CITY COUNCIL
AGENDA
Regular Meeting
Wednesday, April 13, 2022
5:30 PM
City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
THIS MEETING WILL BE CONDUCTED IN PERSON AND VIA VIDEOCONFERENCE. IF
YOU WOULD LIKE TO ATTEND VIA Z OOM PLEASE USE THE FOLLOWING LINK TO REGISTER IN ADVANCE:
Register in advance for this webinar:
https://zoom.us/webinar/register/WN_6t81zYrIRXyoCf8umkwtYA
AFTER REGISTERING, YOU WILL RECEIVE A CONFIRMATION EMAIL CONTAINING INFORMATION ABOUT JOINING THE MEETING.
MAYOR
Ernesto Gutierrez
CITY COUNCIL MEMBERS
Mayor Pro Tem
Rita Lamb
Councilmember
Mark Carnevale
Councilmember
Nancy Ross
Councilmember
Raymond Gregory
• CALL TO ORDER
• PLEDGE OF ALLEGIANCE
• INVOCATION (MOMENT OF REFLECTION)
• ROLL CALL
• AGENDA FINALIZATION
At this time the City Council may announce any items being pulled from the agenda or continued to another date.
Cathedral City P age 2
1. SPECIAL PRESENTATION - Fire Department Recognition Francisco Enriquez
2. SPECIAL PRESENTATION - 40th Anniversary Committee Recognition
3. PUBLIC COMMENT
This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in Cali fornia Law, the City Council may not discuss or act on any item not on the agenda but may briefly respond to statements made or ask a question for clarification. The Mayor may also requ est a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. Public Comment will be limited to three (3) minutes.
4. COUNCIL REPORTS
This is an opportunity for each member of the Cit y Council to report on any conferences they attend, local events or make any other comments they may have.
5. CONSENT AGENDA
The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent Calendar for discussion.
A. Waive Full Reading of Ordinances on Agenda
B. Minutes Approval
1. City Council - Study Session - Mar 23, 2022 3:00 PM
2. City Council - Regular Meeting - Mar 23, 2022 5:30 PM C. Amendment No. 1 to the MKASHIWAGI CONSULTING LLC Professional Service Agreement
Recommendation: Approve Amendment No. 1 to the MKASHIWAGI CONSULTING LLC Professional Service Agreement for a
total not-to-exceed Phase II contract amount of $195,000.
D. Notice of Completion for Pavement Striping, Markings and Markers on City Arterial Streets Project
Recommendation: Accept and approve the Pavement Striping, Markings and Markers on City Arterial Streets as final; and, authorize the City Manager to file a Notice of Completion with the
Riverside County Recorder's office; and, authorize the
release of retention funds to Superior Pavement Markings, Inc. upon expiration of the Notice of Completion.
E. Agua Caliente Band of Cahuilla Indians Tribal Grant
Cathedral City P age 3
Recommendation: To approve accepting a tribal donation of $39,000 from Agua Caliente Band of Cahuilla Indians to purchase CERT
Program Supplies, one Autel EVO Drone, and Water Tender equipment.
F. Agua Caliente Band of Cahuilla Indians Donation
Recommendation: Staff recommends the City Council approve accepting the $30,000 donation from the Agua Caliente Band of Cahuilla Indians to fund computer upgrades and the Citizens on
Patrol Program
G. Second reading and adoption of an Ordinance of the City of Cathedral City in order for the Cathedral City Police Department to continue its current use and deployment of specialized police equipment and Adopt Use Policies of Specialized Law Enforcement Equipment also known as "Military Equipment".
Recommendation: Staff recommends that the City Council provide second reading and adopt an ordinance accepting the current
inventory of specialized equipment and adopting the “Use Policy,” related to military equipment as required by AB 481.
H. Second Reading of an Ordinance Amending Chapter 5.96 Short Term Vacation Rental Units
Recommendation: Provide second reading by title only, and adopt an ordinance amending Chapter 5.96 Short Term Vacation Rental Units.
I. ADOPT RESOLUTION ACCEPTING PUBLIC IMPROVEMENTS AND
CERTIFYING COMPLETION OF PRIVATE IMPROVEMENTS IN TRACT
NO. 37354 AND PUD 17-001 “DISTRICT EAST”: JONES CREE
VENTURES EAST, LLC: SUBDIVIDER AND DEVELOPER
Recommendation: Adopt a Resolution accepting the public improvements and certifying completion of private improvements in Tract No. 37354 and PUD 17-001; and, authorize the release of the Improvement Agreement Securities and deposits as
described in the Resolution; and, authorize the Director of Engineering/Public Works to file a Notice of Completion for the Project.
J. Annual Approval of the City’s Investment Policy
Recommendation: Staff recommends the City Council approve the updated Investment Policy.
K. Tract No. 28561-1 and 28561: Rio Del Sol Area - Approval of Two Improvement Agreements with RDS Development, LLC.
Recommendation: Approve an Improvement Agreement with RDS Development, LLC, for improvements in the Espana village portion of the Rio Del Sol development; and, approve an Improvement Agreement with RDS Development, LLC, for
Cathedral City P age 4
improvements in the Elements village portion of the Rio Del Sol development; and, authorize the City Manager and City Clerk to execute the Agreements on behalf of the City in a form approved by the City Attorney.
L. Tract No. 28561-1 and 28561: Rio Del Sol area: Approval of the Assignment of Two Improvement Agreements from Holt Opportunity Fund, L.P. to RDS Development, LLC
Recommendation: Approve an Assignment of the Improvement Agreement with Holt Opportunity Fund, LP, executed on December 12, 2019, for improvements in the Montecito village portion of the Rio Del Sol development, to RDS Development, LLC; and, to
approve the Assignment of the Improvement Agreement with Holt Opportunity Fund, LP, executed on December 12, 2019, for improvements in the Palazzo village portion of the Rio Del Sol development, to RDS Development, LLC; and, to
authorize the City Manager and City Clerk to execute the Assignments in a form approved by the City Attorney.
6. ITEMS PULLED FROM CONSENT
7. PUBLIC HEARINGS
8. LEGISLATIVE ACTIONS
A. Special Use Permit for Fields of Valor (formerly Healing Field) Recommendation: To approve SUP# 22-002 for the annual Fields of Valor (formerly known as "Healing Field") event at Patriot Park.
B. Zone Ordinance Amendment No. 22-001
Recommendation: Introduce, read by title, and waive further reading of the proposed ordinance amending Section 9.62.070 of the
Cathedral City Municipal Code to prohibit new billboards in the City.
C. Update on Emergency Actions Related to COVID-19
Recommendation: Update on Status of Emergency Proclamation. Possible action to continue or rescind Resolution 2020-06.
Update on Emergency Actions taken by City, County, State of Federal Agencies.
Possible consideration of additional measures to be taken.
Council may add items not listed on the agenda pursuant to Government Code section 54954.2 by majority vote.
9. CLOSED SESSION
10. DISCUSSION ON FUTURE AGENDA ITEMS
Cathedral City P age 5
This is an opportunity for memb ers of the City Council to request that, and for the City Council to dis cuss whether, one or more items should be added to the agenda of a future regular or special City Council meeting. To comply with the Brown Act, discussion should be limited to whether to add the item(s), and direction given to the City Manager regarding scheduling and prioritization of the item(s).
ADJOURN
NOTES TO THE PUBLIC:
The City of Cathedral City complies with the Americans with Disabilities Act of 1990. If you require special assistance to participate in this meeting, please call the City Clerk’ s Office at (760) 770-0322 at least 48 hours prior to the meeting.
If you desire to address the City Council during the meeting, please complete a Request to Speak Form available at the entrance and present it to the City Clerk. Speakers will be called upon at the appropriate time.
Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’ s office at City Hall located at 68 -700 Avenida Lalo Guerrero during norm al business hours. In addition, such documents will be posted on the City’s website at www.cathedralcity.gov.
CITY COUNCIL
MINUTES
Study Session
Wednesday, March 23, 2022
3:00 PM
Pursuant to AB 361 and Cathedral City Resolution 2022-13, this meeting was conducted by videoconference.
• CALL TO ORDER
The meeting was called to order at 3:02 PM by Mayor Ernesto Gutierrez. • ROLL CALL
Attendee Name Title Status Arrived
Ernesto Gutierrez Mayor Remote
Rita Lamb Mayor Pro Tem Remote
Mark Carnevale Councilmember Remote
Nancy Ross Councilmember Remote
Raymond Gregory Councilmember Remote
• AGENDA FINALIZATION
There were no changes to the agenda.
1. PUBLIC COMMENT
2. STUDY SESSION
A. Presentation - Coachella Valley Mosquito and Vector Control Recommendation: There is no formal action required for this item. It is a presentation only.
Tammy Gordon, Public Information Officer for the Coachella Valley Mosquito and Vector Control District provided a presentation regarding the results of the neighborhood mosquito control treatments that took place in summer 2021 in the City of Cathedral.
This item was for information and direction only, there was no formal action taken by the City Council.
5.B.1
Packet Pg. 6
Minutes Acceptance: Minutes of Mar 23, 2022 3:00 PM (Minutes Approval) Cathedral City P a g e 2 Printed on 4/07/2022
B. Exploring the potential Uses of FY 2022-23 Community Development Block Grant (CDBG) Funds and a Con Plan update for the City Council's information, discussion and direction only.
Recommendation: Review the Potential Uses of FY 2022-23 Community Development Block Grant (CDBG) Funds and the
Consolidated Plan Update, presented for the City Council's information, discussion and direction only.
Andrew Lee, Assistant Engineer provided a presentation on the potential uses of FY 2022 -23 Community Development Block Grant (CDBG) Funds and Consolidated Plan update. The following points were presented:
• Definition of Entitlement City
• HUD CDBG Requirements for Entitlement City
• Consolidated Plan (Con Plan)
• Citizen Participation Plan
• Annual Action Plan
• Consolidated Annual Performance and Evaluation Report (CAPER) • Con Plan Planning Process
• Meetings
• FY 2017-2022 Priority Needs
• CDBG Utilization in Other Communities
• Other Priority Needs
Councilmember Raymond Gregory requested further clarification on Priority Needs, specifically related to Community Services. He requested staff provide further information on potential priorities.
City Manager Charles McClendon and Jo hn Corella, Director of Engi neering and Public Works provided further clarification.
Councilmember Raymond Gregory is supportive of including some of the identified potential priorities as presented.
Councilmember Nancy Ross would like further informati on on loan guarantees, acquisition of land and homeownership assistance.
John Corella, City Engineer, stated that staff will research what these loans can cover and report back to the City Council.
Andrew Lee provided a brief overview of how acquisition of land and the homeownership assistance works.
Mayor Pro Tem Rita Lamb stated that in terms of identifying priorities, the minor home repair program is a priority for her. She would like to know more about how the program works.
Councilmember Mark Carn evale concurs with Mayor Pro Tem Lamb. He would like to learn more about this and other programs before he makes any decisions.
5.B.1
Packet Pg. 7
Minutes Acceptance: Minutes of Mar 23, 2022 3:00 PM (Minutes Approval) Cathedral City P a g e 3 Printed on 4/07/2022
Mayor Ernesto Gutierrez would like to develop and see a precise breakdown of all the proposed categories and cost associations.
Denice Cross thanked Andre w Lee for the presentation. She expressed her appreciation for those cities who have used these types of funds to help with property repairs.
City Manager Charles McClendon stated that one of the benefits of CDBG Funds are that they are one of the most flexible spending sources from the government.
Developing a five -year plan will help to focus on priorities. He indicated that the City Council will have multiple opportunities to discuss and make decisions on a consolidated plan.
This item was for information and direction only, there was no formal action taken by the City Council.
C. Lease Revenue Bonds, Series 2022A (Federally Taxable) Recommendation: This item is for discussion and direction only, no formal action will be taken. Should it be the desire of the City Council to move forward, there is an item on the Regular Agenda for consideration.
Tami Scott, Administrative Services Director, provided a presentation related to Lease Revenue Bonds, Series 2022A. The following points were presented:
• Prior City Council Actions
• Discussion of Today’s Actions
• Authorizing Issuance of Bonds and Approving Related Documents • Criticism/Concerns of Pension Refinancing
• Lease Revenue Bonds Series 2022A Structure
• CalPERS UAL
• Reduction in Discount Rate
• Current Estimated CalPERS UAL Three Largest Plans
• 2022 Pension Refinancing and Scenarios
• Potential Refunding of Lease Revenue Refunding Bonds, Series 2015A • Financing Schedule
Jose Vera and Jim Fabian, Consultants from Raym ond James & Associates, provided further information on the points presented.
Councilmember Raymond Gregory expressed his concern with the simplification of the presentation and feels this is much more complex. He expressed his concern with the liability, which will remain, and the high risks associated with this recommendation. He feels the cost savings is not guaranteed and he is not supportive at this time.
The City Council will consider taking formal action on this item at the Regular City Council meeting of March 23, 2022.
5.B.1
Packet Pg. 8
Minutes Acceptance: Minutes of Mar 23, 2022 3:00 PM (Minutes Approval) Cathedral City P a g e 4 Printed on 4/07/2022
ADJOURN
Mayor Ernesto Gutierrez adjourned the Study Session meeting at 5:08 p.m.
Mayor, City of Cathedral City City Clerk, City of Cathedral City
5.B.1
Packet Pg. 9
Minutes Acceptance: Minutes of Mar 23, 2022 3:00 PM (Minutes Approval)
CITY COUNCIL
MINUTES
Regular Meeting
Wednesday, March 23, 2022
5:30 PM
Pursuant to AB 361 and Cathedral City Resolution 2022-13, this meeting was conducted by videoconference.
• CALL TO ORDER
The meeting was called to order at 5:30 PM by Mayor Ernesto Gutierrez. • PLEDGE OF ALLEGIANCE
Councilmember Mark Carnevale led the Pledge of the Allegiance. • INVOCATION (MOMENT OF REFLECTION)
Councilmember Nancy Ross offered a moment of reflection. • ROLL CALL
Attendee Name Title Status Arrived
Ernesto Gutierrez Mayor Remote
Rita Lamb Mayor Pro Tem Remote
Mark Carnevale Councilmember Remote
Nancy Ross Councilmember Remote
Raymond Gregory Councilmember Remote
• AGENDA FINALIZATION
There were no changes to the agenda.
1. PUBLIC COMMENT
There were no members of the public that wished to speak.
2. COUNCIL REPORTS
Councilmember Raymond Gregory reported that he attended a Parks Subcommittee meeting where they discussed things going on in city parks. He also reported that he attended the Butterfly Festival at Pa norama Park and thanked all those involved. He announced that he, along with the entire City Council, attended the League of
5.B.2
Packet Pg. 10
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval) Cathedral City P a g e 2 Printed on 4/07/2022
California Cities Riverside County Division meeting. He also announced that he attended the grand opening of the Jurassic Wonders E xhibit hosted by Councilmember Nancy Ross, which was a very nice event. He reported that he along with Councilmember Mark Carnevale attended a meeting with WeeCare to learn more about their programs. He also reported that he and Mayor Pro Tem Lamb participated in a City Hall at Your Corner event and thanked Police Chief Crum for joining them. He reported that he attended the Rainbow Crossing painting event and thanked those involved. He also reported that he attended the League of California Cities LGBT Coc cus meeting. He announced th e upcoming LGBT Days and provided an overview of the festivities. He stated that the LGBTQ+ Exhibit will be in the lobby of the Mary Pickford Theater and encouraged everyone to view it. He announced that he will be traveling nex t week. He acknowledged all the great park improvements that are going on in the city.
Councilmember Ross reported that she met with one of the City’s Commissioners to discuss the budget and ideas. She reported that she attended a meeting with the Director of Lift to Rise to discus s efforts towards affordable housing in the Valley.
She also reported that she studied for and attended the Riverside County Housing Authority Leadership Academy and learned a lot. She reported that she attended the Butterfly Fe stival and thanked all those involved. She also reported on the grand opening of the Jurassic Wonders Exhibit. She announced that on St. Patrick’s Day her husband and her spent the evening with Todd Hooks, Economic Development Director for the Agua Calient e Band of Cahuilla Indians a nd President of Desert Valley Builders Association. She reported that she attended the Rainbow Crossing painting event and a leadership meeting related to housing, which seems to be a hot topic. She reported that she met with a resident that was high energ y and full of great ideas. She indicated that she is a part of the Southern California Associations of Governments planning committee and they are finalizing their Fall event , which will be a cornhole tournament. She reported t hat she attended the SunLine Transit Agency meeting and announced that Stagecoach and Coachella are just around the corner.
Councilmember Mark Carnevale reported that he attended the Butterfly Festival at Panorama Park and thanked all those involved. He announced the upcoming Earth Day Event at Century Park and stated that he met with Commissioner Robert Puentes to discuss reconditioning of the baseball field at Century Park. He attended along with Councilmember Gregory a presentation by WeeCare and recei ved great information. He ga ve a shoutout to Police Chief Crum and his team for helping with homeless encampments. He reported that he will be meeting with a representative of Date Palm Country Club to discuss some of their concerns. He thanked Economic Development Director Stone Jam es for the information related to the College of the Desert Road Runner Motors project and suggested that anyone wanting more information should contact Stone. He reported that be met with Mike Veto from Burrtec to discuss recy cling programs and more info rmation will be provided to the residents soon. He indicated that he is looking forward to attending the upcoming Senior Inspiration Awards and LGBT Days.
Mayor Pro Tem Rita Lamb announced that College of the Desert is holding a public meeting to discuss the Road Runner Motor’s project on April 6, 2022, at 3:30 p.m. via zoom and in -person. She gave a shoutout to the Parks and Community Events
5.B.2
Packet Pg. 11
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval) Cathedral City P a g e 3 Printed on 4/07/2022
Commission for a job well done helping to facilitate field hockey at the Boys and Girls Club. She reported that she attended the Noon Rotary meeting where the speaker was Cameron Barrows, a professor from UC Riverside, who discussed the multi species habitat. She reported on the League of California Cities Riverside County Division meeting, which she attended along with her fellow Councilmembers.
She also reported that she attended through the Coachella Valley Mountains Conservancy Board, a presentation and recognition of the recipients of the Mountain’s Conservancy Grants. She attended the r ecent Dinner with Patsy fundraiser where the Cathedral City High School Choir performed. She thanked Councilmember Gregory and Police Chief Crum for their participation in the recent City Hall at Your Corner event. She reported that she attended , via zoom, the women’s leadership foru m hosted by Supervisor Karen Spiegel. She also reported that she met with Mayor Pro Tem Grace Garner of Palm Springs to see a mobile home rehab project she is involved with, which was wonderful.
Mayor Ernesto Gutierrez hopes e veryone is doing well and ha s adjusted to the time change. He reported that he along with his colleagues attended the League of California Cities Riverside County Division general meeting and Mayor’s meeting.
He also attended the recent grand opening of the Jurassic Wonders Exhibit, followed by lunch with Councilmember Gregory and Police Chief Crum. He also attended , along with Director of Engineering and Public Works John Corella, the California Natural Resources Agency meeting with CNRA Secretary Wade Cro wfoot. H e announced that he met with Bob McKechnie, former president of the Cathedral City Senior Center, to discuss new programs that will be presented to the Council in the future. He met with City Manager Charles McClendon for his weekly meeting and then stopped by the Rainbow Crossing painting event. He indicated that he was able to tour the Sunnylands Estate along with Mayor Pro Tem Lamb and her husband , which was very interesting. He stated that he provided catering and met with the Senior Center’s au ction event winners. He was able to meet with several residents to discuss an array of issues from illegal dumping to businesses operating without a license. He thanked Police Chief Crum for his assistance with catching the people responsible for dumping mattresses at the old Dollar Tree site. He announced he will be attending many upcoming events including LGBT Days . He reported that he received a call from Palm Springs Unified School District related to issues with crossing guards which has been referred to the City Manager and Police Chief to see what can be done to help. He also reported that he was a judge for the artwork completed at the Butterfly Festival, which was a very difficult task since all the kids put in so much effort.
3. CONSENT AGENDA
A motion was made by Councilmember Carnevale and seconded by Mayor Pro Tem Lamb to approve the following Consent Agenda items:
5.B.2
Packet Pg. 12
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval) Cathedral City P a g e 4 Printed on 4/07/2022
RESULT: APPROVED [UNANIMOUS]
MOVER: Mark Carnevale, Councilmember
SECONDER: Rita Lamb, Mayor Pro Tem
AYES: Gutierrez, Lamb, Carnevale, Ross, Gregory
A. Waive Full Reading of Ordinances on Agenda
M.O. 2022-55
B. Minutes Approval
M.O. 2022-56
1. City Council - Study Session - Mar 9, 2022 3:00 PM
2. City Council - Regular Meeting - Mar 9, 2022 5:30 PM C. Receive and File Payment of Claims and Demands for February 2022 Recommendation: The City Council acting in its capacity for the City, the Successor Agency to the former Redevelopment Agency,
the Housing Successor Agency and the Cathedral City
Public Finance Authority Board receive and file payment of claims and demands in the aggregate sum of $6,445,123 for the month of February, 2022.
M.O. 2022-57
D. Approval of a no cost Contract Amendment No. 18 with CNS Engineers for the Ofelia Bringas Memorial Bridge Project
Recommendation: Approve additional no cost Contract Amendment No. 18 to the Design Professional Services Agreement with CNS
Engineers, Inc. to provide additional right of way support services for the Ofelia Bringas Memorial Bridge Project (aka Cathedral Canyon Drive Bridge over Whitewater River
Project), CIP No. 8919; and authorize the City Manager to execute Amendment No. 18.
M.O. 2022-58
E. Minor Amendments to Consulting Agreement with HR Green for On Call Capital Projects Program Management Consulting Services and Electronic Plan Check Services
Recommendation: Approve Minor Amendments to the Professional Services Agreement with HR Green, Inc. to provide On-Call
Engineering Program Management Consulting Services for
Capital Projects and Electronic Plan Check Services; and, authorize the City Manager to execute the Agreement.
M.O. 2022-59
4. ITEMS PULLED FROM CONSENT
5. PUBLIC HEARINGS
5.B.2
Packet Pg. 13
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval) Cathedral City P a g e 5 Printed on 4/07/2022
A. Substantial Amendment to the CDBG FY 2021-22 Annual Action Plan Recommendation: Approve a Substantial Amendment to reallocate unspent prior year CDBG funds for the FY 2021-22 Annual Action
Plan for submittal to the U.S. Department of Housing and Urban Development (HUD).
This Public Hearing was continued from the Regular City Council meeting of March 9, 2022.
Andrew Lee, Assistant Engineer, provided an overview of the recommendation to approve a Substantial Amendment to reallocate unspent prior year CDBG funds for the FY 2021 -22 Annual Action Plan for submittal to the U.S. Department of Housing and Urban Development.
Mayor Ernesto Gut ierrez indic ated that the Public Hearing was continued from March 9, 2022 and any additional individuals that wish to provide public comment can do so at this time, seeing none, he closed the public hearing and returned discussion to the City Council.
M.O. 2022-60
A motion was made by Councilm ember Carnevale and seconded by Councilmember Gregory to approve a Substantial Amendment to reallocate unspent prior year CDBG funds for the FY 2021 -22 Annual Action Plan for submittal to the U.S. Department of Housi ng and Urban Development (HUD) as follows:
FY 2021 PUBLIC IMPROVEMENTS FUNDING FY 2020-21
Unspent Funds to Via De Anza Project $ 47,969
Total Funding Allocated $ 47,969
FY 2021 PUBLIC SERVICES FUNDING CVAG:
Homelessness Program $ 51,500
Transgender Health and Wellness Center $ 20,000
WeeCare Child Assistance Program $ 8,500
Total Funding Allocated $ 80,000
CDBG-CV (CARES Act) FUNDING FUNDING
CC Senior Center $ 100,000
CV Rescue Mission $ 51,500
Assistance League $ 15,000
CC Senior Center: 911 Program $ 53,000
Small Business Assistance Loan $ 143,000
WeeCare Child Assistance Program $ 130,000
Remaining Total $ 12,865
Total Funding Allocated $ 505,365
5.B.2
Packet Pg. 14
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval) Cathedral City P a g e 6 Printed on 4/07/2022
RESULT: APPROVED [UNANIMOUS]
MOVER: Mark Carnevale, Councilmember
SECONDER: Raymond Gregory, Councilmember
AYES: Gutierrez, Lamb, Carnevale, Ross, Gregory
B. Introduction of an Ordinance of the City of Cathedral City in order for the Cathedral City Police Department to continue its current use and deployment of specialized police equipment and Adopt Use Policies of Specialized Law Enforcement Equipment also known as "Military Equipment".
Recommendation: Staff recommends that the City Council approve its current inventory of specialized equipment and adopt its “Use
Policy,” related to military equipment, by Ordinance, as required by AB 481.
Police Chief George Crum provided an overview on the recommendation for City Council to approve its current inve ntory of specialized equipment and adopt its "Use Policy," related to military equipment, by Ordinance, as required by AB 481.
Mayor Ernesto Gutierrez opened the Public Hearing to receive input from the general public related to the recommendation for the City Council to approve its current inventory of specialized equipment and adopt its " Use Policy, " related to military equipment, by Ordinance, as required by AB 481.
Danielle Mead expressed her satisfaction with the professionalism of the Cathedral Ci ty Police Department. She inquired on what steps will be taken to ensure drones do not infringe on privacy rights. She inquired on how these weapons would be used on crowd control and what steps will be taken to ensure they do not infringe on expression of free speech. She expressed her concern with the posting of this public hearing.
Terry Applegate stated that the previous speaker addressed her concerns.
Mayor Ernesto Gutierrez closed the Public Hearing and returned discussion to the City Council.
M.O. 2022-61
A motion was made by Councilmember Gregory and seconded by Mayor Pro Tem Lamb to approv e the City’s current list of specialize police equipment and introduce the first reading of an Ord inance, by title only and waive further reading, adopting a “Use Policy” related to military equipment as required by AB 481.
5.B.2
Packet Pg. 15
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval) Cathedral City P a g e 7 Printed on 4/07/2022
RESULT: APPROVED [UNANIMOUS]
MOVER: Raymond Gregory, Councilmember
SECONDER: Rita Lamb, Mayor Pro Tem
AYES: Gutierrez, Lamb, Carnevale, Ross, Gregory
6. LEGISLATIVE ACTIONS
A. Chapter 5.96 Short Term Vacation Rental Units - Amendment Recommendation: Introduce and provide first reading to an ordinance amending Chapter 5.96 Short Term Vacation Rental Units; and
Adopt a Resolution establishing penalties and fines for violation of the City's Short Term Vacation Rental
regulations.
Jeremy Ogul, speaking on behalf of Expedia Group , stated that a letter was sent to the City and provided a summary of the letter. He requested that the section related to platforms be postponed to allow time for them to work with the City on communications.
Cristofer expressed his concern with a citat ion he rece ived from the city and asked what can be done to help those who do not know the current rules.
Van Franco expressed his concern with a citation he received and questioned why the city does not issue a warning first.
Councilmember Mark Carneva le suggested those who need information on the rules and regulations to contact the City Clerk Tracey Hermosillo.
M.O. 2022-62
Reso 2022-14
A motion was made by Councilmember Gregory and seconded by Councilmember Carnevale to introduce the first reading of an Ordin ance by title only and waive further reading, am ending Chapter 5.96 Short Term Vacation Rental Units; and adopt a Resolution establishing penalties and fines for violation of the City's Short Term Vacation Rental regulations.
RESULT: APPROVED [UNANIMOUS]
MOVER: Raymond Gregory, Councilmember
SECONDER: Mark Carnevale, Councilmember
AYES: Gutierrez, Lamb, Carnevale, Ross, Gregory
B. Lift to Rise: Stories from Home
Recommendation: To approve Special Use Permit #22-001 to allow Lift to Rise to hold an educational mixer about housing policy and
advocacy in the Coachella Valley.
5.B.2
Packet Pg. 16
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval) Cathedral City P a g e 8 Printed on 4/07/2022
M.O. 2022-63
A motion was made by Mayor Pro Tem Lamb and seconded by Councilmember Ross to approve Special Use Permit #2 2-001 to allow Lift to Rise to hold an educational mixer about housing policy and advocacy in the Coachella Valley on April 30, 2022 from 12:00 to 4:00 p.m.
RESULT: APPROVED [UNANIMOUS]
MOVER: Rita Lamb, Mayor Pro Tem
SECONDER: Nancy Ross, Councilmember
AYES: Gutierrez, Lamb, Carnevale, Ross, Gregory
The City Council recessed at 6:33 p.m.
The City Council reconvened at 6:40 p.m.
C. Lease Revenue Bonds, Series 2022A (Federally Taxable) Recommendation: Adopt Resolution No. 2022-___ of the City Council of the City of Cathedral City Authorizing and Approving the
Issuance of Cathedral City Public Financing Authority Lease Revenue Bonds, Series 2022A (Federally Taxable), in the Aggregate Principal Amount Not to Exceed $35,000,000
Approving the Execution and Delivery of a Site and Facility Lease, Lease Agreement, Continuing Disclosure Agreement, Bond Purchase Agreement and Preliminary Official
Statement; and Authorizing Certain Actions and Execution of Documents Related Thereto;
Adopt Resolution No. 2022-___Resolution of the Cathedral City Financing Authority Authorizing and Approving the
Issuance of Cathedral City Public Financing Authority Lease Revenue Bonds, Series 2022A (Federally Taxable), in the Aggregate Principal Amount Not to Exceed $35,000,000
Approving the Execution and Delivery of a Site ad Facility Lease, Lease Agreement, Assignment Agreement, Bond
Purchase Agreement and Preliminary Official Statement;
and Authorizing Certain Actions and Execution of
Documents Related Thereto.
M.O. 2022-66
A motion was made by Councilmember Carnevale and seconded by Councilmember Gregory not to adopt a resolution of the City Council of the City of Cathedral City authorizing and approving the issuance of Cathedral City Public Financing Authority Lease Revenue Bonds, Series 2022A, in the aggregate principal amount not to exceed $35,000,000 approving the execution and delivery of a site and facility lease, lease agreement, continuing disclos ure agreement, bond purchase agreement and preliminary official statement; and authorizing certain actions and execution of documents related t hereto; adopt a resolution of the Cathedral City Financing
5.B.2
Packet Pg. 17
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval) Cathedral City P a g e 9 Printed on 4/07/2022
Authority authorizing and approving the issuance of Ca thedral City Public Financing authority lease revenue bonds, series 2022A, in the aggregate principal amount not to exceed $35,000,0 00 approvin g the execution and delivery of a site a nd facility lease, lease agreement, assignment agreement, bond purchase ag reement and preliminary official statement; and authorizing certain actions and execution of documents related thereto.
RESULT: FAILED [2 TO 3]
MOVER: Mark Carnevale, Councilmember
SECONDER: Raymond Gregory, Councilmember
AYES: Mark Carnevale, Raymond Gregory
NAYS: Ernesto Gutierrez, Rita Lamb, Nancy Ross
Reso 2022-15
A motion was made by Mayor Gutierrez and seconded by Mayor Pro T em Lamb to adopt a resolution of the City Council of the City of Cathedral City aut horizing and approving the issuance of Cath edral City Public Financing Authority Lease Revenue Bonds, Series 2022A, in the aggregate principal amount not to exceed $35,000,0 00 approving the execution and delivery of a site and facility lease, lease agreement, continuing disclosure agreement, bond p urchase agreement and preliminary official statement; and authorizing certain actions and execution of documents related thereto.
RESULT: APPROVED [3 TO 2]
MOVER: Ernesto Gutierrez, Mayor
SECONDER: Rita Lamb, Mayor Pro Tem
AYES: Ernesto Gutierrez, Rita Lamb, Nancy Ross
NAYS: Mark Carnevale, Raymond Gregory
Reso PFA 2022-01
A motion was made by Mayor Gutierrez and seconded by Mayor Pro Tem Lamb to adopt a resolution of the Cathedral City Financing Authority authorizing and approving the issuance of Cathedr al City Public Financing authority lease revenue bonds, series 2022A, in the aggregate principal amount not to exceed $35,000,000 approving th e execution and delivery of a site ad facility lease, lease agreement, assignment agreement, bond purchase agreeme nt and preliminary official statement; and authorizing certain actions and execution of documents related thereto.
5.B.2
Packet Pg. 18
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval) Cathedral City P a g e 10 Printed on 4/07/2022
RESULT: APPROVED [3 TO 2]
MOVER: Ernesto Gutierrez, Mayor
SECONDER: Rita Lamb, Mayor Pro Tem
AYES: Ernesto Gutierrez, Rita Lamb, Nancy Ross
NAYS: Mark Carnevale, Raymond Gregory
D. Contract with Petrochem Materials Innovation, LLC (PMI) for REAS Projects within the Century Park Neighborhood, Ramon Road east of Date Palm Drive and Corral Road east of Cathedral Canyon.
Recommendation: Approve a contract with Petrochem Materials Innovation, LLC. for $944,045 to supply and apply Type II Rubber
Emulsion Aggregate Slurry (REAS) in the Century Park
Neighborhood, on Ramon Road east of Date Palm Drive to
Da Vall Drive City limits, and on Corral Road east of
Cathedral Canyon Drive including traffic control, crack sealing and striping; and, approve a fifteen percent (15%) contingency in the amount of $141,608 for unforeseeable construction costs, making the total encumbrance
$1,085,653; and, authorize the City Manager to execute the required contract documents.
M.O. 2022-64
A motion was made by Councilmember Carnevale and secon ded by Councilmember Gregory to approve a contract with Petrochem Materials Innovation, LLC. for $944 ,045 to suppl y and apply Type II Rubber Emulsion Aggregate Slurry (REAS) in the Century Park Neighborhood, on Ramon Road east of Date Palm Drive to Da Vall Drive City limits, and on Corral Road east of Cathedral Canyon Drive including traffic control, crack sealing and striping; and, approve a fifteen percent (15%) contingency in the amount of $141 ,608 for unforeseeable construction costs, making the total e ncumbrance $ 1,085,653; and, authorize the City Manager to execute the required contract documents.
RESULT: APPROVED [UNANIMOUS]
MOVER: Mark Carnevale, Councilmember
SECONDER: Raymond Gregory, Councilmember
AYES: Gutierrez, Lamb, Carnevale, Ross, Gregory
E. Riverside County Transportation Commission (RCTC) Senate Bill 821 (SB 821) Grant Funding Agreement for the Cathedral Canyon Drive Sidewalk Gap Closure
Recommendation: Approve an Agreement with Riverside County Transportation Commission (RCTC) for Funding, under
Senate Bill 821 (SB 821) Bicycle and Pedestrian Facilities Program, for installing sidewalks, ADA curb ramps and
widening bicycle lanes on Cathedral Canyon Drive between Canyon Shore Drive and Dinah Shore Drive; and, authorize the City Manager to execute the Agreement.
5.B.2
Packet Pg. 19
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval) Cathedral City P a g e 11 Printed on 4/07/2022
Councilmember Nancy recused herself from this item.
M.O. 2022-65
A motion was made by C ouncilmember Gregory and seconded by Mayor Pro Tem Lamb to approve an Agreement with Riverside County Transportation Commission (RCTC) for Fun ding, under Senate Bill 821 (SB 821) Bicycle and Pedestrian Facilities Program , for installing sidewal ks, ADA curb ramps and widening bicycle lanes on Cathedral Canyon Drive between Canyon Shore Drive and Dinah Shore Drive; and authorize the City Manager t o execute th e Agreement.
RESULT: APPROVED [4 TO 0]
MOVER: Raymond Gregory, Councilmember
SECONDER: Rita Lamb, Mayor Pro Tem
AYES: Ernesto Gutierrez, Rita Lamb, Mark Carnevale, Raymond Gregory
RECUSED: Nancy Ross
F. Resolution adopting the City's FY 2022-23 RMRA (SB-1) Projects.
Recommendation: Approve a resolution adopting the City’s FY 2022-23 Capital Improvement Program (CIP) Projects funded by Senate Bill 1 (SB-1): The Road Repair and Accountability Act of 2017.
Reso 2022-16
A motion was made by Cou ncilmember Carnevale and seconded by Mayor Pro Tem Lamb to approve a resolution adopting the City’s FY 2022 -23 Capital Improvement Program (CIP) Projects funded by Senate Bill 1 (SB -1): The Road Repair and Accountability Act of 2017.
RESULT: APPROVED [UNANIMOUS]
MOVER: Mark Carnevale, Councilmember
SECONDER: Rita Lamb, Mayor Pro Tem
AYES: Gutierrez, Lamb, Carnevale, Ross, Gregory
G. Continuation of Teleconference Meetings
Recommendation: To adopt a resolution authorizing the City Council and Commissions to meet via teleconference pursuant to
Assembly Bill (AB) 361.
The City Council took no a ction on this item. Resolution 2022 -13 will expire on March 25, 2022.
H. Update on Emergency Actions Related to COVID-19
Recommendation: Update on Status of Emergency Proclamation. Possible action to continue or rescind Resolution 2020-06.
Update on Emergency Actions taken by City, County, State
5.B.2
Packet Pg. 20
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval) Cathedral City P a g e 12 Printed on 4/07/2022
of Federal Agencies.
Possible consideration of additional measures to be taken.
Council may add items not listed on the agenda pursuant to Government Code section 54954.2 by majority vote.
M.O. 2022-67
A motion was made by Councilmember Gregory and seconded by Co uncilmember Carnevale to extend Resolution 2020 -06, which proclaims the existence of an emergency situation and local emergency due to the worldwide spread of COVID -
19. RESULT: APPROVED [UNANIMOUS]
MOVER: Raymond Gregory, Councilmember
SECONDER: Mark Carnevale, Councilmember
AYES: Gutierrez, Lamb, Carnevale, Ross, Gregory
7. DISCUSSION ON FUTURE AGENDA ITEMS
8. CLOSED SESSION
City Attorney Eric Vail announced that the City Council will recess to Closed Session to discuss the following item on the agenda:
A. Public Employee Performance Evaluation Pursuant to Government Code Section 54957 (B) and Conference with Labor Negotiators Pursuant to Government Code 54957.6
Agency Representative: Mayor and City Attorney
Unrepresented Employee: City Manager
The City Council recessed to Closed Session at 9:02 p.m.
The City Council reconvened at 10:31 p.m.
City Attorney Eri c Vail annou nced that the City Council met in Closed Session to discuss item 8A. Public Employee Performance Ev aluation and Conference with Labor Negotiator. There was not reportable action taken.
ADJOURN
Mayor Ernesto Gutierrez adjourned the Regular City Council Meeting of March 23, 2022, at 10:33 p.m.
Mayor, City of Cathedral City City Clerk, City of Cathedral City
5.B.2
Packet Pg. 21
Minutes Acceptance: Minutes of Mar 23, 2022 5:30 PM (Minutes Approval)
Cathedral City Page 1 of 2 Printed on 4/21/2022
Staff Report
City Council
Item No. 5.C
Meeting Date: April 13, 2022
From: Katherine Fuentes, Assistant City Manager
Title: Amendment No. 1 to the MKASHIWAGI CONSULTING LLC Professional Service Agreement
City Council
RECOMMENDATION:
Approve Amendment No. 1 to the MKASHIWAGI CONSULTING LLC Professional Service Agreement for a total not-to-exceed Phase II contract amount of $195,000.
BACKGROUND:
On January 22, 2022, the City Council held a Planning and Goal Setting Workshop to establish the City ’s 2022 priorities. On February 16, 2022, the City Council adopted Resolution 2022-09, to memorialize the priorities discussed in the goal setting session.
As described in the resolution, many of the goals identified by the City Council can be achieved with existing resources, however, in those cases where additional resources are required, the staff would present City Council with options via the budget amendment process.
As it relates to the Engineering & Public Works Departments, various priorities we re identified to be completed in 2022. Some of these City Council priorities and/or Departmental Work Plan Initiatives included:
• Develop an electric vehicle transition plan to comply with upcoming State mandates and include consideration of publicly accessible charging stations. • Complete a Pavement Management Program update.
• Bridge the digital divide by proposing citywide broadband infrastructure. • Utilize additional consultants for staff augmentation; and, • Complete design and construction on various Capit al Improvement Projects (CIPs).
In February 2022, the City Manager executed a Professional Service agreement under his authority with MKASHIWAGI CONSULTING LLC (MKC) for Phase I of a two -part public works assessment proposal. Phase I was designed to provi de an independent review of the structural, functional, and operational responsibilities within the Engineering & Public Works Department. Although this review was independently
5.C
Packet Pg. 22
Cathedral City Page 2 of 2 Printed on 4/21/2022
performed, it was critically important to include the input, participation, an d organizational knowledge of the staff who perform the work and provide services with pride and dedication to Cathedral City. The initial assessment included gaining a thorough understanding of the current engineering, operations, and maintenance activities performed by the department . Phase II will include providing solutions to the Departments most pressing challenges.
DISCUSSION:
MKC will be represented by Michael Kashiwagi, P.E., a licensed civil engineer with over 42 years of experience in local gov ernment ranging from the City of Sacramento to the Cities of Eastvale and Wildomar. Phase II will provide ongoing support to the Engineering & Public Works Department, as well as manage special projects assigned by the City Manager’s Office. Tentatively, these projects may include:
• Pavement Management Update
• Citywide Broadband Project
• City Fleet Assessment
• Creation of a Development Services Process/Strike Team • Creation of a Five-Year CIP Program/Budget Plan
A core principle driving this effort is the beli ef that, for any organization, the ability to identify and implement meaningful and sustainable initiatives to improve service delivery and responsiveness must be based upon consensus, collaboration, and partnership.
Accordingly, the desired outcome is to partner and build consensus that provides meaningful support and operational alternatives to better align organizational capacity and resources with workload and expectations. Management’s focus is to also validate, guide, and identify meaningful support for services provided by the Engineering & Public Works Department.
FISCAL IMPACT:
The proposed Amendment No. 1 to the Professional Service Agreement with MKASHIWAGI CONSULTING LLC is for a total not -to-exceed contract amount of $195,000 for a period of one year. This includes all travel expenses. A General Fund budget amendment, as outlined in the table below, is being proposed. If the City moves forward with the Citywide Broadband Project, there are additional non -General Fund funding sources available to offset the cost of this contract.
FISCAL YEAR
BUDGET
AMENDMENT AMOUNT ACCOUNT NUMBER
2021-2022 General Fund $ 45,000 100-150-156-8600-8601
2022-2023 General Fund $ 150,000 100-150-156-8600-8601
ATTACHMENTS:
MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022
Professional Services Agreement 4891-9 Amendment No. 1_APR 2022 Proposed Phase II Exhibit A Amendment NO1_MAR 2022
5.C
Packet Pg. 23
5.C.a
Packet Pg. 24
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 25
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 26
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 27
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 28
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 29
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 30
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 31
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 32
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 33
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 34
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 35
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 36
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 37
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 38
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 39
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 40
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 41
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 42
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
5.C.a
Packet Pg. 43
Attachment: MKASHIWAGI CONSULTING LLC_FULLY EXECUTED FEB 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
IRV #4837-0615-2175 v1
FIRST AMENDMENT TO SERVICES AGREEMENT BETWEEN THE CITY OF
CATHEDRAL CITY AND MKASHIWAGI CONSULTING, LLC
This First Amendment to Services Agreement (“First Amendment”) is entered into as of April 13, 2022, by and between the City of Cathedral City, a municipal corporation (“City”), and Mkashiwagi Consulting, LLC , a California Limited Liability Company (“Consultant”). The City and Consultant are collectively referred to as the “Parties”.
RECITALS
A. City and Consultant previously entered into a Services Agreement (“Agreement”).
C. This First Amendment ex tends the term of the Agreement, amends the compensation provisions, and updates Exhibit A to the Agreement.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the promises made and recited herein, the Parties do hereby enter into this First Amendment which modifies and amends the Agreement as follows:
1. AGREEMENT TO AMEND THE TERM. Section 1 of the Agreement is hereby amended and restated as follows: “Subject to the provisions of Section 20 "Termination of Agreement" of this Agreement, the Term of the Agreement shall extend to one (1) year after the execution of the First Amendment by the Parties.”
2. COMPENSATION. The following language shall be added to Section 4, subsection (b) of the Agreement: “Compensation for Phase II of the Scope of Services, will be at a rate of $150.00, per hour. The City shall pay a total not-to-exceed amount of $195,000 for all Phase II services, which includes all travel expenses incurred as part of the hourly rate.”
3. EXHIBITS. Exhibit A, attached hereto and incorporated herein, shall be added to Exhibit A of the Agreement.
4. GENERAL PROVISIONS.
4.1 Remainder Unchanged. Except as specifically modified and amended in this First Amendment, the Agreement remains in full force and effect and binding upon the Parties.
4.2 Integration. This First Amendment constitutes the entire understanding and agreement of the Parties and supersedes all negotiations or previous agreements between the Parties with respect to all or any part of the transaction discussed in this First Amendment.
4.3 Effective Date. This First Amendment shall not become effective until the date it has been executed by the appropriate authorities of the Parties.
5.C.b
Packet Pg. 44
Attachment: Professional Services Agreement 4891-9 Amendment No. 1_APR 2022 (3181 : Amendment No. 1 to the MKASHIWAGI
IRV #4837-0615-2175 v1
4.4 Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this First Amendment.
4.5 References. All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this First Amendment have the same meaning as provided in the Agreement, unless expressly stated to the contrary in this First Amendment.
IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment to the Agreement on the date and year first written above.
CITY OF CATHEDRAL CITY
___________________________
Charles P. McClendon
City Manager
ATTEST:
_________________________
Tracey R. Hermosillo, CMC
City Clerk
APPROVED AS TO FORM
_______________________________
Eric S. Vail
City Attorney
CONSULTANT:
Date: _______________ By:
Michael Kashiwagi, P.E.
Its: _____________________________
5.C.b
Packet Pg. 45
Attachment: Professional Services Agreement 4891-9 Amendment No. 1_APR 2022 (3181 : Amendment No. 1 to the MKASHIWAGI
EXHIBIT A
Phase II Scope of Services
Phase II Services will provide ongoing support to the public works organization as well as project specific assignments as determined by the City Manager’s office. It is anticipated that Michael Kashiwagi will be available 20-25 hours per week which includes being onsite 2 days per week. He will also be available remotely via email, telephone, and virtual meetings.
Specific assignments could include but not limited to:
Project Management
• Pavement Management Update
• Fiber Optic Project
• Fleet Assessment (potential transition to Enterprise Fleet Management Services) • Five-Year CIP Budget Plan/CIP Consultant Utilization
• Creation of a Development Services Process/Strike Team Guidance and Advisory Role
• Five-Year Strategic Master Plan
• Process Efficiency Changes
• Organizational Restructuring / Staff Assignments
• Staff Report Review
In addition to the above, other assignments as determined by the City Manager’s office.
Compensation
Work performed will be invoiced on a Time and Materials basis. The hourly rate will be $150/hr which is inclusive of all travel related and other miscellaneous expenses.
5.C.c
Packet Pg. 46
Attachment: Proposed Phase II Exhibit A Amendment NO1_MAR 2022 (3181 : Amendment No. 1 to the MKASHIWAGI CONSULTING LLC
Cathedral City Page 1 of 2 Printed on 4/21/2022
Staff Report
City Council
Item No. 5.D
Meeting Date: April 13, 2022
From: John Corella, Director of Engineering/Public Works Title: Notice of Completion for Pavement Striping, Markings and Markers on City Arterial Streets Project
City Council
RECOMMENDATION:
Accept and approve the Pavement Striping, Markings and Markers on City Arterial Streets as final; and, authorize the City Manager to file a Notice of Completion with the Riverside County Recorder's office; and, authorize the release of reten tion funds to Superior Pavement Markings, Inc. upon expiration of the Notice of Completion.
BACKGROUND:
Staff is requesting that the City Council accept and approve the Pavement Striping, Markings and Markers on City Arterial and Collector Streets Project (Project).
City Council acceptance is required to approve the Project’s final contract amount and release retention funds. Retention funds are monies earned by the Contractor that are withheld from progress payments pending satisfactory completion and final acceptance of the Project. The Project was completed according to the contract terms.
City Council acceptance of the Project requires that a Notice of Completion (NOC) be filed with the Riverside County Recorder’s office. The NOC is a written notice issued by the owner of a project, or his/her agent, to notify concerned parties that all work on the project has been completed. This notice also sets the period, which is 30 days from the date the NOC is filed, within which concerned parties may exercise their lien rights against one another. Once the thirty -day period has expired, and provided no claims or liens are received, the City can release retention funds.
DISCUSSION:
The City of Cathedral City executed a contract with Superior Pavement Markings, Inc. for the Project on October 27, 2021, for the contract bid amount of $228,382 with a 15% contingency of $34,257 for unforeseen construction circumstances, inspection and other technical services related to the Project, thereby making a total budget of $262,639 for the Project.
5.D
Packet Pg. 47
Cathedral City Page 2 of 2 Printed on 4/21/2022
Superior Pavement Markings, Inc . was issued the notice to proceed o n December 20, 2021, and completed all the work required for the Project on March 15, 2022. The Project is now ready for acceptance by the City Council.
FISCAL IMPACT:
The total due to Superior Pavement Markings, Inc. for this Project, is $218,618.50.
Council
Authorization
Project
Budget
Actual
Charges Unspent
Original Contract $228,382.00 $218,618.50 $9,763.50
Contingency $34,257.00 $0.00 $34,257.00
Change Orders $0.00 $0.00 $0.00
Retention Withheld $(10,930.93) $0.00
Total $262,639.00 $207,687.57 $44,020.50
The current retainage to be paid to Superior Pavement Markings, Inc. is $10,930.93, which will be released 30 days from the date that the NOC is filed should there be no claims or discrepancies in the work completed.
ATTACHMENTS:
Notice of Completion - Superior Pavement Markings
5.D
Packet Pg. 48
(“President of,” “Manager of,” “A partner of,” “Owner of,” etc.)
RECORDING REQUESTED BY
AND WHEN RECOR
DED MAIL TO:
Name
Street
Address
Ci
ty &
State
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY
NOTICE OF COMPLETION
Notice is hereby
given that:
1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:
2. The full name of the owner is
3. The full address of the owner is
4. The natu
re of the interest or estate of the owner is in fee.
(If other than fee, strike “in Fee” and insert, for example, “purchaser under contract of purchase,” or “lessee”)
5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are:
NAMES ADDRESSES
6. A w
ork of improvement on the property hereinafter described was completed on . The work done was:
7. The name o
f the contractor, if any, for such work of improvement was (If no contractor for work of improvement as a whole, insert “none”) (Date of Contract)
8. The property on which said work of improvement was completed is in the city of , County of , State of California, and is described as follows:
9. The street a
ddress of said property is
(If no street address has been officially assigned, insert “none”) Dated:
Signature of owner of corporate officer of owner
named in paragraph 2 or his agent
VERIFICATION
I, the undersigned, say: I am the the declarant of the foregoing notice of completion; I have read said notice of completion and know the contents thereof; the same is true of my own knowledge.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on , 20 , at , California.
(D ate of signature) (C ity where signed)
(Personal signature of the individual who is swearing that the contents of the notice of completion are true)
S R U PAGE SIZE DA MISC LONG RFD COPY
M A L 465 426 PCOR NCOR SMF NCHG
T: CT Y UNI
EXAM
5.D.a
Packet Pg. 49
Attachment: Notice of Completion - Superior Pavement Markings (3152 : Notice of Completion for Pavement Striping, Markings and Markers on
Cathedral City Page 1 of 2 Printed on 4/21/2022
Staff Report
City Council
Item No. 5.E
Meeting Date: April 13, 2022
From: John Muhr, Fire Chief
Title: Agua Caliente Band of Cahuilla Indians Tribal Grant
RECOMMENDATION:
To approve accepting a tribal donation of $39,000 from Agua Caliente Band of Cahuilla Indians to purchase CERT Program Supplies, one Autel EVO Drone, and Water Tender equipment.
BACKGROUND:
In early January, the Fire Department was contacted by Agua Caliente Band of Cahuilla Indians to solicit applications for a donation of $ 30,000. The purpose of the donation would be to fund a project that would otherwise not be approved in the current budget.
On January 24 th 2022, Fire Chief Muhr completed the application and submitted it for review. In early March, Chief Muhr received a le tter from the Tribe approving the donation, which accompanied a check for $39,000.
DISCUSSION:
The Fire Department operates one of the largest Teen CERT Programs in Riverside County with over 100 students trained annually at Cathedral City High School.
Purchasing supplies for this program is vital for its success in training young citizens in Cathedral City to be self-reliant during a disaster.
Additionally, Cathedral City Fire Department currently utilizes its 75 -foot aerial ladder truck to acquire aeria l photos or video on emergency incidents. Purchasing a departmental drone would enable the Incident Commanders to have a real -time perspective of the overall emergency scene while making critical decisions. Drones can be used in search and re scue incidents , fires, hazardous material incidents, and in providing post-incident photos crucial in investigating fires.
The remaining funds in the donation will be used to purchase new appliances for Water Tender 1, which currently has a limited supply , and finish the installation of the USDD G2 Alerting System for the fire administration office.
FISCAL IMPACT:
The fiscal impact of this program is fully funded by the grant with no matching funds.
5.E
Packet Pg. 50
Cathedral City Page 2 of 2 Printed on 4/21/2022
ATTACHMENTS:
ACBCI 2022 Donation
5.E
Packet Pg. 51
5.E.a
Packet Pg. 52
Attachment: ACBCI 2022 Donation [Revision 1] (3166 : Agua Caliente Band of Cahuilla Indians Tribal Grant) ACBCI Donation Request
January 2 4th, 2022
WATER TENDER EQUIPMENT LIST
1 4" Harrington barrel strainer $226.95
1 4" 10‐foot hard suction hose 569.00
1 2.5" Female ball valve with male end 336.00
2 1.5" Wildland combo nozzles with bail 500.00
1 1.5" Female to 1.5" ma le 45‐degree elbow 230.00
2 1" Dual range fore stry nozzles 206.00
4 1" Female to .75" m ale adaptor 112.00
4 1.5" Female to 1" male adaptor 144.00
4 .75" P‐Line nozzles 44.00
1 1.5" Gated wye 258.00
2 Timberline hose clamps 500.00
1 Foam container wrench 25.00
2 Web‐gear with pouches 286.00
2 Fire shelters 1,000.00
4 Hose packs 692.00
2 Sigtronics headsets 652.00
2 Motorola APX 7000 han dheld radios 12,000.00
2 Motorola charger s and install 750.00
6 12R22.5 H FST Tires 2,648.42
1 Revised Cathedral City Fire Department graphics 1,738.75 Water Tender Equipment Total $22,918.12
U.S. Digital Designs Auto Alert (Fire Admin) 8,500.00
CERT Supplies 4,700.00
Drone 2,847.00
GRAND TOTAL $38,965.12
32100 Desert Vista Rd., Cathedral City, CA 92234
Phone: (760) 770-8200 Fax: (760) 328-3902 www.cathedralcity.gov
5.E.a
Packet Pg. 53
Attachment: ACBCI 2022 Donation [Revision 1] (3166 : Agua Caliente Band of Cahuilla Indians Tribal Grant)
5.E.a
Packet Pg. 54
Attachment: ACBCI 2022 Donation [Revision 1] (3166 : Agua Caliente Band of Cahuilla Indians Tribal Grant)
5.E.a
Packet Pg. 55
Attachment: ACBCI 2022 Donation [Revision 1] (3166 : Agua Caliente Band of Cahuilla Indians Tribal Grant)
5.E.a
Packet Pg. 56
Attachment: ACBCI 2022 Donation [Revision 1] (3166 : Agua Caliente Band of Cahuilla Indians Tribal Grant)
5.E.a
Packet Pg. 57
Attachment: ACBCI 2022 Donation [Revision 1] (3166 : Agua Caliente Band of Cahuilla Indians Tribal Grant)
5.E.a
Packet Pg. 58
Attachment: ACBCI 2022 Donation [Revision 1] (3166 : Agua Caliente Band of Cahuilla Indians Tribal Grant)
5.E.a
Packet Pg. 59
Attachment: ACBCI 2022 Donation [Revision 1] (3166 : Agua Caliente Band of Cahuilla Indians Tribal Grant)
5.E.a
Packet Pg. 60
Attachment: ACBCI 2022 Donation [Revision 1] (3166 : Agua Caliente Band of Cahuilla Indians Tribal Grant)
Cathedral City Page 1 of 2 Printed on 4/21/2022
Staff Report
City Council
Item No. 5.F
Meeting Date: April 13, 2022
From: George Crum, Police Chief
Title: Agua Caliente Band of Cahuilla Indians Donation
City Council
RECOMMENDATION:
Staff recommends the City Council approve accepting the $30, 000 donation from the Agua Caliente Band of Cahuilla Indians to fund computer upgrades and the Citizens on Patrol Program
BACKGROUND:
Ms. Betty Callies, Executive Director of the Agua Caliente Band of Cahuilla Indians, invited the Cathedral City Police D epartment to submit for a $30,000 charitable donation. This donation is meant for specific department needs not otherwise covered by the police department budget. The police department submitted the donation request application on February 1, 2022, and it was approved by Agua Caliente Band of Cahuilla Indians on February 28, 2022.
DISCUSSION:
In collaboration with our IT Department, we have identified the need to replace 10 obsolete computers. With $13,755.63 we intend to purchase 10 Dell All -in-One Computers. An additional $9,410.04 will be spent on 4 Dell Latitude 5420 Rugged Mobile Data Computers (MDC’s) and $6 ,129.15 for vehicle mounts to replace the aging computers in some of our police units. The total amount requested was $29,294.82 and we were approved for $30,000. The remaining $705.18 will be used to fund our Citizen’s on Patrol (COP) program to purchase uniforms for new members.
FISCAL IMPACT:
None
ATTACHMENTS:
ACBCI Grant Application 2022
5.F
Packet Pg. 61
Cathedral City Page 2 of 2 Printed on 4/21/2022
ACBCI Grant Letter 2022
ACBCI Grant Quotes 2022
5.F
Packet Pg. 62
5.F.a
Packet Pg. 63
Attachment: ACBCI Grant Application 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.a
Packet Pg. 64
Attachment: ACBCI Grant Application 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.a
Packet Pg. 65
Attachment: ACBCI Grant Application 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.a
Packet Pg. 66
Attachment: ACBCI Grant Application 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.b
Packet Pg. 67
Attachment: ACBCI Grant Letter 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 68
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 69
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 70
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 71
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 72
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 73
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 74
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 75
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 76
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 77
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 78
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 79
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 80
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 81
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 82
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 83
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 84
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 85
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 86
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 87
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
5.F.c
Packet Pg. 88
Attachment: ACBCI Grant Quotes 2022 (3175 : Agua Caliente Band of Cahuilla Indians Donation)
Cathedral City Page 1 of 3 Printed on 4/21/2022
Staff Report
City Council
Item No. 5.G
Meeting Date: April 13, 2022
From: George Crum, Police Chief
Title: Second reading and adoption of an Ordinance of the City of Cathedral City in order for the Cathedral City Police
Department to continue its current use and deployment of specialized police equipment and Adopt Use Policies of
Specialized Law Enforcement Equipment also known as
"Military Equipment".
City Council
RECOMMENDATION:
Staff recommends that the City Council provide second reading and adopt an ordinance accepting the current inventory of specialized equipment and adopting the “Use Policy,” related to military equipment as required by AB 481.
BACKGROUND:
Assembly Bill 481 was signed into law on September 30, 2021, by Governor Gavin Newsom and became effective on January 1, 2022. AB 481 identifies certain law enforcement equipment as “military equipment” and requires a governing body to oversee all future purchases and its application of use of said military equipment. The Cathedral City Police Department is proposing the City Council support and approve its current inventory of specialized equipment and adopt its “Use Policy”, related to military equipment, by Ordinance, as is now required by AB 481.
The ordinance was introduced and provided first reading on March 23, 2022.
DISCUSSION:
On September 30, 2021, California Governor Gavin Newsom signed Assembly Bill 481 (AB481), which became effective January 1, 2022. The bill requires the Cathedral City Police Department create a Milita ry Equipment Use Policy which must be adopted by the City by May 1, 2022. Due to recent events in our nation, the public has asked state and local leaders to enact law enforcement reforms and setting state -wide standards for safe de-escalation techniques.
AB481 identifies certain law enforcement equipment as “military equipment” and
5.G
Packet Pg. 89
Cathedral City Page 2 of 3 Printed on 4/21/2022
requires oversight from a governing body for purchase and usage of what the bill has deemed military equipment. For the Cathedral City Police Department, the governing body is the City Council. The purpose of this request is to seek approval and support from the City Council in adopting the police departments current inventory (specialized equipment) and its use. The Use Policy establishes an on -going standard and policy for safe de-escalation techniques and military equipment use/application which is attached as required by AB481.
The list of identified “military equipment” is currently deployed by law enforcement agencies in this county, surrounding counties and throughout the State of California, as well as law enforcement organizations across the nation. AB481 lists equipment that is recognized and more appropriately identified by local, state, and federal law enforcement entities as specialized police equipment. Locally, the Association of Riverside County Chiefs of Police and Sheriff (ARCCOPS) have endorsed the list of specialized equipment which is already in use across the county. For additional context, the Cathedral City Police Department has acquired these tools with previous city council approval either during the bi -annual budget process, or as an individual agenda item purchase.
Specialized police equipment is used only by highly trained and experienced law enforcement professionals. The list of itemized equipment i s attached as required by AB481. This inventory list ranges from modernized tools and aerial drones whose primary purpose is the preservation of human life when utilized in responding to critical incidents, which often involve high -risk apprehension, searc h and rescue, fast responses to catastrophic events, reduce liability of physical injury to public and department personnel, and allow for de -escalation tactics during high -risk encounters with armed violent suspects. The tools, equipment, and resources ca n function as a force multiplier in some cases to reduce manpower hours and is ultimately a cost savings to the city.
Riverside County law enforcement agencies are responsible for ensuring the highest standard of public safety, protect and serve members o f the community, and apprehend criminal offenders. To help achieve and maintain the highest standard of public safety, law enforcement receives support from our elected officials who are committed in funding operational needs, which includes the approval t o purchase and finance necessary tools, protective gear, and specialized equipment for the purpose of helping protect and save lives and property. With the city council’s partnership and approval, law enforcement can operate with the most advanced technolo gy, equipment, and resources available with the goal to protect and serve the community with increased effectiveness, be prepared for the unexpected, and ultimately save lives with a uniform response standard by all law enforcement agencies across all juri sdictions within the county.
Although most tools, equipment, and resources listed as military equipment in AB481 are found in a military environment and may be similar in nature, the application in which the equipment is used is significantly different f or public safety and law enforcement. Attached in the agenda packet you will find a list of specialized equipment definitions and an inventory list for the police department.
5.G
Packet Pg. 90
Cathedral City Page 3 of 3 Printed on 4/21/2022
Pursuant to AB 481 t he City Council may approve the acquisition and use of mili tary equipment if it determines all of the following:
a) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety;
b) The proposed military equipment use policy will safe guard the public’s welfare, safety, civil rights, and civil liberties;
c) If purchasing the equipment, the equipment is reasonably cost effective as compared to available alternatives that can achieve the same objective of officer and civilian safety; and
d) Prior military equipment use by the US Military is consistent with the military equipment use policy of the local law enforcement; or, if not consistent, the local law enforcement agency has taken corrective action to remedy nonconforming uses and ensure future compliance.
This staff report is included for the second reading of the ordinance by the City Council of Cathedral City.
ENVIRONMENTAL IMPACT
The proposed action does not meet the definition of a project as defined by Section 15378 California Environmental Quality Act (CEQA). A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT:
None
ATTACHMENTS:
Cathedral City Police Military Equipment Inventory List CCPD Military Equipment Inventory 3-8-2022
CATHEDRAL CITY - Ordinance Approving Military Equipment Policy 2022 Military Equipment Policy
5.G
Packet Pg. 91
5.G.a
Packet Pg. 92
Attachment: Cathedral City Police Military Equipment Inventory List (3176 : Assembly Bill 481 "Use of Military Equipment")
5.G.a
Packet Pg. 93
Attachment: Cathedral City Police Military Equipment Inventory List (3176 : Assembly Bill 481 "Use of Military Equipment")
5.G.b
Packet Pg. 94
Attachment: CCPD Military Equipment Inventory 3-8-2022 (3176 : Assembly Bill 481 "Use of Military Equipment") RIV #4885-4391-9887 v1
07024-0001
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CATHEDRAL CITY, CATHEDRAL CITY POLICE
DEPARTMENT POLICY NO. 708, IN ACCORDANCE WITH
ASSEMBLY BILL 481
WHEREAS, on September 30, 2021, Governor Newsom signed into law Assembly Bill (“AB”) 481 to address the funding, acquisition, and use of items lawmakers deemed to be considered “military equipment”; and
WHEREAS, AB 481 requires law enforcement agencies, including the Cathedral City Police Department, “to obtain approval of the app licable governing body, by adoption of a military equipment use policy, ” as specified, “to obtain approval of the applicable governing body, by adoption of a military equipment use policy, as specified, by ordinance at a regular meeting held pursuant to specified open meeting laws, prior to taking certain actions relating to the funding, acquisition, or use of military equipment, as defined;” and
WHEREAS, the City Council finds that the public has a right to know about any funding, acquisition, or use of military or militaristic equipment by the City of Cathedral City, as well as a right to participate in any City decisions to fund, acquire, or use such equipment; and
WHEREAS, the City Council finds that decisions regarding whether and how military or militaristic equipment is funded, acquired, or used should give strong consideration to the public’s welfare, safety, civil rights, and civil liberties, and should be based on meaningful public input; and
WHEREAS, the City Council finds that legally enforcea ble safeguards, including transparency, oversight, and accountability measures, must be in place to protect the public’s welfare, safety, civil rights, and civil liberties before military or militaristic equipment is funded, acquired, or used; and
WHEREAS, the City Council finds that for at least thirty (30) days prior to date of the public hearing on Ordinance No.___, concerning the proposed Military Equipment Policy, along with any Attachments, was made available on the Cathedral City Police Department’s public website; and
WHEREAS, the City Council finds that the military equipment identified in the Military Equipment Policy, entitled “DSM 708 Military Equipment List-CCPD” and attached hereto as Exhibit “A,” is necessary because there is no reasonable a lternative that can achieve the same objective of officer and civilian safety; and
5.G.c
Packet Pg. 95
Attachment: CATHEDRAL CITY - Ordinance Approving Military Equipment Policy 2022 (3176 : Assembly Bill 481 "Use of Military Equipment") RIV #4885-4391-9887 v1
07024-0001
WHEREAS, the City Council finds that the proposed Military Equipment Policy will safeguard the public’s welfare, safety, civil rights, and civil liberties; and
WHEREAS, the City Council finds that the military equipment identified in the Military Equipment Policy, entitled “DSM 708 Military Equipment List -CCPD” is reasonably cost effective as compared to available alternatives that can achieve the same objective of officer and civilian safety; and
WHEREAS, the City Council finds that prior military equipment use by the US Military is consistent with the proposed Military Equipment Policy of the Cathedral City Police Department; or, if not consistent, the Cathedra l City Police Department has taken corrective action to remedy nonconforming uses and ensure future compliance; and
WHEREAS, the City Council has determined and finds the Cathedral City Police Department has timely sought approval of Ordinance No. _____ from the City Council to continue the use of any military equipment that was acquired prior to January 1, 2022, and that by approving this Ordinance No.____, within 180 days from the date this approval process was initiate, the City Council authorizes the Cathedral City Police Department to continue its use of such Military Equipment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. RECITALS
The City Council finds that all recitals, facts, findings, and conclusions set forth above are true and correct and hereby incorporated by reference.
SECTION 2. ADOPTION OF MILITARY EQUIPMENT POLICY
The City Council hereby adopts the Policy No. 708, Military Equipment Policy, along with any related Attachments, which are all attached hereto as Exhibit “A”.
SECTION 3. EFFECTIVE DATE.
This ordinance shall be effective thirty (30) days from and after its final passage.
SECTION 6. SEVERABILITY.
If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, then such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Cathedral City hereby declare they would have adopted this ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions. sentences, clauses, phrases, or
5.G.c
Packet Pg. 96
Attachment: CATHEDRAL CITY - Ordinance Approving Military Equipment Policy 2022 (3176 : Assembly Bill 481 "Use of Military Equipment") RIV #4885-4391-9887 v1
07024-0001
portions thereof be declared invalid or unconstitutional.
SECTION 7. PUBLICATION.
The City Clerk is authorized and directed to cause this ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Section 36933(a) or, to cause this ordinance to be published in the manner required by law using the alternative summary and posting procedure authorized under Government Code Section 36933 (c).
INTRODUCED at the regular meeting of Cathedral City Council on the _____ day of __________2022.
PASSED, APPROVED AND ADOPTED at the regular meeting of Cathedral City Council on the _______ day of ___________2022.
AYES:
NOES:
ABSENT:
ABSTAIN
Ernesto Gutierrez, Mayor
ATTEST:
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
Eric. S. Vail, City Attorney
5.G.c
Packet Pg. 97
Attachment: CATHEDRAL CITY - Ordinance Approving Military Equipment Policy 2022 (3176 : Assembly Bill 481 "Use of Military Equipment")
5.G.d
Packet Pg. 98
Attachment: Military Equipment Policy (3176 : Assembly Bill 481 "Use of Military Equipment")
5.G.d
Packet Pg. 99
Attachment: Military Equipment Policy (3176 : Assembly Bill 481 "Use of Military Equipment")
5.G.d
Packet Pg. 100
Attachment: Military Equipment Policy (3176 : Assembly Bill 481 "Use of Military Equipment")
5.G.d
Packet Pg. 101
Attachment: Military Equipment Policy (3176 : Assembly Bill 481 "Use of Military Equipment")
5.G.d
Packet Pg. 102
Attachment: Military Equipment Policy (3176 : Assembly Bill 481 "Use of Military Equipment")
5.G.d
Packet Pg. 103
Attachment: Military Equipment Policy (3176 : Assembly Bill 481 "Use of Military Equipment")
5.G.d
Packet Pg. 104
Attachment: Military Equipment Policy (3176 : Assembly Bill 481 "Use of Military Equipment")
5.G.d
Packet Pg. 105
Attachment: Military Equipment Policy (3176 : Assembly Bill 481 "Use of Military Equipment")
Cathedral City Page 1 of 5 Printed on 4/21/2022
Staff Report
City Council
Item No. 5.H
Meeting Date: April 13, 2022
From: Sandra Molina, Code Compliance/Development Manager Title: Second Reading of an Ordinance Amending Chapter 5.96 Short Term Vacation Rental Units
City Council
RECOMMENDATION:
Provide second reading by title only, and adopt an ordinance amending Chapter 5.96 Short Term Vacation Rental Units.
BACKGROUND:
On January 26, 2022, the City Council conducted a study session on possible amendments to Chapter 5.96 Short Term Vacation Rental Units. The January 26, 2022 agenda report presented 14 revisions proposed by Staff and 15 revisions suggested by former members of the previous STVR Task Force.
The City Council considered the presentation and public testimony and provided Staff direction on amendments to the code.
On February 8, 2022, the City Manager and Code Compliance Manager met with former STVR taskforce members to receive further input on their suggested revisions. The meeting focused on four topics, which are noted in this report.
The City Attorney’s Office also conducted a comprehensive review of Chapter 5.96 and made additional revisions to provide clarity, support revisions made and/or provide additional enforcement tools.
On March 23, 2022, the City Council conduct ed a public meeting and considered an ordinance amending Chapter 5.96 Short term vacation rental units.
During Introduction and First Reading, Staff advised the City Council that, subsequent to the distribution of the agenda packet and draft ordinance, a new section (section
5.96.035.G) was proposed to be added that read:
Section 5.96.035(G). “Properties that are fractionally owned may not be used a s short-term vacation rentals.”
5.H
Packet Pg. 106
Cathedral City Page 2 of 5 Printed on 4/21/2022
The City Council was advised of a minor typographical correction to the f irst and second lines of Section 5.96.050(A) on agenda packet page 269, which should read, in part, as follows:
Section 5.96.050(A). “The owner and/or owner’s authorized agent or representative shall use to ensure that the property used for Short Term Va cation Rental is used….”.
The City Council also adopted a Resolution establishing revised penalties and fines for violation of STVR regulations.
The March 23, 2022, agenda packet included the following attachments:
(1) An Ordinance amending Chapter 5.96 Short term vacation rental units with redlines (2) An updated chart of Staff’s proposed changes from the January 26, 2022 study session
(3) An updated chart of Resident’s suggested changes from the January 26, 2022 study session
(4) A Resolution establishing penalties and fines for violation of the STVR regulations
DISCUSSION:
The revisions discussed in the March 23, 2022 , Agenda Report are those where direction was given at the study session meeting to make changes, and also those substantive changes made by the City Attorney.
Section 5.96.020 Definitions.
The definitions were amended to add definitions for “advertise”, “booking service”, “good neighbor brochure”, “hosting platform”, “managing agency or agent”, “multiple rentals”, owner’s authorized agent or manager” , and “transient occupancy tax”. These changes support a new section (5.96.080 Unpermitted/Unlicensed Short Term Vacation Rentals) added to hold hosting platforms accountable for advertising and operating of STVR properties.
The definition of “home sharin g or home share” was revised to state that the portion being rented is not to exceed fifty percent (50%) of the total bedrooms on the property.
Section 5.96.035 Permits required for short term vacation rental units; termination of short term vacation rentals, exceptions.
Section 5.96.035(D) Termination of existing permits is revised to provide more clarity regarding termination of STVR permits on January 1, 2023, in that permittees must discontinue advertising and offering the property for short term rentals.
Section 5.96.035(E) prohibits subletting and was moved from Section 5.96.040.
New Section 5.96.035(F) clarifies that each STVR property is required to have its own permit number.
5.H
Packet Pg. 107
Cathedral City Page 3 of 5 Printed on 4/21/2022
Section 5.96.040 Short term vacation rental / home share permit re quired application and fee.
Permit application . Section 5.96.040(E) lists the items required to be submitted for a permit. Subsections 8, 9, 10, and 11 are items that are already part of the application and are proposed to be added to the Chapter.
Findings for denial of a permit . Section 5.96.040(N). The section has been revised so that the findings apply to both new and renewal permits.
Finding for denial #2 of Section 5.96.040(N) . The concern raised during the study session was that the wording of thi s finding, that a renewal permit would be denied if a citation had been issued in the last 12 months, supplants the suspension and/or revocation process written into the code. The City Attorney’s office has reviewed this provision and proposes to delete th e wording calling for denial based upon a citation having been issued in the last 12 months. The remainder of the finding would remain.
This topic was discussed with the resident group on February 8, 2022. The group asked that a 7th finding be added that allowed for a permit to be denied if based on the totality of the enforcement record demonstrating the owner or representative was not using prudent business practices to ensure the STVR was operated in compliance with the regulations. The City Attorney’s office did not recommend adding this language.
Understanding the concerns of the resident group, it will be incumbent on Staff to monitor STVR properties and take action as allowed in the Code when warranted.
Timeframe to reapply . New section 5.96.040(O ) clarifies that when a permit is denied the applicant can apply again after 12 months from the denial date.
Mailed notification of new/renewed permits . Staff will continue to mail out notices on both new and renewed permits as required by Section 5.96.04 0(R), which was also conveyed to the resident group when we met on February 8 th. After further review, Staff is proposing to change the mailing radius to property owners within 150 feet of the subject property as opposed to 300 feet. The reduction is for e fficiency purposes and given that many notices are returned undeliverable. Should the Council desire to maintain a 300-foot notification radius, the distance can be changed back.
Section 5.96.050 Standard operational requirements and conditions.
Occupancy limits. Section 5.96.050(C) has been revised to state that children two years of age or younger do not count towards the occupant maximum.
Trash collection . Section 5.96.050(G) has been revised to exempt home shares and STVRs in common interest developm ents with communal bins from the requirement of obtaining additional trash receptacles and walk-up yard service.
Submittal of URLs . Section 5.96.050(K) has been revised so that URLs are no longer required to be submitted monthly. When Staff met with the resident group, the group
5.H
Packet Pg. 108
Cathedral City Page 4 of 5 Printed on 4/21/2022
understood Staff’s reasoning for a yearly submittal with the application, as opposed to each month. They did request consideration for submittal twice a year. Instead, Staff recommends that it is collected with the initial or ren ewal permit application and that the owner submit updated information within 14 days of a change in the URL.
Noticing on suspended or revoked permits . 5.96.050(S) is deleted as it belongs in Section 5.96.070 (Violations, notices, remedies and penalties), which also revises the notification requirements and is discussed later in this report.
Producing identification upon request . Section 5.96.050(P) allows for issuing a citation to an owner when the owner or owner’s agent refuses to provide their governme nt ID upon request. It also states that the owner shall be cited if the responsible person refuses to provide a government ID. Staff proposes to change the “shall” to “may” as the responsible person’s information can be obtained from the Informational Form and the responsible person issued a citation. This revision does not preclude the ability to cite the owner if the Informational Form does not include this information.
Section 5.96.070 Violations, notices, remedies and penalties
The code has been revised to provide for two types of suspensions:
(1) An automatic six-month suspension upon issuance of a third citation within 12 months. An appeal can only be filed as it relates to the duration of the suspension.
(2) Allows for the City Manager/designe e to recommend suspension based on health, safety and general welfare considerations. A hearing is held by a hearing officer to determine the suspension.
In both instances the ability to file civil proceedings remains.
Currently, there are three STVR p ermits with three citations. For these three properties, it is appropriate to not suspend the permit unless a fourth citation is issued.
The noticing requirements are also proposed to be revised as follows:
(1) Notice that a permit has been suspended w ill be provided to property owners within 150 feet of the STVR property.
(2) If there is an appeal, the proposed revisions allow for notice of the appeal to those persons that filed a complaint within the preceding 12 months and provide for the opportuni ty to provide written statements for the hearing officer’s consideration.
Section 5.96.080 Unpermitted / Unlicensed Short Term Vacation Rentals.
This section is new. It clarifies that any owner operating a STVR while under suspension is deemed operating without a permit and subject to penalties and fines for operating or marketing an unpermitted STVR.
5.H
Packet Pg. 109
Cathedral City Page 5 of 5 Printed on 4/21/2022
Sections (B) and (C) puts hosting platforms on notice that they are prohibited from facilitating and advertising unpermitted short term vacation rentals. While Section (D) also states that owner and or managing agents are prohibiting from operating or marking an unpermitted STVR.
Resolution Establishing Penalties and Fines
A Resolution establishing updated penalties and fines for violation of short -term vacation rental regulations is attached. It has been revised to delete the higher fines for advertising regulations and making them consistent with all other operational and permitting violations. Advertising violations will escalate at $1,000/$3,000/$5,000 and suspension of the permit within a 12-month period.
The Resolution also includes the fines and penalties assessed to Hosting Platforms for violation of the regulations.
FISCAL IMPACT:
Staff and City Attorney costs have been incurred in drafting and r eviewing of the Ordinance and Resolution.
ATTACHMENTS:
FINAL Ordinance Amending Chapter 5.96 - 4.5.2022
5.H
Packet Pg. 110
1 RIV #4875-1993-0133 v3
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CATHEDRAL CITY, CALIFORNIA, AMENDING CHAPTER
5.96 OF TITLE 5 OF THE CITY OF CATHEDRAL CITY
MUNICIPAL CODE REGARDING SHORT TERM
VACATION RENTALS
WHEREAS, on September 9, 2020 the City Council, having made numerous recitals and findings regarding the public peace, health. safety and general welfare being affected by the increasing number of Short Term Vacation Rentals, adopted Ordinance No. 842 establishing Chapter 5.96 of Title 5 of the Cathedral City Municipal Code; and WHEREAS, Cathedral City residents have expressed concerns to the City Council that existing Sho rt Term Vacation Rental (STVR) regulations are not being adequately enforced and the proliferation of STVRs is negatively affecting the quality of life within the City; and
WHEREAS, in practice, City Staff charged with enforcing the STVR regulations has come to learn that certain provisions of the STVR regulations, if amended, would better facilitate the City’s enforcement efforts; and
WHEREAS, in late 2021 and early 2022, City Staff, with the participation of the City Attorney’s office and a number of Cath edral City residents, reviewed Chapter 5.96 and other related provisions of the Code (STVR regulations) and identified areas to be recommended for amendment; and
WHEREAS, on January 26 , 2022, City Staff presented to the City Council for discussion and di rection, a report outlining recommended amendments to the STVR regulations to the City Council for discussion and direction; and WHEREAS, the City Council finds that the proposed amendments are consistent with and enhance the existing STVR regulations; and
WHEREAS, the City Council finds the regulation of Short Term Vacation Rental units is in the best interest of the public health, safety and general welfare.
WHEREAS, STVRs (also known as commercial transient housing arrangements) are not traditional rent als or leases that convey a real property interest, but rather they are overnight accommodations offered for hire for periods of 30 days or less pursuant to a license agreement. In this respect, they are quite similar to a transient occupancy, hotel, motel, or bed and breakfast; and
WHEREAS, the City Council recognizes that unregulated STVRs can create disproportionate impacts related to their size, excessive occupancy, and lack of proper facilities; and
WHEREAS, the presence of unregulated STVRs in established residential neighborhoods can create negative compatibility impacts and nuisance violations,
5.H.a
Packet Pg. 111
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 2 RIV #4875-1993-0133 v3
among which include, but are not limited to, excessive noise, on -street parking, accumulation of trash, and diminished public safety; and WHEREAS, if not for the City’s existing moratorium , permanently place on new STVRs by Ordinance 842, the conversion of long-term housing units to short-term rentals would have resulted in the loss of long-term housing for Cathedral City residents; and WHEREAS, it is in the public interest that STVR uses be regulated in order to help preserve housing for long-term tenants and to minimize any potential deleterious effects of short-term rental properties on other properties in the surro unding neighborhoods in which they are located; and
WHEREAS, the City Council finds that there is a substantial interest in furthering the public health, safety and welfare by controlling density, by protecting the residential character of areas designated for residential use, by promoting home ownership and providing appropriate housing stock to meet the needs of the City, by establishing and enforcing minimum life safety standards, and by preserving the long-term rental housing market located within the City; and
WHEREAS, STVRs within the City are subject to the City's business licensing ordinance; and
WHEREAS, STVRs within the City are subject to the City's transient occupancy tax; and
WHEREAS, the City desires and intends to amend the Cathedral City Municipal Code to make express and clarify provisions concerning STVRs, promote accurate collection of the transient occupancy tax, and enhance and maintain the residential character of its residential zones by providing regulations for short -term residential rentals within the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. A MENDMENT OF CHAPTER 5.96 OF TITLE 5 OF THE CITY OF CATHEDRAL CITY MUNICIPAL CODE.
Chapter 5.96 [Short Term Vacation Rental Un its] of Title 5 the City of Cathedral City Municipal Code is hereby amended to read as shown in Exhibit "A".
SECTION 2. OPERATIONAL REQUIREMENTS.
All existing STVR permits and any issued prior to the effective date of this Ordinance shall come into compliance with the standard operational requirements and conditions imposed under Section 5.96.050 of Exhibit "A" by no later than the thirtieth (30th) day following the effective date of this Ordinance. The standard operational requirements and condition s imposed under Section 5.96.050 of Exhibit "A" shall be applicable to all permits issued or renewed on or after the effective date of this Ordinance.
The City will post this Ordinance on its website, will make copies of the Ordinance
5.H.a
Packet Pg. 112
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 3 RIV #4875-1993-0133 v3
available at City Hall, and will mail or email a copy of the Ordinance to all existing STVR permittees prior to the effective date of the Ordinance. Failure of any permittee to receive a copy of the Ordinance shall not excuse permittee's failure to comply with the requirements of the Ordinance. The City reserves the right to amend, modify, repeal, or readopt the Ordinance, including without limitation the right to discontinue issuance of new or renewed STVR permits.
SECTION 3. EFFECTIVE DATE.
This ordinance shall be effective 30 days from and after its final passage.
SECTION 6. SEVERABILITY.
If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of comp etent jurisdiction, then such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Cathedral City hereby declare they would have adopted this ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions , sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
SECTION 7. PUBLICATION.
The City Clerk is authorized and directed to cause this ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Section 36933 (a) or, to cause this ordinance to be published in the manner required by law using the alternative summary and posting procedure authorized under Government Code (c).
INTRODUCED at the regular meeting of Cathedral City Council on the _____ day of __________2022.
PASSED, APPROVED AND ADOPTED at the regular meeting of Cathedral City Council on the _______ day of ___________2022.
AYES:
NOES:
ABSTAIN
Ernesto M. Gutierrez, Mayor
5.H.a
Packet Pg. 113
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 4 RIV #4875-1993-0133 v3
ATTEST:
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
Eric S. Vail, City Attorney
5.H.a
Packet Pg. 114
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 5 RIV #4875-1993-0133 v3
EXHIBIT A
TITLE 5 BUSINESS REGULATIONS
Chapter 5.96 Short Term Vacation Rental Units
5.96.010 Purpose.
The purpose of this Chapter is to establish regulations for the use of privately owned residential dwellings as Short Term Vacation Rental s (STVR), to ensure the collection and payment of applicable transient occupancy taxes, and minimize the nega tive secondary effects of STVRs on surrounding residential neighborhoods. This Chapter also establishes a method to phase out STVRs within the City within two years from and after the effective date of ordinance 842, on October 9, 2020, except in (a) commo n interest developments with established CC&Rs that do not prohibit STVRs, and (b) home sharing as permitted under this code. This Chapter 5.96 does not provide any owner of residential property with the right or privilege to violate any private CC&Rs applicable to the owner's property that may prohibit the use of such owner's residential property as a STVR or for home sharing as discussed in this Chapter.
5.96.020 Definitions.
For purposes of this Chapter only, the following words and phrases shall have th e meanings provided below. Terms not expressly defined below shall have the meaning provided in other applicable sections of the Cathedral City municipal code. Terms not defined in the municipal code shall have the meaning provided in a dictionary of the English language of common and current usage.
"Advertise" means the act of drawing the public's attentio n to a Short Term Vacation Rental in order to promote the availability of the residence for use as a short - term rental. Said advertising may be found in any medium, including but not limited to, newspaper, magazine, brochure, website, or mobile application. "Applicable laws, rules and regulations" means any laws, rules, regulations and codes (whether local, state or federal) pertaining to the use and occupancy of a privately owned dwelling unit as a Short Term Vacation Rental.
"Booking Service" means any reservation and/or payment service provided by a person or entity that facilitates a Short Term Vacation Rental transaction between an Owner and a prospect ive Occupant, and for which the person or entity collects or receives, directly or indirectly through an agent or intermediary, a fee in connection with the reservation and/or payment services provided for the Short Term Vacation Rental transaction.
"City Manager' means that person acting in the capacity of the City Manager of the City of Cathedral City or designee.
5.H.a
Packet Pg. 115
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 6 RIV #4875-1993-0133 v3
“CC&Rs" means all legal documents establishing the declaration of covenants , conditions, and restrictions , recorded against a property that is part of a common interest development.
"Coachella valley" means the territory within the boundaries of the cities of Desert Hot Springs, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio, Coachella, and the unincorpo rated area of Riverside County that is within the territorial boundaries of the Palm Springs and Desert Sands Unified School District, and that portion of the Coachella Valley Unified School District located within Riverside County, as such boundaries may be adjusted from time to time as allowed for under the law.
'Common interest development" means a common interest development subject to the Davis -Stirling Common Interest Development Act, as further defined in California Civil Code section 4100, including without limitation homeowners associations, condominium owner associations and similar associations formed pursuant to the aforementioned Act. "Disqualified space" means any publicly owned single family dwelling unit or multi- family dwelling unit, any dwe lling unit subject to recorded affordability covenants, any privately owned multi-family rental housing, any property that is fractionally owned, any accessory dwelling unit built or permitted after January 1, 2020, or any portion of a dwelling unit rented separately from the main residential dwelling unit, including without limitation any garage. balcony, patio. yard, outdoor area or amenity, any recreational vehicle, any tent, space, lot, areas or site in any campsite, park or other property any commercial or industrial structure, any structure not built for habitable use, any barn, shed, storage unit, or tree house.
"Good Neighbor Brochure" means a document prepared by the City, as ma y be revised from time to time, which summarizes the general rules of conduct, consideration and respect pertaining to the use and occupancy of the Short Term Vacation Rental unit. 'Home sharing or home share" means a form of Short Term Vacation Rental of a privately owned qualifying residential unit located on property that i s the primary residence of the owner(s), a portion of which , not exceeding fifty percent (50%) of the total bedrooms, is rented occasionally for occupancy, dwelling , lodging, or sleeping purposes for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days as full use days to another person or persons, incidentally to the normal occupancy by the owner(s), where at least one (1) of the owners occupies the qualifying residential dwelling, or an accessory dwelling unit located on the same property, for the duration of the rental contract. Home sharing or home share is not permitted in any disqualified space. Home sharing or home share does not include the use of a lodging facility, hotel, motel or a timeshare subject to Chapter 9.92 of this code. Unless expressly provided otherwise, all provisions of this Chapter that apply to Short Term Vacation Rentals are applicable to home sharing or home share.
"Hosting Platform" means a person or entity that participates in the short-term rental business by providing, and collecting or receiving a fee for, Booking Services
5.H.a
Packet Pg. 116
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 7 RIV #4875-1993-0133 v3
through which an Owner may offer premises for an occupant on a short -term basis.
Hosting Platforms usually, though not necessarily, provide Booking Services through an online platform that allows an Owner to advertise the premises through a website provided by the Hosting Platform and the Hosting Platform conducts a transaction by which potential occupants arrange their use and their payment, whether the would -be occupant pays rent directly to the Owner or to the Hosting Platform. Hosting Platform also means a marketplace that is created for the primary purpose of facilitating the short- term rental of a residential unit offered for occupancy for tourist or transi ent use for compensation to the offeror of that unit, and the operator of the hosting platform derives revenues, including booking fees or advertising revenues, from providing or maintaining that marketplace. "Facilitating" includes, but is not limited to, the act of allowing the offeror of the residential unit to offer or advertise the residential unit on the Internet Web site provided or maintained by the operator.
House trailer" means a trailer designed for human habitation. The term does not include manufactured housing.
"Local contact person" means the person designated by the owner or the owner's authorized agent or representative who shall be available twenty -four (24) hours per day, seven days per week for the purpose of: (1) responding in person within thirty (30) minutes to complaints regarding the condition, operation, or conduct of occupants of the Short Term Vacation Rental unit; and (2) taking remedial action to resolve any such complaints. The local contact pe rson must be a resident of the C oachella valley.
"Managing agency or agent" means a person, firm, or agency repr esenting the Owner of the Short Term Vacation Rental , or a person, firm, or agency owning or operating more than one (1) Short -term vacation rental. "Multi-family rental housing" means any complex, structure or a portion of a structure zoned, used and/or designated as rental dwellings and that includes two (2) or more independent dwelling units. This includes, but is not limited to, duplexes, triplexes, apartments, and townhouses.
"Multiple Rentals" means the ownership or controlling interest of any number of real properties in excess of one residential property in the City used for purposes of Short Term Vacation Rentals as defined in this Chapter 5.96.
"Occupant" means an individual of any age that is present on the property during the duration of the Short Term Vacation Rental contracted stay. Persons hired by the owner to perform bona fide cleaning, maintenance, landscaping, construction, repair or sim ilar services on the property will not be considered to be occupants, provided said persons are solely engaged in activities directly related to the services for which they were h ired. Occupant also includes the primary residents of a dwelling who remain on the property during the duration of a home share.
5.H.a
Packet Pg. 117
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 8 RIV #4875-1993-0133 v3
"Owner" means the person(s) or entity(ies) that hold(s) legal and/or equitable title to the property used for a Short Term Vacation Rental.
"Owner's authorized agent," or "manager," or "managing agency" m eans an individual or business entity, or their representative, appointed by an Owner to solicit applications, execute agreements, or otherwise act on Owner's behalf in the rental of property as a Short Term Vacation Rental.
"Permit" and "Renewal Permit" means a permit that allows the use of a privately owned residential dwelling as a Short Term Vacation Rental pursuant to the provisions of this Chapter, and incorporates by consolidation the transient occupancy regi stration permit as required by C hapter 3.24; and, may also be referred to as “STVR permit” or “STVR operating permit”.
"Property" or Premises means a residential legal lot of record on which a Short Term Vacation Rental is located and the actual single -family house or other residential dwelling unit, including all of its improved real property, which is used as a Short Term Vacation Rental or Home Share.
“Qualifying residential dwelling unit" means a residential dwelling unit that is not a disqualified space and that may be, including wit hout limitation, any single family detached dwelling unit, any accessory dwelling unit built or permitted prior to January 1, 2020, a ny multi-family dwelling unit where the units are privately owned. including without limitation any duplex, triplex, quadra plex, or condominium, any mobile home or house trailer on a residential lot or within a mobile home park, or other similar structure or portion thereof as may be deemed qualified by the City. "Recreational vehicle" shall mean a vehicle intended for tempora ry occupancy, with or without a motor, including without limita tion any automobile, motorhome, travel trailer, t ruck campers, camping trailers, park trailers, fifth wheel trailers, house cars, trailer coaches, slide in or pop up campers, truck campers, tent trailers and any boat or house boat.
“Responsible person" means an occupant of a Short Term Vacation Rental who is at least twenty -five (25) years of age and who is legally responsible for ensuring that all occupants of the Short Term Vacation Rental comply with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject Short Term Vacation Rental unit, and who may be held liable for any violation of all applicable laws, rules and regulations set forth in this Chapter . "Short Term Vacation Rental or STVR" means any privately owned qualifying residential dwelling unit or portion thereof, rented for occupancy, dwelling, lodging, or sleeping purposes for a period of thirty (30) consecutive calendar days or less, counting por tions of calendar days as full use days , in exchange for any form of monetary or non -monetary consideration such as, but not limited to, trade, fee, swap or any other in lieu of cash payment . A STVR shall not be and is not permitted for use in any disquali fied space. A STVR does not include the use of a lodging facility, hotel, motel or a timeshare subject to Chapter 9.92 of this code.
5.H.a
Packet Pg. 118
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 9 RIV #4875-1993-0133 v3
"Transient occupancy tax" means the tax levied by the City in accordance with Chapter 3.24 of the Cathedral City Municipal Code. This tax is levied upon individuals or businesses engaged in the sale of sleeping accommodations to the public, which accommodations include, among others, Short Term Vacation Rentals.
5.96.030 Authorized agents or representatives.
An owner may authorize an agent or a representative to comply with the requirements of this Chapter on behalf of the o wner. However, the owner shall not be relieved from any personal responsibility for noncompliance with any applicable law, rule or regulation pertaining to the use and occupancy of the subject Short Term Vacation Rental unit, regardless of whether such noncompliance was committed by the owner's authorized agent or representative or the occupants of the owner's Short Term Vacation Rental unit.
5.96.035 Permit s required for Short Term Vacation Rental units; termination of Short Term Vacation Rental s; exceptions.
A. All Permits. No person shall use any qualifying residential dwelling unit for a Short Term Vacation Rental without a valid STVR permit issued pursuant to this Chapter B. New Permits. Upon the effective date of Ordinance No. 842. no person or entity shall be issued a permit for a Short Term Vacation Rental, except for a new permit (1) to conduct home sharing in any qualifying residential dwelling u nit, or (2) to operate a Short Term Vacation Rental in a qualifying residential dwelling unit within a common interest development as permitted under this Chapter.
C. Renewal Permits. Upon the effective date of Ordinance No. 842. no person or entity shall be issued a renewal permit for a Short Term Vacation Rental that will be valid beyond January 1, 2023 except for a renewal permit (1) to conduct home sharing in any qualifying residential dwelling unit. or (2) to operate a Short Term Vacation Rental in a qual ifying residential dwelling unit within a common interest development as permitted under this Chapter .
D. Termination of Existing Permits. Effective on January 1, 2023, all existing STVR Permits previously issued by the City shall terminate; and permittees shall discontinue the use of any property for a Short Term Vacation Rental , and shall not advertise, offer to rent, or rent property for a Short Term Vacation Rental , unless expressly excepted above.
E. Lessee of Long Term Rental Property . The lessee of a long term rental property shall not obtain a permit and is prohibited from using the property as a Short Term Vacation Rental. No person who has rented a Short Term Vacation Rental shall sublet such dwelling unit or any portion thereof to any other person or entity.
F. Properties that are fractionally owned may not be used as Short Term Vacation Rentals
5.H.a
Packet Pg. 119
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 10 RIV #4875-1993-0133 v3
G. Pursuant to this Chapter and any other applicable provisions of this Code, multiple rentals under one Short Term Vacation Rental permit are prohibited. Each Short Term Vacation Rental property shall require a uniquely numbered permit.
5.96.040 Short Term Vacation Rental / home share permit required — application and fee.
A. The owner is required to submit an application signed by the owner and obtain a permit from the City, pursuant to the provisions of this section, before renting and/or advertising the availability of any Short Term Vacation Rental unit or home share unit. The owner may authorize an agent or representative to process the application.
B. The permit must be renewed annually to remain valid. An invalid permit is equivalent to not having a permit. A permit shall not be renewed if there are unresolved City code compliance cas es, outstanding City fines or fees or City liens on the property.
C. Failure to obtain an i nitial new permit or renewal permit before renting and/or advertising the Short Term Vacation Rental shall result in fines, penalties and other remedies as provided in this Chapter, including but not limited to future denial.
D. If a renewal application is not submitted and the fees not paid by the expiration of the existing permit, the owner shall have thirty (30) days from the expiration date of the existing permit to come into compliance with all provisions in this Chapter.
E. The owner must submit the following information on a permit application form provided by the City:
1. Identify whether the permit is for a Short Term Vacation Rental or a home share;
2. The name, address, and telephone number of the owner of the subject Short Term Vacation Rental unit;
3. The name, address, and telephone number of the owner's authorized agent or representative, if any;
4. The name, address, and telephone number of the local contact person available twenty four hours a day;
5. The address of the proposed Short Term Vacation Rental unit;
6. The number of bedrooms and the applicable occupancy limit of the proposed Short Term Vacation Rental . If a home share, also indicate the number of bedrooms on the property proposed to be rented;
5.H.a
Packet Pg. 120
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 11 RIV #4875-1993-0133 v3
7 Photo of the front of the Short Term Vacation Rental unit sufficient to allow City to visually identify the unit, the minimum size of which shall be 4" x 5":
8. Submit all information necessary for Tran sient Occupancy Tax (TOT) registration;
9. An executed indemnification and hold harmless agreement in a form approved by the City Attorney;
10. An executed consent to inspection form signed by the owner of the property; and
11. Such other information as the City Manager or designee deems reasonably necessary to administer this Chapter.
F In addition to the requireme nts of subsection E above, for properties located in any area governed by a common interest development, the owner or the owner's authorized agent or representative must submit a letter from the association's governing board stating that the CC&Rs and rules and regulations of the common interest development do not prohibit Short Term Vacation Rental s to operate within the common interest development and on the subject qualifying residential unit.
G. The permit application and any associated business license s shall include an affidavit signed by the owner under penalty of perjury stating that all the information in the application is correct and that the owner maintains full responsibility that the Short Term Vacation Rental shall be advertised, rented, operated and maintained in compliance with this Chapter and all other relevant municipal codes.
H. The owner must provide proof of Short Term Vacation Rental insurance that covers the rental of the property as a Short Term Vacation Rental with limits as may be established by the City Manager and amended from time to time. Proof of insurance shall be provided at the time of both initial and renewal permit issuance and shall remain in effect for the duration of the annual permit. Failure to maintain Short Term Vacation Rental insurance shall result in suspension of the permit.
I. Each application shall contain an executed indemnification and hold harmless agreement in a form approved by the City attorney agreeing to indemnify, hold harmless and defend the City, the City Council of the City, individually and collectively, and the City representatives, officers, officials, employees, agents and volunteers from any an d all claims, demands, damages, fines, obligations, suits , judgments, penalties, causes of action, losses, liabilities. or costs at any time received, incurred or accrued as a result of, or arising out of owner's or authorized agents or representative or l ocal contact person's actions or inaction in the operation, occupancy use and/or maintenance of the property.
5.H.a
Packet Pg. 121
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 12 RIV #4875-1993-0133 v3
J. The permit application shall be accompanied by the payment of an application , inspection fee and registration fee in an amount established by City Council resolution from time to time.
K. The permit application shall be accompanied by a consent to inspection form signed by the owner of the property by which the owner agrees and consents to a heal th and safety inspection. The City shall conduct a health and safety inspection of the proposed Short Term Vacation Rental unit prior to issuing a new permit and prior to issuing any renewal permit. A health and safety inspection shall include verification of the number of bedrooms that were originally permitted and authorized under the original certificate of occupancy for the unit on the qualifying residential dwelling unit. The City shall also verify that no space has been converted into a bedroom or liv ing space without all required permits.
L. No initial or renewal permit shall be issued if the property to be used for Short Term Vacation Rental s does not have functioning smoke and carbon monoxide detectors, HVAC, electricity or plumbing, the structure h as been substantially modified in any way that required a building permit from the City and a permit was not obtained, or the City determines that any other conditions are present on the property that would present a substantial threat to the health, safet y or welfare of guests.
M. If the Short Term Vacation Rental has a privately owned pool or spa, the City inspector shall confirm, prior to the issuance of a new STVR permit or renewal permit, that the pool or spa:
1. Was built in compliance with a valid City issued permit; and
2. Is currently operating safely in compliance with all applicable statutes, codes, rules and regulations.
N. A permit application for a new STVR permit or for a renewal STVR permit shall be denied if the City determines any of the following grounds for denial exist:
1. If, at the time the permit application is being submitted, the City has any open code or building compliance proceedings against the owner with respect to any building, structure, use or land use in the City.
2. If the owner has had a prior permit suspende d or revoked for any Short Term Vacation Rental property in the City within the past twelve (12) months.
3. If the owner is delinquent in the payment of any outstanding fees, assessments or taxes owed to the City related to any property located in the City that is owned by the owner or is not current in submitting any monthly transient occupancy tax return forms due to the City.
5.H.a
Packet Pg. 122
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 13 RIV #4875-1993-0133 v3
4. If there is credible evidence that any governing documents, including CC&Rs, of a common interest development, or the rules or regulations enacted by the association governing the common interest development, prohibit the use of a property for Short Term V acation Rental purposes.
5. If the Short Term Vacation Rental or home sharing is to be conducted on a property where such use is prohibited under section 5.96.050(Q).
6. If the owner fails to provide any of the required application information described in this section.
O. If a new permit application is denied pursuant to Section 5.96.040(N), the applicant may apply again for a new permit after the passage of twelve (12) months from the date of denial.
P. Subject to the restrictions on new permits in Section 5.96.035(B) within fourteen (14) days of a change of property ownership, change of owner's agent or representative, or any other change in material facts pertaining to the information contained in the permit application, the owner or owner's authorized agent or representative shall submit an application and requisite application fee for a new permit, which must be obtained prior to continuing to rent the subject property as a Short Term Vacation Rental . Changes to the owner's mailing and email addresses, advertising Uniform Resources Locater (URL) and changes of the local contact person may be done by email to the City in a format required by the City and shall not require an application for a new permit.
Q. If the Short Term Vacation Rental is sold, otherwise disposed of, or after an event that results in the property no longer in use as a Short Term Vacation Rental, the owner of his or her agent or representative shall within seven (7) days cancel the permit and delete any and all advertisements of the STVR.
R. Within thirty (30) days of the issuance of a new permit or renewal permit, the City shall mail a notice to all residences within one hundred and fifty (150) feet of the STVR notifying the residents that a permit has been issued and providing information regarding how to lodge complaints regarding the STVR, if any.
S. Permits are subject to any and all amendments to this Chapter as may be enacted by the City Council from time to time; and to any and all changes to policies and procedures developed by the City Manager or his/her designee, consistent with this Chapter.
5.96.050 Standard operational requirements and conditions.
A. The owner and/or owner's authorized agent or representative shall ensure that the property used for Short Term Vacation Rental is used in a manner that complies with all applicable laws, rules and regulations pertaining to the use and occupancy of the subj ect Short Term Vacation Rental unit, and shall further
5.H.a
Packet Pg. 123
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 14 RIV #4875-1993-0133 v3
ensure the occupants of the Short Term Vacation Rental do not create noise in violation of municipal code Chapter 11.96 or other disturbances, engage in disorderly conduct, or violate any applicable la w, rule or regulation pertaining to the use and occupancy of the subject Short Term Vacation Rental.
B. Upon notification that the responsible person and/or any occupant and/or guest of the Short Term Vacation Rental has created noise in violation of municipal code Chapter 11.96 or other disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the subject STVR, the owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall promptly respond to immediately halt or prevent a recurrence of such conduct by the responsible person and/or any occupants. Failure of the owner, the owner's authorized agent or representative an d/or the owner's designated local contact person to respond to calls or complaints regarding the condition, operation, or conduct of occupants and/or guests of the Short Term Vacation Rental within the time designated in the City's complaint protocols shal l be subject to all administrative, legal and equitable remedies available to the City.
C. The number of occupants allowed to be present at any Short Term Vacation Rental or home share shall be limited as follows:
Number of
Bedrooms
Maximum Number
of Occupants
0—Studio 2
1 2
2 4
3 6
4 8
5 or more 10
Children two (2) years of age or younger are not counted towards the occupant maximum.
Notwithstanding the foregoing, the occupancy limits may be exceeded if the owner or authorized representative obtains a special use permit for a special event pursuant to Chapter 9.68 of the City municipal code.
D. During the period of a Short Term Vacatio n Rental , the owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall be available twenty four (24) hours per day, seven (7) days per week for the purpose of responding within thirty (30) minutes to co mplaints regarding the condition, operation, or conduct of occupants of the Short Term Vacation Rental. The owner shall also ensure the responsible person is present at the STVR property during the duration of the rental period.
5.H.a
Packet Pg. 124
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 15 RIV #4875-1993-0133 v3
E. In addition to the noise standards identified in Chapter 11.96 of the code, no radio receiver, musical instrument, phonograph, compact disk player, loudspeaker, karaoke machine, sound amplifier, or any machine, device or equipment that produces or reproduces any sound shall be us ed outside or be audible from the outside of any unit used for Short Term Vacation Rental. Any machine, device or equipment that amplifies music inside any Short Term Vacation Rental shall not be heard beyond the property line of the Short Term Vacation Rental at all times.
F. Upon check in, the owner or owner's agent or representative shall:
1. Be present on -site to check in the responsible person. Video check in is also permitted;
2. Obtain from the responsible person an "Informational Form," as provided by the City which contains:
a. The name, address and copy of the valid government identification of the responsible person;
b. A list of the names of all occupants of the STVR; and c. A list of all vehicle information and license plate numbers of the responsible person and occupants and guests.
3. Advise the responsible person, verbally and in writing, of the following:
a. The City's Short Term Vacation Rental provisions and regulations (e.g. music, noise, trash, occupancy limits, parking);
b. The responsible person must be a present occupant at the property during the duration of the STVR rental period; and
c. The Good Neighbor Brochure.
4. Provide the responsible person with the local contact person's twenty four hour availability information;
5. Require the responsible person sign the "Guest Agreement Acknowledgement" form as provided by the City. Both the "Informational Form" and the "Guest Agreement Acknowledgement" form described above shall be readily available on site during the time the property is rented for inspection upon request by any City officer responsible for the enforcement of the Short Term Vacation Rental laws and regulations or other City employees or contractors as designated by the City Manager, and shall be maintained by the owner for a minimum of three years; and
6. Ensure a copy of the permit and good neighbor brochure shall be posted in a conspicuous place within the Short Term Vacation Rental property.
5.H.a
Packet Pg. 125
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 16 RIV #4875-1993-0133 v3
G. Permitted Short Term Vacation Rental properties shall have walk up trash service for trash cans and are further required to have a total of two regular trash cans and two recycling trash cans provided by and through the City’s w aste management/trash service provider . Home shares and Short Term Vacation Rental units located in common interest developments with communal waste bins are exempt from this requirement. The owner, the owner's authorized agent or representative shall ensure compliance with all the provisions of Chapter 6.04 and section 13.80.090 of the City municipal code.
H The owner, the owner's authorized agent or representative and/or the owner's designated local contact person shall post a copy of the permit and a notice in the form required by the City of the applicable regulations in a conspicuous place within the Short Term Vacation Rental.
I. The owner and/or the owner's authorized agent or representative shall include the current permit number on or in any adverti sement appearing in any newspaper , magazine, brochure, television trade paper, internet website, etc., that promotes the availability or existence of a Short Term Vacation Rental unit in a place or location deemed acceptable by the City Manager or designee. In the instance of audio-only advertising of the same, the permit number shall be read as part of the advertising. The maximum occupancy of the Short Term Vacation Rental unit, as provided for in subsection 5.96.050(C), shall be clearly identified in any advertisement. The Short Term Vacation Rental number must also be prominently and legibly included in the first line of the property description text in any advertisement in the following format: "City of Cathedral City STVR Permit No." followed by the assigned permit number. Additionally, the following shall be clearly identified in any advertisement:
1. Maximum occupancy;
2. Requirements for compliance with the City's noise and outdoor activity standards and regulations;
3. Maximum number of cars allowed;
4. A statement that the Short Term Vacation Rental occupants shall respect the neighbors’ privacy and peaceful enjoyment of their property;
5. The applicable rate of the City's transient occupancy tax; and
6. A photo of the front of the Short Term Vacation Rental.
J. Unless otherwise provided in this Chapter, the owner of a Short Term Vacation Rental unit and/or the owner's authorized agent or representative shall be subject to and shall comply with all provisi ons of Chapter 3.24 concerning transient occupancy taxes, including, but not limited to, submission of a monthly or alternative return, which shall be filed monthly even if the Short Term Vacation Rental unit was not rented during each such month. The owne r shall maintain
5.H.a
Packet Pg. 126
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 17 RIV #4875-1993-0133 v3
for a period of three years records in such form as the tax administrator may require to determine the amount of transient occupancy tax owed to the City.
The tax administrator shall have the right to inspect such records at all reasonable times. Such records shall be maintained at the owner's premises or shall be available for delivery to the tax administrator within fourteen days after request. If advertising on an online platform and such platform provides monthly statement to an owner, the monthly statement shall be attached to the monthly transient occupancy tax reports
K. All internet listing sites (e.g. website URLs) and listing numbers associated with a Short Term Vacation Rental shall be submitted within thirty days of approval of the permit and annually thereafter. Any change to internet listing sites (URL) shall be submitted to the City in accordance with Section 5.86.040(P).
L. No fence or wall required by section 9.14.110, 9.16.110, 9.18.110, 9.20.110,
9.22.110, or 9.46.110 or any other provision of title 9 of the City's municipal code shall be removed, in whole or in part, from the rear or side yard of any Short Term Vacation Rental.
M. Operation of a Short Term Vacation Rental includes but is not limited to any one or more of the following:
1. Advertisement of the property means on any web based advertising, hosting platform, print media, bulletin, signage, radio, television or on any other medium for the purposes of promoting interest in, testing the market for, or soliciting the occupancy of a property for a period of thirty (30) consecutive days or less.
2. An owner, agent or other representative of the owner has an interest in rental, exchange, trade, gift, or grant of a gue st stay at a property of less than thirty (30) consecutive days or less.
3. An owner, agent or other representative of the owner interacts with another party, whether directly or indirectly, through personal or digital/electronic contact with the intent to provide availability of the property for occupancy of thirty (30) days or less, or to complete a rental and/or reservation of the property for future occupancy of thirty (30) days or less.
N. A maximum of one vehicle per bedroom of the STVR is permitted t o park in the garage and driveway of the STVR or property or on the street. Vehicle parking in front of any mailbox is prohibited. The owner or the owner’s authorized agent or representative shall ensure compliance with all applicable laws, rule and regulations related to parking of vehicles.
O. The minimum duration of a Short Term Vacation Rental contract shall be four (4) days, three (3) nights. Properties used for a home share and Short Term Vacation Rentals in common interest developments are not subjec t to this minimum duration requirement.
5.H.a
Packet Pg. 127
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 18 RIV #4875-1993-0133 v3
P While present at the Short Term Vacation Rental property, should a City employee or agent ask to see the government issued identification of the owner or the owner's agent or representative and that individual is u nable or refuses to provide such identification, then a citation will be issued to the owner. Should a City employee or agent ask to see the government issued identification of the responsible person and if the individual is unable or refuses to provide identification, then a citation may be issued to the owner. If no one responds or is willing to be identified as the responsible person, then a violation will be issued to the owner and the local contact person shall either locate the responsible person or e vict the tenants from the Short Term Vacation Rental .
Q. Short Term Vacation Rentals are prohibited in every disqualified space.
R. All home maintenance and repairs (external and internal), garden and yard maintenance, and pool cleaning and maintenance shall not be performed between the hours of 5 p.m. on Friday through 8 a.m. on Monday, except in the case of an emergency or the occurrence of an unexpected event that reasonably warrants a timely or immediate response. Repairs and maintenance shall not be sched uled in advance to occur during the days and time specified in this subsection.
S In addition to the noise standards identified in Chapter 11.96 of the code, all use of outdoor amenities and/or outdoor games or any outdoor activities that create noise between the hours of 10 p.m. and 8 a.m. is prohibited. A sign stating these restrictions must be clearly visible near any such spa/pool or posted on all interior doors leading to the exterior amenities.
T. All Short Term Vacation Rental contracts shall be filed with the City prior to occupancy or within twenty four (24) hours of execution of the contract of a Short Term Vacation Rental by occupants. The City shall utilize this information for transient occupancy tax collection and for code compliance purposes. The exact number of occupants shall be included in the contract as well as all City municipal code requirements regulating occupancy limits, noise, outdoor amplified music prohibition, public nuisance, parking, trash, and other code requirements related to Short Term Vacation Rental occupancy.
U. The City Council shall promulgate, and may amend from time to time, protocols by resolution setting for the appropriate process for filing complaints regarding alleged violations of the municipal code occurring at a Short Term Va cation Rental unit or allegedly committed by the owner, occupants, local contact person, or other person.
5.96.060 Additional or modified operational requirements and conditions.
A. The City Manager . or designee, shall have the authority to impose additional conditions on the use of any given Short Term Vacation Rental unit to ensure that
5.H.a
Packet Pg. 128
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 19 RIV #4875-1993-0133 v3
any potential secondary effects unique to the subject Short Term Vacation Rental are avoided or adequately mitigated.
B. The standard conditions set forth herein may be modified by the City Manager , or designee, upon request of the owner or the owner's authorized agent or representative based on site -specific circumstances for the purpose of allowing reasonable accom modation of a Short Term Vacation Rental . All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a Short Term Vacation Rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self -induced or economic. Any modifications of the standard conditions shall not furthe r exacerbate an already existing problem.
5.96.070 Violations, notices, remedies and penalties.
A. The City Council shall establish fines, penalties, and other charges for violation of this Chapter by resolution, which may be amended from time to time.
B. Notice of Violation / Administrative Citation
1. The City may issue and the Owner may receive a notice of violation or administrative citation for any violation of this Chapter 5.96, or any other provision of this Code which is violated during a Short Term Vacation Rental including, without limitation, the City's noise ordinance, by the short- term vacation rental occupant.
2. The City may issue a notice of violation or administrative citation to any occupant, invitee, renter, lessee or Owner of the Property, or Managing agency or agent, and/or Hosting Platform for a violation of any provision of this Chapter of other provisions of the Code pursuant to Chapter 13.
3. Each and every day, or portion thereof, that a violation of this Chapter and/or Code exists constitutes a separate and distinct violation for which an administrative citation may be issued. Such notice of violation o r administrative citation shall be issued, notice given, and any appeals heard in the manner and by the process prescribed by Title 13 of this Code, as amended from time to time.
4. In addition or in the alternative, any violation of this Chapter may constitute a misdemeanor which may be subject to the maximum punishment therefor as allowed by law.
5. The City may issue , and the Hosting Platform shall be subject to, an administrative citation for ea ch violation of Section 5.96.080 of this Chapter. Each and every violation by a Hosting Platform carries a fine of
5.H.a
Packet Pg. 129
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 20 RIV #4875-1993-0133 v3
no less than $1,000 per violation per day; or as that fine amount may be amended and set from time to time by resolution of the City Council.
C. Suspension of a Short term Vacation Rental Unit Permit
1. Upon the issuance of a third notice of violation and/or administrative citation within twelve (12) months at the same Short Term Vacation Rental Property, the Director of Community Development or his/her designee shall suspend the permit for a period of time determined by the City, not exceeding six ( 6) months.
2. The City Manager or his/her designee may suspend a Short Term Vacation Rental permit, if he/she determines, based on substantial evidence, that such suspension is necessary to protect or preserve the public health, safety and general welfare, irrespective of the number of notices of violation and/or administrative citations issued,
3. The City shall give written Notice of Suspension to the owner of the Short Term Vacation Rental unit. The permit suspension is effective three (3) days following the date the written Notice of Suspension is sent by certified or registered mail. Notice shall be sufficient if mailed to the owner/permittee at the address shown in the last application for a permit or renewal permit, whether or not the mailing is receipted for or claimed. The Notice is deemed received three days (3) days following the date the Notice is sent.
4. Notice of Suspension shall include all of the following information:
a. The name of the subject Short Term Vacation Rental unit permit holder and owner;
b. The street address or definite location where the violation(s) occurred; c. The code section(s) violated;
d. A description of the conditions or actions which warrant suspension, of the subject permit;
e. A description of any prior action taken by the City to gain compliance with the code with regards to the subject violation(s); f. The name, title and telephone number of the official making the decision.
g. The right to appeal a Notice of Suspension issued for reasons other than Section 5.96.070(C)(1) and the procedure to timely initiate an appeal of the Notice of Suspension.
5. Right to Appeal Notice of Suspension
5.H.a
Packet Pg. 130
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 21 RIV #4875-1993-0133 v3
a. The issua nce of a Notice of Suspension pursuant to Section
5.96.070(C)(1) may be appealed to a hearing officer to challenge only the duration of the suspension period pursuant to the procedure set forth in this Chapter 5.96. [Nothing in this Chapter 5.95 shall prohibit a permittee from challenging/appealing the third citation upon which the Notice of Suspension is based in accordance with the process set forth in Chapter 13.]
b. The issuance of a Notice of Suspension pursuant to Section
5.96.070(C)(2) may be appealed t o an independent hearing officer pursuant to this Section.
6. A permittee issued a Notice of Suspension may, within ten (10) days of the date deemed to be received pursuant to Section 5.96.070(C)(3) , appeal the decision to a hearing officer, subject to the limitations set forth in Section 5.96.070(C)(5)(a) and (b), by submitting a written notice to the City Clerk, on a form provided by the City along with the required filing fee. The City Clerk, or his or her designee, shall fix a date, time and place f or the hearing to consider the suspension of the subject Short Term Vacation Rental permit. Such date shall be not less than ten (10) calendar days and not more than forty -five (45) calendar days from the date the notice was submitted to the City Clerk.
7 The City Clerk or his/her designee shall prepare and give Notice of the Appeal Hearing pursuant to Section 13.150.050 of Chapter 13.150 if this Code.
8. If a Short Term Vacation Rental permit is suspended for any reason, all property owners within one hundred fifty (150) feet of the suspended Short Term Vacation Rental property shall be provided written notice of the suspension. Those p roperty owners that, within the prior twelve (12) months, lodged with the City a complaint(s) concerning the subject STVR may be provided written notice of any scheduled appeal hearing, if any, no more than ten (10) days after the date when the appeal period ends , and may also be given the opportunity to submit written statements for consideration by the hearing officer, in his or her discretion, at the appeal hearing.
9. After the City Clerk gives Notice of the Appeal Hearing, the hearing process for an Appeal Hearing shall be the same as those set for a hearing on the modification of revocation o f a permit set forth in Chapter 13.150 of this Code.
D. Modifications and Revocations
1. A violation of any provision of this Chapter by any of the occupants, responsible parties, owner(s) or the owner's authorized agent(s) or representative(s) shall aut horize the City Manager, or designee, to
5.H.a
Packet Pg. 131
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 22 RIV #4875-1993-0133 v3
recommend the modification of the Short Term Vacation Rental Permit and the imposition of additional conditions on the use of any given Short Term Vacation Rental unit to ensure that any potential additional violati ons are avoided.
2. Upon a violation of any provision of the Code and/or the Short Term Vacation Rental permit by any of the occupants, responsible parties, owner(s) or the owner's authorized agent(s) or representative(s) and/or, in the event that the cont inued operation of the Short Term Vacation Rental poses a threat of danger to the health, safety and welfare of the public, the City Manager, or designee shall be authorized to recommend the revocation of the Short Term Vacation Rental Permit of any given Short Term Vacation rental unit to ensure that any potential additional violations and threats of danger are avoided.
3. A violation of any provision of this Chapter by any of the occupants, responsible parties, owner(s) or the owner's authorized agent(s) or representative(s) shall constitute grounds for modification or revocation of the Short Term Vacation Rental unit permit and/or any affiliated licenses or permits pursuant to the provisions set forth in Chapter
13.150. The City may issue a notice of violation to any occupant, responsible party, owner(s) or the owner’s authorized agent or representative, pursuant to Chapter 13.55, if there is any violation of this Section committed, caused or maintained by any of the above parties .
E. It shall be unlawful to commit a violation of any term or condition of a permit, and such violatio n shall be subject to any enforcement action available under this Code, at law or in equity, without limitation.
F. It shall be unlawful for any person to file any false report regarding the use or operation of any Short Term Vacation Rental unit. A violation of this Section shall not result in a criminal penalty but shall be subject to a fine in an amount to be established by resolution of the City Council.
G. Any person issued an administrative citation under Chapter 13.58 for a violation of this Chapter or for violation of a term or condition of a permit, for each separate violation, shall be subject to a fine in an amount to be established by a resolution of the City Council.
Upon a third citation within twelve (12) months at the same Short Term Vacation Rental, the City shall suspend the permit for that STVR for a period of time determined by the City.
H. Fines or penalties counting as violations are based upon a twelve (12) month period.
Once the prescribed number of citations has been reached to suspend or repeal a permit, that action shall be taken.
I It shall be a public nuisance for any person to commit, cause or maintain a violation of this Chapter, which shall be subject to the provisions of Chapter 13.90 in addition to any other penalty authorized by law.
5.H.a
Packet Pg. 132
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment) 23 RIV #4875-1993-0133 v3
5.96.080 Unpermitted / Unlicensed Short Term Vacation Rentals A. Any owner found to be operating a Short Term Vacation Rental while the permit is under su spension shall be deemed operating without a valid Short Term Vacation Rental permit and subject to applicable fines and penaltie s, and may be subject to revocation.
B. Hosting Platforms are prohibited from facilitating the short -term vacation rental of unlicensed, unpermitted, and illegal businesses. Hosting Platforms shall not process transactions for properties that are not licensed and permitted by the City.
Hosting Platforms shall not facilitate the evading of relevant taxes and regulations by any short-term vacation rental.
C. No Hosting Platform shall advertise a Short Term Vacation Rental situated within the City that is not licensed and permitted pursuant to this Chapter. All Hosting Platforms shall provide the following information in a notice to any owner listing a Short Term Vacation Rental located within the City of Cathedral City through the Hosting Platform's service. The notice shall be provided prior to the owner listing the premises and shall include the following information: THE "SHORT TERM
VACATION RENTAL CHAPTER OF THE CATHEDRAL CITY MUNICIPAL CODE
PROHIBITS THE SHORT TERM RENTAL OF RESIDENTIAL P ROPERTY WITHIN
THE CITY OF CATHEDRAL CITY UNLESS THE CITY HAS ISSUED BOTH A
BUSINESS LICENSE AND STVR PERMIT, AND THE OWNER PAYS TRANSIENT OCCUPANCY TAX. The STVR Permit License Number assigned by the City to a Short Term Vacation Rental shall by displayed on any Hosting Platform's website where said Short Term Vacation Rental is advertised. Each Short Term Vacation Rental shall have a unique STVR permit number.
D. Owners and/or Managing Agents and/or agents and/or operators of an unlicensed short-term vacation rentals are expressly prohibited from operating in the City and are illegal and are prohibited from being marketed as short -term vacation rentals available for lodging within the City.
5.H.a
Packet Pg. 133
Attachment: FINAL Ordinance Amending Chapter 5.96 - 4.5.2022 (3191 : 2nd Reading - STVR Ordinance Amendment)
Cathedral City Page 1 of 3 Printed on 4/21/2022
Staff Report
City Council
Item No. 5.I
Meeting Date: April 13, 2022
From: John Corella, Director of Engineering/Public Works Title: ADOPT RESOLUTION ACCEPTING PUBLIC IMPROVEMENTS
AND CERTIFYING COMPLETION OF PRIVATE
IMPROVEMENTS IN TRACT NO. 37354 AND PUD 17 -001
“DISTRICT EAST”: JONES CREE VENTURES EAST, LLC:
SUBDIVIDER AND DEVELOPER
City Council
RECOMMENDATION:
Adopt a Resolution accepting the public improvements and certifying completion of private improvements in Tract No. 37354 and PUD 17 -001; and, authorize the release of the Improvement Agreement Securities and deposits as described in the Resolution; and, authorize the Director of Engineering/Public Works to file a Notice of Completion for the Project.
BACKGROUND:
Tentative Tract No. 37354 and Planned Unit Development PUD 17 -001 were approved by the Planning Commission in February 2018, for a residential development of 45 lots on 7.5 acres of land between Jones Road and Carey Road, east of Cree Road. The subdivider-developer is Jones Cree Ventures East, LLC (Mario Gonzales).
The development included public street improvements along Jones Road and Carey Road, and the improvement of on -site private streets, related sewers, water mains, storm drains and common area improvements.
When the final map of Tract No. 37354 was approved by City Council in March 2019, the developer executed a Subdivision Improvement Agreement and posted improvement securities in the form of corporate surety bonds, as authorized by the State Subdivision Map Act. The agreements and securities were posted to guarantee the completion of the public and private improvements in and around the Tract Map, including the Desert Water Agency (DWA) sewer and water facilities serving the Tract.
5.I
Packet Pg. 134
Cathedral City Page 2 of 3 Printed on 4/21/2022
All the required improvemen ts in the Tract Map and PUD have been satisfactorily completed as required by the Subdivision Improvement Agreement. The water and sewer improvements have been approved and accepted by the DWA.
In March 2020, the recorded Tract Map was amended, in accord ance with the State Subdivision Map Act, at the request of the Subdivider for sales reasons, to drop two lots and to enlarge several others. An amended Map was approved by the Planning Commission and was recorded in March 2020.
DISCUSSION:
A Notice of Co mpletion (NOC) has been prepared and will be filed by the Director of Engineering/Public Works upon approval of the Resolution, noting that all the improvements have been completed. No claims have been filed with the City against any of the posted securiti es. The Resolution authorizes the release of the securities posted for faithful Performance upon its adoption, including those posted to guarantee completion of the DWA water and sewer facilities. Pursuant to State law, the surety bonds guaranteeing payme nt for labor and materials posted with the Subdivision Improvement Agreement will be released by the Director of Engineering/Public Works ninety (90) days after recordation of the Notices of Completion, provided no claims have been filed.
The developer has posted a one-year warranty bond to guarantee repair of any defects in materials or pro in the public and private improvements in the development and has posted one -year warranty bonds covering the DWA sewer and water facilities built to serve the tract. These warranty bonds will be released by the Director of Engineering one year after adoption of this Resolution provided no claims have been filed or issues arise due to problems with materials or workmanship.
Lastly, all the required survey monuments ha ve been set in the development and the surveyor of record has submitted evidence that he has been compensated for those services.
The securities posted by the developer to be released in accordance with the terms of the Subdivision Improvement Agreement and as outlined in the Resolution are as follows, and are all from American Contractors Indemnity Company:
o For Faithful Performance,
▪ Public and private improvements:
• $301,900 - Bond #1001072297 (previously reduced from original $1,701,200)
▪ DWA sewer improvements:
• $171,000 - Bond #1001072270
▪ DWA water improvements:
• $322,000 - Bond #1001072269
o For Labor and Materials:
▪ Public and private improvements:
5.I
Packet Pg. 135
Cathedral City Page 3 of 3 Printed on 4/21/2022
• $850,600.00 - Bond #1001072297
▪ DWA sewer improvements:
• $85,500 - Bond #1001072270
▪ DWA water improvements:
• $161,000 - Bond # 1001072269
o For Monumentation:
▪ $32,775.00 - Cash deposit
In conclusion, Staff is requesting t hat the City Council adopt the Resolution accepting the public improvements and certifying completion of private improvements in Tract No. 37354 and PUD 17 -001; authorizing the release of Improvement Agreement securities and deposits as described in the Resolution ; and authorizing the Director of Engineering/Public Works to file a Notice of Completion for the Project.
FISCAL IMPACT:
There will be minimal fiscal impact upon the City due to the adoption of this Resolution.
The private improvements within the development will be maintained by the owners and/or by the Homeowner’s Association (HOA). The public improvements (e.g., roadways, sidewalks and storm drains) are upgrades to the prior public improvements adjacent the Project and will thus require minimal maintenance cost.
ATTACHMENTS:
District East Vicinity and Tract Map
TR 37354 Dist East RESO OF ACCEPT RELEASE OF SECUR
TR 37354 Dist East - Notice of Completion
5.I
Packet Pg. 136
5.I.a
Packet Pg. 137
Attachment: District East Vicinity and Tract Map (3190 : Resolution Adopting Public Improvements Tract No. 37354 (District East))
5.I.a
Packet Pg. 138
Attachment: District East Vicinity and Tract Map (3190 : Resolution Adopting Public Improvements Tract No. 37354 (District East))
5.I.a
Packet Pg. 139
Attachment: District East Vicinity and Tract Map (3190 : Resolution Adopting Public Improvements Tract No. 37354 (District East))
RESOLUTION NO. 2022-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL
CITY CERTIFYING COMPLETION OF THE PUBLIC AND PRIVATE
IMPROVEMENTS IN AMENDED TRACT NO. 37354 AND PLANNED UNIT DEVELOPMENT PUD 1 7-001, AND RELEASING SUBDIVISION
SECURITIES
WHEREAS, Amended Tract No. 37354 and PUD 17-001 is a residential development known as “District East ”, with 39 residential lots on 7.5 acres located between Jones Road and Carey Road, east of Cree Road, approved by the Cathedral City Planning Co mmission on May 4, 20 16, and subdivided and developed by Jones Cree Ventures East, LLC; and
WHEREAS, the Cathedral City City Council approved the Final Map for Tract No. 37354 on March 13, 2019, and entered into “Subdivision Improvement Agreement Tract No. 37354” with the Developer, which detailed Developer's obligation to complete certain public and private improvements, and which secured the completion of those improvements with the following listed corporate surety bonds, in accor dance with the State Subdivision Map Act:
For Faithful Performance: ( Surety bonds all with American Contractors Indemnity Co.)
Public and private improvements: $ 301,900; Bond #1001072297; (previously reduced from original $1,701,200)
Desert Water Agency sewer improvements: $ 171,000, Bond #1001072270; Desert Water Agency water improvements: $ 322,000; Bond #1001072269;
For Monumentation: $ 32,775.00; Cash deposit paid February 25, 2019
WHEREAS the Final Map for Amended Map No . 37354 was filed for reco rd on March 26, 2020, in Map Book 472, at Pages 68 through 72, inclusive, Records of Riverside County, California; and
WHEREAS, in accordance with the terms of the Subdivision Improvement Agreement, the Faithful Performance Bond for the pub lic and privat e improvements was reduced to $ 301,900.00 in recognition of work completed; and
WHEREAS, in accordan ce with the terms of the Subdivision Improvement Agreement, the Developer has posted a good and sufficient Warranty Bond, in the amount of $ 170,120.00, to guarantee the public and private improvements in said tract map against defects in materials and workmanship; and has posted Warranty Bonds in the amounts of $17,100 and $32,200 to guarantee the Desert Water Agency sewer and water improvements against defects in materials and workmanship; and
5.I.b
Packet Pg. 140
Attachment: TR 37354 Dist East RESO OF ACCEPT RELEASE OF SECUR (3190 : Resolution Adopting Public Improvements Tract No. 37354
WHEREAS, the Director of E ngineering/Public Works has determined that Developer has completed all public and private improvements imposed as a condition of Final Map approval in accordance wit h the terms of the Subdivision Improvement Agreement; and the licensed surveyor o f record has certified that the final monuments have been set and that the surveyor was compensated for same; and
WHEREAS, the Director of Eng ineering/Public Works has rec eived written confirmation from the Desert Water Agency (DWA) that the sewer and water facilities serving the tract have been satisfactorily completed and have been accepted by DWA; and
WHEREAS, t he Director of Engineering/Public Works has further determined th at above bonds may now be released in accordance with the terms of the Subdivision Improvement Agreement, with the exception of the labor and materials bond s and the warranty bonds; and
WHEREAS, the public and private improvements constructed in Amended Tract No. 37354 include the construction or improvement of portions of public streets Jones Road and Carey Road, and private streets District East Street, Hudson Road, Hubbard way, Chelsea Road and F ilmor Road, along with related curbs, gutte rs, paving, s ewers, water lines, drainage and on-site and open space and common area improvements.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE CITY OF CATHEDRAL CITY, AS FOLLOWS:
Section 1; Acceptance of Public Improvements
That pursuant to Section 5 (b)(i) of the Improvement Agreement, the City hereby accepts the public improvements to Jones Road and Carey Road, into the City maintained street system.,
Section 2. Certification of Private Improvements
That pursuant to Section 5 (b) (ii) of the Improvement Agreement, the City of Cathedral City finds that the private improvements to District East Street, Hudson Road, Hubbard Way, Chelsea Road, and Filmor Road and other on-site improvements have been constructed to an ac ceptable standard, and in accordance with City standards and specifications.
Section 3. Notice of Completion
That the Director of Engineering/Public Works is hereby authorized to prepare and file a Notice of Completion in accordance with the California Civil Cod e upon adoption of
5.I.b
Packet Pg. 141
Attachment: TR 37354 Dist East RESO OF ACCEPT RELEASE OF SECUR (3190 : Resolution Adopting Public Improvements Tract No. 37354
this Resolution.
Section 4. Disposition of Improvement Securities
A. That the above-described Warranty Bonds, covering the approved public and private improvements and sewer and water facilities in t he trac t, as described in the Subdivision Improvement Agreement, shall be retained for a period of one year from the date of adoption of this Resolution in accordance with Section 10 of the Subdivision Improvement Agreement. The Director of Engineering is hereby authorized to release said Bonds following the expiration of the one -year warranty period, s o long as any necessary warranty repairs have been completed to the satisfaction of the Director of Engineering.
B. That the above listed improvement securities posted by th e Subdivider in accordance with the Subdivision Improvement Agreement for Faithful Performance and the cash deposit posted for final Monuments are hereby ordered released.
C. That the improvement securities posted by the Developer in accordance with the Improvement Agreement for Labor and Mater ials shall be held for a peri od of ninety (90) days from the date of recordation of the Notice of Completion in the above Section 3 in accordance with Section 6(b) of the Subdivision Improvement Agreement and Section 66499.7(h) of the Gov ernment C ode (Subdivision Map Act). The Director of Engineering/Public Works is hereby authori zed to release said security following the expiration of the ninety (90) day period, so long as no claims have been f iled against the security.
Section 5. Effective Date
That this Resolution shall take effect upon its adoption.
Section 6. Certification
That the City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in t he book of original Resolutions of sa id City; and shall cause a certified copy of the Re solution to be recorded in Of ficial Records by the Riverside County Recorder.
PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council for the City of Ca thedral City held on this _______ day of __________, 202__ by the following vote:
Ayes:
Noes:
5.I.b
Packet Pg. 142
Attachment: TR 37354 Dist East RESO OF ACCEPT RELEASE OF SECUR (3190 : Resolution Adopting Public Improvements Tract No. 37354
Absent:
Abstain:
___________________________
Ernesto M. Gutierrez, Mayor
City of Cathedral City, California
ATTEST:
__________________________
Tracey R. Hermosillo, CMC
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
__________________________ ____________________________ City Attorney Dir. Of Engineering/Public Works
5.I.b
Packet Pg. 143
Attachment: TR 37354 Dist East RESO OF ACCEPT RELEASE OF SECUR (3190 : Resolution Adopting Public Improvements Tract No. 37354
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Cathedral City
Attn: City Clerk
: 68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
EXEMPT RECORDING FEES PURSUANT TO
GOVERNMENT CODE SECTION 6103 & 27383
SPACE ABOVE THIS LINE FOR
RECORDER’S USE
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. Notice is hereby given that:
1. The undersigned is owner or corporate offi cer of the owner of the interest or estate stated below in the property hereinafter described:
2. The full name of the owner is City of Cathedral City, a municipal corporation
3. The address of the owner is: 68-700 Avenida Lalo Guerrero, Cathedral City, CA 92234
4. The nature of the interest or estate of the owner is; in fee. Holder of dedications for streets and public utility easements.
(If other than fee, strike “in fee” and insert, for example, “purchaser under contract of purchase, “or “lessee”)
5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: None
NAMES ADDRESSES
N/A
6. A work of improvement on the property hereinafter described was complete on March 2, 2022. The work done was: Public & private Infrastructure Improvements for Amended Tract No. 37354 “District East” including; concrete curbs, gutters, street paving, driveways, sewer and water services, private streets and common area improvements and appurtenances. The City Council accepted and certified said work on _________________, 2022.
7. The name of the contractor/subdivider, if any, for such work of improvement was:
Jones Cree Ventures East, LLC March 13, 2019 (If no contractor for work of improvement as a whole, insert “none”.) (Date of Subdivision Agreement)
8. The property on which said work of improvement was completed i s in the City o f Cathedral City, County of Riverside, California, and is described as follows: Lots 1-12, 14-29, and 31 -41, and lettered Lots A -Q, all of Amended Tract Map No. 37354, recorded in Map Book 472, at Pages 68 through 72, Records of Riverside County; The public and private streets & easements include portions of Carey Road and Jones Road in the City of Cathedral City, CA.
9. The street address of said property is N/A. Signature of Owner/corporate officer named in Para 2 above:
_________________________ , 202__ __________________________________ Dated Charles P. McClendon, City Manager City of Cathedral City
VERIFICATION
I, the undersigned, Charles P. McCle ndon, say: I am the City Manager of the City of Cathedral City, CA the declarant of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof. The same is true of my own knowledge. I declare under penalty o f perjury that the foregoing is true and correct.
Executed on_________________________, 202__, at Cathedral City, California.
_____________________________________
Charles P. McClendon, City Manager
City of Cathedral City
5.I.c
Packet Pg. 144
Attachment: TR 37354 Dist East - Notice of Completion (3190 : Resolution Adopting Public Improvements Tract No. 37354 (District East))
Cathedral City Page 1 of 2 Printed on 4/21/2022
Staff Report
City Council
Item No. 5.J
Meeting Date: April 13, 2022
From: Tami Scott, Administrative Services Director
Title: Annual Approval of the City’s Investment Policy
City Council
RECOMMENDATION:
Staff recommends the City Council approve the updated Investment Policy.
BACKGROUND:
Each fiscal year, staff presents the investment policy to Council for review and approval.
It is the policy of the City to invest public funds safely and in compliance with the requirements of the California Go vernment Code to meet the daily cash flow needs while achieving a market rate of return minimizing the potential for losses arising from market changes or issuer default. This Statement of Investment Policy is intended to provide guidelines for the prudent investment of the City’s cash and to identify the City’s policies regarding the investment process. Investments of public funds shall be made in accordance with this Investment Policy. All participants in the City’s investment process shall seek to act re sponsibly as custodians of the public trust. Any investment transaction shall be avoided that might impair public confidence in the City’s ability to manage its assets or to govern effectively. Our primary investment strategy continues to be the safety of principal and the guideline to keep all investments made in accordance with the California Government Code.
DISCUSSION:
In accordance with updates made to Government Code Section 16429.1 and Local Agency Investment Fund (LAIF) procedures, the City of Cat hedral City’s Investment Policy is required to be reviewed and updated, where applicable, on an annual basis.
Our policy incorporates the key investment policy components of the League of California Cities, the California Society of Municipal Finance Offic ers, the California Municipal Treasurers Association, the Government Finance Officers Association and the Government Accounting Standards Board ("GASB") Statement No. 40, Deposit and Investment Risk Disclosures. In addition, at Council’s direction, staff p resents and reviews the City’s Investment Policy and current investments with the Finance Advisory Committee during its annual meeting to which the committee concurred with the policy and City Treasurer’s investments. This policy positions the City of Cath edral City to continue to provide the conservative stewardship of our funds, while maximizing earnings and maintaining liquidity of funds.
5.J
Packet Pg. 145
Cathedral City Page 2 of 2 Printed on 4/21/2022
At this time, there is only one change proposed to the investment policy. The State Treasurer has raised the Local Agency Investment Fund (LAIF) maximum investment for each account from $50 million to $75 million . The Local Agency Investment Fund (LAIF), a program created by statute, began in 1977 as an investment alternative for California's local governments and spec ial districts. This program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Treasurer's Office professional investment staff at no additional cost to the taxpayer, while at the same time maintaining liquidity.
FISCAL IMPACT:
None
ATTACHMENTS:
90110_Investment Policy_April 2022_FINAL
5.J
Packet Pg. 146
ACCOUNTING AND FINANCE
POLICIES AND PROCEDURES MANUAL
90110
Investment Policy
Last Revision: May 2015
Annual – May 2021
Mission Statement
It is the policy of the City of Cathedral City to invest public funds in a manner which will provide the maximum security with best investment return, while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds.
Purpose
This statement is intended to provide guidelines for the prudent investment of the City of Cathedral City, Successor to the Redevelopment Agency, and Cathedral City Public Financing Authority (City) funds and to outline the policies for maximi zing the efficiency of the City’s cash management system. The primary goal is to enhance the economic status of the City while safeguarding its assets.
Municipal Code 3.08.010
Pursuant to the delegati on of authority in Section 3.08.010, the City Treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under any provision of state law relating to the investing of general cit y funds, including but not limited to Sections 53601 and 53635 of the Government Code, as said sections now read or may hereafter be amended, from moneys in custody which are not required for the immediate necessities of the city and as (s)he may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part), 1981)
Objectives
In order of priority, the primary objectives of the City’s investment activities shall be:
1. Safety of principal is the foremost object ive of the investment program. Investments shall be undertaken in a manner seeking to ensure the preservation of cap ital in the overall portfolio. The objective will be to mitigate credit risk (the risk of loss due to failure of the financial institution, broker/dealer default, or erosion of market value) and interest rate risk (the risk the market value of securities in the portfolio will fall due to changes in general interest rat es). To attain this objective, the City will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions.
2. Liquidity is the second most important object ive of the investment program. The investment portfolio s hall rem ain sufficiently liquid to enable the City to meet all operating and capital requirements that may be reasonably anticipated. Prior to investing City funds, the City Treasurer shall meet with Finance Department staff to unde rstand the City’s projec ted cash needs for day-
5.J.a
Packet Pg. 147
Attachment: 90110_Investment Policy_April 2022_FINAL (3182 : Annual Approval of the City’s Investment Policy)
ACCOUNTING AND FINANCE
POLICIES AND PROCEDURES MANUAL
90110
Investment Policy
Last Revision: May 2015
Annual – May 2021
to-day operations and ongoing capital improvement projects. Using this information, the City Treasurer can then determine the appropriate length of time for the investment.
3. Yield or rate of return shall be designed with the objec tive of attaining a market rate of return throughout budgetary and economic cycles while considering the investment risk constraints and liquidity ne eds. Market rate of return is defined as the average return on t he one -year U.S.
Treasury Bill. Whenever possible, and in a manner consistent with the more important objectives of safety of principal and liquidity, a yield higher than the market rate of return shall be sought.
Standard of Care
The standard of care to be applied shall be the “prudent person,” which states:
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not fo r speculation, but for investment, consid ering the probable safety of their capital as well as the probable income to be derived.
Officers and employees acting in accordance with the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
Officers and employees involved i n the investment process shall refrain fr om personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions.
Authority to manage the investment program is granted to the Treasurer , who shall be responsible for the investment of all funds. In his/her absence, the Administrative Services Director and/or Deputy Finance Director, and City Manager, in that order, are authorized to act on his/her behalf. These responsibilities shall include the authority to open accounts with banks, brokers and dealers , and to establish safekeeping accounts or other arrangement s for the custody of securities and to execute such documents as may be necessary. Prior to any of the above activities being finalized, w ritten concurrence by two of the above individuals shall be obtained.
Responsibility for the operation of the investment program is delegated to the Administrative Services Director and/or Deputy Finance Director, who shall carry out established written proce dures and internal controls consistent with this investment policy. Transactions shall be complete, valid, authorized and properly recorded.
5.J.a
Packet Pg. 148
Attachment: 90110_Investment Policy_April 2022_FINAL (3182 : Annual Approval of the City’s Investment Policy)
ACCOUNTING AND FINANCE
POLICIES AND PROCEDURES MANUAL
90110
Investment Policy
Last Revision: May 2015
Annual – May 2021
Safekeeping of Securities
All securities owned by the City shall be held in a safekeeping account with the financial institution in the name of the City , and under City control at all times. All trades, where applicable, shall be executed by delivery to the City, including those purchased for the City by financial advisers, consultants, or managers by book entry, physical delivery, or by third -party custodial agreement. All security transactions shall be evidenced by safekeeping receipts.
Authorized Investments
Sections 16429.1, 53601, 53601.1, 53601.7, 53635, and 53638 of the Government Code of the State of California set forth the investment vehicles available to local agencies as summarized in the following paragraphs. Section 53601, as now amended, provides that unless Section 53601 specifies a limitation on an investmen t’s maturity, no investments with maturities exceeding five years shall be made unless otherwise directed by the City’s Council members.
State Treasurer’ s Local Agency Investment Fun d (LAIF) - As authorized in Government Code Section 16429.1 and by LAIF p rocedures, local government agencies are authorized to invest a maximum of $75 million (each regular account) in this investment program administered by the California State Treasurer. Bond proceeds accounts have no deposit restrictions.
Government Agency Issues - As authorized in Government Code Sections 53601(a) through (f), this category includes a wide variety of government securities which include the following:
• Local government bonds or other indebtedness.
• State bonds or other indebtedness.
• U. S. Treasury notes or other indebtedness sec ured by the full faith and credit of the federal government.
• Other federal agency securities including but not limited to issues by the Government National Mortgage Association, Federal National Mortgage Assoc iation, and the Federal Home Loan Mortgage Corporation.
• State of California obligations such as California Treasury Notes or General Obligation Bonds.
Investment may be made up to 80 percent of the portfolio; however, the total amount may not be committed to any one agency.
Bankers’ Acceptances - As authorized in Government Code Section 53601(g), 40 percent of the City’s portfolio may be invested in bankers’ a cceptances; however, no more than 30 percent of
5.J.a
Packet Pg. 149
Attachment: 90110_Investment Policy_April 2022_FINAL (3182 : Annual Approval of the City’s Investment Policy)
ACCOUNTING AND FINANCE
POLICIES AND PROCEDURES MANUAL
90110
Investment Policy
Last Revision: May 2015
Annual – May 2021
the portfolio may be invested in bankers’ a cceptances with any one commercial bank.
Additionally, the maturity period may not exceed 180 days.
Commercial Paper - As authorized in Govern ment Code Section 53601(h), 25 percent of the City’s portfolio may be invested in commercial paper of the highest ra ting (A-1 or P-1) as rated by Moody’s or Standard and Poor’s, with maturities not to exceed 270 days. Local agencies may purchase no more than 10 percent of the outsta nding co mmercial paper of an y single issuer.
There are other qualifications regarding inv estments in commercial paper based on the fin ancial strength of the corporation and the size of the investment.
Negotiable Certificates of Deposit - As authorized in Government Code Section 53601(i ), no more than 30 percent of the agency’s money may be invested in negotiable certificates of deposit issued by a nationally or state -chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a state - licensed branch of a foreign bank. All purchases must be fully insured by the FDIC or fully collateralized.
Medium-term notes (MTN’s) - As authorized in Government Code Section 53601(k), medium- term notes are defined as all corporate and depository institution debt securities with a maximum remaining maturity of fiv e years or less, issued by corporations organized and operating within the United States or by depository institutions lic ensed by the United States or any state and operating within the United States. Notes eligible for investment under t his subdivision shall be rated “A” or better by a nationally recognized rating s service. Purchases of medium -term notes shall not include o ther instruments authorized by this section and may not exceed 30 percent of the agen cy’s money that may be invested pursuant to this section; however, no more than 5 percent in any one issue or issuer.
Money Market Mutual Funds – As authorized in Government Code Section 53601(l)(2), shares of beneficial interest issued by diversified management companies that are money market mutual funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940. The company shall have met either of the following criteria: (a) attained the highest ranking or the highe st l etter and numerical rating provided by not le ss than two nationally recognized statistical rating organizations; or (b) r etained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mut ual funds with assets under management in excess of five hundred million dollars ($500,000,000).
The purchase price of sh ares of beneficial interest purchased pursuant to this subdivision shall not include any commission the companies may charge and shall not exceed 20 percent of the agency’s money that may be invested pursuant to this section. However, no more than 10 percent of the agency's funds may be invested in shares of beneficial interest of any one mutual fund.
5.J.a
Packet Pg. 150
Attachment: 90110_Investment Policy_April 2022_FINAL (3182 : Annual Approval of the City’s Investment Policy)
ACCOUNTING AND FINANCE
POLICIES AND PROCEDURES MANUAL
90110
Investment Policy
Last Revision: May 2015
Annual – May 2021
A derivative is defined as a financ ial instrument created from or whose value depends on the value of one or more underlying assets or indexes of asset value s. No in vestment shall be made in collateralized mortgage obligations (CMO’s), intere st-only (IO’s) and principal -only (PO’s) forwards , futures, currency and interest rate swaps, options, and caps/floor/collars. Neither shall any investment be made in reverse repurchase agreements as outlined in Government Code 53601(j).
With the objective s o f this policy , d iversification of the portfol io will be made at a ll t imes in such a manner to avoid incurring unreasonable risks . No investment shall be made in a secu rity prohibited by this policy or by Government Code 53601.6. Liquidity shall be maintain ed in such a manner that no less than 20 percent of the portfolio shall have a term of one year or less.
At the time of each investment, either by renewal or initial purchase, an analysis shall be made of the entire portfolio to ensure the limit for that type of investment shall not be exceeded.
Investments Held by Trustees
Assets held by fiscal agents are held pursuant to formal agreements such as the requirements o f a bond issue or an agreement between the City and another government agency or other entity. The investment of assets held by fiscal agents shall occur pursuant to these formal requirements as permitted by Section 53601(m) of t he California Government Co de. However, the investment of such assets is subject to the laws esta blished by the State of California pertaining to investments by local agencies as well as the City’s primary investment objectives.
Deferred Compensation Plan Assets
Investment decisio ns regard ing these assets are made by the participants pursuant to the deferred compensation plans made available to the City and are not considered a part of this investment policy.
Reporting
Under provisions of the California Government Code Section 53 646, there shall be a report at least quarterly made to the City Counc il and City Manager reporting the status of all investments. Per subdivision (d), the legislative body of a local agency may elect to require the report specified in subdivision (b) to b e made on a monthly basis instead of quarterly. The City’s Municipal C ode requires the City Treasurer to make a monthly report to the City Council of all investments made pursuant to the authority delegated in this chapter. (Municipal Code 3.08.050 – Ord. 2 § 1 (part), 1981)
These reports shall show for all securities:
5.J.a
Packet Pg. 151
Attachment: 90110_Investment Policy_April 2022_FINAL (3182 : Annual Approval of the City’s Investment Policy)
ACCOUNTING AND FINANCE
POLICIES AND PROCEDURES MANUAL
90110
Investment Policy
Last Revision: May 2015
Annual – May 2021
• type of investment
• issuer or institution
• date of maturity
• amount of deposit
• rate of interest
• current market value
• accrued interest due
• current broker/dealers and par amount invested through their company as a percentage of the total portfolio
In addition to the items required b y Section 53646 of the California Government Code, the following items should be included on the monthly reports to ensure compliance with this investment policy and Governmental Accounting Standards Board (GASB) Statement No. 40, Deposit and Investment Ri sk Disclosures:
• investment rating at time of purchase (Moody’s / Standard & Poor’s) • investment rating as of June 30 of each fiscal year (Moody’s / Standard & Poor’s)
Investments held by a fiscal agent and agents for any deferred compensation funds shall be reported based on the most recent publish ed reports received by the City at the time the report is made to the City Council.
Qualified Dealers
The City shall tra nsact investment business only with banks, savings and loans, and registered securities dealers. All financial institutions and broker /dealers who desire to become bidders for investment transactions must supply the City with the following:
• audited financial statements
• proof of National Association of Security Dealers' certification • trading resolution
• proof of California registration
• certification of having read the City of Cathedral City’s investment policy • résumé of employees who will be engaged in transactions with the City
5.J.a
Packet Pg. 152
Attachment: 90110_Investment Policy_April 2022_FINAL (3182 : Annual Approval of the City’s Investment Policy)
ACCOUNTING AND FINANCE
POLICIES AND PROCEDURES MANUAL
90110
Investment Policy
Last Revision: May 2015
Annual – May 2021
• Community Reinvestment Act (“CRA”) Rating of Satisfactory or above.
A periodic review of the financial conditio n and registrations of qualifi ed bidders shall be conducted. An annual certification of having read the City’s investment policy shall be required by all brokers/dealers.
The Treasurer shall review on a quarterly basis the LAIF report regarding its invest ments and the market value thereof and obtain and review the State Treasurer’ s investment policy and annual audited financ ial report as it pertains to LAIF.
Policy Review
This investment poli cy shall be reviewed at least annually by the City Council and C ity Manager or in accordance with California Government Code Section 53646 requirements.
Glossary of Investment Terminology
AGENCIES: Federal agency securities.
AMORTIZED COST: For investme nts purchased at a d iscount, amortized cost constitutes cost plu s interest earned to date.
ASKED: The price at which securities are offered.
BANKERS’ ACCEPTANCE: A draft or bill or exc hange acc epted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
BASIS POINT: A basis point equals one one-hundredth of 1% (.01%).
BID: The price offered for securities.
BOOK ENTRY SECURITIES: All U.S. T reasury and Federal Agencies are maintained on computerized records at the Federal Reserve; now known as “wireable” securities.
BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides.
COST: The purchase price of an investment.
COLLATERAL: Securities, evidence of deposit or other property a borrower pledge s to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
5.J.a
Packet Pg. 153
Attachment: 90110_Investment Policy_April 2022_FINAL (3182 : Annual Approval of the City’s Investment Policy)
ACCOUNTING AND FINANCE
POLICIES AND PROCEDURES MANUAL
90110
Investment Policy
Last Revision: May 2015
Annual – May 2021
CERTIFICATE OF D EPOSIT: A time deposit with a specific matur ity evidenced b y a certificate.
Large-denomination CDs are typically negotiable.
COMMERCIAL PAPER: An unsecured promissory note with a fixed maturity no longer than 270 days.
The largest issuers include General Motors Acceptance Corporation (GMAC), General Electric Capi tal Corporation (GECC) and other major corporations.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, bu ying and selling for the dealer’s own account.
DELIVERY V ERSUS PAYMENT: There are two methods of delivery of securit ies: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchang e of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
DEBENTURE: A bond secured only by the general credit of the issuer.
DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value.
DISCOUNT SECURITIES: Securities issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills. Interest is received at maturity.
DIVERSIFICATION: Dividing investment funds among a variety of securities and financial institutions offering.
FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S & L’ s, small business firms, students, farmers, farm cooperatives, and exporters.
FEDERAL FUNDS: Non-interest-bearing deposits held by member banks at the Federal Reserve.
FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.
FEDERAL DEP OSIT INSURANCE CORPORATION: A federal ag ency insuring bank deposits; currently up to $250,000 per deposit.
FEDERAL HOME LOAN BANKS: The institutions regulat ing and lend ing to savings and loan associations.
5.J.a
Packet Pg. 154
Attachment: 90110_Investment Policy_April 2022_FINAL (3182 : Annual Approval of the City’s Investment Policy)
ACCOUNTING AND FINANCE
POLICIES AND PROCEDURES MANUAL
90110
Investment Policy
Last Revision: May 2015
Annual – May 2021
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): A U.S. Corporation and instrumentality of the U.S. government. Through its purcha ses of conventional mortgages, it provides liquidity to the mortgage markets, much like FNMA. FHLMC’ s securities are high ly liquid and widely accepted. FHLMC assumes and guara ntees that all security holders will receive timel y payment of principal and interest.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mor tgage Association Act in 1938. FNMA is a federal corp oration working under the auspices of the U.S. Department o f Housing & Urban Development. It is the largest single provider of residential mortgage funds in the United States . Fannie Mae, as the corporation is called, is a private stockholder-owned corpora tion. The corporation’s purchases include a variety of adju stable mortgages and second loa ns in addition to fixed -rate mortgages. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
FEDERAL OPEN MAR KET COMMI TTEE (FOMC): Consists of seven members of the Fede ral Reserve Board and five of t he twelve Fed eral Reserve Bank Presidents. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities i n the open market as a means of influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of the Unit ed States created by Congress and consisting of a seven -member Board of Governors in Washington, D.C., 12 Regional Banks a nd about 5,700 commercial banks that are members of the system.
GOVERNMENT NATIONAL MORTG AGE ASSOCIATION (GNMA or Ginnie Mae): Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loans associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government.
LIQUIDITY: A liquid asset is one easily and rapi dly converted into cash without a substantial loss of value.
LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all fu nds from political subdivisions placed in the custody of the State Treasurer for investment.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase reverse repurchase agreeme nts establis hing each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the event of default by the seller-borrower.
5.J.a
Packet Pg. 155
Attachment: 90110_Investment Policy_April 2022_FINAL (3182 : Annual Approval of the City’s Investment Policy)
ACCOUNTING AND FINANCE
POLICIES AND PROCEDURES MANUAL
90110
Investment Policy
Last Revision: May 2015
Annual – May 2021
MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
MONEY MARKET: The market in which short -term debt instruments (b ills, commercial paper, bankers’ acceptances, etc.) are issued and traded.
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the oppo site effect. Open market ope rations are the Federal Reserve’s most important and most flexible monetary policy tool.
PAR VALUE: The amount realized upon maturity of an investment.
PORTFOLIO: Collection of securities held by the investor.
PRIMARY DEALER: A group of government securities dealers submit ting daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight.
PRIME RATE: The rate at which banks lend to their best or “prime” customers.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price.
REPURCHASE AGREEMENT: A holder of securities sells these securit ies to an investor with an agreement to repu rchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of th e agreeme nt, and the terms of the agreement are structured to compensate the buyer for this. Dealers use repurchase agreements extensively to finance their positions.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and v aluables of all types and descriptions are held for protection.
SECONDARY MARKET: A market for the purchase and sale of outstanding issues following the initial distribution.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investo rs in securities transactions by administering securities legislation.
SETTLEMENT DATE: The date on which a trade is cleared by deliv ery of securities against funds.
This date may be the same as the trade date or later.
5.J.a
Packet Pg. 156
Attachment: 90110_Investment Policy_April 2022_FINAL (3182 : Annual Approval of the City’s Investment Policy)
ACCOUNTING AND FINANCE
POLICIES AND PROCEDURES MANUAL
90110
Investment Policy
Last Revision: May 2015
Annual – May 2021
TRADE DATE: The date on which a transaction is initiated or entered by the buyer or seller.
TREASURY BILL: A discount secur ity issued by the U.S. Treasury to finance t he national debt maturing from three months to one year.
TREASURY BONDS: Long-term U.S. Treasury securities having initia l maturit ies of more than ten years.
TREASURY NOTES: Intermediate term U.S. Treasury secu rities having initial maturities from one to ten years.
WHEN-ISSUED TRADES (WI): Typically, there is a delay between the time a new bond is announced and sold, an d the tim e when i t is issued. During this interval, the security trades “wi”, “when, as, a nd if issued.”
YIELD: The rate of annual incom e return on an invest ment, expressed as a percentage: (a) income yield is obtained by dividing the current dollar income by the current market price for the security; (b) net yield or yield to maturity is the current income yield minus any premium above pa r or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the security.
5.J.a
Packet Pg. 157
Attachment: 90110_Investment Policy_April 2022_FINAL (3182 : Annual Approval of the City’s Investment Policy)
Cathedral City Page 1 of 3 Printed on 4/21/2022
Staff Report
City Council
Item No. 5.K
Meeting Date: April 13, 2022
From: John Corella, Director of Engineering/Public Works Title: Tract No. 28561 -1 and 28561: Rio Del Sol Area - Approval of Two Improvement Agreements with RDS Development, LLC.
City Council
RECOMMENDATION:
Approve an Improvement Agreement with RDS Development, LLC, for improvements in the Espana village portion of the Rio Del Sol development; and, approve an Improvement Agreement with RDS Development, LLC, for improvements in t he Elements village portion of the Rio Del Sol development; and, authorize the City Manager and City Clerk to execute the Agreements on behalf of the City in a form approved by the City Attorney.
BACKGROUND:
Tentative Tract Map No. 28561, for the devel opment of a 276 single family lot Planned Unit Development (PUD 97 -4) in the Rio Del Sol area, was approved by City Council in September 1997. The PUD was on a 50 acre parcel of Indian allottee land, located south of Gerald Ford Drive, opposite Plumley Road.
The first increment of this map, Tract 28561 -1, of 127 lots, was recorded in September 2002, by the lessee subdividers. In October 2003, the same subdividers recorded the second and final increment of this tentative map of 159 lots, Tract 28561. This second map re -subdivided several lots within the first map, and after several lot line adjustments and mergers, a total of 270 lots were available for development.
The original subdividers experienced financial difficulties and market problems, and construction stopped. As a result, the required street and infrastructure improvements were only partially completed, and the original subdividers eventually were foreclosed upon and lost the property.
The remaining vacant lots of the unfinished tracts went t hrough several bank ownerships, meanwhile, several private developers made attempts to revive the development, but none were successful in moving a project forward. A total of 56 lots were eventually completed with single family homes.
5.K
Packet Pg. 158
Cathedral City Page 2 of 3 Printed on 4/21/2022
Over a period of ti me, Holt Opportunity Fund (Parallel -1), 2013, LP, a Delaware limited partnership (“Holt”), eventually assumed the subleases on all the vacant lots, and Holt has been working diligently on plans to complete the original PUD development by building out the v acant lots in four phases, which they refer to as Montecito (57 lots), Palazzo (73 lots), Espana (28 lots) and Elements (56 lots).
Holt executed two Improvement Agreements in October 2019, one for the Montecito area and one for the Palazzo area.
Holt recently made a business decision to transfer all its holdings in Rio Del Sol to RDS Development, LLC, a California limited liability company (RDS), a wholly owned subsidiary of Holt. Since this involved Indian allottee land, approval of this transfer and modification of the Indian business leases required the approval of the Bureau of Indian Affairs (BIA). This transfer and approval also took some time and was finally approved by the BIA.
Holt and RDS have executed Assignment and Assumption Agreements for the two existing Improvement Agreements, which are the subject of a separate Staff Report item for City Council approval this same evening.
DISCUSSION:
RDS has now executed two new Improvement Agreements for the remaining Espana and Elements areas of R io Del Sol. In these Agreements, RDS agrees to complete the missing public and private improvements in these two phases within 24 months of the City Council approval of the se Agreements and prior to the issuance of occupancy permits on all the new homes p roposed within each phase. The improvements consist generally of the capping , repair or construction of private streets, installation of sewer and water systems, utilities, drainage systems , landscaping and irrigation and the setting of final survey monuments and property corners.
As was done for the DR Horton Project in the Rio Vista/Verano area, these two new Improvement Agreements provide for improvement securities to be posted prior to the City’s issuance of a Certificate of Occupancy on any of the l ots in either phase. The two new Agreements are very similar to the City’s Standard Subdivision Agreement, except that the Tract Maps have already been recorded.
Environmental Summary:
It has been determined that since the approval of the original CEQ A Negative Declaration for th is Tentative Tract and PUD, there have been no substantial changes to the overall project, no new significant environmental effects, no substantial increase in the severity of any previously identified impacts and no new inform ation of substantial importance which would modify the conclusions reached in the original Negative Declaration.
Staff is requesting that the City Council a pprove the Improvement Agreement with RDS Development, LLC, for improvements in the Espana village portion of the Rio Del So l development; and approve the Improvement Agreement with RDS Development, LLC,
5.K
Packet Pg. 159
Cathedral City Page 3 of 3 Printed on 4/21/2022
for improvements in the Elements village portion of the Rio Del So l development; and, authorize the City Manager and City Clerk to execute the Agreemen ts on behalf of the City in a form approved by the City Attorney.
FISCAL IMPACT:
There is no fiscal impact to the City as a result of this action.
ATTACHMENTS:
Rio Del Sol Vicinty Map
Exh B-2 RDS Espana Vicinity Map
Exh B-2 RDS Elements Vicinity Map
RDS LLC SIA Espana
RDS LLC SIA Elements
5.K
Packet Pg. 160
5.K.a
Packet Pg. 161
Attachment: Rio Del Sol Vicinty Map (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.b
Packet Pg. 162
Attachment: Exh B-2 RDS Espana Vicinity Map (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.c
Packet Pg. 163
Attachment: Exh B-2 RDS Elements Vicinity Map (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 164
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 165
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 166
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 167
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 168
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 169
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 170
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 171
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 172
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 173
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 174
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 175
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 176
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 177
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 178
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 179
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 180
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 181
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 182
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 183
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 184
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 185
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 186
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 187
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.d
Packet Pg. 188
Attachment: RDS LLC SIA Espana (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 189
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 190
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 191
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 192
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 193
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 194
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 195
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 196
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 197
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 198
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 199
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 200
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 201
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 202
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 203
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 204
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 205
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 206
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 207
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 208
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 209
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 210
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 211
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 212
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 213
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
5.K.e
Packet Pg. 214
Attachment: RDS LLC SIA Elements (3109 : Rio Del SolTract No. 28561-1 and 28561 Approval of Improvement Agreements)
Cathedral City Page 1 of 3 Printed on 4/21/2022
Staff Report
City Council
Item No. 5.L
Meeting Date: April 13, 2022
From: John Corella, Director of Engineering/Public Works Title: Tract No. 28561-1 and 28561: Rio Del Sol area: Approval of the Assignment of Two Improvement Agreements from Holt
Opportunity Fund, L.P. to RDS Development, LLC
City Council
RECOMMENDATION:
Approve an Assignment of the Improvement Agreement with Holt Opportunity Fund, LP, executed on December 12, 2019, for improvements in the Montecito village portion of the Rio D el Sol development, to RDS Development, LLC; and, to approve the Assignment of the Improvement Agreement with Holt Opportunity Fund, LP, executed on December 12, 2019, for improvements in the Palazzo village portion of the Rio Del Sol development, to RDS Development, LLC; and, to authorize the City Manager and City Clerk to execute the Assignments in a form approved by the City Attorney.
BACKGROUND:
Tentative Tract Map No. 28561, for the development of a 276 single family lot Planned Unit Development (PUD 97-4) in the Rio Del Sol Development, was approved by City Council in September 1997. The planned development was on a 50 -acre parcel of Indian allottee land, located south of Gerald Ford Drive, opposite Plumley Road.
The first increment of this map, Tract 28561 -1, which consisted of 127 lots, was recorded in September 2002 by the lessee subdividers, DME LLC, and RDS Villages, LLC. In October 2003, the same subdividers recorded the second and final increment of this tentative map, Tract 28561, of 15 9 lots. This second map re -subdivided several lots within the first map, and after a number of lot line adjustments and mergers, a total of 270 lots were available for development.
Subdivision Agreements and improvement securities were posted to guarante e completion of all public and private improvements in both Tracts.
The original subdividers experienced financial difficulties and market problems, and construction stopped. As a result, the required street and infrastructure improvements were only part ially completed, and the original subdividers eventually were foreclosed upon and lost the property.
5.L
Packet Pg. 215
Cathedral City Page 2 of 3 Printed on 4/21/2022
The remaining vacant lots of the unfinished tracts went through several bank ownerships, and respectively, several private developers made attempts to re vive the development, but none were successful in moving a project forward. A total of 56 lots were eventually completed with single family homes.
Over a period of time, Holt Opportunity Fund (Parallel -1), 2013, LP, a Delaware limited partnership (“Holt”), eventually assumed the subleases on all the vacant lots, and have been working diligently on plans to complete the original PUD development by building out the vacant lots in four phases, which they refer to as Montecito (57 lots), Palazzo (73 lots), Espana (28 lots) and Elements (56 lots).
Holt submitted an amendment to the original PUD plan, to allow changes in some property line to structure setbacks, which were approved by the Planning Commission in June 2018 . The proposed floor plans and buildi ng elevations for the four (4) new phases were found to be consistent in material and scale and complimentary to the existing Rio Del Sol homes.
Holt executed two Improvement Agreements, one for the Montecito area and one for the Palazzo area, which were approved by City Council in October 2019. In these Agreements, Holt agreed to complete the missing public and private improvements in each phase within 24 months of the Council approval and prior to issuance of occupancy permits on any of the new homes pro posed within each phase. Those improvements consist generally of the capping , repair or construction of private streets, installation of sewer and water systems, utilities, drainage systems, and landscaping and irrigation, and the setting of final survey monuments and property corners.
As was done for the DR Horton Project in Rio Vista/Verano area, the two Improvement Agreements provided that improvement securities were to be posted prior to the City’s issuance of a Certificate of Occupancy on any of the lots in either phase. The two Agreements were very similar to the City’s standard Subdivision Agreement, except that the Tract Maps have already been recorded.
Holt’s efforts to move ahead were further delayed, however, due to difficulty in finding a builder and difficulty clearing title to the many subleases involved through the Bureau of Indian Affairs. As a result, although both Agreements are still in effect, no building permits in either the Montecito or Palazzo areas, or any other phases have been issued.
DISCUSSION:
Assignment and Assumption Agreements:
Holt Opportunity Fund made a business decision to transfer all its holdings in Rio Del Sol to RDS Development, LLC, a California limited liability company (RDS), a wholly owned subsidiary of Holt. Since this involved Indian allottee land, approval of this transfer and modification of the Indian business leases required the approval of the Bureau of Indian Affairs (BIA). This transfer and approval also took some time and was finally approved by the BIA.
5.L
Packet Pg. 216
Cathedral City Page 3 of 3 Printed on 4/21/2022
Since ownership of the land has changed, respectively, the principal on each of the Improvement Agreements must be changed from Holt to RDS. Per the terms of the Agreements, when such a change in ownership occurs, an Assignment and Assumption must be executed and approved by the new owner.
Two separate Assignment and Assumption Agreements (Assignment Agreements) have been prepared and executed by both parties: Holt and RDS. In these Assignment Agreements, Holt assigns all of its rights and obli gations under the Improvement Agreements to RDA, and RDA accepts and assumes those obligations in place of Holt.
Also in the two Assignment Agreements , the terms of the original Assignment Agreements have been extended by another two (2) years. This req uires the new principal, RDS, to complete the required improvements in each phase within two (2) years of the date of approval of these Assignment Agreements by the City Council.
As in the existing Improvement Agreements, RDS agrees that prior to the fina l inspection of any new dwelling unit in either phase or approval of an occupancy permit, RDS will post improvement securities in the amounts specified in the Assignment Agreements, as a guarantee of the completion of the required improvements.
Environmental Summary:
During previous plan and time extension reviews and the current action today , it ha s been determined that since the approval of the original CEQA Negative Declaration for the Tentative Tract and PUD, there have been no substantial changes to the overall Project, no new significant environmental effects, no substantial increase in the severity of any previously identified impacts, and no new information of substantial importance which would modify the conclusions reached in the original Negative Declaration.
Staff is requesting that the City Council approval an Assignment of the Improvement Agreement with Holt Opportunity Fund, LP, executed on December 12, 2019, for improvements in the Montecito village portion of the Rio Del So l development, to RDS Development, LLC; and, to approve the Assignment of the Improvement Agreement with Holt Opportunity Fund, LP, executed on December 12, 2019, for improvements in the Palazzo village portion of the Rio Del So l development, to RDS Development, LLC; and, to authorize the City Manager and City Clerk to execute the Assignments on behalf of the City in a form approved by the City Attorney.
FISCAL IMPACT:
There is no fiscal impact to the City as a result of this action.
ATTACHMENTS:
Rio Del Sol Vicinity Map
RDS Assignment SIA Palazzo
RDS Assignment SIA Montecito
5.L
Packet Pg. 217
5.L.a
Packet Pg. 218
Attachment: Rio Del Sol Vicinity Map (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 219
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 220
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 221
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 222
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 223
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 224
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 225
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 226
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 227
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 228
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 229
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 230
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 231
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 232
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.b
Packet Pg. 233
Attachment: RDS Assignment SIA Palazzo (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 234
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 235
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 236
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 237
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 238
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 239
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 240
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 241
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 242
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 243
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 244
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 245
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
5.L.c
Packet Pg. 246
Attachment: RDS Assignment SIA Montecito (3108 : Rio Del Sol Tract No. 28561-1 and 28561 Assignment of Improvement Agreements)
Cathedral City Page 1 of 2 Printed on 4/21/2022
Staff Report
City Council
Item No. 8.A
Meeting Date: April 13, 2022
From: Chris Parman, Communicaions and Events Manager
Title: Special Use Permit for Fields of Valor (formerly Healing Field)
City Council
RECOMMENDATION:
To approve SUP# 22-002 for the annual Fields of Valor (formerly known as "Healing Field") event at Patriot Park.
BACKGROUND:
The Rotary Clubs of Cathedral City have requested to stage the annual “Fields of Valor” (formerly known as “Healing Field”) event in Patriot Park, Novem ber 5-12, 2022, and to receive city council sponsorship in the amount of $300 to offset the Special Use Application Fee, as well as in-kind services from the City’s Public Works staff. “Fields of Valor” honors the men and women from California who served in our military and gave the ultimate sacrifice in Afghanistan, Iraq, and Vietnam.
DISCUSSION:
Public Works plays a vital role in providing assistance to th is annual event involving administrative and staffing hours. Though the Rotary Clubs have success fully broadened their volunteer base thereby reducing the overall event costs, the Club s still need assistance from the Public Works staff. The organizers will provide liability insurance and are working with Big League Dreams Sports Park to arrange the maintenance of the park during the event.
A basic description of the event includes:
• Surveying the flag locations, October 28-29
• Installing the rebar pipe for each flag display and mounting the flags, November 4 • Opening Ceremonies – Saturday, November 5 at 9 am
• Performances and speaker amplification for presentations at opening ceremonies.
• Static Display of Flags between Opening and Closing Ceremonies • Friday, November 11 – Veterans Day
• Closing Ceremony, Saturday, November 12th at noon
FISCAL IMPACT:
The C ity has budgeted $2,500 cash sponsorship for the event from the
8.A
Packet Pg. 247
Cathedral City Page 2 of 2 Printed on 4/21/2022
Communications/Events budget and in-kind services, mostly from Public Works, of up to $6,000. Last time, the in -kind expenses totaled $3,186.00. Since the City is co - sponsoring the event, the applicant has requested that the Special Use Fee of $ 300 be sponsored by the city council using discretionary funds.
ATTACHMENTS:
In Memory of Our Veterans - SUP 22-002
8.A
Packet Pg. 248
8.A.a
Packet Pg. 249
Attachment: In Memory of Our Veterans - SUP 22-002 (3165 : Fields of Valor (formerly Healing Field) SUP)
8.A.a
Packet Pg. 250
Attachment: In Memory of Our Veterans - SUP 22-002 (3165 : Fields of Valor (formerly Healing Field) SUP)
8.A.a
Packet Pg. 251
Attachment: In Memory of Our Veterans - SUP 22-002 (3165 : Fields of Valor (formerly Healing Field) SUP)
8.A.a
Packet Pg. 252
Attachment: In Memory of Our Veterans - SUP 22-002 (3165 : Fields of Valor (formerly Healing Field) SUP)
8.A.a
Packet Pg. 253
Attachment: In Memory of Our Veterans - SUP 22-002 (3165 : Fields of Valor (formerly Healing Field) SUP)
8.A.a
Packet Pg. 254
Attachment: In Memory of Our Veterans - SUP 22-002 (3165 : Fields of Valor (formerly Healing Field) SUP)
8.A.a
Packet Pg. 255
Attachment: In Memory of Our Veterans - SUP 22-002 (3165 : Fields of Valor (formerly Healing Field) SUP)
Cathedral City Page 1 of 2 Printed on 4/21/2022
Staff Report
City Council
Item No. 8.B
Meeting Date: April 13, 2022
From: Robert Rodriguez, Director of Planning/Building
Title: Zone Ordinance Amendment No. 22-001
City Council
RECOMMENDATION:
Introduce, read by title, and waive further readin g of the proposed ordinance amending Section 9.62.070 of the Cathedral City Municipal Code to prohibit new billboards in the City.
BACKGROUND:
Section 9.62.07 0 of the Cathedral City Municipal Code (CCMC) allows up to 23 billboards to be erected on non -tribal land within the City. Billboards on tribal land are not subject to City regulation. The City currently has 20 billboards. The Code also contains development standards for billboards, including height, lighting, spacing, and face size regulations. Exis ting billboards may be replaced and reconstructed to current standards in substantially the same location. Digital billboards are allowed with a conditional use permit both for newly constructed billboards and replacement billboards.
The City Council hel d study sessions on August 18, 2021 , and November 30, 2021 , on the subject of billboard regulation and amortization. At the conclusion of the November 30, 2021 , study session, the Council directed that an ordinance be prepared that prohibited new billboard s in the City except for along Interstate 10, and prohibited existing static billboards from being converted to digital. The Council further directed that the number of billboards permitted along Interstate 10 be capped at the number that exists currently (not including any billboards that are on tribal land).
The Planning Commission held a public hearing on the proposed ordinance on March 2, 2022, and voted to recommend the Council adopt the proposed ordinance. Three Commissioners thought that the Council should consider continuing to allow existing static billboards to be converted to digital, but no formal recommendation was made to modify the proposed ordinance.
Furthermore, just prior to the Planning Commission meeting, staff confirmed with the local billboard company, Lamar, that there are no existing billboards on non -tribal land along Interstate 10. Therefore, the Planning Commission included in their motion to revise the proposed ordinance to prohibit billboards on non-tribal land along Interstate
8.B
Packet Pg. 256
Cathedral City Page 2 of 2 Printed on 4/21/2022
10. The ordinance has been revised.
DISCUSSION:
The proposed ordinance amends Section 9.62.070, paragraph A, of the CCMC to implement the direction provided by the City Council on November 30, 2021 , and Planning Commission’s motion to prohibit billboards along Interstate 10. The ordinance prohibits new billboards in the City including along Interstate 10 on non-tribal land.
Existing billboards erected in compliance with City requirements will become legal nonconforming uses and will be allowed to cont inue to be operated and maintained in accordance with the City’s regulations of legal nonconforming uses in Chapter 9.66 of the City Code. These regulations do not allow legal nonconforming uses to be intensified. The proposed ordinance expressly states th at the conversion of an existing static billboard to digital would be an intensification and not allowed. As noted above, three Planning Commissioners indicated that the Council should consider allowing existing static billboards to be converted to digital . While conversion to digital may improve the aesthetics of an existing billboard, it also will likely extend the life of the billboard.
The proposed ordinance eliminates the development standards applicable to new billboards as no new billboards will be permitted. No changes were made to the existing regulations on cannabis advertising on billboards.
ENVIRONMENTAL REVIEW:
The adoption of the proposed ordinance is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidel ines 15301, 15303 and 15061(b)(3). The ordinance allows existing legal nonconforming billboards to be maintained and prohibits new billboards . Further, it can be seen with certainty that the ordinance would not have a significant effect on the environment. If adopted, the proposed ordinance would result in fewer billboards being able to be constructed within the City than under current regulations.
PUBLIC NOTIFICATION:
A public hearing notice was published in accordance with the City Municipal code.
FISCAL IMPACT:
Staff and City Attorney costs have been incurred in drafting and reviewing of the Ordinance.
ATTACHMENTS:
Proposed Ordinance
Public Hearing Notice
8.B
Packet Pg. 257
-1-
RIV #4889-3092-9927 v1
ORDINANCE NO. _______,
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CATHEDRAL CITY AMENDING SECTION 9.62.070 OF
THE CITY CODE TO PROHIBIT NEW BILLBOARDS
WHEREAS, it is within a city’s zoning powers to regulate billboards, including prohibitions on billboards; and
WHEREAS, the City Council desires to improve the aesthetics of the City, and the proliferation of billboards in the City has negatively impacted the City’s aesthetics; and WHEREAS, the adoption of this ordinance is exempt from review under the California Environmental Quality Act (“CEQA”) under CEQA Guidelines 15301, 15303 and 15061(b)(3).
The ordinance prohibits new billboards and allows existing legal nonconforming billboards to be maintained. The ordinance does not have the potential to cause significant environmental impacts.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1 AMENDMENT OF SECTION 9.62.070 OF THE CATHEDRAL CITY
MUNICIPAL CODE
Paragraph A of Section 9.62.070 of the Cathedral City Municipal Code is amended in its entirety to read as follows:
“A. Billboard Signs.
1. Billboards Prohibited. No person shall erect or maintain a billboard within the city.
2. Nonconforming Billboards. A legal nonconforming billboard may continue to be operated and maintained in accordance with Chapter 9.66 of this code. For the purposes of this paragraph and paragraph A of Section 9.66.030, converting a lega l nonconforming billboard with static copy to a billboard with digital or changeable copy is deemed an increase in intensity of the nonconforming use and shall not be permitted.
3. Billboards on Tribal Land. Billboards on Tribal land shall conform to Ordi nance No. 13, as amended, of the Agua Caliente Band of Cahuilla Indians, entitled “Tribal Ordinance Controlling Outdoor Advertising Displays.”
4. Cannabis Advertising.
a. No person shall allow cannabis or cannabis products to be advertised on any billboard within one thousand feet of:
i. A day care center, which for the purposes of this section means a child
8.B.a
Packet Pg. 258
Attachment: Proposed Ordinance (3180 : ZOA No. 22-001)
-2-
RIV #4889-3092-9927 v1
day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school-age child care centers; ii. A public or private school providing instruction in any grade from kindergarten to twelfth grade;
iii. A park;
iv. A youth center, which for the purposes of this section means any public or pr ivate facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities; or v. The city’s public library.
b. No person shall allow cannabis or cannabis products to be advertised on any billboard that depicts any of the following:
i. A person or character engaged in the act of smoking, vaping or otherwise ingesting cannabis or cannabis products; or
ii. Cartoon characters or other characters attractive to children.” SECTION 2 SEVERABILITY
The City Council declares that, should any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance as hereby adopted shall remain in full force and effect.
SECTION 3 EFFECTIVE DATE
This Ordinance shall take effect thirty (30) days after its second reading and adoption by the City Council.
SECTION 4 POSTING
The City Clerk shall, within fifteen (15) days after passage of this Ordinance, cause it to be posted in at least three (3) designated public places; shall certify to the adoption and posting of this Ordinance; and shall cause this Ordinance and its certification, together with proof of posting, to be entered in the Book of Ordinances of this City.
SECTION 5 CERTIFICATION
The foregoing Ordinance was approved and adopted at a meeting of the City Council held on the ____ day of _____________, 2022, by the following vote:
Ayes:
8.B.a
Packet Pg. 259
Attachment: Proposed Ordinance (3180 : ZOA No. 22-001)
-3-
RIV #4889-3092-9927 v1
Noes:
Abstain:
Absent:
______________________________
Ernesto Gutierrez, Mayor
ATTEST:
____________________________
Tracey Martinez, City Clerk
APPROVED AS TO FORM:
_________________________________
Eric S. Vail, City Attorney
8.B.a
Packet Pg. 260
Attachment: Proposed Ordinance (3180 : ZOA No. 22-001)
City of Cathedral City
Public Hearing Notice
Notice of Availability for Public Review
and Environmental Determination
Notice is hereby given that the Cathedral City City Council will hold a Public Hearing on the following:
CASE(S) APPLICANT/REPRESENTATIVE
Zone Ordinance Amendment No. 22-001 City of Cathedral City
PROPOSAL
Amend Cathedral City Municipal Code Section 9. 62.070(A) (Billboard Signs). The proposed amendment would prohibit new billboards.
ENVIRONMENTAL DETERMINATION
The Project is exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines 15301, 15303 and 15061(b)(3) on the grounds that it can be seen with certainty that this zon e ordinance amendment does not have the potential to cause significant environmental impacts.
All information regarding the proposed project is availabl e for public review at the City of Cathedral City Civic Center, Planning Department, 68 -700 Avenida Lalo Guerrero during regular business hours (Monday through Friday, 8:00 AM - 4:30 PM).
DATE AND TIME OF CITY COUNCIL HEARING
April 13, 2022 at 5:30 PM, or as soon thereafter as the matter may be heard.
PLACE OF HEARING
Cathedral City Civic Center - Council Chamber, 68-700 Avenida Lalo Guerrero, Cathedral City, CA 92234
Due to the COVID -19 pandemic, the City may limit the ability of interested persons to physically appear at the time and place set forth above and may provide alternative means for interested persons to observe and be heard consistent with AB361, or any other Executive Orders that may exist at the time of the hearing. Information on how to observe and participate in the hearing remotely will be published in the agenda for the April 13, 2022 City Council meeting.
Any person may appear at the hearings and be heard in support of, or opposition to , the proposed project or environmental determination.
The City Council, at the public hearing or during deliberations, may approve, deny, or propose changes to the project or to the environmental determination.
If you challenge any of these items in co urt, you may be limited to raising only those issues you or someone el se raised at the public hearing described in this notice or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please send all correspondence to the Project Planner:
Robert Rodriguez, Director of Planning/Building
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
(760) 770-0344
NOTE: In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the Planning Department at (760) 770-0340. Notification 48 hours prior to the meeting will enable the City to make reasonable accommodations to ensure accessibility to this meeting. {28 CFR 35.104 ADA TITLE II}
8.B.b
Packet Pg. 261
Attachment: Public Hearing Notice (3180 : ZOA No. 22-001)
Cathedral City Page 1 of 1 Printed on 4/21/2022
Staff Report
City Council
Item No. 8.C
Meeting Date: April 13, 2022
From: Charles McClendon, City Manager
Title: Update on Emergency Actions Related to COVID-19
City Council
RECOMMENDATION:
Update on Status of Emergency Proclamation. Possible action to continue or rescind Resolution 2020-06.
Update on Emergency Actions taken by City, County, State of Federal Agencies.
Possible consideration of additional measures to be taken. Council may add items not listed on the agenda pursuant to Government Code section 54954.2 by majority vote.
8.C
Packet Pg. 262