Agenda packet — Victorville City Council, January 20, 2026 (part 4 of 5)

Auditor’s Responsibilities for the Audit of the Financial Statements

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

In performing an audit in accordance with GAAS, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstat ement of the financial statements, whether due to fraud or error, and design and pe rform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circ umstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting polic ies used and the reasonableness of significant accounting estimates made by management, as we ll as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

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

2 To the Board of Directors
of the Victorville Water District
Victorville, California

Page 3 ends

Required Supplementary Information

Accounting principles generally accept ed in the United States of America require that the required pension schedules and other post-employment benefit plan schedules be presented to supplement the basic financial statements.

Such information is the responsibility of m anagement and, although not a part of the basic financial statements, is required by the Govern mental Accounting Standards Board who considers it to be an essential part of financial reporting for pl acing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of managem ent about the methods of preparing the information and comparing the information for consistency with ma nagement’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assuranc e on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America requir e to be presented to supplement the basic financial statements. Such missing information, although not a pa rt of the basic financial statements, is required by the Governmental Accounting Standards Board who cons iders it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational , economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The combining statements of the District are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining statements of the District are the responsibility of management and were derived from and relates directly to the underlying accounting and other records us ed to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional proc edures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themse lves, and other additional procedures in accordance with auditing standards generally accepted in the Unit ed States of America. In our opinion, the combining statements of the District are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Report on Summarized Comparative Information

We have previously audited the District’s June 30, 2024 financial statements, and we expressed an unmodified opinion on those statements in our report dated April 10, 2025. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2024 is consistent, in all material respects, with the audited financial statements from which it has been derived. 3 To the Board of Directors
of the Victorville Water District
Victorville, California

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 6, 2026 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Emeryville, California
January 6, 2026
4 BASIC

FINANCIAL STATEMENTS
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6 Victorville Water District
Statement of Net Position
June 30, 2025
(With Comparative Data for June 30, 2024)
2025 2024
ASSETS
Current Assets:

Cash and investments 87,916,131 $ 85,120,299 $ Cash with fiscal agent 877,517 836,588 Accounts receivable 6,564,940 5,640,186 Interest receivable - 371,279 Due from other governments 24,569 28,707 Inventory 1,366,384 1,604,610
Total current assets 96,749,541 93,601,669 Noncurrent:

Deposits and prepaid items 107,195 51,763 Capital assets:

Nondepreciable 39,013,730 37,054,907
Depreciable capital assets 289,137,104 285,159,860 Accumulated depreciation (171,170,032) (165,021,497) Depreciable or amortizable, net 117,967,072 120,138,363 Total noncurrent assets 157,087,997 157,245,033 Total assets 253,837,538 250,846,702

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows - OPEB related 1,881,231 2,287,149 Deferred outflow - pension related 5,857,836 6,305,417 Total deferred outflows of resources 7,739,067 8,592,566

LIABILITIES

Current liabilities:

Accounts payable 2,072,760 2,857,836
Interest payable 145,319 153,385
Deposits payable 1,799,099 1,748,554
Compensated absences - due within one year 425,241 561,302 Total OPEB liability - due within one year 537,320 338,738 Long-term liabilities - due within one year 465,000 454,620 Total current liabilities 5,444,739 6,114,435 Noncurrent liabilities:

Total OPEB liability 11,106,949 11,690,747 Net pension liability 18,462,040 17,610,716 Long-term debt 6,858,083 7,329,311
Compensated absences 691,178 154,792 Total noncurrent liabilities 37,118,250 36,785,566 Total liabilities 42,562,989 42,900,001

DEFERRED INFLOWS OF RESOURCES

Deferred inflows - OPEB related 3,168,283 3,234,388 Deferred inflows - pension related 357,648 851,599 Total deferred inflows of resources 3,525,931 4,085,987

NET POSITION
Net investment in capital assets 150,169,250 149,171,073 Unrestricted 65,318,435 63,282,207
Total net position 215,487,685$ 212,453,280$ See accompanying Notes to Basic Financial Statements.
7 Victorville Water District
Statement of Revenues, Expenses and Changes in Net Position For the year ended June 30, 2025
(With Comparative Data for the year ended June 30, 2024) 2025 2024
OPERATING REVENUES:

Utility sales 31,336,225$ 29,871,480 $
Meter and service fees 12,957,663 11,326,765 Pass-thru charges for services 1,167,675 1,149,312 Fines and forfeitures 650,365 386,446 Arsenic surcharge 303,997 301,506
Other 570,852 243,233
Total operating revenues 46,986,777 43,278,742 OPERATING EXPENSES:

Personnel services 13,034,357 12,737,893 Maintenance and operations 24,580,644 19,532,107 Production costs 5,472,548 6,411,631
Pass-thru production costs 1,138,475 1,178,512 Depreciation and amortization 6,213,339 6,570,505 Total operating expenses 50,439,363 46,430,648 Operating income (loss) (3,452,586) (3,151,906) NONOPERATING REVENUES (EXPENSES):

Taxes 1,624,692 1,567,817
Investment income 4,846,425 5,013,463
Interest expense (1,423,832) (1,387,860) Gain on disposal of assets 9,326 - Other nonoperating expenses (98,879) (2,024,057) Total nonoperating revenues (expenses) 4,957,732 3,169,363 Income before contributions and transfers 1,505,146 17,457 CONTRIBUTIONS AND TRANSFERS:

Connection fees 1,028,886 4,242,660
Alternate water source fees 70,928 484,220 Capital restricted use fees 595,214 587,276 Capital contributions 175,287 -
Transfers in - 25,713
Total contributions and transfers 1,870,315 5,339,869 Change in net position 3,375,461 5,357,326 NET POSITION:

Beginning of year 212,453,280 207,095,954
Restatements - due to implementation of GASB 101 (341,056) - Beginning of year, as restated 212,112,224 207,095,954 End of year 215,487,685$ 212,453,280$
See accompanying Notes to Basic Financial Statements.
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9 Victorville Water District
Statement of Cash Flows
For the year ended June 30, 2025
(With Comparative Data for the Year Ended June 30, 2024) 2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 47,888,142 $ 45,927,271 $ Cash payments to employees for services (12,215,537) (11,592,107) Cash payments to suppliers for goods and services (31,793,949) (29,402,164) Net cash provided by (used in) operating activities 3,878,656 4,933,000 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash received from other governments 1,624,692 1,567,817 Transfers in - 25,713
Net cash provided by (used in) noncapital financing activities 1,624,692 1,593,530 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Cash received from the sale of capital assets 9,326 - Cash payments to acquire capital assets and other assets (6,000,871) (3,447,756) SBITA principal payments (9,655) (9,464)
Principal paid on capital-related debt (451,193) (431,193) Interest paid on capital-related debt (1,431,898) (1,395,504) Net cash provided by (used in) capital and related financing activities (7,884,291) (5,283,917) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 5,176,775 4,891,105
Net cash provided by (used in) investing activities 5,176,775 4,891,105 Net cash flows 2,795,832 6,133,718
CASH AND INVESTMENTS - Beginning of year 85,120,299 78,986,581 CASH AND INVESTMENTS - End of year 87,916,131$ 85,120,299$ 10 See accompanying Notes to Basic Financial Statements.

Victorville Water District
Statement of Cash Flows (Continued)
For the year ended June 30, 2025
(With Comparative Data for the Year Ended June 30, 2024) 2025 2024

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) (3,452,586) $ (3,151,906) $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 6,213,339 6,570,505
Nonoperating miscellaneous revenue (expense) and capital contributions 1,771,436 3,290,099 (Increase) decrease in assets and deferred outflows:

Accounts receivable (924,754) (463,405)
Due from other governments 4,138 (8,761)
Inventories 238,226 (737,676)
Prepaid deposits (55,432) (23,457)
Deferred outflows - OPEB 405,918 420,465
Deferred outflows - pension 447,581 (209,939)
Increase (decrease) in liabilities and deferred inflows:

Accounts payable (785,076) (1,518,781)
Prepaid water connection fees - (217,489)
Deposits payable 50,545 48,085
Compensated absences 59,269 42,912
Total OPEB liabilty (385,216) 367,522
Net pension liability 851,324 1,453,978
Deferred inflows - OPEB (66,105) (750,950)
Deferred inflows - pension (493,951) (178,202)
Net cash provided by (used in) operating activities 3,878,656$ 4,933,000$ 11 This page intentionally left blank
12 NOTES TO BASIC

FINANCIAL STATEMENTS

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14 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The basic financial statements of the Victorville Water District (District) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the District’s accounting policies are described below.

A. Description of the Reporting Entity

On August 15, 2007, the Victor Valley Water District and the Baldy Mesa Water District were consolidated into a subsidiary district of the City of Victorville (t he City), known as the Victorville Water District (the District), per Resolution No. 2977 of the Executive Officer of the Local Agency Formation Commission (LAFCO) of San Bernardino County, which adopted a change of organization without election. All of the liabilities including debt obligations of the Victor Valley Water District and the Baldy Mesa Water District were assumed by this subsidiary district and the City upon consolidation. Upon consolidation of the two districts, the City consolidated the operations and activities of its Water Department and Water Funds into the District to serve all of the water customers of the City under this District. The basic operations of the District are financed by user charges plus capital contributions to finance growth of the water delivery system. The District is governed by a five-member Bo ard of Directors (the City Council), each holding staggered four-year terms.

The District is an integral part of the reporting entity of the City of Victorville (the City) and is reflected as a blended component unit within the City of Vict orville. Blended component units are, in substance, part of the primary government’s operations, even though they are legally separate entities. The District fund has been included within the scope of the basi c financial statements of the City because the City Council is the governing board and has financial accountability over the operations of the District. Only the District fund is included herein and these financial statements, therefore, do not purport to represent the financial position or results of operations of the City of Victorville, California.

B. Basic Financial Statements

The basic financial statements are comprised of the st atement of net position, the statement of revenues, expenses, and changes in net position, the statement of cash flows, and the notes to the basic financial statements.

C. Basis of Accounting, Measurement Focus, and Financial Statement Presentation

The District reports its activities as an enterprise fu nd (proprietary fund type), which is used to account for operations that are financed and operated in a manner similar to a private business enterprise, where the intent of the District is that the costs of prov iding water to its customers on a continuing basis be financed or recovered primarily through user charges (water sales and services), capital grants and similar funding.

15 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued

C. Basis of Accounting, Measurement Focus, and Financial Statement Presentation, Continued

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as economic resources. The basis of accounting indicates the timi ng of transactions or events for recognition in the financial statements.

Proprietary funds are presented usin g the economic resources measurement focus. This means that all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statement of net position.

Proprietary funds are presented using the accrual ba sis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered, regardless of when the related cash flows take place. Amounts paid to acquire capital assets are capitalized as assets.

Proceeds of long-term debt and acquisitions under leases and SBITAs are recorded as a liability. Amounts paid to reduce long-term indebtedness are reported as a reduction of the related liability. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses.

The District distinguishes operating revenues and expenses from nonoperating items. Operating revenues, such as water sales and se rvice charges that include utility sa les, meter and service fees, pass- thru charges, fines and forfeiture s, arsenic surcharge, and other reim bursements, result from exchange transactions associated with the prin cipal activities of the District. Exchange transactions are those in which each party receives and give s up essentially equal values. Nono perating revenues, such as taxes and investment income, result from nonexchange transactions, in which, the District gives (receives) value without directly receiving (giving) value in exchange.

Operating expenses, such as the cost or providing water, include the personnel services, maintenance and operations, productions costs, pass- thru production costs, and deprec iation and amortization on capital assets. All expenses not meeting this definition, such as interest expense, are reported as nonoperating expenses.

D. Cash and Investments

Investments are reported in the accompanying statement of net position at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur du ring a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments.
16 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued

E. Cash Equivalents

For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments with original maturities of three months or less from the date of acquisition that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in intere st rates. Cash equivalents include the cash and investments held by a fiscal agent.

F. Accounts Receivable, Net

The District extends credit to customers in the no rmal course of operations. When management deems customer accounts uncollectible, the District uses the allowance method for the reservation and directly write-off of those accounts.

G. Inventory

The District uses the consumption method of accounting for inventories. Inventory consists primarily of water meters, pipe and pipe fittings for construction, and repair to the District’s water transmission and distribution system. Materials and supplies are valued at cost using a weighted average method.

H. Prepaid Deposits

Certain payments to vendors reflect costs or deposits applicable to future accounting periods and are recorded as prepaid items in the basic financial statements utilizing the consumption method.

I. Capital Assets

Tangible capital assets are valued at cost where hi storical records are available and at an estimated historical cost where no historical records exist. Donated tangible capital assets are recorded at estimated acquisition value at the date of do nation. SBITA assets are initially me asured as the sum of the present value of payments expected to be made during th e subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term . SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets.

The District capitalizes all assets wi th an initial individual cost of more than $5,000 and a useful life in excess of one year. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend the life are not capitalized.
17 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued

I. Capital Assets, Continued

Depreciation is computed utilizing the straight-line method over the following useful lives:

J. Customer Deposits

Based on a customer’s credit, the District may require a deposit deemed reasonable by the District. These deposits are held to pay off close out bills or to cover delinquent payments.

K. Compensated Absences

A liability is recorded for unused vacation and similar compensatory leave balances since the employees’ entitlement to these balances is attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

A liability is recorded for unused sick leave balances that have been earned for service previously rendered by employees, along with the related costs.

Compensated absences (unpaid vacation and sick leave) are recorded in the statements of net position.

Liabilities for leave are assumed to be accrued using the First In, First Out (FIFO) method, meaning the leave that was earned first is used or paid first. Th e City has recorded a liability only when it is more likely than not the leave will be taken or paid for. All compensated absences and related costs are reported as incurred in the governmental-wide and proprietar y fund financial statements, as these amounts will be recorded as fund expenditures in the year in which they are paid or become due on demand to terminated employees. The liability for compensated absences is determined annually.

The balance of unpaid vacation and vested sick leave at year-end is recorded as a long- term liability in the financial statements.

Buildings and Improvements 10 to 50 Years
Computer and Communications 5 Years
Furniture and Equipment 3 to 7 Years
Infrastructure:

Transmission and Distribution Systems 40 Years
Source of Supply – Wells 10 to 40 Years
Water Treatment Systems 5 to 10 Years
Intangibles 5 to 25 Years
Vehicles 8 to 15 Years
18 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Deferred Outflows and Deferred Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense) until that time. The category of deferred outflow of resources reported in the statement of net position is related to pension and other postemployment benefits, which are more fully discussed in Notes 6 and 5, respectively.

In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The District’s deferred inflows of resources reported on the statement of net position relate to pension and other postemployment benefits, which are more fully discussed in Notes 6 and 5, respectively.

M. Prepaid Water Connection Fees
Prepaid connection fees were received before year-end but will not be earned until the properties are developed and connected to the District’s system.

N. Capital Contributions
Capital contributions represent cash and capital asset additions contributed to the District through the collection of AB-1600 connection fees, by property owners, granting agencies, or real estate developers desiring services that require capital expenditures or capacity commitment.

O. Net Position
Net Position is classified in the following categories:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt (including premiums and discounts) that attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – This amount is restricted by enabling legislation (such as external creditors, grantors, contributors, laws, or regulations of other governments).

Unrestricted Net Position – This amount is all of the net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s practice to consider restricted net position to have been depleted before unrestricted net position is applied, unless otherwise directed by Council. 19 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued

P. Pensions

For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the District’s California Public Employees’ Retirement System (CalPERS) pl ans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS.

For this purpose, benefit payments (including refu nds of employee contributions) are recognized when currently due and payable in accordanc e with the benefit terms. Investments are reported at fair value.

CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

Q. Prior Year Data

Selected information regarding the prior year had been included in the accompanying financial statements. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the District’s prior year financial statements, from which this selected financial data was derived.

R. Estimates

The presentation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of asse ts, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

S. Adoption of New Accounting Standards
In 2025, the District adopted new accounting st andards in order to conform with the following Government Accounting Standards Board Statements:
 GASB Statement No. 101, Compensated Absences - The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The District has recognized accruals for compensated time, administrative leave, and vacation. Beginning net po sition and compensated absences balances as of June 30, 2024, were restated upon implementation of this Statement. Please refer to Notes 4 and 7 for more details.
 GASB Statement No. 102, Certain Risk Disclosures - The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or co nstraints. The District had no adjustments or new disclosures as a result of this Statement.

20 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS

Cash and investments as of June 30, 2025, are classified in the accompanying financial statements

The following is a summary of the cash and investments at June 30, 2025:

A. Investments Pool of the City of Victorville

The District’s equity in the cash and investment City pool is managed by the City of Victorville. The District is a voluntary participant in that pool. Th is pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City of Victorville. The District has not adopted an investment policy separate from that of the City of Victorville. The fair value of the District’s investment in this pool is reported in the accompanying financial statements at amounts based upon the District’s pro-rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the a ccounting records maintained by the City, which are recorded on an original cost basis.

B. Investments Authorized by the California Government Code and the City’s Investment Policy

The City adopts the investment policy for the District. The table on the following page outlines the type of investment that are authorized for the District under the California Government Code and the City’s investment policy. The table also highlights certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not in clude investments of debt proceeds held by bond trustees which are governed by the provisions of the City’s debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

Statement of Net Position:

Cash and Investments 87,916,131 $
Cash and Investments with Fiscal Agent 877,517
Total Cash and Investments 88,793,648 $
Deposits with Financial institutions 101,159 $
Deposits Held in City Pool 53,334,655
Investments 35,357,834
Total Cash and Investments 88,793,648 $
21 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued

B. Investments Authorized by the California Government Code and the City’s Investment Policy, Continued

C. Investments Authorized by Debt Agreements

Investments of debt proceeds held by bond trustee ar e governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the District’s investment policy.

The following table identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.

Authorized by Maximum Maximum
Investment Type Investment Maximum Percentage Investment Authorized by State Law Policy Maturity* of Portfolio* in One Issuer Local Agency Bonds Yes 5 Years 70% None
U.S. Treasury Obligations Yes 5 Years 70% None
U.S. Agency Securities Yes 5 Years 75%** None
Banker's Acceptances No 180 Days 40% 30%
Commercial Paper - Nonpooled Funds No 270 Days 25% 10%
Commercial Paper - Pooled Funds No 270 Days 40% 10%
Negotiable Certificates of Deposit Yes 2 Years 25% None Repurchase Agreements No 1 Year 20% of Base Value None
Reverse Repurchase Agreements No 92 Days 30% None
Medium-Term Notes No 5 Years 20%* None
Mutual Funds*** Yes 5 Years 20%* 10%
Money Market Mutual Funds*** Yes 5 Years 20% None
Mortgage Pass-Through Securities No 5 Years 20% None
County Pooled Investment Funds No N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None $75M
JPA Pools (Other Investment Pools) No N/A None None
* Based on state law requirements or investment policy requirements, whichever is more restrictive. ** Ginnie Mae is not to exceed 20% of the total portfolio. *** Fund must be an AAA rated Government or U.S. Treasury money fund.

Authorized Maximum Maximum % Investment
Investment Type Maturity Allowed in One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 360 Days None None
Commercial Paper 270 Days None None
Money Market Mutual Funds None None None
Repurchase Agreements None None None
Investment Contracts NoneN oneN one
Certificate of Deposit None None None
Local Agency Investment Fund (LAIF) None None None
California Common Law Trust Shares None None None
22 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued

D. Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the District manages its exposure to interest rate risk is by purchasing a combination of shorter- te rm and longer-term investments and by timing cash flows from maturities so that a portion of the portfo lio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the District’s investments (including investments held by bond trustee) to market interest rate fluctu ations is provided by the following table that shows the distribution of these investments by maturity:

Remaining Maturities
(in Months)
Investment Type Total Within 12 60+
LAIF 34,480,317 $ 34,480,317 $ - $ Held by Bond Trustee:

Guaranteed Investment
Contract (GIC)* 816,500 - 816,500 Money Market Mutual Funds 61,017 61,017 - Total 35,357,834 $ 34,541,334 $ 816,500 $ * The District's GIC is with Financial Security Assurance (FSA). The contract required FSA to deposit cash, governmental securities, or governmental bonds as collateral with Bank of New York, at a value of at least 100%, 104%, or 105%, respectfully, of the investment balance the termination of the investment contract and release of collateral would occur in the event of default by FSA. As of June 30, 2025, FSA was not in default and the value of the collateral met the requirements. 23 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued

E. Disclosures Relating to Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationa lly recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California

Government Code, the City’s investment policy, or debt agreements, and the actual Standard & Poor’s rating as of year-end for each investment type.

* The District's GIC is with Financial Security Assurance (FSA). The contract required FSA to deposit cash, governmental securities, or governmental bonds as collateral with Bank of New York, at a value of at least 100%, 104%, or 105%, respectively, of the investment balance. the termination of the investment contract and release of collateral would occur in the event of de fault by FSA. As of June 30, 2025, FSA was not in default and the value of the collateral met the requirements.

The investment policy of the District contains no limit ations on the amount that can be invested in any one issuer beyond that stipulated by the Californi a Government Code. The District has no investments in any one issuer (other than LAIF and money market mutual funds) that represent 5% or more of the City’s investments.

Minimum
Investment Type Total Legal Rating AAA Not Rated
LAIF 34,480,317 $ N/A - $ 34,480,317$ Held by Bond Trustee:

Guaranteed Investment
Contract (GIC)* 816,500 N/A - 816,500 Money Market Mutual Funds 61,017 AAA 61,017 - Total 35,357,834 $ 61,017 $ 35,296,817$ Ratings as of Year-End
24 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued

F. Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).

The market value of the pledged securities in the co llateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure District deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2025, the District’s deposits (bank balances) were insured by the federal depository insurance limits or collateralized as required under California Law.

For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.

G. Investment in State Investment Pool

The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the state of California. The fair value of the District’s investment in this pool is reported in the accompanying financial statements at amounts based upon the District’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF.

25 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued

H. Fair Value Measurements

The District categorizes its fair value measuremen t within the fair value hierarchy established by accounting principles generally ac cepted in the United States of America. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements ) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:

Level 1 – Inputs to the valuation methodology are u nadjusted quoted prices for identical assets or liabilities in active markets.

- Quoted prices for similar assets or liabilities in active markets. - Quoted prices for identical or similar assets or liabilities in markets that are inactive. - Inputs other than quoted prices that are observable for the asset or liability. - Inputs that are derived principally from or corroborated by observable market data by correlation of other items.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurements. These unobservable inputs reflect the District’s own assumptions about the inputs market participants would use in pricing the asset or liability (including a ssumptions about risk).

These unobservable inputs are developed base d on the best information available in the circumstances and may include the District’s own data.

The District’s investments in LAIF and money mark et mutual funds (held by bond trustee) are not subject to the fair value measuremen t hierarchy. The District’s investment in the GIC are included in Level 3 since they are not actively traded. To value the GIC, the District verified the collateral required was held at a minimum of 100% of the value reported above and recorded the investment at that amount. 26 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

3. CAPITAL ASSETS

For the year ended June 30, 2025 the City’s capital asset activity was as follows:

Depreciation and amortization expense for the District was $6,213,339 for the year ended June 30, 2025.

Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
Nondepreciable Assets:

Land 8,902,047$ -$ -$ 8,902,047$ Intangibles 21,581,836 632,826 - 22,214,662 Idle Assets 3,017,958 - - 3,017,958 Land Improvements 536,342 - - 536,342 Construction in progress 3,016,724 2,426,299 (1,100,302) 4,342,721 Total Nondepreciable Assets 37,054,907 3,059,125 (1,100,302) 39,013,730 Depreciable Assets:

Buildings and Improvements 27,821,867 473,576 - 28,295,443 Computer and Communication 855,218 - - 855,218 Furniture and Equipment 38,437,382 76,168 - 38,513,550 Infrastructure 211,718,567 3,010,365 - 214,728,932 Intangibles 1,542,724 - - 1,542,724 Vehicles 4,753,450 481,939 (64,804) 5,170,585 Total Depreciable Assets 285,129,208 4,042,048 (64,804) 289,106,452 Less Accumulated Depreciation:

Buildings and Improvements (12,345,245) (688,746) - (13,033,991) Computer and Communication (693,025) (31,662) - (724,687) Furniture and Equipment (32,631,395) (616,867) - (33,248,262) Infrastructure (114,789,925) (4,539,937) - (119,329,862) Intangibles (1,542,725) - - (1,542,725) Vehicles (3,006,400) (325,910) 64,804 (3,267,506) Total Accumulated Depreciation (165,008,715) (6,203,122) 64,804 (171,147,033) Total Depreciable Assets, Net 120,120,493 (2,161,074) - 117,959,419 Subscription Based Information
Technology Arrangement (SBITA)
Assets Being Amortized:

SBITA Assets 30,652 - - 30,652 Accumulated Amortization (12,782) (10,217) - (22,999) Total SBITA Assets,
Being Amortized, Net 17,870 (10,217) - 7,653 Total Capital Assets Being
Depreciated or Amortized, Net 120,138,363 (2,171,291) - 117,967,072 Capital Assets, Net 157,193,270$ 887,834 $ (1,100,302)$ 156,980,802$ 27 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES

A summary of changes in long-term liabilities for the year ended June 30, 2025, is noted below:

A. SBITAs

The District has entered into subscription based- information technology arrangements (SBITAs) for various software licenses. The SBITA arrangements expire at various dates through 2025 and do not provide for renewal options. The interest rates vary from 2.4% to 2.7% and there are no variable payments.

The SBITA was fully paid off in FY2025.

Right-to-use assets acquired through SBITAs, net of accumulated amortization, are reported in Note 3, Capital Assets.

B. 2006 Certificates of Participation

On March 1, 2006, the City of Victorville’s Baldy Mesa Water District issued 2006 Certificates of Participation. The proceeds were used to finance public improvements within the Baldy Mesa Water District service area.

The Certificates of Participation had a stated interest rates ranging from 3.20% to 5.00%. The annual debt service is a special limited obligation of the District payable from and secured by a pledge of and lien on the net revenues of the District - see end of note. Principal and interest payments are due each August 1 and interest only payments are due each February 1. The amount of Certificates of Participation outstanding at June 30, 2025 is $7,255,000.

Balance Restatement Balance Due Within
July 1, 2024 (GASB 101) Additions Retirements June 30, 2025 One Year Other Long-Term Liabilities:

Compensated Absences 716,093$ 341,056$ 426,591$ (367,321)$ 1,116,419$ 425,241$ SBITAs 9,620 - - (9,620) - - Other Debt:
2006 Certificate of Participation 7,700,000 - - (445,000) 7,255,000 465,000 Unamortized Discounts/Premiums 74,311 - - (6,228) 68,083 - Total 8,500,024$ 341,056$ 426,591$ (828,169)$ 8,439,502$ 890,241$ 28 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued

B. 2006 Certificates of Participation, Continued

The annual requirements to amortize outstanding debt of the District as of June 30, 2025, are as follows for each fiscal year ending June 30:

C. Rate Covenant

The 2006 Certificates of Participation require that the Baldy Mesa Water District to generate sufficient net revenues which are at least equal to 110% of the amount of the installment payments and Parity Obligation coming due and payable in each fiscal year. The 2006 Certificates of Participation were issued before Baldy Mesa and Victor Valley Water District were consolidated into Victorville Water District. The City performed the calculation that demonstrated compliance with rate covenant for the fiscal year ended June 30, 2025. The calculation was prepared using revenues and the proportionate expenses applicable to the Baldy Mesa Water District.

D. Pledged Revenues

The District has a debt issuance outstanding that is collateralized by the pledging of certain revenues. The amount and term of the remainder of this commitment is indicated in the debt service to maturity table presented previously. The purpose for which the proc eeds of the related debt issuance was utilized are disclosed in the debt description noted previously.

For the current year, pledged gross revenue (or net of certain expenses where so required by the debt agreement) as a percentage of the debt service payments are indicated in the table below:

Year Ending
June 30, Principal Interest
2026 465,000 $ 338,511 $
2027 485,000 317,849
2028 505,000 295,938
2029 530,000 272,650
2030 555,000 248,238
2031-35 3,200,000 794,500
2036-37 1,515,000 76,625
Subtotal 7,255,000 2,344,311 $
Premium 68,083
Total 7,323,083$
Certificates of Participation
Annual Amount Annual Debt
of Pledged Service Payment Pled ged
Revenue (Net (of All Debt Revenue as
of Expenses, Secured b y a Percentage
Description of Pled ged Revenue Where Required) This Revenue) of Debt Service Net Revenues Pledged by the
District for the 2006
Certificates of Participation 1,849,600$ 803,304$ 43% 29 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. OTHER POST EMPLOYMENT BENEFITS (OPEB)

A. Plan Description

The District Plan provides medical benefits to eligible retired Water District employees and beneficiaries in accordance with various labor agreements. The plan covers employees who retire directly from the District with five years of service. The District Plan also provides Dent al and Vision benefits to eligible former Water District employees with 15 years of serv ice. The District also pa ys life insurance premium for eight Water District retirees and no benefit is av ailable for future retirees . The District provides a contribution up to a certain amount (a portion of the Health Net HMO single premium). The percentage varies based on years of service.

B. Funding Policy

The contribution requirements of plan members and the District are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you-go basis (i.e., as medical insurance premiums become due). The District has not established a trust for the purpose of holding assets accumulated for plan benefits.

C. Employees Covered

As of the June 30, 2024 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

D. Contributions
The District Plan and its contribution requiremen ts are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the District and the bargaining units.

The annual contribution is based on the year’s retiree medical premiums (pay-as-you-go basis). For the fiscal year ended June 30, 2025, the District’s cash contribution s were $275,972 for current premiums, administrative costs of $811, and the estimated implied subsidy was $66,000 resulting in total payments of $342,783.

Active employees 87
Inactive employees or beneficiaries currently
receiving benefit payments 37
Inactive employees entitled to but not yet
receiving benefit payments 8
Total 132
30 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued

E. OPEB Liability

The District’s total OPEB liability was measured as of June 30, 2024 and was determined by an actuarial valuation dated June 30, 2024.

F. Discount Rate

The discount rate used to measure the total OPEB lia bility was 3.93%. The discount rate is determined based on the Bond Buyer 20-Bond Index since the District has not established a trust.

G. Change in Actuarial Assumptions

The following actuarial assumption changes occurred form the measurement periods ended June 30, 2023 to 2024:

 The discount rate changed from 3.65% to 3.93% based on changes in the index.  Inflation was same as prior year at 2.50%.
 The healthcare trend rate was updated as follows : Non-Medicare rate decreased from 8.5% to

7.9%, Medicare (Non-Kaiser) decreased from 7.5% to 6.9%, and Medicare (Kaiser) decreased from

6.25% to 5.65%.
 Demographic assumptions were updated from th e CalPERS 1997-2015 Experience Study to the CalPERS 2000-2019 Experience Study.
 Mortality improvement was updated from Scale MP-2020 to Scale MP-2021.

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 3.93%
Inflation 2.50%
Salary Increases 2.75% per annum, in aggregate
Investment Rate of Return N/A
Mortality, Retirement, Disa bility,
and Termination 2000-2019 Experience Study
Mortality Improvement Postretirement mortality projected fully generational with Scale MP-2021
Healthcare Trend Rate Non-Medicare: 7.9% for 2026, decreasing to an ultimate
rate of 3.45% in 2076
Medicare (Non-Kaiser): 6.9% for 2026, decreasing to an
ultimate rate of 3.45% in 2076
Medicare (Kaiser): 5.65% for 2026, decreasing to an
ultimate rate of 3.45% in 2076
31 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued

H. Changes in the Total OPEB Liability

The changes in the total OPEB liability for the District Plan are as follows:

I. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate

The following presents the total OPEB liability of the Di strict if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

J. Sensitivity of the Total OPEB Liability to Changes in Health Care Cost Trend Rates

The following presents the total OPEB liability of the District if it were calculated using health care cost trend rates that are one percentage point lower (Non-Medicare: 6.9% for 2026 decreasing to 2.45% in 2076; Medicare (Non-Kaiser): 5.9% for 2026, decreasing to an ultimate rate of 2.45% in 2076; Medicare (Kaiser): 4.65% for 2026, decreasing to an ultimate rate of 2.45% in 2076) or one percentage point higher (Non-Medicare: 8.9% for 2026 decreasing to 4.45% in 2076; Medicare (Non-Kaiser): 7.9% for 2026, decreasing to an ultimate rate of 4.45% in 2076; Medicare (Kaiser): 6.65% for 2026, decreasing to an ultimate rate of 4.45% in 2076) than the current rate:

Total OPEB
Liability
Total OPEB Liability at June 30, 2023 (MD) 12,029,485$
Service Cost 454,907
Interest 449,831
Differences Between Expected and Actual Experience (480,564) Changes of Assumptions (488,896)
Benefit Payments (320,494)
Net Changes During 2023-2024 (385,216)
Total OPEB Liability at June 30, 2024 (MD) 11,644,269$
1% Decrease Current Rate 1% Increase
-2.93% -3.93% -4.93%
13,535,539$ 11,644,269$ 10,115,347$ Discount Rate
1% Decrease Current Rate 1% Increase
9,930,989$ 11,644,269$ 13,830,358$ Healthcare Trend Rate
32 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued

K. Recognition of Deferred Outflows and Deferred Inflows of Resources

Gains and losses related to changes in the tota l OPEB liability are recognized in OPEB expense systematically over time. Amounts are first recogniz ed in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as de ferred outflows and deferred inflows of resources related to OPEB and are recognized in future OPEB expense.

The recognition period differs depending on the source of the gain or loss:

L. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 2025, the District recognized OPEB expense of $297,380. As of the fiscal year ended June 30, 2025, the District reported deferred outflows/inflows of resources related to OPEB from the following sources:

The $342,783 reported as deferred outflows of reso urces related to contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2026. Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follows:

Net Difference Between Projected and Actual
Earnings on OPEB Plan Investments
Plan Investments 5 Years
All Other Amounts Expected avera
ge remainin g service
lifetime (EARSL) (7.7 Years at
June 30, 2024 measurement date)
Deferred Outflows Deferred Inflows
of Resources of Resources
Employer Contributions Subsequent to the
Measurement Date
Differences Between Expected and Actual Experience 621,946 (975,355) Changes of Assumptions 916,502 (2,192,928) Total 1,881,231 $ (3,168,283) $ -$ 342,783$
Measurement Period
Deferred
Outflows/(Inflows)
Ended June 30, of Resources
2026 (395,355)$
2027 (139,517)
2028 (198,247)
2029 (299,941)
2030 (332,016)
Thereafter (264,759)
Total
33 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued

M. Payable to the OPEB Plan

At June 30, 2025, the District had no outstanding am ount of contributions to the OPEB plan required for the year ended June 30, 2025.

6. PENSION PLAN

A. General Information about the Pension Plans

Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiple-employer defi ned benefit pension plans administered by the California Public Employees’ Retirement System (C alPERS), which acts as a common investment and administrative agent for its participating member employers. The District’s share of the net pension liability is reported as a cost-sharing plan in these financial statements. Benefit provisions under the Plan are established by State statute and Local Governme nt resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members, who must be public employ ees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with fi ve years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following: the Basic Death Be nefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefits in effect as of the measurement period ended June 30, 2025, are summarized as follows:

Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.5%@55 2.0%@62
Benefit Vesting Schedule 5 Years 5 Years
of Service of Service
Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 to 55 52 to 67
Required Employee Contribution Rates 8.00% 7.75%
Required Employer Contribution Rates:

Normal Cost Rate 11.23% 11.23%
Payment of Unfunded Liability 1,240,281$ N/A
Miscellaneous
34 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued

A. General Information about the Pension Plans, Continued

Contributions
Section 20814(c) of the California Public Employees ’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The Authority is required to contribute the difference between the actuarially determined rate and the contribution rate of employees . Authority contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension pl an terms as plan member contributions requirements are classified as plan member cont ributions. For the fiscal year ende d June 30, 2025, the District made contributions of $2,135,455 to the plan.

B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions

Actuarial Assumptions
The total pension liability for the Miscellaneous Plan for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with standard update procedures used to roll forward the total pension liability to June 30, 2024. The total pension liability for the Miscellaneous Plan was based on the following assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal
Cost Method
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases (1)
Mortality Rate Table (2)
Post Retirement Benefit Income (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.
(3) The lesser of contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter. 35 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued

B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued

Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return , CalPERS took into account both short- term and long-term market return expectations. Using historical returns all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach.

The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions fr om employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investme nts was applied to all periods of projected benefit payments to determine the total pension liability.

Assumed
Asset Real Return
Asset Class (a) Allocation (a) (b)
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84
Private Equity 13.00% 7.28
Treasury 5.00% 0.27
Mortgage-backed Securities 5.00% 0.50
Investment Grade Corporates 10.00% 1.56
High Yield 5.00% 2.27
Emerging Market Debt 5.00% 2.48
Private Debt 5.00% 3.57
Real Assets 15.00% 3.21
Leverage -5.00% (0.59)
Total 100.00%
(a) An expected inflation of 2.30% used for this period (b) Figures are based on the 2021 Asset Liab ility Management Study 36 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued

B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued

Proportionate Share of Net Pension Liability – City’s Miscellaneous Agent Multiple-Employer Plan Allocation to the District
The District’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The District’s proportionate share of the net pension liability was based on a projection of the District’s long-term share of contributions to the Miscellaneous Plan relative to the projected contributions of the City, actuarially determined.

The District’s proportionate share of the net pens ion liability for the Miscellaneous Plan as of the measurement date ended June 30, 2023 and 2024, was as follows:

Pension Expense and Deferred Outflows and Inflows of Resources For the year ended June 30, 2025, the District recognized pension expense of $3,249,629 for the Miscellaneous Plan. At June 30, 202 5, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Miscellaneous Plan:

$2,135,455 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2026. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability Proportionate
(a) (b) (c) = (a) - (b) Share
Balance at June 30, 2023 (MD) 60,704,859$ 43,094,143 $ 17,610,716 $ 23.60% Balance at June 30, 2024 (MD) 65,372,414 46,910,374 18,462,040 23.15% Net Changes During 2023-24 4,667,555$ 3,816,231 $ 851,324 $ -0.45% Increase (Decrease)
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension Contributions Subsequent to the
Measurement Date 2,135,455 $ - $
Changes of Assumptions 402,432 - Differences Between Expected and Actual Experience 2,587,791 (357,648) Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 732,158 - Total 5,857,836 $ (357,648) $
37 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued
B.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Pension Expense and Deferred Outflows and Inflows of Resources, Continued Other amounts reported as deferred outflows of reso urces and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Sensitivity o
f the Net Pension Liability to Changes in the Discount Rate The following presents the District’s proporti onate share of the net pension liability for the Miscellaneous Plan, calculated using the discount ra te for the Plan, as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separate issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2025, the District had no outstanding amount of contributions to the Miscellaneous Plan required for the year ended June 30, 2025.

Deferred
Measurement Period Inflows of
Ended June 30, Resources
2025 1,179,064 $
2026 2,086,912
2027 361,082
2028 (262,325)
2029 -
Thereafter -
1% Decrease Current Rate 1% Increase
-5.90% -6.90% -7.90%
27,845,093$ 18,462,040$ 10,777,940$
Discount Rate
38 Victorville Water District
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. RESTATEMENT OF NET POSITION
During the fiscal year en
ded June 30, 2025, the District recorded the following restatement:
(1) The District implemented GASB Statement No . 101 Compensated Absences, which requires recognition of a liability as leave is earned likely to be used or paid. This resulted in a restatement of the prior year’s compensated absences liability balance in order to include additio nal types of time off that were previo
usly not included in the liability.

Victorville Water
District
June 30, 2024, as previously reported 212,453,280$
Implementation of GASB 101 (1) (341,056)
June 30, 2024, as restated 212,112,224$
39 This page intentionally left blank
40 REQUIRED

SUPPLEMENTARY INFORMATION
41 This page intentionally left blank
42 This page intentionally left blank
43 Victorville Water District
Required Supplementary Information
For the year ended June 30, 2025
CalPERS Cost Sharing Plan
Schedule of the Proportionate Share of the Net Pension Liability - Last Ten Fiscal Years Reporting Fiscal Year 2016 2017 2018 2019
Measurement Date 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Plan's proportion of the net pension liability 24.40% 24.63% 24.87% 24.95% Plan's proportionate share of
the net pension liability 7,425,085$ 9,777,304$ 11,480,941$ 11,526,434$ Plan's covered payroll 4,824,221$ 4,860,190$ 5,506,946$ 5,598,545$ Plan's proportionate share of
the net pension liability as percentage
of its covered payroll 153.91% 201.17% 208.48% 205.88%
Fiduciary net position as a percentage of the
total pension liability 19.55% 18.59% 18.52% 18.88%
Notes to the schedule:

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2022:

There were no significant changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

From fiscal year June 30, 2023 to June 30, 2024:

From fiscal year June 30, 2024 to June 30, 2025:
*Fiscal year 2015 was the 1st year of implementation, therefore ten years are shown.

Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a. Golden Handshakes).

Changes in Assumptions:

2.30%.

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

The discount rate and long-term rate of return remain the same as the prior year at 6.90%, and the inflation rate is also unchanged from the prior year at 2.30%
44 2020 2021 2022 2023 2024 2025
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024

25.15% 25.07% 25.57% 23.60% 23.26% 23.15%
12,996,097$ 12,569,004$ 9,263,027$ 16,156,738$ 17,610,719$ 18,462,040$ 5,546,115$ 6,177,914$ 6,148,247$ 6,657,109$ 7,424,195$ 8,105,155$ 234.33% 203.45% 150.66% 242.70% 237.21% 227.78%

18.74% 18.47% 21.49% 16.97% 16.51% 16.61%
45 Victorville Water District
Required Supplementary Information
For the year ended June 30, 2025
CalPERS Cost Sharing Plan
Schedule of Pension Plan Contributions - Last 10 Fiscal Years Fiscal Year Ended 2016 2017 2018 2019
Actuarially determined contribution 827,951 $ 916,742 $ 1,026,643 $ 1,221,074 $ Contributions in relation to actuarially
deemed contributions (827,951) (916,742) (1,026,643) (1,221,074) Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 4,860,190 $ 5,506,946 $ 5,598,545 $ 5,546,115 $ Contributions as a percentage of
covered payroll 17.04% 16.65% 18.34% 22.02%
Notes to Schedule:

Valuation Date 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age
Amortization method Level percentage of payroll, closed Asset valuation method Fair Value except for 2015 is Market Value of Assets Discount Rate 6.90%
Inflation 2.75% to 2.30%
Salary increases
Retirement age 50 and up
Annual increase vary by category, entry age and duration of service
46 2020 2021 2022 2023 2024 2025
1,459,333$ 1,520,299$ 1,591,527$ 1,773,330$ 1,827,835$ 2,135,455$ (1,459,333) (1,520,299) (1,591,527) (1,773,330) (1,827,835) (2,135,455) -$ -$ -$ -$ -$ -$ 6,177,914$ 6,148,247$ 6,657,109$ 7,424,195$ 8,105,155$ 8,673,982$

23.62% 24.73% 23.91% 23.89% 22.55% 24.62%
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2023 47 Victorville Water District
Required Supplementary Information
For the year ended June 30, 2025
Schedule of Changes in the Total OPEB Liability and Related Ratios - Last 10 Fiscal Years* Reporting Fiscal Year 2018 2019 2020 2021 2022 2023
Measurement Date 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 Total OPEB Liability
Service cost 583,831$ 494,095 $ 417,399$ 474,890$ 600,360$ 626,941$ Interest 345,325 404,923 364,950 372,802 271,338 281,198 Changes of assumptions (1,452,630) (509,085) 601,978 1,795,864 105,768 (2,488,667) Differences between expected
and actual experience - (1,985,311) - (904,000) - 987,796 Benefit payments (185,817) (199,802) (216,889) (224,298) (253,227) (273,537) Net change in the total OPEB
liability (709,291) (1,795,180) 1,167,438 1,515,258 724,239 (866,269) Total OPEB liability - beginning 11,625,768 10,916,477 9,121,297 10,288,735 11,803,993 12,528,232 Total OPEB liabilty - ending (a) 10,916,477$ 9,121,297 $ 10,288,735$ 11,803,993$ 12,528,232$ 11,661,963$ Covered-employee payroll 4,577,527$ 6,818,328$ 7,078,295$ 7,618,996$ 7,710,052$ 7,778,497$ Net OPEB liability as a percentage
of covered -employee payroll 238.48% 133.78% 145.36% 154.93% 162.49% 149.93% Notes to Schedule:

Changes in Assumptions:

Discount Rate 3.58% 3.87% 3.50% 2.21% 2.16% 3.54%
Mortality Improvement Rates
Scale MP-2016 Scale MP-2018 Scale MP-2018 Scale MP-2020 Scale MP-2020 Scale MP-2021 * Fiscal year 2018 was the 1st year of implementation.

The mortality, retirement, disability, and termination rates for the measurement periods ended June 30, 2017 and 2018 were based on the CalPERS 1997-2011 Experience Study and CalPERS 1997-2015 Experience Study, respectively.

In the June 30, 2022 measurement period, the following medical trend rates changed: Non-Medicare increased from 7.0% to

8.5%; Medicare increased from 6.1% to 7.5%; and Kaiser increased from 7.0% to 6.25%.

In the June 30, 2023 measurement period, the following medical trend rates remained unchanged: Non-Medicare increased by

8.5%, Medicare increased by 7.5%, and Kaiser increased by 6.25%.

In the June 30, 2020 measurement period, the medical trend rate for Kaiser Senior Advantage plans decreased from 6.5% to

5.0%.

In the June 30, 2024 measurement period, the following medical trend rates changed: Non-Medicare rate decreased from 8.5% to 7.9%, Medicare decreased from 7.5% to 6.9%, and Kaiser decreased from 6.25% to 5.65%.

In the June 30, 2018 measurement period, the pre-65 waived retiree re-election was updated to be 10% after age 65. 48 2024 2025
6/30/2023 6/30/2024
455,359$ 454,907$
423,401 449,831
(197,575) (488,896)
- (480,564)
(313,663) (320,494)
367,522 (385,216)
11,661,963 12,029,485
12,029,485$ 11,644,269$
8,679,777$ 8,136,649$
138.59% 143.11%

3.65% 3.93%
Scale MP-2021 Scale MP-2021
49 This page intentionally left blank
50 SUPPLEMENTARY INFORMATION
51 This page intentionally left blank
52 This page intentionally left blank
53 Victorville Water District
Combining Statement of Net Position
For the year ended June 30, 2025
(With Comparative Data for June 30, 2024)
Victorville
Wastewater
Reclamation Reclaimed
Water Facility Water
ASSETS
Current Assets:

Cash and investments 73,911,537$ 10,353,365$ 3,651,229$ Cash with fiscal agent 877,517 - - Accounts receivable 3,951,637 2,585,058 28,245 Interest receivable - - - Due from other governments 24,569 - - Inventory and other assets 1,366,384 - - Total current assets 80,131,644 12,938,423 3,679,474 Noncurrent:

Prepaid deposits 72,536 34,659 - Advances to other funds 22,498,237 1,215,206 - Capital assets:

Nondepreciable 36,955,131 1,716,606 341,993 Depreciable capital assets 249,508,875 33,553,457 6,074,772 Accumulated depreciation (145,795,752) (23,186,274) (2,188,006) Depreciable or amortizable, net 103,713,123 10,367,183 3,886,766 Total noncurrent assets 163,239,027 13,333,654 4,228,759 Total assets 243,370,671 26,272,077 7,908,233 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - OPEB related 1,826,356 54,875 - Deferred outflow - pension related 5,736,936 120,900 - Total deferred outflows of resources 7,563,292 175,775 -

LIABILITIES
Current liabilities:

Accounts payable 1,335,485 734,432 2,843 Interest payable 145,319 - - Deposits payable 1,799,099 - - Compensated absences - due within one year 425,241 - - Total OPEB liability - due within one year 537,320 - - Long-term liabilities - due within one year 465,000 - - Total current liabilities 4,707,464 734,432 2,843 Noncurrent liabilities:

Advances from other funds - 23,713,443 - Total OPEB liability 10,871,491 235,458 - Net pension liability 18,119,951 342,089 - Long-term debt 6,858,083 - - Compensated absences 691,178 - - Total noncurrent liabilities 36,540,703 24,290,990 - Total liabilities 41,248,167 25,025,422 2,843 DEFERRED INFLOWS OF RESOURCES Deferred inflows - OPEB related 3,101,247 67,036 - Deferred inflows - pension related 342,240 15,408 - Total deferred inflows of resources 3,443,487 82,444 -

NET POSITION
Net investment in capital assets 133,856,702 12,083,789 4,228,759 Unrestricted 72,385,607 (10,743,803) 3,676,631 Total net position 206,242,309$ 1,339,986$ 7,905,390$ 54 Eliminations 2025 2024
-$ 87,916,131$ 85,120,299 $ - 877,517 836,588 - 6,564,940 5,640,186 - - 371,279 - 24,569 28,707 - 1,366,384 1,604,610 - 96,749,541 93,601,669 - 107,195 51,763 (23,713,443) - - - 39,013,730 37,054,907 - 289,137,104 285,159,860 - (171,170,032) (165,021,497) - 117,967,072 120,138,363 (23,713,443) 157,087,997 157,245,033 (23,713,443) 253,837,538 250,846,702 - 1,881,231 2,287,149 - 5,857,836 6,305,417 - 7,739,067 8,592,566 - 2,072,760 2,857,836 - 145,319 153,385 - 1,799,099 1,748,554 - 425,241 561,302 - 537,320 338,738 - 465,000 454,620 - 5,444,739 6,114,435 (23,713,443) - - - 11,106,949 11,690,747 -
18,462,040 17,610,716
- 6,858,083 7,329,311 - 691,178 154,792 (23,713,443) 37,118,250 36,785,566 (23,713,443) 42,562,989 42,900,001 - 3,168,283 3,234,388 - 357,648 851,599 - 3,525,931 4,085,987 - 150,169,250 149,171,073 - 65,318,435 63,282,207 -$ 215,487,685$ 212,453,280 $ 55 Victorville Water District
Combining Statement of Revenues, Expenses and Changes in Net Position For the year ended June 30, 2025
(With Comparative Data for the Year Ended June 30, 2024) Victorville
Wastewater
Reclamation Reclaimed
Water Facility Water
OPERATING REVENUES:

Utility sales 21,122,046$ 9,732,622$ 481,557$ Meter and service fees 12,957,663 - -
Pass-thru charges for services 1,167,675 - -
Fines and forfeitures 650,365 - -
Arsenic surcharge 303,997 - -
Other 570,852 - -
Total operating revenues 36,772,598 9,732,622 481,557 OPERATING EXPENSES:

Personnel services 12,519,729 294,775 219,853
Maintenance and operations 15,277,805 9,168,731 134,108 Production costs and pass-thru production costs 5,458,404 - 14,144 Pass-thru production costs 1,138,475 - -
Depreciation and amortization 5,698,014 354,261 161,064 Total operating expenses 40,092,427 9,817,767 529,169 Operating income (loss) (3,319,829) (85,145) (47,612) NONOPERATING REVENUES (EXPENSES):

Taxes 1,624,692 - -
Investment income 4,152,520 537,506 156,399
Interest expense (344,278) (1,079,554) -
Gain on disposal of assets 9,326 - -
Other nonoperating expenses (88,638) (10,241) -
Total nonoperating revenues (expenses) 5,353,622 (552,289) 156,399 Income before contributions and transfers 2,033,793 (637,434) 108,787 CONTRIBUTIONS AND TRANSFERS:

Connection fees 196,486 832,400
-
Alternate water source fees 125,488 - (54,560)
Capital restricted use fees - 595,214 -
Capital contributions 181,056 (5,769) -
Transfers in - - -
Transfers out - - -
Total contributions and transfers 503,030 1,421,845 (54,560) Change in net position 2,536,823 784,411 54,227
NET POSITION:

Beginning of year 204,046,542 555,575 7,851,163 Restatements - due to implementation of GASB 101
(341,056) - -
Beginning of year, as restated 203,705,486 555,575 7,851,163 End of year 206,242,309$ 1,339,986$ 7,905,390$ 56 Eliminations 2025 2024
-$ 31,336,225$ 29,871,480$
- 12,957,663 11,326,765
- 1,167,675 1,149,312
- 650,365 386,446
- 303,997 301,506
- 570,852 243,233
- 46,986,777 43,278,742
- 13,034,357 12,737,893
- 24,580,644 19,532,107
- 5,472,548 6,411,631
- 1,138,475 1,178,512
- 6,213,339 6,570,505
- 50,439,363 46,430,648
- (3,452,586) (3,151,906)
- 1,624,692 1,567,817
- 4,846,425 5,013,463
- (1,423,832) (1,387,860)
- 9,326 -
- (98,879) (2,024,057)
- 4,957,732 3,169,363
- 1,505,146 17,457
- 1,028,886 4,242,660
- 70,928 484,220
- 595,214 587,276
- 175,287 -
- - 25,713
- - -
- 1,870,315
5,339,869
- 3,375,461 5,357,326
- 212,453,280 207,095,954
- (341,056) -
- 212,112,224 207,095,954
-$ 215,487,685$ 212,453,280$
57 Attachment C

Southern California Logistics
Airport Authority
Basic Financial Statements
for Fiscal Year ended
June 30, 2025

Southern
California Logistics
Airport Authority

Victorville, California

Financial Statements and
Independent Auditor’s Report

For the year ended June 30, 2025

Southern California Logistics Airport Authority
Table of Contents
For the year ended June 30, 2025
Page
Independent Auditor’s Report ................................................................................................................................... 1 Basic Financial Statements:

Statement of Net Position
.................................................................................................. ................................. 7 Statement of Revenues, Expenses and Changes in Net Position ................................................................ .. 8 Statement of Cash Flows .................................................................................................... ............................... 10 Notes to Basic Financial Statements ................................................................................................................ 15 Required Supplementary Information (Unaudited):

Schedule of the Proportionate Share of the Net Pension Liability ................................................................. 54 Schedule of Pension Plan Contributions ............................................................................................................ 56 Schedule of Changes in Total OPEB Liability and Related Ratios ................................................................. 58 Supplementary Information:

Combining Statement of Net Position ................................................................................................................ 64 Combining Statement of Revenues, Expenses, and Change in Net Position ................................................ 66 i
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ii
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
of the Southern California Logistics Airport Authority
Victorville, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the Southern California Logistics Airport Authority (SCLAA), a component unit of the City of Victorville, California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the SCLAA’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the SCLAA, as of June 30, 2025, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing st andards generally accepted in the United States of America (GAAS) and the standards applicab le to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Un ited States. Our responsibilities under those standards are further described in the Auditor’s Resp onsibilities for the Audit of the Financial Statements section of our report. We are required to be inde pendent of the SCLAA and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

In preparing the financial statements, management is re quired to evaluate whether there are conditions or events, considered in the aggregate, that raise subst antial doubt about the SCLAA’s ability to continue as a going concern for twelve months beyond the financ ial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

To the Board of Directors
of the Southern California Logistics Airport Authority
Victorville, California

Page 2 ends

Auditor’s Responsibilities for the Audit of the Financial Statements

In performing an audit in accordance with GAAS, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstat ement of the financial statements, whether due to fraud or error, and design and pe rform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circ umstances, but not for the purpose of expressing an opinion on the effectiveness of the SCLAA’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting polic ies used and the reasonableness of significant accounting estimates made by management, as we ll as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the SCLAA’s ability to continue as a going concern for a reasonable period of time.

2 To the Board of Directors
of the Southern California Logistics Airport Authority
Victorville, California

Page 3 ends

Required Supplementary Information

We do not express an opinion or provide any assuranc e on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the SCLAA’s basic financial statements. The combining statements of the SCLAA are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining statements of the SCLAA are the resp onsibility of management and were derived from and relates directly to the underlying accounting and other records us ed to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional proc edures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themse lves, and other additional procedures in accordance with auditing standards generally accepted in the Unit ed States of America. In our opinion, the combining statements of the SCLAA are fairly stated, in all ma terial respects, in relation to the basic financial statements as a whole.

Report on Summarized Comparative Information

We have previously audited the SCLAA’s June 30, 2024 financial statements, and we expressed an unmodified opinion on those statements in our report dated April 10, 2025. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2024 is consistent, in all material respects, with the audited financial statements from which it has been derived. 3 To the Board of Directors
of the Southern California Logistics Airport Authority
Victorville, California

Page 4 ends

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the SCLAA’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Emeryville, California
January 6, 2026
4 BASIC

FINANCIAL STATEMENTS
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6 Southern California Logistics Airport Authority
Statement of Net Position
June 30, 2025
(With Comparative Data for June 30, 2024)
2025 2024
ASSETS
Current Assets:

Cash and investments 41,585,521 $ 41,290,155 $ Cash and investments with fiscal agent 27,325,317 26,097,008 Accounts receivable, net 324,745 401,630 Interest receivable 456,414 287,912 Due from other governments - 864,253 Leases receivable 7,677,132 7,246,566 Inventory 5,165 3,612
Total current assets 77,374,294 76,191,136 Noncurrent:

Prepaid Items 2,195 4,149
Advances to City of Victorville 1,200,000 1,600,000 Leases 77,635,964 77,962,659
Nondepreciable capital assets 16,700,582 15,760,072 Depreciable capital assets 308,344,729 299,509,331 Accumulated depreciation (205,617,018) (197,913,004) Depreciable capital assets, net 102,727,711 101,596,327 Total noncurrent assets 198,266,452 196,923,207 Total assets 275,640,746 273,114,343
DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - OPEB related 267,907 237,333 Deferred outflows - pension related 1,639,978 1,768,477 Deferred charge on refunding 1,128,866 1,263,381 Total deferred outflows of resources 3,036,751 3,269,191 LIABILITIES Current liabilities:

Accounts payable 743,750 594,660
Interest payable 1,166,156 1,197,937
Deposits payable 815,549 742,742
Unearned revenue 449,562 850,360
Compensated absences - due within one year 115,432 133,833 Total OPEB liability - due within one year 12,958 8,504 Long-term debt - current portion 7,630,000 7,245,000 Total current liabilities 10,933,407 10,773,036 Noncurrent liabilities:

Advances from other governments 12,133,339 11,678,089 Total OPEB liability 2,226,953 2,115,912 Net pension liability 5,183,366 4,930,171 Long-term debt 261,962,107 267,735,859
Compensated absences 183,617 112,463 Total noncurrent liabilities 281,689,382 286,572,494 Total liabilities 292,622,789 297,345,530

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - OPEB related 705,148 762,291 Deferred inflows - pension related 70,427 183,799 Deferred inflows - leases 78,311,500 80,139,808 Total deferred inflows of resources 79,087,075 81,085,898

NET POSITION
Net investment in capital assets (121,877,748) (130,492,014) Unrestricted 28,845,381 28,444,120
Total net position (93,032,367)$ (102,047,894)$ See accompanying Notes to Basic Financial Statements.
7 Southern California Logistics Airport Authority
Statement of Revenues, Expenses, and Changes in Net Position For the year ended June 30, 2025
(With Comparative Data for the year ended June 30, 2024) 2025 2024
OPERATING REVENUES:

Charges for services
Landing fees 1,278,330$ 1,492,219 $
Fuel flowage fees 310,743 382,140
Rent and lease revenue 10,316,627 10,424,249 Total charges for services 11,905,700 12,298,608 Fines and forfeitures 28,817 25,274 Other 950,824 851,560
Total operating revenues 12,885,341 13,175,442 OPERATING EXPENSES:

Personnel services 3,773,683 3,664,583 Maintenance and operations 5,991,285 7,034,343 Depreciation 7,814,864 9,480,389
Total operating expenses 17,579,832 20,179,315 Operating income (loss) (4,694,491) (7,003,873) NONOPERATING REVENUES (EXPENSES):

Taxes 21,638,857 21,875,148
Investment income 4,674,507 4,998,166
Interest expense (16,598,791) (16,804,585) Gain on sale of capital assets 1,375 - Other nonoperating expenses (19,637) 322,056 Total nonoperating revenues (expenses) 9,696,311 10,390,785 Income before contributions and transfers 5,001,820 3,386,912 CONTRIBUTIONS AND TRANSFERS:

Capital contributions 635,996 -
Capital grants 3,512,333 1,723,221
Total contributions and transfers 4,148,329 1,723,221 Change in net position 9,150,149 5,110,133 NET POSITION:

Beginning of year (102,047,894) (107,158,027) Restatements - due to implementation of GASB 101 (134,622) - Beginning of year, as restated (102,182,516) (107,158,027) End of year (93,032,367)$ (102,047,894)$
See accompanying Notes to Basic Financial Statements.
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9 Southern California Logistics Airport Authority
Statement of Cash Flows
For the year ended June 30, 2025
(With Comparative Data for the year ended June 30, 2024) 2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 12,182,668 $ 10,921,299 $ Cash payments to employees for services (3,559,452) (3,294,872) Cash payments to suppliers for goods and services (5,841,794) (6,823,614) Net cash provided by (used in) operating activities 2,781,422 802,813 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash received from other governments 22,094,107 22,286,148 Cash paid to City of Victorville 400,000 400,000
Net cash provided by (used in)
Noncapital financing activities 22,494,107 22,686,148
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Cash received from sale of capital assets 1,375
-
Capital grants 3,512,333 1,723,221
Cash payments to acquire capital assets (9,886,758) (3,157,971) Principal paid on capital-related debt (7,244,999) (6,885,000) Interest paid on capital-related debt (14,639,810) (14,966,860) Net cash provided by (used in) capital and related
Financing activities (28,257,859) (23,286,610) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received on investments 4,506,005 4,846,482
Net cash provided by (used) by investing activities 4,506,005 4,846,482 NET INCREASE IN CASH AND CASH EQUIVALENTS 1,523,675 5,048,833 CASH AND CASH EQUIVALENTS - Beginning of year 67,387,163 62,338,330 CASH AND CASH EQUIVALENTS - End of year 68,910,838$ 67,387,163$

RECONCILIATION OF CASH AND CASH EQUIVALENTS TO
STATEMENT OF NET POSITION:

Cash and investments 41,585,521 41,290,155
Cash and investments with fiscal agent 27,325,317 26,097,008 Cash and cash equivalents 68,910,838 67,387,163
10 See accompanying Notes to Basic Financial Statements.

Southern California Logistics Airport Authority
Statement of Cash Flows (Continued)
For the year ended June 30, 2025
(With Comparative Data For The Year Ended June 30, 2024) 2025 2024

RECONCILIATION OF OPERATING LOSS TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES
Operating loss (4,694,491)$ (7,003,873) $
Adjustments to reconcile operating loss to net cash
Provided (used) by operating activities:

Depreciation 7,814,864 9,480,389
Operating rental and lease revenue (1,828,308) (7,431,065) Nonoperating miscellaneous expense 616,359 322,056
(Increase) decrease in assets:

Accounts receivable, net 76,885 (10,854)
Lease receivable (103,871) 5,768,668
Due from other governments 864,253 (711,781)
Inventory (1,553) 10,266
Prepaid items 1,954 51,445
Deferred outflows - OPEB (30,574) 30,270
Deferred outflows - pension 128,499 (59,265)
Increase (decrease) in liabilities:

Accounts payable 149,090 149,018
Deposits payable 72,807 22,046
Unearned revenue (400,798) (213,213)
Accrued compensated absences (81,869) 30,745
Total OPEB liability 115,495 84,332
Net pension liability 253,195 426,483
Deferred inflows - OPEB (57,143) (92,549)
Deferred inflows - pension (113,372) (50,305)
Net cash provided by (used in) operating activities 2,781,422$ 802,813$

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING

AND FINANCING ACTIVITY
Interest accretion expenses 1,764,379 1,641,446
Amortization of bond discounts and premiums 91,868 91,867 Total $1,856,247 $1,733,313
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12 NOTES TO BASIC

FINANCIAL STATEMENTS

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14 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the Southern Calif ornia Logistics Airport Authority (SCLAA) have been prepared in conformity with generally accepted acco unting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the SCLAA’s accounting policies are described below.

A. Description of the Reporting Entity
The Southern California Logistics Airport Authority (SCLAA), a component unit of the City of Victorville, was formed in June of 1997 by the City of Victorville and the former Victorville Redevelopment Agency.

Prior to the dissolution of the Victorville Redevelopm ent Agency in 2012, the Vi ctorville Water District was added as a member of the JPA. The purpose of SCLAA is to provide for the coordination of long- range planning of the territory of George Air Force Ba se (now Southern California Logistics Airport, or the Airport). The Victor Valley Economic Development Authority (VVEDA), a Joint Powers Authority of the City of Victorville and other entities, was auth orized to exclusively ex ercise the powers of a redevelopment agency in the area including and surrounding the Airport. VVEDA subsequently delegated to the SCLAA all of its redevelopment auth ority over the portion of the VVEDA project area comprised of the Airport.

B. Relationship to the City of Victorville
The SCLAA is an integral part of the reporting entity of the City of Victorville (the City) and is reflected as a blended component unit within the City of Vict orville. The SCLAA fund has been included within the scope of the basic financial statements of the Ci ty because, although it is a legally separate organization, the City Council is the governing board and has financial accountability over the operations of the SCLAA. Only the SCLAA fund is included herein and these financial statements, therefore, do not purport to represent the financial position or results of operations of the City of Victorville, California.

C. Basic Financial Statements
The basic financial statements are comprised of the st atement of net position, the statement of revenues, expenses, and changes in net position, the statement of cash flows and the notes to the basic financial statements.

D. Basis of Accounting, Measurement Focus, and Financial Statement Presentation The SCLAA is accounted for as an enterprise fund (proprietary fund type). A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The activities of enterprise funds closely resemble those ongoing businesses in which the purpose is to conserve and add to basic resources while meeting operating expenses from current revenues. Enterprise funds a ccount for operations that provide services on a continuous basis and are substantially financed by revenues derived from user charges.

15 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued D. Basis of Accounting, Measurement Focus, and Financial Statement Presentation, Continued The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as economic resources. The basis of accounting indicates the timi ng of transactions or events for recognition in the financial statements.

Proceeds of long-term debt and acquisitions under capital leases are recorded as a liability. Amounts paid to reduce long-term indebtedness are reported as a reduction of the related liability. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method for bonds issued through 2021 and the effective interest method for bonds issued thereafter. Bonds payable are reported net of the applicable bond premium or disc ount. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses.

The SCLAA distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with airport and rental operations. The principal operating revenues of the SCLAA are charges to customers for services, which includes landing fees, fuel flowage fees, and rent and lease revenue, fines and forfeitures, and other reimbursements. Operating expenses include personnel services, maintenance and operational costs, and depreciation of capital assets. All revenues and expenses not meeting this definition, such as taxes, investment income, and interest expense, are reported as nonoperating revenues and expenses.

E. Cash and Investments
Investments are reported in the accompanying statement of net position at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur du ring a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments.

16 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued F. Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to know n amounts of cash or so near their maturity that they present insignificant risk of changes in value be cause of changes in interest rates. Cash equivalents include the cash and investments held by a fiscal agent.

G. Accounts Receivable
The SCLAA specifically identifies accounts that are deemed uncollectable and offsets the receivable by an allowance for doubtful accounts. The amounts reco rded as accounts receivable include various reimbursements and fees due to the SCLAA, net of an allowance for doubtful accounts totaling $12,380 as of June 30, 2025.

H. Due from Other Governments
The amounts recorded as a receivable due from othe r governments includes grant revenues collected or provided by Federal, State, County, and City Governments and unremitted to the City as of June 30, 2025.

I. Inventory and Prepaid Items
The SCLAA uses the consumption method of accounting for inventories. Inventory consists primarily of supplies for construction and repair that are valued at cost using the weighted average method. Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items utilizing the consumption method.

J. Leases
When the SCLAA is a lessee, a lease liability and a le ase asset is recognized at the commencement of the lease term, unless the lease is a short-term lease, or it transfers ownership of the underlying asset. The lease liability is measured at the pr esent value of payments expected to be made during the lease term (less any lease incentives). The leas e asset is measured at the amount of the initial measurement of the lease liability, plus any payments made to the lessor at or before the commencement of the lease term and certain direct costs.

When the SCLAA is a lessor, a lease receivable and a deferred inflow of resources is recognized at the commencement of the lease term, with certain exceptions for leases of assets held as investments, certain regulated leases, short-term leases, and leases that tr ansfer ownership of the underlying asset. The lease receivable is measured at the present value of lease payments expected to be received during the lease term. The deferred inflow of resources is measured at the value of the lease receivable plus any payments received at or before the commencement of the lease term that relate to future periods.

17 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued K. Capital Assets
Tangible capital assets (including infrastructure) are valued at cost where historical records are available and at an estimated historical cost where no historic al records exist. Donated tangible capital assets are valued at acquisition value on the date of donation. SBITA assets are initially measured as the sum of the present value of payments expected to be made duri ng the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received from the SBITA vendor at the commencement of the SBITA term . SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets.

SCLAA capitalizes all assets with an initial individual cost of more than $5,000 and a useful life in excess of one year. The cost of normal maintenance and repa irs that do not add to the value of the assets or materially extend the life are not capitalized.

Depreciation is computed utilizing the straight-line method over the following useful lives for tangible capital assets:

L. Compensated Absences
A liability is recorded for unused vacation and similar compensatory leave balances since the employees’ entitlement to these balances is attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

A liability is recorded for unused sick leave balances that have be en earned for service previously rendered by employees, along with the related costs.

Compensated absences (unpaid vacation and sick leave) are recorded in the statements of net position.

The balance of unpaid vacation and vested sick leave at year-end is recorded as a long-term liability in the financial statements.

Buildings and Improvements 10 to 50 Years
Computer and Communications 5 Years
Furniture and Equipment 3 to 7 Years
Infrastructure 20 to 40 years
Land Improvements 10 to 50 Years
Vehicles 8 to 15 Years
18 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued M. Unearned Revenue
Unearned revenue is recorded when the SCLAA receives funds for which the goods or services have not yet been provided and, therefore, revenue has not yet been earned. The balance in unearned revenue for the SCLAA primarily consists of funds received in advance from tenants in which the City serves as the lessor.

N. Deferred Outflows and Defe rred Inflows of Resources In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement elemen t, deferred outflows of resources, represents a consumption of net assets that applies to future pe riods and so will not be recognized as an outflow of resources (expense) until that time. The category of deferred outflow of resources reported in the statement of net position is related to a loss on refunding, pension, and other postemployment benefits.

A deferred loss on refunding results from the differenc e in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows on pension and other postemployment benefits are more fully discussed in Notes 6 and 7, respectively.

The SCLAAs deferred inflows of resources reported on the statement of net position relate to leases, pension and other postemployment benefits. Amounts for leases are for amounts not yet received that are deferred and recognized as an inflow of resources in the period that the amounts are available or earned.

Pension and other postemployment benefits deferred inflows of resources are more fully discussed in Notes 9 and 10, respectively.

O. Net Position
Net position is classified in the following categories:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt (including prem iums and discounts) and capital related payables that are attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – This amount is restricted by enabling legislation (such as external creditors, grantors, contributors, laws or regulations of other governments).

Unrestricted Net Position – This amount is the remaining net position that does not meet the definition of “invested in capital assets” or “restricted net position.”

19 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued O. Net Position, Continued
Sometimes the SCLAA will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position, a flow assumption must be made about the order in which the resources are considered to be applied. It is the SCLAA’s practice to consider restricted net position to have been depleted before unrestricted net position is applied, unless otherwise directed by Council.

P. Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about th e fiduciary net position of the SCLAA’s California Public Employees’ Retirement System (CalPERS) pl ans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS.

CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

Q. Prior Year Data
Selected information regarding the prior year has been included in the accompanying financial statements. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the SCLAA’s prior year financial statements, from which this selected financial data was derived.

R. Estimates
The presentation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of asse ts, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

20 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued S. Adoption of New Accounting Standards
In 2025, the Authority adopted new accounting st andards in order to conform with the following Government Accounting Standards Board Statements:
 GASB Statement No. 101, Compensated Absences - The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The Authority has recognized accruals for compensated time, administrative leave, and vacation. Beginning net po sition and compensated absences balances as of June 30, 2024, were restated upon implementation of this Statement. Please refer to Notes 4 and 13 for more details.
 GASB Statement No. 102, Certain Risk Disclosures - The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or co nstraints. The District had no adjustments or new disclosures as a result of this Statement.

21 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS
Cash and investments as of June 30, 2025, are classified in the accompanying financial statements as follows:

Cash and investment as of June 30, 2025, consist of the following:

A. Investments Pool of the City of Victorville
The SCLAA has no separate bank accounts or investments other than investments held by bond trustee, and their investment in LAIF. The SCLAA’s equity in the cash and investment pool is managed by the City of Victorville. The SCLAA is a voluntary participant in that pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City of Victorville.

The SCLAA has not adopted an investment policy separate from that of the City of Victorville. The fair value of the Authority’s investment in this pool is reported in the accompanying financial statements at amounts based upon the SCLAA’s pro-rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded on an original cost basis.

Statement of Net Position:

Cash and Investments 41,585,521$
Cash and Investments with Fiscal Agent 27,325,317
Total Cash and Investments 68,910,838$
Equity in City of Victorville Pool 22,350,942$
Investments 46,559,896
Total Cash and Investments 68,910,838$
22 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
B. Investments Authorized by the California G overnment Code and the City’s Investment Policy The City adopts the investment policy for the SCLAA. The table below outlines the type of investment that are authorized for the SCLAA under the Califor nia Government Code and the City’s investment policy. The table also highlights certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not include investments of debt proceeds held by bond trustees which are governed by the provisions of the City’s debt agreement, ra ther than the general provisions of the California Government Code or the City’s investment policy.

C. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee ar e governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the SCLAA’s investment policy.

The table below identifies the investment types that are authorized for investments held by bond trustee.

The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.

Authorized by Maximum Maximum
Investment Type Investment Maximum Percentage Investment Authorized by State Law Policy Maturity* of Portfolio* in One Issuer Local Agency Bonds Yes 5 Years 70% None
U.S. Treasury Obligations Yes 5 Years 70% None
U.S. Agency Securities Yes 5 Years 75%** None
Banker's Acceptances No 180 Days 40% 30%
Commercial Paper - Nonpooled Funds No 270 Days 25% 10%
Commercial Paper - Pooled Funds No 270 Days 40% 10%
Negotiable Certificates of Deposit Yes 2 Years 30% None Repurchase Agreements No 1 Year None None
Reverse Repurchase Agreements No 92 Days 20% of Base Value None Medium-Term Notes No 5 Years 30% None
Mutual Funds*** No 5 Years 20%* 10%*
Money Market Mutual Funds*** Yes 5 Years 20%* None
Mortgage Pass-Through Securities No 5 Years 20% None
County Pooled Investment Funds No N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None $75M
JPA Pools (Other Investment Pools) No N/A None None
* Based on state law requirements or investment policy requirements, whichever is more restrictive. ** Ginnie Mae is not to exceed 20% of the total portfolio. *** Fund must be an AAA rated Government or U.S. Treasury money fund.

Maximum
Authorized Maximum Percentage Investment
Investment Types Maturity Allowed in One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 360 Days None None
Commercial Paper 270 Days None None
Money Market Mutual Funds None None None
Repurchase Agreements None None None
Investment Contracts None None None
Certificate of Deposit None None None
Local Agency Investment Fund (LAIF) None None None
23 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
D. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Authority manages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer-term investments and by timing cash flows from maturities so that a portion of the portfo lio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the Authority’s investments (including investments held by bond trustee) to market interest rate fluctu ations is provided by the following table that shows the distribution of these investments by maturity.

E. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationa lly recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual Standard & Poor’s rating as of year-end for each investment type.

F. Concentration of Credit Risk
The investment policy of the SCLAA contains no limitat ions on the amount that can be invested in any one issuer beyond that stipulated by the Califor nia Government Code. The SCLAA has no investments in any one issuer (other than LAIF and money market mutual funds) that represent 5% or more of the City’s investments.

Remaining
Maturities
(in Months)
Investment Type Total Within 12
LAIF 19,234,579 $ 19,234,579 $
Held by Bond Trustee:

Money Market Mutual Funds 27,325,317 27,325,317
Total 46,559,896 $ 46,559,896 $
Minimum
Investment Type Total Legal Rating AAA Not Rated
LAIF 19,234,579 $ N/A - $ 19,234,579$ Held by Bond Trustee:

Money Market Mutual Funds 27,325,317 AAA 27,325,317 - Total 46,559,896 $ 27,325,317 $ 19,234,579 $ Ratings as of Year-End
24 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside part y. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit ri sk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository re gulated under state law (unless so waived by the governmental unit).

The market value of the pledged securities in the co llateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure SCLAA deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2025, the SCLAA’s deposits (bank balances) were equity in the City of Victorville’s pool, which was insured by the federal depository in surance limits or collateralized as required under California Law.

H. Investment in State Investment Pool
The SCLAA is a voluntary participant in the Local Agen cy Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the state of California. The fair value of the SCLAA’s investment in this pool is reported in the accompanying financial statements at amounts based upon the SCLAA’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF.

I. Fair Value Measurements
The SCLAA categorizes its fair value measurement within the fair value hi erarchy established by accounting principles generally accepted in the United States of America. The fair value framework provides a hierarchy that prioritizes the inputs to va luation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of fair value hierarchy are described as follows:

25 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
I. Fair Value Measurements, Continued
Level 1 – Inputs to the valuation methodology are u nadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices included within the Level 1 that are observable for the asset or liability, either directly or indirectly, and fair value is determined through the use of models or other valuation methodologies including:
- Quoted prices for similar assets or liabilities in active markets; - Quoted prices for identical or similar assets or liabilities in markets that are inactive; - Inputs other than quoted prices that are observable for the asset or liability; - I n p u t s t h a t a r e d e r i v e d p r i n c i p a l l y f r o m o r c o r r o b o r a t e d b y o b s e r v a b l e m a r k e t d a t a b y correlation of other items.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurements. These unobservable inputs reflec t the SCLAA’s own assumptions about the inputs market participants would use in pricing the asset or liability (including a ssumptions about risk).

These unobservable inputs are developed based on the best information available in the circumstances and may include the SCLAA’s own data.

The SCLAA’s investments in LAIF and money market mutual funds (held by bond trustee) are not subject to the fair value measurement hierarchy.

26 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

3. CAPITAL ASSETS

The following is a summary of changes in capital assets for SCLAA at June 30, 2025:

Depreciation expense for the SCLAA was $7,817,049 for the year ended June 30, 2025.

Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
Nondepreciable Assets:

Land 13,888,112$ -$ -$ 13,888,112$ Construction in progress 1,871,960 1,373,433 (432,923) 2,812,470 Total Nondepreciable Assets 15,760,072 1,373,433 (432,923) 16,700,582 Depreciable Assets:

Buildings and Improvements 185,457,911 2,787,324 - 188,245,235 Computer and Communication 218,903 - - 218,903 Furniture and Equipment 8,370,867 363,680 (113,036) 8,621,511 Infrastructure 104,545,552 5,464,403 - 110,009,955 Land Improvements 128,489 - - 128,489 Vehicles 787,610 333,026 - 1,120,636 Total Depreciable Assets 299,509,332 8,948,433 (113,036) 308,344,729 Less Accumulated Depreciation:

Buildings and Improvements (122,013,250) (4,233,885) - (126,247,135) Computer and Communication (218,903) - - (218,903) Furniture and Equipment (6,513,784) (413,608) - (6,927,392) Infrastructure (68,368,538) (3,141,773) 113,036 (71,397,275) Land Impovements (128,489) - - (128,489) Vehicles (670,041) (27,783) - (697,824) Total Accumulated Depreciation (197,913,005) (7,817,049) 113,036 (205,617,018) Total Depreciable Assets, Net 101,596,327 1,131,384 - 102,727,711 Capital Assets, Net 117,356,399$ 2,504,817 $ (432,923)$ 119,428,293$ 27 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES

A summary of changes in long-term liabilities for the year ended June 30, 2025, is noted below:

See pledged revenue information at the end of this note.

A. Tax Allocation Parity Bonds, Series 2005A
In June 2005, the SCLAA issued $42,185,000 principa l amount of Tax Allocation Parity Bonds, Series 2005A. This debt was issued to finance certain public capital improvements benefiting the SCLAA.

On February 8, 2006, $1.8 million of bond proceeds wa s invested in land for the construction of a new City library. Prior to this purchase (on November 3, 2005), the Board of Directors of the SCLAA adopted a resolution with the intent of entering into a loan agreement between the SCLAA and the City with respect to this land purchase. On September 21, 2010, City Council approved this loan agreement. Legal counsel for the City has indicated that approval by the bond insurer is not required for the investment of proceeds not held by the bond trustee.

Bonds maturing on December 1, 2010, December 1, 2016, December 1, 2020, December 1, 2025, December 1, 2030, and December 1, 2035 in the amounts of $2,765,000, $3,365,000, $5,140,000, $6,335,000, $7,870,000, and $15,335,000, respectively, are term bonds. The outstanding bonds bear interest at 3.50% to 5.00% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturi ty as described in the bond covenants. The bonds maturing on or after June 1, 2016 are subject to optional redemption in whole or in part by lot, without premium.

Balance Balance Due Within
July 1, 2024 Restatement
(GASB 101) Additions Retirements June 30, 2025 One Year Other Long-Term Liabilities:

Compensated Absences 246,296$ 134,622$ 57,601$ (139,471)$ 299,049$ 115,432$ Other Debt:

Tax Allocation Bonds:
2005 Tax Allocation Parity Bonds 10,565,000 - - (1,320,000) 9,245,000 1,375,000 2006 Tax Allocation Bonds (Non-Housing) 44,055,000 - - (1,375,000) 42,680,000 1,435,000 2006 Tax Allocation Bonds (Housing) 11,830,000 - - (370,000) 11,460,000 385,000 2006 Allocation Parity Bonds 41,035,000 - - (190,000) 40,845,000 205,000 2006 Tax Allocation Revenue Parity Bonds 27,705,000 - - (730,000) 26,975,000 775,000 2006 Tax Allocation Revenue Bonds 50,120,000 - - (1,355,000) 48,765,000 1,435,000 2007 Tax Allocation Bonds 30,935,000 - - (885,000) 30,050,000 935,000 2007 Tax Allocation Bonds (Non-Housing)* 32,405,000 - - (895,000) 31,510,000 945,000 2008 Tax Allocation Bonds 28,239,320 - 1,764,379 (125,000) 29,878,699 140,000 Tax Allocation Bonds Subtotal 276,889,320 - 1,764,379 (7,245,000) 271,408,699 7,630,000 Unamortized Discounts/Premiums (1,908,461) - - 91,869 (1,816,592) - Total 275,227,155$ 134,622$ 1,821,980$ (7,292,602)$ 269,891,156$ 7,745,432 $ 28 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
A. Tax Allocation Parity Bonds, Series 2005A, Continued The bonds maturing on December 1, 2010, Decemb er 1, 2016, December 1, 2020, December 1, 2025, December 1, 2030, and December 1, 2035 are subject to mandatory redemption in part by lot, without premium, commencing December 1, 2007, December 1, 2012, December 1, 2016, December 1, 2021, December 1, 2026, and December 1, 2031, respectively, from sinking fund payments made by SCLAA.

In the fiscal year ended June 30, 2006, these bonds were partially defeased by the issuance of the Tax Allocation Revenue Parity Bonds, Refunding Series 2005 (Non-Housing). As of June 30, 2025, the required reserve for the Bonds was met with fiscal agent ca sh. The Bonds are a special obligation of the SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2025 is $9,245,000.

B. Tax Allocation Revenue Parity Bonds, Refunding Series 2006 (Non-Housing) In June 2006, the SCLAA issued $62,780,000 principal amount of Tax Allocation Revenue Parity Bonds, Refunding Series 2006. The proceeds were used to refund the 2001 Tax Allocation Bonds, the 2003 Tax Allocation Bonds, and a portion of 2005 Tax Alloca tion Bonds. As a result, the 2001 and 2003 Tax Allocation Bonds are considered to be defeased, and the 2005 Tax Allocation Bonds are considered to be partially defeased. The respective liabilities have been removed from the statement of net position.

Bonds maturing on December 1, 2026, December 1, 203 1, December 1, 2036, and December 1, 2043 in the amounts of $6,895,000, $8,595,000, $10,810,000, and $20,335,000, respectively, are term bonds. The outstanding bonds bear interest at 4.50% to 5.00% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturi ty as described in the bond covenants. The bonds maturing on or after June 1, 2016 are subject to opti onal redemption in whole or in part by lot without premium.

The bonds maturing on December 1, 2026, December 1, 2031, December 1, 2036, and December 1, 2043 are subject to mandatory redemption in part by lo t, without premium, commencing December 1, 2022, December 1, 2027, December 1, 2032, and December 1, 2037, respectively, from sinking fund payments made by SCLAA.

As of June 30, 2025, the required reserve for the Bo nds was met with fiscal agent cash. The bonds are a special obligation of the SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2025 is $42,680,000.

C. Tax Allocation Revenue Parity Bonds, Refunding Series 2006 (Housing Set-Aside) In June 2006, the SCLAA issued $16,855,000 princi pal amount of Housing Set-Aside Revenue Bonds, Refunding Series 2006. The proceeds were used to refund all of the 2003 Tax Allocation Bonds and a portion of the 2005 Tax Allocation Parity Bonds. As a result, the 2003 Tax Allocation Bond is considered to be defeased and the liability has been removed from the statement of net position.

Bonds maturing on December 1, 2026, December 1, 203 1, December 1, 2036, and December 1, 2043 in the amounts of $1,855,000, $2,305,000, $2,905,000, and $5,460,000, respectively, are term bonds. The outstanding bonds bear interest at 4.50% to 5.00% due June 1 and December 1 of each year. 29 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
C. Tax Allocation Revenue Parity Bonds, Ref unding Series 2006 (Housing Set-Aside), Continued The bonds are subject to redemption prior to maturi ty as described in the bond covenants. The bonds maturing on or after June 1, 2016 are subject to opti onal redemption in whole or in part by lot without premium.

D. Tax Allocation Revenue Parity Bonds, Taxable Series 2006 In June 2006, the SCLAA issued $45,020,000 principal amount of Tax Allocation Revenue Parity Bonds, Taxable Series 2006. The proceeds were used to financ e certain redevelopment activities benefiting the SCLAA.

Bonds maturing on December 1, 2036 and Decemb er 1, 2043 in the amounts of $20,080,000, and $24,940,000, respectively, are term bonds. The outstand ing bonds bear interest at 6.10% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity as described in the bond covenants. The bonds are subject to optional redemption in whole or in part by lot, subject to a premium.

The bonds maturing on December 1, 2036 and December 1, 2043 are subject to mandatory redemption in part by pro-rata, without premium, commencing December 1, 2006 and December 1, 2037, respectively, from sinking fund payments made by SCLAA.

E. Taxable Tax Allocation Revenue Parity Bonds, Forward Series 2006 In November 2006, SCLAA issued $34,980,000 principal amount of Taxable Tax Allocation Revenue Parity Bonds, Forward Series 2006. The proceeds were us ed to finance and refinance certain redevelopment activities benefiting the SCLAA.

The bonds mature from December 1, 2007 to December 1, 2043 in varying amounts. Principal is payable in annual installments ranging from $50,000 to $2, 320,000, commencing December 1, 2007. The bonds accrue interest at rates between 6.25% and 6.30%. Interest on the bonds is payable semi-annually on each June 1 and December 1, commencing June 1, 2007.

30 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
E. Taxable Tax Allocation Revenue Parity Bonds, Forward Series 2006, Continued The bonds are subject to optional and mandatory redemption prior to maturity.

F. Taxable Subordinate Tax Allocation Revenue Bonds, Series 2006 In November 2006, the SCLAA issued $64,165,000 principal amount of Ta xable Subordinate Tax Allocation Revenue Bonds, Series 2006. The proc eeds were used to finance certain redevelopment activities benefiting the SCLAA.

The bonds mature from December 1, 2007 to December 1, 2043 in varying amounts. Principal is payable in annual installments ranging from $395,000 to $4,13 5,000, commencing December 1, 2007. The bonds accrue interest at 6.05%. Interest on the bonds is payable semiannually on each June 1 and December 1, commencing June 1, 2007.

The bonds are subject to optional and mandatory redemp tion prior to maturity. As of June 30, 2025, the required reserve for the Bonds was met with fiscal agent cash. The bo nds are a special obligation of the SCLAA payable from tax increment revenues. The am ount of bonds outstanding at June 30, 2025 is $48,765,000.

G. Taxable Housing Set-Aside Revenue Parity Bonds, Series 2007 In March 2007, the SCLAA issued $41,460,000 princi pal amount of Taxable Housing Set-Aside Revenue Parity Bonds, Series 2007. The proceeds were used to finance certain low-and moderate-income housing programs of the Authority. On July 7, 2009, $20,000,000 of bond proceeds were invested in a loan to the Victorville Water District. Legal coun sel for the City has indicated that approval by the bond insurer is not required for the investment of proceeds not held by the bond trustee. In February 2013, this loan was repaid in full with interest.

Bonds maturing on December 1, 2012, December 1, 2017, December 1, 2022, December 1, 2027, and December 1, 2043 in the amounts of $3,265,000, $2,800,000, $3,620,000, $4,685,000, and $27,090,000, respectively, are term bonds. The outstanding bonds bear interest at 5.00%, 5.20%, 5.25%, 5.40%, and

5.55% due June 1 and December 1 of each year.

The bonds are subject to optional redemption in whole or in part by lot, without premium.

As of June 30, 2025, the required reserve for the Bo nds was met with fiscal agent cash and an insurance policy. The bonds are a special obligation of th e SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2025 is $30,050,000.

31 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
H. Subordinate Tax Allocation Reve nue Bonds, Series 2007 (Non-Housing) In December 2007, the SCLAA issued $42,000,000 principal amount Subordinate Tax Allocation Revenue Bonds, Series 2007. The proceeds were used to financ e certain redevelopment activities benefiting the SCLAA.

Bonds maturing on December 1, 2008, December 1, 2009, December 1, 2012, December 1, 2017, December 1, 2022, December 1, 2027, December 1, 2032, Decemb er 1, 2032, December 1, 2037, December 1, 2037, December 1, 2037, December 1, 2043 and December 1, 2043 in the amounts of $480,000, $425,000, $1,395,000, $2,805,000, $3,640,000, $4,745,000, $3,000,000, $3,275,000, $3,325,000, $3,800,000, $1,250,000, $9,210,000, and $4,650,000, respectively, are term bonds. The outstanding bonds bear interest at 4.000%,

4.200%, 4.375%, 5.250%, 5.375%, 5.600%, 5.900%, 6.000%, 5.900%, 6.000%, 6.100%, 5.900%, and 6.150% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity at the option of the Authority, on or after December 1, 2017, in whole or in part by lot, without premium.

The bonds maturing on the dates described above are subject to mandatory redemption in part by lot, without premium, commencing December 1, 2010, Dece mber 1, 2013, December 1, 2018, December 1, 2023, December 1, 2028, December 1, 2028, December 1, 2033, December 1, 2033, December 1, 2033, December 1, 2038, and December 1, 2038, respectively, from sinking fund payments made by SCLAA.

I. Subordinate Tax Allocation Revenue Bonds, Series 2008A In May 2008, the SCLAA issued $13,334,925 principal amount of Subordinate Tax Allocation Revenue Bonds, Series 2008A. The proceeds were used to financ e certain redevelopment activities benefiting the SCLAA and to partially refund the $35,000,000 principal amount of Subordinate Tax Allocation Revenue Notes, Series 2008.

Bonds maturing on December 1, 2010, December 1, 2013, December 1, 2018, December 1, 2023, December 1, 2033, December 1, 2038, and December 1, 2043 in the amounts of $130,000, $215,000, $340,000, $530,000, $1,675,000, $1,285,000, and $1,720,000, respectively, are Current Interest Bonds. The outstanding bonds bear interest at 4.25%, 4.50%, 5.00%, 5.25%, 6.00%, 6.00%, and 6.00% due June 1 and December 1 of each year.

Bonds maturing on December 1 of each year beginning 2044 through 2050 in the initial principal amounts of $1,316,266, $1,216,397, $1,123,621, $1,037,536, $957,600, $883,633, and $814,910 are Capital Appreciation Bonds. The outstanding bonds bear yields to maturity of 7.300%, 7.320%, 7.340%, 7.360%, 7.380%, 7.400%, and 7.420%. All of the bonds have a future maturity value of $131,805,000 at June 30, 2025.

32 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
I. Subordinate Tax Allocation Reve nue Bonds, Series 2008A, Continued The current interest bonds are subject to redemption pr ior to maturity at the option of the Authority, on or after December 1, 2018, in whole or in part by lot, without premium. The Capital Appreciation Bonds are subject to optional redemption in whole or in part by lot, without premium.

J. Debt Service Requirements to Maturity
The annual requirements to amortize outstanding SCLAA debt as of June 30, 2025, are as follows for each fiscal year ending June 30:

K. Pledged Revenue
All of the above Tax Allocation Bonds are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes.

The SCLAA contains a portion of the Victor Valley Economic Development Authority (VVEDA) Successor Agency (see Note 8 for additional information). The RPTTF (tax increment distributions) from VVEDA represent the primary revenue of the SCLAA.

Year Ending June 30, Principal* Interest
2026 7,630,000$ 13,767,567$
2027 8,035,000 13,352,576
2028 8,455,000 12,914,560
2029 8,905,000 12,449,433
2030 9,385,000 11,956,957
2031-35 55,280,000 51,088,777
2036-40 73,120,000 32,634,179
2041-45 76,591,226 33,988,567
2046-50 5,218,788 85,406,955
2051-52 814,910 8,635,045
Subtotal 253,434,924 276,194,616$
Acccreted Amount 17,973,775
Discounts/Premiums (1,816,592)
Total 269,592,107$
Tax Allocation Bonds
*This total includes capital appreciation of $104,677,126 for tax allocation bonds that will be accrued in the future years. 33 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
K. Pledged Revenue, Continued
As a result of the state’s action to dissolve all re development agencies in the state of California, the VVEDA Successor Agency no longer receives the full amount of tax increment previously pledged by the dissolved redevelopment agency to its bondholders. In its place is a new revenue stream (RPTTF distributions) provided to the VVEDA Successor Agen cy that represents only that portion of tax increment that is necessary to pay the approved enforceable obligations that come due for that fiscal year.

For the current year, pledged gross revenue (net of certain expenses were so required by the debt agreement) as a percentage of debt service payments are indicated in the table below:

5. ADVANCES TO/FROM

A. Advances to/from the City

a) Per a loan agreement approved on September 15, 2009 by the Board of Victorville RDA, a $10,000,000 advance was made from the Bear Valley Road Redevelopment Project Area (RDA Capital Project Fund) to the SCLAA. The advance is to be used to contin ue redevelopment at SCLAA and to fund prior years’ capital improvements and redevelopm ent project expenses. The advance bears interest at 3% using the simple interest method in accordance with SB-107. The outstanding balance of the advance as of June 30, 2025, is $12,133,339.

Annual Amount Annual Debt
of Pledged Service Pa yment Pled ged
Revenue (Net (of All Debt Revenue as
of Expenses, Secured b y a Percentage
Description of Pled ged Revenue Where Required) This Revenue) of Debt Service Property Tax Increment Pledged by
the Southern California Logistics
Airport Authority
21,384,332$ 21,429,559$ 100%Fund Reporting Receivable Fund Reporting
Payable Amount
Successor Agency* SCLAA 12,133,339$ a)
SCLAA City of Victorville 1, 200,000 b)
*Advances from the Successor Agency have been classified as Advances from Other Governments in the statement of net position.
34 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. ADVANCES TO/FROM, Continued
A. Advances to/from the City, Continued
b) A loan agreement was signed on April 18, 2023 by the City Council that authorizes the SCLAA to loan $2,000,000 to the City’s nonmajor gas utility enterprise fund for the construction of new gas infrastructure that will allow for the purchase of lower priced nat ural gas and future growth at SCLAA. The loan principal shall be repaid in five equal installments of $400,000 to commence in the year ending June 30, 2024 and conclude in the year ending June 30, 2028. Inte rest shall begin to accrue on the total principal amount commencing on July 1, 2023, and shall therea fter be calculated annually on the balance of the outstanding principal and shall be pa yable each year on June 30 at the annualized (averaged) LAIF rate of return. The outstanding balance of the advance as of June 30, 2025 is $1,200,000. Due to the uncertainty on when sufficient tax increment will be available to make payments on this loan, the obligation has not yet been included on the ROPS to request funding for repayment. In future fiscal years, the loan will be added to the ROPS.

6. PENSION PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiple-employer defi ned benefit pension plans administered by the California Public Employees’ Retirement System (C alPERS), which acts as a common investment and administrative agent for its participating member employers. The SCLAA’s share of the net pension liability is reported as a cost-sharing plan in these financial statements. Benefit provisions under the Plan are established by State statute and Local Governme nt resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members, who must be public employ ees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with fi ve years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following: the Basic Death Be nefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

35 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued
A. General Information about the Pension Plan, Continued The Plan’s provisions and benefits in effect as of the measurement period ended June 30, 2024, are summarized as follows:

Contributions
Section 20814(c) of the California Public Employees ’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Th e SCLAA is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. SCLAA contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension pl an terms as plan member contributions requirements are classified as plan member cont ributions. For the fiscal year ended June 30, 2025, SCLAA made contributions totaling $613,058.

Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.5% @ 55 2.0% @ 62
Benefit Vesting Schedule 5 Years
of Service
5 Years
of Service
Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 to 55 52 to 67
Required Employee Contribution Rates 8.00% 7.78%
Required Employer Contribution Rates:

Normal Cost Rate 11.23% 11.23%
Payment of Unfunded Liability 356,308$ N/A Miscellaneous
36 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Ou tflows/Inflows of Resources Related to Pensions Actuarial Assumptions
The total pension liability for the Miscellaneous Plan for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The total pension liability for the Miscellaneous Plan was based on the following assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal
Cost Method
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases (1)
Mortality Rate Table (2)
Post Retirement Benefit Income (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.
(3) The lesser of contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter. 37 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Ou tflows/Inflows of Resources Related to Pensions, Continued
In determining the long-term expected rate of retu rn, CalPERS took into account both short-term and long-term market return expectations. Using historical returns all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach.

The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Change in Assumptions
The discount rate and long-term rate of return remained the same as prior year from 6.90% to 6.90% and the inflation rate remained the same as 2.30% from the measurement date June 30, 2023 to June 30, 2024.

Assumed
Asset Real Return
Asset Class (a) Allocation (a) (b)
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84
Private Equity 13.00% 7.28
Treasury 5.00% 0.27
Mortgage-backed Securities 5.00% 0.50
Investment Grade Corporates 10.00% 1.56
High Yield 5.00% 2.27
Emerging Market Debt 5.00% 2.48
Private Debt 5.00% 3.57
Real Assets 15.00% 3.21
Leverage -5.00% (0.59)
Total 100.00%
(a) An expected inflation of 2.30% used for this period (b) Figures are based on the 2021 Asset Liab ility Management study. 38 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Ou tflows/Inflows of Resources Related to Pensions, Continued
Proportionate Share of Net Pension Liability – City’s Miscellaneous Agent Multiple-Employer Plan Allocation to the SCLAA
The SCLAA’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The SCLAA’s proportionate share of the net pension liability was based on a projection of the SCLAA’s long-term share of contributions to th e Miscellaneous Plan rela tive to the projected contributions of the City, actuarially determined.

The SCLAA’s proportionate share of the net pensio n liability for the Miscellaneous Plan as of the measurement dates ended June 30, 2023 and 2024, was as follows:

Pension Expense and Deferred Outflows and Inflows of Resources For the year ended June 30, 2025, the SCLAA recognized pension expense of $669,532 for the Miscellaneous Plan. At June 30, 2025, the SCLAA reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Miscellaneous Plan:

$613,085 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2026. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits.

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability Proportionate
(a) (b) (c) = (a) - (b) Share
Balance at June 30, 2023 (MD) 16,994,501$ 12,064,330 $ 4,930,171 $ 6.51% Balance at June 30, 2024 (MD) 18,353,830 13,170,464 5,183,366 6.50% Net Changes During 2023-24 1,359,329$ 1,106,134 $ 253,195 $ -0.01% Increase (Decrease)
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension Contributions Subsequent to the
Measurement Date 613,085 $ - $ Changes of Assumptions 111,019 - Differences Between Expected and Actual Experience 713,894 (70,427) Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 201,980 - Total 1,639,978 $ (70,427) $
39 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Ou tflows/Inflows of Resources Related to Pensions, Continued
Other amounts reported as deferred outflows of reso urces and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the SCLAA’s proportionate share of the net pension liability for the Miscellaneous Plan, calculated using the discount rate of 6.90%, as well as what the SCLAA’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separate issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2025, the SCLAA had no outstanding amou nt of contributions to the Miscellaneous Plan required for the year ended June 30, 2025.

Measurement
Period
Ended June 30,
Deferred
Inflows of
Resources
2025 335,163 $
2026 593,230
2027 102,642
2028 (74,569)
2029 -
Thereafter -
1% Decrease Current Rate 1% Increase
-5.90% -6.90% -7.90%
Net Pension Liability 7, 818,903$ 5,183,366 $ 3,025,993 $ Discount Rate
40 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. OTHER POST-EMPLOYMENT BENEFTIS PLAN
A. Plan Descriptions
The SCLAA participates in the City’s Other Postemployment Benefits Defined Benefit Pension Plan and the SCLAA’s share of the total OPEB liability is reported as a cost-sharing plan in these financial statements.

The City Plan provides medical benefits to eligible retired City employees and beneficiaries in accordance with various labor agreements. The plan covers employ ees who retire directly from the City with eight years of service. The City provides a contribution up to a certain amount (a portion of the HMO single premium). The percentage varies based on years of service.

B. Funding Policy
The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you-go basis (i.e., as medical insurance premiums become due). The City has not established a trust that is administered by the City for the purpose of holding assets accumulated for plan C. Contributions
The City Plan and its contribution requirements ar e established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the year’s retiree medical premiums (pay-as-you- go basis). For the fiscal year ended June 30, 2025, the SCLAA’s cash contributions were $20,142 in cash benefit payments, $88 in administrative costs, and the estimated implied subsidy was $7,358, resulting in total payments of $27,588.

D. Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2024 and determined by an actuarial valuation as of June 30, 2024.

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 3.95%
Inflation 2.50%
Salary Increases 2.75 per annum, in aggregate
Investment Rate of Return N/A
Mortality, Retirement,
Disability,
and Termination 2000-2019 Experience Study
Mortality Improvement
Healthcare Trend Rate
Postretirement mortality projected fully generational
with Scale MP-2021
Non-Medicare: 7.9% for 2026, decreasing to an ultimate
rate of 3.45% in 2076
Medicare (Non-Kaiser) - 6.9% for 2026, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 5.65% for 2026, decreasing to an
ultimate rate of 3.45% in 2076
41 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. OTHER POST-EMPLOYMENT BENEFTIS PLAN, Continued
E. Discount Rate
The discount rate used to measure the total OPEB liability was 3.93%. The discount rate is determined based on the Bond Buyer 20-Bond Index since the City has not established a trust.

F. Change in Actuarial Assumptions
The following actuarial assumption changes occurred form the measurement periods ended June 30, 2023 to 2024:
 The discount rate changed from 3.65% to 3.93% based on changes in the index.  Inflation remained unchanged at 2.50%.
 The healthcare trend rate was updated as follows : Non-Medicare rate decreased from 8.5% to

7.9%, Medicare (Non-Kaiser) decreased from 7.5% to 6.9%, and Medicare (Kaiser) decreased from

6.25% to 5.65%.
 Demographic assumptions were updated from the CalPERS 1997-2015 Experience Study to the CalPERS 2000-2019 Experience Study.
 Mortality improvement was updated from Scale MP-2020 to Scale MP-2021.

G. Allocation of Total OPEB Liability
The SCLAA’s proportionate share of the total OPEB liability as of the measurement dates ended June 30, 2023 and 2024, was as follows:

H. Sensitivity of the Total OPEB Liab ility to Changes in the Discount Rate The following presents the SCLAA’s proportionate share of the total OPEB liability if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Total OPEB
Liability
Proportionate
Share
Balance - June 30, 2023 (MD) 2,115,912$ 8.37%
Balance - June 30, 2024 (MD) 2,226,953 8.07%
Net Changes During 2023-24 (111,041)$ -0.30%
1% Decrease
(2.93%)
Current Rate
(3.93%)
1% Increase
(4.93%)
Total OPEB Liability 2, 632,890$ 2,226,953 $ 1,902,422 $ Discount Rate
42 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. OTHER POST-EMPLOYMENT BENEFTIS PLAN, Continued
I. Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the SCLAA’s proportionate share of the total OPEB liability if it were calculated using health care cost trend rates that are one percentage point lower (Non-Medicare: 6.9% for 2026 decreasing to 2.45% in 2076; Medicare (Non-Kaiser): 5.9% for 2026, decreasing to an ultimate rate of 2.45% in 2076; Medicare (Kaiser): 4.65% for 2026, decreasing to an ultimate rate of 2.45% in 2076) or one percentage point higher (Non-Medicare: 8.9% for 2026 decreasing to 4.45% in 2076; Medicare (Non- Kaiser): 7.9% for 2026, decreasing to an ultimate rate of 4.45% in 2076; Medicare (Kaiser): 6.65% for 2026, decreasing to an ultimate rate of 4.45% in 2076) than the current rate:

J. Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB ex pense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.

The recognition period differs depending on the source of the gain or loss:

K. OPEB Expense and Deferred Outflows/In flows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the SCLAA recognized OPEB expense of $57,435. As of fiscal year ended June 30, 2025, the SCLAA reported deferred ou tflows/inflows of resources related to OPEB from the following sources:

1% Decrease Current Rate 1% Increase
Total OPEB Liability 1, 836,386$ 2,226,953 $ 2,740,408 $ Healthcare Trend Rate
Net Difference Between Projected and Actual
Earnings on OPEB Plan Investments
Plan Investments 5 Years
All Other Amounts
Expected average remaining
service
lifetime (EARSL) (10 Years at
June 30, 2024 measurement date)
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Employer Contributions Subsequent to the
Measurement Date 27,588 $ - $
Differences Between Expected and Actual 80,134 (317,989) Changes of Assumptions 160,185 (387,159) Total 267,907 $ (705,148) $
43 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. OTHER POST-EMPLOYMENT BENEFTIS PLAN, Continued
K. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, Continued The $27,588 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the Total OPEB liability during the fiscal year ending June 30, 2026. Other amounts reported as defe rred outflows of resources related to OPEB will be recognized as expense as follows:

L. Payable to the Pension Plan
At June 30, 2025, the SCLAA had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2025.

8. COMMITMENT AND CONTINGENCIES
A. Litigation
The SCLAA is a defendant in certain legal actions arising in the normal course of operations. The accompanying basic financial statements reflect a liabi lity for the probable amounts of loss associated with these claims.

B. Southern California Logistics Airport Authority and Stirling Enterprise LLC In the early 1990s the U.S. Air Force closed George Ai r Force Base (former Base). In response the local communities formed the Victor Valley Economic Development Authority (VVEDA). VVEDA and the Air Force entered into agreements to lease and ultimately transfer title to the former Base to VVEDA. The subject land is designated as ei ther Public Benefit Transfer (PBT) Parcels or Economic Development Conveyance (EDC) Parcels. The PBT Parcels are made up of approximately 2,200 acres previously used by the U.S. Air Force and are restricted to use as an airport. These parcels were transferred to SCLAA at no cost.

The EDC Parcels are made up of approximately 1,800 acres of adjacent property which may be developed for use as commercial property. SCLAA paid $1,636,489 and is required to pay additional $37,176 for these EDC Parcels. In 1993 a Redevelopment Plan was adopted by VVEDA establishing a redevelopment project area encompassing the former Base as well as approximately 55,000 additional acres. VVEDA delegated its decision-making authority relative to the former Base, now known as Southern California Logistics Airport or SCLA, to the Southern Califor nia Logistics Airport Authority (SCLAA). SCLAA is a component unit entity of the City of Victorville. It is also a Joint Power Authority comprised of the City of Victorville and the Victorville Water District.

Measurement Period
Ending June 30,
Deferred
Inflows of
Resources
2026 (100,681) $
2027 (76,033)
2028 (53,376)
2029 (60,668)
2030 (61,151)
Therefore (112,919)
44 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. COMMITMENT AND CONTINGENCIES, Continued
B. Southern California Logistics Airport Authority and Stirling Enterprise LLC, Continued SCLAA adopted a Specific Plan in conformity wi th the Redevelopment Plan and adopted a Master Development Plan establishing its goal to develop th e area as a cargo and aircraft maintenance facility and a business/industrial center ther eby creating jobs and improving ec onomic conditions in the Victor Valley.

In July 1998 SCLAA and Stirling Enterprises, LLC and it s related entities (Stirling) entered into the first of several development agreements for the marketing, acquisition, operation and development of SCLAA.

As development occurred, these agreements were amended, which involved multiple property transactions between the SCLAA and Stirling as the SCLAA acquired property fr om the U.S. Air Force.

In September 2021, Stirling’s ownership structure was changed, whereby Stirling relinquished its role as developer to Prologis L.P. (Prologis).

In August 2016, three agreements with Stirling were approved by the SCLAA Board of Directors that were intended to serve as a framework that encourages development before the expiration of the Master Agreement (MA). The three agreements are a Satisfaction and Termination Agreement, a Disposition, Exchange and Development Agreement (#2) and an Option and Development Agreement.

The Disposition, Exchange and Development Agreement (#2) allows for the removal of approximately 280 acres of Airport-owned property from the definition of EDC Parcel s and the title transfer in fee to Stirling, of approximately 280 acres. The Airport-owned property will become available for the Airport for revenue-producing purposes and the Airport will have the flexibility to develop the subject property on a ground-lease basis with avia tion and nonaviation (Section 2.01 of the Development and Exchange Agreement). Revenue sharing will only exist relating to these parcels if the respective transaction is procured by Stirling and be split 80/20 with the larger share to benefit SCLAA.

The Disposition, Exchange, and Development Agreement also provides for the disposition of additional off-airport property. In addition to the Stirling Exc hange Parcels, SCLAA will then transfer, in fee, 200 acres of property for the $.0203/psf purchase price ( $176,448) and participate in revenue sharing for net proceeds in an amount equal to 30% (Section 2.03 of the Development and Exchange Agreement). Net proceeds are generally defined to be revenues generated from the eventual sale by Stirling that are residual to infrastructure costs, EIR costs and developer credits. The Agreement also transfers the public infrastructure obligations of the Authority pursuant to the MA and DDA to Stirling.

Finally, the Option and Development Agreement, in co nnection with performance obligations related to the Development and Exchange Agreement, will provide Stirling the ability to acquire additional acreage currently provided for in the Master Agreement. Su ch an exercise of option will occur in 50-acre increments based on Stirling having developed 500,000 sq uare feet of property owned by it. The Option Agreement is set up to run through December 2050 and can terminate sooner due to nonperformance described in Section 1.5 of the Option and Development Agreement.

With the recent ownership changes that occurred in 2021, the Disposition, Exchange, and Development Agreement (#2) and the Option and Development Ag reement were amended. Currently, the presiding agreement includes the Amendment No. 2 to Disposition, Exchange, and Development Agreement #2, the Amended and Restated Option and Development Agreement, and Satisfaction and Termination Agreement. The revenue participation and property sa le information previously stated in the section remains the same
45 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. COMMITMENT AND CONTINGENCIES, Continued
C. Management
Prologis is allowed to lease or caus e to be leased existing buildings and facilities the located on the EDC Parcels and shall participate in 20% of the Net Lease Revenue from any such leases. The Authority has retained the right to lease the PBT Parcels and retain revenues from those leases but shall allow Prologis to participate in 20% of any net lease revenues from tenants who may be procured by Prologis and approved by the Authority. Any revenues from other interim uses on the former Base such as filming will be shared on a 50%/50% basis between Prologis and the Authority.

9. SCLAA’S FINANCIAL CONDITION, SI GNIFICANT FINANCIAL OBLIGATIONS, AND MANAGEMENT’S PLANS
In fiscal year 08/09, the assessed value for the Victor Valley Redevelopment Project Area was approximately $9.49 billion. Beginning in fiscal year 09/10, there were significant decreases in assessed value for the Victor Valley Redevelopment Project Area. Assessed values fo r the Project Area reached a low point of $6.6 Billion in fiscal year 12/13. The decrease was largely the re sult of the Great Recession. Since fiscal year 12/13, assessed values have increased steadily. For fiscal ye ar 20/21, the assessed value for the Project Area was approximately $9.99 billion. The stea dy increase in assessed values have resulted in the SCLAA paying all past due debt service in the previous fiscal year. As of the December 1, 2018 tax distribution, the SCLAA was no longer in default. In 2018, Moody’s issued an upgraded rating on the Successor Agency to the Victor Valley Economic Development Authority (VVEDA) Housing Set-Aside Tax Allocation Bonds and the Non-Housing Tax Allocation Bonds to “stable” outlook as a result of resolving the outstanding defaults, and the prospective analysis on increasing assessed values in the project area.

During fiscal year 19/20 and 20/21, SCLAA had results that were not as fa vorable as fiscal year 18/19 with a net loss of $3.5 million and $2.5 million, respectively. However, in fiscal years 23/24 and 24/25, SCLAA had a positive net income of $5,110,133 and $9,150,148, respectively. A summary of the financial condition of the SCLAA enterprise fund is as follows:

A. Management’s Plans with Respect to its Financial Condition Management plans to ensure that annual expenditures do not exceed annual revenues and to build the reserves that are necessary to provide for economic uncertainties.

The SCLAA has continued to maintain a balance bu dget since 2007-2008 and all revenues are projected to cover current liabilities.

Beginning Net Position (102,047,894)$
Restatement - due to implementation of GASB 101 (134,622) Beginning Net Position, as restated (102,182,516)
Net Income (Loss) 9,150,149
Ending Net Position (93,032,367)$
46 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

9. SCLAA’S FINANCIAL CONDITION, SI GNIFICANT FINANCIAL OBLIGATIONS, AND MANAGEMENT’S PLANS, Continued
A. Management’s Plans with Respect to its Financial Condition, Continued Regarding the SCLAA’s financial condition, an Interfund loan agreement was signed July 1, 2016 by the Board of SCLAA and a $10,000,000 advance was made available from the 2007 SCLA Housing bond fund to the Airport Operations Fund and has been used to subsidize operations. The advance had a term repayment of five years, with an annualized Wall Street Journal Prime Rate as the interest rate. In October 2022, the outstanding balance of the loan was repaid. The advance was within the fund itself.

10. JOINTLY GOVERNED ORGANIZATIONS
A. Victor Valley Economic Development Authority
The Victor Valley Economic Development Authority (VVEDA) was formed in 1992 by the Cities of Victorville and Hesperia, the Town of Apple Valley, and the County of San Bernardino to provide the mechanism and funding to manage development of the property formerly known as the George Air Force Base, facilitate the successful reuse of the property, and promote economic development within the area surrounding the Air Base. In 2000, the City of Adel anto was added as a member of the Authority. In December 2011, Assembly Bill 1X 26 (the Bill) dissolved VVEDA, and as such all assets of the former VVEDA have been transferred to the VVEDA Successor Agency and are subject to the distribution’s provisions of the Bill. The SCLAA contains a portion of the VVEDA Successor Agency with the Town of Apple Valley and City of Adelanto comprising the rest of the VVEDA Successor Agency. The RPTTF (tax increment distributions) from VVEDA represent the primary revenue of the SCLAA. Financial statements may be obtained by sending a written request to Vi ctor Valley Economic Development Authority, 18374 Phantom Street, Victorville, CA 92394.

11. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (the Bill) that provides for the dissolution of all redevelopment agencies in the state of California. This action impacted the SCLAA because the SCLAA has historically funded its operatio ns and debt service using significant tax increment revenue from the Victor Valley Economic Developm ent Agency (VVEDA). VVEDA has acted as a pass- through agency for the various recipien ts of tax increment revenue in the Vi ctor Valley and is subject to the dissolution requirements of the Bill.

The Bill provides that upon dissolution of a redevelopm ent agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the Victorville City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 12-005.

47 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

11. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY, Continued
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the state of California cannot enter into new projects, obligations, or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

12. LEASES
The SCLAA, acting as lessor, leases buildings and land under long-term, noncancelable lease agreements.

The leases expire at various dates through 2056 and provide for renewal options ranging from 1 year to 55 years. During the year ended June 30, 2025, the SCLAA recognized $7,323,024 and $1,829,492 in lease revenue and interest revenue, respectively, pursuant to these contracts.

Certain leases provide for increases in future minimum annual rental payments based on a defined percent in the contract or increases in the Consumer Price Index, subject to certain minimum increases. Lease revenue comprises a majority of the SCLAA’s operating revenues, therefore, this activity is considered to be the principal operation of the SCLAA.

Total future minimum lease payments to be received under lease agreements are as follows:

Year Ending June 30, Principal Interest Total
2026 7,671,941$ 1,919,198$ 9,591,139$
2027 7,697,979 1,757,699 9,455,678
2028 8,100,403 1,596,919 9,697,322
2029 7,140,309 1,424,428 8,564,737
2030 6,926,162 1,252,276 8,178,438
2031-2035 27,045,809 4,015,567 31,061,376
2036-2040 7,334,366 1,963,652 9,298,018
2041-2045 6,876,236 1,126,410 8,002,646
2046-2050 3,737,598 476,572 4,214,170
2051-2055 2,548,464 133,722 2,682,186
2056 233,829 1,601 235,430
Total 85,313,096$ 15,668,044$ 100,981,140$
48 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

13. RESTATEMENT OF NET POSITION

During the fiscal year ended June 30, 2025, SCLAA recorded the following restatement:

(1) SCLAA implemented GASB Statement No. 101 Comp ensated Absences, which requires recognition of a liability as leave is earned lik ely to be used or paid. This resu lted in a restatement of the prior year’s compensated absences liability balance in order to include additional types of time off that were previously not included in the liability.

SCLAA
June 30, 2024, as previously reported (102,047,894)$
Implementation of GASB 101 (1) (134,622)
June 30, 2024, as restated (102,182,516)$
49 This page intentionally left blank
50 REQUIRED

SUPPLEMENTARY INFORMATION
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53 Southern California Logistics Airport Authority
Required Supplementary Information
For the year ended June 30, 2025
CalPERS Cost Sharing Plan
Schedule of the Proportionate Share of the Net Pension Liability - Last Ten Fiscal Years Reporting Fiscal Year 2016 2017 2018
Measurement Date 6/30/2015 6/30/2016 6/30/2017
Plan's proportion of the net pension liability 6.87% 7.07% 6.95% Plan's proportionate share of
the net pension liability 2,090,587$ 2,805,052$ 3,210,086$ Plan's covered payroll 1,343,244$ 1,368,422$ 1,579,911$ Plan's proportionate share of
the net pension liability as percentage
of its covered payroll 155.64% 204.98% 203.18%
Fiduciary net position as a percentage of the
total pension liability 5.50% 5.33% 5.18%
Notes to the schedule:

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2022:

There were no significant changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

From fiscal year June 30, 2023 to June 30, 2024:

From fiscal year June 30, 2024 to June 30, 2025:
*Fiscal year 2015 was the 1st year of implementation, therefore ten years are shown.

Benefit
Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a. Golden Handshakes).

Changes in Assumptions:

The discount rate and long-term rate of return remain the same as the prior year at 6.90%, and the inflation rate is also unchanged from the prior year at 2.30%
The discount rate and long-term rate of return remain the same as the prior year at 6.90%, and the inflation rate is also unchanged from the prior year at 2.30%
The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30%.

6.90% 6.86% 6.84% 7.18% 6.58% 6.51% 6.50%
3,189,455$ 3,546,936$ 3,838,581$ 2,599,527$ 4,503,687$ 4,930,169$ 5,183,366$ 1,565,360$ 1,534,654$ 1,686,096$ 1,676,551$ 1,868,216$ 2,069,493$ 1,988,118$ 203.75% 231.12% 227.66% 155.05% 241.07% 238.23% 260.72%

5.22% 5.11% 5.04% 6.03% 4.73% 4.62% 4.66%
55 Southern California Logistics Airport Authority
Required Supplementary Information
For the year ended June 30, 2025
CalPERS Cost Sharing Plan
Schedule of Pension Plan Contributions - Last 10 Fiscal Years Fiscal Year Ended 2016 2017 2018 2019
Actuarially determined contribution 233,116 $ 273,075$ 275,299$ 279,699$ Contributions in relation to actuarially
deemed contributions (233,116) (273,075) (275,299) (279,699) Contribution deficiency (excess) -$ -$ -$ -$ Covered payroll 1,368,422$ 1,579,911$ 1,565,360$ 1,534,654$ Contributions as a percentage of
covered payroll 17.04% 17.28% 17.59% 18.23%
Notes to Schedule:

Valuation Date 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age
Amortization method Level percentage of payroll, closed Asset valuation method Fair Value except for 2015 is Market Value of Assets Discount Rate 6.90%
Inflation 2.75% to 2.30%
Salary increases
Retirement age 50 and up
Annual increase vary by category, entry age and duration of service
56 2020 2021 2022 2023 2024 2025
345,578$ 381,393$ 414,447$ 484,566$ 515,986$ 613,085$ (345,578) (381,393) (414,447) (484,566) (515,986) (613,085) -$ -$ -$ -$ -$ -$ 1,686,096$ 1,676,551$ 1,868,216$ 2,069,493$ 1,988,118$ 2,435,459$

20.50% 22.75% 22.18% 23.41% 25.95% 25.17%
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2022 6/30/2023 57 Southern California Logistics Airport Authority
Required Supplementary Information
For the year ended June 30, 2025
OPEB Plan
Schedule of the Proportionate Share of Total OPEB Liability - Last Ten Fiscal Years* Reporting Fiscal Year 2018 2019 2020
Measurement Date 6/30/2017 6/30/2018 6/30/2019
Plan's proportion of the total OPEB liability 8.43% 8.57% 8.19% Plan's proportionate share of
the total OPEB liability 2,014,829$ 1,888,372$ 2,093,649$ Plan's covered payroll 1,494,600$ 1,735,340$ 1,993,268$ Plan's proportionate share of
the total OPEB liability as percentage
of its covered payroll 134.81% 108.82% 105.04%
Notes to Schedule:

Changes in Assumptions:

Discount Rate 3.58% 3.87% 3.50%
Mortality Improvement Rates Scale MP-2016 Scale MP-2018 Scale MP-2018 In the June 30, 2018 measurement period, the pre-65 waived retiree re-election was updated to be 10% after age 65. * Fiscal year 2018 was the 1st year of implementation.

In the June 30, 2024 measurement period, the following medical trend rates changed: Non-Medicare rate decreased from

8.5% to 7.9%, Medicare decreased from 7.5% to 6.9%, and Kaiser decreased from 6.25% to 5.65%.

In the June 30, 2023 measurement period, the following medical trend rates remained unchanged: Non-Medicare increased by 8.5%, Medicare increased by 7.5%, and Kaiser increased by 6.25%.

In the June 30, 2022 measurement period, the following medical trend rates changed: Non-Medicare increased from 7.0% to 8.5%; Medicare increased from 6.1% to 7.5%; and Kaiser increased from 7.0% to 6.25%.

In the June 30, 2020 measurement period, the medical trend rate for Kaiser Senior Advantage plans decreased from 6.5% to

5.0%.

7.99% 7.75% 8.64% 8.40% 8.11%
2,214,981$ 2,363,785$ 2,040,084$ 2,124,416$ 2,239,911$ 2,348,399$ 2,396,424$ 2,827,400$ 2,557,509$ 3,183,851$

94.32% 98.64% 72.15% 83.07% 70.35%

2.21% 2% 3.54% 3.65% 3.93%
Scale MP-2020 Scale MP-2020 Scale MP-2021 Scale MP-2021 Scale MP-2021 59 This page intentionally left blank
60 SUPPLEMENTARY INFORMATION
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63 Southern California Logistics Airport Authority
Combining Statement of Net Position
June 30, 2025
(With Comparative Data for June 30, 2024)
Non Other
Aeronautical Aeronautical Services
ASSETS
Current assets:

Cash and investments 11,642,930$ 4,105,041$ 25,837,550$ Cash with fiscal agent - - 27,325,317 Accounts receivable 324,745 - - Interest receivable 455,293 921 200 Due from other governments - - - Leases 7,677,132 - - Inventory 5,165 - - Total current assets 20,105,265 4,105,962 53,163,067 Noncurrent:

Prepaid deposits 1,667 528 - Advances to City of Victorville - 1,200,000 - Leases 77,635,964 - - Capital assets:

Nondepreciable capital assets 2,907,400 - 13,793,182 Depreciable capital assets 53,940,506 803,708 253,600,515 Accumulated depreciation (24,560,557) (2,186) (181,054,275) Depreciable capital assets, net 29,379,949 801,522 72,546,240 Total noncurrent assets 109,924,980 2,002,050 86,339,422 Total assets 130,030,245 6,108,012 139,502,489 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - OPEB related 267,907 - - Deferred outflow - pension related 1,639,978 - - Deferred charge on refunding - - 1,128,866 Total deferred outflows of resources 1,907,885 - 1,128,866

LIABILITIES
Current liabilities:

Accounts payable 375,673 368,077 - Interest payable - - 1,166,156 Deposits payable 797,845 17,704 - Unearned revenue 437,081 12,481 - Compensated absences - due within one year 115,432
Total OPEB Liability - due within one year 12,958 - - Long-term liabilities - due within one year - - 7,630,000 Total current liabilities 1,738,989 398,262 8,796,156 Noncurrent liabilities:

Advances from other governments - - 12,133,339 Total OPEB liability 2,226,953 - - Net pension liability 5,183,366 - - Long-term debt - - 261,962,107 Compensated absences 183,617 - - Total noncurrent liabilities 7,593,936 - 274,095,446 Total liabilities 9,332,925 398,262 282,891,602

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - OPEB related 705,148 - - Deferred inflows - pension related 70,427 - - Deferred Inflows - leases 78,311,500 - - Total deferred inflows of resources 79,087,075 - -

NET POSITION
Net investment in capital assets 32,119,232 801,522 (154,798,502) Unrestricted 11,398,898 4,908,228 12,538,255 Total net position 43,518,130$ 5,709,750 $ (142,260,247)$ 64 2025 2024
41,585,521$ 41,290,155$
27,325,317 26,097,008
324,745 401,630
456,414 287,912
- 864,253
7,677,132 7,246,566
5,165 3,612
77,374,294 76,191,136
2,195 4,149
1,200,000 1,600,000
77,635,964 77,962,659
16,700,582 15,760,072
308,344,729 299,509,331
(205,617,018) (197,913,004)
102,727,711 101,596,327
198,266,452 196,923,207
275,640,746 273,114,343
267,907 237,333
1,639,978 1,768,477
1,128,866 1,263,381
3,036,751 3,269,191
743,750 594,660
1,166,156 1,197,937
815,549 742,742
449,562 850,360
115,432 133,833
12,958 8,504
7,630,000 7,245,000
10,933,407 10,773,036
12,133,339 11,678,089
2,226,953 2,115,912
5,183,366 4,930,171
261,962,107 267,735,859
183,617 112,463
281,689,382 286,572,494
292,622,789 297,345,530
705,148 762,291
70,427 183,799
78,311,500 80,139,808
79,087,075 81,085,898
(121,877,748) (130,492,014)
28,845,381 28,444,120
(93,032,367)$ (102,047,894) $
65 Southern California Logistics Airport Authority
Combining Statement of Revenues, Expenses and Changes in Net Position For the year ended June 30, 2025
(With Comparative Data for the year ended June 30, 2024) Non Other
Aeronautical Aeronautical Services
OPERATING REVENUES:

Charges for services:

Landing fees 1,278,330$ -$ -$ Fuel flowage fees 310,743 - - Rent and lease revenue 9,280,117 287,409 749,101 Total charges for services 10,869,190 287,409 749,101 Fines and forfeitures 28,817 - - Other 916,923 33,901 - Total operating revenues 11,814,930 321,310 749,101 OPERATING EXPENSES:

Personnel services 3,773,477 206 - Maintenance and operations 5,800,167 164,638 26,480 Depreciation 2,374,841 - 5,440,023 Total operating expenses 11,948,485 164,844 5,466,503 Operating income (loss) (133,555) 156,466 (4,717,402) NONOPERATING REVENUES (EXPENSES):

Taxes 208,410 - 21,430,447 Investment income 2,235,284 245,452 2,193,771 Interest expense - - (16,598,791) Gain on sale of capital aAssets 1,375 - - Other nonoperating exepenses - - (19,637) Total nonoperating revenues (expenses) 2,445,069 245,452 7,005,790 Income before contributions and transfers 2,311,514 401,918 2,288,388 CONTRIBUTIONS AND TRANSFERS:

Capital contributions 637,958 (1,962) -

Capital grants 3,512,333 - - Total contributions and transfers 4,150,291 (1,962) - Change in net position 6,461,805 399,956 2,288,388 NET POSITION:

Beginning of year 37,190,947 5,309,794 (144,548,635) Restatements - due to implementation of GASB 101 (134,622) - - Beginning of year, as restated 37,056,325 5,309,794 (144,548,635) End of year 43,518,130$ 5,709,750$ (142,260,247)$ 66 2025 2024
1,278,330$ 1,492,219$
310,743 382,140
10,316,627 10,424,249
11,905,700 12,298,608
28,817 25,274
950,824 851,560
12,885,341 13,175,442
3,773,683 3,664,583
5,991,285 7,034,343
7,814,864 9,480,389
17,579,832 20,179,315
(4,694,491) (7,003,873)
21,638,857 21,875,148
4,674,507 4,998,166
(16,598,791) (16,804,585)
1,375 -
(19,637) 322,056
9,696,311 10,390,785
5,001,820 3,386,912
635,996 -
3,512,333 1,723,221
4,148,329 1,723,221
9,150,149 5,110,133
(102,047,894) (107,158,027)
(134,622) -
(102,182,516) (107,158,027)
(93,032,367)$ (102,047,894)$
67 Item Number: 18
City Council / Board of Directors
Written Communications
Meeting of: January 20, 2026
Submitted By:

Fredy Bonilla, City Engineer

Subject:

Cooperative Agreement with the County of San Bernardino for the Ridgecrest Road at Bluff Crest Street and Vista Point Drive Traffic Signal Project Recommendation:

That the Honorable City Council:
(1) Approve entry into a Cooperative Agreement with the County of San Bernardino to jointly participate in a project installing offset traffic signals at the Ridgecrest Road intersections with Bluff Crest Street and Vista Point Drive; and (2) Authorize the City Manager and City Attorney to make non-substantive changes and clarifications to the Cooperative Agreement.

Fiscal Impact:

Approval of the Cooperative Agreement will result in a fiscal impact of $695,264 to the City of Victorville. This amount represents the City’s 50 percent share of the total project cost of $1,390,528 with the remaining 50 percent ($695,264) funded by the County of San Bernardino (“SB County”). Planned revenue for SB County’s share of cost and expenses for this project will be included in a subsequent budget amendment request for Fiscal Year (“FY”) 2025/26 or will be included in the budget for FY 2026/27. An additional appropriation is not required at this time. The City’s share will be evenly split by Fund 200 (SLAD), Fund 250 (Measure I), and Fund 352 (Road DIF). Please see the available fund balances in the table below:

Fund Available Fund Balance
Fund 200 (SLAD) $3,312,987
Fund 250 (Measure I) $17,804,410
Fund 352 (Road DIF) $7,091,271
4 5
1 2
Strategic Plan Goal:

This item aligns with Goal E, Invest in Infrastructure, in the City of Victorville Strategic Plan 2023-2026. Entering into a cooperative agreement with SB County will provide funding to support the design and construction of the traffic signal.

Background:

In April of 2025, SB County’s Department of Public Works contacted and notified the City of Victorville Engineering Department of SB County’s initiation of an investigation for the potential installation of a signalized intersection on Ridgecrest Road. The investigation focused on the offset intersection of Ridgecrest Road with Vista Point Drive and Bluff Crest Street. Following the investigation, SB County traffic engineering staff informed City staff that the collected traffic data supported the installation of a traffic signal, based on the traffic signal warrant analysis. SB County requested the City’s input and participation in the project, as the centerline of Ridgecrest Road at the offset intersection serves as the boundary between the two agencies, effectively splitting the project area in half. The attached Vicinity Map (Attachment A) depicts the location of the proposed project.

Discussion:

The proposed Cooperative Agreement, (Attachment B) between the City of Victorville and SB County provides for joint participation in a project to install a new offset traffic signal on Ridgecrest Road along with necessary upgrades to existing infrastructure to address accessibility concerns. An offset intersection includes one main road on a straight line intersected by two side roads that do not line up exactly with each other. The two side roads are typically offset, being less than two hundred feet apart. The intersections of these two streets are too close to one another to be considered separate tee- intersections, so they are combined into one.

The City and SB County have discussed and agreed on how the project will be funded and who will be responsible for the work. The cost of the project will be split 50/50 between both agencies. The City of Victorville will be the lead agency on the project. The Public Works Traffic Engineering Division currently maintains a cooperative agreement with the County for the maintenance of the other existing shared traffic signals located on Ridgecrest Road. For the City to agree to take on the responsibility of the maintenance for the new signal, Engineering requested that the City take the lead on the design and construction of the project. This request was made for the new signal to meet current City design and equipment standards that will be compatible with existing equipment and to smoothly integrate it into the maintenance schedule. SB County agreed to the City’s request to be the lead agency and to pay their fair share of the planning and construction costs.

The scope of work that will be reimbursable to the City may include consultant services provided for the design of the offset traffic signal, City staff time to prepare and manage contracts, field investigations, and construction contract costs. The Cooperative Agreement with SB County includes limitations on the amount of funding the City can expend beyond the agreement amount without justification and their permission. The agreement is based upon an estimated cost considering a preliminary scope of work. 4 5
1 2
During the course of project development, the scope of work and estimated project costs may change. Amendments to the agreement may be required to increase the share of cost amount for any phase of the project development. Therefore, staff is seeking authorization to make minor adjustments to the agreement, should such changes be deemed necessary.

SB County has requested that the City provide a copy of the signed agreement to present to the County Board of Supervisors for approval. Once the agreement is approved by the County Board and returned, the City will proceed with issuing a Request for Proposals for consultant services to design the traffic signal. After the proposals are received and reviewed by City and County staff, the selected consultant and a recommendation will be presented to the City Council for consideration. This will allow the Council to determine whether to proceed with a budget amendment to include the project in the City’s Capital Improvement Program, funding the City’s estimated share of the project and approve an agreement with the recommended consultant, or to defer the project to the next fiscal year’s budget.

Staff recommends that the Honorable City Council approve the attached Cooperative Agreement with SB County to jointly install an offset traffic signal at Ridgecrest Road with Bluff Crest Street and Vista Point Drive, and to authorize the City Manager and City Attorney to make non-substantive revisions to the Cooperative Agreement as deemed necessary.

Staff is available for any questions Council may have.

Prepared By:

Harry Mayo, Senior Civil Engineer
Attachments: A. Vicinity Map
B. Cooperative Agreement
Attachment A
Vicinity Map

Attachment B
Cooperative
Agreement
Standard Contract

Page 1 of 9 ends

THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY

Public Works

Department Contract Representative Jeremy Johnson, P.E., Engineering Manager
Telephone Number 387-8165
Project Ridgecrest Road, Bluff Crest Street,
Vista Point Drive

Contractor City of Victorville
Contractor Representative Fredy Bonilla, City Engineer
Telephone Number (760) 955-5170
Contract Term Expiration December 30, 2030
Original Contract Amount $695,264
Amendment Amount $0
Total Contract Amount $695,264
Cost Center 6650002000 52002445 H15309
Grant Number (if applicable) N/A

IT IS HEREBY AGREED AS FOLLOWS:

WHEREAS, San Bernardino County ( COUNTY) and the City of Victorville ( CITY), (COUNTY and CITY are also each referred to herein as “Party” and collectively referred to herein as “Parties”) desire to cooperate and jointly participate in a project to install an offset intersection traffic signal, sidewalks, and Americans with Disabilities Act (ADA) compliant curb ramps at the offset T-intersection of Ridgecrest Road and Vista Point Drive and at Ridgecrest Road and Bluff Crest Street located in the Victorville area (hereinafter referred to as the “PROJECT”); and,

WHEREAS, the installation of the traffic signal necessitates the updating or construction of ADA curb ramps at the intersections, in accordance with the ADA; and,

Contract Number

SAP Number

Page 2 of 9 ends

WHEREAS, the PROJECT is equally located in the unincorporated area of the COUNTY and the incorporated area of the CITY; and

WHEREAS, California Streets and Highways Code section 1710 authorizes COUNTY to contract with CITY for CITY’s maintenance, construction, or repair of COUNTY roads , the cost being paid by COUNTY; and

WHEREAS, COUNTY determines that it is necessary for the more efficient maintenance, construction, or repair of the COUNTY roads identified herein to contract with CITY for the PROJECT; and

WHEREAS, the total estimated cost of the PROJECT is $1,390,528, with the COUNTY and CITY each responsible for fifty percent (50%) of the cost; and

WHEREAS, the COUNTY’s share of the PROJECT cost is estimated to be $695,264, and the CITY’s share is estimated to be $695,264, as more specifically detailed in Exhibit “A ,” attached hereto and incorporated herein by this reference; and

WHEREAS, COUNTY and CITY agree, after PROJECT completion, to amend existing Cooperative Agreement No. 22-1219 for Professional Services for Routine, Regular and Emergency Maintenance of Traffic Signals to add the PROJECT’s traffic signal; and

WHEREAS, the above -described costs are proportionate based on the work to be performed in each Party’s jurisdiction; and,

WHEREAS, CITY and COUNTY desire to set forth the responsibilities and obligations of each as they pertain to such participation, and to the design, construction, and funding of the PROJECT.

NOW, THEREFORE, IT IS MUTUALLY AGREED as follows:

1.0 CITY AGREES TO:

1.1 Act as the Lead Agency in the design, survey, construction, construction engineering, inspection, and California Environmental Quality Act ( CEQA) compliance (Public Resources Code section 21000 et seq.).

1.2 If required for the PROJECT, at its own cost, design and perform all right -of-way acquisition-related work inside the CITY ’s jurisdiction that is determined to be necessary for the PROJECT. Right-of-Way acquisition related work includes, but is not limited to, right -of-way document preparation (legal description and plat), appraisal, acquisition, temporary construction easements, utility easements, utility relocations, site clearance activities, plant/tree/fence/wall removal, and relocation/replacement, legal negotiations, eminent domain proceedings, property settlements, and all right-of-way capital costs (actual cost of right-of-way).

1.3 Provide plans and specifications and all necessary construction engineering for the PROJECT to COUNTY, for COUNTY's prior review and approval pursuant to paragraph 2.1.

1.4 Construct the PROJECT by contract in accordance with the plans and specifications of CITY, which have been reviewed and approved by C OUNTY pursuant to paragraphs 1.3 and 2. 1 to the satisfaction of and subject to concurrence of COUNTY.

Page 3 of 9 ends

1.5 Arrange for relocation of all utilities which interfere with construction of the PROJECT within the entire PROJECT limits, subject to paragraphs 1.2 and 3.9.

1.6 Obtain a no-cost permit from the COUNTY for work within the COUNTY’s right-of- way.

1.7 Advertise, competitively bid, award, and administer the construction of the PROJECT, in accordance with the provisions of California Public Contract Code applicable to cities and to require, as well as enforce, compliance by CITY’s contractors with all applicable laws and regulations, including Labor Code sections 1720 et seq. and 1770 et seq. that concern the payment of prevailing wages. CITY shall indemnify, defend (with counsel reasonably approved by COUNTY), and hold harmless COUNTY and its officers, employees, volunteers, and agents from any and all claims, actions, losses, damages, and/o r liability arising out of CITY’s obligations set forth in this paragraph.

1.8 CITY shall require all contractors and vendors working on the PROJECT to have appropriate and adequate insurance coverage for the mutual protection and benefit of the Parties. Except for Workers' Compensation and Errors and Omissions and Professional Liability policies, CITY shall require and ensure that all CITY contractors/subcontractors for the PROJECT shall have insurance policies that contain endorsements naming the COUNTY and its officers, employees, agents and volunteers as additional insureds with respect to liabilities arising out of the performance of services hereunder. The additional insured endorsements shall not limit the scope of coverage for the COUNTY to vicarious liability but shall allow coverage for the COUNTY to the full extent provided by the policy. Such additional insured coverage shall be at least as broad as Additional Insured (Form B) endorsement form ISO, CG 2010.11 85.

1.9 Require CITY’s contractors and subcontractors to pay the minimum of prevailing wages as applicable.

1.10 Provide adequate inspection of all items of work performed under the construction contract(s) with C ITY's contractors or subcontractors for the PROJECT and maintain adequate records of inspection and materials testing for review by COUNTY. CITY shall provide copies of any records of inspection and materials testing to C OUNTY within ten (10) business days of C ITY's receipt of written demand from COUNTY for such records. This shall be included as a PROJECT cost.

1.11 Include compliance with any applicable requirements of CEQA, as well as completing the required CEQA documentation.

1.12 Pay CITY’s proportionate share of the cost of the PROJECT. The cost of the PROJECT shall include the cost s of design, survey, construction, construction engineering, inspection, CEQA compliance, and C ITY overhead cost for the PROJECT. CITY’s proportionate share of cost for the PROJECT is estimated at $695,264 (50% of the total estimated cost of the PROJECT). CI TY shall be responsible for its share of any PROJECT cost increases pursuant to paragraphs

3.7, 3.8, and 3.9 below.

1.13 Submit to the COUNTY an itemized accounting of actual PROJECT costs incurred by CITY and a statement for COUNTY’s proportionate share of PROJECT costs, as provided herein. Costs may be amended following CITY and COUNTY acceptance of the final construction cost accounting. In no event shall COUNTY’s proportionate share of the cost of the PROJECT exceed $869,080 (which is a twenty-five percent ( 25%) increase over the COUNTY’s share of the PROJECT cost estimate), absent a written amendment to this Agreement approved pursuant to paragraph 3.16.

Page 4 of 9 ends

1.14 Include with the final invoice to the COUNTY, the Notice of Completion and the As-Built Plan.

1.15 Accept all payments from COUNTY via electronic funds transfer (EFT) directly deposited into the CITY’s designated checking or other bank account. The CITY shall promptly comply with directions and accurately complete forms provided by COUNTY required to process EFT payments.

1.16 Upon PROJECT completion, to operate and maintain the newly installed traffic signal relevant to the PROJECT, in accordance with the Cooperative Agreement No. 22-1219 for Professional Services for Routine, Regular and Emergency Maintenance of Traffic Signals, which shall be amended by the Parties to add the PROJECT’s traffic signals, including those within COUNTY’s jurisdiction.

2.0 COUNTY AGREES TO:

2.1 Review, approve, and provide comments, if necessary, for the PROJECT’s plans and specifications provided by the CITY for PROJECT work to be performed in the COUNTY’s jurisdiction.

2.2 If required for the PROJECT, at its own cost, design and perform all right -of-way acquisition-related work inside the COUNTY’s jurisdiction that is determined to be necessary for the PROJECT. Right-of-Way acquisition related work includes, but is not limited to, right -of-way document preparation (legal description and plat), appraisal, acquisition, temporary construction easements, utility easements, utility relocations, site clearance activities, plant/tree/fence/wall removal, and relocation/replacement, legal negotiations, eminent domain proceedings, property settlements, and all right-of-way capital costs (actual cost of right-of-way).

2.3 Provide a no cost permit to the CITY for its work in the COUNTY’s right-of-way.

2.4 Provide a qualified COUNTY representative who has the authority to discuss and resolve PROJECT issues; and the authority to inspect PROJECT construction site upon notification by CITY via email and/or telephone that an inspection is required within the COUNTY’s limits.

2.5 Pay COUNTY’s proportionate share of the PROJECT cost. The PROJECT cost shall include the cost s of design, survey, construction, construction engineering, inspection, CEQA compliance and C ITY overhead cost. The C OUNTY’s proportionate share of cost for the PROJECT is estimated at $695,264 (fifty percent (50%) of the total estimated cost of the PROJECT).

2.6 Pay to CITY, on a reimbursement basis, its share of PROJECT costs, including its jurisdictional share of any PROJECT cost increases pursuant to paragraphs 3.7,

3.8, and 3.9 , within sixty (60) calendar days after receipt of an itemized statement as set forth in paragraph 1.13 of this Agreement, setting forth all actual PROJECT costs incurred by C ITY, together with adequate documentation of said expenditures. In no event shall COUNTY’s proportionate share of PROJECT cost exceed $869,080 (which is a twenty -five percent ( 25%) increase over the COUNTY’s share of the PROJECT cost estimate), absent a written amendment to this Agreement approved pursuant to paragraph 3.16.

3.0 IT IS MUTUALLY AGREED:

3.1 Except for activities that are impossible to perform during the construction phase of the PROJECT, before, during, and after CITY’s and COUNTY’s acceptance of the completed PROJECT, the C OUNTY shall be responsible for performing any and all work (including, but not limited to, maintenance) for the COUNTY maintained roads in the PROJECT limits that are within the COUNTY unincorporated area, and the CITY shall be responsible for performing any and all

Page 5 of 9 ends

work (including, but not limited to, maintenance) City streets in the PROJECT limits that are in the CITY incorporated area.

3.2 CITY agrees to indemnify, defend (with counsel approved by COUNTY) and hold harmless the COUNTY, its officers, employees, agents, and volunteers from any and all claims, actions, or losses, damages, and/or liability resulting from CITY’s negligent acts or omissions that arise from CITY’s performance of its obligations under this Agreement.

3.3 COUNTY agrees to indemnify, defend (with counsel approved by CITY), and hold harmless the CITY, its officers, employees, agents, and volunteers from any and all claims, actions, or losses, damages, and/or liability arising out of COUNTY’s performance of its obligations under this Agreement.

3.4 In the event the CITY and/or the COUNTY is found to be comparatively at fault for any claim, action, loss or damage which results from their respective obligations under this Agreement, the CITY and/or COUNTY shall indemnify the other to the extent of its comparative fault.

3.5 In the event of litigation arising from this Agreement, each Party to the Agreement shall bear its own costs, including attorney(s) fees. This paragraph shall not apply to the costs or attorney(s) fees relative to paragraphs 1. 7, 3.2, 3.3 and 3.4 indemnification.

3.6 CITY and COUNTY are authorized self -insured public entities for purposes of Professional Liability, Automobile Liability, General Liability, and Workers’ Compensation insurance and warrant that through their respective programs of self-insurance, each Party has adequate coverage or resources to protect against liabilities arising out of COUNTY and CITY’s performance of the terms, conditions or obligations of this Agreement.

3.7 The Parties acknowledge that actual PROJECT costs may ultimately exceed the current estimate of PROJECT costs. Any additional PROJECT costs (including, but not limited to, additional PROJECT costs caused by an increase in engineering cost, higher bid prices, change orders, or arising from unforeseen site conditions, including Utility relocation (but not from requested additional work by the COUNTY or CITY, which is addressed in paragraph 3.8 below) in excess of the estimated total PROJECT cost of $1,390,528 (which is the sum of $695,264 from CITY and $695,264 from COUNTY), shall be borne by each Party in proportion to where the work actually lies (based on jurisdiction) up to 25%, as part of the Parties’ respective obligations to pay the cost for the PROJECT.

3.8 If either CITY or COUNTY requests additional work that is beyond the scope of the original PROJECT and not considered by all Parties to be a necessary part of the PROJECT, said work, if approved by both Parties, will be paid solely by the Party requesting the work.

3.9 In the case where one of the Parties owns a utility that needs to be relocated for the PROJECT and that Party does not have prior rights for that utility, it will be the sole responsibility of that Party to relocate the utility at that Party’s cost. This shall not be included as a PROJECT cost. In the case that a utility relocation is determined to be a PROJECT cost based on that utility having prior rights, the relocation of the utility will be included as a PROJECT cost for which the COUNTY and CITY will be responsible for funding for work within their jurisdictional boundaries.

3.10 CITY shall notify COUNTY of bids received and the amounts thereof. Within ten (10) business days thereafter, CITY and COUNTY shall determine the cost of the PROJECT. If either Party intends to cancel this Agreement based upon the bids or amount thereof, said Party shall notify the other Party prior to the awarding of a

Page 6 of 9 ends

contract to avoid detrimental reliance by any Party, contractor , or potential contractor.

3.11 If after opening bids for the PROJECT, it is found that a cost overrun of twenty-five percent (25%) or less of the estimated PROJECT costs will occur, the CITY may award the contract to the lowest responsible and responsive bidder, even though such bidder’s price exceeds the original estimated cost of the PROJECT.

3.12 If, upon opening bids, it is found that a cost overrun exceeding twenty-five percent (25%) of the estimated PROJECT construction costs will occur, CITY shall not award any contract for the PROJECT. Instead, CITY and COUNTY shall endeavor to agree upon an alternative course of action, including, but not limited to, re- bidding the PROJECT. If after thirty (30) days an alternative course of action is not mutually agreed upon in writing, this Agreement shall be deemed to be terminated by mutual consent.

3.13 If change orders are required during the course of the PROJECT, said c hange order forms must be delivered by fax or email, must be approved and signed by COUNTY, and returned to CITY within two (2) business days. The COUNTY shall not unreasonably withhold approval of change orders. If a COUNTY disapproved or modified change order is later found to be a cost of the PROJECT, then the COUNTY shall be responsible for any costs, awards, judgments, or settlements associated with the disapproved or modified change order.

3.14 This Agreement may be cancelled upon the provision of thirty (30) calendar days advance written notice by either Party; provided, however, that neither Party may cancel this Agreement after CITY awards a contract to construct the PROJECT. In the event of cancellation as provided herein, all PROJECT costs required to be paid by the Parties prior to the effective date of cancellation shall be paid by the Parties in the same proportion to their contribution for the PROJECT. The Parties recognize and agree that the provisions governing utility relocation and construction are dependent upon the Parties’ first satisfying CEQA. As provided in this paragraph, this Agreement may be cancelled with or without cause, before, during, or after CEQA review/approval.

3.15 Except as provided in paragraph 3.14 and except for the Parties' operation, maintenance and indemnification obligations contained herein which shall survive the termination hereof, this Agreement shall terminate upon completion of the PROJECT and payment of final billing by the C OUNTY for its share of the PROJECT costs , pursuant to paragraph 2.4 . The PROJECT shall be deemed complete upon the recording of a Notice of Completion by the CITY with any and all appropriate jurisdictions.

3.16 This Agreement contains the entire agreement of the Parties with respect to subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.17 This Agreement shall be governed by the laws of the State of California. Any action or proceeding between CITY and COUNTY concerning the interpretation or enforcement of this Agreement, or which arises out of or is in any way connected with this Agreement or the PROJECT, shall be instituted and tried in the appropriate state court, located in the county of San Bernardino, California.

3.18 Time is of the essence for each provision of this Agreement.

3.19 Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing business days shall be deemed COUNTY workdays. The captions of the various

Page 7 of 9 ends

articles and paragraphs are for convenience and ease or reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.20 No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.21 If a court of competent jurisdiction declares any portion of this Agreement invalid, illegal, or otherwise unenforceable, the remaining provisions shall continue in full force and effect, unless the purpose of this agreement is frustrated.

3.22 This Agreement may be signed in counterparts, each of which shall constitute an original. The Parties shall be entitled to sign and transmit an electronic signature of the Agreement (whether by facsimile, PDF, or other email transmission), which signature shall be binding on the Party whose name is contained therein. Each Party providing an electronic signature agrees to promptly execute and deliver to the other Party an original signed Agreement upon request.

3.23 All notices, approvals, consents, or other documents required or permitted under this Agreement shall be in writing and, except as otherwise provided herein, shall be effective upon personal delivery or three calendar days after deposit in the United States mail, certified, with first class postage, fully prepaid, addressed as follows:

City of Victorville San Bernardino County
Public Works/Engineering Department Department of Public Works 14343 Civic Drive 825 E. Third Street, Room 143
Victorville, CA 92393-5001 San Bernardino, CA 92415-0835

3.21 This Agreement will be effective on the date it is signed by both Parties and shall conclude upon satisfaction of the terms identified in paragraph 3.15, or December 30, 2030 (whichever occurs first).

3.22 The Recitals are true and correct and incorporated into the body of this Agreement.

SIGNATURES ON THE FOLLOWING PAGE:

Page 8 of 9 ends

FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department

Aaron Gest, Deputy County Counsel Andy Silao, P.E., Engineering Manager Noel Castillo, Director Date Date Date

SAN BERNARDINO COUNTY CITY OF VICTORVILLE

Dawn Rowe, Chair, Board of Supervisors (Authorized signature - sign in blue ink) Dated:

Name Elizabeth Becerra

SIGNED AND CERTIFIED THAT A COPY OF THIS

DOCUMENT HAS BEEN DELIVERED TO THE
CHAIRMAN OF THE BOARD Title Mayor
Lynna Monell
Clerk of the Board of Supervisors
San Bernardino County

By Dated:

ATTEST:

Jennifer Thompson, Victorville City Clerk

Deputy
Address 14393 Civic Drive

Victorville, CA 92393-5001

APPROVED AS TO FORM:

Andre de Bortnowsky, Victorville City Attorney
RISK MANAGEMENT:

Sandra Bostick, Victorville Risk Manager

Page 9 of 9 ends

EXHIBIT A

ESTIMATE OF PROJECT COSTS

FOR SAN BERNARDINO COUNTY/CITY OF VICTORVILLE

RIDGECREST ROAD / VISTA POINT DRIVE / BLUFF CREST STREET TRAFFIC

SIGNAL PROJECT

PROJECT PHASE TOTAL PROJECT
COST

SAN BERNARDINO

COUNTY SHARE

CITY OF

VICTORVILLE
SHARE
All other costs such as
preliminary engineering,
design, survey construction
engineering, inspection,
CEQA, and CITY overhead
$250,000 $125,000 $125,000
Construction (including
contingencies) $1,140,528 $570,264 $570,264
TOTAL $1,390,528 $695,264 $695,264

Item Number: 19
City Council / Board of Directors
Written Communications
Meeting of: January 20, 2026
Submitted By:

Donna Meester, Community Services Director

Subject:

Award of Construction Contract to Veterans Communication Services, Inc. for City-Wide Security Camera Installation – Phase 1, Project CC26-063 Recommendation:

That the Honorable City Council approve the award and execution of a construction contract to Veterans Communication Services, Inc., of Chino, California, in the amount of $217,794.50 for the City-Wide Security Camera Installation – Phase 1, Project CC26-063.

Fiscal Impact:

This project was approved as part of the Fiscal Year 2025/2026 adopted budget. Funding for this project is available within the following account:

Account Description Available Funds
1006050-55040-81043 City-Wide Security Camera Installation – Phase 1 $337,103.30
Approving staff’s recommendation will result in a fiscal impact of $217,794.50, which is fully funded within the approved project budget. No additional appropriations are required.

Strategic Plan Goal:

This project aligns with Strategic Plan Goal E – Invest in Infrastructure, supporting the City’s commitment to enhancing public safety, protecting City assets, and modernizing facility security systems across multiple municipal locations.

Background:

The City of Victorville continues to prioritize public safety and facility security through the phased expansion of its city-wide security camera infrastructure. Several City facilities require upgraded surveillance coverage and integration with the City’s existing Avigilon 4 5
2 4
security camera system to enhance monitoring capabilities, deter vandalism, and improve safety for staff and the public.

To address these needs, the City developed the City-Wide Security Camera Installation – Phase 1, Project CC26-063, which includes the installation of security camera equipment, cabling, conduit, network switches, and server components at the following locations:
Hook Community Center
Victorville Police Station
8th Street Community Center
Victorville City Hall (server equipment and commissioning) The project was identified as a priority capital improvement and funded accordingly in the adopted FY 2025/2026 budget.

Discussion:

On October 30, 2025, staff issued a Notice Inviting Bids for the project through the OpenGov Procurement Portal. A mandatory pre-bid job walk was conducted on November 13, 2025, which was attended by all interested bidders. Bids were due on December 11, 2025, at 2:00 p.m. PST.

A total of seven (7) informal bids were received by the deadline. All bidders were verified as properly licensed, DIR-registered, and compliant with Senate Bill 854 requirements, and all required addenda were acknowledged.

Below is a summary of bids received:

Contractor Location Bid Amount
Veterans Communication Services, Inc. Chino, CA $217,794.50 Sciens AV Communications Division Apple Valley, CA $244,724.62 Johnson Controls Security Solutions, LLCMilwaukee, WI $261,220.44 Pavion Fullerton, CA $274,966.04
Bear Communications Inc. Redondo Beach, CA $299,457.70
Albireo Energy Anaheim, CA $338,178.00
Reliable Monitoring Services (RMS) Signal Hill, CA $703,150.00 Following staff review of the bid tabulations, vendor questionnaires, references, and statutory compliance documentation, Veterans Communication Services, Inc. was determined to be the lowest responsive and responsible bidder.

Veterans Communication Services, Inc. submitted a complete and responsive bid in the amount of $217,794.50, demonstrated experience with similar security camera installation projects, and met all contractual, licensing, bonding, and regulatory 4 5
2 4
requirements. The proposed scope of work meets the project requirements and integrates with the City’s existing Avigilon security camera system.

Staff finds the bid to be in the best interest of the City and recommends award of the construction contract accordingly.

Therefore, staff recommends that the City Council approve the award and execution of a construction agreement with Veterans Communications Services, Inc. in the amount of $217,794.50 for the City-Wide Security Camera Installation – Phase 1, Project CC26-063.

Staff remains available for any questions or comments you may have.

Prepared By:

Daysi Oxley, Facilities Administrative Technician
Attachments: A. Veterans Communication Services, Inc. – Construction Agreement Attachment A:

Veterans Communication
Services, Inc. Construction
Agreement
1 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

CONSTRUCTION AGREEMENT

BY AND BETWEEN

THE CITY OF VICTORVILLE
AND
VETERANS COMMUNICATION SERVICES, INC.

FOR
CITYWIDE SECURITY CAMERA INSTALLATION – PHASE 1,
PROJECT CC26-063
TH
IS CONSTRUCTION AGREEMENT (the “Agreement”) dated this __________________ day of ______________, 20___, for reference purpose only, is made and entered into by and between the City of Victorville, a municipal corporation located in the County of San Bernardino, State of California, hereinafter referred to as the “City”, and Veterans Communication Services, Inc., a California corporation hereinafter referred to as the “Contractor”.

The City and the Contractor are sometimes hereinafter referred to as a “ Party” and collectively referred to as the “Parties.”
RECI
TALS:

WHE
REAS, the City requires CITYWIDE SECURITY CAMERA INSTALLATION – PHASE 1 (the Project); and
WHE
REAS, in light of the facts set forth above, the City desires to retain Contractor in connection with CITYWIDE SECURITY CAMERA INSTALLATION – PHASE 1; and NOW
, THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS, AND

PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES HERETO AGREE AS FOLLOWS:

Sect
ion 1. RECITALS
Th
e Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth herein.

Sect
ion 2. TERM OF AGREEMENT
Th
is Agreement shall commence after issuance of Notice to Proceed (the “Commencement Date”) and shall terminate upon completion of the Project sixty (60) calendar days after Commencement Date (the “Termination Date”), unless sooner terminated in accordance with the provisions of this Agreement (the “Term”). From and after the Termination Date, and upon subsequent agreement by the Parties, this Agreement may continue on a month-to-month basis until terminated pursuant to Section 3 below.

Sect
ion 3. TERMINATION OR SUSPENSION
a. This
Agreement may be terminated or suspended without cause by either Party at any time, provided that the Party initiating the termination provides the other Party at least thirty (30) days advance written notice of s uch termination or suspension. In the event of such 2 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063 termination, the City shall only be liable for payment under the payment provisions of this Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.
b. Thi
s Agreement may be terminated or suspended with cause by either Party at any time, provided that the Party initiating termination provides the other Party at least ten (10) days advance written notice of such termination or suspension. In the event of such termination, the City shall only be liable for payment under the payment provisions of this Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.

S
ection 4. CONTRACT DOCUMENTS; PRIORITY
a. C
ontract Documents. The Contract Documents consist of the following documents, all of which are either attached hereto as exhibits or are incorporated herein by this reference.

Said Contact Documents are intended to be correlative and constitute Contractor’s performance obligations:

1. Thi
s Agreement.

2. Exhibit s A & B

3. Faithful Payment and Performance Bond

4. Guaranty
b. I
nterpretation. In the event of any conflict between any of the Contract Documents, the document highest in the order of precedence (from highest to lowest), as set forth in Subsection 4.a above shall control.

S
ection 5. CONTRACTOR’S OBLIGATIONS
C
ontractor shall complete the Project as specifically set forth in the Contract Documents.

Contractor shall furnish, at its own cost and expense, all labor, services, material, tools, equipment, supplies, transportation, and any other items and facilities necessary therefore, as provided in the Contract Documents.

S
ection 6. COMPENSATION
The
Contractor agrees to receive and accept the following amount, not to exceed Two hundred seventeen thousand seven hundred ninety- four and 50/100 Dollars ($217,794.50), as full compensation for furnishing; all materials, doing all the work contemplated and embraced in this contract, all loss or damage arising out of the nature of the work aforesaid, the action of the elements, any unforeseen difficulties or obstructions which may arise or be encountered in the execution of the work until its acceptance by the City, and for all risks of every description connected with the work, all expenses incurred by or in consequence of the suspension or discontinuance of work well and faithfully completing the whole work, thereof, according to the requirements of the agreement documents and to the satisfaction of Donna Meester, Director of Community Services, or her designee, to wit: See Exhibit “A”, Scope of Work.

S
ection 7. BID PROPOSAL FORMS
The
City shall pay Contractor as provided in the Bid Proposal Forms, attached hereto as Exhibit “B”, and incorporated herein by this reference as though set forth in full, subject to approval of the City, when applicable.
3 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

Section 8. PREVAILING WAGES

a. Compliance with State Prevailing Wage Law. Pursuant to California Labor Code Section 1773, the City has obtained from the Director of the Department of Industrial Relations (“DIR”) the general prevailing rate of per diem wages and the general prevailing wage rate for holiday and overtime work applicable for each craft, classification, or type of worker in San Bernardino County, California, where the Project is to be performed. Copies of these prevailing rate of per diem wages are on file at the City of Victorville Finance Department/Purchasing Division and shall be made available for review to any interested party on request. Copies of these prevailing rate of per diem wages are also available from the State of California via the internet at http://www.dir.ca.gov/DLSR/PWD. Contractor and its subcontractors shall pay not less than said specified prevailing rate of per diem wages to all workers employed by them in the performance of any work under this Agreement which constitutes “public works” or “public work”, including without limitation, Citywide Security Camera Installation – Phase 1, and any other work or services described in or encompassed by California Labor Code (“Labor Code”) Sections 1720 through 1720.9, 1771, and 1772. Contractor shall be solely responsible for using the correct and current prevailing wage rates and performing accordingly. An error on the part of any awarding body does not relieve the Contractor from the responsibility for payment of the correct prevailing wage, or compliance with the maintenance and inspection of payroll records, posting of prevailing wage rates at the work/job site, employment of apprentices, and other requirements of Labor Code Section 1720 et seq.; Labor Code Section 1810 et seq .; California Code of Regulations, Title 8, Section 16000 et seq.; and all other applicable State labor laws.

b. Designation as Contractor Not Determinative . For purposes of this Agreement, Contractor and its subcontractors shall be subject to and shall comply with all provisions of the Labor Code applicable to contractors and subcontractors when they are engaged in the performance of any work under this Agreement which constitutes “public works” or “public work” as defined in subsection a above, despite being designated as a Contractor.

c. Conflict. It is further expressly agreed by and between the Parties hereto that should there be any conflict between the provisions of this Section and the terms of Exhibit “A” or Exhibit “B” of this Agreement, the provisions of this Section shall control and nothing herein shall be considered as an acceptance of the terms of Contractor’s Scope of Services, scope of work, bid proposal, cost proposal, and/or fee schedule which conflict with the provisions of this Section.

d. Payroll Records . Contractor and its subcontractors must comply with the provisions of Labor Code sections 1776 and 1812 and all implementing regulations, including without limitation, those set forth in Title 8 of the California Code of Regulations, Section 16000 et seq. (hereinafter the “Regulations”), which are fully incorporated by this reference, including requirements for electronic submission of payroll records to the DIR.

(1) Contractor and Subcontractor Obligations . Contractor and each subcontractor must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in connection with the Work. Each payroll record must contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
4 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

(a) The information contained in the payroll record is true and correct; and

(b) Contractor or subcontractor has complied with the requirements of Labor Code Sections 1771, 1811, and 1815 for any covered work performed by its employees on the Project.

(2) Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to the City, to the Division of Labor Standards Enforcement, to the Division of Apprenticeship Standards of the DIR, and as further required by the Labor Code.

(3) Enforcement. Upon notice of noncompliance with Labor Code Section 1776, Contractor or subcontractor has ten days in which to comply with the requirements of this section. If Contractor or subcontractor fails to do so within the ten- day period, Contractor or subcontractor will forfeit a penalty of $100.00 per day, or portion a day, for each worker for whom compliance is required, until strict compliance is achieved. Upon request by the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement, these penalties will be withheld from payments then due to Contractor.

(4) Payment of Invoices . Copies of the certified payrolls, proof of payroll submissions, and appropriate lien releases are required with each invoice to the City.

Payment of the invoice may be delayed when payroll -related documents and/or lien releases are not included with the invoice.

e. Apprentices. Contractor is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code section 1777.5, which is fully incorporated by reference.

f. Notices. Pursuant to Labor Code section 1771.4, Contractor is required to post all Job Site notices, including prevailing wage rates and other notices, as required by regulation.

g. Other Labor Requirements . Contractor has the responsibility for and shall comply with all other applicable requirements of Labor Code Section 1720 et seq., Labor Code Section 1810 et seq ., the Regulations, and all other applicable State labor laws. Contractor further acknowledges and agrees that it will be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with those laws. Contractor shall require the same of all its subcontractors.

h. Statutory Penalties. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hours laws will be enforced as follows:

(1) Pursuant to Labor Code section 1775, the Contractor and any subcontractor under it shall forfeit as a penalty to the City not more than Two Hundred Dollars ($200.00), for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate as determined by the Director of the DIR for such work or craft in which such worker is employed for any public work done under this Agreement by it or by any subcontractor under it. The difference between such prevailing wage rate and the amount paid to each worker for each calendar day or portion thereof, for which each 5 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

worker was paid less than the prevailing wage rate, shall be paid to each worker by the Contractor.

(2) Pursuant to Labor Code Section 1813, Contractor or subcontractor shall, as a penalty to the City, forfeit twenty -five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week, except as specified in Labor Code Section 1815. In accordance with the provisions of Labor Code Section 1810 et seq., eight (8) hours is the legal working day.

i. DIR Monitoring. Pursuant to Labor Code Section 1771.4, the Agreement for this Project is subject to compliance monitoring and enforcement by the DIR.

j. DIR Registration . Pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and its subcontractors must be registered with the DIR prior to the execution of a contract to perform public works. By entering into this Agreement, Contractor represents that it is aware of the registration requirement and is currently registered with the DIR. Contractor shall maintain a current registration for the duration of the Project. Contractor shall further include the requirements of Labor Code Sections 1725.5 and 1771.1 in any subcontract and ensure that all subcontractors are registered at the time this Agreement is entered into and maintain registration for the duration of the Project.

Section 9. WORKERS’ COMPENSATION INSURANCE

Contractor shall procure and maintain, at its own expense, during the Term of this Agreement, workers’ compensation insurance, providing coverage as required by the California State Workers’ Compensation Law. If any class of employees employed by Contractor is not protected by the California State Workers’ Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City.

In conformance with current statutory requirements of Section 1860 et seq., of the Labor Code of the State of California, the undersigned confirms the following as their certification:

I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions before commencing the performance of the work of this contract.

Section 10. NOTICE TO PROCEED

No work, service, material, or equipment shall be performed or furnished under this Contract unless and until a Notice to Proceed has been given to the Contractor by the City.

Contractor shall commence work pursuant to the Contract Documents as directed by the City in the Notice to Proceed, and to diligently execute the same to completion within the time limits set forth in the Contract Documents.

Section 11. COMPLIANCE WITH LAWS

Contractor shall comply with all local, state, and federal laws and regulations applicable to the performance of the work required by the Contract Documents, including any rule, regulation, or bylaw governing the conduct or performance of Contractor, its employees, 6 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

officers, board members, agents, independent contractors, and subcontractors. Unless otherwise specified in the Contract Documents, all required permits and licenses shall be held or obtained by the Contractor at its sole expense.

Section 12. COMMERCIAL GENERAL AND AUTOMOBILE LIABILITY

INSURANCE

Contractor shall procure and maintain at its own expense, during the term of this Agreement, com mercial general liability insurance, of not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss, or damage resulting from the wrongful or negligent acts by the Contractor or its officers, employees, servants, volunteers, and agents and independent contractors.

Contractor shall further procure and maintain, at its own expense, during the Term of this Agreement, commercial vehicle liability insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) Combined Single Limit , covering any vehicle(s) utilized by Contractor or its officers, employees, servants, volunteers, or agents and independent contractors in performing the services required by this Agreement.

Section 13. INSTALLATION FLOATER

“Installation Floater” coverage with limits sufficient to insure the full replacement value of any property of equipment stored either on or off the project site that provides property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the contract work, including during transit, installation, and testing at the project site. Such coverage shall name the City as a loss payee as its interest may appear.

Section 14. ADDITIONAL INSURED

Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by all policies, except for Workers' Compensation coverage, shall bear an endorsement whereby it is provided that, the City and its officers, employees, servants, volunteers, and agents and independent contractors, including, without limitation, the City Attorney, are named as Additional Insureds.

Section 15. WAIVER OF SUBROGATION RIGHTS

Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City and its officers, volunteers, employees, contractors, and subcontractors. Each policy of insurance shall be endorsed to reflect such waiver.

Section 16. PROOF OF INSURANCE COVERAGE; REQUIRED PRIOR TO

COMMENCEMENT OF SERVICES

a. Contractor shall secure from a good and responsible company or companies authorized to do insurance business in the State of California the policies of insurance required by this Agreement and furnish to the City Clerk certificates of said insurance at least two (2) weeks prior to the commencement of any services to be performed under this Agreement.

7 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

b. The certificates of insurance shall bear an endorsement whereby it is provided that, in the event of cancellation or amendment of any required insurance policy for any reason whatsoever, the City shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation or amendment is effective. In the case of non -payment, ten (10) days’ advance written notice shall be given.

c. The certificates of insurance shall bear an endorsement whereby it is provided that the respective insurance policy shall not be terminated or expire without first providing thirty (30) days written notice to the City of such termination or expiration.

d. The certificates of insurance shall indicate that the respective insurance policy will be maintained throughout the Term of this Agreement.

e. The commercial general liability and vehicle liability policies shall be endorsed to contain the following provision: “For any claims related to this contract, the Contractor’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.”

Section 17. TIME OF THE ESSENCE

Time is of the essence in the performance of this Agreement.

Section 18. INDEMNIFICATION

Notwithstanding the limits of any insurance, Contractor shall indemnify the City, its officials, officers, agents, volunteers and employees against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (herein "claims or liabilities") that may be asserted or claimed by any person, firm or entity arising or alleged to arise out of or in connection with the negligent performance of the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising or alleged to arise from the negligent acts or omissions of Contractor hereunder, or arising or alleged to arise from Contractor's negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, but excluding such claims or liabilities or portion of such claims or liabilities arising or alleged to arise from the negligence or willful misconduct of the City its officials, officers, agents, volunteers or employees, and in connection therewith:

a. Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith;

b. Contractor will promptly pay any judgment rendered against the City, its officials, officers, agents or employees for any such claims or liabilities arising or alleged to arise out of or in connection with Contractor's (or its agents', employees', subcontractors' or invitees') negligent performance of or failure to perform such work, operations or activities hereunder; and Contractor agrees to save and hold the City, its officials, volunteers, officers, agents, and employees harmless there from;

8 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

c. In the event the City, its officials, officers, agents, volunteers or employees is made a Party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising or alleged to arise out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor shall pay to the City, its officials, volunteers officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees for counsel acceptable to City;
d. Contractor's duty to defend and indemnify as set out in this Section shall include any claims, liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury to persons or property arising or alleged to arise from, in connection with, as a consequence of or pursuant to any state or federal law or regulation regarding hazardous substances, including but not limited to the Federal Insecticide, Fungicide and Rodenticide Act ("FIFRA"), Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), Resource Conservation and Recovery Act of 1976 ("RCRA"), the Hazardous and Solid Waste Amendments of 1984, the Hazardous Material Transportation Act, the Toxic Substances control Act, the Clean Air Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous Waste Control Law or the Porter -Cologne Water Quality Control Act, as any of those statutes may be amended from time to time;

The Contractor's indemnification obligations pursuant to this Section shall survive the termination of this Agreement. Contractor shall require the same indemnification from all subcontractors.

Section 19. REPORTS

Upon request by Donna Meester, Director of Community Services, or her designee, Contractor shall prepare and submit reports concerning Contractor's performance of the work required by this Agreement.

Section 20. RECORDS

a. Contractor shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable Donna Meester, Director of Community Services or her designee, to evaluate the cost and the performance of such services.

b. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles . Donna Meester, Director of Community Services, or h er designee, shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

c. Donna Meester, Director of Community Services ,or her designee, shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

d. Records and supporting documents pertaining to the use of funds paid to Contractor hereunder shall be retained by Cont ractor and made available to Donna Meester, Director of Community Services, or his designee, for purposes of performing an audit for a period of five (5) years from the date of termination of this Agreement.

9 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

Section 21. MODIFICATIONS AND AMENDMENTS

This Agreement may be modified or amended only by a written instrument signed by both Parties.

Section 22. ENTIRE AGREEMENT

a. This Agreement supersedes any and all prior or contemporaneous agreements, either oral or written, between the City and Contractor with respect to the subject matter of this Agreement.

b. The Contract Documents contain all of the covenants and agreements between the Parties with respect to the subject matter herein, and each Party acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any Party, except those covenants and agreements in this Agreement and the Contract Documents.

c. No agreement, statement, or promise with respect to the subject matter of the Contract Documents, which is not contained in the Contract Documents, or in a valid modification or amendment to the Contract Documents, shall be valid or binding on either Party.

Section 23. AMBIGUITIES

This Agreement is in all respects intended by each Party hereto to be deemed and construed to have been jointly prepared by the Parties and the Parties hereby expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted against either of them.

Except as expressly limited by this paragraph, all of the applicable rules of interpretation of contract shall govern the interpretation of any uncertainty or ambiguity of this Agreement.

Notwithstanding the foregoing, the Parties agree that Exhibit “A” is attached hereto for reference purposes and to the extent there are any ambiguities, inconsistencies or conflicts between the terms of this Construction Agreement and Exhibit “A” the terms of this Construction Agreement shall control and nothing set forth in Exhibit “A” shall be deemed to supersede any of the provisions of this Construction Agreement.

Section 24. NOTICES

a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the Parties as follows:

To the City: Donna Meester, Director of Community Services, Community Services Department
City of Victorville
14343 Civic Drive
Victorville, CA 92392

10 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

To Contractor: Mark Montgomery, CEO
Veterans Communication Services, Inc.
14730 Central Ave.

Chino, CA 91710

b. Notices, payments, and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 25. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES

No officer or employee of the City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount, which may become due to Contractor or to its successor(s), or for any breach of any obligation of the terms of this Agreement.

Section 26. REVIEW BY ATTORNEYS

Each Party hereto has had its attorneys review this Agreement an d all related documents. Each Party hereto has consulted with its attorneys and has negotiated the terms of this Agreement based on such consultation.

Section 27. CARE OF WORK

Contractor must adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and other components to prevent losses or damages, and will be responsible for all damages, to persons or property, until acceptance of the work by the City, except those losses or damages as may be caused by the City’s own negligence. The performance of the work by Contractor or the payment of money by the City shall not relieve Contractor from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to the City, when such inaccuracies are due to the negligence of Contractor.

Section 28. CAPTIONS AND HEADINGS

The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.

Section 29. SUCCESSORS, HEIRS, AND ASSIGNS

Except as otherwise expressly provided herein, this Agreement shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties to this Agreement and, likewise, shall inure to the benefit of the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties.

Section 30. GENDER; PLURAL

In this Agreement, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another.

11 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

Section 31. SEVERABILITY

If any one or more of the sentences, clauses, paragraphs, or sections contained herein is declared invalid, void, or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair, or invalidate any of the remaining sentences, clauses, paragraphs, or sections contained herein.

Section 32. GOVERNING LAW

The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the Parties under this Agreement, shall be construed pursuant to and in accordance with California law.

Section 33. CUMULATIVE REMEDIES

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default of any other default by the other Party.

Section 34. VENUE

All proceedings involving disputes over the terms, provisions, covenants, or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in San Bernardino County, California.

Section 35. ATTORNEY'S FEES

Should any litigation, specifically including but not limited to, arbitration and other non - judicial resolution of disputes be commenced between the Parties to this agreement concerning this agreement or the rights and duties of either i n relation thereto, the Parties prevailing in such litigation or other proceeding shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for attorney fees in such litigation where the proceeding which, if not agreed upon by the Parties, shall be determined by the court or other entity in which such litigation or other proceeding is brought.

Section 36. EFFECTIVENESS OF AGREEMENT

This Agreement shall not be binding upon the City, until signed by the authorized representative(s) of Contractor , approved by the City’s Risk Manager, and executed by the authorized City personnel or Mayor.

Section 37. REPRESENTATIONS OF PARTIES AND PERSONS

EXECUTING AGREEMENT

a. Each of the Parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the Parties hereto.

12 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the Parties each purports to represent.

Section 38. COUNTERPARTS

This Agreement may be executed by the Parties in counterparts, and when executed by each of the Parties, each counterpart shall be deemed to be a part of this Agreement.

Section 39. CARB COMPLIANCE OBLIGATIONS

a. CARB Regulations. Contractor is aware of the California Air Resources Board (“CARB”) regulations mandating various emission reduction requirements. Contractor agrees to comply with all applicable CARB regulations (Title 13, Division 3 of the California Code of Regulations (“CCR”)) prior to commencing any work hereunder and maintain compliance throughout the duration of this Contract.

(1) Vehicles with a Gross Vehicle Weight Rating (GVWR) greater than 8,500 lbs. and light -duty package delivery vehicles operated in California may be subject to CARB’s Advanced Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets (ACF) webpage at https://ww2.arb.ca.gov/our - work/programs/advanced-clean-fleets.

(2) Effective January 1, 2024, CARB implemented amendments to the In- Use Off- Road Diesel -Fueled Fleets Regulation (13 CCR Section 2449 et seq., the “Off- Road Regulation”) which apply broadly to all self -propelled off road diesel vehicles 25 horsepower or greater and other forms of equipment used in California (including any vehicles or equipment that is rented or leased). The Off -Road Regulation is available at:
https://ww2.arb.ca.gov/sites/default/files/barcu/regact/2022/off-roaddiesel/appa-1.pdf.

b. Contractor must comply with all CARB regulations and requirements, including without limitation, all applicable sections of the Off -Road Regulation (as codified in 13 CCR Section 2449 et seq.) throughout the term of the Project and this Contract. Contractor shall be solely liable for all costs associated with complying with the regulations, as well as for any and all penalties, fines, damages, or costs associated with violations or failures to comply with the regulations. Contractor shall defend, indemnify, and hold harmless the City of Victorville, its elected and appointed officials, officers, agents, and employees from and against any and all claims, liabilities, costs, penalties, interest or other damages arising out of Contractor’s failure or alleged failure to comply with CARB regulations.

(END OF THIS PAGE)

13 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the dates written below.

THE CITY OF VICTORVILLE VETERANS COMMUNICATION
SERVICES, INC.

By:_________________________________ By:________________________________ Elizabeth Becerra, Mark Montgomery, Mayor CEO

Dated:______________________________ Dated:_____________________________

ATTEST

By:________________________________
Jennifer Thompson,
City Clerk

Dated:_____________________________

APPROVED AS TO STANDARD FORM

By:________________________________
Andre de Bortnowsky,
City Attorney

Dated:_____________________________

By:________________________________
Sandra Bostick,
Risk Manager

Dated:_____________________________

14 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

EXHIBIT A

SCOPE OF WORK

City agrees to engage Contractor and Contractor agrees to furnish all necessary labor, tools, materials, and equipment for and to do the Work for the Project. The Work shall be performed in accordance with: (i) the Plans and Specifications and applicable Addenda (as generally described in the Request for Bid, Project Number CC26-063, for the Project, portions of which are attached hereto for ease of reference as Exhibit "A".

See Attachment

SCOPE OF WORK
City Wide Security Camera Installation - Phase 1
Introduction
The City of Victorville is expanding their Avigilon Security Camera System and is requesting quotes to install cameras, hardware, associated cabling (including patch cords), and NVR Server at the following locations: Hook Community Center located at 14973 Joshua St. Victorville, CA 92394, Victorville Police Station located at 14200 Amargosa Rd Victorville, CA 92392, and 8 th St Community Center located at 15615 8th St. Victorville, CA 92395. There are a total of twenty-one (21) camera locations depicted on the attached Camera Layout Plans. Also attached is a list of specified cameras, mounting hardware, and supporting equipment. The awarded contractor must be an approved installer of Avigilon Security Camera Systems.

History
In 2020, the City conducted a comprehensive review of multiple security camera and video management systems with the premise to adopt the system for citywide installation. At the conclusion of the review, the City selected Avigilon Video Security Systems.

Equipment
All equipment must be Avigilon (manufactured by Motorola Solutions Company) with the ability to seamlessly integrate with the City’s existing security camera system. Included in this Scope of Work is an equipment list and camera layout plan. The Contractor shall use CS34P ETL Verified Cat 6A U/UTP cabling. It is the Contractors responsibility to verify quantities, camera placement, server room locations, and all measurements. Recorded footage is stored on premises for 366 days. The new NVR servers shall be installed at City Hall located at 14343 Civic Dr. Victorville, CA 92392.

Installation
All work shall be inspected and accepted by the City’s Facility Manager. The work may be performed during normal City business hours. The Contractor shall make every effort to minimize disruption to City operations. If a disturbance cannot be avoided, the Contactor shall coordinate with the City’s Facilities Manager for work to be completed after normal business hours or during the weekend at no additional cost to the City. City hours are as follows:

Monday – Thursday, 7:30am-5:30pm
Friday, 7:30am – 4:30pm.

Programming/Commissioning
The Contractor shall notify the City’s Information Technology (IT) Department and Facilities Manager prior to programming or commissioning any equipment.

Other Information
• This project is subject to Prevailing Wage

EXHIBIT A

SCOPE OF SERVICES
15/ Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063 Site Specific Information
Hook Community Center
• Fourteen (14) total cameras and associated accessories/mounting hardware (contractor provided)
• Existing IDF cabinet is located in Electrical Room on 1st Floor. • Terminate cabling to new network switch (contractor provided). • Conduit raceway is required in some exposed areas. Conduit shall be EMT, minimum ¾”. For exterior runs shorter than six-feet, metallic liquid-tight flex is acceptable. A suggested conduit path is included in the attached Camera Layout Plans. Contractor to verify feasibility and measurements.
• New server, patch cords, and accessories shall be located at City Hall, 14343 Civic Dr. (contractor provided)
Victorville Police Station
• Two (2) total cameras and associated accessories/mounting hardware (contractor provided) • Existing server located on first floor
• Terminate cabling at new network switch (contractor provided) • New server, patch cords, and accessories shall be located at City Hall, 14343 Civic Dr. (contractor provided)
8th St. Community Center
• Five (5) total cameras and associated accessories/mounting hardware (contractor provided) • Existing IDF cabinet is located in the Ticket Office
• Terminate cabling at new network switch (contractor provided) • New server, patch cords, and accessories shall be located at City Hall, 14343 Civic Dr. (contractor provided)

EXHIBIT A

SCOPE OF SERVICES
16/ Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063 17 Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063

EXHIBIT B
B

ID PROPOSAL FORMS
S
ee Attachment
/0 /1 /2 /3 /4 /i255 /6 /7 /8 /9 /4 /10
/11 /12 /13 /14 /i255 /16 /17 /14 /18/19 /14 /20 /21 /22 /12 /23 /17 /12 /24 /13/25/26/27 /13 /17 /12 /17 /28/29 /13 /12 /17 /i255 /24 /30 /i255/31/14/27 /20 /26 /22 /14/29 /13 /12 /17 /i255 /32 /24 /20 /17 /33 /34/35/35/36/i255 /38/35 /39/39/40/41 /42 /43 /44 /i255 /38 /45 /41 /43 /45 /46 /i255 /47 /i255 /38 /48/49/50/51 /48 /i255 /45 /52 /53 /54 /55/49/50/56 /57 /58 /i255 /38 /48 /59 /60 /54 /56 /61 /58 /i255 /38 /62 /56 /63 /53 /54 /57 /58 /i255 /64 /65 /54 /57 /66 /67 /58 /i255 /48 /56 /63 /i255 /68 /48 /59 /62 /51 /i255 /69 /62 /51 /i255 /42 /56 /70 /57 /48 /60 /60 /48 /57 /54 /62 /56 /i255/71/i255 /43 /50 /51/49/54/56 /48 /57 /54 /62 /56 /i255 /72 /i255 /55 /50 /51 /i255 /70 /66 /62 /55 /50 /i255 /62 /69 /i255 /65 /62 /51 /73 /74
/33/45 /75/76 /77 /78 /58 /79 /80 /80 /74 /81 /82
/83 /84/35/68/42 /38 /45 /i255 /64 /43 /75 /43 /42/35/41/i255 /47 /i255 /38 /48/49/50/51 /48 /i255 /45 /52 /53 /54 /55/49/50/56 /57 /58 /i255 /38 /48 /59 /60 /54 /56 /61 /58 /i255 /38 /62 /56 /63 /53 /54 /57 /58 /i255 /64 /65 /54 /57 /66 /67 /58 /i255 /48 /56 /63 /i255 /68 /48 /59 /62 /51 /i255 /69 /62 /51 /i255 /42 /56 /70 /57 /48 /60 /60 /48 /57 /54 /62 /56 /i255/71/i255 /43 /50 /51/49/54/56 /48 /57 /54 /62 /56 /i255 /55 /50 /51 /i255 /70 /66 /62 /55 /50 /i255 /62 /69 /i255 /65 /62 /51 /73 /74
/33/45 /75/76
/33 /81 /58 /33 /81 /78 /74 /82 /77
/85 /81 /43 /34 /i255 /64 /43 /46 /45 /45 /43 /i255 /38/35 /39/39/40/41 /42 /43 /44 /i255 /38 /45 /41 /43 /45 /46 /i255 /i255 /47 /i255 /38 /48/49/50/51 /48 /i255 /45 /52 /53 /54 /55/49/50/56 /57 /58 /i255 /38 /48 /59 /60 /54 /56 /61 /58 /i255 /38 /62 /56 /63 /53 /54 /57 /58 /i255 /64 /65 /54 /57 /66 /67 /58 /i255 /48 /56 /63 /i255 /68 /48 /59 /62 /51 /i255 /69 /62 /51 /i255 /42 /56 /70 /57 /48 /60 /60 /48 /57 /54 /62 /56 /i255/71/i255 /43 /50 /51/49/54/56 /48 /57 /54 /62 /56 /i255 /55 /50 /51 /i255 /70 /66 /62 /55 /50 /i255 /62 /69 /i255 /65 /62 /51 /73 /74
/33/45 /75/76
/83 /77 /58 /86 /83 /78 /74 /85 /33
/77 /38 /42 /43 /44 /i255 /34 /75 /68 /68 /i255 /47 /i255 /64 /50 /51 /87 /50 /51 /i255 /45 /52 /53 /54 /55/49/50/56 /57 /58 /i255 /84 /48 /57 /66 /67 /i255 /38 /62 /51 /63 /70 /58 /i255 /48 /56 /63 /i255 /68 /48 /59 /62 /51 /i255 /69 /62 /51 /i255 /42 /56 /70 /57 /48 /60 /60 /48 /57 /54 /62 /56 /58 /i255 /43 /50 /51/49/54/56 /48 /57 /54 /62 /56 /58 /i255 /48 /56 /63 /i255 /38 /62/49/49/54/70 /70 /54 /62 /56 /54 /56 /61 /i255 /55 /50 /51 /i255 /70 /66 /62 /55 /50 /i255 /62 /69 /i255 /65 /62 /51 /73 /74
/33/45 /75/76 /33
/83 /86 /58 /85 /79 /77 /74 /82 /78
/88 /24 /17 /27 /89
$217,794.50

EXHIBIT B

BID PROPOSAL
18/ Construction Agreement/VETERANS COMMUNICATION SERVICES, INC./PROJECT CC26-063 Item Number: 20
City Council / Board of Directors
Written Communications
Meeting of: January 20, 2026
Submitted By:

Donna Meester, Community Services Director

Subject:

Ratification of Change Order No. 1 – Hook Community Center Flooring Installation, Project CC26-061
Recommendation:

That the Honorable City Council:
(1) Ratify the City Manager’s approval of Change Order No. 1 to the construction agreement with Lawrence W. Rosine Co. for the Hook Community Center Flooring Installation, Project CC26-061, in the amount of $36,217.74; and (2) Approve the revised total contract amount of $76,917.74.

Fiscal Impact:

Ratification of this action will approve emergency expenditures associated with unforeseen site conditions encountered during construction of the Hook Community Center Flooring Installation project. The change order was necessary to address elevated moisture levels in the concrete substrate and ensure safe, code-compliant, and warranty- compliant flooring installation.

Change Order Cost Summary
Description Amount
Original Contract Amount $40,700.00
Change Order No. 1 (Moisture Mitigation) $36,217.74
Revised Total Contract Amount $76,917.74
Funding Source Summary
Account Number Account Description Expense Amount
1056110-55060-80104 Facilities – Building Improvements $36,217.74 4 5
2 8
Sufficient funds are available within the identified account to cover the cost of Change Order No. 1. As the original construction contract was awarded well under budget, no additional appropriations are required.

Strategic Plan Goal:

This item aligns with Strategic Plan Goal E – Invest in Infrastructure, supporting the maintenance and long-term durability of City facilities that provide essential recreational and community services.

Background:

On November 19, 2025, the City of Victorville entered into a construction agreement with Lawrence W. Rosine Co. in the amount of $40,700.00 for the removal of existing flooring and the installation of new flooring materials at the Hook Community Center.

As part of standard flooring installation procedures, the contractor conducted moisture testing of the concrete substrate after demolition of the existing flooring. The test results revealed elevated moisture levels exceeding acceptable tolerances for the specified flooring materials being installed. This condition was not visible or reasonably identifiable prior to demolition and was discovered only after the substrate was exposed.

Discussion:

To properly address the elevated moisture condition, installation of an epoxy moisture mitigation system was required over approximately 5,800 square feet of concrete substrate. This additional work includes specialized materials, labor, surface preparation, and curing time beyond the original contract scope.

If left uncorrected, moisture migrating through the porous concrete could result in flooring failure, including adhesive breakdown, tile cupping, and potential mold or mildew growth.

While the vinyl flooring itself is waterproof, the flooring manufacturer cannot honor the ten (10)-year warranty unless moisture levels are mitigated in accordance with manufacturer specifications.

At the time this condition was identified, the existing flooring had already been removed, leaving exposed substrate areas that constituted a tripping hazard and presented an immediate safety concern. As a result, the Hook Community Center was temporarily closed, impacting preschool and basketball programming.

Pursuant to Victorville Municipal Code Section 2.28.180(b), the City Manager is authorized to approve emergency construction change orders when stopping work would result in severe delays, safety risks, or additional excessive costs. Given the safety concerns, facility closure, and service impacts, the City Manager approved Change Order No. 1 on an emergency basis to allow the project to proceed without further delay.

In accordance with Municipal Code requirements, this item is now being presented to the City Council for ratification of the emergency action taken. 4 5
2 8
Therefore, staff requests that the City Council ratify Change Order No. 1 to the construction agreement with Lawrence W. Rosine Co. for the Hook Community Center Flooring Installation project and approve the revised project total of $76,917.74.

Staff remains available for any questions or comments you may have.

Prepared By:

Daysi Oxley, Facilities Administrative Technician
Attachments: A. Change Order No. 1
B. City Manager Approved Memo
Attachment A:

Change Order No. 1
Lawrence W. Rosine Co.
8640 Red Oak St. Rancho Cucamonga 91730
Office: 626-962-4915
Date: 1/4/2025 Contractor: City of Victorville
Attention: Eddie Gleason
LWRRFC#:

Project: Hook Communtiy Center
Victorville, CA
Materials
Labor
15 pails Koster UFS 2-Part Epoxy Moisture Barrier $
5 units Koster 06 Primer $
Tax
Material subtotal
312 Journeyman Regular Time Hourly $
Labor Total
Subcontractor
To1fil.s.

Material+Labor Total
Subcontractor Total
Overhead/Profit
$
Sub-Teir Overhead/Profit
15%
5%
Total

TOTAL CHANGE ORDER
Inclusions:
375.00
225.00

77.63 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
I $
5,625.00
1,125.00
523.13
7,273.13
24,220.56
24,220.56
31,493.69
4,724.05
36,217.74
36,217.741
Added cost to furnish and install Koster UFS 2-part epoxy moisture barrier due to excess RH readings.

Lawrence W. Rosine Co.

Accepted: ---------------- By: Andrew Rosine
Signtuare: Email: Andrew@lwrosineco com --------------- Date: ---------------
CA LIC.173235
Attachment B:

City Manager Approved
Memo
DATE:

TO:

FROM:

MEMORANDUM
January 6, 2026
Keith C. Metzler
City Manager
Donna Meester
Director of Community Services
SUBJECT: Change Order One - Hook Community Center Flooring Installation- Project CC26-061
Summary:

Approval is requested for a construction change order associated with the Hook Community Center Flooring Installation, Project CC26-061. The City of Victorville entered into a construction agreement with Lawrence W. Rosine Co. for the Hook Community Center Flooring Installation in the amount of $40,700.00, which includes removal of existing flooring and installation of new flooring materials meeting City standards.

During construction, unforeseen site conditions were identified that require additional work beyond the original contract scope to ensure proper flooring installation and long-term performance. This additional work is also necessary to maintain compliance with the manufacturer's ten (10) year warranty.

As part of standard flooring installation procedure, the contractor conducted moisture testing of the existing concrete substrate. Test results indicated elevated moisture levels exceeding acceptable tolerances for the specified flooring materials. This condition was not visible or reasonably identifiable prior to demolition and was discovered only after the substrate was exposed.

To properly address the elevated moisture condition, a moisture mitigation system must be applied. This requires additional work beyond the original contract scope, including moisture mitigation treatment, additional materials and labor, and extended preparation and curing time.

This condition must be addressed to avoid moisture rising from the concrete substrate causing issues such as mold, mildew, tile cupping, and adhesive failure. Although the vinyl tiles themselves are waterproof, moisture trapped in the porous concrete below may still cause these problems. Additionally, the manufacturer cannot honor the ten (10) year warranty, unless the moisture issue is properly mitigated to manufacturer's specification.

Fiscal Impact:

The cost for proposed Change Order 1 is $36,217.74, which includes labor and material to install the epoxy moisture barrier to 5800 square feet of substrate. This brings the project total to $76,917.74. Funding for this change order will be provided from Account No. 105611-55060- 80104. As the original bid was well under budget, sufficient funds are available to cover this expense.

Procurement Process:

The original Hook Community Center Flooring Installation contract was procured in accordance with the City of Victorville's informal bidding procedures and executed following Deputy City Manager approval. This change order does not modify the original procurement method or contractor selection and is limited solely to additional work required due to unforeseen site conditions encountered during construction.

Signing Authority:

Victorville Municipal Code Section 2.28.1 S0(b) - Construction Contract Change Orders states, Provided the funding for the public works project contract has been previously approved and the expenditure of funds authorized by the city council, the city manager shall have the authority to execute change orders; provided however, that if a single contract change order ( or the cumulative amount of change orders on a given public project) exceeds fifteen percent of the total contract price or two hundred thousand dollars (whichever amount is less), the city manager shall obtain city council approval prior to executing the change order. lo emergency situations where stopping the work will result in severe repair or replacement delays and subject the city to additional excessive costs due to project delay, the City Manager is authorized to approve a change order that exceeds these limits. In this instance, the existing flooring has been removed as part of construction activities, leaving exposed substrate areas that constitute a tripping hazard and present an immediate safety concern. Pending City Manager approval, the change order will be presented to the City Council at the January 20, 2026, City Council meeting for ratification.

To ensure the safety of patrons during construction, the Hook Community Center is temporarily closed, which impacts preschool and basketball programming. To avoid further postponement of these programs, staff request that Change Order No. 1 be approved pursuant to the emergency conditions set forth in Victorville Municipal Code Section 2.28.1 S0(b).

Please route the above referenced document as follows:

D Signatures needed by the following:

D Mayor/Chairman
[g]
[g]
□ □
□ □
□
City Manager
Deputy City Manager
Legal Counsel
Risk Manager
City Clerk
Notarization Required
Recordation Required
City Manager Approval:

Deputy City Manager Review:
?�� s:::

D This item was presented to the City Council/Board of Directors at the meeting of _____ . (Attach staff report for reference)
Strategic Plan Goal E: Invest in Infrastructure: This project supports infrastructure investment by replacing aging systems that help maintain essential City operations Departmen
�
Recommendation: I have reviewed the subject item and recommend approval.
� Memo prepared by Daysi Oxley and returned to Daysi Oxley. [g] This item is an urgent item for the following reason: to keep the project on schedule.

Item needs to be completed by as soon as possible.

Attachments
• Attachment A- Moisture Test Results / Contractor Documentation • Attachment B -Change Order 1
• Attachment C - Facilities Account Inquiry
Attachment A
Moisture Test Results/ Contractor Documentation
Moisture and pH Test Report
I Client Name: I City of Victorville
Hook Community Center
Address: 14973 Joshua St, Victorville, CA 92394
Name of Tester: I Andrew Rosine I Date of Test: j 11212025 I Type of Subfloor I Wood D I Concrete IZ]
I Tester Make/Model/Serial#
Date of Tester Calibration: 12/31/2024
Test Location 1 2 3
Sensor Number L622076112 L622076125 L622076498
Depth 2.4" 2.4" 2.4"
Time of Test Setting 11 :30am 11:30am 11 :45am
Time of Test Read 12:30pm 12:30pm 12:30pm
RH % in Subfloor 96% 88% 99%
Temp of Concrete 66° 67°
69°
Ambient Air Temp 66° 72° 68°
pH reading 10 10 10
4 5 6
L622076203 L622076395

2.4" 2.4"
11 :45am 12pm
12:30pm 12:30pm
90% 99%
69° 73°
72 ° 74°
10 10
7 Tested by: !Andrew Rosine I Company: I Lawrence W. Rosine Co.

Moisture meets requirement of AS 1884 - 2012 Floor Coverings - Resilient sheet and tiles - Installation practices
Test#2
,, ...

Serial#: L622076125
Test Result: 880/o RH
.i
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Test#3
Serial #: L622076498
Test Result: 99% RH
%'�01i �� r- a, Ol
'.'iit�I sg.: !1 �
�ft]
rial #: L6220
est Result: 99
076203
Attachment B
Change Order 1
Lawrence W. Rosine Co.
8640 Red Oak St. Rancho Cucamonga 91730
Office: 626-962-4915
Date: 1/4/2025 Contractor: City of Victorville
Attention: Eddie Gleason
LWRRFC#:

TOTAL CHANGE ORDER
Inclusions:
375.00
225.00

77.63 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
I$
5,625.00
1,125.00
523.13
7,273.13
24,220.56
24,220.56
31,493.69
4,724.05
36,217.74
36,217.741
Added cost to furnish and install Koster UFS 2-part epoxy moisture barrier due to excess RH readings.

Accepted: ---------------
51 g n tu a rn,
�� I= 1 e
Date: ::;i • • ,.., 9 ��t,,
Lawrence W. Rosine Co.

By: Andrew Rosine
Email: A. .... d,eW@lwrosineco com
CA UC. 173235
Attachment C
Facilities Account Inquiry
•f:•. Account Inquiry {CITY OF VICTORVILLEJ..

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Item Number: 21
City Council / Board of Directors
Written Communications
Meeting of: January 20, 2026
Submitted By:

Keith C. Metzler, City Manager

Subject:

Public Safety Plan Update
Recommendation:

That the Honorable City Council review and file the attached Public Safety Plan Update.

Fiscal Impact:

There is no fiscal impact associated with this item.

Strategic Plan Goal:

This item aligns with Goal A – Financial Sustainability and Goal B – Public Safety as outlined in the City of Victorville 2023–2026 Strategic Plan. Measure P is a vital source of revenue that enables the City of Victorville to enhance public safety and expand essential services. Funds generated through Measure P support vital departments such as Police, Fire, Code Compliance, Animal Services, Community Services, and Homelessness Solutions, helping to meet the needs of a growing population.

Background:

On May 19, 2020, the City Council was presented with the Victorville Public Safety Plan, a comprehensive strategy to improve public safety. After a thorough review, the City Council adopted Resolution No. 20-065 on July 21, 2020, authorizing the submittal of a one percent General Transaction and Use Tax (TUT) measure on the ballot for the November 3, 2020, General Municipal Election. At that election, voters approved Measure P, enacting a one percent (1.0%) TUT, enabling the City to expand essential services and increase public safety for Victorville’s growing population. This one percent sales tax took effect on April 1, 2021, increasing Victorville’s sales tax rate from 7.75 percent to 8.75 percent.
4 5
2 2
Discussion:

Since the approval of Measure P in 2020, the Public Safety Plan has served as a strategic framework for investments directed at enhancing public safety in the Victorville community. Said investments have been allocated to departments including Police, Fire, Code Compliance, Animal Services, Homelessness Solutions, and Community Services.

This Public Safety Plan Update is intended to highlight achievements, promote transparency in the use of Measure P revenues, and keep the City Council and community informed about how Measure P continues to support public safety and community improvements.

Once Measure P took effect on April 1, 2021, the City immediately began making monumental investments in public safety, including the opening of Fire Station 315 with a medic engine comprising nine Fire personnel and adding 11 new personnel to the Police Department. Measure P led to immediate additional investments outlined in the Public Safety Plan, including a proactive approach to Code Compliance and Animal Services, as well as expanding operations to seven days a week.

Although the aforementioned investments were immediate, Measure P has funded numerous accomplishments. The Police Department has reduced response times, decreased traffic collisions and fatalities, increased traffic citations, and implemented an 8-beat patrol system that focuses on smaller geographic areas for quicker response times and greater community presence. The Fire Department has added three new Type 1 front-line engines, one tractor-drawn aerial (Tiller), and three transport capable squads, along with investments in personnel in suppression, prevention, emergency medical services, and administration. Most notably, 12 Firefighter Paramedics were added to the department in 2024 and have been instrumental in improving response times and reducing the call volume on the front-line engines, allowing the front-line engines to be available for higher-level calls for service. Code Compliance has increased staffing by 212% since the Public Safety Plan was presented to the City Council and created the Homeless Engagement Taskforce (HET) to reduce homelessness and identify issues with the City’s homeless population. Although there was no need for an animal shelter during the Public Safety Plan, in December 2023, Animal Services repurposed the former Goodwill High School into an Animal Care and Adoption Shelter. This change occurred due to the closure of the shelter previously operated by the Victor Valley Animal Protective League.

While an important goal for Measure P was to increase Public Safety, Ordinance 2409 establishing the General Transaction and Use Tax, listed the purpose as unrestricted revenue to be spent on essential municipal services, including, without limitation, recreational facilities and parks. Measure P has funded several Community Services projects such as the 24-hour remote library kiosk at Sunset Ridge Park, refinishing the gymnasium floors at Hook Park and the Westwinds Sports Center, tennis court and pickleball court resurfacing, replastering the Doris Davies Pool, the installation of self- cleaning restrooms at Center Street Park and Brentwood Park and expenses at the new Library that were not covered by the grant from the State of California. 4 5
2 2
As the Public Safety Plan directs the utilization of Measure P revenue, it should be noted that the City has adopted several new strategies not originally outlined in the Plan. The City will continue to adjust these strategies to ensure that all projects and objectives are in alignment with the City’s Strategic Plan. Staff recommends the City Council review and file the attached Public Safety Plan Update.

Staff remains available for any questions or comments you may have.

Prepared By:

Tony Camargo, Deputy City Manager
Darcy Mahoney-Henson, Administrative Analyst
Attachments: A. Public Safety Plan Update

ATTACHMENT A
Public Safety Plan Update

PUBLIC SAFETY PLANUPDATE
JANUARY 2026 FIVE YEAR PUBLICSAFETY UPDATE
Executive Summary
The following points are intended to
summarize and highlight key points found
in this 5-year Public Safety Plan update.
1 Measure P has generated approximately $124
million
Public safety staffing increased from 198 to 280
employees, representing a 41% increase
Police Department staffing levels have increased
from 128 to 142 employees, representing an
11% increase
Police response times have been reduced
significantly for all non-emergency call types
Traffic citations have increased from 1,535 to
7,523, a 390% increase
Reported traffic collisions have reduced from 5,022 to 3,065, a 39% reduction.

Fatal traffic collisions have declined from 26 to 15, a 42% decline Fire Department staffing levels have increased from 55 to 93, a 69% increase Expanded fire and medical services by opening station 315 and adding medic engine 315, medic squad 312, and medic squad 315
Fire and medical responses increased by 2,607 calls, an 11.35% increase Code Compliance staffing levels increased from 8 to a total of 25, which allowed for an increase in its caseload from 3,127 to 9,272 cases, a 200% increase Animal Services expanded its staffing levels by 13 employees, allowing for it to enhance its service delivery by opening and operating an Animal Sheltering and Adoption Center
Animal Services caseload has increased from 12,377 to 13,996, a 13% increase A 170-bed wellness and recuperative care facility was constructed and began operations
5-Year Public Safety Plan Update 2

Background
In November of 2019, the City Council directed staff to prepare a comprehensive plan for improving public safety and options for generating revenue toward that end. This resulted in the Public Safety Plan that was presented to the City Council in May of 2020 (Appendix B). This plan focuses on means of improving public safety with a n emphasis on Police, Code Compliance, Animal Services, and Fire. As a part of this plan, staff made several recommendations regarding staffing and budgeting needs to ensure the levels of service matched the increasing population in the City of Victorville. Most importantly, staff recommended implementing a 1% Gener al Transaction and Use Tax which could be used for enhanced public safety, public library improvements, public park improvements and improved fiscal target reserves. This resulted in a ballot measure in November of 2020 wher e Measure P was voted on and app roved by the residents of Victorville.

Since taking effect in April of 2021, Measure P has enabled the City to increase public safety and expand essential services like Police, Fire, Code Compliance, Animal Services, Community Services, and Homelessness Solutions. Since its implementation, the City has received an average of approximately $28 million annually in Measure P funding. The 2020 Public Safety Plan provided options for proactive efforts, including, but not limited to:
• A recommended increase of 30 full-time personnel to transition the local police force to a more proactive patrol and a traffic enforcement agency, while dramatically reducing non- emergency response times, as well as rea lignment of the beat system for higher priority needs.
• Hiring nine (9) additional Fire Department members and opening Fire Station 315. • Hiring an additional six (6) staff members for Code Compliance , and expanding services such as street parking, City park patrol, vacant property registration, and proactive weed abatement.
• Hiring an additional six (6) staff members for Animal Services and extending operating hours, as well as improving field operations and licensing.

This report serves as an update to the 2020 Public Safety Plan, providing details on what the City has accomplished in response to the recommendations made, as well as additional accomplishments that have resulted from Measure P funding.

Budgeting
Measure P funding has been instrumental in the City successfully expanding services across Police, Fire, Code Compliance and Animal Services. In ten (10) years, the expenditures for these departments have more than doubled as funding has become more availa ble and as costs of services increase. As a result of the funding available through Measure P , the City has also 5-Year Public Safety Plan Update 3

successfully increased the General Fund Reserve target from 15% to 17% and implemented a Measure P Reserve target to match.

*2021-2024 reflect years in which Measure P funding was available. **Expenditures spiked in 2019 due to start up costs associated with reinstating the Victorville Fire Department, after previously contracting service with the San Bernardino County Fire Protection District. Contract services were paid through March 2019 for San Bernardino County’s service.

$32,842,679
$34,252,124
$35,491,136
$37,497,364
$39,004,018
$45,881,652
$41,639,373
$44,861,314
$49,221,357
$61,104,966
$68,240,428
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000

PUBLIC SAFETY ANNUAL EXPENDITURES

5-Year Public Safety Plan Update 4

While Police and Fire have much larger operating budgets and needs due to the nature of the work performed, Measure P has made it possible for Code Compliance and Animal Services to expand their operations without the General Fund being impacted.

Population and Staffing Trends
Due to the City of Victorville’s affordable housing, the population has steadily increased over the course of the last 30 years. Victorville’s growing residential base has created an exponentially greater demand for public servic es, including public safety. In the years prior to Measure P’s implementation, staffing increases were being far outpaced by population increases, causing the community to feel as if service levels had decreased despite staffing levels remaining the same.

The following tables show the trends over the last ten years with both population and staffing. $37,484,031
$17,088,825
$1,196,668 $886,765
2024 GENERAL FUND

EXPENDITURES
Police Fire Code Compliance Animal Services
$5,098,408
$3,163,402
$1,651,921
$1,690,404
2024 MEASURE P FUND

EXPENDITURES
Police Fire Code Compliance Animal Services
5-Year Public Safety Plan Update 5

As illustrated by the Population Trend chart above, the City of Victorville’s population has seen an increase of almost 18% over the course of the last ten years.

*Police data is not available for 2020 - 2022 due to the network disruption that affected the San Bernardino County Sheriff’s Department on April 7, 2023. Figures for 2023 only includes the months of August through December. 120,590
121,168
123,510
123,565
123,710
126,543
134,638
135,950
137,430
138,869
141,777
105,000
110,000
115,000
120,000
125,000
130,000
135,000
140,000
145,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

POPULATION TRENDS
Population

1.45 1.55

1.50 1.51

1.51 1.45

0.29 0.34

0.32 1.00

1.37 0.00

0.20 0.40

0.60 0.80

1.00 1.20

1.40 1.60

1.80 2014 2015 2016 2017 2018 2019 2020* 2021* 2022* 2023* 2024

CALLS-FOR-SERVICE PER CAPITA
5-Year Public Safety Plan Update 6

*The Fire Department was contracted through the San Bernardino County Fire Protection District from July 2008 through March 2019.
**2021-2024 reflect years in which Measure P funding was available.

Over these same ten years, staffing remained relatively stagnant – even decreasing in some years – until the implementation of Measure P in 2020. Between 2020 and 2024, staffing increased by 39% across Police, Fire, Code Compliance, and Animal Services, increasing service levels and addressing community demands for public safety.

FY
2014*
FY
2015*
FY
2016*
FY
2017*
FY
2018*
FY
2019* FY 2020 FY
2021**
FY
2022**
FY
2023**
FY
2024**
Animal Services 6 6 6 6 7 7 7 8 10 11 20
Code Compliance 10 10 10 10 9 8 10 14 24 24 25
Fire 72 67 63 63 54 55 59 60 69 80 93
Police 124 124 125 125 128 128 127 139 141 142 142
TOTAL 212 207 204 204 198 198 203 221 244 257 280

STAFFING TRENDS

5-Year Public Safety Plan Update 7

Police

The San Bernardino County Sheriff’s Department (SBCSD) has provided contract law enforcement services for the City of Victorville since 1962. These services are augmented by several divisions, including Aviation, Training, Specialized Investigations, Scientific Investigations, Specialized Enforcement, Coroner, Gangs, and Narcotics.

$19,675,063
$20,633,419
$21,600,422
$22,793,215
$23,821,370
$25,831,885
$27,216,577
$29,352,385
$28,424,549
$34,723,463
$37,484,032
$2,105,604
$2,432,658
$5,098,408
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000

POLICE EXPENDITURES
General Fund Measure P
$30,530,153
$37,156,121
$42,582,440
5-Year Public Safety Plan Update 8

The Victorville Police Station is currently located at 14200 Amargosa Road and serves as headquarters for the Victorville Police Department. Due to the constrained space at this station, the City has been limited in its ability to increase staff ; however, have successfully increased staffing by nearly 15% in the last ten years, with an almost 11% increase in staffing since 2019.

**2021-2024 reflect years in which Measure P funding was available.

Additionally, the City has implemented an 8 -Beat Patrol System, as recommended in the 2019 Public Safety Plan, allowing deputies to patrol smaller geographic areas and allow for a more proactive approach to service.
86 88
89 88
91 91
92 97
98 98
98 37
36 36
37 37
37 35
42 43
44 44
0 20
40 60
80 100
120
140
160

POLICE DEPARTMENT STAFFING LEVELS
Sworn Non-Sworn
124
124
125
125
128
128
127
139
141
142
142

5-Year Public Safety Plan Update 9

*Data is not available for 2020 - 2022 due to the network disruption that affected the San Bernardino County Sheriff’s Department on April 7, 2023.
**2021-2024 reflect years in which Measure P funding was available. ***Figures for 2023 only include the months of August through December due to the network disruption.

As a result of the increased staffing made possible through Measure P , the response times for priority calls have decreased since 2019, as well. The following two charts summarize the time it takes for a Priority 2 -4 call to be a ssigned to a deputy upon being received by dispatch and the time it takes for the deputy to report to the scene.
30,061
31,816
25,031
24,056
23,034
21,070
17,154
17,844
116,489
125,354
128,960
128,624
126,473
123,300
78,556
127,710
146,550
157,170
153,991
152,680
149,507
144,370
95,710
145,554
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2014 2015 2016 2017 2018 2019 2020* 2021** 2022** 2023*** 2024** CALLS-FOR-SERVICE: PROACTIVE VS.

DISPATCHED
Proactive Calls Dispatched Calls Total

5-Year Public Safety Plan Update 10

0:23:19
0:20:11
0:28:36
0:49:54
0:52:08
0:57:34
0:49:38
1:19:32
0:47:00
0:36:00
0:33:21
0:29:07
0:37:07
1:06:15
1:14:25
1:14:39
0:52:10
1:21:32
0:51:00
0:39:00
0:37:38
0:31:15
0:41:58
1:17:22
1:15:45
1:16:28
0:54:24
1:31:56
0:47:00
0:39:00
2014 2015 2016 2017 2018 2019 2020 2021 2022* 2023 2024

RESPONSE TIME - RECEIVED TO DISPATCH
Priority 2 Priority 3 Priority 4
0:16:29
0:15:15
0:16:16
0:19:46
0:20:16
0:23:02
0:22:07
0:23:10
0:18:00
0:17:00
0:16:26
0:15:35
0:17:56
0:20:50
0:22:15
0:23:57
0:21:36
0:23:51
0:17:00
0:17:00
0:17:08
0:16:16
0:17:35
0:20:32
0:23:14
0:26:26
0:21:18
0:21:46
0:14:00
0:14:00
2014 2015 2016 2017 2018 2019 2020 2021** 2022* 2023** 2024**

RESPONSE TIME - DISPATCHED TO ON-SCENE
Priority 2 Priority 3 Priority 4

5-Year Public Safety Plan Update 11

*Data is not available for 2022 due to the network disruption that affected the San Bernardino County Sheriff’s Department on April 7, 2023.
**2021-2024 reflect years in which Measure P funding was available.

All priority levels can apply to the same type of call. The information being relayed could change the priority response level. For example:
• Priority 2 – Incidents in which the suspect is out of the area, but a delay in response would cause a loss of evidence. This type of call could also be a burglary where the suspect has fled the scene, but evidence of the suspect is available and needs to be gathered quickly. • Priority 3 – Incidents in which the suspect is out of the area and delay would not cause a loss of evidence. This type of call could include vandalism property crimes. • Priority 4 – Incidents in which the suspect is out of the area and the existence of evidence is unlikely. This type of call includes stale crimes, such as someone leaving for vacation and coming home to find vandalism or burglary.

As a part of the increase d staffing made possible through Measure P , five (5) additional Sheriff’s Service Specialists (SSS) were hired, bringing the total number of SSS to 16. The SSS support the Police Department by handling public contact, routine reports, evidence, and adminis trative tasks, acting as a liaison between the community and deputies. The SSS are able to handle Priorty 3 and 4 calls, which alleviates the Deputies to respond to the higher priority calls. As a result of this increased staffing and deliniation of tasks, response times have decreased considerably.

**2021-2024 reflect years in which Measure P funding was available.

7107
3337
2710
3697
2114
1535
3918
3215
4806
4200
7523
0 1000
2000
3000
4000
5000
6000
7000
8000
2014 2015 2016 2017 2018 2019 2020 2021** 2022** 2023** 2024**

TRAFFIC CITATIONS ISSUED

5-Year Public Safety Plan Update 12

The 2020 Public Safety Plan largely attributed to the increasing response times to traffic and the distance traveled by officers to report to the scene. The 8 -Beat Patrol System that was implemented has alleviated these issues, giving officers smaller geographical areas to cover and thus decreasing respon se times considerably. This has also realligned staff to better cover the Traffic Division, increasing the number of traffic citations issued since 2019 by over 390%. Along with the increased number of citations, the increased enforcement and proactive pat rols have also influenced driving behavior, causing the number of traffic collisions, including those with fatalities to trend downward. In addition to the enhanced traffic enforcement, targeted concentration events have heightened Police visibility, there by creating a more noticeable presence.

**2021-2024 reflect years in which Measure P funding was available.

3850
4225
4760
4788
5045
5022
2813
3348
2780
3208
3065
0 1000
2000
3000
4000
5000
6000
2014 2015 2016 2017 2018 2019 2020 2021** 2022** 2023** 2024**

TRAFFIC COLLISIONS

5-Year Public Safety Plan Update 13

**2021-2024 reflect years in which Measure P funding was available.

The goal for departmental growth remains , and in order to address this, the City has utilized Measure P funds in addition to $3,700,000 discretionary funding from the San Bernardino County to acquire land for a new Victorville Police Station and Civic Plaza. In addition to these funding sources, the City has established a capital reserve account in which $4,000,000 has been added annually since Fiscal Year 2023. The 2020 Public Safety Plan recommended an increase in staffing for the Police Department; however, it did not identify the need for expanding the Police Station.

The current Police Station was constructed in 2001 and is a 15,828 square-foot single-story facility.

As staffing has nearly doubled since 2001, the size of the building has remained the same. In addition to the constrained building space, the parking lot is limited to approximately 114 parking stalls, making it difficult to add new personnel. These physical constraints are negatively affecting the ability to add additional members to the Police Department. Thus, the City is currently in the design of a new Police Station that will provide over 44,000 square -feet of building space and over 300 parking stalls. This project has an expected completion date of 2028.

16 9
12 21
18 26
25 31
36 19
15 0
5 10
15 20
25 30
35 40
2014 2015 2016 2017 2018 2019 2020 2021** 2022** 2023** 2024**

FATAL TRAFFIC COLLISIONS

5-Year Public Safety Plan Update 14

Fire

At the time of the Public Safety Plan in May of 2020, the City of Victorville’s Fire Department had transitioned back to Victorvile Fire on March 30, 2019, after over ten years of contracted services from the San Bernardino County Fire Protection District (SBCFPD). At the time of transition, it was discovered that facilities and apparatus had not been maintained properly and thus required increased investment to successfully support the new ly reinstated Victorville Fire Department.

The Public Safety Plan made recommendations not only to increase staff , but to also address repairs and upgrades to the facilities, apparatus, and other equipment.

*Expenditures spiked in 2019 due to start up costs associated with reinstating the Victorville Fire Department, after previously contracting service with the San Bernardino County Fire Protection District. Contract services were paid through March 2019 for San Bernardino County’s service. $12,440,620
$12,833,818
$13,052,939
$13,971,522
$14,327,311
$18,672,219
$13,200,423
$13,506,863
$15,544,374
$16,873,745
$17,088,826
$499,850
$3,188,636
$3,163,402
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000

FIRE EXPENDITURES
General Fund Measure P
$16,044,224
$20,062,381
$20,252,228
5-Year Public Safety Plan Update 15

At the time that the Victorville Fire Department was reinstated, s taffing levels had shown a downward trend in the years that SBCFPD was contracted. Since 2019, the City has successfully increased staffing by over 69% as shown in the table below.

**2021-2024 reflect years in which Measure P funding was available.

Positions have been added to Suppression, Prevention, EMS, and Administrative Services within the department, addressing deficiencies to the level of service that were identified in the 2020 Public Safety Plan. With the increased staffing, the City was suc cessful opening Fire Station 315 in July of 2021, allowing the Victorville Fire Department to better respond to incidents and address the number of calls received.
72 67
63 63
54 55
59 60
69 80
93 0
10 20
30 40
50 60
70 80
90 100

FIRE DEPARTMENT STAFFING LEVELS

5-Year Public Safety Plan Update 16

*SBCFPD provided contracted services to the City from July 2008 through March 2019. **2021-2024 reflect years in which Measure P funding was available. ***Other calls include public service calls, assisting law enforcement, water leaks, smoke alarm or fire sprinkler activations, carbon monoxide alarms, down power lines, etc.

From 2019 to 2024, the Victorville Fire Department has seen an increase of over 11% in total calls received, making it the second busiest fire department in San Bernardino County. The variety and complexity of the target hazards within the City require resources and training that most agencies will not encounter. In order to address t he unique set of challenges the Fire Department faces, the City has utilized Measure P funding for purchasing apparatus equipment and other notable equipment listed in Appendix A.

In addition to these purchases, the City has made noteworthy changes to both staffing levels and necessary upgrades to each of the five fire stations operated by the Victorville Fire Department, addressing concerns raised in the 2020 Public Safety Plan.

Fire Station 311
Staffing at Fire Station 311 includes one (1) Battalion Chief, two (2) Fire Captains, two (2) Fire Engineers, and four (4) Firefighter Paramedics for a total of nine (9) personnel. 2014* 2015* 2016* 2017* 2018* 2019* 2020 2021** 2022** 2023** 2024** Other Calls*** 2,018 2,061 2,002 1,870 2,033 2,291 3,334 3,682 1,912 1,887 1,809 Fire Calls 585 715 772 867 881 967 1,608 1,975 1,993 2,012 1,994 Medical Calls 16,046 18,000 18,593 20,109 19,369 19,715 21,314 22,733 21,368 21,010 21,777 TOTAL 18,649 20,776 21,367 22,846 22,283 22,973 26,256 28,390 25,273 24,909 25,580 0 5,000
10,000
15,000
20,000
25,000
30,000
FIRE DEPARTMENT: CALLS FOR SERVICE

5-Year Public Safety Plan Update 17

Fire Station 311 houses the following apparatus:

Apparatus Purchase Year Fund Source Status Staffing
ME311 2023 ARPA Front Line Regular
MT311 2024 ARPA Front Line Regular
MS311 2023 ARPA Front Line Regular
WT311 2025 ARPA Front Line Cross Staffed – Wildland
R311 2018 General Fund Front Line Cross Staffed – All Hazards ME314A 2006 General Fund Reserve

Though not funded through Measure P , the City has leveraged the use of ARPA funding to purchase four (4) new front line apparatus since reinstating the Victorville Fire Department in 2019. Front line refers to any apparatus that is a primary res ponse vehicle for an identified Fire Management Zone. Reserve apparatus are maintained to backfill front line units when a primary response vehicle is out of service.

Utilizing funding available thr ough Measure P , the following repairs and upgrades have been made to Fire Station 311:
o ADA Compliant Restroom
o New Bay Doors
o HVAC Replacement
o Perimeter Fencing & Security Gate
o Ventilation Training Prop
o Training Room Remodel (Carpeting, Paint, Tables and Chairs) o Training Tower Paint
o Kitchen Remodel
Fire Station 312
Staffing at Fire Station 312 includes one (1) Fire Captain, one (1) Fire Engineer, and three (3) Firefighter Paramedics, for a total of five (5) personnel – a staffing increase of 66% since the 2020 Public Safety Plan. A medic squad was added to Station 312 with two (2) additional new positions in 2024 to enhance medical response times, ultimately relieving the front-line engines to be available for higher priority calls.

Fire Station 312 houses the following apparatus:

Apparatus Purchase Year Fund Source Status Staffing
ME312 2020 General Fund Front Line Regular
MS312 2023 ARPA Front Line Regular
OES6315 2020 State Funding Front Line Cross Staffed – Wildland OES6110 2025 State Funding Reserve Cross Staffed – All Hazards

5-Year Public Safety Plan Update 18

Though not funded through Measure P , the City has leveraged the use of alternate funding sources to purchase three (3) new front line apparatus and one (1) reserve apparatus since reinstating the Victorville Fire Department in 2019.

Utilizing funding available through Measure P , the following repairs and upgrades have been made to Fire Station 312:
o Northwest Bay Door Replacement
o HVAC Replacement
o Security Gate
Fire Station 313
Staffing at Fire Station 313 includes one (1) Fire Captain, one (1) Fire Engineer, and one (1) Firefighter Paramedic.

Fire Station 313 houses the following apparatus:

Apparatus Purchase Year Fund Source Status Staffing
ME313 2023 ARPA Front Line Regular
ME312A 2016 General Fund Reserve

Though not funded through Measure P , the City has leveraged the use of ARPA funding to purchase one (1) new front line apparatus since reinstating the Victorville Fire Department in 2019.

Utilizing funds available through Measure P , the following repairs and upgrades have been made to Fire Station 313:
o Security Gate
o Conceptual Design to Expand the Fire Station
Fire Station 314
Staffing at Fire Station 314 includes one (1) Fire Captain, one (1) Fire Engineer, and one (1) Firefighter Paramedic.

Fire Station 314 houses the following apparatus:

Apparatus Purchase Year Fund Source Status Staffing
ME314 2023 ARPA Front
Line
Regular
MT311A 2006 General Fund Reserve
ME314A 2005 Bond
Proceeds/SCLA
Reserve
5-Year Public Safety Plan Update 19

BE314 2019 General Fund Front
Line
Cross Staffed – Wildland
HM314 2018 General Fund Front
Line
Cross Staffed – Hazardous
Materials

Though not funded through Measure P , the City has leveraged the use of alternate funding sources to purchase two (2) new front line apparatus since reinstating Victorville Fire in 2019.

Utilizing funds available through Measure P , the following repairs and upgrades have been made to Fire Station 314:
o Security Gate
o ADA Compliance Restroom (in progress)
o Flooring & Carpeting (in progress)
Fire Station 315
The City opened Fire Station 315 in July of 2021 . Fire Station 315 was constructed in 2009, but never opened due to financial issues associated with the Great Recession.

New staffing at Fire Station 315 includes one (1) Fire Captain, one (1) Fire Engineer, and three (3) Firefighter Paramedics.

In 2021, Fire Station 315 opened with a medic engine staffed by three (3) personnel. In 2024, a medic squad was introduced at Fire Station 315, adding two additional positions each shift to improve medical response times and ensure that front -line engines at Fire Station 313 and 315 are available for higher priority calls.

Fire Station 315 houses the following apparatus:

Apparatus Purchase Year Fund Source Status Staffing
ME315 2020 General Fund Front Line Regular
MS315 2023 ARPA Front Line Regular

Though not funded through Measure P , the City has leveraged the use of alternate funding sources to purchase two (2) new front line apparatus since reinstating Victorville Fire in 2019.

Utilizing funds available through Measure P , the following repairs and upgrades have been made to Fire Station 315:
o Security Gate
o Exterior Lighting
o New Fuel Pump/Tank
5-Year Public Safety Plan Update 20

To ensure fire suppression and emergency service coverage in the City of Victorville aligns with national standards and industry best practices, continuous investment in personnel, operations, apparatus, and facilities is essential. With the support of Mea sure P , the City can maintain and enhance the services provided by the Victorville Fire Department.

5-Year Public Safety Plan Update 21

Code Compliance

In 2019, the Victorville City Council began considering a change to its Code Enforcement approach. This approach considered transitioning from a strictly complaint based reactive response to a more proactive enforcment in reaction. The change in approach was motivated by resident complaints at the time about an increasing disregard for code compliance. Typical Code Compliance cases identified at the time include those indentified on page 40 of the 2020 Public Safety Plan (Appendix B).

Code Compliance has seen exponential growth both in staffing and tasks that they are responsible for. This is as a result of a 683% increase in the funding available for these services since 2019.

5-Year Public Safety Plan Update 22

*Data is not available for 2014-2018
Since the 2020 Public Safety Plan, staffing has increased by over 212%, giving the City the ability to deploy a team with the specific goal of reducing homelessness and addressing issues with the City’s homeless population. The Homeless Engagement Taskforce (HET), which was established in April of 2021 as a result of Measure P funding, consists of five staff members – four (4) Code Compliance Officer II’s and one (1) Supervisor – who are able to focus on this specific task as a result of increased staffing throughout the department as a whole. Code Compliance staffing levels consist of an Official, one (1) Manager, three (3) Supervisors, 14 Code Compliance Officers, and four (4) Administrative Staff, as well as Sanitation staff that are funded through Measure P and regularly assigned to assist the Code Compliance Department with homeless encampment cleanups, community cleanups, illegal dumping, and tire dump abatements. $363,779
$567,992
$801,533
$789,862
$951,335
$1,196,668
$514,858
$1,251,909
$1,651,922
0 500000
1000000
1500000
2000000
2500000
3000000

CODE COMPLIANCE

EXPENDITURES
General Fund Measure P
$1,304,720
$2,203,244
$2,848,590
5-Year Public Safety Plan Update 23

**2021-2024 reflect years in which Measure P funding was available.

As a result of increased staffing, Code Compliance has also successfully expanded operations to seven days per week with hours of operation until 6 p.m. on Sundays and 8 p.m. on all other days, to improve public services to the community . Code Compliance has implemented a proactive approach to enforcement that was unattainable prior due to constrained staffing levels.

**2021-2024 reflect years in which Measure P funding was available. 10 10
10 10
9 8
10 14
24 24
25 0
5 10
15 20
25 30

CODE COMPLIANCE STAFFING LEVELS
2014 2015 2016 2017 2018 2019 2020 2021** 2022** 2023** 2024** Homeless Encampment 303 394 789 1,149 1,607
Proactive 413 344 352 347 458 764 1,977 2,574 3,383
Reactive 2,852 3,320 2,753 3,149 2,122 2,780 3,033 3,799 2,549 2,940 4,282 TOTAL 2,852 3,320 3,166 3,493 2,474 3,127 3,794 4,957 5,315 6,663 9,272 0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000

CODE COMPLIANCE CASES

5-Year Public Safety Plan Update 24

The total number of annual cases has nearly tripled since 2019, with a more than 875% increase in proactive cases. Before adopting a proactive approach, Code Compliance addressed homeless encampment complaints solely on a reactive basis. However, since the implementation of Measure P , the HET is now fully dedicated to managing these complaints. The HET also completed 695 field surveys of the homeless population in 2024, determining whether they are eligble for services such as placement at the City’s Wellness Center.

This approach to proactive enforcement has supported the goal of focusing on community and commercial appeal, investigating environmental complaints, and reducing community blight.

*Data is not available for 2014-2017.
**2021-2024 reflect years in which Measure P funding was available.

Roll over cases are those that are carried over from the prior year s that have not yet been concluded. This number fluctuates based on the availability of personnel, case priorities, and types of cases received.

In addition to increased staffing in Code Compliance, the City has also utilized Measure P funds to purchase new and upgraded equipment and offer additional training opportunities for staff, as listed in Appendix A.

With increased staffing and new technologies to assist, the City has successfully increased the enforcement of homelessness, unlicensed rental properties, blight, illegal dumping, marijuana grows, tobacco regulations, land use issues, street parking, FOG compliance, and firework nuisance. Increased staffing has also made it possible to increase patrols to seven days per week, including on-call support to our Fire and Police Departments. 199
1183
2853
3545
3607
4122
4523
0 500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2014* 2015* 2016* 2017* 2018 2019 2020 2021** 2022** 2023** 2024**

CODE COMPLIANCE ROLL OVER CASES
199
5-Year Public Safety Plan Update 25

Animal Services

Similarly, Animal Services has more than doubled its expenses since 2019 with Measure P funding.

This has increased the number of staff, giving the City the opportunity to open and operate its own Animal Care and Adoption Center after the closure of the shelter run by Victor Valley Animal Protective League (VVAPL) closed in April of 2023. Prior to the VVAPL closure, Victorville Animal Services principally involved responding to the need to collect and transport animals to the VVAPL shelter. Since April of 2023, Victorville Animal Services established temporary sheltering facilities at City-owned facilities until it was able to adopt a more permanent shelter and adoption center at the former Goodwill High School in December of 2024.

$727,006
$898,854
$837,775
$732,626
$855,367
$1,013,776
$978,380
$1,200,513
$1,280,865
$1,236,865
$886,766
$51,396
$447,169
$1,690,404
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000

ANIMAL SERVICES

EXPENDITURES
General Fund Measure P
$1,332,261
$1,684,034
$2,577,170
5-Year Public Safety Plan Update 26

**2021-2024 reflect years in which Measure P funding was available.

From 2019 to 2024, staffing increased from 7 to 20, representing a 185% increase. The 185% increase in staffing includes the addition of six (6) part -time staff members hired to assist with the new Animal Care and Adoption Center. The increased staff has not only given Animal Services the ability to operate their own facility, but also put an emphasized focus on adoptions, fostering, licensing, and increase the number of cases handled.
6 6
6 6
7 7
7 8
10 11
20 0
5 10
15 20
25 ANIMAL SERVICES STAFFING LEVELS

5-Year Public Safety Plan Update 27

*Inspection data is not available for 2014-2016.
**2021-2024 reflect years in which Measure P funding was available.

Staff has successfully managed to complete 17% more inspections annually since 2019 with the additional staff available to respond to issues throughout the City. Inspections include the following enforcement types:
o Abandoned Animal
o Animal Noise (barking, roosters, etc.)
o Animal Sales (breeding, etc.)
o Bites
o Care and Clean
o Containment
o Dead on Arrival
o Animal Locked in Vehicle
o Firework Induced Barking and
Containment
o Animal Hit by Car
o Injured Sick Animal
o Licensing
o Loose Leash Violation
o Nuisance Animals
o Owner Turn In
o Prohibited Animals
o Sheriff Assist
o Snake
o Tethering
o Waste
o Welfare Check
o Wellness Center Calls (Issues with
Wellness Center Client Pets)
Staff has also increased the number of cases handled by 5% since 2019. Case types include all animal-related inspections and enforcement activities, including those listed above.

In addition to increased staffing in Animal Services, the City has also utilized Measure P funds to purchase new and upgraded equipment for staff, listed in Appendix A. 2014* 2015* 2016* 2017 2018 2019 2020 2021** 2022** 2023** 2024** Citations Issued 95 193 580 269 265 205 85 164 205 243 359 Inspections Completed 1,133 6,248 6,742 4,663 6,735 7,396 6,532 7,884 AC Cases 6,413 6,574 6,696 5,923 5,457 5,430 3,971 5,410 6,300 5,144 5,703 TOTAL 6,508 6,767 7,276 7,325 11,970 12,377 8,719 12,309 13,901 11,919 13,946 0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000

ANIMAL SERVICES CASES

5-Year Public Safety Plan Update 28

This is in addition to not only the lease and rehabilitation of the former Goodwill High School for use as a shelter, but also the equipment needed for this functionality. In order to utilize this site as a shelter, the plumbing system required upgrades and former classrooms had to be retrofitted with plumbing systems for above ground kennels. Additionally, all HVAC systems, broken windows, restrooms, and flooring required repairs and the roof of the administrative building needed to be replaced. Measure P f unding was utilized for this project and also allowed Animal Services to purchase 130 stainless steel above ground kennels for sheltering operations and cleaning power equipment for their maintenance. In order to move Animal Services staff and equipment to this site for their daily operations, the network communications systems and infrastructure needed to be upgraded and security enhancements, such as a solar/cellular powered security system and parking and fencing improvements were completed utilizing Measure P funds as well.

To date, the Victorville Animal Care and Adoption Center has successfully adopted 1,201 animals since taking over sheltering operations.

5-Year Public Safety Plan Update 29

Community Services

While an important goal for Measure P was to increase public safety, Ordinance 2409 establishing the General Transaction and Use Tax listed the purpose of the tax as unrestricted revenue to be spent on essential municipal services including, without limitation, recreational facilities and parks. The City has utilized Measure P funding to expand services to our growing population within Community Services. As a part of these efforts, the City has successfully completed the following projects with funding from Measure P:
o Floor Refinishing at the Westwinds Sports Center and Hook Community Center Gyms o Installation of three (3) Shade Structures at Brentwood Park o Installation of a 24-hour Remote Library Kiosk at Sunset Ridge Park o Installation of an Inflatable Obstacle Course at Doris Davies Pool o Demolition of Dilapidated Structures at Center Street Park and Doris Davies Park o Tennis Court and Pickleball Court Resurfacing at Sunset Ridge Park o Parking Lot Resurfacing at Several Parks
o Replastering Doris Davies Pool
o Self-Cleaning Restrooms at Center Street Park and Brentwood Park The ability to upgrade our existing facilities through Measure P funding has made it possible to offer our community better experiences when visiting City parks and facilities.

5-Year Public Safety Plan Update 30

As a part of our efforts to expand services to our community, the City broke ground on a new library on May 22, 2024, expanding the blueprint of the existing Greentree Golf Course Clubhouse and converting existing structures to meet the needs of the projec t. This has been a highly anticipated project, as the existing Victorville City Library located at 15011 Circle Drive did not offer the square footage necessary to house library staff and the expanded programming we aimed to offer to our community. The new library, more than double the size of the existing library, will have a dedicated children’s library, multipurpose rooms, a maker’s space for hands - on creativity, a dedicated teen room, and more comfortable reading areas. This project has been made possible with grant funding from the State of California in addition to Measure P funding.

The anticipated grand opening of the new Victorville City Library is February 7, 2026.

5-Year Public Safety Plan Update 31

In addition to the projects completed utilizing Measure P funding, Victorville has also been able to purchase additional equipment for our Community Services and Public Works staff, listed in Appendix A.

5-Year Public Safety Plan Update 32

Homelessness and Housing

Homelessness is a societal problem experienced by many who call the City of Victorville home and has become prevalent in even the most affluent areas. An entirely new service made possible by Measure P , the City has implemented a dedicated team – Homelessness Solutions – to guide the efforts of preventing and addressing homelessness. This team is responsible for centralizing outreach initiatives, identifying and securing grant funding, and optimizing cross -agency collaboration to ensure those persons in need are connected with the services they need.

Utilizing funding from Measure P , the City began operations of a 92-bed interim shelter in the City’s Westwinds Sports Center. As a part of the Homelessness Solutions team’s efforts, the City was able to open t he first non-congregate care facility in the San Bernardino County, called the Victorville Wellness Center, which opened in December of 2023. With the opening of the Victorville Wellness Center, operations at the interim shelter were discontinued.

5-Year Public Safety Plan Update 33

The Wellness Center plays a critical role in helping sheltered and unsheltered individuals stabilize and rebuild their lives. It offers 170 interim housing beds, including family units, single and double occupancy rooms, and specialized recuperative care beds for those recovering after hospital discharge.

The total cost for the construction of the Wellness Center was $44,962,461. The majority of this funding came from Project Homekey, however additional funding was leverage d from various sources, as listed below:

Source: Amount:

Project Homekey Round 2 $23,612,058
American Rescue Plan Act of 2021 (ARPA) $19,413,472
Homeless Housing Assistance & Prevention (HHAP) $300,000 Community Development Block Grant (CDBG) $125,812
Permanent Local Housing Allocation (PLHA) Year 1 $599,589 Permanent Local Housing Allocation (PLHA) Year 2 $911,530 TOTAL $44,962,461

As a result of this funding, the City has been able to offer comprehensive support services to our homeless population, including case management and care coordination, job training and placement, legal services, housing navigation, behavioral health and recovery support.

The total operational cost of the Wellness Center annually is approximately $3,457,087. This was funded from the following sources:

Source: Amount:

Project Homekey Round 2 $1,518,045
ERF Round 3 $1,358,000
Kaiser $70,000
Measure P (Facilities Staff Wages) $197,059
Permanent Local Housing Allocation (PHLA) $313,983
TOTAL $3,457,087

The City has been able to leverage funding from multiple sources to fund the Wellness Center’s operating costs, but to ensure that no lapse in services occur, $1,600,000 is budgeted annually through Measure P funding as a backstop, should funding no longer be available elsewhere.

Since its opening in December of 2023, the Wellness Center has been instrumental in reducing the number of homeless individuals in the City of Victorville. Through outreach efforts, Homelessness Solutions has engaged with more than 85 0 individuals in the community experiencing homelessness and since opening, the Wellness Center has provided services to more than 800 individuals. In total, 1,135 unduplicated indiv iduals have been assisted or enrolled across all programs offered.
5-Year Public Safety Plan Update 34

* In 2021, due to the COVID-19 Pandemic, the Point-in-Time Count was not conducted and thus data is not available.

While figures have fluctuated over the last ten years, the number of unsheltered individuals has decreased dramatically. In the year between 2024 and 2025, unsheltered individuals decreased by more than 56%.

Notably, the City celebrated its 200 th graduate from the Wellness Center in November of 2025.

Teresa Massie, who had struggled with homelessness for many years, entered the Wellness Center in early 2025. While at the Center, Teresa received medical treatment for a behavior health disorder that contributed to her homelessness. She was paired with a case manager, who arranged for her personal care, support services, and training to help her gain stability and plan her transition into permanent housing.

Utilizing Measure P funding, The City has not only been able to increase staff to address homelessness both as part of t he Homelessness Solutions Team and the HET, but has been able to address concerns and offer solutions to homelessness that were not previously possible. 2014* 2015 2016 2017 2018 2019 2020 2021* 2022 2023 2024 2025 Unsheltered 127 198 81 187 179 298 224 317 326 141
Transitional Housing 27 29 12 28 21 21 63 71 53 44
Sheltered 107 37 39 48 133 132 168 219 232 263
0 100
200
300
400
500
600
700
VICTORVILLE STATISTICS: POINT-IN-TIME
COUNT

5-Year Public Safety Plan Update 35

Conclusion
The City of Victorville has made significant progress since the adoption of the 2020 Public Safety Plan and the approval of Measure P in 2020. Through this dedicated funding, the City has expanded staffing, enhanced facilities, invested in equipment, and implemented programs tha t directly improve the safety, health, and quality of life for residents. Police response times have improved, fire services have grown to meet increasing demand, and Code Compliance and Animal Services have expanded their reach to better serve the communi ty. Additionally, investments in Community Services, the Library, and Homelessness Solutions have provided long-term benefits that extend beyond public safety.

While much has been accomplished, the City recognizes that continued growth will require ongoing investment and planning. The construction of the new police station, potential future fire stations, expansion of the Animal Care and Adoption Center, and further park and community service improvements remain priorities. By maintaining a focus on strateg ic investments and responsible fiscal management, the City of Victorville can ensure that it not only meets current public safety needs but is also prepared to serve its growing population in the future.

Appendix A
Measure P funding has been utilized to purchase the following equipment:

Fire
Outfitting of Ten (10) Apparatus
Shoring Struts for Urban Search and Rescue (USAR)
Inflatable Boat for USAR
Ropes and Hardware Equipment for USAR
Search Camera for USAR
Cardiac Monitors
LUCAS CPR Device Equipment
Code Compliance
Nine (9) New Vehicles
Technology Equipment, Including Dash Cameras for Firework Enforcement Police HT Radios
Ballistic Vests
CIT & CA POST Training for Staff
Animal Services
One (1) Truck and One (1) Capture Box
77 Ready-to-Assemble Animal Kennels for Emergency Sheltering Operations Police HT Radios
Ballistic Vests
Community Services & Miscellaneous
Stage for Recreation & Special Event
Scissor Lift
Dump Trailer
Compacting Trash Truck
Pool Vacuum
Snowplow Attachment
New Vehicles Across Multiple Departments & Divisions
Appendix B

Public Safety Plan
May 19, 2020
Public Safety Plan Page 1

Table of Contents
EXECUTIVE SUMMARY ..................................................................................................................... 2-4 INTRODUCTION .................................................................................................................................... 4-5 TRENDS ................................................................................................................................................... 6-7 POLICE .................................................................................................................................................. 8-17 STAFFING LEVELS ................................................................................................................................ 9 CALLS ............................................................................................................................................... 11-13 TRAFFIC ........................................................................................................................................... 13-15 RECOMMENDATION ..................................................................................................................... 15-17 FIRE ...................................................................................................................................................... 18-38 STAFFING LEVELS .............................................................................................................................. 19 FIRE MANAGEMENT ..................................................................................................................... 20-29 APPARATUS ......................................................................................................................................... 30 FIRE RESPONSE .............................................................................................................................. 31-34 RECOMMENDATION ..................................................................................................................... 34-38 CODE COMPLIANCE & ENFORCEMENT................................................................................... 39-54 CODE COMPLIANCE CASES ....................................................................................................... 39-46 STAFFING LEVEL .......................................................................................................................... 46-49 NEEDS ASSESSMENT .................................................................................................................... 50-54 ANIMAL CARE & CONTROL ......................................................................................................... 55-65 ANIMAL CARE & CONTROL CASES ........................................................................................... 55-58 CURRENT STAFFING LEVELS ..................................................................................................... 58-62 RECOMMENDED STAFFING LEVELS ........................................................................................ 63-65 FINANCIAL ........................................................................................................................................ 66-74 PROJECTED CASH FLOW ............................................................................................................ 67-68 FUNDING OPTIONS ........................................................................................................................ 69-74 EXHIBIT A - A5................................................................................................................................ 75-80 EXHIBIT B – B3 ............................................................................................................................... 81-87 EXHIBIT C ........................................................................................................................................ 88-91

Public Safety Plan Page 2

EXECUTIVE SUMMARY

This document has been prepared at the direction of the Victorville City Council whereby the City Manager was directed to bring back for review and possible action, (1) a comprehensive plan for improving public safety with a particular focus on community p olicing, community police relations, code enforcement, animal control and fire, and; (2) a viable option or options for generating revenue with the goal of significantly enriching the quality of life for Victorville residents. This report considers public safety as providing protection to the general public and is expressed through municipal code compliance, crime prevention and the protection of life and property. In Victorville, public safety principally comprises police and fire services. Services tha t are integral to police and fire services include Code Enforcement and Animal Care & Control.

This report assesses levels of services, and offers advice on what staff and the City Manager believe is needed to adequately respond to the service level demands by its residents. Important highlights of this report are as follows:
• Over the last 20 years , population growth has nearly doubled with the greatest amount of growth between the years of 2000 and 2010 at approximately 7% annually and at approximately 1.3% annually from 2010 to 2019.
• Over the last 20 years, public safety expenditures have increase d at a rate of approximately 18% annually compared to 8% per year of general and property tax revenue and 1.6% annually in staffing levels.
• Police and Fire services alone comprise 64% of the City’s general fund. Including Code Enforcement and Animal Care & Control, that share increases to 66.45%. These shares of the general fund are increasing over time, reducing the amount available for other discretionary services such a recreation and library.
• Since 2008, Police total call volume increased 11% or by approximately 14,000 calls. • Since 2008, cost for Police service, which has grown at a rate of 4.2%, has outpaced the total Police personnel growth rate of less than 1%.
• Since 2008, dispatched calls for Police services have increased 30% while proactive calls have decreased by 40%, causing the Victorville Police force to be more reactionary to crime calls. • Since 2008, non-emergency response times for Priority 2 dispatched calls have increased by 42 - minutes, 54-minutes for Priority 3 calls and 56-minutes for Priority 4 calls.

Public Safety Plan Page 3

• Since 2008, traffic enforcement staff levels have remained relatively flat , however, service levels have decreased largely due to traffic enforcement being called to respond and support emergency patrol calls.
• Since 2010, traffic citations issued to motorists has declined by 67%. • Over the last 20 years, public safety staffing levels increased annually by 1.6% while cost of service increased by approximately 15% annually.
• A minimum increase of 30 full -time personnel is being recommended to transition the local police force to a more proactive patrol and a traffic enforcement agency , while dramatically reducing non-emergency response times.
• Since 2008, fire tooling, equipment, facilities and apparatus have been subjected to increased wear and tear, all requiring attention as Victorville operates its own fire department. • Since 2011, fire and medical calls for service increased by 49%, outpacing population grow th of 8%.
• Since 2011, medical calls for service have increased approximately 55%. • Since 2011, the share of medical calls to total fire service calls has increased from 82% to 86%. • A fire and medical service coverage gap exists in Fire Management Zone ( FMZ) 315, putting additional strain on available resources provided to FMZ 312 and 313. Supplemental medical services should be provided first at FMZ 313 until such a time as Station 315 can be re -opened with a fully staffed medic engine. This report recomme nds hiring nine additional fire service members and opening Station 315 in the 21/22 fiscal year. • Actual Code Compliance cases exceed caseload capacity of staff , creating delays in the time it takes to inspect, enforce and remedy Code Compliance cases. • Code Compliance staffing levels have remained relatively flat over the last 20 years, causing a reactive operating posture to enforce Code C ompliance matters. This report recommends an additional six staff members.
• Code Compliance case load is 45% greater th an the capacity available from existing staffing levels to attend to Code Compliance cases.
• Since 2010, Animal Control staffing levels have remained relatively flat while actual caseload has decreased. The decline in caseload activity is more directly related to the increased amount of time it takes to start and complete cases. Animal Control staffing levels are recommended to increase by six staff members to develop a more proactive response to Animal Control demands.

Public Safety Plan Page 4
• COVID-19 related revenue adjustments project a fiscal year 19/20 reduction of revenues by approximately $2.8 million and a $4.2 million projected revenue reduction in the 20/21 fiscal year as compared to the forecast from the current budget.
• Revenue enhancements were projected necessary to satisfy any expansion to public safety prior to the COVID-19 related pandemic and that revenue enhancement has been accelerated in timing if the City intends on expanding its public safety program. • To enhance its public safety levels, a general Transaction and Use Tax measure of 1% added to the existing 7.75% sales tax rate, is recommended to be added to the November 2020 general election for voter consideration.

INTRODUCTION
Victorville, over the last 30 years, has grown in population largely due to the affordable nature of its housing stock. Victorville, along with the entire Victor Valley, has traditionally exported its workforce “down-the-hill” where the larger employment centers are located , but remains focused on repositioning itself as a major employment center with its Southern California Logistics Airport. Notwithstanding its efforts to attract higher paying jobs and reduce its local commute shed to the larger labor m arkets of Southern California, Victorville’s growing residential base has created an exponentially greater demand for public services, including public safety services. Local governments in California, such as Victorville, rely on a relatively limited discretionary revenue source to fund general public services such as Police and Fire services. Among general discretionary revenue sources, sales and property taxes are the largest contributor to the City’s general fund. The growth rate of these revenue sou rces has been outpaced by the cost of services which has limited the ability of Victorville to expand its public safety service levels.

When this occurs, the net effect felt by any community is a reduction of service due to the growing demand for service.

Since 2008, Victorville has focused itself upon surviving the largest national recession felt since the Great Depression. Not until 2016 had Victorville consistently been in the position of building up its general fund reserve which is typically useful for cash flow management purposes, unplanned or emergency expenditures or to serve as a rainy day funding source. In fact, Victorville for the first time achieved its 15% general fund reserve target in 2019. Unfortunately, the spring of 2020 has introduced to the Victorville community, a global pandemic that will present many economic uncertainties in the near term, while the demand by its residents for increased public safety services grows. The ongoing pandemic has Public Safety Plan Page 5

not reduced the sound of Victorville voices as they have been increasingly asking for more public safety and community improvements such as parks and library enhancements.

This report pulls information and direct experience from key staff, including members of the Victorville leadership and executive team to summarize select trends that better help understand Victorville’s public safety service levels. This information is then compared to the financial resources generated from our community to satisfy public safety service levels so that this information can be used to assess the level of public safety services desired and the financial resources necessary from our residents to expand our public safety services. A fundamental fact or trend that has always been known to staff is that the cost of public services necessary to meet the service demands of its residents traditionally outpaces the revenues it generates. Accordingly, Victorville has found itself reducing service levels at times when fiscal constraint arises and it then attempts to catch up its service levels when fiscal conditions improve. This has kept Victorville from identifying the optimal service levels and maintaining them at pace with growth indicators.

The population figures summarized below in Tab le 1 reflect an approximate 96% increase in population in the last 20 years. This 96% increase represents an approximate 5% annual increase over the same 20 years. 74% of the population increase occurred between the years 2000 and 2010, at a rate of 7.4% annually. Over the same time period, public safety staffing levels as illustrated in Table 2 increased by a total of 32%, which represents an approximate 1.6% annual increase. Table 3 summarizes over the same time period an increase in public safety spending by $36.2 million which represents a 351% increase over the same time period and an annual average rate of approximately 18%. Altogether, the cost of service has outpaced the public safety service level growth. Over the last 20 years, staffing le vels increased annually by 1.6%. A continued trend in this direction, along with an expected increase in calls for service as population continues to grow, will cause the community to feel as if service levels decrease , despite staffing levels staying the same. Considering community demands for increased public safety, the forthcoming analysis summarizes existing service levels, recomme ndations to achieve the demands by our residents for increase public safety service levels and advice as to the necessary financial resources to accomplish the community’s goals.

Public Safety Plan Page 6

TABLE 1 – POPULATION TREND

TABLE 2 – STAFFING TREND

0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 77,679
112,097
119,059
123,510 126,543
64,455
Public Safety Plan Page 7

TABLE 3 – PUBLIC SAFETY EXPENDITURE TREND

$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Animal Care & Control
Code Enforcement
Fire
Police
Expenditures - Actuals
Public Safety Plan Page 8

POLICE
The San Bernardino County Sheriff ’s Department has provided contract law enforcement services for the City of Victorville since 1962. The Sheriff’s Department is the law enforcement agency for the largest geographical county in the nation. The department serves over 2.1 million residents, w ith eight county and 14 contract patrol stations.

The department is augmented by several divisions to include Aviation, Training, Dispatch, Court Services, Detentions, Specialized Investigations, Scientific Investigations, Specialized Enforcement, Civil Liabilities, Coroner, Gangs, Narcotics, Internal Affairs and Public Affairs. These augmented services are not found as direct charges in Victorville’s Schedule A, which is the detail explaining the local police force paid directly by the City. The Schedule A, approved by the Victorville City Council for the FY 19/20 can be found in Exhibit A.

The Victorville Station located at 14200 Amargosa Road serves as headquarters for personnel assigned to the Victorville Police Department. Personne l include sworn Deputy Sheriff’s and non -sworn Professional Staff. Personnel are outlined in Table A1 below and organized into several units and divisions: Patrol, Detectives, Gangs, Traffic, Multiple Enforcement Team (MET), Retail Theft, Adult Protective and Child Protective Investigations (APS/EPS), School Resource Officers (SRO), Crime Prevention, Media Relations and Administration.

TABLE A1 – POLICE DEPARTMENT CURRENT STRUCTURE

Victorville Sheriff’s Dispatch - 12
Crime Prevention Evidence
Media Relations Monitor Room
Automotive
Admin/Clerical
21 MET SRO
Gang Unit
16 DUI Enforcement
Traffic Unit
8 APS/EPS Retail Theft
Detective Unit
16 Dispatched Calls Proactive Calls
Patrol Unit
57 Command Staff
3 Victorville
Sheriff's Department
FY 19-20
Public Safety Plan Page 9

TABLE A2- STAFFING LEVELS

Beyond its primary role of protecting and serving, the Victorville Station attends m any community and charity events and supports various community groups by attending meetings as requested. Crime prevention and Media Relations personnel organize and teach classes on various topics throughout the year and support the Neighborhood Watch a nd Crime Free Housi ng programs. The Victorville Station does this in an effort to better connect with the community and to create a greater presence by officers throughout the community.

PATROL DIVISION
The largest division within the Victorville Station is the Patrol Divi sion. Patrol is principally responsible for responding to dispatched calls for service. Victorville Station deploys patrol personnel in twelve-hour shifts and is the only division staffed, 24 hours a day, seven days a week. Its shift structure consists of one dayshift and one nightshift with one cover shift to keep service levels sufficient during day and night shift rotations. A six -beat patrol system (Table A3) is utilized with one rover deputy on each side of the Interstate 15 freeway. This r esults in a minimum staffing level of eight Deputy Sheriffs per patrol shift.

Additionally, there is one Sheriff Service Specialist (SSS) assigned to each patrol shift. The role of the Patrol SSS’s is to provide “non-suspect” interface assistance to the pa trol deputy so that the patrol deputy can return to servicing calls as soon as possible.

-
20 40
60 80
100
120
140
SRO
Non-Sworn Dep
Sworn Dep
100
120
132
122
127
133
75 77 78
82 86
94 131 132 132 132
124 126 128 131
54 56
57 58
61 65
67 84
87 87
88 88
82 86
87 88
89 91
91 Public Safety Plan Page 10

TABLE A3 – BEAT MAP

Public Safety Plan Page 11

TABLE A4 – CALL VOLUME

Table A4 summarizes two categories of calls for service. A proactive call is one initiated by a deputy, an example of which may include a traffic stop. A dispatched call is either an emergency or non -emergency call that is generated by the 911 system or the dispatch center. Since 2008, dispatch ed calls increased a total of 30%, proactive calls decreased by 40% and total calls incre ased by 10%. From the data provided in Table A4, it is reasonable to consider that the reduction in proactive calls such as those generated by traffic stops is direct ly related to the shift in time required to respond to the more reactive dispatched calls. Calls for service are measured by response time based on the differing nature of each call for service. Calls for service can be measured by day of the week and by the time of day and the trend line of data supporting these calls for se rvice can be found in Exhibit A 4. Calls received and dispatched are assigned a priority level which is illustrated in Table A5.

0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 35,383
29,525
24,402
24,410
25,055
31,200
30,061
31,816
25,031
24,056
23,034
21,070
95,004
97,515
98,715
101,077
109,731
108,772
116,489
125,354
128,960
128,624
126,473
123,300
Calls-For-Service: Proactive vs. Dispatched
Proactive Calls Dispatched Calls
Public Safety Plan Page 12

TABLE A5 – CALLS FOR SERVICE – PRIORITY DEFINITIONS

PRIORITY E 1 2 3 4
Emergency Incident: Emergency Incident: Non Emergency
Incident:

Non Emergency
Incident:

In progress or just
occurred
In progress or just
occurred
Past Incident Past Incident Past Incident Public
Service
Actual Personal
injury
No threat of injury No threat of injury No threat of injury No threat of injury Potential for injury Perpetrator still in
immediate vicinity
Perpetrator not in
immediate vicinity
Perpetrator not in
immediate vicinity
Perpetrator not in
immediate vicinity
Perpetrator still at
scene or in
immediate vicinity
Response:

Immediate, but
generally not Code 3
Possible
contamination or
destruction of
evidence
Contamination or
destruction of
evidence unlikely
No possibility of
evidence
contamination or
destruction
Response:

Immediate, generally
Code 3
Response: ASAP,
not to exceed one
hour
Response: ASAP
managed response,
could exceed one
hour
Response: Managed
response
C
H
A
R
A
C
T
E
R
I
S
T
I
C
S

The Victorville Police Department consistently responds to Priority E – Emergency Incidents, typically involving lights and sirens, i mmediately. However, all other priority level calls for service have seen an increase in response time. For illustrative purposes, Table A6 summarizes the trend in time it takes for Priority 2 -4 call , to be assigned to a deputy upon the call being received by dispatch , and Table A7 summarizes the trend in time it takes for the deputy to report to the scene.

TABLE A6- PRIORITY CALL RESPONSE TIMES- RECEIVED TO DISPATCHED

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0:15:20
0:18:43
0:18:08
0:20:14
0:29:07
0:22:53
0:23:19
0:20:11
0:28:36
0:49:54
0:52:08
0:57:34
0:20:39
0:22:49
0:23:21
0:28:44
0:42:45
0:29:20
0:33:21
0:29:07
0:37:07
1:06:15
1:14:25
1:14:39
0:20:17
0:23:47
0:23:45
0:28:51
0:44:34
0:31:28
0:37:38
0:31:15
0:41:58
1:17:22
1:15:45
1:16:28

MINUTES
Response Time
Received to Dispatched
2 3 4
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Over the measurement period dating back to 2008, Table A6 illustrates an increase in time it takes to dispatch a call to an available deputy of approximately 42 minutes (275% approx. increase) for Priority 2 calls. It further illustrates that for Priority 3 calls, it took an a dditional 54 -minutes (258% i ncrease).

Priority 4 calls took an additional 56 minutes (280% approx. increase) to dispatch. Any form of delay in dispatching a call to a deputy has a direct correlation with all on -duty deputies attending to other priority calls, including higher priority calls.

TABLE A7- PRIORITY CALL RESPONSE TIMES- DISPATCHED TO ON SCENE

Table A7 above illustrates the trend in time it takes for an available deputy to actually respond to a call once it has been dispatched. For the priority types measured in Table A7, Priority 2-4 calls experienced an increasing amount of time to arrive on scene. Contributing factors to the increase in time to actually arrive on-scene include traffic and distance the dispatched officer h as to contend with while responding to the call. An important factor to know when viewing the call response time is that the time being measured is the time it takes from when the deputy is dispatched until the call is cleared. It is not uncommon for a patrol deputy to be dispatched to a non -emergency call, then get called off to a n emergency call, only to be re -dispatched to that originating non -emergency call at another time later in the day . The time measured in the tables above only measures the amount of time from when the deputy was re -dispatched to the non -emergency call, not from when the call was originally dispatched. This suggests the total response time being potentially greater than reported in tables A6 & A7.

TRAFFIC DIVISION
The Traffic Division is currently staffed with s even Deputy Sheriff’s, five specifically assigned to traffic enforcement and two for impaired driver enforcement. Traffic enforcement deputies work day shift during heavy traffic periods and im paired driver enforcement personnel ge nerally work during the evening; 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0:14:42
0:15:40
0:16:39
0:16:13
0:17:30
0:16:10
0:16:29
0:15:15
0:16:16
0:19:46
0:20:16
0:23:02
0:15:45
0:15:58
0:16:51
0:17:51
0:18:25
0:16:18
0:16:26
0:15:35
0:17:56
0:20:50
0:22:15
0:23:57
0:15:10
0:16:35
0:17:32
0:17:11
0:19:02
0:17:03
0:17:08
0:16:16
0:17:35
0:20:32
0:23:14
0:23:26

MINUTES
Response Times
Dispatched to On-Scene
2 3 4
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however, traffic deputies can adjust their schedule based on the needs of the city. Since 2008, and based on employee accounts, the number of deputies assigned to traffic has decreased . This reduction , combined with a common occurrence that traffic deputies spend more time on scene at the increasing number of traffic collisions, or get called off traffic to assist with emergency priority calls, directly correlates to the overall reduction in traffic citations issued (Table A8). The statistics described in Tables A9 and A10 show an increasing trend dating back to 2010 of total traffic collisions. The tables also show that the total number of traffic collisions began to increase after the red light cameras were removed in 2015. Collectively, Tables A8-A10 illustrate a need to influence a change in driving behavior, which could be accomplished through increased enforcement.

TABLE A8 – TRAFFIC CITATIONS

TABLE A9 – TRAFFIC COLLISIONS

4700 4382
5872
4437
7107
3337
2710
3697
2144 1535
0 1000
2000
3000
4000
5000
6000
7000
8000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

TRAFFIC CITATIONS FOR VICTORVILLE CITY

TRAFFIC CITATIONS FOR VICTORVILLE CITY
3721 3618 3815 3698 3850 4225
4760 4788 5045 5022
0 1000
2000
3000
4000
5000
6000
2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 Victorville City Traffic Collisions
Traffic Collisions *Red Light Cameras
Public Safety Plan Page 15

TABLE A10 – FATAL TRAFFIC COLLISION

SPECIAL ASSIGNMENTS
The Multiple Enforcement Team (MET) consists of 4 deputies dedicated to special or priority assignment by its Captain. MET is currently assisting the City crack down on ill egal marijuana grows and homeless related matters.

RECOMMENDATION
As a known financial consideration , the County and the sheriff’s employee union approved a new labor contract in August 2019, for its employees for FY 19/20 to FY 24/25. This labor contract increases Victorville’s annual contract by an estimated 5% annually with an estimated aggregate increase of more than $7 million over the 5 -year term. This known increase over the next 5 years, does not consider any increased staffing level. Assuming a continued increasing trend in both population and calls for service, Victorville should expect a continued decrease in proactive call response , and an increase in the number of dispatched calls. An increased number of dispatched calls will increase response times to all levels of priority calls. An increased number of dispatched calls and response times can lead to an increased demand to rely on traffic patrol to assist with dispatched calls , which then can reduce the level of tr affic enforcement on Victorville city streets.

Considering the information provided above, staffing recommendations are being made available in a tiered approach. The tiered approaches focus on realigning the current beat pattern Victorville deputies patrol, from a 6 -beat system to a 10 -beat system. Beat realignment should focus first on the busiest of 15 17
19 8
16 9
12 21
18 26
0 5
10 15
20 25
30 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

VICTORVILLE CITY FATAL TRAFFIC COLLISIONS
Fatal TC
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patrol beats, creating geographically smaller beats, which adds additional personnel to serve areas of the city with the highest demand. To be successful in improving traffic enforcement and patrol response times, beat realignment relies heavily upon an increased use of Sheriff Service Specialists (SSS’s). SSS’s are intended to be used for matters that involve non -suspect contact and may be related to lower p riority calls so as to improve response time to lower priority calls , and free up deputies for higher priority needs.

Examples of SSS’s responsibilities may include but are not limited to taking reports when suspects are not present, collecting evidence, c losing traffic lanes during traffic collisions and active crime scenes, enforcing parking violations and towing vehicles. A baseline minimum service level recommended is an 8-beat system.

8-BEAT PATROL SYSTEM
Under an 8 -Beat system, Patrol Beats #3 and #5 would be separated into geographically smaller patrol beats. To staff an 8 -Beat system, the department would have to increase its full-time personnel by thirty (30). The distribution of personnel would include the following:
1- Sergeant
17- Deputy Sherriff
11- Sherriff Service Specialists (Non-Sworn)
1- Crime Analyst (Non-Sworn)
Among the positions listed above, ten deputies would be assigned to the Patrol Division. Among the ten (10) deputies assigned to the patrol division, five (5) deputies would be assigned to each of the two new patrol beats (Beat 7 & 8). In addition to the ten (10) patrol deputies, nine SSS’s would be assigned to support the Patrol Division functions. With curren t staffing levels, the additional S SS’s will bring a total of three (3) SSS’s for each patrol shift and one SSS for counter reports at the police station. The 8-Beat System would further add to the Traffic Division, five (5) deputies and two (2) SSS’s. The role of the SSS’s that are assigned to the traffic division will be to assist in attending to traffic collisions and parking enforcement which is a workload that traffic deputies are currently attending to that contribute to the reduced levels of traffic enforcement. Two (2) deputies would be assigned to the Multiple Enforcement Team (MET), creating a six (6) person MET to better attend to the specialized needs of the community that are intended to improve response and enfo rcement of quality of life matters. Finally, for investigative matters, the Victorville Police Department relies on the use of a crime analyst that is a shared resource within the entire County’s Sheriff Department. To improve response and attention to inv estigative matters, Victorville’s call volume and type justify a dedicated criminal analyst to serve as support to deputies and detectives serving the department. A dedicated crime analyst will be housed in the Victorville Police Station and collocated with deputies and detectives assigned to the Victorville Station.

Public Safety Plan Page 17

Compared to the FY 19/20 Schedule A charge for services of $27.25 million found in Exhibit A, Exhibit A1 summarizes an estimated total cost of $33.2 million to operate an 8 -Beat System. That change in cost of service represents an estimated $5.98 million increase in the cost of service over current levels.

9-BEAT PATROL SYSTEM

A 9-Beat Patrol System assumes everything that is in an 8 -Beat Patrol System; however, it would divide patrol beats 3, 4 and 5 into geographically smaller beats and add an additional six (6) deputy sheriffs. The six deputy sheriffs would be assigned to the newly created patrol beat and include one Sergeant and five deputies. Compared to the FY 19/20 Schedule A c harge for services of $27.25 million found in Exhibit A, Exhibit A2 summarizes an estimated total cost of $34.77 million to operate a 9 -beat system. That change in cost of service represents a $7.52 million increase in the cost of service over current levels.

10-BEAT PATROL SYSTEM
A 10-Beat Patrol System assumes everything that is in a 9 -Beat Patrol System; however, it would divide patrol beats 2, 3, 4 and 5 into geographic ally smaller beats and add an additional six (6) deputy sheriffs.

The six deputy she riffs would be assigned to the newly created patrol beat and include one Sergeant and five deputies.

Compared to the 19/20 Schedule A charge for services of $27.25 millio n found in Exhibit A, Exhibit A 3 summarizes an estimated total cost of $36.66 millio n to operate a 10 -beat system. That change in cost of service represents a $9.41 million increase in the cost of service over current levels.

Public Safety Plan Page 18

FIRE DEPARTMENT
On January 16 th, 2018, the Victorville City Council voted to approve resumption of a city run fire department and directed staff to begin formation. Victorville Fire had been in operation from 1926 until staffing was contracted out to San Bernardino County Fire Protecti on District (SBCFPD) in 2008. The actions taken to resume operations were the result of a thoughtful year long process that began in 2017, studying fiscal, operational and community impacts and future options. A motivator for the City to reactivate its own Fire Department was its ability to operate for less money when compared to the then known and projected costs of the SBCFD service contract. In addition to cost savings, Victorville believed that it could enhance its quali ty of service to its residents. As evidenced in transition reports conducted by Fire Department staff, it became evident that in addition to providing fire service at a lesser cost, the facilities and apparatus had not been maintained properly thus requiring increased investment by Victorville as it continues a newly transitioned Fire Department

On March 30, 2019, the City officially transitioned its fire service from the SBCF PD to its own Fire Department. In doing so, Victorville hired 59 fire service employees, incuding command staff, EMS staff, captains, engineers and firefighter/paramedics while contracting out fire prevention services . It purchased five command vehi cles, two paramedic squad units and two Type -1 structural engines. The fire department also, very recently, purchased a brand new Type 3 brush engine. The new Type 3 brush engine is expected to go into service before the end of the 19 -20 fiscal year. It also successfully entered into a contract for dispatch services from CONFIRE. With its dispatch contract, Victorville Fire then began using Emergency Medical Dispatch (EMD) and Medical Pr iority Dispatching System (MPDS).

Through the use of EMD and MPDS, th e number of medical calls responded to by Victorville Fire have been reduced and the engine availabiltiy for fire supression incidents has increased. Altogether, EMD and MPDS utilization is allowing for a decrease in the use of apparatus by approximately 11%.

Public Safety Plan Page 19

TABLE: B1 STAFFING LEVELS

*Starting FY09 went to County Fire contract

Table B1 above shows the staffing trend since 2008 and reflects a downward trend of staffing levels.

Table B1 also shows that when compared to the period for which San Bernardino County Fire Department operated in Victorville, the Victorville Fire Department is operating 4 stations with less staff.

TABLE: B2 FIRE SERVICE COSTS

Table B2 illustrates the upward trend in total expenditures leading up to 2018. This figure specifically excludes analysis of 2019 due to start up costs required to transition the fire department. The 17/18 fiscal $-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009*
2010
2011
2012
2013
2014
2015
2016
2017
2018
Actuals
Actuals11.95 M

4.30M

14.265M

13.06M
-
10 20
30 40
50 60
70 80
Non-Sworn
Sworn
64 61
71 66
68 65
72 67
63 63
54 55
59 Public Safety Plan Page 20

year was the last full year Victorville fire s ervice was provided by San Bernardino County Fire Department and cost $ 14.26 million. The estimated cost for operations alone, of t he 19/20 San Bernardino County F ire Department contract was $14.34 million. For comparison purposes, the first full year of operation for Victorville Fire Department is $13.91 million and includes $909,000 in capital.

Although Victorville Fire Department is operating at a reduced cost when compare d to San Bernardino County Fire Department, the Victorville Fire Department, after its first full year of operation , has identified numerous deficiencies in its current level of service that may hinder its ability to properly and safely manage the complexity of incidents it may be required to respond to.

FIRE MANAGEMENT
The Victorville Fire Department desires to be an “All Risk” fire department and must be prepared to respond to not only fires and medical calls, but must also be trained and properly equipped to handle a variety of incidents including; hazardous material incidents, swift water, urban search and rescue (USAR), trench rescue, vehicle extrication and aircraft incidents. Victorville is the second busiest fire department in San Bernardino County with approximately 22,000 emergency responses each year. The variety and complexity of the target hazards within the City require resources and training that most agencies won’t encounter. All emergency operations are managed utilizing the Incident Command System which is based on the National Incident Management System (NIMS).

The city is broken in to 7 fire management zones , illustrated in Table B3, below. Each zone has its own unique set of challenges in providing safe and efficient emergency response. Those challenges include a need for facility related improvements, apparatus upgrades, personnel additions and tooling/equipment necessary to perform the job.

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TABLE B3, FIRE MANAGEMENT ZONE MAP

Public Safety Plan Page 22

FIRE MANAGEMENT ZONE 311
Fire Station 311 is located in the Northeastern part of the city. This station is staffed each shift with (9) personnel consisting of a Battalion Chief, (2) Captains, (2) Engineers, and (4) Firefighter Paramedics.

Frontline staffed apparatus includes (1) Type 1 Structure Engine, (1) Ladder Truck, (1) Brush Engine and (1) Medic Squad.

Within this management zone, crews provide the following services: structural and wild land firefighting, USAR response, HazMat response and EMS. Personnel may be required to respond out of their primary zone to assist with any aircraft incident that may o ccur at Southern California Logistics Airport (SCLA).

Each emergency service delivery program has a level of risk for this zone as outlined below.

TABLE B4 - FMZ 311 RISK ASSESSMENT OUTLINE

TYPE OF INCIDENT FREQUENCY RISK
Structural High High
Wildland High High
USAR Low High
HazMat Low High
Aircraft Rescue Firefighting (ARFF) Low Low
EMS High Low

Some target hazards within this management zone are:

1. Cemex Cement Plant

2. Interstate 15 & Air Expressway

3. River bottom wild land response

4. Railroad

FIRE MANAGEMENT ZONE 312
Fire Station 312 is located in the Northwestern part of the city. This station is st affed each shift with (3) personnel consisting of a (1) Captain, (1) Engineer, and 1 Firefighter Paramedic. Frontline staffed apparatus includes (1) Type 1 Structure Engine. (1) Brush Engine is assigned to the station and cross staffed when needed by the engine crew.

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Within this management zone, crews provide the following services: structural and wild land firefighting, USAR response, HazMat response, ARFF and EMS. Each emergency service delivery program has a level of risk for this zone as outlined below.

TABLE B5- FMZ 312 RISK ASSESSMENT OUTLINE

TYPE OF INCIDENT FREQUENCY RISK
Structural Medium High
Wildland Medium Medium
USAR Low High
HazMat Low Medium
Aircraft Rescue Firefighting (ARFF) Low Low
EMS High Low

Some noticeable target hazards within this management zone are:

1. SCLA /Keurig Dr Pepper Plant

2. US Route 395 & Interstate 15

3. Federal Penitentiary

4. Multiple Apartment complexes

FIRE MANAGEMENT ZONE 313
Fire Station 313 is located in the Southwestern part of the city. This station is staffed each shift with (3) personnel consisting of a (1) Captain, (1) Engineer, and (1) Firefighter Paramedic. Frontline staffed apparatus includes (1) Type 1 Structure Engine (1) Medic Squad (Unstaffed Reserve).

Within this management zone, crews provide the following services: structural and wild land firefighting, USAR response, Haz Mat response, ARFF and EMS. Personnel may be required to respond out of their primary zone to assist with any aircraft incide nt that may occur at Southern California Logistics Airport (SCLA). Each emergency service delivery program has a level of risk for this zone as outlined below.

Public Safety Plan Page 24

TABLE B6 - FMZ 313 RISK ASSESSMENT OUTLINE

TYPE OF INCIDENT FREQUENCY RISK
Structural Medium High
Wildland Medium Medium/Low
USAR Low Low
HazMat Low Medium
Aircraft Rescue Firefighting (ARFF) Low Low
EMS High Low

Some noticeable target hazards within this management zone are:

1. Hotel/Restaurant Row

2. US Route 395 & Interstate15

3. Mall of Victor Valley

4. Multiple Strip Malls and Shopping Centers

FIRE MANAGEMENT ZONE 314
Fire Station 314 is located in the Southeastern part of the city. This station is staffed each shift with (3) personnel consisting of a (1) Captain, (1) Engineer, and 1 Firefighter Paramedic. Frontline staffed apparatus includes (1) Type 1 Structure Engine . The station also has (1) unstaffed reserve ladder truck.

Within this management zone, crews provide the following services: structural and wildland firefighting, USAR response, HazMat response , ARFF and EMS. Personnel may be required to respond out of th eir primary zone to assist with any aircraft incident that may occur at Southern California Logistics Airport (SCLA). Each emergency service delivery program has a level of risk for this zone as outlined below.

TABLE B7 - FMZ 314 RISK ASSESSMENT OUTLINE

TYPE OF INCIDENT FREQUENCY RISK
Structural Low High
Wildland Low High
USAR Low High
HazMat Low High
Aircraft Rescue Firefighting (ARFF) Low Low
EMS High Low

Public Safety Plan Page 25

Some noticeable target hazards within this management zone are:

1. Goodyear Tire & Rubber Co./Mars Pet Food Plant/ Church & Dwight Production Plant

2. Interstate15 / Railroad

3. Multiple Strip Malls and Shopping Centers

FIRE MANAGEMENT ZONE 315
Fire Stat ion 315 is located in the most s outhwestern part of the city. This station is currently unstaffed and within this management zone, crews from surrounding stations provide the following services: structural and wild land firefighting, USAR response, HazMat response, ARFF and EMS.

This fire management zone is primarily residential; however , upon opening this station, personnel may be required to respond out of their primary zone to assist with calls in FMZ 316 that can be better responded to than Station 313 along with any aircraft incident that may occur at Southern California Logistics Airport (SCLA). Each emergency service delivery program has a level of risk for this zone as outlined below.

TABLE B8 - FMZ 315 RISK ASSESSMENT OUTLINE

TYPE OF INCIDENT FREQUENCY RISK
Structural Medium High
Wildland Medium Medium/Low
USAR Low Low
HazMat Low Low
Aircraft Rescue Firefighting (ARFF) Low Low
EMS High Low

Some noticeable target hazards within this management zone are:

1. Hotel/Restaurant Row

2. US Route 395

3. Bear Valley Road

4. Multiple Strip Malls and Shopping Centers

Public Safety Plan Page 26

FIRE MANAGEMENT ZONE 319
Fire Stat ion 319 is located in the most n orthern part of the city at SCLA.

This station is owned by SCLAA and is currently staffed by a priva te contractor, Mission Aviation, providing ARFF services at SCLA . SCLA’s contracted service is for “on -airport” ARFF services. FS 312 is responsible for coverage in the areas located outside of the sterile area , considered “off- airport”.

TABLE B9 - FMZ 319 RISK ASSESSMENT OUTLINE

TYPE OF INCIDENT FREQUENCY RISK
Structural Medium High
Wildland Medium Medium/Low
USAR Low Low
HazMat Low Low
Aircraft Rescue Firefighting (ARFF) Low Low
EMS High Low

Some noticeable target hazards within this management zone are:

1. Airfield Tenants including Boeing & GE Aviation

2. Keurig Dr Pepper Plant

3. United Furniture Industries

4. Newell Rubbermaid

FIRE STATION FACILITY CONDITIONS
Fire station facilities need to meet the needs of the community; shall be ADA compliant and provide members of the Department with a safe, sanitary, and efficient working environment. As noted in transition reports that were prepared when Victorville react ivated its City run Fire Department, it was documented that fire station facilities were not properly maintained. It is for this reason that this report will identify what will feel like an inordinate amount of deficiencies and requiring attention in the departments early transition years.

FIRE STATION 311

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FS 311 is in need of significant repair and upgrades throughout the station including kitchen, dorms, restrooms, and office area and does not meet current ADA requirements. The following summarizes noted station requirement:
▪ There is no security gate or fencing for the parking area and hose tower, therefore theft and intrusion into the fire station property cannot be prevented. The area has a significant homeless population which are frequently found wa ndering the fire station parking lot, washing clothes in the station laundry, and wandering inside the fire station. ▪ The lack of security around the 4 -story hose tower allows access by civilians. This access creates a liability for the City if someone decided to go into the tower and get hurt or jump off it. ▪ Lockers for uniforms and personal items do not allow for adequate storage of bedding, clothes, or personal items. Uniforms used during the shift are often hung on walls or laid on floors exposing members to harmful contaminates.
▪ The apparatus bay lacks the capacity to house all apparatus assigned inside which leaves expensive apparatus parked outside leaving them exposed to the elements and vulnerable to theft and vandalism.
▪ There is a significant lack of storage for Personal Protective Equipment (PPE) and tools, hose, and power equipment available.

FIRE STATION 312
FS 312 is generally in good condition and in need of moderate repair and upgrades throughout the station including kitchen, dorms, restrooms, and office area does not meet current ADA requirements. The following summarizes noted station requirement:
▪ There is no security gate or fencing for the parking area, therefore theft and intrusion into the fire station property cannot be prevented.
▪ Lockers for uniforms and personal items do not allow for adequate storage of bedding, clothes, or personal items. Uniforms used during the shift are often hung on walls or laid on floors exposing members to harmful contaminates.
▪ There is a significant lack of storage for Personal Protective Equipment (PPE) and tools, hose, and power equipment available.

FIRE STATION 313
FS 313 is in need of significant repair and upgrades throughout the station including kitchen, dorms, restrooms, and office area and does not meet current ADA requirements. The following summarizes noted station requirement:

Public Safety Plan Page 28

▪ The kitchen and dining ar ea size is inadequate and the station does not have the capacity to properly staff and provide sleeping and sanitary needs for more than (3) firefighters. This station may be required to staff Medic Squad 313 with (2) additional firefighters for a total of (5). ▪ There is no security gate or fencing for the parking area, therefore theft and intrusion into the fire station property cannot be prevented. The area has a park behind the station in which enables the community to walk through the station parking lot and access the fire station. ▪ Lockers for uniforms and personal items do not allow for adequate storage of bedding, clothes, or personal items. Uniforms used during the shift are often hung on walls or laid on floors exposing members to harmful contaminates.
▪ The apparatus bay lacks the capacity to house reserve apparatus inside which leaves expensive apparatus parked outside leaving them exposed to the elements and vulnerable to theft and vandalism.
▪ There is a significant lack of storage for Personal Prote ctive Equipment (PPE) and tools, hose, and power equipment available.
▪ The station does not have a hose tower to hang hose to dry. This should be addressed as soon as possible to ensure that fire hose is properly cared for and stored.

FIRE STATION 314
FS 314 is in fair condition and in need of minor repairs and upgrades throughout the station including kitchen, dorms, restrooms, and office area and does not meet current ADA requirements. The following summarizes noted station requirement:
▪ There is a security gate, however, it is not electric which causes the fire engine to either back into quarters or manually open and close the gate after every response. ▪ There is a significant lack of storage for Personal Protec tive Equipment (PPE) and tools, hose, and power equipment available.
▪ The station does not have a hose tower to hang hose to dry. This should be addressed as soon as possible to ensure that fire hose is properly cared for and stored.

FIRE STATION 315
FS 3 15 is unstaffed and in good condition requiring only general upgrades or repairs. The following summarizes noted station requirement:
▪ There is a security gate , however, it is not electric which would cause the fire engine to either back into quarters or manually open and close the gate after every response.

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▪ There is a significant lack of storage for Personal Protective Equipment (PPE) and tools, hose, and power equipment available.

FIRE STATION 319
FS319 is located at SCLA and is good condition.

APPARATUS
Victorville owns its fire apparatus and chose to make upgrades to its apparatus fleet as a part of the transition from county fire service to city service. Most notably, Victorville purchased two new paramedic squad units, two medic engines and new command staff vehicles. Victorville also authorized the purchase of a Type 3 brush engine to replace one of the two Type 3 brush engines currently in service.

The new Type 3 brush engine is expected to be placed into service prior to June 30, 2020. Table B10 below summarizes apparatus by station assignment and its role, as a front line responder, a reserve unit or a unit that has been considered surplus and not needed. Each apparatus requires routi ne maintenance and upgrade and shal l be included in a repair and replacement program . Exhibit B3 provides a visual reference on the different types of apparatus and an explanation as to what purpose each apparatus serves.

TABLE B10 - FIRE APPARATUS BY STATION
Public Safety Plan Page 30

LOCATION UNIT NAME DESCRIPTION YEAR TYPE STATUS
STA 311 BE311 BRUSH ENGINE 1995 3 Front line
STA 311 MT311 TRUCK, 75' 2006 Ladder Front line
STA 311 ME311 PUMPER 2014 1 Front line
STA 311 E310 PUMPER 2002 1 Reserve
STA 311 E315 PUMPER 2002 1 Reserve
STA 311 MS311 PARAMEDIC SQUAD UNIT 2018 SQD Front line
STA 311 4315 FORD EXPLORER, 2018 2018 CMD Front line
STA 311 4311 FORD EXPLORER, 2018 2018 CMD Front line
STA 311 4301 FORD EXPLORER, 2018 2018 CMD Front line
STA 311 4310 FORD EXPLORER, 2018 2018 CMD Front line
STA 311 4300 FORD EXPLORER, 2018 2018 CMD Front line
STA 311 None ENGINE 1988 1 Surplus
STA 312 ME312 PUMPER 2019 1 Front line
STA 312 BE312 BRUSH ENGINE 1996 3 Front line
STA TBD ME312 PUMPER 2006 1 Reserve
STA 313 ME313 PUMPER 2019 1 Front line
STA 313 MS313 PARAMEDIC SQUAD UNIT 2018 SQD Reserve
STA TBD ME313 PUMPER 2006 1 Reserve
STA 314 ME314 PUMPER 2004 1 Front line
STA 314 T314 TRUCK, 100' 2001 Ladder Reserve
STA 314 None PUMPER 2001 1 Surplus
STA 315 None PUMPER 2001 1 Surplus
STA 315 None PUMPER 1990 1 Surplus
STA 315 None PUMPER 1994 1 Surplus

APPARATUS- NOTICED CONDITIONS
Brush Engine 311 (1995) is unreliable and does not meet the NFPA safety requirement and should be replaced before brush season in June 2020. On numerous incidents , the engine failed to start or had pump failure.

Medic Truck 311 is less than ideal from a design perspective when considering response to Victorville’s type of structure fires. Considering its increased mileage operating principally out of Victorville’s busiest station, the department should consider d eveloping a specification for a new truck in the next few mon ths with a projected purchase / delivery approximately 2 years later. MT 311 could serve as a reserve unit upon its replacement.

Medic Engine 311 (201 4) was purchased on a grant during the County contract. This engine has some damage causing it to track slightly sideways while driving and increasing tire wear. There are some signs that it was possibly drug sideways, possibly out of a ditch, causing possible frame damage.

It is likely that we will not receive the full life cycle from this engine and should establish a plan to move it into reserve in the next 5-8 years.

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Brush Engine 312 (1996 ) is unreliable and does not meet the NFPA safety requirement and should be replaced before brush season in June 2020. On numerous incidents the engine failed to start o r had pump failure.

Reserve Engine 312 (2006) was placed into service when the new KME was placed in service. This engine, with normal maintenance and repairs should be a reliable reserve.

Reserve Engine 313 (2006) was placed into reserve when the new KME was placed in service. This engine will be a reliable reserve needing general maintenance and repairs. Shortly after the transition, it had a new motor put in.

Medic Engine 314 (2004) has been reliable after receiving significant mechanical repairs after transition.

The department should follow the replacement plan for this engine.

FIRE RESPONSE
Victorville firefighters respond to a variety of different incidents including structural fire operations, wild land firefighting operations, Urban Search and Rescue (USAR) operations, hazardous materials (HazMat) incidents, Aircraft Rescue Fire Fighting (ARFF), fire prevention services and emergency medical services (EMS). All emergency operations are managed utilizing the Incident Command System which is based on the National Incident Managemen t System. Accordingly, firefighters require recurring training for such events along with incident appropriate equipment and tooling, apparatus and appropriate station location to maintain an appropriate response time to emergency incidents. Call volume for fire department services can influence the ability of a department to maintain an appropriate response time. Table B11 summarizes call volume in Victorville dating back to year 2000. Like its population, call volume has increased; however, given the pace at which call volume has grown, dramatically (216% increase) out paces population growth (92%).

TABLE B11 VICTORVILLE FIRE SERVICES CALL VOLUME
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YEAR POPULATION
*
ANNUAL

INCIDENTS
**

STAFFED

STATIONS
(Excl. 319)
FIRE
CALLS

MEDICAL
CALLS
OTHER
CALLS
2000 64,455 7,237 3 319 5,873 1,045
2011 117,219 15,424 4 635 12,671 2,118
2012 119,059 16,509 4 655 13,936 1,918
2013 120,368 17,522 4 637 14,827 2,058
2014 120,590 18,712 4 585 16,046 2,081
2015 121,168 20,776 4 715 18,000 2,061
2016 123,510 21,367 4 772 18,593 2,002
2017 123,565 22,846 4 867 20,109 1,870
2018 123,701 22,283 4 881 19,369 2,033
2019 126,543 22,973 4 967 19,715 2,291
* Editing population numbers will recalculate Calls per 1000 ** Annual incidents are based on Computer Aided Dispatch system incidents where a fire unit was assigned and dispatched. This eliminates duplicate incidents.

National Fire Protection Association (NFPA) 1710 “Standard for the Organization and Deployment of Fire Suppression Operations, Emergency Medical Operations, and Special Operations to the Public by Career Fire Departments” provides a standard for initial unit travel time within 240 seconds (4 minutes).

The current national standard for fire department coverage contained within NFPA 1710 also provides a standard for an initial response as well as Effective Response Force (ERF) measures. NFPA standards are intended to help fire departments provide safe and ef fective working conditions for both firefighters and members of the public. ERF categories include the following:

TABLE B12- ERF CATEGORIES
Low Hazard Medium Hazard High Hazard
One or two-family
dwellings, scattered
small (under 10,000
sq. ft.) businesses,
and industrial units.

Apartments, offices,
mercantile, and
industrial occupancies.

Schools, hospitals, extended
care facilities, high-rise, and
other high life hazard or
large fire potential
occupancies.

ERF - 15 ERF- 27 ERF - 42

Table B12 provides the minimum level of fire suppression personnel for structural fire operations to meet ERF based upon hazard levels. Mitigation factors such as fixed fire protection systems, sprinklers, and alarms may reduce risk. For illustration purposes, NFPA 1710 advises that to manage a 2,000 square foot 2-story house fire, the following tasks/resources should be provided:

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Incident Commander BC (1 FF) or (1) Engine (3) FF
Fire Attack (Initial) (1) Engine (3) FF
Fire Attack (Back Up) (1) Engine (3) FF
RIC (Rapid Intervention Crew) (1) Engine (3) FF (FF Rescue only) Search (1) Engine (3) FF
Vent/Roof (1) Truck (3) FF

This is the minimum and doesn’t address medical, power shut off, or other issues such as relief firefighters since a typical fire fighting crew can remain inside a structure for about 20 minutes before they are exhausted or running out of air.

TABLE B13- 2019 INCIDENT MAP
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Table B13 above highlights the 22,000 fire call responses throughout the Victorville community in 2019.

Exhibits B1 and B2 further illus trate where throughout the city, it can achieve a 240 -second response time, when considering factors such as the station location of the response appropriate apparatus.

Combined, coverage gaps e xist within the city boundaries and data shows that the greatest strain on existing fire response resources is being caused by FMZ 315. Station 315 is located in FMZ 315 and is not staffed or equipped for fire emergency response. FMZ 315 is being responded to principally by Station 313 and it is not uncommon for Station 312 to respond to FMZ 315. Call volume experienced in FMZ 315 for the period of March 30, 2019 to December 31, 2019, alone, yielded 612 incidents.

Public Safety Plan Page 35

Department data suggests that on an annuali zed basis, FMZ 315 could require anywhere from 800 to 1,100 calls, 90% of which are most likely to respond from Station 313 and 10% from Station 312. When these units get pulled out of their fire management zone, other Victorville stations or allied automa tic aide stations would be required or requested, respectively, to backfill the u noccupied fire management zone.

Since Victorville is experiencing more than 80% of its calls for medic related purposes, Victorville may want to consider activating Medic Squ ad 313, currently in reserve status, to improve its response to FMZ 315 until such a time that Station 315 can be open ed. Doing so would activate two medic response units from FMZ 313 until such a time that Station 315 can be activated.

FIRE DEPARTMENT RECOMMENDATION
Providing fire suppression and emergency service coverage to the City of Victorville in compliance with national standards and industry best practices will require an ongoing investment in personnel, operations, apparatus and facilities, both current ly and into the future. Recommended investment is necessary to maintain current resources and provide service expansion in areas currently not being served to standard coverage levels. This recommendation provides a phased approach over the course of the next 5 years, with a future outlook, toward years 6 through 20. Initial years are more definitive with increased ambiguity in years 6 -20 based on unknown city growth pattern s in the western edge. Notwithstanding these recommendation s, the City must consider preparing and adopting a Fire Service Master Plan to better support anything past year 3.

YEAR 1 – FY 20/21

PERSONNEL: Medic Squad 313, currently in reserve status, should be staffed at Station 313 with overtime (12 hr shifts 080 0-2000) for t his fiscal year. Once the department is fully staffed, it will put minimal strain on the workforce and provide the level of care that is consistent with our community needs. It will also place a quicker and more agile unit in FMZ 313 and offer flexibility in having it respond to FMZ 31 5 while being able to maintain medic presence in FMZ 313 with its fully staffed medic engine (313) .

Staffing MS 313 with overtime should be considered as a short term measure until a full staffed station can be opened in FMZ 315. The total cost for staffing the squad using overtime is $313,000 annually.

OPERATIONS: The department doesn’t currently have the tools or equipment to effectively, efficiently or safely respond to Urban Search and Rescue (USAR) and hazardous materials incidents. To establish a Type 2 USAR and a Level 2 HazMat response force , t he complete cost for a Type 2 USAR trailer is Public Safety Plan Page 36

$110,000 and the cost to bring the department within standards to respond to HazMat incidents is an additional $100,000. An additional $500,000 in tools and equipment is needed that would serve wildland firefighting, structural firefighting, aircraft firefighting and emergency medical response programs.

APPARATUS: Current projections identify that the department should staff a medic squad at FS 313.

Additionally, both Type 3 apparatus currently owned in the city are mid 90’s models that are easily 5 -10 years past their life expectancies. The first of the two brush engines requiring replacement is authorized for purchase and is expected to be put into service in fi scal year 19/20. The remaining Type 3 brush engine should be purchased at an estimated $343,000. Consider p urchasing a used replacement ladder truck and begin specifications for brand new purchase in later years, which is estimated at $500,000.

FACILITIES: FS 313 requires significant station modifications to support the existing staff, specifically bathroom and bedroom upgrades. This remodel should take into account the long term viability of FS 313 and the expanding community needs, as well as health a nd safety code mandates. Cost estimate is approximately $150,000.

Personnel $313,000
Facilities $150,000
Used Replacement LadderTruck $500,000
Department Equipment $710,000
Type 3 Brush Engine $343,000
Total $2,016,000
20/21 - YEAR 1 SUMMARY

YEAR 2 – FY 21/22 (1ST FULL YEAR OF OPERATIONS)

PERSONNEL: Open Station 315 and stand -up a three (3) person full -time crew. This crew will cross-staff a Type 3 apparatus or a Type 6 apparatus for a response to vegetation fires. Staffing would be a 24/7/365 model. This model will provide a level of equitable service coverage to the southwest corner of the city that is currently experienci ng residential and commercial growth. Operating costs would include nine additional full-time employees at the cost of $1,140,000 annually. The medic squad staffed with overtime would return to reserve status at Station 313 until call volume requires for a dedicated full -time reactivation.

Public Safety Plan Page 37

APPARATUS: Place a Type 1 engine with Advanced Life Support (ALS) capabilities in Station 315 .

Crews would also cross -staff the newly purchased and relocated Type 3 brush engine for an improved tactical response to vegetation fires. Capital purchase of a Type 1 engine is estimated at $700,000.

FACILITIES: Upgrade the departments training infrastructure and an additional $20,000 in facility improvements at Station 315 for 24-hour use will be required. Department infrastructure upgrades include the training tower at FS 311 . The FS 311 training tower has multiple issues and cannot be used for live fire training e xercises. This is a NFPA annual requirement that will help the department keep in compliance with industry best practices and allow firefighters to stay proficient in core firefighting responsibilities. Additionally, placing a Mobile Aircraft Firefighting Trainer (MAFT) at FS 319 is recommended. Placing this trainer at FS 319 will foster better training relationships with the SCLA Fire Department while filling a critical gap in our proficiency to mitigate these types of incidents. The estimate for both the training tower upgrade and MAFT is approximately $250,000.

Personnel - 9 (Station 315) $1,140,000
Facility/Maintenance $270,000
Capital (Type 1 Engine) $700,000 ME 315
Total $2,110,000
21/22 - YEAR 2 SUMMARY

YEAR 3 – FY 22/23

OPERATIONS: Purchase a Type 6 engine to be cross staffed at Station 313 offering flexibility to respond to smaller vegetation fires as opposed to responding with a much larger medic engine. A Type 6 could be used as a cross staffed unit to MS 313 in the event the department chooses to fully staff MS 313. Doing so could help reduce wear and tear and serve as a reserve squad in such an event.

Type 6 Engine $195,000
Total $195,000
22/23 - YEAR 3 SUMMARY

YEAR 4 & 5 – FY 23/24 AND 24/25

Public Safety Plan Page 38

PERSONNEL: Place a Type 1 apparatus with ALS capabilities and a three-person ( 3) person full -time crew at Station 319. Staffing a tiller or ladder type truck, at a to be determined station, on the west side of the city would provide timely response for non -sterile emergency services needs. Staffing would be a 24/7/365 model. Operating costs would include eighteen (18) additional personnel at the cost of $2,280,000. Mission Aviation, or simil ar contractor, would continue to provide ARFF services. The increased staffing would ensure that the airport remains at an optimum level of service according to the index at SCLA and Title 14 Code of Federal Regulations Part 139. Station 319 is currently s taffed with 7- 8 personnel from Mission Aviation and Mercy Air.

OPERATIONS: The Type 1 will be capable of delivering ALS and initial suppression services in the north section of the COV until commercial growth in the area requires an additional tiller or ladder type truck.

Additionally, this crew would also cross -staff a 1,500 - 2,000-gallon water tender. Water tenders are designed to provide support for vegetation and wildland fires as well as additional water capability based on limited water capability in the sterile area of SCLA. The Type 1 apparatus would also help in ensuring the first arriving ARFF vehicle is constantly supplied with water to ensure a coordinated rescue effort is possible.

APPARATUS: Purchase a Type 1 engine and a 1,500 – 2,000 gallon water tender at FS 319 and to place a tiller or ladder truck on the west side of Interstate 15 at FS 313, 315 or 319. These recommendations will significantly reduce response times within these fire management zones and provide muc h needed emergency services in a timely manner and fill critical response gaps. Expected maintenance cost for all apparatus would be approximately $15,000. Projected cost for all apparatus is $2 .2 Million dollars. ($1.2M tiller/ladder, $700K Type 1, $320K Water Tender)

FACILITIES: N/A

Personnel - 9 $1,140,000
Maintenance $15,000
Tiller/Ladder $1,200,000
Total $2,355,000
23/24 - YEAR 4 SUMMARY - TILLER/LADDER
WEST SIDE OF CITY - STATION 319

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Personnel - 9 $1,140,000
Maintenance $15,000
Type 1 & Water Tender $1,020,000
Total $2,175,000
24/25 - YEAR 5 SUMMARY - TYPE 1 &
WATER TENDER - STATION 319

YEAR 6 AND BEYOND – FY 25/26+

FY 25/26 and beyond – the area west of 395, referred to as FMZ 316, will require dedicated apparatus and staffing as development continues. Based on the Victorville 20-year General Plan, this area could have a population of 80,000 -100,000 residents as well as extensive commercial development. Given geographic distances, to the other Fire Management Zones, this would require coverage of a Type 1 engine, ladder truck, medic squad, and Battalion Chief for a total of 25 additional staff. Covera ge can be phased in based on pace of development. The City should plan for FMZ capital costs to be paid from development impact fees so as to soften the impact to the City’s general fund.

The phased approach presented is intended to reflect providing fir e and emergency services to residents within national and best practice standards.

The costs below, in Table B14, summarize the investment believed necessary to provide a more effective local fire service.

TABLE B14 – FIRE DEPARTMENT SUMMARY OF PROPOSED COSTS

20/21 21/22 22/23 23/24 24/25
Personnel $313,000 $1,140,000 $1,140,000 $1,140,000
Facility / Maintenance $150,000 $270,000 $15,000 $15,000 Capital $1,553,000 $700,000 $195,000 $1,200,000 $1,020,000 Total $2,016,000 $2,110,000 $195,000 $2,355,000 $2,175,000

Public Safety Plan Page 40

CODE COMPLIANCE & ENFORCEMENT DIVISION
Through support from residents and partnerships with key public agencies, the Code Compliance & Enforcement Division helps ensure residential and business communities are well -maintained and operate within the framework of the Victorville municipal code. The Division seeks to f irst gain voluntary compliance and then turns secondly, to enforcement efforts as a l ast resort. This report provides operational information, historical , current statistics and an outlook on further improving and growing these services.

CODE COMPLIANCE CASES

Cases are used to document a public complaint, a proactive compliance action i nitiated by an Officer or any other regulatory compliance action (business license, waste tire compliance, demolitions) that may result in the assessment of a penalty or abatement of a public nuisance.

TABLE C1 – HOW TO CREATE A CODE ENFORCEMENT COMPLAINT

Through the completion of inspections, Officers can generally attend to 17 cases per work day. Cases are identified by year and follow a sequential numbering system. Code Compliance case types include, but are not limited to:

• Residential property maintenance (trash,
junk cars and landscape issues)
• Commercial property maintenance (trash,
site maintenance, approved land -uses and
licensing, signs and secure vacant units)
• Illegal dumping
• Street vendors
• Reactive weed abatement
• Homeless encampments
• Yard sales and signs
• Abatement of severely dilapidated or
damaged structures
• Illegal marijuana cultivation
• Noise complaints
• Limited parking enforcement efforts to
support Police
Code Compliance
Case
Regulatory
Compliance
Action
Proactive
Compliance
Action
Public
Complaint
Public Safety Plan Page 41

• Fireworks
• Landlord/Tenant property complaints
• Waste tire disposal compliance
• Water conservation
• Unsecured and substandard structures

CASE STATISTICS:

Table C2 below summarizes the number of cases created each year over the past 20 years. A Code Compliance case is created by Code Compliance support staff after receiving a public complaint or action initiated by a Code Enforcement Officer for violation(s) that a re reported at a specific location. Cases generate inspections that are completed by Code Enforcement Officers.

TABLE C2 – CASE STATISTICS
YEAR
CODE

COMPLIANCE
CASES

BUSINESS

LICENSE /
RENTAL

BUSINESS

LICENSE
CASES
FATS,
OILS,

GREASES
(FOGS)
CASES
TIRE
(GRANT)
CASES

PARKING

CITATIONS
ISSUED

TOTAL CASES

HANDLED BY
CODE

COMPLIANCE
1999
2000
2001 1482 126 1608
2002 1588 128 1716
2003 1264 154 1418
2004 2400 207 2607
2005 4216 263 4479
2006 2816 271 215 3302
2007 3155 299 215 3669
2008 3004 313 162 313 3792
2009 2673 323 190 101 3287
2010 2593 330 174 29 3126
2011 2889 336 121 85 3431
2012 2734 342 114 56 3246
2013 2437 356 120 54 2967
2014 2852 373 118 88 3431
2015 3344 961 385 128 180 4998
2016 3166 2680 401 187 136 6570
2017 3493 2861 84 104 141 6599
2018 2474 2172 278 104 248 4998
2019 3127 2124 362 117 172 5902

A contributing factor to the downward trend in total cases handled by Code Compliance officers is due to the time and human resources required to attend to special priority activities such as illegal dumping clean-up, illegal marijuana residential grows and illegal firework enforcement. Enforcement against these types of illegal operations has become new priorities over the last 24-months.

Public Safety Plan

Page 42 ends

Victorville City CouncilJanuary 20, 2026

Victorville City Council
January 20, 2026