Cathedral City City Council
August 24, 2022

CITY COUNCIL
AGENDA

Study Session
Wednesday, August 24, 2022
3:00 PM

City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234

MAYOR
Ernesto Gutierrez

CITY COUNCIL MEMBERS

Mayor Pro Tem
Rita Lamb

Councilmember
Mark Carnevale

Councilmember
Nancy Ross

Councilmember
Raymond Gregory
• CALL TO ORDER
• ROLL CALL
• AGENDA FINALIZATION
At this time the City Council may announce any items being pulled from the agenda or continued to another date.

1. CLOSED SESSION
A. Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8.

Property Location: Approximately 13.5 acres south of East Palm Canyon Drive at Date Palm Drive
Negotiating Parties: City of Cathedral City as the Successor Agency to the former Redevelopment Agency and the City Urban Revitalization Corporation Property Owner: City Urban Revitalization Corporation
Under Negotiations: Price and Terms for potential sale of real property

2. PUBLIC COMMENT
This is the opportunity for members of the publi c to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Cathedral City P a g e 2
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 clari fication. The Mayor may also request 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.

3. STUDY SESSION
Normally no action is taken on Study Session items, however, the City Council reserves the right to give specific policy direction and take specific action as necessary. Presentation will be limited to 10 minutes unless other provisions are made in advance.

A. Interview Applicants for the Planning Commission
Recommendation: Staff recommends the City Council interview the applicants that have submitted applications for possible appointment to fill one vacant seat on the Planning Commission with a term expiring on June 30, 2023.

B. Thousand Palms Fiscal Analysis
Recommendation: This item is presented for information, discussion and direction only.

C. Process for Making Appointments to Commissions and Committees Recommendation: This item is presented for information, discussion and direction only.

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 normal business hou rs. In addition, such documents will be posted on the City’s website at www.cathedralcity.gov.

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Staff Report

City Council

Meeting Date: August 24, 2022
From: Stone James, Economic Development Director
Title: Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8.

Property Location: Approximately 13.5 acres so uth of East Palm Canyon Drive at Date Palm Drive
Negotiating Parties: City of Cathedral City as the Successor Agency to the former Redevelopment Agency and the City Urban Revitalization Corporation
Property Owner: City Urban Revitalization Corporation
Under Negotiations: Price and Terms for potential sale of real property

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Staff Report

City Council

Item No. 3.A

Meeting Date: August 24, 2022
From: Tracey Hermosillo, City Clerk
Title: Interview Applicants for the Planning Commission

City Council

RECOMMENDATION:

Staff recommends the City Council interview the applicants that have submitted applications for possible appointment to fill one vacant seat on the Planning Commission with a term expiring on June 30, 2023.

BACKGROUND:

On June 22, 2022 , the City Council accepted the resignation of Kevin Brandt from the Planning Commission and directed staff to accept applications to fill this seat and schedule interviews.

Pursuant to California Government Code Section 54974, a Notice of Unscheduled Vacancy on the Planning Commission was posted in the three designated postin g locations, published in the Desert Sun and announced on the City’s Website and through Social Media.

The term on the Planning Commission shall be effective immediately and go through June 30, 2023.

DISCUSSION:

Staff has received applications from the following individuals:

Rich Malacoff
Christopher Mandarano
Danielle Mead

All of the applications are attached for your review . Mr. Mandarano interviewed in the June interview process; however, he was not appointed at that time. Mr. Mandarano has expressed interest in s erving on the Planning Commission, however, he will be out of town on the date of the interviews but would still like to be considered.

Staff recommends that the following be the procedure for the interview process:

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• Applicants will asse mble in the Council Chambers between 3:00 p.m. and 3:15 p.m.
• A computerized random number draw will be conducted for the order of the interviews.
• The applicants that are not being interviewed first will be asked to wait outside the Chambers until it is the ir turn to interview so that no applicant has access to the interview questions prior to his/her interview.
• The interviews will be conducted in the Council Chambers in an open public meeting.

FISCAL IMPACT:

There is no fiscal impact with this item.

ATTACHMENTS:

Applications

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Attachment: Applications (3375 : Planning Commission Interviews)

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Attachment: Applications (3375 : Planning Commission Interviews)

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Attachment: Applications (3375 : Planning Commission Interviews)

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Attachment: Applications (3375 : Planning Commission Interviews)

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Attachment: Applications (3375 : Planning Commission Interviews)

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Staff Report

City Council

Item No. 3.B

Meeting Date: August 24, 2022
From: Robert Rodriguez, Director of Planning/Building
Title: Thousand Palms Fiscal Analysis

RECOMMENDATION:

This item is presented for information, discussion and direction only.

BACKGROUND:

The City Council, at their Annual Goal Setting Strategy Session held in January 2022 , directed staff to update the Thousand Palms Fiscal Analysis. The Fiscal Analysis, last updated in 2018, provides fiscal implications for a potential an nexation of the City’s Sphere of Influence (SOI) at four stages: immediately upon annexation (Phase 1); at the time 10 percent of the currently vacant land is developed (Phase 2); at the time 50 percent of the currently vacant land has been developed (Phas e 3); and at build out (Phase 4). It also describes how the demand for local services will be met when the annexed area is developed.

The Analysis examined anticipated annual costs needed to serve the future annexation area at the four phases of developme nt including general government and public safety services, projected annual revenues including property, local sales tax , and transient occupancy tax, projected cannabis tax and what the costs and revenues would be for the City should that revenue not be available, one-time revenue sources, and significant one-time costs associated with Fire Department facilities and roadway improvements to bring currently substandard streets to City standards.

The Analysis concluded that revenues are dependent on future development types and intensities in the annexation area. Due to the residential nature of land uses in the SOI, build out will significantly increase residential units, while generating a moderate increase in commercial and industrial development. The res ult is a negative cash flow for the City throughout the build out period. Annexation is projected to result in an annual deficit for the City that ranges from $6.3 million at annexation to $8.1 million with projected cannabis tax revenues included in the a nalysis, and between $6.3 million and $22.0 million at build out without cannabis tax revenues. Today, five years later, that gap has continued to increase due to the increased cost of development and general government services

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DISCUSSION:

Since 2018, the SOI remains largely undeveloped , limited improvements have been made to the public infrastructure, costs to provide general government and public safety services have increased and the cannabis industry, and the projected tax revenue, have not grown as anticipated. Based on the aforementioned, should Council wish to pursue an update to this analysis, staff would commence an RFP process to secure a Consultant to complete, which is anticipated to cost in excess of $50,000. Realizing the update will highly likely still reflect a significant gap as referenced above, Council may wish to postpone any update at this time.

FISCAL IMPACT:

None

ATTACHMENTS:

Attachment 1 - 2018 Staff Report and Attachments

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Cathedral City

Staff Report

Item No. 2.A

Meeting Date: November 14, 2018
From: Leisa Lukes, Business Development Manager
Title: Findings of the Fiscal Impact Analysis and Annexation Study for Cathedral City's Sphere of Influence in the Unincorporate d Community of Thousand Palms

City Council

RECOMMENDATION:

This item is provided for information, discussion and direction only.

BACKGROUND:

The City’s most recent Sphere of Influence (SOI) expansions occurred in 2011 with approval by the Riverside County Local Agency Formation Commission (LAFCO) to add approximately 9,300 acres to the City’s Sphere. SOIs are used as a planning tool for agencies to conduct service and facility planning for areas it intends to serve in the future. According to LAFCO, a SOI is defined as “a plan for expansion of the probabl e physical boundary and service area of a local agency, as determined by LAFCO.”

Cathedral City’s Sphere area is generally located within the unincorporated Riverside County community of Thousand Pal ms. A fiscal review to determine the financial feasibility of providing City services to this area occurred with preparation of a Fiscal Analysis and Plan for Services by Ralph Anderson & Associates completed in March 2013 – nearly six years ago. Notwithstanding the outcome of that Study, the City did not pursue annexation given the overall economic climate and general consensus within the Thousand Palms community at that time. In January 2015, LAFCO approved a privately-initiated annexation of the south ern-most area of the Sphere , the Messenger Annexation, that expanded the City’s boundaries by 700 acres.

The City Council, at their Annual Goal Setting s ession held in January 2018 , directed Staff to proceed with an analysis to obtain an updated review of the physical and fiscal feasibility of annexing the approximately 8,600 acres remaining within the City’s SOI. In July 2018, the City contracted with Terra Nova Planning & Research, Inc. to prepare this analysis. The Fiscal Impact Analysis and the Constraints and Opportunities Report, which have been completed as Phase 1, are attached to this report for presentation to the City Council.

On September 27, 2018, Mayor Stan Henry and Terra Nova’s Principal, Nicole Criste,

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presented the process and sche dule for completing the Constraints and Opportunities Report and the Fiscal Impact Analysis to the Thousand Palms Community Council at their regularly -scheduled meeting. Additional extensive public outreach would be integral to any future annexation activities.

DISCUSSION:

Cathedral City ranks in the top three Coachella Valley cities in population and size with a population of approximately 54,000 and a municipal boundary that encompasses 22.6 square miles in area. The most recent annexation, the Messeng er Annexation, added approximately 700 acres to the City’s municipal boundary. There are approximately 8,600 acres within the City’s SOI, wh ich is generally located in Riverside County’s unincorporated community of Thousand Palms.

Spheres of Influence define the boundaries of an area in which an agency intends to service in the future. The most recent comprehensive fiscal analysis of the of the SOI was completed for the City nearly 6 years ago in March 2013. In July 2018, the City Council approved an agreement with the consulting firm of Terra Nova Planning & Research, Inc. (Consultant) to prepare an updated economic analysis to determine the fiscal feasibility of servicing the entire SOI area upon annexation to the City. The Consultant has completed that Study with the findings presented herein. The complete Constraints and Opportunities Report and Fiscal Impact Analysis are i ncluded as Attachments 6 and 7, respectively.

CONSTRAINTS, OPPORTUNITIES AND LAND USES
The Constraints and Opportunities Repo rt (Attachment 6) provides background information on current physical conditions in the SOI. It also provides potential future service needs and demands while outlining the City’s future responsibilities associated with eventual incorporation into the City’s municipal boundary.

Build out assumptions used to calculate the costs and revenues associated with the Sphere area are based on existing City land use designations equivalent to Riverside County land use designations. Density was calculated based o n a realistic development pattern consistent with existing development in the City and region.

No specific p rojects in the Sphere have requested annexat ion, nor are any major projects currently under con struction in the Sphere. Recent press coverage of a proposed Coachella Sports and Entertainment Stadium Authority complex at Cook Street and Varner Road indicates that a potential project could be developed at this location. The fiscal analysis is therefore based on general assumptions regarding build out of the lands consistent with Cathedral City ’s General Plan land use designations.

Existing and projected development scenarios are shown in Attachment 1, Cathedral City SOI Land Use and Build Out Projections. Of note, the County Board of Supervisors has recently authorized cannabis operations in unincorporated Riverside County.

The current population within the Sphere is 7,875. Given the identified land uses and applying the City’s average household size of 3.11 persons per household to the projected 17,244 dwelling units at build out , an estimated build out population of 61,504 residents has been assumed in the analysis.

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As shown in Attachment 1, approximately 74.1%, or approximately 5,557 acres, of the Sphere’s total acreage is vacant, and appro ximately 1,870 acres are developed.

Approximately 2,413 acres are in Open Space and offer limited development potential.

The majority of developed lands (947 acres) are for residential land uses. Based on the analysis completed by Terra Nova, the Sphere has the potential to generate 24,418 potential residential units, including the existing 7,174 residential units. The area also has the potential to generate 2.8 million square feet of commercial space and 22.7 million square feet of industrial space at build out.

FINDINGS AND ANALYSIS
To complete the Analysis, the Consultant examined a number of financial and policy documents from the City, the County, LAFCO, and several special districts that currently serve the Thousand Palms community. The Consultan t also reviewed the prior fiscal analyses for the City’s Sphere area since 2013, focusing on the report by John Goss of Ralph Andersen & Associates.

The Constraints and Opportunities Report (Attachment 6) assumes that there will be no change i n most non-governmental providers that s upply local services to Thousand Palms. Utility services such as water (Coachella Valley Water District [CVWD]), wastewater (CVWD), flood control (CVWD), electricity (Southern California Edison and Imperial Irrigation Distri ct), natural gas (The Gas Company), and solid waste (Burrtec) would continue to provide their respective services if annexation occurs. Riverside County would continue to provide l ibrary services . Desert Recreation District would continue to provide recr eation services, as well as lighting and landscaping services, through a special assessment district. The area w ould also remain within the Palm Springs Unified School District.

Animal control services would continue to be provided by Riverside County th rough a contract with the City with costs paid by the City’s General Fund. Street sweeping could either remain under the existing Burrtec contract or be provided through CVAG’s street sweeping program.

The fiscal analysis considered “General Government ” costs to include administration, planning, building and similar departments that would be transferred to City responsibility. Roadway maintenance, including upgrading the area’s current sub - standard streets, would also be the City’s responsibility. Public works costs were considered separately because they are funded through a combination of General Fund, Measure A, and Gas Tax revenues. In all cases, Capital Improvement Costs were excluded from operational assumptions as they are targeted expenditures that are not annually recurring.

The provision of l aw enforcement services would be transferred from the Riverside County Sheriff’s Department to the Cathedral City Police Department . The Chief of Police estimates that immediately upon annexation, the D epartment will require 7 additional patrol officers, 3 sergeants, 2 dispatchers and 1 records specialist to operate in the Sphere. In addition, 4 patrol-ready vehicles and 10 radios would be required.

Riverside County Fire Department (RCFD) currently p rovides fire protection to the SOI from a single fire station located on Roberts Road. The City currently contracts with

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RCFD to provide fire protection services to the approximately 700 acres of recently - annexed area (Messenger Annexation). Upon incorpo ration, ambulance services, emergency management, emergency medical services, fire prevention and fire protection w ould be provided by the Cathedral City Fire Department to both the annexed Sphere area and the Messenger Annexation area.

The Fire Chief es timates that the cost of purchasing and equipping the Robert Road Fire Station would be a pproximately $9.5 million. Operational costs for a fully -staffed station is estimated to be $3.9 million upon annexation. The Fire Chief projects that a second fire station would be needed in the eastern portion of the Sphere area (estimated in the analysis to be open when 50 percent of development has occurred – Phase 3 of the analysis). The costs to construct and equip the second fire station is estimated at $14.6 million and the operational costs would be equivalent to those of the Robert Road Station, or $3.9 million annually.

FISCAL SUMMARY
The Fiscal Impact Analysis (Attachment 7) provides fiscal implications of a potential annexation of the City’s SOI at four stages: immediately upon annexation (Phase 1); at the time 10 percent of the currently vacant land is developed (Phase 2); at the time 50 percent of the currently vacant land ha s been developed (Phase 3); and at build out (Phase 4). It also describes ho w the demand for local services will be met when the annexed area is developed.

All revenues and expenses are identified in current dollars, exclusive of inflation.

Anticipated annual costs needed to serve the future annexation area at the four phases of development and projected annual revenues are shown in Attachment 2, Cost and Revenue Summary Table (with Cannabis Tax), and Attachment 3, Cost and Revenue Summary Table (without Cannabis Tax) . The only difference in the two tables is the inclusion/exclusion of the cannabis tax revenue.

The cannabis tax calculation is highly speculative. As a result, Attachment 3 was prepared to show what the costs and revenues would be for the City should that revenue not be available. Unlike other revenue categories that have had many years of proven generation in the City’s budget, the anticipated revenues associated with the cannabis industry cannot be assured. The threshold of demand versus supply is not known and, should the cannabis industry not generate revenu e resulting from the projected 1 million square feet of space within the Sphere area as shown in Attachment 2, the annual deficit to the City is projected to range from $6.3 million immediately upon annexation to $22.0 million at build out as shown in Attachment 3.

Attachment 2 shows the high costs associated with providing service immediately upon annexation, particularly relating to police and fire services, result ing in an initial deficit of $6.3 million. Due to the considerable revenue generated by the anticipated cannabis cultivation tax, that deficit is expected to remai n relatively constant through build out as development of cannabis facilities expands during the last two phases of development of the Sphere. The increased deficit shown in Phase 3 of Attachment 2 is due to the doubling of the Fire Department operation costs associated with a second fire station.

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Annual revenues include General Fund revenues, such as property, local sales tax, and transient occupancy tax; Restricted Funds, such as gas tax and Measure A funds; and Interest Earnings, such as interest earned on revenues. These revenues range from $3.1 million upon annexation to $43.4 million at the end of the build out period when projected cannabis tax is included in the projected r evenues to the City as shown in Attachment 2.

Projected expenditures, in current dollars, include estimates for general government, public works, police protection, fire/EMS services , and roadway maintenance. These costs range from $9.4 million upon an nexation to $49.9 million at build out. The most significant costs are those from Police protection ($19.7 million) , closely followed by general government operations ($18.7 million).

In addition to the annual operational costs and revenues associated with governing the Sphere area, the City would also see one -time costs and revenues as summarized in Attachment 4 . These are not calculated as part of the annual costs and revenues shown in Attachments 2 and 3 because they are tied to development impact fees (revenue) and specific capital improvement projects (costs).

Development Impact Fee (DIF) revenues, a one -time revenue source, are projected based on development with in each phase (Attachment 4) and would vary considerably based on the actual level of development. DIF revenues are projected to be significant (as much as $50.2 million at build out) given the fact that the Sphere area is largely undeveloped.

Significant one -time costs are associated with Fire Department facilities and roadway improvements. The purchase and outfitting of two fire stations is estimated to cost $24.1 million, while roadway improvement costs to bring currently substandard streets to City standards are estimated at $44.4 million.

SUMMARY
Revenues are dependent on future development types and intensities in the annexation area. Currently the Sphere area is largely undeveloped. Due to the residential nature of land uses in the Sphere, build out will significantly increase residential units, while generating a moderate i ncrease in commercial and industrial development. The result is a negative cash flow for the City throughout the build out period. Annexation is projected to result in an annual deficit for the City that ranges from $6.3 million at annexation to $8.1 million with projected cannabis tax revenues included in the analysis, and between $6.3 million and $22.0 million at build out without cannabis tax revenues.

Alternative land use designations for future development would result in modified projections. Land owners, environmental consideration and market demands ultimately weigh in on any proposed changes to land use designations and zoning. It should be noted that the pre -zoning designations in place at the time of annexation must remain constant for two years from the date the annexation is approved.

A detailed comparison of the current fiscal analysis for the Sphere area and the Goss analysis prepared in 2013 is provided in Attachment 5. Significant differences between the City’s current budget and that of 2013, as well as differences in economic growth

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assumptions contribute to the varied outcomes of the two analyses.

FISCAL IMPACT:

Should Council consider proceeding wi th an annexation application, st aff would identify at a future Council meeting the steps necessary for preparation of an annexation application and associated costs.

ATTACHMENTS:

1. Table 1 - Cathedral City SOI Land Use and Build Out Projections

2. Table 2 - Cost and Revenue Summary Table (with Cannabis Tax)

3. Table 3 - Cost and Revenue Summary Table (without Cannabis Tax)

4. Table 4 - One-Time Costs and Revenues

5. Fiscal Analysis Comparison Summary

6. Constraints and Opportunities Report - Cathedral City Sphere of Influence

7. Fiscal Impact Analysis of the Cathedral City Sphere of Influence Under Post- Annexation Conditions

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) ATTACHMENT 1
Table 1
Cathedral City SOI Land Use and Build Out Projections
Land Use Category1 ROW
Acres Acres Total
Acres Vacant
% of
Total
Lands
Developed
% of
Total
Lands
Total
Acres
% of
Total
Acres
Existing
SF/Units
Potential
SF/Units
Build out
SF/Units
Build out
Population
Residential
High Density Residential (RH)
(11-20 du/ac)

7.1 199.9

207.0

140.7 70.4% 59.3 29.7%
199.9 3%
131 2,110 2,241
Medium Density Residential (RM)
(4.5-10 du/ac)

8.6 210.6

219.2

128.7 61.1% 82.0 38.9%
210.6 3%
3,233 965 4,198
Low Density Residential (LR) (2-

4.5 du/ac) 441.5 1,034.0
1,475.5

538.8 52.1% 495.1 47.9%
1,034.0 14%
3,189 1,819 5,008
Estate Residential (RE) (0-2 du/ac)

74.2 1,062.1
1,136.3

751.4 70.8% 310.7 29.3%
1,062.1 14% 621 1,503 2,124 Total Residential Acreage
531.4

2,506.6

3,037.9

1,559.5 62.2% 947.0 37.8%
2,506.6 33% 7,174 6,396 13,570 27,767 Commercial
General Commercial (CG) 28.1 97.1 125.2 63.7 65.6% 33.4 34.4% 97.1 1% 609,971 609,971 Resort Residential (3-6.5du/ac) - 15.8 15.8 - 0.0% 15.8 100.0% 15.8 0% - - Total Commercial Acreage 28.1 112.9 141.0 63.7 56.4% 49.3 43.6% 112.9 2% 299,763 609,971 909,734 Mixed Use
Mixed Use - Urban (Residential
Units)

53.0 660.0

712.9

283.6 71.6% 112.4 28.4%
396.0 N/A - 10,848 10,848 33,738
Mixed Use - Urban (Commercial
Square Footage)

53.0 660.0

712.9

189.1 71.6% 74.9 28.4%
264.0 N/A 82,156 1,811,896 1,894,052
Total Mixed Use Acreage

53.0 660.0

712.9

472.7 80.8% 187.3 19.2%
660.0 8% - - -
Industrial
Industrial (I) 44.2
1,733.3

1,777.5

1,360.1 78.5% 373.2 21.5%
1,733.3 23% 20,144,069 20,144,069
Business Park (BP) 8.8 75.8 84.6 73.8 97.3% 2.0 2.7% 75.8 1% 1,092,267 1,092,267 Total Industrial Acreage 53.0
1,809.1

1,862.1

1,433.9 79.3% 375.2 20.7%
1,809.1 24% 1,431,431 21,236,336 22,667,767
Open Space

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Table 1
Cathedral City SOI Land Use and Build Out Projections
Land Use Category1 ROW
Acres Acres Total
Acres Vacant
% of
Total
Lands
Developed
% of
Total
Lands
Total
Acres
% of
Total
Acres
Existing
SF/Units
Potential
SF/Units
Build out
SF/Units
Build out
Population
Open Space - Other (OS-O) - - - - 0.0% - 0.0% - 0% N/A N/A N/A Open Space - Public (OS-P) 3.8
2,014.7

2,018.5

2,014.7 100.0% - 0.0%
2,014.7 27% N/A N/A N/A
Hillside Reserve (1 du/20 ac) 1.9 398.5 400.4 12.3 3.1% 386.2 96.9% 398.5 5% 0 19 19 Total Open Space Acreage 5.7
2,413.1

2,418.8

2,026.9 84.0% 386.2 16.0%
2,413.1 32% N/A 19 19
ROW
Total ROW Acreage 128.1 0.0 128.1 N/A N/A N/A N/A N/A N/A N/A N/A N/A Totals 799.2 7,501.7 8,300.9 5,556.7 0.7 1,870.1 0.2 7,426.8 100% - - - 61,5042 1 Existing residential units based on Riverside County Assessor's data. Existing square footage based on GIS analysis of aerial photographs - represents total square footage estimates of buildings within commercial, mixed use and industrial zones. Future conditions of mixed use, commercial, and industrial land uses are calculated using the following assumptions: mixed use residential development is assumed to occur at 75% of the maximum density permitted and 22% lot coverage for mixed use developing as commercial; 22% lot coverage for commercial zones, and 34% lot coverage for industrial zones. Future population calculated based on existing City household size of 3.11 persons. 2 This total is based on existing population 7,875 persons plus the projected population of (24,418 X 3.11 = 53,629)

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Attachment: 1. Table 1 - Cathedral City SOI Land Use and Build Out Projections (1241 : Thousand Palms

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) ATTACHMENT 2

Table 2
Cost and Revenue Summary Table (with Cannabis Tax)
Buildout Phase
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50%
of Vacant
Land
Developed)
Phase 4
(Build Out)

ANNUAL REVENUES
General Fund:

Property Tax $6,439 $358,099 $1,764,740 $3,523,042
Property Tax in Lieu of MVF $75 $32,126 $160,331 $320,588 Property Transfer Tax $54,053 $212,584 $688,179 $846,710 Cannabis Cultivation Tax $0 $1,208,644 $7,554,026 $15,108,052 Local Sales Tax & Transaction and Use Tax $1,407,769 $2,545,143 $7,094,640 $12,781,511 Utility Users Tax $416,824 $700,684 $1,836,123 $3,255,423 Franchise Fees $320,040 $537,988 $1,409,778 $2,499,516
Transient Occupancy Tax $474,737 $474,737 $990,756 $1,506,775 Subtotal
Annual General Fund Revenue at Phase Buildout $2,679,936 $6,070,005 $21,498,573 $39,841,616 Restricted Funds:

Highway Users Gas Tax $315,000 $529,515 $1,387,577 $2,460,154 Measure A $4,065 $7,349 $20,486 $36,907
Subtotal
Annual Restr. Fund Revenue at Phase Buildout $319,065 $536,864 $1,408,063 $2,497,060 Total All Potential Revenues at Phase Buildout $2,999,001 $6,606,869 $22,906,636 $42,338,677 Interest Earnings:

Historic Average Interest Rate on 90-Day Treasury
Bills 2.43% 2.43% 2.43% 2.43%
Anticipated Interest Earned on Revenues $72,876 $160,547 $556,631 $1,028,830 Total Potential
Annual Revenues at Phase Buildout $3,071,876 $6,767,416 $23,463,267 $43,367,506

ANNUAL COSTS
General Fund:

Costs of General Government $2,394,000 $4,024,331 $10,545,653 $18,697,307 Costs of Public Works $418,871 $704,123 $1,845,130 $3,271,389 Costs of Police Protection $2,518,732 $4,233,992 $11,095,029 $19,671,327 Costs of Fire Protection $3,902,732 $3,902,732 $7,684,634 $7,684,634 Costs of Roadway Maintenance $173,001 $215,886 $387,429 $601,856 Total Potential
Annual Costs at Phase Buildout $9,407,336 $13,081,064 $31,557,876 $49,926,513

Potential Cashflow at Phase Buildout -$6,335,460 -$6,313,648 -$8,094,609 -$6,559,006

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Table 3
Cost and Revenue Summary Table (without Cannabis Tax)
Buildout Phase
Phase 1 (At
Annexation)
Phase 2
(10% of
Vacant
Land
Developed)
Phase 3
(50% of
Vacant Land
Developed)
Phase 4
(Build Out)

ANNUAL REVENUES
General Fund:

Property Tax $6,439 $358,099 $1,764,740 $3,523,042
Property Tax in Lieu of MVF $75 $32,126 $160,331 $320,588 Property Transfer Tax $54,053 $212,584 $688,179 $846,710 Cannabis Cultivation Tax $0 $0 $0 $0
Local Sales Tax &Transaction and Use Tax $1,407,769 $2,545,143 $7,094,640 $12,781,511 Utility Users Tax $416,824 $700,684 $1,836,123 $3,255,423 Franchise Fees $320,040 $537,988 $1,409,778 $2,499,516
Transient Occupancy Tax $474,737 $474,737 $990,756 $1,506,775 Subtotal
Annual General Fund Revenue at Phase Buildout $2,679,936 $4,861,361 $13,944,547 $24,733,564 Restricted Funds:

Highway Users Gas Tax $315,000 $529,515 $1,387,577 $2,460,154 Measure A $4,065 $7,349 $20,486 $36,907
Subtotal
Annual Restr. Fund Revenue at Phase Buildout $319,065 $536,864 $1,408,063 $2,497,060 Total All Potential Revenues at Phase Buildout $2,999,001 $5,398,225 $15,352,610 $27,230,625 Interest Earnings:

Historic Average Interest Rate on 90-Day
Treasury Bills 2.43% 2.43% 2.43% 2.43%
Anticipated Interest Earned on Revenues $72,876 $131,177 $373,068 $661,704 Total Potential
Annual Revenues at Phase Buildout $3,071,876 $5,529,402 $15,725,678 $27,892,329

ANNUAL COSTS
General Fund:

Costs of General Government $2,394,000 $4,024,331 $10,545,653 $18,697,307 Costs of Public Works $418,871 $704,123 $1,845,130 $3,271,389 Costs of Police Protection $2,518,732 $4,233,992 $11,095,029 $19,671,327 Costs of Fire Protection $3,902,732 $3,902,732 $7,684,634 $7,684,634 Costs of Roadway Maintenance $173,001 $215,886 $387,429 $601,856 Total Potential
Annual Costs at Phase Buildout $9,407,336 $13,081,064 $31,557,876 $49,926,513

Potential Cashflow at Phase Buildout -$6,335,460 -$7,551,662 -$15,832,197 -$22,034,184

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Table 4
One-Time Costs and Revenues

Police and Fire Department (One-Time Costs)
Police Department Start Up Capital Costs (cars and radios) $267,512 Roberts Road Fire Station $9,544,870
Second Fire Station $14,584,870
Total Police and Fire One-Time Costs $24,397,252

Sub-Standard
Roadway Improvement Costs
Road’s
Current
Condition
Total
Length
(miles)
Description Estimated
Cost
Fully paved 34
These roads are currently fully paved. Sidewalks
are not provided along some portions on these
roads. Approximately 6.69. miles of these roads
along Ramon Road, 30 th Avenue, Cook Street,
and Rio Del Sol Road will need to be upgraded
to Secondary Highway (4 -lane undivided; 88
feet wide).
$5,446,277
Partially paved 2 These roads are generally substandard and will need to be improved/widened to City local street
standards.

Of the total 13 miles of substandard roads,
approximately 0.37 miles (along 31st Avenue)
will need to be upgraded and widened to
Secondary Highway (4-lane undivided; 88 feet
wide). The balance will require widening to City
local road standards.
$11,937,577
Substandard 11 $1,456,697
Unpaved 16
Approximately 16 miles of roads in the SOI are
unpaved and would require full improvements
to Local Streets (2-lanes; 60 feet wide).

These unpaved roads also include portions of
28th Avenue (0.65 miles), 30 th Avenue (1.38
miles), and 31st Avenue (0.14 miles), which will
need to be upgraded to Secondary Highway (4 -
lane undivided; 88 feet wide).
$25,594,238
Grand Total Cost $44,434,790
Source: Appendix B (Road way Existing Condition and Future Upgradation Cost).

City Developer Impact Fee Revenues (One time only)
Phase 1 (At
Annexation)
Phase 2 (10%
of Vacant
Land
Developed)
Phase 3 (50%
of Vacant
Land
Developed)
Phase 4 (Build
Out)
New Construction Tax $0 $7,690,659 $30,779,019 $38,535,214 Art in Public Places Fees $0 $2,228,674 $9,017,589 $11,657,842 Total Potential Developer Impact Fee
Revenues at Phase Buildout $0 $9,919,332 $39,796,609 $50,193,056

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Fiscal Analyses Comparison Summary

Terra Nova has compared its results to those of the Ralph Anderson analysis completed in 2013, as that study showed a much more positive result for the City than the current analysis. It is important to note that the 2013 analysis included commercial land included in the Messenger Annexation, which no longer applies to Sphere analysis as it has been annexed. Therefore, those revenues and costs assumed for that land are not factored into the current analysis. The fact t hat these lands have high potential sales tax and transient occupancy tax revenues impacts the current analysis.

It must also be noted that the City does not have access to the model used in the 2013 study. Therefore, the comparison undertaken by Terra No va is only based on the stated results in the 2013 study and cannot delve into differences in methodology to any great extent. The most significant differences in the analysis are briefly described below.

Short Term Analysis (Upon Annexation)
• A slight inc rease in the population of the Sphere, from 7,715 in 2013 to 7,875 currently, which would increase per capita costs calculated in the current analysis for General Government, Fire and Police Services.
• The current analysis includes costs upon annexation for General Government which the 2013 analysis did not. The 2013 analysis states that the increase in population upon annexation would not impact daily government operations, such as administration, planning and building departments, etc. The current analysis assigns a cost to this increase in population which is based on a per capita factor of current City budget costs. Although the addition of the Thousand Palms community will not generate a greatly higher demand for General Government, it is unreasonable to expect that it would have no impact at all. • The 2013 analysis assumed an extremely high property tax revenue ($817,000), provided by the County Auditor. The current analysis is based on the current property values of all land within the Sphere, provided b y the County Assessor’s office, and excluding all lands identified as exempt from property tax (Xavier High School, Berger Foundation, CVWD, IID and similar). The current property value was multiplied by 1%, which is the amount collect ed by the County, and that amount multiplied by 8.12%, which is the net amount the City will receive upon annexation. It is not known why the 2013 analysis included such a high revenue.

Because of this discrepancy, related revenues from Property Transfer Tax and Property Tax in Lieu of Motor Vehicle Fees are also lower in the current analysis. • The 2013 analysis considered the generation of Sales Tax and Transient User Tax on a per capita basis based on the total of these taxes collected by the City, divided by the City’s population. That factor was then multiplied by the number of residents in Thousand Palms. The current analysis considered the currently -developed square footage of commercial uses in the Sphere, and assigned a per square foot sales rate to that square footage, f rom which taxable sales and Transactions and Use Tax was calculated. The current analysis shows a high er total in sales tax revenue than the 2013 analysis ($1.4 million vs. $796,000). • The 2013 analysis calculated Measure A revenue based on a per capita fac tor,

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ii
derived from the total Measure A revenues received at the time divided by the City’s population. That calculation is inaccurate based on how Measure A is allocated to Valley cities. The current analysis calculated Measure A revenue based on the percentage of sales tax assigned to Measure A allocated to the City.

As a result, the current analysis shows much lower revenues when compared to the 2013 analysis ($6,439 versus $151,297).
• Other modest differences occur as it relates to other revenues and reven ue sources calculated. In terms of the conclusion of each report, however, the 2013 analysis estimated total annual revenues of $4,284,378 while the current analysis estimates $2,999,001 in total revenues upon annexation. • The 2013 analysis assumed a limited police presence in the area, and calculated police service expenditures based on a much smaller personnel demand than the current analysis (2 officers, 1 sergeant, 0.75 detective and 0.5 dispatcher in the 2013 analysis versus 7 officers, 3 sergeants, 2 d ispatchers and 1 records clerk in the current analysis). In addition, the 2013 analysis included the capital costs of vehicles in its analysis. The total costs associated with police service expenses was estimated at $2,047,527, while the current analysis estimates $2,518,732. • The 2013 fire service costs were estimated based on three scenarios. Two of the scenarios involved maintaining County Fire Department services, while one scenario (Scenario #1) assumed that the City would provide fire service. The current analysis assumes the equivalent of Scenario #1, or that the City would provide fire services immediately upon annexation. However, the 2013 analysis assumed 12 total fire and ambulance personnel, while the current analysis, based on the Fire Chief’s a nalysis, assumes 20 personnel to staff the station 24/7. The 2013 analysis estimated total expenditures of $2,019,384, while the current analysis estimates annual expenditures of $3,902,732.
• As stated above, the 2013 analysis did not assign a per capita Ge neral Government cost to the Thousand Palms area. Instead, specific activities, such as City Clerk (for elections only) and Animal Control were the only costs estimated.

As a result, the 2013 analysis estimated General Government costs at $78,983, while the current analysis estimates General Government costs at $2,394,000, and Public Works costs at $418,871. The 2013 analysis did not consider any costs associated with road maintenance, traffic signal maintenance, planning and building department costs, code compliance or other general expenditures as part of its calculation of costs.
• As a result of these differences, the short term impacts to the City’s budget also vary. The 2013 analysis estimated a net loss of $219,807, while the current analysis estimates a net loss of $6.3 million. The Table below summarizes the two analyses.

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Comparison of Immediate Costs and Revenues
2013 Analysis Current Analysis
General Government Cost $78,983 $2,394,000
Public Works/Road Maintenance Costs $0 $591,872
Fire Protection Costs $2,019,384 $3,902,732
Police Protection Costs $2,047,527 $2,518,732
Total $4,145,894 $9,407,336

General Fund Revenues $3,926,089 $2,752,812
Restricted Fund Revenues $358,289 $319,065
Total $4,284,378 $3,071,876

Difference [$219,807] [$6,335,460]

Long Term Analysis (Build Out)
• The 2013 analysis calculated incremental development scenarios differently, so the only other area of comparison is the build out analysis. • The 2013 analysis estimated a much lower residential development potential, resulting in 10,090 new units and a population of 31,457 at build out, versus the 17,244 new units and 61,504 build out population. The difference is primarily associated with the assumption made in the current analysis that the Mixed Use land use category will generate 10,898 units, none of which are accounted for in the 2013 analysis. This has a direct impact on the annual costs, which in the current analysis, are calculated on a per capita basis. • The 2013 analysis assumes many more hotel rooms than the current analysis. In part, this is accounted for in the assumption that the Messenger project would generate 400 rooms. These potential rooms are now in the City, and not part of the current analysis. In addition, the 2013 analysis assumed 566 hotel and timeshare rooms on the Berger Foundation property, and four additional hotels at interchanges, for a total of approximately 1,366 hotel rooms. The current analysis assumes two new hot els, for a total of 250 rooms. The difference in revenue is substantial: the 2013 analysis resulted in $3.2 million in annual revenues, while the current analysis estimates $1 million in revenues.
• The 2013 analysis assumed a total of $7.8 million in sales tax revenue at build out, while the current analysis estimates a total of $12.8 million. This difference is primarily due to the 2013 analysis assuming a lower total square footage for commercial development than the current analysis, primarily in the Mixe d Use designation. The 2013 analysis also did not assume the continuation of the Transient User Tax, which had a sunset date at the time, and has since been made permanent.
• The 2013 analysis estimated total annual revenues of $24.7 million to the General Fund, and $1.5 million to restricted funds, for a total of $26.2 million. The current analysis estimates $24.7 million in General Fund revenues, and $2.5 million in restricted fund revenues, for a total of $27.9 million. The 2013 analysis included no revenues from cannabis cultivation tax, which generates $15.1 at build out in the current analysis, in addition to the $27.9 million.

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• The 2013 analysis estimated total annual costs of $16.9 million, while the current analysis estimates $49.9 million in costs, in cluding both General Fund and restricted fund costs. Differences are across the board. The 2013 analysis estimated General Government costs to be very limited, and to total $2.7 million (for administration, community development, animal control and elections). Police expenses were estimated at $8.7 million, and Fire expenses at $4.0 million. In addition, $1.5 million was allocated to restricted funds for roadway maintenance.

The current analysis estimates General Government costs at $18.7 million, roadway maintenance at $3.9 million, police expenses at $19.7 million and Fire expenses at $7.6 million, for total annual costs at build out of $49.9 million. The primary difference in the estimates is the difference in build out population. The 2013 analysis assumed a much lower build out population, which would result in a much lower costs. As a result, the 2013 analysis assumed minimal increases in General Government costs, while the current analysis assumes, essentially, the doubling of the City’s current size. The Table below shows the differences in total costs and revenues.

Comparison of Build Out Costs and Revenues
2013 Analysis Current Analysis
General Government Cost $2,716,000 $18,697,307
Public Works/Road Maintenance Costs $1,460,306 $3,872,745 Fire Protection Costs $3,986,400 $7,684,634
Police Protection Costs $8,731,286 $19,671,327
Total $16,893,992 $49,926,013

General Fund Revenues $24,744,721 $40,870,446
Restricted Fund Revenues $1,460,306 $2,497,060
Total $26,205,027 $43,367,506

Difference $9,311,035 [$6,559,006]

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) CONSTRAINTS AND OPPORTUNITIES REPORT CATHEDRAL CITY SPHERE OF INFLUENCE Prepared for: City of Cathedral City 68700 Avenida Lalo Guerrero Cathedral City, CA 92234 Prepared by: Terra Nova Planning & Research, Inc.® 42635 Melanie Place, Suite 101 Palm Desert, CA 92211 November 2018

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Terra Nova/ City of Cathedral City
Sphere of Influence
Constraints and Opportunities Report

2 Cathedral City
Sphere of Influence Constraints and Opportunities

TABLE OF CONTENTS

I. INTRODUCTION ................................................................................................ 4

II. COMMUNITY SETTING ................................................................................... 6 A. Location ...................................................................................................... 6 B. Sphere of Influence Land Uses ................................................................... 6 C. Population Estimates ................................................................................... 6

III. PHYSICAL CHARACTERISTICS AND CONSTRAINTS .......................... 13 A. Physical Characteristics ............................................................................ 13 i. Biological Constraints ....................................................................... 13 ii. Geotechnical Constraints .................................................................. 18 iii. Flooding Constraints ........................................................................ 22

IV. EXISTING AND FUTURE SERVICES ........................................................... 35 A. Administrative Services/General Government ......................................... 35 B. Police Protection ....................................................................................... 35 C. Fire Protection Services ............................................................................ 38 D. Water Services .......................................................................................... 40 E. Wastewater Services ................................................................................. 43 F. Park and Recreation .................................................................................. 48 G. Electricity .................................................................................................. 49 H. Library Services ........................................................................................ 53 I. Solid Waste Collection ............................................................................. 54 J. Street Maintenance .................................................................................... 55 K. Lighting/Landscaping/Street Sweeping .................................................... 60 L. Animal Control ......................................................................................... 61

List of Exhibits
Exhibit 1 Regional Location Map ................................................................................... 9 Exhibit 2 Vicinity Map .................................................................................................. 10 Exhibit 3 Cathedral City – SOI Location Map .............................................................. 11 Exhibit 4 Cathedral City – SOI Boundary Map ............................................................ 12 Exhibit 5 Riverside County Lane Designations for the SOI ......................................... 27 Exhibit 6 Cathedral City Land Use Designations for the SOI ....................................... 28 Exhibit 7 Biological Resources Map ............................................................................. 29 Exhibit 8 Natural Communities Map ............................................................................ 30 Exhibit 9 SOI Lands Inside Conservation Areas ........................................................... 31 Exhibit 10 Earthquake Fault Map .................................................................................... 32 Exhibit 11 Flood Map (Eastern SOI Area) ...................................................................... 33

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Constraints and Opportunities Report

3 Exhibit 12 Flood Map (Western SOI Area) .................................................................... 34 Exhibit 13 Fire Stations Within the Cathedral City/ SOI Area ....................................... 45 Exhibit 14 Water Lines Within the Cathedral City/ SOI Area ........................................ 46 Exhibit 15 Sewer Lines Within the Cathedral City/ SOI Area ........................................ 47 Exhibit 16 SCE and IID Lines Within the Cathedral City/ SOI Area ............................. 52 Exhibit 17 Roads in the Cathedral City/ SOI Area .......................................................... 59

List of Tables
Table 1 Cathedral City SOI Land Use and Build Out Projections ..................................... 7 Table 2 Sphere of Influence Land within the Conservation Areas ................................... 14 Table 3 Total Recent and Projected Water Deliveries in CVWD Service Area by Land Use .............................................................................................................. 41 Table 4 Current Estimated Water Demand ....................................................................... 42 Table 5 Build Out Estimated Water Demand ................................................................... 42 Table 6 CVWD Wastewater Treatment Plants ................................................................. 43 Table 7 Projected Total Wastewater Flows in the CVWD Service Area ......................... 43

List of Appendices
Appendix A Soil map
Appendix B Roads Within the SOI

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Terra Nova/ City of Cathedral City
Sphere of Influence
Constraints and Opportunities Report

4 I. INTRODUCTION

The currently incorporated City limits consist of approximately22.6 square miles. 1 The City of Cathedral City completed amendments to its Sphere of Influence in 2011. The City processed two Sphere of Influence (Sphere or SOI) amendments at that time. SOI Area A is generally vacant and undeveloped, and consists of 4,100 acres of land. SOI Area B consists of approximately 5,200 acres of land which is partially developed. The lands included in the Sphere are within the boundaries of the community of Thousand Palms.

Thousand Palms is an unincorporated community currently under the jurisdiction of the County of Riverside. It consists of over approximately 9,700 acres of land. The 2010 Census reported a population of 7,715 in Thousand Palms, and population was estimated to total 7,875 in 20172. Cathedral City’s Sphere of Influence includes approximately 8,300 acres generally occurring within the Thousand Palms Community of Interest.

The City’s Sphere is north and east of the City and adjacent to the U.S. Interstate10 (I-10) transportation corridor, in areas where urban development is expected to occur and intensify in the future.

This Constraints and Opportunities Report (COR) has been prepared to provide the City with background information on current physical conditions in its Sphere of Influence, and the potential future needs and demands associated with the Sphere’s incorporation into the City’s corporate limits. In tandem with the Fiscal Impact Analysis also being prepared as part of this effort, the documents provide the City’s decision makers a nd staff with an overview of future responsibilities associated with eventual incorporation of the Sphere.

The COR identifies the following:

• Physical constraints within the Sphere of Influence, including environmental features which could impact development potential. These include biological, geotechnical and flooding constraints.
• Public facilities and service providers that will be responsible for various facilities to serve the Sphere of Influence;
• Whether these services are currently available in the Sphere of Influence; • Where applicable, extension of services has been considered, and costs that may be associated with the provision of service;
• Existing conditions of the roads in the Sphere of Influence; and • Cost associated with the construction of new roads and maintenance of all roads upon incorporation and at buildout.

2 Data USA Website; https://datausa.io/profile/geo/thousand-palms-ca/. Accessed July 2018.

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Sphere of Influence
Constraints and Opportunities Report

5 The County currently provides general government and public safety services to the Sphere. Should the Sphere be annexed to the City, the City would assume those responsibilities. In addition, regardless of the governmental jurisdiction in which it is located, the Sphere will be provided services by the following providers:

1. Sanitary Sewer: Coachella Valley Water District (CVWD)

2. Water: Coachella Valley Water District (CVWD)

3. Electricity: Imperial Irrigation District (IID) and Southern California Edison (SCE)

4. Gas: Southern California Gas Company

5. Storm Drain: Coachella Valley Water District (CVWD)

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Terra Nova/ City of Cathedral City
Sphere of Influence
Constraints and Opportunities Report

6 II. COMMUNITY SETTING

A. Location

The Sphere is composed of approximately 8,300± acres of land located within the unincorporated Thousand Palms community, Riverside County, California (Exhibit 1, 2, and 3). The Sphere is generally bounded on the north by Coachella Valley Multiple Species Habitat Conservation Areas and unincorporated Thousand Palms, on the south by I-10, on the west by the City of Cathedral City, and on the east by unincorporated Thousand Palms, City of Palm Desert SOI, and Indio SOI. The location of the Sphere is shown on Exhibits 1 and 2. Exhibit 3 and 4 show the boundaries of the City’s existing SOI.

B. Sphere of Influence Land Uses

Exhibit 5 shows the County’s current General Plan land use designations for the area, and Exhibit 6 shows the City’s proposed General Plan land use for the Sphere upon incorporation. Table 1 shows the Sphere land use buildout projections based on Cathedral City’s General Plan land use designations.

As shown in the Table 1, approximately 5,556.68 ± acres of land are undeveloped and vacant in the Sphere, whereas approximately 1,870.10± acres of land are developed as residential, commercial, and industrial uses. In the Sphere, approximately 649.67± acres of land are owned by the Agua Caliente Band of Cahuilla Indians , which are currently undeveloped and vacant and designated for industrial land uses.

C. Population Estimates

Currently, the estimated population of the Sphere is 7,875. It is estimated that at build out the estimated population will be 61,504505. This estimated build out population is based on the current population plus an additional 53,629 new residents occupying the additional 17,244 new residential dwelling units anticipated at build out.

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Terra Nova/ City of Cathedral City
Sphere of Influence
Constraints and Opportunities Report

7 Table 1
Cathedral City SOI Land Use and Build Out Projections
Land Use Category1 ROW
Acres Acres Total
Acres Vacant
% of
Total
Lands
Developed
% of
Total
Lands
Total
Acres
% of
Total
Acres
Existing
SF/Units
Potential
SF/Units
Build out
SF/Units
Build out
Population
Residential
High Density Residential (RH)
(11-20 du/ac) 7.1 199.9 207.0 140.7 70.4% 59.3 29.7% 199.9 3% 131 2,110 2,241 Medium Density Residential (RM)
(4.5-10 du/ac) 8.6 210.6 219.2 128.7 61.1% 82.0 38.9% 210.6 3% 3,233 965 4,198 Low Density Residential (LR) (2-

4.5 du/ac) 441.5 1,034.0 1,475.5 538.8 52.1% 495.1 47.9% 1,034.0 14% 3,189 1,819 5,008 Estate Residential (RE) (0-2 du/ac) 74.2 1,062.1 1,136.3 751.4 70.8% 310.7 29.3% 1,062.1 14% 621 1,503 2,124 Total Residential Acreage 531.4 2,506.6 3,037.9 1,559.5 62.2% 947.0 37.8% 2,506.6 33% 7,174 6,396 13,570 27,767 Commercial
General Commercial (CG) 28.1 97.1 125.2 63.7 65.6% 33.4 34.4% 97.1 1% 609,971 609,971 Resort Residential (3-6.5du/ac) - 15.8 15.8 - 0.0% 15.8 100.0% 15.8 0% - - Total Commercial Acreage 28.1 112.9 141.0 63.7 56.4% 49.3 43.6% 112.9 2% 299,763 609,971 909,734 Mixed Use
Mixed Use - Urban (Residential
Units) 53.0 660.0 712.9 283.6 71.6% 112.4 28.4% 396.0 N/A - 10,848 10,848 33,738 Mixed Use - Urban (Commercial
Square Footage) 53.0 660.0 712.9 189.1 71.6% 74.9 28.4% 264.0 N/A 82,156 1,811,896 1,894,052 Total Mixed Use Acreage 53.0 660.0 712.9 472.7 80.8% 187.3 19.2% 660.0 8% - - - Industrial
Industrial (I) 44.2 1,733.3 1,777.5 1,360.1 78.5% 373.2 21.5% 1,733.3 23% 20,144,069 20,144,069 Business Park (BP) 8.8 75.8 84.6 73.8 97.3% 2.0 2.7% 75.8 1% 1,092,267 1,092,267

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8 Table 1
Cathedral City SOI Land Use and Build Out Projections
Land Use Category1 ROW
Acres Acres Total
Acres Vacant
% of
Total
Lands
Developed
% of
Total
Lands
Total
Acres
% of
Total
Acres
Existing
SF/Units
Potential
SF/Units
Build out
SF/Units
Build out
Population
Total Industrial Acreage 53.0 1,809.1 1,862.1 1,433.9 79.3% 375.2 20.7% 1,809.1 24% 1,431,431 21,236,336 22,667,767 Open Space
Open Space - Other (OS-O) - - - - 0.0% - 0.0% - 0% N/A N/A N/A Open Space - Public (OS-P) 3.8 2,014.7 2,018.5 2,014.7 100.0% - 0.0% 2,014.7 27% N/A N/A N/A Hillside Reserve (1 du/20 ac) 1.9 398.5 400.4 12.3 3.1% 386.2 96.9% 398.5 5% 0 1 1 Total Open Space Acreage 5.7 2,413.1 2,418.8 2,026.9 84.0% 386.2 16.0% 2,413.1 32% N/A 1 1 ROW
Total ROW Acreage 128.1 0.0 128.1 N/A N/A N/A N/A N/A N/A N/A N/A N/A Totals 799.2 7,501.7 8,300.9 5,556.7 74.1% 1,870.1 24.9% 7,426.8 100% - - - 61,5042 1 Existing residential units based on Riverside County Assessor's data. Existing square footage based on GIS analysis of aerial photographs - represents total square footage estimates of buildings within commercial, mixed use and industrial zones. Future conditions of mixed use, commercial, and industrial land uses are calcula ted using the following assumptions: mixed use residential development is assumed to occur at 75% of the maximum density permitted and 22% lot coverage for mixed use developing as commercial; 22% lot coverage for commercial zones, and 34% lot coverage for industrial zones. Future population calculated based on existing City household size of 3.11 persons. 2 This total is based on existing population 7,875 persons plus the projected population of (24,418 X 3.11 = 53,629)

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13 III. PHYSICAL CHARACTERISTICS AND CONSTRAINTS

A. Physical Characteristics

The Sphere is irregular in shape and is accessed from I-10, Varner Road, Rio Del Sol Road, Ramon Road, Monterey Avenue, Cook Street, Shadow Valley Drive, and Avenue 38.

The topography of most of Sphere is relatively flat. The Sphere includes approximatel y 1,500 acres of Edom Hill, whose elevation ranges from approximately 400 feet to 1,565 feet above mean sea level.

This section defines existing conditions in the vicinity of the Sphere. This section also provides essential information on the physical, environmental and regulatory constraints and opportunities of the undeveloped portions within the Sphere which would affect future land use decisions.

i. Biological Constraints

Environmental Setting
The Sphere is located in the Colorado Desert, a subdivision of the Sonoran Desert where the average annual rainfall is approximately five inches. Most precipitation falls during winter and spring with occasional summer thundershowers that account for approximately one-fourth of the annual total rainfall. Winter days are mild, averaging 70 degrees Fahrenheit. Winter nights occasionally drop to near freezing. The month of July brings the hottest temperatures with daytime highs averaging 109 degrees Fahrenheit.

The Sphere area is surrounded by relatively u ndisturbed desert mountain and canyon habitat in the north and northeast. The Edom Hill Conservation and Thousand Palms Conservation areas constitute the north boundary of the Sphere area.

Edom Hill constitutes the northwestern portion of the Sphere which gently slopes from the north to the south (Exhibit 4). Desert wash habitat consisting of channels and watercourses that drain the mountains from north of Edom Hill, the Indio Hills and San Bernardino Mountain occurs along the northern boundary of the Sphere. As washes emerge from canyon mouths, they form deep channels that cut through the alluvial plain. Farther from the canyons, washes become shallower, broader and less defined, and the physical differences between the washes and the alluvial plain diminish. There are no naturally occurring springs or permanent aquatic habitats within the Sphere.

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14 Coachella Valley Multiple Species Habitat Conservation Plan (CVMSHCP) The CVMSHCP was established to conserve and preserve habitat and species of concern in the Coachella Valley. The City is a party to the Plan, and participates in its implementation. The Plan established Conservation Areas, where lands are to be preserved and development restricted. In exchange for the preservation of these Conservation Areas, the Plan allows development outside the Conservation Areas to be unrestricted as it applies to covered species and habitats with the payment of a development fee. The development fee is used to purchase land within Conservation Areas throughout the Plan. The Sphere includes lands within both the Thousand Palms and Edom Hill Conservation Areas. Exhibit 7, 8, and 9 shows the SOI area overlain on the Edom Hill Conservation Area, Thousand Palms Conservation Area, and Natural Communities for Covered Species.

Approximately 1,369 acres of the Sphere is located within the Thousand Palms Conservation Area, whereas approximately 911 acres is located in the Edom Hill Conservation Area. Table 2 shows the Cathedral City Land Use designation s for lands within the conservation areas.

Table 2
Sphere of Influence Land within the Conservation Areas
Conservation
Area Acres Cathedral City Land Use
Designation
Current
Condition

CVMSHCP
Development
Restrictions
Edom Hill
Conservation
Area
911 Hillside Reserve (1 du/20 ac) Undeveloped
Applicable (only
10% of land is
buildable)
Thousand Palms Conservation Area
892 Hillside reserve (1 du/20 ac) Undeveloped
393 Estate Residential (0-2 du/ac) Partially
developed Applicable (only
10% of land is
buildable) 68 Low density res (2-4.5 du/ac) Undeveloped 15 Light Industrial Undeveloped
Total 1,369
Total (both
conservation
areas)
2,280

As shown in the table above, of the 1,369 acres in the Thousand Palms Conservation Area, approximately 892 acres is designated as Hillside Reserve under the City’s proposed General Plan land use designations for the area. The land in the Edom Hill Conservation Area (911 acres) is all designated as Hillside Reserve. 393 acres of these lands are designated for Estate Residential, allowing up to 2 units per acre. Even with the restrictions imposed by the Conservation Area requirements, these lands would still be expected to develop at the prescribed density. Limitations would be likely for the 68 acres of Low Density Residential and the 15 acres of Light Industrial lands in these areas. However, these limitations would not significantly impact the buildout of the Sphere as a whole.

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15 Thousand Palms Conservation Area
The Thousand Palms Conservation Area contains a total of approximately 25,890 acres which includes the Coachella Valley fringe-toed lizard (CVFTL) Preserve and the sand source/transport area to the west of it, emanating from the Indio Hills.3 This area includes all of the sand source/transport Essential Ecological Process area that has not been blocked by existing development.

This Conservation Area provides Core Habitat for the Coachella Valley milkvetch, Coachella Valley giant sand-treader cricket, Coachella Valley fringe-toed lizard, flat-tailed horned lizard, Coachella Valley round -tailed ground squirrel, and Palm Springs pocket mouse. This area contains Mecca aster Core Habitat, which in conjunction with contiguous habitat in the Indio Hills Palms Conservation Area is presumed to be suitable for a self - sustaining population. The Conservation Area’s goals include:

• In total, 8,040 additional acres of the Thousand Palms Conservation Area shall be conserved. This includes:
a) Conserve at least 985 acres of Core Habitat for the Coachella Valley milkvetch; b) Conserve at least 2,676 acres of Core Habitat for the Mecca aster; c) Conserve at least 819 acres of Core Habitat for the Coachella Valley giant sand- treader cricket;
d) Conserve at least 819 acres of Core Habitat for the Coachella Valley fringe- toed lizard;
e) Conserve at least 861 acres of Core Habitat for the flat-tailed horned lizard; Conserve individual flat-tailed horned lizards as described in Section 4.4 avoidance, minimization, and mitigation measures;
f) Conserve at least 2,935 acres of Core Habitat for the Coachella Vall ey round- tailed ground squirrel;
g) Conserve at least 3,533 acres of Core Habitat for the Palm Springs pocket mouse;
h) Conserve at least 3,712 acres of the sand source area to maintain the natural erosion processes that provide sediment for the blowsand ecosystem. This also maintains Linkages for wildlife to the Edom Hill Conservation Area; i) Conserve at least 4,086 acres in the fluvial and aeolian sand transport area to maintain the sand transport system. Maintain the current capacity for fluvial sand transport in the washes emanating from the Indio Hills that provide sand for the Thousand Palms Conservation Area. This also maintains Linkages for wildlife to the Edom Hill Conservation Area;
j) Conserve at least 3,826 acres of Other Conserved Habitat for Le Conte s thrasher;
k) Conserve at least 34 acres of the desert dry wash woodland natural community; l) Conserve at least 14 acres of active desert dunes and at least 805 acres of active desert sand;

3 Coachella Valley Multiple Species Habitat Conservation Plan (MSHCP) and Natural Community Conservation Plan.

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16 m) Maintain the hydrologic groundwater regime necessary to maintain the pupfish refugium and the mesquite hummocks, Sonoran cottonwood -willow riparian woodland, desert dry wash woodland, and desert fan palm oasis woodland natural communities in this Conservation Area;
n) Maintain the ability of wildlife to cross Ramon Road, Washington Street, and Thousand Palms Canyon Road by providing undercrossings for Coachella Valley fringe-toed lizard, flat-tailed horned lizard, Coachella Valley round - tailed ground squirrel, and Palm Springs pocket mouse if these roads are widened. These undercrossings should also provide for seed dispersal.

Edom Hill Conservation Area
The Edom Hill Conservation Area is located immediately north and west of the City. It is an important preserve for the Coachella Valley Fringe-toed Lizard and other sensitive species. Its unique mix of habitats is dependent on a high groundwater table directed toward the surface by diking associated with the San Andreas Fault. This conservation area is comprised of shifting sand dunes, mesquite thickets, palm oases, and sand fields. Exhibit 7 and 8, Habitat Management Areas, shows the location of the Edom Hill Conservation Area.

The CVMSHCP conservation goals for this conservation area include:

a) Conserve at least 1,283 acres of Sonoran creosote bush scrub; b) Conserve at least 1,852 acres of mixed woody and succulent scrub; c) Approximately 69 acres of active desert sand fields shall be conserved; d) Conserve at least 28 acres of stabilized and partially stabilized desert sand fields ; and
e) Conserve at least 25 acres of Mecca Aster Habitat.

Development Restrictions in Conservation Areas
The CVMSHCP does not preclude development entirely within any conservation area.

Instead, CVMSHCP allows a certain limited amount of development (known as “Take” in the context of the CVMSHCP) within conservation areas; such take is measured by the acres of each habitat of each species protected by the CVMSHCP. Therefore, future development within the Edom Hill an d Thousand Palms Conservation Areas will be assessed Take for each species by mapping the undeveloped area against the CVMSHCP mapping of each covered species’ habitat. Such Take Authorizations will be accumulated for all undeveloped area within conservation areas and once the total amount of Take allowed for a species within each conservation area will have been granted, no more Take would be authorized unless the CVMSHCP is amended.

CVMSHCP does limit the development to up to 10% of any parcel, with a mandatory dedication of the balance of the parcel to conservation. Future developments within both Edom Hill and Thousand Palms Conservation Areas will be subject to Coachella Valley Conservation Commission (CVCC) Joint Project Review to allow a detailed analysis of the impacts of a project, and whether the project will impact the conservation goals for a Conservation Area.

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17 Development Outside Conservation Areas
The 6,020 acres of SOI land which are not included in any conservation areas will not be subject to CVMSHCP development restrictions , but will be required to pay the development fee at the time projects are constructed. However, small portions of the SOI’s northern area, adjacent to either the Edom Hill and Thousand Palms Conservation Areas will be subject to the CVMSHCP’s Land Use Adjacency Guidelines in addition to the payment of the development fee in effect at the time development occurs.

The Land Use Adjacency Guidelines provide specific direction to minimize “edge effects” on Conservation Areas. They include:

• Drainage: Development adjacent to a Conservation Area must ensure that the quantity and quality of runoff discharged to the adjacent Conservation Area is not altered in an adverse way when compared with existing conditions. Stormwater systems must be designed to prevent the release of toxins, chemicals, petroleum products, exotic plant materials or other elements that might degrade or harm biological resources or ecosystem processes within the adjacent Conservation Area. • Toxics: Projects adjacent to a Conservation Area that use chemicals or generate bio- products such as manure that are potentially toxic or may adversely affect wildlife and plant species, habitat, or water quality must incorporate measures to ensure that application of such chemicals does not result in any discharge to the adjacent Conservation Area.
• Lighting: Lighting must be shielded and directed toward the project area.

Landscape shielding or other appropriate methods must be incorporated in project designs to minimize the effects of lighting adjac ent to the adjacent Conservation Area.
• Landscaping/Invasives: A specific list of invasive, non-native plant species is prohibited from project landscaping adjacent to a Conservation Area. Landscape treatments adjacent to a Conservation Area must incorporate native plant materials to the maximum extent feasible. Table 4 -112 of the Plan provides a list of recommended native species, and Table 4-113 provides a list of prohibited plants.

It is important to note that a number of plants commonly used in Valley landscaping plans are included in the prohibited plant list.

Summary of Biological Constraints Associated with the CVMSHCP As discussed above, approximately 2,280 acres of SOI land is located within the Thousand Palms Area and Edom Hill Conservation Areas, where development is limited to up to 10% on each parcel. Approximately 6,020 acres of the SOI area are outside the conservation areas. Areas adjacent to conservation areas will be subject to CVMSHCP Land Use Adjacency Guidelines to minimize “edge effects” on Conservation Areas.

Jurisdictional Waters/ Wetlands
Several small surface drainages south of Edom Hill and the Indio Hills foothills drain towards the SOI area during flood events (Exhibit 11 and 12). Three unnamed small surface drainages on Edom Hill lie within the SOI boundaries, and may be subject to California

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18 Department of Fish and Wildlife (CDFW), United States Army Corps of Engineers (USACE) and/or Colorado Regional Water Quality Control Board (RWQCB) requirements under the Clean Water Act. Upon incorporation, these lands would be designated as Hillside Reserve which allows development of 1 dwelling unit per 20 acres.

Therefore, impacts to jurisdictional waters or wetlands would be expected to be minimal.

Summary of Constraints and Opportunities:

• Approximately 6,020 acres of the Sphere are outside Conservation Areas, and are fully developable from a biological resource perspective. Adherence to CVMSHCP adjacency guidelines and payment of mitigation fees will be required, but should not pose a significant constraint.
• Small surface drainages on Edom Hill may be subject to the requirements of the California Department of Fish and Wildlife, US Army Corps of Engineers, and the RWQCB. Mitigation is routinely accomplished through payment of fees to in -lieu funds, or purchase of credits in a Corps of Engineers, CDFW, or RWQCB approved mitigation bank.
• Approximately 2,280 acres of Sphere land is located within the Thousand Palms and Edom Hill Conservation Areas, where development is limited to up to 10% on each parcel.
• Development on lands within conservation areas will be subject to the Joint Project Review process to determine consistency with the CVMSHCP for each individual project.

ii. Geotechnical Constraints

Environmental Setting
The Coachella Valley is located in the northwestern portion of the Salton Trough, a tectonic depression roughly 130 miles long and 70 miles wide that extends from the San Gorgonio Pass to the Gulf of Mexico. The valley is bounded by the San Bernardino Mountains on the northwest, San Jacinto Mountains on the west, Santa Rosa Mountains on the south, and Little San Bernardino Mountains and Indio Hills on the north. The Salton Sea is located to the southeast.

The valley’s geologic composition is directly related to its proximity to the San An dreas Fault, which passes through the northeasterly portion of the valley, and other active faults.

The region is susceptible to a range of geologic hazards, including ground rupture, major ground shaking, slope instability, and collapsible and expansive soils.

Episodic flooding of major regional drainages, including several major drainages north of the SOI area, results in the flooding and deposition of sand and gravel on the valley floor.

Strong sustained winds emanating from the San Gorgonio Pass cause wind erosion and transport and deposit dry, finely granulated, sandy soils on the central valley floor.

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19 Regional soils range from rocky outcrops within the mountains bordering the valley to coarse gravels of mountain canyons and recently laid fine - and medium-grained alluvial (stream deposited) and aeolian (wind deposited) sediments on the central valley floor.

Seismic Hazards
The California Geological Survey (CGS) establishes regulatory zones around Alquist- Priolo Earthquake Fault Zones. These zon es, which extend from 200 to 500 feet on each side of the known fault, identify areas where a potential surface fault rupture could prove hazardous for buildings used for human occupancy.

Development projects located within an Alquist-Priolo Earthquake Fault Zone (A-P Zone) are required to prepare special geotechnical studies to characterize hazards from any potential surface ruptures.

The San Andreas Fault is one of the most active geologic structures in this region. The most recent surface-rupturing earthquake on the Coachella segment of the San Andreas Fault likely occurred in the late 1600’s. According to the Earthquake Fault Zone maps for the Cathedral City and Myoma Quadrangles by the California Geological Survey (CGS, 1974), a small portion of the Sphere of Influence lies within an Alquist-Priolo Earthquake Fault Zone (Coachella segment of the San Andreas Fault) and County Fault Zone (Garnet Hill Fault) (Exhibit 10).

Approximately 483 acres of land is located within the Alquist-Priolo Earthquake Fault Zone and County Fault Zone. These lands are designated as Open Space – Rural, Light Industrial, and Business Park in the County’s General Plan Land Use Map (Exhibit 9 and 10). Upon incorporation, approximately 211 acres of land located within the Alquist-Priolo Earthquake Fault Zone will be designated as Estate Residential, and approximately 272 acres of land located within the County Fault Zone will be designated as Industrial (Exhibit 9 and 10).

Based on the U.S. Geological Survey (USGS) Seismicity Map, the Coachella segment of the San Andreas Fault and Garnet Hill Fault have the potential to cause moderate to extreme ground shaking and significant ground acceleration in the SOI area. 4 Seismic
activity of this magnitude has the potential to result in direct damage to structures, property, and infrastructure, and/or generate indirect hazards such as slope instability, liquefac tion, settlement, and landslides, and can cause a variety of localized hazards such as urban fires, dam failures, and toxic chemical releases.

Damage to infrastructure and utility systems could exacerbate post-earthquake conditions.

There are several natural gas pipelines, SCE electricity transmission towers and IID power poles within the SOI area that could fail during an earthquake (Exhibit 19), which would impede traffic and restrict access to and from the site by emergency response teams. In

4 Forecast for Ground Shaking Intensity from Natural and Induced Earthquakes in 2017.

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20 addition, disruption to utilities, such as telephone, gas, energy, and water, could substantially affect efforts to alleviate damage and provide support, including fire suppression, and access to heating and cooling, and potable water.

Approximately 5,557 acres of land are undeveloped in the Sphere area which would be developed as residential, commercial, and industrial uses. All new buildings within the undeveloped area of the Sphere will be required to utilize reinforced masonry, as well as comply with the State’s Uniform Building Code (UBC), which is expected to enable structures to resist major earthquakes without collapsing, although structural damage could occur. In order to limit impacts associated with surface ruptures within Alquist-Priolo Earthquake Fault and County Fault zones, the City of Cathedral City is mandated by law to require that geological investigations, including but not limited to fault trenching, be performed if development is proposed in proximity to these zones.

Soil
Based on the National Cooperative Soil Survey, the SOI area predominantly consists of sand in the Carrizo, Chuckawalla, Coachella, and Gilman associations. These soils range from fine sands to gravel and cobbles, depending on the area and soil association (Appendix A).

Soil Erosion/Loss of Top-Soil
The Sphere of Influence lies within a recognized blow sand hazard area. Fine particulate matter can create an air quality hazard if dust is blowing. The CVMSHCP identifies the majority of the SOI as either a sand source or sand transport area (Exhibit 7 and 8). Soil erosion as a result of sand transport from the Edom Hill Conservation Area and Thousand Palms Conservation Area to the north could be severe, and would occur in perpetuity, since these lands are protected through the CVMSHCP. Wind erosion could damage structures built in the SOI area, and cause build-ups of sand, particularly on the northern boundary of the SOI area.

Settlement
The soil in the SOI area predominantly consists of sands that have a moderate potential to settle in the event of seismic shaking. Specifically, dry sands may settle and compact when they are subjected to strong earthquakes. Therefore, additional structures constructed in the SOI area could be adversely impacted by differential soil settlement during a seismic event.

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21 Liquefaction
According to GEOTRACKER GAMA, currently, there is only one active well (Well ID 04S06E18R001S) within the SOI boundaries, located south of Arbol Real Avenue and La Canada Way.5 The water depth is reported below 190 feet for that well. Because the depth of groundwater beneath the SOI is greater than 50 feet, the potential for liquefaction in the SOI area is considered negligible.

Conversely, the SOI area lies within the Riverside County designated “moderate susceptibility” liquefaction hazard zone for intermediate historic high groundwater conditions (50 to 100 feet depth). As discussed above, soils on the project site are sandy, and under saturated conditions may be susceptible to liquefaction. Landscape irrigation may result in shallow saturated sandy soils that may be adversely impacted by liquefaction.

Landsliding
The topography of most of Sphere of Influence is relatively flat, however, it includes approximately 1,500 acres of Edom Hill whose elevation ranges from approximately 400 feet to 1,565 feet above mean sea level.

Edom Hill constitutes the northwestern portion of the SOI area which is generally undeveloped and would be designated as Hillside Reserve and Industrial upon incorporation. In these areas, there is a high to moderate risk for rockfalls and landslides.

Expansive Soils
Expansive soils are typically associated with fine -grained clayey soils that have the potential to shrink and swell with repeated cycles of wetting and drying. As discussed above, the site is predominantly sand which is not considered expansive soil, and no expansive soils are present near the surface.

Summary of Constraints and Opportunities

• The Sphere of Influence does not have a potential for liquefaction or expansive soils.
• Groundwater levels are deep enough to accommodate most types of construction, including pilings.
• Buildings proposed within the Sphere of Influence will be required to be constructed in accordance with the most recent edition of the California Building Code (CBC) and Cathedral City Municipal Code Section 8.02.010 to provide collapse-resistant design.
6 These standards are expected to preclude collapse, but could result in significant structural damage.

5 GeoTracker GAMA (Groundwater Ambient Monitoring and Assessment Program) Online Database by State Water Resources Control Board; Accessed August 2018. 6 Cathedral City Municipal Code Section 8.02.010 - California codes adopted without amendment.

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22 • About 50 undeveloped parcels totalling 483 acres lie within the Alquist-Priolo Earthquake Fault Zone and County Earthquake Fault Zone. 7 Any development proposed on these parcels will require site-specific investigation, including trenching, and recommendations on construction and setbacks during project design.
• As two known earthquake faults transect portions of the Sphere of Influence, significant impacts to structures would occur if an earthquake occurred. • The soils in the area are predominantly dry sand which may settle and compact when subjected to strong earthquake shaking. Therefore, structures constructed on undeveloped portions of the Sphere of Influence could be adversely impacted by differential soil settlement during a seismic event, and will require remedial measures during site grading.

iii. Flooding Constraints

Environmental Setting
Regional drainage and flood control in the Sphere of Influence is managed primarily by the Coachella Valley Water District (CVWD). The majority of the SOI area is located in a FEMA flood zone (Exhibit 11 and 12). Since the SOI area is currently under Riverside County jurisdiction, the lands that are already developed are built accordingly to Riverside County’s standards. Approximately 5,556.68 acres of land is still undeveloped which would be developed accordingly to City’s standards upon incorporation.

Flood Control/Drainage
Potential flooding problems in the Sphere are related to storm flooding on the alluvial fans and to runoff associated with the foothills of Edom Hill, the Indio Hills, and Little San Bernardino Mountains. Exhibit 11 and 12 show the Federal Emergency Management Agency (FEMA) mapped 100-year and 500-year flood hazard areas within the Sphere.

The Coachella Valley area has experienced numerous flooding events during the historical period. Significant flood events in the valley have accompanied general winter storms, general summer storms, and localized thunderstorms. Hydraulic models generated for the North Cathedral City and Thousand Palms area by Northwest Hydraulic Consultants in 2013 show flood hazards with peak flows from 360 cubic feet per second (cfs) to 28,900 cfs for the Sphere of Influence.
8 Under current conditions, development which would occur

7 Parcels within the Alquist-Priolo Earthquake Fault Zone: 659-260-009, 659-260-023, 659-200-002, 659- 260-027, 659-200-001, 659-260-004, 659-260-005, 659-260-003, 659-260-008, 659-260-010, 659-260- 014, 649-440-010, 647-220-008, 659-260-015, 647-440-011, 647-440-007, 647-440-008, 647-440-009, 647-440-003, 648-040-002, 647-220-003, 647-440-002. Parcels within the Riverside County Earthquake Fault Zone: 670-040-009, 670-090-005, 670-070-009, 670-070-009, 670-070-003,648-110-012, 648-030- 016, 648-030-018, 648-030-021, 648-030-003, 648-030-002, 648-030-007, 648-030-012, 648-030-010, 648-030-011, 648-030-019, 648-030-004, 648-030-020, 648-030-05, 648-11-0006, 648-10-001, 648-110- 001, 648-110-018, 648-110-007, 648-110-009, 648-110-017, 648-130-001, 648-030-015. 8 North Cathedral City and Thousand Palms Stormwater Management Plan - Morongo Wash Watershed Hydrology and Hydraulics, prepared by Northwest Hydraulic Consultants in 2013.

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23 within the flood zones of the Sphere would be restricted by the limitations imposed by these zones, which include elevated foundations and may include individual project or parcel flood protection.

According to the CVWD, the Thousand Palms area does not currently have flood protection, although the District is working with federal agencies to expand flood protection to this area.
9 CVWD is working with the U.S. Army Corps of Engineers (USACE) on constructing a series of flood control structures (e.g. levees, channels, culverts, and a sediment basin ) in the northern and eastern margins of the comm unity of Thousand Palms to divert the flows as shown below.10

9 CVWD Website - Stormwater Protection & Flood Control. 10 Thousand Palms Flood Control Project Environmental Impact Report / Environmental Impact Statemen Notice of Preparation & Notice of Intent (2016).

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24 CVWD is planning to build four (4) levees (Reach 1, 2, 3, and 4) in the northern and eastern margins of the community of Thousand Palms:

Reach 1 (Levee 1): This levee will comprise of an approximately 12,700-foot-long (2.4- mile) levee (Levee 1) whose height would vary from about 5 to 14 feet depending on topography and ground slope. This levee would initiate roughly 0.1 mile east of the intersection of Vista Chino (Avenue 28) and Rio del Sol, on the south side of Vista Chino, and extend in an east-southeasterly direction. The levee would generally run parallel and north of Southern California Edison’s utility corridor and would cross over Sierra del Sol, Desert Moon Drive, and Via Las Palmas. Culverts and road crossings of the levee would be constructed at Desert Moon Drive and Via Las Palmas. Water and sediment which flows from the Indio Hills would flow naturally toward Reach 1 and be diverted to the 550-acre floodway located along the levees and in the active wind corri dor between Reach 1 and Reach 3. A sediment basin would be installed at the downstream end of this levee in order to trap sediment, slow the velocity of stormwater flow across the Preserve, and avoid adverse effects associated with erosion or channel migration.

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25 Reach 2 (Levee 2): This levee will comprise of an approximately 1,700-foot-long (0.32- mile) levee with a height of approximately 5 feet. This levee is aligned in the direction of the prevailing wind to avoid interference with aeolian transport in this area. It will be positioned in the mid- alluvial fan area just northeast of an existing electrical substation, to further protect the substation, protect adjacent development, and facilitate the diversion of water in a southeasterly direction. This levee 2 would capture large storm events from Levee 1 and direct flow towards south to levee 3.

Reach 3 (Levee 3): This levee will comprise of an approximately 6,500-foot-long (1.2- mile) levee, a minimum 12-foot-wide access road on top of the levee, an unpaved embankment access road on the downstream (west side) of the levee, and an approximately 5,300-foot-long (1.0-mile) incised (cut) channel. Levee 3 would vary in height from about 5 feet to 14 feet, depending upon topography and ground slope. Levee 3 would initiate approximately 2,000 feet southwest of the downstream end of Levee 2, roughly 1,000 feet south of east Ramon Road. The Channel would be lined with soil cement and would divert flows from Levee 3 towards the Classic Club Golf Course. The Classic Club Golf Course is equipped with an existing stormwater conveyance system that is sufficient to transport storm flows diverted by the levees through the golf course.

Reach 4 (Levee 4): This levee will comprise of an approximately 10,300-foot-long (2.0- mile) incised trapezoidal channel ( Reach 4 Channel) which would convey stormwater flows from the southeast end of the Classic Club Golf Course and continue south then east, adjacent to the south of the existing alignment of Avenue 38. The Channel would terminate at Washington Street, with construction of a conveyance system to direct stormwater flows under Washington Street and into existing stormwater conveyance facilities in the Del Webb / Sun City development.

The flooding hazards would be reduced significantly once these flood control structures are built.

Regardless of incorporation of the Sphere into the City, developments proposed in the future will be required to contain on- and off-site storm flows. Under existing conditions, small unnamed surface drainages flow downhill during storm events without any interruption as they are not channelized. During storm events, flows may flow south then divert to the east direction due to existing topography and physical barriers. Historically, the flows from the adjacent mountains were conveyed to the alluvial plains either by sheet flow or by dissected alluvial channel transport. The construction of the railroad embankment and I-10 to the south interrupted and altered historic flows, which were diverted in a more west to east direction.

Surface Water
Primary surface waterways in the Coachella valley include the Whitewater River and several streams, including Snow Creek, Falls Creek, and Chino Creek, as well as a number of smaller creeks and washes. The majority of local surface water in the vicinity of SOI is

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26 derived from runoff from the Edom Hill, Indio Hills, and San Bernardino Mountains. This runoff either percolates in the streambeds or is captured in mountain -front debris basins where it recharges the groundwater basin.11

Stormwater Impacts
The majority of lands (approximately 74%) in the Sphere of Influence are currently undeveloped. Development of these lands will result in substantial increases in the amounts of impermeable surface and landscape areas, which would increase urban runoff. Urban runoff tends to include substances used in landscaping, such as fertilizer and pesticides associated with maintenance, and other pollutants such as oils from roads. High concentrations of these urban pollutants could occur, particularly in the first -flush storm runoff after a period of no rain, so development on the SOI potentially could adversely impact water quality in watercourses receiving runoff.

Construction activities within the Sphere of Influence may result in adverse water quality impacts to receiving waters as a result on the increased potential for erosion and transport of sediment to surrounding drainages until the regional flood control structures are in place.

Summary of Constraints and Opportunities

• Until the planned regional flood control infrastructure is in place, the majority of the Sphere of Influence is located within the 100-year and 500-year flood hazard areas.
• Upon incorporation, development in the annexed area will be required to meet all Cathedral City’s standards for storm flow retention and for the protection of surface waters under the City’s NPDES requirements.
• Regardless of incorporation, development in the SOI area located within the Thousand Palms Conservation Area are significantly limited by the CVMSHCP development restrictions and may not divert or redirect storm flows, in order to preserve natural processes.

11 Coachella Valley Water Management Plan Update – Final Report – 2012.

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35 IV. EXISTING AND FUTURE SERVICES

A. Administrative Services/General Government

The Sphere of Influence is currently under the jurisdiction of Riverside County. General government services include the County Supervisor’s office, Clerk of the Board of Supervisors, County Administrative Offices, and County Counsel. The Board of Supervisors is the governing body of the County government and Board-governed special districts.

County administrative offices establish and administer policy, manage various County departments, and coordinate the County budget. The County Counsel’s office oversees all legal aspects of County government.

Currently, the Sphere of Influence is administered by Riverside County’s Planning Department, Building and Safety Department, Transportation Department, Code Enforcement Department, and Department of Animal Services. Upon incorporation, administration of the Sphere of Influence would transfer to equivalent departments within the City, as described below.

B. Police Protection

Current Service Provider
The Riverside County Sheriff’s Department (RCSD) currently provides police protection to the incorporated community of Thousand Palms , including the Sphere of Influence, through the Palm Desert Police Station located at 73705 Gerald Ford Drive.

The current officer to population ratio for the Thousand Palms area is less than one deputy for every 1,000 residents with 35 patrol hours per day. The current average response time by priority is as follows:

Priority 1
* calls < 5 minutes
Priority 2 calls < 19 minutes
Priority 3 calls < 35 minutes

The community does not have a dedicated specialized team i.e. Special Enforcement Team (SET), but is serviced by various teams associated with the Sheriff’s Department such as the Gang Task Force and Narcotics Task Force.
12 12 Provided by Lieutenant Robert Castro at Riverside County Sheriff’s Department, August 2018.

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36 Cathedral City Service Provider
Upon incorporation, police services will be provided by the Cathedral City Police Department. The Cathedral City Police Station is located at 68-700 Avenida Lalo Guerrero.

Its staff includes 52 sworn officers, 35 non-sworn officers/support and administrative personnel, and 8 reserve officers. Reserve officers are required to serve a minimum of 24 hours per month and are usually assigned as the second officer in a patrol car, although they may also transport prisoners or perform other assigned duties. Police vehicles include 38 marked and approximately 22 unmarked cars.13

The specialized units within the City include the following:

• Detective Bureau – General and specialized investigations, including homicide • Auto Theft Task Force
• Narcotic Task Force
• Real Estate Fraud Investigator
• Traffic Enforcement / Investigations
• Homeless Engagement Officers
• Gang Investigations Unit
• K-9 Unit
• Dispatch
• SWAT (Special Weapons and Tactics)

The City currently provides approximately 0.90 officers for every 1,000 residents with the following response time goals by priority type.14

Priority 1* calls < 6 minutes
Priority 2 calls < 6.4 minutes
Priority 3 calls < 11.3 minutes

In Cathedral City, all emergency and non-emergency calls for Police and Fire departments are received by the City’s Emergency Communication Center. The Cathedral City Dispatch Center is staffed 24 hours a day and 7 days a week to answer emergency and non - emergency phone calls. Currently, the City’s Dispatch Center has 14 full time dispatchers who answer approximately 13,700 emergency and non-emergency phone calls a month. 15 In 2017, approximately 212,077 calls were received by the Emergency Communication Center, which was 5% higher than the previous year (Figure 1).16

13 Provided by Chief of Police Travis Walker, July 2018. 14 Priority 1 – Emergency Calls (e.g. Shooting, Cutting, Disturbance Active Shooter Foot, Kidnapping in Progress), Priority 2 – Prompt Calls (e.g. Robbery, Fire, Criminal Assault), and Priority 3 – General Services Calls (e.g. Missing Person, Intoxicated Person, Drug House, Burglary).

15 Cathedral city Police Department Website.
16 Provided by Chief of Police Travis Walker, July 2018.

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37 Figure 1: Number of Calls Received by the Emergency Communication Center in 2017 and Previous Years.

Based on the current 0.90 officers per 1,000 population ratio, City’s Police Department would require 7 additional patrol officers, 3 sergeants, 2 dispatchers and one records specialist immediately upon incorporation. The personnel requirements would increase proportionally through build out of the area, and would require 68 patrol officers at built out to maintain the current ratio.

The City expends approximately 39% of its General Fund toward Police services. Based on the 2018-2019 budget and the current officer to population ratio , the City will expend $2,518,732 immediately upon incorporation to cover existing population in the Sphere area, and $19,671,327 at build out, should the Sphere be incorporated.

The City has established Development Impact Fees to fund additional law enforcement facilities. These are assessed per dwelling unit and per square foot of commercial/industrial development.

The City maintains a Police and Fire Facilities Fund to account for act ivity related to providing sites, facilities and equipment required by the demand for services from new developments. At build out of the SOI, the Fund is projected to receive $7,816317 to fund new equipment and facilities for police and fire facilities, including a Police Community Center and a Public Safety training site.

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38 C. Fire Protection Services

Current Service Provider
The Riverside County Fire Department (RCFD) currently provides fire protection to the Sphere of Influence. RCFD is one of the largest regional fire service organizations in California. The RCFD operates 96 fire stations, in 15 battalions.17 Services provided by the RCFD include fire suppression, emergency medical, rescue, and fire prevention services.

The Thousand Palms Station (Roy Wilson Fire Station 35) is located at 31920 Robert Road within the Sphere of Influence. That fire station has up to 4 uniformed personnel (full- time). Response time is typically up to 5 minutes.18

The nearest four fire stations to the Sphere of Influence (SOI) are;

• Riverside County Fire Station No. 69 at 71751 Gerald Ford Dr. in Rancho Mirage = 5 mins.
• Cathedral City Fire Station No. 412 at 32100 Desert Vista Rd. in Cathedral City = 6 mins.
• Cathedral City Fire Station No. 413 at 27610 Landau Boulevard in Cathedral City = 7.5 mins. and,
• Cathedral City Fire Station No. 411 at 36913 Date Palm Drive in Cathedral City = 8 mins.

Response times from the above fire stations are typically 5 to 8 minutes, to the benchmarked Sphere location of Ramon Road and Robert Road.

Cathedral City Service Provider
Upon incorporation, ambulance services, emergency management, emergency medical services (EMS), fire prevention and fire protection will be provided by the Cathedral City Fire Department. The City’s Fire Department staff currently includes 43 sworn fire personnel (42 firefighters and 1 Fire Chief), including 14 firefighters on -duty 24/7/365, 2 administrative personnel and 1 full-time fire inspector.

Current firefighter staffing levels represent a ratio of about 0.77 firefighters to every 1,000 residents.
19 17 Riverside County Fire Department Annual Report 2016. 18 Provided by Roy Wilson Fire Station 35 representative (Jared add last name), July 2018. 19 Provided by Fire Chief Paul Wilson, July 2018 from U.S. Census Bureau - Cathedral City, CA. July 2017 estimated population 54,596.

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39 The Cathedral City Fire Department currently has three fire stations:

Fire Station
Number Location Distance to the Sphere
of Influence
Station No. 412 32100 Desert Visa Road 3.7 miles
Station No. 413 27610 Landau Boulevard 5.8 miles
Station No. 411 36913 Date Palm Drive 5.9 miles

As shown in the table above, the closest Cathedral City fire station to the Sphere of Influence is Station No. 412 at 32100 Desert Vista Road, 3.7 miles to the west of Ramon Road and Robert Road. Response times are typically within 6 minutes.

Based on the City’s current staffing ratio of 0.77 firefighters per 1,000 residents, the City’s Fire Department would require 20 additional full-time fire department personnel immediately upon incorporation. 19 additional fire department personnel would be required in the Sphere area at build out.

The City’s Fire Department will need to hire personnel, acquire apparatus (fire engi ne, ambulance and fire inspector vehicle) initially and an aerial ladder truck, second ambulance and second fire inspector vehicle mid-way through Sphere development, purchase new equipment to outfit apparatus/fire stations and obtain/build facilities (one fire station initially and a second fire station mid-way through Sphere development) to serve the future development in the Sphere.

The existing Riverside County Fire Station at 31920 Robert Road has been assumed to be acquired for a Cathedral City Fire Station in this analysis.

The City expends approximately 24% of its General Fund toward Fire services. The Fire Department estimates that two fire stations will be required within the Sphere area. The first would involve the purchase and equipping of the existing fire station on Robert Road, and would include a Police sub-station. The cost estimate for this purchase is $9,544,870.

The second fire station, which would likely occur in the eastern portion of the Sphere area, is estimated to require a capital expenditure of $14,584,870.

In addition, the Fire Department estimates $3,902,732. in annual recurring personnel costs immediately upon incorporation to cover the existing development in the Sphere.

At build-out the City will expend a total of $7,684,634 in annual recurring personnel costs.

The total Capital Outlay costs would be $24 ,129,740 for both fire stations. A detailed breakdown of the Fire Department calculations can be found in the accompanying Fiscal Impact Analysis.

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40 D. Code Compliance

Code Compliance activities are managed by the Building and Safety Division in the City.

According to the City’s adopted budget for fiscal year 2018-2019, approximately $896,666 is allocated for Code Compliance. Currently, the City has 4 code compliances officers, or a ratio of 0.07 Code Compliance officers per 1,000 population. At incorporation, Code Compliance would require 2 additional officers, and 5 additional Code Compliance officers at build out of the Sphere area. The associated costs are anticipated to total $1,120,833 a t build out, and $448,333 at incorporation.

E. Water Services

Service Provider
The Sphere of Influence is located within the Coachella Valley Water District (CVWD) service boundary for domestic water. CVWD is an independent District, and as a result, the SOI will remain under CVWD jurisdiction regardless of the governmental jurisdiction assigned to the area. According to the CVWD 2015 Urban Water Management Plan, CVWD has enough groundwater resources to serve areas within its jurisdiction including both the City and SOI area. There would not be any change to water services.

CVWD’s primary source of water is groundwater extracted by deep wells from the Whitewater River sub-basin. The water resource consists of a combination of natural runoff, recycled water, imported water, inflows from adjacent basins, and an interlinked system of sub-basins. The Whitewater River sub-basin is also artificially recharged through imported State Water Project Exchange and Colorado River water. The total storage capacity of the Whitewater River Subbasin is approximately 28.8 million -acre feet and it currently contains approximately 25 million-acre feet.
20,21

CVWD completed and adopted its latest Urban Water Management Plans (UWMP) in 2015. CVWD also prepared the Coachella Valley Water Management Plan (CVWMP) Update in December 2010. The 2010 CVWMP serves as a blueprint for ensuring a sufficient and sustainable water supply to meet the needs of projected growth throughout the Coachella Valley, including the community of Thousand Palms and the Sphere of Influence, through 2045.22

20 CVWD Engineer’s Report on Water Supply and Replenishment Assessment 2016-2017. 21 Coachella General Plan Update (2035) Draft EIR.
22 CVWD 2010 Urban Water Management Plan - Final Report July 2011. http://www.cvwd.org/ArchiveCenter/ViewFile/Item/325.

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41 Table 3 below shows the recent and project water deliveries in the CVWD service area by land use.

Table 3
Total Recent and Projected Water Deliveries in CVWD Service Area by
Land Use
(acre-feet per year)

Year
Potable Water Use Non-
Potable
Recycled
Water
Total
Water
Delivered Residential Commercial Institutional
2015 55,033 27,507 868 8,749 101,723
2020 67,800 33,900 1,100 14,300 128,900
2025 80,500 40,300 1,300 27,700 163,800
2030 93,300 46,700 1,500 30,800 188,500
2035 105,900 52,900 1,700 33,900 212,800
2040 115,000 57,500 1,800 36,300 230,600
Source: CVWD 2015 Urban Water Management Plan.

According to the CVWD domestic water plan, the District operates a system of pipelines throughout its jurisdictions. In the area of the SOI, water lines are located along the central portion of the SOI area, in Ramon Road, 30
th Avenue, Rio Del Sol Road, Robert Road,
Arbol Real, Desert Moon Road, and I-10 (Exhibit 14). No water lines occur in areas which are currently undeveloped.

Currently, approximately 949 acres of land is developed in the SOI boundary with approximately 7,174 residential dwelling units served by CVWD. In addition, approximately 537 acres of land in the SOI is currently developed as commercial, mixed use, and industrial use. Exhibit 14 shows the existing water lines within the Sphere of Influence. Currently, 18 inch water lines are installed along Varner Road (between Ramon Road and Cook Street), Ramon Road (between Varner Road and Monterey Avenue), Robert Road, 30th Avenue (between Las Flores Way and Vista De Oro), and Via Las Palmas. These water lines are further connected to an 8-12 inch network of water lines throughout the SOI to serve existing and future development. In future, CVWD will extend water lines into the areas where not installed currently based on demand and new development proposals.

Build out of the Sphere will facilitate the development of approximately 24,418 total dwelling units, 376.91 acres of commercial and commercial mixed use development, and 1,809.01 acres of industrial development with a total build out population of 61,504 residents.

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42 Table 4 estimates current water demand in the Sphere, while Table 5 demonstrates build out water demand.

Table 4
Current Estimated Water Demand
Land Use Unit of Measure Demand Factor* Total
Current Water Demand of SOI Area
No. of persons ac-ft/ac/year ac-ft/yr
Residential 7,875 2.31** 18,191
No. of acres ac-ft/ac/year ac-ft/yr
Commercial 124.18 1.92 238
Industrial 375.21 0.51 191
TOTAL: 18,620
Source:
* Supplemental Water Supply Program and Fee Study, Coachella. ** For conservative analysis purposes, single-family water demand factor is used for residential land use.

Table 5
Build Out Estimated Water Demand
Land Use Unit of Measure Demand Factor* Total
Water Demand at SOI Area Buildout
No. of persons ac-ft/ac/year ac-ft/yr
Residential 61,504 2.31** 142,074
No. of acres ac-ft/ac/year ac-ft/yr
Commercial 379.91 1.92 729
Industrial 1,809 0.51 923
TOTAL: 143,726
Source:
* Supplemental Water Supply Program and Fee Study, Coachella. ** For conservative analysis purposes, single-family water demand factor is used for residential land use.

As shown in Table 4 and 5, development in the Sphere of Influence is projected to consume approximately 18,620 acre-feet of water per year currently, and 143,726 acre-feet at build out. Future demand will depend on actual development levels and types. Major development projects will be required to prepare Water Supply Assessments (WSAs) in compliance with Senate Bills 610 and/or 221. WSAs will quantify a project’s estimated water usage within the context of background demand.

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43 F. Wastewater Services

Service Provider
The Sphere of Influence is located within the CVWD’s jurisdiction for wastewater services.

As is the case with water service, the Sphere will remain under CVWD jurisdiction for wastewater treatment regardless of the governmental entity for the area. Currently, CVWD is operating six (6) wastewater treatment plants:

Table 6
CVWD Wastewater Treatment Plants
Location Treatment Plant Plant Capacity (mgd)
Recycled Water
Production
Bombay Beach WRP-1 0.15 No
North Shore WRP-2 0.03 No
Thermal WRP-4 7 No
Indio Hills WRP-7 5 Yes
Palm Desert
Country Club WRP-9 0.40 Yes
City of Palm
Desert WRP-10 18-24 Yes
Source:

CVWD receives a combined average of 18 million gallons of wastewater per day. The CVWD provides wastewater service to more than 272,982 residences and 93,969 wastewater connections in the Coachella Valley. Nearly 6.3 billion gallons of wastewater are treated yearly. The district also has the capacity to increase its wastewater treatment as the Coachella Valley’s population grows23.

Table 7
Projected Total Wastewater Flows in the CVWD Service Area Treatment
Plant 2020 2025 2030 2035 2040 2045
CVWD
WRP-4 11,800 16,800 20,600 25,200 29,900 34,500
CVWD
WRP-7 5,400 5,900 6,800 7,600 8,400 9,200
CVWD
WRP-9 300 300 300 300 300 300
CVWD
WRP-10 15,000 15,900 16,500 16,900 17,300 17,400

23 CVWD Website-Wastewater Treatment, http://www.cvwd.org/163/Wastewater-Treatment, Accessed October 2017.

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44 In the vicinity of the SOI area, the main trunk sewer starts at Bob Hope Drive and flows to CVWD’s Wastewater Treatment Plant #7 in Indio. This plant is located at Avenue 38 and Madison Street in Indio and has a capacity of 5,000,000 gallons24, but its capacity could be upgraded when demand warrants, as shown in Table 7. Also, as growth occurs, there may be a need to upgrade the main trunk sewer line. In the future, there will be a need to construct a new main trunk sewer from Desert Hot Springs to Rio del Sol.

Exhibit 15 shows the existing sewer lines within the Sphere of Influence. Currently, a 15 to 24 inch sewer line is installed along Varner Road between Rio Del Sol Road and 18 th
Avenue. This sewer line is connected to a network of sewer lines throughout the SOI whose width ranges from 8 to 24 inches. According to CVWD, a 15-inch sewer line is also installed along Ramon Road, east of Robert Road, which serves the developments along Ramon Road. However, the sewer line exhibit provided by CVWD does not show detailed information on sewer lines in the SOI central and eastern portions, so the actual size of sewer lines in those areas are currently unknown. A limited number of areas are currently not connected to the CVWD sewer network which will need to be connected in future. The District has the ability to create assessment districts to help fund the extension of sewer lines in existing neighborhoods, and could implement such a funding mechanism in the future.

Development within the SOI area, with or without the incorporation, will result in substantial increases in wastewater flows generated on the site. These anticipated flows will be accommodated through a wastewater collection/sewer system via on-site collection pipes.

As development increases in CVWD’s service area, the District expands its wastewater treatments facilities. Table below shows the projected total wastewater flows in the CVWD service area.

24 City of Indio General Plan Update Draft EIR (2016).

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48 G. Park and Recreation

Current Service Provider
Parks and recreation services in the Sphere of Influence are provided by Desert Recreation District (DRD). The purpose of DRD is to administer park facilities and provide recreation program services. DRD operates community recreation centers, parks and open spaces with a variety of rentable spaces including multi-purpose rooms, classrooms, gymnasiums, kitchens, athletic fields, picnic pavilions, stages and sports courts within its jurisdictions. 25 Thousand Palms Community Center and Park is located just north of I-10 in the Sphere of Influence. The size of the community building and park area are 13,690 and 215,700 square feet, respectively. The 6± acre Thousand Palms Community Park is owned jointly by the Palm Springs Unified School District (PSUSD) and DRD and offers a wide variety of active recreation opportunities. The park is adjacent to the community center, library, and school. Immediately north of this park is undeveloped land pl anned for additional park amenities.26

Future Service Provider
Currently, park maintenance within the City of Cathedral City is handled by the City's Public Works Department. Recreation Services are not directly provided by the City; however, the City sponsors after school programs offered by the Cathedral City Boys & Girls Club, senior programs offered by the Cathedral City Senior Center and a local dance program.

The City does not have an established standard for parks facilities , but instead relies on individual development agreements with developers as projects are proposed in the City.

Based on General Plan and Quimby Act ratios, approximately 225 acres of parkland would be required in the Sphere of Influence at buildout.

The nearest parks to the Sphere of Influence are Dennis Keat Soccer and Century parks which are described below:

Nearest Parks
Size
(square
feet)
Amenities
Dennis Keat Soccer
Park (17 acre) 554,589 Soccer Field, Free Parking, Public Art, Restrooms Shade Structures, Walking Path, WiFi
Century Park (5 acre) 216,163 Soccer Field, Free Parking, Restrooms, Shade Structures, Tennis Court, Tot Lot, WiFi

DRD is working with the City to evaluate the feasibility of adding Cathedral City to the DRD service area. If this change were to be implemented , DRD would continue serving the Sphere of Influence, regardless of the governmental entity in the area. If the City does not enter DRD’s service area, Parks and Recreation services would become the

25 AP 012 Fees and Charges Policy and Manual by Desert Recreation District (2017). 26 Desert Recreation District Master Plan (2013).

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49 responsibility of the City for the annexed area.

H. Electricity

Service Provider
The Sphere of Influence is located within the Imperial Irrigation District (IID) and Southern California Edison (SCE) boundaries.

IID provides electrical services to the SOI east of Rio del Sol. IID customers are charged based on the type of the land use and energy consumption as follows:

Type of Land Use Monthly Charges for the Service
Residential
A. Customer Charge - $9.60
B. Energy Charge - 11.69¢ per kWh
C. Energy Cost Adjustment (The amount computed in accordance with Schedule Energy Cost Adjustment (ECA) and Energy Cost Adjustment Renewable (ECA-R))
General Service
A. Customer Charge - $12.00
B. Energy Charge
First 1,000 kWh - 12.31¢ per kWh
Next 6,000 kWh - 12.05¢ per kWh
All Over 7,000 kWh - 11.69¢ per kWh
C. Energy Cost Adjustment (The amount computed in accordance with Schedule ECA and ECA-R)
Large General
Service
A. Customer Charge - $140.00
B. Demand Charge - $6.75 per kW of Billing Demand
C. Energy Charge - 9.30¢ per kWh
D. Energy Cost Adjustment (The amount computed in accordance with Schedule ECA and ECA-R)
Source: Energy rates - Imperial Irrigation District Website.

SCE provides electrical service to the northwestern portion of the SOI. SCE customers are charged based on the type of the land use and energy consumption as follows:

Type of Land Use Monthly Charges for the Service
Residential
A. Energy Charge- $/kWh/Meter/Day
Baseline Service
Delivery Service
Total1
Generation2
UG** DWREC3
Summer 0.03231 0.08589 0.00000
Winter 0.03231 0.08589 0.00000

Non-Baseline Service*

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50 Type of Land Use Monthly Charges for the Service
Delivery Service
Total1
Generation
UG** DWREC3
Summer 0.08026 0.08589 0.00000
Winter 0.08026 0.08589 0.00000

High Usage Charge
Delivery Service
Total1
Generation
UG** DWREC3
Summer 0.14790 0.08589 0.00000
Winter 0.14790 0.08589 0.00000

B. Basic Charge - $/Meter/Day

Delivery Service Total1
Single-Family Accommodation - 0.024
Multi-Family Accommodation – 0.018

C. Minimum Charge*** - $/Meter/Day

Delivery Service Total1
Single-Family Accommodation - 0.169
Multi-Family Accommodation – 0.169

D. California Climate Credit4

36.00 * Nonbaseline Service includes all kWh in excess of applicable Baseline allocations as described in Preliminary Statement, Part H, Baseline Service.
** The ongoing Competition Transition Charge (CTC) of $(0.00075) per kWh is recovered in the UG component of Generation.
1 Total = Total Delivery Service rates are applicable to Bundled Service, Direct Access (DA) and Community Choice Aggregation Service (CCA Service) Customers, except DA and CCA Service Customers are not subject to the DWRBC rate component of this Schedule but instead pay the DWRBC as provided by Schedule DA -CRS or Schedule CCA-CRS. 2 Generation = The Generation rates are applicable only to Bundled Service Customers. 3 DWREC = Department of Water Resources (DWR) Energy Credit – For more information on the DWR Energy Credit, see the Billing Calculation Special Condition of this Schedule. 4 Applied on an equal basis, per household, semi -annually. See the Special Conditions of this Schedule for more information.

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51 Type of Land Use Monthly Charges for the Service
General
Service/Industrial
Rates
A. Energy Charge- $/kWh/Meter/Month

Delivery Service

Trans1 – 0.00172
Distribution – 0.00254
New System Generation Charge
Nuclear Decommissioning Charge – 0.00005
Public Purpose Programs Charge – 0.01075
Department of Water Resources (DWR) Bond Charge – 0.00549 The PUC Reimbursement Fee is described in Schedule RF -E. – 0.00046 Total2 – 0.02270

Generation
UG** - 0.06029
Department of Water Resources (DWR) Energy Credit – 0.00000

B. Customer Charge - $/Meter/Month

C. Facilities Related Demand Charge - $/kW

D. Summer Time Related Demand Charge - $/kW Single Phase Service - $/Month

E. Voltage Discount, Demand - $/kW

F. Voltage Discount, Energy - $/kWh

H. California Alternate Rates for Energy Discount - %

I. California Climate Credit - $/kWh

1 Trans = Transmission and the Transmission Owners Tariff Charge Adjustments (TOTCA) which are FERC approved. The TOTCA represents the Transmission Revenue Balancing Account Adjustment (TRBAA) of $(0.00144) per kWh, Reliability Services Balancing Account Adjustment (RSBAA) of $0.00005 per kWh, and Transmission Access Charge Balancing Account Adjustment (TACBAA) of $(0.00033) per kWh.

** The ongoing Competition Transition Charge (CTC) of $(0.00063) per kWh is recovered in the UG component of Generation.

Source: Regulatory Information – rates Pricing - SCE Website.

Both IID and SCE are independent utility companies which provide electrical service to the Coachella Valley including the City of Cathedral City and SOI. IID and SCE transmission lines run through the SOI (Exhibit 16). Those parcels are owned by IID and SCE. Upon incorporation, there would not be any change in IID and SCE jurisdictions.

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53 I. Library Services

Service Provider
Library services to Cathedral City and the Sphere of Influence are provided by the Riverside County Library System.

Library Location Hours of
Operation
Size of the
library
(square
feet)
No. of
Volumes
(books)
Programs
Available
Cathedral City 33520 Date
Palm Drive
Monday,
Tuesday,
Thursday,
Saturday
10:00 AM to
6:00 PM
Wednesdays
12:00 PM to
8:00 PM
Sundays
1:00 PM to
5:00 PM
Fridays
Closed
20,000 81,000
RCLS Adult
Literacy
Program
Sphere of
Influence
31189 Robert
Road
Monday,
Tuesday,
Thursday
10:00 AM to
6:00 PM
Wednesdays
= 10:00 PM
to 8:00 PM
Saturdays =
10:00 PM to
4:00 PM
Fridays &
Sundays =
Closed
4,500 20,00027

Upon incorporation of SOI into Cathedral City, the Thousand Palms Public Library would continue as a County library, unless the City opted for other options.

27 Roxanna Garcia (Thousand Palms Public Library Representative); Contacted on August 2018 21 at 760-343-1556.

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54 J. Solid Waste Collection

Service Provider
Burrtec Corporation provides solid waste collection services to the City and Sphere of Influence. Burrtec collects solid waste from its service area and transfers it to the Edom Hill Transfer Station which is located in Cathedral City. Edom Hill is permitted to receive 2,600 tons of waste per day as a transfer station. From Edom Hill, waste is trucked to Lamb Canyon Sanitary Landfill in Beaumont or Badlands Landfill in Moreno Valley. These landfills are owned and operated by Riverside County. These landfills have a combined capacity of up to 66,601,993 cubic yards.

Land Use Services Provided
Average Charges Frequency
Cathedral
City
Sphere of
Influence
Cathedral
City
Sphere of
Influence
Residential
• Curbside Automated
Service
• Curbside Manual Service
• Bulky Item Service
• E-Waste Recycling
• Used Motor Oil
Recycling
• Christmas Tree
Recycling
$230/year
(included in
property tax
bill)
$17/month Pick up once
week
Pick up once
week
Commercial
• Commercial Waste
Containers
• Commercial Recycling
Containers
• Cardboard Baler
• Storage Containers
• Compactor Services
• Roll Off Containers
$155/month $130/month Pick up once
week
Pick up once
week
Industrial
• Commercial Waste
Containers
• Commercial Recycling
Containers
• Cardboard Baler
• Storage Containers
• Compactor Services
•
Roll Off Containers
$80/ton $47/ton On call On call
Source: Burrtec

The City and Sphere of Influence have the same franchised solid waste provider. Therefore, should the Sphere of Influence be incorporated, solid waste service is likely to remain the responsibility of Burrtec. There would be a change in billing for residential customers, however, insofar as the customers in the City are billed through their property tax bills.

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55 K. Street Maintenance

There is currently a small network of paved and unpaved roadways in the Sphere of Influence (Exhibit 17). The main roads in the Sphere of Influence are:

North South Orientation East West Orientation
• Rio Del Sol Road
• Monterey Avenue
• Vista De Oro
• Cook Street
• 30th Avenue
• 31st Avenue
• Ramon Road
• Varner Road

The Sphere of Influence was not included in the Circulation Element of the City’s General Plan. For analysis purposes, the City’s General Plan roadway classifications were extended to the Sphere of Influence to classify the roads and are discussed below.

Rio Del Sol Road: Rio Del Sol Road is the extension of Bob Hope Drive north of I-10 and runs through the western portion of the Sphere of Influence. Currently, it is a 2-lane divided, north-south trending roadway that enters the Sphere of Influence at its interchange with I-10 and extends north to 28th Avenue. According to the City’s General Plan, it would be designated as an “Arterial Highway” upon incorporation. In the future, Rio Del Sol Road will need to be upgraded to a 6-lane divided roadway.

Currently, curbs, gutters, and sidewalks are present in small segments of Rio Del Sol Road.

In the future, curbs, gutters, and sidewalks should be built while expanding the roadway from 2 to 6-lanes.

Monterey Avenue: Monterey Avenue is a 4-lane undivided, north-south trending roadway, which runs through central part of the Sphere of Influence. It is designated as a “City Collector” in the City’s General Plan. Currently, curbs, gutters, and sidewalks are present in small segments of the Monterey Avenue. Lands southwest of Monterey Avenue and Haskell Road are currently undeveloped where only sidewalks are in place. In the future, as development occurs, curbs and gutters should be built.

Vista De Oro: Vista De Oro is a 2-lane undivided, north-south trending unpaved roadway, which will run through the western portion of the Sphere of Influence. It is designated as a “City Local Street” in the City’s General Plan.

Currently, no curbs, gutters, and sidewalks are present along Vista De Oro. In the future, this road will need to be paved and supplemented with curbs, gutters, and sidewalks.

Cook Street: Cook Street is a 2 -lane undivided, north-south trending partially paved roadway, which runs through the eastern portion of the Sphere of Influence. It is designated as a “Secondary Highway” in the City’s General Plan. In the future, Cook Street will need to be upgraded to a 4-lane divided roadway. Within the Sphere on Cook Street, curbs, gutters, and sidewalks are not currently present.

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56 30th Avenue: 30th Avenue is a 2-lane undivided, east-west trending partially paved roadway, which runs through the northern portion of the Sphere of Influence. It is designated as a “Secondary Highway” in the City’s General Plan. In the future, 30th Avenue needs to be upgraded to a 4-lane divided roadway.

For most of 30th Avenue within the Sphere, curbs, gutters, and sidewalks are not currently present. As development occurs, curbs, gutters, and sidewalks will need to be constructed.

31st Avenue: 31st Avenue is a 2-lane undivided, east-west trending partially paved roadway, which runs through the central part of the Sphere of Influence. It is designated as a “Secondary Highway” in the City’s General Plan. In the future, 31st Avenue needs to be upgraded to a 4-lane divided roadway. Curbs, gutters, and sidewalks are currently present along parts of the 31st Avenue. In the future, curbs, gutters, and sidewalks need to build where it’s not built yet.

Ramon Road: Ramon Road is a 2-lane undivided, east-west trending fully paved roadway, which runs through the central part of the Sphere of Influence. It is designated as a “Arterial Highway” in the City’s General Plan. In future, Ramon Road needs to be upgraded to a 6- lane divided roadway. Currently, curbs, gutters, and sidewalks are currently not present along majority parts of the Ramon Road, east of Vista De Oro, due to undeveloped lands.

In the future, curbs, gutters, and sidewalks need to build where it’s not built yet along Ramon Road, east of Vista De Oro.

Varner Road: Varner Road is a 4 to 6-lane undivided, northeast-southeast trending fully paved roadway, which runs through the southern portion of the Sphere of Influence. It is designated as a “City Local Street” in the City’s General Plan.

Varner Road runs parallel to I-10. Currently, the eastern portion of Varner Road is generally undeveloped; however, curbs, gutters, and sidewalks are curr ently built for the majority of its length.

In Cathedral City, the Public Works Division is responsible for maintaining the City’s parks, streets, general fleet and facilities. The City allocates General Fund, Measure A and Gas Tax revenues to fund Public Works activities. Immediately upon annexation, Public Works activities would result in annual expenditures of $173,001 for existing streets maintenance, including traffic control devices, striping, etc. At build out, annual Public Works road maintenance costs are estimated to be $601,856 annually. I n addition, Public Works expenditures for other activities, including signal maintenance, fleet maintenance and parks activities would require an additional $418,871 at incorporation, and $3,271,389 at build out.

Existing streets in the Sphere of Influence are private or public streets. Currently, approximately 63 miles of roads exist in the SOI area. Of these 63 miles, approximately 60 miles are public roads, as shown in the table below.

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57 Road’s
Current
Condition
Total
Length
(miles)
Description Estimated
Cost
Fully paved 34
These roads are currently fully paved.

Sidewalks are not provided along some
portions on these roads. Approximately

6.69. miles of these roads along Ramon
Road, 30 th Avenue, Cook Street, and
Rio Del Sol Road will need to be
upgraded to Secondary Highway (4-lane
undivided; 88 feet wide).
$5,446,277
Partially paved 2 These roads are generally substandard and will need to be improved/widened
to City local street standards.

Of the total 13 miles of substandard
roads, approximately 0.37 miles (along
31st Avenue) will need to be upgraded
and widened to Secondary Highway (4-
lane undivided; 88 feet wide). The
balance will require widening to City
local road standards.
$11,937,577
Substandard 11 $1,456,697
Unpaved 16
Approximately 16 miles of roads in the
SOI are unpaved and would require full
improvements to Local Streets (2-lanes;
60 feet wide).

These unpaved roads also include
portions of 28 th Avenue (0.65 miles),
30th Avenue (1.38 miles), and 31st
Avenue (0.14 miles), which will need to
be upgraded to Secondary Highway (4-
lane undivided; 88 feet wide).
$25,594,238
Grand Total Cost $44,434,790
Source: Appendix B (Road way Existing Condition and Future Upgradation Cost).

As shown in the Table above and in Appendix B, approximately 16 miles of roads are currently unpaved. Upon incorporation, the City would be responsible for constructing these roads which would cost the City up to $25,594,238. In addition, the City would also be responsible for maintaining and upgrading 47 miles of paved roads which would cost the City an additional $18,840,552. Upon incorporation, the total cost would reach up to $44,434,790 for constructing new roads and maintaining and widening existing roads.

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58 As shown in Appendix B, the majority of the unpaved roads are surrounded by undeveloped lands where future development will be responsible for its share of roadway improvements. Therefore, the City would recover some of the widening expenses from future developments. However, the rebuilding of existing streets, the build out of sub- standard streets where development occurs, and the on-going maintenance of streets will be the responsibility of the City.

The City has established transportation impact fees through its Developer Impact Fee schedule. These are assessed on a per unit basis for single and multi-family residential development, and per square foot for commercial and industrial development. These fees would be applied to new development within the Sphere of Influence after incorporation.

Because of the added territory involved in the Sphere of Influence, the Development Impact Fee study would need to be updated to encompass the added territory, should incorporation occur.

Gas taxes and Local Transportation Funds are also used for the construction and maintenance of streets and highways. These revenues would increase proportionally should the Sphere of Influence be incorporated.

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60 L. Lighting/Landscaping/Street Sweeping

Service Provider
Desert Recreation District (DRD) provides lighting and landscaping to the community of the Thousand Palms. The existing street lighting facilities within this community are limited in numbers, but are widespread across the entire community.

DRD provides and ensures the continued maintenance, servicing, administration and operation of the landscaping and lighting improvements, community recreation facilities and programs, and associated appurtenances located within the public right -of-way and dedicated easements that provide special benefits to areas within the jurisdiction of the DRD.

DRD annually levies and collects special assessments in order to provide and maintain the facilities, improvements and services within Assessment District No. 93 -1 which was formed in 1993 pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Divisio n 15 of the Streets and Highways Code (“1972 Act”). Streetlights and the landscaped median on Ramon Road are funded by a local assessment district which is administered by the DRD along with their maintenance of the community park.

Street Sweeping: Street Sweeping on County maintained roads in the SOI area is provided by Burrtec, and administered through the Environmental Health Department.

Burrtec’s street sweepers remove debris from SOI streets and prevent it from entering local storm drains. Burrtec’s street sweepers do not pick up large pieces, piles or wet debris from the streets in the SOI.

The majority of the major streets in Cathedral City are part of the Regional PM 10 Street
Sweeping Program, which is managed by the Coachella Valley Association of Governments (CVAG). Regional PM
10 Street Sweeping Program is part of the area's Clean
Streets Management Program. Using alternative fuel sweepers, these sweepers and related equipment mitigate PM-10 blowsand issues throughout the Coachella Valley.

Currently, the City is divided into eight (8) zones. Streets in each zone are swept once a month.

CVAG administers the arterial street sweeping through funds the City receives from the Air Quality Fund. Burrtec provides residential street sweeping through their contract with the City. Both Burrtec and CVAG contract with Clean Streets to sweep streets in Cathedral City.

Upon incorporation, either the Burrtec contract would extend the service or the City could obtain additional grant funds for arterial sweeping, or funding through CVAG will be used for this service.

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Terra Nova/ City of Cathedral City
Sphere of Influence
Constraints and Opportunities Report

61 M. Animal Control

Service Provider
The Riverside County Animal Shelter provides complete animal services for the unincorporated areas of Riverside County. It also provides shelter and adoption services for Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert and Rancho Mirage.

The Coachella Valley Animal Campus is located in the SOI Thousand Palms community at 72050 Pet Land Place.

Animal Control Services are currently contracted by the City through the Riverside County Health Department Animal Services Division. The City pays for these services through the General Fund. The City has allocated $329,189 for police/animal control for year 2018/2019. Based on its current population, the cost of providing animal control in the City is currently $6.00 per person. On this basis, animal control services would cost the City $47,250 immediately upon incorporation, and $369,024 at build out of the Sphere area.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Appendix A – Soil Map

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) United States
Department of
Agriculture
A product of the National
Cooperative Soil Survey,
a joint effort of the United
States Department of
Agriculture and other
Federal agencies, State
agencies including the
Agricultural Experiment
Stations, and local
participants
Custom Soil Resource
Report for
Riverside County,
Coachella V
alley Area,
California

CONSTRAINTS AND

OPPORTUNITIES REPORT CC
SOI 2018
Natural
Resources
Conservation
Service
August 15, 2018

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Preface
Soil surveys contain information that affects land use planning in survey areas.

They highlight soil limitations that af
fect various land uses and provide information
about the properties of the soils in the survey areas. Soil surveys are designed for many different users, including farmers, ranchers, foresters, agronomists, urban planners, community officials, engineers, developers, builders, and home buyers.

Also, conservationists, teachers, students, and specialists in recreation, waste disposal, and pollution control can use the surveys to help them understand, protect, or enhance the environment.

Various land use regulations of Federal, State, and local governments may impose special restrictions on land use or land treatment. Soil surveys identify soil properties that are used in making various land use or land treatment decisions.

The information is intended to help the land users identify and reduce the ef fects of
soil limitations on various land uses. The landowner or user is responsible for identifying and complying with existing laws and regulations.

Although soil survey information can be used for general farm, local, and wider area planning, onsite investigation is needed to supplement this information in some cases. Examples include soil quality assessments (http://www.nrcs.usda.gov/wps/ portal/nrcs/main/soils/health/) and certain conservation and engineering applications. For more detailed information, contact your local USDA Service Center (https://offices.sc.egov.usda.gov/locator/app?agency=nrcs) or your NRCS State Soil Scientist (
http://www.nrcs.usda.gov/wps/portal/nrcs/detail/soils/contactus/? cid=nrcs142p2_053951).

Great differences in soil properties can occur within short distances. Some soils are seasonally wet or subject to flooding. Some are too unstable to be used as a foundation for buildings or roads. Clayey or wet soils are poorly suited to use as septic tank absorption fields. A high water table makes a soil poorly suited to basements or underground installations.

The National Cooperative Soil Survey is a joint effort of the United States Department of Agriculture and other Federal agencies, State agencies including the Agricultural Experiment Stations, and local agencies. The Natural Resources Conservation Service (NRCS) has leadership for the Federal part of the National Cooperative Soil Survey
.

Information about soils is updated periodically. Updated information is available through the NRCS W
eb Soil Survey, the site for official soil survey information.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color
, national origin, age, disability,
and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require 2 2.A.f
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's T
ARGET Center at (202) 720-2600 (voice
and TDD). To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Contents
Preface.................................................................................................................... 2 How Soil Surveys Are Made..................................................................................5 Soil Map.................................................................................................................. 8 Soil Map................................................................................................................9 Legend................................................................................................................10 Map Unit Legend................................................................................................ 11 Map Unit Descriptions........................................................................................ 12 Riverside County, Coachella Valley Area, California.......................................14 BA—Badland...............................................................................................14 CaD—Cajon loamy sand, 5 to 15 percent slopes....................................... 14 CdC—Carsitas gravelly sand, 0 to 9 percent slopes...................................16 CdE—Carsitas gravelly sand, 9 to 30 percent slopes.................................17 ChC—Carsitas cobbly sand, 2 to 9 percent slopes.....................................18 CkB—Carsitas fine sand, 0 to 5 percent slopes..........................................20 CmE—Carsitas variant, 5 to 30 percent slopes.......................................... 21 CoB—Chuckawalla very gravelly sandy clay loam, 2 to 5 percent slopes.. 22 CoD—Chuckawalla very gravelly sandy clay loam, 5 to 15 percent slopes....................................................................................................23 CpA—Coachella fine sand, 0 to 2 percent slopes.......................................25 CpB—Coachella fine sand, hummocky, 2 to 5 percent slopes....................26 CsA—Coachella fine sandy loam, 0 to 2 percent slopes............................ 27 GP—Gravel pits and dumps........................................................................28 LR—Lithic Torripsamments-Rock outcrop complex.................................... 29 MaB—Myoma fine sand, 0 to 5 percent slopes...........................................31 MaD—Myoma fine sand, 5 to 15 percent slopes........................................ 32 NaB—Niland sand, 2 to 5 percent slopes................................................... 33 W—Water....................................................................................................35 References............................................................................................................36 4 2.A.f
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) How Soil Surveys Are Made
Soil surveys are made to provide information about the soils and miscellaneous areas in a specific area. They include a description of the soils and miscellaneous areas and their location on the landscape and tables that show soil properties and limitations af
fecting various uses. Soil scientists observed the steepness, length, and shape of the slopes; the general pattern of drainage; the kinds of crops and native plants; and the kinds of bedrock. They observed and described many soil profiles. A soil profile is the sequence of natural layers, or horizons, in a soil. The profile extends from the surface down into the unconsolidated material in which the soil formed or from the surface down to bedrock. The unconsolidated material is devoid of roots and other living organisms and has not been changed by other biological activity.

Currently, soils are mapped according to the boundaries of major land resource areas (MLRAs). MLRAs are geographically associated land resource units that share common characteristics related to physiography
, geology, climate, water
resources, soils, biological resources, and land uses (USDA, 2006). Soil survey areas typically consist of parts of one or more MLRA.

The soils and miscellaneous areas in a survey area occur in an orderly pattern that is related to the geology
, landforms, relief, climate, and natural vegetation of the area. Each kind of soil and miscellaneous area is associated with a particular kind of landform or with a segment of the landform. By observing the soils and miscellaneous areas in the survey area and relating their position to specific segments of the landform, a soil scientist develops a concept, or model, of how they were formed. Thus, during mapping, this model enables the soil scientist to predict with a considerable degree of accuracy the kind of soil or miscellaneous area at a specific location on the landscape.

Commonly, individual soils on the landscape merge into one another as their characteristics gradually change. T
o construct an accurate soil map, however, soil
scientists must determine the boundaries between the soils. They can observe only a limited number of soil profiles. Nevertheless, these observations, supplemented by an understanding of the soil-vegetation-landscape relationship, are sufficient to verify predictions of the kinds of soil in an area and to determine the boundaries.

Soil scientists recorded the characteristics of the soil profiles that they studied. They noted soil color
, texture, size and shape of soil aggregates, kind and amount of rock fragments, distribution of plant roots, reaction, and other features that enable them to identify soils. After describing the soils in the survey area and determining their properties, the soil scientists assigned the soils to taxonomic classes (units).

Taxonomic classes are concepts. Each taxonomic class has a set of soil characteristics with precisely defined limits. The classes are used as a basis for comparison to classify soils systematically. Soil taxonomy, the system of taxonomic classification used in the United States, is based mainly on the kind and character of soil properties and the arrangement of horizons within the profile. After the soil 5 2.A.f
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) scientists classified and named the soils in the survey area, they compared the individual soils with similar soils in the same taxonomic class in other areas so that they could confirm data and assemble additional data based on experience and research.

The objective of soil mapping is not to delineate pure map unit components; the objective is to separate the landscape into landforms or landform segments that have similar use and management requirements. Each map unit is defined by a unique combination of soil components and/or miscellaneous areas in predictable proportions. Some components may be highly contrasting to the other components of the map unit. The presence of minor components in a map unit in no way diminishes the usefulness or accuracy of the data. The delineation of such landforms and landform segments on the map provides suf ficient information for the
development of resource plans. If intensive use of small areas is planned, onsite investigation is needed to define and locate the soils and miscellaneous areas.

Soil scientists make many field observations in the process of producing a soil map.

The frequency of observation is dependent upon several factors, including scale of mapping, intensity of mapping, design of map units, complexity of the landscape, and experience of the soil scientist. Observations are made to test and refine the soil-landscape model and predictions and to verify the classification of the soils at specific locations. Once the soil-landscape model is refined, a significantly smaller number of measurements of individual soil properties are made and recorded.

These measurements may include field measurements, such as those for color ,
depth to bedrock, and texture, and laboratory measurements, such as those for content of sand, silt, clay, salt, and other components. Properties of each soil typically vary from one point to another across the landscape.

Observations for map unit components are aggregated to develop ranges of characteristics for the components. The aggregated values are presented. Direct measurements do not exist for every property presented for every map unit component. V
alues for some properties are estimated from combinations of other properties.

While a soil survey is in progress, samples of some of the soils in the area generally are collected for laboratory analyses and for engineering tests. Soil scientists interpret the data from these analyses and tests as well as the field-observed characteristics and the soil properties to determine the expected behavior of the soils under dif
ferent uses. Interpretations for all of the soils are field tested through observation of the soils in different uses and under different levels of management.

Some interpretations are modified to fit local conditions, and some new interpretations are developed to meet local needs. Data are assembled from other sources, such as research information, production records, and field experience of specialists. For example, data on crop yields under defined levels of management are assembled from farm records and from field or plot experiments on the same kinds of soil.

Predictions about soil behavior are based not only on soil properties but also on such variables as climate and biological activity
. Soil conditions are predictable over
long periods of time, but they are not predictable from year to year. For example, soil scientists can predict with a fairly high degree of accuracy that a given soil will have a high water table within certain depths in most years, but they cannot predict that a high water table will always be at a specific level in the soil on a specific date.

After soil scientists located and identified the significant natural bodies of soil in the survey area, they drew the boundaries of these bodies on aerial photographs and Custom Soil Resource Report
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) identified each as a specific map unit. Aerial photographs show trees, buildings, fields, roads, and rivers, all of which help in locating boundaries accurately .

Custom Soil Resource Report
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The soil map section includes the soil map for the defined area of interest, a list of soil map units on the map and extent of each map unit, and cartographic symbols displayed on the map. Also presented are various metadata about data used to produce the map, and a description of each soil map unit. 8 2.A.f
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) 9 Custom Soil Resource Report
Soil Map
3739000 3740000 3741000 3742000 3743000 3744000 3745000 3746000 3747000 3748000 3749000 3750000 3751000 3739000 3740000 3741000 3742000 3743000 3744000 3745000 3746000 3747000 3748000 3749000 3750000 3751000 550000 551000 552000 553000 554000 555000 556000 557000 558000 559000 550000 551000 552000 553000 554000 555000 556000 557000 558000 559000 33° 54' 16'' N
116° 28' 3'' W
33° 54' 16'' N
116° 21' 25'' W
33° 46' 56'' N
116° 28' 3'' W
33° 46' 56'' N
116° 21' 25'' WN
Map projection: Web Mercator Corner coordinates: WGS84 Edge tics: UTM Zone 11N WGS84 0 3000 6000 12000 18000
Feet
0 500 1000 2000 3000
Meters
Map Scale: 1:66,000 if printed on A portrait (8.5" x 11") sheet.

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MAP LEGEND MAP INFORMATION
Area of Interest (AOI)
Area of Interest (AOI)
Soils
Soil Map Unit Polygons
Soil Map Unit Lines
Soil Map Unit Points
Special Point Features
Blowout
Borrow Pit
Clay Spot
Closed Depression
Gravel Pit
Gravelly Spot
Landfill
Lava Flow
Marsh or swamp
Mine or Quarry
Miscellaneous Water
Perennial Water
Rock Outcrop
Saline Spot
Sandy Spot
Severely Eroded Spot
Sinkhole
Slide or Slip
Sodic Spot
Spoil Area
Stony Spot
Very Stony Spot
Wet Spot
Other
Special Line Features
Water Features
Streams and Canals
Transportation
Rails
Interstate Highways
US Routes
Major Roads
Local Roads
Background
Aerial Photography
The soil surveys that comprise your AOI were mapped at
1:24,000.

Please rely on the bar scale on each map sheet for map
measurements.

Source of Map: Natural Resources Conservation Service
Web Soil Survey URL:

Coordinate System: Web Mercator (EPSG:3857)
Maps from the Web Soil Survey are based on the Web Mercator projection, which preserves direction and shape but distorts distance and area. A projection that preserves area, such as the Albers equal-area conic projection, should be used if more accurate calculations of distance or area are required.

This product is generated from the USDA-NRCS certified data as of the version date(s) listed below
.

Soil Survey Area: Riverside County, Coachella Valley Area, California
Survey Area Data: Version 9, Sep 11, 2017
Soil map units are labeled (as space allows) for map scales 1:50,000 or larger
.

Date(s) aerial images were photographed: May 2, 2010—Sep 24, 2017
The orthophoto or other base map on which the soil lines were compiled and digitized probably dif
fers from the background
imagery displayed on these maps. As a result, some minor shifting of map unit boundaries may be evident.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Map Unit Legend
Map Unit Symbol Map Unit Name Acres in AOI Percent of AOI BA Badland 5,936.2 25.7%
CaD Cajon loamy sand, 5 to 15
percent slopes

2.5 0.0%
CdC Carsitas gravelly sand, 0 to 9
percent slopes
1,927.6 8.3%
CdE Carsitas gravelly sand, 9 to 30
percent slopes
493.0 2.1%
ChC Carsitas cobbly sand, 2 to 9
percent slopes
984.5 4.3%
CkB Carsitas fine sand, 0 to 5
percent slopes
1,485.4 6.4%
CmE Carsitas variant, 5 to 30 percent
slopes
1,395.2 6.0%
CoB Chuckawalla very gravelly
sandy clay loam, 2 to 5
percent slopes

67.7 0.3%
CoD Chuckawalla very gravelly
sandy clay loam, 5 to 15
percent slopes
249.6 1.1%
CpA Coachella fine sand, 0 to 2
percent slopes
784.8 3.4%
CpB Coachella fine sand,
hummocky
, 2 to 5 percent
slopes
902.3 3.9%
CsA Coachella fine sandy loam, 0 to
2 percent slopes

17.6 0.1%
GP Gravel pits and dumps 163.4 0.7%
LR Lithic Torripsamments-Rock
outcrop complex
497.8 2.2%
MaB Myoma fine sand, 0 to 5
percent slopes
4,431.0 19.2%
MaD Myoma fine sand, 5 to 15
percent slopes
3,710.5 16.0%
NaB Niland sand, 2 to 5 percent
slopes

7.7 0.0%
W Water 64.7 0.3%
Totals for Area of Interest 23,121.4 100.0%
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Map Unit Descriptions
The map units delineated on the detailed soil maps in a soil survey represent the soils or miscellaneous areas in the survey area. The map unit descriptions, along with the maps, can be used to determine the composition and properties of a unit.

A map unit delineation on a soil map represents an area dominated by one or more major kinds of soil or miscellaneous areas. A map unit is identified and named according to the taxonomic classification of the dominant soils. Within a taxonomic class there are precisely defined limits for the properties of the soils. On the landscape, however
, the soils are natural phenomena, and they have the
characteristic variability of all natural phenomena. Thus, the range of some observed properties may extend beyond the limits defined for a taxonomic class.

Areas of soils of a single taxonomic class rarely, if ever, can be mapped without including areas of other taxonomic classes. Consequently, every map unit is made up of the soils or miscellaneous areas for which it is named and some minor components that belong to taxonomic classes other than those of the major soils.

Most minor soils have properties similar to those of the dominant soil or soils in the map unit, and thus they do not af
fect use and management. These are called
noncontrasting, or similar, components. They may or may not be mentioned in a particular map unit description. Other minor components, however, have properties and behavioral characteristics divergent enough to affect use or to require different management. These are called contrasting, or dissimilar, components. They generally are in small areas and could not be mapped separately because of the scale used. Some small areas of strongly contrasting soils or miscellaneous areas are identified by a special symbol on the maps. If included in the database for a given area, the contrasting minor components are identified in the map unit descriptions along with some characteristics of each. A few areas of minor components may not have been observed, and consequently they are not mentioned in the descriptions, especially where the pattern was so complex that it was impractical to make enough observations to identify all the soils and miscellaneous areas on the landscape.

The presence of minor components in a map unit in no way diminishes the usefulness or accuracy of the data. The objective of mapping is not to delineate pure taxonomic classes but rather to separate the landscape into landforms or landform segments that have similar use and management requirements. The delineation of such segments on the map provides suf
ficient information for the
development of resource plans. If intensive use of small areas is planned, however, onsite investigation is needed to define and locate the soils and miscellaneous areas.

An identifying symbol precedes the map unit name in the map unit descriptions.

Each description includes general facts about the unit and gives important soil properties and qualities.

Soils that have profiles that are almost alike make up a soil series. Except for dif
ferences in texture of the surface layer, all the soils of a series have major horizons that are similar in composition, thickness, and arrangement.

Soils of one series can differ in texture of the surface layer, slope, stoniness, salinity
, degree of erosion, and other characteristics that affect their use. On the basis of such differences, a soil series is divided into soil phases. Most of the areas Custom Soil Resource Report
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) shown on the detailed soil maps are phases of soil series. The name of a soil phase commonly indicates a feature that af
fects use or management. For example, Alpha
silt loam, 0 to 2 percent slopes, is a phase of the Alpha series.

Some map units are made up of two or more major soils or miscellaneous areas.

These map units are complexes, associations, or undif
ferentiated groups.

A complex consists of two or more soils or miscellaneous areas in such an intricate pattern or in such small areas that they cannot be shown separately on the maps.

The pattern and proportion of the soils or miscellaneous areas are somewhat similar in all areas. Alpha-Beta complex, 0 to 6 percent slopes, is an example.

An
association is made up of two or more geographically associated soils or miscellaneous areas that are shown as one unit on the maps. Because of present or anticipated uses of the map units in the survey area, it was not considered practical or necessary to map the soils or miscellaneous areas separately . The
pattern and relative proportion of the soils or miscellaneous areas are somewhat similar. Alpha-Beta association, 0 to 2 percent slopes, is an example.

An undifferentiated group is made up of two or more soils or miscellaneous areas that could be mapped individually but are mapped as one unit because similar interpretations can be made for use and management. The pattern and proportion of the soils or miscellaneous areas in a mapped area are not uniform. An area can be made up of only one of the major soils or miscellaneous areas, or it can be made up of all of them. Alpha and Beta soils, 0 to 2 percent slopes, is an example.

Some surveys include miscellaneous areas. Such areas have little or no soil material and support little or no vegetation. Rock outcrop is an example.

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BA—Badland
Map Unit Composition
Badland: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Badland
Setting
Down-slope shape: Concave
Across-slope shape: Concave
Parent material: Consolidated sandy alluvium
Typical profile
H1 - 0 to 60 inches: weathered bedrock
Properties and qualities
Slope: 50 to 75 percent
Depth to restrictive feature: 0 to 3 inches to paralithic bedrock Natural drainage class: Excessively drained
Runoff class: Very high
Capacity of the most limiting layer to transmit water (Ksat): Moderately high (0.20 to 0.57 in/hr)
Interpretive groups
Land capability classification (irrigated): None specified Land capability classification (nonirrigated): 8
Hydric soil rating: No
Minor Components
Carsitas
Percent of map unit: 10 percent
Hydric soil rating: No
Riverwash
Percent of map unit: 5 percent
Hydric soil rating: No
CaD—Cajon loamy sand, 5 to 15 percent slopes
Map Unit Setting
National map unit symbol: hktx
Elevation: 400 to 4,000 feet
Mean annual precipitation: 3 to 9 inches
Mean annual air temperature: 63 to 70 degrees F
Frost-free period: 200 to 300 days
Farmland classification: Not prime farmland
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Cajon and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Cajon
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Backslope
Landform position (three-dimensional): Tread
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Alluvium
Typical profile
H1 - 0 to 6 inches: loamy sand
H2 - 6 to 12 inches: sand
H3 - 12 to 32 inches: loamy sand
H4 - 32 to 43 inches: loamy sand
H5 - 43 to 60 inches: coarse sandy loam
Properties and qualities
Slope: 5 to 15 percent
Depth to restrictive feature: More than 80 inches
Natural drainage class: Somewhat excessively drained
Runoff class: Very low
Capacity of the most limiting layer to transmit water (Ksat): High to very high (5.95 to 19.98 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 5 percent
Salinity, maximum in profile: Nonsaline to very slightly saline (0.0 to 2.0 mmhos/cm)
Available water storage in profile: Low (about 4.6 inches) Interpretive groups
Land capability classification (irrigated): None specified Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: A
Hydric soil rating: No
Minor Components
Unnamed, under granite
Percent of map unit: 10 percent
Hydric soil rating: No
Riverwash
Percent of map unit: 5 percent
Landform: Channels
Hydric soil rating: Yes
Custom Soil Resource Report
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Map Unit Setting
National map unit symbol: hkv0
Elevation: 800 feet
Mean annual precipitation: 4 inches
Mean annual air temperature: 72 to 73 degrees F
Frost-free period: 275 to 325 days
Farmland classification: Not prime farmland
Map Unit Composition
Carsitas and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Carsitas
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Footslope
Landform position (three-dimensional): Tread
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Gravelly alluvium derived from granite Typical profile
H1 - 0 to 10 inches: gravelly sand
H2 - 10 to 60 inches: gravelly sand
Properties and qualities
Slope: 0 to 9 percent
Depth to restrictive feature: More than 80 inches
Natural drainage class: Excessively drained
Runoff class: Very low
Capacity of the most limiting layer to transmit water (Ksat): High to very high (5.95 to 19.98 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 1 percent
Salinity, maximum in profile: Nonsaline to slightly saline (0.0 to 4.0 mmhos/cm) Available water storage in profile: Very low (about 3.0 inches) Interpretive groups
Land capability classification (irrigated): 4s
Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: A
Hydric soil rating: No
Custom Soil Resource Report
16 2.A.f
Packet Pg. 96
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 107
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Minor Components
Riverwash
Percent of map unit: 4 percent
Landform: Channels
Hydric soil rating: Yes
Carsitas
Percent of map unit: 4 percent
Hydric soil rating: No
Myoma
Percent of map unit: 4 percent
Hydric soil rating: No
Unnamed, stony or gravelly
Percent of map unit: 3 percent
Hydric soil rating: No
CdE—Carsitas gravelly sand, 9 to 30 percent slopes
Map Unit Setting
National map unit symbol: hkv1
Elevation: 800 feet
Mean annual precipitation: 4 inches
Mean annual air temperature: 72 to 73 degrees F
Frost-free period: 275 to 325 days
Farmland classification: Not prime farmland
Map Unit Composition
Carsitas and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Carsitas
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Backslope
Landform position (three-dimensional): Tread
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Gravelly alluvium derived from granite Typical profile
H1 - 0 to 10 inches: gravelly sand
H2 - 10 to 60 inches: gravelly sand
Properties and qualities
Slope: 9 to 30 percent
Depth to restrictive feature: More than 80 inches
Custom Soil Resource Report
17 2.A.f
Packet Pg. 97
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 108
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Natural drainage class: Excessively drained
Runoff class: Low
Capacity of the most limiting layer to transmit water (Ksat): High to very high (5.95 to 19.98 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 1 percent
Salinity, maximum in profile: Nonsaline to slightly saline (0.0 to 4.0 mmhos/cm) Available water storage in profile: Very low (about 3.0 inches) Interpretive groups
Land capability classification (irrigated): None specified Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: A
Hydric soil rating: No
Minor Components
Badland
Percent of map unit: 10 percent
Hydric soil rating: No
Carrizo
Percent of map unit: 2 percent
Hydric soil rating: No
Riverwash
Percent of map unit: 1 percent
Landform: Channels
Hydric soil rating: Yes
Myoma
Percent of map unit: 1 percent
Hydric soil rating: No
Unnamed, cobbles or stones
Percent of map unit: 1 percent
Hydric soil rating: No
ChC—Carsitas cobbly sand, 2 to 9 percent slopes
Map Unit Setting
National map unit symbol: hkv3
Elevation: 800 feet
Mean annual precipitation: 4 inches
Mean annual air temperature: 72 to 73 degrees F
Frost-free period: 300 days
Farmland classification: Not prime farmland
Map Unit Composition
Carsitas and similar soils: 85 percent
Custom Soil Resource Report
18 2.A.f
Packet Pg. 98
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 109
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Carsitas
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Summit
Landform position (three-dimensional): Interfluve
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Gravelly alluvium derived from granite Typical profile
H1 - 0 to 10 inches: cobbly sand
H2 - 10 to 60 inches: gravelly sand
Properties and qualities
Slope: 2 to 9 percent
Depth to restrictive feature: More than 80 inches
Natural drainage class: Excessively drained
Runoff class: Very low
Capacity of the most limiting layer to transmit water (Ksat): High to very high (5.95 to 19.98 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 1 percent
Salinity, maximum in profile: Nonsaline to slightly saline (0.0 to 4.0 mmhos/cm) Available water storage in profile: Very low (about 3.0 inches) Interpretive groups
Land capability classification (irrigated): 6s
Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: A
Hydric soil rating: No
Minor Components
Riverwash
Percent of map unit: 4 percent
Landform: Channels
Hydric soil rating: Yes
Carrizo
Percent of map unit: 4 percent
Hydric soil rating: No
Chuckawalla
Percent of map unit: 4 percent
Hydric soil rating: No
Unnamed
Percent of map unit: 3 percent
Hydric soil rating: No
Custom Soil Resource Report
19 2.A.f
Packet Pg. 99
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 110
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) CkB—Carsitas fine sand, 0 to 5 percent slopes
Map Unit Setting
National map unit symbol: hkv4
Elevation: 800 feet
Mean annual precipitation: 4 inches
Mean annual air temperature: 72 to 73 degrees F
Frost-free period: 275 to 325 days
Farmland classification: Not prime farmland
Map Unit Composition
Carsitas and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Carsitas
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Backslope
Landform position (three-dimensional): Tread
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Sandy alluvium derived from granite
Typical profile
H1 - 0 to 10 inches: fine sand
H2 - 10 to 60 inches: gravelly sand
Properties and qualities
Slope: 0 to 5 percent
Depth to restrictive feature: More than 80 inches
Natural drainage class: Excessively drained
Runoff class: Negligible
Capacity of the most limiting layer to transmit water (Ksat): High to very high (5.95 to 19.98 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 1 percent
Salinity, maximum in profile: Nonsaline to slightly saline (0.0 to 4.0 mmhos/cm) Available water storage in profile: Low (about 3.1 inches) Interpretive groups
Land capability classification (irrigated): 4e
Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: A
Hydric soil rating: No
Custom Soil Resource Report
20 2.A.f
Packet Pg. 100
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 111
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Minor Components
Myoma
Percent of map unit: 10 percent
Hydric soil rating: No
Coachella
Percent of map unit: 3 percent
Hydric soil rating: No
Unnamed, gravel surface
Percent of map unit: 2 percent
Hydric soil rating: No
CmE—Carsitas variant, 5 to 30 percent slopes
Map Unit Setting
National map unit symbol: hkv6
Elevation: -270 to 1,390 feet
Mean annual precipitation: 4 inches
Mean annual air temperature: 72 to 75 degrees F
Frost-free period: 275 to 325 days
Farmland classification: Not prime farmland
Map Unit Composition
Carsitas variant and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Carsitas Variant
Setting
Landform: Hills
Landform position (two-dimensional): Backslope
Landform position (three-dimensional): Side slope
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Alluvium derived from sandstone
Typical profile
H1 - 0 to 6 inches: fine sand
H2 - 6 to 18 inches: sand
H3 - 18 to 22 inches: weathered bedrock
Properties and qualities
Slope: 5 to 30 percent
Depth to restrictive feature: 18 to 22 inches to paralithic bedrock Natural drainage class: Well drained
Runoff class: High
Capacity of the most limiting layer to transmit water (Ksat): Moderately high (0.20 to 0.57 in/hr)
Custom Soil Resource Report
21 2.A.f
Packet Pg. 101
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 112
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 1 percent
Salinity, maximum in profile: Nonsaline to very slightly saline (0.0 to 2.0 mmhos/cm)
Available water storage in profile: Very low (about 1.1 inches) Interpretive groups
Land capability classification (irrigated): None specified Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: D
Hydric soil rating: No
Minor Components
Myoma
Percent of map unit: 10 percent
Hydric soil rating: No
Carsitas
Percent of map unit: 3 percent
Hydric soil rating: No
Rock outcrop
Percent of map unit: 2 percent
Hydric soil rating: No
CoB—Chuckawalla very gravelly sandy clay loam, 2 to 5 percent slopes Map Unit Setting
National map unit symbol: hkv9
Elevation: 400 to 1,000 feet
Mean annual precipitation: 4 inches
Mean annual air temperature: 72 degrees F
Frost-free period: 270 to 320 days
Farmland classification: Not prime farmland
Map Unit Composition
Chuckawalla and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Chuckawalla
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Backslope
Landform position (three-dimensional): Side slope
Down-slope shape: Linear
Across-slope shape: Linear
Custom Soil Resource Report
22 2.A.f
Packet Pg. 102
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 113
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Parent material: Gravelly alluvium
Typical profile
H1 - 0 to 12 inches: very gravelly sandy clay loam
H2 - 12 to 25 inches: very gravelly fine sandy loam
H3 - 25 to 60 inches: very gravelly sand
Properties and qualities
Slope: 2 to 5 percent
Depth to restrictive feature: More than 80 inches
Natural drainage class: Well drained
Runoff class: Low
Capacity of the most limiting layer to transmit water (Ksat): Moderately high to high (0.57 to 1.98 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 5 percent
Salinity, maximum in profile: Nonsaline to slightly saline (0.0 to 4.0 mmhos/cm) Available water storage in profile: Very low (about 2.1 inches) Interpretive groups
Land capability classification (irrigated): None specified Land capability classification (nonirrigated): 7s
Hydrologic Soil Group: B
Hydric soil rating: No
Minor Components
Alluvium or colluvium
Percent of map unit: 10 percent
Hydric soil rating: No
Carsitas
Percent of map unit: 3 percent
Hydric soil rating: No
Riverwash
Percent of map unit: 2 percent
Hydric soil rating: No
CoD—Chuckawalla very gravelly sandy clay loam, 5 to 15 percent slopes
Map Unit Setting
National map unit symbol: hkvb
Elevation: 400 to 1,000 feet
Mean annual precipitation: 4 inches
Mean annual air temperature: 72 degrees F
Frost-free period: 270 to 320 days
Farmland classification: Not prime farmland
Custom Soil Resource Report
23 2.A.f
Packet Pg. 103
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 114
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Map Unit Composition
Chuckawalla and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Chuckawalla
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Backslope
Landform position (three-dimensional): Side slope
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Gravelly alluvium
Typical profile
H1 - 0 to 12 inches: very gravelly sandy clay loam
H2 - 12 to 25 inches: very gravelly fine sandy loam
H3 - 25 to 60 inches: very gravelly sand
Properties and qualities
Slope: 5 to 15 percent
Depth to restrictive feature: More than 80 inches
Natural drainage class: Well drained
Runoff class: Medium
Capacity of the most limiting layer to transmit water (Ksat): Moderately high to high (0.57 to 1.98 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 5 percent
Salinity, maximum in profile: Nonsaline to slightly saline (0.0 to 4.0 mmhos/cm) Available water storage in profile: Very low (about 2.1 inches) Interpretive groups
Land capability classification (irrigated): None specified Land capability classification (nonirrigated): 7s
Hydrologic Soil Group: B
Hydric soil rating: No
Minor Components
Unnamed, sand
Percent of map unit: 10 percent
Hydric soil rating: No
Carrizo
Percent of map unit: 3 percent
Hydric soil rating: No
Carsitas
Percent of map unit: 2 percent
Hydric soil rating: No
Custom Soil Resource Report
24 2.A.f
Packet Pg. 104
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 115
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) CpA—Coachella fine sand, 0 to 2 percent slopes
Map Unit Setting
National map unit symbol: hkvc
Elevation: 40 feet
Mean annual precipitation: 2 to 4 inches
Mean annual air temperature: 72 degrees F
Frost-free period: 270 to 320 days
Farmland classification: Prime farmland if irrigated
Map Unit Composition
Coachella and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Coachella
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Footslope
Landform position (three-dimensional): Tread
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Alluvium derived from igneous rock
Typical profile
H1 - 0 to 11 inches: fine sand
H2 - 11 to 60 inches: sand
Properties and qualities
Slope: 0 to 2 percent
Depth to restrictive feature: More than 80 inches
Natural drainage class: Well drained
Runoff class: Very low
Capacity of the most limiting layer to transmit water (Ksat): High (1.98 to 5.95 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 1 percent
Salinity, maximum in profile: Nonsaline to slightly saline (0.0 to 4.0 mmhos/cm) Available water storage in profile: Low (about 3.6 inches) Interpretive groups
Land capability classification (irrigated): 3e
Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: A
Hydric soil rating: No
Custom Soil Resource Report
25 2.A.f
Packet Pg. 105
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 116
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Minor Components
Myoma
Percent of map unit: 5 percent
Hydric soil rating: No
Indio
Percent of map unit: 5 percent
Hydric soil rating: No
Gilman
Percent of map unit: 5 percent
Hydric soil rating: No
CpB—Coachella fine sand, hummocky, 2 to 5 percent slopes Map Unit Setting
National map unit symbol: hkvd
Elevation: 40 feet
Mean annual precipitation: 2 to 4 inches
Mean annual air temperature: 72 degrees F
Frost-free period: 270 to 320 days
Farmland classification: Prime farmland if irrigated
Map Unit Composition
Coachella and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Coachella
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Footslope
Landform position (three-dimensional): Tread
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Alluvium derived from igneous rock
Typical profile
H1 - 0 to 11 inches: fine sand
H2 - 11 to 60 inches: sand
Properties and qualities
Slope: 2 to 5 percent
Depth to restrictive feature: More than 80 inches
Natural drainage class: Well drained
Runoff class: Very low
Capacity of the most limiting layer to transmit water (Ksat): High (1.98 to 5.95 in/hr)
Depth to water table: More than 80 inches
Custom Soil Resource Report
26 2.A.f
Packet Pg. 106
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 117
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 1 percent
Salinity, maximum in profile: Nonsaline to slightly saline (0.0 to 4.0 mmhos/cm) Available water storage in profile: Low (about 3.6 inches) Interpretive groups
Land capability classification (irrigated): 3e
Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: A
Hydric soil rating: No
Minor Components
Myoma
Percent of map unit: 5 percent
Hydric soil rating: No
Gilman
Percent of map unit: 5 percent
Hydric soil rating: No
Indio
Percent of map unit: 5 percent
Hydric soil rating: No
CsA—Coachella fine sandy loam, 0 to 2 percent slopes
Map Unit Setting
National map unit symbol: hkvg
Elevation: 40 feet
Mean annual precipitation: 2 to 4 inches
Mean annual air temperature: 72 degrees F
Frost-free period: 270 to 320 days
Farmland classification: Prime farmland if irrigated
Map Unit Composition
Coachella and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Coachella
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Footslope
Landform position (three-dimensional): Tread
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Alluvium derived from igneous rock
Custom Soil Resource Report
27 2.A.f
Packet Pg. 107
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 118
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Typical profile
H1 - 0 to 10 inches: fine sandy loam
H2 - 10 to 40 inches: sand
H3 - 40 to 60 inches: loamy sand
Properties and qualities
Slope: 0 to 2 percent
Depth to restrictive feature: More than 80 inches
Natural drainage class: Well drained
Runoff class: Very low
Capacity of the most limiting layer to transmit water (Ksat): High (1.98 to 5.95 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 1 percent
Salinity, maximum in profile: Nonsaline to slightly saline (0.0 to 4.0 mmhos/cm) Available water storage in profile: Low (about 3.6 inches) Interpretive groups
Land capability classification (irrigated): 2e
Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: A
Hydric soil rating: No
Minor Components
Gilman
Percent of map unit: 5 percent
Hydric soil rating: No
Indio
Percent of map unit: 5 percent
Hydric soil rating: No
Myoma
Percent of map unit: 5 percent
Hydric soil rating: No
GP—Gravel pits and dumps
Map Unit Composition
Gravel pits: 50 percent
Dumps: 50 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Gravel Pits
Setting
Parent material: Sandy and gravelly alluvium
Custom Soil Resource Report
28 2.A.f
Packet Pg. 108
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 119
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Typical profile
H1 - 0 to 6 inches: extremely gravelly coarse sand
H2 - 6 to 60 inches: extremely gravelly sand
Interpretive groups
Land capability classification (irrigated): None specified Land capability classification (nonirrigated): 8
Hydric soil rating: No
Description of Dumps
Setting
Down-slope shape: Linear
Across-slope shape: Linear
Typical profile
H1 - 0 to 60 inches: variable
Interpretive groups
Land capability classification (irrigated): None specified Land capability classification (nonirrigated): 8
Hydric soil rating: No
LR—Lithic Torripsamments-Rock outcrop complex
Map Unit Setting
National map unit symbol: hkw2
Elevation: 650 to 9,000 feet
Mean annual precipitation: 2 to 15 inches
Mean annual air temperature: 45 to 72 degrees F
Frost-free period: 110 to 320 days
Farmland classification: Not prime farmland
Map Unit Composition
Lithic torripsamment and similar soils: 60 percent
Rock outcrop: 20 percent
Minor components: 20 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Lithic Torripsamment
Setting
Landform: Hills
Landform position (two-dimensional): Backslope
Landform position (three-dimensional): Side slope
Down-slope shape: Concave
Across-slope shape: Concave
Parent material: Sandy alluvium derived from sandstone
Typical profile
H1 - 0 to 4 inches: sand
H2 - 4 to 14 inches: bedrock
Custom Soil Resource Report
29 2.A.f
Packet Pg. 109
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 120
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Properties and qualities
Slope: 15 to 75 percent
Depth to restrictive feature: 4 inches to lithic bedrock Natural drainage class: Excessively drained
Runoff class: Very high
Capacity of the most limiting layer to transmit water (Ksat): Moderately high to very high (1.42 to 14.17 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Interpretive groups
Land capability classification (irrigated): None specified Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: D
Hydric soil rating: No
Description of Rock Outcrop
Typical profile
H1 - 0 to 60 inches: unweathered bedrock
Properties and qualities
Slope: 15 to 75 percent
Depth to restrictive feature: 0 inches to lithic bedrock Capacity of the most limiting layer to transmit water (Ksat): Moderately high (0.20 to 0.57 in/hr)
Interpretive groups
Land capability classification (irrigated): None specified Land capability classification (nonirrigated): 8
Hydric soil rating: No
Minor Components
Chuckawalla
Percent of map unit: 10 percent
Hydric soil rating: No
Carsitas
Percent of map unit: 4 percent
Hydric soil rating: No
Riverwash
Percent of map unit: 3 percent
Landform: Channels
Hydric soil rating: Yes
Rubble land
Percent of map unit: 3 percent
Hydric soil rating: No
Custom Soil Resource Report
30 2.A.f
Packet Pg. 110
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 121
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) MaB—Myoma fine sand, 0 to 5 percent slopes
Map Unit Setting
National map unit symbol: hkw3
Elevation: -200 to 1,800 feet
Mean annual precipitation: 2 to 4 inches
Mean annual air temperature: 72 to 75 degrees F
Frost-free period: 270 to 320 days
Farmland classification: Prime farmland if irrigated
Map Unit Composition
Myoma and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Myoma
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Toeslope
Landform position (three-dimensional): Tread
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Wind blown sandy alluvium
Typical profile
H1 - 0 to 18 inches: fine sand
H2 - 18 to 60 inches: sand
Properties and qualities
Slope: 0 to 5 percent
Depth to restrictive feature: More than 80 inches
Natural drainage class: Somewhat excessively drained
Runoff class: Negligible
Capacity of the most limiting layer to transmit water (Ksat): High to very high (5.95 to 19.98 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 5 percent
Salinity, maximum in profile: Nonsaline to very slightly saline (0.0 to 2.0 mmhos/cm)
Available water storage in profile: Low (about 4.8 inches) Interpretive groups
Land capability classification (irrigated): 3e
Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: A
Hydric soil rating: No
Custom Soil Resource Report
31 2.A.f
Packet Pg. 111
Attachment: 6. Constraints and Opportunities Report - Cathedral City Sphere of Influence (1241 : Thousand Palms SOI Fiscal Impact Report)

3.B.a
Packet Pg. 122
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Minor Components
Coachella
Percent of map unit: 4 percent
Hydric soil rating: No
Carsitas
Percent of map unit: 4 percent
Hydric soil rating: No
Unnamed, noncalcareous soils
Percent of map unit: 4 percent
Hydric soil rating: No
Riverwash
Percent of map unit: 3 percent
Landform: Channels
Hydric soil rating: Yes
MaD—Myoma fine sand, 5 to 15 percent slopes
Map Unit Setting
National map unit symbol: hkw4
Elevation: -200 to 1,800 feet
Mean annual precipitation: 2 to 4 inches
Mean annual air temperature: 72 to 75 degrees F
Frost-free period: 270 to 320 days
Farmland classification: Prime farmland if irrigated
Map Unit Composition
Myoma and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Description of Myoma
Setting
Landform: Alluvial fans
Landform position (two-dimensional): Footslope
Landform position (three-dimensional): Tread
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Wind blown sandy alluvium
Typical profile
H1 - 0 to 18 inches: fine sand
H2 - 18 to 60 inches: sand
Properties and qualities
Slope: 5 to 15 percent
Depth to restrictive feature: More than 80 inches
Custom Soil Resource Report
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Natural drainage class: Somewhat excessively drained
Runoff class: Very low
Capacity of the most limiting layer to transmit water (Ksat): High to very high (5.95 to 19.98 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Salinity, maximum in profile: Nonsaline to very slightly saline (0.0 to 2.0 mmhos/cm)
Available water storage in profile: Low (about 4.8 inches) Interpretive groups
Land capability classification (irrigated): 3e
Land capability classification (nonirrigated): 7e
Hydrologic Soil Group: A
Hydric soil rating: No
Minor Components
Coachella
Percent of map unit: 5 percent
Hydric soil rating: No
Unnamed, calcareous soils
Percent of map unit: 5 percent
Hydric soil rating: No
Riverwash
Percent of map unit: 3 percent
Landform: Channels
Hydric soil rating: Yes
Carsitas
Percent of map unit: 2 percent
Hydric soil rating: No
NaB—Niland sand, 2 to 5 percent slopes
Map Unit Setting
National map unit symbol: hkw6
Elevation: 300 feet
Mean annual precipitation: 4 inches
Mean annual air temperature: 72 degrees F
Frost-free period: 270 to 320 days
Farmland classification: Farmland of statewide importance Map Unit Composition
Niland and similar soils: 85 percent
Minor components: 15 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Custom Soil Resource Report
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3.B.a
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Description of Niland
Setting
Landform: Flood plains
Landform position (two-dimensional): Toeslope
Landform position (three-dimensional): Tread
Down-slope shape: Linear
Across-slope shape: Linear
Parent material: Alluvium
Typical profile
H1 - 0 to 21 inches: sand
H2 - 21 to 60 inches: silty clay
Properties and qualities
Slope: 2 to 5 percent
Depth to restrictive feature: More than 80 inches
Natural drainage class: Moderately well drained
Runoff class: Medium
Capacity of the most limiting layer to transmit water (Ksat): Moderately low to moderately high (0.06 to 0.20 in/hr)
Depth to water table: More than 80 inches
Frequency of flooding: None
Frequency of ponding: None
Calcium carbonate, maximum in profile: 5 percent
Salinity, maximum in profile: Very slightly saline to strongly saline (2.0 to 16.0 mmhos/cm)
Available water storage in profile: Moderate (about 7.1 inches) Interpretive groups
Land capability classification (irrigated): 3s
Land capability classification (nonirrigated): 7s
Hydrologic Soil Group: C
Hydric soil rating: No
Minor Components
Carsitas
Percent of map unit: 10 percent
Hydric soil rating: No
Imperial
Percent of map unit: 3 percent
Hydric soil rating: No
Rositas
Percent of map unit: 2 percent
Hydric soil rating: No
Custom Soil Resource Report
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) W—Water
Map Unit Composition
Water: 100 percent
Estimates are based on observations, descriptions, and transects of the mapunit.

Custom Soil Resource Report
35 2.A.f
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3.B.a
Packet Pg. 126
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) References
American Association of State Highway and Transportation Officials (AASHTO). 2004. Standard specifications for transportation materials and methods of sampling and testing. 24th edition.

American Society for Testing and Materials (ASTM). 2005. Standard classification of soils for engineering purposes. ASTM Standard D2487-00.

Cowardin, L.M., V. Carter, F.C. Golet, and E.T. LaRoe. 1979. Classification of wetlands and deep-water habitats of the United States. U.S. Fish and Wildlife Service FWS/OBS-79/31.

Federal Register. July 13, 1994. Changes in hydric soils of the United States.

Federal Register. September 18, 2002. Hydric soils of the United States.

Hurt, G.W., and L.M. Vasilas, editors. Version 6.0, 2006. Field indicators of hydric soils in the United States.

National Research Council. 1995. Wetlands: Characteristics and boundaries.

Soil Survey Division Staff. 1993. Soil survey manual. Soil Conservation Service.

U.S. Department of Agriculture Handbook 18. http://www.nrcs.usda.gov/wps/portal/ nrcs/detail/national/soils/?cid=nrcs142p2_054262
Soil Survey Staff. 1999. Soil taxonomy: A basic system of soil classification for making and interpreting soil surveys. 2nd edition. Natural Resources Conservation Service, U.S. Department of Agriculture Handbook 436. http:// www
.nrcs.usda.gov/wps/portal/nrcs/detail/national/soils/?cid=nrcs142p2_053577 Soil Survey Staff. 2010. Keys to soil taxonomy. 11th edition. U.S. Department of Agriculture, Natural Resources Conservation Service. http:// www
.nrcs.usda.gov/wps/portal/nrcs/detail/national/soils/?cid=nrcs142p2_053580 Tiner, R.W., Jr. 1985. Wetlands of Delaware. U.S. Fish and Wildlife Service and Delaware Department of Natural Resources and Environmental Control, W etlands
Section.

United States Army Corps of Engineers, Environmental Laboratory. 1987. Corps of Engineers wetlands delineation manual. W
aterways Experiment Station Technical
Report Y-87-1.

United States Department of Agriculture, Natural Resources Conservation Service.

National forestry manual. http://www.nrcs.usda.gov/wps/portal/nrcs/detail/soils/ home/?cid=nrcs142p2_053374
United States Department of Agriculture, Natural Resources Conservation Service.

National range and pasture handbook. http://www.nrcs.usda.gov/wps/portal/nrcs/ detail/national/landuse/rangepasture/?cid=stelprdb1043084 36 2.A.f
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3.B.a
Packet Pg. 127
Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) United States Department of Agriculture, Natural Resources Conservation Service.

National soil survey handbook, title 430-VI. http://www.nrcs.usda.gov/wps/portal/ nrcs/detail/soils/scientists/?cid=nrcs142p2_054242
United States Department of Agriculture, Natural Resources Conservation Service. 2006. Land resource regions and major land resource areas of the United States, the Caribbean, and the Pacific Basin. U.S. Department of Agriculture Handbook 296.
http://www.nrcs.usda.gov/wps/portal/nrcs/detail/national/soils/? cid=nrcs142p2_053624
United States Department of Agriculture, Soil Conservation Service. 1961. Land capability classification. U.S. Department of Agriculture Handbook 210. http:// www
.nrcs.usda.gov/Internet/FSE_DOCUMENTS/nrcs142p2_052290.pdf Custom Soil Resource Report
37 2.A.f
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3.B.a
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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Appendix B – Roads within the SOI

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Condition Location/Street name Length
(miles)
Length
(feet)
No of
Lanes Direction Width
(feet)
Width (per city
designations) Square Footage GP Designation* Due
Unpaved 1 Northern area; Portion of
28th Avenue** 0.65 3432 2 EW 18 88 302016
City Local Street
**Upgrade to 4
lane undivided
(Secondary
Highway)
Unpaved 2 North of 30th Avenue** 1.38 7286.4 2 EW 20 88 641203.2 City Local Street
**Upgrade to 4
lane undivided
(Secondary
Highway)
Unpaved 3 Robert Road Extention 0.25 1320 2 NS 36 60 79200 City Local Street Unpaved 4 Taylors Rs Extention 0.81 4276.8 2 NS 20 60 256608 City Local Street Unpaved 5 Vista Del Sol 0.74 3907.2 2 NS 24 60 234432 City Local Street Unpaved 6 La Cita 0.24 1267.2 2 EW 18 60 76032 City Local Street Unpaved 7 Near 31th Avenue** 0.14 739.2 2 NS 18 88 65049.6 City Local Street **Upgrade to 4
lane undivided
(Secondary
Highway)
Unpaved 8 Vista De Oro 1 5280 2 NS 24 60 316800 City Local Street Unpaved 9 Vista De Oro 1.19 6283.2 2 NS 24 60 376992 City Local Street Unpaved 10 - 1.97 10401.6 2 EW & NS 18 60 624096 City Local Street Unpaved 11 - 0.76 4012.8 2 EW & NS 18 60 240768 City Local Street Unpaved 12 - 1 5280 2 EW & NS 18 60 316800 City Local Street Unpaved 13 - 1 5280 2 EW & NS 24 60 316800 City Local Street Unpaved 14 - 1.29 6811.2 2 EW & NS 24 60 408672 City Local Street Unpaved 15 - 0.25 1320 2 NS 18 60 79200 City Local Street Unpaved 16 - 0.25 1320 2 NS 18 60 79200 City Local Street Unpaved 17 - 0.5 2640 2 NS 18 60 158400 City Local Street Unpaved 18 - 0.25 1320 2 NS 18 60 79200 City Local Street Unpaved 19 - 0.51 2692.8 2 EW 24 60 161568 City Local Street Unpaved 20 Conchita Road 0.35 1848 2 EW 24 60 110880 City Local Street Unpaved 21 Paradise Road 0.35 1848 2 EW 24 60 110880 City Local Street Unpaved 22 Near Perras Avenue 0.15 792 2 EW 18 60 47520 City Local Street Unpaved 23 Perras Avenue 0.16 844.8 2 EW 18 60 50688 City Local Street Unpaved 24 0.19 1003.2 2 EW 24 60 60192 City Local Street Unpaved 25 Jack Ivey Drive Extension 0.58 3062.4 2 NS 36 60 183744 City Local Street

15.96 84268.8 5376940.8
Total Cost $25,594,238.21
CC GP Designations: Local Collector = 60 feet ; Secondary Highway = 88 feet Total
Unpaved Road Within the SOI Area

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Condition Location/Street
name
Length
(miles)
Length
(feet) No of Lanes Direction Width (feet) Width (per city designations) Square Footage Division Notes Due
Paved Substandard 1 Northern area^ 2.7 14256 1 EW & NS 10 60 712800 City Collector ^Upgrade to 2 lane
undivided
Paved Substandard 2 Northern area^ 0.32 1689.6 1 EW & NS 10 60 84480 City Collector ^Upgrade to 2 lane
undivided
Paved Substandard 3 Northern area 0.51 2692.8 2 EW & NS 24 60 96940.8 City Collector Paved Substandard 4 Northern area^ 0.13 686.4 1 NS 10 60 34320 City Collector ^Upgrade to 2 lane
undivided
Paved Substandard 5 0.13 686.4 2 NS 18 60 28828.8 City Collector Paved Substandard 6 0.27 1425.6 2 NS 18 60 59875.2 City Collector Paved Substandard 7 1.3 6864 2 EW & NS 18 60 288288 City Collector Paved Substandard 8 0.19 1003.2 2 NS 18 60 42134.4 City Collector Paved Substandard 9 0.5 2640 2 NS 20 60 105600 City Collector Paved Substandard 10 Portion of 31th
Avenue** 0.37 1953.6 2 EW 18 88 136752
Secondary Highway
**Upgrade to 4 lane
undivided
(Secondary
Highway)
Paved Substandard 11 Vista Del Sol 0.51 2692.8 2 NS 20 60 107712 City Collector Paved Substandard 12 El Portal 0.12 633.6 2 EW 10 60 31680 City Collector Paved Substandard 13 Chuckawalla Road 0.48 2534.4 2 EW 18 60 106444.8 City Collector Paved Substandard 14 Conchita Road 0.12 633.6 2 EW 18 60 26611.2 City Collector Paved Substandard 15 0.12 633.6 2 EW 18 60 26611.2 City Collector Paved Substandard 16 Tchoupitoulas Ln 0.87 4593.6 2 NS 18 60 192931.2 City Collector Paved Substandard 17 Chimayo Road 0.49 2587.2 2 NS 18 60 108662.4 City Collector Paved Substandard 18 0.34 1795.2 2 EW & NS 18 60 75398.4 City Collector Paved Substandard 19 Chase School Road 0.87 4593.6 2 EW & NS 20 60 183744 City Collector Paved Substandard 20 0.55 2904 EW & NS 40 60 58080 City Collector

10.89 57499.2 2507894.4
Total Cost $11,937,577.34
Paved Partially 1 28th Avenue & Rio
Del Sol Road 0.4 2112 2 EW & NS 24 60 76032 City Collector Paved Partially 2 date Garden Drive 0.22 1161.6 2 NS 18 60 48787.2 City Collector Paved Partially 3 30th Avenue** 0.24 1267.2 2 EW 20 88 86169.6 Secondary Highway
**Upgrade to 4 lane
undivided
(Secondary
Highway)
Paved Partially 4 el Centro Way 0.24 1267.2 2 EW 20 60 50688 City Collector Paved Partially 5 0.42 2217.6 NS 40 60 44352 City Collector

1.52 8025.6 306028.8
Total Cost $1,456,697.09
0 Paved Full 1 Watt Ct 0.23 1214.4 2 EW 48 60 City Collector Sidewalk on two
sides
Paved Full 2 Petland Pl 1.1 5808 2 EW & NS 38 60 City Collector Sidewalk on two
sides
Paved Full 3 Front Street 0.1 528 2 NS 38 60 City Collector Sidewalk on two
sides
Paved Full 4 Hill Street 0.1 528 2 NS 38 60 City Collector Sidewalk on two
sides
Total
Total
Paved Roads (including the Substandard Roads) Within the SOI Area Paved Roads (including the Substandard Roads) Within the SOI Area

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Paved Full 5 Metroplex Drive 0.5 2640 2 EW & NS 58 60
City Collector
Industrial area;
Sidewalk on two
sides
Paved Full 6 Manufacturing Road 0.57 3009.6 2 EW & NS 52 60 City Collector Sidewalk on two
sides
Paved Full 7 Ramon Road* 4.26 22492.8 2 EW 48 88 899712 City Collector Sidewalk on two sides
*Upgrade to 6 lane
divided (Arterial
Highway)
Paved Full 8 Shelter Drive 0.16 844.8 2 NS 18 60
City Collector
Mostly sidewalk on
two sides;
Residential
Paved Full 9 Robert Road 0.76 4012.8 2 48 60
City Collector
Mostly sidewalk on
two sides;
Residential &
Commercial
Paved Full 10 Via Pared 1.25 6600 2 EW & NS 48 60
City Collector
Mostly sidewalk on
two sides;
Residential
Paved Full 11 Via Ventena 0.44 2323.2 2 NS 48 60
City Collector
Mostly sidewalk on
two sides;
Residential
Paved Full 12 Roseview Ln 0.25 1320 2 40 60
City Collector
Mostly sidewalk on
two sides;
Residential
Paved Full 13 Thelma Avenue 0.25 1320 2 40 60
City Collector
Partially sidewalk
on two sides;
Residential
Paved Full 14 Lynn Street 0.26 1372.8 2 EW & NS 38 60
City Collector
Partially sidewalk
on two sides;
Residential &
Commercial
Paved Full 15 Monte Vista Way 0.91 4804.8 2 NS 28 60
City Collector
Partially sidewalk
on two sides;
Residential
Paved Full 16 Cll Jessica 0.92 4857.6 2 NS 28 60
City Collector
Partially sidewalk
on two sides;
Residential
Paved Full 17 Arbol Real Avenue 0.98 5174.4 2 NS 28 60
City Collector
Partially sidewalk
on two sides;
Residential
Paved Full 18 Las Flores Way 0.91 4804.8 2 NS 28 60
City Collector
Partially sidewalk
on two sides;
Residential
Paved Full 19 Sierra Del Sol 1 5280 2 NS 28 60
City Collector
Partially sidewalk
on two sides;
Residential
Paved Full 20 Cll Helene 0.66 3484.8 2 NS 32 60
City Collector
Partially sidewalk
on two sides;
Residential
Paved Full 21 El Centro Way 1.31 6916.8 2 EW & NS 32 60 City Collector
Partially sidewalk
on two sides;
Residential

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Paved Full 22 Del Norte Way 0.61 3220.8 2 EW 32 60
City Collector
Partially sidewalk
on two sides;
Residential &
Vacant
Paved Full 23 30th Avenue** 0.26 1372.8 2 EW 32 88 76876.8 City Collector
No proper
sidewalks;
Residential
**Upgrade to 4 lane
undivided
(Secondary
Highway)
Paved Full 24 La Canada Way 0.74 3907.2 2 EW 32 60
City Collector
Partially sidewalk
on two sides;
Residential &
Commercial
Paved Full 25 Del Norte Way 0.12 633.6 2 EW 32 60
City Collector
No proper
sidewalks;
Residential
Paved Full 26 Callita Bell 229 feet 229 feet 2 EW 32 60 City Collector
No proper
sidewalks;
Residential
Paved Full 27 Callita Barbara 225 feet 225 feet 2 EW 32 60 City Collector
No proper
sidewalks;
Residential
Paved Full 28 callita Bonnie 260 feet 260 feet 2 EW 32 60 City Collector
No proper
sidewalks;
Residential
Paved Full 29 Via Palmsas 1 5280 2 NS 32 60
City Collector
No proper
sidewalks;
Residential,
Commercial, Vacant
Paved Full 30 Desert Moon Drive 1 5280 2 NS 32 60
City Collector
No proper sid
walks; Residential
& Vacant
Paved Full 31 Desert palm Drive 0.8 4224 2 NS 32 60
City Collector
No proper
sidewalks;
Residential &
Vacant
Paved Full 32 Arabian Ct 0.1 528 2 EW 28 60
City Collector
No proper
sidewalks;
Residential &
Vacant
Paved Full 33 Jack Clark Ct 0.1 528 2 EW 28 60
City Collector
No proper
sidewalks;
Residential &
Vacant
Paved Full 34 Taylors Rs 0.11 580.8 2 NS 28 60
City Collector
No proper
sidewalks;
Residential,
Commercial, Vacant
Paved Full 35 Varner Road 5.18 27350.4 4 to 6 EW & NS 24 60 City Collector No sidewalk Paved Full 36 Haskell Road 1 5280 2 to 4 EW & NS 75 60
City Collector
Sidewalks on two
sides, Residential &
Vacant

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Paved Full 37 Harry Oliver Trail 0.38 2006.4 2 NS 32 60 City Collector
Sidewalk on one
side, Commercial &
Vacant
Paved Full 38 Rosemary Ln 0.1 528 2 NS 34 60
City Collector
Partially sidewalk
on two sides;
Residential &
Vacant
Paved Full 39 Arbol Real Avenue 0.1 528 2 NS 38 60
City Collector
Partially sidewalk
on two sides;
Residential &
Vacant
Paved Full 40 Monterey Avenue 0.1 528 4 NS 75 60
City Collector
Sidewalks on two
sides, Commercial
& Vacant
Paved Full 41 Boca Chica Trail 0.68 3590.4 2 EW 34 60
City Collector
Partially one
sidewalk;
Residential
&Vacant
Paved Full 42 Cook Street** 0.69 3643.2 2 NS 42 88 167587.2 City Collector
Partially one
sidewalk;
Residential
&Vacant
**Upgrade to 4 lane
undivided
(Secondary
Highway)
Paved Full 43 Shadow Valley
Drive 0.72 3801.6 2 EW & NS 24 60
City Collector
Partially one
sidewalks;
Residential ,
Commercial &
Vacant
Paved Full 44 1.58 8342.4 2 24 60 City Collector No sidewalk Paved Full 45 Classic Club Blvd 0.34 1795.2 4 EW & NS 54 60 City Collector
Mostly sidewalks
on two sides;
Residential ; Private
Paved Full 46 0.1 528 2 EW 54 60 City Collector No sidewalk Paved Full 47 Armand Way 0.18 950.4 2 EW 38 60 City Collector No sidewalk Paved Full 48 Rio Del Sol Road* 1.48 7814.4 2 NS 24 60
City Collector
Partially sidewalk
on one side;
Commercial
&Vacant
*Upgrade to 6 lane
divided (Arterial
Highway)

34.39 83107.2 1144176
Total Cost $5,446,277.76
Grand Total $18,840,552.19
Total

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) FISCAL IMPACT ANALYSIS OF THE CATHEDRAL CITY SPHERE OF INFLUENCE UNDER POST-ANNEXATION CONDITIONS Prepared for City of Cathedral City 68-700 Avenida Lalo Guerrero Cathedral City, CA 92234 Prepared by Terra Nova Planning & Research, Inc.® 42635 Melanie Place, Suite #101 Palm Desert, California 92211 November 2018

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 1 FISCAL IMPACT ANALYSIS for the CITY OF CATHEDRAL CITY SPHERE OF INFLUENCE Table of Contents I. INTRODUCTION, PROJECT DESCRIPTION AND DEMOGRAPHICS ...................... 3 II. BUILDOUT ASSUMPTIONS ........................................................................................... 8 A. Buildout Assumptions ................................................................................................... 8 1. Residential .......................................................................................................... 8 2. Commercial ...................................................................................................... 10 3. Industrial ........................................................................................................... 11 III. POTENTIAL REVENUES ............................................................................................... 13 A. Potential Revenue Sources to the City of Cathedral City ........................................... 13 1. Annual Revenues .............................................................................................. 13 2. One-Time Revenues ......................................................................................... 23 IV. POTENTIAL COSTS ....................................................................................................... 25 A. Potential Costs to the City of Cathedral City .............................................................. 25 1. Annual Costs .................................................................................................... 25 2. One-Time Costs ................................................................................................ 29 V. COST/REVENUE ANALYSIS ........................................................................................ 32 A. Cost/Revenue Summaries ........................................................................................... 32 B. Conclusion .................................................................................................................. 32 LIST OF TABLES Table 1 Cathedral City SOI Land Use and Build Out Projections ............................................. 6 Table 2 Property Tax Revenue Summary Table ...................................................................... 15 Table 3 Property Tax in Lieu of Motor Vehicle License Fee Revenue Summary Table ........ 16 Table 4 Property Transfer Tax Revenue Summary Table ....................................................... 17 Table 5 Components of the 8.75% Sales Tax .......................................................................... 18

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 2 Table 6 Sales Tax & Transient Users Tax Revenue Summary Table ...................................... 19 Table 7 Measure A Revenue Summary Table ......................................................................... 19 Table 8 Cannabis Tax Revenue Summary Table ..................................................................... 20 Table 9 Transient Occupancy Tax Revenue Summary Table .................................................. 21 Table 10 Highway User Gas Tax Revenue Summary Table ..................................................... 22 Table 11 Utility Users Tax Revenue Summary Table ............................................................... 22 Table 12 Franchise Fees Revenue Summary Table ................................................................... 23 Table 13 Development Fees Revenue Summary Table ............................................................. 24 Table 14 Art in Public Places Fees Revenue Summary Table ................................................... 24 Table 15 Costs of General Government Summary Table .......................................................... 26 Table 16 Public Works Costs (Per Capita) ................................................................................ 26 Table 17 Police Protection Costs ............................................................................................... 27 Table 18 Costs of Fire Protection .............................................................................................. 28 Table 19 Costs of Roadway Maintenance .................................................................................. 29 Table 20 Roadway Improvement Costs ..................................................................................... 30 Table 21 Cost and Revenue Summary Table (with Cannabis Tax) ........................................... 32 Table 22 Cost and Revenue Summary Table (without Cannabis Tax) ...................................... 34 Table 23 City Developer Impact Fee Revenues (One time only) .............................................. 36 APPENDICES Appendix A Detailed Cost and Revenue Tables Appendix B Fire Department Analysis of Capital Outlay and Personnel Costs for the Sphere of Influence

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 3 I. INTRODUCTION, PROJECT DESCRIPTION AND DEMOGRAPHICS Background The City of Cathedral City extended its Sphere of Influence north of the I-10 freeway was expanded through two separate approvals by the Riverside County Local Agency Formation Commission (LAFCO). The first occurred in January of 2011, and the second in September of that year. In addition, the most recent annexations occurred in the City’s North City area in December 2007, and in January 2015, when approximately 680 acres between Da Vall and Rio del Sol, immediately north of the City limits were annexed (the Messenger Annexation). The City’s current Sphere encompasses 8,600± acres, generally located within the Thousand Palms community of interest. The purpose of this analysis is to consider the potential revenues and costs associated with future annexation of the Sphere into the City of Cathedral City. For purposes of this analysis, the entire 8,300± acres of the Sphere area have been considered, net of acreage within the Interstate 10 right-of-way. This document evaluates the potential fiscal impacts associated with initial annexation and eventual buildout of the Sphere. The analysis includes both annual costs and revenues at four time periods, based on the level of development occurring at that time, and one-time costs and revenues. Methodologies and assumptions are discussed below, using the most recently available fiscal and demographic data, tax rates, city fees, and other information to reflect current conditions in the Sphere. Introduction The County of Riverside Local Agency Formation Commission (LAFCO) is responsible for approving annexations proposed by cities in Riverside County. This fiscal impact analysis stems from the Riverside County Guide to Preparing Fiscal Impact Reports (1995), but has been updated based on current factors for a variety of revenue and cost categories, State and County distributions, recently completed analysis for other jurisdictions, and City-specific costs and revenues. It addresses the costs and revenues which are projected to be generated through build out of the annexation area. For purposes of this analysis, build out is presumed to occur in four phases:

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 4 Phase 1 The first phase analyzes conditions immediate upon annexation with no additional development. This condition presents costs and revenues as they would be immediately upon city annexation. Phase 2 The second phase analyzes conditions at ten percent (10%) build out. Development projections were calculated utilizing assumptions that are further explained in the Build Out Assumptions methodology section. Phase 3 The third phase analyzes conditions at fifty percent (50%) build out. The projections were obtained utilizing assumptions that are further explained in the Build Out Assumptions methodology section. Phase 4 The final phase analyzes conditions at one hundred percent (100%) buildout. The projections were obtained utilizing assumptions that are further explained in the Build Out Assumptions methodology section. The analysis applies the appropriate revenue and cost factors to the proposed land use designations assigned in the Cathedral City General Plan Land Use Map to the Sphere area. These designations were applied to the Sphere at the time it was designated by LAFCO, and are expected to be the designations the City would apply to Sphere lands, should annexation proceed1. The revenue and cost categories used to develop this fiscal analysis are described in Sections III and IV of this document, respectively, and include both annual and one-time revenues and costs. Assumptions associated with each land use category are described in Section II. The cost/revenue analysis is shown in Section V. Both costs and revenues throughout this analysis are calculated in current dollars. It is important to note that no inflation adjustment has been made. Although costs and revenues will rise over the build out period after annexation, the ratio of costs to revenues is not expected to significantly change. As a result, the analysis in constant dollars is representative of the framework of costs and revenues likely to be experienced by the city throughout the time period analyzed. 1 The zoning designations of the Sphere are anticipated to be further refined as part of the pre-zoning required prior to annexation. The cost of this additional refinement is factored into the fiscal analysis in the Government Costs section.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 5 Project Description The purpose of this fiscal analysis is to consider the potential financial impacts to the City of Cathedral City associated with annexation of its Sphere, an area that is currently under the jurisdiction of Riverside County. The Sphere is located immediately east and north of the Interstate 10 (I-10) transportation corridor in areas where urban development is expected to occur and intensify in the future. The Sphere area is bounded by the city’s corporate limits on the west and south. The unincoporated area in which the Sphere occurs is known as the community of Thousand Palms. The lands considered in this analysis are a majority of the 9,700 acres total acres that are within the Thousand Palms community of interest boundary. The area not within the Sphere is primarily land within the Coachella Valley Multiple Species Habitat Conservation Plan (CVMSHCP). Table 1 shows the proposed land use designations in the Sphere area, which include lands designated for residential, commercial, mixed use, industrial, and open space uses. Population Estimates The 2010 Census reported a population of 7,715 in Thousand Palms, and population is estimated to total 7,875 in 20172. It is estimated that, at build out, the population will be 61,504. This estimated build out population is based on the current population living in the existing 7,174 residential units in the area and the construction of an additional 17,244 new residential dwelling units. It has also been assumed that future housing units would have a household size of 3.11 persons, consistent with the City’s current household size. 2 Data USA Website; https://datausa.io/profile/geo/thousand-palms-ca/. Accessed July 2018.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 6 Table 1 Cathedral City SOI Land Use and Build Out Projections Land Use Category1 ROW Acres Acres Total Acres Vacant % of Total Lands Developed % of Total Lands Total Acres % of Total Acres Existing SF/Units Potential SF/Units Build out SF/Units Build out Population Residential High Density Residential (RH) (11-20 du/ac) 7.1 199.9 207.0 140.7 70.4% 59.3 29.7% 199.9 3% 131 2,110 2,241 Medium Density Residential (RM) (4.5-10 du/ac) 8.6 210.6 219.2 128.7 61.1% 82.0 38.9% 210.6 3% 3,233 965 4,198 Low Density Residential (LR) (2-4.5 du/ac) 441.5 1,034.0 1,475.5 538.8 52.1% 495.1 47.9% 1,034.0 14% 3,189 1,819 5,008 Estate Residential (RE) (0-2 du/ac) 74.2 1,062.1 1,136.3 751.4 70.8% 310.7 29.3% 1,062.1 14% 621 1,503 2,124 Total Residential Acreage 531.4 2,506.6 3,037.9 1,559.5 62.2% 947.0 37.8% 2,506.6 33% 7,174 6,396 13,570 27,767 Commercial General Commercial (CG) 28.1 97.1 125.2 63.7 65.6% 33.4 34.4% 97.1 1% 609,971 609,971 Resort Residential (3-6.5du/ac) - 15.8 15.8 - 0.0% 15.8 100.0% 15.8 0% - - Total Commercial Acreage 28.1 112.9 141.0 63.7 56.4% 49.3 43.6% 112.9 2% 299,763 609,971 909,734 Mixed Use Mixed Use - Urban (Residential Units) 53.0 660.0 712.9 283.6 71.6% 112.4 28.4% 396.0 N/A - 10,848 10,848 33,738 Mixed Use - Urban (Commercial Square Footage) 53.0 660.0 712.9 189.1 71.6% 74.9 28.4% 264.0 N/A 82,156 1,811,896 1,894,052 Total Mixed Use Acreage 53.0 660.0 712.9 472.7 80.8% 187.3 19.2% 660.0 8% - - - Industrial Industrial (I) 44.2 1,733.3 1,777.5 1,360.1 78.5% 373.2 21.5% 1,733.3 23% 20,144,069 20,144,069 Business Park (BP) 8.8 75.8 84.6 73.8 97.3% 2.0 2.7% 75.8 1% 1,092,267 1,092,267 Total Industrial Acreage 53.0 1,809.1 1,862.1 1,433.9 79.3% 375.2 20.7% 1,809.1 24% 1,431,431 21,236,336 22,667,767

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 7 Table 1 Cathedral City SOI Land Use and Build Out Projections Land Use Category1 ROW Acres Acres Total Acres Vacant % of Total Lands Developed % of Total Lands Total Acres % of Total Acres Existing SF/Units Potential SF/Units Build out SF/Units Build out Population Open Space Open Space - Other (OS-O) - - - - 0.0% - 0.0% - 0% N/A N/A N/A Open Space - Public (OS-P) 3.8 2,014.7 2,018.5 2,014.7 100.0% - 0.0% 2,014.7 27% N/A N/A N/A Hillside Reserve (1 du/20 ac) 1.9 398.5 400.4 12.3 3.1% 386.2 96.9% 398.5 5% 0 1 1 Total Open Space Acreage 5.7 2,413.1 2,418.8 2,026.9 84.0% 386.2 16.0% 2,413.1 32% N/A 1 1 ROW Total ROW Acreage 128.1 0.0 128.1 N/A N/A N/A N/A N/A N/A N/A N/A N/A Totals 799.2 7,501.7 8,300.9 5,556.7 74.1% 1,870.1 24.9% 7,426.8 100% - - - 61,5042 1 Existing residential units based on Riverside County Assessor's data. Existing square footage based on GIS analysis of aerial photographs - represents total square footage estimates of buildings within commercial, mixed use and industrial zones. Future conditions of mixed use, commercial, and industrial land uses are calculated using the following assumptions: mixed use residential development is assumed to occur at 75% of the maximum density permitted and 22% lot coverage for mixed use developing as commercial; 22% lot coverage for commercial zones, and 34% lot coverage for industrial zones. Future population calculated based on existing City household size of 3.11 persons. 2 This total is based on existing population 7,875 persons plus the projected population of (24,418 X 3.11 = 53,629)

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 8 II. BUILDOUT ASSUMPTIONS Introduction The buildout assumptions used to calculate the costs and revenues associated with the Sphere area are presented in this section. They are based on existing City land use designations that are equivalent to Riverside County land use designations. There are no specific projects proposed in the Sphere which have requested annexation, nor are major projects under construction in the Sphere. Recent press coverage of a proposed Coachella Sports and Entertainment Stadium Authority complex at Cook Street and Varner Road indicates that a potential project could be developed at this location. Therefore, the analysis is based on general assumptions regarding build out of the lands, consistent with the City of Cathedral City General Plan land use designations. A. Buildout Assumptions 1. Residential Density Build out density was calculated based on a realistic development pattern, consistent with existing development in the City and region. • In the Mixed Use – Urban category, the residential component’s acreage was estimated on the basis that 60% of the total MU-Urban acreage is developed as residential, and that of that acreage 85% of the maximum density is constructed. This allows for landscaping and parking areas, but assumes the most intense development pattern, given the intent of the designation as an urban, high intensity land use. • The Low, Medium and High Density residential designations assume that 75% of the maximum permitted density is constructed, with the remainder to be utilized for landscaping, open space, parking and circulation areas. • In the Estate Residential and Hillside Reserve category, projected development assumes that 100% of the allowed density is constructed, since these designations require large lots, and full development is achievable, even with the City’s parking and storm water retention requirements. Population Adding the existing Sphere population of 7,875, and applying the City’s average household size of 3.11 persons per household to 17,244 future dwelling units (53,629 residents), yields an estimated buildout population of 61,504 residents. Where per capita factors have been applied in this report, they are based on this population estimate.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 9 Coachella Valley Multiple Species Habitat Conservation Plan (CVMSHCP) Conservation Lands The Sphere area contains two Conservation Areas, as defined by the CVMSHCP. These lands have development restrictions which potentially limit site disturbance to 10% of a parcel. The land in the Edom Hill Conservation Area (911 acres) is all designated as Hillside Reserve. 393 acres in the Thousand Palms Conservation Area are designated for Estate Residential, allowing up to 2 units per acre. Both these designations are restrictive, and allow limited development. Even with the restrictions imposed by the Conservation Area requirements, these lands would still be expected to develop at the prescribed density. Limitations would be likely for the 68 acres of Low Density Residential and the 15 acres of Industrial lands in the Thousand Palms Conservation Area. However, these limitations would not significantly impact the buildout of the Sphere as a whole. A number of strategies are available to the City to preserve Conservation Area lands, including using other Open Space designated lands. As a result, development on these Conservation lands has been included in the analysis. High Density Residential This designation allows for the greatest diversity and highest density of residential development, providing for a full range of multi-family dwellings, including apartments and condominiums. It is also suitable for planned communities and affordable and senior housing, where smaller units and higher densities may be appropriate. Multi-family development provides for Planned Unit Development could be comprised of a varying range of residential types and on-site amenities. These lands are typically located in close proximity to neighborhood commercial uses, thereby maximizing pedestrian access to these essential services. Mobile home parks or subdivisions with PUD-type development may also be allowed. The maximum permitted density is 20 dwelling units per acre. As described above, build out in this designation is assumed at 15 units per acre. This analysis assumes the development of 2,110 high density residential units on 140.7 vacant acres. Medium Density Residential This designation provides for moderately low to medium density subdivisions and Planned Unit Developments (PUDs). It serves to transition between lower and more moderate (medium) residential densities. Product types typically range from single-family to multi-family development, with much of existing development being duplex units on 8,000 square foot lots. The maximum permitted density is 10 units per acre. As described above, the build out in this designation is assumed at 7.5 units per acre. There are 128.7 acres of vacant Medium Density Residential land in the study area, which would result in 965 new residential units. Resort Residential This low-density designation is intended to accommodate single-family and attached residential development in a master planned resort setting. On-site amenities typically include golf courses, tennis and swimming facilities, as well as tourist/resort-serving commercial uses. This designation also allows hotels/motels and ancillary visitor and tourist-serving commercial uses. Lands designated Resort Residential total 15.8 acres, and are currently built out. No additional development is anticipated.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 10 Low Density Residential This designation provides for single-family residential development on individual lots typically ranging from about 7,500 to 20,000 square feet. These lands serve to buffer more dense residential development from estate residential uses and may be appropriate in areas with some site constraints. The maximum permitted density is 4.5 units per acre. As described above, the build out in this designation is assumed at 3.4 units per acre. This analysis assumes 1,819 future residential units on the 538.8 vacant acres of Low Density Residential land in the Sphere. Estate Residential This designation provides for larger lot subdivisions with single-family residential development. This designation is envisioned for rural areas, as well as lands which may also be constrained by topography or other natural restrictions. This type of development may also incorporate a “greenbelt” buffer to help define the city’s urban boundary. There are 751.4 vacant acres of Estate Residential land in the Sphere. This will result in an additional 1,503 residential units at build out. Hillside Reserve This designation provides for development densities of one dwelling unit per 20 acres. Development could be precluded on these lands due to topographic, hydrologic, aesthetic or other constraints. In such cases, development rights could be preserved by density transfer or similar mechanism. The 12 acres of vacant land in this land use designation results in 1 additional potential unit. 2. Commercial Development Intensity The General Commercial designation assumes a twenty-two percent (22%) building coverage, based on typical commercial development in the City and region. This accounts for driveways, parking lots, stormwater retention/detention facilities, and similar ancillary facilities. General Commercial This designation provides for the development of a wide variety of commercial center, ranging from general merchandising and strip commercial centers, to community and regional scale centers, including supermarket anchors and big box retailers. Community-scale development should take advantage of regional transportation networks and be designed to accommodate transit facilities. Such centers may also host ancillary office components, as well as regional institutions and services. The Sphere contains 63.65 acres of vacant General Commercial land. These lands are assumed to generate 609,971 square feet of new commercial development.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 11 3. Industrial Development Intensity The Industrial and Business Park designations assume a thirty-four percent (34%) building coverage. This accounts for driveways, parking lots, stormwater retention/detention facilities, and similar ancillary facilities. Industrial This designation provides for the development of any and all industrial uses operating entirely in enclosed buildings, and those requiring limited and screenable outdoor storage. Examples include clean manufacturing operations, warehousing and distribution facilities, mini warehouse storage, and a variety of light manufacturing businesses. This designation also allows conditional and/or discretionary development of more intense industrial uses with the potential to generate substantial levels of noise, smoke, dust, glare, traffic, vibration, or other nuisances. There are 1,360.13 acres of vacant Industrial land in the Sphere, which have the potential to generate 20,144,069 square feet of space. Development in this designation is assumed to include 5% of total square footage in cannabis cultivation, or a total of approximately 1 million square feet. The balance is expected to develop in uses typical of light industrial development, including warehousing, distribution, and similar uses. Business Park This designation is intended for light industrial and related uses which are compatible with one another, as well as with neighboring residential and commercial uses. Other potentially appropriate uses include professional offices, including administrative, corporate, institutional, legal, medical, financial, insurance, real estate, and government offices. There are 73.75 acres of vacant Business Park lands in the Sphere, with a potential to generate up to 1,092,267 square feet of space. This land use is expected to develop in small warehouse/office/showroom uses, auto-related services, and similar facilities.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 12 4. Mixed Use – Urban The Mixed Use – Urban designation will facilitate both commercial and residential development. This analysis assumes, consistent with the requirements of the designation, that 60% of the currently vacant lands will develop as high density residential development, and 40% will develop as commercial development. This fiscal analysis assumes twenty-two percent (22%) building coverage for commercial acreage, and assumes residential acreage will develop at eighty-five (85%) of the maximum density permitted. This designation includes a mix of residential (up to 45 dwelling units per acre), commercial retail, office and public gathering spaces. Uses may be mixed either horizontally or vertically with an emphasis on allowing major commercial businesses and “big box” development. For purposes of this analysis, it has been assumed that of the 472.69 acres of vacant Mixed Use land, 283.61 acres would develop into 10,848 high density residential units and 189.07 acres would develop into 1,811,896 square feet of commercial space.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 13 III. Potential Revenues Buildout of the Sphere area has the potential to generate revenues to the City of Cathedral City. The following discussion describes potential revenue sources to the City. The discussion first addresses on-going annual revenues generated as development occurs, based on the Phases described in Section I of this document. Each revenue source is described, the assumptions used in the analysis detailed where appropriate, and a summary table provided for each revenue source. This discussion is followed by a discussion of one-time revenues, which include Development Impact Fees and Art in Public Places fees. A. Potential Revenue Sources to the City of Cathedral City 1. Annual Revenues Property Tax A property tax of 1% is imposed on the value of real property (land and permanently attached improvements, such as buildings) and tangible personal property (movable property) located within the state. In 1986, California voters passed a constitutional amendment (Article XIIIA of the State Constitution) which provided an exception to the 1% limitation. Local governments and school districts may increase the percentage above 1% to finance the issuance of general obligation bonds.3 The City participates in the Teeter Plan, an alternative method for property tax apportionment without regard for delinquencies. With the Teeter program, the city’s current secured property tax apportionment is increased by the taxes that were typically delinquent. It is important to note that property tax revenues will be reduced due to the City’s mandated contributions to Education Revenue Augmentation Funds (ERAF). In fiscal year 1992, the State of California required cities and towns to shift a percentage of their property tax revenues to a countywide ERAF account to fund public schools. Based on prior annexations into the City of Cathedral City, the City receives approximately half (3.5%) of the property tax revenue collected by the County, and the remaining 3.5% is contributed to ERAF.4 3 Cathedral City Adopted Budget Fiscal Years 2017-18 and 2018-19 4 Tami Scott, Director of Administrative Services, personal communication, August 10, 2018.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 14 In this analysis, properties flagged as “exempt” in Riverside County Assessor’s parcel records are not included in property tax revenue calculations. In the Sphere, these properties are largely owned by CVWD, California Department of Transportation (CalTrans), the County of Riverside, and California Department of Fish and Wildlife. Additional properties owned by non-profit organizations receive tax exemptions and/or reductions. These include 90.4 acres owned by Xavier High School and parcels owned by the Berger Foundation.5 Property tax revenue calculations have been adjusted to account for these cases. The fiscal analysis assumes that all taxable properties within the Sphere are taxed at a rate of 1% of valuation, and the collection rate is 100%. Future development in the potential annexation area will include residential, commercial and quasi-industrial development. In order to determine property value, and associated property tax generation for this development, a number of sources were utilized. The primary source is the City’s current average value of building permits, based on land use type. For existing development, the County provided existing property valuations for all parcels in the Sphere. This valuation was used to calculate existing property tax collected by the County, and anticipated property tax to the City upon annexation for existing development and vacant property. Land value is included in the Existing Development category. Therefore, property tax revenue for future development is calculated on the value of new construction only. The following table summarizes these assumptions. 5 Based on property tax information provided by County of Riverside GIS database

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 15 Table 2 Property Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Potential annual property tax revenue to City from existing development $6,439 $6,439 $6,439 $6,439 Potential annual property tax revenue to City from future High Density Residential development $0 $14,537 $72,683 $145,367 Potential annual property tax revenue to City from future Medium Density Residential development $0 $6,649 $33,244 $66,487 Potential annual property tax revenue to City from future Low Density Residential development $0 $20,958 $104,790 $209,581 Potential annual property tax revenue to City from future Estate Residential development $0 $17,319 $86,593 $173,186 Potential annual property tax revenue to City from future General Commercial development $0 $4,310 $21,552 $43,104 Potential annual property tax revenue to City from future Industrial development $0 $142,348 $711,740 $1,423,481 Potential annual property tax revenue to City from future Business Park development $0 $7,719 $38,593 $77,185 Potential annual property tax revenue to City from future Mixed Use - Urban development (commercial component) $0 $12,804 $64,019 $128,038 Potential annual property tax revenue to City from future Mixed Use - Urban development (residential component) $0 $125,017 $625,087 $1,250,175 Total Property Tax Revenue at Phase Buildout $6,439 $358,099 $1,764,740 $3,523,042 Property Tax in Lieu of Motor Vehicle License Fees Prior to 2004, the City received revenues from State Vehicle License Fees which were directly tied to population. In cities where population growth rose steadily, including Cathedral City, these fees represented considerable annual revenues. In 2004, however, the State substantially reduced the fee calculation, and instead assured local jurisdictions that the revenue loss would be offset by an increase in property tax based on valuation. The fiscal impact analysis assumes that the City will continue to receive property tax in lieu of Motor Vehicle License Fees at a rate of 0.96%, as shown in Table 3.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 16 Table 3 Property Tax in Lieu of Motor Vehicle License Fee Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Potential annual MVL in-lieu property tax revenue to City from existing development $75 $75 $75 $75 Potential annual property tax revenue to City from future High Density Residential development $0 $2,074 $10,368 $20,736 Potential annual MVL in-lieu property tax revenue to City from future Medium Density Residential development $0 $948 $4,742 $9,484 Potential annual property tax revenue to City from future Low Density Residential development $0 $2,990 $14,948 $29,896 Potential annual MVL in-lieu .property tax revenue to City from future Estate Residential development $0 $2,470 $12,352 $24,704 Potential annual MVL in-lieu property tax revenue to City from future General Commercial development $0 $168 $842 $1,684 Potential annual MVL in-lieu property tax revenue to City from future Industrial development $0 $20,305 $101,526 $203,052 Potential annual MVL in-lieu property tax revenue to City from future Business Park development $0 $1,101 $5,505 $11,010 Potential annual MVL in-lieu property tax revenue to City from future Mixed Use - Urban development (commercial component) $0 $1,826 $9,132 $18,264 Potential annual MVL in-lieu property tax revenue to City from future Mixed Use - Urban development (residential component) $0 $168 $842 $1,684 Total MVL in-lieu Property Tax Revenue at Phase Buildout $75 $32,126 $160,331 $320,588 Property Transfer Tax Property Transfer Tax is generated from changes in real property ownership. For analysis purposes, estimated Property Transfer Tax revenues are calculated based on a tax rate of $1.10 per $1,000 (or 0.11%) of the unencumbered property value. This analysis further assumes that for a transfer within an incorporated jurisdiction, the revenue is divided evenly between the County (50%) and the jurisdiction (50%). Upon the sale of a new unit, the unencumbered value (average 80%) of the property is subject to the property transfer tax.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 17 Table 4 Property Transfer Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total tax revenue from existing residential development (at phase buildout) $54,053 $54,053 $54,053 $54,053 Total tax revenue from future High Density dev. (at phase buildout) $0 $12,830 $51,321 $64,151 Total tax revenue from future Medium Density dev. (at phase buildout) $0 $5,868 $23,473 $29,341 Total tax revenue from future Low Density dev. (at phase buildout) $0 $17,947 $71,788 $89,735 Total tax revenue from future Estate Res. dev. (at phase buildout) $0 $14,830 $59,321 $74,152 Total tax revenue from future Mixed Use - Urban dev. (at phase buildout) $0 $107,056 $428,222 $535,278 Total property transfer tax revenue at phase buildout $54,053 $212,584 $688,179 $846,710 Property values are stated in year 2018 dollars, and the same property values used in the property tax revenue evaluation, above, are used in this analysis. A resale rate of one percent (1%) is assumed for single-family attached development. This analysis assumes no resales for commercial and industrial development, as such sales are infrequent and sporadic. As a result, the analysis is conservative, and revenues to the city from property transfer tax are likely to be higher than represented herein. Sales Tax and Transient Users Tax In accordance with California law, taxes are paid on in-state purchases and items purchased out of state for use in California. Retailers are responsible for reporting and paying sales tax to the state via the State Board of Equalization. When an out-of-state or online retailer does not collect the tax for an item delivered to California, the purchaser may owe “use tax,” which is a tax on the use, storage, or consumption of personal property in California. Taxpayers can report and pay their use tax on their California income tax returns; registered sellers report their use tax on their sales and use tax returns. The current sales and use tax rate collected in Cathedral City is 8.75%, which is allocated as shown below.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 18 The City receives 1% of the sales tax generated in its jurisdiction. In addition, with the passage of Measure H (2010) and Measure B (2014), the City imposes a 1% transaction and use tax on all retailers. This revenue is in addition to the 1% sales tax, and has represented about 60% of the 1% sales tax collected in the City. The fiscal analysis estimates total taxable sales that could be generated for each build out phase, then calculates 1.60% of taxable sales to determine how much sales tax revenue would be generated to the City. The fiscal impact model projects potential sales tax revenue that could be generated on currently vacant commercial lands in the Sphere. It assumes that future development of commercial lands will result in twenty-two (22%) lot coverage. The average annual sales estimators from the Urban Land Institute’s (ULI) 2008 “Dollars and Cents of Shopping Centers” are applied to the number of square feet dedicated to taxable sales. The fiscal analysis calculates sales tax generation from commercial development, based on the following ULI definition. “General Commercial” development: includes neighborhood scale shopping centers conveniently located near residential areas, and a variety of smaller commercial centers, specialty retail shops and personal service businesses. This type of development generates an annual average of $326.13 per square foot in taxable sales. Although limited sales tax revenue may be generated by the industrial development which will occur in the Sphere, the amount is expected to be negligible. As a result, industrial development is assumed to generate no taxable sales in this analysis.

Table 5 Components of the 8.75% Sales Tax Rate Jurisdiction 3.6875% State of California General Fund 0.2500% State of California General Fund 0.5000% State Local Revenue Fund (1991) 0.5000% State Local Public Safety Fund (1993) 1.0625% State Local Revenue Fund (2011) 1.2500% City/County Local Tax (0.25% County Transportation Funds / 1% City/County Operations) 0.5000% District Rate - Riverside County Measure A (transit) 1.0000% District Rate – Cathedral City 8.75% TOTAL RATE Source: City of Cathedral City Finance Department – Kevin Biersack, August 2018.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 19 Table 6 Sales Tax & Transient Users Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total sales tax revenue from existing commercial development $1,407,769 $1,407,769 $1,407,769 $1,407,769 Total sales tax revenue from future commercial development $0 $286,459 $1,432,294 $2,864,588 Total sales tax revenue from future mixed use - urban development $0 $850,915 $4,254,577 $8,509,155 Total sales tax revenue from all development $1,407,769 $2,545,143 $7,094,640 $12,781,511 Measure A Revenue Of the 8.75% sales tax collected in Riverside County, 0.50% is contributed to the Measure A Fund for regional and local transportation projects. Of Measure A funds available countywide, approximately 24% is distributed to the Coachella Valley region.6 These funds are further allocated for specific purposes: 50% for State highways and regional road improvements, 35% for local streets and roads, and 15% for transit (Sunline Transit Agency). Of the 35% for local streets and roads, about 11% goes to the City. This percentage is based on a formula that accounts for Cathedral City’s total number of dwelling units and total taxable sales. Table 7 Measure A Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Measure A revenue from existing commercial development $4,065 $4,065 $4,065 $4,065 Total Measure A revenue from future commercial development $0 $827 $4,136 $8,271 Total Measure A revenue from future mixed use - urban development $0 $2,457 $12,285 $24,570 Total Measure A revenue from all development $4,065 $7,349 $20,486 $36,907 Cannabis Tax On November 4, 2014, the Cathedral City voters approved Measure N, a new tax on Cannabis businesses operating under California’s medical cannabis laws. The new tax allows for collection of up to 15% tax on each dollar of gross receipts received by a dispensary. On November 8, 2016, Measure P was approved allowing the City to impose up to $25 per square foot on 6 Andrea Zureick, Riverside County Transportation Commission, personal communication, November 1, 2011.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 20 cannabis cultivation space and up to a $1 per gram/unit of cannabis concentrate and for cannabis-infused products. On April 26, 2017, City Council approved a cultivation tax at $15 per square foot and manufacturing tax at for cannabis oil to crude: $0.05, distillate: $0.10, and for exotic or boutique concentrate $0.40 per gram/unit. Fiscal Year 2015-16 revenues were $46,881 and are projected to be $394,388 at the end of 2016-17. Currently, there are 11 dispensaries, 10 cultivators and 6 cannabis manufacturers in operation, with additional cultivation and manufacturing facilities anticipated to open in 2017-18. For purposes of this analysis, it has been assumed that 5% of Industrial lands would develop for cannabis cultivation. This would result in just over 1 million square feet of space for this use. It also assumes that the Industrial land currently under Tribal control would not develop for this use, based on the federal prohibitions currently in place. Because of the current focus on cultivation facilities, this analysis assumes that the land developed is entirely developed for cultivation purposes. The likely reality is that some manufacturing facilities will develop, but they are expected to be smaller, and their production levels cannot be estimated. Therefore, only cultivation has been assumed, and the associated cultivation tax calculated. Table 8 Cannabis Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total cannabis tax revenue from future Industrial development $0 $1,208,644 $7,554,026 $15,108,052 Total cannabis tax revenue from all development $0 $1,208,644 $7,554,026 $15,108,052 It must be noted that these estimates are highly speculative. No substantive research exists on the total potential demand associated with combined recreational and medicinal use of cannabis in the City, region or State. It is possible that the market will continue to grow, but equally possible that it will plateau, or even recede, depending on societal forces that cannot be predicted. Transient Occupancy Tax (TOT) Transient Occupancy Tax is collected from individuals when they occupy a hotel or motel room. In Cathedral City, TOT is collected at a rate of twelve percent (12%). The City also receives limited TOT revenue from RV Parks, timeshares (non-owner stays), and vacation rentals. Potential TOT revenues are based on the number of hotel/motel rooms that could be constructed on Sphere lands, the average nightly room rate charged, and the average occupancy rate. There is currently one hotel with 115 hotel rooms in the Sphere. The room rates at this property are lower than the current average room rate in the City. Therefore, room rates have been calculated at $95.00 per night. In addition, annualized occupancy has been assumed to be 65%.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 21 The number of hotel/motel rooms that could be constructed assumes that two new hotels will be constructed in the future. The first projected hotel would be built during Phase 3 and the second hotel would be built during Phase 4. Room rates for future development, particularly future development located on the I-10 corridor, are expected to be consistent with a room rate of $145.00/night and an estimated occupancy rate of 65%. This rate is an average that reflects more modest hotels/motels located throughout the city. As tourism activity can be expected to fluctuate seasonally in the region on an annualized basis, a 65% occupancy rate is conservative. The following table summarizes assumptions made in the Fiscal Impact Analysis model for TOT. Table 9 Transient Occupancy Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual TOT Revenue from Existing Hotels $311,035 $311,035 $311,035 $311,035 Annual TOT Revenue from Future Hotels $0 $0 $516,019 $1,032,038 Total Annual TOT Revenue from all development (at phase buildout) $311,035 $311,035 $827,054 $1,343,072 Highway User Gas Tax The State of California imposes a per gallon tax on all gasoline purchases. This fiscal impact analysis projects future highway users gas tax revenues by assuming a per capita ratio. The ratio was calculated by dividing the total revenue from the state gas tax fund that is allocated to the city7 by the current population. The following table summarizes these assumptions. 7 Page 137 of the Cathedral City Biennial Budget – State Gas Tax Fund

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 22 Table 10 Highway User Gas Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Gas Tax Revenue from Existing Residential Development $315,000 $315,000 $315,000 $315,000 Total Annual Gas Tax Revenue from Future Residential Development $0 $214,515 $1,072,577 $2,145,154 Total Annual Gas Tax Revenue from all development $315,000 $529,515 $1,387,577 $2,460,154 Utility Users Tax Cathedral City adopted its Utility Users’ Tax (UUT) in 2008. The City imposes a UUT rate of 3% on the telecommunication, cable, electricity, gas, and solid waste. A per captia ratio was utilized to calculated potential revenues from UUT by dividing the total UUT revenues collected by the city in the fiscal year 2017-18 by the current population. Revenues were then projected by each phase’s projected population. Table 11 Utility Users Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Utility Users Tax Revenue from Existing Residential Development $416,824 $416,824 $416,824 $416,824 Total Annual Utility Users Tax Revenue from Future Residential Development $0 $283,860 $1,419,299 $2,838,599 Total Annual Utility Users Tax Revenue from all residential development $416,824 $700,684 $1,836,123 $3,255,423 Franchise Fees Revenue Franchise fees represent approximately 5% of total General Fund revenues. The City grants franchises to utility companies for the use of City streets and rights-of-way. The Public Utility Commission (PUC) limits electric and gas franchise fees to 2% and cable franchise fees to 5% of gross receipts. Currently, the City collects electric franchise fees from Southern California Edison and gas franchise fees from The Gas Company at the rate of 2% of gross receipts arising from the use, operation or possession of the franchise, and cable franchise fees from Time Warner Cable, Inc. at the rate of 5% of gross receipts.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 23 In addition to utilities, the City also charges a solid waste hauler’s franchise fee. The current franchise agreement is with Burrtec Waste Industries, Inc. The current franchise rate is 12% of gross receipts levied/paid semi-annually on property tax bills. The City has granted Sunline Transit Agency use of public right-of-way for bus shelters within the city. Franchise fees from transportation account for approximately 0.5 % of total franchise fees. The following methodology and assumptions were used in this fiscal impact analysis to project potential future franchise fee revenues associated with Sphere annexation. Similar to the Highway Gas Tax and Utility Users Tax revenue assumptions, a per captia ratio was utilized to calculate potential revenues from franchise fees by dividing the total franchise fees revenues collected by the city in the fiscal year 2017-18 by the current population. Revenues were then projected by each phase’s projected population. The following table summarizes these assumptions. Table 12 Franchise Fees Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Franchise Fees Revenue from Existing Residential Development $320,040 $320,040 $320,040 $320,040 Total Annual Franchise Fees Revenue from Future Residential Development $0 $217,948 $1,089,738 $2,179,476 Total Annual Franchise Fees Revenue from all residential development $320,040 $537,988 $1,409,778 $2,499,516 2. One-Time Revenues Development Impact Fees As the Sphere area develops, the City will collect Development Impact Fees (DIF) based on its adopted DIF fee schedule. Pursanant to Government Code 66001 and 66006, local agencies must submit an annual report that details their DIF fees and make it available to the public. In conjuction with the Annual Report for Fiscal Year 2016/17, the Annual AB 1600 Development Fee Report for the City of Cathedral City Fiscal Year 2016/17 (AB 1600 Report) provides rates for current DIF fees. This fiscal impact analysis projects potential future DIF revenues using the AB 1600 Report’s rates.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 24 Table 13 Development Fees Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) New Residenital Development (includes Mixed Use - Urban residenital component) $0 $6,611,406 $26,445,625 $33,057,031 New Commercial Development (includes Mixed Use - Urban commercial component) $0 $277,361 $1,109,444 $1,386,805 New Industrial Development $0 $801,892 $3,223,951 $4,091,378 Total Development Impact Fee Revenue from all new development at phase buildout $0 $7,690,659 $30,779,019 $38,535,214 Art in Public Places Fees This fund is reserved for maintaining public artwork throughout the City. For non-residential development, the fee is 1% of 90% valuation of the structure or the construction and installition of public art8. Table 14 Art in Public Places Fees Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) New Commercial Development (includes Mixed Use - Urban commercial component) $0 $228,147 $912,588 $1,140,735 New Business Park Development $0 $102,895 $514,474 $1,028,948 New Industrial Development $0 $1,897,632 $7,590,527 $9,488,159 Total Art in Public Places Revenue from all new development at phase buildout $0 $2,228,674 $9,017,589 $11,657,842 8 Per Ordinance No. 538; AB1600 Report provided by Tami Scott, Director of Adminstrative Services.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 25 IV. Potential Costs A. Potential Costs to the City of Cathedral City 1. Annual Costs Future development of lands in the Sphere will not only generate additional revenues, but will also generate additional municipal costs. There will be expenditures for general government services as well as the expansion and/or extension of infrastructure, utilities, roads and other public services, particularly public safety. The fiscal model projects the City’s costs of providing general government services, public safety, and transportation/roadway maintenance to new development on lands in the area. Costs of General Government Costs of General Government are funded through the City’s General Fund. Costs to the city associated with general government include city-wide services, such as employee salaries and benefits, postage, printing, travel, equipment maintenance and repairs, contract services, computers, vehicles and other items necessary for the day-to-day functioning of government. It includes public and community services, such as code compliance and animal control, as well as municipal and support services. These are further described in the Constraints and Opportunities Analysis. For purposes of this analysis, a per capita factor has been applied to calculate government costs. In general, the population of a city generate the greatest demand for services, while the commercial and industrial components of a City’s development pattern generate a low demand for general government services. This analysis uses information provided in the city’s FY 2017-2018 budget to translate costs into a per capita factor for General Fund expenditures. The per capita factor is $304.00. It applies that amount to the anticipated buildout population. The result is the estimated cost of providing general government services to future residents.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 26 Table 15 Costs of General Government Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Residential development Total Annual Cost from existing Residential development at phase buildout $2,394,000 $2,394,000 $2,394,000 $2,394,000 Total Annual Cost from future High Density Residential Development at phase buildout $0 $199,464 $997,321 $1,994,642 Total Annual Cost from future Medium Density Residential Development at phase buildout $0 $91,230 $456,151 $912,302 Total Annual Cost from future Low Density Residential Development at phase buildout $0 $171,936 $859,682 $1,719,363 Total Annual Cost from future Estate Residential Development at phase buildout $0 $142,079 $710,394 $1,420,788 Total Annual Cost from future Mixed Use - Urban Residential Development at phase buildout $0 $1,025,621 $5,128,106 $10,256,211 Total Annual Govt. Costs at Phase Buildout $2,394,000 $4,024,331 $10,545,653 $18,697,307 Public Works Costs In addition, the City expends funds for Public Works activities.9 These include street signage, traffic signal maintenance, drainage system maintenance, landscape maintenance, and minor improvement projects. Expenditures associated with Public Works activities are divided between General, Measure A and State Gas Tax Fund. In order to calculate the per capita factor for Public Works costs, the salaries and operational expenses associated with each of these funds was combined. The resulting per capita factor applied for Public Works activities is $53.19. This results in anticipated expenditures as shown in Table 16. Table 16 Public Works Costs (Per Capita)

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Public Works costs from Existing Residential Development $418,871 $418,871 $418,871 $418,871 Total Annual Public Works costs from Future Residential Development $0 $285,252 $1,426,259 $2,852,518 Total Annual Public Works costs from all residential development $418,871 $704,123 $1,845,130 $3,271,389 9 Page 97 – Cathedral City Biennial Budget

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 27 Costs of Police Protection The City currently provides approximately 0.90 officers for every 1,000 residents.10 On this basis, an additional 7 police officers will be required immediately upon annexation, and a total of 68 additional officers will be required at build out of the Sphere. Should the Sphere be annexed, the City will be responsible for providing law enforcement and fire protection services. To estimate future police service costs, this fiscal analysis developed a per capita cost for police services. The costs associated with providing this level of service were developed by dividing the total Police Department budget by the current City population. In addition, the Chief of Police developed annual costs for personnel and equipment necessary to serve the Sphere upon annexation. These costs totaled $2.51 million, and are consistent with the per capita factor calculation. This approach assures that not only personnel, but also equipment and administration costs, are factored into future costs. The per capita cost associated with police services is $319.84. Table 17 summarizes the total anticipated costs associated with police services. Table 17 Police Protection Costs

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Police Protection costs from Existing Residential Development $2,518,732 $2,518,732 $2,518,732 $2,518,732 Total Annual Police Protection costs from Future Residential Development $0 $1,715,259 $8,576,297 $17,152,595 Total Annual Police Protection costs from all residential development $2,518,732 $4,233,992 $11,095,029 $19,671,327 Costs of Fire Protection The City currently operates three fire stations, and includes 43 sworn fire personnel, 2 administrative personnel and one fire inspector. This represents a ratio of 0.77 firefighters per 1,000 population. On this basis, the City would require an additional 18 firefighters, 1 fire inspector and 1 administrative assistant immediately upon annexation, and 85 at build out of the area. The Fire Department also would need to purchase and equip the existing fire station in Thousand Palms, and would require a second fire station in the eastern portion of the Sphere in the future. These costs are addressed under one-time costs in the next section. 10 Priority 1 – Emergency Calls (e.g. Shooting, Cutting, Disturbance Active Shooter Foot, Kidnapping in Progress), Priority 2 – Prompt Calls (e.g. Robbery, Fire, Criminal Assault), and Priority 3 – General Services Calls (e.g. Missing Person, Intoxicated Person, Drug House, Burglary).

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 28 The Fire Department conducted an analysis of the costs associated with staffing the existing fire station on an annual basis. This resulted in an annual cost of $3.9 million immediately upon annexation. For purposes of this analysis, it has been assumed that this annual operational cost would be maintained through Year 10, as development is anticipated to be limited, and costs will remain regardless of the amount of development occurring in the area. Beyond the Year 10 Scenario, when at least 50% of the area would have developed, it is assumed that the costs of the annual operation of the station would be related to the costs of providing fire services on a per capita basis. For future development, a per capita factor was developed, in the same manner as for police services, based on the total fire department budget. The per capita factor is $200.92. On this based, Table 18 summarizes total annual costs associated with providing fire services to the Sphere. Table 18 Costs of Fire Protection

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Costs of Operating Fire Station(s) $3,902,732 $3,902,732 $7,684,634 $7,684,634 Total Annual Costs of Fire Service at Phase Buildout $3,902,732 $3,902,732 $7,684,634 $7,684,634 Costs of Roadway Maintenance The costs associated with maintenance were calculated on the basis of existing road miles in the area, and anticipated road miles as development occurs. These future roadways, as well as existing roadways, will require annual maintenance. These costs are reflected in Table 19. In addition, the City will be responsible for the reconstruction of currently sub-standard roadways. Sixeen (16) miles of roads are currently unpaved, 13 miles of roadway are partially improved, and 34 miles of roads will require some level of widening or improvement. Upon incorporation, the City will be responsible for maintaining, constructing, and widening existing roadways. These costs are provided in the discussion of One-Time Costs and Table 20, below. On the basis of existing costs associated with roadway maintenance in the City, provided by City staff, Table 19 provides annual maintenance costs.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 29 Table 19 Costs of Roadway Maintenance

Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Existing Roadway Data No. of existing public paved road miles 34.39 34.39 34.39 34.39 Future Roadway Projections No. of future public paved road miles 0.00 8.53 34.10 42.63 Factor of public paved road miles per city acre 97.35 97.35 97.35 97.35 No. of future public paved road miles at phase buildout 0.00 8.53 42.63 85.25 Cost of Road Maintenance - Existing and Future Roads Total public paved road miles 34.39 42.92 77.02 119.64 Annual Cost of Roadway Maintenance (per road mile) $5,030.56 $5,030.56 $5,030.56 $5,030.56 Annual Costs of street maintenance & resurfacing for all roads $173,001 $215,886 $387,429 $601,856 Annual Cost of Roadway Maintenance at Phase Buildout $173,001 $215,886 $387,429 $601,856 2. One-Time Costs Fire Station Costs The City’s Fire Department will need to obtain new equipment and facilities to serve future development in the Sphere. Phase 1 would require the purchase of the existing fire station on Robert Road, and Phase 3 would require the construction of a second fire station, with their respective equipment costs. The Fire Department prepared a cost estimate for both stations. The costs for the existing fire station would be approximately $9,544,870 and the second fire station would result in an initial cost of $14,584,870. In total costs associated with the opening of two additional fire stations would total $24,129,740.11 These costs represent capital outlays only, and do not include annual operating costs (provided above). Police Equipment Costs In addition to the costs associated with personnel, the Police Department will require additional vehicles and radios to field officers in the Sphere upon annexation. The Police Department estimates that 4 Patrol Ready Police Interceptors and 10 radios will be required immediately upon annexation, at a total cost of $267,512. It can be expected that these capital expenses would be repeated as development increases in the Sphere, and additional officers are required. 11 Appendix B - Fire Department Analysis of Capital Outlay and Personnel Costs for the Sphere of Influence

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 30 Road Construction Costs Within the Sphere of Influence there are approximately 16 miles of unpaved roads. In order to calculate the costs associated with these improvements, the City’s current per square foot factor for road construction, provided by the Public Works Department, was utilized. Upon incorporation, the City will be responsible for constructing these roads which would cost the City up to $25,594,238. In addition, the City would also be responsible for maintaining and upgrading 47 miles of paved roads which currently are substandard (ranging from missing sidewalks to under-sized paved widths and roadway widening to comply with anticipated build out requirements) which would cost the City an additional $18,840,552. Although these costs would not be incurred immediately upon annexation, a total of $44,434,790 in capital improvement projects to improve and widening existing roads is anticipated. Table 20 Roadway Improvement Costs Road’s Current Condition Total Length (miles) Description Estimated Cost Fully paved 34
These roads are currently fully paved. Sidewalks are not provided along some portions on these roads. Approximately 6.69. miles of these roads along Ramon Road, 30th Avenue, Cook Street, and Rio Del Sol Road will need to be upgraded to Secondary Highway (4-lane undivided; 88 feet wide). $5,446,277
Partially paved 2 These roads are generally substandard and will need to be improved/widened to City local street standards. Of the total 13 miles of substandard roads, approximately 0.37 miles (along 31st Avenue) will need to be upgraded and widened to Secondary Highway (4-lane undivided; 88 feet wide). The balance will require widening to City local road standards. $11,937,577
Substandard 11 $1,456,697
Unpaved 16
Approximately 16 miles of roads in the SOI are unpaved and would require full improvements to Local Streets (2-lanes; 60 feet wide). These unpaved roads also include portions of 28th Avenue (0.65 miles), 30th Avenue (1.38 miles), and 31st Avenue (0.14 miles), which will need to be upgraded to Secondary Highway (4-lane undivided; 88 feet wide). $25,594,238
Grand Total Cost $44,434,790 Source: Appendix B (Road way Existing Condition and Future Upgradation Cost).

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 31 The majority of the unpaved roads are surrounded by undeveloped lands where future development will be responsible for its share of roadway improvements. Therefore, the City would recover some of the widening expenses from future developments. However, the rebuilding of existing streets, the build out of sub-standard streets where development occurs, and the on-going maintenance of streets will be the responsibility of the City. The City has established transportation impact fees through its Development Impact Fee schedule. These are assessed on a per unit basis for single and multi-family residential development, and per square foot for commercial and industrial development. These fees would be applied to new development within the Sphere of Influence after incorporation. Because of the added territory involved in the Sphere of Influence, the Development Impact Fee study would need to be updated to encompass the added territory, should incorporation occur. Gas taxes and Local Transportation Funds are also used for the construction and maintenance of streets and highways. These revenues would increase proportionally should the Sphere of Influence be incorporated.

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 32 V. COST/REVENUE ANALYSIS A. Cost/Revenue Summaries The following conclusions are based on the assumptions described above. It should be noted that all values are in Year 2018 dollars and are subject to rounding. B. Conclusion The SOI currently contains 7,875 residents. Build out of vacant lands in the SOI in accordance with the City’s General Plan land use designations is projected to result in an additional 53,629 residents. Therefore, the total buildout population is projected to be 61,504. Annexation and build out of the Sphere would increase the City population by 61,504. The costs associated with serving the Sphere area and its population are projected to be $49.9 million at the end of the build out period. The most significant costs are those from Police Protection ($19.7 million annually at build out), closely followed by General Government operations ($18.7 million annually at build out). Build out of the area is expected to result in annual revenues of approximately $43.4 million at the end of the build out period. Therefore, the Sphere is expected to result in an annual deficit for the City ranging from $6.3 million at annexation to $6.6 million at build out. Table 21 Cost and Revenue Summary Table (with Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES General Fund: Property Tax $6,439 $358,099 $1,764,740 $3,523,042 Property Tax in Lieu of MVF $75 $32,126 $160,331 $320,588 Property Transfer Tax $54,053 $212,584 $688,179 $846,710 Cannabis Cultivation Tax $0 $1,208,644 $7,554,026 $15,108,052 Local Sales Tax &Transaction and Use Tax $1,407,769 $2,545,143 $7,094,640 $12,781,511

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Attachment: 7. Fiscal Impact Analysis of the Cathedral City Sphere of Influence Under Post-Annexation Conditions (1241 : Thousand Palms

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 33 Table 21 Cost and Revenue Summary Table (with Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Utility Users Tax $416,824 $700,684 $1,836,123 $3,255,423 Franchise Fees $320,040 $537,988 $1,409,778 $2,499,516 Transient Occupancy Tax $474,737 $474,737 $990,756 $1,506,775 Subtotal Annual General Fund Revenue at Phase Buildout $2,679,936 $6,070,005 $21,498,573 $39,841,616 Restricted Funds: Highway Users Gas Tax $315,000 $529,515 $1,387,577 $2,460,154 Measure A $4,065 $7,349 $20,486 $36,907 Subtotal Annual Restr. Fund Revenue at Phase Buildout $319,065 $536,864 $1,408,063 $2,497,060 Total All Potential Revenues at Phase Buildout $2,999,001 $6,606,869 $22,906,636 $42,338,677 Interest Earnings: Historic Average Interest Rate on 90-Day Treasury Bills 2.43% 2.43% 2.43% 2.43% Anticipated Interest Earned on Revenues $72,876 $160,547 $556,631 $1,028,830 Total Potential Annual Revenues at Phase Buildout $3,071,876 $6,767,416 $23,463,267 $43,367,506 ANNUAL COSTS General Fund: Costs of General Government $2,394,000 $4,024,331 $10,545,653 $18,697,307 Costs of Public Works $418,871 $704,123 $1,845,130 $3,271,389 Costs of Police Protection $2,518,732 $4,233,992 $11,095,029 $19,671,327 Costs of Fire Protection $3,902,732 $3,902,732 $7,684,634 $7,684,634 Costs of Roadway Maintenance $173,001 $215,886 $387,429 $601,856 Total Potential Annual Costs at Phase Buildout $9,407,336 $13,081,064 $31,557,876 $49,926,513 Potential Cashflow at Phase Buildout -$6,335,460 -$6,313,648 -$8,094,609 -$6,559,006 The SOI includes the Thousand Palms community but is otherwise largely undeveloped. Due to the residential nature of land uses in the Sphere, buildout will significantly increase residential units, while generating a moderate increase in commercial and industrial development. As a

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Attachment: 7. Fiscal Impact Analysis of the Cathedral City Sphere of Influence Under Post-Annexation Conditions (1241 : Thousand Palms

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 34 result, it is projected that the annexation of the Sphere would result in negative cash flow for the City throughout the build out period. All revenues will be dependent upon future development types and intensities in the annexation area. The Cannabis Cultivation Tax calculation is highly speculative. Unlike other revenue categories, which have many years of proven generation in the City’s budget, the anticipated revenues associated with Cannabis Cultivation cannot be assured. The threshold of demand versus supply is not known, and should cannabis cultivation not generate the projected 1 million square feet of space, the deficit to the City would increase to $22 million annually, as shown in Table 22. Table 22 Cost and Revenue Summary Table (without Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES General Fund: Property Tax $6,439 $358,099 $1,764,740 $3,523,042 Property Tax in Lieu of MVF $75 $32,126 $160,331 $320,588 Property Transfer Tax $54,053 $212,584 $688,179 $846,710 Cannabis Cultivation Tax $0 $0 $0 $0 Local Sales Tax &Transaction and Use Tax $1,407,769 $2,545,143 $7,094,640 $12,781,511 Utility Users Tax $416,824 $700,684 $1,836,123 $3,255,423 Franchise Fees $320,040 $537,988 $1,409,778 $2,499,516 Transient Occupancy Tax $474,737 $474,737 $990,756 $1,506,775 Subtotal Annual General Fund Revenue at Phase Buildout $2,679,936 $4,861,361 $13,944,547 $24,733,564 Restricted Funds: Highway Users Gas Tax $315,000 $529,515 $1,387,577 $2,460,154 Measure A $4,065 $7,349 $20,486 $36,907 Subtotal Annual Restr. Fund Revenue at Phase Buildout $319,065 $536,864 $1,408,063 $2,497,060 Total All Potential Revenues at Phase Buildout $2,999,001 $5,398,225 $15,352,610 $27,230,625 Interest Earnings: Historic Average Interest Rate on 90-Day Treasury Bills 2.43% 2.43% 2.43% 2.43% Anticipated Interest Earned on Revenues $72,876 $131,177 $373,068 $661,704 Total Potential Annual Revenues at Phase Buildout $3,071,876 $5,529,402 $15,725,678 $27,892,329

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Attachment: 7. Fiscal Impact Analysis of the Cathedral City Sphere of Influence Under Post-Annexation Conditions (1241 : Thousand Palms

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 35 Table 22 Cost and Revenue Summary Table (without Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES ANNUAL COSTS General Fund: Costs of General Government $2,394,000 $4,024,331 $10,545,653 $18,697,307 Costs of Public Works $418,871 $704,123 $1,845,130 $3,271,389 Costs of Police Protection $2,518,732 $4,233,992 $11,095,029 $19,671,327 Costs of Fire Protection $3,902,732 $3,902,732 $7,684,634 $7,684,634 Costs of Roadway Maintenance $173,001 $215,886 $387,429 $601,856 Total Potential Annual Costs at Phase Buildout $9,407,336 $13,081,064 $31,557,876 $49,926,513 Potential Cashflow at Phase Buildout -$6,335,460 -$7,551,662 -$15,832,197 -$22,034,184 One-Time Revenues and Costs Development Impact Fee (DIF) revenues are projected based on development within that phase, and would vary considerably based on that level of development. DIF revenues will be significant given the fact that land in the Sphere area is largely undeveloped.

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Attachment: 7. Fiscal Impact Analysis of the Cathedral City Sphere of Influence Under Post-Annexation Conditions (1241 : Thousand Palms

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 36 Table 23 City Developer Impact Fee Revenues (One time only) Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) New Construction Tax $0 $7,690,659 $30,779,019 $38,535,214 Art in Public Places Fees $0 $2,228,674 $9,017,589 $11,657,842 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $9,919,332 $39,796,609 $50,193,056 As described above, the City will also incur one-time costs associated with Fire Department facilities and roadway improvements. The purchase and outfitting of two fire stations is estimated to cost $24,129,740, while roadway improvement costs are estimated at $44,434,790. Although the cost of the purchase of the first fire station would occur immediately upon annexation, and require an estimated $9,544,870, the balance of these capital outlays would be expected to occur 10 years or more after incorporation, depending on how aggressively development occurred, and how quickly the City determined that it wished to bring streets up to City standards.

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Attachment: 7. Fiscal Impact Analysis of the Cathedral City Sphere of Influence Under Post-Annexation Conditions (1241 : Thousand Palms

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 37 Appendix A Detailed Cost and Revenue Tables

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Attachment: 7. Fiscal Impact Analysis of the Cathedral City Sphere of Influence Under Post-Annexation Conditions (1241 : Thousand Palms

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Attachment: Attachment 1 - 2018 Staff Report and Attachments (3377 : Thousand Palms Fiscal Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City Prop. Tax