Agenda packet — Cathedral City City Council, July 22, 2026 (part 3 of 4)

The equipment purchased through this project will provide long-term sustainability beyond the grant term. The Bosch EDR download tool and DJI Matrice 4 will remain Department assets and will be integrated into standard operating practices for applicable serious-injury and fatal collision investigations. These tools will improve investigative quality, support effective prosecution and accountability, reduce personnel exposure to traffic hazards, and help shorten roadway closures—benefits that continue for multiple years without recurring equipment costs. CCPD will maintain the equipment through existing Department processes, ensure personnel are designated to operate the systems in accordance with policy, and continue documenting performance measures to support future traffic safety planning and funding decisions.

Administrative Support
The Cathedral City Police Department has successfully managed multiple grant-funded projects and participates annually in the California Office of Traffic Safety (OTS) STEP grant program. Project oversight will be provided by the Traffic Bureau supervisor/Police Sergeant serving as the grant coordinator, who will be responsible for scheduling and documenting the 24 DUI saturation patrols, ensuring activities align with the approved scope and budget, and completing required quarterly and final reporting. Operational and statistical support will be provided through the Department’s Alliance CAD/RMS system, which is used for report writing, computer-aided dispatch, records management, and crime analysis. Collision and enforcement statistics will be compiled from Alliance by the Traffic Sergeant and reviewed regularly to evaluate performance and guide enforcement deployment. Fiscal management and reimbursement billing will be handled by the Police Department’s Administrative Analyst in coordination with the City of Cathedral City Finance Department to ensure proper tracking, documentation, and timely submission of grant expenditures. CCPD has the personnel, administrative processes, and physical resources necessary to implement directed enforcement operations and integrate the Bosch EDR tool and DJI Matrice 4 into traffic collision investigations within the project performance period.
14 Schedule B

Detailed Budget Estimate

Award Number Organization/Agency Total Amount
30890 Cathedral City Police Department $25,152.00

Cost Category Line Item Name Total Cost to Grant
Personnel
DUI Saturation Patrol $25,152.00
Category Sub-Total $25,152.00

Grant Total $25,152.00
15 Schedule B-1
Budget Narrative

Cathedral City Police Department

Prior to engaging in grant-funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the grantee does not have primary traffic jurisdiction, the grantee should consult with the agency having primary traffic jurisdiction.

Personnel

DUI Saturation Patrol
$25,152.00

24 DUI saturation patrols × 8 hours per patrol = 192 total overtime hours, One Officer per patrol. 192 overtime hours × $131 per hour = $25,152. The $131 hourly rate covers overtime pay with benefits.

16 RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY, CALIFORNIA, AUTHORIZING ACCEPTANCE OF THE FY 2026/2027 CANNABIS TAX FUND

GRANT PROGRAM (CTFGP) AWARD AND AUTHORIZING THE EXECUTION OF RELATED

DOCUMENTS
WHEREAS, the California Highway Patrol (CHP), through the Cannabis Tax Fund, has made available grant funds under the Cannabis Tax Fund Grant Program (CTFGP) to support education, prevention, training, and enforcement related to driving under the influence of alcohol and drugs, including cannabis; and
WHEREAS, the Cathedral City Police Department has been awarded Grant Agreement No. 30890 titled "FY 2026/27 Cannabis Tax Fund Grant Program Law Enforcement - Cathedral City Police Department" in the amount of $25,152.00; and
WHEREAS, the project will provide funding for traffic safety activities, including but not limited to training, impaired driving enforcement operations, equipment, and related program costs, as set forth in the Grant Agreement; and
WHEREAS, acceptance of these funds will enhance the City's ability to reduce traffic collisions, injuries, and fatalities caused by impaired driving, thereby increasing community safety; and
WHEREAS, the City Council of Cathedral City is authorized to enter into grant agreements and to designate an authorized official to execute the necessary documents on its behalf.

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

1. The City Council hereby accepts the FY 2026/27 Cannabis Tax Fund Grant Program (CTFGP) Grant Award from the California Highway Patrol in the amount of $25,152.00.

2. The City Council authorizes the Chief of Police, or the Chief of Police's designee, to execute the Grant Agreement, and all amendments and related documents as required by the CHP to implement the project.

3. The City Clerk is directed to certify this Resolution and forward copies to the appropriate state officials and to the Cathedral City Police Department for grant file documentation.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Cathedral City held on this 22 day of June, 2026, by the following vote:

Ayes:
17 Noes:

Absent:

Abstain:
______________________________
Raymond Gregory, Mayor
ATTEST:
______________________________
Christina Burton, City Clerk
APPROVED AS TO FORM:
______________________________
Eric Vail, City Attorney
18 Staff Report
City Council
Item No. 3.P
Meeting Date: July 22, 2026
From: Nate Hanley, Police Commander
Title: Purchase of Police Vehicle for the Clinical Behavioral Health Assessment (CBAT) Officer Using Opioid Settlement Funds RECOMMENDATION:

Authorize the purchase of a 2026 Chevrolet Traverse in the amount of $63,381.07, including vehicle acquisition, outfitting, decals, and mobile data computer.

BACKGROUND:

In June 2026, the City Council approved the use of National Opioid Settlement funds to support the Clinical Behavioral Health Assessment (CBAT) officer position. This approval also included funding for a dedicated vehicle that will be used for emergency response, case management, and the transportation of individuals seeking treatment or intervention.

The vehicle will support field-based behavioral health assessments, treatment referrals, and stabilization services. It will be a marked patrol unit assigned exclusively to the CBAT program and will be specially upfitted for overdose response and equipped with supplies to assist members of the public.

DISCUSSION:

Staff conducted market research within Cathedral City and the Coachella Valley regarding vendors offering the 2026 Chevrolet Traverse AWD SUV with vinyl wrapped rear seats.

Jessup Auto Plaza indicated they had the vehicle in stock and could vinyl wrap the rear seat.

La Quinta Chevrolet had a Traverse AWD in stock in a higher model outfitting but would not vinyl wrap the rear seat. In addition to both local vendors, staff contacted Quality Chevrolet in Escondido, CA, who also had the vehicle in stock, but would not vinyl wrap the rear seat.

Vendor Name Quoted Price
Jessup Auto Plaza In stock – Vinyl wrapped rear seat $48,107.11 La Quinta Chevrolet Z71 model in stock- no wrapped rear seat $54,208.37 Quality Chevrolet in Escondido In stock, no wrapped rear seat $46,156.17

The proposed vehicle from Jessup Auto Plaza matches the specification and the needs for the CBAT program. Staff have obtained quotes for outfitting of the vehicle, including sole source quotes from Dana Safety for emergency lighting and equipment 1 SoCal Graphics in Cathedral City for vehicle graphics laptop coordinated through IT and the city’s agreement with Dell.

Section 3.12.160 of the Cathedral City Municipal Code permits exceptions to a competitive bidding requirement when a commodity can be obtained from only one vendor or through a government contract, among other instances. Dana Safety is the only vendor that can obtain and install the necessary emergency lighting and equipment in a reasonable period of time.

SoCal Branding holds the City’s vehicle graphics design. The City is receiving beneficial pricing through its governmental contract with Dell.

FISCAL IMPACT:

The total fiscal impact of this purchase is $58,352.64, including the acquisition of the Chevrolet Traverse, outfitting, decals, and mobile data computer. The applicable quotes include the estimated local 9.25% sales tax. With this being an addition to the city’s fleet inventory, the Opioid Fund will provide funding to the Equipment Replacement Fund (611).

Cost Breakdown:

Item Vendor Total Cost
1- Chevrolet Traverse LT AWD Jessup Auto Plaza $48,107.11 1- Emergency Equipment Package Dana Supply $10,899.15
1- Vehicle Decals So. Cal Branding $1,569.81
1- Mobile Data Computer (MDC) Dell Computers $2,805.00
Total $63,381.07

DESCRIPTION GENERAL
LEDGER

ACCOUNT
CODES

PROJECT
CODE
AMOUNT ONE TIME or

ONGOING
2026-2027 CBAT Opioid
Vehicle
611-000-000-
000-8800-8807 N/A $63,381.07 One Time
2026-2027 CBAT Opioid
Vehicle
2XX-900-910-
911-9400-94XX N/A $63,381.07 One Time
2026-2027 CBAT Opioid
Vehicle
611-900-910-
911-7400-74XX N/A ($63,381.07) One Time
2026-2027 Total $63,381.07
FIVE-YEAR STRATEGIC PLAN:

The vehicle purchase for the program would directly support our strategic goals of D- Innovation and E- Safety
ATTACHMENTS:

1. Jessup Email

2. Jessup quote

3. Dana Safety Supply Emergency Equipment Quote
2 4. SoCal Branding Decals Quote

5. Dell MDC Quote

6. La Quinta Chevrolet Email

7. La Quinta Chevrolet Quote

8. Quality Chevrolet Quote
3 1
Nate Hanley
From: Ramiro Magana <[email protected]>
Sent: Wednesday, July 8, 2026 3:17 PM
To: Nate Hanley
Subject: Re: Chevy Traverse AWD Quote
Attachments: Commander Hanley.pdf
Follow Up Flag: Flag for follow up
Flag Status: Flagged
Hello Commander Hanley,

If I understood correctly this should be the correct quote you requested. The second row vinyl is included in the quote as the accessories line for $995 then itemized at the bottom. Please let me know if you have any questions or need any additional information.

-Ramiro

On Wed, Jul 8, 2026 at 1:50 PM Nate Hanley <[email protected]> wrote:

Good afternoon Ramiro,

I have been asked to have you update the quote to the price of 43,000 with vinyl wrapped rear seat on a quoted document. I need this to present it to council.

Respectfully,

Commander Nate Hanley

Operations, Traffic Bureau, & Desert Regional SWAT Commander

Cathedral City Police Department
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
(760)770-0328
[email protected]

Tempus Fugit, Momento Mori

On May 18, 2026, at 4:47 PM, Ramiro Magana <[email protected]> wrote:

Sounds good. So adding that would make the out the door figure $43,000 including vinyl, taxes, and fees. 2026 Chevy Traverse LT AWD
4 2

-Ramiro

On Mon, May 18, 2026 at 2:07 PM Nate Hanley <[email protected]> wrote:

We would only need vinyl wrapping for the second row. The third is likely going to be removed.

Respectfully,

Commander Nate Hanley
Operations, Traffic Bureau, & Desert Regional SWAT Commander Cathedral City Police Department
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
(760)770-0328
[email protected]
<image001.png>
Tempus Fugit, Momento Mori!

From: Ramiro Magana <[email protected]>
Sent: Friday, May 15, 2026 1:58 PM
To: Nate Hanley <[email protected]>
Subject: Re: Chevy Traverse AWD Quote

Finally heard back from the upholstery company. They told me if you want actual leather it will be $1900 to wrap all of the rear seats. For vinyl it's $1700 for all the rear seats.

Since it is a 3rd row vehicle if you chose to only do one row he said it is half of the cost so if you want one 1 row in vinyl its $850. Please let me know if you need any other information. I have also clipped the window sticker to the AWD Traverse LT. This one is in Summit white but Mosaic black is available as well.

You don't often get email from [email protected]. Learn why this is important 5 3

-Ramiro
Jessup Auto Plaza

<image002.png>

On Thu, May 14, 2026 at 7:53 AM Nate Hanley <[email protected]> wrote:

Mr. Magana,

Can you please provide me a fleet quote for a white or black Chevy Traverse AWD.

Also does the vehicle come with the option of the rear seats being vinyl instead of cloth. This vehicle is intended for field work at CCPD.

Respectfully,

7 City of Cathedral City
2026 TRAVERSE LT AWD 1LB56
Salesperson: Ramiro
07/08/2026 3:07 PM
Incentive programs and rebates are estimates, subject to change and verification. Tax Profile: 9.25% Tax Cash Deal Structure
Market Value 45,220.00
Discount Savings -2,220.00
Vehicle Price 43,000.00
Accessories 995.00
Document Prep Fee 85.00
License / Title 33.00
Tire/Battery/VTR Fee 8.75
Sales Tax 3,985.36
Due On Delivery 48,107.11
Tax: 9.25 9.25% TAX

X
Customer Signature Date
© Copyright (C) 2026 Guest Concepts, Inc. – All Rights Reserved Cash Total Includes: Second Row Vinyl $995
8 800-845-0045Telephone:

DANA SAFETY SUPPLY, INC
500 S EDWARDIA DR
GREENSBORO, NC 27409

CATHEDRAL CITY POLICE DEPARTMENT
68700 A VENIDA LALO GUERRERO
CATHEDRAL CITY, CA 92234
United States
(For Pickup - RANC)

RANCHO WAREHOUSE
11699 6th Street
Rancho Cucamonga, CA 91730
Sales Quote
629241-A
CATHCPDCustomer No.

Sales Quote No.

Ship ToBill To
Contact:

Telephone: Telephone:

Contact:
760-202-2413

Warehouse: RANC
Commander Nate Hanley
Operations, Traffic Bureau, & Desert Regional SW A T Commander Cathedral City Police Department
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
(760)770-0328
Cell (760)702-1090
[email protected]
11 N 0.000.0000INFOa7GW0VBLMI

CUSTOMER SUPPLIED EQUIPMENT
Warehouse: RANC

RADIO AND ANTENNA
11 N 0.000.0000INFOa7GW0VDNLA
*******FRONT OF VEHICLE*******
Warehouse: RANC
11 Y 254.00254.0000C3900Ua7GW0VED6A
CODE3 100W SPEAKER W UNIV BRKT
Warehouse: RANC
05/21/26
09:32:59 AM
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a7GW0VED6A
9 800-845-0045Telephone:

DANA SAFETY SUPPLY, INC
500 S EDWARDIA DR
GREENSBORO, NC 27409

CATHEDRAL CITY POLICE DEPARTMENT
68700 A VENIDA LALO GUERRERO
CATHEDRAL CITY, CA 92234
United States
(For Pickup - RANC)

RANCHO WAREHOUSE
11699 6th Street
Rancho Cucamonga, CA 91730
Sales Quote
629241-A
CATHCPDCustomer No.

Sales Quote No.

Ship ToBill To
Contact:

Telephone: Telephone:

Contact:
760-202-2413

MOUNT BEHIND GRILLE
22 Y 32.0016.0000RM-LT-DS-4a7GW0UHW19
RUSHMFG 4" DARK SMOKE TINT STRIPS
Warehouse: RANC
11 Y 37.0037.0000MISCa7GW0UHW1N

INNOV ATIVE (INV-BRKT-GRILL-TRVS) GRILL BRACKETS
Warehouse: RANC
11 Y 440.00440.0000ETSA461HPP-EXTa7GW0VYVFL
SOI NERGY 400 SERIES HANDHELD REMOTE
Warehouse: RANC
11 Y 128.00128.00007160-1397a7GX0V9HT9
GJ 2018+ Chevy Traverse/GMC Acadia Vehicle Base
Warehouse: RANC
05/21/26
09:32:59 AM
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a7GX0V9HT9
10 800-845-0045Telephone:

DANA SAFETY SUPPLY, INC
500 S EDWARDIA DR
GREENSBORO, NC 27409

CATHEDRAL CITY POLICE DEPARTMENT
68700 A VENIDA LALO GUERRERO
CATHEDRAL CITY, CA 92234
United States
(For Pickup - RANC)

RANCHO WAREHOUSE
11699 6th Street
Rancho Cucamonga, CA 91730
Sales Quote
629241-A
CATHCPDCustomer No.

Sales Quote No.

Ship ToBill To
Contact:

Telephone: Telephone:

Contact:
760-202-2413

GJ SHORT SUPPORT BRACE FOR DS & SM SERIES BASES
Warehouse: RANC
FORMERL Y PN# LAC-02 W/U-DS
**********************************************
11 Y 57.0057.0000DS-LOWER-13a7GX0Z31WT
GJ 13 LOWER POLE BASE (BOTTOM OF DS-P0LE)
Warehouse: RANC
11 Y 78.0078.00007160-0178a7GX0V9G7J
GJ 7 INCH CENTER UPPER POLE ASSEMBLY
Warehouse: RANC
11 N 0.000.0000INFOa7GW0VLK58
*******SIDE OF VEHICLE*******
Warehouse: RANC
22 Y 378.00189.0000EMPS2STS5RBWa7GW0VLGUB
SOI, MPWR FASCIA, 4", STM, BLK HSG, RED/BLU/WHT
Warehouse: RANC
MOUNT IN REAR 1/4 WINDOW.
22 Y 42.0021.0000PMP2WSSSBa7GW0VL99Q
SOI 4" MPOWER SINGLE WINDOW SHROUD-BLACK
Warehouse: RANC
05/21/26
09:32:59 AM
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a7GW0VL99Q
11 800-845-0045Telephone:

DANA SAFETY SUPPLY, INC
500 S EDWARDIA DR
GREENSBORO, NC 27409

CATHEDRAL CITY POLICE DEPARTMENT
68700 A VENIDA LALO GUERRERO
CATHEDRAL CITY, CA 92234
United States
(For Pickup - RANC)

RANCHO WAREHOUSE
11699 6th Street
Rancho Cucamonga, CA 91730
Sales Quote
629241-A
CATHCPDCustomer No.

Sales Quote No.

Ship ToBill To
Contact:

Telephone: Telephone:

Contact:
760-202-2413

MOUNT IN REAR HA TCH, INERRIOR
11 Y 437.00437.0000INV-BOX-MK-TRVS-SLDa7GW15S7UG

INNOV ATIVE BOX MOUNTING KIT, TRA VERSE, POWDER

COA TED
Warehouse: RANC

BOX, ACCESSORY, MOUNTING KIT, TRA VERSE, POWDER COA TED ***W/SLIDES ALLOWING ACCESS TO SPARE TIRE**
11 Y 1,092.001,092.0000INV-BOX-SD-382110a7GW15S224

INV BOX SINGLE DRAWER, PADDLE LA TCHES
Warehouse: RANC
05/21/26
09:32:59 AM
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a7GW15S224
12 800-845-0045Telephone:

DANA SAFETY SUPPLY, INC
500 S EDWARDIA DR
GREENSBORO, NC 27409

CATHEDRAL CITY POLICE DEPARTMENT
68700 A VENIDA LALO GUERRERO
CATHEDRAL CITY, CA 92234
United States
(For Pickup - RANC)

RANCHO WAREHOUSE
11699 6th Street
Rancho Cucamonga, CA 91730
Sales Quote
629241-A
CATHCPDCustomer No.

Sales Quote No.

Ship ToBill To
Contact:

Telephone: Telephone:

Contact:
760-202-2413

JON ENOS
Payment MethodCustomer PO NumberF.O.B.Ship Via
NET30UPS GROUND FREIGHT QUOTED FREIGHT
Entered By Resale Number Ordered BySalesperson
NA TE HANLEYSteve Nugent- Rancho CASteve Nugent
Order
Quantity
Extended
Price
Unit
PriceItem Number / DescriptionTaxApprove
Quantity
Quote Date
05/18/26
E-mail: E-mail: [email protected]
11 Y 251.00251.0000MISCa7GW15S1E9
INV (INV-BOX-TR-21-ENGRV)
Warehouse: RANC
BOX, ACCESSORY, TOP RAIL, 21", POL Y
COA TED. CONTAINS CUSTOM LASER
ENGRA VING ON TOP RAIL. PLEASE SPECIFY
ENGRA VING A T TIME OF ORDER.****
LASER "CA T CITY PD" ****
11 Y 450.00450.0000TINTa7GW0VWBFJ
Vehicle Window Tint Per Customers Specs
Warehouse: RANC
WHICH WINDOWS - ALL OTHER WINDOWS 20%
FRONT STRIP YES 5%
11 N 0.000.0000INFOa7GW0VXH28
*******CIRCUIT PROTECTION*******
Warehouse: RANC
11 Y 140.00140.00006001-3001Ba7GW0UHXL7
CE TH Series Time Delay Relay, 200 A
Warehouse: RANC
11 Y 39.0039.00005026Ba7GW0UHXLN
BlueSea 12 Circuit Fuse Block w/ Ground Bus and Cover
Warehouse: RANC
11 Y 5.005.00008020-1034Ba7GY0K3REN

EGIS CUSTOM LABEL SET, CALIFORNIA SPEC
Warehouse: RANC
05/21/26
09:32:59 AM
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a7GY0K3REN
13 800-845-0045Telephone:

DANA SAFETY SUPPLY, INC
500 S EDWARDIA DR
GREENSBORO, NC 27409

CATHEDRAL CITY POLICE DEPARTMENT
68700 A VENIDA LALO GUERRERO
CATHEDRAL CITY, CA 92234
United States
(For Pickup - RANC)

RANCHO WAREHOUSE
11699 6th Street
Rancho Cucamonga, CA 91730
Sales Quote
629241-A
CATHCPDCustomer No.

Sales Quote No.

Ship ToBill To
Contact:

Telephone: Telephone:

Contact:
760-202-2413

Warehouse: RANC

LOOM, WIRE, HARDW ARE, CONNECTORS, ETC
************************************************
11 Y 2,990.002,990.0000INSTALLa7GW0UHXMY

DSS INSTALLA TION OF EQUIPMENT
Warehouse: RANC
Approved By:

Approve All Items & Quantities
Quote Good for 30 Days
05/21/26
09:32:59 AM
6Page No.

Print Time
Print Date
Order Total
Sales Tax8.750 %
Freight
Subtotal
10,899.15
864.15
159.00
9,876.00
a7GW0UHXMY
By accepting this quote/order, the customer expressly acknowledges and agrees that to the extent not expressly prohibited by law, and except to the extent arising from or relating to the gross negligence or willful misconduct of DSS, its agents or its employees, DSS shall not be liable to the customer, or any third party for any damage to the vehicle/products resulting from or arising out of any ACTS OF GOD, including without limitation, any fires, floods, earthquakes, tornados, hail or similar weather events. 14 No warranty on wrap materials. 1yr warranty on wrap application.

Some restrictions apply and are up to the discretion of So Cal Branding.

Page 1 of 1 ends

SoCal Grafix
68435 Ramon Rd
Cathedral City, CA 92234 US
+17609802009
[email protected]

Estimate

ADDRESS
Cathedral City Police Department

SHIP TO
Cathedral City Police Department
ESTIMATE 1203
DATE 07/06/2026

DATE ACTIVITY DESCRIPTION QTY RATE AMOUNT
WRAP MATERIAL 3M. 3M printed and laminated wrap
material reading cathedral city police
with flag on both sides across door all
the way to tire
1 400.00 400.00T
Installation Installation of wrap on doors of a 2026
Chevy Traverse
1 275.00 275.00
decals Grey Decals reading pride in service
on both sides and police on the back.
unit number on the front and back.

Unit number on top roof of vehicle.
1 150.00 150.00T
Installation installation of grey vinyl on vehicle 1 175.00 175.00 Window Perf window perf on back window. 2 side
windows
artwork will be provided
1 275.00 275.00T
ceramic coating ceramic coating protection 1 200.00 200.00T SUBTOTAL 1,475.00
TAX 94.81
TOTAL $1,569.81
Accepted By
Accepted Date
15 A quote for your consideration.

To retrieve this eQuote online, log in to your
Dell Premier Page
and search for
your eQuote number under “Quotes” in the top menu bar.

Quote No.:

Quote No.:
3000204652540.1
3000204652540.1
Total
Total
(USD):
(USD):
$2,805.00
$2,805.00
eQuote Name:
eQuote Name:

PD MDC
eQuote Creator:
eQuote Creator:
[email protected]
Quoted On:

Quoted On:

Jul. 08, 2026
Expires By:

Expires By:

Aug. 07, 2026
Company Name:

Company Name:
-
Customer Number:

Customer Number:
-
Premier Page Name:

Premier Page Name:

City of Cathedral City, California
Contract Name:

Contract Name:

Dell NASPO Computer Equipment PA - California
Contract Code:

Contract Code:

C000001115143
Customer Agreement Number:

Customer Agreement Number:
23026 / 7-23-70-55-01
Billing Address:

-
,
Pricing Summary
Qty
Unit Price
Discounted
Unit Price
Subtotal
Dell Pro Rugged 14 RB14250
1 $2,805.00
$2,805.00
$2,805.00
Subtotal:
$2,805.00
Shipping:
$0.00
Estimated Tax:
$0.00
Total
(USD):
$2,805.00
Product Details
Qty
Unit Price
Subtotal
Dell Pro Rugged 14 RB14250
(210-BNNG)
Order
Code:
rcrc1427134-8983942
1 $2,805.00
$2,805.00
Module
Description
Product Code
SKU
Qty
Base
Dell Pro Rugged, RB14250 XCTO
GPYDR2I
210-BNNG
1 Processor
Intel® Core™ Ultra 5 125U (12 cores, up to 4.3 GHz, 15 W) G3XKLYI
379-BFTK
1 Operating System
Windows 11 Pro
G0VA5W2
619-BBQD
1 16

Base Options
Intel® Core™ Ultra 5 125U (12 MB cache, 12 cores, up to 4.30 GHz, 15W), Intel Integrated Graphics
GYQU6JL
338-CQVF
1 Memory
32GB: 2 X 16 GB, DDR5,5600, Non-ECC, SoDIMM
G9S3VCP
370-BCGD
1 Storage
256 GB, M.2 2230, PCIe NVMe, SSD
GJYG15P
400-BSFM
1 Display
14", Touch, FHD, WVA, Anti-Glare, 1100 nits, Passive Pen Support, IR Cam GM20A8I
391-BJNQ
1 Camera
FHD HDR IR Camera + Microphone, Touch Display, WLAN/WWAN/GPS antenna GC2L3DH
319-BBLD
1 Mobile Broadband
5G - Qualcomm® Snapdragon™ X62 Global 5G (DW5932e), eSIM capable, worldwide
G6ROGF1
556-BFRM
1 Wireless
Intel® Wi-Fi 6E AX211, 2x2, 802.11ax, MU-MIMO, Bluetooth® 5.3 wireless card G7VA614
555-BLHY
1 Driver
Wireless Intel AX211 WLAN Driver
GTE5WBH
555-BLJD
1 Processor Branding
Core Ultra 5 non-vPro CPU Label, Gen 14th
GLU5AMB
389-FJFB
1 Keyboard
English US Rugged RGB Single Point backlit Copilot key keyboard GOH17I9
583-BMJG
1 PalmRest
No Fingerprint reader, no Smartcard reader
G5ETZO7
346-BLBK
1 Power Supply
65W USB-C AC adapter
GA2KE8W
492-BDTG
1 Cable
E4 C5 black Power Cord 1M, US
GCBXP8F
470-BCRH
1 Primary Battery
Primary 3 Cell 53.5 Whr ExpressCharge Capable Battery
GOT1WGX
389-FJFG
1 Second Battery
Battery Airbay Cover
G9WVZI1
325-BFXD
1 Documentation/Disks
Service and Support Guide MUI for DAO (English, French, Multi) G5OATVY
340-DSGW
1 Placemat
Quick setup guide, WW
GYZ5BJ2
340-DRXV
1 Diagnostic CD /
Diskette
No Resource USB Media
G9ZJQB0
430-XYPF
1 Systems
Management
ME Disable - Manageability
G6ZQTFP
631-BBYT
1 Windows AutoPilot
No AutoPilot
GYEO2AP
340-CKSZ
1 Mouse
No Mouse
G8043UZ
570-AADK
1 E-Star
ENERGY STAR Qualified
G6J34SM
387-BBLW
1 EPEAT
EPEAT Gold with Climate+
GT2QXMO
379-BFWZ
1 GPS Solutions (Tied)
Dedicated u-blox NEO-M9N GPS Card
GF3896G
540-BFLV
1 Support Tech Sheet
and Powercord
No UPC/EAN Label
G8WGTYN
389-BCGW
1 Packaging
Mix Shipment, Dell Pro Rugged 14 RB14250
GN80VR1
340-DSCG
1 Transportation
Standard Shipment
G23DIE9
800-BBZV
1 Operating System
Language Pack
English, French, Spanish, Brazilian Portuguese
GALH68M
619-BBPD
1 Right Side
Expansion Port
Additional TBT-4/Type-C port
GGJ8TW2
325-BFXV
1 Rear Expansion Port
Additional rear USB 3.2 Type-A port
GEG0D31
590-TFPW
1 Hard Drive Software
Intel Responsiveness Technologies Driver
G5P76OD
409-BCYL
1 Handle
Rigid Handle
G3MQTPS
750-BBMM
1 FGA Module
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NOFGA
817-BBBB
1 Back Cover
Docking POGO connector with Antenna Passthru, WLAN+WWAN+GPS antenna GBGK7A8
452-BDZH
1 ICPS
No Intel® Connectivity Performance Suite
GJ5LQFG
650-BBBG
1 Standard Hardware
Support Service
3Y ProSupport Next Business Day Onsite Service after remote diagnosis with HW- SW Support
G8NEZV2
713-0309,989-
3449,713-0288,713-
0305
1 Microsoft Office
Activate Your Microsoft 365 For A 30 Day Trial
GC7OFJV
658-BCSB
1 Non-Microsoft
Application Software
Dell Additional Software
G7W5GR4
634-CVYV
1 Protect your new PC
None
GD4K19S
650-AAAM
1 Operating System
Recovery Options
OS-Windows Media Not Included
GLA9OQ1
620-AALW
1 Secured Component
Verification Cloud
No Software included (No SCV)
GG58RQO
658-BFOH
1 17

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This Quote will, if Customer issues a purchase order for the quoted items that is accepted by Supplier, constitute a contract between the entity issuing this Quote (“Supplier”) and the entity to whom this Quote was issued (“Customer”). Unless otherwise stated herein, pricing is valid for Fourteen days from the date of this Quote. All products, pricing, and other information are based on the latest information available and are subject to change for any reason, including but not limited to tariffs imposed by government authorities, shortages in materials or resources, increase in the cost of manufacturing or other factors beyond Supplier’s reasonable control. If such changes occur, pricing may be adjusted or purchase orders may be cancelled by Supplier, even after an order has been placed. Supplier also reserves the right to cancel this Quote and Customer purchase orders arising from pricing errors and/or customer changes to Supplier’s planned delivery date.Taxes and/or freight charges listed on this Quote are only estimates. The final amounts shall be stated on the relevant invoice. Additional freight charges will be applied if Customer requests expedited shipping. Please indicate any tax exemption status on your purchase order and send your tax exemption certificate to
[email protected]
or
[email protected]
, as applicable.

Governing Terms
: This Quote is subject to: (a) a separate written agreement between Customer or Customer’s affiliate and Supplier or a Supplier´s affiliate to the extent that it expressly applies to the products and/or services in this Quote or, to the extent there is no such agreement, to the applicable set of Dell’s Terms of Sale (available at www.dell.com/terms
or
www.dell.com/oemterms
), or for cloud/as-a-Service offerings, the applicable cloud terms of service (identified on the Offer Specific Terms referenced below); and (b) the terms referenced herein (collectively, the “Governing Terms”). Different Governing Terms may apply to different products and services on this Quote. The Governing Terms apply to the exclusion of all terms and conditions incorporated in or referred to in any documentation submitted by Customer to Supplier.

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: Customer’s use of any Supplier software is subject to the license terms accompanying the software, or in the absence of accompanying terms, the applicable terms posted on
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or for certain infrastructure products at
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Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682 18 1
Nate Hanley
From: Christian De La Torre <[email protected]> Sent: Thursday, June 4, 2026 3:16 PM
To: Nate Hanley
Subject: RE:

Attachments: 2026-06-04 15-05.pdf
Here is what I can do on the Z71 Traverse I have available it would be $1,499.70 below invoice. Let me know if that can work or if you have any questions.

Christian De La Torre | Internet Director
La Quinta Chevrolet Cadillac
Cell 760-812-0622
Office 760-771-8200
From: Nate Hanley <[email protected]>
Sent: Thursday, June 4, 2026 1:49 PM
To: Christian De La Torre <[email protected]>
Subject: RE:

CAUTION: This email is from an external source. Be cautious with links, attachments, or QR codes, as it may be a phishing attempt.

Sure send me a quote for it.

Respectfully,

From: Christian De La Torre <[email protected]> Sent: Thursday, June 4, 2026 1:32 PM
To: Nate Hanley <[email protected]>
Subject: Re:

Hi Nate, unfortunately I don’t have that exact build in stock. Would a Z71 possibly work? 19 2
https://www.laquintachevrolet.com/new/Chevrolet/2026-Chevrolet-Traverse-for-sale-La-Quinta-CA- 7c9a40bdac18237d24f414e5d5235938.htm
Christian De La Torre | Internet Director
La Quinta Chevrolet Cadillac
Cell 760-812-0622
Office 760-771-8200

Get Outlook for iOS
From: Nate Hanley <[email protected]>
Sent: Thursday, 04 June 2026 13:16:37
To: Christian De La Torre <[email protected]>
Subject:

CAUTION: This email is from an external source. Be cautious with links, attachments, or QR codes, as it may be a phishing attempt.

Christian,

Can you please provide a quote on a 2026 Chevy Traverse LT AWD, with vinyl wrapped seats in the second row. The color would need to be Black or White.

Respectfully,

20 21

22 Staff Report
City Council
Item No. 4.A
Meeting Date: July 22, 2026
From: Lidia Buelna, Human Resources Specialist
Title: AB 2561 Employee Vacancies and Recruitment and Retention RECOMMENDATION:

To hold a public hearing and receive and file this report.

BACKGROUND:

On September 22, 2024, Governor Newsom signed Assembly Bill 2561 (AB2561) into law, amending the Meyers-Milias-Brown Act (MMBA), and enacting Government Code Section 3502.3. This law requires public agencies to publicly address the status of vacancies and recruitment and retention efforts during a public hearing before their governing board at least once per fiscal year prior to the adoption of the annual budget. During the presentation, the public agency must also identify any changes to policies, procedures, or recruitment activities that may create obstacles in the hiring process.

Additionally, under AB2561, if the number of vacancies meets or exceeds 20% of the total number of authorized full-time positions in a particular bargaining unit, the public agency shall include the following information in its presentation upon request of the recognized employee organization:
The total number of job vacancies within a bargaining unit. The total number of applicants for vacant positions within the bargaining unit. The average number of days to complete the hiring process from when a position is posted.
Opportunities to improve compensation and other working conditions.

Government Code Section 3502.3 also entitles recognized employee organizations, regardless of the vacancy rate, to make a presentation before the governing board during the same public hearing in which the public agency presents its annual vacancy report.

The public hearing was duly published on July 6, 2026.

DISCUSSION:
1 Currently, the City has four (4) bargaining units and one (1) non-represented group – Cathedral City Police Management Association (CCPMA), Cathedral City Police Officers Association (CCPOA), Cathedral City Fire Association (CCFA), the American Federation of State, County and Municipal Employees (AFSCME), and the Non-Represented group.

At the present moment, none of the City’s bargaining units have vacancy rates exceeding 20%. As such, additional reporting is not required for this public hearing.

The table below summarizes current vacancy status by bargaining unit as of July 1, 2026:

Current Vacancy Status by Bargaining Unit – July 1, 2026 Bargaining Unit Budgeted Positions Current Vacancies Vacancy Rate AFSCME 68 4 5.9%
CCPOA 38 5 13.16%
CCPMA 13 1 7.6%
CCFA 47 2 4.3%
Non-Rep* 67 9 13.43%
TOTAL 233 21 9.01%
Current Recruitment and Retention Efforts
Recruitment Initiatives:
Streamlined Application Process: Simplified hiring procedures and reduced processing time for candidates.
Public Service Motivation Messaging: Enhanced communication about the rewards and impact of public service careers.
Enhanced Marketing and Outreach strategies:
oStrategic job posting across multiple platforms.
oIncreased presence at regional career fairs.
oTarget local community outreach programs.
oExpand social media recruitment campaigns.
oEngagement with professional networks and associations.

Retention Strategies:
Career Development Pathways:
oStructured advancement opportunities in Police Department. oCareer progression in Fire Department.
Professional Development Programs: Expanded training opportunities and tuition support for continuing education.
Employee recognition Initiatives: Formal and informal programs to acknowledge exceptional service and performance.
Competitive benefits package: Comprehensive health benefits, retirement planning, and work-life balance support.
Flexible work arrangements: Alternative scheduling options where operationally feasible.
Policy Modernization: Regular review and updates to personnel policies to reflect best practices.
2 These efforts are continuously evaluated for effectiveness, with adjustments based on measurable outcomes and employee feedback.

Next Steps
The City's current recruitment and retention strategies are performing effectively, and no additional corrective measures have been identified at this time.

FISCAL IMPACT:

None
FIVE-YEAR STRATEGIC PLAN:

Goal A – Serve the Community with Pride and Dedication.

ATTACHMENTS:

1. PowerPoint presentation
3 AB 2561 Public Hearing:

City Vacancies and Recruitment and Retention Efforts
July 22, 2026

PRESENTED BY LIDIA BUELNA
4 Overview
AB 2561 Requirements
Current Vacancy Status
Recruitment & Retention
Efforts
5 AB 2561 Requirements
Public agencies must present vacancy
status and recruitment/retention efforts
Presentations must occur at least once
per fiscal year
Employee organizations have the right to
present at the hearing
6 Current Vacancy
Status
By Bargaining Unit
– July 2026
*NON-REP INCLUDES PART-TIME

EMPLOYEES
Vacancy
Rate
Current
Vacancies
Budgeted
Positions
Bargaining
Unit

5.9%468AFSCME

13.16%538CCPOA

7.6%113CCPMA

4.3%247CCFA

13.43%967Non-Rep*

9.01%20233TOTAL
7 Current
Vacant
Positions –
July 2026
Vacant PositionsBargaining Unit
• Building| Permit Technician
• Engineering | Asst Civil Engineer
• PD | Property & Evidence Tech
• FD | Ambulance Operator EMT
AFSCME (4)
• Firefighter Paramedic (2)CCFA (2)
• Police Officer (5)CCPOA (5)
• Police SergeantCCPMA (1)
• Finance| Senior Analyst
• Finance | Fiscal Officer
• Fire | PT Ambulance Operator
• IT | GIS Engineer
• PD | Police Chief
• PD | Senior Analyst
• PD | PT Public Safety Dispatcher (2)
• PL | Associate Planner
Non-Rep (9)
8 Current Recruitment & Retention Efforts
Recruitment Initiatives:
 Continue our Streamline Application Process: Simplified hiring procedures and reduced processing time for candidates.
 Public Service Motivation Messaging: Enhanced
communication about the rewards and impact of public
service careers.
 Enhanced Marketing and Outreach Strategies:
- Strategic job posting across multiple platforms
- Increased presence at regional career fairs
- Target local community outreach programs
- Expand social media recruitment campaigns
- Engagement with professional networks and associations Retention Strategies:
 Career Development Pathways:
- Structured advancement opportunities in Police Department - Career progression in Fire Department
 Professional Development Programs: Expanded training opportunities and tuition support for continuing education.  Employee Recognition Initiatives: Formal and informal programs to acknowledge exceptional service and
performance.
 Competitive Benefits Package: Comprehensive health
benefits, retirement planning, and work-life balance support.  Flexible Work Arrangements: Alternative scheduling options where operationally feasible.
 Policy Modernization: Regular review and updates to
personnel policies to reflect best practices.
9 Next Steps
The City's current recruitment and retention strategies are performing effectively, and no additional corrective measures have been identified at this time.
10 Questions?
11 Staff Report
City Council
Item No. 4.B
Meeting Date: July 22, 2026
From: Patrick Bumstead, Financial Analyst II
Title: CFD 2006-1, IA #23, Formation, Election and Ordinance Public Hearing RECOMMENDATION:

City Council of the City of Cathedral City, acting on behalf of Improvement Area (IA) No. 23 (Forest Lawn) of the City of Cathedral City Community Facilities District (CFD) 2006-1 (law enforcement, police, paramedic, park and general maintenance services), adopt the following:
Resolution of Formation determining the validity of prior proceedings (Resolution 2026-22, Resolution of Intention)
Resolution Calling for a Special Election
Resolution Canvassing the Results of the Special Election Introduce, by title only, the 1 st reading of an Ordinance Authorizing the Levy of a Special Tax
BACKGROUND:

On June 10, 2026, the City Council declared its intention to form Improvement Area No.23 of the City of Cathedral City Community Facilities District No. 2006-1 (law enforcement, fire, paramedic, park maintenance and general maintenance services) (“CFD”) for the purpose of paying for additional law enforcement, fire, paramedic, park and general maintenance services within areas of new development.

DISCUSSION:

A public hearing has been set for July 22, 2026. As directed in the Resolution of Intention, David Taussig & Associates, Inc. prepared the Rate and Method of Apportionment (“RMA”), an analysis of the special tax to allow each property owner or resident, within the proposed district, to understand the annual amount required for payment. 1 New developments are conditioned to join CFD 2006-1 and will join through an annexation process. The annexations will be processed in a timely manner, as new developments go through the approval processes. If formed, this CFD will provide a secure source of funding for the services described above that may not be taken away should there be any State budget cuts. It is proposed this Improvement Area will be formed within the CFD for the Forest Lawn Specific Plan.

Provided there is no majority protest at this public hearing, the City Council may adopt the resolution forming the CFD. A waiver regarding election timelines from the property owner has been received, so an election can be held July 22, 2026, authorizing the levy of a special tax. Should the proposition for the CFD pass with a two-thirds vote from the qualified voters (the landowners) within the CFD, the City Council may have the first reading of an Ordinance levying the special tax.

TABLE 1
Maximum Special Tax for Developed Property
For Fiscal Year 2026-2027
Improvement Area No. 23
Land Use Class Description Maximum Special Tax
1 Residential
$ 682.96 per Equivalent
Dwelling Unit
2 Non-Retail Commercial/Industrial
Property $0.1588 per SF of Floor Area
FISCAL IMPACT:

The proposed project is a Non-Retail Commercial/Industrial property, as identified in Table 1, the rate for Fiscal Year (“FY”) 2026-2027 is $0.1588. The Land Use Class of Residential, per Equivalent Dwelling Unit (“EDU”) special tax is not applicable. This special tax increase (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. 23, Forest Lawn, 12,000 square feet of floor area for new structures (Reception area, Chapel, Restrooms, etc.), will generate annual revenue in the amount of $1,905.60.

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 quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices. 2 ATTACHMENTS:

1. CATHEDRAL CITY CFD 2006-1, IA #23 - RESOLUTION OF FORMATION

2. CATHEDRAL CITY CFD 2006-1, IA #23 - RESOLUTION CALLING A SPECIAL

ELECTION

3. CATHEDRAL CITY CFD 2006-1, IA #23 - RESOLUTION CANVASSING RESULTS

OF THE SPECIAL ELECTION

4. CATHEDRAL CITY CFD 2006-1, IA #23 – ORDINANCE

5. RMA CFD 2006-1, IA #23

6. CFD 2006-1 IA 23 BOUNDARY MAP - RECORDED
3 RESOLUTION NO. 2026-_____

RESOLUTION OF FORMATION OF THE CITY COUNCIL OF THE

CITY OF CATHEDRAL CITY DETERMINING THE VALIDITY OF
PRIOR PROCEEDINGS, ESTABLISHING IMPROVEMENT AREA NO.
23 OF THE CITY OF CATHEDRAL CITY COMMUNITY FACILITIES
DISTRICT NO. 2006-1 (LAW ENFORCEMENT, FIRE, PARAMEDIC,

PARK MAINTENANCE AND GENERAL MAINTENANCE SERVICES)
WHEREAS, the City Council (the “Council”) of the City of Cathedral City, California (the “City”), has heretofore adopted Resolution No. 2026-22 stating its intention to form Improvement Area No. 23 of the City of Cathedral City Community Facilities District No. 2006- 1 (law enforcement, fire, paramedic, park maintenance and general services) (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the “Act”); and WHEREAS, a copy of Resolution No. 2026-22, incorporating a description and map of the proposed boundaries of The District and setting forth the rate and method of apportionment and manner of collection of the special tax to be levied within the District, which will be used to finance a portion of the cost of providing police protection services, fire protection/paramedic services and park maintenance services that are in addition to those provided in the territory within the District prior to the formation of the District and do not supplant services already available within the territory of proposed to be included in the District, is on file with the City Clerk and incorporated herein by reference; and
WHEREAS, Resolution No. 2026-22 set June 10, 2026 as the date of the public hearing on the formation of the District and this Council held the said public hearing as required by law; and
WHEREAS, at said hearing all persons not exempt from the special tax desiring to be heard on all matters pertaining to the formation of the District were heard and a full and fair hearing was held; and
WHEREAS, at said hearing evidence was presented to the Council on said matters before it, and this Council at the conclusion of said hearing is fully advised in the premises;

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

Section 1. Pursuant to Section 53325.1(b) of the Government Code, the Council finds and determines the proceedings prior hereto were valid and in conformity with the requirements of the Act.

Section 2. A community facilities district to be designated “Improvement Area No. 23 of the City of Cathedral City Community Facilities District No. 2006-1 (law enforcement, fire, paramedic, park maintenance and general maintenance services)” is hereby established pursuant to the Act.
4 2
Section 3. The description and map of the boundaries of the District on file in the City Clerk’s office and as described in said Resolution No. 2026-22 and incorporated herein by reference, shall be the boundaries of the District. The map of the proposed boundaries of the District has been recorded in the Office of the County Recorder of Riverside County, California in Book 99 page 70 of the Book of Maps of Assessments and Community Facilities Districts (Instrument Number 2026-0197683).

Section 4. Except where funds are otherwise available, there shall be levied annually in accordance with procedures contained in the Act, a special tax sufficient to finance a portion of the cost of providing police protection, fire protection/paramedic and park maintenance services that are in addition to those provided in the territory within The District prior to the formation of the District and do not supplant services already available within the territory proposed to be included in the District. The rate and method of apportionment of the special tax and manner of collection is described in detail in Exhibit “A” attached hereto and incorporated herein by this reference. The special tax shall be utilized to pay for authorized services.

Section 5. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the Council hereby establishes the following accountability measures pertaining to the levy by the District within the District of the special tax:

A. Such special tax shall be levied for the specific purposes set forth herein.

B. The proceeds of the levy of such special tax shall be applied only to the specific purposes set forth herein.

C. The District shall establish an account or accounts into which the proceeds of such special tax shall be deposited.

D. The City Manager, or his or here designee, acting for and on behalf of the District, shall annually file a report with the Council as required pursuant to Government Code Section 50075.3.

Section 6. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all real property in the District, and this lien shall continue in force and effect until the special tax obligation is canceled in accordance with law or until collection of the tax by the City ceases.

Section 7. The Council finds that the proposed public services are necessary to meet the increased demand put upon the City as a result of the development within the District.

Section 8. The Council finds that there is not an ad valorem property tax currently being levied on property within the proposed the District for the exclusive purpose of financing police, fire, paramedic and park maintenance services.

Section 9. Written protests against the establishment of the District, or against the furnishing of specified services or facilities or the levying of a specified special tax within the 5 3
District, have not been filed by fifty percent (50%) or more of the registered voters or property owners of one-half (1/2) or more of the area of land within the proposed the District.

Section 10. Written protests against the future annexation of the Future Annexation Area, or against the furnishing of specified services or facilities or the levying of a specified special tax within such Future Annexation Area, have not been filed by fifty percent (50%) or more of the registered voters or property owners of one-half (1/2) or more of the area of land within the Future Annexation Area.

Section 11. The Office of the City Manager, 68700 Avenida Lalo Guerrero, Cathedral City, California 92234, (760) 770-0340, or its designee, is designated to be responsible for preparing annually a current roll of special tax levy obligations by assessor’s parcel number and for estimating future special tax levies pursuant to Section 53340.1 of the Government Code.

Section 12. The City Clerk is directed to certify and attest to this Resolution and to take any and all necessary acts to call, hold, canvass and certify an election or elections on the levy of the special tax, and the establishment of the appropriation limit. 6 4
PASSED, APPROVED and ADOPTED this 22nd day of July, 2026 by the following votes:

AYES:

NOES:

RAYMOND GREGORY
MAYOR
ATTEST:

CHRISTINA BURTON

CITY CLERK
APPROVED AS TO FORM:
_____________________________
ERIC S. VAIL

CITY ATTORNEY
REVIEWED:
_____________________________

ANDREW FIRESTINE

CITY MANAGER
7 4
8 EXHIBIT A

RATE AND METHOD OF APPORTIONMENT

OF SPECIAL TAX
9 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 1

RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 23 OF
COMMUNITY FACILITIES DISTRICT NO. 2006-1
(FOREST LAWN)

OF THE CITY OF CATHEDRAL CITY
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 23 (“IA No. 23”) 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 2026-2027, 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. 23, 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 administration of IA No. 23: 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. 23 or any designee thereof of complying with City or IA No. 23 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, IA No. 23 or any designee thereof 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. 23 for any other administrative purposes of IA No. 23, 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.
"CFD Administrator" means an official of the City, or designee thereof, responsible for the annual administration of IA No. 23 as provided herein. 10 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 2
"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 Property" means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued after March 1, 2026 and prior to May 1 of the previous Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the following 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. 23" means Improvement Area No. 23 of CFD No. 2006-1 (Forest Lawn), 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.
"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. 23 that was owned by or irrevocably offered for 11 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 3
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. 23 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. 23 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. 23 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.
"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. 23 shall be classified as Developed Property or Undeveloped Property and shall be subject to Special Taxes in accordance 12 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 4
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 2026-2027 for each Land Use Class is shown below in Table 1.

TABLE 1
Maximum Special Tax for Developed Property
For Fiscal Year 2026-2027
Improvement Area No. 23
Land Use Class Description Maximum Special Tax
1 Residential Property $682.96 per unit
2 Non-Retail
Commercial/Industrial Property
$0.1588 per square foot of Floor
Area
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2027, 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.
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. 13 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 5
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2026-2027 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 Commercial Property, 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 with 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.

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 valorem property taxes; provided, however, that IA No. 23 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. 14 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 6
H. TERM OF SPECIAL TAX
The Council is authorized to levy the Special Tax in perpetuity. 15 RESOLUTION NO. 2026-_____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CATHEDRAL CITY ACTING ON BEHALF OF IMPROVEMENT AREA
NO. 23 OF THE CITY OF CATHEDRAL CITY COMMUNITY
FACILITIES DISTRICT NO. 2006-1 (LAW ENFORCEMENT, FIRE,

PARAMEDIC, PARK MAINTENANCE AND GENERAL

MAINTENANCE SERVICES) CALLING A SPECIAL ELECTION
WHEREAS, the City Council (the “Council”) of the City of Cathedral City, California (the “City”), has heretofore adopted Resolution No. 2026-22 stating its intention to form Improvement Area No. 23 of the City of Cathedral City Community Facilities District No. 2006- 1 (law enforcement, fire, paramedic, park maintenance and general maintenance services) (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the “Act”); and
WHEREAS, a copy of Resolution No. 2026-22, incorporating a description and map of the proposed boundaries of the District and setting forth the rate and method of apportionment and manner of collection of the special tax to be levied within the District, which will be used to finance a portion of the cost of providing police protection, fire protection/paramedic and park maintenance services that are in addition to those provided in the territory within the District prior to the formation of the District and do not supplant services already available within the territory proposed to be included in the District, is on file with the City Clerk and incorporated herein by reference; and
WHEREAS, on July 22, 2026 this Council held a noticed hearing as required by law relative to the proposed formation of the District; and WHEREAS, at said hearing all persons not exempt from the special tax desiring to be heard on all matters pertaining to the formation of the District were heard and a full and fair hearing was held; and
WHEREAS, at said hearing evidence was presented to this Council on said matters before it, and this Council at the conclusion of said hearing was and is fully advised in the premises; and
WHEREAS, this Council adopted its Resolution No. 2026-______ (the “Resolution of Formation”) determining the validity of prior proceedings and establishing the District; and WHEREAS, the proposed special tax to be levied upon property within the District to finance the above referenced public services has not been precluded by protest of the owners of one-half (1/2) or more of the area of land within the District; and WHEREAS, this Council wishes to present to the qualified electors of the District a proposition to levy special taxes on property within the District; 16 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Pursuant to Government Code Section 53353.5, the Council hereby submits to the qualified electors of the District a proposition (the “Proposition”) to levy special taxes on property within the District in accordance with the rate and method specified in the Resolution of Formation. The Proposition is attached as Exhibit “A.” Section 2. A special election is hereby called for the District on the Proposition set forth in Section 1 above.

Section 3. The City Clerk shall hand deliver the ballot to the landowner immediately upon the adoption of this Resolution or shall have mailed the ballot in advance.

Section 4. The date of the special election for the District on the Proposition shall be on July 22, 2026. The voter ballot shall be returned to the City Clerk at 68700 Avenida Lalo Guerrero, Cathedral City, California 92234, no later than 5:30 o’clock p.m. on July 22, 2026.

Section 5. The Council finds and determines that there were no registered voters residing within the territory of proposed District at the time of the protest hearing and ninety (90) days prior thereto.

Section 6. The District shall constitute a single election precinct for the purpose of holding said election.

Section 7. The Council hereby directs that the election be conducted by the City Clerk of the City of Cathedral City, as the elections official. 17 18

PASSED, APPROVED and ADOPTED this 22nd day of July, 2026 by the following votes:

AYES:

NOES:

RAYMOND GREGORY
MAYOR
ATTEST:

CHRISTINA BURTON

CITY CLERK
APPROVED AS TO FORM:
_____________________________
ERIC S. VAIL

CITY ATTORNEY
REVIEWED:
_____________________________

ANDREW FIRESTINE

CITY MANAGER
19 RESOLUTION NO. 2026-_____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CATHEDRAL CITY ACTING ON BEHALF OF IMPROVEMENT AREA
NO. 23 OF THE CITY OF CATHEDRAL CITY COMMUNITY
FACILITIES DISTRICT NO. 2006-1 (LAW ENFORCEMENT, FIRE,

PARAMEDIC, PARK MAINTENANCE AND GENERAL

MAINTENANCE SERVICES) CANVASSING THE RESULTS OF THE

SPECIAL ELECTION HELD WITHIN SAID DISTRICT
WHEREAS, the City Council of the City of Cathedral City, California (the “Council”) has previously conducted proceedings pertaining to the formation of Improvement Area No. 23 of the City of Cathedral City Community Facilities District No. 2006-1 (law enforcement, fire, paramedic, park maintenance and general maintenance services) (the “District”), the rate and method of apportionment of a special tax to finance a portion of the cost of providing certain public services, and the calling of a special election in regard to the foregoing; and WHEREAS, on July 22, 2026 a special election was held within the District regarding the rate and method of apportionment of the proposed special tax; and WHEREAS, at such special election the proposal for the rate and method of apportionment and manner of collection of the special tax for the District was approved by the qualified electors of the District;

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

Section 1. It is hereby determined that the election conducted within the District was duly conducted.

Section 2. The Council, acting as the legislative body of the District, is authorized to levy the special tax on behalf of District, as specified in Resolution No. 2026- __ adopted by the City Council on July 22, 2026.
20 PASSED, APPROVED and ADOPTED this 22nd day of July, 2026 by the following votes:

AYES:

NOES:

RAYMOND GREGORY
MAYOR
ATTEST:

CHRISTINA BURTON

CITY CLERK
APPROVED AS TO FORM:
_____________________________
ERIC S. VAIL

CITY ATTORNEY
REVIEWED:
_____________________________

ANDREW FIRESTINE

CITY MANAGER
21 ORDINANCE NO. _____

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CATHEDRAL CITY ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2006-1 (LAW

ENFORCEMENT, FIRE, PARAMEDIC, PARK MAINTENANCE AND

GENERAL MAINTENANCE SERVICES) OF THE CITY OF

CATHEDRAL CITY AUTHORIZING THE LEVY OF A SPECIAL TAX

WITHIN SAID DISTRICT
WHEREAS, on June 10, 2026, the City Council (the “Council”) of the City of Cathedral City, California (the “City”) adopted Resolution No. 2026-22 stating its intention to form Improvement Area No. 23 of the City of Cathedral City Community Facilities District No. 2006- 1 (law enforcement, fire, paramedic, park maintenance and general maintenance services) (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the “Act”); and
WHEREAS, notice was published as required by law relative to the intention of the Council to form the district; and
WHEREAS, on July 22, 2026, this Council held a noticed public hearing as required by law relative to the determination to proceed with the formation of the district and the rate and method of apportionment and manner of collection of the special tax to be levied within the District to finance certain public services; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the district were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2026- __ (the “Resolution of Formation”) determining the validity of prior proceedings relative to the formation of the district and establishing the district; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2026- __ which called an election within the district for July 22, 2026, on the proposition of levying a special tax; and
WHEREAS, on July 22, 2026, an election was held within the district in which the eligible electors approved by more than two-thirds vote the proposition of levying a special tax.

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

Section 1. A special tax is levied within the boundaries of the district pursuant to the formula set forth in Exhibit “A” attached hereto and incorporated by reference in an amount necessary to finance a portion of the cost of providing police protection, fire 22 protection/paramedic and park maintenance services that are in addition to those provided in the territory within the district prior to the formation of the district.

Section 2. This legislative body is hereby further authorized to provide, by resolution adopted as provided in Section 53340 of the Act, for the levy of the special tax in the then current tax year or future tax years, except that the special tax rates to be levied shall not exceed the maximum rates set forth in Exhibit “A”.

Section 3. All the collections of the special tax shall be used as provided for in the Act and the Resolution of Formation.

Section 4. The above authorized special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes.

Section 5. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the Council Members voting for and against the ordinance.

Section 6. This ordinance relating to the levy of the special tax takes effect and shall be in force from and after 30 days from the date of final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor, and the Treasurer-Tax Collector of Riverside County.
23 24

PASSED, APPROVED and ADOPTED this 22nd day of July, 2026 by the following votes:

AYES:

NOES:

RAYMOND GREGORY
MAYOR
ATTEST:

CHRISTINA BURTON

CITY CLERK
APPROVED AS TO FORM:
_____________________________
ERIC S. VAIL

CITY ATTORNEY
REVIEWED:
_____________________________

ANDREW FIRESTINE

CITY MANAGER
25 26

EXHIBIT A

RATE AND METHOD OF APPORTIONMENT
27 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 1

RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 23 OF
COMMUNITY FACILITIES DISTRICT NO. 2006-1
(FOREST LAWN)

OF THE CITY OF CATHEDRAL CITY

A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 23 (“IA No. 23”) 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 2026-2027, 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. 23, 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 administration of IA No. 23 : 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. 23 or any designee thereof of complying with City or IA No. 23 disclosure requirements; the costs associated with re sponding to public inquiries regarding the Special Taxes; the costs of the City, IA No. 23 or any designee thereof 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. 23 for any other administrative purposes of IA No. 23, 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.

"CFD Administrator" means an official of the City, or designee thereof, responsible for the annual administration of IA No. 23 as provided herein.

28 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 2

"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 t he 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 Property" means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued after March 1, 2026 and prior to May 1 of the previous Fiscal Year.

"Fiscal Year" means the period starting July 1 and ending on the following 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. 23" means Improvement Area No. 23 of CFD No. 2006-1 (Forest Lawn), 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.

"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. 23 that was owned by or irrevocably offered for 29 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 3

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. 23 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. 23 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. Howeve r, 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 taxe d 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. 23 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.

"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. 23 shall be classified as Developed Property or Undeveloped Property and shall be subject to Special Taxes in accordance 30 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 4

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 2026-2027 for each Land Use Class is shown below in Table 1.

TABLE 1
Maximum Special Tax for Developed Property
For Fiscal Year 2026-2027
Improvement Area No. 23

Land Use Class Description Maximum Special Tax
1 Residential Property $682.96 per unit
2 Non-Retail
Commercial/Industrial Property
$0.1588 per square foot of Floor
Area

b. Increase in the Maximum Special Tax

On each July 1, commencing on July 1, 2027, 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.

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. 31 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 5

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

Commencing with Fiscal Year 2026-2027 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 Commercial Property, 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 with 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 t o 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, pro vided 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.

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 valorem property taxes; provided, however, that IA No. 23 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.

32 City of Cathedral City May 20, 2026
IA No. 23 of CFD No. 2006-1 (Forest Lawn) Page 6

H. TERM OF SPECIAL TAX

The Council is authorized to levy the Special Tax in perpetuity.

33 SHEET 1 OF 1
DESERT SHADOWS Dp
LEGEND Proposed Boundaries of Improvement Area No. 23 of City of Cathedral City Community Facilities District No. 2006-1 Assessor Parcel Line

MIRA VISTA DR ALAMEDA WAY BUENO TERRA CORDOBA WAY
DESERT SHADOws DR

DEL LAGO WAY

MIRA VISTA DR

RAMON MEMORIAL

ALFALFA DRIVE
PROPOSED BOUNDARIES OF IMPROVEMENT AREA NO. 23 OF CITY OF CATHEDRAL CITY COMMUNITY FACILITIES DISTRICT NO. 2006-1 Prepored by DTA
ROAD
Assessor Parcels within Improvement Area No. 23: 673-020-033 673-020-009 DRIVE
CIRCLE

DRIVE VALL DA
(FOREST LAWN) COUNTY OF RIVERSIDE STATE OF CALIFORNIA
Reference is hereby made to the Assessor maps of the County of Riverside for a description of the lines and dimensions of each lot and parcel. (1) Filed in the office of the City Clerk of the City of Cathedral City this Q_ day of_dune Christina Burton, City Clerk of Cathedral City (2) I hereby certify that the within map showing the proposed boundaries of Improvement Area No. 23 of City of Cathedral City Community Facilities District No. 2006-1 (Forest Lawn), Riverside County, State of California, was approved by the City Council at a regular meeting thereof, held on this (0_ day of June , 2026, by its Resolution No. 2026-22 Christina Burton, City Clerk of Cathedral City (3) Filed this 2h day ofUne By
2026, at the hour of 8:00 o'clock Am, in Book of Maps of Assessment and Community Facilities Districts at page 70 and as Instrument No. 202-Q197683 in the office of the County Recorder of Riverside County, State of California. Peter Adana Assessor-County Clerk-Recorder of Riverside County 2026.

FeeF 6 Deputy
34 Staff Report
City Council
Item No. 5.A
Meeting Date: July 22, 2026
From: Erick Becerril, Economic Development Manager
Title: Adopt A Resolution Authorizing the City Manager and Financial Services Director to act as the Official Designees for the Proposition 64 Public Health and Safety Grant Program
RECOMMENDATION:

To adopt a Resolution identifying the City Manager and Financial Services Director to act as the official designees to accept the grant from the Proposition 64 Public Health and Safety Grant Program and authorize the City Manager and Financial Services Director to execute any and all documents related to the grant.

BACKGROUND:

In February 2026, the Board of State and Community Corrections (BSCC) released the Proposition 64 Cohort 4 Request for Proposals making $125 million available to California cities and counties to assist with law enforcement, fire protection, or other local programs addressing public health and safety associated with the implementation of the Control, Regulate and Tax Adult Use of Marijuana Act. Successful applicants are under agreement with the BSCC from July 1, 2026, to December 31, 2031, which includes five years for service delivery and an additional six months to complete evaluation requirements. The application period closed March 30, 2026. Cathedral City submitted an application prior to the deadline requesting $4,500,000 in grant funding.

On June 25, 2026 the BSCC Board approved the City’s application for $4,500,000 in grant funding.

DISCUSSION:

The City of Cathedral City submitted a comprehensive, multi-department application to the Proposition 64 Public Safety and Enforcement program that addresses the significant public safety, public health, youth protection, and environmental impacts generated by one of the largest cannabis industry clusters in California. The departments participating in the development of the grant application included the Police Department, Fire Department, Finance Department, and Code Compliance and Economic Development divisions. 1 With more than 60 licensed cannabis businesses, and illicit market activity, the City faces escalating challenges including hazardous materials incidents, illegal operations, odor impacts, youth exposure risks, and high regulatory demand. Between 2021 and 2025, Cathedral City Fire & EMS responded to 38 cannabis-related emergencies, including three hazmat events requiring multi-agency intervention, and conducted 727 cannabis inspections.

The Cathedral City Police Department (CCPD) has investigated 336 cannabis-related crimes in the past 3 years. Odor complaints increased to 500 in a six-month period between May and November in 2025 and are still ongoing, with 67% of those complaints concentrated near residential areas. CCPD continues to uncover unlicensed grows, unsafe extraction sites, and illegal sales operations that exploit the scale of the legal market.

Cathedral City’s plan to address the illicit market consists of a four-pronged approach:

1. Public Safety & Enforcement
oHazardous Materials Quick Response Vehicle (QRV) and associated hazmat supplies, PPE, training, and equipment to provide rapid, local response to cannabis-related chemical hazards
oMobile electronic citation system (Dataticket printers + iPads) to modernize cannabis enforcement, reduce errors, and allow inspectors to access licensing data in real time
oHigh-end detective computers to support digital investigations into illegal cannabis sales, diversion, and unlicensed operations
oCitywide surveillance cameras and two additional drones to deter illegal cannabis use and sales and support investigations into illicit operations oA tactical vehicle and associated tactical team PPE to safely intercede in high- risk illicit facilities
oIncreased personnel overtime and one dedicated temporary Code Compliance inspector to expand cannabis enforcement capacity

2. Public Health
oPortable gas detection monitors to promote safe response to extraction and cultivation facilities
oEnvironmental monitoring network of three weather stations to track odor dispersion, identify likely sources, and support enforcement oEnvirosuite modeling tools to analyze odor patterns, backward trajectories, and environmental conditions

3. Youth Development/Prevention
oCameras throughout the City to prevent cannabis use and sales in youth-serving areas
oEnforcement technology and proactive inspections to reduce illegal cannabis activity near youth recreation spaces
oSchool engagement, education, and interventions by CCPD’s School Resource Officers will also help prevent underage youth cannabis use or misuse.

4. Environmental Impacts
oESRI GeoEvent Server + GNSS receivers to map cannabis sites, track environmental data, and support compliance verification (also enforcement) oOdor complaint reporting system integrated with weather and GIS data to identify patterns and validate community concerns
As part of the grant requirements, a Resolution from the City Council is required before 2 contract execution. As part of the Resolution, delegated signing authority must be granted.

Staff recommends granting this signing authority to the City Manager and Director of Financial Services to accept the grant and execute any necessary documents.

FISCAL IMPACT:

The City will receive $4,500,000 in grant funding from the State of California, BSCC Corrections Planning and Grant Programs (CPGP) Division.

FISCAL

YEAR DESCRIPTION

GENERAL
LEDGER

ACCOUNT
CODES

PROJECT
CODE AMOUNT ONE TIME or

ONGOING
2026-2027 Prop 64 Grant
Revenue
249-900-910-
911-6700-6731 G0XXXX $4,500,000 One Time
2026-2027 Prop 64 Grant
Expense
249-900-910-
911-8XXX-8XXX G0XXXX $4.500,000 One Time
FIVE-YEAR STRATEGIC PLAN:

Goal E-2: Continue to explore and utilize technology to promote public safety.

Goal E-3: Continue Police, Fire, and Expand Code Compliance engagement with the community.

Goal E-6: Implement community engagement and public education initiatives to increase awareness regarding public safety programs, services, and results of proactive community policing efforts.

Goal E-10: Keep the City Council apprised of changes to the Code Enforcement program.

Goal F-10: Review and update, as needed, our ordinances, policies, and practices regarding cannabis.

ATTACHMENTS:

1. Attachment: Resolution 2026-XX

2. Award Letter

3. Prop 64 Budget Attachment

4. Recommendation Email

5. Awardee Email
3 4928-1520-4539 v2
RESOLUTION NO. 2026 -

A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF CATHEDRAL

CITY, CALIFORNIA, AUTHORIZING THE CITY MANAGER AND THE

FINANCIAL SERVICES DIRECTOR TO ACT AS THE OFFICIAL DESIGNEES FOR THE 2026 PROPOSITION 64 PUBLIC HEALTH & SAFETY GRANT PROGRAM.

WHEREAS, Cathedral City applied for the 2026 Proposition 64 Public Health & Safety Grant Program to support Cathedral City’s Proposition 64 Public Safety and Enforcement Program; and
WHEREAS, the City Council intends to accept and enter into a grant agreement regarding a grant from the State of California, Board of State and Community Corrections (“BSCC”) Corrections Planning and Grant Programs (“CPGP”) Division in the amount of $4,500,000 to address the significant public safety, public health, youth protection, and environmental impacts (“BSCC Grant”); and
WHEREAS, the City Council desires to assign staff as Official Designees to enter into the above-referenced grant agreement with State of California, Board of State and Community Corrections (“BSCC”) Corrections Planning and Grant Programs (“CPGP”) Division for the 2026 Proposition 64 Public Health & Safety Grant Program and authorize all amendments.

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

1. The above recitals are true and correct and incorporated herein by this reference.

2. The grant funds provided under the BSCC Grant shall not supplant, replace, or substitute for funds that would otherwise be available or appropriated for the same purpose;

3. Upon execution of the BSCC Grant agreement, the City agrees to abide by all terms and conditions of the BSCC Grant agreement, including all exhibits, attachments, and documents incorporated by reference (“Grant Agreement”).

4. The City Manager and the Financial Services Director are hereby authorized to act as the Official Designees to execute the Grant Agreement and amendments for the 2026 Proposition 64 Public Health & Safety Grant Program between July 1, 2026 to December 31, 2031, including all exhibits, attachments, and documents incorporated by reference.

PASSED, APPROVED, AND ADOPTED this 22nd day of July 2026. ___________________________
4 Raymond Gregory, Mayor
ATTEST:
____________________________
Christina Burton, City Clerk
APPROVED AS TO FORM:
____________________________
Eric S. Vail. City Attorney
I, CHRISTINA BURTON, CITY CLERK of the City of Cathedral City, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Cathedral City held on the 22nd day of July 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Christina Burton, City Clerk
5 Board of State and Community Corrections
Proposition 64 Public Health & Safety Grant Program – Cohort 4

Subject: Confirmation of Cohort 4 Grant Award – Cathedral City, CA

On behalf of the Board of State and Community Corrections (BSCC) and the Proposition 64 Public Health & Safety Grant Program, congratulations Cathedral City, California, on your Cohort 4 grant award. The BSCC Board unanimously approved the funding recommendations at its June 25, 2026 meeting, including your jurisdiction’s proposal.

This letter serves as formal confirmation of your award and outlines key next steps related to the Grant Agreement.

Grant Agreement Requirements
Standard Agreement: BSCC will email the Agreement to the Authorized Officer listed in your application.

 Governing Board Resolution: Required prior to contract execution and must include:

 Delegated signing authority

 Non -supplantation language

 Agreement to all contract terms

NGO Subcontracts:

If partnering with an NGO, submit Appendix K – Criteria for NGOs Receiving Prop 64 Funds once a subcontractor is selected.

Prior Prop 64 Awards: Jurisdictions with previous awards may be asked for documentation distinguishing Cohort 4 activities from earlier cohorts.

Orientation

 Orientation dates are forthcoming. The mandatory virtual Grantee Orientation will cover:

 Grant administration

6  Fiscal requirements and invoicing

 Quarterly reporting and evaluation

 The Project Director and Day -to-Day Program Contact must attend all sessions.

Evaluation Requirements
All grantees must develop a Local Evaluation Plan (LEP) and Project Logic Model.

Guidance will be provided during Orientation and a dedicated LEP Webinar. LEPs and Logic Models are typically due 60 days after the Webinar.

Budget Requirements
BSCC staff will review your budget narrative to ensure all costs are allowable.

Pre-approval is required for:

 Fixed- asset purchases over $3,500

 Youth incentives, food/beverage, or similar items under PPA 3

Your application’s budget table will serve as the basis for your contract amount and reimbursement invoices.

Tony Knapp
7/1/2026
7 A. Grant Funds for
PPA 1: Public
Safety/Enforcement
B. Grant Funds for
PPA 2, 3, and/or 4
Total Requested
Grant Funds
(A+B)
$1,836,624 $0 $1,836,624
$372,860 $0 $372,860
$900,740 $15,000 $915,740
$0 $0 $0
$946,897 $0 $946,897
$33,950 $3,324 $37,274
$390,605
$4,091,071 $18,324 $4,500,000
A. Grant Funds for
PPA 1: Public
Safety/Enforcement
B. Grant Funds for
PPA 2, 3, and/or 4
Total Requested
Grant Funds
(A+B)
$688,910 $0 $688,910
$613,083 $0 $613,083
$174,105 $0 $174,105
$263,128 $0 $263,128
$97,398 $0 $97,398
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
Percentage of Grant Funds Dedicated to PPA 1: Public Safety/Enforcement (excludes amount budgeted for Indirect Costs) 90.91%
Budget Category

6. Other (Travel, Training, etc.)

1. Salaries and Benefits

2. Services and Supplies
TOTAL
Police Officer
Police Sergeant
Analyst I
Fire Inspector
1a. Salaries and Benefits
Overtime hours for 1 Fire Inspector with annual increases 7/1/26-6/30/31 Position Title
Code Compliance Officer II

4. Non-Governmental Organization (NGO) Subcontracts

5. Equipment/Fixed Assets
$390,6057. Indirect Costs (For PPAs 1 through 4)

3. Professional Services or Public Agency Subcontracts
City of Cathedral CityName of City or County Applicant:
(Show as either % FTE or Hourly Rate) & Benefits
1 FTE with Benefits 7/1/26-6/30/31
Overtime hours for 4 each Police Officers with annual increases 7/1/26-6/30/31 Overtime hours for 1 Police Sergeant with annual increases 7/1/26-6/30/31 Overtime hours for 1 Analyst I from the Fire Department with annual increases 2026 Proposition 64 Public Health & Safety Grant Program - Proposal Budget and Budget Narrative Grant Term: July 1, 2026 through December 31, 2031
Note: Budget Categories 1 - 7 will auto-populate based on the information entered in the sections below.

Do not alter or recreate this budget template. Applicants that do not use the BSCC Budget Template will be disqualified. 8 $0 $0 $0
$1,836,624 $0 $1,836,624
A. Grant Funds for
PPA 1: Public
Safety/Enforcement
B. Grant Funds for
PPA 2, 3, and/or 4
Total Requested
Grant Funds
(A+B)
$47,624 $0 $47,624
$21,300 $0 $21,300
$8,000 $0 $8,000
$204,075 $0 $204,075
$91,861 $0 $91,861
$0 $0 $0
$0 $0 $0
$0 $0 $0
$372,860 $0 $372,860
A. Grant Funds for
PPA 1: Public
Safety/Enforcement
B. Grant Funds for
PPA 2, 3, and/or 4
Total Requested
Grant Funds
(A+B)
$120,000 $0 $120,000
$173,020 $0 $173,020
Code Compliance Officer II will bea new Temporary grant-dedicated FTE used as a Cannabis inspector for all Cannabis code compliance inspections including semi-annual routine inspections, complaint investigations, and ad- hoc or random inspections. This staff member will assist in overseeing the implementation of new code compliance technologies. Police Officers and Police Sergeant will have overtime hours every month during the duration of the project for shoulder tap operations or other additional cannabis enforcement activities. Analyst I will perform data collection and evaluation activities across all departments and will work on grant reporting via overtime hours.

Fire Inspector will use overtime hours for hazmat training and for cannabis specific inspections.

The iPads and mobile printers will be used as the hardware for mobile citations for the Code Compliance Department. Dispatch Monitors are monitor screens for the dispatchers for CCPD to be able to view surveillance footage particularly at youth-serving areas. The ESRI GeoEvent Server is a cloud-based server service necessary for mapping and environmental monitoring/modeling. Hazmat supplies include PPE, reagents, tools small equipment, and other supplies necessary for the inital outfit of the hazmat team and its Quick Response Vehicle to be used for site stabilization and environmental mitigation primarily at illicit cannabis businesses or when legal businesses illegally handle wastes.. Drones with supplies will be used by CCPD for targeted surveillance, searches, and investigations.

Dock ($33,174), Thermal ($10,705), Avata 2 ($2,038), 4D Battery ($10,000), Propellers ($4,000), RC Plus 2 Enterprise ($8,040), RTK 3 Relay fixed deployment TOTAL
Digital Forensic Device tools
iPads ($2,500), Dispatch Monitors ($1,590), Mobile Printers ($20,000) Description of Services or
Supplies
2a. Services and Supplies
Calculation for Expenditure
2b. Services and Supplies Narrative: Provide a brief description for each item that explains how it will be used toward fulfilling grant objectives. 1b. Salaries and Benefits Narrative: Provide a brief description for each position that addresses their role on the grant project. 3a. Professional Services or Public Agency Subcontracts GNSS
$7,100/year x 3 years
Drones with Supplies
Five years of subscriptions for Cellebrite ($126,455), Magnet Forensics ($46,564) Calculation for Expenditure
Code Compliance Consultant Subcontract for odor control plan reviews and monitoring Description of Professional
Service(s)
$4,000 each x 2
TOTAL
Devices and Electronics
ESRI GeoEvent Server
Hazmat Supplies PPE, supplies, and equipment to outfit the hazmat team (rates and quantities vary) 9 $515,000 $0 $515,000
$42,720 $0 $42,720
$50,000 $0 $50,000
$0 $15,000 $15,000
$0 $0 $0
$0 $0 $0
$900,740 $15,000 $915,740
A. Grant Funds for
PPA 1: Public
Safety/Enforcement
B. Grant Funds for
PPA 2, 3, and/or 4
Total Requested
Grant Funds
(A+B)
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
The Code Compliance Consultant will be contracted to review, process, and manage the new Odor Control Plans that are a requirement of continued licensing with the City. The Digistal Forensic Device Tools will be used to collect evidence from cell phones, tablets, computers, etc, in the course of cannabis-related crime investigations. The Flock Safety contract will be for 20 cameras throughout the community and supporting software to run surveillance to uncover or investigate cannabis-related crimes. The Mobile Citation Technology items are the software contracts that will enable the mobile citation and field code access for the code compliance mobile citation program. The legal fund contribution is to fund legal costs of cannabis enforcement in a fund managed by code enforcement. The abatement fund is also managed by code enforcement and is used for site stabilization and mitigation in cannabis-related environmental or health hazard conditions.

No NGO subcontracts will be a part of this project.

Description of Subcontracts Calculation for Expenditure Mobile Citation Technology Dual apps 1 year fees (set up $24,000, Licenses $7,200, Maintenance/Support $11,520)
Legal Fund Contribution to stablize cannabis legal fund Abatement Fund Contribution to stablize cannabis abatement fund TOTAL
20 cameras with service for 5 years ($515,000)
4a. Non-Governmental Organization (NGO) Subcontracts
3b. Professional Services or Public Agency Subcontracts Narrative: List each consultant and/or public agency that will receive grant funds. Provide a brief description of the services that will be provided.
4b. Non-Governmental Organization (NGO) Subcontracts Narrative: List each NGO subcontractor that will receive grant funds. Provide a brief description of the services that will be provided.

Flock Safety
TOTAL
10 A. Grant Funds for
PPA 1: Public
Safety/Enforcement
B. Grant Funds for
PPA 2, 3, and/or 4
Total Requested
Grant Funds
(A+B)
$57,000 $0 $57,000
$30,000 $0 $30,000
$459,397 $0 $459,397
$100,500 $0 $100,500
$300,000 $0 $300,000
$0 $0 $0
$946,897 $0 $946,897
A. Grant Funds for
PPA 1: Public
Safety/Enforcement
B. Grant Funds for
PPA 2, 3, and/or 4
Total Requested
Grant Funds
(A+B)
$2,000 $0 $2,000
$750 $0 $750
$1,200 $0 $1,200
$30,000 $0 $30,000
$0 $3,324 $3,324
$0 $0 $0
$33,950 $3,324 $37,274
No NGO subcontracts will be a part of this project.

The Code Compliance Vehicle will be the work vehicle for the new, grant-dedicated cannabis code enforcement inspector. Three of the desktop computers will be used to run the high-powered surveillance and investigative tools the CCPD is getting for their cannabis enforcement. One full desktop equipment set will be for the new cannabis code enforcement inspector in code compliance. The Lenco Rescue Vehicle is the tactical response vehicle for use by CCPD on high-risk cannabis interventions. The Envirosuite with Weather Stations request will be installed by IT and run primarily by Code Enforcement with assistance of CCPD and CCFD to monitor for environmental hazards and use atmospheric monitoring to investigate the sources of odors and contaminants to identify illicit cannabis operations or legal businesses that may be falling out of compliance. The Hazmat Quick Response Vehicle will be needed to establish the City's Hazmat team which will respond to City emergencies as well as cannabis-related hazmat incidents throughout the Coachella Valley.

Dell Pro Max Investigative Tower Computers ($5,000 each x 3 for PD), Desktop Equipment for Code Compliance new hire ($15,000)
Bearcat tactical rescue vehicle ($459,397)
3 Weather stations w installation and 1 year support/maintenance ($89,500) $400,000 total with CCFD to match $100,000 so grant request is $300,000 Code Compliance Technology and
Software Training
Renewal course to maintain certification ($300/yr x 4 years) Training for code compliance staff on multiple softwares (varies) Code Compliance Vehicle
Desktop Computers
Lenco Rescue Vehicle
Envirosuite with Weather Stations
Hazmat Quick Response Vehicle
$52,000 for vehicle, $5,000 for markings
Initial Certification class and test for 1 staff member TOTAL
Description of Other (Travel,
Training, etc.)
Mobile Citation Training
Cannabis Extraction and Product
Development Specialist, Certificate
CSTI Hazmat First Responder Refresher
Grant Compliance Training Travel
Calculation for Expense
TOTAL
Training for all staff on mobile citation procedures
3 people, Travel $400 each, per diem lodging $150/day/person and meals/incidentals $86/person per day for 3 days. Travel only on days 1 and 5 6a. Other (Travel, Training, etc.)
5b. Equipment/Fixed Assets Narrative: List any equipment or fixed assets that will be purchased with grant funds and provide a brief description of each item that explains how it will be used toward fulfilling grant objectives.
5a. Equipment/Fixed Assets
Description of Equipment/Fixed
Assets Calculation for Expense
11 Grant Funds Total Requested
Grant Funds
$390,605 $390,605
$474,375
$0 $0
$632,500
Please see Instructions tab for additional information regarding Indirect Costs.

If the amount exceeds the maximum allowed and/or turns red , please adjust it to not exceed the line-item noted.

Mobile Citation Training will be a staff-wide training on mobile citation procedures. Code Compliance Technology and Software training is the more detailed professional training for Code Compliance on the software and hardware for mobile citations and field code access, GIS mapping, weather stations, and Envirosuite modeling. The Cannabis Extraction and Product Development Specialist Certificate is for the Hazmat team leader for the initial certifiation and the CSTI refresher is the annual refresher course for years 2-5. The Grant Compliance Training Travel will pay for 3 employees to go to Sacramento for the mandatory training during year 1.

For this grant program, indirect costs may be charged using only one of the two options below:
1) Indirect costs not to exceed 15 percent (15%) of all grant-funded costs, excluding equipment and fixed assets. Applicable if the applicant does not have a federally approved indirect cost rate.

If using Option 1) grant funds allocated to Indirect Costs may not exceed:
2) Indirect costs not to exceed 20 percent (20%) of all grant-funded costs, excluding equipment and fixed assets. Applicable if the applicant has a federally approved indirect cost rate. Amount claimed may not exceed the applicant's federally approved indirect cost rate.

If using Option 2) grant funds allocated to Indirect Costs may not exceed:
$390,605 $390,605
7a. Indirect Costs
6b. Other (Travel, Training, etc.) Narrative: Provide a brief explanation for how each item listed above will contribute toward fulfilling grant objectives. Please budget for at least one 2-day trip to Sacramento for 3-5 key grant team members.
7b. Indirect Costs Narrative:

The project uses a 15% indirect cost rate on equipment costs and a nominal 2.705% indirect cost rate on personnel costs. The City is reducing the indirect rate applied to personnel expenses in order to perform more direct activities that meet identified community needs.
12 Outlook
Prop 64 Cohort 4 – Recommended for Funding
FromKnapp, Tony@BSCC <[email protected]>
Date Tue 6/23/2026 12:28 PM
To Knapp, Tony@BSCC <[email protected]>
You don't often get email from [email protected]. Learn why this is important Good afternoon,

Congratulations! The proposal submitted by your jurisdiction for the Proposition 64 Public Health & Safety Grant Program, Cohort 4 is being recommended for funding.

These recommendations will be presented to the Board of State and Community Corrections (BSCC) at its next Board meeting this Thursday, June 25, 2026 at 10:00 a.m. Please note that award recommendations are not ﬁnal until approved by the Board. You will receive oﬃcial notiﬁcation of award after the Board takes action.

The Board meeting agenda and attachments are available here: https://www.bscc.ca.gov/events/board-meeting-agenda-06-25-2026/ A list of proposals recommended for funding and corresponding project summaries will be included in the agenda materials.

All Board meetings are live streamed. Check back to the BSCC website on Thursday morning for a link to the meeting livestream. (Meeting attendance is not required.)

To support timely contracting following potential Board approval, please begin to gather the following documents:

Proof of compliance with Revenue & Taxation Code § 34019(f)(3)(C) (if not already submitted) Governing Board Resolution or Proof of Signing Authority Note: Before a grant award can be finalized and funds awarded, successful applicants must submit either a resolution from its governing board that delegates authority to the individual authorized to execute the grant agreement or sufficient documentation indicating that the individual who signs the grant agreement has been vested with plenary authority to execute grant agreements (e.g., a municipal ordinance or city/county ordinance/charter delegating such authority to a city manager or department head).

Payee Data Record (STD 204)

Please be prepared to respond promptly to any requests for information so your project can move forward without delay. Failure to meet deadlines for required documents may result in forfeiture of the award to the next ranked applicant.

13 If you have any questions, please contact me at [email protected].

Again, please note that this recommended award is conditional and not ﬁnal until approved by the Board.

Sincerely,

Tony Knapp
Field Representative – Corrections Planning and Grant Programs Division BOARD OF STATE AND COMMUNITY CORRECTIONS
2590 Venture Oaks Way, Suite 200, Sacramento, CA 95833
Phone 916- 599-4732
website http://www.bscc.ca.gov
email [email protected]
LEADERSHIP « EXCELLENCE « SUPPORT

Below is a brief overview of next steps for Cohort 4 grantees:

Contract Documents
Standard Agreements will be emailed soon to the Authorized Officer listed in your application.

A Governing Board Resolution is required before contract execution and must include:

Delegated signing authority
Non ‑ supplantation language
Agreement to all contract terms
If subcontracting with an NGO, submit the Criteria for NGOs Receiving Prop 64 Funds form (Appendix K) once a subcontractor is identified.

Jurisdictions with prior Prop 64 awards may be asked to provide supplemental documentation to distinguish Cohort 4 activities from previous cohorts.

Orientation
15 Orientation dates for Cohort 4 have not yet been scheduled.

The mandatory virtual Grantee Orientation will include sessions on:

Grant administration
Fiscal requirements and invoicing
Quarterly progress reporting and evaluation
The Project Director and Day ‑ to ‑ Day Program Contact must attend all sessions; additional staff may join as appropriate.

Evaluation
All projects must develop a Local Evaluation Plan (LEP) and Project Logic Model.

Guidance will be provided during Orientation and in a dedicated LEP Webinar.

LEPs and Logic Models are typically due 60 days after the Webinar; final deadlines will be confirmed.

Evaluators should be engaged early and participate in LEP development and data planning.

Budgets
BSCC staff will review your budget narrative to ensure all proposed costs are allowable.

Pre ‑ approval is required for:

Any single fixed ‑ asset purchase over $3,500
Youth incentives, food/beverage, or similar items under PPA 3 The budget table submitted in your application will serve as the starting point for your contract amount and reimbursement invoices.

16 Staff Report
City Council
Item No. 5.B
Meeting Date: July 22, 2026
From: Anne V. Ambrose, Assistant City Manager
Title: A Resolution Of The City Council Of The City Of Cathedral City Authorizing The City Manager To Conduct A Feasibility Study For Tax Increment Financing (TIF) Districts
RECOMMENDATION:

Staff recommends City Council adopt a Resolution authorizing the City Manager to conduct a feasibility study for Tax Increment Financing (TIF) Districts.

BACKGROUND:

In June 2026, staff met with Kosmont Companies representatives to discuss potential financing strategies for the future community center. During that discussion but separate from the topic of the community center, Kosmont informed staff of the benefit of Cathedral City evaluating and exploring TIF Districts that may include and overlap with Opportunity Zone (OZ) 2.0 Districts in the City. Coupled together, TIF and OZ 2.0 Districts create a powerful incentive for various types of economic development. The importance of this information was a need to file a resolution authorizing the City to explore TIF districts in the Opportunity Zones, prior to the period for filing for new districts on July 25, 2026.

DISCUSSION:

TIFs are authorized by California state law and begin with the designation of a geographic area as a TIF District. TIF is a value capture revenue tool that uses taxes on future gains in real estate values to pay for new infrastructure improvements. It is important to note that TIFs do not increase property taxes. TIFs create funding for public or private projects by borrowing against the future increase in property-tax revenues. The intent is for the improvement to enhance the value of existing properties and encourage new development in the district. TIFs induce private investment and create value for prospective developers. There are different types of TIFs, such as Enhanced Infrastructure Financing Districts (EIFD) or Community Revitalization Investment Authorities (CRIAs).

Opportunity Zones are economically distressed communities, defined at the individual census tract level, that are nominated by the Governor of California and certified by the U.S.

Secretary of the Treasury. Under certain conditions, new investments in Opportunity Zones 1 may be eligible for preferential tax incentives. Opportunity Zones can be a powerful tool for driving private investment into underserved communities. Originally created as a temporary initiative in 2017, the incentive was later enhanced and made permanent under Public Law 119-21, which was signed into law on July 4, 2025; OZ 2.0 refers to the permanent renewal and enhancement of the Opportunity Zones program.

TIF and OZ 2.0 Districts, when utilized in tandem, can be beneficial both for the City of Cathedral City and private investors. For the City, it reduces public cost by using tax increment financing to cover off-site infrastructure and site readiness before private capital is deployed. For private investors, OZ 2.0 is attractive because it provides a federal tax incentive that is further motivated by local TIF resources. Ultimately, layering OZ equity with TIF means more development can be catalyzed with less financial contribution and risk by the City.

The Resolution before the Council will not establish any TIF. Rather, its purpose is to authorize the City Manager or their designee to conduct a study exploring the feasibility of establishing one or more TIFs within the City.

FISCAL IMPACT:

The cost of preparing a feasibility study has not been budgeted and would be a budget amendment for an increase in General Fund expenditures. The cost of preparing a feasibility study would be determined through a procurement process and any budget amendment would be presented to the City Council as part of a future presentation.

FIVE-YEAR STRATEGIC PLAN:

Goal F-16: Develop and implement initiatives to proactively monitor the City's commercial corridors to address visual blight and nuisance issues associated with vacant and underutilized properties and non-compliant commercial strips and centers.

ATTACHMENTS:

Resolution 2026-XXXX
2 RESOLUTION NO. 2026 -

A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF CATHEDRAL

CITY, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO CONDUCT A

FEASIBILITY STUDY FOR TAX INCREMENT FINANCING (TIF) TOOLS WHEREAS, the City of Cathedral City seeks to identify long-term, sustainable funding sources for public infrastructure, affordable housing, and community-wide improvements; and WHEREAS, the California State Legislature has authorized local governments to establish Enhanced Infrastructure Financing Districts (EIFD) under Government Code §53398.50 et seq. to capture tax increment for such purposes; and WHEREAS, the City Council desires to evaluate the fiscal impact, potential boundaries, and revenue-generating capacity of such districts across specific corridors, e.g., the Downtown, without committing to a specific development project at this time; and WHEREAS, a formal feasibility study is a critical prerequisite to determine if a partnership with the County or other taxing entities is viable.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

1. Authorization of Study: The City Manager, or their designee, is hereby authorized to explore the feasibility of establishing one or more EIFDs or Community Revitalization Investment Authorities (CRIAs) within the City.

2. Scope of Work: Staff is directed to evaluate potential district boundaries, project baseline assessed valuations, and estimate future tax increment revenue based on general growth projections rather than a single project.

3. Consultant Engagement: The City Manager is authorized to solicit a qualified financial or economic development consultant to assist in the feasibility analysis.

Any required budget amendment or authorization will be brought to the City Council for approval.

4. Stakeholder Outreach: Staff is authorized to initiate non-binding discussions with affected taxing entities (e.g., the County) to gauge interest in participating in a future Public Financing Authority (PFA).

5. Non-Binding Intent: This resolution is for exploratory purposes only and does not constitute a formal Resolution of Intention to form a district under Government Code §53398.54.

PASSED, APPROVED, AND ADOPTED this 22nd day of July 2026. ___________________________
Raymond Gregory, Mayor
3 ATTEST:
____________________________
Christina Burton, City Clerk
APPROVED AS TO FORM:
____________________________
Eric S. Vail. City Attorney
I, CHRISTINA BURTON, CITY CLERK of the City of Cathedral City, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Cathedral City held on the 22nd day of July 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Christina Burton, City Clerk
4 Staff Report
City Council
Item No. 5.C
Meeting Date: July 22, 2026
From: John A. Corella, Director of Public Works
Title: Approval of a Budget Adjustment to the CWSRF Septic-to-Sewer Planning Project (C01020), Acceptance of Additional (Clean Water State Revolving Fund) CWSRF Funding, and Approval of Additional Scope of Work Proposals from Ardurra, Inc. and Fomotor, Inc.

RECOMMENDATION:

Approve a budget adjustment to the CWSRF Septic-to-Sewer Planning Project (C01020), utilizing additional Clean Water State Revolving Fund (CWSRF) funding awarded by the California State Water Resources Control Board (SWRCB); and authorize the City Engineer to accept the proposals from Ardurra Group, Inc. and Fomotor, Inc. for additional scope of work necessary to complete the project.

BACKGROUND:

The Clean Water State Revolving Fund (CWSRF), administered by the California State Water Resources Control Board (SWRCB), provides funding for a variety of water quality improvement projects, including septic-to-sewer conversion projects. In August 2024, the City of Cathedral City was awarded $2,474,070 through the CWSRF Septic-to-Sewer Planning Program (SWRCB Project No. C-06-8696-110) to evaluate, design, and prepare necessary construction documents to connect six (6) existing residential areas currently utilizing septic systems to municipal sewer service. A map of the project areas is included in Attachment 1.

The municipal sewer systems within Cathedral City are owned, operated, and maintained by the Coachella Valley Water District (CVWD) and the Desert Water Agency (DWA). The project includes the following service areas:

CVWD Service Area
Whispering Palms Neighborhood (Whitewater area)
South City (Ocotillo Park area)
Papaya/Pomegranate Lane
Royal Palms Mobile Home Park
Caliente Sands Mobile Home Park
1 DWA Service Area
Lakeview Villas Condominiums
On March 26, 2025, the City Council approved a Professional Services Agreement with Ardurra Group, Inc. in the amount of $2,178,017.56 to prepare Preliminary Engineering Reports (PERs), environmental documentation, construction funding applications, and Plans, Specifications, and Estimates (PS&E) necessary to fulfill the requirements of the CWSRF Agreement.

As of July 2026, Ardurra has completed the PERs for both the CVWD and DWA service areas, which have been approved by SWRCB. The project has subsequently advanced into environmental review, preparation of PS&E, tribal consultation, and development of the CWSRF construction funding applications.

Additionally, Memoranda of Understanding between the city, CVWD, and DWA have been executed establishing the respective responsibilities for project delivery, with the city responsible for planning, design, and environmental clearance, and the water agencies responsible for construction and operation of the sewer infrastructure within their service areas.

Since the commencement of the project, additional technical requirements, coordination efforts, and design complexities have been identified that required modifications to the approved project scope, schedule, and budget.

On February 25, 2026, the city submitted an amendment request to the SWRCB requesting additional funding, modifications to the project scope, and an extension of the project schedule.

On May 29, 2026, the SWRCB approved the city's amendment request in its entirety and executed Amendment No. 1 to the grant agreement, increasing the total grant funding award by $94,898.56, revising the project scope, and extending the project completion schedule.

DISCUSSION:

As part of Amendment No. 1 to the CWSRF Grant Agreement approved by SWRCB, additional scope of work was authorized as reimbursable activities to address newly identified right-of-way requirements and increased design complexity. Staff are requesting authorization to proceed with accepting proposals from consultants for the services necessary to complete these additional project requirements.

1. Utility Easement Acquisition and Bureau of Indian Affairs Coordination Following consultation with the Agua Caliente Band of Cahuilla Indians (ACBCI), it was determined that utility easements will be required to construct sewer improvements within the Royal Palms Mobile Home Park area. Additionally, existing rights-of-way on Date Palm Drive adjacent to the project area are limited to highway purposes and cannot be utilized for utility infrastructure under current federal requirements.
2 As a result, the project requires acquisition of two (2) permanent utility easements and one (1) temporary construction easement, all of which require review and approval by the Bureau of Indian Affairs (BIA). These activities were not anticipated during preparation of the original grant application.

To support these efforts, staff requested proposals from Ardurra, Inc. (Project Design Consultant) and Fomotor, Inc. (City On-Call Consultant for Land Surveying) for surveying, mapping, easement preparation, appraisal coordination, and BIA processing services.

Consultant Cost Proposal
Ardurra (Project Design Consultant) $52,632.00
Fomotor (City On-Call Surveyor) $45,000.00
Staff recommend acceptance of the proposal submitted by Fomotor, as it provides the necessary scope of services at the lower cost. Staff also recommend a contingency of $5,000 for title status report fees.

2. Increased Design Effort
As design development progressed, the project team identified significant increases in the amount of infrastructure required to serve several project areas compared to the assumptions used during the original grant application process.

The refined project design includes approximately 120 additional septic-to-sewer connections, a 53 percent increase in 8-inch sewer pipeline lengths, additional trunk sewer upsizing, and substantially greater design complexity associated with mobile home parks and condominium developments.

As a result, Ardurra submitted an amendment request amount of $298,360 for additional design services necessary to complete PS&E for the affected project areas.

3. Additional Project Scope and Schedule Modifications
To accommodate the increased project complexity and anticipated BIA processing timelines, the amendment request to the SWRCB included additional scope and schedule modifications.

Staff requested authorization to divide the CVWD service area into two (2) separate CWSRF construction funding applications. Under the revised approach, Royal Palms Mobile Home Park and Caliente Sands Mobile Home Park will proceed as one (1) construction package, while Whispering Palms, South City, and Papaya/Pomegranate Lane will proceed as a separate construction package. This modification will allow the single-family residential areas to advance while federal easement approvals are obtained for the mobile home park areas.

Staff also requested an extension of the project completion date from June 30, 2027, to March 31, 2028, with a final reimbursement deadline of September 30, 2028, to accommodate the additional coordination and permitting requirements.
3 Summary
The city submitted an amendment request to SWRCB requesting these scope modifications and an additional $94,898.56 in grant funding. The SWRCB approved the city's request in its entirety and executed Amendment No. 1 to the funding agreement.

A full copy of the SWRCB amendment request, including the exhibits listed below, is attached to this staff report as Attachment 2.
Royal Palms Mobile Home Park necessary utility easements map Project schedule update
Fomotor proposal for utility easement coordination and approval with BIA Ardurra amendment request for increased design effort
Revised project budget
Staff recommend that City Council approve a budget adjustment to the CWSRF Septic-to- Sewer Planning Project (C01020), utilizing additional CWSRF funding awarded by the SWRCB; and authorize the City Engineer to accept the proposals from Ardurra Group, Inc. and Fomotor, Inc. for additional scope of work necessary to complete the project.

FISCAL IMPACT:

The original CWSRF grant award totaled $2,474,070. Of this amount, $42,080 was utilized to reimburse the city for preparation of the original planning grant application, leaving $2,431,990 available for the Septic-to-Sewer Planning Project.

CWSRF Grant Award $2,474,070
Planning Grant Application Services ($42,080)
Available Budget for Septic to Sewer Planning Project $2,431,990 The City Council awarded a contract to Ardurra in the amount of $2,178,017.56 and approved a contingency of $253,972.44. Following payment of $511 in advertising costs, the remaining project contingency balance is $253,461.44.

Available Budget for Septic to Sewer Planning Project $2,431,990.00 Ardurra Professional Design Service Cost ($2,178,528.56) Advertising Cost ($511.00)
Remaining Project Contingency $253,461.44
The total cost of the additional scope of work summarized in this staff report is as follows:

Ardurra- Additional PS&E $298,360.00
Fomotor- Easement Approval and BIA Coordination $45,000.00 Contingency for Title Status Report Fees $5,000.00
Total Cost for Additional Scope of Work $348,360.00
After applying the remaining project contingency, the city requested additional funding from SWRCB in the amount of $94,898.56.

Total Cost for Additional Scope of Work $348,360.00
4 Remaining Project Contingency ($253,461.44)
Amendment Request Amount $94,898.56
On May 29, 2026, SWRCB approved the full funding request, increasing the total project budget from $2,474,070.00 to $2,568,968.56. As such, all necessary increased scope of work proposals can be fully budgeted using CWSRF grant funding.

FISCAL

YEAR DESCRIPTION

GENERAL
LEDGER

ACCOUNT
CODES

PROJECT

CODE AMOUNT

ONE TIME
or

ONGOING
2026-
2027
CWSRF Septic
to Sewer
Planning Project
331-100-150-
156-8600-8601 C01020 $2,568,986.56 ONE TIME
2026-
2027 Total $2,568,986.56
FIVE-YEAR STRATEGIC PLAN:

Goal B: Community Investments
Objective: Cathedral City roads, gateways, public spaces, and other infrastructure are well planned, designed, constructed, and maintained.

Action B-9: Continue to work on Septic to Sewer grant.

ATTACHMENTS:

1. Project Locations Map

2. SWRCB Amendment Request

3. Amendment No. 1 to CWSRF Planning Grant Agreement
5 10
111
111
111
10 CATHEDRAL CITY

RANCHO MIRAGE

PALM SPRINGS

PALM DESERT

INDIAN WELLS

LA QUINTA
INDIO

DESERT HOT
SPINGS

LAKEVIEW VILLAS
FIGURE
9665 Chesapeake Drive, Ste 230
San Diego, California 92123
(858) 413-2400
www.Ardurra.com

DWA SERVICE AREA AND
PROJECT AREA LOCATION 1
00 10,0005,000

PROJECT AREA
Pacific Ocean

VICINITY MAP
LEGEND:

DESERT WATER AGENCY

DISTRICT BOUNDARY
PROJECT SITES (4 TOTAL)

STREETS
CITIES:

CATHEDRAL CITY

DESERT HOT SPRINGS

INDIAN WELLS
INDIO

LA QUINTA

PALM DESERT

PALM SPRINGS

RANCHO MIRAGE
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7 State Water Resources Control Board
Division of Financial Assistance (DFA)
Amendment Request Form
For Non-FBA Amendments
Revised December 2025 Page 1 of 7
Instructions
This form is to request changes outside of the Final Budget Approval (FBA) process. Please submit this form as soon as it becomes clear that you need to request a change to your funding agreement. Review the instructions before completing the form and contact your Project Manager with any questions.

General Information: This section is required for all requests.

1. Enter the date you prepared this form.

2. Enter the agreement number as listed on the cover page of your agreement.

3. Enter the Recipient’s legal name.

4. Enter the project title as listed on the cover page of your agreement.

5. Enter the current agreement eligible work start date, work completion date, and final reimbursement request date as listed on the cover page of your agreement.

6. Confirm the request is being submitted 90 days prior to the current Work Completion Date / Construction Completion Date. Please note that requests submitted after this date may not be considered for amendment.

7. Confirm whether the Authorized Representative (AR) has changed. If so, provide new contact information and submit documentation appointing the new AR to their current position.

8. Provide a brief description of the purpose of the project.

9. Provide a summary of all work completed to date on the project.

Scope/Schedule Change Information: This section is only required if you are requesting a change to the existing scope of work or schedule of work. If this request includes a scope or schedule change, check this checkbox and complete boxes 10-13.

10. If applicable, describe the proposed deviation from the original scope of work and explain why the modifications are necessary. If a deviation from the original scope of work is not necessary, please write N/A.

11. If applicable, explain the proposed changes to the schedule of work and why they are necessary. If there are no proposed changes to the schedule of work, please write N/A.

12. Explain how the proposed changes will achieve the original intent of the project.

13. Confirm whether the change in scope will result in an addendum to the environmental clearance or modification to the project footprint. If so, explain the changes.

Time Extension Information: This section is only required if you are requesting a work completion/construction completion date time extension. If this request includes a time extension, check this checkbox and complete boxes 14-18.

14. Enter the new requested work completion/construction completion date (e.g. if your current work completion date is 12/31/2026 and you are requesting a 2-year extension, enter 12/31/2028).

15. Enter the new requested final reimbursement request date consistent with the new requested work completion/construction completion date (e.g. if you requested a 2-year extension to your work completion date and your current final reimbursement request date is 2/28/2027, enter 2/28/2029).

16. Enter the amount of funds expected to be spent by the current work completion/construction completion date (e.g. if your current work completion date listed in your agreement is 12/31/2026, enter the total amount of DFA funds you expect to spend by 12/31/2026).

17. Explain any circumstances that resulted in the need to request a time extension. If this is a bottled or hauled water project, explain the circumstances that resulted in delays to your long-term solution project.

18. Explain how you plan to complete the project within the newly requested time frame. If this is a bottled or hauled water project, explain how you plan to complete your long-term solution project within the newly requested time frame.
8 State Water Resources Control Board
Division of Financial Assistance (DFA)
Amendment Request Form
For Non-FBA Amendments
Revised December 2025 Page 2 of 7
Budgetary Information: This section is only required if you are requesting additional funds or a shift between existing budget categories. If this request includes a budget change or budget shift, check this checkbox and complete boxes 19-21.

19. Select the way in which the budget will change. If a change in total budget is requested, make note of the current budget amount as well as the proposed budget amount.

20. Explain how the proposed changes to the budget will ensure the completion of the project’s goals. Justification and an updated detailed budget file are required for any budget changes.

21. Drinking Water State Revolving Fund (DWSRF) and Clean Water State Revolving Fund (CWSRF) funded projects receiving 100% non-repayable financing and requesting a cost increase must complete supplemental financial certification.

If any of these apply to your project, check the N/A box:
· The project is not DWSRF- or CWSRF-funded.
· The project is not receiving 100% non-repayable financing. · The project is not requesting additional funding.

Other Changes Information: This section is only required if you are requesting a change that does not fall into one of the categories outlined above. If this request includes other changes, check this checkbox and complete box 22.

22. Explain the requested change. Examples of possible requests include changes to special conditions, changes to financial terms, etc.

Recipient Signatures: This section is required for all requests.

23. The AR signs and dates the form, then emails the form to the State Water Board Project Manager.

24. The AR must attach the following items to the email as applicable:
· Revised draft of agreement using the ”track changes” feature showing all proposed changes (party contacts, scope of work, schedule of work, budget, etc.). · Revised draft of detailed budget file showing proposed changes in a different color text or highlight (required for any budget changes).
· For DWSRF and CWSRF projects, the AR must also attach an updated Potential Red Flags Worksheet / Self-Certification Form.

Disclaimer/Notice to Requestors:

DFA cannot accommodate all requested amendments due to limitations including, but not limited to: programmatic funding limits, liquidation deadlines, ineligibility of proposed changes, and current funding priorities.

Your Project Manager may request additional documentation specific to your funding program or circumstances (supplemental legal opinions, self-certification forms, updated environmental documents, supplemental financial documents, etc.)
9 10

State Water Resources Control Board
Division of Financial Assistance (DFA)
Amendment Request Form
For Non-FBA Amendments
Revised December 2025 Page 4 of 7
Scope/Schedule Information: If you are requesting a change to the scope of work or schedule of work, complete boxes 10-13.

10. Describe the proposed deviation from the original scope of work and explain why the modifications are necessary.

11. Does the schedule of work need revision? If so, explain the changes and why they are necessary.

12. How will the proposed changes achieve the original intent of the project?

13. Will the change in scope:
a. result in an addendum to the environmental clearance? Yes No b. require additional CEQA review? Yes No
c. result in a change to the project footprint designated in the environmental documents? Yes No
If you answered “yes” to any of the above, explain below. ✔

1. The Royal Palms Mobile Home Park (MHP) area is within Tribal Trust land. The existing municipal sewer system is located under an easement granted for highway purposes only. Updated federal regulations prohibit “piggybacking” on the existing easement, therefore, two (2) permanent utility easements will be required to connect the MHP to the sewer system, and one (1) temporary construction easement will be required to construct the sewer system within the mobile home park. The City requests a scope amendment to include Bureau of Indian Affairs (BIA) coordination, administrative processing, and necessary appraisals to obtain BIA approval of the mentioned easements. Acquisition costs for these easements will be included in the Construction Project following CWSRF policies. A map of the required easements is shown in Exhibit A.

2. The City requests approval to submit two (2) separate CVWD construction funding applications rather than one (1). Royal Palms MHP will be separated due to extended easement acquisition schedules and Caliente Sands MHP should remain grouped with Royal Palms MHP, as both are mobile home park septic-to-sewer conversions located in close proximity, allowing for efficient coordination of construction. Whispering Palms Neighborhood, South City Neighborhood, and Papaya and Pomegranate Lane will be grouped on the other CVWD Construction Application. To offset the cost of this increased scope of work, the City is proposing to remove the Draft CWSRF Construction Financial Package for both CVWD and DWA phases.

A revised schedule has been prepared for the items included in Ardurra’s contracted scope of work (Exhibit B). The revised schedule reflects several necessary adjustments. First, the project experienced a delayed start in Fall 2025. The City issued three (3) rounds of Requests for Proposals (RFPs) before receiving qualified proposals, resulting in an approximately five (5) month delay in commencing the project. Second, the original schedule in the Grant Agreement showed draft environmental documents being completed concurrently with the Preliminary Engineering Reports (PERs). However, the Environmental Review phase cannot begin until written authorization is provided by the SWRCB following approval of the PERs. Because Environmental Review is contingent upon SWRCB authorization, this phase has been shifted accordingly. In addition, the PER review process among various different agencies has extended beyond the timeframe originally anticipated. The City recognizes the importance of allowing sufficient time for agency review and response to comments and is accounting for the additional duration in the project schedule for upcoming phases. Additional time has also been incorporated to develop the 60% PS&E. Due to the expanded right-of-way scope of work now required, including coordination and negotiation efforts associated with easement acquisition, the design schedule has been extended to ensure these activities are properly integrated and sequenced. Additionally, the schedule for submittal of the Construction Grant Applications has been adjusted. The City is preparing to submit the applications; however, submittal for the CVWD portion will be deferred pending direction on this Amendment request, including confirmation of whether two (2) applications will be accepted instead of one (1). This ensures the applications are structured correctly and avoids potential duplication or rework.

Finally, the City anticipates obtaining BIA approval for the required easements before the end of 2027. Because coordination with the BIA for easement approvals involves federal review processes with timeframes that can vary, additional time has been incorporated into the schedule to provide a reasonable buffer. This conservative approach is intended to ensure the project remains achievable without requiring further extensions.

Including BIA coordination, easement processing, and required appraisals for Royal Palms MHP area ensures the project can be legally constructed and connected to the CVWD system. Without securing the necessary permanent utility and temporary construction easements, the Royal Palms MHP area connection could not proceed. These additions therefore allow the project to advance to implementation as originally intended. Separating the construction funding into two applications further supports the project’s intent by preventing delays to the other CVWD service areas. Because Royal Palms MHP requires additional time for easement acquisition, submitting separate applications allows the remaining areas to move forward on schedule while Royal Palms MHP completes the required federal right-of-way process. Grouping Caliente Sands MHP with Royal Palms MHP maintains construction efficiencies due to their proximity and similar mobile home park configurations. Overall, the proposed changes provide the administrative and regulatory pathway necessary to complete all planned septic-to-sewer conversions while minimizing schedule impacts and preserving the project’s original objectives. ✔
✔
✔
11 State Water Resources Control Board
Division of Financial Assistance (DFA)
Amendment Request Form
For Non-FBA Amendments
Revised December 2025 Page 5 of 7
Time Extension Information: If you are requesting a time extension, complete boxes 14-18.

14. Requested New Work/Construction Completion Date:

15. New Final Reimbursement Request Date:

16. DFA Funds Expected to be Spent by Current
Work/Construction Completion Date:

17. Explain the circumstances that resulted in the inability to complete the project on schedule and/or any impediments to completion.

18. Explain measures that will be taken to ensure project completion. ✔
3/31/28
9/30/28
$2,538,986.56
The requested extension of the project completion date from June 30, 2027, to March 31, 2028, is primarily the result of the delayed project start and, more significantly, the additional scope of work related to obtaining required easement approvals. The project experienced an approximately four (4) month delay at initiation due to the City issuing three rounds of Requests for Proposals (RFPs) before securing qualified proposals. This delayed the formal start of consultant services. More substantially, the expanded scope now includes coordination with the BIA and processing of required easements, which must be fully approved prior to the commencement of construction. The timeline for BIA coordination and approval can vary depending on federal review processes and documentation requirements. To account for this uncertainty and ensure a realistic schedule, the City is conservatively estimating that full BIA easement approval will be obtained by Fall 2027 and all submittals for the Planning Project can be submitted and approved by March 31, 2028.

The City has taken several proactive measures to ensure successful completion of the project under the revised schedule. The City and Ardurra (Project Designer) will closely monitor progress against this schedule and coordinate regularly to address issues promptly. The City is actively preparing Construction Grant Application materials so that submittal can occur upon receiving direction regarding this Amendment request. In addition, the City will continue early and ongoing coordination with the BIA to facilitate timely processing and approval of the required easements, with the expectation of securing approval by Fall 2027.Through these measures, the City remains committed to maintaining forward progress and ensuring project completion within the revised time frame.
12 State Water Resources Control Board
Division of Financial Assistance (DFA)
Amendment Request Form
For Non-FBA Amendments
Revised December 2025 Page 6 of 7
Budgetary Information: If you are requesting a change in funding, complete boxes 19-21.

19. Select the following budgetary changes that are requested as part of this amendment.

Change in total budget
Current Budget
Amount:

Proposed Budget
Amount:

Shift among existing budget categories

20. Please describe the requested changes and how they will accomplish the goals of the project. Attach a copy of the detailed budget file showing all requested changes.

21. For DWSRF and CWSRF projects receiving 100% non-repayable financing and requesting a cost increase, please complete the below certification.

N/A, for any of the following reasons:
· The project is unrelated to the State Revolving Fund (SRF) programs. · The project is not receiving 100% non-repayable financing. · The project is not requesting additional funding.

By checking the following boxes, I, the Authorized Representative, certify that:

No substantive changes to the project scope have occurred; There have been no increases to anticipated operation and maintenance (O&M) costs since the original application materials were submitted;
The Recipient has maintained compliance with all material agreement conditions in all outstanding State Water Board obligations to date;
The Recipient has reviewed the notice requirements in the Financing Agreement, and certifies that there have been no notice events relevant to the Recipient’s financial condition; and The Recipient has made the Division of Financial Assistance aware of any new information that may materially and adversely affect the financial condition of the Recipient, the project, or the System. ✔
$2,474,070
$2,568,968.56
The City requests funding increases for the following items:

1. Easement Preparation and Coordination: $50,000 is requested to support easement preparation and coordination with the Bureau of Indian Affairs (BIA) for the Royal Palms MHP, including required appraisals. Fomotor Engineering’s proposal totals $45,000 (Exhibit C); an additional $5,000 contingency is included to cover potential additional coordination, Title Status Report fees, or higher-than-estimated appraisal costs.

2. PS&E Development for Sewer Projects: $298,360 to address increased work for Royal Palms MHP, Caliente Sands MHP, and Lakeview Villas Condos. This accounts for 120 additional septic tanks, 45% more pipeline, and added complexity in lateral design. Detailed scope is provided in Ardurra’s proposal (Exhibit D).

3. CVWD Construction Applications: The City proposes to prepare two (2) CWSRF Construction Grant applications instead of one (1) (Royal Palms MHP/Caliente Sands MHP and the three (3) single-family residential areas). To offset this, the “Draft CWSRF Construction Financial Package” is removed from Sections 2.3 (CVWD) and 3.3 (DWA), requiring no additional funding.

To offset the increases:

4. Available grant funding: $253,461.44 is available on the CWSRF Planning Grant and will be applied to reduce the net requested increase to $94,898.56 (Exhibit E.

5. Budget Reallocation: $183,479.00 from the Project Management Phase is proposed to be reallocated to the CVWD and DWA Sewer Project phases (Exhibit F). The City will perform the remaining administrative project management services included under Section 4 at its own expense and will not charge these costs to the grant.

These changes allow the City to address increased scope, complexity, and adjusted application preparation for CVWD to successfully complete the design and documentation necessary to connect all targeted areas to the municipal sewer systems. ✔
✔
✔
✔
✔
✔
✔
13 State Water Resources Control Board
Division of Financial Assistance (DFA)
Amendment Request Form
For Non-FBA Amendments
Revised December 2025 Page 7 of 7
Other Changes Information: If you are requesting any other changes to the agreement, complete box 22.

22. Please describe the requested change(s), reasoning for the request, and how they will impact the project. ✔
As of February 2026, the Authorized Representative for Cathedral City has changed. A letter appointing Andrew Firestine, the City's new City Manager is attached (Exhibit G). 14 EXHIBIT A
Royal Palms Mobile Home Park Necessary Easements

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ROYAL PALMS MHP PROJECT AREA AND

PREFERRED SEWER PIPE LAYOUT
Construction Limits for Temporary Construction Easement Proposed Utility Easements In Public ROW
ϯ33 ϯϭϱ
16 EXHIBIT B
Ardurra, Inc. Revised Project Schedule
17 ID Task Name
1 CWSRF SEPTIC TO SEWER PLANNING AGREEMENT NO.

D2401000
2 Notice to Proceed (NTP) for Design
3 Project Management
4 Quarterly Report Q1 2025 (Jan-Mar)
5 Quarterly Report Q2 2025 (Apr-Jun)
6 Quarterly Report Q3 2025 (Jul-Sep)
7 Quarterly Report Q4 2025 (Oct-Dec)
8 Quarterly Report Q1 2026 (Jan-Mar)
9 Quarterly Report Q2 2026 (Apr-Jun)
10 Quarterly Report Q3 2026 (Jul-Sep)
11 Quarterly Report Q4 2026 (Oct-Dec)
12 Preliminary Design for CVWD and DWA
13 Data Collection
14 Survey
15 Hydraulic Modeling
16 Geotechnical Investigation
17 COACHELLA VALLEY WATER DISTRICT (CVWD) SEWER

CONSOLIDATION PROJECT
18 2.1 CVWD Sewer Consolidation Project Preliminary
Engineering Report
19 DELIVERABLE A. CVWD Sewer Consolidation Project Draft Preliminary Engineering Report
20 Prepare Draft PER
21 QA/QC Review
22 Incorporate Comments
23 Draft PER Submittal to City
24 City Review
25 Incorporate Comments
26 Draft PER Submittal to CVWD
27 CVWD Review and Workshop
28 Incorporate Comments
29 Draft PER Submittal to State
30 SWRCB Review
31 DELIVERABLE B. CVWD Sewer Consolidation Project Final Preliminary Engineering Report
32 Prepare Final PER
33 QA/QC Review
NTP 3/3/2025
Proj Management
Q1 Report 4/7/2025
Q2 Report 7/7/2025
Q3 Report 10/7/2025
Q4 Report 1/7/2026
Q1 Report 4/7/2026
Q2 Report 7/7/2026
Q3 Report 10/7/2026
Q4 Report 1/7/2027
Prelim Design
Data Collection
Survey
Hydraulic Modeling
Geotechnical Investigation
CVWD Design

CVWD PER
DELIVERABLE A: Draft PER
Draft PER Submittal to City 7/11/2025
Draft PER Submittal to CVWD 7/25/2025
DELIVERABLE B: Final PER
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 2025 2026 2027
Cathedral City
Professional Design Services for
CWSRF Septic to Sewer Planning Project
Agreement No. D2401000

Page 1 ends

18 ID Task Name
34 Incorporate Comments
35 Final PER Submittal to City and CVWD
36 Final PER Submittal to State
37 SWRCB Review
38 SWRCB Notice to Proceed
39 2.2 CVWD Sewer Consolidation Project Environmental
Documents
40 DELIVERABLE C. CVWD Sewer Consolidation Project Draft Environmental Documents
41 Prepare Project Description and Area of Potential Effect (APE)
42 Submit Project Description and APE to State for review 43 Begin Environmental Documents
44 Prepare AB 52 Letters for City to send out to Tribal Entities 45 Period for AB 52 Consultations
46 Cultural Resources Survey & Technical Report
47 Bio Survey
48 Air Quality/GHG
49 Paleo Report
50 Prepare Admin Draft IS/MND
51 Public Review Draft and City Review
52 Send to State Clearinghouse to obtain a SCH Number
53 30 Day Public Review Period (30 Calendar Days)
54 DELIVERABLE D. CVWD Sewer Consolidation Project Final Environmental Documents
55 Prepare Final IS/MND and NOD
56 Response to Comments (RTC)
57 Sent out Notification to all RTCs for Board Adoption (At least 10 days prior to Board Action)
58 Board Action to Adopt the IS/MND and MMRP
59 Send Notice of Determination (NOD) to County Clerk for Filing
60 CEQA Plus Documentation (SRF Cross-cutter checklist) 61 State Water Resources Board/Federal Review Period
62 2.3 CVWD Sewer Consolidation Project CWSRF Financial Package and Construction Application:

SWRCB Notice to Proceed 3/23/2026
CVWD Environmental Phase
DELIVERABLE C: Draft Env Docs
Begin Environmental Documents 4/13/2026
Admin Draft IS/MND
Public Review Draft IS/MND
CVWD Draft IS/MND Submittal 9/28/2026
DELIVERABLE D: Final Env Docs
Final IS/MND
RTC Notification of Board Adoption 11/30/2026
Board Adoption 12/14/2026
NOD 12/16/2026
CEQA Plus
State/Fed Review
CVWD CWSRF Construction App
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 2025 2026 2027
Cathedral City
Professional Design Services for
CWSRF Septic to Sewer Planning Project
Agreement No. D2401000

Page 2 ends

19 ID Task Name
63 DELIVERABLE E. CVWD Sewer Consolidation Project Draft CWSRF Financial Package
64 CWSRF Potential Flags Worksheet
65 Three years of audited financial statements or tax
returns
66 Budget projections for at least the next two fiscal years 67 Rate adoption resolution or a copy of rates
68 Schedule of related debt, debt document copies (if
necessary), and/or a letter from the Authorized
Representative stating the Recipient has no debt.
69 City and District Review
70 Incorporate Comments
71 Draft Financial Package Submittal to State
72 Amendment Approval
73 Construction Package
74 CWSRF Review Period
75 DELIVERABLE F. CVWD Sewer Consolidation Project CWSRF Construction Application and Review
76 2.4 CVWD Consolidation Project Plans and Specifications 77 DELIVERABLE G. CVWD Sewer Consolidation Project 30% Plans and Specifications
78 30% Plans and Specifications
79 QA/QC Review
80 Incorporate Comments
81 Potholing
82 City & CVWD Review
83 30% Submittal to State
84 DELIVERABLE H. CVWD Sewer Consolidation Project 60% Plans and Specifications
85 60% Plans and Specifications
86 R/W Negotiations
87 QA/QC Review
88 Incorporate Comments
89 City & CVWD Review
90 60% Submittal to State
91 DELIVERABLE I. CVWD Sewer Consolidation Project 90% Plans and Specifications
92 90% Plans and Specifications
93 QA/QC Review
DELIVERABLE E: Draft CWSRF Financial Package
Draft Financial Package Submittal to State 9/14/2026
CWSRF Review Period
DELIVERABLE F: CWSRF Construction Application and Review CVWD Plans & Specs
30%
30% Submittal to State 7/13/2026
60%
60% Submittal to State 10/5/2026
90%
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 2025 2026 2027
Cathedral City
Professional Design Services for
CWSRF Septic to Sewer Planning Project
Agreement No. D2401000

Page 3 ends

20 ID Task Name
94 Incorporate Comments
95 City & CVWD Review
96 90% Submittal to State
97 DELIVERABLE J. CVWD Sewer Consolidation Project 100% Plans and Specifications
98 100% Plans and Specifications
99 QA/QC Review
100 Incorporate Comments
101 City & CVWD Review
102 Bid Ready Contract Documents
103 DESERT WATER AGENCY (DWA) SEWER CONSOLIDATION

PROJECT
104 2.1 DWA Sewer Consolidation Project Preliminary
Engineering Report
105 DELIVERABLE A. DWA Sewer Consolidation Project Draft Preliminary Engineering Report
106 Prepare Draft PER
107 QA/QC Review
108 Incorporate Comments
109 Draft PER Submittal to City
110 City Review
111 Incorporate Comments
112 Draft PER Submittal to DWA
113 DWA Review and Workshop
114 Incorporate Comments
115 Draft PER Submittal to State
116 SWRCB Review
117 DELIVERABLE B. DWA Sewer Consolidation Project Final Preliminary Engineering Report
118 Prepare Final PER
119 QA/QC Review
120 Incorporate Comments
121 Final PER Submittal to City and DWA
122 Final PER Submittal to State
123 SWRCB Review
124 SWRCB Notice to Proceed
125 2.2 DWA Sewer Consolidation Project Environmental
Documents
90% Submittal to State 6/14/2027
100%
Bid Ready Contract Docs 9/20/2027
DWA Design

DWA PER
DELIVERABLE A: Draft PER
Draft PER Submittal to City 7/11/2025
Draft PER Submittal to DWA 7/25/2025
DELIVERABLE B: Final PER
SWRCB Notice to Proceed 3/20/2026
DWA Environmental Phase
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 2025 2026 2027
Cathedral City
Professional Design Services for
CWSRF Septic to Sewer Planning Project
Agreement No. D2401000

Page 4 ends

21 ID Task Name
126 DELIVERABLE C. DWA Sewer Consolidation Project Draft Environmental Documents
127 Prepare Project Description and Area of Potential Effect (APE)
128 Submit Project Description and APE to State for review 129 Begin Environmental Documents
130 Prepare AB 52 Letters for City to send out to Tribal Entities 131 Period for AB 52 Consultations
132 Cultural Resources Survey & Technical Report
133 Bio Survey
134 Air Quality/GHG
135 Paleo Report
136 Prepare Admin Draft IS/MND
137 Public Review Draft and City Review
138 Send to State Clearinghouse to obtain a SCH Number
139 30 Day Public Review Period (30 Calendar Days)
140 DELIVERABLE D. DWA Sewer Consolidation Project Final Environmental Documents
141 Prepare Final IS/MND and NOD
142 Response to Comments (RTC)
143 Sent out Notification to all RTCs for Board Adoption (At least 10 days prior to Board Action)
144 Board Action to Adopt the IS/MND and MMRP
145 Send Notice of Determination (NOD) to County Clerk for Filing
146 CEQA Plus Documentation (SRF Cross-cutter checklist) 147 State Water Resources Board/Federal Review Period
148 2.3 DWA Sewer Consolidation Project CWSRF Financial Package and Construction Application:
149 DELIVERABLE E. DWA Sewer Consolidation Project Draft CWSRF Financial Package
150 CWSRF Potential Flags Worksheet
151 Three years of audited financial statements or tax
returns
152 Budget projections for at least the next two fiscal years 153 Rate adoption resolution or a copy of rates
DELIVERABLE C: Draft Env Docs
Begin Environmental Documents 4/10/2026
Admin Draft IS/MND
Public Review Draft IS/MND
DWA Draft IS/MND Submittal 9/25/2026
DELIVERABLE D: Final Env Docs
Final IS/MND
RTC Notification of Board Adoption 11/27/2026
Board Adoption 12/11/2026
NOD 12/15/2026
CEQA Plus
State/Fed Review
DWA CWSRF Construction App
DELIVERABLE E: Draft CWSRF Financial Package
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 2025 2026 2027
Cathedral City
Professional Design Services for
CWSRF Septic to Sewer Planning Project
Agreement No. D2401000

Page 5 ends

22 ID Task Name
154 Schedule of related debt, debt document copies (if
necessary), and/or a letter from the Authorized
Representative stating the Recipient has no debt.
155 City and District Review
156 Incorporate Comments
157 Draft Financial Package Submittal to State
158 Amendment Approval
159 Construction Package
160 CWSRF Review Period
161 DELIVERABLE F. DWA Sewer Consolidation Project CWSRF Construction Application and Review
162 2.4 DWA Consolidation Project Plans and Specifications 163 DELIVERABLE G. DWA Sewer Consolidation Project 30% Plans and Specifications
164 30% Plans and Specifications
165 QA/QC Review
166 Incorporate Comments
167 Potholing
168 City & DWA Review
169 30% Submittal to State
170 DELIVERABLE H. DWA Sewer Consolidation Project 60% Plans and Specifications
171 60% Plans and Specifications
172 QA/QC Review
173 Incorporate Comments
174 City & DWA Review
175 60% Submittal to State
176 DELIVERABLE I. DWA Sewer Consolidation Project 90% Plans and Specifications
177 90% Plans and Specifications
178 QA/QC Review
179 Incorporate Comments
180 City & DWA Review
181 90% Submittal to State
182 DELIVERABLE J. DWA Sewer Consolidation Project 100% Plans and Specifications
183 100% Plans and Specifications
184 QA/QC Review
185 Incorporate Comments
Draft Financial Package Submittal to State 5/4/2026
CWSRF Review Period
DELIVERABLE F: CWSRF Construction Application and Review DWA Plans & Specs
30%
30% Submittal to State 7/13/2026
60%
60% Submittal to State 11/27/2026
90%
90% Submittal to State 6/14/2027
100%
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 2025 2026 2027
Cathedral City
Professional Design Services for
CWSRF Septic to Sewer Planning Project
Agreement No. D2401000

Page 6 ends

23 ID Task Name
186 City & DWA Review
187 Bid Ready Contract Documents Bid Ready Contract Docs 8/30/2027 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 2025 2026 2027
Cathedral City
Professional Design Services for
CWSRF Septic to Sewer Planning Project
Agreement No. D2401000

Page 7 ends

24 EXHIBIT C
Fomotor Engineering Right of Way Proposal
25 FY 2025-26 Task Order 03: Plan Checking Services, Fomotor Eng, page 1 of 1 FY 2025-26 TASK ORDER 03 Survey and Mapping Services
Fomotor Engineering
February 23, 2026

SCOPE OF SERVICES
Fomotor Engineering is prepared to assist the City of Cathedral City as necessary to deliver this project. The services are outlined below.

TASKS:

Provide surveying and mapping services outlined below for the CWSRF Septic to Sewer Planning Project over APN 687-050-023 and 687-060-012 (The Royal Palms Mobile Home Park) and the Date Palm Right of Way:
• Review provided preliminary title reports and request/review Title Status Reports (TSRs) for Royal Palms Mobile Home Park
• Boundary research and record review necessary to support easement preparation • Field surveying (aerial and ground survey for mapping purposes), as required, to establish horizontal control and proposed easement limits.
• Preparation of base mapping base on record information and survey exhibits suitable for BIA review.
• Preparation of easement plats and legal descriptions for:
o Two (2) permanent utility easements along Date Palm Drive along the proposed sewer lines.
• One (1) temporary construction easement within Royal Palms Mobile Home Park. We propose easement strips along the approximate centerline of the existing roads of which sewer improvements are proposed.
• BIA coordination and support, including meetings, application submittals, and follow -up correspondence to facilitate easement approval
• Coordination with CVWD to confirm easement exhibit and legal description requirements. • Obtain 1-2 appraisals of land value of project easement and the incidental effects on existing land use. Assumptions include: 1) these acquisitions can indeed occur on tribal land, (2) that the mobile homes themselves could continue to be occupied during the term of construction, and (3) the TCE’s would not impact any homes or site improvements with the area of the TCE being restored to its original condition at the completion of construction.

FEE SCHEDULE
Above services shall be performed hourly for the hourly billing rates in the “Fomotor Engineering Cost Proposal’ in the July 1, 2025 On-call Engineering Support Services for Various City Engineering Department Projects’ agreement.

We project an approximate cost of $45,000.00 (excluding TSR fees, if any).

Accepted By:
_________________________________ ________________
Armando J.G. Baldizzone, P.E.- City Engineer Date
26 EXHIBIT D
Ardurra, Inc. PS&E Amendment Request
27 28

29 30

31 32

Increase in Pipeline and Septic Tank Installation
City of Cathedral City
Planning Study for CWSRF
2/5/2026
Pipeline Lengths NEW - Preferred Alternative
Woodard &
Curran, Report
Length (ft)
PER
Length
(ft)
Length
Increase
(ft) % Increase
8-inch pipeline Caliente Sands MHP - 1A 3500
Royal Palms MHP - 1B 9300
Whispering Palms - 1A 7000
South City - 1A 8600
Papaya & Pomegranate -1A 2600
TOTAL SUM 20,292 31,000 10,708 53%
10-inch pipeline Plumley Road Upsizing-1B (from 8-inch to 10-inch pipeline) 611 611 12- inch pipeline Plumley Road Upsizing-1B (from 10-inch to 12-inch pipeline) 0 710 TOTAL SUM 611 1,321 710 116%
27-inch pipeline upgrade NA 175 0
TOTAL SUM 175 0 -175 -100%
8-inch pipeline Lakeview Villa - 1D (8-inch pipeline) 3121 2600 12-inch pipeline Lakeview Villa - 1D (12-inch pipeline) 0 200 TOTAL SUM 3,121 2,800 -321 -10%
Total Length Increase 145%
Project Locations Proposal basis
Updated
Count
Count
Increase % Increase
Royal Palms MHP 1 74 73 7300%
Caliente Sands MHP 1 31 30 3000%
DWA Lakeview Villas 1 18 17 1700%
CVWD
Pipeline
Septic Tanks
DWA
CVWD
Pipe Length increase- JL 260205
33 EXHIBIT E
Proposed Budget Amendment and Revised Budget
34 PROPOSED AMENDMENT AND REVISED PROJECT BUDGET

DESCRIPTION AMOUNT
Amendment Costs CVWD Amendment Total DWA Amendment Total

1. Additional PS&E for greater amount of
connections/ design complexity in MHPs and Condo
HOA 298,360.00$ 268,524.00$ 29,836.00$

2. Easement Approval and BIA Coordination 45,000.00$ 45,000.00$ -$

3. Contigency for Easement Approval, TSR Fees 5,000.00$ 5,000.00$ -$ Total Amendment Cost 348,360.00$ 318,524.00$ 29,836.00$ Grant Funding Available (253,461.44)$
94,898.56$
2,474,070.00$
Amendment Request
Current Project Budget
Amendment Request 94,898.56$
Revised Project Budget 2,568,968.56$
35 EXHIBIT F
Proposed Budget Reallocation
36 PROPOSED REALLOCATION
Project Phase Current Allocation Proposed Allocation Net Change Notes Planning Grant Appliction 42,080.00$ 42,080.00$ -$ No change CVWD Sewer Project 1,652,000.00$ 1,906,535.35$ 254,535.35$ Current allocation + 91.44% of available amount to reallocate DWA Sewer Project 596,000.00$ 619,842.21$ 23,842.21$ Current allocation + 8.56% of available amount to reallocate Project Management 183,990.00$ 511.00$ (183,479.00)$ Reduced and reallocated to other phases TOTAL 2,474,070.00$ 2,568,968.56$ 94,898.56$
NOTES:

Total Revised Budget $2,568,968.56
Planning Grant Proposed Allocation (42,080.00)$
Project Management Proposed Allocation (511.00)$
CVWD Project Current Allocation (1,652,000.00)$
DWA Project Current Allocation (596,000.00)$
Available amount to reallocate 278,377.56 $
CVWD Project Phase share of amendment 91.44%
DWA Project Phase share of amendment 8.56%
CVWD Project Share (current allocation + 91.44%
amendment allocation) 1,906,535.35$
DWA Project Share (current allocation + 8.56% of
amendment allocation 619,842.21$
37 EXHIBIT G
Change in Authorized Representative
38 Cathedral City
February 19, 2026
State Water' Resources Control Board
Attn: Tricia Carter
1001 "I" Street, 16th Floor
Sacramento, CA 95814
Subject:

Dear Ms. Carter,
Septic to Sewer Planning Project, Project Number C-06-8696-110 Agreement Number 02401000
Designation of a Different Authorized Representative
Effective February 12, 2026, Andrew Firestine was appointed as the new City Manager for the City of Cathedral City. As the Interim Authorized Representative, I respectfully submit this notice to officially designate Mr. Firestine as the Authorized Representative for the Cathedral City Septic to Sewer Planning Project (Project Number C-06-8696-110).

Mr. Firestine will serve in this capacity for the remainder of the Project.

Respectf ully,
Anne V. Ambrose
Assistant City Manager, Interim Authorized Representative CC:

Andrew Firestine, City Manager
John A. Corella P.E, Public Works Director
Armando J. Garcia Baldizzone P.E., City Engineer
Elizabeth Medina, Engineering Analyst
39 CLEAN WATER PLANNING
LOAN (Principal Forgiveness)

AGREEMENT NO. D2401000

BY AND BETWEEN

CITY OF CATHEDRAL CITY (“Recipient”)

AND

CALIFORNIA STATE WATER RESOURCES CONTROL BOARD (“State Water Board”)

FOR THE PURPOSE OF THE

SEPTIC-TO-SEWER PLANNING PROJECT (“Project”)

PROJECT NO. C-06-8696-110
 Section 13475 et seq. of the Water Code, and Resolution Nos. 2023-0027 and 2019-0064.

AMENDMENT NO.1

PROJECT FUNDING AMOUNT: $2,474,070 $2,568,969
PRINCIPAL FORGIVENESS COMPONENT: $2,474,070 $2,568,969 ESTIMATED REASONABLE PROJECT COST: $2,474,070 $2,568,969

ELIGIBLE WORK START DATE: FEBURARY 1, 2022
WORK COMPLETION DATE: JUNE 30, 2027 MARCH 31, 2028
FINAL REIMBURSEMENT REQUEST DATE: DECEMBER 31, 2027 SEPTEMBER 30, 2028 RECORDS RETENTION END DATE: JUNE 30, 2063 MARCH 31, 2064 This Agreement executed by the State Water Board on August 5, 2024, is hereby amended and restated, to revise the cover page, the Agreement, and Exhibits A, B, and D (deletions shown as stricken and revisions bold and underlined). Except as noted herein all other terms and conditions shall remain the same. Please note, page numbers may have changed. $GREH$FUREDW6LJQ7UDQVDFWLRQ1XPEHU
&%-&+%&$$%$$T8,\$8X)9-2]KBFM5\X2N<[HX:
40 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 1 of 37 ends

Amendment No. 1

CWPlanning19x2023

1. The State Water Board and the Recipient mutually promise, covenant, and agree to the terms, provisions, and conditions of this Agreement, including the following Exhibits, which are attached hereto or are incorporated by reference:

 EXHIBIT A – SCOPE OF WORK AND SCHEDULE
 EXHIBIT B – FUNDING PROVISIONS
 EXHIBIT C – GENERAL TERMS AND CONDITIONS 2019-NOV
 EXHIBIT D – SPECIAL CONDITIONS

2. The following documents are also incorporated by reference, as well as any documents incorporated by reference in Exhibit D:
 the Waste Discharge Requirement Order No. R7-2014-0008, R7-2017-0013, R7-2018-0001 and any amendments thereto;

3. Party Contacts during the term of this Agreement are:

State Water Board City of Cathedral City
Section: Division of Financial Assistance
Name: Jonathan Miras, Tricia Carter,
Project Manager
Name: Charlie McClendon, Andrew
Firestine,
City Manager
Address: 1001 I Street, 16th Floor Address: 68700 Avenida Lalo Guerrero City,
State, Zip:

Sacramento,
CA 95814
City,
State, Zip:

Cathedral City,
CA 92234
Phone: (916) 319-9323
(916) 319-8258
Phone: (760) 770-0387
Email: [email protected]
[email protected]
Email: [email protected]
[email protected]

Each party may change its contact upon written notice to the other party. While Party Contacts are contacts for day-to-day communications regarding Project work, the Recipient must provide official communications and notices to the Division’s Deputy Director in addition to the Party Contacts.

4. Conditions precedent to this Agreement are set forth as follows:
(a) The Recipient must deliver to the Division a resolution authorizing this Agreement and identifying its authorized representative by title.
(b) The Recipient must deliver an opinion of general counsel satisfactory to the State Water Board’s counsel dated on or after the date that the Recipient signs this Agreement.

5. The Recipient represents, warrants, and commits to the following as of the Eligible Work Start Date and continuing thereafter for the term of this Agreement, which shall be at least until the Records Retention End Date:
(a) The Recipient agrees to comply with all terms, provisions, conditions, and commitments of this Agreement, including all incorporated documents.
(b) The execution and delivery of this Agreement, including all incorporated documents, has been duly authorized by the Recipient. Upon execution by both parties, this Agreement constitutes a valid and binding obligation of the Recipient, enforceable in accordance with its terms, except as such enforcement may be limited by law. 41 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 2 of 37 ends

Amendment No. 1

CWPlanning19x2023

(c) None of the transactions contemplated by this Agreement will be or have been made with an actual intent to hinder, delay, or defraud any present or future creditors of Recipient. The Recipient is solvent and will not be rendered insolvent by the transactions contemplated by this Agreement. The Recipient is able to pay its debts as they become due. The Recipient maintains sufficient insurance coverage considering the scope of this Agreement, including, for example but not necessarily limited to, general liability, automobile liability, workers compensation and employer liability, professional liability. (d) The Recipient is in compliance with all State Water Board funding agreements to which it is a party.

6. This Agreement, and any amendments hereto, may be executed and delivered in any number of counterparts, each of which when delivered shall be deemed to be an original, but such counterparts shall together constitute one document. The parties may sign this Agreement, and any amendments hereto, either by an electronic signature using a method approved by the State Water Board or by a physical, handwritten signature. The parties mutually agree that an electronic signature using a method approved by the State Water Board is the same as a physical, handwritten signature for the purposes of validity, enforceability, and admissibility.

42 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 3 of 37 ends

Amendment No. 1

CWPlanning19x2023

IN WITNESS WHEREOF, this Agreement Amendment has been executed by the parties hereto.

CITY OF CATHEDRAL CITY:

By:____________________________________
Name: Andrew Firestine
Title: City Manager

Date:__________________________________

STATE WATER RESOURCES CONTROL BOARD:

By:____________________________________
Name: Joe Karkoski
Title: Deputy Director
Division of Financial Assistance

Date:__________________________________

May 27, 2026
May 27, 2026
$GREH$FUREDW6LJQ7UDQVDFWLRQ1XPEHU
&%-&+%&$$%$$T8,\$8X)9-2]KBFM5\X2N<[HX:
43 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 4 of 37 ends

Amendment No. 1

Exhibit A
EXHIBIT A – SCOPE OF WORK AND SCHEDULE
A.1 PROJECT PURPOSE AND DESCRIPTION.

The Project is for the benefit of the Recipient. The funding under this Agreement shall be used to evaluate, design, and develop documents necessary to connect six residential areas - Lakeview Condos, Whispering Palms Neighborhood, South City, Caliente Sands Mobile Home Park (MHP), Royal Palms MHP, and Papaya/Pomegranate Lane - currently utilizing septic tanks to either Coachella Valley Water District's or Desert Water Agency's municipal sewer systems.

A.2 SCOPE OF WORK.

ITEM DESCRIPTIONS
1 CWSRF Planning Application

1.1 Prepare and submit a complete CWSRF Planning Application.

Item 1 Submittal:
a) CWSRF Planning Application

2 Coachella Valley Water District (CVWD) Sewer Consolidation Project

2.1 CVWD Sewer Consolidation Project Preliminary Engineering Report:

 Prepare a Preliminary Engineering Report per the CWSRF Policy to evaluate the connection of five residential areas – Whispering Palms Neighborhood, South City, Caliente Sands Mobile Home Park (MHP), Royal Palms MHP, and Papaya Pomegranate Lane – to CVWD’s municipal sewer system; and  Describe the existing facilities, problems to be addressed, and all feasible alternatives, including regional or consolidation alternatives. The evaluation must include life cycle costs for each alternative with a breakdown of total capital, operation and maintenance (O&M), and replacement costs. The Final Preliminary Engineering Report must be signed and stamped by a Professional Engineer.

2.2 CVWD Sewer Consolidation Project Environmental Documents:

 Prepare California Environmental Quality Act (CEQA) documents;  If necessary, prepare National Environmental Protection Act-like (NEPA-like) documents, such as a Section 7 biological report and a Section 106 cultural report;  Circulate the CEQA document(s) for public comment; and  Finalize the CEQA document(s) with responses to comments received, resolution adopting the CEQA document(s), and filed Notice of Determination (NOD).

2.3 CVWD Sewer Consolidation Project CWSRF Construction Application:

 Complete and submit a Draft CWSRF Construction Financial Package that includes the following:
o CWSRF Potential Flags Worksheet;
o Three years of audited financial statements or tax returns; o Budget projections for at least the next two fiscal years; o Rate adoption resolution or a copy of rates; and
o Schedule of related debt, debt document copies (if necessary), and/or a letter from the Authorized Representative stating the Recipient has no debt. 44 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 5 of 37 ends

Amendment No. 1

Exhibit A

ITEM DESCRIPTIONS
 Prepare and submit a two (2) complete CWSRF Construction Applications. o CWSRF Construction Application 1: South City Neighborhood, Whispering Palms Neighborhood, and Papaya/Pomegranate Lane o CWSRF Construction Application 2: Royal Palms Mobile Home Park and Caliente Sands Mobile Home Park

2.4 CVWD Consolidation Project Plans and Specifications:

 Prepare 30% draft plans and specifications and draft opinion of probable construction costs;
 Prepare and submit 60% plans and specifications and revised opinion of probable construction costs;
 Prepare and submit 90% plans and specifications and revised opinion of probable construction costs; and
 Prepare and submit 100% plans and specifications and revised opinion of probable construction costs.

2.5 Right-of-Way
 Easement plats and legal descriptions for required permanent and temporary construction easements for project areas within Tribal Trust land requiring Bureau of Indian Affairs (BIA) coordination and approval. Actual purchase costs of land and permanent easements are not reimbursable under this Agreement, but may be eligible for reimbursement under a potential future construction funding agreement.

Item 2 Submittals:
a) CVWD Sewer Consolidation Project Draft Preliminary Engineering Report b) CVWD Sewer Consolidation Project Final Preliminary Engineering Report c) CVWD Sewer Consolidation Project Draft Environmental Documents d) CVWD Sewer Consolidation Project Final Environmental Documents e) CVWD Sewer Consolidation Project Draft CWSRF Financial Package f) e) CVWD Sewer Consolidation Project CWSRF Construction Applications (2) g) f) CVWD Sewer Consolidation Project 30% Plans and Specifications h) g) CVWD Sewer Consolidation Project 60% Plans and Specifications i) h) CVWD Sewer Consolidation Project 90% Plans and Specifications j) i) CVWD Sewer Consolidation Project 100% Plans and Specifications j) Easement Approval by Bureau of Indian Affairs (BIA)
3 Desert Water Agency (DWA) Sewer Consolidation Project

3.1 DWA Sewer Consolidation Project Preliminary Engineering Report:

 Prepare a Preliminary Engineering Report per the CWSRF Policy to evaluate the connection of Lakeview Condos to DWA's municipal sewer system; and  Describe the existing facilities, problems to be addressed, and all feasible alternatives, including regional or consolidation alternatives. The evaluation must include life cycle costs for each alternative with a breakdown of total capital, operation and maintenance (O&M), and replacement costs. The Final Preliminary Engineering Report must be signed and stamped by a Professional Engineer.

3.2 DWA Sewer Consolidation Project Environmental Documents:

 Prepare California Environmental Quality Act (CEQA) documents; 45 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 6 of 37 ends

Amendment No. 1

Exhibit A

ITEM DESCRIPTIONS
 If necessary, prepare National Environmental Protection Act-like (NEPA-like) documents, such as a Section 7 biological report and a Section 106 cultural report;  Circulate the CEQA document(s) for public comment;
 Finalize the CEQA document(s) with responses to comments received, resolution adopting the CEQA document(s), and filed NOD.

3.3 DWA Sewer Consolidation Project CWSRF Construction Application:

 Prepare and submit a complete CWSRF Construction Application.

3.4 DWA Consolidation Project Plans and Specifications:

Item 3 Submittals:
a) DWA Sewer Consolidation Project Draft Preliminary Engineering Report b) DWA Sewer Consolidation Project Final Preliminary Engineering Report c) DWA Sewer Consolidation Project Draft Environmental Documents d) DWA Sewer Consolidation Project Final Environmental Documents e) DWA Sewer Consolidation Project Draft CWSRF Financial Package f) e) DWA Sewer Consolidation Project CWSRF Construction Application g) f) DWA Sewer Consolidation Project 30% Plans and Specifications h) g) DWA Sewer Consolidation Project 60% Plans and Specifications i) h) DWA Sewer Consolidation Project 90% Plans and Specifications j) i) DWA Sewer Consolidation Project 100% Plans and Specifications 4 Project Management

4.1 Monitor Project budget and schedule.

4.2 Prepare and submit progress reports and reimbursement requests.

4.3 Coordinate with Project stakeholders, attend Project meetings, provide status updates, and respond to questions.

Item 4 Submittal:
a) N/A
46 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 7 of 37 ends

Amendment No. 1

Exhibit A
A.3 SCHEDULE.

Failure to provide items by the due dates indicated in the table below may constitute a material violation of this Agreement. The Project Manager may adjust the dates in the “Estimated Due Date” column of this table, but Critical Due Date adjustments will require an amendment to this Agreement. The Recipient must complete and submit all work in time to be approved by the Division prior to the Work Completion Date. As applicable for specific submittals, the Recipient must plan adequate time to solicit, receive, and address comments prior to submitting the final submittal. The Recipient must submit the final Reimbursement Request prior to the Final Reimbursement Request Date set forth on the Cover Page.

ITEM DESCRIPTION OF SUBMITTALS CRITICAL DUE
DATE

ESTIMATED DUE
DATE

SCOPE OF WORK
1 CWSRF Planning Application
a) CWSRF Planning Grant Application

N/A

Complete
2 Coachella Valley Water District (CVWD)
Sewer Consolidation Project
a) CVWD Sewer Consolidation Project
Draft Preliminary Engineering Report

b) CVWD Sewer Consolidation Project
Final Preliminary Engineering Report

c) CVWD Sewer Consolidation Project
Draft Environmental Documents

d) CVWD Sewer Consolidation Project
Final Environmental Documents

e) CVWD Sewer Consolidation Project
Draft CWSRF Financial Package

f) e) CVWD Sewer Consolidation Project
CWSRF Construction Applications (2)

g)f)CVWD Sewer Consolidation Project
30% Plans and Specifications

h)g)CVWD Sewer Consolidation Project
60% Plans and Specifications

i)h)CVWD Sewer Consolidation Project
90% Plans and Specifications

j)i) CVWD Sewer Consolidation Project
100% Plans and Specifications

j) Easement Approval by Bureau of Indian Affairs (BIA)

N/A

February 28, 2025
Complete

May 31, 2025
Complete

May 31, 2025
October 31, 2026

July 31, 2025
March 31, 2027

February 28, 2025

August 30, 2025
November 30, 2026

December 31, 2025
August 31, 2026

March 31, 2026
April 30, 2027

June 30, 2026
July 31, 2027

December 31, 2026
September 30, 2027 September 30, 2027
47 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 8 of 37 ends

Amendment No. 1

Exhibit A

ITEM DESCRIPTION OF SUBMITTALS CRITICAL DUE
DATE

ESTIMATED DUE
DATE
3 Desert Water Agency (DWA) Sewer
Consolidation Project
a) DWA Sewer Consolidation Project
Draft Preliminary Engineering Report

b) DWA Sewer Consolidation Project
Final Preliminary Engineering Report

c) DWA Sewer Consolidation Project
Draft Environmental Documents

d) DWA Sewer Consolidation Project
Final Environmental Documents

e) DWA Sewer Consolidation Project
Draft CWSRF Financial Package

f)e) DWA Sewer Consolidation Project
CWSRF Construction Application

g)f) DWA Sewer Consolidation Project
30% Plans and Specifications

h)g) DWA Sewer Consolidation Project
60% Plans and Specifications

i)h) DWA Sewer Consolidation Project
90% Plans and Specifications

j)i) DWA Sewer Consolidation Project
100% Plans and Specifications

N/A

February 28, 2025
Complete

May 31, 2025
Complete

May 31, 2025
October 31, 2026

July 31, 2025
March 31, 2027

February 28, 2025

August 30, 2025
November 30, 2026

December 31, 2025
August 31, 2026

March 31, 2026
December 31, 2026

June 30, 2026
June 30, 2027

December 31, 2026
August 31, 2027
4 Project Management
a) N/A

N/A

REPORTS
Progress Reports Quarterly
As Needed Reports As Needed

REIMBURSEMENT REQUESTS
Reimbursement Request As Needed
Final Reimbursement Request December 31, 2027
September 30,
2028
N/A

The Recipient must deliver any request for extension of the Work Completion Date no less than 90 days prior to the Work Completion Date.

The Division may require corrective work to be performed prior to Project Completion. Any work occurring after the Work Completion Date will not be reimbursed under this Agreement.

48 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 9 of 37 ends

Amendment No. 1

Exhibit A
A.4 PROGRESS REPORTS.

The Recipient must provide a progress report to the Division each quarter, beginning no later than 90 days after execution of this Agreement. The Recipient must provide a progress report with each Reimbursement Request. Failure to provide a complete and accurate progress report may result in the withholding of Project Funds. A progress report must contain the following information:
1) A summary of progress to date including a description of progress since the last report, amount budgeted, amount spent, and percent completion for each task; 2) Statement indicating if all critical due dates are on track; 3) Statement indicating if all deliverable due dates are on track; 4) A description of compliance with any special conditions; and 5) Any problems encountered, proposed resolution, schedule for resolution, and status of previous problem resolutions.

A.5 DISADVANTAGED BUSINESS ENTERPRISE REPORTS. Reserved.

The Recipient shall comply with the Disadvantaged Business Enterprises (DBE) requirements in 40 CFR § 33.301 for the Project and require its contractors and subcontractors on the Project to comply. 40 CFR § 33.301 requires the use of good faith efforts to utilize DBE’s whenever procuring construction, equipment, services, and supplies. The Recipient must report DBE utilization to the Division on the DBE Utilization Report, State Water Board Form DBE UR334. The Recipient must submit such reports to the Division annually within ten (10) calendar days following October 1 until such time as the "Notice of Completion" is issued.
49 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 10 of 37 ends

Amendment No. 1

Exhibit B
EXHIBIT B – FUNDING PROVISIONS
B.1 ESTIMATED REASONABLE COST AND PROJECT FUNDS.

The estimated reasonable cost of the total Project is set forth on the Cover Page of this Agreement, and is greater than or equal to the funding anticipated to be provided by the State Water Board under this Agreement. Subject to the terms of this Agreement, the State Water Board agrees to provide Project Funds not to exceed the amount of the Project Funding Amount set forth on the Cover Page of this Agreement.

B.2 RECIPIENT CONTRIBUTIONS.

The Recipient must pay any and all costs connected with the Project including, without limitation, any and all Project Costs. If the Project Funds are not sufficient to pay the Project Costs in full, the Recipient must nonetheless complete the Project and pay that portion of the Project Costs in excess of available Project Funds, and shall not be entitled to any reimbursement therefor from the State Water Board.

The loan component of this Agreement is forgiven. The estimated amount of principal that will be due to the State Water Board from the Recipient under this Agreement is Zero dollars and no cents ($0.00).

B.3 VERIFIABLE DATA.

Upon request by the Division, the Recipient must submit verifiable data to support deliverables specified in the Scope of Work. The Recipient’s failure to comply with this requirement may be construed as a material breach of this Agreement.

B.4 BUDGET COSTS
Budget costs are contained in the Summary Project Cost Table below:

ITEM DESCRIPTION PROJECT

FUNDING AMOUNT
TOTAL

ESTIMATED COSTS
1 CWSRF Planning Application $42,080 $42,080
2 Coachella Valley Water District (CVWD)
Sewer Consolidation Project
$1,652,000
$1,906,536
$1,652,000
$1,906,536
3 Desert Water Agency (DWA) Sewer
Consolidation Project $596,000
$619,842
$596,000
$619,842
4 Project Management $183,990
$511
$183,990
$511
TOTAL $2,474,070
$2,568,969
$2,474,070
$2,568,969

The Division’s Form 260 and Form 261 will document a more detailed budget of eligible Project Costs and Project funding amounts.

The Recipient is prohibited from requesting disbursement amounts that represent Recipient’s mark-ups to costs invoiced or otherwise requested by consultants or contractors.

Project Costs incurred prior to the Eligible Work Start Date on the cover page of this Agreement are not eligible for reimbursement.
50 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 11 of 37 ends

Amendment No. 1

Exhibit B
Reasonable indirect costs may be allowable upon approval by the Division.

B.5 LINE ITEM ADJUSTMENTS.

Subject to the prior review and approval of the Division, adjustments between existing budget line items may be used to defray allowable direct costs. Budget adjustments deleting a budget line item or adding a new budget line item shall require a formal amendment. The sum of adjusted line items in the budget must not exceed the total budget amount. The Division may propose budget adjustments.

B.6 REIMBURSEMENT PROCEDURE.

Except as may be otherwise provided in this Agreement, reimbursements will be made as follows:

1. Upon execution and delivery of this Agreement by both parties, the Recipient may request immediate reimbursement of any eligible incurred costs through submission to the State Water Board of the Reimbursement Request Form 260 and Form 261, or any amendment thereto, duly completed and executed. To be eligible for reimbursement, Project Costs, including planning and design allowance costs, must have been incurred in compliance with all applicable requirements, including the cross-cutting requirements listed in Exhibits C and D.

2. The Recipient must submit a Reimbursement Request for costs incurred prior to the date this Agreement is executed by the State Water Board no later than ninety (90) days after this Agreement is executed by the State Water Board. Late Reimbursement Requests may not be honored.

3. Additional Project Funds will be promptly disbursed to the Recipient upon receipt of Reimbursement Request Form 260 and Form 261, or any amendment thereto, duly completed and executed by the Recipient for incurred costs consistent with this Agreement, along with receipt of progress reports due under this Agreement.

4. The Recipient must not request reimbursement for any Project Cost until such cost has been incurred and is currently due and payable by the Recipient, although the actual payment of such cost by the Recipient is not required as a condition of Reimbursement Request. Supporting documentation (e.g., receipts) must be submitted with each Reimbursement Request. The amount requested for Recipient’s administration costs must include a calculation formula (i.e., hours or days worked times the hourly or daily rate = total amount claimed). Reimbursement of Project Funds will be made only after receipt of a complete, adequately supported, properly documented, and accurately addressed Reimbursement Request. Upon request by the Division, supporting documents for professional and administrative services must include the employees’ names, classifications, labor rates, hours worked, and descriptions of the tasks performed.

Reimbursement Requests submitted without supporting documents may be wholly or partially withheld at the discretion of the Division.

5. The Division may withhold disbursements where costs incurred do not reflect actual time spent.

6. The Recipient must spend Project Funds within 30 days of receipt. If the Recipient earns interest earned on Project Funds, it must report that interest immediately to the State Water Board. The State Water Board may deduct earned interest from future reimbursements.

7. The Recipient must not request a reimbursement unless that Project Cost is allowable, reasonable, and allocable.

8. The Recipient must submit all draft deliverables prior to reimbursement beyond 70 percent of the Project Funding Amount, and it must submit all final deliverables to the Division prior to reimbursement beyond 90 percent of the Project Funding Amount.

9. Notwithstanding any other provision of this Agreement, no reimbursement shall be required at any time or in any manner which is in violation of or in conflict with federal or state laws, policies, or regulations.

51 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 12 of 37 ends

Amendment No. 1

Exhibit B
Notwithstanding any other provision of this Agreement, the Recipient agrees that the State Water Board may retain an amount equal to ten percent (10%) of the Project Funding Amount until Project Completion.

Any retained amounts due to the Recipient will be promptly disbursed to the Recipient, without interest, upon Project Completion.

B.7 REVERTING FUNDS AND DISENCUMBRANCE.

In the event the Recipient does not submit Reimbursement Requests for all funds encumbered under this Agreement timely, any remaining funds revert to the State. The State Water Board may notify the Recipient that the project file is closed, and any remaining balance will be disencumbered and unavailable for further use under the Agreement.

52 City of Cathedral City
Project No. C-06-8696-110
Agreement No.: D2401000

Page 13 of 37 ends

Amendment No. 1

Exhibit C
EXHIBIT C – GENERAL TERMS AND CONDITIONS 2019-NOV

GENERAL TERMS AND CONDITIONS 2019-NOV is posted at
https://www.waterboards.ca.gov/water_issues/programs/grants_loans/general_terms.html and replicated below:

1. DEFINITIONS. Unless otherwise specified in this Agreement, each capitalized term used in this Agreement has the following meaning:
 “Agreement” means this agreement, including all exhibits and attachments hereto.  “Cover Page” means the front page of this Agreement.
 “Days” means calendar days unless otherwise expressly indicated.  “Deputy Director” means the Deputy Director of the Division.  “Division” means the Division of Financial Assistance of the State Water Board or any other division or unit of the State Water Board authorized to administer this Agreement.  “Event of Default” means the occurrence of any of the following events:
a) A representation or warranty made by or on behalf of the Recipient in this Agreement or in any document furnished by or on behalf of the Recipient to the State Water Board pursuant to this Agreement shall prove to have been inaccurate, misleading or incomplete in any material respect;
b) Failure by the Recipient to observe and perform any covenant, condition, or provision in this Agreement, which failure shall continue for a period of time, to be determined by the Division;
c) Initiation of proceedings seeking arrangement, reorganization, or any other relief under any applicable bankruptcy, insolvency, or other similar law; the appointment of or taking possession of the Recipient’s property by a receiver, liquidator, assignee, trustee, custodian, conservator, or similar official; the Recipient’s entering into a general assignment for the benefit of creditors; the initiation of resolutions or proceedings to terminate the Recipient’s existence, or any action in furtherance of any of the foregoing;
d) A determination pursuant to Gov. Code section 11137 that the Recipient has violated any provision in Article 9.5 of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code; or
e) Loss of the Recipient’s rights, licenses, permits, or privileges necessary for the Project, or the occurrence of any material restraint on the Recipient’s enterprise by a government agency or court order.
 “Final Reimbursement Request Date” means the date set forth as such on the Cover Page of this Agreement, after which date, no further reimbursements or disbursements may be requested.
 “Fiscal Year” means the period of twelve (12) months terminating on June 30 of any year. 53 City of Cathedral City
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 “GAAP” means generally accepted accounting principles, the uniform accounting and reporting procedures set forth in publications of the American Institute of Certified Public Accountants or its successor, or by any other generally accepted authority on such procedures, and includes, as applicable, the standards set forth by the Governmental Accounting Standards Board or its successor, or the Uniform System of Accounts, as adopted by the California Public Utilities Commission for water utilities.  “Material Obligation” means an obligation of the Recipient that is material to this transaction.  “Party Contact” means, for the Recipient, the Authorized Representative of the Recipient or any designee of the Authorized Representative, and, for the State Water Board, the Division staff set forth in Section 2 of this Agreement.
 “Project” means the Project funded by this Agreement as described in Exhibits A and B and in the documents incorporated by reference herein.
 “Project Completion” means, as determined by the Division, that the Project is complete to the reasonable satisfaction of the Division.
 “Project Costs” means the incurred costs of the Recipient which are eligible for funding under this Agreement, pursuant to applicable statutes, policy, regulations, or guidelines.  “Project Funding Amount” means the maximum amount payable under this Agreement, as set forth on the Cover Page.
 “Project Funds” means all moneys disbursed to the Recipient by the State Water Board for eligible Project Costs pursuant to this Agreement.
 “Project Manager” means the person designated by the State Water Board to manage performance of this Agreement. The Project Manager is set forth on the Cover Page.  “Records Retention End Date” means the last date that the Recipient is obligated to maintain records related to this Agreement and is set forth on the Cover Page of this Agreement.  “Regional Water Quality Control Board” or “Regional Water Board” means the appropriate Regional Water Quality Control Board.
 “Reimbursement Period” means the period during which Project Funds may be disbursed.  “Reimbursement Request” means the Recipient’s request for Project Funds from the State Water Board as set forth in Exhibit B.
 “State” means State of California.
 “State Water Board” means the State Water Resources Control Board.  “Work Completion” means the Recipient’s submittal of all work set forth under Exhibit A for review and approval by the Division.
 “Work Completion Date” means the date set forth on the Cover Page of this Agreement and is the last date on which Project Costs may be incurred under this Agreement. 54 City of Cathedral City
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 “Year” means calendar year unless otherwise expressly indicated.

2. ACCESS, INSPECTION, AND PUBLIC RECORDS. The Recipient must ensure that the State Water Board, the State Auditor, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times through the Records Retention End Date or useful life of the Project, whichever is longer. The Recipient acknowledges that, except for a subset of information regarding archaeological records and personally identifiable information, the Project records and locations may be public records, including but not limited to all of the submissions accompanying the application, all of the documents incorporated into this Agreement by reference, and all reports, Reimbursement Requests, and supporting documentation submitted hereunder.

3. ACCOUNTING AND AUDITING STANDARDS; FINANCIAL MANAGEMENT SYSTEMS. The Recipient must maintain GAAP-compliant project accounts, including GAAP requirements relating to the reporting of infrastructure assets. Without limitation of the requirement to maintain Project accounts in accordance with GAAP, the Recipient must:
(a) Establish an official file for the Project which adequately documents all significant actions relative to the Project;
(b) Establish separate accounts which will adequately and accurately depict all amounts received and expended on the Project, including all Project Funds received under this Agreement; (c) Establish separate accounts which will adequately depict all income received which is attributable to the Project, specifically including any income attributable to Project Funds disbursed under this Agreement;
(d) Establish an accounting system which will accurately depict final total costs of the Project if authorized under this Agreement;
(e) Establish such accounts and maintain such records as may be necessary for the State to fulfill federal reporting requirements, including any and all reporting requirements under federal tax statutes or regulations; and
(f) If the Recipient uses its own employees, equipment, or resources for any phase of the Project, accounts will be established which reasonably document all employee hours charged to the Project and the associated tasks performed by each employee.

4. AMENDMENT. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by both the Recipient and the Deputy Director or designee and approved as required.

5. ASSIGNABILITY. This Agreement is not assignable by the Recipient, either in whole or in part, without the consent of the State Water Board. Amendment of the Agreement may be required.

6. AUDIT. The Division may call for an audit of financial information relative to the Project if the Division determines that an audit is desirable to assure program integrity or if an audit becomes necessary because of State or federal requirements. If an audit is called for, the audit must be performed by a certified public accountant independent of the Recipient and at the cost of the Recipient. The audit must be in the form required by the Division. The Recipient must return, or ensure the return of, any audit disallowances within 30 days. 55 City of Cathedral City
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7. BONDING. Where construction contractors are used, the Recipient must not authorize construction to begin until each contractor has furnished a performance bond in favor of the Recipient in the following amounts: faithful performance (100%) of contract value; labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00.

8. COMPETITIVE BIDDING. Recipient must adhere to any applicable State law or local ordinance for competitive bidding and applicable labor laws. If Recipient is a private entity, any construction contracts related in any way to the Project must be let by competitive bid procedures which assure award of such contracts to the lowest responsive and responsible bidders. Recipient must not award a construction contract until a summary of bids and identification of the selected lowest responsible bidder is submitted to and approved in writing by the Division. Recipient must provide a full explanation if Recipient is proposing to award a construction contract to anyone other than the lowest responsible bidder.

9. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REQUIREMENTS. The Recipient must, at all times, comply with and require its contractors and subcontractors to comply with all applicable federal and State laws, rules, guidelines, regulations, and requirements and with provisions of the adopted environmental mitigation plan, if any, for the useful life of the Project.

10. COMPUTER SOFTWARE. The Recipient certifies that it has appropriate systems and controls in place to ensure that State funds will not be used in the performance of this Agreement for the acquisition, operation or maintenance of computer software in violation of copyright laws.

11. CONFLICT OF INTEREST. The Recipient certifies that it, its owners, officers, directors, agents, representatives, and employees are in compliance with applicable State and federal conflict of interest laws and will remain in compliance for the useful life of the Project. Any service provider or contractor with which the Recipient contracts must not have any role or relationship with the Recipient, that, in effect, substantially limits the Recipient's ability to exercise its rights, including cancellation rights, under the contract, based on all the facts and circumstances. Public entities are required to have adopted conflict of interest codes and may be required to provide documentation of those codes to the Division.

12. DATA MANAGEMENT. The Recipient will undertake appropriate data management activities so that Project data can be incorporated into statewide data systems.

13. DEBARRED, DISQUALIFIED, OR EXCLUDED CONTRACTORS. The Recipient must not contract or allow subcontracting with excluded parties. The Recipient must not contract with any party who is debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which this funding is authorized. For any work related to this Agreement, the Recipient must not contract with any individual or organization on the State Water Board’s List of Disqualified Businesses and Persons that is identified as debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which funding under this Agreement is authorized. The State Water Board’s List of Disqualified Businesses and Persons is located at http://www.waterboards.ca.gov/water_issues/programs/enforcement/fwa/dbp.shtml

14. DRUG-FREE WORKPLACE. The Recipient certifies that it will provide a drug-free workplace in compliance with the Drug-Free Workplace Act (Gov. Code. §§ 8350-8357). The Recipient shall publish a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the Recipient’s workplace and specifying the actions to be taken against employees for violations of the prohibition. The 56 City of Cathedral City
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Recipient shall establish a drug-free awareness program to inform employees about the dangers of drug abuse in the workplace, the Recipient’s policy of maintaining a drug-free workplace, any available drug counseling, rehabilitation and employee assistance programs, and penalties that may be imposed upon employees for drug abuse violations. The Recipient shall provide that every employee who works on the Project receives a copy of the Recipient’s drug-free workplace policy statement and agrees to abide by the terms of the statement as a condition of employment on the Project.

15. ENVIRONMENTAL CLEARANCE. No work that is subject to California Environmental Quality Act (CEQA) or the National Environmental Policy Act (NEPA) may proceed under this Agreement until the State Water Board has provided approval to proceed. Upon receipt and review of the Recipient’s environmental documents, the State Water Board shall make the appropriate environmental findings before determining whether to approve construction or implementation funding for the Project under this Agreement. Providing approval for such construction or implementation funding is fully discretionary. The State Water Board may require changes in the scope of work or additional mitigation as a condition to providing construction or implementation funding under this Agreement. Recipient shall not perform any work subject to CEQA and/or NEPA before the State Water Board completes its environmental review and specifies any changes in scope or additional mitigation that may be required. Proceeding with work subject to CEQA and/or NEPA without approval by the State Water Board shall constitute a breach of a material provision of this Agreement. If this Project includes modification of a river or stream channel, the Recipient must fully mitigate environmental impacts resulting from the modification.

The Recipient must provide documentation that the environmental impacts resulting from such modification will be fully mitigated considering all of the impacts of the modification and any mitigation, environmental enhancement, and environmental benefit resulting from the Project, and whether, on balance, any environmental enhancement or benefit equals or exceeds any negative environmental impacts of the Project.

16. FINAL REIMBURSEMENT REQUEST. The Recipient agrees to ensure that its final Reimbursement Request is received by the Division no later than the Final Reimbursement Request Date, unless prior approval has been granted by the Division. If the final Reimbursement Request is not received timely, the undisbursed balance of this Agreement may be deobligated.

17. FRAUD AND MISUSE OF PUBLIC FUNDS. All requests for disbursement must be accurate and signed by the Recipient or its Authorized Representative under penalty of perjury. All costs submitted pursuant to this Agreement must only be for the work or tasks set forth in this Agreement. The Recipient must not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., match costs). Any costs for which the Recipient is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other cost is improper and will not be compensated. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements and, notwithstanding any other section in this Agreement, the termination of this Agreement requiring the immediate repayment of all funds disbursed hereunder. Additionally, the Deputy Director of the Division may request an audit and refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability.

18. FUNDING CONTINGENCY. The State Water Board’s disbursement of funds hereunder is contingent on the Recipient’s compliance with the terms and conditions of this Agreement. The State Water Board's obligation to disburse funds is contingent upon the availability of sufficient funds to permit the disbursements provided for herein. If sufficient funds are not available for any 57 City of Cathedral City
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reason, including but not limited to failure of the federal or State government to appropriate funds necessary for disbursement of funds, the State Water Board shall not be obligated to make any disbursements to the Recipient under this Agreement. If this Agreement’s funding for any fiscal year expires due to reversion or is reduced, substantially delayed, or deleted by the Budget Act, by Executive Order, or by order or action of the Department of Finance, the State Water Board has the option to either cancel this Agreement with no liability accruing to the State Water Board, or offer an amendment to the Recipient to reflect the reduced amount. This provision shall be construed as a condition precedent to the obligation of the State Water Board to make any disbursements under this Agreement. Nothing in this Agreement shall be construed to provide the Recipient with a right of priority for disbursement over any other entity. If any disbursements due the Recipient under this Agreement are deferred because sufficient funds are unavailable, it is the intention of the State Water Board that such disbursement will be made to the Recipient when sufficient funds do become available, but this intention is not binding.

19. GOVERNING LAW. This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.

20. RECIPIENT’S SHARE. The Recipient agrees that it will provide for the payment of its full share, if any share is required, of Project Costs and that all costs connected with the Project will be timely paid by the Recipient.

21. INDEMNIFICATION AND STATE REVIEWS. The parties agree that review or approval of Project plans and specifications by the State Water Board is for administrative purposes only, including conformity with application and eligibility criteria, and expressly not for the purposes of design defect review or construction feasibility, and does not relieve the Recipient of its responsibility to properly plan, design, construct, operate, and maintain the Project. To the extent permitted by law, the Recipient agrees to indemnify, defend, and hold harmless the State Water Board and any trustee, and their officers, employees, and agents for the Bonds, if any (collectively, "Indemnified Persons"), against any loss or liability arising out of any claim or action brought against any Indemnified Persons from and against any and all losses, claims, damages, liabilities, or expenses, of every conceivable kind, character, and nature whatsoever arising out of, resulting from, or in any way connected with (1) the Project or the conditions, occupancy, use, possession, conduct, or management of, work done in or about, or the planning, design, acquisition, installation, or construction, of the Project or any part thereof; (2) the carrying out of any of the transactions contemplated by this Agreement or any related document; (3) any violation of any applicable law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the Toxic Substances Control Act, the Occupational Safety and Health Act, the Safe Drinking Water Act, the California Hazardous Waste Control Law, and California Water Code Section 13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the Project; or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein, in light of the circumstances under which they were made, not misleading with respect to any information provided by the Recipient for use in any disclosure document utilized in connection with any of the transactions contemplated by this Agreement, except those arising from the gross negligence or willful misconduct of the Indemnified Persons. The Recipient must also provide for the defense and indemnification of the Indemnified Persons in any contractual provision extending indemnity to the Recipient in any contract let for the performance of any work under this Agreement, and must cause the Indemnified Persons to be included within the scope of any provision for the indemnification and defense of the Recipient in any contract or subcontract. To the fullest extent permitted by law, the Recipient agrees to pay and discharge any judgment or award entered or 58 City of Cathedral City
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made against Indemnified Persons with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section survive the term of this Agreement.

22. INDEPENDENT ACTOR. The Recipient, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State Water Board.

23. INSPECTION. Throughout the useful life of the Project, the State Water Board shall have the right to inspect the Project area to ascertain compliance with this Agreement.

24. INTEGRATION. This Agreement constitutes the complete and final agreement between the parties. No oral or written understanding or agreement not incorporated in this Agreement shall be binding on either party.

25. LIENS. The Recipient must not make any pledge of or place any lien on the Project or Project assets except upon consent of the Division.

26. NO DISCRIMINATION. The Recipient must comply with Government Code section 11135 and the implementing regulations (Cal. Code Regs, tit. 2, § 11140 et seq.), including, but not limited to, ensuring that no person is unlawfully denied full and equal access to the benefits of, or unlawfully subjected to discrimination in the operation of, the Project on the basis of sex, race, color, religion, ancestry, national origin, ethnic group identification, age, mental disability, physical disability, medical condition, genetic information, marital status, or sexual orientation as such terms are defined under California law, for as long as the Recipient retains ownership or possession of the Project. If Project Funds are used to acquire or improve real property, the Recipient must include a covenant of nondiscrimination running with the land in the instrument effecting or recording the transfer of such real property. The Recipient must comply with the federal American with Disabilities Act of 1990 and implementing regulations as required by Government Code section 11135(b). The Recipient’s obligations under this section shall survive the term of this Agreement. During the performance of this Agreement, Recipient and its contractors and subcontractors must not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, sexual orientation, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, denial of family care leave, or genetic information, gender, gender identity, gender expression, or military and veteran status.

The Recipient, its contractors, and subcontractors must ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. The Recipient, its contractors, and subcontractors must comply with the provisions of the Fair Employment and Housing Act and the applicable regulations promulgated thereunder. (Gov. Code, §12990, subds. (a)-(f) et seq.;Cal. Code Regs., tit. 2, § 7285 et seq.) Such regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full. The Recipient, its contractors, and subcontractors must give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. The Recipient must include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement.

27. NO THIRD-PARTY RIGHTS. This Agreement creates no rights in and grants no remedies to any third party as a beneficiary of this Agreement.

28. NO OBLIGATION OF THE STATE. Any obligation of the State Water Board herein contained shall not be an obligation, debt, or liability of the State and any such obligation shall be payable solely out of the moneys encumbered pursuant to this Agreement. 59 City of Cathedral City
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29. NON-WAIVER. Nothing in this Agreement shall affect or impair the Recipient’s obligation to undertake work under this Agreement or shall affect or impair the right of the State Water Board to bring suit to enforce such work. No delay or omission of the State Water Board in the exercise of any right arising upon an Event of Default shall impair any such right or be construed to be a waiver of any such Event of Default. The State Water Board may exercise from time to time and as often as shall be deemed expedient by the State Water Board, any remedy or right provided by law or pursuant to this Agreement. Any waiver of rights by the State Water Board with respect to a default or other matter arising under this Agreement at any time shall not be considered a waiver of rights with respect to any other default or matter.

30. OTHER FUNDING SOURCES; INCOME RESTRICTIONS. If funding for Project Costs is made available to the Recipient from sources other than this Agreement, the Recipient must notify the Division. The Recipient may retain such funding up to an amount which equals the Recipient's contribution to Project costs. To the extent allowed by requirements of other funding sources, excess funding must be remitted to the State Water Board. The Recipient agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Recipient as related to this Agreement must be paid by the Recipient to the State Water Board, to the extent that they are properly allocable to costs for which the Recipient has been reimbursed by the State Water Board under this Agreement.

31. PERMITS AND AUTHORIZATIONS. Recipient must procure all permits, licenses and other authorizations necessary to accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices necessary and incidental to the due and lawful prosecution of the work. Signed copies of any such permits or licenses must be submitted to the Division before any construction or implementation begins.

Any contractors, outside associates, or consultants required by the Recipient in connection with the services covered by this Agreement shall be limited to such individuals or firms as were specifically identified and agreed to during negotiations for this Agreement, or as are specifically authorized by the State Water Board’s Project Manager during the performance of this Agreement. Any substitutions in, or additions to, such contractors, associates, or consultants, shall be subject to the prior written approval of the State Water Board’s Project Manager.

32. PREVAILING WAGES. If applicable, the Recipient agrees to be bound by all applicable provisions of State Labor Code regarding prevailing wages. If applicable, the Recipient must monitor all agreements subject to reimbursement from this Agreement to ensure that the applicable prevailing wage provisions of the State Labor Code are being met. Division of Industrial Relations (DIR) requirements may be found at: http://www.dir.ca.gov/lcp.asp. For more information, please refer to DIR’s Public Works Manual at:
http://www.dir.ca.gov/dlse/PWManualCombined.pdf.

33. PRIOR COSTS. No costs incurred prior to the Eligible Work Start Date are eligible for reimbursement.

34. PROFESSIONALS. The Recipient agrees that only licensed professionals will be used to perform services under this Agreement where such services are called for. All technical reports required pursuant to this Agreement that involve planning, investigation, evaluation, design, or other work requiring interpretation and proper application of engineering, architectural, or geologic sciences, shall be prepared by or under the direction of persons registered to practice in California pursuant to Business and Professions Code, sections 5536.1, 6735, 7835, and 7835.1. As required by these laws, completed technical reports must bear the signature(s) and seal(s) of the registered professional(s) in a manner such that all work can be clearly attributed to the professional responsible for the work.
60 City of Cathedral City
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35. RECORDS, INSPECTION, AUDITS, AND INTERVIEWS; RECORDS RETENTION. The Recipient must maintain separate books, records and other material relative to the Project and retain such books, records, subcontracts, and other material until at least the Records Retention End Date set forth on the Cover Page of this Agreement. The Recipient must require that such books, records, and other material are subject at all reasonable times (at a minimum during normal business hours) to inspection, copying, and audit by the State Water Board, the Department of Finance, the California State Auditor, the Bureau of State Audits, or any authorized representatives of the aforementioned, including federal funding agencies and their auditors, if any. The Recipient must allow and must require its contractors to allow interviews during normal business hours of any employees who might reasonably have information related to such records. The Recipient agrees to include a similar duty regarding audit, interviews, and records retention in any contract or subcontract related to the performance of this Agreement. The provisions of this section survive the term of this Agreement.

36. RELATED LITIGATION. Under no circumstances may the Recipient use funds from any reimbursement under this Agreement to pay costs associated with any litigation the Recipient pursues against the State Water Board or any Regional Water Board. Regardless of the outcome of any such litigation, and notwithstanding any conflicting language in this Agreement, the Recipient agrees to complete the Project funded by this Agreement or to repay all of the disbursed funds plus interest.

37. REMEDIES. The State Water Board may enforce its rights under this Agreement by any judicial proceeding, whether at law or in equity. None of the remedies available to the State Water Board shall be exclusive of any other remedy, and each such remedy shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing at law or in equity.

The State Water Board may exercise any remedy, now or hereafter existing, without exhausting and without regard to any other remedy. Any dispute of the Recipient is limited to the rights and remedies provided to the Recipient under this Agreement and is subject to the procedures provided to the Recipient under this Agreement.

38. REPORTS - AS NEEDED. The Recipient must provide expeditiously any reports, data, and information reasonably required by the Division, including but not limited to material necessary or appropriate for evaluation of the funding program or to fulfill any reporting requirements of the State or federal government.

39. RESPONSIBILITY FOR WORK. The Recipient shall be responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Recipient shall be responsible for responding to any and all disputes arising out of its contracts for work on the Project, including, but not limited to, payment disputes with contractors and subcontractors. The State Water Board will not mediate disputes between the Recipient and any other entity concerning responsibility for performance of work.

40. RIGHTS IN DATA. The Recipient agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes, and other written or graphic work produced in the performance of this Agreement are subject to the rights of the State as set forth in this section.

The State shall have the right to reproduce, publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and to authorize others to do so. If any such work is copyrightable, the Recipient may copyright the same, except that, as to any work which is copyrighted by the Recipient, the State reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, and use such work, or any part thereof, and to authorize others to do so, and to receive electronic copies from the Recipient upon request. The Recipient may disclose, disseminate and use in whole or in part, any final form data and information received, 61 City of Cathedral City
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collected, and developed under this Agreement, subject to appropriate acknowledgement of credit to the State Water Board for financial support. The Recipient shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so.

41. STATE WATER BOARD ACTION; COSTS AND ATTORNEY FEES. In the event of litigation between the parties hereto arising from this Agreement, it is agreed that each party shall bear its own costs and attorney fees.

42. STATUS QUO. If any action to enforce any right or exercise any remedy shall be brought and either discontinued or determined adversely to the State Water Board, then the State Water Board shall be restored to its former position, rights, and remedies as if no such action had been brought.

43. TERMINATION, IMMEDIATE REPAYMENT, AND INTEREST: This Agreement may be terminated by written notice at any time, at the option of the State Water Board, if:

a. the Recipient has received funds as a result of a material misrepresentation in the funding application or other submitted document; or
b. upon violation by the Recipient of any material provision of this Agreement after such violation has been called to the attention of the Recipient and after failure of the Recipient to bring itself into compliance with the provisions of this Agreement within a reasonable time as established by the State Water Board.

In the event of such termination, the Recipient agrees, upon demand, to immediately repay to the State Water Board an amount equal to the amount of Project Funds disbursed to the Recipient prior to such termination. In the event of termination, interest shall accrue on all amounts due at the highest legal rate of interest from the date that notice of termination is mailed to the Recipient to the date of full repayment by the Recipient.

44. TIMING. Time is of the essence. The Recipient must expeditiously proceed with and complete the Project. Failure to proceed according to the timelines set forth in this Agreement may require the Recipient to repay to the State Water Board all disbursed Project Funds.

45. TRAVEL AND PER DIEM. No work or travel outside the State of California is permitted under this Agreement unless the Division provides prior written authorization. No work or travel outside the United States of America is authorized. Failure to comply with this restriction may constitute an Event of Default and result in termination of this Agreement. Any reimbursement for necessary travel and per diem shall be set pursuant to and at rates not to exceed those set by the California Department of Human Resources at http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. as of the date costs are incurred by the Recipient.

46. UNDISBURSED FUNDS. The Recipient is not entitled to interest earned on undisbursed funds.

47. UNENFORCEABLE PROVISION; SEVERABILITY. In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.

48. UNION ACTIVITIES: The Recipient hereby acknowledges the applicability of Government Code sections 16645 through 16649 to this Agreement. The Recipient certifies that none of the Project Funds will be used to assist, promote, or deter union organizing. If the Recipient incurs costs or makes expenditures to assist, promote, or deter union organizing, the Recipient will maintain records sufficient to show that no reimbursement from Project Funds has been sought for these costs and the Recipient shall provide those records to the Attorney General upon request. 62 City of Cathedral City
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49. VENUE. Any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California.

50. WAIVER AND RIGHTS OF THE STATE WATER BOARD. Any waiver of rights by the State Water Board with respect to a default or other matter arising under this Agreement at any time shall not be considered a waiver of rights with respect to any other default or matter.

51. WATER CONSERVATION AND EFFICIENCY PROGRAMS: The Recipient acknowledges that it has appropriate water conservation and efficiency programs in place, and that this provision constitutes a condition of this Agreement. A web link with examples of water conservation and efficiency programs is available at:
http://www.waterboards.ca.gov/waterrights/water_issues/programs/drought/conservation.shtml.

52. WATER DIVERSION AND USE: To the extent applicable, the Recipient has complied with, and shall continue to comply with, the requirements of Water Code, division 2, part 5.1, section 5100 et seq. for filing statements of water diversion and use.

53. WITHHOLDING OF DISBURSEMENTS AND REIMBURSEMENTS. Notwithstanding any other provision of this Agreement, the State Water Board may withhold all or any portion of the Project Funds upon the occurrence of any of the following events:
a) Failure of the Recipient to maintain reasonable progress on the Project as determined by the Division;
b) Commencement of litigation or a judicial or administrative proceeding related to the Project, or Recipient that the State Water Board determines may impair the timely satisfaction of Recipient’s obligations under this Agreement;
c) Any investigation by State, local, or federal investigators or auditors, or a grand jury, relating to the Recipient’s financial management, accounting procedures, or internal fiscal controls; d) A material adverse change in the condition of the Recipient, or the Project, that the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement, or any other event that the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement; e) The Recipient’s material violation of, or threat to materially violate, any provision of this Agreement;
f) Suspicion of fraud, forgery, embezzlement, theft, or any other misuse of public funds by the Recipient or its employees, or by its contractors or agents directly or indirectly regarding the Project;
g) An event requiring notice under this Agreement; or
h) An Event of Default or an event that the Division determines may become an Event of Default.

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EXHIBIT D – SPECIAL CONDITIONS
D.1 DEFINITIONS.

Each capitalized term used in this Agreement has the following meaning:

 “Authorized Representative” means the duly appointed representative of the Recipient as set forth in the certified original of the Recipient’s authorizing resolution that designates the authorized representative by title.
 “Eligible Work Start Date” means the date set forth on the Cover Page of this Agreement, establishing the date on or after which any costs may be incurred and eligible for reimbursement hereunder.
 “Enterprise Fund” means the enterprise fund of the Recipient in which Revenues are deposited.  “Event of Default” means, in addition to the meanings set forth in Exhibit C, the occurrence of any of the following events:
a) A material adverse change in the condition of the Recipient, the Revenues, or the System, which the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement. b) The occurrence of a material breach or event of default under any Recipient obligation that results in the acceleration of principal or interest or otherwise requires immediate prepayment, repurchase or redemption, or that the Division determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement.
 “Indirect Costs” means those costs that are incurred for a common or joint purpose benefiting more than one cost objective and are not readily assignable to the Project (i.e., costs that are not directly related to the Project). Examples of Indirect Costs include, but are not limited to: central service costs; general administration of the Recipient; non-project-specific accounting and personnel services performed within the Recipient organization; depreciation or use allowances on buildings and equipment; the costs of operating and maintaining non-project-specific facilities; tuition and conference fees; generic overhead or markup; and taxes.  “Net Revenues" means, for any Fiscal Year, all Revenues received by the Recipient less the Operations and Maintenance Costs for such Fiscal Year.
 "Operations and Maintenance Costs" means the reasonable and necessary costs paid or incurred by the Recipient for maintaining and operating the System, determined in accordance with GAAP, including all reasonable expenses of management and repair and all other expenses necessary to maintain and preserve the System in good repair and working order, and including all reasonable and necessary administrative costs of the Recipient that are charged directly or apportioned to the operation of the System, such as salaries and wages of employees, overhead, taxes (if any), the cost of permits, licenses, and charges to operate the System and insurance premiums; but excluding, in all cases depreciation, replacement, and obsolescence charges or reserves therefor and amortization of intangibles.
 "Policy" means the State Water Board's “Policy for Implementing the Clean Water State Revolving Fund,” as amended from time to time, including the Intended Use Plan in effect as of the execution date of this Agreement.
 "Revenues" means, for each Fiscal Year, all gross income and revenue received or receivable by the Recipient from the ownership or operation of the System, determined in accordance with GAAP, including all rates, fees, and charges (including connection fees and charges) as received 64 City of Cathedral City
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by the Recipient for the services of the System, and all other income and revenue howsoever derived by the Recipient from the ownership or operation of the System or arising from the System, including all income from the deposit or investment of any money in the Enterprise Fund or any rate stabilization fund of the Recipient or held on the Recipient’s behalf, and any refundable deposits made to establish credit, and advances or contributions in aid of construction.  “System" means all wastewater collection, pumping, transport, treatment, storage, and disposal facilities, including land and easements thereof, owned by the Recipient, including the Project, and all other properties, structures, or works hereafter acquired and constructed by the Recipient and determined to be a part of the System, together with all additions, betterments, extensions, or improvements to such facilities, properties, structures, or works, or any part thereof hereafter acquired and constructed.

D.2 ADDITIONAL REPRESENTATIONS AND WARRANTIES.

The Recipient represents, warrants, and covenants each of the following:
a) The Recipient has not made any untrue statement of a material fact in its application for this financial assistance or omitted to state in its application a material fact that makes the statements in its application not misleading.
b) The Recipient agrees to fulfill all assurances, declarations, representations, and commitments in its application, accompanying documents, and communications filed in support of its request for funding under this Agreement.
c) The execution, delivery, and performance by Recipient of this Agreement, including all incorporated documents, do not violate any provision of any law or regulation in effect as of the date of execution of this Agreement by the Recipient, or result in any breach or default under any contract, obligation, indenture, or other instrument to which Recipient is a party or by which Recipient is bound as of the date of execution of this Agreement by the Recipient. d) There are, as of the date of execution of this Agreement by the Recipient, no pending or, to Recipient’s knowledge, threatened actions, claims, investigations, suits, or proceedings before any governmental authority, court, or administrative agency that materially affect the financial condition or operations of the Recipient, the Revenues, and/or the Project. e) There are no proceedings, actions, or offers by a public entity to acquire by purchase or the power of eminent domain any of the real or personal property related to or necessary for the Project.
f) The Recipient is duly organized and existing and in good standing under the laws of the State of California. Recipient must at all times maintain its current legal existence and preserve and keep in full force and effect its legal rights and authority. Within the preceding ten years, the Recipient has not failed to demonstrate compliance with state or federal audit disallowances. g) Any financial statements or other financial documentation of Recipient previously delivered to the State Water Board as of the date(s) set forth in such financial statements or other financial documentation: (a) are materially complete and correct; (b) present fairly the financial condition of the Recipient; and (c) have been prepared in accordance with GAAP. Since the date(s) of such financial statements or other financial documentation, there has been no material adverse change in the financial condition of the Recipient, nor have any assets or properties reflected on such 65 City of Cathedral City
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financial statements or other financial documentation been sold, transferred, assigned, mortgaged, pledged or encumbered, except as previously disclosed in writing by Recipient and approved in writing by the State Water Board.
h) The Recipient is current in its continuing disclosure obligations associated with its material debt, if any.
i) The Recipient has no conflicting or Material Obligations. j) The Recipient has sufficient real or personal property rights necessary for the purposes of this Agreement, not subject to third party revocation, which rights extend at least to the Records Retention End Date of this Agreement, except as disclosed to the State Water Board. The Recipient has disclosed to the State Water Board all proceedings, actions, or offers of which the Recipient has knowledge or belief that may in any way affect the Recipient’s ability to access or legally possess all of the property necessary for the purpose of this Agreement, including any proceedings, actions, or offers to lease, purchase, or acquire by eminent domain any of the real or personal property related to or necessary for the Project. k) The Recipient and its principals, contractors, and subcontractors, to the best of the Recipient’s knowledge and belief, are not presently debarred, suspended, proposed for debarment, declared ineligible, or otherwise excluded from participation in any work overseen, directed, funded, or administered by the State Water Board program for which this funding is authorized; nor have they engaged or permitted the performance of services covered by this Agreement from parties that are debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which this funding is authorized.

D.3 ACKNOWLEDGEMENTS.

The Recipient must include the following acknowledgement in any document, written report, or brochure to be shared with the general public prepared in whole or in part pursuant to this Agreement:

 “Funding for this project has been provided in full or in part under the Clean Water State Revolving Fund, which may include capitalization funding from the United States Environmental Protection Agency through an agreement with the State Water Resources Control Board. The contents of this document do not necessarily reflect the views and policies of the foregoing, nor does mention of trade names or commercial products constitute endorsement or recommendation for use.”

D.4 RATES, FEES, AND CHARGES.

The Recipient must, to the extent permitted by law, fix, prescribe and collect rates, fees and charges for the System during each Fiscal Year which are reasonable, fair, and nondiscriminatory and which will be sufficient to generate Revenues in the amounts necessary to cover Operations and Maintenance Costs, and must ensure that Net Revenues are in an amount necessary to meet its obligations under this Agreement. The Recipient may make adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but shall not reduce the rates, fees and charges then in effect unless the Net Revenues from such reduced rates, fees, and charges will at all times be sufficient to meet the requirements of this section.

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D.5 ENVIRONMENTAL AND TECHNICAL SPECIAL CONDITIONS.

The Recipient agrees to the following environmental conditions:

 The Recipient shall submit all final California Environmental Quality Act (CEQA) documents and notices for the construction project to the Governor’s Office of Planning and Research, State Clearinghouse or coordinate with the CEQA lead agency to do so. A copy of all such CEQA documents and notices shall be submitted to the Division via the Financial Assistance Application Submittal Tool (FAAST).

 The Recipient shall submit to the Division a Biological Assessment Report or an updated previously prepared Biological Assessment Report for the construction project that meets the requirements of Section 7 of the Endangered Species Act (ESA) for the purposes of initiating consultation with the United States Fish and Wildlife Service and/or the National Marine Fisheries Service. This condition applies to all projects that receive Clean Water State Revolving Fund funding and other projects at the discretion of the Division. For applicability of this condition and further guidance on Section 7, ESA requirements contact Division’s Environmental Review Staff and/or the Project Manager.

 The Recipient shall submit to the Division a Historic Properties Identification Report (HPIR) for the construction project or an updated previously prepared HPIR, authored by a qualified archaeologist that meets the requirements of Section 106 of the National Historic Preservation Act (NHPA) for the purposes of initiating consultation with the Office of Historic Preservation. This condition applies to all projects that receive Clean Water State Revolving Fund funding and other projects at the discretion of the Division. For applicability of this condition and further guidance on Section 106, NHPA requirements contact Division’s Environmental Review Staff and/or the Project Manager.

 During the term of this planning Agreement, the Recipient shall request approval of any change(s) to the Scope of Work of the construction project before making those changes.

Thereafter, the Division shall notify the Recipient whether additional environmental review is necessary as a result of the change(s).

 The Recipient shall not initiate any ground disturbing/construction activities unless and until the environmental review process is complete and all applicable notices are filed by the Recipient in its capacity as the CEQA Lead Agency.

Technical:

a. The Recipient shall not begin CVWD Sewer Consolidation Project Environmental Documents or CVWD Sewer Consolidation Project Plans and Specifications until written authorization to proceed is given by the Division’s Project Manager based on the CVWD Sewer Consolidation Project Preliminary Engineering Report.

b. The Recipient shall not begin DWA Sewer Consolidation Project Environmental Documents or DWA Sewer Consolidation Project Plans and Specifications until written authorization to proceed is given by the Division’s Project Manager based on the DWA Sewer Consolidation Project Preliminary Engineering Report.

D.6 RETURN OF FUNDS.

Notwithstanding any other provision of this Agreement, if the Division determines that an Event of Default has occurred, the Recipient may be required, upon demand, to immediately return to the State Water 67 City of Cathedral City
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Board any grant or principal forgiveness amounts received pursuant to this Agreement and pay interest at the highest legal rate on all of the foregoing.

D.7 INSURANCE.

The Recipient will procure and maintain or cause to be maintained insurance on the System with responsible insurers, or as part of a reasonable system of self-insurance, in such amounts and against such risks (including damage to or destruction of the System) as are usually covered in connection with systems similar to the System. Such insurance may be maintained by a self-insurance plan so long as such plan provides for (i) the establishment by the Recipient of a separate segregated self-insurance fund in an amount determined (initially and on at least an annual basis) by an independent insurance consultant experienced in the field of risk management employing accepted actuarial techniques and (ii) the establishment and maintenance of a claims processing and risk management program.

In the event of any damage to or destruction of the System caused by the perils covered by such insurance, the net proceeds thereof shall be applied to the reconstruction, repair or replacement of the damaged or destroyed portion of the System. The Recipient must begin such reconstruction, repair or replacement as expeditiously as possible, and must pay out of such net proceeds all costs and expenses in connection with such reconstruction, repair or replacement so that the same must be completed and the System must be free and clear of all claims and liens.

D.8 NOTICE.

Upon the occurrence of any of the following events, the Recipient must notify the Division’s Deputy Director and Party Contacts promptly by phone and email:
i. Bankruptcy, insolvency, receivership or similar event of the Recipient, or actions taken in anticipation of any of the foregoing;
ii. Change of ownership of the Project (no change of ownership may occur without written consent of the Division);
iii. Loss, theft, damage, or impairment to Project;
iv. Events of Default, except as otherwise set forth in this section; v. A proceeding or action by a public entity to acquire the Project by power of eminent domain.
vi. Any litigation pending or threatened with respect to the Project or the Recipient’s technical, managerial or financial capacity or the Recipient’s continued existence, or any judgment or court order relating to such litigation that has a material effect on the Project or the System;
vii. Consideration of dissolution, or disincorporation; viii. Enforcement actions by or brought on behalf of the State Water Board or Regional Water Board.
ix. The discovery of a false statement of fact or representation made in this Agreement or in the application to the Division for this funding, or in any certification, report, or 68 City of Cathedral City
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request for reimbursement made pursuant to this Agreement, by the Recipient, its employees, agents, or contractors;
x. Any substantial change in scope of the Project. The Recipient must undertake no substantial change in the scope of the Project until prompt written notice of the proposed change has been provided to the Division and the Division has given written approval for the change;
xi. Any circumstance, combination of circumstances, or condition, which is expected to or does delay Work Completion for a period of ninety (90) days or more; xii. The Recipient must promptly notify the Division and Party Contacts of the discovery of any unexpected endangered or threatened species, as defined in the federal Endangered Species Act. Should a federally protected species be unexpectedly encountered during implementation of the Project, the Recipient agrees to promptly notify the Division. This notification is in addition to the Recipient’s obligations under the federal Endangered Species Act;
xiii. Any Project monitoring, demonstration, or other implementation activities required in this Agreement;
xiv. Any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunity for attendance and participation by state representatives with at least ten (10) working days’ notice to the Division; xv. Any event requiring notice to the Division pursuant to any other provision of this Agreement;
xvi. Work Completion, and Project Completion.

D.9 FRAUD, WASTE, AND ABUSE.

The Recipient shall prevent fraud, waste, and the abuse of Project Funds, and shall cooperate in any investigation of such activities that are suspected in connection with this Agreement. The Recipient understands that discovery of any evidence of misrepresentation or fraud related to Reimbursement Requests, invoices, proof of payment of invoices, or other supporting information, including but not limited to double or multiple billing for time, services, or any other eligible cost, may result in an administrative action by the State Water Board and/or referral to the Attorney General’s Office or the applicable District Attorney’s Office for appropriate action. The Recipient further understands that any suspected occurrences of false claims, misrepresentation, fraud, forgery, theft or any other misuse of Project Funds may result in withholding of reimbursements and/or the termination of this Agreement requiring the immediate repayment of all funds disbursed hereunder. A person who knowingly makes or causes to be made any false statement, material misrepresentation, or false certification in any submittal may be subject to a civil penalty, criminal fine, or imprisonment. (Wat. Code, § 13490 et seq.)

D.10 DISPUTES.

The Recipient must continue with the responsibilities under this Agreement during any dispute. The Recipient may, in writing, appeal a staff decision within 30 days to the Deputy Director of the Division or designee, for a final Division decision. The Recipient may appeal a final Division decision to the State Water Board within 30 days. The Office of the Chief Counsel of the State Water Board will prepare a 69 City of Cathedral City
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summary of the dispute and make recommendations relative to its final resolution, which will be provided to the State Water Board’s Executive Director and each State Water Board Member. Upon the motion of any State Water Board Member, the State Water Board will review and resolve the dispute in the manner determined by the State Water Board. Should the State Water Board determine not to review the final Division decision, this decision will represent a final agency action on the dispute. This provision does not preclude consideration of legal questions, provided that nothing herein shall be construed to make final the decision of the State Water Board, or any official or representative thereof, on any question of law.

This section relating to disputes does not establish an exclusive procedure for resolving claims within the meaning of Government Code sections 930 and 930.4.

D.11 EXECUTIVE ORDER N-6-22 — RUSSIAN SANCTIONS.

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State Water Board determine Recipient is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this Agreement. The State Water Board shall provide Recipient advance written notice of such termination, allowing Recipient at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State Water Board.

The Recipient represents that the Recipient is not a target of economic sanctions imposed in response to Russia’s actions in Ukraine imposed by the United States government or the State of California. The Recipient is required to comply with the economic sanctions imposed in response to Russia’s actions in Ukraine, including with respect to, but not limited to, the federal executive orders identified in California Executive Order N-6-22, located at https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia- Ukraine-Executive-Order.pdf and the sanctions identified on the United States Department of the Treasury website (https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and- country-information/ukraine-russia-related-sanctions). The Recipient is required to comply with all applicable reporting requirements regarding compliance with the economic sanctions, including, but not limited to, those reporting requirements set forth in California Executive Order N-6-22 for all Recipients with one or more agreements with the State of California with an aggregated value of Five Million Dollars ($5,000,000) or more. Notwithstanding any other provision in this Agreement, failure to comply with the economic sanctions and all applicable reporting requirements may result in termination of this Agreement.

For Recipients with an aggregated agreement value of Five Million Dollars ($5,000,000) or more with the State of California, reporting requirements include, but are not limited to, information related to steps taken in response to Russia’s actions in Ukraine, including but not limited to:

1. Desisting from making any new investments or engaging in financial transactions with Russian institutions or companies that are headquartered or have their principal place of business in Russia;

2. Not transferring technology to Russia or companies that are headquartered or have their principal place of business in Russia; and

3. Direct support to the government and people of Ukraine.

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D.12 STATE CROSS-CUTTERS.

Recipient represents that, as applicable, it complies and covenants to maintain compliance with the following with respect to all Project Costs for the term of this Agreement:

 The California Environmental Quality Act (CEQA), as set forth in Public Resources Code 21000 et seq. and in the CEQA Guidelines at Title 14, Division 6, Chapter 3, Section 15000 et seq.

 Water Conservation requirements, including regulations in Division 3 of Title 23 of the California Code of Regulations.

 Monthly Water Diversion Reporting requirements, including requirements set forth in Water Code section 5103.

 Public Works Contractor Registration with Department of Industrial Relations requirements, including requirements set forth in Sections 1725.5 and 1771.1 of the Labor Code.

 Volumetric Pricing & Water Meters requirements, including the requirements of Water Code sections 526 and 527.

 Urban Water Management Plan requirements, including the Urban Water Management Planning Act (Water Code, § 10610 et seq.).

 Urban Water Demand Management requirements, including the requirements of Section 10608.56 of the Water Code.

 Delta Plan Consistency Findings requirements, including the requirements of Water Code section 85225 and California Code of Regulations, title 23, section 5002.

 Agricultural Water Management Plan Consistency requirements, including the requirements of Water Code section 10852.

 Charter City Project Labor Requirements, including the requirements of Labor Code section 1782 and Public Contract Code section 2503.

 The Recipient agrees that it will, at all times, comply with and require its contractors and subcontractors to comply with directives or orders issued pursuant to Division 7 of the Water Code.

 Regulations in Division 4 of Title 22 of the California Code of Regulations, including but not limited to California Waterworks Standards in Chapter 16, and Lead and Copper regulations in Chapter 17.5.

D.13 DAMAGES FOR BREACH OF FEDERAL CONDITIONS.

In the event that any breach of any of the provisions of this Agreement by the Recipient results in the failure of Project Funds to be used pursuant to the provisions of this Agreement, or if such breach results in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government, the Recipient must immediately reimburse the State or any subdivision or agency thereof in an amount equal to any damages paid by or loss incurred by the State or any subdivision or agency thereof due to such breach.

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D.14 ACCESS AND INSPECTION.

In addition to the obligations set forth in section 2 of the General Terms and Conditions incorporated in Exhibit C of this Agreement, the Recipient must ensure that the United States Environmental Protection Agency, the Office of Inspector General, any member of Congress, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times during the term of the Agreement.

D.15 FINANCIAL MANAGEMENT SYSTEMS.

The Recipient must comply with federal standards for financial management systems. The Recipient agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit preparation of reports required by the federal government and tracking of Project funds to a level of expenditure adequate to establish that such funds have not been used in violation of federal or state law or the terms of this Agreement. To the extent applicable, the Recipient is bound by, and must comply with, the provisions and requirements of the federal Single Audit Act (SAA) of 1984, 2 CFR part 200, subpart F, and 2 CFR section 200.302, and updates or revisions, thereto, including but not limited to:

 Maintain an annual (Fiscal Year) accounting system and identify all expenditures of federal financial assistance;
 Conduct a SAA audit using an independent auditor in those Fiscal Years when expenditures of total federal financial assistance equal or exceed $750,000 the applicable threshold in 2 CFR section 200.501, and submit the SAA audit to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report(s) or nine (9) months of the end of the audit period;
 Notify the Division when a SAA audit has been conducted and submitted to the Federal Audit Clearinghouse;
 Notify and provide the Division with a copy of the SAA audit within thirty (30) days of completion of the audit;
 Inform the Division of findings and recommendations pertaining to federal financial assistance provided through the State Water Board contained in SAA audits conducted by the Recipient;  Initiate corrective actions for audit reports with findings and recommendations that impact federal financial assistance provided through the State Water Board and notify the Division when corrective actions are complete.

D.16 FEDERAL CROSS-CUTTERS.

The Recipient acknowledges, warrants compliance with, and covenants to continuing compliance with the following federal terms and conditions with respect to all Project Costs for the term of this Agreement:

i. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the Recipient shall not purchase “iron and steel products” produced outside of the United States on this Project. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the Recipient hereby certifies that all “iron and steel products” used in the Project were or will be produced in the United States. For purposes of this section, the term "iron and steel products" 72 City of Cathedral City
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means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. “Steel” means an alloy that includes at least 50 percent iron, between .02 and 2 percent carbon, and may include other elements.

ii. The Recipient does not anticipate any construction is necessary to complete the Project, and no construction activities may occur without the Division’s approval. If the Project does include construction, the Recipient agrees to comply with the Davis-Bacon provisions, and must include in full the Wage Rate Requirements (Davis-Bacon) language provided by the Division in all construction contracts and subcontracts.

iii. The Recipient shall notify the State Water Board and the USEPA contact of public or media events publicizing the accomplishment of significant events related to this Project and provide the opportunity for attendance and participation by federal representatives with at least ten (10) working days’ notice.

iv. The Recipient shall comply with applicable USEPA general terms and conditions found at https://www.epa.gov/grants/epa-general-terms-and-conditions-effective-october-1-2022-or-later.

v. No Recipient may receive funding under this Agreement unless it has provided its Unique Entity Identifier, assigned by the System for Award management, to the State Water Board.

vi. The Recipient represents and warrants that it and its principals are not excluded or disqualified from participating in this transaction as such terms are defined in Parts 180 and 1532 of Title 2 of the Code of Federal Regulations (2 CFR). If the Recipient is excluded after execution of this Agreement, the Recipient shall notify the Division within ten (10) days and shall inform the Division of the Recipient’s exclusion in any request for amendment of this Agreement. The Recipient shall comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR. Such compliance is a condition precedent to the State Water Board’s performance of its obligations under this Agreement. When entering into a covered transaction as defined in Parts 180 and 1532 of 2 CFR, the Recipient shall require the other party to the covered transaction to comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR.

vii. To the extent applicable, the Recipient shall disclose to the State Water Board any potential conflict of interest consistent with USEPA’s Final Financial Assistance Conflict of Interest Policy at https://www.epa.gov/grants/epas-final-financial-assistance-conflict-interest-policy. A conflict of interest may result in disallowance of costs.

viii. USEPA and the State Water Board have the right to reproduce, publish, use and authorize others to reproduce, publish and use copyrighted works or other data developed under this assistance agreement.

ix. Where an invention is made with Project Funds, USEPA and the State Water Board retain the right to a worldwide, nonexclusive, nontransferable, irrevocable, paid-up license to practice the invention owned by the Recipient. The Recipient must utilize the Interagency Edison extramural invention reporting system at http://iEdison.gov and shall notify the Division when an invention report, patent report, or utilization report is filed.

x. The Recipient agrees that any reports, documents, publications or other materials developed for public distribution supported by this Agreement shall contain the Acknowledgment statement set forth in Exhibit D.
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Cathedral City City CouncilJuly 22, 2026

Cathedral City City Council
July 22, 2026