On the agenda: California City CITY COUNCIL MEETING - Dec 09, 2025 — data center (Dec 9)
Past ⚠ Agenda Watch California City, California · Tuesday, December 9, 2025 — 9 months ago
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CITY OF CALIFORNIA CITY
Marquette Hawkins
MAYOR
DECEMBER 9,2025
Jim Creighton
MAYOR PRO TEM
Della Clark
Ronald Smith
COUNCIL MEMBERS
Christopher Lopez
CITY MANAGER
AGENDA
CITY COUNCIL/ HOUSING AUTHORITY/ SUCCESSOR AGENCY
REGULAR MEETING TUESDAY DECEMBER 9, 2025 @ 5:00 PM
COUNCIL CHAMBERS & VIA ZOOM
21000 HACIENDA BLVD., CALIFORNIA CITY, CA 93505
If you need special assistance to participate in this meeting, contact the City Clerk at
(760) 373-7140 or via email at [email protected]. We request a 24-hour
notification prior to the meeting in order for the City to make reasonable arrangements
to ensure accessibility. (28 CFR 35.102-35.104 American Disabilities Act Title II)
Zoom instructions and notes:
Web Link: https://us06web.zoom.us/j/82006683246
Meeting ID: 820 0668 3246
1. Public can dial into the Zoom line:
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2. Comments
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f. Re-mute when your time to speak has ended
CITY OF CALIFORNIA CITY
DECEMBER 9,2025
Public is urged to listen to the meeting in a quiet place, to avoid background noise. We also
request public to MUTE your audio device when not commenting to avoid disruption during
meeting.
**Please take this time to turn off your cell phones **
CLOSED SESSION 2:00PM
CALL TO ORDER
ROLL CALL
Councilmembers: Clark, Smith, Mayor Pro Tem Creighton, Mayor Hawkins
ADOPT THE AGENDA
PUBLIC COMMENT
Members of the public are welcome to address the City Council ONLY on those items listed on the Closed
Session agenda. Each member of the public will be given (3) three minutes to speak
CLOSED SESSION
CS 1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION (Government Code Section
54956.9(d)(1)) two cases: Lamberth v. California City (Case no. 25CUB00029)
Vincent v. California City (Case No. BCV-25-102867)
CS 2.
Conference with Labor Negotiators (Government Code Section 54957.6):
Employee Organization: Fire Unions
CS 3.
PUBLIC EMPLOYMENT- (Government Code Section 54957)
Title: City Manager
CS 4.
PUBLIC EMPLOYMENT- (Government Code Section 54957)
Title: City Clerk
CS 5.
CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Section 54956.9(d)(2): five cases.
REPORT OUT OF CLOSED SESSION
CITY COUNCIL CONVENES TO REGULAR MEETING
REGULAR MEETING 5:00PM
CALL TO ORDER
PLEDGE OF ALLEGIANCE / INVOCATION
CITY OF CALIFORNIA CITY
DECEMBER 9,2025
ROLL CALL –
Councilmembers: Clark, Smith, Mayor Pro Tem Creighton, Mayor Hawkins
DEPARTMENT REPORTS
PD / AC
Treasurer
Housing
Park
OHV
CITY CLERK REPORTS/RECEIVED COMMUNICATIONS
JM POWERS:
- NOVEMBER 28, 2025- The City’s 10-Year Street O&M and Capital Improvement Project Funding
- NOVEMBER 29, 2025- 10-Year Weakness in Street Operations & Maintenance Despite Substantial Funding
- NOVEMBER 30, 2025- City’s 10-Year Anemic Funding of Street Capital Improvement Projects 94
CIVIC/COMMUNITY/ORGANIZATION ANNOUNCEMENTS
PRESENTATIONS
- City Cash and Fund Analysis as of 6/30/2025 Provided by: Josh Giosa, Price Paige and Associates
- Mayor Saul Ayon McFarland CA
PUBLIC BUSINESS FROM THE FLOOR / PUBLIC COMMENT
This portion of the meeting is reserved for the public to address the City Council on any matter NOT on this agenda
and over which the City Council has jurisdiction. Please state your name for the record and limit your comments to
(3) three minutes. The City Council will receive the comments but cannot engage in back-and- forth discussion with
the public or make any decision. The City Council can direct staff to bring the item back to a future agenda for
discussion.
CONSENT CALENDAR
WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES
Consideration to waive full-text reading of all Resolutions and Ordinances by single motion made at the start of
each meeting, subject to the ability of the City Council / Agency to read the full text of selected resolutions and
ordinances when the item is addressed by subsequent motion. All items on the consent calendar are considered
routine, and non-controversial and will be approved by (1) one motion if no member of the council, staff, or public
wishes to comment or ask questions. Public comments are to be limited to (3) three minutes. Roll call vote required.
CC 1.
Approve City Check Register dated 11/8/25- 12/4/25
CONTINUED BUSINESS
CB 1.
Staff Report: Christopher Lopez, City Manager
Subject: A Resolution of the Mayor and City Council of California City Authorizing an
Agreement Between the City of California City and the County of Kern for Fire Protection
Duties and Enforcement of State Fire Marshal Regulations
Recommendation: Staff recommends the City Council adopt Resolution No. 25-3188
NEW BUSINESS
NB 1.
Staff Report: Christopher Lopez, City Manager-Shannon Hayes, Acting Public Safety Director
Subject: A Resolution of the City Council of The City of California City, California, Authorizing the
City Manager to Enter into an Agreement with Nichols Consulting for a Fixed Fee for Three (3) Years
Not to Exceed $8,000 for the Period Ending June 30, 2027
Recommendation: Staff recommends the City Council adopt Resolution No. 25-3189
NB 2.
Subject: Letter of Intent-Echols Group
CITY OF CALIFORNIA CITY
Recommendation: City Council Discuss and provide direction
DECEMBER 9,2025
COUNCILMEMBER COMMENTS, AGENDA REQUESTS, AND AB1234 REPORTS
This portion of the meeting is reserved for council members to present information, announcements, and items that
have come to their attention. The Brown Act precludes Council, staff, or public discussion. Short staff responses are
appropriate. The Council will take no formal action. A Council member may request the City Clerk to calendar an
item for consideration at a future meeting or refer an item to staff.
ADJOURNMENT
AFFIDAVIT OF POSTING- December 5, 2025
I, Leanndrea Weible, Acting City Clerk for the City of California City, California, DO HEREBY CERTIFY that the
foregoing notice was posted on all official City bulletin boards and the City’s website at least 72 hours prior to the
meeting in compliance with the provisions of the Brown Act.
DR- PD
COUNCIL AGENDA ITEM
December 9, 2025
TO:
Honorable Mayor and City Council
FROM:
Christopher Lopez, City Manager
Shannon Hayes, Acting Director of Public Safety
SUBJECT:
PD MONTHLY DEPARTMENT REPORT
October 2025 Stats
TOTAL PART 1 CRIMES
October Part 1 Crimes - as of 11/17/2025
70
60
50
40
30
20
10
0
63
25
18
18
2021
2022
2023
2024
2025
Total Violent and Property Crimes Reported 2021 - 2025
1
0
0
0
2021 2022 2023 2024 2025
TOTAL PROPERTY
CRIMES - OCTOBER
TOTAL VIOLENT
CRIMES - OCTOBER
MURDER - OCTOBER
0
32
10
2021
14
12
7
2022
51
2023
2024
6
14
2025
2021
2022
18
17
12
2023
2024
2025
SEPTEMBER 2025 vs. OCTOBER 2025, DOWN BY 5.26%
Part 1 Crimes September 2025 – 19
Part 1 Crimes October 2025 – 18
1
DR- PD
OCTOBER 2025 PART 1
CRIMES BY AREA
SEPTEMBER 2025 PART 1
CRIMES BY AREA
6
0
0
1
6
5
2
3
4
2
0
0
0
1
3
1
3
0
OCTOBER 2025 – PATROL STATISTICS
Total Incidents (October): 1,235
Total Incidents (2025): 14,256
Total Arrests (October): 13
Misd. Arrests: 6
Total Arrests (2025): 234
Misd. Arrests: 107
Calls for Service (October): 1,031
Felony Arrests: 7
Felony Arrests: 127
Calls for Service (2025): 11,178
Citations Issued (October): 8 Citations Issued (2025): 201
2
DR- PD
COUNCIL AGENDA ITEM
December 9, 2025
TO:
Honorable Mayor and City Council
FROM:
Christopher Lopez, City Manager
Shannon Hayes, Acting Director of Public Safety
SUBJECT:
PD MONTHLY DEPARTMENT REPORT
November 2025 Stats
TOTAL PART 1 CRIMES
November Part 1 Crimes - as of 12/02/2025
50
41
40
27
30
20
10
0
21
22
22
2021
2022
2023
2024
2025
Total Violent and Property Crimes Reported 2021 - 2025
TOTAL VIOLENT
CRIMES - NOVEMBER
MURDER NOVEMBER
TOTAL PROPERTY
CRIMES - NOVEMBER
28
0
0
0
0
0
2021 2022 2023 2024 2025
6
13
9
8
7
16
2021
2022
2023
2024
2025
2021
18
2022
2023
14
14
2024
2025
OCTOBER 2025 vs. NOVEMBER 2025, UP BY 16.67%
Part 1 Crimes October 2025 – 18
Part 1 Crimes November 2025 – 21
1
DR- PD
NOVEMBER 2025 PART 1
CRIMES BY AREA
OCTOBER 2025 PART 1
CRIMES BY AREA
6
6
4
0
0
1
1
3
3
0
0
0
1
3
6
3
2
0
NOVEMBER 2025 – PATROL STATISTICS
Total Incidents (November): 1,245
Total Arrests (November): 15
Misd. Arrests: 6
Total Incidents (2025): 15,501
Total Arrests (2025): 248
Misd. Arrests: 113
Calls for Service (November): 982
Citations Issued (November): 9
Felony Arrests: 9
Felony Arrests: 135
Calls for Service (2025): 12,160
Citations Issued (2025): 210
2
COUNCIL AGENDA ITEM
October 2025 Report
TO: Honorable Mayor and City Council
FROM: Keith Middleton, City Treasurer
SUBJECT: TREASURER MONTHLY DEPARTMENT REPORT
The values presented in this report are extracted from End of Month bank and investments statements.
The General Funds investment portfolio consists of funds for operations, Capital Improvement Projects (CIP),
water rate stabilization, administration replacements and reserves.
Balance on
9/30/2025
General Operating Accounts
$
$
Sub-Total Operating Accounts $
Bank of the Sierra -- General Checking
Bank of the Sierra -- Cannibas Checking
Net
Transactions
3,623,276 $
2,181 $
3,625,457 $
Balance on
9/30/2025
General Investment Accounts
$
$
$
Sub-Total Investment Accounts $
Total City Operating Funds $
Local Agency Investment Fund (122)
Kern County Investment Fund (9153)
Multi-Bank Securities (CD Manager)
7,874,680
4,699,782
1,031,879
13,606,341
17,231,798
Balance on
10/31/2025
(700,271) $
15,716 $
(684,555) $
Net
Transactions
$
$
$
$
$
2,923,005
17,897
2,940,903
Balance on
10/31/2025
105,029 $
- $
(3,098) $
101,931 $
(582,624) $
7,979,709
4,699,782
1,028,781
13,708,272
16,649,174
Percent
of Total
17.56%
0.11%
Percent
of Total
47.93%
28.23%
6.18%
100.00%
Restricted Housing Corporation Accounts
Checking & CD Accounts
9/30/2025
$
$
$
$
$
Total Housing Corporation Funds $
Housing Corp. -- Bank of the Sierra, Checking
Housing Corp. -- Bank of the Sierra, CD 7653
Housing Corp. -- Bank of the Sierra, CD 7654
Housing Corp. -- Bank of the Sierra, CD 6574
Housing Corp. -- Bank of the Sierra, CD 6582
2,106,861
114,664
143,423
262,708
262,708
2,890,364
Net Transactions
$
$
$
$
$
$
3,351
337
422
745
745
5,601
10/31/2025
$
$
$
$
$
$
2,110,212
115,001
143,845
263,453
263,453
2,895,965
72.87%
3.97%
4.97%
9.10%
9.10%
100.00%
Restricted SDI Accounts
Note: Interest earned from the SDI CD is directly deposited into the SDI checking account monthly.
Checking & CD Investment Accounts
9/30/2025
$
$
*$
Total SDI Agency Funds $
SDI -- Bank of the Sierra, Checking 6370
SDI -- Bank of the Sierra CD 2389
SDI -- US Bank Investments
430,393
268,075
92,860,470
93,558,938
Net Transactions
10/31/2025
$
$
$
$
430,267
268,854
93,309,644
94,008,765
(126) $
779 $
449,173 $
449,827 $
0.46%
0.29%
99.26%
100.00%
Restricted RDA/Successor Agency Accounts
Checking & Investment Accounts
Successor -- Bank of the Sierra, Checking 8870
RDA/Successor -- US Bank Investments
9/30/2025
Net Transactions
10/31/2025
$
$
297,033 $
862,083 $
4,365 $
0 $
301,398
862,083
25.90%
74.10%
Total Successor Agency Funds $
1,159,116 $
4,365 $
1,163,481
100.00%
1 of 2
California City, California 93505
TREASURER'S MONTHLY REPORT OF INVESTMENT
October 2025 Report
INVESTMENT POLICY
The Treasurer shall invest the City's monies as permitted in the Citie's approved investment policy and approval
of both the City Manager and Finance Director. The Treasurer shall consider current and projected cash needs in
making such investments.
US Bank
SDI Account
9/30/2025
92,534,702
92,860,470
325,768
Market Value Summary - CUSTODIAN ACCOUNT
Beginning Market Value
Ending Market Value
Investment Results (Acct. Number 104388-010)
US Bank
RDA/Successor Agency Accounts
Market Value Summary - REDEVELOPEMENT AGENCY PROJ AREA TAX
9/30/2025
Beginning Market Value
Ending Market Value
Investment Results (Acct. Number 211146000)
-
10/31/2025
92,860,470
93,309,644
449,173
10/31/2025
-
9/30/2025
97,203
0
(97,203)
10/31/2025
9/30/2025
270,003
0
(270,002)
10/31/2025
9/30/2025
862,082
862,082
-
10/31/2025
862,082
862,082
-
Total RDA/Successor Investment Assets
862,083
862,083
Total "US Bank" Investment Assets
93,722,553
94,171,727
Market Value Summary - SUCCESSOR AGENCY Proj Area TAX INTEREST
Beginning Market Value
Ending Market Value
Investment Results (Acct. Number 211146001)
Market Value Summary - SUCCESSOR AGENCY Proj Area TAX PRINCIPAL
Beginning Market Value
Ending Market Value
Investment Results (Acct. Number 211146002)
Market Value Summary - SUCCESSOR AGENCY Proj Area TAX RESERVE
Beginning Market Value
Ending Market Value
Investment Results (Acct. Number 211146003)
2 of 2
0
0
-
0
0
0
DR-HOUSING
COUNCIL AGENDA ITEM
December 9, 2025
TO:
Honorable Mayor and City Council
FROM:
Christopher Lopez, City Manager
Nicole Jarmon- Housing Manager
SUBJECT:
HOUSING MONTHLY DEPARTMENT REPORT
BACKGROUND/ DISCUSSION
Desert Jade
Currently we have 88 apartments filled.
The waitlist currently has 71 applicants.
One unit is ready to be rented, applications are being reviewed
Four units are undergoing rehab.
Desert Jade has three units red tag due to the fire that is undergoing demolition.
Legends
Currently has 6 apartments and 6 houses filled.
Waitlist is combined with Desert Jade
DR-PARK
COUNCIL AGENDA ITEM
December 9, 2025
TO:
Honorable Mayor and City Council
FROM:
Christopher Lopez, City Manager
Leanndrea Weible, Park Coordinator
SUBJECT:
Park and Recreation Monthly Department Report
CURRENTLY:
•
•
•
Sunday Mornings Holy Scriptures Church Service is held in the Arts and Community
Building
Wednesdays the Art Center is used for Zumba Classes from 5-6pm. For more information,
you are invited to stop in during a session and speak to Cheryl
Monday, Wednesday and Friday 5-7:45pm Strata is used for Basketball Practice by Can’t
Stop Wont Stop YNA
UPCOMING:
•
•
Annual Toy Giveaway and Food Drive hosted by R.E.A.C.H. will take place at the Strata
Center December 5-7, 2025
Annual Toy Giveaway hosted by Safe Haven Kids League will take place at the Strata
Center on Saturday December 20, 2025
***REMINDERS***
Anyone interested in volunteering at the park can pick up a Volunteer application at City Hall.
DR-OHV
COUNCIL AGENDA ITEM
December 9, 2025
TO:
Honorable Mayor and City Council
FROM:
Christopher Lopez, City Manager
Inge Elmes, OHV Manager
SUBJECT:
OHV MONTHLY DEPARTMENT REPORT
Events
Thanksgiving Holiday season was a huge success. There was a total of 505 visible RV groups,
significantly higher than the previous three years. The weather was great and minimal incidents
reported. A huge thanks goes out to PD presence and FD assistance with emergency and nonemergency calls.
Operations
Ground crew will focus on trash clean up, park maintenance, and any additional road repairs as
necessary. Staff is preparing for the New Year’s Holiday season.
The Borax Bill Park Visitor Center will be open special hours during the New Years Holiday and
closed on 12/24 and 12/25. Please visit social media accounts for holiday hours. Vendors will
be set up from 12/27-1/4, from 8am-dusk.
Manager Updates
All G24 grant close out and reimbursements are scheduled to be submitted by beginning of January
2026.
Finance Report
For the month of November, OHV sales totaled $62,221.00. These numbers are actuals and reflect
only amounts received within each month. Please refer to Monthly Permit Sales report for FY
totals.
*OHV sales are deposited to specific OHV Permit Program GL revenue codes #29-3992 through
#29-3998. Please refer to the financial statement for details. Not all proceeds are deposited in the
same month.
**Some merchandise was purchased by staff at a discounted rate. All sales for merchandise are
allocated to GL revenue code 29-3691.
Attachment
OHV Permit Program Sales Spreadsheet
CC 1
COUNCIL AGENDA ITEM
December 09, 2025
TO:
Honorable Mayor and City Council
FROM:
Christopher Lopez, City Manager
Kenny Cooper, Finance Manager
SUBJECT:
Approve City Check Register dated 11/08/2025-12/04/2025
BACKGROUND/ DISCUSSION:
The following checks have been prepared by the Finance Department. The items are provided to
the Mayor and City Council for review and approval.
RECOMMENDATION:
Staff recommends the City Council discuss and approve the attached check register.
CB 1
COUNCIL AGENDA ITEM
December 9, 2025
TO:
Honorable Mayor and Members of the City Council
FROM:
Christopher Lopez, City Manager
SUBJECT:
A Resolution of the Mayor and City Council of California City
Authorizing an Agreement Between the City of California City and
the County of Kern for Fire Protection Duties and Enforcement of
State Fire Marshal Regulations
BACKGROUND:
The City has historically utilized a special tax to fund various operations for the community. Due
to the loss of Measure C in 2024, the City made several reductions in personnel to offset some of
the lack of funding, as well as putting forward various items to the voters to increase revenues.
On October 14, 2025, and during discussions related to Strategic Planning for the City, the Mayor
and City Council discussed the importance of alternative service delivery options to help alleviate
the City’s budget and service solvency issues. The Council unanimously supported this and
provided direction to do such.
On October 28, 2025, the Mayor and Council approved a resolution appointing an Interim Fire
Chief to oversee Fire Department operations in California City. That same night, the Council
directed the City Manager to obtain a formal proposal from Kern County for fire protection
services.
Kern County Fire has provided a proposal, and this item is provided as an attachment. The
following synopsis provides a backdrop and foundation for this discussion.
BUDGET BACKGROUND
As background to the City’s budget issues, the City adopted its FY 24/25 Budget on March 25,
2025, which utilized fund balance to balance the budget. On July 8, 2025, the Mayor and Council
adopted the FY 25/26 Budget with the use of fund balance again to balance the budget. The City
has now adopted two budgets in the last six months that utilized fund balance to balance its
operating budgets.
Over the last year, the City has asked voters to approve an extension of Measure C, which
generated approximately $6M in revenues to fund public safety in the City, which expired on June
30, 2024 to help alleviate the City’s budget situation. Voters have not approved a new parcel tax
CB 1
initiative, resulting in a lack of ongoing revenues to support City operations. In July 2025, the
Mayor and City Council received polling results from registered voters that identified the lack of
public support for a parcel tax measure to fund critical operations in the City including public
safety. As a result, the Council did not direct staff to prepare resolutions and various other items
for a ballot measure asking voters to approve a special parcel tax to fund critical operations.
While various adjustments have been made to the budget, with the most notable one resulting in
the elimination of 19 positions and saving $1.3M, there remains significant budget and service
delivery issues in the community. Numerous residents have noticed these impacts, and the City is
doing the best it can with its current limitations. Additionally, the City has gone without general
liability insurance for over three years, which is not the best governance practice.
General Fund Overview
The general fund is the primary operating fund for the City. The general fund pays for many of the
services offered to the City’s residents including personnel for Planning, Public Works
Administration, Clerk’s Office, a portion of Police and Fire Department costs, and Recreation
programming. While many cities fund public safety primarily through the general fund, California
City has funded the bulk of its public safety departments through a special tax for public safety.
Relying on a special tax measure with an expiration date for such a critical function has the effect
of funding a primary function of local government with a temporary funding stream. Funding a
core element of local government with a temporary funding stream is not a best practice as it locks
the City into a guaranteed crises every few years if there is no funding mechanism to take over the
finite revenue stream. With the expiration of Measure C, this created a significant hole in the City’s
budget since it relied on a temporary measure to fund public safety. While the City is current fully
funding its public safety operations with the use of fund balance, this finite source of revenue will
eventually go away.
The pattern of temporarily funding such core functions of government has locked the City into a
pattern of instability and resulted in many issues for the California City community.
Historical Review of Special Tax Revenues and Expenditures: Budget Problem
While Measure C covered a significant portion of the City’s public safety costs, the City ran
deficits in these operations for many years. This means that even with the allocation of Measure
C, or other special tax revenues, the City was unable to contain its expenditures within the revenues
generated for public safety. The table below lists the total revenues, and the respective expenditures
over the last ten years. The numbers included below are taken from the City’s audited financial
statements, which can be viewed on the Finance Department website.
Fiscal Year
Ended
2015
2016
2017
Public Safety
Revenues
Expenditures
Excess (deficiency) of
revenues over (under)
expenditures
$
$
$
$
$
$
$
$
$
6,753,885
6,794,075
6,658,706
7,307,711
8,153,345
8,632,413
(553,826)
(1,359,270)
(1,973,707)
2018
2019
2020
2021
2022
2023
2024
$
$
$
$
$
$
$
6,934,156
7,787,816
7,283,017
7,704,425
7,583,090
7,229,442
6,621,949
$
$
$
$
$
$
$
6,884,488
8,043,685
8,857,956
7,330,376
8,414,445
7,593,986
8,588,388
$
$
$
$
$
$
$
49,668
(255,869)
(1,574,939)
374,049
(831,355)
(364,544)
(1,966,439)
CB 1
In the last ten years, and based on the City’s audited financial statements, the City exceeded its
public safety expenditures in eight of the last ten years. This means that the City’s special tax for
public safety was only covering a portion of the City’s public safety costs. The additional funding
necessary to cover this expense was covered through the general fund.
Use of Fund Balance to Balance the Budget
The use of fund balance to cover ongoing expenditures is not a recommended practice. Given the
City’s accrual of fund balance in the general fund, the City can utilize this funding in order to
balance the City’s budget. This deficit spending should be remedied, and a long-term solution is
necessary to remove the City’s reliance on one time funding.
Utilizing fund balance is not a viable long-term strategy and will eventually lead to fiscal
insolvency.
Additionally, the elimination of personnel in 2024 had the effect of lessening total general fund
expenditures and thereby lessening the deficit for the fiscal year. Those reductions in personnel
did come at a service cost since there is currently no maintenance staff to perform duties at the
parks, city hall, senior center, and other functions of the City. Reductions in maintenance and
operations expenditures have also provided significant savings to the community, but the City is
grappling with conditions related to service insolvency, as its unable to meet basic demands for
service.
Financial Health Indicators
When reviewing various items that provide an indication to the City’s financial health, the
following items should raise concern as it relates to the City’s financial health, which are currently
being utilized by the City:
1.
2.
3.
4.
Use of fund balance to balance the budget
Net operating deficits in the general fund
City is unable to keep pace with aging of capital assets
General fund subsidies occur in enterprise funds including the Airport Fund and the
Golf Course Fund
5. Nonrecurring revenues from development have been utilized to fund operating costs
(use of one-time revenue from development projects)
6. Public service levels do not need the standards and needs in the community
CB 1
These practices are indicative of the broader issues related to the City’s ability to remain solvent
into the future.
Insolvency:
California City has experienced significant stress due to ongoing deficits that have resulted in
several service delivery challenges. Without additional painful cuts to critical and vital services,
and in the absence of new revenue sources, the City is headed towards fiscal insolvency.
Opportunity still exists for the City of California City to address its financial condition, but it will
require significant, difficult, and challenging conversations related to how to move the City
towards financial sustainability.
It should be noted that according to John Knox and Marc Levinson, who wrote the document titled,
Avoiding and Using Chapter 9 in Times of Fiscal Stress, they state that “filing for bankruptcy
protection under chapter 9 should be considered a last resort, to be effected only after every effort
has been made to avoid it.”
They also state that, “In these circumstances, painful cuts in service levels, employee
compensation and other expenses may be required, as well as increased revenues through higher
taxes or fees.”
Fire Department Discussions
On August 14 2025, the City Manager’s Office met with all the line personnel of the Fire
Department. The purpose of this meeting was to allow the free flow of information, ask questions,
and determine the needs of the men and women of the California City Fire Department. During
this discussion, the following themes emerged:
1. Service demand levels are increasing
2. The CoreCivic facility will require additional calls for service, and there are concerns
with the additional workload it will place on staff
3. Long term financial stability is necessary, and the City should plan for enough funding
in reserves
4. The City can improve its communications with the community
5. The Fire Department needs its own Fire Chief
a. The concept of a “Public Safety Director” was only intended to be short term,
and it was not intended to be this way into the future.
6. Kern County is a great and valuable resources and they do an incredible job assisting
with operations when they have the capacity to do so
7. The Department needs assistance with its budget, personnel management, and other
administrative functions that are ordinarily handled by a Chief Executive Officer
On October 28, 2025, the Mayor and Council approved an agreement with Kern County Fire to
provide interim Fire Chief services.
Notable Investments in Public Safety
It should be noted that there have been several recent investments made in the public safety. These
investments, which were made possible from a development project, was made possible from one
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time funding and is not evergreen, nor is this funding stream replenishable, making it unsuitable
for long term sustainability.
Kern County Fire Proposal
On October 28, 2025, the Mayor and City Council directed staff to obtain a proposal from Kern
County Fire for the provision of fire protection services. Kern County has provided the attached
proposal for the Council’s review. The following items are included within their proposal:
•
•
•
•
•
•
•
•
Fire prevention and suppression
Emergency medical response
Rescues
Hazardous Materials response
Fire inspections
Plan review
Fire cause and Arson investigation
All support services including supervision, dispatching, training, maintenance,
procurement, and supplies.
After preliminary discussions with Kern County Fire, they have informed the City Manager’s
Office that this may be structured in such a way where City contributions for the provision of fire
services is minimal for the first couple of years, which would thereby help lessen the financial
impacts of utilizing fund balance to cover day to day operations, and may be an opportunity for
the City to guarantee service delivery to residents of California City.
The County has provided four service level options, which are summarized below:
Option A
• 3 – Person Staffing (1 Captain, 1 Engineer, and 1 Firefighter)
Option B
• 3 – Person Staffing with Advanced Life Support (ALS) service (1 Captain, 1 Engineer, 1
Firefighter Paramedic) –
Option C
• 4 – Person Staffing (1 Captain, 1 Engineer, 2 Firefighters) –
Option D
• 4 – Person Staffing with ALS (1 Captain, 1 Engineer, 1 Firefighter, 1 Firefighter
Paramedic)
The potential costs are listed below based on the various options:
3- person Staffing (1 Captain, 1 Engineer, 1 FF)
Annual Cost w/ equipment credit
$3.98M equipment phase-in
FY 25-26
$388,606
$30,284
9%
FY 26-27
$1,585,512
$192,039
35%
FY 27-28
$2,426,075
$196,519
56%
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3- person Staffing with ALS (1 Captain, 1
Engineer, 1 FF PM)
Annual Cost w/ equipment credit
$3.98M equipment phase-in
$402,887
$1,643,781 $2,515,236
$44,566
9%
$250,308
35%
4- person staffing (1 Captain, 1 Engineer, 2 FF)
Annual Cost w/ equipment credit
$3.98M equipment phase-in
$495,445
$137,134
9%
$2,021,457 $3,093,139
$627,985
$863,583
35%
56%
4- person staffing with ALS (1 Captain, 1
Engineer, 1 FF, 1 FF PM)
Annual Cost w/ equipment credit
$3.98M equipment phase-in
$509,737
$2,079,726 $3,182,300
$151,415
9%
$686,254
35%
$285,680
56%
$952,744
56%
November 3, 2025 Special Meeting
At the November 3, 2025 Special Meeting of the Mayor and City Council, the Council
unanimously directed that the City accept Option A and directed staff to formalize a final
agreement to be approved by the Mayor and City Council at a future meeting.
November 17, 2025 Meeting
At the November 17, 2025 meeting, the Mayor and City Council reconsidered the option selected
at the November 3, 2025 meeting. The Mayor and City Council chose Option B, and directed
staff to make this change.
Finalization of Kern County Agreement
Since the November 3, 2025 meeting, the City Manager’s Office has worked alongside Kern
County Fire, and the respective associations to ensure that all matters have been resolved and
addressed prior to the finalization of this agreement. Two personnel in the Fire Department will
be transferred out of the Fire Department as Kern County will not be absorbing those employees,
and they will be retained by the City. Those employees are involved with overseeing a cannabis
related enforcement grant, and a carve out is included the proposed agreement.
In partnership with the Association representing the safety employees in the Fire Department, the
Fire Association President has confirmed that the moving of the personnel to Kern County Fire
and the respective items associated with that move have been agreed upon by their membership.
Kern County Fire has also confirmed that they are in agreement with the proposed movement,
and all items have been resolved and addressed.
RECOMMENDATION:
It is recommended that the Council adopt the resolution of the Mayor and City Council of
California City Authorizing an Agreement Between the City of California City and the County of
Kern for Fire Protection Duties and Enforcement of State Fire Marshal Regulations.
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ATTACHMENTS:
1. Resolution
2. Kern County Fire Agreement
RESOLUTION NO. 25-3188
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF CALIFORNIA CITY
AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF CALIFORNIA CITY AND
THE COUNTY OF KERN FOR FIRE PROTECTION DUTIES AND ENFORCEMENT
OF STATE FIRE MARSHAL REGULATIONS
The City Council of the City of California City (hereafter referred to as the “City Council”)
does resolve as follows:
WHEREAS, in 2024, the City eliminated its Police and Fire chief positions in an
attempt to realize budget savings; and
WHEREAS, on August 14, 2025, the City Manager’s Office met with all line level
personnel from the Fire Department and gathered feedback and input from the rank and
file; and
WHEREAS, the City Manager’s Office has worked with Kern County Fire in
developing an agreement for fire protection services; and
WHEREAS, the City Council has directed staff to meet and confer regarding
impacts to represented employees and has completed this; and
WHEREAS, the City Council desires to enter into an agreement with Kern
County for Fire Protection Services and Enforcement of State Fire Marshal regulations.
NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE
CITY COUNCIL OF THE CITY OF CALIFORNIA CITY, CALIFORNIA, AS FOLLOWS:
SECTION 1: The above recitals are true and correct.
SECTION 2: The City Council authorizes the Mayor and City Manager to execute a
cooperative agreement with Kern County for Fire Protection Services and
Enforcement of State Fire Marshal regulations.
SECTION 3: The City Council authorizes the City Manager to take all actions
necessary to implement this action.
SECTION 4: This Resolution becomes effective immediately upon approval by the
City Council.
[THIS SPACE IS INTENTIONALLY LEFT BLANK]
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
California City, this 9th day of December 2025.
__________________________
Marquette Hawkins
Mayor
ATTEST:
APPROVED AS TO FORM:
___________________________
Leanndrea Weible
Acting City Clerk
__________________________
Victor M. Ponto,
City Attorney
CERTIFICATION
I, Leanndrea Weible, Acting City Clerk of the City of California City, California, hereby
certify that the foregoing resolution was duly adopted at a meeting of the City Council of
said City at its meeting held on the 9th of December 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of the City of California City, California, this 9th day of December, 2025.
__________________________
Leanndrea Weible
Acting City Clerk
CITY AGREEMENT NO.: ___________
COUNTY AGREEMENT NO.: ____________
AGREEMENT BETWEEN THE CITY OF CALIFORNIA CITY AND THE COUNTY OF KERN
FOR COUNTY OF KERN FIRE PROTECTION DUTIES
AND
ENFORCEMENT OF STATE FIRE MARSHAL REGULATIONS
(COUNTY OF KERN-CITY OF CALIFORNIA CITY)
THIS AGREEMENT, made and entered into on , by and between COUNTY OF KERN, a
political subdivision of the State of California (hereinafter referred to as “COUNTY”) and CITY
OF CALIFORNIA CITY, a municipal corporation within COUNTY of Kern (hereinafter referred
to as “CITY”);
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WITNESSETH:
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WHEREAS, Government Code section 36501 provides that the government of a general law
city shall be vested in the officers therein named and includes the designation of a fire chief;
and
WHEREAS, Government Code section 38611 provides that the legislative body of a general
law city shall establish a fire department for CITY, and that said fire department shall be under
the charge of a chief who shall have had previous training and experience as a firefighter, and
that the other members of said fire department shall consist of paid firefighters or such
companies of call firefighters as the legislative body may determine; and
WHEREAS, Pursuant to the provisions of Health and Safety Code section 13143, Regulations
of the State Fire Marshal have been adopted which are set forth in Chapter 1 of Title 19 of the
California Code of Regulations; and
D
WHEREAS, Government Code section 51301 authorizes the Board of Supervisors to contract
with a city within COUNTY and authorizes CITY legislative body to contract with COUNTY for
the performance of city functions by appropriate county officers and employees; and
WHEREAS, Government Code section 51303 provides in part that: “COUNTY officers and
employees named in the contract shall exercise within CITY all of the powers and duties
conferred upon CITY officers or employees named in the contract”; and
WHEREAS, CITY Council of CITY desires that the functions of the Chief of the Fire Department
of CITY, including enforcement of the regulations of the State Fire Marshal, shall be performed
by the Chief of the Fire Department of COUNTY acting as the Fire Chief of CITY; and
WHEREAS, CITY and COUNTY have negotiated this Agreement to concurrently terminate
prior County agreement #1033-2002
NOW, THEREFORE, IT IS MUTUALLY AGREED by and between COUNTY and CITY as
follows:
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1.
POWERS AND DUTIES OF COUNTY FIRE CHIEF AND COUNTY FIRE
DEPARTMENT EMPLOYEES
(A)
The Chief of the Kern County Fire Department and employees of COUNTY Fire
Department shall exercise within CITY all of the powers and duties conferred upon a
City Fire Chief of City Fire Department personnel, including reporting to CITY Council
and enforcing the “Regulations of the State Fire Marshal.”
(B)
Fire prevention and suppression, emergency medical responses, rescues,
hazardous materials responses, fire cause and arson investigation plus all COUNTY
support services including, but not limited to, supervision, dispatching, training,
equipment maintenance, supplies, and procurement, collectively referred to as
“services.” “Services” shall not include duties relating to the inspection, enforcement, or
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any other related functions concerning CITY-regulated local cannabis industry as
currently performed by CITY personnel pursuant to CITY’s Proposition 64 grant
funding. Functions within CITY’s boundaries shall be vested in COUNTY Fire Chief and
employees of COUNTY Fire Department as may be designated by COUNTY Fire Chief.
Such reassignment of resources shall have no effect on CITY’S Annual Fee for services.
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(C)
In the performance of their duties of prevention, control and suppression of fires,
emergency medical responses, rescues, hazardous materials responses and fire
investigation functions pursuant to this Agreement, the personnel of COUNTY shall have
the powers and duties of the Chief of the Fire Department of CITY and shall perform
said services in accordance with professional firefighting standards. In the event of a
dispute between the parties as to these duties, functions or manner of performance of
these duties and functions, determinations by COUNTY Fire Chief shall be final and
conclusive between the parties.
(D)
All engine companies assigned to CITY fire station(s) as listed in Section 5 (C)
“SERVICE LEVEL” shall carry automatic defibrillators and their personnel shall be
certified Emergency Medical Technician-Defibrillator.
D
(E)
COUNTY will participate in and support community emergency preparedness,
education, training, and exercises. COUNTY personnel will work with CITY to continue
to provide public education programs currently offered by CITY. The scope and specific
programs may be modified by COUNTY and CITY after subsequent evaluation. CITY
shall retain responsibility for CITY’s internal emergency management and related
programs, as well as communication and coordination with COUNTY’s Emergency
Operations Center (EOC), when activated.
(F)
It is expressly understood that in the performance of the services herein provided
for, COUNTY shall be, and is, an independent contractor and is not an agent or
employee of CITY. COUNTY has and shall retain the right to exercise full control and
supervision of the services and full control over the employment, direction, assignment,
compensation and discharge of all persons employed by COUNTY and assisting in the
performance of services hereunder. COUNTY shall be solely responsible for all matters
relating to the payment of its employees including, but not limited to, compliance with
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social security, workers’ compensation, withholding, and all regulations governing such
matters.
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(G)
COUNTY shall provide as necessary, fire inspection services as are provided by
COUNTY Fire Department to residents of the unincorporated area of COUNTY of Kern.
(H)
County Fire Department Personnel shall make a good faith effort to attend a City
Council meeting once every month of the calendar year.
2.
PLANS REVIEW, INSPECTIONS AND CODE ENFORCMENT FUNCTIONS
Solely for the purpose of enforcing or assisting in the enforcement of the regulations of
the State Fire Marshal, as provided for in Chapter 1 of Title 19 of the California Code of
Regulations, COUNTY will perform the following specific functions on behalf of CITY:
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(A)
Plan check and approve or disapprove all building, electrical, and plumbing plans
for all occupancies covered by Chapter 1 of Title 19 of the California Code of Regulations
before a building permit is issued by CITY and construction started.
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(B)
Plan check and approve or disapprove any changes in approved plans on all the
above-described occupancies for new construction, alterations to existing buildings, and
any changes of occupancy.
(C)
Make joint final inspection with building inspection personnel of CITY on all of the
above-described occupancies. No certification of lights, gas, or occupancy shall be
issued, nor business license granted until joint approval by COUNTY and CITY after
joint final inspection.
COUNTY will perform these functions without an increase in the Annual Fee (as
describe in Paragraph 7), provided that fees for these services in the amounts
established by COUNTY are paid to COUNTY pursuant to Paragraph 10 and provided
further that the services do not require that COUNTY increase staffing level set forth in
Paragraph 5(c).
FIRE HYDRANTS AND WATER SUPPLY
D
3.
(A)
CITY, as its sole and separate obligation, shall continue to provide a system of
fire hydrants and water supply for fire prevention and suppression within CITY. CITY
shall cooperate with and assist COUNTY in requiring that CITY Water Department or
other local water purveyors provide at least minimum water fire flows as required by the
California Fire Code and hydrants for fire protection purposes within CITY.
(B)
COUNTY shall annually inspect all fire hydrants within CITY to ensure that fire
hydrants are mechanically operable and capable of delivering water. COUNTY shall
notify CITY Water Department or other local water purveyors, in writing, of any
maintenance requirements as soon as possible after such inspections and at any other
time COUNTY becomes aware of maintenance or repair requirements. COUNTY shall
not be liable to pay CITY Water Department or any other water purveyors for hydrant
installation, painting to COUNTY specifications, repair, maintenance, or rental fees or
any other related costs or expenses.
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4.
ROUTING OF EMERGENCY CALLS
(A)
The immediate transference of 9-1-1 calls to COUNTY by CITY’s Public Safety
Answering Point (PSAP) shall be performed on all fire, rescue, hazardous materials, and
emergency medical incidents without cost to COUNTY. CITY shall be responsible for all
costs associated with connecting ring down circuits from its PSAP to COUNTY’s circuit.
(B)
COUNTY shall provide to CITY annually, and upon request, statistical response
information reports for emergency incident activity and response times.
(C)
Prior COUNTY agreement #1033-2202 between COUNTY and CITY for dispatch
service is terminated.
SERVICE LEVEL
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5.
(A)
Nothing in this Agreement precludes the future expansion, closure, consolidation,
or relocation of the fire stations referenced herein if such action is mutually beneficial to
and agreed upon by both CITY and COUNTY.
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(B)
Any agreed-upon adjustments in staffing may cause adjustments in the
determination of the Annual Fee.
(C)
COUNTY will provide to CITY a minimum assigned service level based on daily
staffing (24-7) of one (1) Captain, one (1) Engineer, and one (1) Firefighter Paramedic.
Fire personnel assigned will be comparably equipped and trained as other similar
positions within COUNTY Fire Department. COUNTY will also provide such “backup” or
additional service as reasonably necessary in accordance with professional firefighting
standards, including, but not limited to those situations where firefighters assigned to
the CITY are utilized outside CITY limits on emergencies.
D
Any request by CITY for increased Service Levels shall be communicated to
(D)
COUNTY no later than January 1st prior to implementation the following fiscal year,
subject to approval by COUNTY and in accordance with Section 12 “POTENTIAL
CHANGES IN SERVICE LEVEL” herein.
6.
COST ALLOCATION METHODOLOGY
The Annual Fee in this Agreement is based upon CITY incorporated area boundaries
as of the effective date of this Agreement and minimum service level set forth in Section
5. A change in the incorporated area boundaries of the CITY shall be considered a
potential change in service subject to Section 12 “POTENTIAL CHANGES IN SERVICE
LEVEL” herein. The methodology for cost allocation includes the following:
(A)
Direct Costs - Those costs include fire department direct station cost to operate
a COUNTY fire station in an incorporated CITY; and include the following:
i.
Average cost for station assigned uniformed personnel and pro rata shares of
Battalion Chiefs, including salary and all benefits but not including overtime to
maintain constant staffing based on fiscal year 2024-2025 costs.
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ii.
iii.
iv.
Equipment cost allocation of $42,500 per year per station.
Average of historic utility cost of County stations.
Fire station maintenance cost allocation of $10,000 per year per station for
stations owned by County.
(B)
Indirect Cost - Calculation of a " fair share" administrative/overhead cost factor to
account for indirect costs associated with providing fire protection services to
participating CITY. For the duration of this Agreement the Indirect Cost rate shall be
calculated as 10% of the Direct Costs.
(C)
The Direct and Indirect Costs are then added together to identify the “Total Cost.”
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(D)
Each year after the first year of this Agreement, Total Cost are determined as the
prior year’s Total Cost plus 2%.
(E)
Due to the strategic location of the station in California City, within the context of
the countywide mutual aid system, a discount of 15% of Total Cost shall be applied to
arrive at CITY’s Total Cost.
7.
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(F)
All amounts collected by COUNTY from CITY under this Agreement for the
Equipment Cost Allocation contained in Section 6(A)(ii) shall be accumulated and
utilized by COUNTY for new or replacement Kern County Fire Department vehicles and
equipment primarily serving, and housed within, CITY.
COMPENSATION
CITY will compensate COUNTY for the performance of duties under this Agreement as
follows:
(A)
The Annual Fee owed by CITY to COUNTY for the performance of duties under
this Agreement is included as “Exhibit A” to this Agreement.
D
(B)
Any increases in costs necessitated or mandated by legislative or judicial
decisions or actions, or by CITY’s request for increases in service level, other than
penalties or damages due to negligence of COUNTY, shall be due in the fiscal year that
they occur.
(C)
Average Salaries and Benefit Costs will be used as the basis for costs to be billed
to the CITY for any additional personnel requested by the CITY.
(D)
COUNTY shall be responsible for all costs and expenses incident to the
performance of the services for CITY, including but not limited to, all costs of equipment
provided by COUNTY, all fees, fines, licenses, bonds or taxes required of or imposed
against COUNTY and all other of COUNTY’S costs of doing business. Except as
expressly provided for herein, CITY shall not be responsible for any expense incurred
by COUNTY in performing services for the CITY, unless such expenses are incurred
due to CITY’s negligence.
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8.
FIRE FUND RETENTION
In the event CITY annexes additional areas from COUNTY, COUNTY shall continue to
receive the Fire Fund revenues associated with those additional areas. Those additional
Fire Fund revenues shall not be deducted from the CITY’s TOTAL COSTS until the next
contract cycle when COUNTY’S costs and incidents in the annexed area are reviewed
and factored into this Agreement as necessary to serve the new incorporated
boundaries.
9.
BILLING & PAYMENT
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(A)
In consideration of the covenants contained herein, CITY shall pay to COUNTY
the costs specified in Section 6 “COST ALLOCATION METHODOLOGY” and Section 7
“COMPENSATION” herein over the term of the Agreement. The Kern County Fire
Department shall, within thirty (30) days of the close of each calendar year quarter,
invoice CITY for one fourth of the amount to be paid annually. CITY shall pay COUNTY
within forty-five (45) days of receipt of the invoice. Invoices and general notices
regarding billing and payment shall be sent to CITY at:
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City of California City
21000 Hacienda Boulevard
California City, CA 93505
Payments shall be sent to:
Kern County Fire Department
5642 Victor Street
Bakersfield, CA 93308
Either party shall notify the other in writing of an address change.
D
(C)
In the event that a billing/payment dispute arises between COUNTY and CITY,
the parties will negotiate in good faith to resolve the dispute and the following procedures
will be taken to resolve the dispute:
1.
The dispute will be specified, in writing, and presented to COUNTY
jurisdictional Deputy Fire Chief if a CITY dispute, or to CITY MANAGER if a
COUNTY dispute, within thirty (30) days of the receipt of a disputed invoice or
disputed payment. CITY shall pay any disputed invoice “under protest.”
2.
If COUNTY and CITY cannot fully resolve the dispute within ninety (90)
days of receipt of written notification of this dispute (impasse), the impasse will
be sent to an independent arbitrator for resolution. Said arbitrator shall be
selected jointly by CITY and COUNTY within forty-five (45) days of impasse and
shall be paid for equally by CITY and COUNTY. If COUNTY and CITY cannot
agree on an arbitrator, each party shall, at its own expense, retain an arbitrator
within thirty (30) days after the jointly selected arbitrator should have been
4936-0829-6574 v1
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selected. These two arbitrators will within thirty (30) days mutually select a third
arbitrator. The mutually agreed-upon arbitrator will resolve the matter within thirty
(30) days after his/her selection. COUNTY and CITY shall share equally the cost
of the third arbitrator. The arbitrator’s resolution of the impasse shall be final and
binding.
If COUNTY prevails in arbitration, all money owed and not paid to COUNTY will be
forwarded to the mailing address identified in Section 9 “BILLING & PAYMENT”, herein,
within thirty (30) calendar days from the date of the issuance of the arbitrator’s decision.
In addition, CITY will be assessed and pay the interest payment amount as calculated
for an interest payment in Section 9(B) of this Agreement.
FEES
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10.
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If CITY prevails in arbitration and has paid COUNTY the disputed amount, a refund to
CITY will be forwarded to the mailing address identified in Section 9(A), herein, within
thirty (30) calendar days from the date of the issuance of the arbitrator’s decision. In
addition, COUNTY will pay to CITY the interest as calculated for an interest payment,
as identified in Section 9(B) of this Agreement.
D
All revenues generated from fees established or implemented by COUNTY shall be
COUNTY revenues. Fees of any nature collected by CITY on behalf of COUNTY shall
be passed through to COUNTY by CITY as COUNTY revenues. CITY shall be
authorized to retain a five percent (5%) administrative charge for any fees collected on
behalf of COUNTY. Any fees charged and collected by CITY subsequent to the
commencement date of service shall remain as revenues of CITY provided that such
fees are not identified as fees imposed by COUNTY. COUNTY shall be authorized to
retain a five percent (5%) administrative charge for any fees collected by COUNTY on
behalf of CITY. Excluding any State, Federal, or judicially mandated Programs or fees,
any fees established by COUNTY to be imposed in CITY after the commencement date
of service shall require the prior approval of CITY, which shall not be unreasonably
withheld. After giving written notice to COUNTY, CITY may at any time choose to pay,
in part or whole, any fees levied by COUNTY in lieu of imposition of the fees upon the
citizens of CITY.
11.
COST RECOVERY
In the event that an incident occurs within CITY while this Agreement is in effect during
which COUNTY may be required to deploy a substantial number of COUNTY apparatus
and personnel to such incident, COUNTY reserves the right to pursue cost recovery at
its sole discretion against the party that caused the incident but not against CITY. In the
event CITY pursues cost recovery for COUNTY resources deployed to such an incident,
CITY shall promptly pay to COUNTY all such COUNTY costs recovered by CITY less
the cost of CITY’S recovery efforts. Costs for COUNTY resources paid for by CITY
through this Agreement as detailed in Section 5(C) “SERVICE LEVEL” herein and
deployed to such an incident shall not be recoverable by COUNTY from CITY.
12.
POTENTIAL CHANGES IN SERVICE LEVEL
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If public safety requires an increase in staffing levels during the term of this Agreement,
CITY and COUNTY will renegotiate the annual compensation paid to COUNTY.
13.
CITY RESOURCES
Upon execution of this agreement, COUNTY agrees to purchase CITY fire assets
including Station, Land, Vehicles, and Equipment. The complete list of items to be
purchased by COUNTY from CITY is included as an attachment to this agreement titled
‘Exhibit B’.
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CITY agrees to receive credit toward fire protection services provided by COUNTY for
station, land, vehicles, and equipment contained in Exhibit B totaling $3,981,350. Credit
shall be applied over the term of the agreement as follows:
FY 25-26: $358,322
FY 26-27: $1,393,473
FY 27-28: $2,229,556
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CITY shall transfer ownership of CITY fire station, land, vehicles, and equipment to
County upon execution of this agreement.
D
(A) Real Property – CITY agrees to transfer and convey all right, title, and interest to
existing CITY land and fire station located at 20809 Hacienda Boulevard, APN 205330-04, to COUNTY.
(B) Apparatus/Equipment – CITY agrees to transfer and convey all right, title, and
interest to COUNTY for all apparatus, vehicles, and capital equipment identified in
Exhibit B.
(C) Personnel – In order to avoid the necessity of implementing lay-off procedures,
COUNTY agrees to accept as COUNTY employees those full-time CITY Fire
Department sworn employees who meet the minimum qualifications and physical
requirements that all COUNTY Fire Department sworn employees must periodically
meet for their respective employment classifications. In addition, CITY employees to
be transferred to COUNTY service shall be required to consent to the release of his
or her personnel records to COUNTY, and further consent to the integration of such
records in the employee’s COUNTY personnel file.
a. CITY shall continue to pay for the costs of the employees until such time as
employees are transferred to COUNTY. CITY retains all liabilities incurred as
a result of CITY employment. Including, but not limited to, liabilities related to
employee benefits and any liabilities incurred but not reported.
b. COUNTY shall not assume any responsibility for personnel benefits or CITY
obligations accrued by CITY employees prior to the commencement date of
COUNTY service, except as expressly provided for in this Agreement.
c. Each CITY Fire Department sworn employee holding the rank of Firefighter,
Engineer, or Captain who transfers to COUNTY employment shall be required
to complete COUNTY employment paperwork and testing as required by
COUNTY. Qualifications of CITY employees will be reviewed by COUNTY for
COUNTY to determine eligibility, rank, and salary step at which CITY
employees would become COUNTY employees.
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d. Employees shall be allowed to roll over up to 144 hours of accrued sick and
vacation time from CITY to COUNTY, not to exceed employee’s actual
balance. CITY shall be responsible for all payments to CITY employees for
any accrued leave balances not transferred to COUNTY. CITY shall be
responsible to pay COUNTY for leave balances transferred to COUNTY,
calculated per hour at $52.72 for Firefighters, $66.24 for Engineers, and
$77.59 for Captains.
e. Terms of employee transfer to be subject to meet and confer and
memorialized in a separate MOU between COUNTY and employee
association.
14.
TERM OF AGREEMENT
15.
MODIFICATIONS TO AGREEMENT
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The term of this Agreement will begin on January 1, 2026 and shall continue in full force
and effect until June 30, 2028 unless otherwise terminated.
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(A)
A review of the Agreement terms may be initiated at any time by either party,
upon written notice to the other, and modifications made to this Agreement upon written
consent of both parties, which consent shall not be unreasonably withheld or delayed.
The parties agree to negotiate in good faith and deal fairly with respect to performance
under this Agreement and to any proposed modifications to this Agreement.
(B)
This Agreement may be modified only in writing and with the approval of both
CITY and COUNTY.
16.
TERMINATION
D
(A)
Either party may terminate this Agreement without cause by providing to the other
party in writing at least twelve (12) months advance notice of its intent to terminate; and
any such notice of termination by COUNTY shall be served upon CITY by delivery of
said notice either in person or by registered mail to the CITY Clerk; any such notice of
termination shall be served upon COUNTY by delivery of said notice either in person or
by registered mail to the Clerk of the Board of Supervisors.
(B)
In the event this Agreement is terminated, all real property, equipment, fire
apparatus, personal property, and supplies, contained in COUNTY fire station(s) shall
remain the sole property of COUNTY.
(C)
In the event CITY detaches from COUNTY, any unpaid Annual Fee Limitation
excess together with any outstanding Annual Fee payments due by CITY as of the
effective date of the detachment shall be due and payable to COUNTY no later than the
effective date of detachment. Should a credit be due CITY from COUNTY, a refund shall
be paid to CITY no later than the effective date of detachment.
17.
INDEMNIFICATION
4936-0829-6574 v1
Page 10 of 15
(A)
Neither party will be liable to the other party for any damage, liability claim or
cause of action for damage to, or destruction of, property or for injury to or death of
persons arising solely from any act or omission of the other party’s officers, agents and
employees.
(B)
CITY will indemnify, hold harmless, and defend (upon the written request of
COUNTY) COUNTY, its officers, employees, and agents from any and all loss, damage,
liability claim or cause of action of every nature whatsoever for the physical damage to
or destruction of property, including the property of COUNTY or physical injury to or
death of any person, including COUNTY’S officers, employees or agents, which may
arise out of any negligent act or omission of CITY, its officers, employees or agents.
T
(C)
COUNTY will indemnify, hold harmless and defend (upon the written request of
CITY) CITY, its officers, employees, and agents from any and all loss, damage, liability,
claim or cause of action of every nature whatsoever for physical injury to or death of any
person, including CITY’S officers, employees and agents, which may arise out of any
negligent act or omission of COUNTY, its officers, employees or agents.
18.
R
AF
(D)
The party against whom any claim arising from this Agreement is filed will give
prompt notice of the filing of the claim to the other party.
INSURANCE
Both parties represent that they are self-insured for all exposure including bodily injury
and property damage. Both parties agree to provide proof of self-insurance upon
demand to include coverage above any self-insured retention.
19.
WAIVER
D
No waiver of a breach of any provision of this Agreement will constitute a waiver of any
other breach, or of such provision. Failure of CITY or COUNTY to enforce at any time,
or from time-to-time, any provision of this Agreement will not be construed as a waiver
thereof. The remedies herein reserved will be cumulative and additional to any other
remedies in law or equity.
20.
PARTIAL INVALIDITY
Should any part, term, portion, or provision of this Agreement be finally decided to be in
conflict with any law of the United States of the State of California, or otherwise be
unenforceable or ineffectual, the validity of the remaining parts, terms, portions, or
provisions will be deemed severable and will not be affected thereby, provided such
remaining portions or provisions can be construed in substance to constitute the
Agreement which the parties intended to enter into in the first instance.
21.
ENTIRE AGREEMENT
This Agreement contains the entire agreement of the parties relating to the rights herein
granted and the obligations herein assumed. Any oral representation or modification
4936-0829-6574 v1
Page 11 of 15
concerning this Agreement will be of no force or effect excepting a subsequent
modification in writing, signed by both parties.
22.
COUNTY RECORDS
At any time during normal business hours, upon the request of CITY, COUNTY will make
available for examination all of its existing records with respect to matters covered by
this Agreement for purposes of audit, examination, or to make copies of such records,
exclusive of confidential personnel files.
23.
COUNTERPARTS
24.
T
This agreement may be executed simultaneously in any number of counterparts, each
of which shall be deemed an original but all of which together shall constitute one and
the same instrument.
NOTICES
R
AF
All notices required or permitted to be given pursuant to this Agreement may be
personally served on the other party by the party giving such notice or may be served
by certified mail, return receipt requested, to the following addresses:
COUNTY:
CITY:
County Fire Chief
5642 Victor Street
Bakersfield, CA 93308
City Manager, City of CALIFORNIA CITY
21000 Hacienda Boulevard
California City, CA 93505
D
[SIGNATURES ON THE FOLLOWING PAGE]
4936-0829-6574 v1
Page 12 of 15
IN WITNESS WHEREOF, CITY and COUNTY have caused this Agreement to be executed by
their authorized agents.
APPROVED AS TO FORM:
“COUNTY”
By: _________________________
Mayor
City of California City
By: ___________________________
Leticia Perez, Chairman
Kern County Board of Supervisors
By: ___________________________
Deputy County Counsel
Kern County
R
AF
By: _________________________
City Attorney
City of California City
T
“CITY”
APPROVED AS TO CONTENT:
By: _________________________
City Manager
City of California City
Attest:
D
By: _________________________
City Clerk
City of California City
4936-0829-6574 v1
By: ___________________________
Aaron Duncan, Fire Chief
Kern County
By: __________________________
Julie Gragg, Clerk of the Board
County of Kern
Page 13 of 15
Exhibit A
Annual Fee
City
FY
2025/26
FY
2026/27
FY
2027/28
$402,887
$1,643,781
$2,515,236
California City
*
$358,322 $1,393,473 $2,229,556
$44,566*
$250,308
$285,680
T
Cost of Service
Employee Costs
Facility and Equipment Credit
Net Cost
D
R
AF
*Employee costs associated with section 13(C)(d) to be determined and billed to City
separately during FY 2025-26.
4936-0829-6574 v1
Page 14 of 15
Exhibit B
D
R
AF
T
Land, Building, Apparatus, Vehicles, and Equipment to be transferred to County.
4936-0829-6574 v1
Page 15 of 15
NB 1
COUNCIL AGENDA ITEM
December 9, 2025
TO:
Honorable Mayor and City Council
FROM:
Christopher Lopez, City Manager
Shannon Hayes, Acting Director of Public Safety
SUBJECT:
A Resolution of the City Council of The City of California City,
California, Authorizing the City Manager to Enter into an
Agreement with Nichols Consulting for a Fixed Fee for Three (3)
Years Not to Exceed $8,000 for the Period Ending June 30, 2027
BACKGROUND/ DISCUSSION:
The City of California City has previously contracted with Nichols Consulting to prepare and
submit claim forms to the State Controller’s Office (SCO) for reimbursement of costs incurred
under SB 90 state-mandated programs, such as the Domestic Violence Arrests and Victim
Assistance Program. Cities and counties that incur increased costs as a result of these mandates
are eligible to submit claims for reimbursement.
Reimbursement requests are based on the City’s ongoing activities related to providing
informational cards to domestic violence victims, as well as the total number of reported responses
to qualifying incidents within the applicable fiscal year. Eligible costs include salaries and benefits
associated with the number of hours worked by officers performing these duties. City staff
provides all supporting documentation to Nichols Consulting for each fiscal year to substantiate
the information included in the claims.
The cost-to-revenue comparison for the last several years is as follows:
• 2021: Expenses $2,400; Revenue $26,915
• 2022: Expenses $2,000; Revenue $18,388
• 2023: Expenses $2,200; Revenue $30,190 (estimated)
• 2024: Expenses $2,400; Revenue $33,130 (estimated)
These figures demonstrate a consistent net positive financial benefit to the City.
FISCAL IMPACT:
Revenues (TBD) for these services will be recorded in account 10-3687. The annual fees for
services for fiscal years ending June 30, 2025 ($2,400), June 30, 2026 ($2,600), and June 30, 2027
($3,000) total a fixed amount of $8,000, which will be budgeted under 10-4212-310.
NB 1
RECOMMENDATION:
Staff recommends that the City Council approve the contract and authorize the City Manager to
enter into an agreement with Nichols Consulting for a three-year term, for a total fixed fee of
$8,000.
ATTACHMENTS:
1. Contract for Professional Services with Nichols Consulting.
2. Resolution, 25-3189
NB 1
3-Year Fixed Fee - $8,000
Nichols Consulting
CONTRACT FOR PROFESSIONAL SERVICES
This Contract is made and entered into this
of
2025, by and between
the City of California City, a city under the laws of the State of California (hereinafter
referred to as “City”) and Nichols Local Government Consulting, LLC (dba “Nichols
Consulting”) a limited-liability company, (hereinafter referred to as “Consultant”).
RECITALS
A. City has the authority to seek reimbursement for certain costs from the State of
California pursuant to California Government Code Section 17550 et seq.
B. City has the authority to contract for the preparation of said Claims through a
designated individual or entity.
C. Consultant is qualified to provide the service of preparing said Claims in consideration
for the fees, expenses, and costs stipulated in this Contract.
Therefore, the parties to this Contract agree as follows:
I. CONSULTANT’S RESPONSIBILITIES
A. Consultant shall review all eligible claiming opportunities and prepare all Claims whose
State-imposed timely and late deadlines, for reimbursement, fall between the time of
execution of this Contract and June 30, 2028. Consultant shall collect, document and
process the information necessary for Consultant to file the claims on behalf of the City.
Separately, Consultant extends to City the option of extending this agreement to June
30, 2029 and separately, June 30, 2030.
B. Consultant will provide City with a copy of Claims and supporting documentation
prepared pursuant to this Contract. The copy will be provided following the state
imposed deadline for said Claims.
C. Consultant shall implement a Claims monitoring and documentation process in the
NB 1
course of Consultant’s duties.
D. Consultant agrees not to exceed the amount of the fee proposal set forth in Appendix
E. 3-Year Fixed Fee - $8,000
A to this Contract without prior written authorization of the City.
F. Consultant will make good faith effort to file Claims in accordance with existing laws,
regulations and applicable written guidelines but does not warrant the reimbursable
nature or likelihood of success of reimbursement of any particular Claim.
G. Consultant shall advise City of all official action which is necessary under applicable
federal and state constitutional provisions, state statutes and regulations, and any other
applicable provisions, in order that City may fulfill its responsibilities as set forth in
Section II, paragraph C of this Contract for Services.
H.
II. CITY’S RESPONSIBILITIES
A. City will provide Consultant with all the documents, records and information necessary
to prepare Claims in a timely manner.
B. City agrees to pay Consultant, a fee of $8,000 for services rendered. Consultant’s fee
is due and payable in three separate installments. The dates of these installment
payments and their respective amounts are: May 31, 2026 ($2,400), May 31, 2027
($2,600) and May 31, 2028 ($3,000). Consultant’s fee is not-to-exceed $8,000.00,
unless approved by City in writing. Additionally, Consultant is separately offering the
City two (2) one-year options for a Fixed Fee of $3,300 each for FY 2028-29 (May 31,
2029) and FY 2029-30 (May 31, 2030) executed solely at the City’s discretion. The
payment of Consultant fee is not dependent on the amount of Claims ultimately
reimbursed by the State of California.
C. City agrees to take that official action which is necessary under applicable federal and
state constitutional provisions, state statutes and regulations, and any other applicable
provisions, to perform its obligations under this Contract in a timely manner.
III. MODIFICATIONS
This Contract may be modified only by a written amendment to this Contract, executed by
both parties.
IV. TERMINATION OF CONTRACT
This Contract may be terminated by mutual written consent or by either party, provided
that the terminating party gives ninety (90) days written notice to the other party, without
NB 1
cause. Upon receipt of a Notification of Termination, Consultant shall promptly
discontinue all services affected. Consultant shall provide the City with all work products
completed up to the date of termination. In the event of termination, City shall reimburse
3-Year Fixed Fee - $8,000
Consultant for all direct service hours on work-in-process at $125.00 per hour. However,
in no event shall City be obligated to pay more than the total amount of the Contract.
V. ATTORNEY’S FEES AND COSTS
In any litigation, arbitration or other proceeding by which one party either seeks to enforce
its rights under this Contract (whether in contract, tort, or both) or seeks a declaration of
any rights or obligations under this Contract, each party shall bear its own attorney fees,
together with any costs and expenses to resolve the dispute and to enforce the final
judgment.
VI. SEVERABILITY
If any term of this contract is held by a court of competent jurisdiction to be void or
unenforceable, the remainder of this Contract shall remain in full force and effect and shall
not be affected.
VII. NOTICES
All notices that are required to be given by one party to the other under this Contract shall
be in writing and shall be deemed to have been given if delivered personally or enclosed in
a properly addressed envelope postage prepaid and deposited with an overnight delivery
service or with a United States Post Office for delivery by first class and certified mail
addressed to the parties at the following addresses, unless such addresses are changed by
notice, in writing, to the other party.
City of California City
Attn: Finance Manager
21000 Hacienda Boulevard
California City, CA 93505
Nichols Consulting
1857 44th Street
Sacramento, CA 95819
VIII. AUTHORITY
The individuals executing this Contract represent and warrant that they have the legal
power and authority to this contract and to contractually bind their respective entities.
NB 1
3-Year Fixed Fee - $8,000
IX. GOVERNING LAW
The validity of this Contract and each of its terms and provisions, as well as the rights and
duties of the parties under this Contract, shall be construed pursuant to and in accordance
with the laws of the State of California.
X. ENTIRE AGREEMENT
This Contract, which includes the “Proposal for Contract for Professional Services” set
forth as Appendix A, supersedes any and all other agreements, whether oral or in writing,
between the parties with respect to the subject of this Contract. This Contract contains all
of the covenants and agreements between the parties with respect to the subject of this
Contract, and each party acknowledges that no representatives, inducements, promises, or
agreements embodied in this Contract. No agreement, statement, or promise not
contained in this Contract shall be valid or binding on the parties with respect to the
subject of this Contract.
Executed at
, California, on the day and year set forth above.
, President
F. Andy Nichols
Nichols Consulting
1857 44th Street
Sacramento, CA 95819
, Title
Print Name
City of California City
NB 1
21000 Hacienda Boulevard
California City, CA 93505
NB 1
3-Year Fixed Fee - $8,000
APPENDIX A
PROPOSAL FOR CONTRACT FOR SERVICES
This proposal for the City of California City is to provide the services set forth under
Paragraph I of the Contract for Professional Services relating to the preparation of Claims for
reimbursement pursuant to California Government Code Section 17550 et seq.
Consultant’s fee shall be $8,000.00, for claims prepared on behalf of the City beginning
with the time of execution of this Contract and ending June 30, 2028. Consultant’s fee is due
and payable in three separate installments. The dates of these installment payments and their
respective amounts are: May 31, 2026 ($2,400), May 31, 2027 ($2,600) and May 31, 2028
($3,000). Consultant’s fee is not-to-exceed $8,000.00, unless approved by City in writing.
Additionally, Consultant is separately offering the City two (2) one-year options for a Fixed
Fee of $3,300 each for FY 2028-29 (May 31, 2029) and FY 2029-30 (May 31, 2030) executed
solely at the City’s discretion.
This Proposal is valid until December 19, 2025 unless extended in writing by Consultant.
December 3, 2025
, President
F. Andy Nichols
Nichols Consulting 1857
44th Street
Sacramento, CA 95819
NB 1
RESOLUTION NO. 25-3189
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALIFORNIA CITY, CALIFORNIA, AUTHORIZING THE CITY
MANAGER TO ENTER INTO AN AGREEMENT WITH NICHOLS
CONSULTING FOR A FIXED FEE FOR THREE (3) YEARS NOT
TO EXCEED $8,000 FOR THE PERIOD ENDING JUNE 30, 2027
The City Council of the City of California City (hereafter referred to as the “City Council”)
does resolve as follows:
WHEREAS, the City of California City authorizes the City Manager to enter into
contracts on behalf of the City, including previous agreements with Nichols Consulting to seek,
prepare, and submit claim forms to the State Controller’s Office (SCO) for reimbursement of
costs incurred for SB 90 state-mandated programs, such as the Domestic Violence Arrests
and Victim Assistance Program; and,
WHEREAS, the purpose of this contract is to submit reimbursement claims based on
ongoing activities, including providing informational cards to victims of domestic violence, and
documenting reported responses to related incidents during the fiscal year of the claim; and,
WHEREAS, such reimbursement costs include salaries and benefits for the number of
hours worked in a fiscal year by an officer; and
WHEREAS, the City provides records to Nichol’s Consulting for each fiscal year to
support the information in the claims; and,
WHEREAS, the annual fees for the services rendered by Nichols Consulting for fiscal
years ending June 30, 2025 ($2,400), June 30, 2026 ($2,600), and June 30, 2027 ($3,000)
will be for a fixed fee not to exceed $8,000; and
NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE
CITY COUNCIL OF THE CITY OF CALIFORNIA CITY, CALIFORNIA, AS FOLLOWS:
SECTION 1: The above recitals are true and correct.
SECTION 2: The City Council authorizes the City Manager to execute an agreement
with Nichols Consulting for a fixed fee not to exceed $8,000 for a three-year term, for the
preparation and submission of claims to the State Controller’s Office (SCO) for SB 90-related
costs.
SECTION 3: City Clerk shall certify to the passage and adoption of the Resolution
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
California City, this 9th day of December 2025.
NB 1
__________________________
Marquette Hawkins
Mayor
ATTEST:
APPROVED AS TO FORM:
___________________________
Leanndrea Weible
Acting City Clerk
__________________________
Victor M. Ponto,
City Attorney
[THIS SPACE INTENTIONALLY LEFT BLANK]
NB 1
CERTIFICATION
I, Leanndrea Weible, Acting City Clerk of the City of California City, California, hereby
certify that the foregoing resolution was duly adopted at a meeting of the City Council of
said City at its meeting held on the 9th of December 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal
of the City of California City, California, this 9th day of December 2025.
__________________________
Leanndrea Weible
Acting City Clerk
NB 2
COUNCIL AGENDA ITEM
December 9, 2025
TO:
Honorable Mayor and Members of the City Council
SUBJECT:
Letter of Intent- Echols Group
ATTACHMENTS:
1. Letter of Intent
Microgrid Letter of Intent
Robert Babcock, CEO
Verdant Microgrid, LLC
7272 Wisconsin Avenue
Suite 900
Bethesda, MD 20814
November 24, 2025
The Honorable Marquette Hawkins, Mayor
Mr. Christopher Lopez, City Manager
City of California City
21000 Hacienda Blvd
California City, CA 93505
Dear Mr. Hawkins and Mr. Lopez:
This Letter is to show the Intent of Verdant Microgrid, LLC (“Verdant”) and the City of California
City (“Customer”) (together, the “Parties”) to pursue, analyze, negotiate, and agree on the terms
and conditions by which Verdant shall design, develop, finance, construct, own and operate one
or more microgrids on vacant land owned by the city or one of its subdivisions within the city
boundaries of California City, CA, United States.
Verdant has obtained various information on the energy supply, use and growth of California City
and discussed the goals that California City would like to achieve for its energy supply with the
California City Development Association. Verdant has conveyed the economic and operational
benefits of a microgrid located on one or more city-owned parcels within the boundaries of
California City and has made multiple iterations of potential recommended configurations.
Verdant’s initial evaluations of the information available to it about Customer’s electric situation
and further investigation into the preliminary design of one or more power generation facilities has
yielded the following conclusions:
•
•
•
•
Customer is an incorporated city in the state of California with a population of
approximately 10,000 citizens and has taken the steps to create a municipal power authority
to purchase energy and supply electricity to residents of California City;
The current power supply for the city is from Southern California Edison (SCE) and the
electric service provided by SCE is unacceptable for the following reasons (among others):
o Power is expensive
o Power is unreliable
o Expansion of power supplies is uneconomical
Customer desires a solution that achieves multiple goals:
o Improve sustainability – carbon reduction;
o Improve resiliency – improved power quality; and
o Reduce energy costs.
Verdant’s research has indicated the following costs for energy (based on SCE’s TOU-8
tariff for service over 50 kV):
Confidential
1
© Verdant Microgrid, LLC, All Rights Reserved
•
o A range of $.067 to $.12 per kWh - Electricity kWh charges with a weighted
average of $.089 across all hours of the year;
o A range of $19.49/kW/Mo to $39.13/kW/Mo –Demand Charges
The city is expected to consume approximately 100,000,000 kWh per year currently with
economic growth intended to double or triple this use – or expand it even more if a large
consumer like a data center can be attracted to the city;
This Letter of Intent outlines the broad process by which the Parties will agree to cooperate to
finalize a transaction where Verdant builds, owns and operates one or more microgrids at locations
within California City. Verdant’s proposal is to design, build, own and operate the microgrid and
to sell the output from the systems to Customer under a long-term Energy Services Agreement on
terms that reduce the city’s all-in energy costs. With the exception of the Exclusivity Period below,
this Letter of Intent is non-binding to the Parties.
Exclusivity Period
By executing this Letter of Intent, Customer agrees to grant an exclusivity period of three hundred
sixty (360) days from the date hereof to Verdant to analyze, investigate and prepare a microgrid
project term sheet for consideration by Customer. Should the parties agree to proceed, such Term
Sheet will contain further exclusivity periods to come to agreement on and to close a transaction.
Initial Proposed Transaction (subject to additional diligence and analysis)
Location:
A TBD parcel within the boundaries of California
City, CA
The City of California City (or one of its agencies
or subdivisions)
Verdant Microgrid, LLC
Clean, reliable, locally sourced energy supply at a
rate less expensive than SCE rates
Solar and Energy Storage
145,000 kW Solar (~360,000,000 kWh/yr)
347,000 kWh of Energy Storage
~$4,100,000 per year (compared to SCE current
rates)
$250,000,000
20 years
$.15 / kWh increasing at 2.5% per year
$10.00 / kW /Month increasing at 2.5% per year
None
Facility will be 100% operated and maintained by
Verdant
Power Offtaker:
Project Proposer:
Economic Goal:
Technology:
Capacity:
Expected Electricity Cost Benefit:
Estimated Capital Cost (Verdant’s expense):
ESA Term:
Electricity ESA Rate:
ESA Demand Rate:
Fuel Costs:
Operations and Maintenance:
Confidential
2
© Verdant Microgrid, LLC, All Rights Reserved
Economic Analysis of the Project
Economic Projections Across Broader Portfolio
The above tariff rates are taken from SCE’s most recent Rate Book for the Large General Service
category for Time Of Use rates for service provided at 50 kV and above. This is the equivalent of
SCE’s best rate. By calculating the cost of what power provided at these rates would be to
California City for 20 MW of load, we have calculated the minimum savings to citizens of
California City would be approximately $4,100,000 per year (with the SCE rates historically
increasing much faster than the proposed inflation in the ESA.
Resiliency and Environmental Analysis of the Project
The city resides in a state with a relatively low carbon intensity for its grid operations. California’s
recently stated emissions were 261 kg/MWh of consumed electricity. The proposed microgrid is
expected to generate over 305,000 MWh annually with 43% of that energy curtailed due to
seasonality. Thus, the offset of carbon emissions is calculated on the used electricity, which is
projected to equal 174,000 MWh. The result is that the proposed microgrid is projected to reduce
the carbon emissions of California City by approximately 45,600 MT per year.
Agreement to Share Information with Verdant Engineering/Legal Teams
Verdant will rely on its engineering design teams to assist in the finalization of the design and
analysis of the benefits of the microgrid. Initially, this team will consist of:
•
•
Engineering personnel from our Energy Storage providers (BESS suppliers)
Engineering and project design personnel from one or more Engineering Procurement
and Construction contractors (EPC)
Subject to the non-disclosure agreement executed by the Parties, the Parties agree to share
information about current and future power requirements for California City, the electrical
infrastructure located within the city boundaries, and the contractual structure of a transaction.
Specifically, Customer agrees to provide to Verdant the following information in as timely a
manner as commercially possible:
•
Details regarding the operation of the municipal load serving entity, including but not
limited to:
o Authority to engage in retail sales of electricity
o Current operations or future planned operations
Confidential
3
© Verdant Microgrid, LLC, All Rights Reserved
•
•
•
•
•
o Existing electricity distribution assets
o Power load profiles
o Potential for load increases or shedding
o Potential outages
Land availability and any survey and/or environmental data on specific parcels;
Site and system schematics, drawings, and plans as may be reasonably requested by
Verdant;
Financial and business information of Customer for purposes of a credit analysis,
including any financial statements, and information on debt instruments such as
mortgages, asset-backed-loans, bonds, etc.;
Site and equipment access for Verdant and its employees, consultants, contractors,
financiers and advisors; and
Any other material and relevant information that Verdant may reasonably request.
Site Access Procedures
Verdant and its contractors will require site access to prepare and provide the analysis and final
proposal to Customer. This Letter of Intent explicitly grants such access; provided, however,
that Verdant must exercise reasonable commercial judgement to not unduly interfere with the
ongoing operations of any Customer facility, must comply with Customer’s and Customer’s
representative’s instructions at all times when conducting any site visit (including instruction
about safety and security) and must provide reasonable notice for any site visits, keep any visits
to the minimum number and length of time required to analyze the site, and use reasonable
judgement to minimize the attendees of any site visit.
______________________________________
By affixing their signatures below, the Parties hereby agree to the terms of this Letter of Intent
and to proceed with the development of the potential project referenced above.
______________________
By: Robert Babcock
CEO
Verdant Microgrid, LLC
______________________
By:
Title:
California City
Confidential
4
© Verdant Microgrid, LLC, All Rights Reserved
The government’s own published record — read it yourself, then decide what to do about it.
The facilities, the coverage, and the local record for this community.
Not yet recorded. The record stays open — outcomes are added as minutes and vote results are published.
Provenance
Where this record came from. Every source is listed, permanently.
- Agenda Watch · Jul 20, 2026
Permanent ID DKT-2026-000016 — this record is never deleted.
Record history
Every change to this record, logged as it happened.
- Jul 20, 2026 Filed on the Docket
- Jul 20, 2026 Full document archived — public record
← The full Docket · every meeting, vote, and action on the permanent record · also in the National Record Index.