Agenda packet, regular meeting — Cathedral City City Council, June 14, 2023

CITY COUNCIL
AGENDA

Regular Meeting
Wednesday, June 14, 2023
5:30 PM

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

MAYOR
Rita Lamb

CITY COUNCIL MEMBERS

Mayor Pro Tem
Mark Carnevale

Councilmember
Nancy Ross

Councilmember
Raymond Gregory

Councilmember
Ernesto Gutierrez
• CALL TO ORDER
• PLEDGE OF ALLEGIANCE
• INVOCATION (MOMENT OF REFLECTION)
• ROLL CALL
• AGENDA FINALIZATION
At this time the City Council may announce any items being pulled from the agenda or continued to another date.

1. PUBLIC COMMENT
This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. Publi c Comment will be limited to three (3) minutes.

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2. COUNCIL REPORTS
This is an opportunity for each member of the City Council to report on any conferences they attend, local events or make any other comments they may have.

3. CONSENT AGENDA
The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent Calendar for discussion.

A. Waive Full Reading of Ordinances on Agenda
B. Minutes Approval

1. City Council - Study Session - May 24, 2023 3:00 PM

2. City Council - Regular Meeting - May 24, 2023 5:30 PM C. Special Assessments Against Properties for Nuisance Abatement Costs Incurred During Fiscal Year 2022-2023
Recommendation: To adopt a Resolution confirming and imposing special assessments against certain properties for recovery of
nuisance abatement costs and providing for collection.

D. Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2006-01
Recommendation: To adopt a Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2006-01.

E. Amendment to the City Manager Contract
Recommendation: To approve the seventh amendment to the City Manager contract resulting in an annual salary of $233,886 effective July 1, 2023 and an annual salary of $240,704 effective January 1, 2024.

F. Notice of Completion for FY 22-23 Citywide Rubberized Emulsion Aggregate Slurry (REAS) Projects
Recommendation: To accept and approve the following REAS Projects: La Pasada Neighborhood (C08664), Avenida Maravilla
(C08658), Date Palm Drive (I-10 to Varner Road) (C08657), and Avenida La Vista/La Paz (C08655), as final; and,
authorize the City Manager to file a Notice of Completion with the Riverside County Recorder's office; and authorize the release of retention funds to Petrochem Materials
Innovation, LLC (PMI) upon expiration of the Notice of
Completion.

G. Tract No. 38137: Approval of Final Map and Subdivision Agreement:

Reflections at Cimarron, LLC: (James Shute): Subdivider Cathedral City P a g e 3
Recommendation: To approve the Final Map for Tract No. 38137; and, accept the dedications offered on the Final Map for public street and public utility easement purposes; and approve the
Subdivision Agreement for Tract No. 36137 and authorize its execution by the Mayor and City Clerk.

4. ITEMS PULLED FROM CONSENT

5. PUBLIC HEARINGS
A. Annual Renewal of the Lighting & Landscaping District (LLD) Budget Recommendation: To hold a public hearing, adopt resolutions approving the final engineer's report, and order the levy and collection of annual assessments for the sixteen (16) existing benefit zones for the annual renewal of the Lighting and
Landscaping District Budget for FY 2023/2024.

6. LEGISLATIVE ACTIONS
A. Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) Projects Recommendation: To approve a Resolution adopting the City’s FY 2023-2024 Capital Improvement Program (CIP) Projects funded by
Senate Bill 1 (SB-1), the Road Repair and Accountability Act of 2017
B. First Reading of an Ordinance Amendment - Renewal of Inactive Cannabis Dispensary Licenses
Recommendation: To introduce, waive reading beyond the title and provide first reading to an ordinance amending Sections 5.88.040 and

5.88.055 of the Cathedral City Municipal Code related to Cannabis Business License expiration and renewals.

C. GCVCC Chamber of Commerce Activity Update: June 2023 Recommendation: On January 11, 2023, the Council approved a January through June 2023 service provider agreement with the
Greater Coachella Valley Chamber of Commerce. The
Council also granted City Manager McClendon the authority to execute the 2023-2024 service contract provided the
Chamber provided the agreed upon services during the
January through June 2023 contract period were delivered.

City Staff believes the January through June services have been provided and is recommending execution of the 2023- 2024 contract.

Greater Coachella Chamber of Commerce CEO Brandon
Marley and Cathedral City liaison/Director of Business
Development Jo Beth Prudhomme will discuss January
through June 2023 activities and upcoming goals.

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D. Vehicle Tow Service Franchise Ordinance
Recommendation: To introduce, waive reading beyond the title and provide first reading to an Ordinance adding Chapter 12.78 of the
Cathedral City Municipal Code relating to towing services.

7. DISCUSSION ON FUTURE AGENDA ITEMS
This is an opportunity for members of the City Council to request that, and for the City Council to discuss whether, one or more items should be added to the agenda of a future regular or special City Council meeting. To comply with the Brown Act, discussion should be limited to whether to add the item(s), and direction given to the City Manager regarding scheduling and prioritization of the item(s).

8. CLOSED SESSION

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 i n 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 hours. In addition, such documents will be posted on the City’s website at www.cathedralcity.gov.

CITY COUNCIL

MINUTES

Study Session
Wednesday, May 24, 2023
3:00 PM

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

• CALL TO ORDER
The meeting was called to order at 3:00 PM by Mayor Rita Lamb. • ROLL CALL
Attendee Name Title Status Arrived
Rita Lamb Mayor Present 3:00 PM
Mark Carnevale Mayor Pro Tem Present 3:00 PM
Nancy Ross Councilmember Present 3:00 PM
Raymond Gregory Councilmember Present 3:00 PM
Ernesto Gutierrez Councilmember Present 3:00 PM

• AGENDA FINALIZATION
There were no changes to the agenda.

1. PUBLIC COMMENT
There were no members of the public who wished to make public comment.

2. STUDY SESSION
A. Introduction of the City's FYs 2024-2028 RMRA (SB-1) Projects.

Recommendation: City Staff will introduce the City’s FYs 2024-2028 Capital Improvement Program (CIP) Projects funded by Senate Bill 1 (SB-1): The Road Repair and Accountability Act of 2017, for review and discussion only.

Armando Garcia Baldizzone, City Engineer, provided an overview of the FY 2024-2028 Road Repair and Accountability Act (RMRA) Projects funded by Senate Bill 1. The following points were presented:

• Background of Senate Bill 1

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• The City's Obligations
• Past and Upcoming CIP Projects Funded by Senate Bill 1 • Next Steps

This presentation was for information and discussion only, there was no formal action taken by the City Council.

B. Vehicle Tow Service Franchise Agreement
Recommendation: That the City Council provide direction to City Staff on the following policy decisions:

1. Should the City have an ordinance that codifies the
process for selecting non-exclusive tow contracts to provide towing services on behalf of the City?

2. Does the City Council wish to continue to operate a
tow rotation franchise with tow operators? If so, does the City Council want to recover the entire cost of operating a tow rotation program?

3. Does the City Council want to eliminate the
requirement that the tow company impound yard and tow
business must be within the city limits? If so, what
reasonable distances or metrics does the City Council wish to adopt?

Staff recommends that City Council adopt an ordinance to codify a tow rotation program that includes policy direction provided by Council.

Police Chief George Crum provided an overvie w of the proposed Vehicle Tow Service Franchise Ordinance. The following points were presented:

• Policy Discussion and Staffs Recommendations
• City Attorney's recommendations
• Contract History
• Operational Changes Proposed in the New Tow Agreement • History of Incurred Costs, Revenue Collected, Franchise Fees, Franchise Fee Per Operator, and Total Paid by Franchisees
• Annual Tows
• Operator Performance
• Proposed Franchise Fee for FY 2023/2024
• Coachella Valley Cities Tow Programs

Jesse Mojica, Moh ica Towing, stated that he does not have a problem with the City having multiple tow companies as long as they are required to have a tow yard within the City. He stated that he has the equipment to move heavy equipment, however , there is a fee. He express ed his concern of the cost to operate.

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Jared Mojica, Mohica Towing, expressed his concerns with the proposed ordinance as presented and provided some suggested changes. He also expressed his concern with some of the figures presented. He feels there need s to be a tow agreement in place, but not at the proposed rates.

Joel Mojica, Mohica Towing, feels the city will need to do an RFP specifically for tow and storage of vehicles for evidence. He expressed concern with the inability to see the rotation list, like he is able to do on the CHP website.

Myles Bois, Southwest Towing, expressed his concern with comments made about fees they did not pay in previous years. He expressed his embarrassment for the calls for service his company has missed and feels the Police Department should have reached out to them. He also expressed his concern with extending the ETA to 30 minutes, which he feels will be problematic. He also feels having a tow yard within the City should be a requirement. He also expressed his conce rn with the figures presented.

The City Council provided their feedback and asked clarifying questions which were responded to by staff. After discussion, it was the consensus of the City Council to direct staff to bring back a proposed ordinance for cons ideration, that includes options for full cost recovery, and no formal requirement that operators have a tow yard within the City limits, but to give preference to those operators that are closer to the City limits.

3. CLOSED SESSION
Eric Vail, City Atto rney, announced that the City Council will recess into Closed Session to discuss the following items listed on the agenda for the remainder of the meeting. He will report out on any action taken at the Regular Meeting of May 24, 2023, which will be reflected in the minutes of May 24, 2023.

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

Property Location: Approximately 1.8 acres, Parcel 3 of Tract No. 28339 Negotiating Parties: Unspecified Parties
Property Owner: City of Cathedral City
Under Negotiations: Price and Terms for potential sale of real property B. 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

ADJOURN
The City Council recessed into Closed Session at 4:58 p.m.

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Mayor, City of Cathedral City City Clerk, City of Cathedral City

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CITY COUNCIL

MINUTES

Regular Meeting
Wednesday, May 24, 2023
5:30 PM

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

• CALL TO ORDER
The meeting was called to order at 5:30 PM by Mayor Rita Lamb. • PLEDGE OF ALLEGIANCE
Mayor Pro Tem Carnevale led the Pledge of Allegiance.
• INVOCATION (MOMENT OF REFLECTION)
Councilmember Ernesto Gutierrez offered the invocation. • ROLL CALL
Attendee Name Title Status Arrived
Rita Lamb Mayor Present 5:30 PM
Mark Carnevale Mayor Pro Tem Present 5:30 PM
Nancy Ross Councilmember Present 5:30 PM
Raymond Gregory Councilmember Present 5:30 PM
Ernesto Gutierrez Councilmember Present 5:30 PM

• AGENDA FINALIZATION
There were no changes to the agenda.

1. SPECIAL PRESENTATIONS
A. Certificate of Recognition - Matiana Rosales
Matiana Rosales was not in attendance to receive recognition, the Mayor will make sure she receives it.

B. Certificate of Recognition - Antonio Baciu

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The City Council presented Antonio Baciu with a certificate of recognition for his work in bringing the Yoga program to the Cathedral City Community Amphitheater.

2. PUBLIC COMMENT
There were no members of the public that wished to speak.

3. COUNCIL REPORTS
Mayor Pro Tem Mark Carnevale reported on the following:

• His attendance at the Harvey Milk Breakfast
• His attendance at the State of the City
• His attendance at the CVAG Homeless Committee meeting • His attendance at the Elks Lodge event, which was held at the Westin Mission Hills • His attendance at the Grand Opening of the new Campanile Development • His participation at the Cathedral City High School Vocal Awards, where he provided dinner
• He thanked Police Chief Crum for his meeting related to the proposed Tow Ordinance
• He reached out to many residents to invite them to attend the Fire Department’s Strategic Planning event
• His attendance at the Cathedral City Evening Rotary meeting • Homeless Liaison’s progress

Councilmember Raymond Gregory reported on the following:

• His attendance at the Harvey Milk Breakfast
• His participation in the Safe Schools Desert Cities’ Pride Prom held at the Air Museum
• His attendance at the State of the City event
• His attendance at the Annual Joint Chamber of Commerce meeting • His attendance at the Riverside County Transportati on Commission Budget and Implementation Committee meeting
• The upcoming Memorial Day holiday
• Pride month, which begins June 1, 2023
• The upcoming City Council Meeting on June 14, 2023

Councilmember Nancy Ross reported on the following:

• Her support of Harvey Milk
• Her participation in Jury Duty
• The Free Swim Lessons Program she is offering through her Community Assistance Fund

Councilmember Ernesto Gutierrez reported on the following:

• The recent Mother's Day holiday
• His attendance at the Boys and Girls Club Pasta Dinner • His meeting with City Manager McClendon and Assistant City Manager Ambrose

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• His attendance at the State of the City event
• His attendance at the Grand Opening of the Campanile Development • His interactions with property owners
• The complaints he has received from residents
• He reminded everyone to avoid standing water to keep mosquitos away and to wear sun block as temperatures rise
• The upcoming Memorial Day Holiday

Mayor Rita Lamb reported on the following:

• Her attendance at the Boys and Girls Club, where the City was honored • Thanked everyone for the State of the City Event
• College of the Desert Advisory Panel related to the Schematic Design of the Palm Springs Campus
• Her attendance at the Cathedral City High School Senior Scholarship Awards • Her meeting with residents at Tramview Mobile Home Park • The upcoming Emergency Preparedness event, which will be held on June 10, 2023 • The upcoming Summer Pool Program at Cathedral City High School

4. CONSENT AGENDA
A motion was made by Councilman Gutierrez and seconded by Mayor Lamb to approve the following Consent Agenda items:

RESULT: APPROVED [UNANIMOUS]
MOVER: Ernesto Gutierrez, Councilmember
SECONDER: Rita Lamb, Mayor
AYES: Lamb, Carnevale, Ross, Gregory, Gutierrez
A. Waive Full Reading of Ordinances on Agenda
M.O. 2023-74
B. Minutes Approval
M.O. 2023-75

1. City Council - Study Session - May 10, 2023 3:00 PM

2. City Council - Regular Meeting - May 10, 2023 5:30 PM C. Receive and File Payment of Claims and Demands for April 2023 Recommendation: The City Council acting in its capacity for the City, the Successor Agency to the former Redevelopment Agency,
the Housing Successor Agency, the Cathedral City Public Finance Authority Board, and the Cathedral City Downtown Foundation Board receive and file payment of claims and demands in the aggregate sum of $7,764,576.27 for the
month of April 2023.

M.O. 2023-76

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D. Fiscal Year 2023/2024 Appropriations Limit, Gann Initiative Limitation Recommendation: To approve the City’s appropriations limit for the fiscal year (FY) 2023/2024, Gann Initiative Limitation.

Reso 2023-11
E. Establish the Annual Special Tax for Fiscal Year (FY) 2023/2024 (Rio Vista Village)
Recommendation: To adopt a Resolution of the Cathedral City Community Facilities District (CFD) No. 2000-1 (Rio Vista Village) establishing the annual special tax for FY 2023/2024
Reso 2023-12
F. Ramon Bridge and Street Widening Project: Approval of Joint Use Agreement with Southern California Edison and Underground funding.

Recommendation: To approve the Joint Use Agreement (JUA) with Southern California Edison Company, for the relocation of Southern California Edison (SCE) facilities east of the intersection of Ramon Road and San Luis Rey Drive, and authorize the
City Manager to execute the JUA; and, authorize the funding for the JUA relocation work in the amount of $158,742 which includes a 15% contingency for unforeseen construction
costs with financial responsibilities apportioned to Coachella Valley Association of Governments (CVAG) in the amount of $119,056.50 and the City in the amount of $39,685.50,
respectively.

M.O. 2023-77

5. ITEMS PULLED FROM CONSENT

6. PUBLIC HEARINGS
A. Approve the CDBG FY 2023-2024 Annual Action Plan
Recommendation: To approve the FY 2023-2024 Community Development Block Grant (CDBG) Annual Action Plan for submittal to the U.S. Department of Housing and Urban Development
(HUD); and, authorize the City Manager or designee to
execute the required certifications; and, execute all funding agreements and documents consistent with the FY 2023-
2024 Annual Action Plan.

Andrew Lee, Assistant Engineer, provided an overview on the proposed Community Development Block Grant (CDBG) fiscal year 2023 -2024 Annual Action Plan (AAP). The following points were presented:

• CDBG and AAP Approval Timeline and Recap
• Proposed Fiscal Year 2023/2024 Annual Action Plan Allocations • Public Improvements Projects
• Fiscal Impact
• Staff Requests

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Mayor Rita Lamb opened the Public Hearing for public co mments, seeing none, she closed the Public Hearing and returned discussion to the City Council.

M.O. 2023-78

A motion was made by Mayor Pro Tem Carnevale and seconded by Councilman Gutierrez to approve the FY 2023 -2024 Community Developme nt Block Grant (CDBG) Annual Action Plan for submittal to the U.S. Department of Housing and Urban Development (HUD); and , authorize the City Manager or designee to execute the required certifications; and, execute all funding agreements and documents consistent with the FY 2023-2024 Annual Action Plan.

RESULT: APPROVED [UNANIMOUS]
MOVER: Mark Carnevale, Mayor Pro Tem
SECONDER: Ernesto Gutierrez, Councilmember
AYES: Lamb, Carnevale, Ross, Gregory, Gutierrez

7. LEGISLATIVE ACTIONS
A. On-Call Engineering Services - City Projects Agreement Approvals Recommendation: To approve two (2) year Agreements with NAI Consulting, Inc., Interwest Consulting Group, Fomotor Engineering and HR Green Pacific, Inc., for On-Call Engineering Support Services for various City Engineering and Public Works
Maintenance Divisions projects; and, authorize the City Manager to execute the Agreement documents.

M.O. 2023-79

A motion was made by Councilmember Gregory and seconded by Mayor Lamb to approve two (2) year Agre ements with NAI Consulting, In c., Interwest Consulting Group , Fomotor Engineering and HR Green Pacific, Inc., for On -Call Engineering Support Services for various City Engineering and Public Works Maintenance Divisions projects; and, authorize the City Man ager to execute the Agreement documents.

RESULT: APPROVED [UNANIMOUS]
MOVER: Raymond Gregory, Councilmember
SECONDER: Rita Lamb, Mayor
AYES: Lamb, Carnevale, Ross, Gregory, Gutierrez
B. On-Call Engineering Services - State and Federal Projects Agreement Approvals
Recommendation: Approve two (2) year Agreements with NAI Consulting, Inc. and Interwest Consulting Group for On-Call Engineering
Support and Grant Administration Services for State and Federally Funded Transportation Projects; and authorize the City Manager to execute the Agreement documents.

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M.O. 2023-80

A motion was made by Councilmember Gregory and seconded by Mayor Pro Tem Carnevale to approve two (2) year Agreements with NAI Consulting, Inc. and Interwest Consulting Group for On -Call Engineering Support and Grant Administration Services for State and Federally Funded Transportation Projects; and authorize the City Manager to execute the Agreement documents.

RESULT: APPROVED [UNANIMOUS]
MOVER: Raymond Gregory, Councilmember
SECONDER: Mark Carnevale, Mayor Pro Tem
AYES: Lamb, Carnevale, Ross, Gregory, Gutierrez
C. Cathedral Cove Center Development: Approval of Improvement Agreement for Parcel Map No. 37876
Recommendation: To conditionally approve the Improvement Agreement for Parcel Map No. 37876 with Cathedral Cove 1.0, LLC, and
authorize its execution on behalf of the City by the Mayor and City Clerk when all required surety bonds are received and deemed acceptable.

M.O. 2023-81

A motion was made by Councilmember Gregory and seconded by Councilmember Ross to approve th e Improvement Agreement for Parcel Map No. 37876 with Cathedral Cove 1.0, LLC, and authorize its execution on behalf of the City by the Mayor and City Clerk.

RESULT: APPROVED [UNANIMOUS]
MOVER: Raymond Gregory, Councilmember
SECONDER: Nancy Ross, Councilmember
AYES: Lamb, Carnevale, Ross, Gregory, Gutierrez
D. Approval of the Parks and Community Events Commission (PACE) support of the Free Movies for Kids at the Mary Pickford Theater 2023 Recommendation: To approve $400 from the Parks and Recreation Commission's (PACE) FY 2022-2023 Small Events Budget
to support the Mary Pickford Free Movies for Kids Event for the 2023 Summer Program.

M.O. 2023-82

A motion was made by Councilmember Gregor y and seconded by Councilman Gutierrez to approve $400 from the Pa rks and Community Events Commission's (PACE) FY 2022 -2023 Small Events Bud get to support the Mary Pickford Free Movies for Kids Event for the 2023 Summer Program.

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RESULT: APPROVED [UNANIMOUS]
MOVER: Raymond Gregory, Councilmember
SECONDER: Ernesto Gutierrez, Councilmember
AYES: Lamb, Carnevale, Ross, Gregory, Gutierrez
E. Special Use Permit Mayan Festival 2023
Recommendation: To approve Special Use Permit 2023-002 for the Maya La Feria International De Cultura to be held October 21, 2023 through October 22, 2023 in the Cathedral City Community Amphitheater, Festival Lawn, Civic Center Plaza, Avenida Lalo Guerrero, and Town Square Park.

Shelly Kaplan, expressed his support of this event.

M.O. 2023-83

A motion was made by Councilmember Gregory and second ed by Councilman Gutierrez to approve Special Use Permit 20 23-002 for the Maya La Feria International De Cultura to be held October 21, 2023 through October 22, 2023 in the Cathedral City Co mmunity Amphitheater, Festival Lawn, Civic Center Plaza, Avenida Lalo Guerrero, and Town Square Park.

RESULT: APPROVED [UNANIMOUS]
MOVER: Raymond Gregory, Councilmember
SECONDER: Ernesto Gutierrez, Councilmember
AYES: Lamb, Carnevale, Ross, Gregory, Gutierrez
F. Adopted Fiscal Year (FY) 2023/2024 and FY 2024/2025 Biennial Budget and Resolutions
Recommendation: To adopt the Fiscal Year (FY) 2023/2024 and FY 2024/2025 Biennial Budget
Reso HAS 2023-01
Reso PFA 2023-01
Reso SA 2023-01
Reso 2023-13
Reso 2023-14

A motion was made by Councilmember Gregory and seconded by Mayo r Pro Tem Carnevale to the Fiscal Year (FY) 2023/2024 and FY 2024/2025 Biennial Budget and associated Resolutions.

RESULT: APPROVED [UNANIMOUS]
MOVER: Raymond Gregory, Councilmember
SECONDER: Mark Carnevale, Mayor Pro Tem
AYES: Lamb, Carnevale, Ross, Gregory, Gutierrez

8. DISCUSSION ON FUTURE AGENDA ITEMS

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There were no items discussed.

9. CLOSED SESSION
Eric Vail, City Attorney, announced that the City Council met in Closed Session during the Study Session meeting of May 24, 2023, to discuss the following i tems listed on the agenda. There was no reportable action taken.

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

ADJOURN
Mayor Rita Lamb adjourned the Regular meeting at 6:56 p.m.

Mayor, City of Cathedral City City Clerk, City of Cathedral City

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Staff Report

City Council

Item No. 3.C

Meeting Date: June 14, 2023
From: Sandra Molina, Deputy Director of Development Services Title: Special Assessments Against Properties for Nuisance Abatement Costs Incurred During Fiscal Year 2022-2023

City Council

RECOMMENDATION:

To adopt a Resolution confirming and imposing special assessments against certain properties for recovery of nuisance abatement costs and providing for collection.

BACKGROUND:

When a property owner fails to comply with a Code Co mpliance Notice of Violation or Notice of Public Nuisance and Order to Abate, the Code Compliance Officer may proceed with an abatement of the property. The property owner is responsible for all costs of abatement incurred by the City, including administra tive costs and attorneys’ fees. If the abatements costs are not paid prior to June 30 th, the abatement costs may become a special assessment levied against the property.

For Fiscal Year 2022 -2023, twelve (12) abatements were conducted by the City in which the costs were not recovered. In accordance with the Municipal Code, each time an abatement was conducted, the property owner was notified as prescribed, and proof of service documented. Upon abatement of the property, a Notice of Administrative Costs was mailed to the property owner with a description of the abatement work and total cost owed.

DISCUSSION:

The total costs incurred by the City for the twelve abatements was $ 14,920.13. The costs, as shown on Exhibit A of the Resolution, include administrati ve costs and staff time for preparing the necessary paperwork, inspection of the property and the contractor’s cost of labor and materials. No attorney fees were incurred for the abatements.

The City Council may adjust or waive any costs or fees; however, the City would then have to identify another source for recovery of the costs.

FISCAL IMPACT:

The recommended action will serve to recover costs incurred by the City in abating

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public nuisances on the referenced properties.

FIVE-YEAR STRATEGIC PLAN:

This action will further Goal F – Embracing, Inclusive City Objective - Cathedral City is valued and respected as a community that welcomes and embraces diversity, has an abundance of high quality and affordable housing options, and vibrant businesses. Our n eighborhoods are attractive and well -maintained and issues surrounding homelessness have been compassionately addressed with thoughtful, coordinated, and collaborative programs.

Action F -16 - Implement a code compliance program that proactively identifies and responds to code compliance complaints.

ATTACHMENTS:

Resolution
Exhibt A 2022-2023 Lien List_6.7.2023

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RESOLUTION NO. 2023-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL

CITY, CALIFORNIA, IMPOSING SPECIAL ASSESSMENTS AGAINST

CERTAIN PROPERTIES FOR RECOVERY OF NUISANCE ABATEMENT

COSTS AND PROVIDING FOR COLLECTION

WHEREAS, the City of Cathedral City, California, has caused the abatement of nuisance conditions on certain parcels of property within the City of Cathedral City, under provisions of Chapter 13.90 and Chapter 6.18 of the Municipal Code; and

WHEREAS, the City Manager, through the Code Compliance Division has filed with this City Council a report of the proceedings and an accurate account of the cost of abating the nuisances on each separate property, as required by the Municipal Code.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cathedral City as follows:

SECTION 1. The report of proceedings and the account of the costs of abating the nuisances on the properties as set forth in Exhibit A, on file with the Council is accurate and in compliance with the requirements of Title 13 of the Cathedral City Municipal Code.

Exhibit A is incorporated herein by reference.

SECTION 2. Special Assessments against each lot or parcel of land to pay the cost of abatement of said nuisances are hereby made in the amounts and against the lots or parcels of land indicated in Exhibit A attached hereto and made part hereof.

SECTION 3. Cost of abatement as set forth in Exhibit A constitutes a special assessment against the designated parcel.

SECTION 4. The City Clerk is directed to transmit a certified copy of this Resolution, including Exhibit A, to the County Assessor, County Tax Collector and County Auditor. The County Auditor is requested to record the special assessments on the County Tax Roll and to collect the total amount of the Assessments at the time and in the manner as other ordinary municipal taxes as provided for in Government Code Section 39578-39585.

SECTION 5. CERTIFICATION

That the City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions of said City; and shall make a minute of passage and adoption thereof in the records of the proceedings of the City Council of said City, in the minutes of the meeting at which the Resolution is passed and adopted.

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Attachment: Resolution (3774 : Special Assessments Against Properties for Nuisance Abatement Costs) PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Cathedral City held on this 14th day of June 2023, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Rita Lamb, Mayor

ATTEST:

Tracey R. Hermosillo, City Clerk

APPROVED AS TO FORM:

Eric S. Vail, City Attorney

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Attachment: Resolution (3774 : Special Assessments Against Properties for Nuisance Abatement Costs) Exhibit A
2022-2023 Nuisance Abatement Lien List
Owner Info APN
Abatement
Cost
Administrative
Fees
Invoice
Amount
Abatement
Date
Abatement
Description
Patrick O Riley
Judith s Gold Riley
69946 Northhampton Ave
Cathedral City, Ca 92234 670-382-009 850.00 630.91 1,480.91 July 14, 2022 Emergency Board up Patrick O Riley
Judith s Gold Riley
69946 Northhampton Ave
Cathedral City, Ca 92234 670-382-009 2,940.00 284.25 3,224.25 April 26, 2023 Emergency Board up
and Property Clean up
Pellegrini Living Trust
3920 Lighthouse Pl
Discovery Bay, Ca 94505-1100 673-172-001 650.00 349.75 999.75 August 19, 2022 Weed Abatement Cole FD Portfolio V
c/o Lease Administration Dept
P.O. Box 1017
Charlotte, NC 28201
673-172-024 1,325.00 317.00 1,642.00 March 14, 2022
(34600 Date Palm Dr)
Emergency Board up
Cole FD Portfolio V
c/o Lease Administration Dept
P.O. Box 1017
Charlotte, NC 28201
673-172-024 505.00 153.25 658.25 March 24, 2022
(34600 Date Palm Dr)
Emergency Board up
Tang Lucille Tsu Chu
1418 10th Ave No 3
San Francisco, Ca 94070
675-143-028 610.00 349.00 959.00 November 10, 2022 Weed Abatement Phillips
44630 San Diego Ave
Palm Desert, Ca 92260 686-182-036 394.00 153.25 547.25 August 3, 2022 (38125 Dorn Rd)
Emergency Board up
SDS Homes LLC
43980 Mahlon Vail Rd #1306
Temecula, Ca 92592-9602 686-192-008 340.00 251.20 591.20 June 1, 2022 (68364 Treasure Trl)
Emergency Board up
SDS Homes LLC
43980 Mahlon Vail Rd #1306
Temecula, Ca 92592-9602 686-192-008 570.00 360.67 930.67 February 9, 2023 (68364 Treasure Trl)
Emergency Board up
Cathedral Canyon Ventures
3727 W Magnolia Blvd
Burbank, Ca 91505-2818
687-215-024 1,900.00 163.75 2,063.75 January 11, 2023
(37370 Cathedral
Canyon) Emergency
Board up
Cathedral Canyon Ventures
3727 W Magnolia Blvd
Burbank, Ca 91505-2818 687-215-024 640.00 153.10 793.10 February 7, 2023 (37370 Cathedral
Canyon) Emergency
Board up
Howard Lewis Fisher
22375 Sherman Way
Canoga Park, Ca 91303 687-480-001 975.00 55.00 1,030.00 June 18, 2022 (36001 Date Palm)
Emergency Board up
Totals 11,699.00 3,221.13 14,920.13
1 of 1 Updated 6/7/2023

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Attachment: Exhibt A 2022-2023 Lien List_6.7.2023 [Revision 2] (3774 : Special Assessments Against Properties for Nuisance Abatement

Cathedral City Page 1 of 3 Printed on 6/14/2023

Staff Report

City Council

Item No. 3.D

Meeting Date: June 14, 2023
From: Kevin Biersack, Financial Services Director
Title: Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2006-01

City Council

RECOMMENDATION:

To adopt a Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2006-01.

BACKGROUND:

In 2006, the City Council formed a citywide Community Facilities District (“CFD 2006 -1”) to pay for additional law enforcement, fire, paramedic, park maintenanc e and general services within areas of new development. A study was completed by David Taussig & Associates, Inc. to determine appropriate annual special tax rates mitigating the fiscal impact on the General Fund for the services proposed to be provided. I n the event where there would be State budget cuts, CFD 2006 -1 provides a secure source of funding at the local level, that cannot be taken away by State actions.

DISCUSSION:

New developments, with more than four equivalent dwelling units, are condition ed to join CFD 2006 -1 through an annexation process. CFD 2006 -1 annexations are processed as new developments and are required to complete the Community Development Department’s approval process. The property owner for the new development project, Canyon S prings Villas Apartments (with 48 units), has filed a petition (including consent and waiver) requesting the institution of proceedings for the formation of Improvement Area (“IA”) No. 18, within existing CFD 2006 -1, which complies with the requirements of Section 53318(b) of the Mello -Roos Community Facilities Act of 1982 (“ACT”).

In accordance with the provisions of the Act, and specifically Sections 53326(a) and 53327(b) which allows for certain time and to conduct requirements relative to a special property owner election, the property owner has expressly waived the following:

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• Any requirement to have the special election conducted within the time periods specified in Section 53326 of the Act or in the California Elections Code. • Any requirement for t he mailing of the ballot for the special election; and agrees the election may be conducted by mail or hand -delivered ballot to be returned to the City Clerk; and requests the results of said election be canvassed and reported to the City Council at the public hearing on the formation of IA No. 18. • All applicable waiting periods for the election and the requirement for analysis and arguments relating to the special election, as set forth in Section 53327 of the Act.
• All notice requirements relating to heari ngs and special elections, whether by posting, publishing or mailing, and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code. • Any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and
• No step or action in any proceeding relative to IA No. 18, or the special election shall be invalidated or affected by any such irregularity, error, mistake or departure.

A component of the Petition and Waiver is a map of proposed IA No.18, entitled “Proposed Boundaries of Improvement Area No. 18 of Community Facilities District No. 2006-1”, which is also on file in the office of the City Clerk and attached for reference. The original map will be filed in the City Clerk’s office and, within fifteen (15) days after the adoption by the City Council, a copy of such map so endorsed will be filed in the records of the County Recorder, County of Riverside, State of California.

Once approved, the Resolution of Intention (“Resolution”) will c ommence the formation process for the property described in the Petition. The Resolution will set a Public Hearing for August 9, 2023, regarding the proposed formation. An election will be held following the public hearing. At that time, the landowners w ithin CFD IA No. 18 will vote on the levy of special taxes on their property within the CFD.

An Exhibit to the Resolution, is the Rate and Method of Apportionment (“RMA”). This is an analysis of the special tax to allow each property owner or resident, w ithin the proposed district, to understand the annual amount that would be required for payment.

The RMA, which reflects the special taxes to be levied within CFD IA No. 18, is noted in Table 1 below:

TABLE 1
Maximum Special Tax for Developed Property
For Fiscal Year 2023-2024
Improvement Area No. 18
Land Use Class Description Maximum Special Tax
1 Residential $ 662.87 per Equivalent Dwelling Unit
2 Non-Retail Commercial/Industrial Property $0.1541 per SF of Floor Area

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FISCAL IMPACT:

The proposed project is residential therefore, as identified in Table 1, the rate for Land Use Class of Residential, per Equivalent Dwelling Unit (“EDU”) for Fiscal Year (“FY”) 2022-2023, is $662.87. The Non-Retail Commercial/Industrial Property special tax is not applicable. This special tax increases (but does not decrease) by the percentage change in the Consumer Price Index, not to exceed one percent (1%) per Fiscal Year.

The proposed IA No. 18, Cathedral Springs Villas Apartments (with 48 units), will generate annual revenue in the amount of $31,817.76.

FIVE-YEAR STRATEGIC PLAN:

This action will further Goal C – Fiscal Stability and Sustainability Objective - Cathedral City has economically prospered by facilitating the investment of private dollars in high qu ality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.

ATTACHMENTS:

CC SERVICES CFD 2006-1 (IA 18) - PETITION AND WAIVER
CFD 2006-1 (IA 18) - RESOLUTION OF INTENTION
RMA CFD 2006-1, IA 18 01
Cathedral City CFD 2006-1 IA 18 Boundary Map

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Attachment: CC SERVICES CFD 2006-1 (IA 18) - PETITION AND WAIVER (3778 : Resolution of Intention to Establish Improvement Area (IA) No.

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Attachment: CC SERVICES CFD 2006-1 (IA 18) - PETITION AND WAIVER (3778 : Resolution of Intention to Establish Improvement Area (IA) No.

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Attachment: CC SERVICES CFD 2006-1 (IA 18) - PETITION AND WAIVER (3778 : Resolution of Intention to Establish Improvement Area (IA) No.

RESOLUTION NO. _____

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY TO ESTABLISH IMPROVEMENT AREA NO. 18

OF THE CITY OF CATHEDRAL CITY COMMUNITY FACILITIES
DISTRICT NO. 2006-1 (LAW ENFORCEMENT, FIRE , PARAMEDIC,

PARK MAINTENANC E AND GENERAL SERVICES) AND TO

AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN SAID

IMPROVEMENT AREA

WHEREAS, the City Council (the “Council”) of the City of Cathedral City (the “City”) has received a petition (including consent and waiver) ( “Petition”) requesting the institution of proceedings for formation of Improvement Area (“IA”) 18, within the existing Community Facilities Di strict ( “CFD 2006-1”), pursuant to the Mello-Roos Community Facilities Act of 1982 (“ACT”), as amended, commencing with Section 53311 of the Government Code of the State of California; and
WHEREAS, the Council has determined the Petition complies with the requirements of Section 53318(b) of the Act and now intends to form the CFD; and WHEREAS, the Council intends to finance (1) police protection services, (2) fire protection, (3) paramedic serv ices, (4) park maintenance services and ( 5) general services in addition to those provided in the territory within the CFD prior to the formation of the CFD and do not supplant services already avai lable within the territory proposed to be included in the CFD through the formation of the CFD subject to the levy of a special tax to pay for such services, being approved at an election to be held within the boundaries of the CFD; and
WHEREAS, the Counci l intends to provide for the annexation in th e future of territory (the “Future Annexation Area”) to the CFD pursuant to the terms and provisions of the Act,

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Council hereby determines to institute proce edings fo r the formation of a comm unity facilities district under the terms of the Act. The exterior boundaries of the community facilities district are hereby specified and described to be as shown on th e certain map now on file in the office of the City Clerk en titled “Proposed Boundari es of Improvement Area No. 18 of Community Facilities District No. 2006-1 of the City of Cathedral City ,” which map indicates by a boundary line the extent of the territory incl uded in the proposed community facilities dis trict and shall govern for all det ails as to the extent of the CFD. On the original and one copy of the map of such CFD on file in the City Clerk’s office, the City Clerk shall endorse the certificate evidencing the date and adoption of this Resolution. The City Clerk shall file the original of such map in her office and, within fifteen ( 15) days after the adoption of this Resolution, the City Clerk shall file a copy of such map so endorsed in the records of the County Recorder, County of Riverside, State of California.

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Attachment: CFD 2006-1 (IA 18) - RESOLUTION OF INTENTION (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2 Section 2. The Future Annexat ion Area, which area is to be subject to a special tax to be levied, shall be comprised of undeveloped parcels within the boundaries of the City, other than those parcels alread y within the boundaries of the proposed CFD, requiring a discretionary approval for development, which are developed for non-retail commercial purposes, and such other parcels as may be added upon the petition of the property owners thereof. Such Future A nnexation Area may be annexed only with the u nanimous approval of the owner or owners of each parcel or parcels at the time the parcel or parcels are annexed.

Section 3. The name of the proposed community facilities district shall be “Improvement Area No. 18 of the City of Cathedral City Community Facilities District No. 2006-1 (Law Enforcement , Fire , Paramedic, Park Maintenance and General Services).”
Section 4. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance wi th procedures contained in the Act a special tax (the “Special Tax”) sufficient to finance a portion of the cost of providing law enforcement, fire and paramedic services in addition to those provided in the territory within the CFD prior to the formation of the CFD and do not supplant services alrea dy available withi n the territory proposed to be included in the CFD , the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax, including any forec losure proceedings, legal, fiscal, and financ ial consultant fees, election costs, and al l other administrative costs of the tax levy. The Special Tax will be secured by recordation of a continuing lien against all real property in the proposed CFD. The s chedule of the rate and method of apportionme nt and manner of c ollection of the Special Tax is described in detail in Exhibit “A” attached hereto and by this reference incorporated herein.

The Special Tax is apportioned to each parcel on the foregoing basi s pursuant to Section 53325.3 of the Act.

The schedule of the r ate and m ethod of apporti onment of special taxes with respect to any Future Annexation Area may be different than the rate and method of apportionment of special taxes with respect to the CFD.

Section 5. A public hearing (the “Hearing”) on the estab lishment of the CF D and the proposed rate and method of apportionment of the Special Tax shall be held on August 9, 2023 at 5:30 o’clock p.m., or as soon thereafter as practicable, at the chambers of the Cit y Council of the City of Cathedral City , 68700 Avenida Lalo Guerrero, Cathedral City, California 92234.

Section 6. At the time and place set forth above for the hearing, any interested person, including all persons owning lands or registered to vote within the propos ed CFD, may appear and be heard.

Section 7. Each City off icer who is or wil l be responsible for the CFD, if it is established, is hereby directed to study the proposed CFD and, at or before the time of the above -mentioned Hearing, file a report with the City Council, and which is to be made a part of the record of the Hearing, co ntaining a brief descrip tion of the CFD and

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Attachment: CFD 2006-1 (IA 18) - RESOLUTION OF INTENTION (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 3 his or her estimate of the cost of providing additional law enforcement, fire and paramedic services within the boundary of the CFD. The City Manag er is directed to estimate the fair and reason able cost of all i ncidental expenses, incl uding all costs associated with the creation of the CFD , determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the CFD.

Section 8. The City may accept advances of funds from any sources, including private persons or private entities, and is authorized and directed to use such funds for any authorized pu rpose, including any cost incurred by the City in creating the C FD.

The City may enter into an agreement to repay all of such funds as are not expended or committed for any authorized purpose at the time of the election on the levy of the Special Tax, if the proposal to levy such tax should fail, and to repay all of s uch funds advanced if the levy of the Special Tax shall be approved by the qualified electors of the CFD.

Section 9. The City Clerk is hereby directed to publish a notice (“Notice”) of the Hearing pursua nt to Section 6061 of the Government Code in a newspaper of general circulation publishe d in the area of the proposed CFD. Such Notice shall contain the text of this Resolution, state the time and place of the Hearing, a statement the testimony of all int erested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed CFD as provided in Section 53324 of the Act and a description of the proposed voting procedure for the election required by the Act. Such publication shall be comple ted at least 10 days prior to the date of the Hearing.

Section 10. The voting procedure with respect to the establishment of the CFD and the imposition of the special tax shall be by hand delivered or mailed ballot election.

PASSED, APPROVED AND ADOPTED this ________ day of ______________, 2023, by the following vote:

AYES:

NOES:

ABSET:

ABSTAIN:

MAYOR
ATTEST:

CITY CLERK

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Attachment: CFD 2006-1 (IA 18) - RESOLUTION OF INTENTION (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 4 APPROVED AS TO FORM:

_____________________________

CITY ATTORNEY

REVIEWED:

_____________________________

CITY MANAGER

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Attachment: CFD 2006-1 (IA 18) - RESOLUTION OF INTENTION (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD

EXHIBIT A

RATE AND METHOD OF APPORTIONMENT

OF SPECIAL TAX

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Attachment: CFD 2006-1 (IA 18) - RESOLUTION OF INTENTION (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD City of Cathedral City May 10, 2023
IA No. 18 of CFD No. 2006 -1 (Canyon Springs Villas Apartments ) Page 1

RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 18 OF
COMMUNITY FACILITIES DISTRICT NO. 200 6-1
(CANYON SPRINGS VILLAS APARTMENTS )

OF THE CITY OF CATHEDRAL CITY
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 18 (“IA No. 18”) of Community Facilities District No. 2006-1 of the City of Cathedral City ("CFD No. 2006-1") and collected each Fiscal Year commencing in Fiscal Year 2023-2024, in an amount determined by the Council through the application of the appropriate Special Tax for "Developed Property" as described below. All of the real property in IA No. 18, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre" or "Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map.
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the admin istration of IA No. 18: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City,IA No. 18 or any designee thereof of complying with City or IA No. 18 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City,IA No. 18 or any designee there of related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or IA No. 18 for any other administrative purposes of IA No. 18, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number.

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Attachment: RMA CFD 2006-1, IA 18 01 (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2006-01) City of Cathedral City May 10, 2023
IA No. 18 of CFD No. 2006 -1 (Canyon Springs Villas Apartments ) Page 2 "CFD Administrator" means an official of the City, or designee thereof, responsible for the annual administration of IA No. 18 as provided herein. "CFD No. 2006-1" means Community Facilities District No.2006-1 of the City. "City" means the City of Cathedral City.
"Consumer Price Index" means the Consumer Price Index published by the U.S. Bureau of Labor Statistics for "All Urban Consumers" in the Los Angeles - Anaheim - Riverside Area, measured as of the month of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the City of Los Angeles.
"Council" means the City Council of the City, acting as the legislative body of CFD No. 2006-1.
"County" means the County of Riverside.
"Developed Prope rty" means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued after March 1, 2021 and prior to May 1 of the previous Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the follo wing June 30.
"Floor Area" for any Non-Residential Property means the total square footage of the building(s) located on such property, measured from outside wall to outside wall, exclusive of overhangs, porches, patios, carports, or similar spaces attached to the building but generally open on at least two sides. The determination of Floor Area shall be made by reference to the building permit(s) issued for such Assessor’s Parcel.
"Improvement Area No. 18 " means Improvement Area No. 18 of CFD No. 2006-1 (Canyon Springs Villas Apartments ), as identified on the boundary map for CFD No. 2006-1.
"Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax" means the Maximum Special Tax, determined in accordance with Section C.1 below, which can be levied in any Fiscal Year on any Assessor’s Parcel.
"Non-Residential Property" means all Assessor’s Parcels for which a building permit(s) was issued for a non-residential use.

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Attachment: RMA CFD 2006-1, IA 18 01 (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2006-01) City of Cathedral City May 10, 2023
IA No. 18 of CFD No. 2006 -1 (Canyon Springs Villas Apartments ) Page 3 "Non-Retail Commercial/Industrial Property" means all Assessor’s Parcels of Developed Property that are considered Non -Residential Property and that are not Retail Commercial Property.
"Property Owner Association Property" means, for each Fiscal Year, any Assessor’s Parcel within the boundaries of IA No. 18 that was owned by or irrevocably offered for dedication to a property owner association, including any master or sub-association, as of January 1 of the previous Fiscal Year. "Public Property" means, for each Fiscal Year, (i) any property within the boundaries of IA No. 18 that was owned by or irrevocably offered for dedication to the federal government, the State, the City or any other public agency as of January 1 of the previous Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use; or (ii) any property within the boundaries of IA No. 18 that was encumbered, as of January 1 of the previous Fiscal Year, by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units.
"Retail Commercial Property" means all Assessor’s Parcels of Non-Residential Property for which the building permit was issued for a retail sales tax generating use or which is being used primarily for a retail sales tax generating use, as determined by the CFD Administrator. However, if the land use of an Assessor’s Parcel changes and such Assessor’s Parcel no longer generates retail sales tax, such Assessor’s Parcel shall no longer be considered Retail Commercial Property and shall be classified and taxed according to its use, as determined by the CFD Administrator.
"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of IA No. 18 which are not exempt from the Special Tax pursuant to law or Section E below.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

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Attachment: RMA CFD 2006-1, IA 18 01 (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2006-01) City of Cathedral City May 10, 2023
IA No. 18 of CFD No. 2006 -1 (Canyon Springs Villas Apartments ) Page 4 "Welfare Exemption" means, for each Fiscal Year, any Assessor's Parcel that is used exclusively for charitable, hospital, or religious purposes and that has a property tax welfare exemption as indicated in the County’s assessor’s roll finalized as of the last preceding January 1.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within IA No. 18 shall be classified as Developed Property or Undeveloped Property and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Section C. Residential Property shall be assigned to Land Use Class 1. Non-Retail Commercial/Industrial Property shall be assigned to Land Use Class 2.

C. MAXIMUM SPECIAL TAX

1. Developed Property
a. Maximum Special Tax
The Maximum Special Tax for Fiscal Year 2023-2024 for each Land Use Class is shown below in Table 1.

TABLE 1
Maximum Special Tax for Developed Property
For Fiscal Year 2023-2024
Improvement Area No. 18
Land Use
Class Description Maximum Special Tax
1 Residential Property $662.87 per unit
2 Non-Retail
Commercial/Industrial
Property
$0.1541 per square foot of
Floor Area
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1,2024, the Maximum Special Tax shall be increased (but not decreased) by the percentage change in the Consumer Price Index not to exceed one percent (1%) per Fiscal Year.

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Attachment: RMA CFD 2006-1, IA 18 01 (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2006-01) City of Cathedral City May 10, 2023
IA No. 18 of CFD No. 2006 -1 (Canyon Springs Villas Apartments ) Page 5 c. Multiple Land Use Classes
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that can be levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor’s Parcel.

2. Undeveloped Property
No Special Tax shall be levied on Undeveloped Property.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2023-2024 and for each following Fiscal Year, the Council shall levy the Special Tax on each Assessor’s Parcel of Developed Property at 100% of the applicable Maximum Special Tax.

E. EXEMPTIONS
No Special Tax shall be levied on Retail CommercialProperty, Property Owner Association Property, Public Property, or any Assessor’s Parcel that has a Welfare Exemption. However, should an Assessor’s Parcel no longer be classified as Retail Commercial Property, Property Owner Association Property, Public Property, or have a Welfare Exemption, its tax-exempt status will, without the necessity of any action by the Council, terminate.

F. APPEALS AND INTERPRETATIONS
Any landowner or resident may file a written appeal of the Special Tax on his/her property wi th the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant’s property and/or provide a refund to the appellant. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for its disagreement with the CFD Administrator’s determination.

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Attachment: RMA CFD 2006-1, IA 18 01 (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2006-01) City of Cathedral City May 10, 2023
IA No. 18 of CFD No. 2006 -1 (Canyon Springs Villas Apartments ) Page 6 Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valoremproperty taxes; provided, however, that IA No. 18 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

H. TERM OF SPECIAL TAX
The Council is authorized to levy the Special Tax in perpetuity.

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Attachment: RMA CFD 2006-1, IA 18 01 (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2006-01)

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Attachment: Cathedral City CFD 2006-1 IA 18 Boundary Map (3778 : Resolution of Intention to Establish Improvement Area (IA) No. 18 - CFD 2006-01)

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Staff Report

City Council

Item No. 3.E

Meeting Date: June 14, 2023
From: Charles McClendon, City Manager
Title: Amendment to the City Manager Contract

City Council

RECOMMENDATION:

To approve the seventh amendment to the City Manager contract re sulting in an annual salary of $233,886 effective July 1, 2023 and an annual salary of $240,704 effective January 1, 2024.

BACKGROUND:

On August 10 , 2022, City Council approved the sixth amendment to the employment contract with the City Manager.

On February 22, 2023, City Council conducted the annual performance evaluation with the City Manager.

DISCUSSION:

This seventh amendment to the agreement makes the following changes:

Section 4.a. Salary. Section 4.a. “Salary” of the Employment Agreement is a mended to read as follows:
“4.a. Salary. Employee shall be paid an annual base salary of $233,886 commencing July 1, 2023, which annual base salary shall increase to $240,704 commencing January 1, 2024. Payments shall be made in accordance with the City’s normal payroll practices and procedures. Employee’s salary may be adjusted at the sole discretion of the City Council. Any increase or decrease is not effective until the Parties draft and sign an amendment to this Agreement that states the new annual base salary and the effective date of that new salary which is adopted by the City Council at a duly noticed public meeting. If the Employee possesses a Master’s Degree he is entitled to an educational stipend equal to five-percent (5%) of base salary pursu ant to the Executive Policy, which is subject to change at the discretion of the City Council.

Section 4.c. Employee Compensation. Section 4.c. “Deferred Compensation” of the Employment Agreement is amended to read as follows:

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“4.c. Deferred Compensation. Employee shall be eligible to participate in a deferred compensation (457) plan selected by Employee from providers offered by the City. The City will make, on an annual basis, prorated per pay period, a total contribution of $30,000, subject to any app licable IRS rules and regulations.

Employee may make additional contributions as allowed by the selected plan and by applicable IRS rules and regulations.

FISCAL IMPACT:

The total cost of the salary increase for FY 2023-2024 is $10,312.50. The cost of t he deferred compensation increase for calendar year 2023 is $13,570.

FIVE-YEAR STRATEGIC PLAN:

N/A

ATTACHMENTS:

City Manager Employment Agreement - Seventh Amendment

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1 SEVENTH AMENDMENT TO

EMPLOYMENT AGREEMENT FOR THE POSITION OF

CITY MANAGER

by and between

the

CITY OF CATHEDRAL CITY

and

CHARLES McCLENDON

Dated: June 14, 2023

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Attachment: City Manager Employment Agreement - Seventh Amendment (3768 : City Manager Employment Contract - 7th Amendment) 2 SEVENTH AMENDMENT TO EMPLOYMENT AGREEMENT

FOR THE POSITION OF

CITY MANAGER
This Seventh Amendment to Employment Agreement for the Position of City Manager (“Seventh Amendment”) is made and entered into and is effective this 14th day of June 2023, by and between the CITY OF CATHEDRAL CITY, a California charter city, (“City”) and CHARLES McCLENDON, an individual, (“Employee”) (hereinafter City and Employee may be jointly referred to as the “Parties”) on the following terms and conditions:

RECITALS
A. The Parties entered into that Employment Agreement for the Position of City Manager (“Employment Agreement”) on January 22, 2014. The Employment Agreement has been amended numerous time, and was last amended on August 10, 2022, by the Sixth Amendment to Employment Agreement, inclusive (“Prior Amendments”).

B. The purpose of this Seventh Amendment is to amend Section 4.a “Salary” to provide for a 3% cost of living adjustment to Employee’s base salary commencing of July 1, 2023 and a subsequent 3% cost of living adjustment commencing January 1, 2024, and to amend Section 4.c “Deferred Compensation” to provide Employee with an increase to the CITY’s annual contribution to Employee’s deferred compensation plan.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the promises made and recited herein, the Parties do hereby enter into thi s Sixth Amendment which modifies and amends the Agreement and Amendments, as follows:

1. Amendments
a) Section 4.a. Salary. Section 4.a. “Salary” of the Employment Agreement is amended to read as follows:
“4.a. Salary. Employee shall be pa id an annual base salary of $233,886 commencing July 1, 2023, which annual base salary shall increase to $240,704 commencing January 1, 2024 . Payments shall be made in accordance with the City’s normal payroll practices and procedures.

Employee’s salary may be adjusted at the sole discretion of the City Council.

Any increase or decrease is not effective until the Parties draft and sign an amendment to this Agreement that states the new annual base salary and the effective date of that new salary which is adopted by the City Council at a duly noticed public meeting. If the Employee possesses a Master’s Degree he is entitled to an educational stipend equal to five -percent (5%) of base salary pursuant to the Executive Policy, which is subject to change at the discretion of the City Council.

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Attachment: City Manager Employment Agreement - Seventh Amendment (3768 : City Manager Employment Contract - 7th Amendment) 3 b) Section 4.c. Employee Compensation . Section 4.c. “ Deferred Compensation” of the Employment Agreement is amended to read as follows:
“4.c. Deferred Compensation. Employee shall be eligible to participate in a deferred compensation (457) plan selected by Employee from providers offered by the City. The City will make, on an annual basis, prorated per pay period, a total contribution of $30,000, subject to any applicable IRS rules and regulations. Employee may make additional contributions as allowed by the selected plan and by applicable IRS rules and regulations.

2. General Provisions: The following general provisions shall apply. a) Remainder Unchanged. Except as specifically modified and amended in this Seventh Amendment, the Agreement, inclusive of the Past Amendments, remains in full force and effect and binding upon the Parties. b) Integration. This Seventh Amendment consists of pages 1 through 4 inclusive, which constitute the entire understanding and agreement of the Parties and supersedes all negotiations or previous agreements between the Parties with respect to all or any part of the transaction discussed in this Seventh Amendment.
c) Effective Date. This Seventh Amendment shall not become effective until the date it has been formally approved by the City Council and executed by the appropriate authorities of the City and by McClendon. d) Applicable Law . The laws of the State of California shall govern the interpretation and enforcement of this Seventh Amendment. e) References. All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this Sixth Amendment have the same meaning as provided in the Agreement and prior Amendments, unless expressly stated to the contrary in this Sixth Amendment.

////

////
[SIGNATURES ON PAGE 4]

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Attachment: City Manager Employment Agreement - Seventh Amendment (3768 : City Manager Employment Contract - 7th Amendment) 4 IN WITNESS WHEREOF, the Parties hereto have executed this Sixth Amendment on the date first indicated above.

CITY OF CATHEDRAL

_________________________
Rita Lamb, Mayor

EMPLOYEE
____________________________
Charles McClendon

ATTEST: APPROVED AS TO FORM:

____________________________ ___________________________ Tracey Hermosillo, City Clerk Eric S. Vail, City Attorney

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Attachment: City Manager Employment Agreement - Seventh Amendment (3768 : City Manager Employment Contract - 7th Amendment)

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Staff Report

City Council

Item No. 3.F

Meeting Date: June 14, 2023
From: John Corella, Director of Engineering/Public Works Title: Notice of Completion for FY 22 -23 Citywide Rubberized Emulsion Aggregate Slurry (REAS) Projects

City Council

RECOMMENDATION:

To accept and approve the following REAS Projects: La Pasada Neighborhood (C08664), Avenida Maravilla (C08658), Date Palm Drive (I -10 to Varner Road) (C08657), and Avenida La Vista/La Paz (C08655), as final; and, authorize the City Manager to file a Notice of Completion with the Riverside County Recorder's office; and authorize the release of retention funds to Petrochem Materials Innovation, LLC (PMI) upon expiration of the Notice of Completion.

BACKGROUND:

On March 8, 2023, the City Council approved a construction contract with Petrochem Materials Innovation LLC. (PMI) in the amount of $1,038,633.92 with a 15% contingency of $155,796.08 for unforeseen construction circumstances, inspection and other technical services related to the Project, thereby making the total construction budget $1,194,430 for the Project.

The scope of the Project consists of a pplication of Rubberized Emulsion Aggregate Slurry (REAS) on La Pasada Neighborhood streets, Avenida Maravilla, Avenida La Paz, Avenida La Vista, and Date Palm Drive, including traffic control, crack seal, and striping replacement.

DISCUSSION:

Construction started on March 22, 2023, and was completed on May 24, 2023.

City Staff reviewed and inspected the improvements and found the Project wa s built in accordance with all contract requirements, and therefore recommends the City Council accept the Project as complete.

City Council acceptance is required to approve the Project’s final contract amount and release retention funds. Retention fund s are monies earned by the Contractor that are

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withheld from progress payments pending satisfactory completion and final acceptance of the Project. City Staff reviewed and inspected the improvements and found the Project was built in accordance with all co ntract requirements, and therefore recommends acceptance of the Project as complete.

Additionally, City Council acceptance of the Project requires that a Notice of Completion (NOC) be filed with the Riverside County Recorder’s office. The NOC is a written notice issued by the owner of a Project, or their agent, to notify concerned parties that all work on the Project has been completed. This notice also sets the period, which is 30 days from the date the NOC is filed, within which concerned parties may exe rcise their lien rights against one another. Once the thirty -day period has expired, and provided no claims or liens are received, the City can release retention funds.

City Staff recommends that the City Council a ccept and approve the following REAS Projects: La Pasada Neighborhood (C08664), Avenida Maravilla (C08658), Date Palm Drive (I-10 to Varner Road) (C08657), and Avenida La Vista/La Paz (C08655), as final; and authorize the City Manager to file a Notice of Completion with the Riverside County Recorder's office on behalf of the City Council; and authorize the release of retention funds to Petrochem Materials Innovation, LLC (PMI) upon expiration of the Notice of Completion.

FISCAL IMPACT:

The fiscal impact of the construction contract with PMI is as follows:

Construction Budget

Construction Cost

The total contract amount for PMI, including all additions and subtractions for constructed quantities, came to $1,038,633.92. Therefore, the comparison between actual budget and charges are as follows:

Project Funding
Source
CIP
Budget
PMI
Estimated
Amount
15%
Contingency
Total

La Pasada
Neighborhood
SB-1/RMRA
Fund 248
$650,000 $424,009.35 $63,601.65 $487,611
Avenida
Maravilla
FY 22-23
MOE
Fund 100
$280,000 $273,440.40 $41,016.60 $314,457
Avenida La
Vista/La Paz
FY 22-23
MOE
Fund 100
$225,000 $211,423.62 $31,713.38 $243,137
Date Palm
Drive
FY 22-23
MOE
Fund 100
$280,000 $129,760.55 $19,464.45 $149,225
TOTALs $1,435,000 $1,038,633.92 $155,796.08 $1,194,430

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Council
Authorization
Project
Budget Actual Charges Remaining
Budget
Original Contract $1,038,633.92 $1,023,628.43 $15,005.49 Contingency $155,796.08 $0.00 $155,796.08
Change Orders $0.00 $0.00 $0.00
Payments to Date $927,447.00 $0.00
Retention Due $51,181.42

The final invoice (5% retention) in the amount of $51,181.42 will be released 30 days from the date that the NOC is filed if there are no claims or discrepancies in the work completed.

FIVE-YEAR STRATEGIC PLAN:

GOAL B: COMMUNITY INVESTMENT
Objective: Cathedral City ro ads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.

ATTACHMENTS:

Notice of Completion

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(“President of,” “Manager of,” “A partner of,” “Owner of,” etc.)

RECORDING REQUESTED BY

AND WHEN RECOR
DED MAIL TO:

Name
Street

Address
Ci
ty &
State
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
Notice is hereby
given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is

3. The full address of the owner is

4. The natu
re of the interest or estate of the owner is in fee.
(If other than fee, strike “in Fee” and insert, for example, “purchaser under contract of purchase,” or “lessee”)

5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are:

NAMES ADDRESSES

6. A w
ork of improvement on the property hereinafter described was completed on . The work done was:

7. The name o
f the contractor, if any, for such work of improvement was (If no contractor for work of improvement as a whole, insert “none”) (Date of Contract)

8. The property on which said work of improvement was completed is in the city of , County of , State of California, and is described as follows:

9. The street a
ddress of said property is
(If no s treet address has been officially assigned, insert “none”) Dated:

Signature of owner of corporate officer of owner
named in paragraph 2 or his agent

VERIFICATION
I, the undersigned, say: I am the the declarant of the foregoing notice of completion; I have read said notice of completion and know the contents thereof; the same is true of my own knowledge.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on , 20 , at , California.
(D ate of signature) (C ity where signed)
(Personal signature of the individual who is swearing that the contents of the notice of completion are true)

S R U PAGE SIZE DA MISC LONG RFD COPY
M A L 465 426 PCOR NCOR SMF NCHG
T: CT Y UNI
EXAM

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Attachment: Notice of Completion (3776 : Notice of Completion for FY 22-23 Citywide REAS Projects)

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Staff Report

City Council

Item No. 3.G

Meeting Date: June 14, 2023
From: John Corella, Director of Engineering/Public Works Title: Tract No. 38137: Approval of Final Map and Subdivision Agreement: Reflections at Cimarron, LLC: (James Shute):

Subdivider

City Council

RECOMMENDATION:

To approve the Final Map for Tract No. 38137; and, accept the dedications offered on the Final Map for public street and public utility easement purposes; and approve the Subdivision Agreement for Tract No. 36137 an d authorize its execution by the Mayor and City Clerk.

BACKGROUND:

Tentative Tract No. 38137 was approved by the City Planning Commission on December 15, 2021, for a thirteen (13) lot sing le family dwelling subdivision on vacant land on the north side o f McCallum Way, west of Landau Boulevard. A copy of the Tract Map 38137 is attached for location reference.

This vacant land has been entitled prior with a n earlier Tentative Tract No. 36832 approved on the same property in 2014. This entitlement resulted in only the first phase of the map, Tract No. 36832-1, being recorded in 2015 consisting of four (4) lots created fronting Elizabeth Road. The balance of that tentative map expired without any development.

This new Tract No. 38137 will be served by a gated private street, Reflections Place .

Reflections Place will be maintained by a Homeowner’s Association (HOA).

Additionally, the entire development will drain into a retention basin, which will also be owned and maintained by the HOA.

DISCUSSION:

Staff has reviewed the proposed Covenants, Conditions and Restrictions (CC&Rs) for the HOA and is satisfied that this document adequately provides for the maintenance of the Tract’s infrastructure, roadway and its drainage facilities.

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Reflections at Cimar ron, LLC, (Subdivider), based in Irvine, California, has prepared a Final Map for the 13 residential lots, and has executed the attached Subdivision Agreement (Agreement), covering the obligations to complete the required public and private street, water and sewer improvements. The Subdivider has posted surety bonds guaranteeing faithful performance of the Agreement, in the amount of $324,000, and has posted a Cash Bond for placement of the required survey monuments and lot corners in the amount of $4,660.

In addition, the Subdivider has paid the required Quimby park fees per Chapter 9.106 of the Municipal Code, in the amount of $34,518.

This Tract has been annexed into the City Community Facilities District (CFD), and the individual lot buyers will be ta xed annually for their proportionate share of the financial impact of the Tract for City services such as, Police, Fire, Paramedic, Park and General Maintenance.

All conditions of the Tentative Map have been met, and the Final Map meets the requirements of the State Subdivision Map Act and City codes.

ENVIRONMENTAL ANALYSIS:

When the Tentative Map was approved, the Planning Commission approved an Environmental Determination which justified a CEQA Class 32 (In -Fill Development) Categorical Exemption for this Project.

Staff therefore recommends that the City Council approve the Final Map for Tract No. 38137; and accept the dedications offered on the Final Map for public street and public utility easement purposes; and approve the Subdivision Agreement for Tract No. 36137 and authorize its execution by the Mayor and City Clerk.

FISCAL IMPACT:

Approval and recordation of the Final Map will allow construction of thirteen (13) new single-family residences. Ordinarily, the construction and occupancy of singl e-family units would cause minor additional fiscal constraints in the ability of the City of Cathedral City to meet expected demands for public services from the new residents within this development.

However, since the development has been annexed into the City -wide Community Facilities District (CFD) to offset the actual costs of services , such as, Police, Fire, Paramedic, Park and General Maintenance , it is expected the special tax generated by the CFD will assist in offsetting any financial impacts caused by these demands.

FIVE-YEAR STRATEGIC PLAN:

GOAL C: FISCAL STABILITY AND SUSTAINABILITY
Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community . We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.

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ATTACHMENTS:

TRACT MAP 38137 Sheets 1 and 2
TR 38137 Subdivision Agreement signed

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No. 7070PHILLIP K. FOMOTOR
O

IATSLFOTEFILCA ESECNLDANDNRIAROYEVSRU
No. 18731V FTASRTIOEFCC RSEGITEEDDADVIRPOFEIANILLAIFRORELSAEESOSSIANIENEGNLR.

IN THE CITY CATHEDRAL CITY, COUNTY OF RIVERSIDE, STATE OF CALIFORNIATRACT MAP 38137 VTASRTIOEFCC RSEGITEEDRPOFEIANILLAIFRORELOSSIANIENEGN NO. 70102ARMANDO J. GARCIA BALDIZZONE

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Attachment: TRACT MAP 38137 Sheets 1 and 2 (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137) IN THE CITY CATHEDRAL CITY, COUNTY OF RIVERSIDE, STATE OF CALIFORNIATRACT MAP 38137

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Attachment: TRACT MAP 38137 Sheets 1 and 2 (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Attachment: TR 38137 Subdivision Agreement signed (3794 : Approval of Final Map and Subdivision Agreement for Tract No. 38137)

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Staff Report

City Council

Item No. 5.A

Meeting Date: June 14, 2023
From: Kevin Biersack, Financial Services Director
Title: Annual Renewal of the Lighting & Landscaping District (LLD) Budget

City Council

RECOMMENDATION:

To hold a public hearing , adopt resolutions approving the final engineer's report, and order the levy and collection of annual assessments for the sixteen (16) existing benefit zones for the annual renewal of the Lighting and Landscaping District Budget for FY 2023/2024.

BACKGROUND:

In August 2001, the City Council adopted Res. 2001-57 which approved the formation of an assessment district created under the Street Landscaping and Lighting Maintenance District Act of 1972. The original district was initiated with six (6) propose d benefit zones, but after the required Proposition 218 ballot process, only four Benefit Zones were approved. Since the initial formation, annexations of additional zones have been approved by City Council and passed by property owners through the Proposi tion 218 ballot process, for a total of sixteen (16) current zones. The 1972 Act provides that assessments may be levied annually. Proposition 218 laws provide assessment increase limitations not to exceed the annual Consumer Price Index (CPI) annual percentage adjustment. Assessments for labor, material and utility increases cannot exceed the Maximum Assessment Rate for each zone. Re-balloting would be required if the City would pursue increasing beyond the CPI limitations or if the scope of work accomplished by the landscaping and lighting district (LLD) zone were to change.

DISCUSSION:

Under the Final Engineer's Report, to be approved with this Agenda Item, there are no LLD Zone levy increases exceeding the CPI limitation as currently proposed. The prescribed process included the City Council previously adopting resolutions on May 10, 2023 which included scheduling a Public Hearing date for June 14, 2023. The Public Hearing was duly published and made available on June 1, 2023. The Final Engineer's Report and Levy for LLD Zones 1 through 54 is presented in the attached report. After the Public Hearing is closed, the Council may pass a Resolution approving the

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Engineer’s Report and a Resolution regarding the Establishment of the Maximum Assessment and Ordering the Levy and Collection of the Assessment. Final acceptance of the Engineer's Report and the Resolution Ordering the Levy and Collection of Assessment will allow the County to assess the appropriate levies on the FY 2023/2024 tax bills.

FISCAL IMPACT:

Final acceptance of the Engineer’s Report and the Resolution Ordering the Levy and Collection of Assessment will allow the City to collect the appropriate levies from the parcel owners for these 16 LLD zones. Two of these LLD zones provide for a 100% contribution from the City’s General Fund in the amount of $3 19,935.25 for the maintenance of public parks (Century Park and Panorama Park). In addition, the arterial streetlights in the LLD zones are funded with a 50% contribution from the City's General Fund in the amount of $17,769.45.

FIVE-YEAR STRATEGIC PLAN:

Goal C – Fiscal Stability and Sustainability

ATTACHMENTS:

FY 2324 Cathedral City Public Hearing & Ordering the Levy Resolution FY 2324 Cathedral City Final Engineer's Report Resolution FY 2324 Cathedral City-Final Engineers Report

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RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY

ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN THE STREET LIGHTING AND LANDSCAPE MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2023/2024

The City Council of the City of Cathedral City (he reafter referred to as the “City Council”) does resolve as follows:

WHEREAS, The City Council has by previous Resolutions initiated proceedings and declared its intention to levy special benefit assessments against parcels of land within the Street Lighting and Landscape Maintenance District No. 1 (hereafter referred to as the “District”) for the fiscal year commencing July 1, 2023 and ending June 30, 2024; pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereinafter referred to as the "Act") to pay the costs and expenses of operating, maintaining and servicing landscaping, lighting and appurtenant facilities located within public places in the District; and,

WHEREAS, The Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer’s Annual Levy Report (hereafter referred to as the “Report”) in connection with the proposed levy and collection of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution approve such Report; and,

WHEREAS, The City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2023 and ending June 30, 2024, to pay the costs and expenses of operating, maintaining and servicing landscaping improvements and street lighting improvements an d appurtenant facilities located within public places in the District; and,

WHEREAS, The City Council has previously conducted a property owner protest ballot proceeding as part of the formation of the District and any increase in assessments pursuant t o the applicable provisions of the California State Constitution Article XIIID and said District assessments proposed to be levied for Fiscal Year 2023/2024 are described in the approved Report.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS:

Section 1: Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving or amending the Report prepared in connection therewith; the lev y and collecti on of assessments, and considered all oral and written statements, protests and communications made or filed by interested persons. The City Council has determined that the property owners in accordance with the requirements of the California State Constit ution, Article XIIID have approved the assessments so presented.

Section 2: Based upon its review (and amendments, as applicable) of the Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk, the City Council hereby finds and determines that:

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a) The land within District will receive special benefit by the operation, maintenance and servicing of landscaping, lighting, and appurtenant facilities within the boundaries of District.
b) The District includes all of the lands receiving such special benefit. c) The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among all eli gible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2023 and ending June 30, 2024.

Section 3: The Report and assessment as presented to the City Counci l and on file in the office of the City Clerk are hereby confirmed as filed.

Section 4: The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance, operation, administration and servicing of the improvements including turf, ground cover, shrubs and trees, irrigation systems, street lighting, water features, entry monuments, drainage systems and all appurtenant facilities related thereto.

Section 5: The maintenance, operation and servi cing of the landscaping, lighting and appurtenant facilities shall be performed pursuant to the Act and the County Auditor of Riverside shall enter on the County Assessment Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer.

Section 6: The City Treasurer shall deposit all money representing assessments collected by the County for the Dis trict to the credit of a fund for the Street Lighting and Landscape Maintenance District No. 1, and such money shall be expended only for the maintenance, operation and servicing of the landscaping, lighting and appurtenant facilities as described in Section 4.

Section 7: The adoption of this Resolution constitutes the District levy for the Fiscal Year commencing July 1, 2023 and ending June 30, 2024.

Section 8: The City Clerk is hereby authorized and directed to file the levy with the County Auditor upon adoption of this Resolution.

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Attachment: FY 2324 Cathedral City Public Hearing & Ordering the Levy Resolution (3777 : ANNUAL RENEWAL OF THE LIGHTING & RESOLUTION NO. _____________

PASSED, APPROVED, AND ADOPTED THIS ___________ DAY OF ________________, 2023.

AYES:

NOES:

ABSENT:

ABSTAINED:

___________________________
Mayor

ATTEST:

____________________________
City Clerk

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

_____________________________ ____________________________ City Attorney Department Head

REVIEWED:

_____________________________
City Manager

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Attachment: FY 2324 Cathedral City Public Hearing & Ordering the Levy Resolution (3777 : ANNUAL RENEWAL OF THE LIGHTING & RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY, CALIFORNIA, AMENDING AND/OR APPROVING THE FINAL ENGINEER’S

ANNUAL LEVY REPORT FOR THE STREET LIGHTING AND LANDSCAPE MAINTENANCE DISTRICT NO. 1 FISCAL YEAR 2023/2024

The City Council of the City of Cathedral City (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, The City Council, pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code , did by previous Resolution order the Engineer, Willdan Financial Services, to prepare and file a report in accordance with Article 4 of Chapter 1 of Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22565, in connection with the proposed levy and collection of assessments for the Street Lighting and Landscape Maintenance District No. 1 (hereafter referred to as the “District”) for the fiscal year commencing July 1, 2023 and ending June 30, 2024; and,

WHEREAS, The Engineer has prepared and filed with t he City Clerk of the City of Cathedral City and the City Clerk has presented to the City Council such report entitled “Engineer’s Annual Levy Report, Street Lighting and Landscape Maintenance District No. 1, Fiscal Year 2023/2024” (hereafter referred to as the “Report”); and,

WHEREAS, The City Council has carefully examined and reviewed the Report as presented, and is satisfied with each and all the items and documents as set forth therein, and finds that the levy has been s pread in accordance with th e s pecial benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Report; and,

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS:

Section 1: The above recitals are all true and correct.

Section 2: The Report as presented, consists of the following:

a) A Description of the District and Improvements.
b) The Annual Budget (Costs and Expenses of Services, Operations and Maintenance)
c) A Description of the Method of Apportionment resulting in an Assessment Rate per Levy Unit for each zone within said District for Fiscal Year 2023/2024.

Section 3: The Report as presented, is hereby approved (as amended), and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.

Section 4: The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the presentation and final approval of the Report.

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PASSED, APPROVED, AND ADOPTED THIS ___________ DAY OF ________________, 2023.

AYES:

NOES:

ABSENT:

ABSTAINED:

___________________________
Mayor

ATTEST:

____________________________
City Clerk

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

_____________________________ ____________________________ City Attorney Department Head

REVIEWED:

_____________________________
City Manager

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Attachment: FY 2324 Cathedral City Final Engineer's Report Resolution (3777 : ANNUAL RENEWAL OF THE LIGHTING & LANDSCAPING

City of Cathedral City

Street Lighting and Landscaping
Maintenance District No.1

2023/2024 ENGINEER’S ANNUAL LEVY REPORT

Intent Meeting: May 10, 2023
Public Hearing: June 14, 2023

27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500 | 800.755.6864
F 951.587.3510

www.willdan.com

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TABLE OF CONTENTS

I. OVERVIEW ........................................................................................................... 1

II. DESCRIPTION OF THE DISTRICT .............................................................. 1

A. Improvements Within the District ....................................................... 1

B. District Zone Boundaries and Improvements ..................................... 2

C. Improvements Authorized By The 1972 Act ....................................... 8

III. Method of Apportionment ............................................................................. 9

A. General .............................................................................................. 9

B. Methodology .................................................................................... 10

C. Assessment Adjustment Formula to Offset Inflation ......................... 12

IV. DISTRICT BUDGET ......................................................................................... 13

A. Description of Budget Items ............................................................. 13

APPENDIX A ............................................................................................ 18

APPENDIX B ............................................................................................ 19

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I. OVERVIEW

The City of Cathedral City (“City”) annually levies and collects special assessments in order to provide and maintain improvements within the Street Lighting and Landscaping Maintenance District No. 1 (“District”). In August 2001, the District was formed by passage of City Council Resolution No. 2001-57, after a public hearing and protest ballot process in accordance with Article XIIID of the California Constitution (“Article XIIID”). The District was originally formed with four (4) benefit zones (“Zones”) and, along with all subsequent annexations of additional Zones, is described herein. The District assessment is levied annually pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the “1972 Act”) and Article XIIID.

This Engineer’s Annual Levy Report (“Report”) describes the District and improvements, any proposed changes to the District or improvements and the proposed budgets and assessments for Fiscal Year (“FY”) 2023/2024. The assessments are based on the City’s estimated cost to maintain the improvements that provide a special benefit to properties assessed within the District. The improvements within the District and the corresponding costs and the annual levy are budgeted and assessed for each separate Zone, including expenditures, deficits, surpluses, revenues, and reserves.

For the purposes of this Report, the word “parcel” refers to an individual property assigned its own Assessor’s Parcel Number by the Riverside County (“County”) Assessor’s Office.

The County Auditor/Controller uses Assessor’s Parcel Numbers and specific Fund Numbers to identify properties assessed for special district benefits on the County tax roll.

Following consideration of public comments and written protests at a noticed public hearing, the City Council may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report and confirmation o f the assessments, the City Council may then order the levy and collection of assessments for FY 2023/2024 pursuant to the 1972 Act. In such case, the assessment information will be submitted to the County Auditor/Controller and included on the property tax roll for each benefiting parcel in FY 2023/2024.

II. DESCRIPTION OF THE DISTRICT

A. Improvements Within the District
The improvements in each of the Zones of the District include the operation, maintenance, rehabilitation and servicing of landscaping, lighting and appurtenant facilities including but not limited to, the cost of personnel, electrical energy, water service, materials, equipment, contracting services, and other items necessary for the satisfactory operation of these services described as follows:

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Landscaping and Appurtenant Facilities

Landscaping improvements include but are not limited to: ground cover, shrubbery, trees, irrigation systems, hardscapes, fixtures ; sidewalk maintenance resulting from landscape growth, drainage basin cleaning and maintenance, graffiti removal, and related facilities ; and work in public rights -of-way, medians, parkways and dedicated easements within the boundaries of said District.

Lighting and Appurtenant Facilities

Street lighting improvements include but are not limited to: energy costs, poles, fixtures, bulbs, conduits, conductors, equipment (including guys, anchors, posts and pedestals), metering devices and appurtenant facilities required to provide safety lighting and landscape lighting in public rights -of-way, medians, parkways and dedicated easements.

The public lighting system in each of the Zones is maintained to provide adequate illumination. Power for streetlights is furnished by the Southern Califo rnia Edison Company. Rates for power are those authorized by the California Public Utilities Commission.

“Maintenance” means the furnishing of services, materials and labor for the ordinary and usual operation, maintenance, care and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, public lighting facilities or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; and the removal of trimmings, rubbish, debris and other solid waste; the replacement of dead or dying vegetation, plants and (50%) trees; the cleaning, sandblasting, and painting of walls and other improvements to remove graffiti; and the cleaning, grading, disking, and maintenance of drainage basins to maintain their appearance, percolation, and storage volume.

“Servicing” means the furnishing of water for the irrigation of the landscaping and the furnishing of electric current, gas or other illuminating agent for the public lighting facilities, or for the decorative lighting or operation of landscaping or appurtenant facilities.

The plans and specifications for the improvements are on file in the office of the City Engineer and are by reference herein made a part of this Report.

B. District Zone Boundaries and Improvements
The District is presently divided into sixteen (16) Zones, based on the special benefit received by the property within each of the respective Zones.

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Zone One (Vista Del Rey, Tract 29664)

Zone One consists of seventy-two (72) single -family residential parcels located south of 30th Avenue east of Date Palm Drive. There are two (2) arterial streetlights located on 30 th Avenue and nine (9) located within the interior streets of the development. Landscaping improvements maintained in this Zone include the parkway on 30th Avenue associated with the development.

Zone Two (La Paloma, Tract 29584)

Zone Two consists of sixty-five (65) single-family residential parcels located on the northwest corner of 30 th Avenue and Da Vall Drive. There are six (6) arterial streetlights located on 30 th Avenue and Da Vall Drive and eight (8) located within the interior streets of the development. Landscaping improvements maintained in this Zone include the parkways on 30 th Avenue and on Da Vall Drive associated with the development. Also included is the graffiti removal from the perimeter walls along both 30th Avenue and Da Vall Drive and maintenance of a drainage basin.

Zone Five (Tapestry, Tract 29487 and Tract 29487-1)

Zone Five consists of eighty (80) single-family residential parcels, located at the southwest corner of 30 th Avenue and Santoro Drive. There are three (3) arterial streetlights located on 30 th Avenue and Santoro Drive and nine (9) located within the interior streets of the development. Landscaping improvements maintained in this Zone include the parkways on 30 th Avenue and on Santoro Drive associated with the development. Also included is the graffiti removal from the perimeter walls along both 30th Avenue and Santoro Drive.

Zone Seven (Montage, Tract 29771)

Zone Seven consists of one hundred twenty -eight (128) single -family residential parcels, located at the southwest corner of Gerald Ford Drive and Da Vall Drive, of which 50% is in the City of Cathedral City and the other 50% is in the City of Rancho Mirage. The City of Rancho Mi rage’s landscape contractor maintains the landscaping and irrigation. There are twelve (12) arterial streetlights located on Gerald Ford Drive and Da Vall Drive. Landscaping improvements maintained in this Zone include a raised median island on Gerald Ford Drive and on Da Vall Drive associated with the development. Also included is the graffiti removal from the perimeter walls along both Gerald Ford Drive and Da Vall Drive.

Zone Eight (Baristo, Tract 30256 and Tract 30256-1)

Zone Eight consists of forty-two (42) single-family residential parcels, located south of McCallum Way and west of Santoro Drive, at the ends of Victor Road, Neuma Road, and El Toro Road. Tract 30256 has twenty-two (22) single-family residential parcels and Tract 30256 -1 has twe nty (20) single -family residential parcels. The improvements maintained for this residential subdivision include four (4) interior streetlights on the four streets of the development.

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Zone Nine (La Pasada Neighborhood, Tract 27097-8)

Zone Nine consists of eighty-six (86) single-family residential parcels, located on interior public streets, abutting Vista Chino, an arterial highway, and bisected by Avenida Maravilla, a collector street which intersects Vista Chino and is also the main entryway into the La Pasada development.

The improvements maintained and asses sed to this Zone include the streetlights on the interior streets of Tract 27097-8, and the Zone’s proportional special benefit from the maintenance and upkeep of the Vista Chino and Avenida Maravilla landscaping, street lighting improvements, and graffiti removal. Zone Nine represents 27.4% of the total number of parcels in the La Pasada Neighborhoood that benefit from improvements on Vista Chino and Avenida Maravilla. These properties are assessed proportionately for the cost of those improvements based on 27.4%. There are three (3) arterial streetlights and six (6) interior streetlights within this Zone.

Zone Eleven (Downtown Core Area, Tract 28339)

Zone Eleven consists of eleven (11) parcel s. Ten (10) parcels in the Zone are commercial/industrial development with a combined acreage of 14.77. One (1) parcel in the Zone is a multi-family residential development comprised of sixty-one (61) units. The Downtown Core area is designated in the Downtown Specific Plan.

It includes the Cathedral Ci ty Civic Center, a parking structure, theaters, Town Square and Downtown commercial-retail development sites. The properties within this Zone benefit from five (5) arterial streetlights located along the sidewalk and parkway areas of both East Palm Canyon and Cathedral Canyon Drive, as well as forty-six (46) interior streetlights located in the Core area.

Zone Twelve (Mercy Housing Project)

Zone Twelve consists of two (2) multi-family residential parcels comprised of a total of seventy-five (75) units. The Mercy Housing project is an affordable housing project on the block between “A” Street and “ C” Street, and between Cathedral Canyon Drive and West Buddy Rogers Avenue. The project site was originally comprised of fifteen (15) parcels, which were combined into one large parcel that was subsequently split into two (2) parcels. The Zone also incudes a 5,000 Sq. Ft. senior center area. The improvements maintained by the Zone include streetlights and landscaping. The operators of the development maintain the landscaping improvements around the site and in the street parkways. There are six (6) streetlights around the perimeter of the site; one (1) arterial streetlight is on Cathedral Canyon Drive and the other five (5) are within the interior of the Zone.

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Zone Fifteen (Landau Homes, Tract 21491 & 24982)

Zone Fifteen consists of one hundred eleven (111) single-family residential parcels located in the subdivision known as Landau Homes. Zone Fifteen is located within the boundaries of the City, generally south of 30th Avenue, north of Vega Road and west of Landau Boulevard.

Landscaping improvements maintained in this Zone include the parkway along the west of Landau Boulevard, between 30th Avenue and Vega Road and the graffiti removal along a block wall on Landau Boulevard’s west side. A total of twenty-nine (29) streetlights, including eighteen (18) interior and eleven (11) arterial, are maintained.

Zone Sixteen (Century Park, Tract 20765-1 thru 8 & 29139)

Zone Sixteen consists of five hundred ninety-nine (599) single-family residential parcels located in the subdivision collectively known as Century Park. Zone Sixteen is located within the boundaries of the City, bordered by 30th Avenue to the north, Da Vall Drive to the east, McCallum Way to the south, and Santoro Drive to the west. The parcels within the Zon e consist of only residential parcels in addition to a neighborhood park owned by the City. The improvements maintained and assessed include all streetlights within the Zone and lighting and maintenance of Century Park. There are a total of two hundred (200) streetlights within the Zone, including forty-eight (48) arterial, one hundred forty (140) interior, and twelve (12) within the park.

Zone Sixteen provides for a one hundred percent (100%) contribution from the City’s General Fund for the maintenance of the public park. In addition, the arterial street lights in this zone are funded with a fifty percent (50%) contribution from the City's General Fund.

Zone Seventeen (Panorama Park, Tract 2040 & 2232)

Zone Seventeen consists of two thousand four hundred two (2,402) parcels and is comprised of the following:
• Sixty-one (61) commercial/industrial parcels with 15.15 cumulative acreage. • One hundred twenty -two (122) multi-family residential parcels comprised cumulatively three hundred twenty-seven (327) units.
• Four (4) Mobile Home Park parcels.
• Two thousand one hundred and twenty-six (2,126) single-family residential parcels.
• Eighty-nine (89) single-family vacant residential parcels.

Zone Seventeen consists of the parcels located in the subdivisions collectively known as Panorama Park. Zone Seventeen is located within the boundaries of the City, bordered by Vista Chino to the north, Date Palm Drive to the east, 30th Avenue to the south, and Landau Boulevard to the west. The improvements maintained in Zone

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Seventeen include the maintenance and landscaping of facilities located within Panorama Park and the maintenance and servicing of one hundred seventy-three (173) streetlights within the Zone, including sixty-one (61) arterial, one hundred eight (108) interior, and four (4) within the park.

Zone Seventeen provides for a one hundred percent (100%) contribution from the City’s General Fund for the maintenance of the public park. In addition, the arterial street lights in this zone are funded with a fifty percent (50%) contribution from the City's General Fund.

Zone Eighteen (Landau Manor, Tracts 27962, 27962-1 & 30744)

Zone Eighteen contains eighty one (81) parcels. There are eighty (80) single-family residential parcels and one (1) vacant single-family residential parcel. Zone Eighteen consists of the parcels located in the subdivision known as Landau Manor. Zone Eighteen is located within the boundaries of the City, generally south of Vega Road, north of McCallum Way, east of Keith Avenue and west of Landau Boulevard. The properties within the Zone also include open space retention basins.

The improvements maintained in the Zone include: streetscape maintenance, including graffiti removal along the 6 foot high block wall on Landau Boulevard’s west side between Vega Road and McCallum Way; retention basin maintenance including clean out of debris and weed control at the thr ee sites located at the southwest sections of each development; all street lighting within the residential subdivisions in the Zone; street lights at Vega Road, McCallum Way and Landau Boulevard; and public street lighting and other public lighting facilit ies on the streets surrounding or adjacent to the development and other public areas associated or necessary for development of properties within the Zone. A total of twenty (20) streetlights, including eight (8) interior and twelve (12) ar terial, are maintained.

Zone Nineteen (Alicante, Tract 24035-1)

Zone Nineteen consists sixty-three (63) single-family residential parcels located in the subdivision known as Alicante Neighborhood. Th e Zone is located in the northwest quadrant of the intersections of McCallum Way and San Eljay Drive.

More specifically, this includes properties that are south of Rosemount Road, west of San Eljay Drive, and north of McCallum Way.

The improvements maintained in the Zone in clude the landscaping and maintenance of parkways on the north side of McCallum Way from San Eljay west approximately 600 linear feet; parkways on the west side of San Eljay Drive from McCallum Way to Rosemont Road; graffiti removal, paint and wall repairs along the masonry block wall on McCallum Way and San Eljay Drive; lighting and servicing of four (4) interior streetlights located at the end of each of the cul -de- sacs located within the tract, and nine (9) arterial streetlights located along McCallum Way, San Eljay Drive, and Rosemount Road.

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Zone Twenty (Cimarron, Tract 25804-1)

Zone Twenty consists of thirty-two (32) single-family residential parcels located in the subdivision known as Cimarron Neighborhood. The Zone is located in the northeast quadra nt of the intersection of 30 th Avenue and Santoro, the interior streets of Borrego Road, Santa Rosa Street and Cimarron Court.

The improvements maintained in the Zone include the landscaping and maintenance of two (2) landscaped parkways to include a total of 16,000 square feet in the north side of 30 th Avenue (Santoro Drive to east tract limits) and the east side of Santoro Drive (30 th Avenue to the north tract li mit); and lighting and servicing of six (6) interior streetlights located throughout the tract and three (3) arterial streetlights located along Santoro Drive and 30th Avenue.

Zone Twenty-One (Santoro Estates, Tract 25804-1)

Zone Twenty -One consists of thirty-six (36) single -family residential parcels located in the subdivision known as Santoro Estates Neighborhood. The Zone located in the southwest corner of Santoro Drive and Tortuga Road. This includes properties east of Santoro Drive, wes t of Da Vall Drive, south of Tortuga Road, north of Borrego Road and the interior streets of Santa Rosa Street, Anza Court and Manzanita Court.

The improvements maintained in Zone Twenty-One include a landscaped parkway on the east side of Santoro Drive ( from Tortuga Road south to the Cimarron tract line just north of Borrego Road), pedestrian safety streetlights, graffiti removal and litter control along Santoro Drive; lighting and servicing of six (6) interior streetlights located throughout the tract; a nd three (3) arterial streetlights located along Santoro Drive. In addition, the assessment, includes the landscape maintenance associated with a retention basin (on two (2) of the parcels) servicing this Zone.

Zone Fifty-Four (Jack-in-the-Box, Tract 019196)

Zone Fifty-Four is one (1) commercial parcel with a Chevron gas station and a Jack-in- the-Box within the Zone. The Zone is located on Palm Drive just east of the I -10 freeway.

The improvements maintained and assessed in this Zone include a streetlight on Palm Drive and Paul Road, and the landscaped median on Palm Drive. The maintenance and servicing of landscaping w ithin the public right-of-way, includes the trimming, fertilizing, weeding and replanting of trees, shrubs, grass and other ornamental vegetation. The maintenance and servicing of irrigation and electrical facilities associated with the landscaping, including but not limited to electricity for operation of the irrigation system and water for irrigation ; and t he provision of electricity to all streetlights within the public right-of-way, including incidental costs and expenses.

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C. Improvements Authorized By The 1972 Act
As applicable or may be applicable to this proposed District, the 1972 Act defines improvements to mean one or any combination of the following:
• The installation or planting of landscaping.
• The installation or construction of statuary, fountains, and other ornamental structures and facilities.
• The installation or construction of public lighting facilities. • The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. • The maintenance or servicing, or both, of any of the foregoing. • The acquisition of any existing improvement otherwise authorized pursuant to this section.

Incidental expenses associated with the improvements including, but not limited to:
• The cost of p reparation of the report, including plans, specifications, estimates, diagram, and assessment;
• The costs of printing, advertising, and the publishing, posting and mailing of notices;
• Compensation payable to the County for collection of assessments; • Compensation of any engineer or attorney employed to render services; • Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
• Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.
• Costs associated with any elections held for the approval of a new or increased assessment.

The 1972 Act defines "maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:
• Repair, removal, or replacement of all or any part of any improvement. • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertili zing, or treating for disease or injury.
• The removal of trimmings, rubbish, debris, and other solid waste. • The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

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III. METHOD OF APPORTIONMENT

A. General
Part 2 o f Division 15 of the 1972 Act, permits the establishment of assessment districts by cities for the purpose of providing certain public improvements which include operation, maintenance, rehabilitation and servicing of street lights, parks and landscaping.

The 1972 Act requires that maintenance assessments be levied according to the special benefit received. Section 22573 provides that:

“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements”.

The 1972 Act permits the designation of zones of benefit within any indi vidual assessment district if "by reasons or variations in the nature, location and extent of the improvements, the various areas will receive different degrees of benefit from the improvement" (Sec. 22574). In addition, Article XIIID requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Article XIIID provides that only special benefits are assessable and the City must separate the general benefits from the special benefits.

General Benefit: Articles XIIIC and XIIID of the California Constitution require that the benefit to the public at large be identified for any improvements being funded through an assessment district. This general benefit may not be assessed to the parcels through an assessment district. The following Method of Assessment for the District analyzes the benefit to the public at large from the landscaping and lighting improvements provided by the City for the District.

Special Benefit: Article XIIID of the California Constitution defines special benefit as “a particular and distinct benefit over and above the general benefits conferred on real property located in the district or to the public at large.” General enhancement of property values does not constitute ‘special benefit’. The following Method of Assessment for the District analyzes the special benefit each parcel receives from the improvements funded in each Zone of the District. The cost of the landscaping maintenance is distributed to parcels in each Zone based on the special benefit each parcel receives. The District has an assessment formula based on spreading the costs associated with each Zone over the parcels within the Zone. The costs are spread to the individual parcels based on their proportional special benefit utilizing an Equivalent Dwelling Unit Method of Apportionment.

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The City determined that 50% of the collector/arterial lighting is considered general benefit with the remaining 50% of the costs (the special benefit component) to be apportioned to each parcel based on the established Equivalent Dwelling Unit calculations.

B. Methodology
Each parcel is assigned a weighting factor known as an Equivalent Dwelling Unit (EDU) to identify the parcel’s proportionate special benefit from the improvements.

Each parcel’s EDU is calculated based on the parcel’s land use, development status and/or size as compared to other parcels that are associated with the improvements. All single-family residential properties are assigned an EDU of 1.0, and all oth er property types are assigned an EDU proportionate to the special benefits they receive as compared to this single -family residential property. For each Zone, the total EDU’s are divided into the total amount to be assessed to establish the Assessment per EDU (Rate). This Rate is then multiplied by each parcel’s individual EDU to establish the parcel’s levy amount.

The following is a list of EDU’s by land use type:

Single-Family Residential (SFR): This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.0 EDU per parcel.

Condominium: Condominium units will be treated the same as Single -Family Residential units, and therefore these parcels will be assessed 1.0 EDU per dwelling unit.

Multi-family Residential (Apartments), Mobile Home Parks, and Recreational Vehicle Parks: Studies have consistently shown that the average apartment unit impacts infrastructure approximately 80% as much as a single -family residence, and the average mobile home or recreational vehicle (RV) unit impacts infrastructure approximately 50%. This equivalency fact or is in general use in the State of California. Therefore, multi -family residential parcels (parcels with more than one dwelling on the parcel) will be assessed 0.8 EDU per dwelling unit and mobile home and RV parks 0.5 EDU per dwelling unit due to the higher population density of these types of dwelling units and reduced unit size compared to the typical density and size of single-family units.

The EDU's assigned to a multi-residential or a mobile home/RV parcel is calculated based on the number of dwelling units and the appropriate EDU factor. For example, the 0.8 EDU factor for multi -residential is multiplied by the number of dwelling units or apartments on the parcel to determine the total EDU's for the parcel. Similarly, the total EDU's for a mobile home or a RV park parcel are calculated by multiplying the 0.5 EDU factor by the number of mobile home spaces or RV spaces on the parcel.

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Commercial/Industrial: In converting improved Commercial/Industrial properties to EDU's, the factor used is the City’s average single -family residential density of 6 dwelling units per acre. Therefore, the Commercial/Industrial parcels, including institutional uses and vacant Multi -family parcels, will be assessed 6.0 EDU per acre or any portion thereof.

Vacant Residential : This land use is defined as property currently zoned for single-family detached or multi -family residential development, but a tentativ e or final tract map has not been submitted and/or approved. Parcels designated as vacant residential land -use will be assessed 0.5 EDU per dwelling unit including vacant subdivided residential parcels.

Vacant-rural: Parks and vacant parcels with no immediate development potential will be designated vacant-rural. These parcels will be assigned EDU's at the rate of 12.5% of the developed Commercial/Industrial properties, or 0.75 EDU per acre, up to a maximum of 5 acres per parcel. Vacant parcels with approved subdivision maps will be assessed based on the approved future designated use.

Public Property: Public property, which is developed and used for residential or business purposes will be assessed the same as private property with the same use. Schools will be assessed as Commercial/Industrial uses for those portions of the parcels with building improvements on them, and the playground and athletic fields will not be assessed. Parks will be assessed as vacant-rural property.

Exempt: Public streets, public alleys, public easements and rights-of-ways, public greenbelts, and parkways are exempt from assessment. An exception to this is where the public agency owning the otherwise exempt property chooses to participate and to pay its assessment. Also ex empt from assessment are utility rights-of-way, common areas (such as in condominium complexes) and landlocked parcels that do not benefit from the improvements.

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A summary of Equivalent Dwelling Unit (EDU) rates is shown in the table below:

Land-Use Category

EDU Factor
Exempt 0.0 EDU
Single-Family Residential (SFR) 1.0 EDU
Condominium 1.0 EDU
Multi-Family Residential (MFR) 0.8 EDU/UNIT
Mobile Home Park 0.5 EDU/SPACE
Recreation Vehicle park 0.5 EDU/SPACE
Commercial/Industrial 6.0 EDU/ACRE
Vacant Residential, SFR or MFR 0.5 EDU/UNIT
Vacant Rural / Parks 0.75 EDU/ACRE
5 acres max.

Public Property
Residential / Business use
School building parcels
School playground / fields
Public Parks

Same as Private
Same as Comm./Ind.

Not assessed
Same as Vac./Rural

The following formulas are used to calculate each property’s assessment for each Zone:

Total Budget FY 2023/2024 / Total EDUs = Assessment per EDU (Rate) Parcel EDU x Assessment Rate per EDU = Parcel Levy Amount

C. Assessment Adjustment Formula to Offset Inflation

It is recognized that the cost of maintaining the improvements may increase slightly every year as a result of inflation.

New or increased assessments require certain noticing, meeting, and balloting requirements. However, Government Code Section 54954.6 (a) provides that a “new or increased assessment” does not include “an assessment which does not exceed an assessment formula or range of assessments...previously adopted by the agency or approved by the voters in the area where the assessment is imposed.” This definition of an increased assessment was later confirmed by Senate Bill 919 (The Implementing Legislation for Proposition 218).

The Zone assessments include a formula for increasing assessments for each fiscal year to offset increases in costs due to inflation. This assessment adjustment formula complies with the above referenced Government Code Section and was adopted by the City Council as approved by the property owners when they were balloted for their assessments. The increase to the maximum assessment amount

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will be applied to each zone within the Street Lighting and Landscape Maintenance District No.1 except Zone 54.

Starting with Fiscal Year 20 19/2020, the maximum assessment amount allowed for each fiscal year shall be increased by an amount equal to the annual percentage increase of the Local Consumer Price Index (“CPI”) for Riverside - San Bernardino - Ontario Counties Southern Region (new region created). For the prior fiscal years, the CPI index used was within the region generally known as the Los Angeles-Long Beach -Anaheim County Area. The calculation of the allowable maximum assessment rate is calculated independently from the budgeted annual assessment and may be increased each fisc al year even if the budgeted annual assessment rate is unchanged.

Each fiscal year the City shall identify the percentage difference between the CPI for the current January and the CPI for the previous January. This percentage difference shall then establish the range of increased assessments allowed based on CPI. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living.

The percentage difference for the CPI for the Riverside - San Bernardino - Ontario Counties Southern Region applicable for FY 2023/2024 is 7.33%. Therefore, the maximum assessment rates allowed for FY 2023/2024 have been adjusted over the prior year’s maximum assessment rates. For the rates per Zone, see Section IV, District Budget.

If the budget and assessments for a given Zone require an increase greater than the adjustment set forth in the formula, then the proposed increase would be subject to the procedural requirements of Section 4 of Article XIIID.

IV. DISTRICT BUDGET

A. Description of Budget Items
The following describes the services and costs that are funded through the District, shown in the budget:

Maintenance & Operations : Includes third -party maintenance labor, materials and equipment required to properly maintain the author ized improvements and services within the District. Also, graffiti removal may be included, which can vary from minor to major in the scope and removal.

Public Works Maintenance Labor : Includes Cathedral City employee maintenance labor required to properly maintain the authorized improvements and services within the District.

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Water: The cost of irrigation water for the landscape to be maintained is based upon actual Desert Water Agency and Coachella Valley Water District billings on public landscaped areas being maintained within the District.

Arterial and Interior Streetlights : Energy costs for streetlights. For streetlights on arterial highways and collectors where there is some general benefit, 50% of this cost is levied to the parcels w ithin the benefit zones and 50% is general contribution from the City . Interior residential streetlights are a full benefit of the adjacent parcels and are assessed at 100% of the cost for their energy and maintenance.

Electrical energy: Energy costs included are those necessary for the operation of irrigation controls.

Incidental costs : Costs for special items, such as costs of levying the assessments with the County Tax Collector and Assessment Engineering services. This includes costs of performing a nnual assessment engineering, determining existing or estimated costs, retaining of consultants, preparation of the Engineer’s Report, and other related costs, such as publication of notices, mailings, etc. per Section 22526 of the Streets and Highways Code.

Reserve Fund: A reserve is authorized under the provisions of Section 22569(a) of the Streets and Highways Code in an amount not to exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year in question, or whenever the City expects to receive its apportionment of special assessments from the County, whichever is later. Consistent with this authority, during the 2001 District formation proceedings, Council set a general policy of establishing the reserve amount for each Zone at 25% of the total estimated maintenance costs for that Zone, subject to the Zone’s ability to fund the reserve through the assessments. The reserve amount is also authorized to be used for any unanticipated, ordinary and usual “maintenance”, as that term is defined in Section 22531 of the Streets and Highways Code. Repairs required by unanticipated, extraordinary and catastrophic occurrences would not fall within the definition of ordinary and usual “maintenance” and thus could not be paid for with re serve monies.

To the extent reserve amounts are not expended in a particular fiscal year, then they will be carried over to the next fiscal year and included as surplus in the Engineer’s Report, as required by Section 22656 of the Streets and Highways Code. The amount of any surplus shall be credited against the amount of any authorized reserve for each fiscal year. So, for example, to the extent 25% of the estimated costs of the improvements for the upcoming fiscal year already exist in the fund for a particular zone, no collection for a reserve would be required for that zone. (Note: This section was modified by act ion of the City Council on July 31, 2002).

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STREET LIGHTING & LANDSCAPING
MAINTENANCE DISTRICT NO. 1
PROPOSED BUDGET FOR FY 2023/2024
ZONE 1
Tract 29664
Vista Del Rey
ZONE 2
Tract 29584
La Paloma
ZONE 5
Tract 29487 &
29487-1
Tapestry
ZONE 7
Tract 29771
Montage
ZONE 8
Tract 30256 &
30256-1
Baristo
Equivalent Dwelling Units 72 65 80 128 42
Total Parcels Levied 72 65 80 128 42
Maintenance & Operations 10,400.00 18,320.00 25,700.00 4,608.00 0.00 Public Works Maintenance Labor 106.00 318.00 628.00 0.00 0.00 Professional & Technical 0.00 0.00 0.00 0.00 0.00
Water 396.96 1,357.61 1,177.20 0.00 0.00
Interior Street Lights 2,163.83 1,767.40 2,197.89 0.00 695.49 Arterial Street Lights 470.77 1,326.24 757.12 2,651.17 0.00 Less: 50% General Fund Contribution (Arterial only) (235.38) (663.12) (378.56) (1,325.58) 0.00 Electricity 364.54 460.39 444.59 0.00 0.00
Less: General Fund Contribution to Park Maintenance Costs Subtotal Maintenance Costs: 13,666.72$ 22,886.53$ 30,526.24$ 5,933.58$ 695.49$ Assessment Engineering 750.15$ 1,245.44$ 1,727.26$ 845.78$ 194.31$ City Admin Fees 1,408.71 1,295.09 1,538.57 600.00 921.75 County Fees for Assessment Collection 121.07 117.78 124.83 147.39 106.97 Subtotal Incidental Costs: 2,279.93$ 2,658.31$ 3,390.66$ 1,593.17$ 1,223.03$ Total Operating Budget FY 2023/2024 15,946.65$ 25,544.84$ 33,916.90$ 7,526.76$ 1,918.52$ Reserve Fund
July 1, 2023 Estimated Beginning Balance ¹ 21,728.76$ 7,186.35$ 28,106.12$ (883.93)$ 4,419.09$ FY 2023/2024 Reserve Fund Collection/(Contribution) (538.65) 4,355.16 (316.90) 870.04 315.04 June 30, 2024 Estimated Ending Balance 21,190.11$ 11,541.51$ 27,789.22$ (13.89)$ 4,734.13$ Maximum 25% Reserve of Maintenance costs for FY 2023/2024 ² 3,416.68$ 5,721.63$ 7,631.56$ 1,483.40$ 173.87$ Balance To Levy 15,408.00$ 29,900.00$ 33,600.00$ 8,396.80$ 2,233.56$ 2022/2023 Maximum Assessment Rate ³ 268.16$ 869.73$ 778.72$ 61.12$ 49.57$ 2022/2023 Applied Assessment Rate 175.00$ 500.00$ 400.00$ 61.12$ 49.57$ 2023/2024 Maximum Assessment Rate ³ 287.81$ 933.48$ 835.80$ 65.60$ 53.19$ 2023/2024 Applied Assessment Rate 214.00$ 460.00$ 420.00$ 65.60$ 53.18$ Applied Rate Over/Under Maximum Rate (73.81)$ (473.48)$ (415.80)$ 0.00$ (0.01)$ Consumer Price Index Adjustment
CPI Adjustment 7.33% 7.33% 7.33% 7.33% 7.31%
Difference between Applied 2022/2023 and Applied 2023/2024 per parcel 39.00$ (40.00)$ 20.00$ 4.48$ 3.61$ Difference between Max 2022/2023 and Max 2023/2024 per parcel 19.65$ 63.75$ 57.08$ 4.48$ 3.62$ Total Budget FY 2023/2024 15,408.00$ 29,900.00$ 33,600.00$ 8,396.80$ 2,233.56$ ¹ Beginning Reserve Fund Balances are estimated.
² In 2001, Council set a general policy of establishing the reserve amount at 25% of total estimated maintenance costs (see Reserve Fund in Description of Budget Items). ³ For Fiscal Year 2018/2019 and prior, Maximum Assessment Rate was increased by the Consumer Price Index (CPI), Los Angeles-Riverside-Orange County Area, for all Urban Consumers from February to February. Starting Fiscal Year 2019/2020 New CPI region Riverside/San Bernardino Counties Southern Region will be used from January to January because this region is only availble on odd months.

CPI increases will affect all zones within the District except Zone 54.

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STREET LIGHTING & LANDSCAPING
MAINTENANCE DISTRICT NO. 1
PROPOSED BUDGET FOR FY 2023/2024
ZONE 9
Tract 27097-8
La Pasada
ZONE 11
Tract 28339
Downtown Core
ZONE 12
Mercy Housing
Project
ZONE 15
Tract 21491 &
24982
Landau Homes
ZONE 16
Tract 29139
Century Park
Zone
ZONE 17
Tract 2040 &
2232
Panorama
Equivalent Dwelling Units 86 137.42 60 111 599 2,524.94 Total Parcels Levied 86 11 2 111 599 2,402
Maintenance & Operations 10,780.00 0.00 2,000.00 12,663.37 51,903.94 41,431.65 Public Works Maintenance Labor 0.00 0.00 0.00 0.00 77,950.50 88,069.00 Professional & Technical 0.00 0.00 0.00 0.00 0.00 0.00
Water 0.00 0.00 1,472.68 666.03 36,504.00 30,041.75
Interior Street Lights 1,325.90 2,971.34 0.00 3,720.61 9,352.37 26,061.87 Arterial Street Lights 749.23 638.41 0.00 1,915.22 6,243.37 15,534.15 Less: 50% General Fund Contribution (Arterial only) (374.61) (319.21) 0.00 (957.61) (3,121.69) (7,767.08) Electricity 957.23 0.00 0.00 313.02 4,076.15 2,785.88
Less: General Fund Contribution to Park Maintenance Costs (131,545.10) (188,390.15) Subtotal Maintenance Costs: 13,437.74$ 3,290.55$ 3,472.68$ 18,320.64$ 51,363.55$ 7,767.08$ Assessment Engineering 1,772.69$ 612.67$ 177.90$ 1,787.92$ 8,003.53$ 14,481.16$ City Admin Fees 600.00 418.55 272.46 2,041.77 9,963.05 39,229.60 County Fees for Assessment Collection 127.65 92.40 88.17 139.40 368.76 1,216.17 Subtotal Incidental Costs: 2,500.34$ 1,123.62$ 538.53$ 3,969.08$ 18,335.34$ 54,926.93$ Total Operating Budget FY 2023/2024 15,938.08$ 4,414.17$ 4,011.22$ 22,289.72$ 69,698.89$ 62,694.00$ Reserve Fund
July 1, 2023 Estimated Beginning Balance ¹ 23,569.45$ 20,303.55$ 1,502.00$ 40,060.66$ 27,413.17$ 144,669.00$ FY 2023/2024 Reserve Fund Collection/(Contribution) 12,011.92 395.53 (1,574.02) 8,790.28 5,176.11 2,954.44 June 30, 2024 Estimated Ending Balance 35,581.37$ 20,699.08$ (72.02)$ 48,850.94$ 32,589.28$ 147,623.44$ Maximum 25% Reserve of Maintenance costs for FY 2023/2024 ² 3,359.44$ 822.64$ 868.17$ 4,580.16$ 12,840.89$ 1,941.77$ Balance To Levy 27,950.00$ 4,809.70$ 2,437.20$ 31,080.00$ 74,875.00$ 65,648.44$ 2022/2023 Maximum Assessment Rate ³ 415.60$ 136.38$ 37.86$ 323.14$ 255.77$ 77.68$ 2022/2023 Applied Assessment Rate 400.00$ 40.00$ 37.86$ 323.14$ 140.00$ 35.00$ 2023/2024 Maximum Assessment Rate ³ 446.06$ 146.38$ 40.63$ 346.83$ 274.51$ 83.37$ 2023/2024 Applied Assessment Rate 325.00$ 35.00$ 40.62$ 280.00$ 125.00$ 26.00$ Applied Rate Over/Under Maximum Rate (121.06)$ (111.38)$ (0.01)$ (66.83)$ (149.51)$ (57.37)$ Consumer Price Index Adjustment
CPI Adjustment 7.33% 7.33% 7.33% 7.33% 7.33% 7.32%
Difference between Applied 2022/2023 and Applied 2023/2024 per parcel (75.00)$ (5.00)$ 2.76$ (43.14)$ (15.00)$ (9.00)$ Difference between Max 2022/2023 and Max 2023/2024 per parcel 30.46$ 10.00$ 2.77$ 23.69$ 18.74$ 5.69$ Total Budget FY 2023/2024 27,950.00$ 4,809.70$ 2,437.20$ 31,080.00$ 74,875.00$ 65,648.44$ ¹ Beginning Reserve Fund Balances are estimated.
² In 2001, Council set a general policy of establishing the reserve amount at 25% of total estimated maintenance costs (see Reserve Fund in Description of Budget Items). ³ For Fiscal Year 2018/2019 and prior, Maximum Assessment Rate was increased by the Consumer Price Index (CPI), Los Angeles-Riverside-Orange County Area, for all Urban Consumers from February to February. Starting Fiscal Year 2019/2020 New CPI region Riverside/San Bernardino Counties Southern Region will be used from January to January because this region is only availble on odd months.

CPI increases will affect all zones within the District except Zone 54.

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STREET LIGHTING & LANDSCAPING
MAINTENANCE DISTRICT NO. 1
PROPOSED BUDGET FOR FY 2023/2024
ZONE 18
Tract 27962,
27962-1 & 30744
Landau Manor
ZONE 19
Tract 24035-1
Alicante
ZONE 20
Tract 25804-1
Cimarron
ZONE 21
Tract 25804-1
Santoro Estates
Zone 54
Jack in the Box
Total
Equivalent Dwelling Units 80.5 63 32 36 1 4,117.86
Total Parcels Levied 81 63 32 36 1 3,811
Maintenance & Operations 9,400.00 15,750.00 6,900.00 8,825.00 0.00 218,681.96$ Public Works Maintenance Labor 106.00 1,356.00 212.00 0.00 0.00 168,745.50$ Professional & Technical 0.00 0.00 0.00 0.00 0.00 0.00$ Water 688.80 554.69 560.67 820.68 0.00 74,241.08$
Interior Street Lights 1,304.67 827.40 1,240.25 635.58 0.00 54,264.60$ Arterial Street Lights 1,924.02 1,861.71 620.08 256.98 590.43 35,538.90$ Less: 50% General Fund Contribution (Arterial only) (962.01) (930.86) (310.04) (128.49) (295.21) (17,769.45)$ Electricity 341.44 330.32 182.36 300.12 705.00 11,261.04$ Less: General Fund Contribution to Park Maintenance Costs (319,935.25) Subtotal Maintenance Costs: 12,802.92$ 19,749.27$ 9,405.32$ 10,709.87$ 1,000.21$ 225,028.38$ Assessment Engineering 902.96$ 1,357.15$ 465.21$ 760.13$ 180.83$ 35,265.09$ City Admin Fees 1,554.80 1,262.62 759.43 824.36 256.23 62,947.00 County Fees for Assessment Collection 125.30 116.84 102.27 104.15 87.70 3,186.85 Subtotal Incidental Costs: 2,583.07$ 2,736.62$ 1,326.90$ 1,688.64$ 524.76$ 101,398.94$ Total Operating Budget FY 2023/2024 15,385.98$ 22,485.88$ 10,732.22$ 12,398.51$ 1,524.98$ 326,427.32$ Reserve Fund
July 1, 2023 Estimated Beginning Balance ¹ 6,449.60$ 18,101.70$ (2,874.06)$ 21,357.44$ 15,171.12$ 376,280.02$ FY 2023/2024 Reserve Fund Collection/(Contribution) 3,486.44 2,990.06 1,992.26 6,321.49 (1,024.98) 46,204.22 June 30, 2024 Estimated Ending Balance 9,936.04$ 21,091.76$ (881.80)$ 27,678.93$ 14,146.14$ 422,484.24$ Maximum 25% Reserve of Maintenance costs for FY 2023/2024 ² 3,200.73$ 4,937.32$ 2,351.33$ 2,677.47$ 250.05$ 56,257.09$ Balance To Levy 18,872.42$ 25,475.94$ 12,724.48$ 18,720.00$ 500.00$ 372,631.54$ 2022/2023 Maximum Assessment Rate ³ 218.45$ 376.77$ 370.49$ 849.28$ 5,000.00$ 2022/2023 Applied Assessment Rate 218.45$ 376.77$ 370.49$ 600.00$ 500.00$ 2023/2024 Maximum Assessment Rate ³ 234.45$ 404.38$ 397.64$ 911.53$ 5,000.00$ 2023/2024 Applied Assessment Rate 234.44$ 404.38$ 397.64$ 520.00$ 500.00$ Applied Rate Over/Under Maximum Rate (0.01)$ 0.00$ 0.00$ (391.53)$ (4,500.00)$ Consumer Price Index Adjustment
CPI Adjustment 7.33% 7.33% 7.33% 7.33% 0.00%
Difference between Applied 2022/2023 and Applied 2023/2024 per parcel 15.99$ 27.61$ 27.15$ (80.00)$ 0.00$ Difference between Max 2022/2023 and Max 2023/2024 per parcel 16.00$ 27.61$ 27.15$ 62.25$ 0.00$ Total Budget FY 2023/2024 18,872.42$ 25,475.94$ 12,724.48$ 18,720.00$ 500.00$ 372,631.54$ ¹ Beginning Reserve Fund Balances are estimated.
² In 2001, Council set a general policy of establishing the reserve amount at 25% of total estimated maintenance costs (see Reserve Fund in Description of Budget Items). ³ For Fiscal Year 2018/2019 and prior, Maximum Assessment Rate was increased by the Consumer Price Index (CPI), Los Angeles-Riverside-Orange County Area, for all Urban Consumers from February to February. Starting Fiscal Year 2019/2020 New CPI region Riverside/San Bernardino Counties Southern Region will be used from January to January because this region is only availble on odd months.

CPI increases will affect all zones within the District except Zone 54.

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APPENDIX A

District Assessment Diagrams

The Assessment Boundary Map (attached) shows the exterior boundaries of the Assessment District and/or the benefit Zones therein. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Riverside, for the year when this Report was prepared, and are incorporated by reference herein and made part of this Report.

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/78
/90/111/110/101/32 /49/58/32/32/34/86/105/116s/97/32/68/101/108/32/82/101/121/34/32/32/84/114/97/99/116/32/50/57/54/54/52 /76/76/68/32/90/79/78/69/83
/67/73/84/89/32/79/70/32/67/65/84/72/69/68/82/65/76/32/67/73/84/89 /90/111/110/101/32/32/50/58/32/32/34/76/97/32/80/97/108/111/109/97/34/32/32/84/114/97/99/116/32/50/57/53/56/52 /90/111/110/101/32/32/53/58/32/32/34/84/97/112/101s/116/114/121/34/32/32/84/114/97/99/116/32/50/57/52/56/55 and 29487-1 /90/111/110/101/32/32/55/58/32/32/34M/111/110/116/97/103/101/34/32/32/84/114/97/99/116/32/50/57/55/55/49 /90/111/110/101/32/32/56/58/32/32"Baristo" /84/114/97/99/116/32/51/48/50/53/54/32/38/32/51/48/50/53/54/45/49 /90/111/110/101/32/32/57/58/32/32/34/76/97/32/80/97s/97d/97/34/32/32/84/114/97/99/116/32/50/55/48/57/55/45/56 /90/111/110/101/32/49/49/58/32/32/34/68/111/119/110/116/111/119/110/34/32/67/105/118/105/99/32/67/101/110/116/101/114/32/67/111/114/101 Tract 28339 /90/111/110/101/32/49/50/58/32/32/34M/101/114/99/121/32/72/111/117s/105/110/103/34/32Project /90/111/110/101/32/49/53/58/32/32/34/76/97/110d/97/117/32/72/111mes/34/32/32/84/114/97/99/116/32/50/49/52/57/49 and 24982 /90/111/110/101/32/49/54/58/32/32/34/67/101/110/116/117/114/121/32/80/97/114/107/34/32 Tract 20765-1-8 and 29139 /90/111/110/101/32/49/55/58/32/32/34/80/97/110/111/114/97/109/97/32/80/97/114/107/34/32 Tract 2040 and 2234 /90/111/110/101/32/49/56/58/32/32/34/76/97/110d/97/117 M/97/110/111/114/34/32/32/84/114/97/99/116/32/50/55/57/54/50 and /51/48/55/52/52/44/32/51/50/51/48/57 /90/111/110/101/32/49/57/58/32/32/34/65/108/105/99/97/110/116/101/34/32/32/84/114/97/99/116/32/50/52/48/51/53-1 /90/111/110/101/32/50/48/58/32/32/34/67/105/109/97/114/114/111/110/32/72/111/109/101/34/32/32/84/114/97/99/116/32/50/53/56/48/52/45/49 /90/111/110/101/32/50/49/58/32/32/34/83/97/110/116/111/114/111/32/69s/116/97/116/101/34/32/32/84/114/97/99/116/32/50/53/56/48/52-1 Zone 54: "Jack-in-the-Box" Tract 019196

5.A.c
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Attachment: FY 2324 Cathedral City-Final Engineers Report (3777 : ANNUAL RENEWAL OF THE LIGHTING & LANDSCAPING DISTRICT (LLD) /67/105/116/121/32/111/102/32/67/97/116/104/101/100/114/97/108/32/67/105/116/121 /54/56/45/55/48/48/32/65/118/101/110/105/100/97/32/76/97/108/111/32/71/117/101/114/114/101/114/111 /67/97/116/104/101/100/114/97/108/32/67/105/116/121/44/32/67/97/32/57/50/50/51/52 /80/104/46/32/40/55/54/48/41/55/55/48/45/48/51/52/48
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Attachment: FY 2324 Cathedral City-Final Engineers Report (3777 : ANNUAL RENEWAL OF THE LIGHTING & LANDSCAPING DISTRICT (LLD) /67/105/116/121/32/111/102/32/67/97/116/104/101/100/114/97/108/32/67/105/116/121 /54/56/45/55/48/48/32/65/118/101/110/105/100/97/32/76/97/108/111/32/71/117/101/114/114/101/114/111 /67/97/116/104/101/100/114/97/108/32/67/105/116/121/44/32/67/97/32/57/50/50/51/52 /80/104/46/32/40/55/54/48/41/55/55/48/45/48/51/52/48
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5.A.c
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Attachment: FY 2324 Cathedral City-Final Engineers Report (3777 : ANNUAL RENEWAL OF THE LIGHTING & LANDSCAPING DISTRICT (LLD) /67/105/116/121/32/111/102/32/67/97/116/104/101/100/114/97/108/32/67/105/116/121 /54/56/45/55/48/48/32/65/118/101/110/105/100/97/32/76/97/108/111/32/71/117/101/114/114/101/114/111 /67/97/116/104/101/100/114/97/108/32/67/105/116/121/44/32/67/97/32/57/50/50/51/52 /80/104/46/32/40/55/54/48/41/55/55/48/45/48/51/52/48
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5.A.c
Packet Pg. 114
Attachment: FY 2324 Cathedral City-Final Engineers Report (3777 : ANNUAL RENEWAL OF THE LIGHTING & LANDSCAPING DISTRICT (LLD) /67/105/116/121/32/111/102/32/67/97/116/104/101/100/114/97/108/32/67/105/116/121 /54/56/45/55/48/48/32/65/118/101/110/105/100/97/32/76/97/108/111/32/71/117/101/114/114/101/114/111 /67/97/116/104/101/100/114/97/108/32/67/105/116/121/44/32/67/97/32/57/50/50/51/52 /80/104/46/32/40/55/54/48/41/55/55/48/45/48/51/52/48
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5.A.c
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Attachment: FY 2324 Cathedral City-Final Engineers Report (3777 : ANNUAL RENEWAL OF THE LIGHTING & LANDSCAPING DISTRICT (LLD) /67/105/116/121/32/111/102/32/67/97/116/104/101/100/114/97/108/32/67/105/116/121 /54/56/45/55/48/48/32/65/118/101/110/105/100/97/32/76/97/108/111/32/71/117/101/114/114/101/114/111 /67/97/116/104/101/100/114/97/108/32/67/105/116/121/44/32/67/97/32/57/50/50/51/52 /80/104/46/32/40/55/54/48/41/55/55/48/45/48/51/52/48
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5.A.c
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Attachment: FY 2324 Cathedral City-Final Engineers Report (3777 : ANNUAL RENEWAL OF THE LIGHTING & LANDSCAPING DISTRICT (LLD) /67/105/116/121/32/111/102/32/67/97/116/104/101/100/114/97/108/32/67/105/116/121 /54/56/45/55/48/48/32/65/118/101/110/105/100/97/32/76/97/108/111/32/71/117/101/114/114/101/114/111 /67/97/116/104/101/100/114/97/108/32/67/105/116/121/44/32/67/97/32/57/50/50/51/52 /80/104/46/32/40/55/54/48/41/55/55/48/45/48/51/52/48
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5.A.c
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Attachment: FY 2324 Cathedral City-Final Engineers Report (3777 : ANNUAL RENEWAL OF THE LIGHTING & LANDSCAPING DISTRICT (LLD) /67/105/116/121/32/111/102/32/67/97/116/104/101/100/114/97/108/32/67/105/116/121 /54/56/45/55/48/48/32/65/118/101/110/105/100/97/32/76/97/108/111/32/71/117/101/114/114/101/114/111 /67/97/116/104/101/100/114/97/108/32/67/105/116/121/44/32/67/97/32/57/50/50/51/52 /80/104/46/32/40/55/54/48/41/55/55/48/45/48/51/52/48
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5.A.c
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Attachment: FY 2324 Cathedral City-Final Engineers Report (3777 : ANNUAL RENEWAL OF THE LIGHTING & LANDSCAPING DISTRICT (LLD) /67/105/116/121/32/111/102/32/67/97/116/104/101/100/114/97/108/32/67/105/116/121 /54/56/45/55/48/48/32/65/118/101/110/105/100/97/32/76/97/108/111/32/71/117/101/114/114/101/114/111 /67/97/116/104/101/100/114/97/108/32/67/105/116/121/44/32/67/97/32/57/50/50/51/52 /80/104/46/32/40/55/54/48/41/55/55/48/45/48/51/52/48
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5.A.c
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Attachment: FY 2324 Cathedral City-Final Engineers Report (3777 : ANNUAL RENEWAL OF THE LIGHTING & LANDSCAPING DISTRICT (LLD) /67/105/116/121/32/111/102/32/67/97/116/104/101/100/114/97/108/32/67/105/116/121 /54/56/45/55/48/48/32/65/118/101/110/105/100/97/32/76/97/108/111/32/71/117/101/114/114/101/114/111 /67/97/116/104/101/100/114/97/108/32/67/105/116/121/44/32/67/97/32/57/50/50/51/52 /80/104/46/32/40/55/54/48/41/55/55/48/45/48/51/52/48
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2023/2024 Street Lighting and Landscaping Maintenance District No.1 Page 19

APPENDIX B

2023/2024 Collection Roll

Parcel identification, for each parcel within the District, shall be the parcel as shown on the Riverside County Assessor's map for the year in which this Report is prepared. The land use classification for each parcel is based on the Riverside County Assessor’s Roll.

A listing of parcels assessed within this District, along with the proposed assessment amounts, shall be submitted to the City Clerk, under a separate cover, and by reference is made part of this Report.

Non-assessable parcels may include areas of public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and rights-of-ways including public greenbelts and parkways; utility rights -of-ways; common areas; landlocked parcels, small parcels vacated by the County, bifurcated parcels, and any other property that cannot be developed. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempte d from assessment. Properties outside the District boundary receive no direct or special benefits from the improvements provided by the District and are not assessed.

Approval of this Report (as submitted or as modified) confirms the method of apportionment and the maximum assessment rate to be levied against each eligible parcel and thereby constitutes the approved levy and collection of assessments for the fiscal year. The parcels and the amount of assessment to be levied shall be submitted to the County Auditor/Controller and included on the property tax roll for the fiscal year.

If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate approved in this Report.

Therefore, if a single parcel has changed to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a prop ortionate share of the original assessment.

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Cathedral City Page 1 of 5 Printed on 6/14/2023

Staff Report

City Council

Item No. 6.A

Meeting Date: June 14, 2023
From: John Corella, Director of Engineering/Public Works Title: Resolution Adopting the City's FY 2023 -2024 RMRA (SB -1) Projects

City Council

RECOMMENDATION:

To approve a Resolu tion adopting the City’s FY 2023 -2024 Capital Improvement Program (CIP) Projects funded by Senate Bill 1 (SB -1), the Road Repair and Accountability Act of 2017

BACKGROUND:

Prior to SB -1, cities and counties across the state delayed and even cancelled ro ad improvement projects due to lack of funding; neglecting basic maintenance and repairs to their local streets. The 2016 California Statewide Local Streets and Roads Needs Assessment found the condition of these local streets, on average, were “at risk” o r degraded to failing infrastructure.

On April 28, 2017, Governor Brown signed SB -1, known as the Road Repair and Accountability Act of 2017, to address basic road maintenance, rehabilitation, and critical needs for both state highways and local streets and roads known as the Local Streets and Roads Program (LSRP). SB -1 generates funds through increased per gallon fuel excise taxes, diesel fuel sales taxes, vehicle registration fees and provides for inflationary adjustments on future tax rates.

Various portions of the funds generated are deposited into the Road Maintenance and Rehabilitation Account (RMRA) fund. A percentage of the RMRA funding is apportioned to Cathedral City by formula for road maintenance, rehabilitation, and critical safety projects.

The RMRA requires all RMRA -funded projects to be included in the City Capital Improvement Project (CIP) Plan. Initiating RMRA, on September 13, 2017, the City Council approved Resolution No. 2017 -43 adding the proposed RMRA projects to the five-year CIP Plan.

At the City Council Study Session Meeting held on May 24, 2023, the remaining and

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newly proposed RMRA/SB -1 Projects were introduced to the City Council, who reviewed and discussed the Projects.

DISCUSSION:

In FY 2022 -2023, the City used RMRA/SB -1 funding to initiate and/or complete the following projects from Resolution No. 2022-16:

Landau Boulevard and McCallum Way Intersection Traffic Signal Construction The scope of this Project is to reconstruct and improve the intersection at Landau Blvd. and McCallum Way adjacent to Mt. San Jacinto High School located at the northeast corner of this intersection. The Project design was completed in May 2023, and the award of construction contract is scheduled for the June 28, 2023, City Council Meeting.

This Project was listed as Project 1 in Resolution No. 2022-16.

Century Park Neighborhood Street Pavement Rehabilitation This Project included a combination of street reconstruction on specified streets and the application of Rubberized Emulsion Aggregate Slurry (REAS) on other streets within the internal street system of the Century Park area. This Project was successfully completed with the Notice of Completion dated October 27, 2022. This Project was listed as Project 2 in Resolution No. 2022-16.

La Pasada Neighborhood Street Pavement Rehabilitation
This Project included the application of REAS on all streets within the La Pasada Neighborhood area. This Project was successfully completed on May 24, 2023, with the acceptance of the Notice of Completion sc heduled to be presented at tonight’s City Council Meeting. This Project was listed as Project 3 in Resolution No. 2022-16.

FY 2023-2024
City Staff is proposing the following projects to be funded with RMRA funds and to be completed in FY 2023-2024:

Landau Blvd. and McCallum Way Intersection Traffic Signal Construction (Project 1) In FY 2023 -2024, the City proposes to complete the construction of Landau Boulevard and McCallum Way Intersection Traffic Signal Project. The scope of this Project is to reconstruct and improve the intersection at Landau Blvd. and McCallum Way adjacent to Mt. San Jacinto High School located at the northeast corner of this intersection.

The FY 2023 -2024 CIP Budget shows an estimated cost for the construction of this Project in the amount of $715,000. The Bid Opening for this Project was held on June 1, 2023, with an apparent lowest bid i n the amount of $1,038,888.50. This represents a

45.3% increase above the current CIP Budget.

The budget required for the construction of this Project will include the bid amount and a 15% contingency for a total amount of $1,194,721.78 as shown below.

DBX (Contractor with lowest bid) $ 1,038,888.50
15% Contingency $ 155,833.28
Construction Total $ 1,194,721.78

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In order to fun d Project 1, Staff is proposing to use savings from the FY2022 -2023 RMRA/SB1 Fund ed La Pasada Neighborhood REAS Project , which was recently completed, in the amount of $230,000 . These funds would be allocated towards the Landau Boulevard and McCallum Way I ntersection Traffic Signal Construction Project 1 to reduce the difference between the FY 2023-2024 CIP Budget and the lowest bid.

City Staff proposes to complete this Project within FY 2023 -2024 with RMRA/SB-1 funds in the amount of $1,200,000 and the RMRA/SB-1 Resolution will change/reflect this amount. Even with this additional cost, this will not delay the commencement of other projects funded with these funds as the City receives future RMRA/SB1 installments. This Project is included as Project 1 in the attached RMRA FY 2023 -2024 Resolution.

Please note: The award of a construction agreement for the Landau Blvd. and McCallum Way Intersection Traffic Signal Construction is scheduled for the June 28, 2023, City Council Meeting. City Staff will present to the City Council the contract award and the budget amendment required to fund this Project.

Landau Public Alleyway Reconstruction (Project 2)
In FY 2023-2024, the City is proposing the Landau Public Alley Reconstruction Project.

This public alley is bounded by Vista Chino to the north, 30th Avenue to the south, Landau Boulevard to the west, and Avenida La Paz to the east, and provides parking access to multifamily and single-family residences in the Panorama Neighborhood.

The project consists of the removal and reconstruction of pavement within the alley right-of-way between Vista Chino and 30 Th Avenue. The cost for the design and construction of the Landau Public Alleyway Reconstruction Project is estimated in the amount of $900,000. The Project is p roposed to be funded with SB -1 funds and is identified as Project 2 in the attached RMRA FY 2023-2024 Resolution.

Future FY Projects
City Staff identified the following eligible Projects to be funded by SB -1 and are proposing to include them in the FY 202 3-2024 Resolution as future Projects to be funded by SB-1:

Whitewater Area Street Rehabilitation Between 33 rd Avenue and Ortega Road (Project 3)
In FY 2024 -2025, the City proposes to reconstruct various residential streets in the Whitewater Area, bounded by 33rd Avenue to the north, Dinah Shore Drive to the south, Shifting Sands Trail to the west, and Cathedral Canyon Drive to the east.

The Project will consist of the removal and reconstruction of pavement within the roadway surface on Shifting Sands Tra il, Whispering Palms Trail, Sky Blue Water Trail, Navajo Trail, and Pueblo Trail between 33 rd Avenue and Ortega Drive, and 33 rd Avenue from Shifting Sands Trail to Cathedral Canyon Drive.

The estimated cost for this Project is $750,000. This Project will be funded with Community Development Block Grant (CDBG) funds in the amount of $480,000 and

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RMRA (SB-1) funds in the amount of $270,000. This Project is identified as Project 3 in the attached RMRA FY 2023-2024 Resolution.

N/O Baristo Road, S/O Vega Road, E/O Landau Boulevard W/O Avenida Los Niños Street Improvements (Project 4)
In FY 2025 -2026, the City proposes to reconstruct various residential streets located within the area bounded by Vega Road to the north, Baristo Road to the south, Landau Boulevard to the west, and Avenida Los Niños to the east.

The Project proposes the removal and reconstruction of pavement on Avenida El Mundo and Avenida El Pueblo between McCallum Way and Baristo Road.

The estimated cost of this Project is $365,000. This Projec t will be funded with RMRA (SB-1) funds and is included as Project 4 in the attached RMRA FY 2023 -2024 Resolution.

Victoria Drive Neighborhood REAS (Project 5)
In FY 2025-2026, the City proposes the REAS application on streets within the internal street s ystem of the Victoria Drive Neighborhood. This neighborhood is bounded by Dinah Shore Drive to the north, 35 th Avenue to the south, Date Palm Drive to the west, and Plumley Road to the east.

The Project will consist of the application of REAS on resident ial streets within the Victoria Drive Neighborhood boundaries.

The estimated cost of this Project is $485,000. This Project will be funded with RMRA (SB-1) funds and is identified as Project 5 in the RMRA FY 2023 -2024 Resolution attached to this report.

N/O Ramon Road, S/O McCallum Way, E/O Date Palm Drive, W/O Santoro Drive Street Improvements (Project 6)
In FY 2026 -2027, the City proposes to reconstruct various residential streets located within the area bounded by McCallum Way to the north, Ramon Road to the south, Date Palm Drive to the west, and Santoro Drive to the east.

The Project proposes the removal and reconstruction of pavement within the roadway surface on El Toro Road, Victor Road, and Nuema Drive from Ramon Road to Baristo Road; and Baristo Road from the east end to San Eljay Avenue.

The estimated cost of this Project is $915,000. This Project will be funded with RMRA (SB-1) funds and is included as Project 6 in the attached RMRA FY 2023 -2024 Resolution.

Panorama Park Area Street Improvem ents Between Avenida Maravilla and Avenida La Vista (Project 7)
In FY 2027 -2028, the City proposes to reconstruct various residential streets located within the Panorama Park Area, generally bounded by Vista Chino to the north, 30 th Avenue to the south, Landau Boulevard to the west, and Date Palm Drive to the east.

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The Project will consist of the removal and reconstruction of pavement on Los Gatos Road from Val Yermo Trail to Avenida La Vista, and Jarana Road from Avenida Maravilla to Avenida La Vista.

The estimated cost of this Project is $550,000. This Project will be funded with RMRA (SB-1) funds and is identified as Project 7 in the attached RMRA FY 2023 -2024 Resolution.

Summary
All the Proposed Projects are included in the City’s FY 2023 -2024 and FY 2024-2025 CIP Plan adopted at the Regular City Council Meeting on May 24, 2023. In addition, the City Council must approve a Resolution every year that lists the Proposed Projects the City will be completing within that fiscal year. Once the Resolution is approved, the City will submit an approved copy of this Resolution to the CTC as required by the LSRP.

City Staff recommends the City Council a pprove a resolution adopting the City’s FY 2023-24 Capital Improvement Program Projects funded by Senate Bill 1 : The Road Repair and Accountability Act of 2017.

FISCAL IMPACT:

The recommended action will have no immediate fiscal impact for confirming the proposed projects described in the attached Resolution, as each project will be brought separately to the City Council for SB-1 CIP funding approval.

Note: The City is required to maintain its existing commitment of local funds for Capital Improvements to remain eligible for RMRA funding apportionment. To be eligible in the SB-1 program, the City need s to spend no less than the annual average of its General Fund expenditures, as determined during the 2009 -2010, 2010 -2011, and 2011 -2012 fiscal years for streets, road and highway purposes from the City’s General Fund (or Maintenance of Effort (MOE) amount) of appr oximately $900,000 annually. If the City meets its MOE commitment, the City will receive approximately $900,000 annually in RMRA/SB-1 funding. The required MOE funding is included in the City’s proposed FY 2023–2024 and FY 2024–2025 Biennial CIP Budget.

FIVE-YEAR STRATEGIC PLAN:

GOAL B: COMMUNITY INVESTMENT
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.

ATTACHMENTS:

RMRA 23-28 projects
CC Reso 2023-XX

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Landau Boulevard and McCallum Way Intersection Traffic Signal Construction FY 2023-2024

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Attachment: RMRA 23-28 projects (3775 : Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) Landau Public Alleyway Reconstruction
FY 2023-2024
Landau Blvd
Vista Chino
30TH Avenue
PUBLIC ALLEY

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Attachment: RMRA 23-28 projects (3775 : Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) Whitewater Area Street Rehabilitation Between 33rd Avenue and Ortega Road FY 2024-2025
Navajo Trail
Pueblo Trail
33RD Avenue
Ortega Road

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Attachment: RMRA 23-28 projects (3775 : Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) N/O Baristo Road, S/O Vega Road, E/O Landau Boulevard W/O Avenida Los Niños Street Improvements FY 2025-2026
McCallum Way
Baristo Road
Avenida El Mundo
Avenida El Pueblo

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Attachment: RMRA 23-28 projects (3775 : Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) Victoria Drive Neighborhood REAS
FY 2025-2026
Dinah Shore
35TH Avenue

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Attachment: RMRA 23-28 projects (3775 : Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) N/O Ramon Road, S/O McCallum Way, E/O Date Palm Drive, W/O Santoro Drive Street Improvements FY 2026-2027
McCalLum Way
Ramon Road
Baristo Road
El Toro Road

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Attachment: RMRA 23-28 projects (3775 : Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) Panorama Park Area Street Improvements Between Avenida Maravilla and Avenida La Vista FY 2027-2028
Vista Chino
Tachevah Drive
Jarana Road
Avenida Maravilla

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Attachment: RMRA 23-28 projects (3775 : Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) RESOLUTION NO. 2023- _____

RESOLUTION ADOPTING A LIST OF PROJECTS FOR
FISCAL YEAR 2022-23 FUNDED BY SB 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017

WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi -modal transportation funding shortfalls statewide; and

WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of Cathedral City (“CITY”) are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and

WHEREAS, the CITY must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s compl etion, and the estimated useful life of the improvement; and

WHEREAS, the CITY, will receive an estimated $900,000 in RMRA funding in Fiscal Year 2023-24 from SB 1; and

WHEREAS, this is the seventh year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and

WHEREAS, the CITY has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and

WHEREAS, the CITY used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high- priority and cost - effective projects that also meet the community’s priorities for transportation investment; and

WHEREAS, the funding f rom SB 1 will help the CITY maintain and rehabilitate streets throughout the CITY this year and in the future; and

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Attachment: CC Reso 2023-XX (3775 : Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) Projects)

WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the CITY’s streets and roads are in a “ poor” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good” condition; and

WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure , and using cutting- edge technology, materials and practices , will have significant positive co-benefits statewide.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Cathedral City, State of California, as follows:

1. The foregoing recitals are true and correct.

2. The following prev iously proposed and adopted project may utilize fiscal year 2022-23 Road Maintenance and Rehabilitation Account revenues in its delivery. With the relisting of this project in the adopted fiscal year resolution, the City is reaffirming to the public and the State our intent to fund this project with Road Maintenance and Rehabilitation Account revenues:

Proposed Project 1: Landau Boulevard and McCallum Way Intersection Traffic Signal Construction
Description: The proposed Project will convert an existing four -way intersection into a signalized intersection and concrete deceleration pads north and south bound on Landau Boulevard. This intersection is located at the southwest corner of Mt. San Jacinto High School, which gets significant pedestrian traffic fr om students. This intersection was also the location of a 2015 pedestrian fatality.

Location: Intersection of Landau Boulevard and McCallum Way Estimated Useful Life: Twenty (20) years
Project Start: Spring 2022
Project Completion: Winter 2023
Estimated Cost: $1,200,000.00

3. The following proposed project will be funded in- part or solely with fiscal year 2023-24 Road Maintenance and Rehabilitation Account revenues:

Proposed Project 2: Landau Public Alleyway Reconstruction

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Attachment: CC Reso 2023-XX (3775 : Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) Projects) Description: The Landau Public Alleyway Reconstruction includes the removal and reconstruction of pavement within the public alley right of way. The Landau Public Alleyway provides parking access to multifamily and single- family residences in the Panorama Neighborhood.

Location: The Landau Public Alleyway is bounded by Vista Chino to the north, 30th Avenue to the south, Landau Boulevard to the west, and Avenida La Paz to the east.

Estimated Useful Life: Twenty (20) years
Project Completion: Summer 2024
Estimated Cost: $900,000.00

4. The following proposed project will be funded in- part or solely with f uture fiscal year Road Maintenance and Rehabilitation Account revenues:

Proposed Project 3: Whitewater Area Street Rehabilitation Between 33rd Avenue and Ortega Road

Description: The Whitewater Area Street Rehabilitation includes the removal and reconstruction of pavement within the roadway surface in the Whitewater Area.

Location: The streets included for the Whitewater Area Street Rehabilitation are Shifting Sands Trail, Whisper ing Palms Trail, Sky Blue Water Trail, Navajo Trail, and Pueblo Trail between 33rd Avenue and Ortega Drive, and 33rd Avenue from Shifting Sands Trail to Cathedral Canyon Drive.

Estimated Useful Life: Twenty (20) years
Project Completion: Summer 2025
Estimated Cost: $270,000.00

Proposed Project 4: N/O Baristo Road, S/O Vega Road, E/O Landau Boulevard W/O Avenida Los Niños Street Improvements.

Description: The Proposed Project includes the removal and reconstruction of pavement on various residential streets located within the area bounded by Vega Road to the north, Baristo Road to the south, Landau Boulevard to the west, and Avenida Los Niños to the east.

Location: The proposed streets are Avenida El Mundo and Avenida El Pueblo between McCallum Way and Baristo Road.

Estimated Useful Life: Twenty (20) years
Project Completion: Summer 2026
Estimated Cost: $365,000.00

Proposed Project 5: Victoria Drive Neighborhood REAS

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Attachment: CC Reso 2023-XX (3775 : Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) Projects) Description: The Victoria Drive Neighborhood Rubberized Emulsion Aggregate Slurry (REAS) consists of the application of REAS on residential streets within the Victoria Drive Neighborhood boundaries.

Location: The Victoria Drive Neighborhood is bounded by Dinah Shore Drive to the north, 35th Avenue to the south, Date Palm Drive to the west, and Plumley Road to the east.

Estimated Useful Life: Twenty (20) years
Project Completion: Summer 2026
Estimated Cost: $485,000.00

Proposed Project 6: N/O Ramon Road, S/O McCallum Way, E/O Date Palm Drive, W/O Santoro Drive Street Improvements

Description: The Proposed Project includes the removal and reconstruction on various residential streets located within the area bounded by Mc Callum Way to the north, Ramon Road to the south, Date Palm Drive to the west, and Santoro Drive to the east.

Location: The proposed streets are El Toro Road, Victor Road, and Nuema Drive from Ramon Road to Baristo Road; and Baristo Road from the east end to San Eljay Avenue.

Estimated Useful Life: Twenty (20) years
Project Completion: Summer 2027
Estimated Cost: $915,000.00

Proposed Project 7 : Panorama Park Area Street Improvements Between Avenida Maravilla and Avenida La Vista

Description: The Panorama Park Area Street Improvements includes the removal and reconstruction of pavement in the Panorama Park Neighborhood Area.

Location: The streets included for the Panorama Park Area Street Improvements are Los Gatos Road from Val Yermo Trail to Av enida La Vista, and Jarana Road from Avenida Maravilla to Avenida La Vista.

Estimated Useful Life: Twenty (20) years
Project Completion: Summer 2028
Estimated Cost: $550,000.00

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Attachment: CC Reso 2023-XX (3775 : Resolution Adopting the City's FY 2023-2024 RMRA (SB-1) Projects) PASSED AND ADOPTED by the City Council of the City of Cathedral City, State of California this _______ day of June 2023, by the following vote:

A
yes:

N
oes:

A
bsent:

A
bstain:
______________________________________
Rita Lamb, Mayor
A
TTEST:
______
_____________________________
Tracey R. Hermosillo, City Clerk
A
PPROVED AS TO FORM:
______
_____________________________
Eric S. Vail, City Attorney

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Staff Report

City Council

Item No. 6.B

Meeting Date: June 14, 2023
From: Charles McClendon, City Manager
Title: First Reading of an Ordinance Amendment - Renewal of Inactive Cannabis Dispensary Licenses

City Council

RECOMMENDATION:

To introduce, waive reading beyond the title and provide first reading to an ordinance amending Sections 5.88.040 and 5.88.055 of the Cathedral City Municipal Code related to Cannabis Business License expiration and renewals.

BACKGROUND:

During City Council discussions on cannabis taxes in January and February of this year, City Council expressed some interest in measures that would have the effect of reducing the number of retail licenses over time by limiting the renewal of inactive licenses. This was reported to the Cannabis Task Force during their meeting on April 3, 2023. It was further reported the municipal code currently includes a provision that licenses that have been inactive for a period of at least one year may not be renewed (discretionary) and the Cit y Attorney’s concern that non -discretionary language would be advisable if the desire is to stop renewing inactive licenses. After discussion, it was the consensus of the task force that licenses inactive for over a year should not be renewed and non -discretionary language should be adopted. They also indicated that prior to implementing the non -renewal practice existing inactive license holders should be surveyed regarding their intent and there should be a well-advertised start date in the future so existing inactive license holders aren’t caught off-guard by the change.

Council discussed this update from the Cannabis Task Force during the study session on May 10, 2023. Direction was provided to staff to prepare an ordinance amendment removing the disc retion in renewing inactive dispensary licenses and to provide language indicating licenses will not be renewed if the business is not current on their taxes due to the City.

DISCUSSION:

An ordinance has been prepared to implement the changes as directed by Council.

Specifically, the following provisions have been added to Section 5.88.055 related to

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license renewal:

4. For dispensaries, proof that commercial cannabis activity is occurring on the premises in accordance with the following:
a. For a first renewal application, proof that commercial cannabis activity permitted by the license has been occurring on the premises for the previous month. A tax return submitted pursuant to Section 3.48.080 of this code showing that taxable commercial cannabis activity occurred on the premises shall be sufficient proof. b. For a second and subsequent renewal application, proof that commercial cannabis activity permitted by the license has been occurring on the premises for the previous twelve (12) consecutive months . Tax returns submitted pursuant to Section

3.48.080 of this code showing that taxable commercial cannabis activity occurred on the premises shall be sufficient proof.
c. The local licensing authority may renew a license not meeting the requirements of sub paragraphs a or b above if the renewal application demonstrates unique or extraordinary circumstances that has impacted the ability of the cannabis business to conduct commercial cannabis activity on the premises, including but not limited to fire, flood o r other act of god resulting in substantial damage to the premises, or a delay in the issuance of necessary licenses, permits or other approvals necessary to conduct the commercial cannabis activity at no fault of the applicant.

6. Proof that the cannabi s business is not delinquent on the submission of any tax returns or the payment of any taxes due under Chapter 3.48 of this code.

Correspondingly, Council expressed concern that businesses should not be allowed to remain delinquent on their taxes until li cense renewal, which could result in delinquencies of up to an entire year. By administrative policy , staff will begin license revocation procedures on delinquencies of three months or greater in accordance with an existing ordinance provision. 5.88.115 Enforcement.

The provisions of this chapter may be enforced by the local licensing authority by any means provided for in Title 13 of this code in addition to any and all other remedies, civil, equitable or criminal, afforded to the city under the l aw.

The operation of a cannabis business in violation of this chapter or any conditions of approval placed on a licensee’s local license is hereby deemed to be a public nuisance. As provided for in Title 13 of this code, the local licensing authority may issue administrative, infraction or misdemeanor citations, institute a summary abatement of a public nuisance that poses an immediate threat to the public health and safety, and/or institute proceedings to suspend, modify or revoke a local license.

Additionally, Section 5.88.040 has been amended to read as follows:

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“H. A local license issued pursuant to this chapter shall specify the date of issuance, the period of licensure, the name of the licensee, the address of the licensed premises, and the nature of the cannabis business licensed. All local licenses are valid for one year, except that an initial local license shall automatically expire if the commercial cannabis activities authorized by the license have not commenced at the premises within eleven ( 11) months of the date of issuance. If the licensee has not submitted a tax return pursuant to Section 3.48.080 of this code showing that commercial cannabis activity is occurring on the premises before the start of the twelfth (12 th) month of the license term, the City will notify the licensee in writing that their license has been rendered null and void due to the failure to commence commercial cannabis activity. The licensee is not precluded from applying for a new cannabis license.”
As suggested by the Cannabis Task Force and as directed by the City Council, the effective date of the ordinance amendment is January 1, 2024 so that current inactive license holders have an opportunity to qualify for renewal by starting operations.

FISCAL IMPACT:

No direct fiscal impact. The hope is that reducing, over time, the number of retail licenses will result in remaining businesses becoming more profitable.

FIVE-YEAR STRATEGIC PLAN:

The intent of the ordinance amendment is to promote cannabis business profitability and ensure timely payment of taxes due:

GOAL C: FISCAL STABILITY AND SUSTAINABILITY
Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.

ATTACHMENTS:

Cathedral City - Cannabis Inactive Operation Ordinance Amendment

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ORDINANCE NO. _______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CATHEDRAL CITY AMENDING SECTIONS 5.88.040 AND 5.88.055

OF THE CATHEDRAL CITY MUNICIPAL CODE RELATED TO

CANNABIS BUSINESS LICENSE EXPIRATION AND RENEWALS
WHEREAS, the City of Cathedral City has allowed a wide range of cannabis businesses to operate within the City, subject to licensing and other regulatory requirements, since Proposition 64 legalized medicinal and adult-use cannabis; and WHEREAS, the City desires to update its local regulations to address business license operations to curtail the practice of holding and renewing a license for a cannabis business that is not in operation.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1 AMENDMENT OF SECTION 5.88.055 (RENEWAL OF A LOCAL

LICENSE)
Section 5.88.055 (Renewal of a local license) is amended in its entirety to read as follows, with additions underlined and deletions struck-through. “A. A cannabis business that desires to renew its license shall apply for the renewal no less than thirty days prior to the local license’s expiration date. If the cannabis business files a renewal application within thirty days prior to expiration, the cannabis business must provide a written explanation detailing the circumstances surrounding the late filing. The local licensing authority may accept or reject such late filing in its discretion. The local licensing authority may elect to administratively continue a local license past its expiration date, provided that the licensee has submitted a renewal application that is pending final action.

B. An application for renewal shall be submitted on forms provided by the local licensing authority, accompanied by the processing fee established by resolution of the city council. The following information shall be submitted as a part of the renewal application:

1. A current An up to date list of the employees, independent contractors, and volunteers working at the licensed premises.

2. Proof that no changes to the ownership of the licensee have has occurred since last approved by the local licensing authority.

3. Proof that the licensee is still entitled to the possession and use of the licensed premises.

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3.48.080 of this code showing that taxable commercial cannabis activity occurred on the premises shall be sufficient proof.
c. The local licensing authority may renew a license not meeting the requirements of subparagraphs a or b above if the renewal application demonstrates unique or extraordinary circumstances that has impacted the ability of the cannabis business to conduct commercial cannabis activity on the premises, including but not limited to fire, flood or other act of god resulting in substantial damage to the premises, or a delay in the issuance of necessary licenses, permits or other approvals necessary to conduct the commercial cannabis activity at no fault of the applicant.

5. For licensees that have ten or more full-time equivalent non-supervisorial employees, proof that the licensee has entered into and abided by the terms of a labor peace agreement.

6. Proof that the cannabis business is not delinquent on the submission of any tax returns or the payment of any taxes due under Chapter 3.48 of this code.

7. Any other information that the local licensing authority deems necessary to determine whether to renew the local license.

C. All owners of the cannabis business must be fingerprinted each year at renewal if required in the discretion of the local licensing authority.

D. The local licensing authority shall renew a local license if the licensee has submitted a complete application and paid the application processing fee, unless the local licensing authority finds that good cause exists to deny the license renewal.

Notwithstanding the foregoing, the local licensing authority in its discretion may elect not to renew any local license if it determines that the licensed premises has not been used for a cannabis business, without reasonable cause as determined by the local licensing authority, for a period of at least one year.

E. Unless administratively continued pursuant to subsection A, a local license is immediately invalid upon expiration and the cannabis business shall cease operations.

If a local license expires, the local licensing authority may approve a renewal of the

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expired license at any time up to three months from the expiration date of the license.

After the license has been expired for three months, the license may not be renewed by the local licensing authority, and the holder of the expired license must apply for and obtain a new cannabis license to resume operations.”
SECTION 2 AMENDMENT OF SECTION 5.88.040 (LOCAL LICENSE

APPLICATION PROCESS)
Paragraph H of Section 5.88.040 (Local License Application Process) is amended to read as follows, with additions underlined and deletions struck- through.
“H. A local license issued pursuant to this chapter shall specify the date of issuance, the period of licensure, the name of the licensee, the address of the licensed premises, and the nature of the cannabis business licensed. All local licenses are valid for one year, except that an initial local license shall automatically expire if the commercial cannabis activities authorized by the license have not commenced at the premises within eleven (11) months of the date of issuance. If the licensee has not submitted a tax return pursuant to Section 3.48.080 of this code showing that commercial cannabis activity is occurring on the premises before the start of the twelfth (12th) month of the license term, the City will notify the licensee in writing that their license has been rendered null and void due to the failure to commence commercial cannabis activity. The licensee is not precluded from applying for a new cannabis license except as provided in Section

5.88.040(A).”
SECTION 3 SEVERABILITY
The City Council declares that, should any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance as hereby adopted shall remain in full force and effect.

SECTION 4 EFFECTIVE DATE
This Ordinance shall take effect on January 1, 2024.

SECTION 5 POSTING
The City Clerk shall, within fifteen (15) days after passage of this Ordinance, cause it to be posted in at least three (3) designated public places; shall certify to the adoption and posting of this Ordinance; and shall cause this Ordinance and its certification, together with proof of posting, to be entered in the Book of Ordinances of this City.

SECTION 5 CERTIFICATION

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The foregoing Ordinance was approved and adopted at a meeting of the City Council held on the ____ day of _____________, 2023, by the following vote:

Ayes:

Noes:

Abstain:

Absent:
___________________________
Rita Lamb, Mayor
ATTEST:

____________________________
Tracey Hermosillo, City Clerk

APPROVED AS TO FORM:

____________________________
Eric S. Vail, City Attorney

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Staff Report

City Council

Item No. 6.C

Meeting Date: June 14, 2023
From: Stone James, Economic Development Director
Title: GCVCC Chamber of Commerce Activity Update: June 2023

City Council

RECOMMENDATION:

On January 11, 2023, the Council approved a January through June 2023 service provider agreement with the Greater Coachella Valley Chamber of Commerce. The Council also granted City Manager McClendon the authority to execute the 2023-2024 service contract provided the Chamber provided the agreed upon services during the January through June 2023 contract period were delivered. City Staff believes the January through June services have been provided and is recommending execution of the 2023-2024 contract.

Greater Coachella Chamber of Commerce CEO Brandon Marley and Cathedral City liaison/Director of Business Development Jo Beth Prudhomme will discuss January through June 2023 activities and upcoming goals.

BACKGROUND:

On January 11, 2023, after a six-month hiatus, the City Council approved (i) a six-month and (ii) a 12 -month service provider agreement with the Greater Coachella Valley Chamber of Commerce (GCVCC or Chamber ). Th e six-month agreement allow ed GCVCC to provide the City chamber services from January 12, 2023, to June 31, 2023.

The 12-month agreement continues GCVCC services beginning July 1, 2023, through June 30, 2024. Provided the Chamber satisfied the objectives outlined in Exhibit “A”, City Manager McClendon was granted authority to execute the 12 -month service provider agreement. City Staff believes the Chamber has met the stated objectives and is recommending the execution of the 2023-2024 GCVCC contract.

GCVCC services and associated costs were broken down as follows:

1) Economic Development & Business Support Services $30,000 2) City Marketing $12,000
3) Shop Local First Website and General Program $10,000 4) Special Events (State of City, Other Events, & Volunteering) $21,436

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Total Annual Contract $73,436

January to June 2023 [50% of Sections 1, 2, and 3 plus State of the City ($19,500)]
$45,500

2023/2024 Fiscal Year Contract (Full year of Chamber services plus cost of 2024 State of City)
$73,436

Tonight’s agenda item is a review of GCVCC success in meeting the January through June 2023 contract goals.

DISCUSSION:

The GCV CC provides vital support to the City’s Economic Development Department.

GCVCC has been engaged to , “improve the financial health and resilience of Cathedral City businesses by (i) improving access to resources and best practices, (ii) improving the connec tions between and among Cathedral City businesses and the broader Coachella Valley business community, and (iii) improving Cathedral City businesses’ visibility and ability to attract new and repeat customers”.

The service provider agreement focuses Chamber efforts on four areas:

1) Business Support and Engagement Services

Objective: The Chamber will host and produce resources to support entrepreneurial interests; professional, business, and workforce development; and industry. These services may include c ollaborating with other agencies to serve the best interests of Cathedral City businesses.

2) City Marketing

The Greater Coachella Valley Chamber of Commerce will proactively market city assets, events, and businesses. The goal of these marketing efforts is to (i) increase economic activity within the City, (ii) improve the positive public perception of Cathedral City, (iii) raise property values, (iv) add to the City’s tax base.

3) Shop Local First

The Chamber will diligently administer the “Shop Local First” program (SLF) within the City. The Chamber will update and maintain the City’s Shop Local First webpage: www.cccshoplocal.com

4. Event Services

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The Chamber and City will collaborate on the production of busines s and community-oriented events within the City. The City commits to sponsoring a variety of GCVCC special events through the year. Given the timing of the January thr ough June 2023, contract, the provision for event services only covered the State of the City address.

GCVCC CEO Brandon Marley and Director of Business Development / Cathedral City liaison Jo Beth Prudhomme will provide a brief overview of important organizational changes, recent chamber activities, and organizational goals.

Since July 2022, the Chamber performed or provided the following:

1) CITY MARKETING:
a) Cathedral City’s events are consistently represented on our weekly eblast to 6,500 email subscribers across the Greater Coachella Valley. b) Cathedral City’s Chamber events are marketed throug h www.GCVCC.org with sign -up links, social media and email marketing push and a wrap -up article about the event is posted in e -newsletter (6,500 subscribers) and lives on www.gcvcc.org
c) Cathedral City is represented at all GCVCC events across the Greater Coachella Valley, i.e., All Valley Mayors held in October 2022. d) Starting 2023 Cathedral City info was refreshed on www.gcvcc.org and various individual sites.

2) ECONOMIC DEVELOPMENT:
a) City Walks - Our team conducted City walks once a month, targeted the streets of Perez, the car dealerships, The Plaza area, the shopping centers, and the Cannabis businesses resulting in appointments and establishing relationships with:
i. Landau Labs -team met
ii. Amazon – joined the chamber 7/19/2022
iii. Desert Hydro Inc. - joined the chamber 7/25/2022
iv. ADP Business Consultant – joined the chamber 8/19/2022 v. Jessup brought Chairman of the Board, Rich Ramhoff in they suggested we w ork with www.mydesertautos.com association of all the Cathedral City Auto dealers,
vi. Amazon bought State of the City Sponsorship both 2022 & 2023 vii. Revivals/DAP joined
viii. CV Rep rejoined 9/23/2022 after three years of no membership ix. Luchador helped with some parking lot issues and attended Grand Opening
x. Daniels Table he has some issues with the marketing of Cathedral City Restaurants, he suggested a “Taste of Cathedral City” bought Williams homes by to see if he w anted to participate in their Grand Opening “Taste of Cathedral City” rejoined 6/25/2023
xi. Developed a relationship with the Guatemala Chamber joined 7/1/2022 xii. UPS stores joined

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xiii. Drop by Office joined & hosted a mixer and 2 Chamber 101’s bring our members to Cathedral City and their location & Tim Hadorn joined the board as well
xiv. LIT properties “Paloma Resort ” joined and Adam Ramirez joined the board as well hosted the Ambassador appreciation 10/27/2022 xv. PROVR joined and hosted a mixer 7/29/2022
xvi. William’s Homes joined and is hosting a Ribbon Cutting Ceremony and mixer with Taste of Cathedral City Restaurants 2023 May 18, 2023 xvii. Sage invest & Fountainhead developers joined the chamber 8/26/2022 xviii. Cultivar Strategies, Brian Applegarth Cannabis Travel Consultant xix. Your Design Workshop helped them get their business license ribbon cutting TBD joined 2/24/2023
xx. GHA Companies hosted a Ribbon Cutting of their homes joined 11/18/2022
xxi. Shafik Wahhab Photographer joined 11/16/2022
xxii. ADP Consultants joined 8/19/2022
xxiii. AMP hosted a mixer
xxiv. Cannabis Sommelier Services joined 12/19/2022
xxv. Brunch 101 stopped by the meet and eat
xxvi. Desert Thai donated to the mixer
xxvii. Trulissa donated to the mixer and participating in Williams Homes Mixer in April 2023
xxviii. Capizzi’s Cheesecake Pizza donated to the mix er & Edible Arrangements donated
xxix. Hosting ribbon cutting for Peter Bedard’s book in September at the Boys and Girls Club
xxx. Meyave joined 2/8/2023
xxxi. Talked to Sun Community Bank about relocating to Cathedral City from Palm Springs - feels it is safer
xxxii. Visited the Boys and Girls Club for the Thanksgiving fest and toured it 28 xxxiii. Working on restaurants to host Williams Home’s Taste of Cathedral City inside their Models , i.e., Nicolino’s, Daniel’s table, Luchador, Mr. Zebra , Trilussa, Sol y Sombra, Brunch 101.
xxxiv. Canyon Print & Signs joined 3/7/2023
xxxv. Journal Publications for the Cathedral City Home Journal joined 3/9/2023
xxxvi. Quick Quack Car Wash joined 3/29/2023
xxxvii. Strategic Consulting joined 5/19/2023
xxxviii. Brunch 101 joined 5/25/2023

3) SPECIAL EVENTS:
a) Mixers:
i. Mary Pickford is D’Place Mixer held Wednesday July 20, 2022. Here is the recap: https://gcvcc.org/mixer-recap-mary-pickford-is-dplace/ ii. Drop By Office & AMP Lounge Plaza Mixer/Ribbon Cutting Thursday, Dec. 15, 2022 In the beautiful holiday setting of the Plaza’s fountain area between Drop by Office and Amp Lounge , we hosted 55 business community leaders, Mayor Rita Lamb, Councilmember Nancy Ross, Economic Development Director, Stone James, our Chairman of the

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GCVCC board Rich Ramhoff of Desert Care Network, several GCVCC board members; Julie Frazier of Frazier Pest Control, Bob McCauley of Entravision, as well as, our fabulous Cathedral City board: Sandy Jimenez, Shelley Kaplan, Joe Frazier, Scott Robinson, Step hen Burchard, Adam Ramirez, Peter Bedard of course one of our hosts Antonio Lopez Cochran (treats and a bar at Amp Lounge). Our host Tim Hadorn offered tours, desserts, and raffle items. Surrounding business neighbors provided treats; Edible Arrangements c hocolate covered strawberries, Cheesecake bites from the Capizzi’s, Appetizer’s from Desert Thai and a $50 gift card from Trilussa. Special Guest Rafael Oscal & Carolna Arevalo of the Guatemala Chamber were there as well.
iii. Williams Homes Ribbon Cutting and Mixer event Thursday, May 18 th in the heat of the Spring there was a color guard presentation from Cathedral City High School, a guest singer for the National Anthem, Certificate presentation from Mayor Lamb, other recognitions and a ribbon cutting kicked off the mini “taste of Cathedral City” featuring Cathedral City restaurants Mister Zebra, Tortillas, Daniel’s Table, Sol Y Sombra in each of the three model homes, DJ Mod Girls, Buzzbox, wine tastings, and a Mimosa Bar by Brunch 101. (150 in attendance ov er the course of the evening).
b) Other events:
i. Chamber 101 held at Drop by Office December 2nd (10 attendees) ii. Chamber 101 held at Drop by Office Jan 6th (12 attendees) iii. Ambassadors Appreciation gathering at Paloma Resort’s Sol y Sombra restaurant Dec 1st (20 attendees)
iv. Ribbon Cutting GHA Dec 1 at Rio Del Sol (20 attendees) v. Nov 4th – 6th PS Pride participation
vi. Nov 18th & 19th participated in the Balloon Festival vii. December 15th provided a Special introduction to Rafael Oscal & Carolna Arevalo of the Guatemala Ch amber to the City Council and board members to discuss Hispanic community events . He has in LA and wants to introduce to Cathedral City. Follow up meeting on Jan. 7 th 3:00. Going to City Council 3/22 to vote on Maya International Festival to be held September 29 – Oct 1, 2023
viii. March 4 th: Cathedral City’s LGBT Days Bed Race Entry resulting in exposure to hundreds of attendees and a Desert Sun article ix. May 4, 2023 Quick Quack Car Wash Ribbon Cutting
x. May 16, 2023 Cathedral City State of the City Sold Out Event!

c) Upcoming Events:
i. Ribbon Cutting for Your Workshop TBD
ii. TBD: Peter Bedard’s Book launch Ribbon Cutting Sept 14, at the Boys and Girls Club
iii. Mayan Festival Oct 21 – 22 - partnership with Guatemala Chamber iv. TBD: Working to engage.

4) SHOP LOCAL:
a) Ongoing updates on www.ccshoplocal.com

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b) City Permits were sent 1/24/2023 and are being updated on the site and in membership.
c) Developing relationship with publisher of Cathedral City Home to feature the Chamber and new members, Member’s Spotlight.

5) MEMBERSHIP:
a. New Members since June 2022:
i. Regional 131
ii. Cathedral City 21 (16% of the total new bus membership) b. Total GCVCC members: 840
c. Total Cathedral City membership 123 (15% of GCVCC membership)

FISCAL IMPACT:

The $73,436 for the 2023-2024 fiscal year GCVCC contract has been allocated within the approved 2023-2024 Economic Development Budget.

FIVE-YEAR STRATEGIC PLAN:

Utilization of GCVCC services assists the Economic Development Department in achieving:

GOAL C: FISCAL STABILITY AND SUSTAINABILITY

Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies a nd transparent financial practices.

GOAL F: EMBRACING, INCLUSIVE CITY Objective: Cathedral City is valued and respected as a community that welcomes and embraces diversity, has an abundance of high quality and affordable housing options, and vibrant businesses. Our neighborhoods are attractive and well -maintained and issues surrounding homelessness have been compassionately addressed with thoughtful, coordinated, and collaborative programs.

Action F-6 Promote additional community events and celebrations Action F -12 Continue to facilitate the attraction and promotion of community events which celebrate our diversity, builds a cohesive community, and supports local business

ATTACHMENTS:
2_Exhibit A Scope of Services FY January 2023 thru June 2023 2_Exhibit A Scope of Services FY 2023-2024
2023-03-01 Quarterly Report to Catedral City July 1 2022 -March 1 2023 FINAL 2023-06-02 Cathedral City Year Report - 060123

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Exhibit “A”
Greater Coachella Valley Chamber of Commerce
Business Engagement and Economic
Development Support Initiatives
January 2023 thru June 2023

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Objective: Improve the financial health and resilience of Cathedral City businesses by (i) improving access to resources and best practices, (ii) improving the connections between and among Cathedral City businesses and the broader Coachella Valley business community, and (iii) improving Cathedral City businesses’ visibility and ability to attract new and repeat customers.

Cathedral City businesses will benefit from the Greater Coachella Valley Chamber of Commerce’s (GCVCC or Chamber) collaboration with the City of Cathedral City’s Economic Development Department (EDD or City). The Chamber will gather information and share data with the City to aid in preserving, fostering, and growing the City’s business community. In short, the Chamber will support EDD’s business retention and expansion efforts.

1) Business Support and Engagement Services
Administration cost: $30,000

Objective: The Chamber will host and produce resources to support entrepreneurial interests; professional, business, and workforce development; and industry. These services may include collaborating with other agencies to serve the best interests of Cathedral City businesses.

a) Treat all Cathedral City businesses equally regardless of GCVCC membership status. b) The Chamber contact new Cathedral City businesses following the City’s Finance Department providing to the Chamber a monthly list of new business licenses.

Businesses will be offered at least two complimentary admissions to GCVCC networking or education events.
c) The Chamber will respond to all business requests and/or referrals within 48 business hours.
d) As needed, the Chamber may serve as a liaison between the City and other business support service providers (e.g., the Small Business Development Corporation, SCORE, the Coachella Valley Economic Partnership etc.) e) The GCVCC will host a regular GCV Educates series (in-person or virtual) GCV Educates provides valuable information to businesses on how to improve their business and/or professional development. Beyond GCV Educates, the Chamber will support and provide resources to Cathedral City businesses as requested.
f) In concert with the EDD, the Chamber will conduct periodic surveys and outreach to the local business community. Survey results will be shared with EDD. g) Notify the City’s EDD promptly of inquiries of economic interest to the City and

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Attachment: 2_Exhibit A Scope of Services FY January 2023 thru June 2023 (3666 : GCVCC Chamber of Commerce Activity Update: March Exhibit “A”
Greater Coachella Valley Chamber of Commerce
Business Engagement and Economic
Development Support Initiatives
January 2023 thru June 2023

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inquiries necessitating a response by the City.
h) Refer inquiries to businesses outside the City only if no equivalent service exists within the City.

2) City Marketing
Administration cost: $12,000

The Chamber will seek to connect Cathedral City-based businesses with businesses and/or customers outside of City limits.

For all City or Chamber-related events within Cathedral City, the chamber will use its social media, e-newsletters, and webpages to cross-promote events. The City’s PIO may submit news on a weekly basis for inclusion in the Chamber e-newsletter.

3) Shop Local First
Administration cost: $10,000

The Chamber will diligently administer the “Shop Local First” program (SLF) within the City. The Chamber will update and maintain the City’s Shop Local First webpage:
www.cccshoplocal.com. Administration of the SLF program will include:

a) Promotion of the SLF website,
b) Promote SLF program via other social media platforms, c) Distribution of printed materials (as provided by the City), d) Promote giveaways or local discounts as provided by local businesses. e) Create additional content to be used on social media postings

4. Event Services
Total cost for event services: $21,436

The Chamber and City will collaborate on the production of business and community- oriented events within the City. The City commits to sponsoring a variety of GCVCC special events through the year.

The Chamber will assume liability for all GCVCC-controlled events and services listed

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Attachment: 2_Exhibit A Scope of Services FY January 2023 thru June 2023 (3666 : GCVCC Chamber of Commerce Activity Update: March Exhibit “A”
Greater Coachella Valley Chamber of Commerce
Business Engagement and Economic
Development Support Initiatives
January 2023 thru June 2023

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herein and name the City as an additional insured. In instances where events have multiple controlling agencies, liability for events should be shared appropriately. The Chamber will not carry financial liability for events or services they do not control nor have primary coordinating responsibility. If a service or event is not fulfilled, the City may re-appropriate the funds towards another service.

a) Annual State of the City
Event sponsorship: $19,500

The Greater Coachella Valley Chamber of Commerce has historically produced an Annual State of the City event with sponsorship from the City. As the format, costs, festivity, and production of special events continues to evolve, the Chamber aims to offer the City a basic event package with upgrade opportunities to enhance the event’s design.

The City’s custom sponsorship of the Annual State of the City event includes registration for three tables of eight guests at the event. Additional seats or tables will be made available to the City at the cost charged to the Chamber by the host facility.

The City is responsible for meeting the following milestones. Failure to meet these milestone deadlines may affect sales, marketing, and overall event outcomes. The City shall generate calendar dates for milestone meetings with the Chamber 6- months, 3-months, 2-months, and 1-month from the event to help ensure milestones are met.

Milestones Objectives

4-6 months prior to event
Identifying the Event Design Scheme or Theme (e.g.
- colors, themes)

4-6 months prior to event
Determining the format of the event (e.g. -
moderated panel, keynote speaker, etc. )
4-6 months prior to event Determining a loose framework for the events actual timeline
3 months prior to event Selecting a venue from what the Chamber has proposed
13-14 weeks prior to
event
Proof Period for Marketing Materials and Graphic
Design Elements

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Attachment: 2_Exhibit A Scope of Services FY January 2023 thru June 2023 (3666 : GCVCC Chamber of Commerce Activity Update: March Exhibit “A”
Greater Coachella Valley Chamber of Commerce
Business Engagement and Economic
Development Support Initiatives
January 2023 thru June 2023

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The City’s State of the City event package includes:

i. Event planning, coordination, & day of event production ii. Vendor coordination & management
iii. Graphic design & invitation design (does not include printed invitations) iv. Standard marketing efforts through the Chamber network v. Invitation & registration management
vi. Breakfast or luncheon event
vii. Business awards
viii. Basic stage design (podium, microphone, flag display, & foliage)

The base package does not include printed invitations nor programs. Standard Chamber marketing efforts include e-blasts, calendar invitations, web listings, and social media sharing. The City is responsible for co-marketing the event through its database of businesses licensed in the City and its greater business network. The City’s promotion of the event shall include reference of GCVCC as the primary event host. The base package accounts for a morning or midday event featuring a breakfast or lunch component. It does not include dinner events or upgraded menus above market price banquet menus.

Stage design is limited to a podium, microphone, flag display, and foliage. The City may further customize the base package at additional expense to the City. Upgrades, additions, or enhancements beyond the base package are not included in the costs of the base package. Upgrades, additions, and/or enhancements will result in additional charges as accrued. Such upgrades, additions and/or enhancements may include (but are not limited to): AV enhancements, outdoor event packages, upgraded dining menus, or advertising enhancements.

b) GCVCC Special Event Sponsorships
The City commits to sponsoring at least three (3) GCVCC special events (outlined below). In return, the Chamber will offer a 30% discount off listed sponsorship rates for all event sponsorships. The City will inform the Chamber which other city’s State of the City address the City would like to sponsor as well as any additional events, beyond the below listed three events, the City would like to sponsor. The 30% discount will apply assuming the City remains committed to sponsoring three total events. The Chamber will provide the City with necessary PR and marketing materials for all sponsored events.

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Attachment: 2_Exhibit A Scope of Services FY January 2023 thru June 2023 (3666 : GCVCC Chamber of Commerce Activity Update: March Exhibit “A”
Greater Coachella Valley Chamber of Commerce
Business Engagement and Economic
Development Support Initiatives
January 2023 thru June 2023

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i. The Annual All Valley Mayor’s Event
Event sponsorship: $623
The City agrees to purchase a table at the Annual All Valley Mayor’s Event.

ii. Other City State of the City Events
Event sponsorship: $690
The City commits to a minimum of two registrations to the following Special Events: City of Coachella State of the City, City of Desert Hot Springs State of the City, City of Indio State of the City, City of La Quinta State of the City. The Chamber, in turn, offers a special rate for the City’s pre-registration. Additional seats may be purchased at list rates.

iii. The Annual Business Awards & Installation Event
Event sponsorship: $623
The City agrees to purchase a table at the Annual Business Awards and Installation Event.

5. Volunteerism:

Administration cost: No charge

The Greater Coachella Valley Chamber of Commerce will commit to hosting a promotional chamber booth at the following Special Events in Cathedral City: The Cathedral City Hot Air Balloon Festival, LGBTQ Days, and the Taste of Jalisco in 2024.

Additionally, the Chamber will staff its booth with volunteers for the duration of the event.

6. Cost Summary by Section:

January to June 2023 [50% of Sections 1, 2, and 3 plus State of the City ($19,500)]
$45,500

2023/2024 Fiscal Year Contract (Full year of Chamber services plus cost of 2024 State of City)
$73,436

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Attachment: 2_Exhibit A Scope of Services FY January 2023 thru June 2023 (3666 : GCVCC Chamber of Commerce Activity Update: March Exhibit “A”
Greater Coachella Valley Chamber of Commerce
Business Engagement and Economic
Development Support Initiatives
Fiscal Year 2023/2024

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1) Business Support and Engagement Services
Administration cost: $30,000

Objective: The Chamber will host and produce resources to support entrepreneurial interests; professional, business, and workforce development; and industry. These services may include collaborating with other agencies to serve the best interests of Cathedral City businesses.

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Attachment: 2_Exhibit A Scope of Services FY 2023-2024 (3666 : GCVCC Chamber of Commerce Activity Update: March 2023) Exhibit “A”
Greater Coachella Valley Chamber of Commerce
Business Engagement and Economic
Development Support Initiatives
Fiscal Year 2023/2024

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inquiries necessitating a response by the City.
h) Refer inquiries to businesses outside the City only if no equivalent service exists within the City.

2) City Marketing
Administration cost: $12,000

The Chamber will seek to connect Cathedral City-based businesses with businesses and/or customers outside of City limits.

3) Shop Local First
Administration cost: $10,000

4. Event Services
Total cost for event services: $21,436

The Chamber and City will collaborate on the production of business and community- oriented events within the City. The City commits to sponsoring a variety of GCVCC special events through the year.

The Chamber will assume liability for all GCVCC-controlled events and services listed

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Packet Pg. 165
Attachment: 2_Exhibit A Scope of Services FY 2023-2024 (3666 : GCVCC Chamber of Commerce Activity Update: March 2023) Exhibit “A”
Greater Coachella Valley Chamber of Commerce
Business Engagement and Economic
Development Support Initiatives
Fiscal Year 2023/2024

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a) Annual State of the City
Event sponsorship: $19,500

Milestones Objectives

4-6 months prior to event
Identifying the Event Design Scheme or Theme (e.g.
- colors, themes)

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Packet Pg. 166
Attachment: 2_Exhibit A Scope of Services FY 2023-2024 (3666 : GCVCC Chamber of Commerce Activity Update: March 2023) Exhibit “A”
Greater Coachella Valley Chamber of Commerce
Business Engagement and Economic
Development Support Initiatives
Fiscal Year 2023/2024

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The City’s State of the City event package includes:

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Attachment: 2_Exhibit A Scope of Services FY 2023-2024 (3666 : GCVCC Chamber of Commerce Activity Update: March 2023) Exhibit “A”
Greater Coachella Valley Chamber of Commerce
Business Engagement and Economic
Development Support Initiatives
Fiscal Year 2023/2024

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i. The Annual All Valley Mayor’s Event
Event sponsorship: $623
The City agrees to purchase a table at the Annual All Valley Mayor’s Event.

iii. The Annual Business Awards & Installation Event
Event sponsorship: $623
The City agrees to purchase a table at the Annual Business Awards and Installation Event.

5. Volunteerism:

Administration cost: No charge

Additionally, the Chamber will staff its booth with volunteers for the duration of the event.

6. Cost Summary by Section:

2023/2024 Fiscal Year Contract (Full year of Chamber services plus cost of 2024 State of City)
$73,436

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Attachment: 2_Exhibit A Scope of Services FY 2023-2024 (3666 : GCVCC Chamber of Commerce Activity Update: March 2023) GCVCC Activity Report for Cathedral City
7/1/2022 – 3/1/2023
1) CITY MARKETING:
a) Cathedral City’s events are consistently represented on our weekly eblast to 6,500 email subscribers across the Greater Coachella Valley.
b) Cathedral City’s Chamber events are marketed through www.GCVCC.org with sign-up links, social media and email marketing push and a wrap -up article about the event is posted in e- newsletter (6,500 subscribers) and lives on www.gcvcc.org c) Cathedral City is represented at all GCVCC events across the Greater Coachella Valley i.e. All Valley Mayors held in October 2022.
d) Starting 2023 Cathedral City info was refreshed on www.gcvcc.org and various individual sites.
2) ECONOMIC DEVELOPMENT:
a) City Walks- Our team conducted City walks once a month, targeted the streets of Perez, the car dealerships, The Plaza area, the shopping centers, and the Cannabis businesses resulting in appointments and establishing relationships with:
i. Landau Labs -team met,
ii. Jessup brought Chairman of the Board in they suggested we work with www.mydesertautos.com association of all the Cathedral City Auto dealers, iii. Amazon bought State of the City Sponsorship both 2022 & 2023 iv. Revivals/DAP joined
v. CV Rep rejoined
vi. Luchador helped with some parking lot issues and attended Grand Opening vii. Daniels Table he has some issues with the marketing of Cathedral City Restaurants, he suggested a “Taste of Cathedral City” bought Williams homes by to see if he wanted to participate in their Grand Opening “Taste of Cathedral City” viii. Developed a relationship with the Guatemala Chamber ix. UPS stores joined
x. Drop by Office joined & hosted a mixer and 2 Chamber 101’s bring our members to Cathedral City and their location & Tim Hadorn joined the board as well xi. LIT properties “Paloma Resort” joined and Adam Ramirez joined the board as well hosted the Ambassador appreciation
xii. PROVR joined and hosted a mixer
xiii. William’s Homes joined and is hosting at mixer in April 2023 14) Sage invest & Fountainhead developers joined
xiv. Cultivar Strategies, Brian Applegarth Cannabis Travel Consultant xv. Your Workshop helped them get their business license ribbon cutting in April 2023 xvi. GHA Companies hosted a Ribbon Cutting of their homes xvii. Shafik Wahhab Photographer joined
xviii. ADP Consultants
xix. AMP hosted a mixer
xx. Brunch 101 stopped by the meet and eat
xxi. Desert Thai donated to the mixer

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Attachment: 2023-03-01 Quarterly Report to Catedral City July 1 2022 -March 1 2023 FINAL (3666 : GCVCC Chamber of Commerce Activity xxii. Trulissa donated to the mixer and participating in Williams Homes Mixer in April 2023 xxiii. Capizzi’s Cheesecake Pizza donated to the mixer & Edible Arrangements donated xxiv. Hosting ribbon cutting for Peter Bedard’s book late April 2023 xxv. Talked to Sun Community Bank about relocating to Cathedral City from Palm Springs feels it is safer
xxvi. Visited the Boys and Girls Club for the Thanksgiving fest and toured it 28 xxvii. Working on restaurants to host Williams Home’s Taste of Cathedral City inside their Models i.e. Nicolino’s, Daniel’s table, Luchador, Mr. Zebra Trilussa, Sol y Sombra.

3) SPECIAL EVENTS:
a) Mixers:
i. Mary Pickford is dplace Mixer held Wednesday July 20, 2022. Here is the recap:
https://gcvcc.org/mixer-recap-mary-pickford-is-dplace/
ii. Drop By Office & AMP Lounge Plaza Mixer/Ribbon Cutting Thursday, Dec. 15, 2022 In the beautiful holiday setting of the Plaza’s fountain area between Drop by Office and Amp Lounge we hosted 55 business community leaders, Mayor Rita Lamb, Councilmember Nancy Ross, Economic Development Director, Stone James, our Chairman of the GCVCC board Rich Ramhoff of Desert Care Network,, several GCVCC board members; Julie Frazier of Frazier Pest Control, Bob McCauley of Entravision, as well as, our fabulous Cathedral City board: Sandy Jimenez, Shelley Kaplan, Joe Frazier, Scott Robinson, Stephen Burchard, Adam Ramirez, Peter Bedard of course one of our hosts Antonio Lopez Cochran (treats and a bar at Amp Lounge). Our host Tim Hadorn offered tours, desserts, and raffle items. Surrounding business neighbors provided treats; Edible Arrangements chocolate covered strawberries, Cheesecake bites from the Capizzi’s, Appetizer’s from Desert Thai and a $50 gift card from Trilussa. Special Guest Rafael Oscal & Carolna Arevalo of the Guatemala Chamber were there as well. b) Other events:
i. Chamber 101 held at Drop by Office December 2nd (10 attendees) ii. Chamber 101 held at Drop by Office Jan 6th (12 attendees) iii. Ambassadors Appreciation gathering at Paloma Resort’s Sol y Sombra restaurant Dec 1st (20 attendees)
iv. Ribbon Cutting GHA Dec 1 at Rio Del sol (20 attendees) v. Nov 4th – 6th PS Pride participation
vi. Nov 18th & 19th participated in the Balloon Festival vii. December 15th We provided a Special introduction to Rafael Oscal & Carolna Arevalo of the Guatemala Chamber to the City Council and board members to discuss Hispanic community events he has in LA and wants to introduce to Cathedral City. Follow up meeting on Jan. 7th 3:00. Going to City Council 3/22 to vote on Maya International Festival to be held September 29 – Oct 1, 2023
viii. March 4th : Cathedral City’s LGBT Days Bed Race Entry resulting in exposure to hundreds of attendees and a Desert Sun article

c) Upcoming Events:

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Attachment: 2023-03-01 Quarterly Report to Catedral City July 1 2022 -March 1 2023 FINAL (3666 : GCVCC Chamber of Commerce Activity i. April 11th Ribbon Cutting for Your Workshop
ii. April 20th Campanile Ribbon Cutting and “Taste of Cathedral City” theme in the model homes
iii. May 16th Save The Date for Cathedral City State of the City luncheon at the Doubletree iv. TBD: “Your Design” workshop
v. TBD: Peter Bedard’s Book launch
vi. TBD: Working to engage

4) SHOP LOCAL:
a) Ongoing updates on www.ccshoplocal.com
b) Developing relationship with publisher of Cathedral City Home

5) MEMBERSHIP:
a. New Members since June 2022:
i. Regional 131
ii. Cathedral City 19 (14% of the total new bus membership) b. Total GCVCC members: 830
c. Total Cathedral City membership 116 (14% of GCVCC membership)

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Attachment: 2023-03-01 Quarterly Report to Catedral City July 1 2022 -March 1 2023 FINAL (3666 : GCVCC Chamber of Commerce Activity GCVCC
Cathedral City
Activity Report
July 1, 2022 - June 1, 2023
Presented by Brandon Marley

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Attachment: 2023-06-02 Cathedral City Year Report - 060123 (3666 : GCVCC Chamber of Commerce Activity Update: March 2023)

GCVCC STAFF

BRANDON MARLEY
President/CEO

DIANA SOTO
Senior Director of
Operations

JO BETH PRUDHOMME
Director of Business
Development

TINA RODRIGUEZ
Events Manager

TERRY CATES
Membership Experience
Coordinator

SYLVIA TENORIO
Administration
Coordinator

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Attachment: 2023-06-02 Cathedral City Year Report - 060123 (3666 : GCVCC Chamber of Commerce Activity Update: March 2023) 840
150+
15%
10,000+
GCVCC Members
Regional Events per
year
are Cathedral City Businesses
Marketing Impressions in the
last 60 days
To help small businesses survive the pandemic,
GCVCC extended all memberships at no cost
during the COVID 19 Pandemic. No business is
ever denied resources or educational
opportunities regardless of their membership
status.

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Attachment: 2023-06-02 Cathedral City Year Report - 060123 (3666 : GCVCC Chamber of Commerce Activity Update: March 2023)

CITY MARKETING
45 Total Weekly E-newsletters
10 City Walks
224 Unique Business Contacts
897
Cathedral City Shop Local
Website Update
Cathedral City’s events are consistently
represented on our weekly eblast to 6,500
email subscribers across the Greater
Coachella Valley. The newsletter open rate
hovers at 45% which is considered
exceptional within Constant Contact.

Contacts resulting from business walks,
mixers, and attending other organizations
networking events and referrals.

City Walks are held once a month. GCV staff
are accompanied by Cathedral City board
members and ambassadors. All prespective
followup is conducted by GCV staff.

In January 2023, a comprehensive update
began of this intractive website. Staff is
working through the business license list
provided on January 6, 2023.. Businesses
currently listed have been verified for
authenticity, location, services provided, and
hours of operation.

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ECONOMIC DEVELOPMENT
3 MIXERS
14 CHAMBER 101/AMBASSADOR
EVENTS
35 IN-PERSON MEETINGS
5 COMMUNITY SUPPORT
Mary Pickford - July 20, 2022.

Drop By Office/AMP Lounge - Dec. 15, 2022
Williams Homes Ribbon Cutting and Mixer -
May 18, 2023
Monthly Chamber Board Meetings
Ambassador Appreciation at Sol Y Sombra
held Dec 1st (20 attendees)
Chamber 101's held at Drop By Office
December 2nd (10 attendees) &
Jan 6th (12 attendees)
and many more
Palm Springs Pride Parade Booth
Hot Air Balloon Event Booth
LGBT Days - Bed Race participants
Mayan International Cultural Event (up-
coming)
Cathedral City State of the City
Appointments and meetings generated as a
result of the unique business contacts
resulting in next level engagements.

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STATE OF THE CITY
The Cathedral City State of the City was a sold out event that saw over 300 attendees receive updates on the work the City of Cathedral City is doing throughout the community. The event was held at DoubleTree by Hilton Golf Resort on May 16, 2023.

It also saw a packed expo hall to kick off the event with over a dozen local vendors for attendees to have the opportunity to learn about. Attendees also had the opportunity to celebrate local businesses, residents and workers during the awards celebration.

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LOCAL LEADERSHIP

MEET OUR CATHEDRAL CITY CHAMBER BOARD OF DIRECTORS
Stephen Burchard, Board Chair
Scott Robinson, Regional GCVCC Board, Boys & Girls Club of Cathedral City Shelley Kaplan, Strategic Consulting
Bob Baltes, Baltes & Associates CPA
Adam Ramirez - LIT Properties
James Lindquist, DAP Health
Peter Bedard, Convergence Healing
Rich Altman, Runway & CCBC Resort
Sandy Jimenez, Entravision
Joe Frazier, Frazier Pest Control

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Attachment: 2023-06-02 Cathedral City Year Report - 060123 (3666 : GCVCC Chamber of Commerce Activity Update: March 2023)

THANK YOU

DIANA SOTO
Senior Director of
Operations

[email protected]

BRANDON MARLEY
President/CEO

[email protected]
[email protected] | gcvcc.org | 760-347-0676

JO BETH PRUDHOMME
Director of Business
Development

[email protected]

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Cathedral City Page 1 of 8 Printed on 6/14/2023

Staff Report

City Council

Item No. 6.D

Meeting Date: June 14, 2023
From: George Crum, Police Chief
Title: Vehicle Tow Service Franchise Ordinance

City Council

RECOMMENDATION:

To introduce, waive reading beyond the title and provide first reading to an Ordinance adding Chapter 12.78 of the Cathedral City Municipal Code relating to towing services.

BACKGROUND:

California Vehicle Code Section 12110 (b) authorizes the city to grant franchises to companies providing certain towing services and to collect a franchise tow service fee to offset actual and reasonable costs incurred in connection with administering its towing program.

The Cathedral City Police Department utilizes the services of private towing companies to store and remove vehicles in emergency situations, vehicles that are abandoned, involved in an accident, constitute an obstruction to traffic, or vehicle owners are arrested. Between 2000 and 2022, franchisees towed on average 848 vehicles per year at the City’s request. This does n ot include tows the Police Department has referred to the franchise tow operators at the request of a constituent who has been in a collision and did not know of a local tow company to call.

Historically, Cathedral City (“City”) has had Vehicle Tow Servi ce Agreements with Mohica Towing and South West Towing. The current contract, which was entered into on January 15, 2014, expired on January 31, 2023, and has most recently been extended to August 31 , 2023 to allow the Cathedral City Police Department (“Po lice Department”) to develop, in cooperation with the City Attorney’s Office, a new RF Q process, including a tow franchise ordinance.

On April 26, 2023, a proposed ordinance and model agreement governing the City’s tow program was presented to the City Council. The City Council directed the ordinance be brought back at a study session with additional information.

At the May 23, 2023 study session, staff presented City Council with three policy questions they sought Council’s guidance in considering a n ew franchise agreement

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and to discuss a possible ordinance:

1. Should the City have an ordinance that codifies the process for selecting non - exclusive tow contracts to provide towing services on behalf of the City? • Council provided direction to proceed with the ordinance which is provided for introduction and first reading.

2. Does the City Council wish to continue to operate a tow rotation franchise with tow operators? If so, does the City Council want to recover the entire cost of operating a tow rotation program?
• Council provided direction to proceed with a tow rotation plan with two options for cost recovery. The two options are discussed in this report, and both provide full cost recovery.
• The proposal no longer seeks to have the operators provide free tows to the City. All City tows will be paid for.
• Council asked staff to review the cost analysis and make sure the costs are actual and reasonable. The cost analysis was carefully reviewed and confirmed by the Finance department.

3. Does the City Council want to eliminate the requirement that tow operator must have a tow yard within the city limits? If so, what reasonable distances or metrics does the City Council wish to adopt?
• The ordinance does not require a tow lot in Cathedral City. Instead it is proposed to provide additional points in the RFQ scoring for companies with lots in Cathedral City and requires facilities within a 30 minute drive time.

The City Attorney’s Office has drafted a proposed Ordinance, based on the directions and policy considerations provided by City Council at the May 23, 2023, study session.

DISCUSSION:

The proposed ordinance, which would add Chapter 12.78, to the Cathedral City Municipal Code, establishes a Tow Rotational Program provid ing for safe, efficient and rapid removal of vehicles that helps maintain safety on the roadways and throughout the City.

Based on feedback from the City Council, the proposed ordinance removes the requirement from the current franchise agreement that a tow operator’s place of business and storage yard must be located within the boundaries of the City. The proposed ordinance provides that a tow operator ’s storage yard must be located no greater than approximately 30 minutes driving distance from the center point of the City. (12.78.060 (A)(6).)

Additionally, the ordinance provides during the request for qualifications (RFQ) process, preference will be given to (1) tow operators with a place of business and vehicle storage facility within the boundaries of the City; (2) tow operators with a place of business and primary storage yard less than 30 minutes driving distance from the center point of the City; and/or (3) operators that possess or are able to obtain a Class

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C and/or Class D tow truck. (12.78.050 (E).)

In order to codify the gove rning procedures for the Tow Rotation Program, the following provisions are included in the ordinance:

• Selection criteria for tow operator applicants (12.78.050); • Operational requirements for tow operators (12.78.060); • Disciplinary actions against tow ope rators for violations (12.78.130, 12.78.140,

12.78.150, 12.78.160, and 12.78.170;
• The City reserves the right to contract with other vendors for special towing services on an as needed basis outside of the tow franchise program (12.78.040 (C).); and
• The Ci ty will recover the fully burdened cost of operating the tow rotation program, i.e., as provided by resolution or by the approved rate sheet in the franchise agreement (12.78.090 (A).) The City Council has asked staff to bring back two options: a franchi se rate as well as a per -tow rate that would be charged to each tow operator.

Tow Program Cost Recovery
During the study session, the City Council asked staff to bring back two options to recover the costs of the tow program: a franchise fee option simil ar to what has been done in the past and a per-tow option.

OPTION 1: Franchise Fee
At the City Council’s request, staff gave a final review of the proposed costs incurred for the tow program and made some minor modifications. The franchise fee is based on the total program costs, based on an average of 848 tows per year, minus any revenues the City receives in vehicle release fees (paid by the registered owner), revenues the City receives from lien sales, or collected Vehicle Impound Cost Recovery fees f rom the prior year. This amount would be divided by the number of tow contractors approved by the City Council to be awarded a rotation tow service agreement. Historically, the tow contractors have paid a monthly franchise fee to the city in the amount of $5500. Once the contract expired and a 90 -day and 120 -day extension was executed, the tow operators paid a per tow fee to the city of $148.

Once new tow service agreements are authorized by City Council, Police Department and Finance staff will conduct a n annual audit of the tow franchise agreement and costs. This audit will ensure the City is receiving the correct amount of reimbursement for its cost recovery and the tow contractors are not overpaying the City.

For FY 2023/24, the proposed franchise fee is $125,802, or $10,483.53 per month.

This total would be divided by the total number of operators selected through an RFQ process.

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Personnel Costs Hourly rate Hours (per tow) Tows Total Cost 2022 Police Officer (80% of total Police tows) 174$ 0.5 580 50,460$ Community Service Officer (20% of total Police tows) 104$ 0.5 145 7,540$ Dispatcher 127$ 0.25 848 26,924$
Records Clerk 118$ 0.75 848 75,048$
Code Compliance Officer 133$ 0.5 36 2,394$
Citizens On Patrol (COP) -$ 0.5 87 -$
# of tows requiring 180 form* 848 Total Personnel Cost 162,366.00$ Program Administration Annual
Professional Services -Legal (hrs/yr) 290$ 12 3,480.00$ Sergeant (hrs/yr) 248$ 48 11,904$
Police Chief (hrs/yr) 369$ 0 -$
Commander (hrs/yr) 287$ 12 3,444$
Analyst II (hrs/yr) 146$ 24 3,504$
Building Maintenance 2.50% 532,775$ 13,319$ Information Systems 2.50% 763,641$ 19,091$ Supplies -$ -$ Total Administrative Costs 54,742$
Total Tow Program Costs 217,108$
Revenues FY 21/22 (91,306)$
Total Franchise Cost FY 2023/24 125,802$
Monthly Cost 10,483.53$

The example below is purely for illustrative purposes and does not indicate the number of operators to be selected:

FY 2023/24
Franchise
Cost
# of
Operators
Total Annual
Cost Per
Operator
Total
Monthly
Cost Per
Operator
125,802$ 2 62,901$ 5,241.75$
125,802$ 3 41,934$ 3,494.50$
125,802$ 4 31,451$ 2,620.88$

OPTION 2 Per Tow Fee:

The City can require contractors to pay a flat rate for each vehicle towed. This rate is currently only slightly higher ($0.35) than the franchise operators are currently paying through the current 120-day extension.

Franchise Fee (FY 2023/24) # of Tows Per Tow Fee
$125,802 848 $148.35

Tow and Storage Fee Rates
As part of the RFP process, the City will also establish the rates that the operators can charge the registered owner for tows and for vehicle storage. The tables below highlight the history of these rates for Cathedral City. Staff is proposing the 2023 rates to be used. These rates are consistent with other Coachella Valley cities.

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Yearly Tow
Rates
Class A tow
Trucks
Special Duty
Hourly Rate
Heavy Duty
Hourly Rate
Class B
Heavy Duty
Hourly Rate
Class C and D
2014 $170 $250 $250 $350
2015 $170 $250 $250 $350
2016 $170 $250 $250 $350
2017 $195 $250 $300 $400
2018 $205 $250 $300 $400
2019 $215 $250 $300 $400
2020 $215 $250 $300 $400
2021 $215 $250 $300 $400
2022 $215 $250 $300 $400
2023 $245 $250 $300 $400

Storage Rates Charged by Contractor 2014 – 2023

Year
Storage
Fees
Outside
storage:

Motorcycles,
passenger
cars
and trucks
20' or less
Inside
storage:

Motor-
cycles,
passenger
cars
and trucks
20' or less
Trailers 15'
or less
Trucks,
Trailers,
and other
vehicles 20’
to 30’
Trucks,
Trailers,
and other
vehicles of
30’ or more
2014 $50 $80 $50 $80 $80
2015 $50 $80 $50 $80 $80
2016 $50 $80 $50 $80 $80
2017 $62 $100 $50 $80 $90
2018 $67 $100 $50 $80 $90
2019 $72 $100 $50 $80 $90
2020 $72 $100 $50 $80 $90
2021 $72 $100 $50 $80 $90
2022 $72 $100 $50 $80 $90
2023 $80 $100 $50 $80 $90

Once an ordinance is adopted by City Council, governing the process and selection of rotational tow services in the city, the Police Department will issue a Request for Qualifications (RFQ).

Selection of Franchisees:

A. The selection of the franchisees shall be done through a competitive selection process. Upon any opening(s) on the rotation list, the Police Chief, in coope ration with the City Manager, shall issue a notice of request for qualifications (RFQ) to solicit interested tow truck operators. The RFQ shall be posted on the City's website and posted on a website devoted to procurement services, bid and vendor

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management such as Planetbids.com. Responses to the RFQ shall be due no earlier than 20 days following posting of the notice as required herein.

B. The Police Chief, in coordination with the City Manager or their designee, shall evaluate the qualifications of the tow truck operators responding to the RFQ. No later than 60 days after receipt of the responses to the RFQ, the Police Chief shall submit to the City Council for consideration the qualifications of the tow truck operator(s) that they deem most qualified to gether with a franchise agreement pursuant to the Rotation Tow Services Program.

C. With respect to the selection process as provided herein, the Police Chief shall determine the number of franchisees needed to provide towing services to the Police Department. In determining the required number of franchisees, the Police Chief may consider the following factors:

1. The operational needs of the Police Department;

2. Population growth;

3. The number of currently authorized franchisees and their average response time;

4. Administrative burdens imposed by the number of franchisees to be included in a rotation list; and

5. Such other reasonable factors as determined by the Police Chief.

D. With respect to evaluating the qualifications of the tow truck operators responding to the RFQ, the Police Chief shall consider the following factors:

1. Whether the applicants can satisfy the insurance, business license, and tow operator permit requirements of the franchise agreement;

2. Whether the applicants are qualified on th e basis of prior experience in the towing operation business and financial responsibility;

3. Whether the tow operation applicants can provide service calls for the police department twenty-four hours a day, including holidays;

4. Whether the applicants wi ll accept all tows requested by the city, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment;

5. Whether the applicant, or any person involved with the applicant has been refused a towing permit or contract or had a towing permit or contract suspended or revoked by this city or any other city;

6. Applicants’ rates, fees and other charges when the tow is initiated by a call from the city, including, applicants standard tow rate; impoundment rates for day and night and whether an after -hours release fee is charged; hourly rates for extended service, based on a thirty -minute maximum normal time after arrival at the location for the tow; and daily storage fees and list of other miscellaneous tow operation fees; and

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7. Whether applicants are able to meet the maximum response time as determined by the Police Chief.

E. With respect to selecting qualified tow truck operators responding to the RFQ, preference will be given to tow truck operators that meet the following criteria:

1. Tow truck operators with a place of business and primary storage yard within the boundaries of the City;

2. Tow truck operators with a place of business and primary storage yard less than thirty (30) minutes driving distance from the center point of the City; and/or

3. Tow truck operators that possess or are able to obtain a Class C and/or Class D tow truck.

Selection Process
Submittals received by the deadline will be reviewed by a selection panel specified by the Chief of Police and City Manager or designee. The selection panel will be comprised of police staff who have relevant knowledge and experience of the specified duties and processes. The panel will score the proposals based on the materials submitted according to the following criteria:

Category Criteria Maximum Points
1 Whether the applicants can satisfy the insurance,
business license, and tow operator permit
requirements of the franchise agreement;
1-10
2 Whether the applicants are qualified on the basis of
prior experience in the towing operation business
and financial responsibility;
1-10
3 Whether the tow operation applicants can provide
service calls for the police department twenty-four
hours a day, including holidays;
1-10
4 Whether the applicants will accept all tows
requested by the city, including tows of abandoned
or dismantled vehicles and/or tows requiring special
equipment; The City’s experience (if any) with the
bidders
1-10
5 Whether the applicant, or any person involved with
the applicant has been refused a towing permit or
contract or had a towing permit or contract
suspended or revoked by this city or any other city;
1-10
6 Applicants’ rates, fees, and other charges when the
tow is initiated by a call from the city, including,
applicants standard tow rate; impoundment rates for
day and night and whether an after-hours release
fee is charged; hourly rates for extended service,
based on a thirty-minute maximum normal time
1-10

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after arrival at the location for the tow; and daily
storage fees and list of other miscellaneous tow
operation fees
7 The City’s experience (if any) with the bidder and
the general reputation of the bidder within the
community
1-10
8 Facility and Equipment Inspections
Inspections of all equipment the bidder proposes to
use in the execution of the contract, to include all
trucks/ business office, business location, storage,
and evidence areas
1-10
9 Tow truck operators with a place of business and
primary storage yard within the boundaries of the
City;
10 10 Tow truck operators that possess or able to obtain a Class C and/or Class D tow truck.
5 Total Points:

FISCAL IMPACT:

The revenue estimates in the approved budget for FY23-24 assume recovering 100% of the incurred cost to maintain a Franchise Tow Service Agreement.

FIVE-YEAR STRATEGIC PLAN:

N/A

ATTACHMENTS:

6.14.23 - Ordinance re Rotation Tow Services

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LA #4867-7241-4542 v1
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CATHEDRAL CITY, CALIFORNIA, ADDING CHAPTER

12.78 TO THE CITY OF CATHEDRAL CITY MUNICIPAL

CODE REGARDING ROTATIONAL TOWING SERVICES
WHEREAS, Pursuant to California Vehicle Code section 12110(b), the City has the authority to grant franchises to companies that provide certain towing services and to collect a franchise tow service fee to offset actual and reasonable costs incurred in connection with administering its towing program; and

WHEREAS, since 2014 the City has had nonexclusive franchise agreements with Mohica Towing and South West Towing that serve on a revolving rotational schedule as determined by the Cathedral City Police Department (“Police Department”); and WHEREAS, the City Council desires to increase the number of tow operators providing services to the City; and
WHEREAS, the City Council desires to codify the procedures for operating a Tow Rotational Program that provides for safe, efficient and rapid removal of v ehicles and to help maintain safety on the roadways and throughout the City.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. FINDINGS.

The City Council hereby finds that all of the foregoing recitals and the staff report presented herewith are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

SECTION 2. CHAPTER 12.78 OF TITLE 12 OF THE CITY OF CATHEDRAL CITY MUNICIPAL CODE.

Chapter 12.78 [Rotational Towing Services] of Title 12 the City of Cathedral City Municipal Code is hereby added to read as shown in Exhibit "A".

SECTION 3. EFFECTIVE DATE.

This ordinance shall be effective 30 days from and after its final passage.

SECTION 4. SEVERABILITY.

If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional b y the decision of any court of competent jurisdiction, then such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Cathedral City hereby declare they would have adopted this ordinance, and e ach section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any

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LA #4867-7241-4542 v1
one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 5. PUBLICATION.

The City Clerk is authorized and directed to cause this ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Se ction 36933(a) or, to cause this ordinance to be published in the manner required by law using the alternative summary and posting procedure authorized under Government Code (c).

INTRODUCED at the regular meeting of Cathedral City Council on the _____ day of __________2023.

PASSED, APPROVED AND ADOPTED at the regular meeting of Cathedral City Council on the _______ day of ___________2023.

AYES:

NOES:

ABSTAIN

Rita Lamb, Mayor

ATTEST:

Tracey R. Hermosillo, City Clerk

APPROVED AS TO FORM:

Eric S. Vail, City Attorney

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LA #4867-7241-4542 v1
Exhibit A
Chapter 12.78

ROTATIONAL TOWING SERVICES
Sections:

12.78.010 Purpose and intent.

12.78.020 Definitions.

12.78.030 Tow truck operator franchise.

12.78.040 Nonexclusive franchise.

12.78.050 Selection of franchisees.

12.78.060 Tow operator requirements.

12.78.070 Rotation Tow Services Program.

12.78.080 Vehicle impound cost recovery fee.

12.78.090 Costs.

12.78.100 Franchise agreements.

12.78.110 Additional services to be provided.

12.78.120 Authority to maintain City towing operations and storage yard.

12.78.130 Compliance with law.

12.78.140 Compliance with franchise agreement.

12.78.150 Disciplinary action.

12.78.160 Terms of disciplinary action.

12.78.170 Hearing and appeal.

12.78.010 Purpose and intent.

It is the intent of this chapter and any subsequent amendments thereto to prescribe the basic regulations for the operation of the City of Cathedral City ("City") and Cathedral City Police Department ("Police Department") towing service in emergency situations and in the removal of vehicles that are abandoned, involved in an accident, or constitute an obstruction to traffic because of mechanical failure. It is the purpose of the City Council in enacting this chapter to provide a fair and impartial means of distributing requests for towing services among qualified

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LA #4867-7241-4542 v1
franchises, and to ensure that such service is prompt and reasonably priced, and in the best interests of the public as well as the interest of efficient policing operations for the removal of such vehicles from public streets.

12.78.020 Definitions.

For purposes of this chapter, the following terms, phrases, words, and derivations shall have the meaning given in this section:
"City Manager" means the City Manager of the City of Cathedral City. "Franchise agreement" means an agreement between the City and a franchisee for the purpose of providing towing services as provided in this chapter. "Franchisee" means a certain tow truck operator to which the Police Chief, in cooperation with the City Manager, grant a nonexclusive franchise for purposes of providing towing services to the City under and pursuant to the provisions of this chapter. "Police Chief” means the Chief of Police of the Police Department of the City of Cathedral City. "Police Department" means the Police Department of the City of Cathedral City. “Code Compliance Department” means the City’s Code Compliance Department. “Primary Storage Yard” means a permanent securely fenced or an enclosed storage area of an adequate size for the proper storage of vehicles towed and/or impounded, that is controlled by the franchisee, and is located no greater than approximately thirty (30) minutes driving distance from the center point of the City.
“Place of Business” means the principal place of business of the towing company where owner(s) and/or manager(s) conduct and coordinate the tow company’s business.

12.78.030 Tow truck operator franchise.

The Police Chief, in cooperation with the City Manager, may at their discretion grant a nonexclusive franchise to a tow truck operator ("franchisee") to provide towing services to the City under and pursuant to the provisions of this chapter.

12.78.040 Nonexclusive franchise.

A. All franchises granted to franchisees pursuant to this chapter shall be nonexclusive and shall be for a term to be specified by the Police Chief in the franchise agreement between the City and the franchisee.

B. No provisions of this chapter shall be deemed to require restricting the number of franchises to one or any particular number, and no provision of this chapter shall be deemed to require the Police Chief to grant any franchise if the Police Chief determines that the grant of any such franchise is not in the best interest of the City and the public.

C. No provision of this chapter shall be deemed to restrict the City’s ability to enter into an agreement with a towing company that does not meet the qualifications as provided herein in order to provide specialized towing services on an as needed basis.

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12.78.050 Selection of franchisees.

A. The selection of the franchisees shall be done through a competitive selection process.

Upon any opening(s) on the rotation list, the Police Chief, in cooperation with the City Manager, shall issue a notice of request for qualifications (RFQ) to solicit interested tow truck operators.

The RFQ shall be posted on the City's website and posted on a website devoted to procurement services, bid and vendor management such as Planetbids.com. Responses to the RFQ shall be due no earlier than 20 days following posting of the notice as required herein.

B. The Police Chief, in coordination with the City Manager or designee, shall evaluate the qualifications of the tow truck operators responding to the RFQ. No later than 60 days after receipt of the responses to the RFQ, the Police Chief shall submit to the City Council for consideration the qualifications of the tow truck operator(s) that they deem most qualified together with a franchise agreement pursuant to the Rotation Tow Services Program.

1. The operational needs of the Police Department;

2. Population growth;

3. The number of currently authorized franchisees and their average response time;

4. Administrative burdens imposed by the number of franchisees to be included in a rotation list; and

5. Such other reasonable factors as determined by the Police Chief.

D. With respect to evaluating the qualifications of the tow truck operators responding to the RFQ, the Police Chief shall consider the following factors:

1. Whether the applicants can satisfy the insurance, business license, and tow operator permit requirements of the franchise agreement;

2. Whether the applicants are qualified on the basis of prior experience in the towing operation business and financial responsibility;

3. Whether the tow operation applicants can provide service calls for the police department twenty-four hours a day, including holidays;

4. Whether the applicants will accept all tows requested by the city, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment;

6. Applicants’ rates, fees and other charges when the tow is initiated by a call from the city,

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including, applicants standard tow rate; impoundment rates for day and night and whether an after-hours release fee is charged; hourly rates for extended service, based on a thirty minute maximum normal time after arrival at the location for the tow; and daily storage fees and list of other miscellaneous tow operation fees; and

7. Whether applicants are able to meet the maximum response time as determined by the Police Chief.

E. With respect to selecting qualified tow truck operators responding to the RFQ, preference will be given to tow truck operators that meet the following criteria:

1. Tow truck operators with a place of business and primary storage yard within the boundaries of the City; and/or

2. Tow truck operators that possess or able to obtain a Class C and/or Class D tow truck.

12.78.060 Tow operator requirements.

A. As provided in the franchise agreement, a franchisee must meet the following requirements, including, but not limited to:

1. Having a minimum of three (3) verifiable years of for-hire towing experience, as an owner or principal, prior to responding to a request for qualifications to qualify for a rotation tow listing;

2. Having a valid Motor Carrier Property (MCP) permit;

3. Manager(s) and all tow truck drivers must be enrolled in in the Employer Pull Notice (EPN) program;

4. Providing service calls for the police department twenty-four hours a day, including holidays;

5. Responding to requests for service by service by the Police Department or Code Compliance Department by providing a tow vehicle at the response location no greater than thirty (30) minutes form the time of such requests, with a properly equipped tow truck of the class required to tow the vehicle, perform vehicle recovery (e.g., rollover, down embankment), provide service (e.g., fuel, flat tire change), and be in possession of the appropriate class of driver license, applicable endorsements, and permits.

6. Maintaining a valid Cathedral City Business License pursuant to Chapter 3.28 of the Cathedral City Municipal Code;

7. Maintaining a primary storage yard located no greater than approximately thirty (30) minutes driving distance from the center point of the City;

8. Ensuring franchisee’s tow truck drivers responding to calls initiated by the City are competent and possess a valid California driver's license of an appropriate class for the vehicle to be driven, and a tow truck driver certificate or a temporary tow truck driver certificate issued by the Department of the California Highway Patrol, to permit the operation of the tow truck pursuant to Section 12520(a) of the California Vehicle Code;

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9. Possessing or being able to obtain at least one Class A tow truck (i.e., tow truck which has a manufacturer’s GVWR of at least 14,000 pounds) and Class B tow truck (i.e., tow truck with a GVWR of at least 33,000 pounds, equipped with air brakes and a tractor protection valve or device, and be capable of providing and maintaining continuous air to the towed vehicle); and

10. Procuring and maintaining insurance during the term of the franchise agreement, including, but not limited to, insurance required pursuant to Section 16500.5 of the California Vehicle Code and the franchise agreement.

B. As provided in the franchise agreement, franchisee’s must maintain its place of business with the following requirements, including, but not limited to:

1. A sign which clearly identifies the place of business to the public as a tow service;

2. Business hours shall be posted in plain view to the public;

3. Sufficiently staffed to allow customers to talk face-to-face with a tow company’s owner, manager, or employee during normal business hours;

4. Open during normal business hours pursuant to Section 22651.07 (d) of the California Vehicle Code;

5. Records of all tow services furnished, business records relating to personnel, insurance, personnel taxes, payroll, applicable operating authorities, local operating authorities, lien sale actions, driver’s record of duty status (intrastate and/or interstate), Federal Communication Commission licensing (if applicable), and non-City tows; and

6. Maintain business records for a period of two (2) years.

12.78.070 Rotation Tow Services Program
The tow truck operators who obtain a franchise pursuant to this chapter shall provide towing service to the City pursuant to the Rotation Tow Services Program established by the Police Chief.

12.78.080 Vehicle impound cost recovery fee.

A. The vehicle impound cost recovery fee ("VICR fee") shall be set by the Police Department.

B. The City hereby establishes a VICR fee, payable when a registered owner or a legal owner seeks the release of a vehicle which the Police Department has impounded.

C. A registered owner who redeems an impounded vehicle or requests its release from a franchisee's storage facility shall first pay to the Police Department the VICR fee.

D. The Police Department may waive the VICR fee due to extenuating circumstances. It is not the intention of the City nor the Police Department to penalize victims. Circumstances under which the VICR fee may be waived include the impounding of recovered stolen or embezzled

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vehicles, and vehicles impounded due to driver injury or incapacitation.

12.78.090 Costs.

A. The City shall uniformly recover the fully burdened cost of operating the Tow Rotation Program as provided by resolution, approved by the City Council, or by the approved rate sheet in the franchise agreement.

B. Any tow truck operator granted a franchise pursuant to the provisions of this chapter shall pay to the City a fee pursuant to the franchise agreement. Such fee shall not exceed the City's annual cost of administration and enforcement of this chapter.

12.78.100 Franchise agreements.

All franchises granted by the Police Chief pursuant to this chapter shall be memorialized in a written franchise agreement between the franchisee and the City.

12.78.110 Additional services to be provided.

Franchisee shall provide to the City, at no charge, the services needed to facilitate the City's vehicle abatement program. Additionally, the franchisee will provide emergency response to aid and service City and Police Department vehicles that are one ton or less, within fifty miles of City limits, at no cost to the City or Police Department.

12.78.120 Authority to maintain City towing operations and storage yard.

Nothing in this chapter shall be construed as restricting or prohibiting the City from conducting its own towing operations or maintaining its own storage yard, either in lieu of, or in addition to, any franchise awarded pursuant to this chapter.

12.78.130 Compliance with law.

A. Franchisee shall, at all times, comply with federal, state, and local laws and ordinances.

Any conviction of the franchisee or employee involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence, a sexual offense, a drug-related offense, felony driving while under the influence of alcohol and/or drugs, misdemeanor driving while under the influence of alcohol and/or drugs, or acts of moral turpitude should be cause for suspension or removal of an Franchisee, denial of an Franchisee’s application, or termination of the Tow Rotation Agreement.

C. City personnel, as well as franchisee’s and their employees, shall not be offered nor accept gratuities pursuant to Section 12110(a) California Vehicle Code.

D. No franchisee or their employees shall accept any gratuities from a repair shop for the delivery of a vehicle, not owned by the repair shop or tow company, for the purpose of storage or repair pursuant to Section 12110(c) California Vehicle Code.

E. A franchisee shall satisfy a court order mandating reimbursement to the vehicle or property owner for the damage or loss which occurred while the vehicle was in the Franchisee’s custody.

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F. A franchisee or employee arrested/charged for a violation involving any of the above crimes should be suspended from the tow rotation program until the case is adjudicated.

12.78.140 Compliance with franchise agreement.

A. As a condition of inclusion in the rotation tow program, franchisee must comply with terms and conditions of the franchise agreement. Failure to comply with the terms and conditions of the franchise agreement shall be cause for disciplinary action (i.e., written reprimand, suspension, termination, or denial of an application).

B. A violation of the equipment requirements related to safety shall be cause for immediate suspension. The suspension shall remain in effect until the suspension period is completed and the City has inspected the equipment and concluded the franchisee is in compliance.

C. A violation of the gross vehicle weight rating (GVWR) and/or safe loading requirements of a tow truck may be cause for immediate disciplinary action. This includes exceeding the tow truck’s GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck’s unladen front axle weight on the front axle when towing.

D. A violation of intentionally overcharging or a pattern of overcharging shall be cause for suspension. The suspension shall remain in effect until the suspension period is completed and proof of reimbursement to the aggrieved customer has been provided to the City.

E. Any unsatisfactory evaluation rating issued by the City shall be cause for suspension.

The suspension shall remain in effect until proof of a satisfactory compliance rating from the City has been provided to the Chief of Police.

F. Allowing an incompetent tow truck driver to respond to a City call shall be cause for disciplinary action of the franchisee.

G. A franchisee’s failure or refusal to respond to a call by the City shall be cause for disciplinary action of the franchisee.

H. A franchisee responding a tow truck driver to a City call (i.e., the drivers dispatched by the franchisee) who has not been approved by the City shall be cause for disciplinary action of the franchisee.

I. Franchisee shall not record (i.e., videotape or photograph) a scene unless it is for official use by the tow company for business related reasons. The on-scene investigating officer or incident commander shall make the determination when a franchisee may record a scene for tow related business reasons. In the event a franchisee is determined to be in violation of this provision, they will immediately surrender any such recording device to an officer of the City.

12.78.150 Disciplinary action.

A. The Chief of Police shall take disciplinary action against a franchisee for violations investigated and sustained. Failure by the franchisee, or their agent, to comply with the terms and conditions of the franchise agreement shall be cause for disciplinary action (i.e., written reprimand, suspension, denial of an application, or termination from the Rotation Tow Program).

The Chief of Police shall retain discretion regarding the length of any suspension imposed

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pursuant to the terms and conditions of this franchise agreement.

B. No provision of this chapter precludes the City from taking the appropriate enforcement or administrative action for any violations of law.

C. No provision of this chapter shall be deemed to prohibit the City from immediately suspending, terminating, or denying an application of any franchisee or employee for any of the following:

1. Whose conduct, in the opinion of the Chief of Police, is deemed to be a danger to the motoring public (e.g., registered sex offender, acts of violence, fraud).

2. A violation of equipment requirements, related to safety.

3. Repeated failures or refusals to respond to a call.

4. Who has engaged in conduct constituting a flagrant violation of the AGREEMENT.

D. Records of violations shall be retained by the CITY for 36 months, plus the franchise agreement term.

12.78.160 Terms of disciplinary action.

A. Violations of the terms and conditions of the franchise agreement may be cause for disciplinary action in the following manner:

1. First violation within a 12-month period – letter of written reprimand.

2. Second violation within a 12-month period – one to 30-day suspension.

3. Third violation within a 12-month period – 60 to 90-day suspension.

4. Fourth violation within a 12-month period – termination of the franchise agreement.

No provision of this chapter precludes a Chief of Police from imposing a suspension for a first violation.

B. Violations of the terms and conditions of the franchise agreement which warrant suspension for the first violation are categorized as major violations. Any subsequent or continuing major violation may be cause for termination. In lieu of termination, the City may impose additional suspensions for longer periods, if deemed appropriate. When considering disciplinary action for a major violation of the franchise agreement, a Chief of Police should take into consideration all violations which have occurred within 36 months prior to the date of the current violation.

C. A suspended or terminated franchisee shall not be eligible for a rotation listing for the duration of the suspension or termination. This provision applies to the franchisee working in any capacity within any tow business or operating any tow business, even if operated under new ownership.

D. If the franchisee is serving a suspension, the franchisee shall be required to have complied with all terms and conditions of the current franchise agreement at the time of

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reinstatement.

E. A franchisee shall comply with all the terms of the suspension (i.e., restitution to victims, court orders) prior to reinstatement or reapplication.

12.78.170 Hearing and appeal.

A. A hearing shall be granted, upon a franchisees request, within ten (10) calendar days, for any of the following circumstances:

1. Franchisee is served with disciplinary action.

2. Denial of a franchisees rotation tow application.

B. The Chief of Police shall provide written notification to the franchisee requesting a hearing indicating acknowledgement of the hearing request and a hearing date assigned.

C. A hearing shall be held as soon as practicable. The hearing shall be conducted by the Chief of Police or designee, and the franchisee shall be entitled to present all relevant facts and circumstances in support of the franchisee’s position. The franchisee shall be entitled to present testimony of at least one qualified person (i.e., representation by counsel or attorney).

D. The franchisee shall be notified in writing of the Chief of Police’s decision(s) within ten (10) business days of the date of completion of the hearing.

E. Disciplinary action shall not take effect until the hearing and appeal process has been exhausted, with the exception of franchisee whose conduct is deemed to be a danger to the motoring public or who continue to violate the terms and conditions of this franchise agreement.

G. If a franchisee fails to request a hearing or appeal within the specified time or fails to appear at a scheduled hearing or appeal, the action taken by the City Chief of Police shall be final and the disciplinary action shall take effect upon written notification to the franchisee by the Chief of Police.

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Cathedral City City CouncilJune 14, 2023

Cathedral City City Council
June 14, 2023