CITY COUNCIL MEETING OPEN SESSION - IN PERSON AND - TELECONFERENCE - 1-669-900-6833 - Webinar ID: 931 4644 4676 - Passcode: 7601 -https://zoom.us/j/93146444676?pwd=YVU5anBFak1xSFZ4emNnNW9FNExiQT09

AGENDA REGULAR MEETING OF THE ADELANTO CITY COUNCIL, ADELANTO PUBLIC FINANCING AUTHORITY, ADELANTO PUBLIC UTILITY AUTHORITY, ADELANTO COMMUNITY BENEFIT CORPORATION, AND THE SUCCESSOR AGENCY BOARD August 28, 2024 City Council Gabriel Reyes, Mayor Daniel Ramos, Mayor Pro Tem Joy Jeannette, Councilor Angelo Meza, Councilor Amanda Uptergrove, Councilor City Manager Jessie Flores City Attorney Todd Litfin Meetings held: 2nd & 4th Wednesday Adelanto Governmental Center City Council Chambers 11600 Air Expressway, Adelanto Closed Session: 6:00 p.m. Open Session: 7:00 p.m. NOTE: PLEASE TURN CELL PHONES OFF OR PLACE THEM ON VIBRATE DURING THE CITY COUNCIL MEETING AS A COURTESY TO OTHERS. Thank you, Administrative Staff The City Council Agenda packet may be reviewed by the public at the reception counter in City Hall. Any writings or documents pertaining to an open session item, provided to a majority of the City Council within 72 hours of a regular meeting, shall be made available for public inspection at the reception counter in City Hall at 11600 Air Expressway, Adelanto, CA 92301, during normal business hours. Members of the public can view the agenda or download any staff reports in advance by accessing the City website at www.ci.adelanto.ca.us on Thursday the week before the scheduled meeting. The public may view the meeting or participate / comment remotely as follows: • All of our meetings are streamed live at https://adelanto.granicus.com/ViewPublisher.php?view_id=1 and are also available for playback after the meeting. • Participate via zoom please log in using any of the options below: • Teleconference https://zoom.us/j/93146444676?pwd=YVU5anBFak1xSFZ4emNnNW9FNExiQT09 Or Telephone: 1-669-900-6833 Webinar ID: 931 4644 4676 Passcode: 7601 Submit written comments: We encourage submittal of written comments supporting, opposing, or otherwise commenting on an agenda item, for distribution to the City Council prior to the meeting. Send emails to blopez@ci.adelanto.ca.us; written correspondence may be sent to Brenda Lopez, 11600 Air Expressway Adelanto CA 92301.1

REGULAR MEETING August 28, 2024 11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us Rules of Decorum “Members of the Public are advised that all PAGERS, CELLULAR TELEPHONES and any OTHER COMMUNICATION DEVICES are to be turned off upon entering the City Council Chambers.” If you need to have a discussion with someone in the audience, kindly step out into the lobby. Under the Government Code, the City Council may regulate disruptive behavior that impedes the City Council Meeting. Disruptive conduct may include, but is not limited to: • Screaming or yelling during another audience member’s public comments period; • Profane language directed at individuals in the meeting room; • Throwing objects at other individuals in the meeting room; • Physical or verbal altercations with other individuals in the meeting room; and • Going beyond the allotted three-minute public comment period granted. When a person’s or group’s conduct disrupts the meeting, the Mayor or presiding officer will request that the person or group stop the disruptive behavior, and WARN the person or group that they will be asked to leave the meeting room if the behavior continues. If the person or group refuses to stop the disruptive behavior, the Mayor or presiding officer may order the person or group to leave the meeting room, and may request that those persons be escorted from the meeting room. Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403.) It should also be noted that any person who WILLFULLY disturbs or breaks up the City Council meeting may be arrested for a misdemeanor offense. (Penal Code, § 403.) MEMBERS OF THE PUBLIC WISHING TO ADDRESS THE CITY COUNCIL MEMBERS ARE REQUIRED TO FILL OUT A SPEAKER REQUEST FORM AND PLACE IT IN THE TRAY ON THE PODIUM PRIOR TO MEETING. Thank you, Administrative Staff The City Council packet may be reviewed by the public at the reception counter in City Hall. Any writings or documents pertaining to an open session item, provided to a majority of the City Council Members within seventy-two (72) hours of a Regular Meeting and twenty-four (24) hours of a Special Meeting. Members of the public can view the agenda or download any staff reports in advance by accessing the City’s website at www.ci.adelanto.ca.us on the Thursday of the week before the scheduled meeting. AMERICANS WITH DISABILITIES ACT: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (760) 246-2300, ext. 11123, no later than seventy-two (72) hours prior to the meeting per 28 CFR 34.102.104.2

REGULAR MEETING August 28, 2024 11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us TIME: _____________ ROLL CALL: Councilor Jeannette ________ Councilor Meza ________ Councilor Uptergrove ________ Mayor Pro Tem Ramos ________ Mayor Reyes ________ 1. City Manager to announce if there is any addition/removal of items from the agenda. C. APPROVAL OF AGENDA D. ANNOUNCEMENT OF CLOSED SESSION ITEMS 1. CONFERENCE WITH LEGAL COUNSEL − EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE §54956.9(d)(1). (one case) • Andrew Monroy v. City of Adelanto, (ADJ17629859; ADJ14576149 – Claim No: 22-1644001) E. PUBLIC COMMUNICATION ON CLOSED SESSION ITEMS F. CONVENE INTO CLOSED SESSION TIME: _____________ 1. Motion to go into Closed Session. M__________________S__________________ACTION_________________ A. CALL TO ORDER—CLOSED SESSION B. DELETIONS/ADDITIONS TO AGENDA3

REGULAR MEETING August 28, 2024 11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us TIME: _____________ ROLL CALL: Councilor Jeannette ________ Councilor Meza ________ Councilor Uptergrove Mayor Pro Tem Ramos ________ Mayor Reyes ________ INVOCATION: FLAG SALUTE: ______________________ H. CLOSED SESSION REPORT I. CITY MANAGERS ANNOUNCEMENTS AND REPORT J. CITY COUNCIL ANNOUNCEMENTS AND REPORTS K. PRESENTATIONS 1. Presentation by Captain Lutz - Cutting Edge Surgical Medical Group Providence St. Mary’s Apple Valley Trauma Program. L. PUBLIC COMMUNICATIONS This is the time and place for members of the public to comment on any matter within the jurisdiction of the City Council. Members of the public wishing to address the City Council Members on items not on the agenda can push *9 on their telephones to raise their hands. The City Clerk will call on you in the order received. You will be asked to un-mute - to do so you must push *6. Please state your name for the record. There is a time limit of three (3) minutes. Members of the audience may address the City Council on non-agenda items; however, in accordance with Government Code section 54954.2, the City Council may not take action on an item not appearing on the agenda G. CALL TO ORDER—REGULAR MEETING4

REGULAR MEETING August 28, 2024 11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us M. CONSENT CALENDAR Items on the Consent Calendar are considered routine in nature and non-controversial and require no further discussion by the City Council. They may be acted on in one motion unless a member of the City Council requests a separate discussion on an item. MOTION APPROVING THE CONSENT CALENDAR AS PRESENTED 1. Waiver of Full Reading of Ordinances. Proposed action to waive full reading (except title) of all ordinances appearing on this City Council agenda as authorized by Government Code Section 36934, unless otherwise directed by the City Council. 2. Receive and File Commercial and Residential recycling report. 3. Approval of Letter of Commitment Choir Corp. and Think Watts Foundation. 4. Approval of authorization to submit AB102 Tire Collection Bounty Grant Program DA3 application. 5. Authorization to engage extend contract with Kosmont financial services to provide operational and strategic consulting service. 6. Approval of Warrant Demand Schedule 24/25-02-02: a. City of Adelanto Check Warrant No. 150639 through 150707 in the total amount of $194,351.69. b. City of Adelanto EFT No. 2366 through 2458 in the total amount of $4,892,389.06 M__________________S__________________ACTION_______________ N. ADELANTO PUBLIC UTILITY AUTHORITY CONSENT CALENDAR Items on the Consent Calendar are considered routine in nature and non-controversial, and require no further discussion by the City Council. They may be acted on in one motion unless a member of the City Council requests a separate discussion on an item. PUBLIC COMMENT: OPEN: CLOSED: 1. Waiver of Full Reading of Ordinances. Proposed action to waive full reading (except title) of all ordinances appearing on this APUA agenda as authorized by Government Code Section 36934, unless otherwise directed by the APUA. 2. Approval of Water Department Report. 3. Approval of Sewer Department Report.5

REGULAR MEETING AUGUST 28, 2024 11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us 3. Authorization to engage extend contract with Kosmont financial services to provide operational and strategic consulting service. M__________________S__________________ACTION__________________ O. PUBLIC HEARING 1. CONSIDERATION OF A RESOLUTION AUTHORIZING PARTICIPATION IN THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY (“CEDA”) BONDS ASSISTING NEW DEVELOPMENT PROGRAM (“BAND”) PROGRAM. (JULIO) RECOMMENDATION: It is recommended that the City Council adopt Resolution No. 24-79 authorizing the participation in the California Enterprise Development Authority (“CEDA”) Bonds Assisting New Development Program (“BAND”) Program to facilitate the formation of a Community Facilities District (“CFD”) and the issuance of tax-exempt CFD Bonds or Mello Roos Bonds. 2. RESOLUTION NO. 24-79 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ADELANTO, CALIFORNIA, MAKING A DECLARATION OF OFFICIAL INTENT TO REIMBURSE FACILITIES EXPENDITURES WITH BOND PROCEEDS AND RELATED ACTIONS M__________________S__________________ACTION__________________ ALL AGENCY BUDGETS FOR FISCAL YEAR 2024-25. (FINANCE TEAM) RECOMMENDATION: Staff recommends the City Council, acting as the City Council, Adelanto Community Benefit Corporation Board, and Adelanto Public Utility Authority Board, approve: Resolution No. 24-76: Approving the Fiscal Year 2024-25 Annual Budget for the City of Adelanto and Adelanto Community Benefit Corporation. Resolution No. 24-77: Approving the Appropriations Limit for the City of Adelanto. Resolution No. APUA 24-04: Adopting the Fiscal Year 2024-25 Annual Budget for the Adelanto Public Utility Authority.6

REGULAR MEETING AUGUST 28, 2024 11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us RESOLUTION NO. 24-76 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ADELANTO, COUNTY OF SAN BERNARDINO, CALIFORNIA, AND THE ADELANTO COMMUNITY BENEFIT CORPORATION, APPROPRIATING FUNDS FOR THE MUNICIPAL GENERAL AND SPECIAL FUNDS, OTHER FUNDS BUDGET AND ADOPTING THE APPROPPRIATIONS LIMIT FOR FISCAL YEAR 2024-25 RESOLUTION NO. 24-76 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ADELANTO, COUNTY OF SAN BERNARDINO, CALIFORNIA, ADOPTING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 24-25 RESOLUTION NO. APUA 24-04 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ADELANTO PUBLIC UTILITY AUTHORITY APPROPRIATING FUNDS FOR THE PUBLIC UTILITY AUTHORITY FOR FISCAL YEAR 2024-25 M__________________S__________________ACTION__________________ P. NEW BUSINESS PUBLIC COMMENT: OPEN: CLOSED: 1. DISCUSSION AND ACTION ITEM – Donation to Adelanto Warriors football (Jessie) RECOMMENDATION: Staff recommends that the City Council provide staff direction on the donation to Victorville/Adelanto Warriors. M__________________S__________________ACTION__________________ PUBLIC COMMENT: OPEN: CLOSED: 2. DISCUSSION AND ACTION ITEM – Sponsorship High Desert Hispanic Chamber of Commerce (Jessie) RECOMMENDATION: Staff recommends that the City Council provide staff direction on the sponsorship amount for High Desert Hispanic Chamber of Commerce. M__________________S__________________ACTION__________________7

REGULAR MEETING AUGUST 28, 2024 11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us 3. DISCUSSION AND ACTION ITEM – SEMI-ANNUAL CITY WIDE YARDSALE (Jessie) RECOMMENDATION: Staff recommends that the City Council provide staff direction on the Citywide yard sale. M__________________S__________________ACTION__________________ 4. DISCUSSION AND ACTION ITEM – RESOLUTION 24-80 - CHANGING TIMES OF CITY COUNCIL MEETINGS. (Jessie) RECOMMENDATION: Staff recommends that the City Council provide staff direction on start times of the City Council Meetings. M__________________S__________________ACTION__________________ 5. DISCUSSION ITEM – FOOD TRUCK ORDINANCE (Jessie) RECOMMENDATION: Staff recommends that the City Council provide staff direction on updating our food truck ordinance. M__________________S__________________ACTION__________________ Q. ITEMS REMOVED FROM THE CONSENT CALENDAR R. FUTURE AGENDA ITEMS City Councilmembers may request to receive a report, schedule a study session, or to place an item on a future City Council agenda regarding matters within the jurisdiction of the City Council. Requests require a motion, a second, and a majority vote of the City Council. Individual requests should be voted on separately. The City Manager shall work with City staff to respond to inquiries and requests as soon as practicable in an appropriate manner.8

REGULAR MEETING AUGUST 28, 2024 11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us S. PUBLIC COMMUNICATIONS This is the time and place for members of the public to comment on any matter within the jurisdiction of the City Council. Members of the public wishing to address the City Council Members on items not on the agenda can push *9 on their telephones to raise their hands. The City Clerk will call on you in the order received. You will be asked to un-mute - to do so you must push *6. Please state your name for the record. There is a time limit of three (3) minutes. Members of the audience may address the City Council on non-agenda items; however, in accordance with Government Code section 54954.2, the City Council may not take action on an item not appearing on T. ADJOURNMENT The next Regular Meeting of the City Council will be held on September 11, 2024, at 7:00 p.m. TIME OUT: M__________________S__________________ACTION____________________ I, BRENDA LOPEZ, CITY CLERK OF THE CITY OF ADELANTO, OR MY DESIGNEE, HEREBY CERTIFY THAT A TRUE, ACCURATE COPY OF THE FOREGOING AGENDA WAS POSTED ON AUGUST 24, 2024, SEVENTY-TWO (72) HOURS PRIOR TO THE MEETING PER GOVERNMENT CODE 54954.2 IN THE GOVERNMENTAL CENTER’S DISPLAY CASE, 11600 AIR EXPRESSWAY, THE ADELANTO POST OFFICE, AND ADELANTO LIBRARY IN ADELANTO, CALIFORNIA. Brenda Lopez, City Clerk T. DECLARATION OF POSTING9

REGULAR MEETING AUGUST 28, 2024 11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us YOUR CITY GOVERNMENT CHARTER CITY: Ratified by the electors of the City at an election on November 3, 1992. “A Charter City can do what the Charter permits it to do, so long as there is not direct violation of the State Constitution.” CITY COUNCIL: The City Council is the legislative and policy-making body of the City. The City Council is composed of one elected Mayor and four Council Members, elected at large (to represent the entire City), to serve four (4) year, staggered terms. CITY MANAGER: The City Manager is the chief executive officer responsible for the day-to-day administration of City affairs. CITY COUNCIL MEETING: The regular meeting of your City Council is a vital part of the democratic process in the conduct of the City’s affairs. These meetings are open to the public and conducted by your elected representatives who are responsible, as a body, for the operation of Adelanto’s City government. The City Council appreciates your interest and urges citizen participation in government matters. LEGISLATIVE TERMS ORDINANCES: Ordinances are the means by which the City enacts its local laws. Unless an urgent situation exists, ordinances will first be presented at a City Council meeting as a “first reading.” At a subsequent City Council meeting, there will be a “second reading” and vote for or against adoption. Ordinances go into effect after a waiting period of thirty (30) days, in most cases, during which time the summary of the ordinance is published in a local newspaper approved for this purpose. RESOLUTIONS: Resolutions and minute orders are the means by which the City Council formally adopts policies and/or approves specific actions. These go into effect upon adoption10

Adelanto City Hall ~ 11600 Air Expressway, Adelanto, CA 92301 ~ (760) 246-2300 ~ Fax (442) 249-1121 REGULAR MEETING OF THE ADELANTO CITY COUNCIL ADELANTO PUBLIC FINANCING AUTHORITY, ADELANTO PUBLIC UTILITY AUTHORITY, ADELANTO COMMUNITY BENEFIT CORPORATION, AND THE SUCCESSOR AGENCY BOARD August 28, 2024 All of our meetings are streamed live at https://adelanto.granicus.com/ViewPublisher.php?view_id=1 and are also available for playback after the meeting. Participate via zoom please log in using any of the options below: Teleconference https://us06web.zoom.us/j/93146444676?pwd=YVU5anBFak1xSFZ4emNnNW9FNExiQT09 TIME TELECONFERENCE To Participate and and Call in for public comments: Closed Session – 6:00 p.m. Please call 1-669-900-6833 along with conference code 931 4644 4676 Open Session – 7:00 p.m. Passcode: 7601 Dated: August 24, 2024 Brenda Lopez, City Clerk, CMC11

CITY COUNCIL AGENDA REPORT | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1 DATE: August 28, 2024 TO: Honorable Mayor and City Council Members FROM: Jessie Flores, City Manager BY: Brenda Lopez, City Clerk SUBJECT: MONTHLY COMMERCIAL & RESIDENTIAL SOLID WASTE AND RECYCLING REPORT STAFF RECOMMENDATION: Receive and file. ATTACHMENTS: 1. Burrtec’s Monthly Commercial and residential Solid Waste and Recycling Report12

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CITY COUNCIL AGENDA REPORT | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1 DATE: August 28, 2024 TO: Honorable Mayor and City Council Members FROM: Jessie Flores, City Manager BY: Brenda Lopez, City Clerk/Director of Governmental Services SUBJECT: APPROVAL OF AUTHORIZATION TO SUBMIT AB102 TIRE COLLECTION BOUNTY GRANT PROGRAM DA3 APPLICATION STAFF RECOMMENDATION: It is recommended that the City Council approve the attached resolution to authorize the submission of an application for the AB102 Tire Collection Bounty Grant Program DA3 and designate the City Clerk or their designee as Signature Authority for all grant-related document. BACKGROUND The California Public Resources Code empowers the Department of Resources Recycling and Recovery (CalRecycle) to manage various Grant Programs aimed at supporting environmental and recycling initiatives. In alignment with this mandate, CalRecycle has established procedures for administering these grant programs. The AB102 Tire Collection Bounty Grant Program DA3 is designed to support tire collection and recycling efforts. This program permits cooperative grant projects, allowing multiple entities to collaborate on grant applications. In order to comply with CalRecycle’s grant application procedures, it is necessary for the governing body of each cooperative applicant to adopt a resolution. This resolution must authorize specific individuals to manage and execute all required documentation and actions related to the grant To facilitate the City of Adelanto’s participation in the AB102 Tire Collection Bounty Grant Program DA3, the City Council is requested to adopt the attached resolution. The resolution authorizes the City of Adelanto to: 1. Submit the Grant Application: The City of Adelanto will act as the Lead Participant in the grant application, with the High Desert Keepers Organization serving as Non-Lead Participants. 2. Designate Signature Authority: The City Clerk or their designee will be empowered to sign all necessary grant-related documents, including but not limited to applications, payment requests, agreements, and amendments. 3. Duration of Authorization: These authorizations will remain effective for the entire duration of the grant term.34

This resolution ensures that the City of Adelanto can effectively manage and execute the grant application and administration processes, streamlining the implementation of the approved grant projects. FINANCIAL IMPACT There are no direct financial impacts associated with the adoption of this resolution. However, successful receipt of the grant funds will provide financial support for the tire collection and recycling program, benefiting the community and enhancing environmental sustainability. ATTACHMENTS 1. Resolution No. 24-78 Authorizing Grant Application and Signature Authority35

RESOLUTION NO. 24-78 A RESOLUTION OF THE CITY OF ADELANTO AUTHORIZING SUBMITTAL OF A COOPERATIVE GRANT APPLICATION Whereas, the California Public Resources Code authorizes the Department of Resources Recycling and Recovery (CalRecycle) to administer various Grant Programs; and Whereas, in furtherance of this authority, CalRecycle is required to establish procedures governing the administration of the Grant Programs; and Whereas, AB102 Tire Collection Bounty Grant Program DA3 allows cooperative grant projects; and Whereas, CalRecycle grant application procedures require, among other things, a cooperative applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle Grants. Now, therefore, be it resolved that the City of Adelanto City Council authorizes the City of Adelanto to submit a AB102 Tire Collection Bounty Grant Program DA3 application on behalf of itself as Lead Participant and on behalf of the High Desert Keepers Organization as Non-Lead Participants. Be it further resolved that the City Clerk or their designee, are hereby authorized as Signature Authority to execute on behalf of all participants all grant- related documents, including, but not limited to, applications, payment requests, agreements, and amendments necessary to secure grant funds and to implement the approved grant project(s). Be it further resolved that these authorizations are effective for the duration of the grant term. Date Adopted August 28, 2024 Certified by Brenda Lopez, City Clerk PASSED, APPROVED AND ADOPTED this 28th day of August, 2024. ______________________________ Gabriel Reyes, Mayor _______________________________ Brenda Lopez, City Clerk36

Resolution No. 24-78 Page 3 I, Brenda Lopez, City Clerk of the City of Adelanto, California, do hereby certify that the foregoing Resolution No. 24-78 was duly and regularly adopted at a regular meeting of the City Council of the City of Adelanto on this 28th day of August, 2024 be the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS THEREOF, I hereunto set my hand and affix the official seal of the City of Adelanto on the 28th day of August, 2024 ______________________________ Brenda Lopez, City Clerk37

CITY COUNCIL AGENDA REPORT | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1 DATE: August 28, 2024 TO: Honorable Mayor and City Council Members FROM: Jessie Flores, City Manager BY: Julio Morales, Kosmont Financial Services SUBJECT: AUTHORIZATION TO ENGAGE EXTEND CONTRACT WITH KOSMONT FINANCIAL SERVICES TO PROVICE OPERATIONAL AND STRATEGIC CONSULTING SERVICES. STAFF RECOMMENDATION: It is recommended that the City Council authorize the City Manager to Extend the Contract with Kosmont Financial Services dated May 23, 2024, to continue to provide operations and strategic consulting services to continue Phase 2 implementation. BACKGROUND: The initial engagement with Kosmont Financial Services (“Kosmont”) commenced on April 2, 2024. This initial engagement was to provide an assessment of the City’s financial condition and to develop a work plan to have the City get up to date with its financial reporting requirements (i.e., audits). We outlined four long-term objectives: 1. Evaluate and assess the Finance Department’s current audit process and develop a strategy and recommendations to accelerate the completion of the FY 21-22, FY 22-23, and FY 23-24 financial reports. 2. Evaluate the organizational structure and resources of the Finance Department and develop a list of actions and recommendations to ensure that the City can meet its financial compliance requirements in the future. 3. Evaluate the financial position of the General Fund, Water & Wastewater Fund, and Special Revenue Funds, to identify areas of concern or improvement. 4. Develop strategic recommendations to improve the City and Enterprise Fund’s financial position. At the end of May, Kosmont developed an implementation plan, “Phase 2” as the assignment. The implementation plan, outlined 5 Tasks: • Task 1 - Financial Assessment • Task 2 - Development of Capital Improvement Plan (CIP) • Task 3 - Completion of FY 22 and FY 23 Audit • Task 4 - Development of FY24 Budget • Task 5 - Additional Projects38

City Staff, Kosmont, and RAMS (the CPA firm hired to provide additional accounting services) developed an implementation timeline at the outset of Phase 2 for the completion of the FY 22 and FY 23 audit. The goal was to complete the FY22 audit near the end of the summer and FY23 by the end of the calendar year. The Kosmont and RAMS team has been able to meet its major milestones to date and accelerate the process to complete the FY22 audit at a fraction of the time of prior staff. The City wishes to continue our progress and therefore extend Kosmont’s contract to continue its role in Phase 2 implementation. Project Update: FY21 Single Audit - The first goal of the Phase 2 implementation was to complete the Single Audit and other required reporting for FY 21 by the end of June/July. The Single Audit was provided to the San Bernadino County Transportation Authority (SBCTA) in July, which resulted in the SBCTA releasing $440,000 in FY 21-22 Measure I monies to the City. FY22 Audit - The next goal was to provide the City’s Audit Firm, The Pun Group, the Trial Balance for the FY22 audit by the end of July. This week, RAMS submitted the FY22 Trial Balance to the Pun Group. The Pun Group is expecting to complete the FY22 audit within the next 60-to-90-days and the Single Audit, if necessary, shortly thereafter. Although the team has made significant progress compared to prior years, the team’s progress is not without its challenges. Due to staff turnover (as well as oversights and errors made in prior years), we have found numerous issues that need to be corrected, which have caused delays in our progress and/or require us to take a step backward. RAMS has identified an issue with the projected cash balances in FY22. Once they address these issues to the auditor’s satisfaction, we will commence working on the preparation of materials for the FY23 audit. The goal is to complete the preparation of these materials by October to have the auditor complete the FY23 audit by year end. We have solicited a proposal from The Pun Group to provide audit services for FY 23 and FY 24 to ensure continuity of service. FY24-25 Continuation Budget and Amended Budget – The City passed a Continuation Budget in June for FY24-25, with the expectation that we would return with an Amended Budget by the end of August. Kosmont’s next Task is to present an Amended FY24 Budget at the August 28th City Council meeting; and to help to identify additional 1-time funding sources to bridge a $4-5 million budget gap for the current fiscal year, which includes proceeds from 2009 APUA Bonds, Administrative Expenses from the RDA, excess reserves from the 2017 APUA bonds, and proceeds from 2016 CFD bonds among others. The ability to provide accurate budget projections is integrally tied to the reliability of financial reporting data. Therefore, we expect that FY 24-25 budget will require continual adjustments as we obtain more accurate data from the completed audits (FY 22 and FY 23) through the year. To date, Kosmont has also reviewed the status of several grant programs (Measure I, SB-1 Article 8, and CDBG) and subsequently developed a 1-year CIP, addressed several additional matters (GEO Contract, 2007 TABs, PERC RFP), and identified numerous areas that need to be improved/addressed or corrected. Phase 2 implementation and the FY23 audit is expected to be completed by the end of December. We appear to be progressing toward this date. Kosmont’s May 2024 proposal for $60,000 was designed as an initial step in the implementation process, with the goal of moving the City toward the completion of39

the FY 22 audit. The City wants to continue its progress and therefore extend Kosmont’s contract to continue working on Phase 2 implementation. Kosmont’s immediate focus will be to onboard the new Finance Manager and the preparation of the FY24 Amended Budget. We will continue to coordinate with RAMS to ensure issues are resolved for the FY23 audits and to provide strategic and operational advice regarding the City’s financial matters. We anticipate there will be a number of additional tasks and new assignments that Kosmont will need to be addressed, which will require a certain level of on-site coordination to accomplish. The new Finance Manager is expected to start on August 19th; therefore, we anticipate Kosmont will be on-site 2 days per week for the next few weeks. As the team makes progress on the FY 23 audit and the Finance Manager obtains a firm grasp of the issues, we anticipate Kosmont moving toward working on-site 1 day per week, with periodic on-line calls and remote work, resulting in reduced billable hours. FISCAL IMPACT: The proposed cost for the continuation of Phase 2 implementation is $60,000. The costs of the required accounting services (RAMS) and financial consulting from Kosmont will be offset, in part, by salary savings from two vacant finance positions: Finance Director and Senior Accounting. We anticipate a portion of costs will also be offset by additional savings/funding identified in the future. ATTACHMENTS: 1. Kosmont Proposal for Extension of Phase 2 Operational and Strategic Consulting Services40