Cathedral City City Council
August 12, 2026

CITY COUNCIL
PACKET

Study Session 3:00 PM
Regular Meeting 5:30 PM

Wednesday, August 12, 2026

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

MAYOR
Raymond Gregory

CITY COUNCIL MEMBERS

Mayor Pro Tem
Ernesto Gutierrez

Councilmember
Nancy Ross

Councilmember
Rita Lamb

Councilmember
Christina Gordon

Pursuant to Senate Bill 707, participation in this meeting is available by videoconference/teleconference. If you would like to attend the meeting via Zoom please use the following link to register:

https://us02web.zoom.us/webinar/register/WN_sy_gmC8nT_2AZqjmtAkW5w

After registering, you will receive a confirmation email containing information about joining the webinar.

STUDY SESSION 3:00 PM

Normally no action is taken on Study Session Items, however, the City Council reserves the right to give specific policy direction and take specific action as necessary.

Presentations will be limited to 10 minutes unless other provisions are made in advance.

CALL TO ORDER

ROLL CALL

AGENDA FINALIZATION
At this time the City Council may announce any items being pulled from the agenda or continued to another date.

2 1. PUBLIC COMMENTS

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

2. STUDY SESSION

A. Desert Recreation District Update - Finances
Recommendation: To receive a presentation by staff from the Desert Recreation District on the status of district finances.

B. Strategic Plan Update
Recommendation: This report is for information, discussion and direction only.

C. Preliminary Report on Mailboxes and Other Sidewalk Obstructions Recommendation: For the City Council to receive and discuss the preliminary findings regarding mailboxes and other sidewalk obstructions affecting Americans with Disabilities Act (ADA) accessibility throughout Cathedral City and provide comments and/or direction to staff regarding improvement solutions.

3. CLOSED SESSION

A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Pursuant to Government Code section 54956.9(d)(1)
Number of matters: One (1) Zenergy Capital, LLC v. Palm Springs Cemetery District, City of Cathedral City, et al.,
Superior Court of California, Riverside County, Case No. CVPS2406355 Recommendation: There is no staff recommendation.

RECESS

REGULAR MEETING - 5:30 PM

CALL TO ORDER

PLEDGE OF ALLEGIANCE

INVOCATION (MOMENT OF REFLECTION)

ROLL CALL

AGENDA FINALIZATION
At this time the City Council may announce any items being pulled from the agenda or

3 continued to another date.

1. PUBLIC COMMENTS

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

2. COUNCIL REPORTS

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

3. CONSENT AGENDA

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

A. Waive Full Reading of Ordinances on Agenda
Recommendation: Waive Full Reading of Ordinances on Agenda

B. Commissioner/Committee Member Attendance Record
Recommendation: Receive and File

C. Approval of the July 22, 2026 Study Session and Regular Meeting Minutes.

Recommendation: To approve the July 22, 2026 Study Session and Regular Meeting Minutes

D. Authorize a Letter of Support to the Governor’s Office of Business and Economic Development (GO-Biz) - Supporting the Designation of Eligible Opportunity Zone 2.0 Census Tracts within the City of Cathedral City
Recommendation: To authorize the City Manager to prepare a Letter of Support to the Governor’s Office of Business and Economic Development (GO-Biz) supporting the designation of eligible Opportunity Zones 2.0 census tracts located within the City of Cathedral.

4. PUBLIC HEARINGS

5. LEGISLATIVE ACTIONS

A. Approve a Professional Services Agreement with Gallagher Benefit

4 Services, Inc. to conduct a Citywide Classification and Compensation Study
Recommendation: To approve a professional services agreement with Gallagher Benefit Services, Inc. for classification and services and authorize the City Manager to execute the services agreement.

B. Consultant Selection for the Citywide Integrated Strategic Communications Plan
Recommendation:

Staff recommends that City Council:
• Approve JPW Communications as the selected consultant for the Citywide Integrated Strategic Communications Plan based on the evaluation panel's scoring and recommendation; and
• Approve an Agreement for Services with JPW Communications and authorize the City Manager to execute the agreement for an amount not to exceed $78,575.

C. Approval of a Professional Services Agreement with ICF Incorporated, L.L.C. for Preparation of the Cathedral City Climate Action Plan Update Recommendation:

For City Council to:
o Approve a professional services agreement with ICF Incorporated, L.L.C. in an amount not to exceed $55,000 for preparation of the Cathedral City Climate Action Plan Update; and a fifteen percent (15%) contingency for unforeseen project related outreach requirements in the amount of $8,250; thereby bringing the total cost encumbrance for this project to $63,250; and,
o Authorize the City Manager to execute the Professional Services Agreement with ICF Incorporated, L.L.C.; and,
o Find that approval of the professional services agreement is not a project under CEQA pursuant to Section 15378 of the CEQA Guidelines because it consists of administrative and planning activities that will not result in a direct or reasonably foreseeable physical change to the environment.

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

7. CLOSED SESSION

ADJOURNMENT

NOTES TO THE PUBLIC

The City of Cathedral City complies with the Americans with Disabilities Act of 1990. If

5 you require special assistance to participate in this meeting, please call the City Clerk’s Office at (760) 770-0322 at least 48 hours prior to the meeting.

If you desire to address the City Council during the meeting, please complete a Request to Speak Form available at the entrance and present it to the City Clerk. Speakers will be called upon at the appropriate time.

When providing public comment during a Council Meeting, California Law may require speakers to disclose a campaign contribution made to an elected or appointed City Councilmember if speaking on certain projects or contracts to be acted upon by the City Council. Please use the following link to determine whether you have a legal obligation to disclose your campaign contribution: https://www.cathedralcity.gov/transparency

Written Comments will be accepted until 2:00 p.m. on the day of the meeting. Written comments may be submitted via email, letter, or other forms of written communication.

To email comments please email to [email protected].

Hard copies of written comments and any other document will be provided to the City Council and made available for the general public to review. All written comments received by the submission deadline will be made part of the official record. The meeting minutes will include: The name of the individual submitting the comment and a brief statement summarizing the content of the comment.

Submitted Written Comments will not be read into the record during the meeting.

AVISOS AL PÚBLICO

La Ciudad de Cathedral City cumple con la Ley de Estadounidenses con Discapacidades de 1990 (Americans with Disabilities Act). Si requiere asistencia especial para participar en esta reunión, por favor comuníquese con la Oficina de la Secretaria Municipal (City Clerk) al (760) 770-0322 por lo menos 48 horas antes de la reunión.

Si desea dirigirse al Concejo Municipal durante la reunión, por favor complete un Formulario de Solicitud para Hablar disponible en la entrada y entréguelo a la Secretaria Municipal. Las personas que deseen hablar, serán llamados en el momento apropiado.

Al proporcionar comentarios públicos durante una reunión del Concejo Municipal, la ley de California puede requerir que los participantes revelen una contribución de campaña hecha a un miembro electo o designado del Concejo Municipal si hablan sobre ciertos proyectos o contratos que serán considerados por el Concejo Municipal. Por favor utilice el siguiente enlace para determinar si tiene la obligación legal de revelar su contribución de campaña: https://www.cathedralcity.gov/transparency

Se aceptarán comentarios por escrito hasta las 2:00 p.m. del día de la reunión. Los comentarios por escrito pueden enviarse por correo electrónico, carta u otras formas de

6 comunicación escrita.

Para enviar comentarios por correo electrónico, por favor envíelos a:
[email protected].

Las copias impresas de los comentarios escritos y cualquier otro documento serán proporcionadas al Concejo Municipal y estarán disponibles para revisión del público en general. Todos los comentarios escritos recibidos antes de la fecha límite de entrega formarán parte del registro oficial.

Las actas de la reunión incluirán: el nombre de la persona que presentó el comentario y una breve declaración que resuma el contenido del comentario.

Los comentarios escritos enviados no serán leídos en voz alta durante la reunión.

``
Staff Report
City Council
Item No. 2.A
Meeting Date: August 12, 2026
From: Anne V. Ambrose, Assistant City Manager
Title: Desert Recreation District Update - Finances
RECOMMENDATION:

To receive a presentation by staff from the Desert Recreation District on the status of district finances.

BACKGROUND:

On February 12, 2025, the City Council and the Desert Recreation District (DRD) Board of Directors approved two agreements establishing park maintenance and recreation services to be provided by DRD to the city and the property tax transfer mechanism to fund those services following the City's annexation into the District.

Following approval, City staff prepared the required annexation exhibits for submission to the Riverside County Local Agency Formation Commission (LAFCO). However, due to the retirement of DRD's former General Manager and the subsequent leadership transition, the annexation application was not submitted. After the appointment of DRD's new General Manager, Dr. Gabriel Martin, City staff resumed discussions regarding the annexation process. Dr. Martin advised that his immediate priority was evaluating the District's financial position before moving forward.

At the July 22, 2026, City Council meeting, DRD staff presented an update on park maintenance and recreation programming following the first full year of services. At tonight's meeting, Dr. Martin will provide an update on the District's financial condition, and City staff will present preliminary fiscal year-end budget estimates.

DISCUSSION:

The City and DRD executed a one-year service agreement defining the levels of service for park maintenance and initial recreational programming, including the summer aquatics program. Cost estimates provided by the DRD for year one across both programs was budgeted at $1,798,585.88 and year end estimates, based on invoicing received to date for services through June 30, 2026 amounted to $1,860,772.26, or a difference of $123,186.38. 1 1

Staff have not yet reconciled with the DRD on any earned revenues from programs offered this past year.

The original services agreement was intended to be a short-term agreement until the annexation process was completed. Since that is not advancing at this time, staff are working with the DRD to execute a new multi-year agreement for services to be brought back to the City Council for approval. Below is a summary of FY 2025/26 expenses and a DRD staffing summary. One main area where costs were underestimated was for water.

Staff are awaiting an updated budget proposal from DRD and will work to better align the costs with budget available.

Park Maintenance Amount
Materials and Supplies $ 32,525.40
Maintenance and Ops $ 517,967.90
Professional Services (DRD Staff) $ 593,567.95
Utilities - Electric $ 231,260.09
Utilities - Water $ 64,862.89
Total Through 5/20/26 $ 1,440,184.23
June Invoices $ 145,233.53
Total through 6/30/2026 $ 1,585,417.76
Recreation Programming Amount
Maintenance and Supplies $ 11,649.46
Programs $ 42,762.57
Professional Services (DRD Staff) $ 211,534.71
Total Through 6/20/26 $ 265,946.74
Aguatics Program Amount
Professional Services (DRD Staff) $ 7,952.86
Materials & Supplies $ 1,314.15
Communications $ 116.75
General Services $ 24.00
CCHS Pool (estimated-awaiting invoice) $ 61,000.00 Total Through 6/20/26 $ 70,407.76
Total Year End Estimate $ 1,921,772.26
Budget $ 1,798,585.88
Difference $ (123,186.38)
2 2

Staffing FY 25/26
Park Maintenance FT/PT
# of
Employees
Supervising Park Attendant FT 1
Park Attendant II FT 4
Park Attendant II PT 2
Senior Maintenance Worker FT 2
Recreation Programs FT/PT
# of
Employees
Community Services
Supervisor FT Vacant
Senior Recreation Leader PT 1
Instructor I PT 1
Instructor II PT 1
Recreation Leaders PT 3
Aquatics Program FT/PT
# of
Employees
Coordinator FT 1
Lifeguards PT X
*Number of PT lifeguards unable to be confirmed at the time of this report.

FISCAL IMPACT:

There is no fiscal impact to this report. Updated agreements and/or any budget adjustments if needed will be brought to the City Council separately.

FIVE-YEAR STRATEGIC PLAN:

Goal B: Community Investment
3 3

Staff Report
City Council
Item No. 2.B
Meeting Date: August 12, 2026
From: Anne V. Ambrose, Assistant City Manager
Title: Strategic Plan Update
RECOMMENDATION:

This report is for information, discussion and direction only.

BACKGROUND:

In November 2022, the City Council and staff leadership team began a strategic planning process to develop a roadmap to guide Cathedral City for the next five years. Through a series of workshops, informed by City Councilmember interviews, a community survey, and staff input, the City Council and staff refined the vision and values of the City organization, established goals and objectives, and created work plans to advance the City forward in the jointly shared strategic direction. The City Council adopted the strategic plan on April 12, 2023, and on August 23, 2023, staff conducted the first study session with the City Council to provide an update on staff’s progress, with continued updates occurring on August 14, 2024, March 26, 2025, and August 13, 2025.

Annually, the City Council conducts a strategic planning workshop with the city executive and management team members to discuss staff’s progress on goals, to identify and discuss any new initiatives or impediments needing attention, and to reprioritize objectives for the coming year. Since the adoption of the strategic plan, those annual meetings have occurred on January 27, 2024, January 25, 2025, and most recently, February 7, 2026. During this meeting, the City Council was presented the results of an updated community survey to guide planning for the coming year. Objectives and action items were updated, with new initiatives identified. Tonight’s presentation will provide an update on the overall plan, focusing on the Council’s priority objectives.

DISCUSSION:

The attached City Council Priority Initiatives provides a status of the key initiatives City Council identified through the strategic planning process. Overall, work on the majority of the City Council’s priorities (53%) are in progress, 28% have been completed, 13% are on hold and 8% have not been started.
1 1

Of the 8 items on the list that have not started or are on hold, two are on the future agenda list to be scheduled (potential charter amendment outreach to begin in January 2027 and street sweeping ordinance), two are unfunded and will need to be considered with the next budget (wilderness trail plan and mailers to promote city events), and the remaining four are tied to future development (engagement on improvements to Chuperosa Lane, SunLine development of a transit hub, locating a PACE provider in the city, and acquisition of underutilized site on Cathedral Canyon).

Measure W Update
Staff continue to make strides upholding the promises made to the community through the approval of Measure W, the voter approved tax measure. Measure W had four objectives:
neighborhood street improvements, improved emergency medical response, annexation into the Desert Recreation District, and development of a community center.

Neighborhood Street Improvements
The city has developed a comprehensive five-year plan for street improvements, with Measure W providing an additional $1 million annually dedicated specifically to neighborhood streets. Measure W funds provide additional capacity to improve the city’s roadways and is in addition to existing funding from SB 1 state gas tax funds and $1 million in required maintenance of effort local matching funds.

Projects scheduled for the first year (FY 2025-26) included grinding and slurry seal on Panorama neighborhood streets (Los Gatos, Durango, and Panorama roads) and complete reconstruction of Corta and Alcita streets. All projects have been completed. For year two (FY 2026-27), scheduled projects include slurry seal for streets south of 30th and north of Vega-west of Date Palm, plus the Dream Homes neighborhood. All are projected to be completed this fiscal year.
8%
12%
52%
28%
Not Started On Hold In Progress Completed
City Council Priority Initiatives
2 2

Future years will address:
• Year 3 (FY 2027-28): Slurry seal in the Cove neighborhood south of Terrace • Year 4 (FY 2028-29): Tortuga and Concepcion street reconstruction • Year 5 (FY 2029-30): Slurry seal in the Cove neighborhood north of Terrace Improved Emergency Medical Response
To maintain emergency response times amid increasing service calls, Measure W funded the acquisition and staffing of a fourth ambulance. The City Council has already approved the purchase, along with authorizing six new firefighter/paramedic positions to provide 24/7 staffing. All of the new firefighter/paramedic positions are filled and the new ambulance was put in service on July 1, 2025.

Additionally, the Police Department was authorized to hire two additional dispatchers to support emergency medical dispatch (EMD). The new dispatch positions were funded through the general fund. Both positions have been hired; however due to staffing vacancies, EMD has been unable to be implemented. Statewide smaller cities, such as Cathedral City, are having difficulty implementing EMD on their own. Acting Chief Sanchez is exploring various options to implement the program.

Desert Recreation District Annexation
Measure W enabled Cathedral City to join the Desert Recreation District, providing residents with expanded parks maintenance and recreation programming. On February 12, 2025, both the City Council and DRD board approved the service and tax sharing agreements necessary to make this partnership official. However, due to transitions in executive leadership at DRD and financial hardships being faced by the district, the district has not yet begun the process to annex Cathedral City. Tonight’s report by DRD staff on the district’s finances will provide the City Council an update on the annexation and efforts the district is taking to balance its budget. Until a clearer financial picture is understood, the city will continue to directly contract for services with DRD instead of pursuing annexation.

On July 22, 2026, DRD staff presented an update on park maintenance and programming to the City Council. The original one-year agreement both agencies approved outlining the initial levels of services for park maintenance and programming has expired as it was only intended to be a short-term agreement. Staff are awaiting an updated proposal from the DRD for costs for FY 2026/27 to initiate a 2-3 year agreement for services.

Community Recreation Center
On July 9, 2025 the City Council approved a professional services agreement with Group 4 Architecture, Research + Planning to conduct a feasibility study for the future community center. Over the course of four months, Group 4 and staff, with input from the City Council studied nine sites which included city owned property, vacant property, and reuse of existing structures. Considerable community outreach was conducted through online surveys, stakeholder meetings, self-serve kiosks, and various events including the Hispanic Heritage Month Block Party, James Workman Middle School Parents Night and school lunch outreach, and Movies in the Park to seek input on what type of community activities and spaces were most desired by our residents. Follow up engagement focused on the types of aesthetics the community wanted to see in the future center. Group 4 presented to the City 3 3

Council in October 2025 and February 2026 to receive updates on the study and allow opportunities for input. On February 25, 2026, the City council received the final study document and gave staff direction to continue evaluating four sites:
The “Old Burlington” site (non City-owned)
The “Old Walmart” site (non City-owned)
The Library site (City-owned)
The site near the Salvation Army (City-owned)
The City Council also sought to explore additional financing options, such as lease-purchase, that could allow for the development of a larger site that would not be feasible with currently available funding. Staff have been working with Kosmont Companies to develop a workshop for the City Council to discuss options for funding and delivering a community center. Once the final proposal is received, the workshop will be scheduled as soon as feasible.

Staff has also discussed scheduling a tour for the City Council of local community centers to provide context to what types of programs and spaces could be achieved in a variety of sized centers.

FISCAL IMPACT:

Initiatives in the strategic plan are funded through the budget process and are included in the current budget. Unfunded items are brought to the City Council for review and budget authorization.

FIVE-YEAR STRATEGIC PLAN:

Goal A: Serve The Community With Pride and Dedication
Goal B: Community Investment
Goal C: Fiscal Stability and Sustainability
Goal D: Innovation
Goal E: Safety
Goal F: Embracing, Inclusive Community
ATTACHMENTS:

1. City Council Priority Initiatives

2. 5-Year Strategic Plan

3. Completed Items
4 4

City Council Priority Initiatives
Action Description Status Department
A2 Explore and solicit feedback on potential charter
amendment to include Council salaries, term limits,
and others
Not Started City Manager Staff creating a workplan to begin in January 2027 to solicit community
and City Council input on desired
amendments.

B1 Develop an electric vehicle transition plan to comply with upcoming state mandates and include
consideration of providing publicly available charging
stations.

In Progress Public Works Professional Services Agreement on 8/12/26 agenda for Climate Action
Plan, which will include EV transition
plan.

B-2 Develop an entryway, medians, and lighting master
plan to provide an appealing gateway to the City.

Completed Public Works New entryway sign installed at
eastern entrance on E. Palm Canyon
completed 6/26. Next location at
western city entrance on E. Palm
Canyon.

B3 Develop and implement a wilderness trail plan. Not Started Public Works Currently unfunded B4 Complete design and seek funding to construct the
downtown dog park and pickleball courts.

In Progress Public Works 100% plans, specifications, and estimates completed. Eligibility for
state park funding contingent on city
replacing former Second Street Park
land.

B5 Conduct community engagement with Cove
residents on proposed improvements to Chuperosa
Lane.

On Hold Public Works To be coordinated with the
development of the 5 city-owned
acres downtown.

B6 Improve pedestrian access to parks through the use
of crosswalks and sidewalk improvements.

In Progress Public Works HSIP projects begun in FY 25/26 focused on updating pedestrian
crossings.

Annual crosswalk striping refresh
B7 Improve wayfinding signage to direct visitors to
destinations in the city
In Progress Communications First phase installed; second phase scheduled to be complete the week of
6/22/26.

B10 Conduct site and cost analysis for our Community
Recreation Center
In Progress City Manager Feasibility study completed 2/25/26.

Council direction to continue to review 4
sites. Tour of area community centers
being scheduled. Reviewing proposal for
funding strategy assessment.

B11 Support SunLine’s efforts to develop an improved
transit hub in Cathedral City.

On Hold SunLine moved driver rest area/transit
hub to the stop in front of the casino.

Future discussion of a transit hub will be
coordinated with development activity.
5 5

City Council Priority Initiatives
Action Description Status Department
B12 Support locating a PACE healthcare provider in the
city
Assess need for a PACE healthcare center and identify
suitable properties; recruit possible developers.

Contact medical providers who have expressed interest in moving or expanding to Cathedral City.

On Hold City Manager Requires a PACE provider desiring to expand into the city. ED has been in
contact. No interest at this time.

ED has contacted Discount Medical Inc.
who expressed interest as well as a
developer working with Riverside County
to expand the current DPSS Offices.

B13 Prioritize Funding for Date Palm unfunded roadway
segment repairs.

In Progress Public Works Ongoing. Exploring all opportunities for funding.

B-17 Research implementing a street sweeping ordinance Not Started Public Works/Code
On future agenda list to schedule.

B-18 Research options to address mailboxes that impact
sidewalk ADA accessibility
In Progress Public Works Study session scheduled for 8/12/26 RFP for development of ADA
Transition Plan issued; scheduled to
award at 8/26/26 City Council
meeting.

C-1 Implement improvements to purchasing practices
and procedures to align with procurement code
requirements
In Progress
Develop centralized purchasing and organizational
standards for multi-departmental common purchases
(e.g. shirts, embroidery) to include creating a credit
card policy
In Progress Financial
Services
Credit Card policy currently being
drafted
Municipal Code Review Chapter 3.12 (Contracts
and Purchasing)
In Progress Financial
Services
Code updates have been drafted;
coordinating with departments and
auditors to review. Will provide to
City Council for review in Fall, 2026.

Technology Procurement Policy In Progress IT Policy for technology procurements drafted which requires IT review of all
technology before purchasing.

Finalizing procedures for review.

C-3 Consider the acquisition of an underutilized site on Cathedral Canyon and work to activate the site.

On Hold CEDD Appraised in 2025. Substantial
difference between valuation and
offering price. ED staff recently
contacted property owner for an
6 6

City Council Priority Initiatives
Action Description Status Department
update and met with an affordable
housing developer about the property.

C-6 Implement a private development entitlement and
plan review system which is predictable, streamlines
internal intake and review processes, and creates
applicant experiences which are facilitative vs.
regulatory.

Completed Key initiative – implementation of EnerGov for all online processing fully implemented. Fee updates are
completed each July 1 as needed.

Standardizing processes for development
entitlement
In Process PW Engineering continues to develop
standards and updates; CCMC
standards related to stormwater
adopted 5/27/26
Standard submittal plan templates in
final review.

Deploy Digital Inspection Program (DIP) Completed Building Launched 4/25, allows applicants to submit permit applications and
corresponding work photos online
where they are assigned, reviewed
and finalized in an accelerated
timeframe. Currently being
expanded to include electrical panel
replacements, residential solar and
battery systems, residential patio
covers, temporary construction power
poles, simple fence and wall permits.

C-7 Continually review and streamline internal financial policies, procedures, and practices to remove
unnecessary controls without sacrificing
accountability and transparency
In Progress
Provide regular updates to the City Council on
revenues and expenditures
Completed Financial
Services
Mid-year (Jan/Feb) and end of year
(Sept/Oct) reviews; March 2026
began providing monthly
revenue/expenditure updates in the
City Manager’s weekly report.

D-1 Implement Information Technology Master Plan
including consideration of providing additional wi-fi
access in parks.

In Progress
7 7

City Council Priority Initiatives
Action Description Status Department
IT Master plan initiatives: Office 365 security, Upgrade Firewall, UPS, Managed Detect and Response, IT
Steering Committee
Completed IT All budgeted projects completed. IT
steering committee formed and
meeting monthly.

Provide public Wi-Fi access in parks In Progress IT City-owned WiFi access available in the Amphitheater, Panorama Park,
and Town Square. Spectrum WiFi
provided for subscribers at Dennis
Keets Soccer Park and Ocotillo Park.

D-2 Complete and improve the installation of the Tyler
EnerGov software to automate, improve and
streamline the plan review, permitting and inspection
process.

Completed IT/CEDD/PW/F
S
System is fully operational. IT,
Building and Planning collaborated to
incorporate the final planning
inspections through the EnerGov CSS
portal to streamline the inspection
process.

D-3 Work with operations staff to identify, implement and support the implementation of technology solutions
to bolster IT security and improve operational
analytical, and management functions
In Progress
Implement copywriting of the city’s brands In Progress CM/COMS Working with legal to accomplish Implement electronic filing for candidate statements
and Form 700
Complete City Clerk/IT System implemented, training
provided.

Implement strategies for facilitative, transparent
election process
In Progress City Clerk Q & A session set with city attorney and prospective candidates.

Candidate status updated on election
website.

Upload all existing prior years of candidate filings
into Laserfiche
Complete City Clerk Available documents are all online in Laserfiche
E-3 Continue Police, Fire, and Expand Code Compliance
Engagement with the Community
In Progress Police/Fire/Cod
e Enforcement
Ongoing - See full report for details
Address concentration of unhoused individuals
downtown and its impacts
In Progress Police HLO officers helped host two
homeless outreach events (4/29 with
Riverside County in Cathedral City
and in July with Palm Springs PD).

CCPD, City Manager’s Office, and
Facilities staff working with library
staff to address problems of loitering
and disruptive behavior in and around
the library, impacting safety of staff
8 8

City Council Priority Initiatives
Action Description Status Department
and patrons. Increased police patrols
homeless outreach events
coordinated by the library, increased
security measures and improved
communications have already had
positive impacts.

Develop communications campaign to address
speeding
In Progress PD/PW/CM Public Works works with the CCPD
and Communications to address
speeding concerns. The departments
will support public awareness
campaigns aimed at educating
residents about speed limits,
pedestrian safety, and the importance
of responsible driving.

Additional information on enforcement
efforts attached.

Identify and provide specific training on community
engagement for field personnel
Completed PD Four officers, two sergeants, and one
commander have successfully
completed the Community Policing
course through the National Center
for Policing Innovation,
The department's LGBTQ+ liaison
officer attended the LGBTQ Liaison
Academy,
Completed Autism Awareness
Training through the California
Commission on Peace Officer
Standards and Training (POST),
Personnel have also completed
POST Racial and Identity Profiling
(RIPA) and Implicit Bias Training
Review code enforcement staffing and deployment,
including identifying opportunities to use volunteers
In Progress Code Study session on proposed volunteer
program conducted 7/22/26; staff will
proceed with the pilot program. With
the award of the Prop 64 grant, Code
Enforcement will hire an additional
officer for cannabis enforcement.

F-2 Prioritize updating the zoning code regarding
residential parking and paving provisions; research
Completed PW/CEDD Ordinance adopted 1/25 to limit parking in front of mailboxes and implement zoning
9 9

City Council Priority Initiatives
10 10

City Council Priority Initiatives
Action Description Status Department
and give recommendations on enabling parking
prohibitions in front of mailboxes.
code updates for the amount of area that
can be improved for parking on single-
family residential and residential estate
properties. Code Compliance is now
enforcing.

F-3 Promote additional community events and
celebrations
In Progress COMM Full list attached.

F-6 Develop and implement a plan to improve and
diversify communications methods with residents
In Progress COMM RFP issued for comprehensive,
integrated communications plan;
scheduled for award of contract on
8/12/26
Research costs of creating a mailer to be sent to
every household to promote annual city events
On Hold COMM Dedicated direct mail pieces to every
household is approx.. $13,000 per
mailing. Currently not budgeted;
could be evaluated in next bi-annual
budget.

F-10 Continually communicate with the public to inform
the community of the City’s efforts and expenditures
on homelessness and how residents can participate
in solutions
In Progress COMM Dir. Of Communications &
Engagement regularly works with staff
on the Homelessness Task Force to
develop and showcase stories of the
city’s efforts. Most recently, promoted
the Homeless Outreach Event
4/2026.

Schedule periodic updates from CVAG Housing First
to provide updates on their services to Cathedral
City
Completed CM/Fin Svcs. Updated provided on 3/11/26 on the Housing First Program. This update
will be scheduled annually.
11 11

CITY OF CATHEDRAL
CITY
5 YEAR STRATEGIC PLAN
City Council Update
August 12, 2026
12 12

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13 13

14 14

 Define outcomes
 Identify issues and priorities
Understanding the
Context
Establishing a
Framework
Draft & Adopt
Strategic Plan
 Refine the vision and
values
 Develop goals
 Develop strategies and
actions
 Develop Draft Strategic
Plan
Implementation
 City Leadership Team track
progress – weekly
meetings
 Added goals to City Council
staff reports
 City Council updates
 Adjust when needed
 Living document
Council Interviews
City Leadership Team
Workshop # 1
Community Survey
City Leadership Team
Workshop #2
Council Workshop #1
City Leadership Team
Workshop # 3
City Council Adoption –
4/12/23
Council Workshop #2
Strategic Plan Overview
December February April August
15 15

16 16

17 17

VALUES/VISION/MISSION
The City's Values, Vision and Mission Statement create the foundation and framework for the Strategic Plan since collectively, they articulate our purpose, core beliefs and principles guiding how we serve our community, and our aspirations for the future. They also drive the Strategic Plan Matrix of Goals, Objectives, and Actions which inform department work programs and priorities.

OUR VALUES

OUR VISION
Cathedral City is a safe, family-oriented community that values, respects, and supports human differences and diverse perspectives. We strive to be a vibrant, progressive, enterprising, and visually attractive community. Our diverse housing options and vibrant businesses attract residents and visitors who choose Cathedral City for its culture, arts, special events, and natural resources.

OUR MISSION
Moving Cathedral City Forward with Commitment, Pride, and Excellence Creating a safe, inclusive, and progressive community
Providing quality service
Valuing fairness, balance, and trust
Building partnerships
Honoring our similarities and differences
Celebrating our independent spirit
18 18

GOALS AND OBJECTIVES
Goals and Objectives identify key focus areas and strategies to achieve our vision, and which support and are aligned with ou r Mission and Values. They also represent aspirations for our community and will be used to guide and inform department work programs and priorities.

Goal A - SERVE THE COMMUNITY WITH PRIDE

AND DEDICATION
Objective: Through diversity, equity, and inclusion
driven employee programs and experiences, Cathedral
City is the employer of choice with a workforce that is engaged, motivated, and respected public stewards.

Goal D – INNOVATION
Objective: Cathedral City continually focusses on improving service delivery and customer experiences by successfully leveraging technology and creative initiatives to improve public services, public safety, and stimulate economic
growth.

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

Goal E - SAFETY
Objective: Cathedral City is safe for all who live, work, visit, and play in our community.

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.

Goal F - EMBRACING, INCLUSIVE COMMUNITY
Objective: Cathedral City is valued and respected as a
community that welcomes and embraces diversity, has an
abundance of high quality and affordable housing options and vibrant businesses. Our neighborhoods are attractive, well-maintained, and issues surrounding homelessness have been compassionately
19 19

20 20

GOAL A- SERVE THE COMMUNITY WITH PRIDE AND DEDICATION

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
A-1 Schedule joint meetings once a year with our Commissions/Committees, perhaps using the “off” Wednesday.

CMO X X X
Dept Task Status
CMO Schedule joint meetings. Joint meeting with the Planning Commission was held on May 7, 2025. Continue to evaluate opportunities as necessary.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
A-2 Explore and solicit public feedback on a potential charter amendment to include Council salaries, term limits and others.

CMO/CITY CLERK X
Dept Task Status
CM Research and provide feedback to Council on types of charter amendments.

City Attorney’s Office to review and provide memo to the City Council on types of charter amendments. Staff to create a work plan in January, 2027 to solicit community and city council input on any desired amendments for review and possible inclusion on the 2028 election.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
A-3 Develop and implement a professional development program to enhance career development opportunities, strengthen organizational capabilities, and increase organizational capacity.

CMO/HR X X
Dept Task Status
HR Expand the current LCW certification program to
encompass Customer Service Excellence Certificate
In 2024-2025, the city had 14 participants in the LCW consortium. Of these participants, two (2) have completed the Public Sector Employment Relations Certificate Program, while the remaining participants continue their coursework. A total of four (4) employees have obtained their certificate of completion. The city maintains ongoing participation in the LCW Consortium for continued professional 21 21

GOAL A- SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
development opportunities.

To enhance program effectiveness and increase staff engagement, HR is exploring the development of a tailored in-house program that would be more attractive and relevant to our agency's specific needs. This initiative aims to integrate customer service excellence components into the existing leadership development program, creating a comprehensive certification that addresses both leadership skills and customer service excellence, thereby better serving our organizational goals and community needs.

HR Provide department-specific technical training for at least 50% of staff based on skills assessment
A comprehensive survey was developed and distributed to all employees to identify specific technical training needs unique to each department. The purpose of this assessment was to provide Human Resources with insight as to what type of training City staff and leadership were interested in seeing.

FIN SVCS Accounting and Finance Training
Facilities Training
California Society of Municipal Finance Officer’s (CSMFO) and Government Finance Officer’s Association (GFOA) Accounting and Budget Classes Tyler Enterprise Resource Planning (ERP) Munis Training PERMA training,, e.g., Skills and Safety Training
PW Provide department- specific training The Public Works Department holds annual trainings to ensure personnel remain current with safety protocols, regulatory requirements, standard operating procedures, and best management practices, while also enhancing employee skills that support operational efficiency and potential career advancement.

Public Works Maintenance trainings include, but are not limited to, Defensive Driving, E-Waste Handling, Heat Illness Prevention, and Operator Lift Safety. In addition, maintenance staff attended the West Coast Arborist Lunch Meeting to learn proper maintenance procedures and reinforce best practices for safe and effective operations.

In November 2025, Assistant Engineer Andres Perez completed the Resident Engineer Academy Program, hosted by California Department of Transportation (Caltrans).
22 22

GOAL A- SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
In April 2026, Public Works Maintenance and Engineering staff attended the PWX Conference to learn new innovative strategies related to street improvements and maintenance. Additionally, the city’s Assistant Engineers completed the American Public Works Association (APWA) Green Book Seminar, which focused on specifications writing, contract requirements, and application of standard specifications for public works projects. The training will support improved preparation of contract and specification documents for city construction projects.

HR City-wide training HR staff actively participate in various webinars and conferences throughout the year that are directly related to their job duties and professional development. This includes specialized training through NeoGOV for recruitment processes, CalPERS for retirement and health benefits administration, CPS for classification and compensation matters, and participation in HR roundtables for industry best practices and networking. Additionally, our staff participates in the LCW consortium for labor relations training, ensuring we stay current with best practices and regulatory requirements in employee relations and labor management. The LCW consortium training opportunities are made available to all employees across the organization, providing agency-wide access to professional development in labor relations and leadership skills.

All department heads and other key staff from across the organization participated in two-day EOC training in November, 2025 and January, 2026 culminating in a ½ day tabletop exercise on January 28, 2026. All staff with an EOC role have taken required FEMA coursework online.

The City has partnered with Regional Government Services Spring 2026 Analyst Boot Camp Virtual Analyst Skills Building training. The 6-month Boot Camp is from May-November 2026. Currently nine (9) employees are participating. Analysts play a vital role in ensuring agency missions, programs, and projects succeed. This comprehensive boot camp equips participants with a well-rounded foundation of essential skills needed to excel as local government analysts. 23 23

GOAL A- SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
Fire Dept
IT conducted a tabletop exercise with the executive team on responding to a ransomware attack.

Career Development and Succession Planning
Cathedral City Fire & EMS has invested heavily this year in developing our people and building the leadership bench. Two internal academies now in process: a Fire Captains Academy and an Engineers Academy, both designed to give interested personnel a structured learning environment to master the skills their next role demands.

The Fire Captains Academy consists of five weeks of training delivered across five separate modules. Each module runs anywhere from three to five days depending on the subject matter, allowing us to give appropriate depth to the more complex material. The goal is straightforward: provide all interested personnel the information and the environment to learn every skill necessary to succeed as a Fire Captain. We are currently halfway through the academy, anticipate completing it by September 2026, and will run a Captain testing process in October 2026.

We applied that same proven methodology to the Engineers Academy. It consists of two classes, Driver Operator 1A and 1B along with the State Fire Marshal Driver Operator 1A and 1B, supported by six sessions of hands-on driver operator training. Those sessions cover vehicle checkout, pump operations, firefighting operations, and the other essential skills of the position, including driving, backing, and apparatus setup. We have completed Round One of the Engineers Academy and, because additional personnel have since expressed interest, we are launching a second round. Round Two begins in August and is anticipated for completion in September 2026.

Together, these academies reflect a deliberate commitment to succession planning and professional growth. By building these skills in-house, we strengthen our promotional pipeline, deepen our operational readiness, and continue to develop the next generation of leaders from within our own ranks. 24 24

GOAL A- SERVE THE COMMUNITY WITH PRIDE AND DEDICATION

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
f 2-5
A-4 Identify initiatives and establish programs that recognize and appreciate employees for performance, innovation, and efficiency.

CMO/HR X
Dept Task Status
HR Enhance existing employee recognition programs with
quarterly department-level recognition events
HR staff have successfully transformed the City Manager’s quarterly meeting format from a traditional information-only session to an interactive, comprehensive employee recognition platform. All departments now have the opportunity to recognize employees and teams for specific projects or initiatives, fostering a culture of appreciation and cross-departmental collaboration.

Staff continues to enhance the program by making it accessible via Zoom to accommodate remote participation and ensure all employees can attend regardless of location. Additionally, staff have incorporated visual elements by adding pictures to employee recognition segments, including tenure milestone celebrations and new hire introductions. This multimedia approach has increased engagement and creates a more personal connection during the recognition process.

Conduct semiannual Longevity Luncheons with the City Manager to recognize employees celebrating service anniversaries and express appreciation for their continued commitment and contributions to the organization.

HR Develop an annual “Innovation and Efficiency” award
program with implementation of selected employee ideas

PENDING - EXPLORE THE CREATION AND DECIDE ON CURRENT
RECOMMENDATIONS OF AN ANNUAL PROGRAM.

Staff have developed a comprehensive annual “Innovation and Efficiency” award program designed to recognize and implement employee-generated ideas that improve workplace processes and organizational effectiveness. The program framework is currently awaiting approval and is expected to be in place by the next city quarterly meeting in August. This initiative will create a structured process for employees to submit innovative ideas, establish criteria for evaluation and 25 25

GOAL A- SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
selection, and provide recognition for contributors whose ideas are implemented to benefit the organization.

PW/ENG Recognize and appreciate employees for performance, innovation and efficiency
The Public Works Department regularly recognizes its employees at the City Manager’s Quarterly Meetings. Recognition includes outstanding customer service, project achievements, educational accomplishments, and certification completions.

At the May 13, 2026, City Council meeting, City Council proclaimed that Cathedral City will recognize Public Works week from May 17-23, 2026, in collaboration with the American Public Works Association (APWA).

CEDD Recognize and appreciate employees for performance, innovation and efficiency
The Community and Economic Development Department recognize its employees at the City Manager’s quarterly and monthly department meetings. Recognition includes customer service, project achievements, implementation of operational efficiencies, and professional and educational achievements.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
A-5 Develop staff team-building activities to encourage cohesion and foster a spirit of collaboration.

CMO X
Dept Task Status
HR/CMO Organize two city-wide team-building events per year that promote cross-departmental collaboration.

PENDING – REVIEW AND DISCUSS TEAM BUILDING EVENTS WITH NEW CITY MANAGER.

Currently, we have not had a consistent team-building event program in place. The new HR Manager will evaluate our organizational needs and develop a plan for implementing two city-wide team-building events annually. This evaluation will determine the most effective ways to promote cross-department collaborations, select appropriate event formats, and create a sustainable, cost-effective schedule that brings together staff from all departments.
26 26

GOAL A- SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
July 2, 2026 – Nacho bar luncheon to celebrate the World Cup finals.

July 21, 2026 – Summer potluck
PW Public Works Department team-building event. In celebration of Public Works Week May 17 - 23, the department hosted a team- building lunch designed to strengthen collaboration, boost morale, and recognize the vital contributions of staff.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
A-6 Initiate a Class and Compensation Study to benchmark and proactively identify compensation issues impacting employee retention and attraction.

HR X
Dept Task Status
HR Complete comprehensive Classification and
Compensation Study
The project is currently in progress. The contract will be brought to the City Council in August, 2026 for approval. Once selected, Human Resources will meet with the vendor to finalize a timeline for the classification and compensation study to ensure completion by the established goal date. After the timeline is finalized, the next steps include launching the data-collection phase, coordinating stakeholder interviews and surveys, reviewing preliminary findings, and guiding the project through analysis, recommendations, and final report completion.

HR Develop a phased implementation plan for recommended adjustments with a priority focus on positions with highest vacancies and turnover rates

PENDING COMPLETION OF CLASSIFICATION AND COMPENSATION STUDY The development of a phased implementation plan will commence upon completion of the comprehensive Classification and Compensation Study. Once the study identifies specific compensation adjustments and recommendations, we will analyze current vacancy and turnover data to prioritize positions experiencing the highest rates of departure and recruitment challenges. The implementation plan will be structured in phases to ensure budget considerations and operational continuity while addressing the most critical retention issues first.

ACTION ACTION DESCRIPTION LEAD YEAR YEAR YEAR
27 27

GOAL A- SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
DEPARTMENT 0-1 1-2 2-5
A-7 Implement the Strategic Plan by ensuring department work programs include initiatives that achieve Strategic Plan Actions and regularly review progress and accomplishments at City Manager Department Head Meetings.

CMO X X X
Dept Task Status
CM Department Head Staff Meetings Goals are regularly reviewed quarterly at department head staff meeting. City Council update scheduled for August 12, 2026.

CM Incorporate into the budget The budget included the strategic plan goals, and each department discussed their accomplishments and goals and objectives for the budget period in alignment with the adopted strategic plan goals. – ONGOING.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
A-8 Include a Community Satisfaction Survey in the future budget to monitor community support and satisfaction with Strategic Plan outcomes and to objectively gather community opinions, preferences, and satisfaction with city services.

CMO X
Dept Task Status
CMO FM3 Survey Included $50,000 in FY 2025/2026 budget. The survey was conducted in January, 2026 and the results presented at the 2026 Strategic Planning and Goal Setting Session on February 7, 2026. The next survey will be budgeted for in FY 2028/2029 with a plan to conduct the survey in the fall of 2028 prior to the annual Strategic Planning and Goal Setting Session. COMPLETE.

ACTION ACTION DESCRIPTION LEAD DEPARTMENT YEAR
0-1
YEAR
1-2
YEAR
2-5
28 28

GOAL A- SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
A-9 Develop a Summer Council schedule with the objective of one meeting per month in June, July and August.

CMO X X X
Dept Task Status
CM Establish a summer Council schedule The June 24, July 8, September 9, and September 23, 2026, meetings will be vacated for the summer.

Additionally, November 11, November 25, and December 23, 2026 will be vacated, and Special Meetings will be called for September 16 and November 10, 2026.

ACTION ACTION DESCRIPTION LEAD DEPARTMENT YEAR
0-1
YEAR
1-2
YEAR
2-5
A-10 Develop a Department Head Recruitment Process with Council and Community Input
HR
Dept Task Status
HR Establish a department head recruitment process with City Council, Community and employee input.

Human Resources led the recruitment of the Community and Economic Development Director. The process incorporated input from City Council, the community, and Community and Economic Development Department staff. This resulted in the successful hiring of the new Community and Economic Development Director.

The recruitment of the City’s next Police Chief is currently underway. Human Resources is conducting the process using the same approach applied during the Community and Economic Development Director recruitment, incorporating broad stakeholder engagement and a thorough, inclusive selection process. 29 29

GOAL B- COMMUNITY INVESTMENT

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-1 Develop an Electric Vehicle transition plan to comply with upcoming state mandates and include consideration of providing publicly accessible charging stations.

PW X
Dept Task Status
PW Work with CVAG and other Coachella Valley Cities to
develop a Climate Action Plan that includes an Electric Vehicle Transition Plan as a key component.

The Coachella Valley Association of Governments (CVAG), in collaboration with regional partners, completed the Regional Comprehensive Climate Action Plan (CCAP), which serves as the framework for local climate planning throughout the region. The CCAP was presented to the City Council during the January 8, 2026 Study Session.

Building on this regional effort, City staff met with ICF, the consultant that prepared the Regional CCAP, to discuss updating Cathedral City's 2013 Climate Action Plan. The proposed update will leverage the completed regional technical analysis and modeling while incorporating Cathedral City's existing greenhouse gas reduction initiatives, local priorities, and community-specific strategies. The updated Climate Action Plan will also include recommendations for a municipal Zero-Emission Vehicle (ZEV)/Electric Vehicle (EV) Transition Plan and strategies to support public and commercial EV charging infrastructure.

City staff is currently evaluating ICF's proposed scope of work and contract. The goal is to present the proposed Climate Action Plan update and professional services agreement to the City Council on August 12, 2026, with the completed Climate Action Plan anticipated in early 2027.
30 30

GOAL B- COMMUNITY INVESTMENT
31 31

GOAL B- COMMUNITY INVESTMENT
PW Electric Vehicle Purchases The Public Works Fleet Division continues to advance the City’s sustainability goals through the ongoing integration of electric vehicles (EVs) into the municipal fleet. The City currently has a total of six EVs in its fleet, which includes two EVs purchased since January 2026, further supporting emissions reduction efforts across City operations.

The Police Department continues to evaluate and incorporate electric vehicles into its fleet where operationally appropriate, maintaining its commitment to modernizing vehicles while balancing public safety needs. This effort has included introducing the first electric vehicles in the Coachella Valley utilized by Community Service Officers (CSO) and School Resource Officers (SRO).

Looking ahead, staff remains committed to evaluating electric vehicle options for all future vehicle replacements and new purchases, including planned expansion of the EV fleet to Code Enforcement and Building divisions. This includes assessing available EV models for suitability across departmental functions, infrastructure readiness, and lifecycle cost effectiveness. Sustainability and operational efficiency will continue to be key considerations in the City’s vehicle procurement strategy.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-2 Develop an entryway, medians, and lighting master plan to provide an appealing gateway to the City.

PW/ENGIN X
Dept Task Status
CM/PW/
ENG
Purchase and install entryway monuments on East Palm
Canyon Drive.

The Engineering Division has allocated funding in the FY 2026–2030 Capital Improvement Program (CIP) for the installation of one entryway monument annually, subject to funding availability. The first monument, to be installed in the median on East Palm Canyon Drive at the eastern city limits, is funded using Councilmember funds from Councilmember Ross. The construction of the first monument was completed in June 2026.
32 32

GOAL B- COMMUNITY INVESTMENT
The second monument, which will be located on East Palm Canyon Drive at western city limits, is included in the plans and specifications being developed for the East Palm Canyon Master Undergrounding, Widening, and Traffic Signal at Cree Road project. Staff expect to recommend the award of a construction contract at a City Council meeting in October 2026.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-3 Develop and implement a wilderness trail plan. PW X Dept Task Status
PW Initiate an RFP for a wilderness trail plan The Public Works Department will issue a Request for Proposals (RFP) for the Wilderness Trail Plan once funding becomes available. In the interim, the Public Works Manager will continue participating in the quarterly Coachella Valley Conservation Commission meetings to coordinate regional trail planning efforts, with the next meeting scheduled for September 2026.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-4 Complete design and seek funding to construct the downtown dog park and pickleball courts.

PW/ENGIN X X
Dept Task Status
ENG Downtown Dog Park Design 100% plans, specifications, and estimates (PS&E) are completed. On October 22, 2025, Engineering staff provided an update about the Downtown Dog Park and Pickleball Courts to City Council. The update included the latest design progress for the park and an overview of the grant eligibility and land use requirements established by California State Parks. Also on October 22, 2025, the Public Works Director and City Engineer met with representatives from Assemblymember Greg Wallis’ office to present the Downtown Dog Park Project. The meeting focused on the status of the park’s development and the legislative requirements imposed by California State Parks under the bond acts that funded the former Second Street Park. The Public Works Director and City Engineer continue to meet with the Assemblymember’s office and are now working with a legislative affairs 33 33

GOAL B- COMMUNITY INVESTMENT
representative to continue moving this process forward.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-5 Conduct community engagement with Cove residents on proposed improvements to Chuperosa Lane.

ECON DEV/PW X
Dept Task Status
PW Chuperosa Lane General Maintenance
Public Works Maintenance continues to maintain the area on a regular basis and will consider proposed improvements as they are submitted. Coordinate with the development of the 5 city-owned acres downtown.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-6 Improve pedestrian access to parks through the use of crosswalks and sidewalk improvements.

PW/ENGIN X X
Dept Task Status
ENG/PW Design crosswalk and sidewalk improvements to improve pedestrian access to parks.

Several Highway Safety Improvement Program (HSIP) projects began construction during FY 2025-26, with a focus on updating pedestrian crossings.

Construction contracts have been awarded for HSIP 11B- Signalized Pedestrian Crossings, HSIP 11C- Citywide Traffic Signal Hardware Upgrades, and HSIP 11D- Pedestrian Crossing at 30th and San Eljay. HSIP 11B began construction in May 2026. HSIP 11C began construction in March 2026 and is currently paused due to delay in lead times. Construction will resume again in July 2026. HSIP 11D began construction in June 2026.

A construction contract was awarded for HSIP 11A- Citywide Pedestrian Crosswalk Upgrades project at the May 27, 2026, City Council meeting.

Construction is expected to begin by July 2026.

In addition to the Engineering projects focused on crosswalk and sidewalk improvements, Public Works Maintenance annually refreshes crosswalk striping 34 34

GOAL B- COMMUNITY INVESTMENT
as needed and addresses sidewalk hazards to help ensure safe and accessible pedestrian routes throughout the community.

PW/ENG Utilize City Council Member Funds to improve pedestrian access throughout the city.

The Public Works Department will continue to evaluate potential locations where City Councilmember improvement funds can be used to enhance pedestrian access through crosswalk or sidewalk improvements.

Completed: The Cathedral Canyon Sidewalk Project, funded by Councilmember Lamb, added sidewalk along Cathedral Canyon from Paseo Azulejo to Keiley Road. Construction was completed in June 2026.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-7 Improve wayfinding signage to direct visitors to destinations in the community. COM X Dept Task Status
COM Wayfinding signage update The updated wayfinding signage design was presented to City Council at a Study Session in September 2025 and received their support. Following production delays due to the sophisticated and detailed nature of the design, staff met with the vendor on January 28, 2026, and identified a solution. Installation will be complete the week of June 22, 2026. The new signage improves landmark information specificity and includes destinations built since the original 2016 installation.

The project is being implemented in phases over both years of the biennial budget, beginning with Downtown, and features enhanced signage promoting the Perez Art District. The Perez Art District sign unveiling will serve as a leadup event to the District's first fall art walk in September 2026. These updates reflect the community's growth and development over the past nine years.

PW Wayfinding Signage Communication The Public Works Maintenance division coordinated traffic control with the Communications Department and the Wayfinding Signage developers on installation and the City Engineer reviewed and approved all sightline compliance. 35 35

GOAL B- COMMUNITY INVESTMENT

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-8 Implement recommendations of Facilities Master Plan CMO/FIN X X X Dept Task Status
FIN SVCS 30 Action Items Identified in the July 2023 Facilities Master Plan
23 of 30 action items completed/ implemented in FY 2024/2025. 6 of the remaining 7 items were completed in FY 2026/2027. The remaining item requires a 2 nd opinion to determine validity (TBD):

Parking Structure
Remove the abandoned generator
Repair cracks in elevated slabs
Replace sealants on levels 1 & 2
Apply elastomeric coating on cracking columns
Replace traffic coatings at the four stairs and on the roof level Repair holes in EIFS (Exterior Insulation Finishing System) Repair 500 feet of barrier cables (TBD)

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-9 Continue to work on Septic to Sewer grant. Make sure Sarah St. is included and other economic development efforts.

PW/ENGIN/ECON
DEV
X X X
Dept Task Status
ENG CWSRF Septic to Sewer Planning Project The State Water Resources Control Board (SWRCB) approved the Preliminary Engineering Reports in March 2026 and authorized the City to proceed with environmental review and the development of Plans, Specifications, and Estimates (PS&E). The CVWD 30% PS&E has been submitted by Ardurra (Design Consultant) and is currently under review by city staff and CVWD. The DWA PS&E is scheduled to be submitted by August 2026.

In parallel, City staff, in coordination with CVWD and DWA, and Ardurra , have begun preparing applications for Clean Water State Revolving Fund (CWSRF) 36 36

GOAL B- COMMUNITY INVESTMENT
construction grant funding to support the next phase of the project. Additioanlly, Environmental Review is underway for all project areas. The City has also executed Memorandums of Understanding (MOUs) with both CVWD and DWA to establish roles and responsibilities related to the design and construction of the proposed improvements.

The project remains on schedule to complete preliminary design, environmental review, construction grant applications, and final PS&E development in 2027.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-10 Conduct site and cost analysis for our Community Recreation Center. CMO X Dept Task Status
CM Conduct Feasibility Study. At the July 9, 2025, City Council meeting, the council approved a contract with Group 4 Architects to conduct the site selection and feasibility study for a future community center. Updates of the progress of the study were presented to the City Council in October 2025 and January 28, 2026. The final presentation of the study occurred on February 25, 2026. Council has narrowed the discussion to four sites for further analysis but are open to other options.

CM Financial Analysis Staff to hire consultant to conduct evaluation of potential financing options for future community center. An RFP was published with no bidders. Staff have reached out to receive feedback and have met Kosmont on 6/30. Staff are reviewing a proposal and will schedule funding workshops with the City Council.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-11 Support SunLine’s efforts to develop an improved transit hub in Cathedral City. PW/ENGIN X X Dept Task Status
37 37

GOAL B- COMMUNITY INVESTMENT
CM Discuss disposition of city owned land At the January 22, 2025, City Council meeting, representatives from SunLine made a presentation on a concept for a transit hub off of B Street. To accomplish this project in the location presented, it would require a portion of the adjacent city- owned land.

In February, Mayor Ross and city staff met with SunLine staff to discuss the AHSCP grant program, a program that provided funding for SunLine’s transit hub in Coachella. That hub was partnered with the development of an affordable housing project nearby.

At the July 9, 2025, City Council meeting, the council had a closed session presentation about the 5 acres of city owned land adjacent to the proposed transit center and provided direction to staff.

Staff are working to resolve an issue with Riverside County with one of the APNs.

Upon resolution of this issue, staff will return to City Council to initiate the SLA process on the 5-acre property.

February 26, 2026 – Staff from City Manager’s Office, Police, Public Works along with Councilmembers Ross and Lamb met with Sunline representatives to discuss concerns about vagrancy and drug sales near the B-Street bus stop. Sunline pulled one of the bus benches from the location and diverted route; now stopping in front of ACBCI CC Casino.

A follow up meeting was held on March 20, 2026 with the Senior Center to discuss impacts of route changes on the Senior Center.

On March 26, 2026, City and SunLine staff met again to provide an update on law enforcement efforts, the city’s efforts to fix lighting at the benches. SunLine presented an update on their routes at the March 26 city Council meeting

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-12 Support locating a PACE healthcare provider in the city. CMO X X Dept Task Status
CMO Assess need for a PACE healthcare center and identify suitable properties; recruit possible developers.

Staff will contact Wel Be Health to discuss future growth possibilities in Cathedral City.
38 38

GOAL B- COMMUNITY INVESTMENT
CEDD Contact medical providers who have expressed
interest in moving or expanding to Cathedral City.

We have contacted Discount Medical Incorporated, who is looking at coming to Cathedral City. We have also met with a developer who is working with Riverside County regarding an expansion of their Current DPSS Offices.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-13 Complete planned flood control infrastructure projects, especially as part of street improvement projects.

PW/ENGIN X X X
Dept Task Status
ENG Date Palm Drive Pavement Reconstruction Design is underway for improvements to the intersection of Los Gatos Road and Date Palm Drive as a part of the Date Palm Drive Pavement Reconstruction project. As included in the scope of work, HR Green (Design Consultant) will evaluate the drainage at this intersection to determine best flood control improvements. Currently, the hydrology and hydraulic study is being conducted.

ENG Prioritize Funding for Date Palm unfunded roadway
segment repairs.

The Public Works Department is working with the Financial Services Department to earmark funds.

PW Cypress Retention Basin Drain Inlet Expansion Completed: The Cypress Retention Basin Project has been completed, the drain inlet should help prevent localized flooding, reduce ponding during heavy rain events, and enhance overall drainage performance within the basin.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-14 Be vigilant in efforts to keep regional CVWD and RCFCD projects moving forward.

CEDD/ENGIN X X
Dept Task Status
ENG CVWD – Cathedral City Development CVWD is progressing with the North Cathedral City Flood Control Project to divert the Morongo Wash to the Whitewater River, with construction anticipated to begin in Spring 2026. The Public Works Maintenance Department continues to expend significant staff time and funding to remove mud and debris from curb and gutter 39 39

GOAL B- COMMUNITY INVESTMENT
areas along Date Palm Drive, Vista Chino, and 30th Avenue, as well as surrounding streets following storm events.

Until CVWD completes its portion of the project, storm-related activity may continue to negatively impact this area and require ongoing City resources. These maintenance issues are directly related to the pending completion of the CVWD North Cathedral City Flood Control Project.

ENG RCFCD - Varner Road Funding for improvements at several Varner Road crossings, including Willow Hill Outfall, Long Canyon Wash at Date Palm Drive, Edom Hill Outfall, and Morongo Wash, are included in the Riverside County Flood Control (RCFCD) 5-Year Capital Improvement Plan. Updated CIP project budget requests were presented in December 2025 at the annual RCFCD CIP Budget Public Hearing, proposing recommendations for inflation increases. The project funding was approved by RCFCD in April 2026. Quarterly update meetings have been scheduled with RCFCD as these projects near closer to construction.

PW Retention Basin Infrastructure The Public Works Maintenance and Engineering Departments continue to evaluate retention basins to ensure proper elevations and effective stormwater flow.

Tropical Storm Hilary and other recent storm events have reinforced the importance of this ongoing work.

La Paloma Retention Basin: Maintenance staff are currently rebuilding and regrading the basin located at the end of Da Vall Drive off of 30th Avenue to improve water flow and drainage.

Bob Hope/Varner Rd. Retention Basin: Maintenance staff will continue routine maintenance of the basin. In the future, maintenance responsibilities should be transferred to the new development in the area.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
40 40

GOAL B- COMMUNITY INVESTMENT
B-15 Investigate creating a dedicated left turn lane on Cathedral Canyon PW Dept Task Status
ENG Protective Left Turn Lane on Cathedral Canyon Drive and East Palm Canyon Drive
The Engineering Division developed an updated Local Roadway Safety Plan (LRSP) in coordination with the Police and Fire Departments. Incident data was analyzed as part of the plan’s development, and recommendations for countermeasures at this location were included in the report. The recommendations may be used by the City to prioritize future safety improvement projects and pursue grant funding. The LRSP was adopted by City Council in June 2026. Additionally, a preliminary high-level design meeting with Albert Webb (On- Call Traffic Engineering Consultant) was held the week of June 22, 2026.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
ddB-16 Provide more messaging to the community regarding the City’s progress on roads through strong communication campaigns

COMM/PW
Dept Task Status

PW/ENG/
COM
Collaboration between Public Works Department and
Communications Department regarding flood control and
streets projects
The Engineering Division holds weekly meetings with the Communications Department to discuss and coordinate public notifications and messaging related to CIP projects. The Public Works Director Community Update Letters include updates on stormwater and roadway infrastructure projects.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-17 Research implementing a Street Sweeping Ordinance PW Dept Task Status
41 41

GOAL B- COMMUNITY INVESTMENT
PW/CODE Research and conduct study session with the City Council on a street sweeping ordinance
Staff to research and bring back to Council.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
B-18 Research options to address mailboxes that impact sidewalk ADA accessibility ENG/PW Dept Task Status
PW Research options to address mailboxes that impact
sidewalk ADA accessibility.

The Public Works Department is conducting research on effected areas and solutions imposed in other cities in the surrounding area. A Study Session item will be presented to City Council in August 2026. Staff have collected proposals to gather data on sidewalk inventory.

Additionally, the Engineering has issued an RFP for the development of an ADA Transition Plan, as a part of the Safe Streets for All (SS4A) Comprehensive Safety Action Plan Project. Staff are scheduled to recommend the award of a Professional Service Agreement at the August 26, 2026, City Council Meeting. 42 42

GOAL B- COMMUNITY INVESTMENT
43 43

GOAL C- FISCAL STABILITY AND SUSTAINABILITY

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
C-1 Implement improvements to purchasing practices and procedures to align with procurement code requirements.

FIN/CMO X X
Dept Task Status
FIN SVCS Align practices and processes with Municipal Code Bimonthly Status Update in Weekly Report FIN SVCS Develop centralized purchasing and organizational standards for multi-departmental common
purchases (e.g., shirts, embroidery) to include
creating a Credit Card Policy.

Once draft SOPs are created, Financial Services will coordinate with departments to establish which vendors should be used.

Staff have begun working on credit card policy. Draft to be submitted to departments for review Fall, 2026.

FIN SVCS Municipal Code Review, Chapter 3.12 Fin Svcs draft updates created. Will coordinate with departments and auditors.

Provide to City Council for review and feedback in fall 2026.

IT Technology Procurement Policy IT developed a draft policy for technology procurement and procedures. The policy ensures that IT reviews and provides oversight before other departments purchase software or hardware. After review process, implement by Fall, 2026.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
C-2 Develop an inventory of contract services that are due for bid and request proposals.

CITY CLERK/FIN X X
Dept Task Status
FIN SVCS Contract Tracker Maintain list; Update monthly; Include bimonthly in City Manager’s Weekly Report; Work with departments to update contracts
44 44

GOAL C- FISCAL STABILITY AND SUSTAINABILITY
PW/ENG Public Works Department Contract Tracker Public Works Divisions manage a shared Contract Tracker to monitor department- specific contracts, ensuring they are accurately maintained, updated as needed, and aligned with procurement requirements.

Amendments for necessary one-year contract extensions were issued for FY 2026-

27. ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
C-3 Consider the acquisition of an underutilized site on Cathedral Canyon and work to activate the site.

ECON DEV X X
Dept Task Status
Econ Dev Obtain property appraisal. An appraisal report was produced for the City in April 2025. The valuation was analyzed as vacant land. There is a very substantial difference between the estimated fair market valuation and what the property owner has suggested he would sell it for. Econ Dev staff has recently contacted the property owner for a status update and met with affordable housing developers regarding the exploration of this property.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
C-4 Evaluate data and work with partner agencies to identify holes in the local economy and develop plans to address.

ECON DEV X X
Dept Task Status
Econ Dev Participate in Riverside County Comprehensive
Economic Development Strategy (RCOED) project and
the version more specific to the Coachella Valley.

Staff have submitted Cathedral City economic development projects for inclusion in the RCOED CEDS, including a local economic roadmap, a citywide land and sites analysis, and a signalization project at Highway 111 and Cree. The inclusion of these projects in the RCOED CEDS creates funding opportunities through the U.S. Economic Development Administration (EDA). Staff continue to participate in 45 45

GOAL C- FISCAL STABILITY AND SUSTAINABILITY
the development of the Coachella Valley CEDS through a stakeholder group led by Visit Greater Palm Springs. A draft of this document was shared with staff in June for review and comment.

The RCOED is now available at this link.
https://rivcoed.org/sites/g/files/aldnop126/files/2026-02/2026- 2030%20Economic%20Development%20Strategic%20Plan%20%281%2

9.pdf
Econ Dev Contact technology schools to explore
interest/opportunities to relocate or expand into
Cathedral City.

Staff have been in contact with Center for Employment Training who is looking at coming to Cathedral City. We have also advised the Executive Team of their interest to see if we can collaborate on future expansion efforts.

Econ Dev Support the legal cannabis industry The legal cannabis market provides substantial fiscal impact to the City’s budget.

The illicit cannabis market is the largest issue facing legal cannabis businesses.

The economic development team spearheaded the application for Prop 64 funds to support efforts towards addressing the illegal market. A $4.5M grant has been approved by the Bureau of Cannabis Control. This includes a number of expenses covered in the grant including new cameras, vehicles for various departments, and technology upgrades. Staff are awaiting the final award documents to officially accept the grant.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
C-5 Provide periodic updates on Thousand Palms development. ECON DEV X X X Dept Task Status
Econ Dev Update to City Council The most recent update to City Council on Thousand Palms was in October 2024.

None of the conditions in the Thousand Palms SOI have changed since the last update to City Council. Further action could include an SOI modification address public safety/infrastructure needs.
46 46

GOAL C- FISCAL STABILITY AND SUSTAINABILITY

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
C-6 Implement a private development entitlement and plan review system which is predictable, streamlines internal intake and review processes, and creates applicant experiences which are facilitative vs regulatory
CEDD/

PW/ENGIN
X X
Dept Task Status
PW Standardizing processes for development entitlement PW – Eng continues to develop standards and updates to the Municipal Code so that developers understand the submittal and entitlement processes and know what is expected of them. For example, the Municipal Code standards related to Stormwater updated through an Ordinance adopted on May 27, 2026.

Additionally, standard submittal plan templates are in final review for approval.

Once implemented, all engineering plans will be on the same plan set templates, which will facilitate concise, accurate and timely reviews. At this time the review period for turn around on normal size projects’ reviews is two weeks or less.

CEDD/
BLDG
Deploy Digital Inspection Program (DIP)
Digital Inspection Program (DIP) expansion
In April 2025, Building & Safety launched the DIP program, a one-stop initiative designed to streamline the permitting process for expedited permit types. Over the previous six months, the Building Team, in collaboration with Mathew Levy, researched, tested, and refined the program. DIP allows applicants to submit their permit applications and corresponding work photos in a single step. These are then assigned, reviewed, and finalized by the Inspection team within an accelerated timeline—eliminating the need for in-person inspections and significantly improving efficiency for all parties involved.

Building & Safety is currently evaluating an expansion of the Digital Inspection Program (DIP) permitting scope. These permit types will also be incorporated into the Expedited Permit Program. Proposed additions include main electrical panel replacements, residential solar and battery systems, residential patio covers, temporary construction power poles, simple fence and wall permits, with additional permit types under consideration.
47 47

GOAL C- FISCAL STABILITY AND SUSTAINABILITY
Although AB 1738 is still progressing through the legislative process, the City's existing expedited permitting and digital inspection programs already exceed many of the proposed requirements, positioning Cathedral City ahead of the anticipated mandate.

FIN SVCS/
IT
Update fees into EnerGov System Successfully completed was a CPI update of all the recently updated and adopted fee schedules (April 2026). This update is on schedule and planned for a July 1, 2026 implementation.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
C-7 Continually review and streamline internal financial policies, procedures, and practices to remove unnecessary controls without sacrificing accountability and transparency
FIN X
Dept Task Status
FIN SVCS Ongoing Financial Policy/Procedure Review Updated Financial Policy and Procedures Document – Provided to Auditors and received their concurrence.

FIN SVCS Restructured IRC Section 115 Trust transferring from CalPERS CERBT to Schuster Financial Services
management
On June 25, 2025, the City Council approved a resolution approving the transfer of the city’s OPEB/Pension Section 115 Trust from CalPERS to Shuster Advisory Group for administration. The move will allow the city to improve investment flexibility, customization and transparency verses the city’s current plan under CalPERS, which is pooled and does not provide the city with any control over its contributions and investments. Council approved a separate OPEB investment policy governing these investments on October 22, 2025.

FIN SVCS Provide regular updates to the City Council on revenues and expenditures
In addition to the mid-year (Jan/Feb) and end-of-year (Sep/Oct) financial review provided to City Council, Fin Svcs staff started providing in March 2026, a monthly Revenue and Expenditure update in the City Manager’s Weekly Report. 48 48

GOAL C- FISCAL STABILITY AND SUSTAINABILITY

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
C-8 Initiate a Small Business Roundtable or industry specific taskforces to identify needs and support strategies.

ECON DEV X X
Dept Task Status
Econ Dev Auto industry SWOT analysis The Kosmont Group performed a SWOT analysis of the auto industry, which was presented to City Council on January 14, 2026. Ongoing discussions regarding implementation strategies. Econ Dev staff is exploring a workforce development event in collaboration with other agencies for the support of our Automotive Industry Cluster.

Econ Dev Broker community roundtable Staff have evaluated strategies in other cities to engage the broker community to obtain economic development feedback and are pursuing a similar format for Cathedral City. The City has presented to both the GPSR as well as CDAR.

The City also participated in a Commercial Broker Roundtable in June 2026.

ACTION ACTION DESCRIPTION LEAD DEPARTMENT YEAR
0-1
YEAR
1-2
YEAR
2-5
C-9 Continue to work on methods and programs to promote Economic Development North of 1-10

ECON DEV X X
Dept Task Status
Econ Dev Support land development north of I-10 The CV Commerce Center is an active land development application in the vicinity of Bob Hope and I-10. Between October 2024 and March 2025, staff participated in a national site selection process that had short-listed the CV Commerce Center site in a multi-state region for a 1.8M sf distribution center with a potential future expansion of 1.0M sf. While the City was not selected as part of the process, it received positive feedback from the site selector and the applicant. The materials prepared by the City describing its demographics, housing, and labor market continue to be used.
49 49

GOAL C- FISCAL STABILITY AND SUSTAINABILITY
50 50

GOAL D- INNOVATION

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
D-1 Implement Information Technology Master Plan including consideration of providing additional public Wi-Fi access in parks.

IT X X X
Dept Task Status
IT IT Master plan initiatives: Office 365 security, Upgrade Firewall, UPS, Managed Detect and Response, IT
Steering Committee
All budgeted projects completed - Office 365 security, Upgrade Firewall, UPS, Managed Detect and Response Projects are completed. IT Steering Committee was formed and currently doing monthly meetings.

IT/ENG Provide public Wi-Fi access in parks The City provides City owned WiFi access at Amphitheater, Panorama Park, and Town Square. Spectrum provided WiFi for Spectrum subscribers at Soccer Park and Ocotillo Park.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
D-2 Complete and improve the installation of the Tyler EnerGov software to automate, improve and streamline the plan review, permitting and inspection processes.

CMO
Dept Task Status

FIN SVCS
IT
Fee Schedule Update Updates Completed and implemented June 30, 2025 for FY 2025/2026 implementation. Council approved minor updates and the overall CPI update for FY 2026/2027, effective July 1, 2026. Fee updates completed and tested.

CEDD Planning Final Inspections IT, Building and Planning worked together to incorporate final planning inspections through the EnerGov CSS portal to streamline the inspection process.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
D-3 Work with operations staff to identify, implement and support the implementation of technology solutions to bolster IT security and improve operational, analytical, and

IT X X X
51 51

GOAL D- INNOVATION
management functions.

Dept Task Status
IT Explore Dashboard options using GIS for Information
Management.

Created GIS based CIP and Economic Development sites. Testing integration with SQL database from different systems.

IT Council Chambers and Study Session A/V Upgrade Completed the upgrade January 20th. We are in the process of adding a dedicated recording system for Study Session.

IT/PW Cone Zone Alert Complete: Update or add categories in GoRequest/MyCathedralCity app for anything related to CVlink and DRD; sending service requests to responsible agencies. Met with Public Works and Communications in July to explore updated strategies.

The Engineering Division sends information to the Communications Department to post Cone Zone alerts.

CM Implement copywriting of the city’s brands In process.

IT/City
Clerk
Implement electronic filing for candidate statements
and Form 700
System implemented. Training provided. Currently in progress.

CITY
CLERK
Implement strategies for a facilitative, transparent
election process
Q&A with City Attorney conducted with prospective candidates.

IT/City
Clerk
Upload all existing prior years of candidate filings
into Laserfiche
Complete

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
D-4 Leverage technology to increase and improve online services, improve access to public information, and improve city capabilities to monitor, automate, and manage operational data remotely.

IT X X X
52 52

GOAL D- INNOVATION
Dept Task Status
CMO/IT Exploring AI capabilities IT led the creation of an IT Steering committee to review and make recommendations on technology implementations. AI Policy was signed this June 2026. Code Enforcement and HR have created an administrative policy for the oversight of City Detect.

Will be exploring AI solutions that are managed accounts such as Copilot or ChatGPT.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
D-5 Review broadband solutions to create economic development incentives and opportunities and improve the accessibility and affordability of reliable high-speed internet services.

IT/CMO X X
Dept Task Status
IT City Facilities Fiber Design Working with consultants to develop a citywide fiber network plan that will connect all City facilities and parks. This effort will establish the foundation for a Dig Once policy, ensuring that fiber conduit is installed whenever street-related Capital Improvement Program (CIP) projects are constructed, minimizing future construction costs and disruptions. City has contracted with HR Greene The Coachella Valley Association of Governments (CVAG) Broadband Strategic Plan provides a regional roadmap to expand high-speed internet access by identifying existing broadband infrastructure, service gaps, and underserved communities across the Coachella Valley. As part of developing the plan, CVAG assessed broadband availability and service levels across all Coachella Valley cities to identify underserved and well-served areas. The assessment found that Cathedral City is generally well served, with broadband speeds exceeding the federal benchmark, and that providers such as Spectrum and Frontier meet most of the city's broadband service needs; residents also have access to alternative connectivity options, including cellular hotspot plans from wireless carriers and satellite internet services such as Starlink. IT Manager DeGuzman participated in meetings with CVAG on the Broadband Strategic Plan.
53 53

GOAL D- INNOVATION

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
D-6 Identify and implement a Document Imaging Program to convert paper documents into digital files to reduce storage requirements and costs, increase efficiency, enhance security, and improve future access to information.

IT/CITY CLERK X X X
Dept Task Status
HR Increase HR Process Digitization forms/process Human Resources is continuously reviewing our forms and processes to identify opportunities for automation. Updated forms are uploaded and stored in Tyler Content Management once they are processed. This is an ongoing, continuous improvement effort.

Human Resources is currently exploring another module of NeoGov which will aid in streamlining the offboarding process and exit surveys.

Training scheduled for overview of certificate portal in Tyler Munis to aid in tracking and updating staff certificates of completion.

City Clerk Digitization of legislative, FPPC and other documents housed in the City Clerk’s office into Laserfiche
Documents are currently being scanned and indexed into Laserfiche and are available on the City’s website. Current categories of documents that are being scanned include agenda packets, contracts and agreements, FPPC filings, minutes, ordinances, recorded documents, and resolutions.

IT Document Management Assessment IT brought in a firm to assess the city’s records to determine pricing to scan and develop workflows in Laserfiche. Budget needs will be considered in the FY 27/28 and 28/29 budget.

Regarding the Tyler Munis ERP, IT will research and determine with Tyler the process for archiving/purging automated records in accordance with the city’s document retention plan.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
D-7 Commission a survey of historic properties. CMO X
54 54

GOAL D- INNOVATION
Dept Task Status
CEDD Prepare RFP for historic resources survey The funds were budgeted in FY 25/26 and the project was delayed to FY 2026/27 to ensure funding availability for this discretionary project. Prior to initiating the survey, the City will evaluate the intended policy objectives and how the survey findings would be integrated into the Historic Preservation Ordinance and future development review processes.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
D-8 Work with the Historic Preservation Society to digitize and preserve historic photos and documents.

CMO X
Dept Task Status
CEDD Contact Cathedral City Historical Society Staff continue to work with the Cathedral City Historical Society (CCHS) to identify shared objectives and opportunities for collaboration. This initiative includes two distinct functions: (1) digitization and archival processing of documents and photographs, and (2) long-term physical preservation and storage of historical records and artifacts.
55 55

GOAL E- SAFETY

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-1 Fund a 2-person ALS Medic Unit to better respond to increasing demand for medical response.

FIRE X
Dept Task Status
FIRE Measure W medic Funded six positions and placed a unit in service July 1, 2025.

Measure W Implementation and Fourth Ambulance
I am pleased to report that the fourth ambulance is now in service, expanding our transport capacity across the city. This addition strengthens our ability to meet a rising call volume without drawing on the general fund, and it directly supports the service improvements outlined below. The deployment reflects the deliberate, Measure W-supported investment the Council authorized to protect and grow emergency medical service for our residents.

Revenue and Reimbursement Update
The department closed Fiscal Year 2025-2026 with total revenue of $5,666,921 against a budget of $5,237,044, finishing 108.2% to plan and $429,877 over budget. Ambulance billing led the way, delivering $5,447,764 against a $4.9 million target, or 111.2% of budget. Our net collection rate held at 83.9%, a healthy mark for fire-based EMS, on gross charges of $13.32 million for the year. This performance reflects the sustained work our team has put into the billing and reimbursement program, and it represents a substantial increase over where this program stood just a few years ago.

Call Volume and Response Times
On the operational side, our transport volume continues to climb. Through the first half of the calendar year, transports reached 2,683, an increase of 12.3% over the same period in 2025, with our transport rate improving 6.7 points to 76.7%. EMS calls rose 2.5% year over year to 3,496. Even as demand has grown, we have 56 56

GOAL E- SAFETY
57 57

GOAL E- SAFETY
continued to improve service delivery, reducing turnout times by 42% and saving 44 seconds per call, contributing to an average response time of 6:14. The fourth ambulance positions us to sustain these gains as call volume continues to rise.

Together, these results reflect a department that is growing responsibly, collecting effectively, and delivering faster, more reliable service to the community we serve.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-2 Continue to explore and utilize technology to promote public safety. PD X X Dept Task Status
PD Drone First Responder Program, Coachella Valley Real Time Intelligence Center (CVRTIC) On May 28, 2025, the City Council approved the purchase of two Drone as First Responder (DFR) drones, allowing the Cathedral City Police Department to join the Palm Springs Regional Real-Time Information Center (RTIC) in October 2025.

Shortly thereafter, CV Link funded the purchase of a third DFR drone, significantly expanding the department's coverage area and operational capabilities.

Since implementation, the Police Department has worked collaboratively with the Palm Springs Police Department by utilizing the regional RTIC on a part-time basis.

Through our partnership with CVAG and CV Link, we are currently in the process of acquiring a fourth DFR drone. In addition, the City was recently awarded a Proposition 64 grant, which will fund the purchase of a fifth drone. Once deployed, the five-drone network will provide nearly complete citywide aerial coverage with overlapping response areas, with the exception of a small portion of the Varner Road/Bob Hope Drive corridor.

While the DFR program was initially established to enhance public safety by improving response times, increasing officer safety, and providing real-time situational awareness, its benefits extend well beyond law enforcement. The drones are regularly utilized by the Cathedral City Fire Department during fire incidents and emergency responses, by Public Works for damage assessments, 58 58

GOAL E- SAFETY
infrastructure inspections, and documentation following severe weather events, by Economic Development to capture aerial imagery supporting grant applications and reimbursement efforts, and by Code Enforcement to assist with inspections and documentation. This shared use of the technology maximizes the City's investment while promoting collaboration, operational efficiency, and enhanced service delivery across multiple departments.

ENG 2025 Citywide Speed Survey Completed: The Engineering Division awarded a Task Order to Albert A. Webb Associates, (On-Call Traffic Engineer), to conduct an Engineering and Traffic Survey (E&TS). Based on the survey's recommendations, an ordinance to implement updated speed limits was adopted on June 25, 2025.

With the completion of the Whispering Palms Class III Bike Route Project, Engineering staff will conduct a speed survey on the Whispering Palms Trail roadway segment with new conditions (from 30 th Avenue to Dinah Shore Drive) and amend the 2025 Speed Survey accordingly.

ENG Traffic Calming Program The Traffic Calming Program is intended to enhance neighborhood safety and quality of life by addressing issues such as speeding and cut-through traffic on local streets. The program combines education, enforcement, and roadway design strategies, including measures to reduce vehicle speeds and discourage non-local traffic to promote safer driving while maintaining emergency access and mobility.

Residents may request a temporary traffic calming study, which City staff evaluate to determine appropriate next steps and potential improvements. In the past year, Engineering staff have completed analysis of 14 requests. There are currently 16 requests in the queue.

PD Flock ALPR program An additional 5 FLOCK ALPR cameras added FY 2024-2025 and 5 cameras in FY 2025-2026. With the recent award of the Prop 64 Public Health and Safety Grant the police department will purchase an additional 20 cameras that will be grant funded bringing the total to 54 cameras.
59 59

GOAL E- SAFETY

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-3 Continue Police, Fire, and Expand Code Compliance engagement with the community. PW/FIRE/CODE X Dept Task Status
PD Community events, Neighborhood community meetings January – year-to-date staff have attended 26 community events, including Taste of Jalisco, Meatball Festival, State of the City, Pride Prom and Esperanza Park opening. Officers have participated in 7 local elementary school Career Days. We have attended 3 neighborhood community meetings in the Montage and Verona communities. CCPD has hosted 2 LGBTQ community events with residents from the community. Preparing for our annual back to school backpack giveaway in July. Our HLO officers helped host two community outreach events for our unhoused and elderly population. CBAT Team is partnering with the Riverside County Behavioral Health Mobile Crisis Team to coordinate a new community outreach initiative that will begin at Patriot Park and continue throughout Cathedral City this summer.

FIRE Community Risk Reduction Programs Fire department has continued community risk reduction programs that include disaster preparedness, CERT, Sidewalk, CPR, Stop the Bleed and most recently a car seat installation program.

Fire department has established relationship with Coachella Valley, disaster preparedness network. Staff has met with the leadership and have tentatively developed a list of classes and a schedule that will be provided to residence of Cathedral City.

CEDD Expand code compliance participation in events Code compliance participated in two annual Meatball Festivals and other city sponsored events such as Snowfest and Halloween Spooktacular.

PD/PW/CM Address concentration of unhoused individuals
downtown and its impacts.

Public Works will continue supporting the Police Department’s Homelessness Task Force and will ensure that any homeless-related debris is addressed promptly. Additionally, several Riverside County agencies hosted an event on April 29 to provide services to unhoused individuals, and staff coordinated participation to support outreach and service delivery efforts. The Police Department partnered 60 60

GOAL E- SAFETY
with Palm Springs PD to host a Joint Homeless Outreach event in Palm Springs in July.

The CC Police Department, City Manager’s Office, and Facilities have been working with the Library staff to address problems they were having with unhoused individuals loitering and causing disruptions at the library, impacting the safety of staff and patrons. Increased police patrols, homeless outreach events conducted by the library and Riverside County, increased security measures, and better communication have all had a positive impact.

PD/PW/CM Develop communications campaign to address
speeding.

Public Works will continue working closely with the Police Department and Communications to proactively address speeding concerns across the community.

In addition, the departments will support public awareness campaigns aimed at educating residents about speed limits, pedestrian safety, and the importance of responsible driving. The Police Department has also secured several grants from the Office of Traffic Safety (OTS) that fund additional officers dedicated to enforcing traffic violations, including speeding. PD has three motor officers and a Sergeant to enforce traffic violations. Also, participate in VMET where all local agencies work traffic enforcement on a specific city for that day.

PD Identify and provide specific training on community
engagement for field personnel
Four officers, two sergeants, and one commander have successfully completed the Community Policing Defined course through the National Center for Policing Innovation, reinforcing the principles of procedural justice, problem-solving, and collaborative partnerships.

The department's LGBTQ+ liaison officer attended the LGBTQ Liaison Academy, providing specialized training on building trust, improving communication, and strengthening relationships with LGBTQ+ community members.

Department personnel have completed Autism Awareness Training through the California Commission on Peace Officer Standards and Training (POST), equipping officers with strategies for recognizing and appropriately responding to individuals with autism spectrum disorder and other developmental disabilities.

Personnel have also completed POST Racial and Identity Profiling (RIPA) and Implicit Bias Training, reinforcing fair, impartial, and constitutionally sound policing practices while promoting procedural justice and community trust. 61 61

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Department personnel have also completed Procedural Justice and Fair and Impartial Policing training, reinforcing the importance of treating every individual with dignity and respect while ensuring fair, unbiased, and transparent decision- making. This training emphasizes the four pillars of procedural justice, voice, neutrality, respect, and trustworthiness and equips officers with the skills to build legitimacy through positive interactions, active listening, and equitable enforcement. These principles strengthen community trust, improve voluntary compliance, and support the department's commitment to constitutional, professional, and community-oriented policing.

Code Compliance Division has completed Applied Verbal De-Escalation training as well as IBCCESS Autism and Sensory Awareness Training. All eligible Code Officers have also received their State Certification which include community engagement training.

CEDD Review code enforcement staffing and deployment,
including identifying opportunities to use volunteers
Code Compliance presented a Study Session on a proposed volunteer program on July 22, 2026 and will proceed with a new 12-month pilot volunteer program.

With the award of the Prop 64 funding, Code Compliance will also hire an additional grant funded FTE focusing on cannabis enforcement.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-4 Strengthen the City's ability to prepare for, respond to, and recover from disasters by reviewing and updating the City's Emergency Operations Plans through annual training sessions and tabletop exercises.

FIRE/PD X X
Dept Task Status
FIRE Development and update of the cities, emergency
operations plan (EOP).

Fire department has worked with consultants, Jacob Greene and Associates to update the department’s emergency operations plan. The emergency operations plan is complete.
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This has been completed and final grant closeout is currently in process

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-5 Update the City’s EOC, Conduct EOC drills and training, and update the City’s Emergency Operations plan and Local Hazard Mitigation Plan.

FIRE/PD X X
Dept Task Status
FIRE Development and update of local hazard mitigation plan (LHMP)
Fire department has worked with consultants, Jacob Greene and Associates to update the city’s emergency operations plans. The Local Hazard mitigation plan (LHMP) is currently in draft status. The local hazard mitigation plan has been submitted to OES and is under review for approval process is estimated to take approximately 90 days.

Once OES approval is completed, the final plan will be submitted to FEMA for their approval unknown on FEMA's approval timeline.

FIRE Emergency operation center training, drills and tabletops to prepare city staff to prepare, respond and recover from disasters
Fire chief and consultant Jacob Greene and Associates to conducted EOC training in November, 2025 and January 2026 with a ½ day tabletop exercise conducted on January 28, 2026. Staff have identified follow-up actions to be taken to continue to strengthen the city’s readiness.

Initial training has been completed two additional drills are planned, but we are waiting for EOC phase one updates to be completed
FIRE Update the cities of emergency operations center-This is in process and partially budgeted
Fire department staff are working with facilities and IT to update and enhance the city’s emergency operation center. Staff currently have a plan, to include a $90K Riverside County grant application submitted, and are working to update the facility in FY 2026/2027.

Emergency Operations Center Modernization
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The department has developed a phased approach to modernizing the City's Emergency Operations Center, ensuring that when we activate for a disaster or large-scale emergency, our staff and partners have a functional, capable space from which to coordinate the response.

Phase One focuses on the physical foundation of the EOC: the furniture, wall boards, paint, and the essential materials needed to operate the space effectively.

Phase Two builds on that foundation with the electronic upgrades that make a modern EOC work, including monitors, multimedia capability, and reliable internet connectivity to support real-time information sharing during an activation.

To fund this effort responsibly, department staff has pursued multiple grant opportunities. To date, we have secured approximately $15,000, which has been applied toward the modernization already underway. To complete Phase Two, staff is awaiting notification on an $80,000 grant that would fund the remaining electronic upgrades. We anticipate hearing on that award by August 2026.

This project reflects our continued commitment to emergency preparedness and to giving the City the command-and-coordination capability it needs to protect our residents when it matters most. I will keep the Council informed as the grant decision comes in and as we move through each phase.

IT Conduct training on dealing with cyber attacks IT Manager and ClientFirst conducted a tabletop exercise on what to do if the city became the victim of a cyber attack – staff roles and responsibilities were identified, and protocols are being implemted.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
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E-6 Implement community engagement and public education initiatives to increase COMM X 65 65

GOAL E- SAFETY
awareness regarding public safety programs, services, and results of proactive community policing efforts.

Dept Task Status
COMM Community engagement and public education on public safety
Communications & Events continues to support the Police and Fire Departments with community engagement and public education initiatives, promoting public safety programs, services, and the results of proactive community policing through press releases, social media, and digital communications. The department produces the City's annual State of the City event, which prominently showcases public safety achievements — including the Police Department's Drone First Responder (DFR) program — and staff led media outreach for the DFR program that generated positive published coverage of its faster response times and community return on investment.

Communications & Events also promotes the annual Emergency Preparedness Workshop series hosted by Councilmember Rita Lamb and is developing earthquake preparedness PSA content with the Fire Chief. Ahead of the July 4 holiday, staff produced the City's annual fireworks safety and education campaign, including bilingual (English and Spanish) "fireworks prohibited" messaging across digital billboards, social media, and signage, and shared the Police's enforcement results to reinforce awareness of the ban and its penalties.

FIRE Fire department engagement with Palm Springs Unified School District and Cathedral City High School.

Fire Chief and Fire department personnel have engaged with Palm Springs Unified School District by participating in the principal for the day program to establish relationships with school leaders, which has ultimately led to presentations and introductions to students. This initiative has led to our cadet program that currently consists of 10 high school personnel as well as seven new students that we are currently onboarding.

Fire Cadet Program and Youth Engagement
The department continues to invest in the next generation of firefighters and in the safety of our young people. Working with staff at both Cathedral City High School and Rancho Mirage High School, we have conducted presentations on the Fire Cadet Program and are currently completing the recruitment of six new cadets 66 66

GOAL E- SAFETY
drawn from both schools. This program gives local teens an early, hands-on introduction to the fire service, builds a homegrown pipeline into our promotional ranks, and strengthens the relationship between the department and the schools that serve our community. We currently have 15 cadets in the program.

I am especially proud to report that two of our cadets, whom the department sponsored through the College of the Desert Fire Academy, have successfully earned both their EMT and Fire Academy certifications. Their achievement is a direct return on our investment in local youth and a powerful example of the pathway this program creates, taking a young person from a high school presentation to a certified, academy-trained candidate ready to serve.

In addition, we are partnering with the Cathedral City High School principal to bring an impactful drunk-driving awareness program, Every 15 Minutes, to our local students. The program uses a realistic demonstration to convey the serious and often tragic consequences of driving under the influence, delivering that message to teenagers at a formative age and reinforcing the choices that keep them and their peers safe. The first demonstration is scheduled for May 2027.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-7 Identify improvements and pursue grant funding to improve the safety and connectivity of non-motorized routes throughout the City.

PW/ENGIN X X
Dept Task Status
ENG SB 821 Bike Lane Projects Completed: In November 2025, construction was completed for the SB 821 Perez Road Class IV Separated Bikeway and SB 821 Whispering Palms Trail Class III Bike Route projects.

The SB 821 Avenida Maravilla Class III Bike Route project was awarded SB 821 funding in the FY 2025-26 Call for Projects. The project must be completed by June 2028. Design is programmed to start in FY 2026/27, and construction is 67 67

GOAL E- SAFETY
programmed for FY 2027/28.

Additional updates for HSIP pedestrian crossing projects, and the Cathedral Canyon Sidewalk Project are provided under action B-6.

PW Active Transportation Plan (ATP) In June 2026, the City adopted an updated Local Roadway Safety Plan (LRSP), which identifies bicycle lane improvements along Santoro Drive and Ramon Road as priority safety projects. The LRSP includes a comprehensive safety analysis and project recommendations that strengthen the City's competitiveness for future grant funding through programs such as the Highway Safety Improvement Program (HSIP) and the Active Transportation Program (ATP), supporting the implementation of these improvements as funding becomes available.

Public Works staff have engaged in meetings with Rancho Mirage and Palm Springs to explore collaborative efforts for future ATP projects.

PD Cannabis Tax Fund Grant CCPD was awarded the Cannabis Tax Fund Grant July 1, 2025, with funding for the purchase of a fully outfitted DUI enforcement vehicle, additional training and DUI saturation patrols. CCPD was also awarded the Grant for July 1, 2026, with funding for the purchase of an CDR (crash data retrieval) and a trunk drone to assist with mapping of collision scenes.

PD Supplemental Law Enforcement Services Account
(SLESA) grant
CCPD has been able to fund the initial purchase of DFR drones to join PSPD as part of the Real Time Intelligence Center with funds from our SLESA grant.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-8 Research the ability to regulate the use of pedestrian sidewalks by E-bikes or other motorized vehicles.

FACILITIES X
Dept Task Status
PD PD researching E-bike ordinance. PD and PW are working together with legal to research and draft proposed legislation; efforts will be coordinated with CVAG. CVAG is working on a model 68 68

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ordinance for all cities that are participating.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-9 Supervise DRD to ensure park equipment and playing fields are well-maintained and functional

FACILITIES X
Dept Task Status
PW Desert Recreation District Park Maintenance Transition Completed: Public Works Maintenance continues to monitor the Desert Recreation District's (DRD) park maintenance operations and provides support and guidance as needed to ensure service expectations are met. In addition, Public Works Maintenance is constructing dedicated office space for DRD staff at the Public Works Yard, with completion anticipated in early 2027. This improvement will enhance coordination between City and DRD staff, improve communication and response times, and support more efficient oversight and management of park maintenance operations throughout the city.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-10 Keep the City Council apprised of changes to the Code Enforcement program. CEDD/CODE X Dept Task Status
CEDD Updates to City Council The Code Compliance Division provided a presentation to the City Council on its overall operations on January 14, 2026, including updates on the City Detect AI pilot program, current caseloads, cannabis enforcement, and other priorities. The Code Compliance Division also produces monthly reports detailing the current case load and types of cases, providing current information on STVR and cannabis enforcement, documenting public survey feedback, and showcasing successes led by the code compliance staff.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
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E-11 Evaluate staffing in Code Compliance vs. workload and determine the needed full- time employees’ level: use technology as available.

CEDD/CODE X
Dept Task Status
CEDD Workload evaluation and use of technology The Code Compliance Division continuously monitors its workload and the caseload of individual officers to ensure that the division is initiating investigations into complaints in a reasonable time period while maintaining time for proactive patrols and work. Staff implemented City Detect AI as a force multiplier for the Division, installing cameras on two code compliance vehicles. Code continues to keep overall caseload under 500 and has begun several proactive enforcement teams including cannabis, vehicle abatement, business license and beautification, and outreach and education. The Prop. 64 grant will pay for one additional code officer position to address cannabis.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-12 Schedule community meetings with Police in our mobile home gated communities and include a public health professional.

FIRE/PD X
Dept Task Status
FIRE Gated community meetings-We have completed 4
meetings, this is ongoing
The Fire Chief and Fire Marshal have attended community meetings at the Date Palm Country Club to discuss concerns about fire activity in the country club. Fire Chief has also attended an association meeting at Tramview homeowners’ association.

Community Emergency Response Team, Desert Princess Country Club The department continues to extend our community risk reduction efforts into the neighborhoods that make up Cathedral City. Staff has met with the Homeowners Association for the Desert Princess Country Club and reached agreement to plan a Community Emergency Response Team, or CERT, program for the entire country club community. This effort builds on the CERT and preparedness work 70 70

GOAL E- SAFETY
already underway across the city and reflects our commitment to helping residents become active partners in their own safety.

CERT training gives community members the knowledge and hands-on skills to prepare for emergencies and to support their neighbors in the critical minutes before first responders arrive, from light search and rescue to basic medical care and disaster organization. For a gated community like Desert Princess, that capability is especially valuable, strengthening resilience within the community while extending the reach of our department.

The program is currently in the planning stages, with delivery targeted for the fall of 2026. I will keep the Council informed as the schedule and program details are finalized.

Once this trial is complete, we will look to duplicate with other gated communities.

PD Gated community meetings PD attended Montage Community block party March 2025 & 2026.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-13 Review our animal control contract and options. PD X Dept Task Status
PD Research animal control options PD took the animal control services options to Council on September 24, 2025, to seek direction. A new agreement, maintain current staffing levels, was approved by the City Council on October 6, 2025. Staff will continue to research and evaluate other options for animal control and sheltering services. Hope to provide city council an update sometime in the fall.

CEDD Research ordinances banning backyard breeding. Code Compliance Analyst will begin research and analysis of municipal ordinances banning backyard breeding. Preliminary research has shown most Coachella Valley cities have adopted ordinances relating to backyard breeding and number of animals allowed.
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ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
E-14 Renew and improve our event safety planning, protocols and standards: streets, garage, amphitheater, parks and others.

FIN SVCS X
Dept Task Status
FIN SVCS Install Safety panels on the 2 nd and 3 rd floors in the Parking Structure facing east (civic center parking lots) and west (amphitheater)
Parking Structure safety initiative included in FY 2025/26 and 2026/20027 biennial budget.

A new initiative has been identified to secure vehicles in the parking structure by adding approximately 30 spaces to the existing secure spaces on the ground level of the parking structure next to the PD parking lot.

PW Downtown Safety Barrier Project Completed: At the May 27, 2026, City Council meeting, the City Council approved Phase 1 of the Downtown Safety Barrier Project, which includes the purchase of twenty-one (21) Meridian Mobile Barriers, along with all associated accessories, support equipment, and related components.

Delivery of the barriers has been completed, and Public Works Maintenance staff participated in the required safety training to ensure the equipment is placed into service safely and effectively.

Phase 2 of the Downtown Safety Barrier Project will be evaluated as part of a future biennial budget process and will be presented to the City Council for consideration at a future meeting.
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ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-1 Develop comprehensive strategy to amend zoning code and update design guidelines, including an identification of what work City staff can accomplish and what work optimally should be contracted out, including: 1) development of objective design standards in response to new state housing laws; 2) overhaul of commercial zoning code; 3) substantial update of design guidelines; 4) streamlining of development review processes; 5) implementation of Cathedral City General Plan and Housing Element goals, policies, and programs; and 6) continued implementation of new state legislation.

CEDD/PLANNING X X
Dept Task Status
CEDD/
Planning
Development Code Update The Development Code Update began January 2025. The project is hosted on www.zonecathedralcity.com and comments on the project may be sent through that website or via [email protected].

The Public Review Draft was released May 14, 2026 and the public comment period for this review phase closed June 12, 2026.

Community outreach occurred at several points throughout the process utilizing surveys, participation at community events such as Tastes and Sounds and the Grand Opening of Esperanza Park. Input took the form of responses to short online surveys, a city wide Maptionnaire survey, 3 walking tours, 2 open houses, and several public meetings where the draft was discussed and an opportunity for public comment provided.

The project was guided by a 13-member Steering Committee who met 7 times, and the Planning Commission who reviewed and considered the individual code topics (Divisions) over 7 meetings, plus a 2-day workshop in June.

The Code draft continues with CEQA review alongside drafting of more robust landscape and shade standards, and a mixed-use incentive overlay aimed to incentivize development along commercial corridors to improve housing outcomes and improve efficient infill utilization.

Planning Commission hearings are scheduled for September 2026 with City 73 73

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74 74

Council hearings scheduled for October and final adoption by November 2026.

PW/ENG/C
EDD
Streamline development review process The Public Works Department, in coordination with the Development Services Department, are reviewing the Cathedral City Municipal Code for opportunities for code updates. An Engineering staff member has been appointed to the Development Code Update Technical Advisory Group and is currently collaborating with Planning staff on driveway standards.

Implement external agency review early in the process to avoid review comments impacting approval timelines.

Continue cross-department collaboration and emphasizing inter-department customer “handshakes” and “one-stop-shop" service.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-2 Prioritize updating the zoning code regarding residential parking and paving provisions; research and give recommendations on enabling parking prohibitions in front of mailboxes.

CEDD/PW X
Dept Task Status
PW/CEDD Zoning Code Ordinance Completed: In January 2025, an Ordinance was adopted to limit parking in front of mailboxes and implement zoning code updates for the amount of area that can be improved for parking on single-family residential and residential estate properties. Code Compliance is now enforcing.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-3 Promote additional community events and celebrations. CMO/COMM X Dept Task Status
COMM Annual celebrations & new events The spring 2026 season delivered record-setting results. At the spring Tastes & Sounds series, The Dreamboats set a new attendance record for the second consecutive year (2,200+ attendees); Cathedral City LGBT+ Days marked its 10th anniversary March 6–8, 2026, presented by Agua Caliente Casinos and headlined 75 75

GOAL F – EMBRACING, INCLUSIVE COMMUNITY
by American Idol's David Archuleta; the inaugural Cathedral City Festival of the Arts debuted March 28, 2026; and the 10th Annual Taste of Jalisco Festival moved to May 1–3, 2026, as a Cinco de Mayo tie-in with its largest carnival to date. On May 12, 2026, the City produced its State of the City event, "Cathedral City Takes Flight," in-house for the first time.

The fall and winter calendar continues to grow. The fall Tastes & Sounds series returns November 3–17 and December 1, 2026, followed by the 12th Annual Cathedral City International Hot Air Balloon Festival in November 2026. New and returning Amphitheater events include Pips Entertainment's Soul Springs Festival and a newly announced Afro Latin Groove Festival from the same producer, plus a vegan food festival with Luchador on November 14, 2026. The Cathedral City Festival of the Arts, presented by the Public Arts Commission, is also proposed to return pending City Council approval. These join annual traditions such as the Halloween Spooktacular, SnowFest, and the Howl-O-Ween Dog Costume Contest, alongside continued growth in third-party events.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-4 Work with community partners and providers on a community health fair to help residents identify resources that are available.

COMM X X
Dept Task Status
COMM Community health fair coordination Communications & Events partners with community providers to host health and resource fairs that connect residents with available services. Two events were successfully held at the amphitheater in fall 2025 — the Fall Carnival & Resource Fair and the Living Health Expo, organized by KESQ/KUNA. The KESQ Living Health Expo is returning for fall 2026, continuing this annual community partnership. These events connect residents with available health resources and community services.
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FIRE Fall prevention classes-FD has completed 4 classes with additional classes planned for the spring and fall 2026 Conducted fall prevention programs at the cathedral city senior center and the Cathedral Canyon Country Club HOA.

Coachella Valley Disaster Preparedness Network Partnership As previously mentioned to the Council, department staff has engaged with the Coachella Valley Disaster Preparedness Network, and I am pleased to report that this collaboration is now producing tangible results for our residents. Working alongside the network, we are developing multiple community classes that we will bring directly to the people of Cathedral City in the months ahead.

This partnership extends the reach of our community risk reduction efforts by connecting Cathedral City to a broader regional preparedness effort, allowing us to draw on shared resources, expertise, and curriculum rather than building every offering alone. It reflects the same philosophy that guides our CERT, Stop the Bleed, and CPR programs: the more prepared our residents are, the more resilient our community becomes in the critical minutes before and during an emergency.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-5 Explore options for shielding trash containers, especially where the backyard may not be accessible.

CEDD/CODE X X
Dept Task Status
CEDD Create a handout for residents to identify flexible alternatives for screening trash enclosures.

Planning and code staff prepared informational handouts identifying appropriate screening methods for trash enclosures on residential properties. Code staff distributes these handouts as part of educational efforts to residents who may be in violation.
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ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-6 Develop and implement a plan to improve and diversify communication methods with residents.

COMM X X
Dept Task Status
COMM Diversified communication methods Communications & Events has implemented several initiatives to improve and diversify resident communications. The City has entered an agreement with FlashVote to conduct scientific surveys in English and Spanish to determine residents' preferred communication channels. Additional efforts include an expanded social media presence with a TikTok account, weekly Social Media Ambassadors meetings across departments, and a comprehensive digital communications strategy developed with CiviSocial.

Enhanced outreach to diverse communities includes promoting key news and events on GED Magazine, KGAY Radio, and Gay Desert Guide for LGBTQ+ residents. The City has an active agreement with El Informador to publish news articles and event posters in one of the most popular Spanish newspapers in the Coachella Valley, and all news releases sent to the media list are now being published by El Informador. Staff has also increased its partnership with Xochitl Diaz, a journalist with Poderosos Latinos, and is currently reviewing a PEG proposal from Diaz to produce Spanish-language video content for the community.

Staff is also meeting with Entravision to discuss enhanced marketing opportunities targeting Spanish-speaking residents. As a partner on the regional Ramon Road Bridge Project, staff is additionally pressing for and assisting the City of Palm Springs and its marketing firm, Burke Rix Communications, in developing Spanish- language project resources to ensure equitable outreach to Cathedral City's Spanish-speaking residents.

COMM Develop and implement comprehensive, integrated
communications plan
Following City Council direction at the February 2026 Strategic Planning Workshop — informed by resident survey findings showing community knowledge gaps — the City issued a Request for Proposals for a Citywide Integrated Strategic Communications Plan. The plan will serve as a multi-year roadmap to align, 78 78

GOAL F – EMBRACING, INCLUSIVE COMMUNITY
prioritize, and elevate communications across all City departments, close documented knowledge gaps, and ensure equitable, multilingual engagement with residents, businesses, and visitors. Proposals are due June 24, 2026, with consultant interviews and selection to follow in July. The selected consultant will partner with the Communications & Engagement Division and a cross- departmental staff team to deliver the plan within approximately six months of contract execution.

PW Title VI Communications Plan Completed: In March 2025, the Public Works Department adopted a Title VI Implementation Plan that outlines public communication procedures for capital improvement projects. As a recipient of federal funding, the Cathedral City Public Works Department is required to establish a program that defines roles, responsibilities, and procedures to ensure compliance with Title VI and related statutes. The Title VI Implementation Plan describes the key elements of the Department’s Title VI Program and provides the policy direction necessary to maintain compliance.

In June 2026, Engineering staff attended a Title VI Program Administration webinar during which a new training platform was introduced. The platform can be used to provide Title VI training to Public Works staff during onboarding and to support required biennial training.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-7 Develop methods to improve the quality and appearance of our community mailers. COMM X X X Dept Task Status
COMM/PW Mailer content coordination Completed: Communications & Events collaborates with the Environmental Conservation Division on the City's twice-yearly Cathedral City Canvas community magazine, funded through the Environmental Fund. The spring 2026 edition reached mailboxes in early March and was well received, with residents citing the magazine as the reason they learned about and attended City events. The fall 2026 edition is scheduled to mail shortly after Labor Day.
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COMM Research costs of creating a mailer to be sent to
every household to promote annual city events.

Communications & Events is exploring additional opportunities to collaborate with the Environmental Conservation Division to leverage the Environmental Fund.

Outside of that funding source, a dedicated direct-mail piece to every household costs approximately $13,000 per mailing. This expense is not currently funded within the Communications & Events budget and would be best evaluated through the next biennial budget process.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-8 Focus on the Economic Development Road Map and identify pillars of success. ECON DEV X X X Dept Task Status
CEDD Incorporation of Development Road Map and Pillars of Success
Staff has developed a quarterly update to reflect updates that correlate the metrics and achievements with boundaries of the ED Road Map/Pillars of Success. IGNITE was formed as part of the ED Road Map and incorporates a series of Economic Development efforts as they relate to the 5 PIllars; 1. Business Attraction, Retention, and Expansion, 2. Workforce Development, 3. Entrepreneurship Support, 4. Housing and Quality of Life, 5. Tourism and Regional Collaboration.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-9 Explore a grants program to businesses for façade improvements using Council improvement funds or other sources.

ECON DEV X X X
Dept Task Status
CEDD Facade enhancement program Staff have conducted initial evaluations of other facade enhancement programs. These programs require
substantial funding sources that are not currently budgeted.

A facade enhancement program will require further
evaluation to determine the eligible improvements, grant match requirements, and the total funding needed to
successfully implement a program.
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A facade program is not budgeted/feasible due to being
non-budgeted as well as Department of Industrial Relations (DIR) requirements.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-10 Continually communicate with the public to inform the community of the City’s efforts and expenditures on homelessness and how residents can participate in solutions.

COMM X X X
Dept Task Status
COMM Public communication on homelessness efforts The Director of Communications & Engagement actively participates in the City's monthly Homelessness Task Force, which represents multiple internal departments. Communications & Events collaborates with each task force group to develop and showcase storytelling related to the City's homelessness efforts, creating content that informs the community about the City's investments, programs, and ongoing work while identifying opportunities for resident participation in solutions. Most recently, staff assisted in promoting the Cathedral City Police Department's Homeless Outreach Event in late April 2026, producing social media storytelling that amplified the Homeless Liaison Program and highlighted a homeless veteran who was connected to services and secured housing on the spot.

CM/FIN
SVCS
Schedule periodic updates from CVAG Housing
First to provide an update on their services to
Cathedral City
CVAG provided an annual update to City Council on March 11, 2026 on the Housing First program and included specific activities/evets specific to Cathedral City. With the latest three-year agreement, we plan to have CVAG brief City Council on an annual basis. In addition to the $125,000 annual contribution to the CVAG Housing First program, the City currently provides a $50,000 contribution to the Coachella Valley Rescue Mission (CVRM).

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-11 Review land use regulations to support diverse, accessible, and affordable housing. CEDD X Dept Task Status
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CEDD Update land use regulations Housing production, including affordable housing, was included within the scope of work for the Developmet Code Update. To increase housing production, opportunities have been implemented, including establishing minimum density, ministerial review for streamlined review of multi-unit residential projects, and a mixed-use incentive overlay. In addition, the Code was updated to comply with changes in State housing laws to increase housing production and reduce barriers and impediments to housing development. .

CM/CEDD Schedule policy discussions with the City Council to develop and implement strategy for furthering affordable housing production; set milestones.

Staff has continues to meet with affordable housing developers, as well as Lift to Rise, to discuss strategic implementation of RHNA efforts as they relate to overall development both in the downtown as well as neighboring areas.

Staff also presented an affordable housing discussion during the May 27, 2026 Council Meeting. CHOC presentation to City Council on funding of affordable projects and proposal for a master plan idea for the development of downtown.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-12 Reinstate a Cooling Center at the Cathedral City Library by June 2026. PW Dept Task Status
PW Collaborate with Riverside County Community Action
Partnership and the Cathedral City Library to establish a cooling center at the Cathedral City Library.

Completed: The Cathedral City Library has a year-to-year agreement with Riverside County Community Action Partnership to support the operation of a Cooling Center at the library. Riverside County has expressed interest in expanding this effort by encouraging as many library branches as possible to serve as cooling centers. Accordingly, this program has been reinstated beginning on June 1, 2026 through October 15, 2026. We anticipate continued collaboration with the County and the local branch to support community access to cooling resources during the warm-weather months.
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ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-13 Develop and implement an outreach strategy to determine if services are addressing the needs of our diverse community including families, retirees, and Spanish speaking population.

CMO/ECON DEV
Dept Task Status
CMO/
ECON DEV Community Surveys
Communications and Economic Development are working together to establish a variety of questions for surveys to identify service gaps and business needs within the community.

Community-wide statistically valid survey conducted in January, 2026 in English and Spanish; results presented to the City Council at the February 6, 2026 strategic planning session.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-14 Multi-disciplinary City Team to increase effectiveness and improve coordination of city responses to address the needs and impacts of the homeless population internally and with external organizations and stakeholders, including the CVAG Housing First Program.

CMO
Dept Task Status
PW Homelessness Task Force Program in effect: Standing meeting with City Manager’s office, public works, police, facilities, DRD, risk management, code enforcement.

Public Works participates in monthly Homelessness Task Force meetings and promptly addresses any assigned action items. In addition, the department takes a proactive approach to preventing the establishment of homeless encampments by removing dense brush and vegetation that could serve as concealment or shelter.
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ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-15 Review processes and economic development efforts to promote childcare accessibility in Cathedral City.

CEDD
Dept Task Status
CEDD Childcare accessibility CEDD reviewed the CCMC for compliance with current state laws regulating childcare facilities. Updates are needed to the zoning code that will be made through the Development Code Update.

Economic Development has provided input on changes to the code update regarding access to childcare as this supports economic development efforts.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
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.

DEV SVCS
Dept Task Status
CEDD Implement measures to support proactive code
compliance
Staff implemented City Detect AI as a force multiplier for the Division, installing cameras on two code compliance vehicles. Staff provided a presentation to the City Council on its overall operations on January 14, 2026, including updates on the City Detect AI pilot program and its support for proactive code compliance. Due to the increase in technology-based enforcement the Code Compliance division created a first of its kind position, the Code Compliance Specialist, which was adopted by Council in March 2026.

CEDD Work with commercial property management companies to address property maintenance issues; target retail
centers that have not been properly maintained.

Code Officer Whaley has been assigned to the business corridor beautification team as well as business license compliance. Work has begun on the Hwy 111 corridor and will continue down Date Palm, Ramon, and Vista Chino.

CEDD/COM
M
Research potential Re-Discover Cathedral City
campaign
This initiative is in the early phase of reviewing current resources and funding. As the effort is primarily focused on business outreach, it is being led by the Economic 84 84

GOAL F – EMBRACING, INCLUSIVE COMMUNITY
Development Division, with Communications & Events available to assist with promotion and logistics planning as needed. Communications & Events and Economic Development have a strong record of successful collaboration on business-focused initiatives, including the IGNITE entrepreneurship program.

ACTION ACTION DESCRIPTION LEAD

DEPARTMENT
YEAR
0-1
YEAR
1-2
YEAR
2-5
F-17 Review and update, as needed, our ordinances, policies, and practices regarding cannabis.

CEDD
Dept Task Status
CEDD Cannabis Ordiance Updates The City Council authorized a moratorium on new cannabis licenses and conditional use permits in January 2025. Staff presented updates to City Council in February and April 2025. The City contracted with SCS Engineers to support its efforts to develop and implement an odor control permitting process. Following the presentation of an ordinance through the Cannabis Task Force and the Planning Commission, the City Council adopted the ordinance with an effective date of November 23, 2025. This ordinance requires odor control plans upon the renewal of a cannabis license beginning January 1, 2026 and increases the fines and penalties for businesses that fail to submit an odor control plan or that generate nuisance cannabis odors in violation of the code. Staff also presented additional potential ordinance changes at the July 22, 2026 City Council meeting and will next present those proposed changes to the Cannabis Task Force.

CEDD/FIN Internal cannabis working group In January 2026, an internal cannabis working group was formed consisting of all departments and staff involved in the review of cannabis licenses and enforcement (Fin Svcs, CEDD, PW, Police, Fire and Engineering). The purpose of the group is to close any gaps in the review of licenses and to increase enforcement, accountability for conditions of approval, City regulations, and the payment of cannabis taxes.

City Council Priorities
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GOAL A - SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
Dept Task Status- COMPLETED
CMO/HR We have evaluated key vendors' partnerships to maximize built-in resources
CPS Partnership Implementation:

Successfully launched interview question bank with Department Heads Standardized interview process across departments
Reduced staff time spent on question development
Maintaining quality control through HR oversight
Vendor Resource Assessment | Current vendor evaluation status:

Lincoln (EAP): Reviewing expanded service options
PERMA (Risk): Analyzing available training resources
[Other Vendors]: Evaluating additional support tools
Next Steps:

Continue monitoring CPS interview question effectiveness.

Complete assessment of remaining vendor resources by mid-2025 Identify additional opportunities for resource optimization Schedule vendor meetings to explore untapped services
HR/PW/
CMO
Study the need to reallocate staff resources including the use of contracts.

Completed
CMO/HR Human Resource Staffing We have completed the following milestones in our staffing resources study:
Partnered with GovInvest Salary Survey for comprehensive market analysis
Identified key positions requiring resource evaluation Identified comparable agencies
Analyzing current staffing patterns
CMO/
DEV
SVCS
ACM and Development Services are reviewing the need for possible contract planners to address the volume of work in light of staff vacancies and capacity.

Development Services/Planning contracted with multiple planning and environmental consulting firms for on-call services during a period of staff transition and vacancies. The Planning Division continues to contract with Terra Nova Planning and Research for planning and environmental consulting on large-scale 86 86

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projects and with MNS Engineers for environmental consulting. Both firms augment current staffing and enable the Division to meet its service commitments and turnaround times.

The Planning Division conducted an RFP for planning services for the upcoming zoning code rewrite, and a contract was awarded to Mintier Harnish. While many City staff will be involved in the rewrite, including Cynthia Shultz as the project manager, the rewriting would not be possible without the contract support.

FIRE/HR The Fire Department has successfully launched its Cadet program and initiated strategic expansion efforts. The department has broadened its outreach activities to encompass additional schools serving Cathedral City residents, enhancing the program's visibility and accessibility within the community. The completion of the first cadet meeting has achieved initial implementation milestones, demonstrating operational success Structured Fire Academy

Engineer academy and task book sign off

Battalion Chief and Fire Captain Academy

Currently active and advancing on schedule. The program has secured its first cohort of cadets and established foundational operations. Growth initiatives are underway, with plans for a second recruitment campaign in spring 2025, targeting an expanded capacity of 20 cadets. This planned expansion represents a concrete commitment to scaling the program's impact and creating more opportunities for youth interested in fire and emergency service careers.

Fire department has provided a two-week academy for all new firefighters. For existing firefighters with less than one year on fire department is providing ventilation, extrication, and fire basics.

For the engineer rank, fire department is providing an engineer academy, consisting of six sessions to provide an overview of the fire engineer rank with task book support to help personnel move into the actor position.

For captains and battalion chiefs, fire department is conducting a battalion, chief, and captain academy that will consist of six sessions that will review tactics and strategy of the position of fire captain, along with leadership, personal
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State
development, and mentoring.

The fire department applied for and received an AFG grant of $985,000 to send 24 of departments personnel to Specialty training that includes swift water, rescue, hazmat, technician, and technical rescue. This will not only broden personnel knowledge, skills and abilities, but it will also prepare them to better service the community.

IT Developed IT 311 SharePoint site for self-help information, IT instructions, and other information to help staff utilize the City's technology systems and tools.

IT 311 completed. IT will need to provide instructions that are part of the SharePoint training.

DEV
SVCS/
CODE
Code officers are encouraged to obtain certification through CACEO to become Certified Code Enforcement Officers.

Sandra Martinez earned her CCEO status by completing the required.

DEV
SVCS
Encourage planners to join professional memberships, attend training and conferences, and continue their educational experience.

Complete. Ongoing
CMO/HR Establish a certification pathway for the Public Sector Employment Relations Certification Program (LCW certificate) with two tracks:
Current Supervisors: Provide direct access to LCW certification training to enhance leadership capabilities.

Non-Supervisors: Create an alternative route where employees can earn the LCW certificate and apply it as qualifying experience toward future supervisory positions.

Current Programs:
LCW Public Sector Employment Relations Certificate
-August 2024; roll out approved training courses for the 2024-2025 FY. 22 EE currently working towards the certificate
– First employee expected to be finished in March 2025
Municipal Management Association of Southern California (MMASC) available to employees
HR Department Action Plan:

The Human Resources team will continuously evaluate relevant programs and training opportunities. All potential programs will be presented to the Executive Team for review and approval before implementation.

CMO/HR Focus Group Implementation. The initial new hire focus group has been successfully implemented with strong participation and engagement.

Phase 2:

Planned Expansion: (2025)
Survey employees for items employees would like to focus on improving 88 88

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Phase 1:

Maintaining existing new hire focus group
To discover, clarify, and record themes regarding employee perception of and reaction to hiring and retention.
awareness with core questions such as:

1. What company programs or benefits would you like to understand better?

2. Which workplace processes need more clarity?

3. What information is currently difficult to find or access?

4. Which resources would help you be more effective in your role? What topics should be included in ongoing awareness initiatives? CMO/HR Quarterly Meetings allow recognition and appreciation of employees for achievements, performance, innovation, and efficiencies.

Bi-annual recognition luncheon in honor of employees who reach milestones – 5.10.15.20.25.30.35… years of service.

Completed and Ongoing.

HR 2024 – Calendar of events in the works
Baseball Opening Grill N’ Chill Luncheon
Football Opening Pizza Day
Commissioner’s Appreciation Dinner
Cinco De Mayo Taco Fiesta Truck
Mother’s Day Paint & Lunch
Father’s Day Paint & Lunch
Employee Appreciation
Holiday Party
In 2024, the City's Events Committee and Communications & Events team, in collaboration with HR, successfully organized and executed a series of engaging employee events that fostered workplace community and connection. The well-attended activities received positive feedback from staff across departments, demonstrating their value in building organizational culture and boosting morale. Building on this success, the City plans to continue these popular initiatives in 2025 and beyond, while exploring new opportunities to further enhance employee engagement and strengthen our workplace community.

CMO Bi-annual updates to the City Council Provided City Council update on 8/23/23, 1/27/24 and 2/14/2024 and 8/14/2024 and 1/25/2025.

The Strategic Plan was included in the FY 2023/2024 & FY 2024/2025 Biennial Budget along with the individual Department Goals and Objectives. The Strategic Plan will be included in future biennial budgets.

CMO Community Satisfaction Survey. Completed and presented to the City Council at the 2-7-26 strategic planning workshop.

HR Implement structured exit interview process and tracking system to identify retention improvement opportunities
We have successfully implemented a structured exit interview process. All separated employees are automatically sent an exit interview questionnaire via AdobeSign to provide feedback on their employment experience, reasons for
89 89

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GOAL A - SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
departure, and suggestions for organizational improvement. This digital process ensures consistent data collection and secure documentation of responses.

This process includes a mechanism that allows us to analyze trends in departure reasons, identify departmental patterns, and monitor recurring issues that may impact retention.

Fire Awesome Award to Personnel - Ongoing Fire department gives awesome awards consisting of a certificate and a cool water bottle to fire department personnel who make community contributions and receive complements from the community.

All Staff Reports All staff reports identify strategic plan goals/objectives that tie to the agenda item - 91 91

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GOAL B - COMMUNITY INVESTMENT
Dept Task Status- COMPLETED
PW The Electric Vehicle Transition Plan will be included as an Element within the Climate Action Plan. The city is working with CVAG and other Coachella Valley Cities during the
development process.

The Coachella Valley Association of Governments (CVAG), in partnership with the Western Riverside Council of Governments and the San Bernardino Council of Governments, is currently working on a Comprehensive Climate Action Plan (CCAP) for the region which is scheduled to be completed in November 2025. The CCAP will feature a dedicated chapter for each city within the Coachella Valley, covering topics such as Greenhouse Gas Inventory, reduction measures and a regional electric vehicle plan. Once the regional CCAP is completed in 2025, staff will begin updating the City’s 2013 local Climate Action Plan (adopted 2013) which will incorporate the regional CCAP and include a substantive Electric Vehicle Transition Plan module. The city is actively participating with CVAG on the regional CCAP.

PW Engineering and Public Works is developing an RFP that will aim to create visually appealing gateway entrances to the city
Mayor Ross and a subcommittee of the Public Arts Commission have developed a proposal for entryway signs that will be presented to the City Council for consideration in September 2024. Public Works is working on getting a rough scope of pricing. Prior to the Mayor’s project, staff had intended to issue an RFP for this project, however due to Tropical Storm Hillary expenditures, the Public Works Maintenance and Engineering proposed General Fund expenditures for this year were reviewed and this item was deferred. Staff will look to restore budget for the project, if needed in the next budget cycle.

Collaborate with PW and Engineering to support their efforts in obtaining funding for the completion of this project. Efforts could include identifying future grants and working with Deanna Pressgrove and/or Amanda Geisendorfer to apply.

Staff presented a duplicate gateway monument option for the Council’s consideration that could be used at specific city entryway locations. The proposal for the unified monument proposal was initiated by Mayor Ross with the support of the Public Arts Commission. The unified model for the monument is based on the current “Mountains Cathedral” art piece displayed at the Date Palm Drive s/o Vista Chino city entryway. The City Council agreed with this option and requested that 92 92

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size for each location is to be determined along with budgeting for the project in upcoming and future biennial budgets. Public Works staff are now coordinating the construction of mock block monuments in 75%, 50% and 25% scale to be able to show the City Council sizes that may be utilized at various entryway locations.

All locations, size and costs will be approved by the City Council when ready to proceed.

PW RFP will be initiated by Public Works. (Engineering and Public Works Maintenance jointly).

Public Works will include this item within the next budget cycle. The Parks and Community Events Commission (PACE) is currently looking at potential trail head and signage locations around the city.

The Coachella Valley Mountains Conservancy has placed a new Trail Rules for Dogs sign at the Cathedral Canyon trailhead at the southeast end of the Cove.

ECON
DEV/
PW
The City Council supported implementing the August 24,
2023, M.I.G. Consulting Art Walk Conceptual Design-
“Preferred Design Concept” during the October 25th Study Session. Implement elements of the Chuperosa Lane plan
as funding is identified or development occurs.

Chuperosa Lane has been cleared, graded and the Public Works maintenance crews have added the area to the routine maintenance schedule.

Staff and Councilmember Lamb have agreed that additional community engagement should be undertaken before implementing any proposed permanent improvements. Staff will continue to analyze the impact of having foot traffic through Chuperosa Lane and how it will impact the neighboring community.

Economic Development can assist in obtaining community input for the project to ensure there is public support. The data can be used for future grant funding applications.

Explore expanded uses for the library building. Updated Library lease agreement: continue to identify what space needs for the library’s use and what space could be utilized for other purposes. The Public Arts Commission (PAC) has partnered with the library to conduct quarterly art exhibits, starting May 2024. The next scheduled exhibits are scheduled for August 24-25 and November 9-10 and a full quarterly series planned for 2025. The PAC awarded $20,000 in community arts grants for programming that will be completed by the end of FY 2024/24. Several of the awarded programs will be conducting activities at the library, including two shows of Hansel and Gretel on March 26 and 27 2025, and a Senior Art Show at the Library on May 17 – 18. Additionally, the 93 93

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GOAL B - COMMUNITY INVESTMENT
Senior Center will be hosting an art show at the library during Desert Open Studios Tour week on January 24-26. Coachella Valley Classical Voices two The City, in partnership with Riverside County established a cooling center at the library, starting on June 1, 2024
PW/
ENGIN
Funding for this effort was provided in the recent budget over a five-year period.

Engineering and Public Works Maintenance are initiating field visits and identification of the locations for the new additional crossings. The Engineering Department is working with various council members on updating pedestrian crossings and bike lanes in their districts and continuing to look for additional funds.

The Engineering Department has multiple current projects in progress that support this goal:
SB821 Grant funds a Class III Bike Route on Whispering Palms Trail from Dinah Shore Drive to 30 th Avenue and a Class IV Protected Bike Lane at Perez Road, from Cathedral Canyon Dr to Date Palm Drive. The design phase is underway for both projects.
ATP Cycle 5 funds the Cathedral Canyon Drive Sidewalk and Multiuse Trail Project, which incorporates the new minimum 6-foot-wide bicycle lane along the west side and a multiuse trail on the east side of Cathedral Canyon Drive from Cathedral Canyon Shores Drive to Dinah Shore Drive.

Construction is in progress.
ATP Cycle 5 also funds the Date Palm Drive Expansion Project, which also incorporates a 6-foot-wide bicycle lane along the east side of Date Palm Drive between East Palm Canyon Drive and Perez Road. Construction is in progress.
HSIP Cycle 9A funds traffic signals at twelve intersections within Cathedral City. Bids for construction of this project will be publicly opened on February 6, 2025.
HSIP Cycle 9B funds road safety improvements at Date Palm Drive and Varner Road. The construction started in November 2024. HSIP Cycle 10 funds the intersection at Ramon Road and Candlewood Drive. Construction is in progress.

HSIP Cyle 11A funds citywide pedestrian crosswalk updates and is in the design 94 94

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GOAL B - COMMUNITY INVESTMENT
phase.

COMM Stripped the old/washed out banners along Avenida Lalo Guerrero and met with a company who designs wayfinding
signage to improve/refresh the current look and enhance the City's image. Installed new wayfinding signage in the
Community Amphitheater to attract greater attention to
restroom and concession areas and have identified locations for enhanced wayfinding signage throughout Cathedral City to better promote and direct traffic to key destinations.

New colorful banners were installed along Avenida Lalo Guerrero in 2024, and Communications & Events is leading the effort on proposals for new wayfinding signage and refurbishment of current signage at key entry points throughout Cathedral City to be included in the next biennial budget. A presentation was provided to Council on Aug. 14, 2024, and another update will be coming in Spring 2025.

Economic Development is working with Ryan Hunt to obtain new entry signs with Tonya Carney of Motivational Systems Inc. to develop wayfinding signs for the Downtown area. The conceptual plans and their locations are being discussed with department heads and City Management, which will likely be implemented in four phases over the next two biennial budgets.

ENGIN/
PW/PD
An internal Traffic Calming Team has successfully been
assembled with Engineering, Public Works Maintenance
and Police personnel which first identified the equipment needs for the Traffic Calming trailer. Additionally, streets that staff have received complaints on are now accumulated on a spreadsheet in order to proceed with the target areas.

The speed radar and speed feedback signs were placed at five locations thus far on residential streets. These locations were provided by residents advising staff that the speed limits were being exceeded on their fronting roadway. Speed radar data collected had shown that the speeds were over the threshold, and thus speed feedback signs were placed to reduce speeds as the next step in the traffic calming process.

The queue for the next streets to receive the traffic calming trailer equipment has been established with more locations selected for evaluation.

The Traffic Calming Committee is also working with the police department's traffic enforcement division to assist in locations further along in the location queue.

PW/
ENGIN/
PD
Implement Traffic Calming Policy and Guidelines The City's updated Traffic Calming Policy and Guidelines was presented as a Study Session item to the City Council on January 8, 2025. The comments received at this meeting will be incorporated in the Policy in preparation for City Council formally adopting the document.
95 95

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GOAL B - COMMUNITY INVESTMENT
The Police Department initiation of motor patrol traffic speed enforcement citywide 96 96

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GOAL B - COMMUNITY INVESTMENT
has made a marked impact on speeding within the City.

CMO Consult with DRD to see what they would do to make fields accessible to T-ball
Discuss with DRD.

Note: Available baseball fields can be used for T-Ball, additionally, the Public Works Department is working on a comprehensive renovation plan for Century Park that would include a dedicated field for T-ball. Staff are working with DRD on scope of services for the City’s annexation into the district.

ENGIN/
PW
Secure funding for the construction not covered by the
grant.

The City Council authorized an additional $2,481,211 from the General Fund and $108,000 from the Environmental Conservation Fund, which fully funds this project.

In September 2024, Staff presented a project construction update in a Study Session. Construction is in progress with vertical structures in place. Project completion is still anticipated for March 2025. Public Works staff have completed a walkthrough of the project to confirm timing of completion and park opening.

Staff are working with PACE on future projects for public art and a community celebration after the opening of the park. The City submitted a grant application to the State Art in Parks grant program to plan for a celebration and art event at Esperanza Park after its opening but were unsuccessful in securing the grant. Staff will submit a new request in 2025/26.

Engineering staff have presented the Pavement
Management Program (PMP) to the City Council at a Study Session in June. Staff has received training on the software in late July and is working through internal implementation of the Program.

Staff have completed the training on the PMP software. Staff has worked with the finance department on the budget update to redirect unspent Tropical Storm Hillary funds toward Pavement Management Program (PMP) Projects.

Funding needs are identified in the Resident Study Committee report. Additionally, the PMP will be referenced when identifying future pavement improvement projects and the recently approved Measure W pavement rehabilitation projects.

PW The Fleet Coordinator has completed a Fleet General Management Standard Operating Procedure document that provides procedures for maintaining and managing the city’s fleet. The Fleet Coordinator also added the vehicle 97 97

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GOAL B - COMMUNITY INVESTMENT
replacement section to the above cited document. The document has been reviewed by the Public Works, Financial Services, Risk Management and Human Resources.

PW Complete the design of the Downtown Dog Park and seek funding for construction.

The Fleet Coordinator has completed a Fleet General Management Standard Operating Procedure document that provides procedures for maintaining and managing the city’s fleet. The Fleet Coordinator also added the vehicle replacement section to the above cited document. The document has been reviewed by the Public Works, Financial Services, Risk Management and Human Resources.

PW Public Access Level 2 EV Charging Stations (Downtown parking Structure) Upgrade Project
EV Range has installed four new Level 2 electric vehicle charging stations within the downtown parking structure. The stations are open to the public and available for use at a fee.

PW Esperanza Park wayfinding signage Public Works Maintenance has installed directional signage along Gene Autry Trail and Ramon Road to improve wayfinding to Esperanza Park. 99 99

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GOAL C – FISCAL STABILITY AND SUSTAINABILITY
Dept Task Status- COMPLETED
CMO The City Council was provided with a list of suggested district projects.

Individual Council members will work through the City Manager to facilitate the use of district funds. PW staff have prepared a list of potential projects within each Councilmember’s District. PW Director and ACM have started and will continue to contact each Council member to discuss potential projects for their districts.

ECON
DEV
Economic Development researched and identified the new
owner. After speaking to the Economic Development
Department about zoning and potential uses, the owner is open to selling to the City.

Ongoing. Economic Development was working with the property owner’s broker (and real estate developer) to identify financially viable development uses. City acquisition is likely on hold due to the financial impacts of Tropical Storm Hilary.

Economic Development will continue working with the City Manager’s Office to identify best uses for city-owned properties. An RFP will be going out in Q-1 of 2025 soliciting a vendor to conduct a feasibility study for the construction of a new community center. The study will include a review of city owned properties as well as non-city owned
ECON
DEV
Economic Development continues working with CVEP to
identify and fill informational gaps.

In the past. Econ Dev has utilized CVEP Analytics to assist with preparing for ICSC, projects, and other presentations. Currently CVEP appears to no longer be in operation. The CVEP Sponsorship has not been included int FY 25/26. The city is working alongside Team California and Riverside County Office of Economic Development to provide data and analytics. Also, the city has renewed their CoStar subscription to use this tool to better analyze market trends and real estate transactions.

DEV
SVCS/
PLN/
ENGIN
Regular meetings are held within the Planning Division to track projects under review for land use entitlements and those in plan check. Applications are being updated
including submittal requirements.

Ongoing. The City Council approved an Engineering Development Consultant to assist the Director with the flow of work through the Engineering Division. In conjunction with contract plan checkers, the consulting team’s comment, review and pass back times have been reduced to two weeks maximum, which is the considered the industry standard.

An Engineering development project status list has been developed and implemented.

City development review staff and contract development consultants now have access to the city’s Tyler EnerGov online plan submission portal and are working 100
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COMPLETED ACTIONS
GOAL C – FISCAL STABILITY AND SUSTAINABILITY
with the Planning Division to increase efficiencies between the departments to streamline the review process. Plan and report submittals are now 100% electronic and online.

DEV
SVCS/
ENGIN/
PLN
The Development Services Committee (DSC) meets
regularly to discuss projects under review and in plan check, and to schedule projects for Architectural Review Committee and Planning Commission.

Several steps towards the creation of a facilitative development review process:
Applications are submitted via the CSS EnerGov portal
Review of project plans are electronic via Bluebeam by Engineering, Fire and Building
The DSC meetings are now held bi-monthly.
New projects are introduced to the DSC for high-level discussion with subsequent transmittal of plans to the DSC members.
DSC members present new topics/issues for the group to discuss/resolve, i.e. Issues that arise during construction, new processes to facilitate plan checking, etc.
Post-entitlement phase permits are coordinated in DSC to ensure consistency with conditions of approval and entitlement documents. DSC agendas and project transmittals are in SharePoint so that DSC members can readily access this information and add topics to agendas. Engineering’s plan check review log is shared via SharePoint providing for a more integrated plan check review across Divisions.

IT has created a new SharePoint access that can be shared with consultants outside of the City’s network.

DEV
SVCS
Internal operations are continually evaluated to create efficiencies.

OTC Thursdays! was implemented. Every Thursday afternoon planning and building staff reviews and permits simple building permits, such as walls, pools, and generators.

To streamline permitting of walls, pools, patios and generators, planning cross trained Building counter staff on zoning review of these simple permits and Building now provides a one stop review and permit issuance of these simple permits.

ENGIN The Engineering Division is working in conjunction with the Development Services Department to make the
See C-5 above. The City Council approved an Engineering Development Consultant to assist the Director with the flow of work through the Engineering 101
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GOAL C – FISCAL STABILITY AND SUSTAINABILITY
development process predicable, including actively
participating in the DSC meeting.

Division. Review and pass back times have been reduced significantly. An Engineering development project status list has been developed and implemented.

The Consultant and City Staff are coordinating standard plan submittal formats and standards for developing conditions of approval.

DEV
SVCS/
CODE
Based on staff capacity and the need to facilitate
development, several contracts have been entered into.

Development Services/Planning contracted with multiple planning and environmental consulting firms for on-call services during a period of staff transition and vacancies. The Planning Division continues to contract with Terra Nova Planning and Research for planning and environmental consulting on large scale projects and with MNS Engineers for environmental consulting. Both firms augment current staffing and enable the Division to meet its service commitments and turnaround times.

The Planning Division conducted an RFP for planning services for the upcoming zoning code rewrite and a contract was awarded to Mintier Harnish. While many City staff will be involved in the rewrite, including Cynthia Schultz as the project manager, the rewrite would not be possible without the contract support.

The Building Division conducted an RFP for plan check and on-call inspection services and a three-year contract with two one-year extensions was awarded to HR Green.

Ongoing
ECON
DEV
Identifying and engaging individuals interested in
collaboration, best-practice sharing, and community
building. Working with and supporting existing associations (e.g., auto center).

Director of Community and Economic Development and Assistant City Manager have met with numerous developers to identify barriers to development in Cathedral City. Economic Development is to work with staff to create a road map for various processes including business license. Goal C-7 will be used in this process to help remove barriers.

In July 2024 staff met with representatives from CV CAN, a cannabis business advocacy organization to discuss ways to support the cannabis industry. Staff will recommend Membership with CV CAN to better represent the business sector. 102
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GOAL C – FISCAL STABILITY AND SUSTAINABILITY
An agreement executed in August 2024 offers performance driven incentives based on the City’s sales tax sharing ordinance to two existing auto dealerships, an agreement developed to retain those dealerships in Cathedral City.

With the start of a new Economic Development Manager in September 2024, staff have regularly attended meetings of the Cathedral City Auto Center (CCAC).

Economic Development is in the process of identifying Shop Local programs that aim to support the local economy. The city has a current contract with the GCVCC that can be restructured to also support these efforts or reallocate the funding for this program.

Dev
Svcs/
Fin
EnerGov implementation and maintenance IT and Financial Services worked with all departments to update the fee schedule in EnerGov prior to the start of the new fiscal year.
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GOAL D - INNOVATION
Dept Task Status- COMPLETED
CMO/IT IT Master Plan: Contracted with ClientFirst Assessment and documents completed. Presented to Council on July 24, 2024.

IT initiatives consistent with the IT Master Plan have been budgeted in the approved FY 2025/26 and FY 2026/27 budget.

CMO/IT/
BLDG
Created new implementation team, led by Enterprise
Systems Analyst Matthew Levy and subject matter experts (SME) from planning, building, engineering, fire, and
finance.
City Wide E-Plan Checking (Bluebeam Software integrated with EPL) oAll plans must be submitted online via the customer service portal. City Wide Online Inspection Requests
oIncludes: Building and Fire - Engineering goes completely online on 2-2025
oWorking on Virtual Inspections (No inspector onsite) (Starting in 2025)
Integrated Payment Processing (EPL and Merchant Processor) and City Processing Fees
All permit, plan and license applications are available on the city’s online portal 24/7/365 (Over 140 total)
oIncludes: Business Licensing / Short Term Rental Licensing / Renewable Permits (Licenses)
oIncludes: Building, Public Works/Engineering, Fire, Planning - Permits/Plans
Rapid Permit Issuance for over 10 permit types and Solar Permitting Pre-approved ADUs (City pre-approved plans) available online Public Kiosks available with paper scanning ability (3 total – CH, FD, PD) Integrated Tax Remittance Integration (Work in progress) Staff are working to get our Tax remittance configured, setup and tested within our EPL software

IT/ CITY
CLERK
City Clerk: Committee Management Program (This is part of the Granicus Suite and was approved in the Budget). This platform will automate the management of the
Commissions/Committees and the application process.

Completed.

IT/ CITY
CLERK
City Clerk: Electronic Filing of Fair Political Practices Forms.

Currently the FPPC has a platform for individuals that are 87200 filers (Elected Officials, Planning Commission, City Staff reviewed available applications to see which one would be best suited for the needs of the City and is still evaluating whether it makes financial sense to implement electronic filing.
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Manager and City Attorney). Staff are reviewing options to implement a platform for the electronic filing of FPPC Forms required to be filed with the City Clerk’s Office including the 700 Form for City Council identified staff.

IT Continue utilizing/training staff on Office 365 to provide cloud storage, cloud email system, online collaboration,
conferencing, instant messaging, and new office versions.

Enhance management and security of Office 365.

Will be working on migrating network shared folders to SharePoint.

ECON
DEV/IT
/PW
Research other broadband solutions to ensure everyone
has equitable access to internet connectivity.

HR Green is currently managing broadband efforts in Palm Springs and Palm Desert and is leading the CVAG regional effort. A meeting was held with City staff and HR Green to discuss these collective efforts and what more Cathedral City can do locally.

Economic Development will work with IT and PW to identify progress and funding for these efforts.

IT CETF Digital Equity Best Practices Grant Award and
workshops
CETF awarded the grant in 2024. IT Dept. Must complete three best practices learning sessions to receive the grant.

FIRE The Fire Department is continuing to expand its
programming for the community. As of the completion of this Strategic Plan update, the Fire Department has a full
schedule for the Spring and Fall in 2025 of community risk reduction classes that will be offered to the public and city staff. These classes include:
CPR
CAR SEAT Safety
STOP THE BLEED
DROWNING PREVENTION
CERT
Teen CERT
FALL PREVENTION
SMOKE ALARM INSTALLATION
Events were rolled out in 2023 and 2025 are scheduled for spring 2025 The fire department has a complete list of Community Risk Reduction programs to assist the community with emergency preparedness and reducing risk to the community, the programs include:
CPR
Stop the bleed
Drowning prevention
CERT
Teen CERT
Car seat safety and installation-new addition
Fall prevention
Smoke alarm installation
Disaster preparedness
Lock box program
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GOAL D - INNOVATION
DISASTER PREPAREDNESS File for life program
CITY
CLERK/
IT
The City currently uses Laserfiche as a repository for
documents for a limited number of departments. With the upgrade to an Enterprise License, staff have determined that utilizing Laserfiche as the trusted repository for all paper files that need to be converted to digital files is the best document imaging program to use at this time. This will allow the City to implement a City-wide Records Management Program,
which will allow better access to records, save on storage space and offer a trusted electronic searchable format.

In December 2024, the City Clerk began to work with a vendor who will evaluate the documents in each department to provide a free estimate of the costs associated with the conversion of paper documents into digital format so they then can be placed into the Laserfiche repository, which is a trusted electronic searchable format. This estimate will help determine the priority of this project and the amount of time it will take to complete it City-wide. The first department to be evaluated will be Public Works. The file structure will still need to be set up in Laserfiche.

Presented to Historic Preservation Committee The Council strategic plan goal was presented to the Historic Preservation Committee together with the 2017 Historic Resource Context & Historic Resource Program document prepared by Kaplan Chen Kaplan. A historic survey would be a more intensive study of individual historic sites and of neighborhoods or areas and is anticipated to cost between $75,000 and $175,000. There is no budget for this work, and it will need to be considered as part of the next biennial budget.

IT IT Master Plan Initiatives Office 365 security was implemented. Firewalls were upgraded. Deployed Managed Detect and Response. IT Steering Committee was formed, and initial meeting was December 17, 2025
CMO/IT Redesign Cathedralcity.gov Completed. Went live January 22, 2026.

City
Clerk/IT
Fix OneMeeting Templates and integrate videos. Completed.

IT Testing T-Mobile networks as a replacement for Verizon Wireless
Completed testing. Recommendation is to stay with Verizon and recommend upgrading devices to 5G capable devices.

HR Implement electronic personnel file system for all new hires and current year personnel actions
All new hire and current year personnel actions are processed electronically in Tyler Munis. Forms are stored in Tyler Content Management.

HR Automate Leave request and tracking workflow Eliminated forms; employees enter directly into Tyler Munis and approvals are processed electronically.
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GOAL E - SAFETY
Dept Task Status- COMPLETED
PD 4 Flock cameras were added in 2024.

Potential Real-Time Crime Center partnership with PSPD, IPD and DHSPD
Expanded to total of 25 Flock cameras with an additional 4. 4 agencies in discussions to start a regional real-time crime center.

DEV
SVCS/
CODE
Code will be participating in the upcoming meeting and
with HR on the upcoming Backpack give away event
hosted by PD.

COMPLETED
PD Police Department personnel attended 38 community
events in 2024 year to date. Events included Neighborhood Watch meetings, city sponsored events, community
fundraisers, and Active Shooter presentations to
community groups, Cathedral City High School
scholarships and awards, Cathedral City Peace Initiative events, Senior Scam awareness event, LGBTQ+ Forum,
Pride Prom, a Back-to-school backpack giveaway event
and Fields of Valor.

COMPLETED
CODE The Code Compliance Division is conducting proactive community outreach on significant code issues.

The code compliance division conducted educational outreach to raise awareness of the risks of eating food from unlicensed vendors and held a licensing event at Panorama Park for sidewalk vendors.

The division has released the first video in a series called “Cracking the Code” to educate and raise awareness on common code issues. A second video on STVRs is in production.

FIRE The Fire Department has conducted two community
preparedness presentation in English and Spanish with
over 120 residents attending.

Two CERT programs are scheduled for the Fall and Spring, one in English and one in Spanish. Additional classes have been scheduled for the Fall of 2024, both for emergency preparedness and CERT. In Fall of 2024, the Fire Department will establish a community-based CERT program that can be accessed in the case of a city emergency. 2025 class has been added to the calendar for November 2025 109
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GOAL E - SAFETY
Fire department was also awarded a $25,000 grant to update the department’s CERT trailer and purchase new equipment.

FIRE Applied for a grant to update the City's EOC, conduct EOC drills and training, as well as update the City’s Emergency Operations Plan and Local Hazard Mitigation plan.

The fire department has received an OES grant in the amount of $49,877 and a FEMA grant in the amount of $149,631. Through an RFP process, Jacob Greene and Associates was selected to provide the city with emergency operations plan and a local hazard mitigation plan. The fire chief Jacob Greene, and Associates meet on a biweekly. The Chief facilitated a meeting with the executive team on July 24, 2025, to get final input into the draft emergency operations plan.

Estimated completion of January 2026.

PD/FIRE/
COMM
The PD began a series of videos to educate the public on crime and safety. Videos produced include Burglary
Suppression and the 2023 officer involved shooting that was released July 2024. LGBTQ+ forum was held to
discuss hate crimes and investigations.

Both CCFD and CCPD continue to promote public safety programs and educational opportunities, both in-person and via social media. CCFD will be seeking input from the community for updates to the City’s Local Hazard Mitigation Plan in January-February 2025.

PW/
ENGIN/
FIN
PW is always on the lookout for opportunities to enhance the City's ATP.

Engineering staff secured a SB 821 Grant to complete bicycle lane improvements along Whispering Palms Trail (which will include traffic calming features) and segregated bicycle lanes on Perez Road. Both projects are in the design phase with STC Traffic Inc. (Consultant) with the projects slated for construction completion at the end of the calendar year.

The restriping of the East Palm Canyon Bike Lanes with ATP Cycle 5 funding is completed. ATP Cycle 5 Cathedral Canyon multiuse path/bike lanes and Date Palm Drive bike lane and sidewalk projects are completed with punch list items now being addressed.

Coordinating with the Financial Services Grant Analyst to identify and pursue relevant grant opportunities.

DEV
SVCS/
CODE
Council study session updates. A comprehensive update was presented to Council in May 2024. Through this presentation, staff outlined operational changes, recent training, and new policies and procedures implemented within the Division while providing an overview of the top complaints/ requests for service and workload. The presentation highlighted 110
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GOAL E - SAFETY
emerging issues in code compliance that will continue to be monitored and reported in future presentations.

An update was provided in December 2024 where staff correlated reductions in the number of open cases and officer caseload to officer training and new policies and procedures, allowing the Division to be more responsive to the public and creating opportunities for more proactive code enforcement. Staff covered current code issues, including cannabis odor, and referenced emerging and new technology that could serve as a force multiplier for the Division.

Staff will bring forward technology and other solutions in the January goal setting session and will evaluate these further in the upcoming biennial budget.

FIRE Fire Department contact mobile home parks to reinforce state water accessibility requirements
FIRE Measure W medic Placed in service July 1, 2025
FIRE Medic 3 Medic 3 was placed in service March 4, 2023.

ENG 2025 Citywide Speed Survey Completed- The Engineering Division awarded a Task Order to Albert A. Webb Associates, (On-Call Traffic Engineer), to conduct an Engineering and Traffic Survey (E&TS). Based on the survey's recommendations, an ordinance to implement updated speed limits was adopted on June 25, 2025. The Engineering Division coordinated with Public Works Maintenance staff to replace necessary speed limit signs. Under AB 43, California's “Traffic Safety Bill”, the updated speed limits established through the E&TS will allow the Cathedral City Police Department to issue enforceable speeding tickets.
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GOAL F- EMBRACING INCLUSIVE COMMUNITY
Dept Task Status- COMPLETED
DEV
SVCS/
PLN
Zoning code rewrite kickoff is scheduled for January 2025, and the project is expected to go through September 2026 City Council authorized a contract with Mintier Harnish (MH) for the preparation of the zoning code update. The contract includes several public workshops and steering and technical advisory meetings.

MH was one of five proposers and received the highest rating by a review committee made up of planning staff and two planning commissioners.

The RFP and scope of work (SOW) included input from the Historic Preservation Committee, Architectural Review Committee, Planning Commission, and City Council.

PW/
ENGIN/
DEV
SVCS
Educate residents regarding sidewalk horizontal clearance standards to ensure private mailboxes do not violate ADA accessibility requirements.

Public Works - Engineering worked with the Community and Economic Development Department to draft the ordinance to amend Title 9 and 12 of the Cathedral City Municipal Code. Staff updated Title 9 driveway standards and the percentage of front or side yard that can be improved for parking, which would alleviate the demand for street parking. In conjunction, the amendment to Title 12 now prohibits parking in front of mailboxes and implementing civil fines for parking violations. The amendments conformed to the discussion from the September 25, 2024, City Council study session. A Public Hearing was held at the December 11, 2024, City Council Meeting, where City Council approved the first reading of the ordinance. The second reading of the ordinance was approved at the January 8, 2025, City Council Meeting.

PW is continuing to evaluate locations where ADA accessibility is not in compliance and is correcting on a case-by-case basis.

COMM Communication & Events has created a marketing
document that can be sent out to prospective agencies and event companies in the Coachella Valley (and beyond) to showcase all city venues, particularly those in Downtown Cathedral City. Staff are also working to promote the
amphitheater as a destination venue for events and has
seen a steady increase in third-party applications, not just in the amphitheater, but Avenida Lalo Guerrero, Town
This is now finalized as a formal document that was presented to the Council in December 2024. Staff have also made enhancements to the Special Use Permit (SUP) application process and rental costs. This document beefs up the overall awareness of Cathedral City as an events destination, particularly the Community Amphitheater. In recent years, staff have seen third-party events requesting to come back after a successful experience. This includes the Coachella Valley Bully Fest, Autism Awareness Walk/Acceptance event, DAP Health Volunteer Appreciation, Desert BrewFest (Luchador Brewing), Mi Chavela Fest, and has 113
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GOAL F- EMBRACING INCLUSIVE COMMUNITY
Square Park, Festival Lawn, and the breezeway area/steps at Civic Center Plaza.
sparked continued interest from potential third-party applicants. The Communications & Events team has seen a 71% increase in events inside the amphitheater from 2022. Staff will continue to do the following as part of the plan:
Continue expanding digital marketing presence
Develop additional community partnerships
Enhance visitor amenities and services
Explore additional revenue streams through corporate events Build on success of multi-week event series
Focus on securing early commitments for 2025 events (have already achieved this) COMM Communications has developed a strategy/ comprehensive plan for social media and digital communications with
CiviSocial that serves as a blueprint for the City’s overall content and storytelling strategy, measuring overall
engagement and diversified methods of outreach to better prioritize where residents get their news/information, which maximizes our ROI.

The City has entered an agreement with FlashVote to conduct scientific surveys in English and Spanish asking residents where they like to receive communication/news from the City. Communications also continues to promote key news and events on KGAY Radio and Gay Desert Guide as outreach to our LGBTQ+ residents. Staff also have an agreement with El Informador, to publish news articles and event posters in one of the most popular Spanish newspapers in the Coachella Valley. The City of Cathedral City also participated in a short-term engagement with CiviSocial, a new firm focused on helping us with our communications strategy on social media. This has resulted in the creation of a new TikTok account and expanded storytelling commitment across several departments. Communications & Events leads a Social Media Ambassadors group that meets each week to discuss content creation and strategies for all platforms.

PD The PD created an informational video on our Homeless Liaison Officer (HLO) program which was shown at our
State of the City event in May. The video was also posted on all city social media sites and websites.

CiviSocial has workshopped with Communications &
Events creative ways the City can tell its story about
homelessness and the ways staff are working to address it.

While the initial communication/outreach video is complete, this is ongoing between PD and Communications. Both PD and Communications & Events are represented on the Homelessness Task Force and there will be more videos released in 2024-2025 related to this topic. This is an issue staff needs to continually communicate about and showcase how the city is addressing it.

Communications & Events will be addressing these topics in a new series called “Cracking the Code” with Code Compliance and will be doing a ride along video with CCPD focusing on the efforts of the Homeless Liaison Team. Communications & Events also participated and coordinated a few media interview opportunities with KESQ and other local media outlets to showcase the work being done in our 114
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GOAL F- EMBRACING INCLUSIVE COMMUNITY
City to combat homelessness and enhance overall beautification throughout the community.

Facilities has coordinated with the 3 rd party vendor and revised the contract to include 7 days/week city-wide facility monitoring nightly at City facilities and parks.

DEV
SVCS
Zoning code rewrite. Housing is a core element of the zoning code rewrite. Further land use regulation elements pertaining to housing will be evaluated as part of the rewrite. This project launches in January 2025 and will run through September 2026. See F-1.

DEV
SVCS
Zoning Ordinance Amendment – SB 9 The zoning code was amended in compliance with SB 9 to allow for urban lot splits and 2-unit residential developments, which would allow single family property owners to develop a combination of primary, accessory and junior accessory dwelling units, up to four units, on single family zoned lots.

CMO/
ECON
DEV
Communications & Events continues to collaborate with
third-party agencies and vendors on potential events as well as city marketing and improving the City's wayfinding program. The new Events & Recreation Coordinator should also boost opportunities here.

Ongoing. The City’s annual State of the City event was held to record attendance both in 2023 and 2024. LGBT+ Days is going through some rebranding to increase inclusivity for 2025, and Mi Chavela Fest will take place in the Community Amphitheater celebrating Mexican Independence Day. Taste of Jalisco continues to promote and raise awareness about Cathedral City’s sister-city partnership with Tequila, Jalisco, Mexico.

The Economic Development team will research innovative ways to leverage its relationship with Jalisco to incentivize the utilization of our Foreign Trade Zone (FTZ) designation alongside the expansion of the Palm Springs International Airport.

Communication & Events also worked with Economic Development to launch the inaugural Small Business Week celebration, focusing on several different categories of businesses and industries in Cathedral City. This coincided with the first-ever Small Business Week Workshop in the City Council Chambers in December 2024 where several businesses received key resources and assistance from multiple local, regional and state agencies. Economic Development staff personally invited over 180 businesses to the event.
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GOAL F- EMBRACING INCLUSIVE COMMUNITY
A new event coming to the city in 2025 is Hops and Honky Tonk, a Country Music event leading up to Coachella and Stagecoach weekends.

ECON
DEV
Communications and Economic Development continue to
collaborate on potential events as well as city marketing and improving the City's wayfinding program.

The City’s new social media strategic plan includes increased measures for Spanish language communications and the Communications & Events team did multiple posts for during Hispanic Heritage Month celebrating the diversity of our community. Internally, the City’s Events Committee also hosted a potluck featuring dishes from several Latin American countries. Feedback from staff was incredibly positive and the event was very well attended.

The Economic Development team is working to create impactful media that will be educational and inclusive to various populations in Cathedral City. This includes communication with Kevin Lyons from Flash Vote who will work with the city to survey the community.

CMO The CMO office has established a monthly meeting with employees from all relevant departments. A CVAG
representative (Housing First Program) will be attending the February 2024 Unhoused Committee meeting to provide
updates and progress information.

DEV
SVCS/
CODE
• Manage code compliance open caseload with a target of 1,000 open cases to create more opportunities for proactive officer time with a particular emphasis on visual blight along commercial corridors, including shopping cart enforcement, graffiti removal, and property maintenance. Continue to conduct proactive enforcement of unlicensed sidewalk
vendors.
• Increase code compliance participation in the Abandoned Vehicle Authority (AVA) program.
• Develop and deploy pilot programs for the education and enforcement of solid waste container regulations and
street sweeping.

As reported in the December 2024 update to City Council, the open caseload is down to around 850 cases, which has enabled officers to have more proactive time. Roughly 30 percent of the cases opened in 2024 have been opened by Code Compliance staff, a reflection of increased proactive time.

The Code Compliance Division conducted a pilot educational program on solid waste containers in 2024. Public Works Maintenance is utilizing the CodeRed messaging platform to send messages related to street sweeping.

The Code Compliance Division has evaluated technologies that would serve as a force multiplier for the Division and better enable the Division to initiate proactive code compliance campaigns by neighborhood, including the use of generative A.I. technology through CityDetect. These solutions will be presented in more depth in the January 2025 work session.
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GOAL F- EMBRACING INCLUSIVE COMMUNITY
DEV
SVCS/
CODE
A draft abandoned and vacant building ordinance was
presented to City Council in July 2024.

Revisions to the draft abandoned and vacant building ordinance will be made, and the item will be brought back to City Council along with information on residential trespass in 2025. The draft abandoned and vacant building ordinance will focus on commercial properties and will set minimum standards for their maintenance and monitoring. The draft ordinance will be prepared in conjunction with economic development to focus on the most problematic properties in the City.

DEV
SVCS
Development Services brought an ordinance amendment
to the City Council.

Planning contracted with RRM Architects to prepare ADU construction drawings for use by Cathedral City residential property owners. The City’s Pre-Approved ADU Program offers four sets of building plans for ADUs available for use by residents at no cost other than standard permitting fees. Three ADU plans range from a 468 square foot studio unit to a 1,000 square foot 2-bedroom unit. A garage conversion to a Junior ADU plan is also available
Economic Development will work on promoting the use of the ADU plans through educational videos and on the ED Webpage.

CMO Quarterly meetings with ACBCI continue. A joint meeting has been tentatively scheduled for March 13, 2025.

PW/CED
D
Zoning Code Ordinance Completed- In January 2025, an Ordinance was adopted to limit parking in front of mailboxes and implement zoning code updates for the amount of area that can be improved for parking on single-family residential and residential estate properties.

Code Compliance is now enforcing.
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Staff Report
City Council
Item No. 2.C
Meeting Date: August 12, 2026
From: John A. Corella, Director of Public Works
Title: Preliminary Report on Mailboxes and Other Sidewalk Obstructions RECOMMENDATION:

For the City Council to receive and discuss the preliminary findings regarding mailboxes and other sidewalk obstructions affecting Americans with Disabilities Act (ADA) accessibility throughout Cathedral City and provide comments and/or direction to staff regarding improvement solutions.

BACKGROUND:

Providing an accessible, safe, and continuous pedestrian network is a fundamental responsibility of California cities under both federal and state accessibility laws. Public sidewalks are an essential component of the city's transportation system, providing access to residential neighborhoods, schools, parks, businesses, transit services, and public facilities. Ensuring that sidewalks remain accessible to all users, including individuals with disabilities, supports the City's commitment to equitable access while promoting safe and convenient pedestrian travel.

Like many communities throughout the Coachella Valley, California, and across the nation, the city continues to address accessibility challenges associated with older infrastructure and established neighborhoods. Much of the city's sidewalk network was constructed years before the adoption of our modern accessibility standards. Over time, sidewalks have become occupied by a variety of public and private facilities that provide essential services but may reduce the available pedestrian clear width needed to accommodate an accessible Pedestrian Access Route (PAR).

One of the most common and challenging obstructions is the placement of mailboxes within or adjacent to the pedestrian access route. While mailboxes provide an essential public service and are generally installed in accordance with United States Postal Service (USPS) operational requirements, existing mailbox locations may reduce the available sidewalk width, particularly within older neighborhoods where sidewalks and mail delivery systems developed under earlier standards. Although mailbox placement is the primary focus of this report, it represents only one of several types of fixed infrastructure that can affect pedestrian 1 1

accessibility.

Other fixed objects commonly located within public sidewalks include utility poles, street name and regulatory signs, street lighting poles, traffic signal equipment, fire hydrants, water backflow prevention assemblies, utility cabinets, telecommunications equipment, and similar appurtenances. These facilities are necessary; however, their cumulative placement can create accessibility challenges within constrained public rights-of-way.

This issue is not unique to this city. Municipalities throughout California are evaluating similar conditions as they implement ADA Transition Plans, maintain aging infrastructure, and improve pedestrian facilities. Because many sidewalk obstructions are owned, operated, or regulated by outside agencies, including utility providers, water districts, telecommunications companies, and the United States Postal Service, improving accessibility frequently requires interagency coordination, engineering evaluation, and phased implementation over many years.

The purpose of this report is to evaluate mailbox-related sidewalk obstructions within the broader context of fixed infrastructure located in the pedestrian access route, summarize the applicable regulatory framework, identify the City's authority and limitations, and present potential strategies for improving pedestrian accessibility while maintaining essential public services.

Federal and State Accessibility Requirements
The Americans with Disabilities Act of 1990 (ADA), including Title II (42 U.S.C. § 12131 et seq.), requires state and local governments to provide individuals with disabilities equal access to public programs, services, and activities. Public sidewalks are recognized as an integral part of those public services, and local agencies are responsible for planning, designing, constructing, operating, and maintaining pedestrian facilities in a manner that provides accessible travel opportunities.

In California, accessibility requirements are further supported by Government Code sections addressing disability access, the California Building Standards Code (Title 24, California Code of Regulations), and the California Streets and Highways Code (Caltrans), where applicable. Together, these laws establish the framework within which local agencies evaluate and improve accessibility throughout the public right-of-way.

Cities with 50 or more employees are also required to maintain an ADA Transition Plan identifying physical barriers that limit accessibility and establishing priorities for their removal over time. Rather than requiring immediate reconstruction of every existing sidewalk, ADA Transition Plans provide a systematic process for identifying barriers, prioritizing improvements, and incorporating accessibility upgrades into capital projects, maintenance activities, and redevelopment.

Public Right-of-Way Accessibility
The U.S. Access Board's Public Right-of-Way Accessibility Guidelines (PROWAG) provide nationally recognized accessibility criteria for sidewalks, curb ramps, pedestrian street crossings, and other facilities located within the public right-of-way. Although many existing sidewalks predate current accessibility guidance, PROWAG serves as an important technical reference when evaluating pedestrian facilities and planning accessibility 2 2

improvements.

A central element of accessible sidewalk design is the Pedestrian Access Route (PAR), which provides a continuous and unobstructed path of travel for pedestrians, including individuals using wheelchairs, walkers, scooters, and other mobility devices. Maintaining this clear route can be challenging where sidewalks are narrow or where multiple public and private facilities occupy the available right-of-way.

Existing Conditions
Like many established California communities, this City's sidewalks contain infrastructure that has accumulated over decades to support essential public services. Common examples include:
Mailboxes
Utility poles
Street name and regulatory signs
Street lighting poles
Traffic signal equipment
Fire hydrants
Water backflow prevention devices
Utility cabinets
Telecommunications facilities
Street trees and landscaping
Other public and private appurtenances
Among these facilities, mailboxes present unique considerations because their placement is closely associated with USPS delivery requirements while also serving adjacent private properties. Unlike City-owned infrastructure, mailbox relocation generally requires coordination with USPS and affected property owners, limiting the City's ability to independently relocate existing installations.

Similarly, other infrastructure owned or controlled by outside agencies or utility providers often require coordination among jurisdictions and property owners to relocate or conduct other field modifications.

City's Approach
Consistent with practices used by municipalities throughout California, the city addresses accessibility improvements through implementation of its ADA Transition Plan, capital improvement projects, roadway reconstruction, development review, utility coordination, and routine maintenance activities. This approach integrates accessibility enhancements as opportunities arise while balancing engineering constraints, operational needs, public safety, infrastructure reliability, and available funding.

The city's evaluation of mailbox placement should be considered within the broader context of improving accessibility throughout the public right-of-way. Although this report focuses on mailbox obstructions, the same planning approach applies to other fixed infrastructure located within sidewalk corridors. The goal is to improve pedestrian accessibility wherever feasible while recognizing the legal, operational, and physical constraints associated with 3 3

maintaining essential public infrastructure.

DISCUSSION:

Existing Conditions and Analysis
The city has not adopted a citywide standard for residential mailbox placement. As a result, mailbox design, location, and installation practices vary considerably among neighborhoods, reflecting the development standards, subdivision designs, and postal delivery practices that existed at the time each neighborhood was constructed. These varying configurations result in different levels of potential impact on the pedestrian access route (PAR) within public sidewalks.

While mailboxes are the primary focus of this report, they represent only one of several types of fixed infrastructure that may affect sidewalk accessibility. Other infrastructure commonly located within or adjacent to sidewalks may also reduce the available PAR. Although the locations of many of these facilities can be identified through field observations and available utility records, the city does not currently maintain a comprehensive GIS inventory of all sidewalk obstructions, including traffic and regulatory signs, within the public right-of-way.

City staff conducted a preliminary evaluation of mailbox locations and other fixed infrastructure throughout existing neighborhoods to better understand their potential effect on pedestrian accessibility. The purpose of this evaluation was to identify general patterns, establish baseline information, and assist in evaluating potential strategies for improving accessible pedestrian routes throughout the City. This assessment is intended to provide planning-level information and does not constitute a parcel-by-parcel ADA compliance determination.

Criteria for Obstruction Evaluation
It is important to note that minimum sidewalk clearance requirements vary among regulatory agencies. For example, federal ADA accessibility guidelines require a minimum clear path of travel of 36 inches, with limited exceptions allowing a reduction to 32 inches at points of obstruction. By contrast, the Public Rights-of-Way Accessibility Guidelines (PROWAG) establish a minimum clear width of 48 inches for the pedestrian access route.

For purposes of this assessment within the public right-of-way, City engineering staff relies on California standards, specifically Caltrans guidance, which requires a minimum clear path width of 48 inches but allows short, isolated pinch points to narrow to 36 inches where permanent obstructions, such as utility poles, cannot reasonably be avoided.

Existing Mailbox Configurations
Staff identified three primary mailbox configurations commonly found throughout the city (Attachment 1 – Typical Mailbox Configurations).

Configuration 1 – Mailboxes Located Within the Sidewalk Behind the Curb This configuration places individual mailboxes within the sidewalk corridor immediately behind the curb. Depending on the sidewalk width and mailbox placement, this arrangement 4 4

has the greatest potential to reduce the available pedestrian clear width and may create localized pinch points within the pedestrian access route.

Configuration 2 – Mailboxes Located Behind the Sidewalk or Cluster Mailboxes In this configuration, individual mailboxes are located behind the sidewalk or consolidated into centralized cluster mailbox units. These installations generally minimize encroachments into the pedestrian access route and provide a more continuous sidewalk corridor while maintaining convenient mail service.

Configuration 3 – Mailboxes Located Within the Parkway or Multi-unit community mailboxes (Gang Mailboxes)
Where a landscaped parkway exists between the curb and sidewalk, mailboxes are located within the parkway rather than within the sidewalk itself. This configuration provides the most favorable condition for pedestrian accessibility because the sidewalk remains substantially free of obstructions while allowing adequate space for mail delivery. Similarly, gang mailboxes are typically placed in a location where they create no obstruction to a sidewalk’s PAR.

Neighborhood Assessment
Based on the preliminary field review, staff categorized existing neighborhoods (See Attachment 2 – Mailbox Neighborhood Map) into four general groups based on observed sidewalk conditions and the potential obstructive impact of mailboxes and other fixed infrastructure on the pedestrian access route:
Areas with “No Obstruction” Impact
Areas with “Minimal Obstruction” Impact
Areas with “High Obstruction” Impact
Areas “Without Sidewalks”
These categories were assigned based on an acceptable PAR of 36-inches, per Caltrans guidance on isolated pinch points and are intended to identify general patterns and assist in prioritizing future evaluation efforts. Individual locations within each neighborhood may differ from the overall classification.

Areas with “No Obstruction” Impact
Several neighborhoods on the northern side of the city were originally designed with landscaped parkways separating the curb from the sidewalk. In addition to accommodating landscaping, these parkways provide space for mailboxes, street signs, fire hydrants, streetlights, utilities, and other public infrastructure without creating obstructions within the sidewalk.

Neighborhoods generally exhibiting this condition include:
Verano Circle Park Neighborhood (north of Verona Road) La Pasada Neighborhood (north of Vista Chino, west of Landau Boulevard) Landau Manor (south of 30 th Avenue, west of Landau Boulevard) 5 5

Dennis Keat Park neighborhoods (north of 30 th Avenue) Assessment District 2001-01 Area (North of McCallum, South of 30 th Avenue, East of Date Palm Drive, West of Santoro Drive)
In these neighborhoods, the separation provided by the parkway generally allows the sidewalk to maintain a continuous pedestrian access route while accommodating essential public infrastructure.

Areas with “Minimal Obstruction” Impact
Other neighborhoods have individual mailboxes located behind the sidewalk or utilize cluster mailbox systems that consolidate mail delivery into centralized locations. These configurations generally minimize obstructions within the sidewalk and reduce their overall impact on pedestrian travel.

Neighborhoods generally exhibiting this condition include:
Dream Homes (Assessment District 2004-01)
Century Park Neighborhood
Although isolated obstructions may still exist, these neighborhoods generally provide a more continuous pedestrian access route than neighborhoods where individual mailboxes are located within the sidewalk corridor.

Areas with “High Obstruction” Impact
Several established neighborhoods contain individual mailboxes and other fixed infrastructure located within the sidewalk corridor. Depending on the sidewalk width, these installations may substantially reduce the available pedestrian clear width and warrant further engineering evaluation.

Neighborhoods where these conditions are more prevalent include:
Panorama Neighborhood
Whitewater Neighborhood
Rio Vista Neighborhood (south of Verona Road)
Sunny Sands Neighborhood
Neighborhoods within the Gerald Ford Drive, Date Palm Drive, Dinah Shore Drive, and Plumley Road area
These neighborhoods present the greatest opportunity for future evaluation because existing development patterns, limited right-of-way, and the location of existing infrastructure may constrain the available pedestrian access route. Any future improvements would require site- specific evaluation of sidewalk width, right-of-way availability, utility conflicts, mailbox placement, drainage, landscaping, and other physical constraints.

Areas Without Sidewalks
Staff also identified neighborhoods where sidewalks are generally absent. Because these areas do not currently provide an established pedestrian access route, they present conditions that differ from neighborhoods where accessibility is affected by fixed obstructions 6 6

within existing sidewalks.

Neighborhoods generally exhibiting this condition include:
The Cove Neighborhood (Assessment District 2004-02)
Ottawa Neighborhood (north of Gerald Ford Drive, between Date Palm Drive and Plumley Road)
Ocotillo Square Neighborhood
Sunny Lane, Papaya Lane, and Pomegranate Lane west of DaVall Drive Improving pedestrian accessibility within these areas would likely require the construction of new sidewalk infrastructure rather than the relocation or modification of existing obstructions and should therefore be evaluated separately.

Major Corridors Assessment
Staff evaluated major corridors separately from neighborhoods. These corridors, which include Date Palm Drive, East Palm Canyon Drive, Ramon Road, and Vista Chino, provide access points to major commercial areas and public transit loading zones. From field observations, it was determined these corridors generally have continuous and accessible pedestrian routes, with some exceptions primarily consisting of sections without sidewalk fronting undeveloped parcels.

Summary of Findings
The preliminary assessment demonstrates that sidewalk accessibility conditions vary considerably throughout the city. While some neighborhoods provide parkways or alternative mailbox configurations that preserve an unobstructed pedestrian access route, others contain mailboxes and additional infrastructure located within constrained sidewalk corridors that may reduce the available pedestrian clear width.

The information presented in this preliminary assessment establishes a baseline for evaluating future improvement strategies and identifying locations where accessibility enhancements may provide the greatest public benefit while balancing operational, engineering, and fiscal considerations.

The table below summarizes mailbox configurations and obstruction impacts across Cathedral City Neighborhoods.

Neighborhood # of
Lots
# of
Mailbox
locations
Mailbox
Configuration
Obstruction
Impact
Verano Circle Park 471 10 Gang /
Parkway
No
Obstruction
La Pasada 313 31 Gang /
Parkway
No
Obstruction
Landau Manor 193 8 Gang /
Parkway
No
Obstruction
Dennis Keat Park 135 6 Gang / offset
sidewalk
No
Obstruction
7 7

AD 2001-01 Area 424 42 Gang /
Parkway
No
Obstruction
Dream Homes
(AD 2004-01) 489 381
Singles and
Doubles
Behind
Sidewalk
Minimal
Obstruction
Century Park 465 114 Majority
Clusters
Minimal
Obstruction
Panorama North
(AD 88-3) 2269 1770
Singles,
Doubles, and
few Clusters
High
Obstruction
Panorama South
(Ramon Rd to 30th Ave) 1,936 1,646
Singles,
Doubles, and
few Clusters
High
Obstruction
Whitewater 1,281 1,106
Singles,
Doubles, and
few Clusters
High
Obstruction
Rio Vista (AD 96-1) 1,055 886 Singles and
Doubles
High
Obstruction
Sunny Sands Neighborhood 531 458 Singles and
Doubles
High
Obstruction
35th Ave (Within Dinah Shore,
Date Palm, and Converse)
(AD 2003-01)
415 187 Singles and
Doubles
High
Obstruction
The Cove
(AD 2004-02) 1,237 857
Singles,
Doubles, and
few Clusters
Without
Sidewalk
Ottawa Area north of Gerald
Ford 54 33 Singles and
Doubles
Without
Sidewalk
Sunny Lane,
Papaya Lane,
& Pomegranate Lane
85 76 Singles and
Doubles
Without
Sidewalk
Ocotillo Square
Neighborhood 1,237 857 Singles and
Doubles
Without
Sidewalk
Potential Solutions
Because neighborhood conditions, right-of-way constraints, and infrastructure ownership differ throughout the city, a single citywide solution is unlikely to be appropriate. Instead, improvements should be prioritized based on observed conditions, engineering feasibility, coordination with affected agencies, including the United States Postal Service and utility providers, and opportunities presented through capital improvement projects, redevelopment, utility relocation, and routine maintenance activities.

Expanding Sidewalk at point of obstruction
The most direct method of providing a continuously accessible path of travel is to realign the sidewalk around fixed obstructions, typically by constructing a gradual curve or bulb-out around the existing infrastructure. However, this approach depends on the availability of 8 8

public right-of-way (ROW) and may not be feasible where ROW is constrained.

To gauge the scope of work required for sidewalk widening, engineering staff conducted an analysis of three randomly selected street segments within neighborhoods experiencing the greatest concentration of obstructions. The analysis evaluated existing conditions using a minimum clear path-of-travel width of 36 inches.

Tortuga Road, from Avenida Maravilla to Avenida la Paz:

Total Mailboxes Mailboxes with conflict % Mailboxes with conflict 67 8 12%
The Panorama neighborhood contains an estimated 3,416 mailbox locations. Assuming conditions are consistent with those observed along Tortuga Road, where approximately 12% of mailbox locations obstruct the pedestrian path of travel, an estimated 410 locations would require corrective improvements.

The cost to widen or realign the sidewalk around existing infrastructure is estimated to range from $600 to $1,200 per location. Using an average cost of $900 per location, the estimated construction cost to address approximately 410 mailbox locations in the Panorama neighborhood would be about $369,000.

Navajo Trail from Ortega Road to 33rd Avenue:

Total Mailboxes Mailboxes with conflict % Mailboxes with conflict 46 11 24%
The Whitewater neighborhood contains an estimated 1,106 mailbox locations. Assuming conditions are consistent with those observed along Navajo Trail, where approximately 24% of mailbox locations obstruct the pedestrian path of travel, an estimated 265 locations would require corrective improvements.

The cost to widen or realign the sidewalk around existing infrastructure is estimated to range from $600 to $1,200 per location. Using an average cost of $900 per location, the estimated construction cost to address approximately 265 mailbox locations in the Whitewater neighborhood would be approximately $238,500.

Cathedral Canyon Drive from Ortega Road to Corral Road:

Total Mailboxes Mailboxes with conflict % Mailboxes with conflict 55 15 27%
Cathedral Canyon has an estimated total of 90 mailbox locations North of Dinah Shore. With the assumption that the corridor follows a pattern similar to the section analyzed, and 27% of mailboxes exhibit path of travel obstruction, approximately 24 mailbox locations will require corrective measures.

The cost of expanding the sidewalk around existing infrastructure is estimated between $600-$1,200. At an average of $900, correcting 24 mailbox locations at Cathedral canyon Drive would cost approximately $21,600.
9 9

Relocating Mailboxes
An alternative approach to achieving a continuous accessible path of travel in affected neighborhoods would be to remove and relocate obstructing mailboxes. This option would require extensive coordination with the U.S. Postal Service (USPS) and affected property owners.

While mailbox relocation may be feasible in some locations, the same approach is generally not applicable to other types of fixed infrastructure, such as utility poles, fire hydrants, or similar public facilities, which present additional legal, operational, and engineering constraints.

Right of Way (ROW) Asset Inventory
The field observations and estimates presented in this preliminary assessment establish a baseline understanding of the city’s pedestrian network and provide a framework for future discussion and City Council direction. However, a comprehensive right of way (ROW) asset inventory is necessary to develop a GIS database documenting the location and condition of infrastructure in the ROW. This inventory would assist in pinpointing critical and outlying sections within the city’s sidewalk network and support the prioritization of future improvements. Additionally, a GIS inventory database would serve as a centralized tool for tracking infrastructure and maintaining up-to-date records as future capital projects, development projects, and maintenance activities are completed.

Engineering staff solicited cost proposals for a complete ROW asset inventory from the following firms:
City Detect – Tuscaloosa, AL
oCity detect requested a few of months to train their artificial intelligence (A.I) model to gather the data requested. They could not provide a proposal without first taking this step.
NCE – Fountain Valley, CA
oMailbox Inventory - $23,146.00
oSign Inventory - $31,373.00
oSidewalk inventory with width - $14,611.00
It’s important to note that NCE’s asset inventory does not include path of travel width at points of obstruction.

FISCAL IMPACT:

At this time, there is no fiscal impact associated with this presentation. Should the City Council direct staff to implement any of the solutions discussed in this report, the associated costs would be presented for City Council consideration either on a project-specific basis or as part of a future Biennial Budget.

If the City Council directs staff to incorporate these solutions into eligible Capital Improvement Program (CIP) projects adjacent to or within affected areas, the associated improvements, scope, and funding would be included in the project budget and presented to the City Council for approval as part of the individual CIP project. 10 10

FIVE-YEAR STRATEGIC PLAN:

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

Action B-18: Research options to address mailboxes that impact sidewalk ADA accessibility.

ATTACHMENTS:

1. Typical Mailbox Configurations

2. Mailbox Neighborhood Map
11 11

Typical Mailbox Configurations
Configuration 1:

Mailboxes Located Within the Sidewalk Behind the Curb

12 12

Configuration 2:

Mailboxes Located Behind the Sidewalk or Cluster Mailboxes

Configuration 3:

Mailboxes Located Within the Parkway or Gang Mailboxes

13 13

10 14
14 Staff Report
City Council
Item No. 3.A
Meeting Date: August 12, 2026
From: Eric S. Vail, City Attorney
Title: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Pursuant to Government Code section 54956.9(d)(1)
Number of matters: One (1) Zenergy Capital, LLC v. Palm Springs Cemetery District, City of Cathedral City, et al.,
Superior Court of California, Riverside County, Case No.

CVPS2406355
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NAME 7/15
Roy MacPhail
Danny Lee
Danielle Mead
Colby Gregory
Vacant
NAME 7/14
Kara Robinson
Gregory Marks
Don Stouder
Denise Anderson-Minshall
Craig Liebelt
NAME 9/1
Ashley McGallum
Erin Hyland
Erik Castillo
Mario Jimenez
Antonio Baciu
NAME 8/18
Craig Bugbee
Eri Nox
Luis Rubalcava
Vacant
Vacant
NAME 8/5
Tanner Hoss
Dean Keefer
Stephen Burchard
Vacant
Vacant

NAME TBD TBD
Antonio Baciu
Rick Saldivar
Danny Lee
Teri Hargreaves
Vacant
Excused Absence
Unexcused Absence0%

FINANCE ADVISORY COMMITTEE
% Attended
0%
0%
0%
0%
NOTES:

Canceled meetings not shown
Special Meeting
Inactive
0%
0%
0%
0%
0%
0%

ARCHITECTURAL REVIEW COMMITTEE
% Attended
100%
100%
100%
0%
% Attended
100%
100%
100%

PARKS AND COMMUNITY EVENTS COMMISSION
% Attended
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0%
0%
0%
0%

HISTORIC PRESERVATION
100%
COMMISSION/COMMITTEE ATTENDANCE LOG FY 2026/2027

PLANNING COMMISSION
% Attended
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PUBLIC ARTS COMMISSION
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CITY COUNCIL

MINUTES
Study Session 3:00 PM
Regular Meeting 5:30 PM
Wednesday, July 22, 2026
City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234

CALL TO ORDER
The meeting was called to order by Mayor Raymond Gregory at 3:00 p.m.

ROLL CALL
Council Present:

Raymond Gregory, Mayor
Ernesto Gutierrez, Mayor Pro Tem
Rita Lamb, Councilmember
Christina Gordon, Councilmember
Council Absent:

Nancy Ross, Councilmember
M.O. 2026- 110
A motion was made by Mayor Gregory and seconded by Councilmember Gordon to excuse the absence of Councilmember Nancy Ross from the Study Session and the Regular City Council meetings of July 22, 2026.

RESULT: PASS
MOVER: Raymond Gregory, Mayor
SECONDER: Christina Gordon, Councilmember
AYES: Gregory, Gutierrez, Lamb, Gordon
ABSENT: Ross

AGENDA FINALIZATION
City Clerk Christina Burton announced that the title on Closed Session Item 3A should read:

Employee Organization: Cathedral City Firefighters Association (CCFA) 1 1

1. PUBLIC COMMENTS
There were no members of the public that wished to speak.

2. STUDY SESSION
A. Desert Recreation District Services Update
Recommendation: To receive a presentation by staff from the Desert Recreation District on the status of park maintenance and programming.

Anne Ambrose, Assistant City Manager, provided a quarterly update on Desert Recreation District (DRD) services. The following points were presented:

Measure W approved DRD partnership for parks services. Executed Service Agreement, Tax Exchange Agreement, and Annexation Status
Fiscal Impact
Expenditures through May 31, 2026
Gabriel Martin, General Manager, Ana Velasquez, Community Services Coordinator, and Scott Sear, Public Information and Legislative Affairs Officer, for Desert Recreation District (DRD), provided an update on the status of park maintenance and programming. The following points were presented:
Partnership Foundation
Park Maintenance in Cathedral City
Programming
Fall and Winter Program Highlights
Park Safety and Customer Care
Community Engagement and Outreach
What Cathedral City Resident Gain
Timeline and Next Steps
The City Council asked clarifying questions which were responded to by staff and the DRD representatives.

This item was a presentation only, and there was no formal action taken by the City Council.

B. Consideration of Assembly Bill 1775 (Cannabis Cafes) and Other Updates to the City's Cannabis Ordinances.

Recommendation: Staff recommends that City Council receive the report, discuss Assembly Bill 1775, and provide direction to staff regarding preparation of a future ordinance amending Chapter 5.88 and Chapter 3.48 of the Cathedral City Municipal Code to allow licensed cannabis consumption 2 2

lounges to host indoor ticketed and non-ticketed events, live entertainment, and related lounge activities within the approved licensed premises, subject to all applicable State and local requirements.

Staff further recommends that Council receive related amendments to strengthen cannabis business licensing, tax compliance, enforcement, ownership and management review, appeal procedures, and general code cleanup so the City's cannabis regulations remain consistent with current State law and local operational needs.

Justin Gardiner, Code Compliance Manager, provided an overview on Assembly Bill (AB) 1775 and provided an update on Cathedral City cannabis ordinances. The following points were presented:

Recommendation
Background of AB 1775
Authorizations and Requirements Under AB 1175
Chapter 3.48 and Chapter 5.88 Alignment
Legal Provisions
Conditional Use Permit Process
Fiscal Impact and Enforcement
Implementation and Strategic Plan
The City Council asked clarifying questions, which were responded to by staff.

Public Comments:

Scott Rusczyk expressed his excitement related to AB1175 and offered observations and suggestions.

Kevin Lopez provided comments relating to striving for equality and the proposed ordinance.

Seth Berk expressed his support and would like to move quickly.

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

C. Code Compliance Volunteer Program
Recommendation: Staff recommend City Council receive the report, discuss the proposed Community Engagement and Enhancement Program, and provide direction to staff regarding implementation of a twelve-month pilot program within the Code Compliance Division.

Staff recommend a limited pilot program that would allow trained volunteers to assist the Code Compliance Division with community outreach, education, neighborhood enhancement activities, and observational reporting, while maintaining clear operational boundaries and preserving all enforcement responsibilities for represented Code Compliance staff.

Justin Gardiner, Code Compliance Manager, provided an overview on a 3 3

proposed Community Engagement and Enhancement Program. The following points were presented:

Purpose
Objectives
Scope of Activities
Training and Eligibility
Implementation Considerations
Fiscal Impact
Recommendation
The City Council asked clarifying questions, which were responded to by staff and legal.

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

D. Cathedral City Fire & EMS 2027-2029 Strategic Plan – Process Overview and Stakeholder Engagement Update
Recommendation: Staff recommends that the City Council receive and file this report as an informational overview of the Cathedral City Fire & EMS 2027–2029 Strategic Plan development process.

This item was held over to the Regular Meeting and is reflected as item 5E under the Legislative portion.

3. CLOSED SESSION
A. Conference with Labor Negotiator Pursuant to Government Code 54957.6
Labor Negotiator: Algeria Ford, Assistant City Attorney and Asusena Soren, Human Resources Manager
Employee Organizations: American Federation of State, County and Municipal Employees (AFSCME) and Cathedral City Firefighters Association (CCFA)
Recommendation: There is no staff recommendation.

City Attorney Eric Vail announced that the City Council will meet in Closed Session to discuss item 3A.

The City Council recessed to Closed Session 4:51 p.m.

The City Council reconvened at 5:09 p.m.

Mr. Vail reported that item 3A was completed in Closed Session and there was no reportable action.

RECESS
REGULAR MEETING - 5:30 PM
4 4

CALL TO ORDER
The meeting was called to order by Raymond Gregory at 5:30 p.m.

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Raymond Gregory.

INVOCATION (MOMENT OF REFLECTION)
Mayor Pro Tem Ernesto Gutierrez offered the Invocation.

ROLL CALL
Council Present:

Raymond Gregory, Mayor
Ernesto Gutierrez, Mayor Pro Tem
Rita Lamb, Councilmember
Christina Gordon, Councilmember
Council Absent:

Nancy Ross, Councilmember
The absence of Councilmember Ross was approved during the Study Session meeting.

AGENDA FINALIZATION
Item 2D from the Study Session meeting was heard as item 5E under the Legislative portion of the Regular Meeting.

1. PUBLIC COMMENTS
In-Person Public Comments:

Paul Wedekind expressed concern about her neighbor’s driveway and city staff.

Erik Castillo provided comments related to data centers as they relate to the development code update.

David Bernard discussed a recent weather event that affected the C4 facility.

Kara Robinson provided comments related to data centers as they relate to the development code update.

Zoom Public Comments:

Debbie Price expressed her concern related to an incident that occurred at the C4 facility.

David O’Brien expressed concern related to FLOCK cameras.

Janet Ream expressed concern related to an incident that occurred at the C4 facility and the cannabis odor.
5 5

2. COUNCIL REPORTS
Councilmember Christina Gordon reported on the following:

Her attendance at the Mary Pickford Kids Summer Movies event Her attendance at the Desert Recreation District’s Splash Bash event Her ride along tour with the Coachella Valley Association of Governments (CVAG) staff
Her attendance at the Coachella Valley Homeless Committee meeting Her attendance at the ribbon cutting for Farmer Boys
Her attendance at the Street Topper event for Richard Altman Her attendance at the CVAG General Assembly meeting
Her meetings with various city staff
Her ride along with the City’s Community Behavior Assessment Team Her attendance at three meet and greets in the Community Her attendance at the Police Explorers SWAT event at Desert Hot Springs High School
Councilmember Rita Lamb reported on the following:
Her ride along tour with the CVAG staff
Her attendance at the City’s Commissioners and Committee Member recognition event
Her attendance at a CVRep show
She recognized Cathedral City student, Valentina Placencia for the Do the Right Thing Awards
Her attendance at the Desert R.A.T.S. event
Her attendance at the Development Code meeting at the Cathedral City Library Her attendance at the Dinner with Patsi event
Her attendance at the Senior Center’s Food Bank
Her viewing of the recent Planning Commission meeting
Her vote for the Esperanza Park mural
Mayor Pro Tem Ernesto Gutierrez reported on the following:
His courses in Real Estate
His appointment to obtain candidate nomination paperwork His catch-up on work
His meeting with City Manager Firestine
His meetings with local developers and business owners His assistance to residents regarding code compliance and building guidance His attendance at the ribbon cutting for Farmer Boys
His attendance at the CVAG General Assembly meeting
He encouraged residents to attend the Cathedral City Police Department’s backpack event
Mayor Raymond Gregory reported on the following:
His attendance at the groundbreaking for mid county parkway (Ramona 6 6

Expressway)
His attendance at the CVAG General Assembly meeting
His attendance at the CVAG Executive Committee
His attendance at the Visit Greater Palm Springs Board meeting His attendance as the alternate at the Sunline Transit Agency Meeting His attendance at the Mary Pickford Kids Summer Movies event His attendance at the ribbon cutting for Farmer Boys
His attendance at the Street Topper event for Richard Almen His attendance at the Ethyl’s Place Bingo event
His participation as a Co-leader at a summer camp for teens His attendance at the Dinner with Patsi event
His attendance at the Bingo with Patsi event
His Big Bear and San Diego vacations

3. CONSENT AGENDA
A. Waive Full Reading of Ordinances on Agenda
Recommendation: Waive Full Reading of Ordinances on Agenda M.O. 2026-111
B. Commissioner/Committee Member Attendance Record
Recommendation: Receive and File
M.O. 2026-112
C. Approval of the Study Session and Regular Meeting minutes of June 10, 2026.

Recommendation: To approve the Study Session and Regular Meeting minutes of June 10, 2026.

M.O. 2026-113
D. Check Demand May 2026
Recommendation: Receive and File.

M.O. 2026-114
E. Check Demand - June 2026
Recommendation: Receive and File.

M.O. 2026-115
F. Notice of Completion for the Whitewater Area Street Rehabilitation Project Phase II (C02610)
Recommendation: To accept and approve the Whitewater Area Street Rehabilitation Project Phase II (C02610) as complete; authorize the City Manager to execute and file a notice of completion (NOC) with the Riverside County Recorder’s Office; and authorize the release of retention funds to 7 7

Matich Corporation upon expiration of the notice of completion.

M.O. 2026-116
G. Notice of Completion for the Sunny Sands Neighborhood Pavement Rehabilitation and Cathedral Canyon Drive Street Rehabilitation Projects (C02612 & C02613)
Recommendation: To accept and approve the Sunny Sands Neighborhood Pavement Rehabilitation Project (C02612) and Cathedral Canyon Drive Street Rehabilitation Project (C02613) as complete; authorize the City Manager to execute and file a notice of completion (NOC) with the Riverside County Recorder’s Office for each project; and authorize the release of retention funds to Matich Corporation upon expiration of the notices of completion.

M.O. 2026-117
H. Notice of Completion for the Cypress Road and Santoro Drive Retention Basin Project (C02609)
Recommendation: To accept and approve the Cypress Road and Santoro Drive Retention Basin Project (C02609) as complete; authorize the City Manager to execute and file a notice of completion (NOC) with the Riverside County Recorder’s Office; and authorize the release of retention funds to Wright Construction Engineering Corporation upon expiration of the notice of completion.

M.O. 2026-118
I. Notice of Completion for the Cathedral Canyon Drive Sidewalk Project (C02608)
Recommendation: To accept and approve the Cathedral Canyon Drive Sidewalk Project (C02608) as complete; authorize the City Manager to execute and file a notice of completion (NOC) with the Riverside County Recorder’s Office; and authorize the release of retention funds to S&H Civilworks upon expiration of the notice of completion.

M.O. 2026-119
J. Notice of Completion for the Construction of the Cathedral City, Mountain Cathedrals Entryway Monument Project (C02601)
Recommendation: To accept and approve the Cathedral City, Mountain Cathedral Entryway Monument Project (C02601) as complete; authorize the City Manager to execute and file notices of completion (NOCs) with the Riverside County Recorder’s office; and authorize the release of retention funds to Hoffman Steel Fabrication, Inc., Westcon Construction Services, Inc., Towers Electric, and Rhythm Electric upon expiration of the notices of completion.

M.O. 2026-120
8 8

K. Notice of Completion for the Dream Homes Neighborhood Crack Repair Project (C02611)
Recommendation: To accept and approve the Dream Homes Neighborhood Crack Repairs Project (C02611) as complete; authorize the City Manager to file a notice of completion (NOC) with the Riverside County Recorder’s Office; and authorize the release of retention funds to Riverside Slurry Seal, Inc. upon expiration of the notice of completion.

M.O. 2026-121
L. Ratification of Agreement Between the City of Cathedral City and the Cathedral City Firefighter's Association.

Recommendation: Staff recommends the City Council ratify the Memorandum of Understanding (MOU) for the newly consolidated Fire bargaining unit, Cathedral City Firefighter’s Association (CCFA), for the period of January 1, 2026, through December 31, 2028.

Additionally, Staff recommends the City Council formally acknowledge that the Cathedral City Fire Management Association (CCFMA) and the Cathedral City Professional Firefighter’s Association (CCPFA) will no longer be recognized as separate bargaining units upon approval of the consolidated agreement.

M.O. 2026-122
M. Approve a Resolution Adopting an Updated City-Wide Salary Schedule Recommendation: To adopt a resolution approving city-wide publicly available pay schedules in compliance with California Code of Regulations, Title 2, Sections 570.5, 571, and 571.1. This resolution will supersede all previous resolutions regarding job classifications and compensation levels to the extent they conflict with this new recommendation.

Reso 2026-27
N. FY 2025 Emergency Management Performance Grant (EMPG) Recommendation: Accept the FY 2025 Emergency Management Performance Grant (EMPG) subaward in the amount of $5,146 from the Riverside County Emergency Management Department, authorize the City Manager or designee to execute all required grant acceptance documents, and approve the use of grant funds to support the City's ongoing Emergency Operations Center (EOC) modernization effort.

Reso 2026-28
O. 2026-2027 California Highway Patrol Cannabis Tax Fund Grant Program Recommendation: To approve a resolution accepting the FY2026/2027 California Highway Patrol Cannabis Tax Front Grant in the amount of $25,152 and authorizing the City Manager or his designee to execute all related documents.
9 9

Reso 2026-29
P. 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.

City Manager Andrew Firestine discussed an increase in the Dana Safety Supply, Inc and Dell Technologies invoices, which amends the total authorized amount of purchase in the recommendation from $63,381.07 to $64,108.71.

M.O. 2026 -123
A motion was made by Councilmember Lamb and seconded by Mayor Pro Tem Gutierrez to approve the Consent Agenda.

RESULT: PASS
MOVER: Rita Lamb, Councilmember
SECONDER: Ernesto Gutierrez, Mayor Pro Tem
AYES: Gregory, Gutierrez, Lamb, Gordon
ABSENT: Ross

4. PUBLIC HEARINGS
A. AB 2561 Employee Vacancies and Recruitment and Retention Recommendation: To hold a public hearing and receive and file this report.

Lidia Buelna, Human Resources Specialist, provided the presentation.

The City Council asked clarifying questions, which were responded to by staff.

Mayor Raymond Gregory opened the Public Hearing to receive public comments. Seeing none, he closed the Public Hearing and returned discussion to the City Council.

M.O. 2026-124
A motion was made by Mayor Pro Tem Gutierrez and seconded by Councilmember Gordon to hold a public hearing and receive and file this report.

RESULT: PASS
MOVER: Ernesto Gutierrez, Mayor Pro Tem
SECONDER: Christina Gordon, Councilmember
AYES: Gregory, Gutierrez, Lamb, Gordon
ABSENT: Ross
B. CFD 2006-1, IA #23, Formation, Election and Ordinance Public Hearing 10 10

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
Mayor Raymond Gregory provided remarks related to the process of the Public Hearing and opened the Public Hearing to receive a presentation by staff, receive public comment and receive any oral or written protests.

Christina Burton, City Clerk, announced that the Notice of Public Hearing was published in accordance with the Mello Roos Community Facilities Act of 1982 and proof of such publication is on file with the City Clerk’s office.

Patrick Bumstead, Senior Analyst, provided the presentation.

Seeing no oral protests or written protests, Mayor Gregory closed the Public Hearing and returned the discussion to the City Council.

Reso 2026-30
A motion was made by Mayor Pro Tem Gutierrez and seconded by Councilmember Lamb to adopt a 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).

RESULT: PASS
MOVER: Ernesto Gutierrez, Mayor Pro Tem
SECONDER: Rita Lamb, Councilmember
AYES: Gregory, Gutierrez, Lamb, Gordon
ABSENT: Ross
Reso 2026-31
A motion was made by Mayor Pro Tem Gutierrez and seconded by Councilmember Lamb to adopt a 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 for a Special Election. 11 11

RESULT: PASS
MOVER: Ernesto Gutierrez, Mayor Pro Tem
SECONDER: Rita Lamb, Councilmember
AYES: Gregory, Gutierrez, Lamb, Gordon
ABSENT: Ross
Reso 2026-32
A motion was made by Councilmember Gordon and seconded
by Councilmember Lamb to adopt a Resolution of the City Council of the City of the City of Cathedral City acting on behalf 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.

RESULT: PASS
MOVER: Christina Gordon, Councilmember
SECONDER: Rita Lamb, Councilmember
AYES: Gregory, Gutierrez, Lamb, Gordon
ABSENT: Ross
M.O. 2026-125
A motion was made by Councilmember Lamb and seconded by Mayor Pro Tem Gutierrez to introduce, by title only, the first reading of an ordinance of the City Council of the City of Cathedral City acting as the Legislative Body of the 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.

RESULT: PASS
MOVER: Rita Lamb, Councilmember
SECONDER: Ernesto Gutierrez, Mayor Pro Tem
AYES: Gregory, Gutierrez, Lamb, Gordon
ABSENT: Ross
The City Council recessed at 6:48 p.m.

The City Council reconvened at 6:55 p.m.

5. LEGISLATIVE ACTIONS
A. 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.
12 12

Erick Becerril, Economic Development Manager, provided the presentation.

The City Council asked clarifying questions, which were responded to by staff. After discussion it was the direction of the City Council to amend the resolution to add a section as discussed this evening.

Reso 2026-33
A motion was made by Mayor Gregory and seconded by Mayor Pro Tem Gutierrez 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 with an amendment to add the following as section 5:

The authority delegated to the City Manager and the Financial Services Director in Section 4 above does not abrogate the authority of the City Council to receive a report on, review, and approve expenditures of the Proposition 64 Public Health & Safety Grant Program funds awarded to the City.

RESULT: PASS
MOVER: Raymond Gregory, Mayor
SECONDER: Ernesto Gutierrez, Mayor Pro Tem
AYES: Gregory, Gutierrez, Lamb, Gordon
ABSENT: Ross
B. 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.

Erick Becerril, Economic Development Manager, provided the presentation.

The City Council asked clarifying questions, which were responded to by staff.

Reso 2026-34
A motion was made by Councilmember Lamb and seconded
by Councilmember Gordon to adopt a Resolution authorizing the City Manager to conduct a feasibility study for Tax Increment Financing (TIF) Districts.

RESULT: PASS
MOVER: Rita Lamb, Councilmember
SECONDER: Christina Gordon, Councilmember
13 13

AYES: Gregory, Gutierrez, Lamb, Gordon
ABSENT: Ross
C. 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.

M.O. 2026-126

Elizabeth Medina, Engineering Analyst, provided the presentation.

The City Council had no questions.

A motion was made by Mayor Pro Tem Gutierrez and seconded by Councilmember Gordon to 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.

RESULT: PASS
MOVER: Ernesto Gutierrez, Mayor Pro Tem
SECONDER: Christina Gordon, Councilmember
AYES: Gregory, Gutierrez, Lamb, Gordon
ABSENT: Ross
D. Ratify the Nomination by Councilmember Ross to Appoint John Rivera to Serve on the Planning Commission for a Three-year Term to Expire June 30, 2029
Recommendation: To ratify the nomination by Councilmember Nancy Ross to appoint John Rivera to serve on the Planning Commission for a three-year term continuing through June 30, 2029.

City Manager Andrew Firestine provided an overview of the nomination made by Councilmember Ross.

The City Council provided brief comments.

M.O. 2026-127
A motion was made by Mayor Pro Tem Gutierrez and seconded by Councilmember Lamb to ratify the nomination by Councilmember Nancy Ross to appoint John Rivera to serve on the Planning
14 14

Commission for a three-year term continuing through June 30, 2029.

RESULT: PASS
MOVER: Ernesto Gutierrez, Mayor Pro Tem
SECONDER: Rita Lamb, Councilmember
AYES: Gregory, Gutierrez, Lamb, Gordon
ABSENT: Ross
E. Cathedral City Fire & EMS 2027-2029 Strategic Plan – Process Overview and Stakeholder Engagement Update
Recommendation: Staff recommends that the City Council receive and file this report as an informational overview of the Cathedral City Fire & EMS 2027–2029 Strategic Plan development process.

Michael Contreras, Fire Chief, presented the Fire Departments 2027-2029 Strategic Plan. The following points were presented:
Strategic Plan Roadmap – Destination, Milestones, Guardrails, and Performance Checkpoints.
Starting Point – Building On a Foundation of Results
3 Years of Past Performance
Revenue Fiscal Year 2025-2026
Call Volumes
Chief’s Weekly Briefing – Metric Dashboard
Strategic Planning: Why Now?
Community’s Input
Plan at a Glance
Fourteen Step Planning Model
Top 5 Priority Investment Areas
Designed to Build the Fiscal Year 2027 Budget
Accountability Structure
Road to Adoption
The City Council asked clarifying questions, which were responded to by staff. This was a presentation only, and there was no formal action taken by the City Council.

6. DISCUSSION ON FUTURE AGENDA ITEMS
There was no discussion on future agenda items.

7. CLOSED SESSION

ADJOURNMENT
Mayor Raymond Gregory adjourned the Regular Meeting at 8:22 p.m.

Mayor, City of Cathedral City City Clerk, City of Cathedral City 15 15

Staff Report
City Council
Item No. 3.D
Meeting Date: August 12, 2026
From: Erick Becerril – Economic Development Manager
Title: Authorize a Letter of Support to the Governor’s Office of Business and Economic Development (GO-Biz) - Supporting the Designation of Eligible Opportunity Zone 2.0 Census Tracts within the City of Cathedral City
RECOMMENDATION:

To authorize the City Manager to prepare a Letter of Support to the Governor’s Office of Business and Economic Development (GO-Biz) supporting the designation of eligible Opportunity Zones 2.0 census tracts located within the City of Cathedral.

BACKGROUND:

The federal Opportunity Zone program was originally established through the Tax Cuts and Jobs Act of 2017 to encourage long-term private investment in economically distressed communities through preferential federal tax treatment for qualified investments.

Congress has since enacted legislation creating Opportunity Zones 2.0, providing states with the opportunity to nominate a new set of eligible census tracts for designation. The Governor’s Office of Business and Economic Development (GO-Biz) has initiated California’s public comment process to assist in identifying eligible census tracts for nomination to the U.S. Department of the Treasury. The public comment period is scheduled from August 3, 2026 - August 28, 2026.

Within Cathedral City, the following census tracts have been identified as eligible for consideration:
Census Tract 06065044702
Census Tract 06065044907
Census Tract 06065044933
Census Tract 06065044934
Census Tract 06065044916
Census Tract 06065045000
Census Tract 06065941001
On August 3rd, GO-Biz released the list of recommended eligible census tracts, to which on only Census Tract 06065044916 was identified from the entire list of eligible tracts in 1 1

Cathedral City. Due to continued interest for development of the eligible census tracts, staff desires to advocate for the proposed track and others in the city that would support both commercial and residential development.

DISCUSSION:

Opportunity Zones are a federal capital gains tax incentive that is overseen jointly by the U.S. Department of Treasury and the Internal Revenue Service (IRS). In California, the Governor’s Office of Business and Economic Development (GO-Biz) partners with the California Department of Finance (DOF) to nominate and recommend eligible census tracts to the Governor, who has final authority to submit official state nominations to the U.S.

Department of Treasury.

The designation is utilized to mobilize long-term private investment in low-income communities. Unlike traditional community development programs, OZs are uncapped, investor-driven, and by right. A taxpayer with a capital gain — individuals, corporations, institutions — may be eligible to invest in a designated census tract and receive preferential tax treatment without applying for federal approval. The OZ incentive operates through Qualified Opportunity Funds (QOFs), which pool investor capital and deploy it into eligible investments (i.e. qualifying activities) within designated census tracts.

Opportunity Zones are intended to stimulate private-sector investment in communities that have historically experienced economic challenges while encouraging long-term capital investment, business growth, housing development, and job creation.

The Opportunity Zone Program was originally scheduled to sunset on December 31, 2026.

With the passage of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, the program is now a permanent part of the federal tax code. As part of this legislation, a new round of Opportunity Zone census tract designations—referred to as “Opportunity Zones 2.0”—will be introduced.

Governors may designate up to 25 percent of their state’s eligible census tracts. However, the OBBBA establishes more stringent eligibility requirements for future designations.

To qualify, a census tract must satisfy one of the following tests:
Median family income (MFI) below 70 percent of the metropolitan average or the statewide average (for non-metro areas) (versus 80 percent in the original OZ provision).
Poverty rate of 20 percent or greater (unchanged), plus a newly established MFI cap set at 125 percent of the applicable state or metro median. The MFI cap closes a statistical loophole that allowed a small number of high-income census tracts to qualify for OZ status.

As of July 29, 2026, the O.Z. 2.0 Novogradac map (Exhibit 1) identified seven (7) eligible census tracts in Cathedral City. On August 3, 2026, GO-Biz released the draft of “recommended” eligible Census Tracts, which only included one of the seven eligible tracts in Cathedral City, Census Tract 06065044916. Advocacy for the inclusion of all seven census tracts is crucial for the city as each area could benefit from future development investments. In recent talks with developers, including those focused on affordable housing, O.Z. 2.0 could be a beneficial tool used to help realized community benefits including those related to affordable housing, ultimately helping with the capital formation needed for the project’s pro-forma.
2 2

Designation of these eligible census tracts would provide Cathedral City with an additional economic development tool that complements existing local, regional, state, and federal initiatives. Opportunity Zone designation does not provide direct funding to local governments, rather it creates a framework that encourages private capital investment into qualified projects and businesses located within designated areas.

Opportunity Zones encourage investment by providing a series of capital gains tax incentives for qualifying activities in designated areas:
Deferral: Investors may defer taxes on capital gains that are reinvested in a QOF for up to five years.
Basis step-up: After the five-year deferral, QOF investors receive a 10 percent reduction (step-up in basis) on their deferred capital gains tax liability (or 30 percent for investments in rural-specific QOFs).
Tax-free growth: Gains earned on investments in QOFs held for at least 10 years are permanently exempt from federal capital gains tax.

Opportunity Zones are unlike the traditional model of community development tax incentives, in which federal awards (e.g., grants or tax credits) are allocated and approved for specific projects by a federal authority. For communities, OZ designation does not guarantee investment, private investors must still find investment opportunities to deploy capital.

Selected zones have the potential to unlock capital at scale for places that truly need it.

Potential community benefits from the O.Z. 2.0 incentive include:
Increased private investment in commercial and mixed-use development Expanded opportunities for affordable and workforce housing Revitalization of aging commercial corridors
Redevelopment of underutilized or vacant properties
Support for small business growth and entrepreneurship Attraction of new employers and employment opportunities Increased investment in neighborhood-serving retail and services Enhanced economic resilience and long-term tax base growth FISCAL IMPACT:

There is no fiscal impact for the City.

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 associate with vacant and underutilized properties and non-compliant commercial strips and centers.

ATTACHMENTS:

1.Exhibit 1. - O.Z. 2.0 Maps
3 3

1 Exhibit 1 – O.Z. 2.0 Maps
Cathedral City O.Z. 2.0 Eligible Census Tracts

4 4

2 5
5 3

6 6

4 7
7 5

8 8

6 9
9 7

10 10

8 11
11 9

Coachella Valley O.Z. 2.0 Eligible Census Tracts

12 12

Staff Report
City Council
Item No. 5.A
Meeting Date: August 12, 2026
From: Asusena H. Soren, Human Resources Manager
Title: Approve a Professional Services Agreement with Gallagher Benefit Services, Inc. to conduct a Citywide Classification and Compensation Study
RECOMMENDATION:

To approve a professional services agreement with Gallagher Benefit Services, Inc. for classification and services and authorize the City Manager to execute the services agreement.

BACKGROUND:

Employees are the City's most valuable resource in delivering quality public services to the community. Maintaining an effective classification and compensation system is critical to attracting, retaining, and developing a highly qualified workforce.

Over time, organizational needs, technology, regulations, and service delivery expectations have evolved, resulting in changes to employee duties and responsibilities. Additionally, the public sector labor market has become increasingly competitive, making it more difficult to recruit and retain qualified employees. The City’s current classification and compensation structure has not undergone a comprehensive citywide review. As the labor market continues to evolve and recruitment and retention challenges persist throughout local government, it is important to ensure the City’s classification system accurately reflects employee duties and responsibilities while maintaining a compensation program that is equitable, competitive, fiscally responsible, and legally defensible.

Recognizing these challenges, the City issued a Request for Proposal (RFP) seeking qualified consulting firms to conduct a first ever comprehensive Citywide Classification and Compensation Study. The RFP garnered ten (10) responses, and of those three (3) were considered. Gallagher was selected as the most qualified to meet the City’s needs.

Gallagher will provide an independent evaluation of the City's classification and compensation system and recommend improvements based on industry best practices. The study is expected to include, but is not limited to, the following:
Review and analyze of all current classification specifications. 1 1

Conduct position analysis through questionnaires and employee interviews. Evaluate essential duties and responsibilities.
Review the City's organizational structure.
Internal equity analysis.
External market compensation survey using comparable public agencies. Review of salary structures and pay ranges.
Review the City’s fringe benefits program, including health and welfare benefits, retirement benefits, leave programs, and other employer-provided benefits, and comparison of those benefits with comparable public agencies to assess overall market competitiveness. Review premium pays, incentives, specialty pays, and other compensation practices, as appropriate.
Identify salary compression, internal equity, and compensation alignment issues. Recommendations for classification revisions.
Recommendations for salary adjustments, salary schedules, and implementation strategies. Develop cost estimates for implementation.
Present findings to the Human Resources Manager.

DISCUSSION:

For the three proposals evaluated of the ten (10) proposals received from qualified consulting firms with demonstrated experience conducting classification and compensation studies for California public agencies, the evaluation scores are provided below:

RFP Respondent Average Score
Gallagher Benefit Services, Inc. 94.87
Transforming Consulting 70.50
CPS HR Consulting 70.92
Following an evaluation of qualifications, experience, project approach, references, and cost, staff recommends awarding the contract to Gallagher.

Gallagher was selected based on several factors, including:
More than 40 years experience performing classification and compensation studies for California municipalities.
Knowledge of California labor laws and public sector compensation practices. Proven methodology emphasizing employee participation, transparency, and defensible classification analyses.
Ability to complete the project within the City's desired timeline.

Gallagher is a full-spectrum, public-sector human resources services firm. They have been assisting cities, counties, special districts, joint powers associations, courts, educational institutions, and other public agencies with their human resources needs for over 40 years and have offices throughout California, the Western Region, as well as across the nation.

The study will involve significant collaboration among employees, supervisors, department directors, and executive management as well as recognized employee organizations throughout the process.

Gallagher Benefit Services, Inc. will conduct interviews, review position questionnaires, 2 2

analyze organizational relationships, evaluate compensation data from comparable agencies, and develop recommendations supported by objective analysis.

The recommendations resulting from the study will assist the City in:
Improving recruitment and retention,
Ensuring classifications accurately reflect current work performed Promoting internal equity,
Maintaining external market competitiveness,
Supporting succession planning,
Enhancing organizational efficiency,
Reducing potential classification and compensation disputes, and Providing a legally defensible compensation system.

Implementation of any recommended salary adjustments or classification changes will return to the City Council for future consideration during the budget process or through separate Council action, as applicable. Approval of this agreement does not obligate the City Council to implement any future recommendations.

FISCAL IMPACT:

DESCRIPTION GENERAL
LEDGER

ACCOUNT
CODES

PROJECT
CODE
AMOUNT ONE TIME or

ONGOING
2026-2027
Classification and
Compensation
Study
100-100-130-
132-8600-8602 N/A 200,000 ONE TIME
FIVE-YEAR STRATEGIC PLAN:

Goal A – SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
Objective: Through diversity, equity, and inclusion-driven employee programs and experiences, Cathedral City is the employer of choice with a workforce that is engaged, motivated, and respected public stewards.

ATTACHMENTS:

1. Professional Services Agreement

2. Proposal

3. Score Sheet
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AGREEMENT FOR SERVICES

BETWEEN

THE CITY OF CATHEDRAL CITY, CALIFORNIA
AND
GALLAGHER BENEFIT SERVICES, INC.

This Agreement for Services (“Agreement”) is entered into as of this 1 st day of August, 2026)(“Effective Date”) by and between the City of Cathedral City, a municipal corporation (“City”), organized under the laws of the State of California, with its principal place of business at 68700 Avenida Lalo Guerrero, Cathedral City, California, 92234 and Gallagher Benefit Services, a Corporation, with its principal place of business at 2121 N.

California Boulevard, Suite 350, Walnut Creek, CA 94596 (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS

A. City has sought, by request for proposals, the performance of the services defined and described particularly in Section 2 of this Agreement.

B. Contractor, following submission of a proposal, for the performance of the services defined and described particularly in Section 2 of this Agreement, was selected by the City to perform those services.

C. Contractor represents that it is experienced in providing classification and compensation study services to public clients, is licensed in the State of California , and is familiar with the plans of City.

D. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in Section 2 of this Agreement and desire that the terms of that performance be as particularly defined and described herein.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties contained here and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

SECTION 1. TERM OF AGREEMENT.

The Term of this Agreement is 18 months, commencing on the August 1, 2026 unless earlier terminated as provided in Section 20 “Termination of Agreement”.

Contractor shall complete the Services within the Term of this Agreement and shall meet any other established schedules and deadlines.

SECTION 2. SCOPE OF SERVICES & SCHEDULE OF PERFORMANCE.

Contractor agrees to perform the services set forth in Exhibit “A” “Scope of 4 4

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Services” (hereinafter, the “Services”) and made a part of this Agreement by this reference. The Services shall be completed pursuant to the schedule specified in Exhibit “A.” Should the Services not be completed pursuant to that schedule, the Contractor shall be deemed to be in Default of this Agreement. The City, in its sole discretion, may choose not to enforce the Default provisions of this Agreement and may instead allow Contractor to continue performing the Services.

SECTION 3. ADDITIONAL SERVICES.

Contractor shall not be compensated for any work rendered in connection with its performance of this Agreement that are in addition to or outside of the Services unless such additional services are authorized by City in advance and in writing in accordance with Section 26 “Administration and Implementation” or Section 28 “Amendment” of this Agreement. If and when such additional work is authorized, such additional work shall be deemed to be part of the Services.

SECTION 4. COMPENSATION AND METHOD OF PAYMENT.
(a) Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the amounts specified in Exhibit “B” “Compensation” and made a part of this Agreement by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed two hundre d thousand dollars ($200,000), unless additional compensation is approved in writing in accordance with Section 26 “Administration and Implementation” or Section 28 “Amendment” of this Agreement. (b) Each month Contractor shall furnish to the City an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and subcontractor contracts. Subcontractor charges shall be detailed by the following categories: labor, travel, materials, equipment and supplies. If the compensation set forth in subsection (a) and Exhibit “B” include payment of labor on an hourly basis (as opposed to labor and materials being paid as a lump sum), the labor category in each invoice shall include detailed descriptions of task performed and the amount of time incurred for or allocated to that task. City shall independently review each invoice submitted by the Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. In the event that no charges or expenses are disputed, the invoice shall be approved and paid according to the terms set forth in subsection (c). In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor for correction and resubmission.
(c) Except as to any charges for work performed or expenses incurred by Contractor which are disputed by City, City will use its best efforts to cause Contractor to be paid within thirty (30) days of receipt of Contractor’s correct and undisputed invoice. (d) Payment to Contractor for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor. 5 5

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SECTION 5. INSPECTION AND FINAL ACCEPTANCE.

City may inspect and accept or reject any of Contractor’s work under this Agreement, either during performance or when completed. City shall reject or accept Contractor’s work within thirty (30) days after the work is submitted to City by Contractor.

City shall reject work within the time designated above and include y a written explanation as to why the work was rejected . City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as amount to fraud.

Acceptance of any of Contractor’s work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Section 16 “Indemnification” and Section 17 “Insurance.”
SECTION 6. OWNERSHIP OF DOCUMENTS AND MATERIALS; EXCEPTIONS; WARRANTY.
(a) Documents and Data . All specifications, original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents prepared, developed or discovered by Contractor in the course of providing the Services pursuant to this Agreement (“documents and materials”) shall become the sole property of City and may be used, reused or otherwise disposed of by City without the permission of the Contractor. Upon completion, expiration or termination of this Agreement, Contractor shall turn over to City all such documents and materials.

Notwithstanding th e foregoing, Contractor may retain copies of its work product for archival purposes or to defend its work product, and in accordance with legal disaster recovery and records retention requirements, store such copies and derivative works in an archival format (e.g., tape backups).
(b) If and to the extent that City utilizes for any purpose not related to this Agreement any documents and materials pursuant to this Agreement, Contractor’s guarantees and warranties in Section 9 “Standard of Performance” of this Agr eement shall not extend to such use of the documents and materials. (c) All final work product developed by Contractor in the course of providing the Services pursuant to this Agreement shall become the sole property of City and may be used, reused or otherwise disposed of by City without the permission of the Contractor. Upon completion, expiration or termination of this Agreement, Contractor shall turn over to City all such final work product if paid for by the City. This provision specifically excludes Contractors’ work notes and drafts, which are owned by Contractor, not City.
(d) Contractor warrants that all work product submitted to City pursuant to this Agreement constitutes original work except as otherwise provided in this paragraph .

Specifically, Contractor understands and agrees that use of artificial intelligence (AI) tools including, without limitation, ChatGPT, Microsoft’s Bing Chat, Google’s Bard, and Meta’s LLAMA (Large Language Model Meta AI), in the performance of this Agreement does not constitute an original work, i.e., submitting work product generated by such AI tools to City and representing it as Contractor’s original work constitutes a material breach of this Agreement, constitutes a false claim, and may also violate applicable intellectual property right laws including, without limitation, United States Copyright Law. Accordingly, and notwithstanding any other provision of this Agreement as to ownership, City specifically 6 6

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rejects ownership of work product violating this paragraph. Notwithstanding the foregoing, Contractor’s use of AI tool for the purpose of performing research and searches, drafting basic letters and routine communications, and initial outlining of the work product, shall not be considered to be a violation of this paragraph.

SECTION 7. CONTRACTOR'S BOOKS AND RECORDS.
(a) Contractor shall maintain any and all documents and records demonstrating or relating to Contractor’s performance of the Services. Contractor shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, or other documents or records evidencing or relating to the Services, including expenditu res and disbursements charged to City pursuant to this Agreement. Any and all such documents or records shall be maintained in accordance with generally accepted accounting principles and shall be sufficiently complete and detailed so as to permit an accurate evaluation of the services provided by Contractor pursuant to this Agreement. Any and all such documents or records shall be maintained for three (3) years from the date of execution of this Agreement and to the extent required by laws relating to audits of public agencies and their expenditures. In accordance with California Government Code Section 8546.7, if the total compensation in Section 4 exceeds ten thousand dollars ($10,000.00), this Agreement and the Contractor's books and records related to this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of three (3) years after final payment under the Agreement.
(b) Any and all records or documents required to be maintained pursuant to this section shall be made available for inspection, audit and copying, at any time during regular business hours, upon request by City or its designated representative. Copies of such documents or records shall be provided directly to the City for inspection, audit and copying when it is practical to do so; otherwise, unless an alternative is mutually agreed upon, such documents and records shall be made available at Contractor’s address indicated for receipt of notices in this Agreement.
(c) Where City has reason to believe that any of the documents or records required to be maintained pursuant to this section may be lost or discarded due to dissolution or termination of Contractor’s business, City may, by written reque st, require that custody of such documents or records be given to the City. Access to such documents and records shall be granted to City, as well as to its successors -in-interest and authorized representatives.

SECTION 8. INDEPENDENT CONTRACTOR.
(a) Contractor is and shall at all times remain a wholly independent contractor and not an officer, employee or agent of City. Contractor shall have no authority to bind City in any manner, nor to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise.
(b) The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall have control over the conduct of Contractor or any of Contractor’s personnel. 7 7

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Contractor shall not at any time or in any manner represent that Contractor or any of Contractor’s personnel are in any manner officials, officers, or employees of City. (c) Neither Contractor, nor any of Contractor’s personnel shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Contractor expressly waives any claim Contractor, its officers, employees, agents or subcontractors, may have to any such rights. Contractor, its officers, employees, agents, and/or subcontractors are not considered employees of City. City shall not be deemed a “joint employer” under the National Labor Relations Board or any other overseeing state-level agency with respect to employment of persons. Further, both Contractor and City shall be deemed independent contractors in the performance and consumption of Services hereunder.

SECTION 9. STANDARD OF PERFORMANCE.
(a) Contractor represents and warrants that it has the qualifications, experience and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent and professional manner. Contractor shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all Services. In meeting its obligations under this Agreement, Contractor shall employ, at a minimum, generally accepted standards and prac tices utilized by persons engaged in providing services similar to the Services required of Contractor under this Agreement. In addition to the general standards of performance set forth this section, additional specific standards of performance and performance criteria may be set forth in Exhibit “A” “Scope of Work” that shall also be applicable to Contractor’s work under this Agreement. Where there is a conflict between a general and a specific standard of performance or performance criteria, the specific standard or criteria shall prevail over the general. (b) Contractor warrants that (1) it has thoroughly investigated and considered the work to be performed, (2) it has investigated the issues, regarding the scope of services to be provided, (3) it has carefully considered how the work should be performed, and (4) it understands, to the best of its knowledge, the facilities, difficulties and restrictions attending performance of the work under this Agreement. (c) Contractor shall perform, at its own cost a nd expense and without reimbursement from the City, any services necessary to correct material errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein. Contractor shall at all times enforce strict discipline and good order among its employees. Any employee who is determined by the City to be uncooperative, incompetent, a threat to the safety of persons or the Services, or any employee who fails or refuses to perform the Services in a manner a cceptable to the City, shall be promptly removed from the Services to be performed by the Contractor and shall not be re - employed on the Services.

SECTION 10. COMPLIANCE WITH APPLICABLE LAWS; PERMITS AND LICENSES.

Contractor shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules in effect during the Term of this Agreement. Contractor shall obtain any and all licenses, permits and authorizations necessary to perform the Services set forth in this Agreement and such licenses, permits and approvals shall be maintained throughout the Term of this 8 8

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Agreement. Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall be liable, at law or in equity, as a result of any failure of Contractor to comply with this section.

SECTION 11. PREVAILING WAGE LAWS
Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects.

It is the understanding of City and Contractor that the Prevailing Wage Laws may not apply to this Agreement because the Agreement does not involve any services subject to prevailing wage rates pursuant to the California Labor Code or regulations promulgated thereunder: Construction, alteration, demolition, installation, or repair work performed on public buildings, facilities, streets or sewers done under contract and paid for in whole or in part out of public funds. In this context, “construction” includes work performed during the design and preconstruction phases of construction including, but not limited to, inspection and land surveying work.

SECTION 12. NONDISCRIMINATION.

Contractor shall not discriminate, in any way, against any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status in connection with or related to the performance of this Agreement.

SECTION 13. UNAUTHORIZED ALIENS.

Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the performance of the Services, and should the any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City.

SECTION 14. CONFLICTS OF INTEREST.
(a) Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of the Services. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the City Manager. Contractor 9 9

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agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. (b) City understands and acknowledges that Contractor is, as of the date of execution of this Agreement, independently involved in the performance of non -related services for other governmental agencies and private parties. Contractor is unaware of any stated position of City relative to such projects. Any future position of City on such projects shall not be considered a conflict of interest for purposes of this section. (c) City understands and acknowledges that Contractor will perform non - related services for other governmental agencies and private Parties following the completion of the Se rvices under this Agreement. Any such future service shall not be considered a conflict of interest for purposes of this section. (d) City may determine that Contractor must disclose its financial interests by completing and filing a Fair Political Practices C ommission Form 700, Statement of Economic Interests. If such a determination is made, Contractor shall file the subject Form 700 with the City Clerk’s Office pursuant to the written instructions provided by the Office of the City Clerk within ten (10) days of the request.

SECTION 15. CONFIDENTIAL INFORMATION; RELEASE OF INFORMATION. (a) All information gained or work product produced by Contractor in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the City Manager, except as may be required by law. Contractor sha ll not use City’s name or insignia, photographs, or any publicity pertaining to the Services in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. (b) Contractor, its officers , employees, agents or subcontractors, shall not, without prior written authorization from the City Manager or unless requested by the City Attorney of the City, voluntarily provide declarations, letters of support, testimony at depositions, response to in terrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Contractor gives City notice of such court order or subpoena.

Contractor shall promptl y notify City should Contractor, its officers, employees, agents or subcontractors, be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and 10 10

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the work performed thereunder. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. Contractor shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made in confidence to a Federal, State, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law or for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

SECTION 16. INDEMNIFICATION.
(a) Indemnification for Professional Liability. Where the law establishes a professional standard of care for Contractor’s services, to the fullest extent permitted by law, Contractor shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees, volunteers and agents (“Indemnified Parties”) from and against any and all liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorneys’ fees and costs, court costs, interest, defense costs, and expert witness fees) that arise out of, are a consequence of, or are in any way attributable to, in whole or in part, any gross negligent act or willful misconduct of Contractor, or by any individual or entity for which Contractor is legally liable , including but not limited to officers, agents, employees or subcontractors of Contractor, in the perfor mance of professional services under this Agreement.

Notwithstanding the foregoing, to the extent that the Contractor’s services are subject to California Civil Code Section 2782.8, the above indemnity, including the cost to defend, shall be limited to the extent required by Civil Code Section 2782.8. (b) [intentionally deleted].
(c) Indemnification from Subcontractors. Contractor agrees to obtain executed indemnity agreements with provisions identical to those set forth in this section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Agreement naming the Indemnified Parties as additional indemnitees. In the event Contractor fails to obtain such indemnity obligations from others as required herein, Contractor agrees to be fully responsible according to the 11 11

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terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth herein is binding on the successors, assigns or heirs of Contractor and shall survive the termination of this Agreement or this section.
(d) City’s Negligence . The provisions of this section do not apply to claims occurring as a result of City’s sole negligence. The provisions of this section shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officials, employees and agents.

SECTION 17. INSURANCE.

Contractor agrees to obtain and maintain in full force and effect during the Term of this Agreement the insurance policies set forth in Exhibit “C” “Insurance” and made a part of this Agreement. All insurance policies shall be subject to approval by City as to form and content. These requirements are subject to amendment or waiver if so approved in writing by the City Manager.

SECTION 18. ASSIGNMENT.

The expertise and experience of Contractor are material considerations for this Agreement. City has an interest in the qualifications and capability of the persons and entities who will fulfill the duties and obligations imposed upon Contractor under this Agreement. In recognition of that interest, Contractor shall not assign or transfer this Agreement or any portion of this Agreement or the performance of any of Contractor’s duties or obligations under this Agreement without the prior written consent of the City.

Any attempted assignment shall be ineffective, null and void, and shall constitute a material breach of this Agreement entitling City to any and all remedies at law or in equity, including termination of this Agreement pursuant to Section 20 “Termination of Agreement.” City acknowledges, however, that Contractor, in the performance of its duties pursuant to this Agreement, may utilize subcontractors.

SECTION 19. CONTINUITY OF PERSONNEL.

Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the Services. Contractor shall notify City within a reasonable amount of time of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the Services prior to and during any such performance. If City does not agree to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause.

SECTION 20. TERMINATION OF AGREEMENT.
(a) City may terminate this Agreement , with or without cause, at any time by giving thirty (30) days written notice of termination to Contractor. In the event such notice is given, Contractor shall cease immediately all work in progress. 12 12

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(b) If either Contractor or City fail to perform any material obligation under this Agreement, then, in addition to any other remedies, either Contractor, or City may terminate this Agreement immediately upon written notice. (c) Upon termination of this Agreement by either Contractor or City, all property belonging exclusively to City which is in Contractor’s possession shall be returned to City.

Contractor shall furnish to City a final invoice for work performed and expenses incurred by Contractor, prepared as set forth in Section 4 “Compensation and Method of Payment” of this Agreement. This final invoice shall be reviewed and paid in the same manner as set forth in Section 4 “Compensation and Method of Payment” of this Agreement.

SECTION 21. DEFAULT.

In the event that Contractor is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Contractor for any work performed after the date of default. Instead, the City will give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended if circumstances warrant, however, the timeframe may also be shortened if the default results in a safety issue or imminent threat to City employees or the public in the sole discretion of the City. During the period of time that Contractor is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, the City may take necessary steps to terminate this Agreement under Section 20 “Termination of Agreement.” Any failure on the part of the City to give notice of the Contractor’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement SECTION 22. EXCUSABLE DELAYS.

Contractor shall not be liable for damages, including liquidated damages, if any, caused by delay in performance or failure to perform due to causes beyond the control of Contractor. Such causes include, but are not limited to, acts of God, acts of the public enemy, acts of federal, state or local governments, acts of City, court orders, fires, floods, epidemics, strikes, embargoes, and unusually severe weather. The term and price of this Agreement shall be equitably adjusted for any delays due to such causes.

SECTION 23. COOPERATION BY CITY.

All public information, data, reports, records, and maps as are existing and available to City as public records, and which are necessary for carrying out the Services shall be furnished to Contractor in every reasonable way to facilitate, without undue delay, the Services to be performed under this Agreement.
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SECTION 24. NOTICES.

All notices required or permitted to be given under this Agreement shall be in writing and shall be p ersonally delivered, or sent by certified mail, postage prepaid and return receipt requested, addressed as follows:

To City: City of Cathedral City
Attn: Asusena (Suzie) Soren
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
Email: [email protected]
To Contractor: Gallagher Benefit Services, Inc.
2121 N. California Boulevard, Suite 350
Walnut Creek, CA 94596
ATTN: Georg S. Krammer, Managing Director
Email: [email protected]
Notice may also be sent by email. Notice shall be deemed effective on the date personally delivered or, if mailed, three (3) days after deposit of the same in the custody of the United States Postal Service. If sent by email, notice shall be deemed effective on the date sent. Notice sent by email must be confirmed within forty -eight (48) hours by letter mailed or delivered. Other forms of electronic transmission such as text messages and instant messages are not acceptable manners of notice required hereunder.

SECTION 25. AUTHORITY TO EXECUTE.

Each of the signatories hereto represents and warrants that he or she is competent and authorized to enter into this Agreement on behalf of the Party for whom he or she purports to sign. Each Party hereto agrees to defend, indemnify, and hold harmless the other Parties hereto against all claims, suits, actions, and demands, including necessary expenses of investigation and reasonable attorneys' fees and costs, arising out of claims that its signatory was not competent or so authorized to execute this Agreement.

SECTION 26. ADMINISTRATION AND IMPLEMENTATION.

This Agreement shall be administered and executed by the City Manager or designated representative. The City Manager shall have the authority to issue interpretations and to make amendments to this Agreement, including amendments that commit additional funds, consistent with Section 28 “Amendment” and the City Manager’s contracting authority under the City of Cathedral City Municipal Code and its adopted policies and procedures.

SECTION 27. BINDING EFFECT.

This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.
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SECTION 28. AMENDMENT.

No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Contractor and by the City. The City Manager shall have the authority to approve any amendment to this Agreement if it does not exceed the amount that may be approved administratively pursuant to the City Municipal Code. The Parties agree that the requirement for written modifications cannot be waived and that any attempted waiver shall be void. The City Manager may, but is not required to, make minor amendments not affecting substantive terms without further authorization from the City Council. The City Council hereby authorizes the City Manager to execute any such amendments as required by this Agreement or that do not otherwise reduce City’s rights under this Agreement. All other amendments shall be approved by the City Council.

SECTION 29. WAIVER.

Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision nor a waiver of any subsequent breach or violation of any provision of this Agreeme nt. Acceptance by City of any work by Contractor shall not constitute a waiver of any of the provisions of this Agreement.

SECTION 30. LAW TO GOVERN; VENUE.

This Agreement shall be interpreted, construed and governed according to the laws of the State of C alifornia. In the event of litigation between the Parties, venue in state trial courts shall lie exclusively in the County of Riverside, California. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Riverside.

SECTION 31. ATTORNEYS FEES, COSTS AND EXPENSES.

In the event litigation or other proceeding is required to enforce or interpret any provision of this Agreement, the prevailing Party in such litigation or other proceeding shall be entitled to an award of reasonable attorney's fees, costs and expenses, in addition to any other relief to which it may be entitled.

SECTION 32. ENTIRE AGREEMENT.

This Agreement, including the attached Exhibits "A" through "C", is the entire, complete, fi nal and exclusive expression of the Parties with respect to the matters addressed therein and supersedes all other agreements or understandings, whether oral or written, or entered into between Contractor and City prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid and binding.

SECTION 33. SEVERABILITY.

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any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and the Agreement shall be read and construed without the invalid, void or unenforceable provision(s).

SECTION 34. ELECTRONIC SIGNATURE
The Parties agree that, in accordance with the City’s Electronic Signature Use Policy, adopted on August 10, 2023, and as amended thereafter, the Parties may use electronic signatures to execute this Ag reement. Any use of electronic signatures to execute this Agreement shall comply with the City’s Electronic Signature Use Policy, and such signatures shall have the same force and effect as if this Agreement were executed by hand. Contractor acknowledges that it has had an opportunity to request and review the City’s Electronic Signature Use Policy, and Contractor agrees to comply with the Electronic Signature Use Policy. Contractor agrees to indemnify, defend, and hold the City harmless from any claim, da mage, or liability associated with transmitting an electronic signature or an electronically signed record by electronic transmission.

SECTION 35. CONFLICTING TERMS.

Except as otherwise stated herein, if the terms of this Agreement conflict with the terms of any Exhibit hereto, or with the terms of any document incorporated by reference into this Agreement, the terms of this Agreement shall control.

SECTION 36. DATA PROTECTION.
a) Contractor shall protect, using secure means and technology that is commercially available, City-provided data or consumer -provided data acquired in the course and scope of this Agreement, including but not limited to customer lists and customer credit card or consumer data, (collectively, the “City Data”). Contractor shall notify Cit y in writing as soon as reasonably feasible , of Contractor’s discovery or reasonable belief of any unauthorized access of City Data (a “Data Breach”), or of any incident affecting, or potentially affecting City Data related to cyber security (a “Security Incident”), including, but not limited to, denial of service attack, and system outage, instability or degradation due to computer malware or virus. Contractor shall begin remediation as soon as reasonably feasible. Contractor shall provide daily updates, or more frequently if requested by City, regarding findings and actions performed by Contractor until the Data Breach or Security Incident has been effectively resolved to City’s reasonable satisfaction. Contractor shall conduct an investigation of the Data Breach or Security Incident and shall share the report of the investigation with City. At City’s sole discretion, City and its authorized agents shall have the right to participate in the investigation . Contractor shall cooperate fully with City, its agents and law enforcement.
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SECTION 37. LIMITATION OF LIABILITY
Cap on Liability. The sole liability of Contractor and any of its affiliates (whether in contract, tort, negligence, strict liability in tort, by statute or otherwise) for any and all claims in any manner related to this Agreement, including the Deliverables or Services, will be the payment of direct damages, not to exceed (in the aggregate) the fees received by Contractor within the previous twelve (12) months of the alleged incident with respect to the services or deliverables involved under the applicable SOW.

Disclaimer of Indirect Damages. In no event will either Party be liable for any consequential, incidental, indirect, special or punitive damage, loss or expenses (including, but not limited to, business interruption, reputational damages, lost business, lost profits or lost savings) even if it has been advised of their possible existence.

Limitation of Actions. No claim or cause of action, regardless of form (tort, contract, statutory, or otherwise), arising out of, relating to or in any way connected with this Agreement or any Services provided hereunder may be brought by either Party any later than two (2) years after the accrual of such claim or cause of action.

SECTION 39. SAM.GOV CHECK.

This Agreement is governed by 2 CFR 200 Appendix II (H) of the Contract Provisions for Non -Federal Contracts Under Federal Awards: “Debarment and Suspension (Executive Orders 12 549 and 12689) —A contract award (see 2 CFR 180.220) must not be made to parties listed on the governmentwide exc lusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549.”
Failure to maintain consistent assignment of Designated Personnel approved for access to City facilities may be deemed a material breach of this Agreement.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.
[SIGNATURES ON FOLLOWING PAGE]
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CITY OF CATHEDRAL CITY

Andrew Firestine
City Manager

ATTEST:

Christina Burton
City Clerk

APPROVED AS TO FORM

Eric S. Vail
City Attorney

[CONTRACTOR NAME]

Georg S. Krammer
Managing Director
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EXHIBIT "A"

SCOPE OF SERVICES
Consultant will conduct an extensive, thorough review and have a clear understanding of all substantive materials consisting of policies and procedures, existing classifications and descriptions, organizational charts, memoranda of understanding, budgets, salary schedules, and other pertinent information. Working collaboratively with the City and its stakeholders, orientation and briefing sessions will be conducted to educate and explain the scope of the study and establish reasonable expectations and goals as a result thereof. The Consultant will effectively maintain control and objectivity while conducting conferences with all levels of management and staff, bargaining units and other stakeholders to receive and discuss specific concerns to the development of classification and compensation re commendations and the establishment of study plans and timetables.

Effective ongoing communication throughout the duration of the project will be provided by the Consultant while developing a classification and compensation structure that is non-discriminatory, meets all legal requirements (FLSA; ADA compliant), operational needs, and allows for organizational change and growth. At a minimum, a bi -weekly update report will be provided to the Human Resources Manager on the status and progress of the study. The consultant will provide training and documentation for staff consisting of the analysis and methodologies from the study that will be integrated, maintained, and administered by the City with continued support from the Consultant to defend any recommended changes after initial implementation.

The City expects the consultant to complete both phase 1 and phase 2 for safety labor units (CCPOA, CCPMA, CCFA) prior to other labor units. Once deliverables of phase 1 and 2 for safety labor units ha ve been presented to Human Resources (HR) Manager, the consultant can begin phase 1 and 2 for the remaining labor unit and non-represented staff.

Phase I: Classification Objectives
The Classification phase of the study will encompass a full review and ana lysis of the City’s classification system and each position’s description and structure. The review will consist of:
 Comprehensive job analysis (desk/job Audits) and evaluation;  Review of existing relevant documentation;
 Interviews with Management and Bargaining Units in the development of questionnaires;
 Completion of a comprehensive questionnaire by all employees;  Interviews with employees in a single position classification and a representative sample of employees in multiple position classifications;  Analysis of each position’s duties and responsibilities; and 19 19

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Analysis of existing positions and working situations. Where appropriate and applicable, the consultant will recommend each position to an appropriate job title and classification, or if warranted, a job title change and reclassification as an exempt or non-exempt designation pursuant to the Fair Labor Standards Act (FLSA). The new classification structure will create new, eliminate outdated, and consolidate other classifications assigned to similar functional areas and job families while fostering growth and flexibility in providing adequate career paths/ladders and job families.

The classification specifications will include, but not be limited to, the following items:

 Definition of the job classification;
 A complete description of the essential job functions;  Requirements of education, experience, knowledge, skills and abilities;  Supervision exercised and received with definition of lead or supervisory roles;  Working environment and/or conditions;
 Licenses, certifications, driving requirements and physical requirements in compliance with the Americans with Disabilities Act (ADA); and  Appropriate exempt and non-exempt designation under the Fair Labor Standards Act (FLSA).

The new classification system will ensure a unified philosophy and standardization across all classifications that will be clearly understood by all levels of personnel. The consultant will ensure that sufficient documentation is provided to designated HR staff throughout the study, on all classification concepts and distinguishing characteristics, as well as the delivery of the final reports and recommendations to guide the City in implementing, managing, and maintaining the classification system. The final product of Phase I will result in new, revised, or reviewed job descriptions for each job classification to be presented to the HR Manager in an approved standardized Microsoft Word format.

Phase II: Compensation Objectives
Consulting with designated HR staff, the Consultant will identify the survey labor market with comparator municipalities, special districts, and benchmark classifications to provide an accurate assessment of how the City’s benefit and compensation plan compares. The compensation phase of the study will consist of collecting accurate salary and benefit data to include not only job titles, but also duties and responsibilities based upon the classification specifications from the City and will ensure that the information is analyzed in a manner that is clear and comprehensible to the City’s Stakeholders. The Consultant’s assessment and evaluation will provide a comprehensive analysis for implementation, ongoing changes and recommendations for adjustments that will enrich the attraction and retention of qualified individuals, as well as enhance opportunities for growth and professional development.
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The Consultant will complete an internal salary relationship analysis, including the development of appropriate internal relationship guidelines and develop external competitive and internal equitable salary recommendations for each classification included within the study. A salary range will be assigned to each classification that reflects the results of the market survey and the analysis of internal relationships. A thorough analyzation will be conducted of the scope, level of duties and responsibilities, requirements for successful work performance, and other factors for survey classes according to generally accepted compensation practices. The Consultant will analyze the financial impact of pay equity issues and compa ction, develop solutions to such issues, and create a market adjustment implementation strategy supportive of the City’s goals, objectives, and budget considerations.

The City wishes to include indirect compensation as part of the total compensation package presented to all City employees. The consultant will evaluate benefit offerings in the comparative labor markets and make recommendations for better alignment and/or different benefit offerings as indicated by the analysis and best practices. As a result, the indirect compensation benefits will be calculated and provided as an extra component of the base salary. Benefits to survey will include, but not be limited to:
 Retirement
 Defined benefit and defined contribution plans
 Formulas
 Final compensation
 Cost-sharing arrangements, etc.
 Retiree
 Medical
 Dental, Vision
 Active employees
 Medical
 Dental
 Vision
 Drug prescription programs
 Cost-sharing arrangements for each type of benefit, coinsurance, copayments, deductibles, out-of-pocket and lifetime maximums  Life Insurance and AD&D
 Supplemental Long and Short Term Disability
 EAP, Flexible Spending Accounts, HRA’s, etc.
 Paid Leave entitlements
 Vacation
 Holidays
 Personal
 Sick
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A-
19 4905-7795-0839 v1
 Administrative
 Alternative Work Schedules
 Cash in Lieu
 Wellness Program
 Auto allowance
 Compensation or extra incentive pay for certifications and for which classifications  Tuition reimbursement and Training and development
 Any additional benefits such as laptops, cell phones, etc.

The consultant will create and submit to the HR Manager a comprehensive final report summarizing the compensation study approach and methodology, analytical tools, findings, and recommended compensation structure. For our recommendations to be implemented and maintained in a competent and fair manner, the consultant will provide sufficient documentation and discourse throughout the study. In collaboration with HR, the consultant will meet and confer with the Bargaining Units to explain any variances (+/- ) to the current salary schedule and will present a final Classification and Compensation Report to the City Manager and/or City Council.

Maintenance Program
At the City’s discretion, the Consultant may be asked to develop and recommend a classification maintenance program to review, analyze and evaluate (including pay grade recommendation), new or revised job descriptions on an annual basis. The Consultant will provide the costs for this service to be considered by the City. 22 22

EXHIBIT "B"

COMPENSATION

City will pay Contractor two hundred thousand ($200,000) dollars, following the below table.

Our cost proposal does not include time to support the City during any labor negotiations that may follow this study. If we are needed for this work, our composite hourly rate will apply, and we will charge on a time-and-materials basis.
**Should the City wish to add comparator agencies, the additional cost would be $7,500 per comparator, assuming up to 58 benchmarks would be surveyed in each.

Our study costs are derived directly from estimating the number of hours required to perform the work and the level of the consultant charged with performing it. Gallagher typically bills monthly up to the maximum of each deliverable. Please note that, as phases sometimes run concurrently, a phase may not be completed at the time it is billed. All expenses are included in this quote.

Should the City wish to have additional on -site presentation days or meetings, the estimated cost would be $4,000 per day. Any change to the scope of the assignm ent (beyond what is described above), as well as other work requested beyond this assignment, will be billed based on our hourly rates unless we mutually agree on a fixed fee for the additional work.
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EXHIBIT "C"

INSURANCE
A. Contractor shall at all times during the term of this Agreement and for a period of four (4) years thereafter, obtain and maintain in force the following minimum insurance coverages and limits at its own expense:

B. Commercial General Liability (CGL) insurance covering claims for bodily injury, death, personal injury, or property damage occurring or arising out of the performance of this Agreement, including coverage for premises, products, completed operations, employer’s liability, and all hired and non -owned automobiles, with limit with limits of maximum $2,000,000 per occurrence and $4,000,00 in the aggregate; C. Workers Compensation insurance with statutory limits, as required by the province in which the work take s place. Insurer will be licensed to do business in the province in which the work takes place;
D. Errors & Omissions Liability insurance, including extended reporting conditions of two (2) years with limits of maximum $5,000,000 per claim, or $10,000,000 in the aggregate; E. Cyber Liability and Network Security & Privacy Liability insurance, including extended reporting conditions of four (4) years with limits of maximum $2,000,000 per claim and in the aggregate, inclusive of defense cost; and
F. Crime insurance covering third -party crime and employee dishonesty with limits of maximum $1,000,000 per claim and in the aggregate.

G. Any cancelled or non -renewed policy will be replaced with no coverage gap, and a Certificate of Insurance evidencing the coverag es set forth in this section shall be promptly provided to City.
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2026 Arthur J. Gallagher & Co

City of Cathedral City

Classification and Compensation Study

May 12, 2026
Mr. Georg S. Krammer
Managing Director | Public Sector, Community & Education 2121 N. California Boulevard, Suite 350
Walnut Creek, CA 94596
510.658.5633 | [email protected]

Gallagher Benefit Services, Inc. | ajg.com
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2026 Arthur J. Gallagher & Co The Gallagher Way. Since 1927.

Table of Contents

Cover Letter ..................................................................................................................................................................................... 1 Organizational Overview ................................................................................................................................................................. 2 Project Staffing ................................................................................................................................................................................ 6 Approach to the Project ................................................................................................................................................................ 10 Project Timeline ............................................................................................................................................................................. 22 References ..................................................................................................................................................................................... 23 Contractual Considerations ......................................................................................................................................................... 27 Appendix 1: Publications & Conference Presentations ............................................................................................................. 31 Appendix 2: FLSA Compliance Methodology ............................................................................................................................. 32 Appendix 3: Job Description Review & Analysis Process ........................................................................................................ 33 Appendix 4: Additional Services .................................................................................................................................................. 34 Appendix 5: Sample Classification Study ................................................................................................................................... 36 Appendix 6: Sample Compensation Study ................................................................................................................................. 37

Cost proposal has been provided under separate cover per the RFP instructions.

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1 | 2026 Arthur J. Gallagher & Co The Gallagher Way. Since 1927.

Cover Letter

May 12, 2026

Mr. Patrick Bumstead
Financial Analyst & Procurement Administrator
City of Cathedral City
68-700 Avenida Lalo Guerrero
Cathedral City, California 92234

Dear Mr. Bumstead:

We appreciate the opportunity to present this proposal regarding the services Gallagher’s Human Resources & Compensation Consulting practice can offer City of Cathedral City (City). Gallagher is highly capable and qualified to work with the City based on our extensive experience with public sector organizations across the country, including over 170 cities in California alone, as well as the City of Cathedral City itself on several occasions over the years. We would consider it a privilege to serve the City in this capacity.

It is our understanding that the City is seeking a comprehensive classification and total compensation study.

We believe we will provide the City with the most diversely experienced project team of any consulting practice in the country, which enhances the solutions and recommendations we will provide on this engagement. The questions and perspectives provided by our team help us anticipate any issues the City may face throughout this project, as well as the ongoing management of the updated classification and compensation system.

We have prepared the following proposal in response to your request. We appreciate having the opportunity to submit this proposal and look forward to assisting the City in this engagement.

Sincerely,

Georg S. Krammer
Managing Director, Practice Operations & Hub Leader
510.658.5633 | [email protected]
Erik Smetana
Managing Director & National Practice Leader
314.494.4849 | [email protected]

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Organizational Overview

Value Proposition:

The ability to deliver comprehensively structured human capital solutions to clients is Gallagher’s signature in the marketplace. At Gallagher, we want to know what makes your organization unique. We listen intently to learn about your culture and priorities and delve deeply into all the details that matter when balancing human capital needs with your bottom line. This single-minded focus on excellence — characterized by innovation and creativity — is the driving force behind every Gallagher engagement.

Company History:

Arthur J. Gallagher & Co. opened its doors in 1927 and remains “growing strong” thanks to a proven ability to help clients think ahead. Founded by its namesake who was previously the leading producer for Chicago’s largest insurance brokerage, Gallagher is now one of the world’s largest human capital, insurance brokerage and risk management services firms. We have operations in 33 countries and extend our client-service capabilities to more than 90 countries through a global network of correspondent brokers and consultants.

Since 1961, we have been helping clients overcome business barriers and create new opportunities to cost- effectively attract, retain, and productively engage the best performers in their field. Gallagher started trading on the NYSE under the symbol AJG in 1984.

Company Culture & Philosophy:

The ideals, principles, and values embodied by the founder, whose name still appears on our door, are part of our corporate DNA. Gallagher’s approach to business, cultivated through three generations of family leadership, has always centered on creating relationship value as true partners to our clients. Gallagher’s interactions with you will be straightforward and candid. By earning our clients' trust, we have sustained a reputation for ethics and transparency that continues to contribute to our growth.

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The high standards of conduct we have set for our external professional relationships are the same rules we follow internally.

The Gallagher Way, a one-page document outlining our 25 shared values, was written in 1984 but remains just as culturally relevant today. It speaks to the value of relationships, and several tenets set guidelines for ethical behavior. Gallagher combines innovative solutions, thoughtful advice, and honest business practices to minimize risk and help fuel your success.

Talent Practice:

Gallagher’s Talent practice empowers clients to attract talent, manage staff, develop leaders, and reward success—leveraging the power of Gallagher and the wisdom of experience to build an engaged, productive workforce. Tapping into expertise that spans the spectrum of human resources at every level, we can assemble flexible compensation and consulting solutions that improve efficiency and build bottom lines.

Our practice combines some of the most respected names in human resources and compensation consulting.

As we have expanded our services and reach, we have strengthened our ability to serve our clients – including the acquisition and integration of talented firms, consultants, and advisors from Koff & Associates (2021) and Buck (2023). Bringing together experts from compensation, performance, compliance, data and analytics, survey, search, and leadership fields, Gallagher empowers clients with tools for the entire employment lifecycle.

With an experienced team of consultants located in offices across the United States and Canada, our services include:

HR & Organizational Effectiveness
Think of us as your strategic partner and an extension of your HR and organizational change team.

Compensation & Rewards
We strengthen the employer-employee relationship by
designing equitable, competitive, and sustainable
compensation and rewards programs.

Multinational Benefits & Mobility
As Global Connectors, we provide solutions for you to manage your multinational workforce in a compliant, coordinated, strategic, administratively efficient, and cost-effective way.

Communications
A global leader in employee communication, we set the
industry standard for excellence and innovation.

People Development & Insights
We help you understand your customers and your workforce to unlock value and performance.

Public Sector, Community & Education Consulting Practice:

Gallagher’s Public Sector, Community & Education consulting practice has completed more than 1,500 classification and compensation related studies for public entities, higher education, and similarly 29 29

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situated clients nationally. We have extensive experience in developing and communicating compensation philosophy, designing and implementing market-aligned pay structures and career frameworks and developing job evaluation methods to maintain internal equity. We conduct benchmark analyses, including conducting custom-tailored salary surveys (if needed), and recommend appropriate administrative and procedural guidelines to maintain the compensation system. We ensure that our clients comply with applicable laws and regulations, such as the Fair Labor Standards Act (FLSA), the Americans with Disabilities Act (ADA), and Equal Employment Opportunity (EEO) standards and have pay systems that are appropriate for their organization and market strategy.

We have served our clients for more than 40 years across an array of strategic and value-adding HR services with classification, compensation, pay equity, leadership search, and organizational design + span of control as our core specialties.

Alliances

We have a strategic alliance with the Public Sector Human Resources Association (PSHRA), the National Public Employers Labor Relations Association (NPELRA), and the Colleges and Universities Professional Association for Human Resources (CUPA - HR) and have conducted a series of training seminars/workshops on compensation, classification, job evaluation, strategic HR, and employee benefits management throughout the nation in conjunction with these organizations. Gallagher Benefit Services also focuses on the higher education market.

Market Leading Thought Leadership and Strategic Direction

Our consultants have demonstrated leadership in the compensation and strategic HR fields by completing training and certifications from WorldatWork, ERI, HRCI, Human Capital Institute, SHRM, and others in addition to serving as instructors and presenters for ICMA, CUPA-HR, NAPO, WorldatWork, NACO, NPELRA, PSHRA and other regional and national associations.

Our thought leadership has been published and/or highlighted in University Business, PSHRA News, American City and County, TalentCulture, Public Management, TLNT, Corporate Report Ventures, ERE, Corporate Board Member, Benefits Planner, WorldatWork, Society of Industrial & Organizational Psychology, and others.

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As your Trusted Advisor we have additional information for your consideration based on your current focus.

You can expect a trusted advisor in Gallagher, not just a vendor focusing on only one aspect of your HR offerings. While there are numerous vendors that can provide HR consulting, our subject matter expertise is brought to life in the way we partner with our public sector entities and is what truly sets Gallagher apart. Our consulting style is proactive and collaborative. We strive to provide you with relevant information and partner with you to support informed decisions and anticipate the future. As experts in providing a broad spectrum of human resource and talent management capabilities our experience has shown us that many public sector entities conducting a compensation project may also need support in these key areas:

Think of our team both as a strategy partner, and as an extension of your HR team – providing expertise and additional capacity aligned with your specific HR needs, including strategic advisory, one-off projects, and fractional on-going HR solutions.

You may encounter some cases that require communication such as sharing outcomes and findings of your needs
assessment. Our award-winning Communications Practice is a global leader in employee communications.

We will increase your business performance by amplifying the entire employee experience through world leading employee communications.

Here are some of the ways we can provide support:
• HR Policy Development
• Compliance
− I-9 Reviews & Revisions, ACA Reporting &
Compliance, Local, State & Federal Laws, Fair Labor
Standards Act (FLSA) Compliance
• Career Transition Services
• Recruiting Services
• Payroll & HRIS Technology Services
− Managed Payroll Solutions, Interim Emergency
Support, State Tax Registrations, Year-End Support
• HR Technology Selection and Implementation
• Organizational Change Management
• HR Support
− People Operations (Policies, Handbooks, JDs, Leave,
Workplace Investigations)
Let us help you with:
• Benefits (Total Wellbeing) Communications
• Compensation Communication
• Reward Communication
• Retirement Communication
• Internal Communication (IC)
• Audit and Insight – Communication Effectiveness
• Organizational Change Communication
• Digital (Communication) Experience
• Employee Value Proposition (EVP) Development and
Communication
• Personalized Portals
• Non-personalized portals
• Decision-support tools

We welcome the opportunity to further explore how we can partner with you in these critical areas.

HR & Organizational Effectiveness Communication
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Project Staffing

You will benefit from our team of specialists and experts, who bring a proven track record of:

• Designing and executing comprehensive compensation strategies • Performing complex classification analyses
• Evaluating pay equity to ensure fair, competitive structures • Delivering high-value strategic HR advisory services.

Many of our professionals have served as practitioners within the very sectors we support, granting us unique insight into real-world operational challenges. We combine rigorous data analytics, industry best practices, and innovative thinking to craft customized, forward-looking solutions aligned with each organization’s strategic HR goals. By drawing from hands-on experience and leveraging an in-depth understanding of market trends, we will help you meet current standards and proactively prepare for an ever-evolving talent landscape.

Gallagher fosters a commitment to excellence, professionalism, integrity, collaboration, and urgency for each of our clients. With each unique client, Gallagher combines these principles to deliver client services customized specifically to meet your needs. Your Gallagher consulting team has years of experience consulting to public sector clients, including those with unionized and represented employees with a significantly diverse employee workforce with organizations nationwide, including a long history of serving California cities, counties, and public bodies. We have worked with more than 1,000 public sector and higher education clients over the past decade. Each member of Gallagher’s public sector compensation consulting practice has achieved one or more of the following certifications and/or degrees:

• Certified Compensation Professional from WorldatWork
• Compensation Analyst Credential from Economic Research Institute • IPMA-SCP from the Public Sector Human Resources Association • PHR and/or SPHR from the Human Resources Certification Institute • SHRM-CP and/or SCP from the Society for Human Resource Management • SWP and HCS from the Human Capital Institute
• Master’s degree or above, in Human Resources, Business Administration, and/or Organizational Psychology

PROJECT LEADERSHIP & LEADERSHIP SUPPORT

Executive Project Sponsor

ERIK SMETANA, Managing Director & National Practice Leader - 25+ years of experience Erik manages operations and leads Gallagher’s Public Sector, Community & Education Human Resources & Compensation Consulting practice. Erik’s 25-plus-year work history has led him to serve in various diverse roles across human resource management, particularly in compensation and benefits, talent management and organizational development, people analytics, and employee relations and policy development. Erik has extensive experience in private and public sectors, working with an eclectic mix of dynamic organizations, including Fortune 500 companies across multiple industries, international not-for-profit organizations, membership associations, media outlets (e.g., NPR and NBC affiliates), institutions of higher education and research, and others. Before joining Gallagher, he served as the enterprise- wide Deputy CHRO and business unit CHRO with the University of Missouri System and with Vanderbilt University as the Executive Director of People & Engagement, leading, designing, and implementing compensation, employee learning, talent acquisition, and people-focused programs and initiatives. He has earned a variety of credentials over his career, including an MBA and MFA in Communication from Lindenwood University, SHRM-SCP and SPHR, SWP and HCS from Human Capital Institute, and a specialized certification in AI strategy from MIT.

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As a consultant, Erik has been engaged in more than 250 client projects with organizations ranging from cities and counties to state agencies to tribal nations and more including school districts, colleges and universities, special districts and authorities, and other sector aligned entities in the provision of compensation, classification, pay equity, organizational assessment, leadership coaching, performance management, and other strategic HR advisory services.

Project Directors/Advisors

GEORG KRAMMER, MBA, SPHR, Managing Director, Practice Operations & Hub Leader – 25+ years of experience Georg Krammer brings more than 25 years of management-level human resources experience with an emphasis in classification and compensation design, market salary studies, executive recruitment, organizational development, performance management, and employee relations; in the public sector and in large corporations as well as small, minority-owned businesses. After obtaining a Master of Arts in English and Russian and teaching credentials at the University of Vienna, Austria, Georg came to the United States to further his education and experience and attained his Master of Business Administration (MBA) from the University of San Francisco. Georg started his HR career at Wells Fargo’s college recruiting department, moving on to HR management positions in the banking and technology consulting industries. After serving in the roles of HR Manager, Administrative Officer, and HR Director, he crossed over to the public sector. Georg’s wide-ranging and deep human resources experience has prepared him to serve public sector clients varied needs. He has spearheaded several hundred classification, compensation, organizational and strategic planning studies for hundreds of cities, towns, counties, and special districts throughout California. Over the last decade, Georg has shared his vast knowledge at public sector industry conferences for organizations such as CALPELRA, CSDA, IPMA, and NPELRA. He has lectured and conducted workshops on subjects such as How to Conduct Classification and Compensation Studies, Performance Management, Succession Planning, and Recruitment. He holds the SPHR certification (Senior Professional in Human Resources).

TRACY MORRIS, MBA, SHRM-CP, Senior Consultant, Practice Operations & Hub Leader - 15+ years of experience
Tracy has more than a decade of experience working in the strategic HR space with significant public sector HR and compensation consulting. Tracy holds a bachelor’s degree in applied economics and a Master of Business Administration, both from Texas Tech University, and she is a SHRM Certified Professional (SHRM-CP). She serves clients as a project manager, thought leader, and advisor – additionally, she supports and manages our process improvement and optimization efforts to ensure each of our clients has an experience that meets their needs and exceeds their expectations.

ZAK SHTULBERG, Senior Consultant, Practice Operations & Hub Leader - 15+ years of experience Since starting as an HR consulting intern at Buck (now Gallagher) in 2012, Zak has been mission-driven and passionate about collaboration with clients and partners on transformative people, compensation, and other HR initiatives that improve the lives of employees and their communities. Projects have spanned a broad spectrum, including compensation strategy design, change management and communications, workforce planning, project management, analytics and technology enablement, and organization design, among many others. With both internal and external partners, he is recognized for blending strategic and technical advice with innovative analytics and technology and has grown as a trusted partner and subject matter expert in HR and compensation. Prior to starting his career, he earned a Bachelor of Science in Industrial and Labor Relations from Cornell University.

CHELSEA FREEMAN, Senior Consultant & Search Leader - 10+ years of experience Chelsea’s professional qualifications include ten years of experience working in the public sector, mostly with the California State University system. Chelsea also has nine years working in the private sector in manufacturing. In her role as Classification, Compensation and HR Operations Manager, she was responsible for developing and implementing a compensation philosophy for staff and faculty, as well as implement process improvement efforts within the HR operations. She provided ongoing consultation to managers to assist with properly classifying and compensating employees within an union environment.

CHRISTINE NICHOLS, Operations Support Specialist - 30+ years of experience Christine joined Gallagher in 2023, bringing more than 30 years’ experience in Operations Support to the practice. Prior to joining Gallagher, she worked in the private sector for a Global staffing company. In her role as Operations Support for the 33 33

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practice, Christine ensures that all administrative processes across the team run efficiently and effectively, providing seamless client experience from proposal to project closure. She plays an integral part in the contract review process, follows up on client invoices & vendor payments, pulls data from a variety of internal & external systems and coordinates communications with other Gallagher departments. Christine is responsible for managing all RFPs, web inquiries & client referrals to the practice. She also handles all the scheduling of internal & external meetings for the practice, as well as review & audit of practice expenses.

Project Managers

CATHERINE THORP, Senior Consultant & Project Manager - 25+ years of experience Ms. Thorp holds a Bachelor of Business Administration degree in Management from the University of Mary Hardin-Baylor.

Before joining Gallagher, Catherine worked as a Senior Compensation Manager at Dun & Bradstreet and in roles ranging from analyst to senior manager at McLane Company, Inc. Catherine has applied her compensation knowledge in market analysis, salary structure design, pay equity, career competencies, strategic planning, system integration, and process optimization. Catherine will complete her CCP in 2023.

DEBBIE OWEN, Senior Consultant & Project Manager – 30+ years of experience Debbie has over 30 years of experience providing classification and compensation services to public sector clients spanning local government sectors including cities, counties, special districts, and transit agencies. Prior to beginning her public sector career, Debbie worked as a Compensation and Benefits Specialist in the private sector for five years. In 1992, Debbie obtained her certification as a Certified Compensation Professional (“CCP”) from the American Compensation Association (now WorldatWork); to ensure current knowledge of compensation and benefits program trends and best practices, she maintains active membership in the WorldatWork organization. Debbie’s practitioner and project management experience has been primarily focused on the design and development of classification and compensation programs for a diverse range of public sector clients with varying project needs. For the last 20 years, Debbie has served in a project management capacity, working with clients to evaluate their classification and compensation systems and needs; she directs and reviews the work of project teams to provide clients with high quality deliverables consistent with best practices; and she prepares/delivers presentations designed to inform clients on study processes, activities, methodologies and outcomes.

JAIME PARKER, Senior Consultant & Project Manager - 15+ years of experience Jaime has 15 years of experience in Higher Education with 7.5 of those years in compensation and organizational effectiveness. Prior to joining Gallagher, she worked at Kansas State University in Human Capital Services, and in the Office of Institutional Effectiveness. Before her career in Higher Education, Jaime worked in the Banking Industry as a Banking Center Manager and Customer Service Manager. Jaime is a graduate of Kansas State University with a bachelor’s degree in accounting.

MAGGIE WILLIAMS-DALGART, Senior Consultant & Project Manager – 20+ years of experience Since joining Gallagher in 2021 Maggie has been providing a wide range of consulting services, including classification analysis and development, custom salary and benefits surveys, and pay plan design for various public sector agencies, including cities, counties, special districts, community colleges, and transit agencies. Maggie provides strategic advising and understands the importance of engaging key stakeholders throughout the study. Prior to joining Gallagher, Maggie spent 20 years in human resources for local government. In addition to classification and compensation expertise, Maggie’s experience includes collective bargaining, labor contract administration and labor costing, policy development, and recruitment and selection. Maggie served as President of CalPACS from 2018 - 2021, a regional internet-based salary and benefits survey website for local agencies in Southern California. Maggie holds a bachelor’s degree in history of public policy from the University of California, Santa Barbara and a master’s degree in public administration from the University of Colorado, Colorado Springs.

MIKE HARARY, Senior Consultant & Project Manager – 40+ years of experience Mike Harary possesses over 40 years of municipal HR management experience, including serving as a Human Resources Director for two municipalities in Southern California. He has been involved in all aspects of Human Resources for the cities of La Mirada, Orange, Westminster, and Downey, including serving as Chief Labor Negotiator, managing recruitment and selection processes for all types of municipal government positions, handling employee benefits 34 34

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functions, responding to labor and employee relations issues, complying with labor laws, conducting personnel investigations, and managing a variety of general human resources functions. He has also served as a consultant with Koff and Associates/Gallagher since 2019, managing numerous classification and compensation studies for multiple cities, counties, and special districts throughout California. Mike has a bachelor’s degree in business administration emphasizing in Human Resources Management from California State University, Long Beach, and a Master of Business Administration, also from Cal State Long Beach. Mike will provide managerial project support throughout this effort, including classification analysis, interviews with employees and management, compensation data collection and analysis, internal job analysis, development of recommendations, and implementation strategies.

TRAV J. WALKOWSKI – Senior Consultant & Project Manager – 15+ years of experience Before joining Gallagher, Trav honed his mastery of people operations within the consulting and tech sectors, primarily focused on startups and scale-ups. He has extensive knowledge in developing people strategies that foster employee engagement, operational efficiency and organizational evolution. Trav holds a bachelor's degree in psychology, a master's degree in psychology with an organizational specialization, and a doctorate in organizational psychology. His master's thesis explored incentive plans' effects on employee performance, and his dissertation examined the link between leader emotional intelligence and subordinate employee engagement. Trav has also achieved the Senior Certified Professional (SCP) certification, designed for those in strategic senior-level positions, from the Society for Human Resources Management (SHRM), Certified Compensation Professional (CCP) from WorldatWork, along with many other professional certifications.

ALYSSA THOMPSON - Senior Consultant & Client Liaison - 25+ years of experience KARI MERCER - Senior Consultant & Client Liaison - 15+ years of experience SARAH NUNES - Senior Consultant & Client Liaison - 20+ years of experience RENATE TINER - Senior Consultant & Client Liaison - 15+ years of experience SHILOH VENABLE - Consultant II & Client Liaison - 15+ years of experience CHARMAIN KOHLER - Consultant II & Client Liaison - 10+ years of experience MONICA GARRISON-REUSCH - Consultant - 20+ years of experience JANNA DINKELSPIEL - Consultant - 15+ years of experience KELLY BARNS - Consultant - 20+ years of experience
SUZY PARKER - Consultant - 5+ years of experience
CINDY HARAY - Consultant – 35+ years of experience
AMBER SHANG - Senior Associate Consultant - 5+ years of experience MARY GAUTHE - Senior Associate Consultant - 5+ years of experience CARISSA MARTO - Associate Consultant - 5+ years of experience ARIELE RODRIGUEZ - Associate Consultant - 25+ years of experience EDWARD HSI - Associate Consultant - 5+ years of experience LAUREN GRANT - Associate Consultant - 10+ years of experience KATHY ELLER - Associate Consultant - 25+ years of experience KELSI ARNEY - Associate Consultant - 8+ years of experience

PROJECT STAFF SUPPORT
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Approach to the Project

Our practice takes a thoughtful and collaborative approach to all our client engagements, where we work to ensure our efforts are ones which demonstrate how the Public Sector, Community & Education practice C.A.R.E.S. - collaborate/consult, advise/assess, recommend/resource, engage/endorse, and strategize/serve - about our clients and their needs. To that end, our project approach starts with our process and client communications.

Our extensive experience has resulted in a comprehensive understanding of the scope of work described by the City. Additionally, we understand the importance of this study as one of many strategies to address current human resources issues and appreciate the delicate nature of public sector spending. Below are some key considerations we have in this type of project, followed by our approach to the areas identified by the City, our detailed work plan, and the estimated project timeline.

Key Considerations:

Leadership Support: Effective compensation reform requires consistent, visible leadership commitment at multiple organizational levels. We establish a leadership accountability structure that includes executive sponsors, department champions, and implementation teams with clearly defined roles. Leaders must actively communicate the program's importance, address concerns directly, and visibly support the process through each phase. We provide leaders with focused messaging tools and data points to effectively advocate for changes. Without this multi-level support structure, even technically sound compensation systems often encounter significant resistance during implementation.

Benefit to you: This ensures leadership alignment and visible support, which are critical for successful implementation and stakeholder buy-in.

Internal Fairness and Equity: Our approach balances external market competitiveness with internal equity through comprehensive job analysis techniques. We conduct detailed comparisons across job families, reporting relationships, and responsibility levels to ensure logical compensation relationships. This includes specialized analysis of career progression paths and appropriate differentials between supervisory and non- supervisory roles. We implement specific methodologies to address compression issues, particularly between long-service employees and new hires with market-driven starting salaries. Our process identifies and remedies historical inequities while establishing defensible rationales for pay differences based on skills, responsibilities, and performance factors.

Benefit to you: This will allow us to identify and remedy historical inequities for the City, while establishing defensible rationales for pay differences based on skills, responsibilities, and performance factors.

Appropriate Timelines: We develop realistic project schedules based on organizational complexity and resources. This includes adequate time for comprehensive job documentation, employee input, leadership review cycles, and implementation planning. A typical comprehensive compensation project requires 6+ months for proper execution, including 2-3 months for thorough job analysis, 1-2 months for market research, and 2-3 months for implementation planning, noting that this work may happen concurrently across the life of 36 36

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the engagement. Accelerated timelines often compromise data quality and stakeholder buy-in, leading to implementation challenges and future rework. We establish appropriate checkpoints and quality controls to ensure thoroughness while maintaining momentum.

Benefit to you: A well-paced process reduces risks, enhances data quality, and ensures engagement throughout the project.

Data-Driven with Human Oversight: Our methodology combines rigorous data collection with expert interpretation. We utilize multiple validated market sources appropriate for your sector, geographic region, and organizational characteristics. All job matches undergo multi-level validation checks to ensure accurate comparisons. This empirical foundation is then contextualized through structured consultant review panels that consider institutional history, strategic priorities, and unique operational factors as shared and iterated by our clients. We document both the data-driven recommendations and any exceptions to provide a clear, defensible audit trail. This balanced approach ensures decisions are not rigidly algorithmic while maintaining system integrity. Gallagher does not perform FOIA or similar requests in the collection of market data.

Benefit to you: This ensures data-backed decisions are tailored to your unique organizational needs, with a clear and defensible audit trail. Combining data with expert insights allows for strategic decisions that align with the City’s organizational goals.

Clear and Consistent Communication: We develop compensation structures and classification frameworks with inherent clarity, using straightforward job leveling frameworks, transparent progression criteria, and consistent application of compensable factors. Communication materials are tailored to different stakeholder needs—executive summaries for leadership, detailed implementation guides for HR professionals, and practical explanation tools for managers and employees. We create accessible resources explaining compensation philosophy, range structure, placement methodology, and future growth opportunities. Systems are designed with straightforward administration requirements that do not require specialized expertise for day- to-day management.

Benefit to you: Clear communication builds trust, ensures understanding across all the City levels, and simplifies system administration.

Compression Planning and Analysis: Our implementation approach includes detailed financial modeling that identifies potential compression scenarios before placement decisions are finalized. We analyze the distribution of current salaries against proposed ranges to identify employee clusters and gaps requiring special attention. Implementation options are developed with multi-year cost projections, including various phasing alternatives to balance budget constraints with equity requirements. Special focus is given to departments with significant longevity differences and areas with recent hiring at market rates. This proactive approach prevents creating new inequities while addressing existing compression issues within available resources.

Benefit to you: Proactively addressing compression issues helps maintain equity, improve retention, and align pay with organizational priorities.

Our Approach:

The City desires human resources assistance to conduct a comprehensive classification and total compensation study that will result in equitable, competitive and legally defensible classification and pay practices, while also creating consistencies across its five bargaining units and non-represented classifications.

The City currently employs approximately 230 full-time employees. General employees and safety employees are represented by one of four (4) labor units. Management and supervisory employees are not represented by a recognized employee organization while the City Manager is a contract employee. 37 37

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We understand that the City wishes to complete the classification and compensation study for its safety labor units (CCPOA, CCPMA, and CCFA) prior to the other labor units. Our approach to the project for both groups is as follows:

The study’s first level of effort is to initially develop an updated and well-structured classification system and classification descriptions for all study positions that are legally compliant (including Fair Labor Standards Act (“FLSA”) and Americans with Disabilities Act (“ADA”) requirements), internally aligned, reflective of contemporary standards, and accurately descriptive of current roles, responsibilities, duties, and qualifications.

The classification analysis process includes orientation and briefing sessions with employees, management, Human Resources, union representation, and other stakeholders, as appropriate; the completion of a position description questionnaire by employees; and interviews with supervisors and management to address any classification issues. All participating employees will be allocated to an appropriate classification; draft classification descriptions will be developed, and sent back to the City and incumbents for additional feedback and concurrence.

A second level of effort will be to review the City’s compensation structure for the studied classifications and to conduct a compensation market survey (salaries plus benefits) using a set of appropriate comparator agencies. The identification of comparator agencies, benchmark classifications, and benefits to be collected is an iterative process that includes all stakeholders. We have found this open discussion philosophy to be critical to our success for organizational buy-in. Once the external data development is completed, we will make specific recommendations for internal equity for non-benchmarked classifications and classifications without a large enough market sampling.

The compensation study will contain specific recommendations regarding the integration of all study classifications into the City’s compensation structure, with the goal of developing a clearly designed, internally equitable format that is flexible for career opportunity and future growth. Our study will make recommendations regarding a salary structure that takes the City’s compensation preferences into consideration as well as the appropriate placement of each classification on the City’s salary schedule.

The study includes a significant number of meetings with the Study Project Team, Human Resources, employees, union representation, and the City Council, as desired. We have expertise in labor/management relations and understand the importance of active participation by all stakeholders to ensure a successful outcome. The meetings and “stakeholder touch-points” that we recommend ensure understanding of the project parameters, enhance accurate intake and output of information, and create a collaborative and interactive approach resulting in greater buy-in for study recommendations. This interactive approach has resulted in almost 100% implementation success of Gallagher’s studies.

The majority of our clients are unionized and our larger city, county, and special district clients typically have multiple unions. Due to the multitude of stakeholder groups who are affected by any classification and compensation study Gallagher conducts, our team understands the importance of accurate and validated data that withstands any scrutiny, effective and ongoing communication throughout each effort, and collaboration with the various stakeholder groups to ensure organizational buy-in to our findings and recommendations. We have developed a unique methodology of stakeholder “touchpoints” and collaboration that has made us highly successful and effective and has earned our team respect, agreement, and understanding from all stakeholders. In addition, we adjust and customize our methodology based on each individual client’s unique needs and circumstances.

We also recognize that both the City and union representatives have obligations to employees and members to ensure that any study is conducted in a fair and equitable manner. Our project work plans are designed for transparency and we strongly encourage dialog with all stakeholders on study deliverables so they in turn can express their concerns; we all have a shared goal of ensuring the process followed is fair and equitable.

This intense and comprehensive stakeholder engagement and our transparent study processes are also a mechanism of quality control. The fact that our information, data, and recommendations have to be able to 38 38

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withstand utmost scrutiny by diverse stakeholders requires an in-depth multi-step quality control process for deliverables. This involves Gallagher team member validation of classification analyses and compensation data, Gallagher Project Manager review of all classification and compensation analyses, recommendations and deliverables, and finally Gallagher Principal (Project Director) review of deliverables before submittal to the client.

STUDY OBJECTIVES
Classification Objectives:
• To analyze and update the City’s classification system and study each position’s classification description and structure through a comprehensive process of job analysis and evaluation, including review of existing documentation, position description questionnaire completion, employee interviews, management interviews, analysis of existing positions and working situations, analysis of levels of duties and responsibilities, and other professional methods, as appropriate; • To recommend each study position for title change or reclassification (as appropriate), create new classifications (if applicable), eliminate outdated classifications (if applicable), and consolidate classifications assigned to similar functional areas (as appropriate); • To provide for growth and flexibility of assignment within the new classification structure, where feasible, in recognition that some job duties and responsibilities may evolve over time, as well as to provide adequate career paths and class series/job families that will foster career service within the City; • To clearly state definitions of job classifications, the typical job functions, and minimum required qualifications such as education, prior work experience, knowledge, skills, abilities, licenses, certifications, and physical demands and working conditions;
• To provide a classification structure that ensures regulatory compliance, including appropriate FLSA designation as well as meeting ADA and EEO regulations; and • To ensure sufficient documentation and training throughout the study, on methods used to determine appropriate classification and level, methods for logical progression of movement between classifications, classification concepts and distinguishing characteristics, as well as the delivery of final reports and recommendations to guide the organization in implementing, managing, and maintaining the classification system.

Compensation Objectives:
• To make recommendations regarding a list of appropriate, logical and defensible comparator agencies, benchmark classifications, and benefits to be collected prior to beginning the compensation portion of the study;
• To collect accurate salary and benefit data from the approved group of comparator agencies and to ensure that the information is analyzed in a manner that is clear and comprehensible to the Study Project Team, Human Resources, management, employees, union representation, and the Council; • To carefully analyze the scope and level of duties and responsibilities, requirements for successful work performance, and other factors for survey classes, according to generally accepted compensation practices;
• To review the City’s compensation structure and practices and develop compensation recommendations, including appropriate internal salary relationships, that will assist the City in recruiting, motivating, and retaining competent staff;
• To develop solutions that address pay equity issues and create a market adjustment implementation strategy supporting the City’s goals, objectives, and budget considerations; • To create a comprehensive final report summarizing the compensation study approach and methodology, analytical tools, findings, and recommended compensation structure; and; • To ensure sufficient documentation and training throughout the study, on methods used to determine appropriate salary ranges, methods for logical progression within the salary scale for each classification, and other practices, so that our recommendations can be implemented and maintained in a competent and fair manner.

Overall Objectives:
• To review and understand all current documentation, rules, regulations, policies, budgets, procedures, class descriptions, organizational charts, memoranda of understanding, personnel policies, wage and 39 39

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salary schedules, and related information so that our recommendations can be operationally incorporated with a minimum of disruption;
• To conduct project start-up meetings with study stakeholders to discuss any specific concerns with respect to the development of classification and compensation recommendations; finalize study plans and timetables; conduct orientation sessions with management, union leadership, and staff in order to educate and explain the scope of the study and describe what are and are not reasonable study expectations and goals;
• To work collaboratively and effectively with the City and its stakeholders while at the same time maintaining control and objectivity in the conduct of the study; and • To provide effective ongoing communications throughout the duration of the project and continued support after implementation.

METHODOLOGY / WORKPLAN / DELIVERABLES
Our approach is to complete the classification and job evaluation before completing the compensation review.

The reasons for this include:

• The description of the work performed and the requirements for that work are, in the minds of the employees and their supervisors, inextricably associated with the “value of that work” or compensation, which is often a highly emotional issue. Separating the two phases of the study, even though elements of phases may be conducted concurrently, tends to produce more objective classification results. • The compensation review will be completed when there is a full understanding of the work of the City, thereby ensuring that the data developed from the labor market compared to the City’s classifications is accurate.

Given these parameters, our approach is as follows:

PHASE I – CLASSIFICATION STUDY:

Milestone A. Project Kickoff Meetings, Orientations, and Initial Documentation Review

Initial Meetings and Document Review
This phase includes identifying the City’s Study Project Team, contract administrator, and reporting relationships. Our team of Project Managers and Consultants will conduct a briefing session with the Study Project Team to explain process and methodology; create the specific work plan and work schedule; identify subsequent tasks to be accomplished; reaffirm the primary objectives and specific end products; determine deadline dates for satisfactory completion of the overall assignment; determine who will be responsible for coordinating/scheduling communications with employees, management, union representation, and the Council; and develop a timetable for conducting the same.

We will also conduct an initial meeting with Department Heads to provide information regarding study methodology, process, timing and logistics and provide them an opportunity to communicate any areas of concerns and pain points they may be experiencing with the current classification and compensation system.

Included in this task will be the gathering of written documentation, identifying current incumbents, and assembling current class descriptions, organizational charts, salary schedules, budgets, memoranda of understanding (“MOU”), personnel policies, previous classification and compensation studies, and any other relevant documentation to gain a general understanding of City operations.

City terminology and methods of current classification and compensation procedures, will be reviewed and agreed to. The Position Description Questionnaire (“PDQ”) will be discussed and customized as needed to meet the study objectives prior to distributing copies to employees. We will discuss methodology, agree to formats for class descriptions and compensation results, identify appropriate comparator agencies, benchmark classifications, and benefits to be surveyed for compensation survey purposes. We will respond to any questions that may arise from the various stakeholders.

Communications and Engagement Plan
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We will develop a communications and engagement plan to foster organizational buy-in and acceptance of study outcomes and consultant recommendations throughout the project by District stakeholders including employees. The goal of the communications and engagement plan is to build positive and effective relationships with the study stakeholders, to achieve consensus whenever possible, to strive to understand and take into consideration stakeholders’ ideas, opinions, desires, and issues, and to fully address their concerns.

The variety of communication and engagement channels will help inform, consult, involve, collaborate with, and empower City stakeholders, and ensure that our methodology and “stakeholder touch-points” are followed and executed at each study milestone.

We are committed to working closely with City study advisors (Human Resources, District leadership, employee representatives, if any, and other stakeholders) to understand the needs of the mutual constituencies (employees) and to ensure that the Study Project Team, Gallagher team, management, and any employee representatives meet the highest standards of stakeholder interaction, including communicating clearly, politely, honestly, and promptly, and treating everyone fairly, equally, and with respect.

Employee Orientations and Distribution of Position Descriptions Questionnaire We will facilitate an appropriate number of orientation meetings with employees over the course of several days and distribute our Position Description Questionnaire (“PDQ”). While these meetings are not mandatory, they form the beginning of the educational process that continues throughout the study. We will discuss the importance of the employees’ involvement in the study and their participation in PDQ completion and job analysis interviews. Project processes will be explained, expectations will be clarified, and elements that are not a part of the study will also be covered. Questions will be answered and a detailed explanation and examples for completing the PDQ will be given.

In recent years, we have found that it can be a much more efficient and cost effective for our clients to conduct employee orientations virtually because this approach avoids multiple employees having to travel to a central location and potentially losing hours of productivity versus simply clicking on a video link. We can provide the City with the technological options to ensure a smooth process. Our clients have received these operational changes very positively and our client-centric approach and methodology does not change with the venue.

Milestone B. Collection and Review of PDQs and Employee/Supervisor/Manager Interviews

Collection and Review of PDQs
We recommend giving employees in the same classification the option of collaborating on completing a PDQ together, if the employees so choose. At the same time, we will invite employees to complete an individual PDQ if they prefer and if they wish to be interviewed separately. We provide an electronic version of our questionnaire so that employees can more easily complete it. Employees complete the questionnaire and then send it to their supervisor for review, comment, and signature. We typically require a second level of review by the next level of management in the reporting structure. This ensures that all staff have an opportunity to provide information as to what the nature of the job is for each job classification.

Upon receipt of the PDQs in our office, Gallagher staff will review and analyze the PDQs in detail along with other documentation to obtain an understanding of the duties and responsibilities assigned to each position.

Employee/Supervisor/Manager Interviews

Interviews will be scheduled with employees. Because this is a critical step in the information-gathering and educational process, we recommend scheduling interviews with at least a representative sample of employees in each classification that will be included in the study. Typically, we employ the following approach and interview:

• All employees in single-position classifications;
• An adequate sampling of employees in multiple-position classifications; and • Any employee who requests an interview.

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We will offer employees the option to be interviewed in a group session with incumbents in the same classification or to request an individual interview if they prefer.

Interviews will then be held with supervisory and management staff (division managers, department heads, etc.), who will clarify their own responsibilities and/or confirm the information we have received in the interviews with their staff (we allow more time for these interviews).

The purpose of the interviews is to clarify and supplement the questionnaire data and to respond to potential perception differences regarding roles, tasks, scope, and supervisory responsibilities. The appropriateness of the following will be assessed:

• Work being completed and relationships of positions to each other within a division/department as well as across the organization; and
• Classification structure and reporting structure.

Milestone C. Classification Concept, Preliminary Allocation, and Draft Class Description Development

Classification Concept and Preliminary Allocation Development Prior to developing detailed class descriptions, our job evaluation will result in a classification concept and employee allocation document that will be submitted to the City for review and approval. We will compare changes in business need and operations, as well as any reorganizations, with the established classification system and job families as well as review internal relationships between classifications to define the reasons for, and effects of, the proposed changes.

Our job analysis method is the whole position analysis approach. Objective factors in the whole position job analysis methodology include:

1. Decision making/judgment

2. Difficulty and complexity of work

3. Supervisory responsibilities

4. Non-supervisory responsibilities

5. Minimum qualifications

6. Working conditions/risk factors

7. Contacts

This document will list broad class concepts and highlight where significant changes are recommended, such as creating or collapsing class series in the same functional area and/or separating or combining classifications assigned to different functional areas. We will review and analyze potential career ladders and promotional opportunities, including clearly delineated and distinguished levels within classification series. We will also review and update established titling guidelines.

A detailed, incumbent-specific allocation list for each position included in the study will be prepared, specifying current and proposed classification title and the impact of our recommendations (reclassification – upgrade or downgrade, title change, or no change).

After we have completed this process, a meeting will be arranged to review any recommended changes to the classification plan with the Study Project Team.

Draft Class Description Development
After preliminary approval of the class concepts and allocation lists, new and/or updated class descriptions will be developed for each proposed classification, following the format approved by the City. From the review of the PDQs and employee interviews, we will update duties, responsibilities, and minimum qualifications of each class specification. We will develop new class specifications if duties, responsibilities, and minimum qualifications have changed significantly, and/or if we recommend new classifications/class levels.

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Following EEO Uniform Guidelines, we will review, analyze, and update knowledge, skills, abilities, education and experience, position definitions, purpose, distinguishing characteristics, supervision received and exercised, position functions and special requirements including licensing and certifications.

We will also review and update physical demands based on the most typical job functions of each classification in accordance with the ADA. Finally, we will review each classification’s typical job functions and determine exempt vs. non-exempt status in accordance with “white collar” exemptions under the FLSA.

Milestone D. Facilitation of Draft Class Description Review, Finalization of Classification Plan, and Draft of Interim Report and Final Report

A draft copy of the revised/new class description will be submitted to the Study Project Team and subsequently to each manager for review to provide comments and concerns regarding any modifications to the classification structure and specifications. Our experience has been that this is one of the most critical phases of the project (as well as one of the most time-consuming). Our proactive and effective communication process at this juncture has always avoided formal appeals, adversarial meetings, or major conflicts at the conclusion of our studies.

Allocation and/or class description changes will be made as required and the class specifications will be finalized and submitted for approval. We will provide a written response to stakeholder feedback to inform stakeholders of the outcome of their concerns.

A Draft Interim Report of the Classification Study will be completed and submitted to the Study Project Team for review and comment. The report will contain:

• Documentation regarding classification methodology and process as well as all findings, analysis, and resulting recommendations for each studied position;
• The recommended allocation list, classification title changes, job family and career ladder/career growth issues, reporting relationships, and other factors; and • Classification concepts as well as methods used to determine appropriate classification and level, methods for logical progression between classifications, distinguishing characteristics and other pertinent information for implementation and continued maintenance of the recommendations.

Once we have received the City’s comments regarding the Draft Interim Report and have made any necessary changes, a Final Classification Report will be developed.

PHASE II – TOTAL COMPENSATION STUDY:

Milestone A. Determination of Survey Elements and Delivery of Market Survey

During the initial meeting with the Study Project Team, we will discuss and agree to the compensation study factors. We will confirm appropriate, logical and defensible comparator agencies that will be included in the external market survey, which will be the foundation for ensuring that the City’s compensation plan is competitively aligned with the external labor market. We will also confirm those classifications that will be surveyed in the market (i.e., benchmark classifications), with the intention of internally aligning the remaining classifications with those that were surveyed. Finally, we will determine the list of benefits that the City wants to include in the total compensation data gathering process.

1. Determination of Comparator Agencies
The selection of comparator agencies is a critical step in the study process. We typically use the following factors to identify appropriate comparators and will receive approval before proceeding with the compensation study.

Our recommended methodology is that we involve management, Human Resources, employee representation, and the City Council, in the decision-making process of selecting which comparable agencies are included, PRIOR to beginning the study. Our experience has shown that this is the most 43 43

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successful approach. The factors that we typically review when selecting and recommending appropriate comparator agencies include:

• Organizational type and structure – While various organizations may provide overlapping services and employ some staff having similar duties and responsibilities, the role of each organization is unique, particularly in regard to its relationship to the citizens it serves and level of service expectation. During this iterative process, the City’s current/ previous list of comparators, and the advantages/disadvantages of including them and/or others would be discussed. In the past, when Gallagher (at the time still Koff & Associates) performed compensation studies for the City, 13 comparator agencies were surveyed. We will include those in our comparator analysis. • Similarity of population served, District/City demographics, District/City staff, and operational budgets – These elements provide guidelines in relation to resources required (staff and funding) and available for the provision of services.
• Scope of services provided – While having an organization that provides all of the services at the same level of citizen expectation is ideal for comparators, as long as the majority of services are provided in a similar manner, sufficient data should be available for analysis. When reviewing this factor, the City’s unique services would be evaluated in order to ensure that the majority of comparators provide the same services. This ensures that each comparator yields a sufficient number of matches for the City’s jobs.
• Labor market – The reality of today’s labor market is that many agencies are in competition for the same pool of qualified employees, because large portions of the workforce don’t live in the communities they serve, are accustomed to lengthy commutes, and are more likely to consider changing jobs in a larger geographic area than in the past. In addition, working-from-home opportunities and hybrid work schedules have further changed the landscape of supply and demand of talent. Therefore, the geographic labor market area (where the City is competing for talent) is taken into consideration.
• Cost of living and cost of labor – The price of housing and other cost-of-living related issues are some of the biggest factors in determining labor markets and the appropriateness of comparator agencies. When the identified survey market includes comparators that are located outside of the City’s geographic area, we analyze cost of labor to ascertain whether there are significant differences and, if so, we are able to apply geographic cost-of-labor adjustments factors to the market data to ensure and apples-to-apples comparison.

We typically recommend using 10-12 comparator agencies for all survey benchmarks in order to achieve statistical significance but are flexible and can easily use a different approach based on the City’s preferences.

2. Determination of Benchmark Classifications
In the same collaborative manner as described in Step 1 above, we will work with the City’s stakeholders to select those classifications that will be surveyed. “Benchmark classes” are ordinarily chosen to reflect a broad spectrum of class levels. In addition, those that are selected normally include classes that are most likely to be found in other similar agencies, and therefore provide a sufficient valid data sample for analysis. Internal relationships will be determined between the benchmarked and non-benchmarked classifications and internal equity alignments will be made for salary recommendation purposes.

Due to the fact that the labor market typically yields reliable data, we recommend using approximately 60- 65% of all classifications as benchmarks.

3. Determination of Salary and Benefits Data to Be Collected In addition to base salaries, per the RFP, Benefits to survey will include, but not be limited to:

• Retirement
- Defined benefit and defined contribution plans
- Formulas
- Final compensation
- Cost-sharing arrangements, etc.
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• Retiree
- Medical
- Dental, Vision
• Active employees
- Medical
- Dental
- Vision
- Drug prescription programs
• Cost-sharing arrangements for each type of benefit, coinsurance, copayments, deductibles, out-of- pocket and lifetime maximums
• Life Insurance and AD&D
• Supplemental Long and Short Term Disability
• EAP, Flexible Spending Accounts, HRA’s, etc.
• Paid Leave entitlements
- Vacation
- Holidays
- Personal
- Sick
- Administrative
• Alternative Work Schedules
• Cash in Lieu
• Wellness Program
• Auto allowance
• Compensation or extra incentive pay for certifications and for which classifications • Tuition reimbursement and Training and development
• Any additional benefits such as laptops, cell phones, etc.

Data from Comparators and Preliminary Analysis of Data
Gallagher does not collect market compensation data by merely sending out a written questionnaire. Our experienced compensation analysts conduct all of the data collection and analysis to ensure validity of the data and quality control. We collect classification descriptions, organization charts, salary schedules, personnel policies, budgets, MOUs, and other information via website, by telephone, or email directly from each comparator agency. We then compare job description to job description and not just job titles, therefore ensuring true “matches” of at least 70%, which is the threshold we use to determine whether to include a comparator classification or not. As mentioned above in the classification methodology above, our job analysis method is the whole position analysis approach, which we apply here as well.

We also schedule appointments with knowledgeable individuals at each comparator to answer specific questions. We find that information collected using these methods has a very high validity rate and allows us to substantiate the data for employees, management, and governing bodies.

Data will be entered into spreadsheet format designed for ease of interpretation and use. Information will be calculated based upon average and median figures allowing the City to make informed compensation decisions. Other elements of the compensation survey report are agencies surveyed; comparable class titles; salary range maximum/control point; number of observations; and percent of the City’s salary range above/below the market values.

In addition, we will include any type of statistical representation and analysis that the City desires such as 60 th,
70th, or any other percentiles per the City’s compensation philosophy.

Benefits data will be displayed in an easy-to-read format. In addition, we are often asked to collect “additional” benefits, which we typically report on a separate spreadsheet.

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Milestone B. Draft Compensation Findings/Stakeholder Review and Feedback

As part of our transparent approach and communication strategy to ensure organizational buy-in to the study, we share the market survey with the organization. We first distribute our draft findings to the Study Project Team. After their preliminary review, we will meet with the Study Project Team and other stakeholders (including Human Resources, management, employees) to clarify data, to receive requests for reanalysis of certain comparators, and to answer questions and address concerns. This provides an opportunity for our team to engage with study stakeholders in a collaborative manner. If questions arise, we conduct follow-up analysis to reconfirm our original analysis and/or make corrections, as appropriate.

Milestone C. Development of Recommendations, Final Reports, and Presentations

Analysis of Internal Relationships and Alignment
To determine internal equity for all studied positions, considerable attention is given to this phase of the project. It is necessary to develop an internal position hierarchy based on the organizational value of each classification. Again, we utilize the whole position analysis methodology as described earlier.

By reviewing those factors, we will make recommendations regarding vertical salary differentials between classes in a class series, for example, as well as across departments. This analysis will be integrated with the results of the compensation survey and the City’s existing compensation plan.

The ultimate goal of this critical step in the process is to address any potential internal equity issues and concerns with the current compensation system, including compaction issues between certain classifications.

We will create a sound and logical compensation structure for the various levels within each class series, so that career ladders are not only reflected in the classification system but also in the compensation system, with pay differentials between levels that allow employees to progress on a clear path of career growth and development. Career ladders will be looked at vertically as well as horizontally.

Compensation Structure Development
We will review and make recommendations regarding the City’s salary structure (set of salary ranges, salary differentials, steps within ranges, and/or alternative compensation plans) within which the classes are allocated, based upon the City’s preferred compensation model. We will also work with the City on their compensation philosophy as it relates to market position and the formulation of their compensation plan. This analysis will result in external pay equity, solutions to address any pay equity issues, and an implementation strategy supporting City goals, objectives, and budget considerations.

Draft recommendations will be discussed with the Study Project Team and management for discussions and decisions on overall pay philosophy and the practicality of acceptance and prior to developing an Interim Report.

Final Report
A Draft Interim Report of the Compensation Study will be completed and submitted to the Study Project Team for review and comment. The report will include:
• An executive summary of the compensation study results; • A set of all market data spreadsheets;
• A proposed compensation structure;
• A proposed salary range placement document;
• A procedure to address employees whose current base pay either falls below the minimum of or exceeds the maximum of their newly assigned pay range;
• Implementation options surrounding our recommendations; and • A guide for implementing, managing and maintaining the compensation system.

Once all of the City’s questions/concerns are addressed and discussed, a Final Classification and Compensation Report will be created and submitted in the City’s preferred format. The Final Report will incorporate any appropriate revisions identified and submitted during the review process. 46 46

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Final Presentation
Our proposal includes multiple meetings and weekly oral and written status/progress updates to the Study Project Team. Regarding the involvement of the City Council, we recommend at least one initial meeting to confirm the comparator agencies to be included in the study, one interim study session (to discuss the initial findings of the compensation study), and one final presentation of our Final Report. Of course, we are flexible regarding having more or less interaction with the Council, based on the City’s preferences.

Expectations of City Support:

In order to conduct this study in the most timely and cost-effective manner, we ask for support in the following areas:

• Timely provision of written documentation, such as current class specifications, union contracts, organizational charts, budget documents, salary schedules, past studies, etc.; • Assistance in the notification and scheduling of initial kickoff and other meetings and the provision of adequate interview tools and resources;
• Assistance in the compilation of current descriptions with the PDQ; collection of PDQs from employees and forwarding them to Gallagher; and in ensuring that materials are completed and returned in a timely manner; and
• Meeting agreed-upon timelines.

In terms of time commitment for City staff, we understand that the City hires an outside consultant to conduct and coordinate the entire effort. Therefore, it is our goal to reduce the time commitment of City staff as much as possible and to only request assistance in the coordination of some of the steps in the process, such as scheduling meetings, disseminating information, and in general, being a channel of communication between our firm and employees.

Post-Study Consultation and Support:

We are committed to providing the City with the highest-quality product and service. Providing ongoing consultation and support after study completion is a service that is included in our professional fees and a continued relationship-building aspect of our client relationship that we highly value.

We often find that clients will call or email with follow-up questions and to discuss certain aspects of the study, ask why decisions and recommendations were made, and other important components of the study. We consider post-implementation support as part of our customer service.

Should the City request any additional meetings and/or training after completion of the study and/or other specific, identifiable work efforts, such as single-position compensation reviews or conducting annual surveys, we would honor our composite hourly rate for actual hours worked. However, from experience, we expect that most follow-up support will be conducted via telephone and email and this is absolutely included in our project fee for this project.

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Project Timeline

The following is an estimate to complete each phase by month. We will discuss the details of each phase during Phase 1 and identify specific deadlines for the project at that time. We will conduct frequent conference calls with the City to ensure the schedule is monitored throughout the project. In today’s world, speed is particularly important. However, given the significance of this project, it is just as important for City officials, department heads, and employees to have sufficient time to review and approve the recommendations of Gallagher and to ensure proper communications occur. We have prepared a timeline to ensure the City has the work products in an expeditious manner. Our phases run concurrently; in that we do not wait until the full completion of a phase to begin another phase. We are prepared to commence the work within two weeks of receiving your authorization to proceed.

The timeline below is intended for the entire project, including all employee groups. We will work with the City to determine an appropriate timeline for the safety labor groups to ensure we will meet the City’s needs and requirements.

PHASE MONTH
1 2 3 4 5 6 7 8
Strategic Alignment, Project Initiation, & Study
Administration

Classification & Career Framework Review + Design

Compensation, Benchmarking & Market Analysis

Implementation Strategy, Final Reports, & Sustainability Planning

Post-Project Support & Optional Ongoing Services Up to 10 hours of direct support for the 6 months following project closure

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References

Contact names and phone numbers are listed for each project. These projects are relevant to demonstrating our ability to meet the needs of the City and show considerable experience in developing compensation systems for a variety of public sector organizations. Our references can attest to the timeliness, quality, and responsiveness of the services we provide, our understanding of job classification and pay equity, and our knowledge of legal issues, such as the ADA and FLSA, and our expertise in working with public organizations and sensitive personnel issues. The projects listed below were completed by members of your project team and within similar timeframes to what the City is requesting.

The work Gallagher completed for these clients is the same or very similar to what the City is requesting.

While we’re not able to provide individual work samples or sample deliverables from each client due to confidentiality of the information, we are attaching one sample classification report and one sample compensation report to this proposal.

AGENCY & PROJECT CONTACT
City of Coachella

Compensation study, completed 2025.

Several Classification and Compensation Studies in 2008, 2014, 2016, and 2017.

Ms. Castulo Estrada
Utilities Director
(760) 501-8100 ext. 232
1515 Sixth Street
Coachella, CA 92236
[email protected]
City of Corona

City-wide Classification and Total Compensation Study, completed 2022.

Ms. Angela Rivera
Human Resources Director
(951) 672-6777
29844 Haun Rd.

Menifee, CA 92586
[email protected]

Please note: Ms. Rivera is no longer with the
City of Corona and is now Human Resources
Director for City of Menifee. We provide her
information as she can provide a reference for
our services while at City of Corona.

City of Indian Wells

Classification Study currently underway, 2026.

Total Compensation Study, completed 2021.

Citywide Classification and Compensation Study, Completed 2004.

Mr. Kevin McCarthy
Finance Director
44-950 Eldorado Drive
Indian Wells, CA 92210
(760) 776-0235
[email protected]

City of Menifee

Citywide Classification and Total Compensation Study, completed 2024.

Citywide Classification and Total Compensation Study, completed 2017.

Citywide Classification and Total Compensation Study, completed 2011.

Mr. Jonathan Nicks
Deputy City Manager
(951) 723-3707
29844 Haun Road
Menifee, CA 92586
[email protected]
City of Moreno Valley

Natalie Potter
Human Resources Manager
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Classification study currently ongoing. (951)413-3043
14177 Frederick Street
Moreno Valley, CA 92553
[email protected]

City of Murrieta

Citywide Classification and Total Compensation Study, completed 2019.

Ms. Stacey Stevenson
Deputy City Manager
(951) 461-6004
1 Town Square
Murrieta, CA 92562
[email protected]

Please note: Ms. Stevenson was K&A’s
reference when she was at City of National
City. She is now the Deputy City Manager at
the City of Murrieta.

City of San Bernardino

Current classification and compensation study with targeted completion in 2026.

Genevieve Valdez
Deputy Director of Human Resources
909.998.2060 | x2062
290 North D Street
San Bernardino, California 92401
[email protected]

Coachella Valley Water District

Classification and Compensation Study, 2023.

Mr. Bill Walters
Human Resources Administrator
(760)398-2661 ext. 2372
51501 Tyler St.

Coachella, CA 92236
[email protected]
Additional references and/or case studies are available upon request to support decision-making.

Case Studies
Project 1 – City of Corona

The City of Corona (“City”) desired human resources assistance to conduct an objective analysis of the current classification and compensation practices of the City; recommend changes that result in equitable, competitive and legally defensible classification and pay practices that would enrich the attraction and retention of qualified individuals as well as enhance opportunities for growth and professional development; evaluate the current employee benefit and compensation plan against local and regional m arkets, and comparable employers; and provide recommendations for adjustments.

At the time, the City employed approximately six hundred thirty -seven (637) full-time and approximately ninety (90) part-time positions, in approximately two hundred fifty-one (251) classifications. Per the City’s website, the City had approximately 298 c lassification descriptions, indicating that some of those classifications may either be vacant or no longer in use or inactive.

The study’s first level of effort (Classification Study) was to initially develop an updated and well -structured classification system and classification descriptions for all study positions that were legally compliant (including Fair Labor Standards Act (“FLSA”) and Americans with Disabilities Act (“ADA”) requirements), internally aligned, reflective of contemporary standards, and accurately descriptive of current roles, responsibilities, duties, and qualifications. The classification analysis process incl uded orientation and briefing sessions with employees, management, Human Resources, union representation, and other stakeholders, as appropriate; the completion 50 50

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of a position description questionnaire by employees; interviews with at least a representative sample of employees in each study classification; and interviews with supervisors and management to address any classification issues. All participating employ ees were allocated to an appropriate classification; draft classification descriptions were developed, and sent back to the City and incumbents for additional feedback and concurrence.

A second level of effort (Compensation Study) was to review the City’s compensation structure for the studied classifications and to conduct a total compensation market survey (salaries plus benefits) using a set of pre- established comparator agencies. The confirmation/identification of comparator agencies, benchmark classifications, and benefits to be collected was an iterative process that included all stakeholders. We have found this open discussion philosophy to be critical to our success for organizational buy -in. Once the external data development was completed, we made specific recommendations for internal equity for non-benchmarked classifications and classifications without a large enough market sampling. The compensation study contained specific recommendations regarding the integration of all study classifications into the City’s compensation structure, with the goal of developing a clearly designed, internally equitable format that was flexible for career opportunity and future growth. Our study made recommendations regarding a salary structure that took the City’s compensation preferences into consideration as well as the appropriate placement of each classification on that salary schedule.

The study’s total fee was $320,000.

Georg Krammer and Mike Harary were Co-Project Directors and the size of the study required a team of 10+ classification and compensation consultants to perform the various components of the study.

The study took approximately two years to complete due to the extenuating circumstances of the COVID -19 pandemic whose lockdown regulations were mandated within a mere few weeks from the start of the project, which delayed the completion of PDQs by employees by at least six months.

Gallagher/K&A’s relationship with the client is very positive and the City is one of our most valued references.

City of Corona Contact Information:

Ms. Angela Rivera, Chief Talent Officer
(951)279-3501
400 S. Vicentia Avenue, Corona, CA 92882
[email protected]

Project 2 – City of El Monte

The City of El Monte (“City”) desired human resources consulting assistance to conduct an objective analysis of the current citywide classification and total compensation practices of the City; recommend changes that result in equitable, competitive and legally defensible classification and pay practices that would enrich the attraction and retention of qualified individuals as well as enhance opportunities for growth and professional development; evaluate the current employee benefit and compensation plan against local and regional markets, and comparable employers; provide recommendations for adjustments.

At the time, the City employed approximately two hundred seventy -eight (278) full -time regular employees, in approximately one hundred twelve (112) classifications and four (4) bargaining units; there were also seven (7) executive classifications. Also to be included in the study, were approximately two hundred thirteen (213) part- time employees, in approximately thirty-five (35) classifications; the part-time employees were not represented.

The study’s first level of effort (Classification Study) was to initially develop an updated and well -structured classification system and classification descriptions for all study positions that were legally compliant (including Fair Labor Standards Act (“FLSA”) and Americans with Disabilities Act (“ADA”) requirements), internally aligned, reflective of contemporary standards, and accurately descriptive of current roles, responsibilities, duties, and qualifications. The classification analysis process incl uded orientation and briefing sessions with employees, 51 51

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management, Human Resources, union representation, and other stakeholders, as appropriate; the completion of a position description questionnaire by employees; interviews with at least a representative sample of employees in each study classification; and interviews with supervisors and management to address any classification issues. All participating employees were allocated to an appropriate classification; draft classification descriptions were developed, and sent back to the City and incumbents for additional feedback and concurrence.

A second level of effort (Compensation Study) was to review the City’s compensation structure for the studied classifications and to conduct a total compensation market survey (salaries plus benefits) using a set of pre- established comparator agencies. The confirmation/identification of comparator agencies, benchmark classifications, and benefits to be collected was an iterative process that included all stakeholders. We have found this open discussion philosophy to be critical to our success for organizational buy -in. Once the external data development was completed, we made specific recommendations for internal equity for non-benchmarked classifications and classifications without a large enough market sampling. The compensation study contained specific recommendations regarding the integration of all study classifications into the City’s compensation structure, with the goal of developing a clearly designed, internally equitable format that was flexible for career opportunity and future growth. Our study made recommendations regarding a salary structure that took the City’s compensation preferences into consideration as well as the appropriate placement of each classification on that salary schedule.

The study’s total fee was $180,000.

Georg Krammer and Debbie Owen were Co-Project Directors and the size of the study required a team of 8+ classification and compensation consultants to perform the various components of the study.

The study took approximately one year to complete.

Gallagher/K&A’s relationship with the client is very positive and the City is one of our most valued references.

City of El Monte Contact Information:

Ms. Kristen Enomoto, Senior Management Analyst
(626)580-2044
11333 Valley Boulevard, El Monte, CA 91713
[email protected]

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Contractual Considerations

The Parties expressly agree that this Agreement allows for cooperative procurement. Any public body (health or educational) may utilize this Agreement if authorized by Gallagher in writing. Participation in this cooperative procurement is strictly voluntary. If authorized by Gallagher in writing, this Agreement may be extended to certain entities to purchase certain services provided by Gallagher at fees in accordance with this Agreement (each, a “Participating Entity”). Participating Entities will purchase services directly from Gallagher by and through this Agreement as if it were the named ‘Client’ hereunder. Gallagher shall look to the Participating Entity and the Participating Entity shall look to Gallagher in the event of invoicing, payments, and/or contractual disputes in accordance with the terms set forth herein. The named Client, nor any other Participating Entity, shall be held jointly and severally liable for any costs or damages in the event of a dispute between Gallagher and that Participating Entity. By entering into this Agreement, no Participating Entity is precluded from other agreements or competitive processes, as the case may arise.

Additionally, each Party or its Affiliates may execute a Statement of Work pursuant to this Agreement with the other Party or any of such other Party’s Affiliates, and each such Statement of Work will form a separate contract between the signatory parties thereto. Where the parties to a Statement of Work are an Affiliate of Gallagher or Client, unless context dictates otherwise, references within any provisions of this Agreement to “Gallagher” or “Company” that are incorporated into such Statement of Work shall, for the purposes of that Statement of Work, be construed as a reference to Gallagher’s or Client’s respective Affiliate that is the signatory to such Statement of Work. “Affiliate” as it relates to a Party means any entity that Controls, is Controlled by, or is under common Control with such Party. “Control” means the ability, whether directly or indirectly, to direct the affairs of another by means of ownership, contract or otherwise.

Gallagher is pleased to submit this proposal to the City. While this proposal is not meant to constitute a formal offer, acceptance, or contract, notwithstanding anything to the contrary contained in the proposal, Gallagher is submitting this proposal with the understanding the parties would negotiate and sign a contract containing terms and conditions that are mutually acceptable to both parties.

Our legal team has provided the following exceptions to the terms and conditions outlined in this proposal. We are open to discussion on these.

• Gallagher is pleased to submit this proposal to client. While this proposal is not meant to constitute a formal offer, acceptance, or contract, notwithstanding anything to the contrary contained in the proposal, Gallagher is submitting this proposal with the understanding the parties would negotiate and sign a contract containing terms and conditions that are mutually acceptable to both parties.

• Gallagher is not a federal contractor or subcontractor. Therefore, Gallagher cannot agree to federal contracting provisions contained within the RFP.

• Section 6 (PDF page 10); Section 20 (4 th Para) (PDF page 16) - We propose the following change to this section: Client shall own all final deliverables provided to Client by Gallagher as part of the services provided under this Agreement, provided however, Gallagher shall retain sole and exclus ive ownership of all right, title, and interest in, and to, its intellectual property and derivatives thereof which no data or Confidential Information of the Client was used to create and which was developed entirel y using Gallagher’s own resources, including any and all pre-existing or independently developed know -how, methods, processes and other materials prepared by Gallagher. To the extent Gallagher’s intellectual property is necessary for the Client to use the deliverables provided under this Agreement, Gallagher grants to Client a non-exclusive, royalty-free license to Gallagher’s intellectual property solely for Client’s use of such deliverables.

• Section 7 (PDF pages 10 - 11) - *Unless otherwise required by applicable law, Gallagher cannot agree to permit City to audit for 3 years after the agreement ends. Gallagher’s policy does allow for you to audit during the agreement.
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• Section 15 (2nd Para) (PDF page 14) - Gallagher does not permit its employees to testify as subject matter expert witnesses in any client litigation, but Gallagher employees can act as witnesses to provide testimony relevant to the services being provided to the City.

• Section 16 (PDF pages 14 – 15) - Gallagher proposes the following change to this section:

Indemnification. Each party agrees to defend, indemnify and hold the other party and its affiliates and their respective directors, officers, employees and agents har mless from any and all losses, liabilities, exposures, damages and all related costs and expenses, including reasonable legal fees, to the extent arising from or relating to any third party claims, demands, suits, allegations, or causes or threats of action based on the indemnifying party’s: (i) breach of any representation, warranty or covenant made by such party hereunder, or (ii) grossly negligent acts or omissions or intentional misconduct; provided, however, that the indemnifying party’s indemnification obligations hereunder shall be reduced to the extent that such losses and damages arise from the acts or omissions of the other party or its employees or agents.

• Section 16 (PDF pages 14 – 15) - A limitation of liability of fees paid needs to be added to the indemnification provision.

• Section 17 (PDF page 15); EXHIBIT "C" (PDF pages 23 – 25) - Below are Gallagher's insurance representations based on AJG Risk Management policies. These are not changed on a client by client basis:

 Gallagher shall at all times during the term of this Agreement and for a period of two (2) years thereafter, obtain and maintain in force the following minimum insurance coverages and limits at its own expense:

 Commercial General Liability (CGL) insurance on an ISO form number CG 00 01 (or equivalent) covering claims for bodily injury, death, personal injury, or property damage occurring or arising out of the performance of this Agreement, including coverage for premises, products, and completed operations, on an occurrence basis, with limits no less than $2,000,000 per occurrence and $4,000,000 in the aggregate;

 Workers Compensation insurance with statutory limits, as required by the state in which the work takes place, and Employer’s Liability insurance with limits no less than $1,000,000 per accident for bodily injury or disease. Insurer will be licensed to do business in the state in which the work takes place;

 Automobile Liability insurance on an ISO form number CA 00 01 covering all hired and non- owned automobiles with limit of $1,000,000 per accident for bodily injury and property damage;

 Umbrella Liability insurance providing excess coverage over all limits and coverages with a limits no less than $10,000,000 per occurrence or in the aggregate;

 Errors & Omissions Liability insurance, including extended reporting conditions of two (2) years with limits of no less than $5,000,000 per claim, or $10,000,000 in the aggregate;

 Cyber Liability, Technology Errors & Omissions, and Network Security & Privacy Liability insurance, including extended reporting conditions of two (2) years with limits no less than $2,000,000 per claim and in the aggregate, inclusive of defense cost; and

 Crime insurance covering third-party crime and employee dishonesty with limits of no less than $1,000,000 per claim and in the aggregate.

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All commercial insurance policies shall be written with insurers that have a minimum AM Best rating of no less than A-VI, and licensed to do business in the state of operation. Any cancelled or non-renewed policy will be replaced with no coverage gap, and a Certificate of Insurance evidencing the coverages set forth in this section shall be provided to Client upon request.

• Section 19 (PDF page 16) - This section will need to be modified so that no prior approval of personnel is required from the City. Gallagher will provide notice of substitutions after they occur. Gallagher can agree to a reasonable time period to provide such notice and will use good faith efforts to ensure that the City is satisfied with any replacement personnel assigned.

• Section 20 (4
th Para) (PDF page 16) - Gallagher may retain copies of its work product that contain Confidential Information for archival purposes or to defend its work product, and in accordance with legal disaster recovery and records retention requirements, store such copies and derivative works in an archival format (e.g. tape backups), provided that the information will remain Confidential as long as it is retained.

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* * * * *

Thank you for this opportunity to offer our services. Please feel free to contact us at any time if you have any questions or require additional information. We look forward to hearing from you soon.

Sincerely,

Georg S. Krammer
Managing Director, Practice Operations & Hub Leader
510.658.5633 | [email protected]
Erik Smetana
Managing Director & National Practice Leader
314.494.4849 | [email protected]

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Appendix 1: Publications & Conference Presentations

Over the past 36 months, your Gallagher Public Sector, Community & Education consultants have actively contributed to the discourse through a variety of publications and conference presentations. These efforts underscore our commitment to thought leadership and our dedication to advancing industry practices. This section highlights our key publications and presentations, showcasing our expertise and the value we bring to our clients and partners.

Gallagher - Total Rewards and Trends in Higher Education Arthur J. Gallagher & Co. | February 2026
CALPELRA Conference
California Public Employers Labor Relations Association | September 2025 VAPSHRA Conference
Virginia Public Sector HR Association | September 2025
NCASG Conference
National Compensation Association of State Governments | September 2025 K-12 Emerging Trends & Risks for this School Year (Webinar) Arthur J. Gallagher & Co. | July 23, 2025
Navigating What’s Next: Revenue, Risk, and the Future of College Athletics (Webinar) Arthur J. Gallagher & Co. | May 8, 2025
FMLA Bootcamp: Leave Management Trends, Paid Time Off & Sick Banks (Webinar) myBenefits Channel | April 24, 2025
How Student-Athlete Pay Can Boost Students, Sports, and Institutional Success Arthur J. Gallagher & Co. - News & Insights | February 26, 2025 Shaping the Journey to Fair Pay for Student Athletes
Arthur J. Gallagher & Co. - News & Insights · Jan 15, 2025 Competitive Compensation Structures for Higher Ed Institutions and Systems CUPA-HR presentation | September 2024
Public Sector: Trends in Compensation & HR
Public Sector HR Association (PSHRA) - Virginia Chapter - State Conference | September 24, 2024 How a Compensation Philosophy Can Boost Employee Engagement in the Public Sector Arthur J. Gallagher & Co. - News & Insights Jul 2, 2024 Driving Public Sector Excellence: The Power of Job Architecture and Career Frameworks Arthur J. Gallagher & Co. - News & Insights | May 2, 2024 Promoting Excellence and Pay Equity: The Benefits of Merit Pay in Higher Education Arthur J. Gallagher & Co. - News & Insights·| April 8, 2024 Recruitment and Retention Opportunities within the Public Sector & Public Safety National Association of Police Organizations - Retirement & Benefits Symposium | January 29, 2024 How a Coaching Leadership Style Unleashes Human Potential at Work TalentCulture | Jan 16, 2024
Does Your HR Strategy Leverage Organizational Competencies TalentCulture | June 23, 2023
Workforce and Succession Planning Can Help Stem Higher Education Employee Turnover Arthur J. Gallagher & Co. - News & Insights · May 15, 2023 Looking Beyond the "Great Resignation" and Planning for a Great Future International Public Management Association for Human Resources (IPMA-HR) | September 27, 2022 Leverage Compensation Strategies to Attract and Retain Top Public Talent (Conference Presentation) IPMA-HR Central Region Conference, ICMA
Leverage a Holistic People Strategy to Help Higher Education Employers Face the Future with Confidence Arthur J. Gallagher & Co. - News & Insights | July 15, 2022 Prepare Now for FLSA Rule Changes Coming Soon
Arthur J. Gallagher & Co. - News & Insights | March 15, 2022

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Appendix 2: FLSA Compliance Methodology

Our 7-Point FLSA Compliance Methodology provides a structured, defensible approach to determining the appropriate exemption status of each position within your organization. This systematic framework goes beyond basic salary thresholds to ensure proper classification according to the most current Department of Labor regulations and case law interpretations.

1. Salary Basis Assessment
• Evaluation of compensation structure against current FLSA minimum salary requirements • Analysis of pay practices for compliance with salary basis test requirements • Review of compensation delivery methods and frequency • Assessment of permissible and impermissible deductions • Identification of salary basis vulnerabilities and remediation recommendations

2. Primary Duty Analysis
• Quantitative time allocation analysis across job functions • Relative importance assessment of exempt vs. non-exempt functions • Freedom from direct supervision evaluation
• Comparative wage differential analysis between positions • Documentation of primary duty determination rationale

3. Discretion & Independent Judgment Evaluation
• Assessment against standardized regulatory factors for independent judgment • Analysis of authority to formulate, affect, interpret, or implement policies/practices • Documentation of decision-making authority and constraints • Evaluation of consequences of decisions and recommendations • Comparison against DOL examples and precedents for similar positions as appropriate

4. Exemption-Specific Testing
• Targeted assessment against relevant exemption criteria:
‒ Executive exemption: supervision, hiring/firing authority analysis ‒ Administrative exemption: administrative vs. production work distinction ‒ Professional exemption: specialized education/expertise requirements ‒ Computer professional: systems analysis and programming function review ‒ Outside sales: customer location and sales activity documentation • Application of relevant regulatory interpretations and case law precedents

5. Industry-Specific Considerations
• Application of industry-specific exemptions and requirements • Analysis of specialized rules for educational institutions, government entities, healthcare, etc. • Review of collective bargaining implications, if applicable • Assessment of state-specific requirements that exceed federal standards • Documentation of industry-specific compliance rationale

6. Documentation Alignment
• Job description language assessment for exemption supportability • Identification of documentation vulnerabilities
• Development of compliant descriptive language
• Creation of audit trail documenting exemption determination process • Alignment of job documentation with actual duties performed

7. Risk Assessment & Mitigation Planning
• Comprehensive evaluation of misclassification risk by position • Financial impact analysis of potential misclassification • Prioritization of positions requiring classification changes • Development of implementation timeline for required changes • Creation of monitoring protocols for ongoing compliance

This methodology ensures that all exemption determinations are made systematically, consistently, and in accordance with current regulatory requirements. Our approach has been validated through successful implementation with hundreds of clients and has withstood scrutiny in DOL audits and legal challenges
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Appendix 3: Job Description Review & Analysis
Process

Systematic evaluation of job descriptions through our 15-point documentation checklist, assessing critical elements including essential functions, ADA compliance language, FLSA classification support, and competency requirements.

1. Strategic Role Alignment
Validate that the role supports the institution’s mission, strategic priorities, and organizational structure.

2. Position Title Benchmarking
Assess title consistency with internal hierarchies and external market comparators.

3. Organizational Context
Clearly define reporting lines, supervisory scope, and cross-functional interfaces.

4. Essential Duties and Responsibilities
Articulate core functions using outcome-based language that reflects operational impact.

5. ADA-Compliant Language
Ensure inclusion of physical and cognitive requirements with appropriate accommodation language.

6. FLSA Classification Justification
Provide documented rationale for exempt/non-exempt status based on duties and salary thresholds.

7. Minimum Qualifications
Specify baseline education, experience, and certifications required for role entry.

8. Preferred Qualifications
Identify additional attributes that enhance performance or succession potential.

9. Competency Mapping
Align behavioral and technical competencies with institutional competency models.

10. Work Environment and Conditions
Describe physical demands, work setting, and any unique environmental factors.

11. Work Schedule Expectations
Clarify standard hours, flexibility, travel, and remote/hybrid eligibility.

12. Performance Metrics and KPIs
Define success measures and how performance will be evaluated.

13. Technology and Tools Utilized
List key systems, platforms, and tools essential to the role.

14. Review Cadence and Governance
Establish a schedule for periodic review and stakeholder accountability.

15. Documentation and Version Control
Maintain audit-ready records with version history and approval tracking.

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Appendix 4: Additional Services

We are confident we have provided our most cost-effective and best approach. We have included all products and services which are necessary to provide innovation as well as the functional capabilities proposed in our response. We take pride in our creativity and track record in developing innovative solutions to compensation and benefit issues. We spend considerable time and effort researching and exploring trends and technical issues to develop and test approaches not usually considered by other consulting firms that help inform innovative compensation program solutions.

While we will train the City in its use of the recommended compensation system to ensure the City is able to answer questions and maintain the system long-term. The following services are optional and may be provided in the future:

General Consulting and Strategic Advisory Services
Billed hourly, rate varies based on level of consulting required; dependent on scope of engagement may be billed on a fixed fee basis
Includes the provision of consulting and advisory services focused on areas of human resources, compensation and classification, and related areas. Typically conducted to help develop strategic and operational approaches, support leadership decision making, or to review and/or assess current approaches and processes (e.g., performance assessment, etc.) compensation decisions (e.g. review pay decision – not facilitate a review/study – for HR leader) as a neutral third-party.

Organizational Effectiveness Assessment
Billed on a fixed fee basis based on particulars of the study Includes a review and in-depth assessment of organizational practices, structures, and operational alignment, often across multiple working units, to determine opportunities for organizational design, operational and strategic priorities, modification of mission/vision and/or how the organization delivers on those items, and to identify opportunities that may increase effectiveness and efficiency.

Deliverables include a memorandum summarizing our findings, conclusions, and recommendations.

Span of Control Assessment
Billed on a fixed fee basis based on particulars of the study Includes a review and in-depth assessment of organizational spans and layers, often across multiple working units, to determine opportunities for organizational redesign, modification of degrees of separation to senior leadership, and to identify opportunities that may increase effectiveness and efficiency. Deliverables include a memorandum summarizing our findings, conclusions, and recommendations.

Reclassification Review
Billed per title
Includes a review of job information through analysis of existing or new job description or Position Description Questionnaire, follow- up with HR, supervisor, or employee as appropriate to ensure understanding, and then development of memo recommendation.

Deliverables include a memorandum summarizing our findings, conclusions, and recommendations.

Job Description Development
Billed per title
Leveraging an updated Position Description Questionnaire, Gallagher confirms the need of creation of new classification, and confirmation with client, and writing of new classification.

Market pricing
Billed per title
Client provides job information in current or new job description, Position Description Questionnaire, and Gallagher collects market data from published survey ($400) and develops market pricing worksheets and memo on the process. If the client needs market data from the local market (like custom survey), Gallagher will research or conduct individual survey, and collect market data from published survey sources to develop the market pricing worksheet and a detailed memo on the process.

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Annual Adjustments and Trend Data
Billed per scope of request
Collection of market salary trend data from published survey sources or local market trend data with development of a memo on process and recommendations associated to any structural adjustments.

Executive Compensation Study (Public Sector, Higher Education, Non-Healthcare NPOs) Billed on a fixed fee basis based on particulars of the study Comprehensive review of executive compensation and perquisites to facilitate compensation committee decision-making and confirm reasonability of pay packages. This may include but is not limited to research and analysis of market data, industry data (IPEDs, 990, etc.), and others to review or recommend a going-forward approach for affected executives. This type of study is recommended as an annual study.

Pay Equity Study
Billed on a fixed fee basis based on particulars of the study Comprehensive review, but not limited to actions including, performing a series of statistical tests to determine if there are any pay differences between gender and protected groups that are statistically significant. We will determine whether these differences can be explained by a factor other than gender, race, or age. Statistical analyses will be performed in accordance with standard, professionally accepted methods and those methods that are recognized by the Equal Employment Opportunity Commission (EEOC). Deliverables typically include general pay breakdowns to assess the pay levels and representation for each breakout identified, perform statistical analysis to identify systemic issues, and provide detailed comparisons where necessary. This type of study is recommended as a triennial study.

Performance Management/Assessment Study
Billed on a fixed fee basis based on particulars of the study Includes the review of existing programs and approaches, stakeholder feedback collection, development of tools and resources and recommendations, and as appropriate custom peer surveying to identify and leverage best practices across region, industry (e.g. higher education), peer cohorts, role type that are supportive of the strategic and operational imperatives of the client to support employee engagement, performance management, and culture. This type of study is recommended as necessary, based on the particulars and needs of the client.

Compensation and Classification Audit
Billed on a fixed fee basis based on particulars of the study An external review of current market data collection, data sources, job matches, and salary structures. Audit delivery will validate existing processes or result in recommended alternative approaches leveraging the available data. This type of study is recommended as necessary, based on particulars and needs of the client, often coinciding with internal structure changes or revisions.

Change Management
Billed on a fixed fee basis based on particulars of the study An assessment of current change management practices and communications approaches related to organizational change to identify opportunities for enhancement, additionally as appropriate to the organizational need, training related to managing and facilitating organizational change and the development of communications tools and resources to support change may be developed and delivered to better ensure success and revised internal practices.

Leadership Search Services
Billed on a fixed fee basis based on particulars of the search Offer both full-cycle and partial-cycle executive search services, as well as recruitment for mid-management and staff-level positions. Our approach emphasizes understanding each client’s organizational culture, leadership needs, and community context to deliver high-quality candidate pools. Services include recruitment strategy development, targeted marketing and outreach, candidate sourcing, screening, interview coordination, and support through final selection, negotiation, and onboarding. The firm places a strong focus on diversity, equity, and inclusion, using bias-reducing tools, data-informed sourcing strategies, and partnerships with minority-based professional associations..

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Appendix 5: Sample Classification Study

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KOFF & ASSOCIATES

KARI MERCER
Senior Consultant

2835 Seventh Street
Berkeley, CA 94710
www.KoffAssociates.com

[email protected]
Tel: 510.470.7413
Fax: 510.652.5633
February, 2018
Final Report
Classification Study of One Senior
Project Manager in the Community &
Economic Development Department

City of Anaheim
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Classification Study of Senior Project Manager
Final Report
City of Anaheim

Table of Contents
EXECUTIVE SUMMARY ....................................................................................................... 1 Background .................................................................................................................... 1 CLASSIFICATION FINDINGS AND RECOMMENDATIONS ............................................... 1 Findings ............................................................................................................................ 1 Recommendation ......................................................................................................... 3 CONCLUSION..................................................................................................................... 3

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Classification Study of Senior Project Manager
Final Report
City of Anaheim

1 EXECUTIVE SUMMARY
Background
In December, 2017, the City of Anaheim (City) contracted with Koff & Associates (K&A) to conduct a classification study of the Senior Project Manager position encumbered by Andy Nogal allocated to the Community and Economic Development Department.

All classification findings and recommendations for this position are included in this report.

This position review process was precipitated by the incumbent’ s assertion that the preponderance of his duties and responsibilities are not aligned with the current classification allocation, and therefore the City requested that the position be studied.

The goal of the study was to:
 Obtain detailed information about the position encumbered by Mr. Andy Nogal through a variety of techniques, including a written Job Analysis Questionnaire as well as interviews with the incumbent and his supervisors;
 Analyze the work assigned to the position to identify the major duties and responsibilities;  Analyze the City’s current description for the Senior Project Manager classification; and  Make a recommendation regarding the appropriateness of the current classification allocation of the position relative to the duties performed by the incumbent.

CLASSIFICATION FINDINGS AND RECOMMENDATIONS
Findings
When positions are classified, the focus is on assigned job duties and the job -related requirements for successful performance, not on individual employee capabilities or volume of work performed. Positions are thus evaluated and classified on the basis o f such factors as the nature and level of work performed, the complexity of the work, the authority delegated to make decisions and take action, the responsibility for the work of others and/or for budget expenditures, contacts with others (both inside and outside of the organization), the impact of the position on the organization, and the knowledge, skills, and abilities required to perform the work. Narrative on some of these factors for the position is presented below.  Major duties and responsibilities of the position (as detailed in the Job Analysis Questionnaire completed by the incumbent):
• Program administration (4 5% of time) – Mr. Nogal reports performing duties related to the administration of the affordable housing program totaling forty five percent (45%) of time worked. These duties include reviewing development plans 65 65

Classification Study of Senior Project Manager
Final Report
City of Anaheim

2 and proposals and making recommendations to appropriate committees and commissions related thereto; analysis of projects for development including environmental reports and implementing alternatives when appropriate and necessary; identifying financial resources for affordable housing development projects; monitoring legislation relative to the area of assignment and its impact on development projects and overall program activities; and monitoring compliance with affordability rules and regulations for completed projects. The incumbent has overall programmatic responsibility ensuring compliance with City initiatives and ordinances as well as state and federal rules and guidelines. • Project management (7% of time) – The incumbent performs project management duties including managing budgets, scopes of work, and schedules for projects as well as coordinating projects with other City departments. • Third-party coordination and management (23% of time) – Mr. Nogal negotiates and implements terms and conditions of contract agreements and monitors the work and performance of third-party contractors and service providers to ensure compliance with negotiated contract provisions and project specifications as well as compliance with federal, state, and local laws and rules. • Stakeholder communication and public outreach (14% of time) – The incumbent performs a variety of duties related to commun icating information about the affordable housing program with stakeholders including governing bodies, developers, investors, other agencies, and the general public. He develops and conducts presentations; attends community meetings; participates in publi c speaking engagements related to the operational and financial aspects of the program; responds to requests for information; investigates complaints and takes corrective action when necessary; and prepares reports for governing bodies, City staff, and outside organizations.
• Administrative duties (11% of time) – Mr. Nogal performs a variety of duties related to the general administration of the program as well as in support of the department including participating in the development and administration of assigned department budgets; collaborating with other City staff on revisions to City ordinances, policies, and procedures; and attending professional conferences and workshops.
 Decision making – The incumbent’s duties require that he independently make decisions regarding all aspects of the operations of the program consi stent with department policies and procedures as well as f ederal, state, and lo cal laws, ordinances, and codes which govern the work. The work requires that the incumbent take initiative to stay abreast of new and emerging legislation and revisions to reg ulatory requirements that may impact the operations of the program, division, and department and to make recommendations related thereto.
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Classification Study of Senior Project Manager
Final Report
City of Anaheim

3  Contacts – The position has contacts internally with coworkers, City employees, and City management and executive staff. Externally, the incumbent has contact with contractors, third-party service providers, other agencies, developers, investors, and the general public.

Recommendation
It is our assessment that the duties and responsibilities of the position encumbered by Mr. Nogal are outside of the scope of his current classification.

A large percentage of Mr. Nogal’ s time is spent on overarching program administration versus individual project management. He has responsibility for the daily operation of the affordable housing program including the strategic planning of program projects, monitoring program procedures to ensure compliance with pertinent laws, and administering the program budget.

He has responsibility for reporting on program activities and project progress to various governing bodies including the City Council and federal and state agencies as well as providing a high level of st aff assistance to departmental management and executive staff relative to program operations. The complex nature of the work he performs as well as the overall programmatic responsibility of the position is beyond the scope of Senior Project Manager, and it is our recommendation that he be reclassified to Community Investment Manager.

CONCLUSION
This Final Report presents the process, methodologies , and findings with respect to the Senior Project Manager position allocated to the Community and Economic Development Department.

We want to thank the City and its staff for their cooperation and participation in study activities to ensure the study is a success.

Respectfully submitted by,
Koff & Associates

Kari Mercer
Senior Consultant

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Appendix 6: Sample Compensation Study

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Proprietary & Confidential Information
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Contents
Executive Summary ...................................................................................................................................... 4 Background ............................................................................................................................................... 4 Summary of Findings ................................................................................................................................. 4 Study Process ............................................................................................................................................... 4 Benchmark Classifications ........................................................................................................................ 4 Comparator Agencies ................................................................................................................................ 7 Salary and Benefits Data ........................................................................................................................... 8 Data Collection .......................................................................................................................................... 9 Matching Methodology .............................................................................................................................. 9 Data Spreadsheets .................................................................................................................................. 10 Market Compensation Findings .................................................................................................................. 10 Base Salary ............................................................................................................................................. 13 Total Compensation ................................................................................................................................ 14 Internal Salary Relationships ...................................................................................................................... 14 Compensation Plan Design ......................................................................................................................... 15 Range Structure Design and Management ............................................................................................. 15 Recommended Design ............................................................................................................................ 16 Implementation Options ........................................................................................................................... 16 Using the Market Data as a Tool ................................................................................................................. 17

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List of Tables
Table 1. Benchmark Classification ................................................................................................................ 5 Table 2. Comparator Agencies ..................................................................................................................... 8 Table 3. Market Compensation Results Summary ...................................................................................... 11 Table 4. Three-Year Implementation Proposal ........................................................................................... 16

Appendices
Appendix I: Results Summary
Appendix II: Market Compensation Findings
Appendix III: Proposed Salary Range Schedule
Appendix IV: Salary Range Placement Recommendations
Appendix V: Additional Benefits

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Executive Summary
Background
During the months of January through March 2024, Gallagher conducted a comprehensive Total Compensation Study for the County Transit District. All compensation findings and recommendations are presented in this report.

This compensation review process was precipitated by:
• The concern of the Board of Directors and management that employees should be compensated on a fair and competitive basis that allows the District to recruit and retain a high-quality staff; • The desire to have a compensation plan that can meet the needs of the District and its unique structure, i.e., the District, which is governed by a Joint Powers Board, consists of three distinct organizations:
and the County Transportation Authority, all of whom share the same salary resolution; and
• The desire to ensure that internal relationships of salaries are based upon objective, non- quantitative evaluation factors, resulting in equity across the District; more specifically, the District’s past practices of reliance on its factor evaluation plan for establishing salaries, rather than systematically evaluating the market trends for jobs through market surveys.

The goals of the compensation study are to assist the District in developing a competitive pay and benefit plan, which is based upon market data, and to ensure that the plan is fiscally responsible and meets the needs of the District with regards to recruitment and retention of qualified staff.

Summary of Findings
This report summarizes the study methodology, analytical tools, and the total compensation (salary and benefits) survey findings. The results of the total compensation study showed:
• The District’s base salaries, overall, in comparison to the market median are 1.2% above the market. • The District’s total compensation, overall, in comparison to the market median is -3.3% below the market. • While the District’s benefits package puts the District in a less competitive posit ion compared to the market , Gallagher recommends that salary decisions should be based on base salary market results versus total compensation, and to address separately any shortfalls in its benefits program. • Gallagher considers a classification falling within 5% of the market median to be competitive.

Study Process
Benchmark Classifications
The study included all recommended classifications resulting from the classification study which resulted in a total of 148 new classifications. One of the first steps in any study is to identify benchmark classifications; benchmark classifications are those which the District currently has, and which it is anticipated would be found in other agencies; ideally, they would also have internal relationships with other District classes since benchmark classifications are used as a means of anchoring the District’s overall compensation plan to the market . To ensure Gallagher was able to identify comprehensive trends for how these jobs are paid in the market, 117 classifications (80% of the new classification plan) were selected to be benchmarks. Other classifications not surveyed, or those with insufficient data in the market, are still included in the compensation plan through alignment with benchmark classifications using internal equity principles.
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• PERS Formula: The service retirement formula for each agency’s PEPRA plan. • Employee Cost Sharing: Any portion of the employer’s contribution rate employees are paying (through payroll deductions). Of note, none of the comparator agencies require this. • Social Security: If an employer participates in Social Security, then the employer contribution of 6.2% of the base salary up to the federally determined maximum contribution of $759.50 per month was reported.

3. Deferred Compensation
Deferred compensation contributions provided to all employees of a classification with or without requiring the employee to make a contribution is reported.

4. Insurances
The employer paid premiums for an employee with family coverage was reported. The employer paid insurances included:
• Cafeteria/Flexible Benefit Plan
• Medical
• Dental
• Vision
• Other

5. Leaves
Other than sick leave, which is usage-based, the number of hours off for which the employer is obligated. All hours have been translated into direct salary costs.
• Vacation: The number of paid time off (or vacation) hours available to all employees who have completed five years of employment.
• Holidays: The number of holiday hours (including floating hours) available to employees. • Administrative: Administrative (or management) leave is normally the number of paid leave hours available to Fair Labor Standards Act (“FLSA”) exempt and/or management to reward for extraordinary effort (in lieu of overtime). This leave category may also include personal leave which may be available to augment vacation or other time off.

All of the benefit elements are those benefits which are provided to all employees in the classification. As such, they represent an ongoing cost for which an agency must budget . Other benefit costs, such as sick leave, tuition reimbursement, and reimbursable mileage are usage-based and cannot be quantified on an individual employee basis; therefore, those benefits are not included in the total compensation calculation.

Data Collection
Data was collected during the months of January 2024 – March 2024, through comparator agency websites, conversations with human resources, accounting, and/or finance personnel, and careful review of agency documentation such as classification descriptions, memoranda of understanding, organization charts, and other documents.

Matching Methodology
Gallagher believes that the data collection step is the most critical for maintaining the overall credibility of any study and relied on the District’s classification study findings as the foundation for comparison.

When Gallagher researches and collects data from the comparator agencies to identify possible matches for each of the benchmark classifications, there is an assumption that comparable matches may not be made that are 100% equivalent to the classifications at the District. Therefore, Gallagher does not match based upon job titles, which can often be misleading, but rather analyze class descriptions before a comparable match is determined. 78 78

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Gallagher’s methodology is to analyze each class description and the whole position by evaluating factors such as:
• Decision making/judgement
• Difficulty and complexity of work
• Supervisory responsibilities
• Non-supervisory responsibilities
• Minimum qualifications
• Working conditions/risk factors
• Contacts
In order for a match to be included, Gallagher requires that a classification’s “likeness” be at approximately 70% of the matched classification.

When an appropriate match is not identified for one classification, Gallagher often use s “ hybrids” which can be functional or represent a span in scope of responsibility. A functional hybrid means that the job of one classification at the District is performed by two or more classifications at a comparator agency. A “hybrid” representing a span in scope means that the comparator agency has one class that is “bigger” in scope and responsibility and one class that is “smaller,” where the District’s class falls in the middle.

If an appropriate match could not be found, then no match was reported as a non-comparable (N/C).

Data Spreadsheets
For each benchmark classification, there are three information pages:
• Top Monthly Base Salary and Total Compensation Data (2 sheets per benchmark) ­ One sheet is sorted by top monthly
­ One sheet is sorted by total monthly
• Benefit Detail (Monthly Equivalent Values)
The average (mean) and median (midpoint) of the comparator agencies are reported on the top monthly salary and total compensation data spreadsheets . The District’s current salary for the classification is then reported as a percentage above or below the market average and median data points in the Summary Section of each data sheet.

The mean is the sum of the comparator agencies’ salaries/total compensation divided by the number of matches. The median is the midpoint of all data with 50% of data points below and 50% of data points above.

When using survey data to make salary range recommendations and adjustments, Gallagher recommends using the median, rather than the mean, because the median is not skewed by extremely high or low salary values.

In order to calculate the mean and median, Gallagher requires that there be a minimum of four (4) comparator agencies with matching classifications to the benchmark classification. The reason for requiring a minimum of four matches is so that no one classification has undue influence on the calculations. Sufficient data was collected from the comparator agencies for 104 of the 117 benchmark classifications.

Market Compensation Findings
The following table represents a summary of the market top monthly (base) salary and total compensation (base salary plus benefits [retirement, insurance, leaves, and allowances]) findings from the 13- comparator market . For each benchmark classification, the number of matches (agencies with a comparable position) and percent above or below the top monthly salary market median and total compensation market median is listed. The table is organized in alphabetical order, consistent with the data sheets in Appendix II. 79 79

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Total Compensation
Total compensation market results show that 60 classifications are paid below the market median and 39 classifications are paid above the market median. Eighteen (18) classifications resulted in insufficient market data, i.e., we were not able to obtain job matches.
# of Classifications <5% 5-10% 10-15% 15-20% 20%+ Total Below the Market Median 20 19 4 7 10 60
Above the Market Median 20 13 4 0 2 39
Generally, a classification falling within 5% of the median is considered to be competitive in the labor market for salary survey purposes because of the differences in compensation policy, actual scope of work, and position requirements.

However, the District can adopt a different standard.

Overall, the differences between market base salaries and total compensation indicate that the District ’s benefits package puts the District at a less competitive advantage. Further analysis indicates that, on average, classifications are 1.2% above the market median for base salaries, while that figure changes to 3.3% below the market median for total compensation, which is a 4.5% difference (i.e., the District “loses” a 4.5% competitive advantage when taking the cost of benefits into consideration).

Internal Salary Relationships
Building from the salary levels established for identified benchmark classes, internal salary relationships should be developed and consistently applied in order to develop specific salary placements for all non- benchmarked classifications.

In the future, the District may need to utilize internal alignment practices if the number of staff grows and additional classifications are added or classifications change. While analyzing internal relationships, the same factors analyzed when comparing the District ’s classifications to the labor market are used when making internal salary alignment decisions.

In addition, the following are standard human resources practices that are commonly applied when making salary recommendations based upon internal relationships:
• A salary within 5% of the market average or median is considered to be competitive in the labor market for salary survey purposes because of the differences in compensation policy and actual scope of the position and its requirements. However, the District can adopt a closer standard. • Certain internal percentages are often applied. Those that are the most common are:
­ The differential between a trainee and experienced (or journey) class in a series (I/II or Trainee/Experienced) is generally 10%.
­ A lead or advanced journey-level (III or Senior-level) class is generally placed 10% above the journey-level. ­ A full supervisory class is normally placed at least 10% to 20% above the highest level supervised, depending upon the breadth and scope of supervision.
• When a market or internal equity adjustment is granted to one class in a series, the other classes in the series are also adjusted accordingly to maintain internal equity.

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consideration should be given to these alignments because they represent internal value of classifications within job families, as well as across the organization.

For the purposes of salary decisions, the market data from the survey should be utilized for all of the benchmarked classifications, and internal equity principles should be used to make the salary placement decisions for those classifications that were not benchmarked and for those benchmarks for which the market did not yield sufficient market data. For the non-benchmarked classifications, internal alignments with other classifications will need to be considered, either in the same class series or those classifications that have similar scope of work, level of responsibility, and “value” to the District . Where it is difficult to ascertain internal relationships due to unique qualifications and responsibilities, reliance can be placed on past internal relationships. It is important for District management to carefully review these internal relationships and determine if they are still appropriate given the current market data.

It is also important to analyze market data and internal relationships within each class series as well as across the organization, and make adjustments to salary range placements, as necessary, based on the needs of the organization.

The District may want to make internal equity adjustments or alignments, as it implements the compensation strategy.

This market survey is only a tool to be used by the District to determine market indexing and salary placements.

Compensation Plan Design
In reviewing the District’s pay plan, Gallagher examined applicable practices and policies, as well as the structure and design of the current pay system. The methodology included meetings with Human Resources to elicit feedback on their experiences and thoughts on the current compensation system design. Of note is the fact that the District currently uses a banded approach to placing jobs within the pay structure; the bands are tied to the District’s point factor evaluation system; classifications are evaluated and placed in the pay plan based on the number of points assigned to that classification from the factor evaluation process.

From a structural perspective:
• Four bands are more than 50% wide
• Twelve bands are 50% wide
• Five ranges have differentials from 9.3% to 14.5% between them ­ The remaining ranges have differentials of 10.6% between them.

Human Resources staff reported that employees can be dissatisfied when they are not able to achieve the reported maximum of the range and that they find themselves placing new hires at a higher point in the range, often the mid- point of the range or higher, to attract new talent, which can then impact current employees and create pay inequities.

Range Structure Design and Management
Range structures are designed to meet an organization’s policy and strategy on how it will deliver pay. This is generally set based on market rates for benchmark jobs, combined with a structured approach to internal alignment for non- benchmark classifications. Essentially, the range structure is the platform upon which all salary actions are implemented and recorded.

Ranges are not static – they are designed to move with market changes and should be flexible enough to support an organization’s strategy with respect to hiring practices, pay equity, and overall management of pay to the organization’s compensation philosophy and stated goals. Range structures can be built using a minimum, midpoint, maximum and/or a control point, with the control point being defined as the targeted market reference point (i.e., the market value of the job). In open ranges, movement throughout the range to the maximum is based on performance.

Ranges are typically designed “top down,” meaning that the top of the range is used to build down to the minimum of the range to achieve the width percentage; after that point, quartiles or other zones may be developed based upon 84 84

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Subsequent increases would be spaced on a similar schedule (at annual intervals) based upon the remaining disparity after each adjustment.

Please note that typically, for those classes that had a market disparity of 0 to 4.99%, we recommend a 0% increase in the first year and an adjustment in the second year. Depending upon the District’s financial situation, which will have to be reviewed before each further adjustment is made, all market disparity adjustments are intended to be completed by the third year. The District may also consider a similar implementation plan over a longer period of time, like a five- year implementation plan.

Another option is to move employees into the salary range that is recommended for each class based on this market study and to the point within the new range that is the same as their current compensation. If employees’ current salaries are significantly below market so that their current compensation falls below the bottom of the newly recommended range, then larger adjustments would be needed to move those employees at least to the bottom of the new salary range.

When classifications are over market, Gallagher typically recommends Y-rating employees whose current pay exceeds the maximum of the recommended range until the market numbers “catch up” with their current salary . To Y-rate an employee means to keep the employee’s salary frozen and to provide no salary increases (including no cost-of-living adjustments) until the employee’s current salary is within the recommended salary range. This will result in no immediate loss of income but will delay any future increases until the incumbent’s salary is within the salary range.

Other options to “freezing” a classification’s salary in place until the market catches up are:
• “Grandfathering” of salary ranges: This means that the salary range for the classification is adjusted down to what the market numbers are. However, current incumbents would continue being paid at the current rate of pay (which would put them outside of the new and adjusted salary range for the class) until they separate from employment with the District. Any new hires would be paid within the newly established salary range. • Single-incumbent classes: If a class only has one incumbent, an option would be to wait until the person separates from employment with the District and then adjust the salary range for the class according to the market. • Recent hires: Some employees who have recently been hired may still be at the lower end within their current salary range. So, even if the top of their current salary range is above market, the incumbents are currently still paid below the market maximum because they are not at the top of their current salary range. In this case, an immediate salary range adjustment could be made to bring the salary range within the market . This would bring the affected incumbents either to the top of the market range or very close to it, but they would not technically be Y-rated or lose any pay.

Another option, of course, is to actually reduce salaries down to the market . However, from an employee relations perspective this may not be a viable option.

Using the Market Data as a Tool
Gallagher would like to reiterate that this report and the findings are meant to be a tool for the District to create and implement an equitable compensation plan. Compensation strategies are designed to attract and retain excellent staff; however, financial realities and the District ’s expectations may also come into play when determining appropriate compensation philosophies and strategies. The collected data presented herein represents a market survey that will give the District an instrument to make future compensation decisions.

It has been a pleasure working with District on this critical project. Please do not hesitate to contact us if we can provide any additional information or clarification regarding this report. 86 86

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Respectfully submitted by,
Gallagher, Formerly Koff & Associates

Georg S. Krammer
Managing Director
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Appendix I

Results Summary

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Appendix II

Market Compensation Findings

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Market Compens
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April 2024
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