche, The Box & Malware 12,369 $ 7,867 $ 5,855 $ 8,273 $ 8,676 $ 9,015 $ 01 0109 6355 Web Hosting, Splashtop, Adobe & Help Desk 7,281 $ 6,313 $ 22,244 $ 23,447 $ 22,781 $ 22,482 $ 01 0109 6359 Rack Space 68,111 $ 18,441 $ 11,551 $ 25,000 $ 19,000 $ 20,140 $ 01 0109 6518 Electronic Equipment $ 15,270 $ 14,233 $ 7,131 $ 24,300 $ 22,000 $ 15,000 TOTAL EXPENDITURES $ 280,446 $ 243,775 $ 225,174 $ 301,002 $ 299,351 $ 309,142

IT DEPARTMENT
The IT Department is responsible for providing the infrastructure for automation. It implements the governance for the use of network and operating systems, and it assists all departments by providing them the functionality they need. 13 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 1010 Expenditures
01 1010 5109 Planning Comm. Salaries 9,600 $ 11,850 $ 8,550 $ 13,500 $ 13,500 $ 13,500 $ 01 1010 5110 Salaries 323,212 $ 353,827 $ 263,370 $ 349,194 $ 326,810 $ 344,860 $ 01 1010 5250 Insurance 42,581 $ 46,681 $ 32,060 $ 49,093 $ 40,243 $ 42,038 $ 01 1010 5251 Retirement 27,992 $ 32,741 $ 23,995 $ 31,378 $ 30,067 $ 31,773 $ 01 1010 5252 Workers Comp 9,700 $ 9,268 $ 10,980 $ 14,508 $ 13,613 $ 14,334 $ 01 1010 5253 Paid Time Off 21,623 $ 1,631 $ 2,597 $ 5,000 $ 6,000 $ 6,000 $ 01 1010 6221 Telephone - $ - $ - $ - $ 700 $ 700 $
01 1010 6233 Legal Notices 6,849 $ 8,977 $ 5,886 $ 10,000 $ 10,000 $ 10,000 $ 01 1010 6241 Office Supplies - $ - $ 3,074 $ 4,600 $ 4,600 $ 4,600 $ 01 1010 6251 Training & Meetings 35 $ - $ - $ 5,000 $ 4,000 $ 3,000 $ 01 1010 6256 Training & Meetings
Planning Commissioners - $ 6,323 $ - $ 6,000 $ 6,500 $ 2,000 $ 01 1010 6257 Dues & Subscriptions - $ - $ 14,800 $ 15,000 $ 15,750 $ 16,538 $ 01 1010 6291 Building Operation & Maint. - $ 5,446 $ 2,092 $ 4,500 $ 4,500 $ 4,500 $ 01 1010 6327 Rent/Lease Equipment 21,170 $ 5,145 $ 4,238 $ 5,195 $ 5,402 $ $ 5,672 01 1010 6359 Contract Services $ 41,527 $ 5,894 $ 6,608 $ 8,250 $ 9,000 $ 9,000 01 1010 6360 Special Department Supplies $ 1,943 $ 8,745 $ 2,055 $ 2,500 $ 2,500 $ 2,500 01 1010 6361 Public Arts Advisory Committee $ 14,788 $ 15,000 $ 5,347 $ 17,000 $ 15,000 $ 15,000 01 1010 6376 Housing & Homelessness Programs $ 68,322 $ 27,893 $ 26,500 $ 97,010 $ 25,000 $ 25,000 01 1010 6504 Mine Inspection $ 5,590 $ 5,636 $ 5,600 $ 6,500 $ 6,500 $ 6,500 01 1010 6518 Comm. Dev. Software $ 27,752 $ 25,200 $ 50,400 $ 26,460 $ 27,783 $ 29,172 TOTAL EXPENDITURES $ 622,684 $ 570,257 $ 468,152 $ 670,688 $ 567,468 $ 586,687

COMMUNITY DEVELOPMENT
Community Development performs planning duties and oversees the building and code enforcement functions. 14 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 1011 Expenditures
01 1011 5110 Salaries 120,729 $ 140,481 $ 128,315 $ 152,968 $ 160,602 $ 169,546 $ 01 1011 5130 Overtime Wages 1,978 $ 705 $ 147 $ - $ 1,500 $ 1,500 $ 01 1011 5250 Insurance 12,787 $ 14,351 $ 11,846 $ 14,323 $ 13,837 $ 14,023 $ 01 1011 5251 Retirement 9,117 $ 10,837 $ 10,131 $ 12,061 $ 12,806 $ 13,586 $ 01 1011 5252 Workers Comp 3,506 $ 3,435 $ 4,923 $ 6,119 $ 6,484 $ 6,842 $ 01 1011 5253 Paid Time Off 287 $ 87 $ - $ 1,000 $ 1,000 $ 1,000 $ 01 1011 6107 Attorney Fees 14,430 $ 19,110 $ 18,992 $ 20,000 $ 25,000 $ 25,000 $ 01 1011 6221 Telephone 905 $ 1,116 $ 967 $ 1,194 $ 1,194 $ 1,194 $ 01 1011 6241 Office supplies 2,496 $ 346 $ 547 $ 1,000 $ 1,000 $ 1,000 $ 01 1011 6251 Training & Meetings 8,672 $ 3,877 $ 2,894 $ 5,000 $ 4,000 $ 4,000 $ 01 1011 6257 Dues & Subscriptions - $ - $ 9,611 $ 9,880 $ 10,000 $ 10,000 $ 01 1011 6262 Equipment Maintenance &
Operation 71 $ 113 $ - $ 700 $ 700 $ 700 $
01 1011 6272 Vehicle Maintenance &
Operation 2,262 $ 552 $ 199 $ 1,000 $ 1,000 $ 1,000 $
01 1011 6272 Vehicle - Fuel 2,476 $ 1,934 $ 1,675 $ 2,500 $ $ 2,500 $ 2,500 01 1011 6332 Uniforms $ 244 $ 474 $ 474 $ 500 $ 1,000 $ 500 01 1011 6359 Contract Services $ 12,604 $ 9,174 $ 2,950 $ 7,000 $ 2,000 $ 2,000 01 1011 6359 Contract Services - Security $ 32,324 $ 33,988 $ 28,084 $ 38,400 $ 36,027 $ 38,189 01 1011 6518 Electronic Equipment $ - $ - $ - $ 100 $ - $ - 01 1011 6548 Dangerous Building
Abatement $ 13,036 $ 16,475 $ 80 $ 5,000 $ 36,510 $ 6,000 01 1011 6549 Illegal Dump Cleanup $ 2,445 $ 2,300 $ - $ 4,000 $ 4,000 $ 4,000 TOTAL EXPENDITURES $ 240,369 $ 259,355 $ 221,835 $ 282,745 $ 321,160 $ 302,580

CODE ENFORCEMENT
The Code Enforcement Officer responds to citizen complaints, inspects properties that appear to be unsafe or have violations and issues citations when necessary. Occasionally a property needs to be boarded up or tagged as uninhabitable
15 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 1012 Expenditures
01 1012 6362 Building & Safety
Contracts 469,133 $ 374,950 $ 257,749 $ 366,850 $ 473,570 $ 480,240 $ 01 1012 6363 Engineering Contract 137,982 $ 107,685 $ 70,614 $ 120,000 $ 120,000 $ 120,000 $ TOTAL EXPENDITURES 607,115 $ 482,635 $ 328,363 $ 486,850 $ 593,570 $ 600,240 $

BUILDING, SAFETY AND ENGINEERING
Issuance of building permits and the related inspections along with plan checks and review of engineering plans are the main duties of this department. The building contract expenditures are based on 66.7% of the building permit fees 16 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 1013 Expenditures
01 1013 5120 Salaries 2,154 $ - $ - $ - $ - $ - $
01 1013 5250 Insurance 454 $ - $ - $ - $ - $ - $
01 1013 5251 Retirement 138 $ - $ - $ - $ - $ - $
01 1013 5252 Workers Comp 56 $ - $ - $ - $ - $ - $
01 1013 6210 Utilities SCE, Gas, Water 6,741 $ 1,013 $ 2,058 $ 5,000 $ 3,000 $ 3,000 $ 01 1013 6291 Maintenance 1,370 $ 834 $ 668 $ 1,000 $ 1,000 $ 1,000 $ 01 1013 6371 Community Events
and Promotion Art Expo 980 $ - $ - $ - $ - $ - $
01 1013 6373 Economic Development Plan - $ - $ - $ 5,000 $ 5,000 $ - $ TOTAL EXPENDITURES 11,893 $ 1,847 $ 2,726 $ 11,000 $ 9,000 $ 4,000 $

ECONOMIC DEVELOPMENT
Economic Development focuses on attracting tourists and businesses to the City. This involves joint operation of the visitors' center with community events and print as well as internet advertising. 17 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 2021 Expenditures
01 2021 6252 Overtime 61,312 $ 80,409 $ 24,198 $ 72,561 $ 95,000 $ 95,000 $ 01 2021 6255 Cal-ID program 35,361 $ 63,265 $ - $ 38,987 $ 30,506 $ 32,031 $ 01 2021 6272 Vehicle Maint & Operation 141,543 $ 218,686 $ 36,799 $ 200,000 $ 200,000 $ 200,000 $ 01 2021 6359 Contract services - Sheriff 3,902,801 $ 5,180,353 $ 4,050,545 $ 5,460,725 $ 5,536,661 $ 5,927,484 $ 01 2021 6359 CARES Act of 2020/ARPA Reimbursements 710,956 $ - $ - $ - $ - $ - $ 01 2021 6360 Special department supplies 4,134 $ 4,077 $ 4,009 $ 4,000 $ 4,000 $ 4,000 $ 01 2021 6367 Seized Assets Law Enforcement 1,351 $ 2,430 $ - $ 2,000 $ 2,000 $ 2,000 $ 01 2021 6378 COPS/SLESA grants 139,497 $ 177,309 $ 180,446 $ 180,000 $ 180,000 $ 180,000 $ TOTAL EXPENDITURES 4,996,955 $ 5,726,529 $ 4,295,997 $ 5,958,273 $ 6,048,167 $ 6,440,515 $ The City contracts with the San Bernardino County Sheriff for police protection. The contract includes patrol, investigation, school resource officer and all other police duties.

LAW ENFORCEMENT
18 5/7/2025
DRAFT

0.6%
2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 2022 Expenditures
01 2022 5110 Salaries 256,375 $ 307,120 $ 278,804 $ 327,475 $ 356,900 $ 379,589 $ 01 2022 5130 Overtime Wages 16,809 $ 24,334 $ 20,432 $ 22,000 $ $ 27,000 $ 28,000 01 2022 5235 Vehicle/Cell Allowance $ 420 $ 1,200 $ 1,016 $ 1,200 $ 1,200 $ 1,200 01 2022 5250 Insurance $ 53,197 $ 56,843 $ 52,548 $ 61,034 $ 71,486 $ 74,949 01 2022 5251 Retirement $ 23,335 $ 30,595 $ 28,313 $ 33,095 $ 36,851 $ 39,426 01 2022 5252 Workers Comp $ 6,445 $ 6,795 $ 9,985 $ 13,979 $ 15,356 $ 16,304 01 2022 5253 Paid Time Off $ 13,963 $ 3,613 $ 9,549 $ 18,000 $ 15,000 $ 15,000 01 2022 6210 Electricity $ 12,179 $ 12,595 $ 8,497 $ 15,000 $ 13,225 $ 13,886 01 2022 6211 Natural and Propane Gas $ 8,696 $ 4,512 $ 4,225 $ 8,000 $ 4,738 $ 4,975 01 2022 6212 Water $ 6,137 $ 9,959 $ 8,615 $ 10,000 $ 10,457 $ 10,980 01 2022 6221 Telephone $ 2,037 $ 1,632 $ 1,485 $ 1,824 $ 1,915 $ 2,011 01 2022 6231 Printing $ 663 $ 622 $ 701 $ 1,500 $ 1,500 $ 1,500 01 2022 6232 Advertising $ 2,613 $ 2,997 $ 2,551 $ 3,000 $ 3,500 $ 3,800 01 2022 6241 Office Supplies $ 2,507 $ 2,080 $ 2,143 $ 2,000 $ 3,000 $ 3,000 01 2022 6251 Training & Meetings $ 1,491 $ 1,361 $ 202 $ 4,000 $ 4,000 $ 4,000 01 2022 6272 Vehicle Operation & Maint. $ 7,829 $ 6,551 $ 9,948 $ 8,000 $ 8,500 $ 8,500 01 2022 6272 Vehicle - Fuel $ 8,807 $ 9,539 $ 6,406 $ 8,400 $ 11,000 $ 11,000 01 2022 6290 Grounds Operation & Maint. $ 196 $ - $ - $ - $ - $ - 01 2022 6291 Building Operation & Maint. $ 10,736 $ 11,344 $ 11,618 $ 12,000 $ 13,000 $ 13,000 01 2022 6312 Small Equipment & Tools $ 3,261 $ 2,850 $ 1,275 $ 3,500 $ 3,500 $ 3,500 01 2022 6327 Rent/Lease Equipment $ - $ 1,414 $ 1,393 $ 1,537 $ 1,614 $ 1,695 01 2022 6332 Uniforms $ 3,807 $ 3,352 $ 889 $ 3,500 $ 4,000 $ 4,000 01 2022 6359 Contract Services $ 1,552 $ - $ - $ 3,000 $ 3,000 $ 3,000 01 2022 6360 Special Dept. Supplies $ 5,143 $ 5,360 $ 1,222 $ 6,000 $ 6,000 $ 6,000 01 2022 6422 Veterinary Services $ 23,979 $ 24,569 $ 16,579 $ 27,563 $ 30,400 $ 30,400 01 2022 6423 License Tags $ 3,456 $ 2,693 $ 2,474 $ 4,000 $ 4,000 $ 4,000 01 2022 6424 Animal Disposal $ 4,800 $ 7,500 $ 3,150 $ 9,000 $ 9,000 $ 9,000 01 2022 6425 Leashes, Collars etc. $ 1,697 $ 2,277 $ - $ 2,500 $ 2,500 $ 2,500 01 2022 6426 Animal Food & Cat Litter $ 14,299 $ 17,245 $ 12,533 $ 19,000 $ 20,000 $ 20,000 01 2022 6518 Electronic Equipment - Tablets $ 1,128 $ - $ - $ - $ - $ - 01 2022 6518 Software - Sheltermanager $ 383 $ 383 $ - $ 500 $ 500 $ 500 TOTAL EXPENDITURES $ 497,940 $ 561,335 $ 496,553 $ 630,607 $ 683,142 $ 715,715

ANIMAL CONTROL
The department investigates animal complaints, issues licenses and operates the animal shelter. An Animal Control Officer is available 24 hours a day subject to call-out. 19 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 3031 Expenditures
01 3031 5110 Salaries 103,584 $ 113,838 $ 108,210 $ 124,675 $ 144,493 $ 156,265 $ 01 3031 5235 Vehicle/Cell Allowance 1,200 $ 1,200 $ 1,016 $ 1,200 $ 1,200 $ 1,200 $ 01 3031 5250 Insurance 10,959 $ 11,329 $ 9,447 $ 11,424 $ 11,106 $ 11,276 $ 01 3031 5251 Retirement 12,671 $ 16,030 $ 15,275 $ 17,628 $ 20,500 $ 22,201 $ 01 3031 5252 Workers Comp 3,040 $ 3,338 $ 4,582 $ 4,987 $ 5,780 $ 6,251 $ 01 3031 5253 Paid Time Off - $ 10,946 $ - $ 6,000 $ 6,000 $ 6,000 $ 01 3031 6210 Electricity 3,660 $ 4,750 $ 7,088 $ 9,000 $ 9,450 $ 9,923 $ 01 3031 6212 Water 830 $ 823 $ 506 $ 899 $ 944 $ 991 $
01 3031 6221 Telephone 3,360 $ 3,537 $ 3,321 $ 4,183 $ 4,392 $ 4,612 $ 01 3031 6241 Office Supplies 4,624 $ 2,587 $ 2,637 $ 4,500 $ 3,500 $ 3,500 $ 01 3031 6251 Training & Meetings 2,942 $ 200 $ 18 $ 4,000 $ - $ - $ 01 3031 6257 Dues & Subscriptions 470 $ 510 $ - $ - $ - $ - $ 01 3031 6272 Vehicle Operation & Maint. 5,830 $ 278 $ 90 $ 6,500 $ 4,545 $ 4,545 $ 01 3031 6291 Building Operation & Maint. 5,678 $ 10,016 $ 6,442 $ 10,000 $ 9,000 $ 15,000 $ 01 3031 6293 Building Operation &
Maintenance - Preschool $ 828 $ 1,929 $ 572 $ 1,500 $ 1,500 $ 1,500 01 3031 6294 Building Operation &
Maintenance - Theatre 29 $ 1,000 $ 5,070 $ 4,338 $ 6,000 $ 3,000 $ 3,000 01 3031 6327 Rent/Lease Equipment $ 2,227 $ 2,284 $ 2,062 $ 2,503 $ 2,628 $ 2,759 01 3031 6359 Contract Consulting/Booking $ 14,798 $ 9,688 $ 8,974 $ 9,975 $ 10,474 $ 10,998 01 3031 6760 Contributions to Non-profits $ 20,000 $ 50,000 $ 50,110 $ 50,000 $ 50,000 $ 50,000 01 3031 6761 Youth Council $ - $ - $ 2,885 $ 3,800 $ 9,250 $ 3,000 TOTAL EXPENDITURES $ 197,701 $ 248,353 $ 227,573 $ 278,774 $ 297,762 $ 313,021

COMMUNITY SERVICES ADMINISTRATION
Provides administrative oversight of recreation, swimming pool, etc., schedules building use and rental, coordinates events, coordinates CDBG and other capital improvement grants for the parks. 20 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 3032 Expenditures
01 3032 5110 Salaries-Full Time 195,250 $ 250,833 $ 215,970 $ 264,930 $ 277,139 $ 292,594 $ 01 3032 5120 Salaries-Part Time and
Summer youth programs 20,191 $ 27,788 $ 19,930 $ 35,000 $ 40,000 $ 43,000 $ 01 3032 5130 Overtime Wages 5,837 $ 3,384 $ 6,169 $ - $ 8,000 $ 8,500 $ 01 3032 5235 Vehicle/Cell Allowance 420 $ 178 $ - $ - $ - $ - $ 01 3032 5250 Insurance 38,094 $ 42,808 $ 31,441 $ 40,740 $ 42,606 $ 44,471 $ 01 3032 5251 Retirement 14,892 $ 19,390 $ 17,076 $ 20,895 $ 22,105 $ 23,452 $ 01 3032 5252 Workers Comp 5,093 $ 6,584 $ 8,373 $ 11,997 $ 13,006 $ 13,764 $ 01 3032 5253 Paid Time Off 1,705 $ 1,547 $ 542 $ 2,500 $ 2,500 $ 2,500 $ 01 3032 5254 Unemployment Insurance 1,350 $ 10,350 $ - $ 5,000 $ 5,000 $ 5,000 $ 01 3032 6210 Electricity 5,987 $ 8,543 $ 3,905 $ 9,000 $ 8,970 $ 9,419 $ 01 3032 6221 Telephone - $ 457 $ 521 $ 655 $ 688 $ 722 $ 01 3032 6232 Advertising 117 $ 1,541 $ 1,120 $ 1,800 $ 1,800 $ 1,800 $ 01 3032 6241 Office Supplies 440 $ 906 $ 711 $ 2,000 $ 1,500 $ 1,500 $ 01 3032 6251 Training & Meetings 6,559 $ 4,932 $ 995 $ 7,000 $ 7,000 $ $ 7,000 01 3032 6253 Awards & Trophies $ 12,022 $ 8,382 $ 7,725 $ 12,500 $ 12,500 $ 12,500 01 3032 6257 Dues & Subscriptions $ 140 $ 10 $ 465 $ 500 $ 500 $ 500 01 3032 6262 Equipment Operation & Maint. $ 281 $ 1,594 $ 884 $ 1,500 $ 1,500 $ 1,500 01 3032 6262 Equipment - Fuel $ 2,142 $ 2,650 $ 268 $ 2,756 $ 4,000 $ 4,000 01 3032 6272 Vehicle Operation & Maint. $ 8,069 $ 574 $ 1,209 $ 3,500 $ 3,500 $ 3,500 01 3032 6272 Vehicle - Fuel $ 11,122 $ 4,956 $ 1,454 $ 5,000 $ 6,000 $ 6,000 01 3032 6290 Grounds Operation & Maint. $ 16,798 $ 14,874 $ 10,156 $ 10,000 $ 15,000 $ 12,000 01 3032 6291 Building Operation & Maint. $ 2,145 $ 3,857 $ 2,971 $ 3,000 $ 3,500 $ 3,500 01 3032 6292 Minor Building Improv. $ 98 $ 200 $ 517 $ 1,500 $ 1,500 $ 1,500 01 3032 6312 Small Tools $ 621 $ 108 $ 238 $ 1,000 $ 1,000 $ 1,000 01 3032 6332 Uniforms $ 24,850 $ 24,025 $ 25,721 $ 28,000 $ 30,000 $ 30,000 01 3032 6359 Referees & Umpires $ 11,186 $ 12,192 $ 9,898 $ 13,000 $ 13,000 $ 13,000 01 3032 6360 Special Dept. Supplies $ 7,579 $ 6,518 $ 5,476 $ 6,500 $ 6,500 $ 6,500 01 3032 6369 Instructors Fees $ 8,333 $ 16,011 $ 9,452 $ 19,000 $ 19,000 $ 19,000 01 3032 6509 Sponsorship Purchases $ - $ - $ 4,670 $ 6,000 $ 6,000 $ 6,000 TOTAL EXPENDITURES $ 401,321 $ 475,192 $ 387,857 $ 515,273 $ 553,814 $ 574,222

RECREATION DEPARTMENT
Coordinates and oversees youth & adult sports leagues, instructional classes, maintenance of ball fields, summer day 21 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 3033 Expenditures
01 3033 5120 Salaries-Temporary
Lifeguards 14,587 $ 49,837 $ 36,198 $ 60,000 $ 65,000 $ 70,000 $ 01 3033 5250 Insurance 212 $ 722 $ 525 $ 870 $ 943 $ 1,015 $ 01 3033 5252 Workers Comp 399 $ 1,187 $ 1,176 $ 2,400 $ 2,600 $ 2,800 $ 01 3033 5254 Unemployment Insurance - $ - $ - $ 1,300 $ 1,300 $ 1,300 $ 01 3033 6210 Electricity 7,131 $ 23,236 $ 27,892 $ 27,000 $ 34,000 $ 35,700 $ 01 3033 6211 Natural Gas 2,742 $ 8,535 $ 8,675 $ 5,000 $ 11,000 $ 11,000 $ 01 3033 6212 Water 2,339 $ 2,707 $ 2,376 $ 3,000 $ 3,150 $ 3,308 $ 01 3033 6221 Telephone 631 $ 773 $ 919 $ 800 $ 1,200 $ 1,260 $ 01 3033 6251 Training & Meetings 378 $ 1,358 $ 1,062 $ 1,700 $ 1,500 $ 1,500 $ 01 3033 6262 Equipment operation & Maint. 149 $ 1,487 $ 546 $ 1,500 $ 1,500 $ 1,500 $ 01 3033 6290 Grounds Maintenance 240 $ 1,069 $ - $ 1,000 $ 1,000 $ 1,000 $ 01 3033 6291 Building & Pool Maint. 10,288 $ 15,513 $ 10,949 $ 16,000 $ 18,000 $ 18,000 $ 01 3033 6292 Minor Building Improvements 1,167 $ 41 $ - $ 500 $ 500 $ 500 $ 01 3033 6332 Uniforms 704 $ 492 $ 173 $ 1,200 $ 1,200 $ $ 1,200 01 3033 6360 Special Dept. Supplies $ 7,816 $ 2,561 $ 219 $ 2,500 $ 2,500 $ 2,500 TOTAL EXPENDITURES $ 48,783 $ 109,518 $ 90,710 $ 124,770 $ 145,393 $ 152,583

LUCKIE PARK SWIMMING POOL
Operates swimming pool from May Through September and provides lifeguards. The pool is used by the High School from February to May.
22 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 3034 Expenditures
01 3034 6210 Electricity 15,620 $ 16,665 $ 13,269 $ 18,291 $ $ 19,206 $ 20,166 01 3034 6211 Natural Gas $ 4,597 $ 2,572 $ 2,338 $ 6,500 $ 6,500 $ 6,500 01 3034 6212 Water $ 4,671 $ 4,793 $ 4,354 $ 5,500 $ 5,775 $ 6,064 01 3034 6221 Telephone $ 2,730 $ 3,447 $ 3,716 $ 3,388 $ 4,500 $ 4,725 01 3034 6291 Building Operation & Maint. $ 5,045 $ 7,354 $ 5,318 $ 6,000 $ 6,000 $ 6,000 01 3034 6292 Minor Building Improvements $ 668 $ 158 $ 455 $ 1,000 $ 1,000 $ 1,000 01 3034 6359 Maintenance Contract $ 17,540 $ 18,085 $ 13,500 $ 18,000 $ 19,000 $ 19,000 TOTAL EXPENDITURES $ 50,871 $ 53,074 $ 42,950 $ 58,679 $ 61,981 $ 63,455

SENIOR CENTER
Oversee lease agreement between City and County and Reach Out Morongo Basin, a local not-for-profit organization.

Staff assists in maintenance and general repair of the building. 23 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 3035 Expenditures
01 3035 5110 Salaries 51,978 $ 62,288 $ 56,798 $ 67,142 $ 70,595 $ 74,506 $ 01 3035 5130 Overtime Wages 3,157 $ 1,457 $ 270 $ - $ 2,000 $ 2,500 $ 01 3035 5250 Insurance 11,711 $ 11,250 $ 9,687 $ 11,893 $ 12,525 $ 13,111 $ 01 3035 5251 Retirement 3,979 $ 4,770 $ 4,484 $ 5,295 $ 5,631 $ 5,972 $ 01 3035 5252 Workers Comp 1,489 $ 1,604 $ 2,279 $ 2,686 $ 2,904 $ 3,080 $ 01 3035 5253 Paid Time Off - $ 312 $ - $ - $ 500 $ 500 $ 01 3035 6221 Telephone - $ - $ 469 $ 626 $ 657 $ 690 $
01 3035 6232 Advertising 395 $ 212 $ - $ 500 $ 500 $ 500 $ 01 3035 6241 Office Supplies 953 $ 270 $ 232 $ 500 $ 500 $ 500 $ 01 3035 6251 Meeting & Travel 1,258 $ 1,198 $ - $ 1,200 $ 1,200 $ 1,200 $ 01 3035 6253 Awards/Trophies 667 $ - $ - $ 1,000 $ 800 $ 800 $ 01 3035 6257 Dues & Subscriptions 1,769 $ 2,026 $ 2,402 $ 2,317 $ 2,433 $ 2,555 $ 01 3035 6272 Vehicle Operation & Maint. - $ - $ 135 $ - $ 200 $ 200 $ 01 3035 6332 Uniforms 1,145 $ 492 $ 864 $ 1,000 $ 1,000 $ 1,000 $ 01 3035 6371 Misc. Community Events $ 34,429 $ 70,981 $ 36,944 $ 59,500 $ 73,500 $ 88,500 01 3035 6381 Fireworks, July 4 $ 4,216 $ 2,016 $ 2,623 $ 5,000 $ 5,000 $ 5,000 01 3035 6382 Rotary Carnival $ 4,179 $ 4,200 $ 4,342 $ 6,000 $ 5,500 $ 5,500 01 3035 6383 Youth Boys/Girls Basketball Tournament $ 15,594 $ 15,179 $ 12,381 $ 16,500 $ 16,500 $ 16,500 01 3035 6384 Park 2 Park Bike Ride-JT 55 $ 11,108 $ 4,921 $ 11,698 $ 11,374 $ 12,500 $ 12,500 01 3035 6385 Desert Oasis Car Show $ 3,485 $ - $ - $ - $ - $ - 01 3035 6386 Pioneer Days $ 12,333 $ 20,369 $ 45,560 $ 46,000 $ 47,000 $ 47,000 01 3035 6387 Movies in the Park $ 3,539 $ 2,988 $ 2,098 $ 5,000 $ 4,500 $ 4,500 01 3035 6389 Juneteenth Event $ - $ 2,500 $ - $ 2,500 $ 2,500 $ 2,500 01 3035 6994 Veterans' Day Event $ - $ 2,782 $ - $ 3,000 $ 3,000 $ - TOTAL EXPENDITURES $ 167,384 $ 211,815 $ 193,266 $ 249,033 $ 271,445 $ 289,114

COMMUNITY EVENTS
Plans and oversees City sponsored Community Events for the public from conception to clean up. 24 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 3036 Expenditures
01 3036 6210 Electricity 3,659 $ 4,750 $ 7,088 $ 9,000 $ 9,450 $ 9,923 $ 01 3036 6211 Natural Gas 1,919 $ 186 $ 283 $ 3,000 $ 1,000 $ 1,000 $ 01 3036 6212 Water 928 $ 444 $ 367 $ 1,475 $ 1,200 $ 1,200 $ 01 3036 6221 Telephone 1,276 $ 1,451 $ 1,486 $ 1,500 $ 2,100 $ 2,205 $ 01 3036 6291 Building Repair & Maint. 2,167 $ 3,315 $ 4,857 $ 5,500 $ 5,500 $ 5,500 $ TOTAL EXPENDITURES 9,949 $ 10,146 $ 14,081 $ 20,475 $ 19,250 $ 19,828 $

PATRIOTIC HALL
Facility is rented to the public for events. Staff is responsible for scheduling of building and maintenance. 25 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 3037 Expenditures
01 3037 6210 Electricity 2,566 $ 2,602 $ 4,401 $ 5,000 $ 5,250 $ 5,513 $ 01 3037 6211 Natural Gas 637 $ 337 $ 448 $ 1,190 $ 900 $ 900 $ 01 3037 6212 Water 873 $ 1,109 $ 779 $ 1,355 $ $ 1,423 $ 1,494 01 3037 6291 Building Repair & Maint. $ 2,439 $ 3,320 $ 1,901 $ 5,000 $ 5,000 $ 5,000 01 3037 6292 Minor Building Improvements $ 50 $ 85 $ - $ 1,000 $ 1,000 $ 1,000 TOTAL EXPENDITURES $ 6,565 $ 7,453 $ 7,529 $ 13,545 $ 13,573 $ 13,907

LUCKIE PARK ACTIVITY CENTER
Classes are held on an ongoing basis (dance, yoga, Zumba etc.) Facility is rented to the public for events. Staff is responsible for scheduling of building and maintenance. 26 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 3038 Expenditures
01 3038 5110 Salaries 40,146 $ 22,819 $ 64,049 $ 75,130 $ 78,863 $ 83,221 $ 01 3038 5250 Insurance 9,345 $ 5,382 $ 14,080 $ 17,258 $ 18,181 $ 19,017 $ 01 3038 5251 Retirement 2,872 $ 1,760 $ 5,024 $ 5,929 $ 6,294 $ 6,674 $ 01 3038 5252 Workers Comp 889 $ 468 $ 2,397 $ 3,005 $ 3,154 $ 3,329 $ 01 3038 6210 Electricity 62,671 $ 72,777 $ 59,465 $ 70,000 $ 73,500 $ 77,175 $ 01 3038 6211 Natural Gas 7,585 $ 3,728 $ 3,936 $ 7,166 $ 7,524 $ 7,900 $ 01 3038 6212 Water 6,154 $ 6,355 $ 5,271 $ 11,520 $ 6,673 $ 7,007 $ 01 3038 6221 Telephone 128 $ 351 $ 319 $ 520 $ 546 $ 573 $ 01 3038 6241 Office Supplies 538 $ 38 $ 684 $ 1,000 $ 1,000 $ 1,000 $ 01 3038 6257 Dues & Subscriptions - $ - $ 12,340 $ 12,340 $ - $ - $ 01 3038 6260 Vandalism - $ - $ 138 $ 1,000 $ 1,000 $ 1,000 $ 01 3038 6262 Equipment Operation & Maint - $ - $ 3,374 $ 5,000 $ 10,500 $ 5,000 $ 01 3038 6279 Internet Connection 2,030 $ 2,300 $ 1,980 $ 2,394 $ 2,514 $ 2,640 $ 01 3038 6290 Ground Maintenance 2,572 $ 288 $ 1,123 $ 3,000 $ 3,000 $ 3,000 $ 01 3038 6291 Building Repair &
Maintenance $ 13,786 $ 12,852 $ 12,100 $ 7,500 $ 8,000 $ 8,000 01 3038 6359 Contract & Consulting $ 2,789 $ 2,081 $ 1,504 $ 6,272 $ 3,500 $ 3,500 01 3038 6360 Special Department Supplies $ 181 $ 116 $ 129 $ 2,000 $ 2,000 $ 2,000 01 3038 6518 Electronic Equipment $ 868 $ - $ - $ - $ - $ - 01 3038 6992 Banners $ - $ 1,113 $ - $ - $ 600 $ 600
TOTAL EXPENDITURES $ 152,554 $ 132,428 $ 187,913 $ 231,034 $ 226,849 $ 231,636 Classes are held on an ongoing basis (dance, yoga, Zumba etc.). Facility is rented to the public for events. Staff is responsible for scheduling of building and maintenance.

FREEDOM PLAZA - COMMUNITY CENTER
27 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 4041 Expenditures
01 4041 5110 Salaries 61,034 $ 115,896 $ 193,117 $ 224,224 $ 241,602 $ 256,684 $ 01 4041 5250 Insurance 9,397 $ 20,317 $ 24,203 $ 31,176 $ $ 31,003 $ 31,870 01 4041 5251 Retirement $ 6,292 $ 12,852 $ 22,973 $ 26,802 $ 28,769 $ 30,670 01 4041 5252 Workers Comp $ 1,453 $ 2,525 $ 6,789 $ 8,969 $ 9,664 $ 10,267 01 4041 5253 Paid Time Off $ 2,152 $ 3,526 $ 7,970 $ 9,000 $ 9,000 $ 9,000 01 4041 6210 Electricity $ 3,549 $ 3,902 $ 2,311 $ 4,187 $ 4,396 $ 4,616 01 4041 6211 Natural Gas $ 567 $ 196 $ 281 $ 800 $ 800 $ 800 01 4041 6212 Water $ 328 $ 362 $ 284 $ 605 $ 605 $ 605
01 4041 6221 Telephone $ 748 $ 1,739 $ 1,881 $ 2,500 $ 2,500 $ 2,625 01 4041 6241 Office Supplies $ 557 $ 1,325 $ 813 $ 1,500 $ 1,500 $ 1,500 01 4041 6251 Training & Meeting $ - $ - $ - $ 700 $ - $ - 01 4041 6291 Building Repair & Maint. $ 730 $ 1,080 $ 4,745 $ 6,000 $ 6,500 $ 6,500 01 4041 6518 Electronic Equipment $ 4,208 $ - $ - $ - $ - $ - 01 4041 6530 Traffic Signal Maintenance $ - $ 11,936 $ 9,354 $ 12,500 $ 12,500 $ 12,500 01 4041 6531 Signal Maintenance $ - $ 8,685 $ 13,796 $ 12,500 $ 18,000 $ 15,000 01 4041 6769 Generator Maint City Wide $ 57 $ - $ - $ 2,000 $ 2,000 $ 2,000 01 4041 6885 National Park Drive Median $ 18,653 $ 21,900 $ 14,750 $ 20,000 $ 20,000 $ 20,000 01 4041 6950 Palm Tree Maintenance $ 7,326 $ - $ - $ 10,000 $ 10,000 $ 10,000 01 4041 6992 Banners/Downtown lights $ - $ 280 $ - $ - $ 1,000 $ 1,000 TOTAL EXPENDITURES $ 117,051 $ 206,521 $ 303,267 $ 373,463 $ 399,839 $ 415,637

PUBLIC WORKS - ADMINISTRATION
Public works administrative costs associated with the General Fund (Building and grounds). 28 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 4042 Expenditures
01 4042 5110 Salaries 68,130 $ 70,913 $ 42,407 $ 49,254 $ $ 49,135 $ 51,853 01 4042 5250 Insurance $ 10,021 $ 11,485 $ 10,540 $ 16,830 $ 17,521 $ 18,565 01 4042 5251 Retirement $ 6,740 $ 7,888 $ 3,300 $ 3,887 $ 3,922 $ 4,159 01 4042 5252 Workers Comp $ 1,693 $ 1,538 $ 1,411 $ 1,970 $ 1,965 $ 2,074 01 4042 5253 Paid Time Off $ 1,966 $ 1,043 $ 382 $ 1,000 $ 2,000 $ 2,000 01 4042 6262 Equipment Repair Maint $ 17,542 $ 10,251 $ 31,153 $ 8,000 $ 15,000 $ 15,000 01 4042 6262 Equipment - Fuel $ 3,113 $ 7,904 $ 215 $ 5,000 $ 5,000 $ 5,000 01 4042 6332 Uniforms $ - $ - $ - $ 750 $ 500 $ 500
01 4042 6850 Transfer to Capital Project Equipment $ 7,435 $ 8,978 $ - $ 33,309 $ 24,957 $ 20,849 TOTAL EXPENDITURES $ 116,640 $ 120,000 $ 89,408 $ 120,000 $ 120,000 $ 120,000

PUBLIC WORKS - STREET SWEEPING
Public works administrative costs associated with the city wide street sweeping services. 29 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 01 4045 Expenditures
01 4045 5110 Salaries 246,043 $ 259,625 $ 242,816 $ 285,449 $ 298,958 $ 313,300 $ 01 4045 5235 Vehicle/Cell Allowance 420 $ 420 $ 355 $ 420 $ 420 $ 420 $ 01 4045 5250 Insurance 48,007 $ 51,312 $ 47,939 $ 58,914 $ 61,058 $ 63,638 $ 01 4045 5251 Retirement 22,335 $ 25,333 $ 23,840 $ 28,104 $ 29,537 $ 30,955 $ 01 4045 5252 Workers Comp 5,682 $ 5,576 $ 8,079 $ 11,418 $ 11,958 $ 12,532 $ 01 4045 5253 Paid Time Off 336 $ 5,187 $ 736 $ 5,000 $ 5,000 $ 5,000 $ 01 4045 6210 Electricity 67,434 $ 77,665 $ 86,594 $ 69,458 $ $ 95,000 $ 99,750 01 4045 6211 Natural Gas $ 2,771 $ - $ - $ - $ - $ -
01 4045 6212 Water $ 5,626 $ 5,988 $ 5,652 $ 9,718 $ 6,287 $ 6,601 01 4045 6251 Training & Meetings $ - $ 735 $ - $ 2,500 $ 2,000 $ 2,000 01 4045 6260 Vandalism/ Graffiti Removal $ 1,139 $ 830 $ 184 $ 3,000 $ 3,000 $ 3,000 01 4045 6262 Equipment Operation & Maint. $ 5,640 $ 16,776 $ 11,672 $ 15,000 $ 15,000 $ 15,000 01 4045 6262 Equipment - Fuel $ - $ - $ 568 $ 1,000 $ 1,000 $ 1,000 01 4045 6272 Vehicle Operation & Maint. $ 1,988 $ 9,140 $ 4,029 $ 3,500 $ 5,000 $ 5,000 01 4045 6272 Vehicle - Fuel $ 4,456 $ 2,717 $ 9,643 $ 8,000 $ 12,000 $ 12,000 01 4045 6290 Grounds Operation & Maint. $ 61,825 $ 74,592 $ 20,849 $ 75,000 $ 75,000 $ 75,000 01 4045 6291 Building Operation & Maint. $ 14,297 $ 6,103 $ 4,059 $ 8,500 $ 8,500 $ 8,500 01 4045 6295 Well Repair $ - $ 164 $ 1,541 $ - $ - $ -
01 4045 6312 Small Equip. & Tools $ 4,033 $ 8,085 $ 4,915 $ 7,000 $ 7,000 $ 7,000 01 4045 6332 Uniforms $ 3,045 $ 3,443 $ 3,693 $ 4,000 $ 4,000 $ 4,000 01 4045 6518 Electronic Equipment $ 2,481 $ - $ - $ - $ - $ - 01 4045 6663 Drinking Fountains, Bar-B-Q
Grills & Picnic Benches $ 10,242 $ 12,012 $ 5,139 $ 12,000 $ 13,000 $ 13,000 01 4045 6879 ADA Compliance $ 22,338 $ - $ - $ - $ - $ - TOTAL EXPENDITURES $ 530,138 $ 565,703 $ 482,303 $ 607,981 $ 653,718 $ 677,696

PUBLIC WORKS PARKS MAINTENANCE
Maintains the grounds at the City's five parks: Luckie Park, Veterans Park at City Hall, Knott's Sky Park, the Senior Center and the pocket park at the Historic Plaza.
30 5/7/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH AMENDED PRELIMINARY PRELIMINARY CODE ACTIVITY DETAIL ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET 35 0000 Revenues
35 00 00 4890 Workers Comp Refund 31,609 $ - $ - $ - $ - $ - $ Reserves 10,986 $ 10,105 $ 9 $ 20,000 $ 20,000 $ 20,000 $ TOTAL REVENUE 42,595 $ 10,105 $ 9 $ 20,000 $ 20,000 $ 20,000 $ 35 0107 Expenditures
35 0107 6436 Claims Settlement $ 42,595 $ 10,105 $ 9 $ 20,000 $ 20,000 $ 20,000 TOTAL EXPENDITURES $ 42,595 $ 10,105 $ 9 $ 20,000 $ 20,000 $ 20,000

RISK MANAGEMENT
Accounts for the collection of resources, mainly from PARSAC rebates, to use for SIR (Self Insured Retention) and 31 5/7/2025
DRAFT

CITY OF TWENTYNINE PALMS
2025-26 & FY FUND BUDGET GENERAL PRELIMINARY
2026-27

PRELIMINARY TWO-YEAR BUDGET - GENERAL FUND
Budget calendar:

April 4th : Strategic Planning – Departmental Update
April 5th: Strategic Planning – Priority Setting Workshop April 22nd: Budget Committee Review
May 13th: Preliminary General Fund Budget
May 27th: Proposed General Fund Budget
Preliminary Special Funds Budget
June 10th: Proposed Special Funds Budget
June 24th: Budget Meeting, if needed
May 7, 2025

PRELIMINARY TWO-YEAR BUDGET - GENERAL FUND
Outline
• Strategic planning goals – Draft
• Preliminary Projections – Summary
• Revenue Sources
• Departmental Expenditures FY 2025-26
• Departmental Expenditures FY 2026-27
• Program Revenues vs. Program Expenditures
• Sheriff’s Contract Analysis
• Pension Funded Status
• Reserves Projections
• Items Included in the Budget
• Items Not included in the budget
May 7, 2025

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Strategic planning goals – Draft

1. Financial Sustainability

2. Preserving Local Character

3. Improved Infrastructure

4. Access to Resources

5. Local Tourism

6. Community Outreach and Engagement
May 7, 2025

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Preliminary Projections - Summary
Fiscal Year
2024-25
Final Budget
Fiscal Year
2025-26
Preliminary
Budget (2)
Fiscal Year
2026-27
Preliminary
Budget (2)
Revenues and
Transfers In (1)
$14,681,790 $14,898,582 $15,503,134
Expenditures and
Transfers Out
$14,590,233 $14,685,218 $15,426,247
SURPLUS $91,557 $213,364 $76,887
(1) Includes use of reserves.
(2) Projections do not include strategic planning priorities May 7, 2025

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Animal Control Fees
Parks & Rec. Fees
Other Taxes
Other
Franchise
Planning & Building Permits (2)
Sales Tax
TOT
Property Tax
Property Tax in Lieu of VLF

0.6%

1.2%

1.7%

5.7%

6.2%

6.6%

10.5%

12.8%

22.8%

31.9%
Revenue Sources (1)
(1) Preliminary Budget FY 2025-26, excludes Transfers in and reserves.
(2) Includes Business License Fees
May 7, 2025

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Departmental Expenditures FY 2025-26
DEPARTMENT 2025-26
Preliminary
% of Total
Expenditures
City Council $80,206 0.55%
City Administration (1) $1,963,940 13.37%
Non-departmental (2) $1,674,941 11.27%
Community Development $576,468 3.93%
Code Enforcement $321,160 2.19%
Building, Safety & Eng. $593,570 4.04%
Law Enforcement $6,048,167 41.19%
Animal Control $683,142 4.65%
PW Admin/Street Sweeping $519,839 3.54%
Community Services/Parks $2,243,785 15.28%
TOTAL $14,685,218 100%
(1) Includes City Admin, City Hall, City Attorney, Finance, City Clerk, Successor Agency Administration, and IT department
(2) Includes overhead costs not easily assigned to a particular department such as liability and property insurance, emergency/safety management, lobbyist, required pension and OPEB contributions, etc.

May 7, 2025

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Departmental Expenditures FY 2026-27
DEPARTMENT 2026-27
Preliminary
% of Total
Expenditures
City Council $99,691 0.65%
City Administration (1) $2,033,134 13.18%
Non-departmental (2) $1,772,586 11.49%
Community Development $590,687 3.83%
Code Enforcement $302,580 1.96%
Building, Safety & Eng. $600,240 3.89%
Law Enforcement $6,440,515 41.75%
Animal Control $715,715 4.64%
PW Admin/Street Sweeping $535,637 3.47%
Community Services/Parks $2,335,462 15.14%
TOTAL $15,426,247 100%
(1) Includes City Admin, City Hall, City Attorney, Finance, City Clerk, Successor Agency Administration, and IT department
(2) Includes overhead costs not easily assigned to a particular department such as liability and property insurance, emergency/safety management, lobbyist, required pension and OPEB contributions, etc.

May 7, 2025

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Program Revenues vs. Program Expenditures*
$ 85,000 $ 206,500 $ 975,000
$ 683,142 $ 1,590,067 $ 1,491,198
Program Revenues
Program Expenditures
Animal Control Community Services (1) Community Development (2)
$ -
$ 200,000
$ 400,000
$ 600,000
$ 800,000
$ 1,000,000
$ 1,200,000
$ 1,400,000
$ 1,600,000
$ 1,800,000
Program Revenues Program Expenditures
*Preliminary Budget FY 2025-26
(1) Does not include Parks maintenance costs.
(2) Includes Planning, Code Enforcement, Building & Safety, Economic Development, and Engineering. May 7, 2025

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Sheriff’s Contract Analysis
FY 2025-26
Preliminary
Budget (1)
FY 2025-26
Preliminary
Budget (2)
FY 2026-27
Preliminary
Budget (1)
FY 2026-27
Preliminary
Budget (2)
Revenues and
Transfers In
$14,898,582 $14,898,582 $15,503,134 $15,503,134
Expenditures and
Transfers Out
$14,685,218 $14,793,218 $15,426,247 $15,539,647

SURPLUS/(DEFIC
IT)
$213,364 $105,364 $76,887 $(36,513)
(1) Without Sheriff Service Specialist and related costs. (2) With 1 Sheriff Service Specialist, 1 Truck and 1 Handheld Transceiver ($108K) Assumptions:
• 4% increase in the Sheriff’s contract for the second half of FY 2025-26 as a result of the current ongoing labor negotiations. • 5% increase in the Sheriff’s contract in FY 2026-27 May 7, 2025

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Discretionary Items
Description FY 2025-26 FY 2026-27
Additional prefunding pension
liability (1)
$50,000 $50,000
Community Event Activities (2) $50,000 $50,000
Contributions to Non-Profits $50,000 $50,000
Housing & Homelessness
program
$25,000 $25,000
Grant Writing Services $25,000 $25,000
Crisis Communication Services $16,000 $ 0
City’s 40 Year Anniversary $ 0 $15,000
(1) Explained in more detail in next slide.
(2) The totals do not include the projected costs for the following events: 4th of July, Rotary Carnival, JT 55, Pioneer Days, Movies in the Park, Juneteenth Event, and Veterans’ day. May 7, 2025

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Pension Funded Status
(1) The Employer Contribution amount includes the sum of the City’s normal cost based on the rate plan (e.g., Classic or PEPRA) and the Unfunded Accrued Liability (UAL) amortization payment. (2) The required UAL contribution for FY 2025-26 is expected to increase by 111% , or $74,394, for the plan, compared to the prior FY.
(3) On June 28, 2018, the City paid off its pension liability in the amount of $3,100,648. The latest May 7, 2025 CalPERS valuation indicate that the City’s pension is underfunded again by $2.5M.

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Projected Reserves
FY 2023-24
Actuals
FY 2024-25
Forecast
FY 2025-26
Preliminary (1)
FY 2026-27
Preliminary
Unassigned Fund
balance (a) $11,103,632 $10,999,231 $11,233,321 $11,310,208 Total Operating
Expenditures (b) $14,002,891 $13,833,773 $14,430,261 $15,175,398 Reserves % -
(a)/(b)
79% 80% 78% 75%
City’s Reserve
Policy
50-55% 50-55% 50-55% 50-55%
(1) Assuming no change in the operating expenditures, the City can use up to $3.3M in reserves before reaching the 55% threshold.

May 7, 2025

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Items Included in the Budget

1. Employee Cost of Living Adjustment (COLA): 2.5% FY 2025-26 and 3.0% in FY 2026-27.

2. City’s user fees: Consumer Price Index (CPI) of 2.5% applied.

3. Sheriff’s contract: 4% increase in the for the second half of FY 2025-26 as a result of the current ongoing labor negotiations. 5% increase in FY 2026-27.

4. Liability and property insurance: 20-22% increase over prior FY.

5. Pension Unfunded Accrued Liability (UAL) Contributions: 111% and 25% increase in FY 2025-26, and FY 2026-27, respectively. ($67K FY 24-25 vs. $141K FY 2025-26)

6. TOT Audit: Approximately $14K and will include both hotels and VHRs (sample basis only).

May 7, 2025

PRELIMINARY TWO-YEAR BUDGET – GENERAL FUND
Items Not included in the budget

1. Council’s Strategic Planning priorities - TBD

2. One Sheriff Service Specialist and related costs – Starting at $108K

3. Costs related to the potential ballot measure in 2025 – TBD

4. Full Cost Allocation Plan and Comprehensive User Fee Study - $40K- $50K

5. Acquisition costs and operating costs for implementing the Advance Clear Fleets regulation – TBD

6. General Plan Update - TBD
May 7, 2025

Questions/Commen
ts
May 7, 2025

Thank you
May 7, 2025

STAFF REPORT
TO: City Council
FROM: City Manager
FOR MEETING: May 13 2025
SUBJECT: Reallocation of Funds to Clean Up Blight.

RECOMMENDATION:

The City Council approve reallocating the remaining $30,510 of the Navigation and Resource Center and shower funds to residential, commercial, vacant land, and homeless camp cleanup.

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
BACKGROUND:

In 2023, the City Council allocated $32,010 to sponsor a proposed Navigation and Resource Center and $15,000 to purchase a mobile shower to service the homeless population of the City of Twentynine Palms. The proposal for the use of the shower came from a local non-governmental organization (NGO). The City would purchase the showers and the NGO would be responsible for storing, maintaining, and deploying showers. Subsequently, the NGO declined to enter into an agreement with the City for various reasons, including future maintenance costs and facility storage.

In February 2025, the City Council voted to allocate $10,000 of the original $15,000 shower funds to fund CLEP’s Feed the Need food distribution program. In April 2025, the City Council allocated $5,000 of the shower funds to the High-Desert Community Foundation for a backpack distribution program and $1,500 of the shower funds to support the Joshua Tree No-Kill Animal Shelter’s May 3, 2025, Woof Walk.

From the originally allocated $47,010, funds in the amount of $30,510 remain.

In 2023, the City spent $6,817 on cleaning up abandoned homeless encampments and remediating abandoned or neglected properties. In 2024, the City spent $55,930 on the same. So far in 2025, Code Enforcement has identified over 20 abandoned or neglected properties along with a handful of abandoned homeless encampments. The total cost of remediating these properties is expected to approximate $30,000 for each property. Currently, the Code Enforcement Department has $5,000 budgeted for clean ups.

Given the importance of reducing blight and the cost of removing the debris associated with abandoned homeless encampments, abandoned properties, and neglected properties, City Staff recommends

reallocating the remaining $30,510 of the Navigation and Resource Center and shower funds to residential, commercial, vacant land, and homeless camp cleanup.

ENVIRONMENTAL:

This agenda item will give Staff the funding to clean up and improve the Twentynine Palms' environment.

ALTERNATIVES:

The City Council could refuse this recommendation.

FISCAL IMPACT:

This would be a reallocation of already allocated funds.