Coachella City Council
January 26, 2022

(760) 398-3502  www.coachella.org
AGENDA

CITY COUNCIL REGULAR MEETING

OF THE CITY OF COACHELLA

THE COUNCIL SITTING AS THE COACHELLA SANITARY DISTRICT,

COACHELLA FIRE PROTECTION DISTRICT, COACHELLA FINANCING AUTHORITY,

COACHELLA EDUCATIONAL AND GOVERNMENTAL ACCESS CABLE CHANNEL CORPORATION,

COACHELLA WATER AUTHORITY, AND SUCCESSOR AGENCY TO THE COACHELLA REDEVELOPMENT AGENCY January 26, 2022
6:00 PM Regular Meeting
Pursuant Assembly Bill 361,
along with the Governor’s State of Emergency Declaration issued on March 4, 2020, this meeting may be conducted via teleconference.

Note: There will be no-in person public access to the meeting location.

If you would like to attend the meeting via Zoom, here is the link:
https://us02web.zoom.us/j/88457271898?pwd=REdzU1NoQmpVSFhWTDVaZ0VCekYxdz09 Or One tap mobile : 16699006833,,88457271898#,,,,*606140# Or Telephone:

US: +1 669 900 6833
Webinar ID: 884 5727 1898
Passcode: 606140
Spanish: El idioma español está disponible en Zoom seleccionado la opción en la parte de abajo de la pantalla
 Public comments may be received either via email, telephonically, or via Zoom with a limit of 250 words, or three minutes:
o In Real Time:

If participating in real time via Zoom or phone, during the Public Comment Period, use the “raise hand” function on your computer, or when using a phone, participants can raise their hand by pressing *9 on the keypad.
o In Writing:

Written comments may be submitted to the City Council electronically via email to [email protected]. Transmittal prior to the start of the meeting is required. All written comments received will be forwarded to the City Council and entered into the record. o If you wish, you may leave a message at (760) 262-6240 before 5:30 p.m. on the day of the meeting.  The live stream of the meeting may be viewed online by accessing the city's website at www.coachella.org, and clicking on the "Watch Council Meetings" tab located on the home page, and then clicking on the "live" button.

Agenda CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA January 26, 2022

CALL TO ORDER:

ROLL CALL:

VIRTUAL PUBLIC MEETINGS:

1. Resolution No. 2022-04, a Resolution to Continue Fully or Partially Virtual Public Meetings (AB 361) APPROVAL OF AGENDA:
“At this time the Council/ Board/Corporation/Authority may announce any items being pulled from the Agenda or continued to another date or request the moving of an item on the agenda” PLEDGE OF ALLEGIANCE:

APPROVAL OF MINUTES:

2. Regular Meeting Minutes of December 8, 2021, of the City Council, Coachella Fire Protection District, Coachella Sanitary District, Coachella Financing Authority, Coachella Educational and Governmental Access Cable Corporation, Coachella Water Authority, and Successor Agency to the Coachella Redevelopment Agency.

3. Special Meeting Minutes of a Coachella City Council Study Session held on December 13, 2021.

PROCLAMATIONS/PRESENTATIONS:

4. Presentation on Coronavirus (COVID-19) Response Efforts

5. Recognizing former Coachella Assistant Chief of Police, Lieutenant Andres "Andy" Martinez

6. Congratulating Lee Espinoza for his Induction into the West Coast Boxing Hall of Fame

7. Presentation from Desert Interfaith Council (DIC) on their Upcoming Salton Sea Prayer Vigil

8. Landscape and Lighting Maintenance Districts (LLMD) Update

9. Presentation by Coachella Valley Public Cemetery District

10. Villa Verde Apartments Project Update Presentation

11. The Living Desert Signs of Nature Project
WRITTEN COMMUNICATIONS:

Agenda CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA January 26, 2022

CONSENT CALENDAR:
(It is recommended that Consent Items be acted upon simultaneously unless separate discussion and/or action is requested by a Council Member or member of the audience.)

12. Voucher Listing — EFT's/Utility Billing Refunds/FY 2021-22 Expenditures as of January 26, 2022, $4,969,620.39.

13. Adopt Ordinance No. 1191 updating the City’s Purchasing & Procurement Ordinance (Second Reading) and Resolution No. 2022-03 setting purchasing and competitive procurement thresholds

14. Resolution No. 2022-02, Implementation of a Fiscal Reserve Policy

15. Resolution No. 2022-06, Initiating the Formation of Landscaping and Lighting Maintenance District No.39 (Sevilla–Tract 38084) (“LLMD 39”); and Resolution No. 2022-07, Declaring Intention to Form, Levy and Collect Assessments Commencing in Fiscal Year 2022/2023, preliminary approval of Engineer’s Report and Setting Time and Place for Public Hearing to Conduct Property Owner Protest Ballot Proceedings

16. Adopt Resolution No. 2022-08 Authorizing the City of Coachella to be a Co-Applicant in the Grant Application Desert Recreation District will submit under the Regional Park Program to the California Department of Parks and Recreation Office of Grants and Local Services

17. Resolution No. 2022-12, Conditional Loan Commitment for CFD 2005-1 Special Assessments for the Coachella Village Apartments Housing Development

18. Adopt Resolution No. 2022-13 Authorizing the City Manager to Submit an Application to CalRecycle to Assist with the Implementation of Regulation Requirements Associated with SB 1383

19. Resolution No. WA-2022-02, a Resolution of the Board of Directors of the Coachella Water Authority Authorizing the Grant Application, Acceptance, and Execution for the Groundwater Well Project

20. Approve professional services agreement between City of Coachella and the Greater Coachella Valley Chamber of Commerce for fiscal year 2021-2022.

21. Investment Report – October 2021

22. Amendment to Committee Member assignment to the Imperial Irrigation District (IID) Energy Consumers Advisory Committee (ECAC) to Appoint City Engineer Andrew Simmons.

23. Authorize facility use permit fee waiver for Coachella Valley Community Tax Services.

24. Authorize the City Manager to execute Professional Services Agreements with RG Planning Consultants and Terra Nova Planning & Research for Professional Planning Consultant Services.

25. Quarterly Reports - Second Quarter FY 2021-2022

Agenda CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA January 26, 2022

NEW BUSINESS CALENDAR (LEGISLATIVE AND ADMINISTRATIVE):

26. Introduce by first reading Ordinance No. 1192 Amending Chapter 8.44 of the City Municipal Code regarding Solid Waste Collection.

27. Adopt Resolution No. 2022-01 receiving and filing the City of Coachella Development Impact Fees Annual Report 2021 pursuant to Government Code Sections 66000-66008.

28. Adopt Resolution Nos. WA-2022-01 and 2022-05 approving the form and authorizing the execution of an official statement and other agreements for the issuance of water revenue refunding bonds and approving additional actions related thereto

29. Construction Contract with Desert Concepts Construction Inc. in the amount of $3,083,148.50 and 10% for contingency for the construction of the Pueblo Viejo Sustainable Transportation Project, City Project ST130.

30. Approve Lease Agreement with Coachella General for the City owned former Chamber of Commerce Building located at 1258 Sixth Street in the Downtown Pueblo Viejo District

31. Authorize City Manager to execute a letter agreement with Zambelli Fireworks for a special event pyrotechnic program for the City’s 2022 Fourth of July program, in the amount not to exceed $43,000.

PUBLIC HEARING CALENDAR (QUASI-JUDICIAL):

32. Resolution Nos. 2022-10 and 2022-11, Fountainhead Plaza:

Tentative Parcel Map 37940 (Revision), CUP 321 (modification), and AR 20-03 (modification) to develop

3.1 acres of an 8.25 acre property for a 2,028 sq. ft. standalone Starbucks drive thru building at the northeast corner of Cesar Chavez Street and First Street (APN# 778-020-007 and 778-010-017). Applicant:

Coachella Retail Realty Associates, LP.

SUCCESSOR AGENCY:

33. Resolution No. SA-2022-01, Approving the Recognized Obligation Payment Schedule (ROPS) 22-23 for the Successor Agency to the former Coachella Redevelopment Agency.

PUBLIC COMMENTS (NON-AGENDA ITEMS):

The public may address the City Council/Board/Corporation/ Authority on any item of interest to the public that is not on the agenda but is in the subject matter jurisdiction thereof. Please limit your comments to three (3) minutes.

REPORTS AND REQUESTS:

Council Comments/Report of Miscellaneous Committees.

City Manager’s Comments.

Agenda CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA January 26, 2022

ADJOURNMENT:

Complete Agenda Packets are available for public inspection on the City’s website www.coachella.org.

THIS MEETING IS ACCESSIBLE TO PERSONS WITH DISABILITIES

STAFF REPORT
1/26/2022
TO: Honorable Mayor and City Council Members
FROM: Dr. Gabriel Martin, City Manager
Best Best & Krieger, LLP, City Attorney
SUBJECT: Resolution No. 2022-04, a Resolution to Continue Fully or Partially Virtual Public Meetings (AB 361)
STAFF RECOMMENDATION:

It is recommended that the City Council adopt Resolution No. 2022-04 to continue fully or partially virtual public meetings.

BACKGROUND:

The Brown Act generally allows for teleconference or virtual meetings, provided that the physical locations of the council members joining by teleconference are posted on the agenda, that those locations are open to the public and that a quorum of the council members is located within the City. Newly enacted AB 361 provides an exception to these procedures in order to allow for fully virtual meetings during proclaimed emergencies, including the COVID-19 pandemic.

In March of 2020, Governor Newsom issued Executive Order N-29-20, which suspended portions of the Brown Act relating to teleconferencing, enabling fully virtual meetings without having to post the location of the council members attending virtually. Many cities and other public agencies have been holding public meeting using virtual platforms since this time. In June of 2021, Governor Newsom issued Executive Order N-08-21, which provided that the exceptions contained in EO N-29-20 would sunset on September 30, 2021.

On September 10, 2021, the Legislature adopted AB 361, which allows public agencies to hold fully virtual meetings under certain circumstances. Governor Newsom signed the bill into law on September 16, 2021. Because it contained an urgency provision, it took immediate effect. The Governor then suspended AB 361 until October 2, allowing a transition period from the prior Executive Order.

Under AB 361, cities can hold meetings without a public meeting space and without providing notice of the council members’ teleconference locations if there is a Governor-proclaimed state of emergency and either state or local officials are imposing or recommending measures to promote social distancing or the City Council determines that meeting in person will be unsafe for attendees.

If the virtual meeting is due to social distancing recommendations, the City Council does not have

Item 1.
to make any findings at its first meeting under AB 361. However, to continue meeting virtually, the City Council must find that state or local officials still at least recommend measure to promote social distancing. The findings must be made within 30 days of the first meeting and every thirty days thereafter.

DISCUSSION/ANALYSIS:

On March 4th, 2020, the Governor proclaimed a state of emergency due to the COVID-19 pandemic. The state of emergency remains in effect as of the publication of this report.

Virtual meetings are currently allowed under AB 361 because state and local officials are continuing to recommend measures to promote social distancing. In the case of the pandemic, the requisite standards for holding virtual meetings are low. The City Council would only have to find that any state or local official is recommending measures to promote social distancing. Under the plain language of the statute, there does not have to be an order requiring social distancing, and the recommendation only needs to come from a state or local official. Nothing in the bill requires that the recommendation be a formal recommendation of a local health officer or in any sort of formal guideline.

Under AB 361, the “local agency” – which the Brown Act defines as the City, not the City Council - may utilize virtual meetings if the “legislative body” makes the required findings. As defined in the Brown Act, a “legislative body” includes both the City Council and all committees and commissions. Because the City Council is the most appropriate board to make findings and policy decisions on behalf of the City, the proposed resolution contains a two-pronged approached: It provides that all commissions and committees shall be authorized to utilize virtual meeting procedures for 30 days, and authorizes each individual commission or committee to make findings in support of virtual meetings if the City Council has not renewed or terminated the resolution.

Thus, the proposed resolution provides the City Council with the flexibility to allow its commissions and committees to host virtual meetings, while still maintain the City Council’s jurisdiction to require in-person meetings as warranted.

AB 361 allows the use of fully virtual meetings under the foregoing conditions, but it does not prohibit hybrid meetings. By adopting the proposed resolution, and continuing to renew it as conditions warrant, the City Council and any subordinate boards are not precluded from holding meetings that have some traditional components and some virtual or telephonic components. The City Council (and other City boards) may hold meetings where some members join in the Council Chambers and some members join virtually. The City Council may also continue to allow both live and virtual public comments, together with reduced capacity in the Chambers as conditions warrant. For any hybrid meetings, AB 361 requires that members of the public be able to make live public comments directly to the Council or other board using telephonic or electronic means and that the agenda identify the means for making public comments.

As noted above, by adopting the proposed Resolution, the City Council is not prohibited from returning to fully in-person meetings. The Resolution is intended to provide the option to utilize the AB 361 procedures in lieu of the Brown Act’s standard teleconferencing requirements. At future City Council meetings, a consent calendar item will be placed on each agenda to reconsider

Item 1.
and potentially renew the Resolution.

FISCAL IMPACT:

None.

ATTACHMENT:

Resolution No. 2022-04

Item 1.
81211.00100\34422055.2
RESOLUTION NO. 2022-04

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COACHELLA, CALIFORNIA, MAKING FINDINGS AND
DETERMINATIONS UNDER AB 361 FOR CONTINUED VIRTUAL

MEETINGS
WHEREAS, the Ralph M. Brown Act (Gov. Code § 54950 et seq.) generally requires local agencies meeting via teleconference, including through other virtual or electronic means, to provide public access at each location in which members of the legislative body are teleconferencing; and
WHEREAS, the Legislature recently enacted Assembly Bill 361 (AB 361), which amended Government Code section 54953 to allow local agencies to meet fully virtually during a proclaimed state of emergency if state or local officials have imposed or recommended measures to promote social distancing; and
WHEREAS, the City Council finds that the Governor issued a proclamation declaring a state of emergency on March 4, 2020 due to the COVID-19 pandemic, pursuant to section 8625 of the California Emergency Services Act; and
WHEREAS, the City Council has reconsidered the circumstances of the state of emergency and finds that state or local officials continue to recommend measures to promote social distancing; and
WHEREAS, the City Council desires that the City of Coachella, including all commissions, committees, and other Brown Act bodies shall continue to hold virtual meetings pursuant to AB 361 and Government Code section 54953(e).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COACHELLA DOES HEREBY RESOLVE AND FIND AS FOLLOWS:

Section 1. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

Section 2. The City Council and all other commissions, committees or other Brown Act bodies of the City shall be authorized to continue to meet virtually in accordance with Government Code section 54953(e) and without compliance with section 54953(b)(3).

Section 3. This Resolution does not prevent or prohibit the City Council or any commission, committee or other Brown Act body of the City from holding hybrid meetings (containing both virtual and in-person components) or from meeting in-person, provided such meetings comply with AB 361 and with all state and local health orders. Commissions, committees and other Brown Act bodies shall comply with all rules established by the City Council and/or City Manager for attendance at meetings.

Section 4. The City Council shall take action to renew this Resolution every thirty days for as long as any state or local officials continue to recommend any measures to promote social

Item 1.
81211.00100\34422055.2
Resolution No. 2022-04

distancing, but the City Council may terminate the Resolution at any time. In the event that more than 30 days pass between regular City Council meetings, the City Council shall take action to renew this Resolution prior to taking any action or engaging in any deliberation or discussion in a virtual meeting; renewal of this Resolution may occur either at the beginning of the next regular meeting or at a special meeting called for such purposes. In the event this Resolution has lapsed, and the City Council has not terminated it, any commission, committee or other Brown Act board of the City shall be authorized to, and shall, make any required findings in order to meet virtually under AB 361.

Section 5. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council declares that the City Council would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

Section 6. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED and ADOPTED this 26
th day of January 2022.
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
___________________________________
Carlos Campos
City Attorney

Item 1.
81211.00100\34422055.2
Resolution No. 2022-04

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2022-04 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 26 th day of
January 2022, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Andrea J. Carranza, MMC
Deputy City Clerk

Item 1.

City Hall Council Chamber
1515 Sixth Street, Coachella, California
(760) 398-3502  www.coachella.org

MINUTES

CITY COUNCIL CLOSED SESSION AND

REGULAR MEETING

OF THE CITY OF COACHELLA

THE COUNCIL SITTING AS THE COACHELLA SANITARY DISTRICT,

COACHELLA FIRE PROTECTION DISTRICT, COACHELLA FINANCING AUTHORITY,

COACHELLA EDUCATIONAL AND GOVERNMENTAL ACCESS CABLE CHANNEL CORPORATION,

COACHELLA WATER AUTHORITY, AND SUCCESSOR AGENCY TO THE COACHELLA REDEVELOPMENT AGENCY December 08, 2021
5:00 PM Closed Session
6:00 PM Regular Meeting
CALL TO ORDER: - 5:00 P.M.

The Regular Meeting of the City Council of the City of Coachella was called to order at 5:08 p.m. by Mayor Hernandez.

ROLL CALL:

Present: Councilmember Beaman Jacinto (arrived at 6:04 p.m.), Councilmember Delgado (arrived at 5:35 p.m.), Councilmember Galarza, Mayor Pro Tem Gonzalez, and Mayor Hernandez City Treasurer Aviles, and City Clerk Zepeda

Absent: None.

Pursuant to Assembly Bill 361, along with the Governor’s State of Emergency Declaration issued on March 4, 2020, this meeting was conducted both in-person and via teleconference/electronically.

APPROVAL OF AGENDA:

City Manager Martin asked Council to continue Items 9 and 25, to the City Council Meeting of January 12, 2022.

Motion: To approve the agenda as amended.

Made by: Mayor Pro Tem Gonzalez
Seconded by: Councilmember Galarza
Approved: 3-0, by a unanimous voice vote
PUBLIC COMMENTS (CLOSED SESSION ITEMS):

None.

Item 2.

Minutes CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA December 08, 2021

ADJOURN TO CLOSED SESSION:

Council adjourned into Closed Session at 5:10 p.m. to discuss the following items:

Councilmember Delgado arrived at 5:35 p.m. during Closed Session.

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant Exposure to Litigation, Pursuant to Government Code Section 54956.9(d)(2)/(e)(1) One (1) potential case

2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of Litigation, Pursuant to Government Code Section 54956.9(d)(4) One (1) potential case

3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1)
In re: National Prescription Opiate Litigation
U.S. District Court, Case No. 1:17-CV-2804
RECONVENE REGULAR MEETING: - 6:00 P.M.

The City Council reconvened into open session at 6:00 p.m.

PLEDGE OF ALLEGIANCE:

The retiring City of Coachella employees present in the Council Chamber led the Pledge of Allegiance.

CLOSED SESSION ANNOUNCEMENTS:

City Attorney Campos stated that Council met in Closed Session, and direction was given, but no reportable action was taken.

APPROVAL OF MINUTES:

4. Special Meeting Minutes of a Coachella City Council Study Session held on November 8, 2021.

5. Regular Meeting Minutes of November 10, 2021, of the City Council, Coachella Fire Protection District, Coachella Sanitary District, Coachella Financing Authority, Coachella Educational and Governmental Access Cable Corporation, Coachella Water Authority, and Successor Agency to the Coachella Redevelopment Agency.

6. Special Meeting Minutes of a Coachella City Council Study Session held on November 15, 2021.

Motion: To approve the minutes as presented.

Made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Gonzalez
Approved: 4-0, by a unanimous voice vote

Item 2.

Minutes CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA December 08, 2021

COUNCIL REORGANIZATION:

7. Nomination for the Position of Mayor Pro Tem:

Motion: To nominate Josie Gonzalez to the position of Mayor Pro Tem Made by: Mayor Hernandez
Seconded by: Councilmember Galarza
Approved: 4-0, a unanimous voice vote
PROCLAMATIONS/PRESENTATIONS:

Councilmember Beaman Jacinto joined the meeting at 6:04 p.m. during Presentations.

8. Presentation on Coronavirus (COVID-19) Response Efforts

9. In place of the proclamation to congratulate Lee Espinoza for his induction into the West Coast Boxing Hall of Fame, as this item was continued to the next City Council Meeting, Mr. Espinoza presented to the City framed pictures of the recent event.

10. Recognizing Retiring Employees:
 Environmental Regulatory Program Manager Berlinda Blackburn  Parks Senior Maintenance Worker Paul Carranza
 Sanitary Superintendent Jerry Jimenez
 Information Technology Manager Mark Walwick
 Streets Senior Maintenance Worker Margarito Bautista
 Street Superintendent/Emergency Services Coordinator George Torres WRITTEN COMMUNICATIONS:

Written communication received will be read when those items come up for vote.

CONSENT CALENDAR:

11. Voucher Listing — EFT's/Utility Billing Refunds/FY 2021-22 Expenditures as of December 8, 2021, $1,375,093.33.

12. Ordinance No. 1188 (Zoning Ordinance Amendment 21-04) amending the Coachella Municipal Code regarding Interim Outdoor Cannabis Cultivation. City-Initiated (Second Reading).

13. American Desert LLC Multi-tenant Microbusiness Project:

Ordinance No. 1189 (Change of Zone No. 21-03) to add the Industrial Park Overlay zone (IP) and change the existing zone from M-H (Heavy Industrial) to the M-S (Manufacturing Service) Zone on a 1.29 acre developed parcel located at 86695 Avenue 54. (Second Reading)

Item 2.

Minutes CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA December 08, 2021

14. Ordinance No. 1190 (Zoning Ordinance Amendment 21-03) amending Sections 17.72.010 and 17.74.050 of Title 17 (ZONING) of the Coachella Municipal Code to regulate time extension requests for Architectural Review and Conditional Use Permits (Second Reading).

15. Resolution No. 2021-76, opting into Settlement Agreements with Distributors of opioids, Amerisource Bergan, Cardinal Health, and Mckesson, and Opioid Manufacturer Janssen (Owned by Johnson & Johnson)

16. Approval of the execution of a Maintenance Agreement with Yunex LLC for the Traffic Signal Maintenance Project No. 093021, in the amount not to exceed $180,000 for a three-year term.

17. Annual Purchase/Renewal of Billboard Advertisement from Lamar Advertising

18. Approval to execute a Memorandum of Understanding for Integrated Regional Water Management Planning and Funding in the Colorado River Basin Funding Area

19. Resolution No. 2021-77, authorizing the City Manager to Accept a Proposition 56 Tobacco Grant Award from the State of California Department of Justice in the Amount of $611,655 to hire a Community Service Officer

20. Authorization for the City Manager to enter into an Agreement in an amount not to exceed $31,000.00 with Reliable Translations, Inc. to provide Simultaneous Interpreting and Translation Services Motion: To approve per staff recommendation, Consent Calendar Items 11 through 20.

Made by: Mayor Pro Tem Gonzalez
Seconded by: Councilmember Beaman Jacinto
Approved: 5-0, by a unanimous voice vote
NEW BUSINESS CALENDAR (LEGISLATIVE AND ADMINISTRATIVE):

21. Mayor's Appointments to Various Council Subcommittees, Coachella Valley Association of Government (CVAG) Committees, Other Agencies, etc.

Motion: To approve with the modification to remove Councilmembers Delgado and Galarza from the Energy Consumers Advisory Committee and replace with Assistant to the City Manager Jacob Alvarez.

Made by: Councilmember Delgado
Seconded by: Councilmember Galarza
Approved: 5-0, by the following roll call vote:

AYES: Councilmember Beaman Jacinto, Councilmember Delgado, Councilmember Galarza, Mayor Pro Tem Gonzalez, and Mayor Hernandez.

NOES: None.

ABSTAIN: None.

ABSENT: None.

Item 2.

Minutes CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA December 08, 2021

22. Updates to the City’s Purchasing & Procurement Ordinance:
a) Ordinance No. 1191, an Ordinance of the City Council of the City of Coachella, California, Replacing the City’s Purchasing Ordinance as Set Forth in Chapter 4.08 of the City of Coachella Municipal Code (First Reading); and
b) Resolution No. 2021-75, a Resolution of the City Council of the City of Coachella, California, Electing to Become Subject to the Uniform Public Construction Cost Accounting Act. (City Attorney Campos stated Resolution No. 2021-74, will come back for vote with the ordinance’s second reading.)
Motion: To approve per staff recommendation, and to read title only and pass to second reading Ordinance No. 1191
Made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Gonzalez
Approved: 5-0, by the following roll call vote:

AYES: Councilmember Beaman Jacinto, Councilmember Delgado, Councilmember Galarza, Mayor Pro Tem Gonzalez, and Mayor Hernandez.

NOES: None.

ABSTAIN: None.

ABSENT: None.

Councilmember Galarza stepped away from the meeting at 7:17 p.m. and returned at 7:27 p.m.

23. Appointment of One Coachella Resident to fill One Planning Commission Vacancy.

Motion: To appoint Miguel Leal to the position of Planning Commissioner Made by: Mayor Hernandez
Seconded by: Mayor Pro Tem Gonzalez
Approved: 2-1-1-0, by the following roll call vote:

AYES: Mayor Pro Tem Gonzalez, and Mayor Hernandez.

NOES: Councilmember Beaman Jacinto.

ABSTAIN: Councilmember Delgado.

ABSENT: Councilmember Galarza.
(The appointed Planning Commission nominee from Councilmember Beaman Jacinto remains vacant; the Alternate position remains vacant as well.)

Item 2.

Minutes CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA December 08, 2021

24. Construction Contract with Jones Bros. Construction Co. in the amount of $2,031,522.30 and an amount of $203,152.23 for contingency for the construction of 48th Ave and Harrison Street Sewer Improvements, City Project S-24.

Motion: To approve per staff recommendation
Made by: Mayor Pro Tem Gonzalez
Seconded by: Mayor Hernandez
Approved: 4-0, by the following roll call vote:

AYES: Councilmember Beaman Jacinto, Councilmember Delgado, Mayor Pro Tem Gonzalez, and Mayor Hernandez.

NOES: None.

ABSTAIN: None.

ABSENT: Councilmember Galarza.

25. This item was removed during the agenda approval process.

Councilmember Galarza returned to the meeting at this time.

Mayor Hernandez recused himself from the following item and left the dais:

26. Resolution No. 2021-78, Authorizing Staff to Advertise the Fire Station #79 Rehabilitation and Expansion Project (F-7) and Appropriate Funds for the Project
Public Comments: Bryan White, in-person, in support
Jason Ronda, in-person, in support
Cesar Garcia, in-person, in support
Frankee Morales, in-person, in support
Erik Castellanes, in-person, in support
John Emerson, via Zoom, in support
Motion: To approve per staff recommendation
Made by: Councilmember Delgado
Seconded by: Councilmember Galarza
Approved: 4-0, by the following roll call vote:

AYES: Councilmember Beaman Jacinto, Councilmember Delgado, Councilmember Galarza, and Mayor Pro Tem Gonzalez.

NOES: None.

ABSTAIN: None.

ABSENT: Mayor Hernandez.

Mayor Hernandez returned to the dais following the previous item’s vote.

Item 2.

Minutes CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA December 08, 2021

Public Comments were moved up to this portion of the meeting being after the 8:00 hour:

1. James R.
(After Public Comments, the City Council returned to the regular agenda at this point.)

27. Resolution No. 2021-79 Prepayment and Loan Agreement Amendments for CFD 2005-1 Special Assessments – Coachella Valley I Affordable Housing Project Public Comments: Vince Nicholas, via Zoom, in support
James R., via Zoom
Motion: To approve per staff recommendation
Made by: Mayor Pro Tem Gonzalez
Seconded by: Mayor Hernandez
Approved: 5-0, by the following roll call vote:

AYES: Councilmember Beaman Jacinto, Councilmember Delgado, Councilmember Galarza, Mayor Pro Tem Gonzalez, and Mayor Hernandez.

NOES: None.

ABSTAIN: None.

ABSENT: None.

PUBLIC HEARING CALENDAR (QUASI-JUDICIAL):

Councilmember Beaman Jacinto left the meeting at 8:28 p.m.

28. Resolution of the Board of Directors of the Coachella Water Authority Authorizing Resolution No. WA2021-10 Adoption of the 2022 Indio Subbasin Water Management Plan Update: SGMA Alternative Plan Written Communication: Received from Gary Gray with Sierra Club, via email on 12/7/2021 at 4:11 PM, and forwarded to Council
Mayor Hernandez opened the Public Hearing for Item 28 at 8:31 p.m.

Public Comment: None.

Mayor Hernandez closed the Public Hearing for Item 28 at 8:31 p.m.

Motion: To approve per staff recommendation
Made by: Councilmember Galarza
Seconded by: Mayor Pro Tem Gonzalez
Approved: 4-0, by the following roll call vote:

Item 2.

Minutes CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA December 08, 2021

AYES: Councilmember Delgado, Councilmember Galarza, Mayor Pro Tem Gonzalez, and Mayor Hernandez.

NOES: None.

ABSTAIN: None.

ABSENT: Councilmember Beaman Jacinto.

SUCCESSOR AGENCY:

29. Resolution No. SA-2021-05 Approving and Authorizing the Conveyance to the City by Grant Deed the Successor Agency’s Interest in APN 763-131-001
Motion: To approve per staff recommendation
Made by: Chair Hernandez
Seconded by: Agency Member Delgado
Approved: 4-0, by the following roll call vote:

AYES: Agency Member Delgado, Agency Member Galarza, Chair Gonzalez, and Chair Hernandez.

NOES: None.

ABSTAIN: None.

ABSENT: Agency Member Beaman Jacinto.

30. Approving the Execution by the Successor Agency to the Coachella Redevelopment Agency of the Consent to Release and Termination of Right of First Refusal Regarding Real Property Owned by DVD Facility LLC, and Recommending to the Countywide Oversight Board for the County of Riverside the Approval of the Execution by the Successor Agency to the Coachella Redevelopment Agency of said Consent to Release and Termination of Right of First Refusal
Motion: To approve per staff recommendation
Made by: Chair Hernandez
Seconded by: Vice Chair Gonzalez
Approved: 4-0, by the following roll call vote:

AYES: Agency Member Delgado, Agency Member Galarza, Chair Gonzalez, and Chair Hernandez.

NOES: None.

ABSTAIN: None.

ABSENT: Agency Member Beaman Jacinto.

PUBLIC COMMENTS (NON-AGENDA ITEMS):

With the time being after the 8:00 hour and per Resolution No. 2019-34, Public Comments were moved up (see page 7). There were no further comments at this time.

Item 2.

Minutes CC/CSD/CFPD/CFA/CEGACCC/CWA/SA-RDA December 08, 2021

REPORTS AND REQUESTS:

Council Comments/Report of Miscellaneous Committees.

City Manager’s Comments.

ADJOURNMENT:

There being no further business to come before the City Council and the Agencies, Mayor Hernandez adjourned the meeting at 9:02 p.m.

Respectfully submitted,
___________________________
Angela M. Zepeda, City Clerk

Item 2.

Item 3.

WHEREAS, Andres “Andy” Martinez grew up in the City of Coachella, and attended Cesar Chavez Elementary, Cahuilla Desert Academy and graduated from Coachella Valley High School in 2001; and WHEREAS, he chose law enforcement as his chosen profession from a very young age. At the age of 13, joined the Coachella Police Department Explorer program, and in 1999 transitioned into the Sheriff’s Indio Station Explorer program. As an explorer, he participated in hundreds of ride-alongs, youth leadership conferences and team building competitions across the United States. It was through this program that his foundation and passion for law enforcement, and public service was established; and WHEREAS, Andy was hired by the Riverside County Sheriff’s Department on October 18, 2001, as a non-sworn Community Service Officer where he was tasked with issuing parking tickets, investigating traffic collisions and minor crimes; and
WHEREAS, in June of 2003, he attended the Basic Peace Officer Academy at the Ben Clark Training Center in Riverside and graduated in December of 2003. Andy’s first assignment was at the Indio Jail, where he worked many assignments to include floor operations, intake and transportation; and
WHEREAS, in June of 2005, Andy was transferred to the Sheriff’s Indio Station where he worked patrol in Coachella, La Quinta and the surrounding unincorporated areas; and WHEREAS, in 2007, Andy was selected to serve as a member of the Coachella Community Action Team, where they focused on quality of life matters, crime series investigations, bicycle patrol, and community outreach; and WHEREAS, in 2009, he was selected to serve on the Coachella Valley Violent Crimes Gang Task force representing the City of Coachella and was responsible for gang related investigations, coordinating with other agencies, jails, patrol and gang intervention; and
WHEREAS, in January of 2012, Andy was promoted to the rank of Sheriff’s Investigator and assigned to the Indio/Thermal Station, where he investigated general crimes against persons, crimes against children and fraud; and WHEREAS, in August of 2013, he was promoted to the rank of Sheriff’s Sergeant and transferred to the Palm Desert Sheriff’s Station, where he worked assignments in patrol, administration, and as the supervisor of the Investigations Bureau; and WHEREAS, in September of 2019, Andy was promoted to the rank of Sheriff’s Lieutenant, transferred back to the Thermal Station, and assigned to serve as Coachella’s Assistant Chief of Police. Effective December 16, 2021, he assumed the role of Assistant Chief of Police for the City of La Quinta; and NOW THEREFORE, I, Steven A. Hernandez, Mayor of the City of Coachella, by the power vested in me, do hereby recognize
Andres Martinez
and urge all citizens of the City of Coachella to join me in honoring his achievements and congratulate him on his new assignment.

IN WITNESS HEREOF, I have hereunto set my hand and caused the official seal of the City of Coachella, California to be affixed this 12th day of January 2022.
______________________________________
Steven A. Hernandez, Mayor
City of Coachella, California

Item 5.

WHEREAS, Librado “Lee” Espinoza was born in La Piedad, Michocan, Mexico; and WHEREAS, at 19, he married June Moreno, who lived next door, and they raised three sons and a daughter; and
WHEREAS, while raising his family, Lee has dedicated most of his life to managing and training fighters battling for world titles; and
WHEREAS, the Coachella Valley Boxing Club had its humble beginnings in a cramped single room in Indio. It later moved to the former fire station next to Coachella City Hall in 1985, and then in 1996, moved to its current location at Bagdouma Park in Coachella; and WHEREAS, Lee trains local youth in the art of boxing, while also teaching the character traits required to form the foundation of a successful career, such as discipline, determination, good health practices and mental focus. And, under Lee’s guidance, exceptional talent, such as Pancho Segura, Sandra Yard, Randy Caballero and four brothers – Joel, Jesus, Antonio and Julio Diaz – from Coachella, have been discovered; and WHEREAS, in March 2005, Lee Espinoza was inducted into the California Boxing Hall of Fame; and WHEREAS, following the Club’s second expansion project, on October 17, 2012, the City celebrated the renaming and unveiling of the Lee Espinoza Coachella Valley Boxing Club; and WHEREAS, in 2020, it was announced that Lee Espinoza was inducted into the West Coast Boxing Hall of Fame, with the event delayed due to the Coronavirus Pandemic until October 2021. The event honored him with the Cleto Reyes Boxing Glove Award and Plaque honoring years of dedicated service as a trainer and mentor along with his impact to the sport of boxing.

NOW THEREFORE, I, Steven A. Hernandez, Mayor of the City of Coachella, by the power vested in me, do hereby congratulate
Lee Espinoza
For his induction into the West Coast Boxing Hall of Fame and further urge all citizen of the City of Coachella to join me in honoring him for his dedication to this community.

IN WITNESS HEREOF, I have hereunto set my hand and
caused the official seal of the City of Coachella, California to be affixed this 8th day of December 2021.
______________________________________
Steven A. Hernandez, Mayor
City of Coachella, California

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Item 9.

Ernesto Rosales, Chair
Judy Vossler, Vice-Chair
Marcos Coronel, Jr.

Dr. Bruce Underwood
John Rios
Board of Trustees

Item 9.

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Capital Investments
• The District has made significant investments
this fiscal year to enhance the service we
provide our families.
• $23,000 on funeral service equipment,
including new portable chapels and lowering
devices.
• $30,000 on enhanced board room features
including dedicated audio and visual
equipment in our new administrative building.
• $79,000 on support equipment for
maintenance operations.

Item 9.

Cemetery Investment
$105,000 Automated
Irrigation System
$110,000 Increased
Surveillance and
Security Presence
$31,000 Landscape
Improvements
$20,000 Additional
Restrooms on Site
$400/P Enhanced
Double Vaults

Item 9.

Upcoming 2022 Improvements
• New Website with E-Commerce and
Electronic Appointment Setting
• Additional $150,000 in Landscape and
Design Improvements
• Road and Curb Improvements/Repaving

Item 9.

Supporting Our Community
- Memorial Day
- Veterans Day
- Day of the Dead
- Mothers Day
- Fathers Day

Item 9.

The Coachella Valley Public
Cemetery District has
approximately 29 acres of
land set aside for future
development (red box). We
anticipate we can meet the
needs of our community for
the next 40+ years.

Future Development

Item 9.

The Coachella Valley Public
Cemetery as seen at night
after closing. A peaceful and
dignified resting place that
honors the legacy and
memory of our community.

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STAFF REPORT
1/26/2022
TO: Honorable Mayor and City Council Members
FROM: Nathan Statham, Finance Director &
Carlos Campos, City Attorney
SUBJECT: Adopt Ordinance 1191 updating the City’s Purchasing & Procurement Ordinance (2nd Reading) and resolution 2022-03 setting purchasing and competitive procurement thresholds
STAFF RECOMMENDATION:

Staff recommends that City Council adopt the proposed changes to the City’s Purchasing and Procurement Ordinance (2nd reading) along with the related resolution 2022-03 setting purchasing and competitive procurement thresholds.

EXECUTIVE SUMMARY
The City’s current purchasing and procurement ordinances are inconsistent with current service and materials costs and are out of date with purchasing practices and regulations. The City Attorney’s office conducted a survey of valley cities for purchasing authority thresholds and increases to the City’s purchasing authority thresholds are recommended based on the survey results. City finance and legal evaluated state and federal purchasing regulations and are recommending the City adopt regulatory limits for public works contracts and federal expenditures. Additionally, there are a significant number of proposed changes incorporated for clarifications and to streamline procurement processes.

The City’s purchasing a procurement ordinance is designed to implement approval limits and provide a structural framework for City departments to obtain the goods and services necessary to provide City services to residents. There are countless purchasing situations the City faces. The purchasing ordinance is designed to provide specific authority thresholds and a procedural procurement framework. At the same time, the purchasing ordinance needs to be broad enough to accommodate a wide variety of situations. The finance department derives operational procedures and provides administrative guidance to departments during normal operations based on the purchasing ordinance.

The goal of a fiscally sound purchasing ordinance is to balance the costs from staff time spent following the procedures with the savings the City can obtain from the procedures. For example, if it takes City staff ten hours to prepare an RFP, publish the RFP, review the results and select a respondent at an average hourly cost of $100 per hour, the savings from the RFP process should exceed $1,000.

It is also imperative that a purchasing ordinance be consistent with City operations so it can be followed with reasonable ease. There are very few restrictions on how broad of a policy City Council adopts, but compliance with the purchasing policy is reviewed on an ongoing basis by the finance department and

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external auditors. If the purchasing ordinance is inconsistent with City procedures, exceptions are likely occur which will result in audit findings, wasted staff time and improper goods and service being procured.

The recommended changes to the City’s purchasing ordinance are consistent with current City needs and represent a reasonable cost benefit trade off that will allow for City staff to address the purchasing needs of the City.

BACKGROUND:

The City’s current purchasing and procurement ordinance was last revised in 2003 (Ordinance 893) with the exception of a local preference provision added in 2013. Purchasing authority limits and competitive procurement thresholds were included in the 2003 ordinance. These limits are based on purchasing needs and cost levels from 2003 that are inconsistent with needs and current materials and service costs.

In 2014 the Office of Management and Budget implemented Uniform Guidance for all federal awards.

Included in the implementation were certain requirements for purchasing policies applicable to the expenditure of federal funds. The City’s purchasing ordinance was not updated per the requirements and has been out of compliance in this regard.

The City Attorney’s office conducted a Coachella Valley wide purchasing dollar limit approval threshold survey. A summary of the survey results is shown below:

Department City
Director Manager
Palm Desert 25,000 50,000
Indian Wells 5,000 25,000
La Quinta 15,000 50,000
Indio 5,000 75,000
Cathedral City 75,000 75,000
Palm Springs 25,000 25,000
Rancho Mirage 25,000 25,000

PROPOSED SUBSTANTIVE AMENDMENTS

1. Purchasing Authority (Resolution 2021-74) – The current purchasing authority threshold is $15,000 for the City Manager with all amounts exceeding the threshold subject to approval by City Council. Based on internal policies, the purchasing authority threshold for department directors is $2,500.
 The proposed thresholds would be $25,000 for the City manager and $10,000 for department directors.

2. Competitive Procurement - Public Works Contracts – The City did not previously elect to become subject to the Uniform Public Construction Cost Accounting Act. As a result, the City was unintentionally subject to a statutory formal bid process for projects exceeding $5,000.  The proposed changes would include electing to become subject to the Uniform Public Construction Cost Accounting Act (Resolution 2021-75). Once this election is made, the formal and informal competitive procurement thresholds are set by the state of California and are adjusted annually for inflation. Currently the thresholds are set so that projects $60,000 and under are not subject to competitive procurement, contracts over $60,000 and

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under $200,000 will be subject to informal bidding and projects over $200,000 are subject to formal bidding.

3. Competitive Procurement - Federal Funds – The current ordinance does not address federal funds specifically.
 The proposed changes are to adopt the competitive procurement thresholds under the Uniform Guidance applicable to expenditures of federal awards. Thresholds are currently set at $10,000 “micro purchases” for situations where competitive procurement procedures are not required and $250,000 for “simplified acquisition” where informal procurement procedures can be followed.

4. Competitive Procurement for General Goods and Services (Resolution 2021-74) – The current ordinance requires competitive procurement for purchases over $2,500 except for professional services agreements where the threshold is set at $15,000.  The proposed competitive procedures thresholds represent a tiered approach increasing the $2,500 threshold to $5,000 where no competitive procurement is required. Informal competitive procurement procedures will be required for purchases over $5,000 but under $75,000. Purchases over $75,000 will require formal bidding procedures.

5. Two exceptions were added to the proposed ordinance:
 Reoccurring as needed service agreements – these agreements are designed to provide services that are unknown in quantity. For example, the procurement of plan review services is unknown when the agreement is setup and fluctuates dramatically with the number, size and nature of the projects submitted to the City. For this example, this exception allows the Development Services Department to compare hourly rates between firms that provide planning review services selecting the lowest hourly rate firm (presumed fully qualified). Once selected, the number of planning review services requested is not affected by total price since the services are attributed to many different developments through the course of the year.
 Individual Specific Agreements – in certain circumstances the City needs to hire an individual who works for a consulting firm or is a 1099 employee. In these circumstances, the City provides direct supervision of work performed and is evaluating the resume of the individual in question. Procurement in these circumstances is more akin to an employment determination than a procurement.

6. Surplus goods de minimus threshold – the current threshold is set at $2,500, the proposed threshold is $5,000 consistent with the City’s capitalization policy.

FISCAL IMPACT:

The fiscal impact of this action cannot be directly determined. It is staff’s opinion that these updates will provide clarity and efficiencies to the City’s purchasing and procurement process that will result in overall savings through reduced staff and City Council time spent reviewing and approving purchases.

ATTACHMENTS:

1. Ordinance 1191 – Recommended purchasing ordinance

2. Resolution No. 2022-03 – Setting purchasing and competitive procedure thresholds

3. Current purchasing and procurement ordinance (Municipal Code Chapter 4 Section 8)

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90354.1
ORDINANCE NO. 1191

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
COACHELLA, CALIFORNIA, REPLACING THE CITY’S PURCHASING
ORDINANCE AS SET FORTH IN CHAPTER 4.08 OF THE CITY OF

COACHELLA MUNICIPAL CODE
WHEREAS, updating the City of Coachella’s purchasing ordinance will make the City more effective, efficient, fiscally responsible and better reflect the City’s operating procedures for procurement; and
WHEREAS, on December 8, 2021, the City Council conducted a legally noticed public hearing on the proposed Code Amendments, and considered public testimony and materials in the staff report and accompanying documents and exhibits.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COACHELLA, CALIFORNIA, RESOLVES AS FOLLOWS:

Section 1. Recitals. The above recitals are hereby adopted by the City Council and incorporated as set forth in this section.

Section 2. Amendment. Chapter 4.08 of Title 4 of the City of Coachella Municipal Code is hereby replaced in its entirety to read as follows:
“Chapter 4.08 – PURCHASING

4.08.10 Purpose of this Chapter
This section is hereby adopted in order to establish efficient policies and procedures for the procurement of public goods and services at best overall value to the City, to exercise positive financial control over purchases and procurements, to clearly define authority for the purchasing function, and to comply with all applicable laws in a professional and ethical manner.

4.08.20 Definitions
For the purposes of this Chapter, the following words and terms, shall be construed with the following definitions:

A. “Best value” means the overall value provided to the City including price, competency, availability, quality and any other factor including setup costs, staff time, and levels of certainty that collectively provide lower overall costs irrespective of the quoted price. Best Value is the result of a comprehensive analysis of known variables and the determination of the total cost to the City.

B. "Coachella Valley" means the nine incorporated cities of the Coachella Valley, and the unincorporated areas of Riverside County in the Coachella Valley that are located within the boundaries of the Coachella Valley Association of Governments.

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Ordinance No. 1191

C. “Federal funding purchases” means any purchase of goods or services paid for with federal funds (including partial federal funding) or federal pass through funds.

D. “General services” means the furnishing of labor, time, or effort by a contractor for non-professional services as the city may, from time to time, find necessary and proper for the functioning of the city. Examples include, but are not limited to, janitorial, uniform cleaning, or other services which do not require any unique skill, special background or training.

E. “General goods” means any and all supplies, materials, articles, things, or property, other than real property, furnished to be used by the city.

F. "Local business" means a vendor, contractor, or consultant who has a valid physical business address located within the Coachella Valley, at least six months prior to bid or proposal opening date, from which the vendor, contractor, or consultant operates or performs business on a day-to-day basis, and holds a valid business license by a jurisdiction located in the Coachella Valley. Post office boxes are not verifiable and shall not be used for the purpose of establishing such physical address.

G. “Maintenance services” means:

1. Routine, recurring, and usual work not considered a Public Works Contract for the preservation or protection of a publicly owned, or publicly operated facility for intended purposes;

2. Minor repainting or resurfacing;

3. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; and

4. Work performed to keep, operate and maintain publicly owned water or waste disposal systems;

5. Other similar services that are generally classified as maintenance.

H. “Professional services” means services provided by a person, company, corporation, or firm engaged in a profession based on a generally recognized special knowledge, skill, license, and/or certification to perform the work including, but not limited to, the professions of accountant, attorney, artist, architect, landscape architect, construction manager, engineer, environmental consultant, dentist, physician, training or educational consultant, or land surveyor, and whose services are considered distinct and unique.

I. “Public works contract” means:

1. A contract for the erection, construction, alteration, repair or improvement of any public structure, building, road or other public improvement of any kind as defined in the California Public Contract Code;

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Ordinance No. 1191

2. Work in or about streams, embankments or other works for protection against overflow;

3. Street or sewer work except maintenance or repair; and

4. Furnishing supplies or materials for any such project,.

J. “Request For Proposal (“RFP”)” means a document that solicits firms to submit a proposal to perform the scope of work associated with a proposed project. Cost is not the sole basis for selection in an RFP; other qualifications including experience, turnaround time and approach to work are important factors when evaluating proposals. RFPs are project specific and preparation requires general knowledge of the project.

K. “Request For Qualification (“RFQ”)” means a document that solicits firms to submit information about their qualification and capabilities to perform the type of work associated with a proposed project. The preparation of an RFQ generally does not require specific project knowledge or scope. An RFQ may be used as a pre-qualification step to engaging a service provider. If an RFQ is required, only those candidates who successfully respond to it and meet the qualification criteria will be included in the subsequent RFP process. An RFQ will contain specific reference to selection criteria.

L. “Goods and/or Services” is/are used as an inclusive description for general goods and/or services, maintenance services, or professional services irrespective of whether the goods and/or services are related to federal funding purchase, maintenance services or public works contracts.

4.08.30 Purchasing Authority
The authority to purchase goods and services shall be delegated by resolution of city council based on dollar limit thresholds. The city manager or finance director will bring recommended modifications to purchasing authority limits to city council from time to time as deemed necessary. Recommended modifications under this section will be based on an evaluation of the costs associated with imprudent purchases versus the costs associated with city staff and council time required to analyze and approve purchases. Factors such as inflation and local purchasing practices should be considered when making this determination.

4.08.40 Purchasing Policy Procedures.

A. Procurement Guidelines. The finance director shall implement policies and procedures governing the procurement of public projects, goods and services for the city consistent with this Chapter. Said procedures and policies may be amended as needed to address operational issues as they arise.

B. Rejection of Bids and Proposals. At its discretion, the city council or city manager may reject any and all bids, proposals, quotations, or prices and take any other action deemed appropriate for the procurement of public projects, goods and services.

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Ordinance No. 1191

C. Required Procedures. More specific procurement methods shall be used if required by federal and state law, or where federal or state funds are involved in the contract to be awarded, or when required under a grant agreement, or when the city council or city manager determines it is in the best interest of the city to do so.

D. Appropriations Requirement. No contract or purchase shall be made unless the city manager or finance director shall have first confirmed that there is an appropriation in the fund against which such expenditure is to be charged sufficient to cover the amount of purchase or contract, unless in cases of emergency or where the immediate procurement is deemed to be in the immediate best interest of the City.

E. Unauthorized Purchases. No officer or employee of the city shall request a firm to deliver goods and/or services to the city without prior authorization by the city manager, department director or city council (depending on applicable approval limit). Such purchases are void and not considered an obligation of the city.

F. Performance Bonds. The city manager shall have authority to require a performance bond before entering a contract in such an amount necessary to protect the best interests of the city. The city manager shall have the authority to release the required performance bonds once the initial need to protect the best interest of the city is deemed reasonably mitigated.

G. Review and Approval of Plans and Specifications. The city engineer, or qualified designee(s), is authorized to review and approve engineering plans for all public projects.

This shall include the working details, drawings, plans and specifications prepared for every public works project, including emergency and change order work, which may affect the design or operation of public improvements and which may bring into question the city’s liability for dangerous conditions of public property.

H. Master Agreements. The city may enter into master agreements, under which city staff purchases goods and services, including but not limited to on-call services. Master Agreements shall have a not-to-exceed cost limit and be subject to the procurement requirements of this Chapter based on the not-to-exceed value.

I. Split Purchases. A split purchase occurs when the quantity of a required goods or service is known prior to the initial purchase, and is divided into multiple purchases in order to avoid the requirement for obtaining bids or proposals. Split purchases are prohibited, may be misdemeanors under State law if public bidding is required, and are generally considered fraud, waste, and/or abuse and in violation of best practices standards.

J. Subsequent Contract Awards, Amendments, Extensions or Renewals.

Notwithstanding anything herein to the contrary, the city manager shall not award a subsequent contract to the same individual or entity for the same or similar services on the same project, or amend, extend or renew such a contract, without obtaining approval authority by the city council, when the award, amendment, extension or renewal will result in the city paying an aggregate amount in excess of the approval authority of the city manager to the individual or entity in any given fiscal year.

4.08.50 Protest Procedure

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Ordinance No. 1191

A. Right to Protest. Prior to city making the award of a contract, any responsible bidder or proposer in connection with the procurement of the contract may protest the award. A subcontractor of a bidder or proposer may not submit a protest. This Section shall apply to all contracts awarded by the city council through a formal competitive process, including but not limited to a formal bidding process or formal RFP or RFQ process. The protest procedure does not apply to contracts that are awarded at the city staff level or through a non-competitive process (e.g., by sole source). The protest procedure is solely to serve the public interest and obtain finality of city contract awards.

B. Timing of Protest. The protest shall be submitted in writing within the following times:

1. For the protest of another bidder’s bid, five (5) working days after the bid opening date.

2. If the city issues a notice of intent to reject a bid or any other determination of a bid, then the protest shall be submitted in writing within five (5) calendar days following the issuance of the notice and prior to the date of the contract award.

3. Untimely protests will not be considered and will be deemed waived.

C. Contents of Protest. The protest shall identify and explain the factual and legal grounds for the protest and include all relevant and supporting documentation. Any grounds not raised in the written protest are deemed waived by the protesting bidder.

D. City Response. If the protest is timely and complies with the above requirements, the city shall review the protest, any response from the challenged bidder(s), and all other relevant information and provide a written decision to the protestor.

E. Effect of Failure to Comply with Protest Procedures. The procedures set forth in this Section are mandatory and are the sole and exclusive remedy of a bidder or proposer to dispute the award of a contract. A protest that does not comply with these procedures may be summarily rejected.

F. Conflicts. The protest procedure contained in this section shall not apply if a particular procurement solicitation contains a different protest procedure.

4.08.60 Competitive Procurement
The total estimated contract amount for the cost of goods and services determines the competitive procurement procedures and procurement methods that must be followed, as described below:

A. General The competitive procurement thresholds for general goods and services will be set by resolution of the city council. The city manager or finance director will from time to time evaluate the general procurement thresholds to determine adequate levels considering the expected benefits from lower prices obtained through competitive procedures versus the costs incurred by the city through the use of city staff time to perform the competitive procurement

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Ordinance No. 1191

procedures. Modifications to the thresholds will be recommended to city council as deemed necessary.

The city council may dispense with the formal bid process for goods if the city council finds that a formal RFP process would be more beneficial to the city or if the city council finds that the need to compare different products and/or negotiate the best value would be better achieved through the formal RFP process.

B. Public Works Contracts The thresholds for bidding of public works contracts shall be subject to the California Uniform Public Construction Cost Accounting Act (Public Contract Code sections 22000 et seq.) as adopted by resolution of city council.

C. Expenditures of Federal Funds The threshold for bidding of projects funded with federal funds will be consistent with 2 CFR Part 200 Uniform Guidance where the Office of Budget and Management sets and periodically amends competitive procurement thresholds. Where a project is a public works contract funded with federal funds, the lower competitive bidding threshold will apply. This requirement is applicable if any part of the public works contract is funded with federal funds.

4.08.70 Informal Quote Process
A. Soliciting Quotes or Proposals. City staff shall solicit via posted notice, telephone request, mail, email, fax or any other reasonable solicitation method, price quotes or proposals documented in writing. If unable to obtain a minimum of three (3) price quotes, staff shall document that reasonable efforts were made to obtain price quotes or proposals including, that a notice was posted for not less than seven (7) calendar days; that there were no other vendors to solicit price quotes or proposals from; or that they solicited to other vendors and two or more declined to provide a quote or proposal.

B. Award of Contract. Award shall be made to the vendor providing the best value.

4.08.80 Informal Bidding Procedures.

A. Required Process. The informal bidding procedures shall comply with all aspects of state and local law governing formal competitive bidding, including, but not limited to, the Government Code, Labor Code, Uniform Guidance under 2 CFR Part 200, resolutions of the city council as may be adopted from time to time, this Chapter, and policies and procedures as the city manager or finance director may implement from time to time as applicable.

B. Notice Inviting Bids. At a minimum, a notice inviting bids shall: (1) describe the project; (2) state how to obtain more detailed information about the project; and (3) state the date, time and place for the submission of bids. The notice shall be advertised in the most expedient manner possible maximize the number of qualified respondents. Notices inviting bids will be sent by the advertising City Department to a list of qualified contractors.

C. Bid Submission. Bids shall be submitted to the advertising city department and shall be clearly identified by the department with a bid number. The receiving city department will track all bids received.

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Ordinance No. 1191

D. No Bids. If no bids are received, the city department or council may have the procurement done in any manner deemed prudent without further complying with this Chapter.

E. Award of Contract. If awarded, the contract shall be awarded to the lowest responsible bidder submitting a responsive bid. If two or more bids received are the same amount, the city council may decide which bid to accept and award.

F. Rejection of Bids. The city council or city manager may, at their sole and absolute discretion, reject any one or more items of a bid, reject any and all bids, or waive any irregularities or informalities in the bids or bidding process if deemed to best serve the interests of the city.

4.08.90 Formal Request for Proposal (RFP)/Request for Qualifications (RFQ) Process
The formal RFP or RFQ process shall be utilized to engage services on the basis of best value to the city. The following minimum guidelines and procedures shall be implemented:

A. Notice Inviting RFQs or RFPs. At a minimum, the notice inviting RFQs or RFPs shall: (1) describe the project; (2) state how to obtain more detailed information about the project; (3) state the date, time and place for the submission of qualifications or proposals; (4) describe general parameters for evaluation and selection; and (5) include any other information required by state or local law.

B. Published Notice. City staff shall solicit RFQs or RFPs via published notice in a newspaper of general circulation and/or the city’s website at least ten (10) calendar days before the date for receiving qualifications or proposals, unless exigent circumstances call for a shorter time.

C. Review of Qualifications or Proposals. Proposals shall be evaluated based on the evaluation and selection criteria established by the city.

D. Award. Award for professional services contracts shall be to the respondent offering the best value to the city, in the city’s sole and absolute discretion.

E. Rejection of Proposals. The city manager or city council may, in its sole and absolute discretion, reject all proposals presented and re-advertise.

4.08.100 Formal Public Works Contract Bidding Process
A. Required Process. The formal bidding process shall comply with all aspects of state and local law governing formal competitive bidding, including, but not limited to, the Public Contract Code, Government Code, Labor Code, Uniform Guidance under 2 CFR 200, resolutions of the city council as may be adopted from time to time, this Chapter, and policies and procedures as the city manager or finance director may implement from time to time as applicable.

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Ordinance No. 1191

B. Notice Inviting Formal Bids. Notice inviting formal bids shall be provided.

Notices shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. At a minimum, the notice inviting formal bids shall: (1) describe the project; (2) state how to obtain more detailed information about the project; (3) state the date, time and place for the submission of sealed bids; and (4) include any other information required by state or local law.

C. Published Notice. The notice shall be published at least ten (10) calendar days before the date of opening the bids in a newspaper of general circulation and on the city’s website.

Notice shall be published at least twice not less than five (5) calendar days apart.

D. Bidder's Security. All bids shall be presented under sealed cover accompanied by one of the following forms of bidder’s security: (a) cash; (b) cashier’s check made payable to the city; or (c) a bidder’s bond executed by an admitted surety insurer made payable to the city. Such security shall be an amount at least equal to ten percent of the bid amount. No bid shall be considered unless security in the form above set forth is enclosed with the bid.

E. Forfeiture of Security. If the successful bidder fails to execute the contract, the bidder’s security shall be forfeited to the city. The city council may on refusal or failure of the successful bidder to execute such contract award the contract to the next lowest responsible bidder.

If the city council awards the contract to the second lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the difference between the low bid and the second low bid. The surplus, if any, shall be utilized to offset any and all costs of preparation and printing of plans, specifications, estimates of cost, publication of notices, and any surplus remaining shall be returned to the lowest bidder who fails to execute the contract.

F. Bid Opening. Sealed bids shall be submitted to the city clerk and shall be clearly identified with the bid number on the envelope. Upon receipt, the city clerk shall date and time stamp the envelope. Bids shall be opened in public at the time and place stated in the public notices.

G. Review of Bids. The city shall review all bids received for completeness, accuracy, responsiveness to the invitation and bid documents, and the city’s experience with or knowledge of the qualification and reliability of each bidder and prepare a recommendation for the city council. The city council may waive any irregularities or discrepancies in each bid received.

H. No Bids. If no bids are received, the city council may have the project done in any manner that the city council may direct without further complying with this Chapter.

I. Award of Contract. If awarded, the contract shall be awarded to the lowest responsible bidder submitting a responsive bid. If two or more bids received are the same amount, the city council may decide which bid to accept and award.

J. Rejection of Bids. The city council may, in its sole and absolute discretion, reject any one or more items of a bid, reject any and all bids, or waive any irregularities or informalities in the bids or bidding process if deemed to best serve the interests of the city. After all bids are rejected, the city council may pass a resolution by a four-fifths vote of its members declaring that the project can be performed more economically by employees of the city or procuring goods on

Item 13.

Ordinance No. 1191

the open market, or elect to readvertise for bids pursuant to the procedures prescribed in this Section.

4.08.110 Formal Non-Public Works Contract Bidding Procedures.

K. Required Process. The formal non-public project bidding procedures shall comply with all aspects of state and local law governing formal competitive bidding, including, but not limited to, the Government Code, Labor Code, Uniform Guidance under 2 CFR Part 200, resolutions of the city council as may be adopted from time to time, this Chapter, and policies and procedures as the city manager or finance director may implement from time to time as applicable.

L. Notice Inviting Formal Bids. At a minimum, a notice inviting formal bids shall:
(1) describe the project; (2) state how to obtain more detailed information about the project; and (3) state the date, time and place for the submission of bids. The notice shall be advertised in the most expedient manner possible maximize the number of qualified respondents.

M. Bid Opening. Bids shall be submitted to the advertising city department and shall be clearly identified with a bid number. The receiving city department will track all bids received.

N. No Bids. If no bids are received, the city council may have the procurement done in any manner that the city council may direct without further complying with this Chapter.

O. Award of Contract. If awarded, the contract shall be awarded to the lowest responsible bidder submitting a responsive bid. If two or more bids received are the same amount, the city council may decide which bid to accept and award.

P. Rejection of Bids. The city council may, in its sole and absolute discretion, reject any one or more items of a bid, reject any and all bids, or waive any irregularities or informalities in the bids or bidding process if deemed to best serve the interests of the city.

4.08.120 Exceptions to Procurement Methods
This Section contains exceptions to the City’s general procurement requirements. The City may determine that use of an exception is more beneficial under the circumstances. Exceptions should only be used where the particular exception provides a greater public benefit than adhering to standard procurement requirements.:

A. Disaster Relief. When in the case of a disaster, as further explained in Chapter

2.56, the requirements of this Chapter do not apply.

B. Emergency. When in case of emergency.

1. “Emergency” means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.

2. In the case of an emergency which requires the immediate procurement of public works, services or goods the city manager or department director may procure these items

Item 13.

Ordinance No. 1191

without regard to the provisions of this Chapter. The action shall only be to repair or replace a public facility, take any directly related and immediate action required by that emergency, or procure the necessary equipment, services, and supplies for those purposes. The city manager or department director shall terminate the emergency action at the earliest possible date that conditions warrant. If a contract or purchase is made pursuant to this authority, the city manager or department director shall, upon request, provide to the city council for review a written public record showing the nature of the emergency and when applicable to a public works contract the city manager’s authorization to proceed pursuant the provisions of this section and Public Contract Code section 22050.

C. No Competitive Market. Except where otherwise prohibited by law, when the city council, city manager or department director determines that a competitive market does not exist or that the city will not gain a competitive advantage by using the formal or informal bidding procedure, the city may use any other procurement method.

D. Competitive Bidding Already Completed. Except where otherwise prohibited by law, when it is determined that: (1) a competitive bid procedure has been conducted by another public agency, including, but not limited to, another local agency, the State through the California Multiple Award Schedule (CMAS), the federal government through the General Services Administration (GSA), or a joint powers agency, authority or alliance that procures competitive contracts; and (2) the price to the city is equal to or better than the price to that public agency.

E. Mandated Expenditures. When expenditures are mandated by law or regulation, such as county booking fees, utilities, postage, waste disposal fees or other non-negotiable permit, use or application fees.

F. Shared Services. When the city council or city manager authorizes the award and execution of contracts for services, subject to the dollar limits consistent with this Chapter, that are provided by another government, public entity, joint powers authority, quasi-governmental entity, special district or non-profit entity that will maximize efficiency, increase cost effectiveness, increase range of services, minimize duplication, provide training or education encourage collaboration or standardize efforts, or leverage government resources.

G. Best Interest of City. Except where otherwise prohibited by law, when the city council or city manager authorizes the award and execution of contracts for services and goods subject to the dollar limits consistent with this Chapter, without following the required procurement methods, provided that the city council or city manager finds that such award is in the best interest of the city, or of the public health, safety, and welfare.

H. Sole Source. When the city council or city manager determines that there is only one source that provides the needed services or goods, or to ensure compatibility with other city products and equipment, the city shall work to procure these items in the best interest of the city.

I. Purchase of Recurring Charges. The city may create an open vendor list for the purposes of providing services and goods for the fiscal year for ongoing cleanup, maintenance and different routine items that are of a continuing nature. Prices from each vendor shall be obtained in a manner to ensure competitive pricing, in the best interest of the city. Vendor approval

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Ordinance No. 1191

thresholds will be determined consistent with section 4.08.30 of this chapter consistent with each project for which the recurring charges are needed.

J. Task or Job Orders. Except where otherwise prohibited by law, task or job orders that the city places through a duly approved master agreement shall not be subject to further procurement requirements. This section is inclusive of pre-negotiated supplier contracts and cooperative purchasing arrangements and will be applicable to any similar purchasing mechanism where competitive procedures were undertaken and the purchasing mechanism is consistent with industry practices.

K. Reoccurring as Needed Service Agreements. The City may engage certain service providers to perform routine services that are requested on an intermittent basis for an unknown amount. These agreements should be based on competitive procurement through the informal quote process (usually on a per hour basis) using the best value standard. The City may engage multiple service providers under this item to ensure continuous availability of services.

L. Individual Specific Agreements. Certain professional services contracts are exempt from the competitive procurement process in the limited circumstance where the contract is not for a set amount and is so closely tied to the individual contracted that the same result would not be expected should the contract be competitively bid (procurement of services dependent on the individual contracted). This section is applicable when the services are more consistent with a function performed by a contracted employee than an independent professional services provider.

To meet the exemption outlined in this section, the contracted services must be tied directly to an individual. A listing of such contracts will be maintained by the finance director and will be approved by the finance director and city manager or their designees.

M. Otherwise Authorized. When otherwise authorized by this Chapter or applicable law.

4.08.130 Change Orders.

A. Contracts may be amended by the issuance of a change order or amendment, provided the change is reasonably related to the scope of the original contract. The city manager shall have authority to approve change orders for contracts previously awarded by the city manager, provided that the combined total does not exceed the city manager’s approval threshold under chapter 4.08.30.

B. During the award of a contract by the city council, the city council may give the city manager the authority to approve change orders, specific to that contract, based on either a percentage of the contract or a specific dollar amount. If no specific authority is given by the city council, the city manager may approve change orders for a city council awarded contract subject to the dollar limits consistent with this chapter, provided such change orders are within the approved project contingency.

C. Change orders in excess of the city manager’s authority may be approved by the city manager and submitted to city council for ratification under the following circumstance:

Item 13.

Ordinance No. 1191

1. The failure to immediately issue a change order may result in significant project cost increases or an unacceptable project delay due to work stoppage or other inefficiencies;

2. A special meeting or a regularly scheduled meeting of the city council is not scheduled within a reasonable period of time to sufficiently remedy the problem; and

3. Funding for the change order is currently available within the appropriated budget.

4.08.140 Disposition of Surplus Goods
A. Disposing of Surplus. Department heads shall have the authority to dispose of de minimis surplus, obsolete or no longer useful items utilized in the normal course of the department’s operations. The de minimis threshold will be set at $5,000 or less in estimated current value for each item. The city manager shall have authority to sell or dispose as surplus all materials, supplies, and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same on, new materials, supplies, and equipment. The sale of surplus materials, supplies, and equipment shall be made pursuant to rules prescribed by the city manager and only after authorization from the city council as to any item with an estimated value of $25,000 or more. Estimated value will be determined based on available quotes or on the best judgement of the department director or City manager considering cost/benefit considerations in making the estimate.

B. City Officials and Staff. City officials and employees and their immediate families, shall not be eligible to purchase such surplus materials, supplies, and equipment.

4.08.150 Local Business Preference Program
A. Findings.

1. The city annually spends significant amounts on purchasing on goods and services. The dollars used in making these purchases are derived in large measure from taxes and fees derived from local businesses and the city council has determined that funds generated in the community should, to the extent possible, be placed back in the local economy. Therefore, the city council has determined that it is in the best interest of the city to give a preference to local businesses in making such purchases whenever the application of such a preference is reasonable in light of the dollar-value received in relation to such expenditure.

2. The city council further finds that the Coachella Valley is in a state of economic depression and many local businesses have been forced to close their doors due to severe financial losses. Many of these local business establishments have been doing business in the Coachella Valley for many years. The city council finds that the city should promote and stimulate local businesses by requiring that purchases of supplies, materials, and equipment and contractual services be acquired from local businesses.

3. The city council further finds that this action is necessary to grow the local economy and preserve the local businesses that have diligently served the Coachella Valley for many years.

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Ordinance No. 1191

4. Strategies that encourage people to buy locally are an important component of economic sustainability. Retaining local dollars within a community reduces economic export and increases the financial productivity of taxpayer dollars and increases the consumption of local goods and services while fostering a sustainable community. In working towards a sustainable economy, the city council recognizes that sustainable procurement policies are an important early step on the Coachella path to a sustainable community. By leveraging the purchasing power of the city to buy local products and services instead of products and services from outside the Coachella Valley it strengthens the local economic activity and employment as well as sets an example that helps foster and maintain a vital economic community for future generations.

B. Statement of Policy. It is the policy of the city to promote employment and business opportunities for local residents and firms on all contracts and give preference to local residents, workers, businesses, contractors, and consultants to the extent consistent with the law and interests of the public.

C. Local Preference in Goods. In the bidding of, or letting for procurement of, goods, as provided in this Chapter, the city council or the city manager may give a preference to local businesses in making such purchase or awarding such contract in an amount not to exceed five percent of the local business' total bid price, or fifteen thousand dollars ($15,000.00), whichever amount is lower. Total bid price shall include only the base bid price but also adjustments to that base bid price resulting from alternates requested in the solicitation. In order for a local business to be eligible to claim the preference, the business must request the preference in the solicitation response and provide a copy of its current business license from a jurisdiction in the Coachella Valley.

D. Local Preference in Services. In awarding contracts for services, preference to local business shall be given whenever practicable pursuant to this chapter consistent with the statement of policy in this Section. The contractor or consultant will also, to the extent legally possible, solicit applications for employment and proposals for subcontractors and sub consultants for work associated with the proposed contract from local residents and firms as opportunities occur and hire qualified local residents and firms whenever feasible. In order for a local business to be eligible to claim the preference, the business must request the preference in the solicitation response and provide a copy of its current business license from a jurisdiction in the Coachella Valley.

E. Exceptions to Local Business Preference Policy. The preference set forth in this section shall not apply to the following purchases or contracts:

1. Goods provided under a cooperative purchasing agreement.

2. Purchases or contracts which are funded in whole or in part by a governmental entity and the laws, regulations, or policies governing such funding prohibit application of that preference.

3. Purchases made or contracts let under emergency or noncompetitive situations.

Item 13.

Ordinance No. 1191

4. Purchases with an estimated cost of five thousand dollars ($5,000.00) or less.

5. Application of the local business preference to a particular purchase, contract, or category of contracts for which the city council is the awarding authority may be waived at the city council's discretion.

F. Quality and Fitness. The preferences established in this section shall in no way be construed to inhibit, limit or restrict the right and obligation of the city council and the director to compare quality and fitness for use of supplies, materials, equipment, and services proposed for purchase and compare the qualifications, character, responsibility, and fitness of all persons, firms, or corporations submitting bids or proposals. In addition, the preferences established in this Section shall in no way be construed to prohibit the right of the city council or the director from giving any other preference permitted by law or this Chapter.

G. Application. The local business preference provided in this Section shall apply to new contracts for goods and services first solicited as of the effective date of the enabling ordinance. This Section shall be implemented in a manner consistent with otherwise applicable provisions of this Chapter and competitive bidding laws.

H. Verification of Local Business Preference Eligibility. Any vendor or consultant claiming to be a local business shall so certify in the bid, in writing to the director. The city manager shall not be required to verify the accuracy or any such certifications, and shall have sole discretion to determine if a vendor or consultant meets the definition of local business.

I. Enforcement.

1. The information furnished by each bidder requesting a local business preference shall be under penalty of perjury.

2. No person or business shall knowingly and with intent to defraud, fraudulently obtain, retain, attempt to obtain or retain, or aid another in fraudulently obtaining or retaining or attempting to obtain or retain certification as a local business for the purpose of this Section.

3. No person or business shall willfully and knowingly make a false statement with the intent to defraud, whether by affidavit, report, or other representation, to a city official or employee for the purpose of influencing the certification or denial of certification of any entity as a local business.

4. A business which has obtained city certification as a local business by reason of having furnished incorrect supporting information or by reason of having withheld information, and which knew or should have known, the information furnished was incorrect or the information withheld was relevant to its request for certification, and which by reason of such certification has been awarded a contract to which it would not otherwise have been entitled, shall:
(a) Pay to the city any difference between the contract amount and what the city's costs would have been if the contract had been properly awarded;

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Ordinance No. 1191

(b) In addition to the amount described in subsection (i) above, be assessed a penalty in an amount of not more than ten (10) percent of the amount of the contract involved; and
(c) Be subject to debarment from future award of contracts from the city.

5. The penalties identified above shall also apply to any business that has previously obtained proper certification and, as a result of a change in its status would no longer be eligible for certification, fails to notify the city manager of this information prior to responding to a solicitation or accepting a contract award.

J. Promulgation of Administrative Rules. The city manager is authorized to adopt administrative rules supplemental to the provisions of this Chapter as necessary or appropriate to implement the provisions of this Section. The provisions of this Section and the rules adopted by the city manager shall be provided to potential bidders, vendors, and contractors to the widest extent practicable.”
Section 3. Severability. If any provision or clause of this Ordinance or any application of it to any person, firm, organization, partnership or corporation is held invalid, such invalidity shall not affect other provisions of this Ordinance which can be given effect without the invalid provision or application. To this end, the provisions of this Ordinance are declared to be severable.

Section 4. CEQA. The City Council hereby finds that this Ordinance is exempt from the California Environmental Quality Act pursuant to Section 15061(b)(3) of the CEQA Guidelines (14 Cal. Code Regs. 15061(b)(3)) because this Ordinance is not a project and does not have the potential for causing a significant effect on the environment. This Ordinance is intended only to establish a policy and procedure to purchase goods and services.

Section 5. Effective Date. This Ordinance shall take effect 30 days after passage.

PASSED, APPROVED and ADOPTED this 26
th day of January 2022.
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk

Item 13.

Ordinance No. 1191

APPROVED AS TO FORM:
___________________________________
Carlos Campos
City Attorney

Item 13.

Ordinance No. 1191

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Ordinance No. 1191 was duly and regularly introduced at a meeting of the City Council on the 8th day of December 2021, and that thereafter the said ordinance was duly passed and adopted at a regular meeting of the City Council on the 26 th day of January 2022.

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Andrea J. Carranza, MMC
Deputy City Clerk

Item 13.

RESOLUTION NO. 2022-03

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COACHELLA, CALIFORNIA, ESTABLISHING PURCHASING

AUTHORITY AND COMPETITIVE PROCUREMENT THRESHOLDS
UNDER SECTIONS 4.08.30 AND 4.08.60 RESPECTIVELY OF THE CITY’S

MUNICIPAL CODE
WHEREAS, chapter 4.08 of the City’s municipal code outlines purchasing procedures designed to make the City more effective, efficient and fiscally responsible in the procurement of goods and services; and
WHEREAS, purchasing authority thresholds are an integral part of the City’s purchasing procedures; and
WHEREAS, competitive procurement levels are an integral part of the City’s purchasing procedures; and
WHEREAS, purchasing authority thresholds and competitive procurement levels are set to benefit the City through cost savings; and
WHEREAS, the most cost effective thresholds for purchasing authority and competitive procurement fluctuate over time based on cost levels and changes in regulatory and local business environments.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the City Council of the City of Coachella, as follows:

Section 1. The City Council hereby sets purchasing authority thresholds under section

4.08.30 of the City’s Municipal Code as follows:

A. Award by Department Directors. Department directors may make purchases or contract for goods and services in an amount not to exceed ten thousand dollars ($10,000).

B. Award by City Manager. The City Manager may make purchases or contracts for goods and services, or take any other action in response to bids for public works contracts, in an amount not to exceed twenty-five thousand dollars ($25,000.00).

C. Award by City Council. The City Council shall make purchases or contracts for goods and services or take any other action in response to bids for public projects, that exceed twenty-five thousand dollars ($25,000.00).

Item 13.

Resolution No. 2022-03

Section 2. The City Council hereby sets competitive procurement thresholds for general goods and services under section 4.08.60 of the City’s Municipal Code as follows:

A. No competitive procurement consideration required for the procurement of goods and services under $5,000.

B. The informal quote process is required for the procurement of goods and services between $5,000 and $75,000.

C. The formal (bid/RFP/RFQ) process is required for the procurement of goods and services over $75,000.

Section 3. The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

Section 4. This Resolution shall become effective upon implementation of Ordinance 1191.

PASSED, APPROVED and ADOPTED this 26
th day of January 2022.
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
___________________________________
Carlos Campos
City Attorney

Item 13.

Resolution No. 2022-03

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2022-03 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 26 th day of
January 2022, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Andrea J. Carranza, MMC
Deputy City Clerk

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Item 13.

Fiscal Reserve Policy, Page 1 of 1

STAFF REPORT
1/26/2022
TO: Honorable Mayor and City Council Members
FROM: Nathan Statham, Finance Director
SUBJECT: Implementation of a Fiscal Reserve Policy
STAFF RECOMMENDATION:

Approve Resolution No. 2022-02 adopting a fiscal reserve policy.

BACKGROUND:

The City has historically maintained an informal fiscal reserve policy of 20% of the current year budgeted expenditures. The City has consistently maintained reserves in excess of the informal policy threshold. Per current financial reporting standards, the reserve balances have not been specifically classified or presented as committed reserve balances in the City’s financial statements due to the informal nature of the current reserve policy.

DISCUSSION/ANALYSIS
The informal reserve balance for the General Fund for fiscal year 2021-22 is $5,464,429. This balance is not reflected in the City’s financial statements as a reserve balance and is included in the unrestricted fund balance. The presentation of the reserve balance as part of the unrestricted fund balance leads public readers of the financial statements to believe that the entire unrestricted fund balance (projected to be $10.6 million in the fiscal 2021-22 budget) is available for general use. This presentation is not consistent with Council’s intentions to maintain a minimum reserve balance and potentially misrepresents the amount of financial resources available for general expenditure.

Implementing a fiscal reserve policy will allow for the fiscal reserve to be presented as a separate committed component of fund balance. This will properly convey the fiscal resources available for general expenditure to the public readers of the City’s financial statements.

This action will also allow for fund balance assignments to be presented in the City’s financial statements. These assignments will reflect known uses for reserves so members of the public will be aware of the need for financial resources and not presume the funds are available for general use.

Item 14.

Fiscal Reserve Policy, Page 2 of 1
The Water Authority and Sanitation District have needs for emergency reserves to cover temporary cash needs in the event of emergencies or deteriorated economic conditions. The reserve requirements of the fiscal reserve policy will be calculated into the utility rates established under prop 218.

The lack of a formal fiscal reserve policy has been detrimental to the City’s credit rating process during recent bond issuances and the adoption of such a policy is a condition of the 2022 Water Revenue Refunding Bonds currently being issued by the Water Authority.

FISCAL IMPACT:

This item will not have a direct fiscal impact in that no financial resources will be expensed. The item will provide for additional financial statement clarity and place limited restrictions on the use of fund balance reserves.

EXHIBITS:

1. Resolution No. 2022-02

2. Fiscal Reserve Policy - Exhibit A

Item 14.

RESOLUTION NO. 2022-02

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COACHELLA, CALIFORNIA ADOPTING A FISCAL RESERVE POLICY
WHEREAS, the City Council has long recognized a need to maintain certain levels of fund balance and net position reserves for the purpose of managing cash needs and to address unanticipated economic fluctuation; and
WHEREAS, it is considered an essential component of prudent fiscal management to retain appropriate fiscal reserves; and
WHEREAS, reserve levels have been informally maintained by the City; and WHEREAS, the City Council wishes to formalize fiscal reserve policies.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF COACHELLA HEREBY RESOLVES AS FOLLOWS:

SECTION 1 – Fiscal reserve balances will be maintained and presented in the City’s financial statements in accordance with the Fiscal Reserve Policy attached hereto as Exhibit A, and made a part hereof.

SECTION 2 – The Finance Director is authorized to make fund balance assignments or other financial statement presentations consistent with Generally Accepted Accounting Principles to fully present the financial position of the City.

SECTION 2 – The policies adopted by this resolution are in addition to and supplement any other legal requirements.

SECTION 3 - The City Clerk shall certify to the passage and adoption of this resolution and the same shall take effect and be in force.

PASSED, APPROVED and ADOPTED, this 26
th day of January 2022.
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk

Item 14.

Resolution No. 2022-02

APPROVED AS TO FORM:
___________________________________
Carlos Campos
City Attorney

Item 14.

Resolution No. 2022-02

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF COACHELLA )
I HEREBY CERTIFY that the foregoing Resolution No. 2022-02 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on this 26 th day of
January 2022, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Andrea J. Carranza, MMC
Deputy City Clerk

Item 14.

City of Coachella
Fiscal Reserve Policy
Introduction
The purpose of this policy is to ensure that the City has sufficient fiscal reserves (fund balance and net position) to address unforeseen economic or emergency conditions. It is the intent of this policy to commit a fiscally responsible amount of reserves to be used in the event of unforeseen economic downturns or emergency conditions that require the use of City funds to maintain consistent service levels. These reserves are intended to be utilized after other budget measures such as cuts to unnecessary appropriations and freezes in budget increases have been implemented.

The reserve thresholds contained in this policy are derived based on a prudent fiscal policy basis and are intended to balance the City’s mission to maximize the public benefit to residents while still having sufficient reserves to address unforeseen economic and emergency conditions.

General Fund
The primary driver of General Fund resource requirements is total general fund expenditures including budgeted transfers out. As a result, funds committed for reserve purposes will be measured in terms of months of the current year operating budget. Lower limit reserve requirements are viewed in relation to best practices promulgated by the Government Finance Officers Association which state that reserves should not be set at less than 2 months of General Fund operating expenditures (16.7%). Upper limit reserve requirements are considered in relation to recommendation of the Civic Federation that reserved not exceed 6 months (50%).

These upper and lower limit thresholds provide basis guidelines and are consistent with the historical financial results of the City.

Based on these considerations, a portion of the City’s General Fund balance will be committed to fiscal reserves equal to 3 months of the applicable fiscal year total general fund budget (25%).

Proposed budgets will not recommend appropriations that require the use of these committed reserve funds. The use of these committed reserves will be approved by specific resolution of the City Council.

Water Authority
The water authority primarily derives its revenues from utility fees charged to rate payers. Given the nature of the authority, reserves are considered prudent for two purposes. First, unforeseen economic or emergency conditions may arise. Second, the Authority experiences significant fluctuations in revenues regardless of approved rates from fluctuations in weather, temperature

Item 14.
and drought conditions. To accommodate these two situations, the Authority will maintain net position reserves composed of emergency funds and rate stabilization funds.

Emergency Reserves
Since rates are set for full cost recovery as stipulated by proposition 218, long term emergency costs would be recovered through rate increases. Emergency reserves would be required in the short term to cover emergency costs. To facilitate these temporary needs, the emergency reserve level will be retained at $250,000. Proposed budgets will not recommend appropriations that require the use of these committed reserve funds. The use of these committed reserves will be directly associated with an emergency situation (not requiring an official emergency declaration) approved by specific resolution of the City Council.

Rate Stabilization Reserves
Given regular significant fluctuations in water revenues, it is fiscally prudent to retain a portion of unrestricted net position balances during years with higher sales to cover budgeted expenses in years with lower sales. These reserves will be available for operating expenses in years with lower water sales.

In a year where current year water sales exceed the average sales for the previous five-years, 50% of the current year increase when compared to the prior year will increase the rate stabilization reserve balance. Rate stabilization reserves are available for operating budget appropriations in a year where sales decrease by more than 10% compared to the immediate preceding fiscal year up to the total amount of the rate stabilization reserve balance or the amount of decreased sales in excess of 10% when compared to the preceding fiscal year. In no year will the stabilization reserves exceed the largest single year decrease in the preceding 5 fiscal years.

Sanitary District
The Sanitary District primarily derives its revenues from utility fees charged to rate payers. These fees are largely fixed annual assessments. Given the nature of the District, reserves are considered prudent to offset unforeseen economic or emergency conditions that may arise.

Since rates are set for full cost recovery as stipulated by proposition 218, long term emergency costs would be recovered through rate increases. Emergency reserves would be required in the short term to cover emergency costs. To facilitate these temporary needs, the emergency reserve level will be retained at $200,000. Proposed budgets will not recommend appropriations that require the use of these committed reserve funds. The use of these committed reserves will be directly associated with an emergency situation (not requiring an official emergency declaration) approved by specific resolution of the City Council.

Insufficient Unrestricted Fund/Net Position Balances on Implementation

Item 14.

On initial implementation and periodically fund/net position balances may not be sufficient to meet these reserve requirements. When fund/net position balances are not sufficient to meet reserve requirements, a plan will be documented to remedy the reserve deficiency using a combination of budget modifications and rate/revenue increases. This plan should not exceed five years.

Item 14.

STAFF REPORT
1/26/2022
TO: Honorable Mayor and City Council Members
FROM: Maritza Martinez, Public Works Director
SUBJECT: Initiating the Formation of Landscaping and Lighting Maintenance District No.39 (Sevilla–Tract 38084) (“LLMD 39”), Declaring Intention to Form, Levy and Collect Assessments Commencing in Fiscal Year 2022/2023, preliminary approval of Engineer’s Report and Setting Time and Place for Public Hearing to Conduct Property Owner Protest Ballot Proceedings
STAFF RECOMMENDATION:

Adopt Resolution No. 2022-06 Initiating Proceedings for the Formation of the Landscaping and Lighting Maintenance District No. 39 (Sevilla-Tract 38084); and Directing the Preparation and Filing of an Engineer’s Report
Adopt Resolution No. 2022-07 Declaring the City’s Intention to form the Landscaping and Lighting Maintenance District No. 39 (Sevilla-Tract 38084); to Levy and Collect Annual Assessments related thereto Commencing Fiscal Year 2022/2023, Accepting and Approving the Engineer’s Report and Assessment Diagram; to Conduct a Property Owner Protest Ballot Proceeding on the Matter of the New Assessments; and Setting a Time and Place for the Public Hearing
BACKGROUND:

The Landscaping and Lighting Act of 1972, beginning with Section 22500 of the California Streets and Highways Code, authorizes the City Council to establish a special district to pay for the costs to operate and maintain public improvements that benefit private properties. New developments are required to form the special districts in order to pay for the public improvements.

The first step in the formation process is initiating proceedings and directing preparation and filing of an Engineer’s Report. The next step is to declare the City’s intention to form the special district, to levy and collect assessments, approving the Engineer’s Report and Assessment Diagram, and declare public hearing to conduct Property Owner Protest Ballot Proceedings. The final step of the formation process is to hold a public hearing to count the ballots, declare the results of the balloting, approve the final Engineer’s Report, and to authorizes the levy and collection of assessments if no majority protest exists.

Item 15.

Pulte Group (“Developer”) requested the formation of LLMD 39 as a requirement for the conditions of development, for Pulte Sevilla – Avenue 51 (Tract Map No. 38084). The new development will consist of 107 residential properties and 2 retention basins with associated private streets, utilities, landscaping and lighting. The Tract will be generally located east of Van Buren Street, west of Frederick Boulevard, north of Avenue 51 and generally south of Avenue 50.

The proposed LLMD 39 will be formed as a funding mechanism to fund the ongoing operation and maintenance for improvements within the Tract.

An Engineer’s Report has been prepared, a copy of which is submitted to the City Council for review. A copy of the Engineer’s Report is also made available to the Public for review in the City’s Public Works Department.

It is purposed to schedule the public hearing and conduct the Property Owner Protest Ballot Proceedings at the regular City Council Meeting on March 23, 2022.

FISCAL IMPACT:

There is no fiscal impact to the City as a result of this formation. The proposed assessments have been prepared based upon the maintenance costs necessary and required to maintain the common areas with the District.

Attachments:

Engineer’s Report LLMD 39
Resolution No. 2022-06
Resolution No. 2022-07

Item 15.

CITY OF COACHELLA
ENGINEER’S REPORT
Proposed
Formation of Landscaping and
Lighting Maintenance District No. 39
(Sevilla-Tract 38084)
Establishment of Annual Assessments
Commencing Fiscal Year 2022/2023
Intent Meeting: January 12, 2022
Public Hearing: March 9, 2022

CITY OF COACHELLA
53990 ENTERPRISE WAY
COACHELLA, CA 92236

PREPARED BY

WILLDAN FINANCIAL SERVICES
NOVEMBER 2021

Intent Meeting: October 26, 2021
Public Hearing: December 142021
27368 Via Industria Suite 200
Temecula, CA 92590
T 951.587.3500 | 800.755.6864
F 951.587.3510
www.willdan.com

Item 15.

ENGINEER'S REPORT STATEMENT
Formation of the
City of Coachella
Landscaping and Lighting Maintenance District No. 39
(Sevilla-Tract 38084)
Establishment of Annual Assessments
County of Riverside, State of California
As part of the Resolution of Intention packet presented for the consideration of the Coachella City Council this Report and the enclosed budgets, diagrams and descriptions outline the proposed improvements and assessments related to the formation of territory to be known as the City of Coachella Landscaping and Lighting Maintenance District No. 39 (Sevilla-Tract 38084) commencing in fiscal year 2022/2023, commencing in fiscal year 2022/2023. Reference is hereby made to the Riverside County Assessor’s Maps for a detailed description of the lines and dimensions of parcels subject to the proposed assessment for the newly formed District.

The undersigned respectfully submits the enclosed Report as directed by the Coachella City Council.

Dated this ____________ day of ______________, 2022
Willdan Financial Services
Assessment Engineer
On Behalf of the City of Coachella
By: ________________________________
Stacee Reynolds,
Senior Project Manager
By: ________________________________
Tyrone Peter
P.E. # C 81888

Item 15.

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................1 PART I — PLANS AND SPECIFICATIONS.........................................................................4 A.PROPERTIES WITHIN THE DISTRICT ............................................ 4 B.IMPROVEMENTS AND SERVICES ................................................. 4 LANDSCAPING IMPROVEMENTS .............................................. 5 STREET LIGHTING IMPROVEMENTS ......................................... 5 PART II — METHOD OF APPORTIONMENT......................................................................6 CALIFORNIA CONSTITUTION....................................................................6 A.BENEFIT ANALYSIS ................................................................... 7 SPECIAL BENEFITS..........................................Error! Bookmark not defined.

GENERAL BENEFIT .....................................................................................7 REASON FOR THE ASSESSMENT ............................................. 8 B.ASSESSMENT METHODOLOGY ................................................... 9 EQUIVALENT BENEFIT UNITS...................................................................9 ASSESSMENT CALCULATIONS..............................................................10 C.ASSESSMENT RANGE FORMULA .............................................. 10 PART III — THE DISTRICT BUDGET.................................................................................12 PART IV — DISTRICT DIAGRAM .......................................................................................14 PART V — ASSESSMENT ROLL .......................................................................................16

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

INTRODUCTION
Pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the “1972 Act”), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the “California Constitution”), the City Council of the City of Coachella, County of Riverside, State of California (hereafter referred to as “City”), propose to form and levy special benefit assessments for the district to be designated as:

Landscaping and Lighting Maintenance District No. 39
(Sevilla-Tract 38084)
(hereafter referred to as the “District”), which includes all lots and parcels of land within Tract No. 38084 that will receive special benefit from the landscaping and lighting improvements installed and maintenance in connection with the development of these residential subdivisions within the City limits of Coachella. This Engineer’s Report (hereafter referred to as “Report”) has been prepared in connection with the formation of said District and the levy and collection of annual assessments related thereto commencing in fiscal year 2022/2023, as required pursuant to Chapter 1, Article 4 of the 1972 Act.

The City Council proposes to form the District, and levy and collect annual assessments on the County tax roll to provide ongoing funding for the costs and expenses required to service and maintain landscaping and street lighting improvements and appurtenant facilities that are necessary and essential requirements for the development of the properties within the District.

The improvements to be provided by the District and the assessments described herein are made pursuant to the 1972 Act and the substantive and procedural provisions of the California Constitution.

The formation of this District and the assessments described herein will provide a funding source for the continued operation and maintenance of the Landscaping and Lighting improvements that are directly associated with the development of properties within the District and for the special benefit of those properties.

The budgets and assessments described in this Report are based on the planned improvements and development requirements associated with Tract No. 38084. The budgets described herein, represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to ensure proper maintenance, servicing and funding needs to support the landscaping and lighting improvements that provide special benefit to properties within the District.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (APN) by the Riverside County Assessor’s Office. The Riverside County Auditor-Controller uses Assessor’s Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments.

As part of this District formation, the City shall conduct a property owner protest ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4. In conjunction with this ballot proceeding, the City

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

Council will conduct a public hearing to consider public testimonies, comments, and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing, property owner protest ballots received will be opened and tabulated to determine whether majority protest exists (ballots shall be weighted based on the calculated proportional assessment amount for each benefiting parcel), and by resolution the City Council will confirm the results of the ballot tabulation. If majority protest exists, proceedings for the formation of the District and the levy of the proposed assessments shall be abandoned. If tabulation of the ballots indicates that majority protest does not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council may approve the Report (as submitted or amended), order the formation of the District, and approve the levy and collection of assessments. In such case, the assessments for fiscal year 2022/2023 shall be submitted to the Riverside County Auditor-Controller for inclusion on the property tax roll for each parcel.

Each subsequent fiscal year, a Report shall be prepared and presented to the City Council describing any changes to the improvements, the proposed services, the annual budget and assessments for that fiscal year, and the City Council shall hold a noticed public hearing regarding these matters prior to approving and ordering the proposed levy of assessments.

This Report consists of five (5) parts:

Part I
Plans and Specifications: A description of the District boundaries and the proposed improvements associated with the District. The District is being formed with a single benefit zone encompassing all properties within the territory identified as Pulte Sevilla – Avenue 51 (Tract No. 38084).

Part II
Method of Apportionment: A discussion of benefits the improvements and services provide to properties within the District and the method of calculating each property’s proportional special benefit and annual assessment. This section also identifies and outlines an Assessment Range Formula that provides for an annual adjustment to the maximum assessment rate that establishes limits on future assessments, but also provides for reasonable cost adjustments due to inflation without the added expense of additional property owner protest ballot proceedings.

Part III
The District Budget: An estimate of the annual costs to operate, maintain and service landscaping and lighting improvements related to the properties within the District. This budget includes an estimate of anticipated direct maintenance costs and incidental expenses including, but not limited to administration expenses and the collection of appropriate fund balances to establish an initial maximum assessment to be approved by the property owners of record. The special benefit maximum assessment proposed for this District is based on an estimate of the annual maintenance and operational expenses at full build out of the improvements. The proposed assessments for the first fiscal year (2022/2023), and each subsequent year shall be based on the estimated net annual cost of operating, maintaining, and servicing the District improvements for that fiscal year. The proposed maximum assessment (Rate per Equivalent Benefit Unit) identified in the budget of this Report establishes the initial maximum assessment rate for the District in fiscal year 2022/2023 and shall be adjusted annually by the Assessment Range Formula described in the method of apportionment.

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

Part IV
District Diagram: A Diagram showing the exterior boundaries of the District is provided in this Report and includes all parcels that will receive special benefits from the improvements. Parcel identification, the lines and dimensions of each lot, parcel, and subdivision of land within the District, are inclusive of all parcels as shown on the Riverside County Assessor's Parcel Maps as they existed at the time this report was prepared and includes all subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the Riverside County Assessor’s maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District.

Part V
Assessment Roll: A listing of the proposed assessment amount to be presented to the property owners of record in the protest ballot proceedings required pursuant to the provisions of the California Constitution. The proposed assessment amount for each parcel is based on the parcel’s proportional special benefit as outlined in the method of apportionment and the proposed initial maximum assessment rate.

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

PART I — PLANS AND SPECIFICATIONS
A. PROPERTIES WITHIN THE DISTRICT
Pulte Sevilla – Avenue 51 (Tract No. 38084), will consists of 107 residential properties and 2 retention basins with associated private streets, utilities, landscaping, and lighting.

The purpose of the District is to ensure the ongoing maintenance, operation, and servicing of landscaping and lighting improvements installed in connection with development of properties within the District. This District will provide the financial mechanism (annual assessments) by which the ongoing operation and maintenance of these improvements will be funded.

The District structure, proposed improvements, method of apportionment and assessments described in this Report are based on current development and improvement plans including all estimated direct expenditures, incidental expenses, and reserves associated with the maintenance and servicing of the improvements.

The District is located within the boundaries of the City of Coachella, generally located east of Van Buren Street, west of Frederick Boulevard, north of Avenue 51 and generally south of Avenue 50.

B. IMPROVEMENTS AND SERVICES
The purpose of this District is to fund the activities necessary to operate the corresponding landscaping and streetlighting improvements required of properties within the District as well as the maintenance of landscaping. The maintenance and operation of the landscaping improvements may include but are not limited to all materials, equipment, labor, and incidental expenses deemed necessary to keep these improvements in satisfactory condition as well as the collection of assessment installments for the periodic service activities, repair or rehabilitation of various improvements and facilities. The street light improvements include operation of lights only, not maintenance.

Detailed maps and descriptions of the location and extent of the improvements to be maintained by the District are on file with the Public Works Division and by reference are made part of this Report. These plans and specifications may be amended or modified from time to time to reflect future property development within the District or necessary changes to the planned developments currently approved by the City. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received from those various improvements. The District improvements and services are generally described as:

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

LANDSCAPING IMPROVEMENTS
The landscape improvements to be funded by the District assessments may include, but are not limited to turf, ground cover, shrubs, and plants; vines, trees; irrigation and drainage systems; masonry walls, retaining walls, or other fencing; monuments; hardscapes; concrete, gravel, or decomposed granite trails, pathways and/or access roads; and other related appurtenant facilities within the District that have been dedicated to the City for maintenance. Other Improvements including but are not limited to:
• designated parkway side-panels within the rights-of-way or easements adjacent to the streets and properties within the District, including parkways and entryways; • various non-street landscaping and/or vegetation management areas including the storm drainage detention basin areas, trails, and any other dedicated open space or greenbelt areas within the District; and
At build-out, it is anticipated that the District’s landscape improvements will generally include, but is not limited to approximately: eighty-six thousand, eight hundred and thirty-six (86,836) square feet of ground covering and shrubs including ninety-three (93) irrigated drought-tolerant trees. Landscaping located on two (2) storm drainage detention basin lots, also on the north side of Avenue 51, including the entrance at Via Prado as well as the corners of Calle Perez and Calle Larriva.

STREET LIGHTING IMPROVEMENTS
At build-out, it is anticipated that the District’s street lighting improvements will generally include, but is not limited to approximately:
• Providing energy to operate twenty-four (24) street lighting poles within Tract Map No. 38084.

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

PART II — METHOD OF APPORTIONMENT
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, including the acquisition, construction, installation and servicing of landscape improvements and related facilities. The 1972 Act requires that the cost of these improvements be levied according to benefit rather than assessed value:

Section 22573 defines the net amount to be assessed as follows:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
The formula used for calculating assessments reflect the composition of parcels within the District and the improvements and activities to be provided and have been designed to fairly apportion the cost of providing those improvements based on a determination of the proportional special benefits to each parcel, consistent with the requirements of the 1972 Act and the provisions of Proposition 218 and Article XIII D of the California Constitution.

CALIFORNIA CONSTITUTION
The costs to operate and maintain the District improvements are identified and allocated to properties on the special benefits conferred. The improvements provided and for which properties within the District are to be assessed are identified as local improvements and related amenities that were installed in connection with the development of the properties and/or would otherwise be required for the development of properties within the District and consistent with the provisions of the 1972 Act. The assessments and method of apportionment described herein are based on the premise that these improvements would otherwise not have been installed and maintained by the County. The improvements were installed as part of the development or planned development of the parcels within the District and the level of maintenance required for the improvements is greater than what the County would otherwise install, maintain, and fund elsewhere in the County.

Article XIII D Section 2(d) defines District as follows:
“District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service”; Article XIII D Section 2(i) defines Special Benefit as follows:
“Special benefit” means a particular and distinct benefit over, and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit.”

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

Article XIII D Section 4(a) defines proportional special benefit assessments as follows:
“An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” A. BENEFIT ANALYSIS
The improvements provided within the District, for which properties will be assessed have been identified as necessary, desired and/or required for the orderly development of the properties within the District to their full potential, consistent with the development plans.

SPECIAL BENEFITS
The ongoing maintenance of landscaped areas within the District will provide aesthetic benefits to the properties and are intended to provide a more pleasant environment to walk, drive, live, and work. The primary function of these improvements and related amenities is to serve as an aesthetically pleasing enhancement and open space area for the benefit of the immediate surrounding properties and development for which the improvements were constructed and installed, and/or were facilitated by the development or potential development of properties within the District. These improvements are an integral part of the physical environment associated with the parcels in the District and while these improvements may in part be visible to properties outside the District and/or occasionally accessed by the general public, if these improvements are not properly maintained, it is the parcels within the District that would be aesthetically burdened and/or impacted directly by potential environmental issues such as dust, debris, pests, water runoff, erosion, and fire hazards. Thus, the maintenance of these improvements provides advantages to the assessed properties that affect the assessed parcels in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share.

Collectively these improvements, related amenities, and services which will be funded by the special benefit assessments, enhance the overall use, presentation, enjoyment, recreational access, and marketability of the properties, and ensure the long-term cost-efficiency of services that are obtained through the County provided maintenance (economy of scale).

GENERAL BENEFIT
In reviewing the location and extent of the specific landscaped areas and improvements to be funded by the District assessments and the proximity and relationship to properties to be assessed, it is evident these improvements have been installed as part of the development of properties within the District or are improvements that would otherwise be shared by and/or required for development of those properties. Although the improvements are largely located on the north side of Avenue 51, including the entrance at Via Prado as well as the corners of Calle Perez and Calle Larriva of the development and may be visible and/or accessible to the general public, it is evident that the ongoing maintenance of these improvements are only necessary for the appearance and advantage of the properties within the District. It is also evident that these

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

improvements were not required nor necessarily desired by any properties or developments outside of the District boundaries.

In the absence of a special funding, these types of improvements would not have been installed by the developer per the City’s conditions and the City’s maintenance of these improvements would for the most part, be limited to weed abatement (fuel modification areas), rodent control, and erosion control services only. This basic or baseline level of service would typically provide for periodic servicing of the open space areas on an as-needed basis. This baseline level of service, would only provide a level of service that was necessary to ensure public safety, essential property protection and potential property damage. However, this baseline level of service results in a far less visually pleasing environment than is created with the enhanced levels of services associated with the regular landscape maintenance that can be provided through the District assessments.

In addition to this baseline level of service, it is recognized that there are indirect or incidental benefits to properties within the District as well as the general public that are associated with regular landscape maintenance services, including minimization of dust and debris, and decreased potential water runoff from the open space areas.

It is also recognized that with the regular maintenance of the improvements, the effort and cost to monitor and address these more indirect issues are reduced to isolated areas and/or less frequent servicing, and these activities generally represent less than two percent (2%) of the overall maintenance costs. Therefore, conservatively, we estimate that the costs associated with these indirect and incidental benefits (General Benefit) do not exceed five percent (5%) of the combined annual expenses for General Maintenance identified in the annual maintenance budget contained in "Part III – The District Budget” of this Report.

REASON FOR THE ASSESSMENT
The assessments proposed to be annually levied and collected on parcels within LLMD 39 are established to defray the costs of the maintenance, operation, and servicing of improvements, as previously identified in “Part I - Plans and Specifications” of this Report.

These identified improvements, services and activities and the associated costs to provide such improvements identified in “Part III – The District Budget” of this Report, have been carefully reviewed and proportionally allocated to the parcels that receive special benefits from those improvements and services and are inclusive of all parcels that receive special benefits which are identified in “Part V – Assessment Roll” of this Report pursuant to the provisions of the California Constitution and 1972 Act. The formulas used for calculating special benefits within the District as outlined by this Report, have been established to reflect the composition of the parcels and the improvements and services to be provided and to fairly apportion the cost of those improvements based on the special benefits to each parcel. The method of apportionment (method of assessment) set forth in the Report is based on the premise that each assessed property receives special benefits from the improvements to be funded by the assessments, and the assessment obligation for each parcel reflects that parcel’s proportional special benefits as compared to other properties that receive special benefits from the improvements. Furthermore, such assessments shall be used solely for the maintenance operation and servicing of the District improvements as authorized pursuant to the 1972 Act and in accordance with the California Constitution, the proportionate special benefits to each parcel shall be determined in

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

relationship to the entirety of the public improvement or the maintenance and operation expenses being provided and for which the property receives special benefits.

B. ASSESSMENT METHODOLOGY
The method of apportionment for the District calculates the receipt of special benefit from the respective improvements based on the actual or proposed land use of the parcels within the District. The special benefit received by each lot or parcel is equated to the overall land use of the parcel based on the parcel’s actual land use or proposed planned development and is reliant upon the special benefit received from the improvements planned within the District.

To identify and determine the special benefit to be received by each parcel, it is necessary to consider the entire scope of the District improvements as well as individual property development within the District. The costs associated with the improvements shall be fairly distributed among the parcels based upon the special benefit received by each parcel.

Additionally, in compliance with Article XIIID Section 4 of the State Constitution, each parcel’s assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements.

EQUIVALENT BENEFIT UNITS
As previously noted in the “Part 1 – Plans and Specifications” section of this Report, at build-out, it is anticipated that the District will incorporate one hundred seven (107) Single Family Residential homes; and landscaped areas and basins which will be funded and maintained through an annual assessment.

To allocate special benefits fairly between the parcels, an Equivalent Benefit Unit (EBU) methodology is utilized for this District. The Equivalent Benefit Unit (EBU) method of assessment apportionment establishes a basic unit (base value) of benefit and then calculates the benefit derived by each assessed parcel as a multiple (or a fraction) of the basic unit. Based on an evaluation of the overall property development proposed within the District at build-out (100 % of the development acreage will be single family residential), for purposes of this Report, an EBU is the quantum of benefit derived from the funded improvements and services by a single-family residential parcel or unit. Thus, the "benchmark" property (the single-family residential parcel/unit) derives one (1.0) EBU of benefit. All other land uses are proportionately weighted (assigned an EBU) based on an assessment formula that equates the property’s specific development and property characteristics to that of the benchmark property (singlefamily residential). This proportional weighting may be based on several factors that may include but are not limited to the type and status of development (land use), size of the property, development plans or restrictions, typical development densities, or other property related factors. Generally, for most assessment districts the calculation of each parcel’s proportional special benefits can be reasonably determined by applying one or more of these factors. For the District, it has been determined that the key property related factors to be considered in the determination of the proportional special benefits for each parcel is limited to the property’s current or approved land use (development type); and the property’s development status (developed versus undeveloped).

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

The following outlines the land use classifications that are associated with or may be associated with the parcels in the District and the proportional Equivalent Benefit Units established for those land use classifications.

Single-Family Residential Property — is defined as a fully subdivided residential home site with or without a structure. For purposes of establishing the proportional special benefits and equivalent benefit units for other land uses in this District, the single-family residential land use is designated as the basic unit of assessment and shall be assigned 1.00 EBU per parcel.

Vacant — is defined as property that has been identified as parcels with no development but have development potential. Although it is recognized that the improvements provided within the District were primarily constructed and installed as the result of property development, it is also recognized that the majority of these improvements were constructed in part to support the overall development of properties within the District and/or Development to their full and best use, including vacant undeveloped properties. Therefore, it has been determined that parcels identified as Vacant/Undeveloped Parcels shall be assigned the pro-rata share of the build-out EBU total (107.00) based on acreage, if the lots have not been sub-divided as indicated on tract map. The parcels in the District are slated to be fully developed by fiscal year 2022/23.

ASSESSMENT CALCULATIONS
The total number of Equivalent Benefit Units (EBU’s) is the sum of all individual EBU's applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBU’s of all parcels benefiting from the improvements. This Rate is then applied back to each parcel’s individual EBU to determine the parcel’s proportionate benefit and assessment obligation for the improvements.

Total Balance to Levy / Total EBU = Levy per EBU
Levy per EBU x Parcel EBU = Parcel Levy Amount
C. ASSESSMENT RANGE FORMULA
Any new or increased assessment requires certain noticing and meeting requirements by law.

Prior to the passage of Proposition 218 (California Constitution Articles XIII C and XIII D), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation).

The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs. Commencing with fiscal year 2023/2024, the amount of the assessment for the District may be increased to adjust for increases in labor and material costs. This increase will be based upon the greater of three (3) percent or the annual change in the Consumer Price Index, All Urban Consumers, for the

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

Riverside-San Bernardino-Ontario, CA Area, as determined by the United States Department of Labor, or its successor, without conducting another mailed ballot election.

The Maximum Assessment is adjusted annually and is calculated independent of the annual budget and proposed annual assessment. Any proposed annual assessment (rate per EBU less than or equal to this Maximum Assessment) is not considered an increased assessment, even if the proposed assessment is greater than the assessment applied in the prior fiscal year.

Although the Maximum Assessment will increase each year, the actual assessment may remain unchanged. The Maximum Assessment adjustment is designed to establish a reasonable limit on assessments. The Maximum Assessment calculated each year does not require or facilitate an increase to the annual assessment and neither does it restrict assessments to the adjusted maximum amount. If the budget and assessment for the fiscal year do not require an increase, or the increase is less than the adjusted Maximum Assessment, then the required budget and assessment may be applied without additional property owner balloting. If the budget and assessments calculated requires an increase greater than the adjusted Maximum Assessment, then the assessment is considered an increased assessment and would be subject to balloting.

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

PART III — THE DISTRICT BUDGET
The following budget outlines the estimated annual costs to be collected and deemed necessary for the operation, maintenance, and servicing of the improvements for the District. The maximum assessment (Rate per Equivalent Benefit Unit) identified by this budget establishes the initial maximum assessment for the District in fiscal year 2022/2023. This assessment rate shall be adjusted annually by the Assessment Range Formula described in the method of apportionment and collectively this assessment rate and inflationary adjustment will be presented to the property owners of record for approval as part of the balloting process for new or increased assessments in accordance with the provisions of the California Constitution, Article XIII D.

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

LLMD 39, (Sevilla-Tract 38084)
Fund Number TBD
Levy Component LLMD 39 (Sevilla)
Landscape Maintenance Contract $7,266
Landscape Utilities 4,515
Tree Trimming Included in Maintenance
Streetlight Utilities 4,000
Storm Drainage Detention Basin Maintenance 10,442
Total Direct Costs $26,223
Levy Administration and Professional Services $254
County Collection Fee 99
City Overhead and Administration 6,632
Total Administration Costs $6,985
TOTAL DIRECT AND ADMIN COSTS $33,207
Reserve Collection/(Transfer) $13,111
Capital Improvement Fund Collection General Area & Storm Drainage Detention Basin/(Transfer) 684 General Benefit Contribution (2,171)
General Fund/Other Revenue (Contributions) 0
Total Collections/(Credits) $11,625
Balance to Levy (Budgeted) $44,832
Total Parcels 1
Total Parcels Levied 1
Total Equivalent Benefit Units 107.00
Assessment Rate per Benefit Unit $419.00
Maximum Rate per Benefit Unit (Current Fiscal Year) $419.00 Estimated Beginning Reserve Fund Balance $0
Reserve Fund Adjustments 13,111
Estimated Ending Reserve Balance $13,111
Estimated Beginning Capital Improvement Fund Balance $0 Capital Improvement Adjustments 684
Estimated Ending Capital Improvement Balance $684

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

PART IV — DISTRICT DIAGRAM
The following District Diagram identifies the area of land within the District to be designated as “Landscaping and Lighting Maintenance District No. 39 (Sevilla-Tract 38084)”, based on the development and improvement plans for the District, Riverside County Assessor’s Maps, and Riverside County Assessor’s property information as the same existed at the time this Report was prepared. The District includes Riverside County Assessor’s Parcel Map Book 768 Page 50 Parcel 2. The combination of this map and the Assessment Roll contained in Part V of this Report constitute the Assessment Diagram for the District. The maximum assessment rate, assessment range formula and the proposed assessment amount for each of the lots and parcels of land within the District, as described herein, shall be presented to the property owners of record for approval or protest in accordance with the provisions of the California Constitution.

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

Item 15.

Engineer’s Report
City of Coachella
Landscaping and Lighting Maintenance
District No. 39 (Sevilla-Tract 38084)

PART V — ASSESSMENT ROLL
Parcel identification for each lot or parcel within the District is outlined in the preceding Assessment Diagram and is based on available parcel maps and property data from the Riverside County Assessor’s Office at the time this Engineer’s Report was prepared. A listing of the lots and parcels to be assessed within this District commencing in Fiscal Year 2022/2023, along with the assessment amount for each such lot or parcel is provided below.

If any parcel submitted for collection is identified by the County Auditor-Controller to be an invalid parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor-Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rates described in this Report as approved by the City Council. Therefore, if a single parcel is subdivided to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

Assessor's
Parcel Number Owner EBU
Maximum
Assessment Rate
Maximum
Assessment
768-050-002 PULTE HOME CO 107.00 $419.00 $44,833.00

Item 15.

RESOLUTION NO. 2022-06

A RESOLUTION OF THE CITY COUNCIL OF COACHELLA,

CALIFORNIA, INITIATING PROCEEDINGS FOR THE FORMATION OF THE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO.
39 (SEVILLA-TRACT 38084); AND DIRECTING THE PREPARATION AND FILING OF AN ENGINEER’S REPORT RELATED THERETO,
PURSUANT TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE

CALIFORNIA STREETS AND HIGHWAYS CODE
WHEREAS, the City Council of the City of Coachella (“City”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Division 15, Part 2 of the California Streets and Highways Code (“Act”), desires to initiate proceedings for the formation of an assessment district within the City to be known and designated as the Landscaping and Lighting Maintenance District No. 39 (Sevilla-Tract 38084) (“District”), and to establish the maximum annual assessments for the District as of fiscal year 2022/2023 to pay for the operation, maintenance, and servicing of local landscaping, street lighting, park and trail improvements, and appurtenant facilities related thereto; and
WHEREAS, pursuant to Chapter 2, Article 1 Section 22585 of the Act, proceedings for the formation of an assessment district shall be initiated by resolution and that resolution shall generally describe the proposed improvements, describe the proposed assessment district, and specify a distinctive designation for the district and order the engineer to prepare and file a report in accordance with Article 4 (commencing with Section 22565) of Chapter 1 of the Act; and WHEREAS, the City has retained Willdan Financial Services (“Willdan”) as the Assessment Engineer of Work for the purpose of assisting with the formation of the District, the establishment of assessments, and to prepare and file a report with the City Clerk concerning the formation of the District and the proposed annual levy of assessments in accordance with the Act and the provisions of the California Constitution Article XIIID (the “Constitution”).

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

SECTION 1. That the foregoing recitals are true and correct.

SECTION 2. That the City proposes to form the Landscaping and Lighting Maintenance District No. 39 (Sevilla) incorporating the parcels of land within the development area known as Tract No. 38084 generally located within the City of Coachella, north of Avenue 51, and generally south of Avenue 50 and east of the Van Buren Street and west of Frederick Street; to establish the maximum assessment for fiscal year 2022/2023 including an inflationary adjustment (assessment range formula); and to levy and collect annual assessments for the District as required for fiscal year 2022/2023 to pay for the operation, maintenance, and servicing of local landscaping and lighting improvements, and appurtenant facilities related thereto.

SECTION 3. The territory to be included within the District as described above incorporates approximately twenty-seven acres (26.81 acres) which are included and identified on

Item 15.

Resolution 2022- 06

the Riverside County Assessor’s Parcel Number (APN) Map as Book 768, Page 050, Parcel 002.

By reference, these maps are made part of this resolution.

SECTION 4. That the improvements for which the District is formed, may generally include at buildout, local street lighting, two (2) retention basin areas and streetscape landscaping improvements and appurtenant facilities that are maintained and serviced for the benefit of real property within the District. These local improvements to be maintained will be established in connection with development of the properties within the District, and which shall be maintained for the special benefit of those properties. The maintenance and servicing of the improvements generally include, but are not limited to, the materials, equipment, utilities, labor, and incidental expenses, including administrative expenses, required for annual operation, as well as the performance of periodic repairs and replacement activities as needed to provide for the growth, health, and beauty of the trees and landscaping within specified public right-of-ways and/or dedicated easements, the proper operation and functioning of related landscape facilities including, irrigation and drainage systems, specified fencing, and hardscapes; and the proper operation of the public street lights and street lighting system within the public rights-of-way.

SECTION 5. In accordance with Chapter 2 Article 1 Section 22586 of the Act, the City Council hereby directs the Assessment Engineer Work to prepare and file with the City Clerk an Engineer's Report concerning the formation of the District; the improvements and services connected therewith and the annual assessments that may be levied and collected commencing with the fiscal year 2022/2023, in accordance with Chapter 1 Article 4 (commencing with Section 22565) of the Act.

PASSED, APPROVED, and ADOPTED this 26
th day of January 2022.
__________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
_________________________________
Carlos Campos
City Attorney

Item 15.

Resolution 2022- 06

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2021-06 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 26 th day of
January 2022, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Andrea J. Carranza, MMC
Deputy City Clerk

Item 15.

RESOLUTION NO. 2022-07

A RESOLUTION OF THE CITY COUNCIL OF COACHELLA,
CALIFORNIA, DECLARING THE CITY’S INTENTION TO FORM THE
LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 39
(SEVILLA-TRACT 38084); TO LEVY AND COLLECT ANNUAL

ASSESSMENTS RELATED THERETO COMMENCING FISCAL YEAR
2022/2023, ACCEPTING AND APPROVING THE ENGINEER’S REPORT AND ASSESSMENT DIAGRAM; TO CONDUCT A PROPERTY OWNER

PROTEST BALLOT PROCEEDING ON THE MATTER OF THE NEW
ASSESSMENTS; AND SETTING A TIME AND PLACE FOR THE PUBLIC

HEARING ON THESE MATTERS PURUSANT TO THE PROVISIONS OF

THE CALIFORNIA CONSTITUTION ARTICLE XIIIID
WHEREAS, the City Council of the City of Coachella (“City”), pursuant to provisions of the Landscaping and Lighting Act of 1972 being Part 2, Division 15 of the California Streets and Highways Code (“Act”), did by previous Resolution, initiate proceedings for the formation of an assessment district within the City to be known and designated as the Landscaping and Lighting Maintenace District No. 39 (Sevilla-Tract 38084) (“District”), and to establish the maximum annual assessments for the District commencing fiscal year 2022/2023 to pay for the operation, maintenance, and servicing of local landscaping, street lighting, park and trail improvements, and appurtenant facilities related thereto; and
WHEREAS, the Assessment Engineer of Work has prepared and filed an Engineer’s Report with the City Clerk in connection with the formation of the District, the establishment of the proposed maximum assessment connected therewith and the assessment for fiscal year 2022/2023 (beginning July 1, 2022 and ending June 30, 2023) with the City Clerk pursuant to Section 22623 of the Act, and said report has been presented to the City Council, and is incorporated herein by reference.

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

SECTION 1. That the foregoing recitals are true and correct.

SECTION 2. The Engineer’s Report as presented, consists of the following:

The Plans and Specifications which describe the boundaries of the District and the improvements associated therewith that provide special benefits to the parcels therein.

The Method of Apportionment that details the method of calculating proportional special benefit and the annual assessment obligation for each affected parcel.

The Estimate of Improvement Costs including the calculation of the assessments and the estimated annual funding (Budget) required for the annual maintenance, servicing, and operation of the landscaping and lighting improvements and specifically the costs associated with the improvements determined to be of special benefit to parcels within the District, establishing the proposed maximum assessment and the assessment for fiscal year 2022/2023.

Item 15.

Resolution 2022-07

The Assessment Range Formula (Annual Inflationary Adjustment) to be applied to the proposed Maximum Assessment Rate per Equivalent Benefit Unit in subsequent fiscal years. The proposed Maximum Assessments including the Assessment Range Formula shall be presented to the property owner(s) of record in a protest ballot proceeding pursuant to the California Constitution Article XIIID.

A District Diagram outlining the boundaries of the District for fiscal year 2022/2023.

An Assessment Roll containing the proposed maximum assessment for fiscal year 2022/2023 for each Assessor Parcel Number within the District.

SECTION 3. The City Council hereby approves the Engineer’s Report on a preliminary basis as submitted or amended by direction of this City Council, and orders said Report to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection, and by reference the Engineer’s Report is made part of this resolution.

SECTION 4. The City Council hereby declares its intention to form the assessment district to be known and designated as the Landscaping and Lighting Maintenance District No. 39 (Sevilla-Tract 38084) pursuant to Chapter 2 Article 1 of the Act, and to establish said District with benefit zones pursuant to Section 22574 of the Act; and to levy and collect annual assessments against parcels of land within the District commencing with fiscal year 2022/2023 in accordance with the Act and the provisions of the California Constitution Article XIIID.

The City Council further declares its intention to conduct a public hearing regarding this district formation and the proposed levy of new assessments pursuant to the provisions of the Act and the California Constitution Article XIIID and thereby calls for a property owner protest balloting proceeding related thereto. The City Council finds that the public’s best interest requires such action and levy of assessments.

SECTION 5. The City Council hereby finds that the territory within the proposed District as identified in the Engineer’s Report consists of and includes those lots, parcels and subdivisions of land that will receive special benefits from the improvements to be provided.

SECTION 6. The proposed improvements and services for the District as identified in the Engineer’s Report, include, but are not limited to, the maintenance, operation and servicing of various landscaping improvements established in connection with development of the properties within the District, and which shall be maintained for the special benefit of those properties. The maintenance and servicing of the improvements generally include, but are not limited to turf, ground cover, shrubs, and plants; vines, trees; irrigation and drainage systems; masonry walls, retaining walls, or other fencing; monuments; hardscapes; concrete, gravel, or decomposed granite trails, pathways and/or access roads; and other related appurtenant facilities within the District.

The proposed local street lighting improvements include operation of lights only, not maintenance.

The Engineer’s Report prepared and filed with the City Clerk provides a more detailed description of the improvements and services to be provided and for which properties shall be assessed.

SECTION 7. The City Council hereby determines that to provide the improvements described in section 6 of this resolution, it is necessary to levy and collect assessments against lots and parcels within the District commencing in fiscal year 2022/2023. The Engineer’s Report referred to in Section 2 of this resolution establishes the fiscal year 2022/2023 proposed maximum assessment for the District including the annual inflationary adjustment to the maximum assessment rates.

Item 15.

Resolution 2022-07

SECTION 8. Pursuant to California Constitution Article XIIID, an assessment ballot proceeding is hereby called on the matter of confirming the proposed new assessments for the District. The ballots and notices so authorized shall be distributed by first class mail to the property owners of record as of the last County equalized roll not less than 45 days prior to the public hearing, and each property owner may return the ballot by mail or in person to the City Clerk not later than the conclusion of the public hearing for this matter.

SECTION 9. The City Council hereby authorizes and directs the City Clerk or their designee to prepare and mail notice of the Public Hearing; and in the same or separate mailing, mail the property owner protest ballot(s) to the subject property owner regarding the proposed levy of assessments and the assessment range formula outlined in the Engineer’s Report, for return receipt prior to the date and time of the public hearing set forth in this resolution.

SECTION 10. The City Council hereby declares its intention to conduct a Public Hearing concerning the District, the improvements, and the levy of assessments and in accordance with Section 22624 (e) and 22625 of the Act, notice is hereby given that on Wednesday, March 23, 2022 at 6.00 P.M., the City Council will hold a Public Hearing for the District and the levy and collection of assessments related, or as soon thereafter as feasible. The Public Hearing will be held in the City Council Chambers, located at 1515 Sixth Street, Coachella, at the time so fixed. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard.

SECTION 11. The property owner protest ballot proceeding conducted for the District shall constitute the property owner’s approval or rejection of the annual levy of assessments and assessment range formula. The property owner may return the ballot by mail or in person to the City Clerk not later than the conclusion of the Public Hearing on Wednesday, March 23, 2022. After the close of the Public Hearing, pursuant to Section 4, Sub-Section 4 (e) of the California Constitution, the City shall tabulate the ballots returned to determine if majority protest exits. The ballots shall be weighted according to the proportional financial obligation of the affected property. Majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment.

Any interested person may file a written protest with the City Clerk prior to the conclusion of the hearing, or having previously filed a protest, may file a written withdrawal of that protest.

A written protest shall state all grounds of objection, and protest by a property owner shall contain a description sufficient to identify the property owned by such property owner. At the public hearing, all interested persons shall be afforded the opportunity to hear and be heard.

SECTION 12. The City Clerk or their designee is hereby authorized and directed to give notice of such Public Hearing as provided by law.

PASSED, APPROVED, and ADOPTED this 26
th day of January 2022.
___________________________________
Steven A. Hernandez, Mayor
ATTEST:
___________________________________
Angela M. Zepeda

Item 15.

Resolution 2022-07

City Clerk
APPROVED AS TO FORM:
___________________________________
Carlos Campos
City Attorney

Item 15.

Resolution 2022-07

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2021-07 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 26 th day of
January 2022, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Andrea J. Carranza, MMC
Deputy City Clerk

Item 15.

STAFF REPORT
1/26/2022
TO: Honorable Mayor and City Council Members
FROM: Celina Jimenez, Grants Manager
SUBJECT: Adopt Resolution No. 2022-08 Authorizing the City of Coachella to be a CoApplicant in the Grant Application Desert Recreation District will submit under the Regional Park Program to the California Department of Parks and Recreation Office of Grants and Local Services
STAFF RECOMMENDATION:

Staff recommends that the City Council consider adopting Resolution No. 2022-08 authorizing the City of Coachella to be a co-applicant in the grant application Desert Recreation District will submit under the Regional Park Program to the California Department of Parks and Recreation Office of Grants and Local Services to build an indoor soccer/sports facility at Rancho Las Flores Park for a not-to-exceed amount of $3,000,000 million dollars.

BACKGROUND:

Regional Park Program (RPP) competitive grants will create, expand, and improve regional parks.

RPP projects will create at least one new recreation feature that attracts visitors from at least a 20- mile radius or county-wide population to a regional park. The new recreation feature(s) will offer nature appreciation, or athletic activities, historical or cultural enrichment, or other recreational activities in an open space area.

DISCUSSION/ANALYSIS:

This funding opportunity is only available for Districts, Joint Powers Authorities, Counties and Nonprofits. The City will be a co-applicant with Desert Recreation District (DRD) for this park grant as DRD will submit the application through its nonprofit arm. City staff conducted extensive community engagement within a half-mile radius of Rancho Las Flores Park and the public expressed their desire for an indoor soccer/sports complex. The community voiced many different possibilities, but the number one request people advocated for was for additional ‘play space’ for soccer (or other field sports such as field hockey, lacrosse, rugby or tennis). Rancho Las Flores is a 30-acre park with approximately 15 acres left to build it out to its maximum capacity. Rancho Las Flores Park expands to 40 acres when the open space on Mitchell Drive is also used to accommodate parking.

Item 16.

ALTERNATIVES:

1. Adopt Resolution No. 2022-08 Authorizing the City of Coachella to be a Co-Applicant in the Grant Application Desert Recreation District will submit under the Regional Park Program to the California Department of Parks and Recreation Office of Grants and Local Services

2. Not Adopt Resolution No. 2022-08 Authorizing the City of Coachella to be a CoApplicant in the Grant Application Desert Recreation District will submit under the Regional Park Program to the California Department of Parks and Recreation Office of Grants and Local Services
FISCAL IMPACT:

There is no direct fiscal impact for adopting the authorizing resolution itself since there is no matching funds requirement. However, the City will be required to maintain any improvements made with grant monies for a period of 30 years. Associated cost increases are considered to be minimal.

ATTACHMENTS:

1. Resolution No. 2022-08

Item 16.

Resolution No. 2022-08

RESOLUTION NO. 2022-08

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COACHELLA

APPROVING THE APPLICATION FOR REGIONAL PARK PROGRAM

GRANT FUNDS
WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility by the Legislature of the State of California for the administration of the Regional Park Grant Program, setting up necessary procedures governing the application; and WHEREAS, said procedures established by the State Department of Parks and Recreation require the Applicant to certify by resolution the approval of the application before submission of said application to the State; and
WHEREAS, successful Applicants will enter into a contract with the State of California to complete the Grant Scope project;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Coachella hereby:

APPROVES THE FILING OF AN APPLICATION FOR THE COACHELLA INDOOR REGIONAL SOCCER-SPORTS COMPLEX; and

1. Certifies that said Applicant has or will have available, prior to commencement of any work on the project included in this application, the sufficient funds to complete the project; and

2. Certifies that if the project is awarded, the Applicant has or will have sufficient funds to operate and maintain the project, and

3. Certifies that the Applicant has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide; and

4. Delegates the authority to the City Manager to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Grant Scope; and

5. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines.

6. Will consider promoting inclusion per Public Resources Code §80001(b)(8 AG). [THIS SPACE LEFT INTENTIONALLY BLANK]

Item 16.

Resolution No. 2022-08

PASSED, APPROVED and ADOPTED this 26
th day of January 2021.
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
___________________________________
Carlos Campos
City Attorney

Item 16.

Resolution No. 2022-08

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2022-08 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 26 th day of
January 2021, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Andrea J. Carranza, MMC
Deputy City Clerk

Item 16.

STAFF REPORT
1/26/2022
TO: Honorable Mayor and City Council Members
FROM: Nathan Statham, Finance Director
SUBJECT: Conditional Loan Commitment for CFD 2005-1 Special Assessments for the Coachella Village Apartments Housing Development
STAFF RECOMMENDATION:

Staff recommends that City Council approve resolution 2022-2 authorizing the City to enter into a conditional loan approval along with a prepayment and loan agreement for the Coachella Village Apartments Housing Development “Development” allowing for the prepayment of special assessments for law enforcement, fire and paramedic service once the development is annexed into Community Facilities District 2005-1.

BACKGROUND:

Coachella Valley Development Partners, LLC (“Developer”) has obtained site control for a proposed housing development with the intention of constructing 84-units as part 1 of phase 1 of a 352-unit multifamily development with a 5,000 square foot daycare facility, outdoor play area, a 5,000 square foot Recreation Building, a pool and spa, and various other recreational amenities for residents throughout the site (the “Project”) with expected entitlement in the name of a new entity to be formed conducive to the type of project contemplated (“to be formed entity”). The project is located on the south side of Avenue 48 west of Van Buren Street.

The City Council of the City of Coachella, by Resolution No. 2005-93, authorized the creation of the City of Coachella Community Facilities District 2005-1 (the "CFD") and by Resolution No. 2005-94, authorized the levy of a special tax for properties within the CFD (the "Special Assessment"), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, to finance a portion of the cost of providing law enforcement, fire and paramedic services within the CFD. The Project will be annexed into the CFD as a condition of approval, requiring the Developer to pay an annual special assessment in the amount of $1,249.40 per certified dwelling unit per year increasing annually based on the annual adjustment of the Consumer Price Index.

The project will provide a substantial public welfare benefit to the City through the mitigation of housing shortages in the City and State. To make the project financially viable and allow the Developer to facilitate financing arrangements for the project, the developer needs to defer these annual special assessment payments. To defer these special assessments, the developer is asking the City to enter into a loan and prepayment agreement that will defer the special assessment

Item 17.
payments from the project for 15 years. The Full amount of the assessments will be payable at the end of 15 years or sooner if the project is sold or refinanced.

DISCUSSION/ANALYSIS:

The conditional loan approval is proposed under the following terms:

1. Loan Amount – not to exceed $2,400,000*.

2. Loan Term - 15 years (10 years deferred with no payment, 5 years interest only).

3. Interest - 3% compounded per annum**.

4. Repayment – in full at end of loan term, sale or refinance.

With final loan approval subject to the following conditions:

1. The Developer agrees to enter into a concurrent prepayment agreement in the same amount as the loan agreement. Monies received under the loan agreement will be directly paid to the City in prepayment of CFD taxes due.

2. The Developer agrees to annex the property into the CFD.

3. The Developer agrees to applicable modification of the CFD to permit a prepayment agreement.

4. The Developer secures all project financing.

5. The Developer obtains all necessary City and other regulatory approvals.

FISCAL IMPACT:

The City will not see a direct fiscal impact from these agreements. The City is not currently receiving special assessment revenue from this project and this agreement will defer special assessment payments to the City for a term of 15 years. The annual special assessment payments for all units, using current year rates, is $107,049. The City will be deferring these assessments for 15 years under the terms of the agreements receiving a payback of approximately $2,400,000 including interest at that time.

ATTACHMENTS:

1. Resolution 2022-12

2. Conditional Loan Commitment Letter

Item 17.

RESOLUTION NO. 2022-12

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COACHELLA, CALIFORNIA APPROVING A COMMITMENT TO

ENTER INTO A CONDITONAL LOAN AGREEMENT TO PREPAY LAW

ENFORCEMENT, FIRE AND PARAMEDIC SERVICES SPECIAL
ASSESSMENTS (CFD 2005-1) FOR THE COACHELLA VILLAGE
APARTMENT HOUSING PROJECT.

WHEREAS, Coachella Valley Development Partners, LLC has site control of certain real property located in the City of Coachella on the south side of Avenue 48 west of Van Buren Street and intends to purchase said property through a new entity to be formed for this specific purpose (the “Developer”) and plans to construct 84 units as part 1 of phase 1 of a 352-unit multifamily development; and
WHEREAS, the City Council of the City of Coachella, by Resolution No. 2005-93, authorized the creation of the City of Coachella Community Facilities District 2005-1 (the "CFD") and, by Resolution No. 2005-94, authorized the levy of a special tax for properties within the CFD (the "Special Assessment"), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended; and
WHEREAS, the property will be annexed into the CFD as a condition of approval and will be subject to the Special Assessment; and
WHEREAS, the Developer has requested that it be permitted to prepay fifteen (15) years of the Special Assessments for the Property; and
WHEREAS, the City has agreed to make a loan to the Developer in order to prepay the Special Assessments, and the City and the Developer wish to enter into a loan and prepayment agreement to provide for the terms and conditions upon which the Special Assessments will be prepaid; and
WHEREAS, the Developer needs the City Council to provide a conditional loan commitment (“Commitment”) to enter into these agreements to apply for project financing.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF COACHELLA HEREBY RESOLVES AS FOLLOWS:

SECTION 1 – Council authorizes the City Manager or Finance Director to enter into a conditional loan commitment with the developer consistent with Exhibit A (Conditional Loan Commitment Letter) with minor modifications as to exact wording and final loan amount (if less than the not to exceed amount) for needed updates and to conform and clarify the letter as needed to facilitate the proper wording of the letter subject to review by the City Attorney.

SECTION 2 - The City Manager or Finance Director are authorized to enter into a prepayment and loan agreement (including a note and deed of trust) consistent with the terms of

Item 17.

Resolution No. 2022-12

the conditional loan commitment provided the terms are met by the developer. Agreement wording will be prepared and approved by the City’s Finance Director and Attorney; however, agreement terms will be consistent in all respect with the terms outlined in the conditional loan commitment letter.

PASSED, APPROVED and ADOPTED, this 26th day of January, 2022. ___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
___________________________________
Carlos Campos
City Attorney

Item 17.

Resolution No. 2022-12

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF COACHELLA )
I HEREBY CERTIFY that the foregoing Resolution No. 2022-12 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on this 26th day of January 2022, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Andrea J. Carranza, MMC
Deputy City Clerk

Item 17.

January 26, 2022
Subject: CFD Loan Commitment
Coachella Village (Coachella Valley Development Partners, LLC) Coachella, CA 92236
To Whom It May Concern:

The City Council of the City of Coachella, by Resolution No. 2005-93, authorized the creation of the City of Coachella Community Facilities District 2005-1 (the "CFD") and, by Resolution No. 2005-94, authorized the levy of a special tax for properties within the CFD (the "Special Assessment"), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended.

Coachella Valley Development Partners, LLC (“Developer”) has obtained site control for a proposed housing project with the intention of constructing a multifamily apartment complex totaling 352-unit to be constructed in two phases. The project also includes amenities including a 5,000 square foot daycare facility, outdoor play area, a 5,000 square foot Recreation Building, a pool and spa, and various other recreational amenities for residents throughout the site and is known as the Coachella Village Apartments (the “Project”). The first phase of the project will be constructed in three parts. This commitment pertains to the first 84 units to be constructed within phase 1.

The project is located on the south side of Avenue 48 west of Van Buren Street.

The City agrees to enter into a conditional affordable housing loan commitment wherein the City agrees to loan the project owner funds for the prepayment of special assessments under the following terms:

1. Loan Amount – not to exceed $2,400,000*.

2. Loan Term - 15 years (10 years deferred with no payment, 5 years interest only).

3. Interest - 3% compounded per annum**.

4. Repayment – in full at end of loan term, sale or refinance. *Based on CFD amount for fiscal year 21/22 of $1,249.40 presuming 2% average annual CPI increases. Agreement amount to be updated to reflect current CFD rate at time of project completion. Special assessments exceeding the loan/prepayment amount within the loan term will be included in the applicable year levy. **Interest will be calculated on the accrued unpaid loan balance each year.

Conditions of Loan Approval:

1. The Developer agrees to enter into a concurrent prepayment agreement in the same amount as the loan agreement. Monies received under the loan agreement will be directly paid to the City in prepayment of CFD taxes due.

2. The Developer agrees to annex the property into the CFD.

3. The Developer agrees to applicable modification of the CFD to permit a prepayment agreement.

4. The Developer secures all project financing.

5. The Developer obtains all necessary City and other regulatory approvals.

Item 17.

6. The Developer agrees to complete all off-site improvements specified in funding and City agreements along with related supporting detail documents.

The City Council of the City of Coachella approved this conditional loan commitment for the above-referenced project at a regularly scheduled meeting on January 26, 2022. This letter shall serve as an enforceable funding commitment for the loan. The loan will be made as permanent funding for the project.

Should you have any questions, please do not hesitate to contact the City at 760-398-3502.

Sincerely,
________________________

Item 17.

STAFF REPORT
1/26/2022
TO: Honorable Mayor and City Council Members
FROM: Maritza Martinez, Public Works Director
SUBJECT: Adopt Resolution No. 2022-13 Authorizing the City Manager to Submit an Application to CalRecycle to Assist with the Implementation of Regulation Requirements Associated with SB 1383
STAFF RECOMMENDATION:

Staff recommends that the City Council consider adopting Resolution No. 2022-13, authorizing the City Manager to submit an application to CalRecycle to assist with the implementation of regulation requirements associated with SB 1383.

BACKGROUND:

In September 2016, Governor Edmund Brown Jr. set methane emissions reduction targets for California (SB 1383 Lara, Chapter 395, Statutes of 2016) in a statewide effort to reduce emissions of short-lived climate pollutants (SLCP). The targets must:
 Achieve a 50% reduction in the level of the statewide disposal of organic waste from the 2014 level by 2020 and 75% by 2025;
 Rescue for people to eat at least 20% of currently disposed surplus food by 2025.

Organics like food scraps, yard trimmings, paper, and cardboard make up half of what Californians dump in landfills. Reducing Short-Lived Climate Super Pollutants like organic waste will have the fastest impact on the climate crisis. Cities will be expected to educate all residents and businesses about collection requirements, including what materials to put in curbside bins. Education to residents and businesses may be provided electronically, through hard copy materials, or through direct outreach.

The Department of Resources Recycling and Recovery (CalRecycle) is offering the SB 1383 Local Assistance Grant Program pursuant to Chapter 395, Statutes of 2016. This noncompetitive grant program will provide one-time funding to local jurisdictions like the City of Coachella to assist with the implementation of regulation requirements associated with SB 1383.

The City’s estimated allocation is $63,747. The project timeline is:

Feb 1, 2022 Applications due in GMS
Mar 1, 2022 Secondary due date for First Round Funding (approved Resolution) Apr 1, 2022 Grants awarded for First Round Funding

Item 18.

Apr 2, 2024 Grant term end for First Round Funding
Eligible projects/products include: (the City will propose to use funds for collection and education/outreach)
 Capacity Planning
 Collection
 Edible Food Recovery
 Education and outreach (includes organic waste & edible food recovery)  Enforcement and Inspection
 Program Evaluation/Gap Analysis
 Procurement Requirements (using recycled organic products – compost, mulch, electricity, and/or renewable gas and recycled paper and paper products)  Record Keeping
DISCUSSION/ANALYSIS:

Since landfills are the third largest producer of methane, the State’s SLCP strategy includes managing organic waste. Food scraps, green waste, paper, and cardboard are organic materials that account for a significant portion of California's overall waste stream. Increasing food waste prevention, encouraging edible food rescue, and expanding the composting and in-vessel digestion of organic waste will reduce methane from landfill operations. In addition to setting specific emissions reduction goals, SB 1383 mandates cities and counties to:
 Provide organic waste collection services to all residents and businesses  Develop and adopt an enforcement mechanism or ordinance by April 1, 2022  Establish an edible food recovery program
 Update the City’s procurement policy to purchase recycled content paper and recycled organic waste products (e.g., compost, mulch, and renewable natural gas) at a volume of

0.08 tons/resident
 Provide outreach and education for generators, haulers, facilities, edible food recovery organizations, and municipal departments
 Plan and secure access for recycling and edible food recovery capacity  Monitor compliance and conduct enforcement
 Maintain accurate compliance records
To meet the SB 1383 regulations, jurisdictions throughout the State are required to adopt an ordinance or other similarly enforceable mechanism by April 1, 2022. The ordinance will mandate that organic waste generators, haulers, and other entities subject to the requirements of SB 1383 regulations and subject to the jurisdiction’s authority, comply with SB 1383 regulatory requirements. It will also help reduce food insecurity by requiring Commercial Edible Food Generators to arrange to have the maximum amount of their edible food, that would otherwise be disposed, be recovered for human consumption.

Item 18.

In addition to adopting an organic waste recycling and food recovery ordinance, SB 1383 requires that the City adopt an ordinance or other enforceable mechanism that requires compliance with Sections 492.6(a)(3)(B) (C), (D), and (G) of the Model Water Efficient Landscaping Ordinance (MWELO) as amended September 15, 2015 (MWELO SB 1383 Baseline Requirements. MWELO requires new construction and landscaping projects to meet water efficient landscape standards for compost and mulch application. Incorporating organic matter like compost and mulch in landscaping increases water retention and promotes productive plant growth. Compost and mulch also provide many direct and indirect benefits when utilized in landscaping and as a component of systems and treatments designed for carbon sequestration, erosion control, fire remediation, stormwater management, and other uses.

ALTERNATIVES:

No alternatives are recommended. Chapter 12 of Title 14, Division 7 of the California Code of Regulations (CCR) requires the City of Coachella to adopt this resolution or the City could face fines up to $10,000 per day for non-enforcement/non-cooperation with this State mandate.

FISCAL IMPACT:

There is no fiscal impact with the recommended action.

ATTACHMENTS:

Resolution No. 2022-13

Item 18.

Resolution No. 2022-13

Individual Applicant – Combined CalRecycle Grants and Payment Program Resolution RESOLUTION NO. 2022-13
Resolution of the City Council of the City of Coachella authorizing submittal of application(s) for all CalRecycle Grant and Payment Programs for which the City of Coachella is eligible
Whereas, Public Resources Code sections 48000 et seq., 14581, and 42023.1(g), authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant and payment programs in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and
Whereas, in furtherance of this authority, CalRecycle is required to establish procedures governing the administration of the payment programs; and administration of the application, awarding, and management of the grant programs; and
Whereas, CalRecycle’s procedures for administering payment and grant programs require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of the payment and grant program.

Now, therefore, be it resolved that the City of Coachella is authorized to submit an application to CalRecycle for any and all grant and payment programs offered; and Be it further resolved that the City Manager is hereby authorized and empowered to execute in the name of the City of Coachella all documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure funds and implement the approved grant or payment project; and
Be it further resolved that these authorizations are effective from the date of adoption through January 26, 2027.

PASSED, APPROVED and ADOPTED this 26
th day of January 2022.
________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk

Item 18.

Resolution No. 2022-13

APPROVED AS TO FORM:
___________________________________
Carlos Campos
City Attorney

Item 18.

Resolution No. 2022-13

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2022-13 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 26 th day of
January 2022, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Andrea J. Carranza, MMC
Deputy City Clerk

Item 18.

STAFF REPORT
1/26/2022
TO: Honorable Mayor and City Council Members
FROM: Cástulo R. Estrada, Utilities Manager
SUBJECT: Resolution No. WA-2022-02, a Resolution of the Board of Directors of the Coachella Water Authority Authorizing the Grant Application, Acceptance, and Execution for the Groundwater Well Project
STAFF RECOMMENDATION:

Adopt Resolution No. WA-2022-02, a Resolution of the Board of Directors of the Coachella Water Authority Authorizing the Grant Application, Acceptance, and Execution for the Groundwater Well Project
EXECUTIVE SUMMARY:

DWR is administering approximately $200 million in drought relief funding to support projects that provide interim and immediate drought relief to urban communities and for multibenefit projects. The grants are intended to provide water to communities that face the loss or contamination of water supplies, to address immediate impacts on human health and safety, and to protect fish and wildlife resources. The Final Proposal Solicitation Package (PSP) for the Urban and Multibenefit Drought Grants was released on October 28, 2021.

Coachella Water Authority (CWA) is a joint powers authority formed by the City of Coachella and Coachella Redevelopment Agency to provide potable water service to the City of Coachella and surrounding areas. CWA’s water supply consists solely of groundwater, which is pumped from six wells within the Indio Subbasin of the Coachella Valley Groundwater Basin. CWA recently partnered with the three other water purveyors in the Indio Subbasin to prepare the Indio Subbasin Water Management Plan Update (www.IndioSubbasinSGMA.org) that will guide sustainable basin management, including protection of groundwater quality and reliability.

To ensure safe, clean drinking water for residents within its service area, CWA is in the process of consolidating small water systems (SWSs) that rely on individual, private groundwater wells into its potable water system. These SWSs often have poor water quality, poor water supply reliability, lack redundancy, and are small, disadvantaged communities (DACs). In the next year, CWA is planning to consolidate Shady Lane Mobile Home Park (MHP), Mesquite Mutual Water Company (MMWC), and Castro’s Mobile Home Community. All three SWSs previously relied

Item 19.
on private, on-site wells to provide domestic water to a total of approximately 102 residential connections, as well as irrigation services. However, all three private wells exceeded the maximum contaminant level (MCL) for the hexavalent chromium drinking water standard and have failed in the past six years leaving the residents with no water supply. Temporary emergency water supplies have since been provided by CWA and adjacent parcels; for example, two of these SWS are currently being served by a high line from nearby CWA fire hydrants. As the lack of dedicated water supplies and lack of redundancy put the residents of each of the SWSs at risk, consolidation into CWA’s water system was found to be the most feasible and long-lasting alternative. The SWSs are at risk of experiencing more severe drought impacts since they already have limited and unreliable supplies and poor water quality – issues that can be further exacerbated during times of drought.

The CWA Groundwater Well Project (Project) consists of the construction of one new groundwater well, which will increase CWA’s overall capacity, improve operational flexibility by increasing the number of wells CWA has access to and can pump as needed to meet demands, and assist CWA in responding to drought impacts within its service area. The Project will ensure SWSs can be served with a high-quality, reliable water supply while alleviating the SWSs’ susceptibility to drought conditions, as many lack the ability to purchase alternative water supplies, drill deeper wells, or repair wells should issues arise. Furthermore, the improved water supply reliability resulting from the Project will benefit all customers served by CWA and ensure adequate supply for new, planned connections including those for low and very low income populations.

FISCAL IMPACT:

No fiscal impact at this time.

Item 19.

RESOLUTION NO. WA-2022-02
RESOLUTION NO. WA-2022-02, A RESOLUTION OF THE BOARD OF

DIRECTORS OF THE COACHELLA WATER AUTHORITY

AUTHORIZING THE GRANT APPLICATION, ACCEPTANCE, AND

EXECUTION FOR THE GROUNDWATER WELL PROJECT
WHEREAS; Coachella Water Authority (CWA) proposes to implement the Groundwater Well Project (“Project”); and
WHEREAS; CWA has the legal authority and is authorized to enter into a funding agreement with the State of California; and
WHEREAS; CWA intends to apply for grant funding from the California Department of Water Resources for the Project.

THEREFORE, BE IT RESOLVED by the Board of Directors of CWA as follows:

1. That pursuant and subject to all of the terms and provisions of Budget Act of 2021 (Stats. 2021, ch. 240, § 80), CWA's Executive Director, or designee is hereby authorized and directed to prepare and file an application for funding with the Department of Water Resources, and take such other actions necessary or appropriate to obtain grant funding.

2. CWA’s Executive Director, or designee is hereby authorized and directed to execute the funding agreement with the Department of Water Resources and any amendments thereto.

3. CWA’s Executive Director, or designee is hereby authorized and directed to submit any required documents, invoices, and reports required to obtain grant funding.

PASSED, APPROVED and ADOPTED this 26th day of January 2022.

___________________________________
Steven A Hernandez
President
ATTEST:
___________________________________
Angela M. Zepeda
Secretary

Item 19.

Resolution No. WA-2022-02

APPROVED AS TO FORM:
___________________________________
Carlos Campos
Authority Attorney

Item 19.

Resolution No. WA-2022-02

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF COACHELLA )
I HEREBY CEERTIFY that the foregoing Resolution No. WA-2022-02 was duly adopted by the Board of Directors of the Coachella Water Authority at a regular meeting thereof held on the 26th day of January 2022, by the following vote of the Board:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Andrea J. Carranza, MMC
Deputy City Clerk

Item 19.

Eligibility Criteria Self-Certification Form
P a g e 1
Eligibility Criteria Self-Certification Form
As an applicant with the Department of Water Resources’ (DWRs) Financial Assistance Branch, you must complete this self-certification form as a condition to enter into a Grant Agreement with DWR to receive grant funds. Failure to meet and continue to comply with these conditions and requirements may result in DWR revoking the grant award, withholding grant funding, stopping invoice payment, and/or terminating the Grant Agreement. An answer of “No” to certain questions below may make you ineligible to enter into an agreement with DWR. If any question is going to be answered as “No” please contact DWR at [email protected].

1. Applicant Eligibility
Applicant Name: Coachella Water Authority
Applicant Entity Type: Public Utility
If the Applicant or any Local Project Sponsor is a mutual water company or public utility, does their proposed project have a clear and definite public purpose that benefits the customers of the water system or other public utility and not the investors? Yes ☒ No ☐
If yes, please state the public purpose and explain how it benefits the customers:

The Groundwater Well Project will improve water supply reliability throughout Coachella Water Authority’s service area by drilling a new groundwater well, which will increase the system’s overall supply capacity available to all ratepayers and water customers in its service area.

2. Authorizing Resolution
A resolution adopted by the applicant’s governing body authorizing the application for a grant under this program that designates a representative to sign the application, and in the event of an award of grant funds, a representative to execute the funding agreement and all necessary documentation (e.g., invoices, progress reports, etc.) is required. A signed, certified resolution must be received prior to the execution of a grant agreement with the State.

Is the authorizing resolution complete and included with the application? If there is not a resolution included at time of application, please provide an estimate for when it will be complete.

The authorizing resolution is expected to be brought to the Board of Directors meeting on January 26, 2022 and should be signed and available by February 2, 2022.

3. Urban Water Management Compliance
List the urban water suppliers (UWS), as defined by Water Code section 10617, that will receive funding if the application is awarded funds. Does each UWS have a current Urban Applicant/Local Project Sponsor Name Applicant/Local Project Sponsor Entity Type
Coachella Water Authority Public Utility

Item 19.

Eligibility Criteria Self-Certification Form
P a g e 2
Water Management Plan (UWMP) verified by DWR that addresses the requirements of the California Water Code? Each UWS must also have a complete and validated water loss audit report verified by DWR in accordance with Senate Bill (SB) No. 555 (Stats. 2015, ch. 679). Additionally, each UWS proposing wastewater projects, water use efficiency projects, or drinking water projects must be compliant with the water metering requirements contained in Water Code section 525 et seq.

Urban Water Supplier Date UWMP verified by DWR
Coachella Water Authority 2015 UWMP verified by DWR on
03/02/2017
2017 Validated Water Loss Audit
Report verified by DWR on
09/21/2018
2020 UWMP submitted to DWR on
07/01/2021; not yet verified by
DWR
Are all Urban Water Suppliers compliant with all requirements for Urban Water Suppliers including but not limited to metering requirements (Water Code, § 525 et seq.), water loss audits, and monthly reporting to the State Water Resources Control Board (SWRCB)? Yes ☒ No ☐
If a supplier isn’t compliant with the requirements, please explain:

N/A

4. Water Shortage Contingency Plan (WSCP)
List the urban water suppliers that will receive funding if the application is awarded funds.

Does each UWS have an activated Water Shortage Contingency Plan to a stage appropriate for their water conditions? DWR will verify the status with the water board.

Urban Water Supplier Date WSCP was activated
Coachella Water Authority 2020 Water Shortage Contingency Plan Stage 1 activated in October
2021

Item 19.

Eligibility Criteria Self-Certification Form
P a g e 3

5. Agricultural Water Management and Measurement Compliance List the agricultural water suppliers, as defined by Water Code section 10608.12(a), that will receive funding if the application is awarded funds. If there are none, please indicate so. Each supplier must have a completed Agricultural Water Management Plan (AWMP) that has been verified by DWR. If the supplier provides less than 25,000 irrigated acres, they will be exempt from the AWMP requirement.

Agricultural Water Supplier Date AWMP verified by DWR, or exempt

N/A N/A
Are all Agricultural Water Suppliers compliant with all other requirements of an Agricultural Water Supplier including but not limited to farm gate delivery reports, Efficient Water Management Practices, Water Measurement regulations, etc.? Yes ☐ No ☐
If a supplier isn’t compliant with the requirements, please explain:

N/A

6. Surface Water Diverter Compliance
List the surface water diverters that will receive funding if the application is awarded funds. If there are none, please indicate so. For the listed surface water diverters, state whether each diverter has submitted their latest annual and monthly surface water diversion reports in compliance with requirements outlined in Water Code section 5100 et seq., and their Use Reports as set forth in the California Code of Regulations, title 23, section 907 et seq., to the SWRCB.

Surface Water Diverter Has Surface Water Diverter submitted all required reports to SWRCB to
remain up to date? (Yes/No)

N/A N/A

7. Groundwater Management Compliance
List any projects that directly affect groundwater levels or quality. You can find your groundwater basin and the priority by going to the following link:
https://sgma.water.ca.gov/webgis/?appid=SGMADataViewer#gwlevels%C2%A0 Project Name Grantee/Local Project
Sponsor
Groundwater Basin Priority of the basin

Item 19.

Eligibility Criteria Self-Certification Form
P a g e 4
Groundwater Well
Project
Coachella Water
Authority
Coachella Valley
Groundwater Basin
(DWR Basin No. 7-
21)
Medium Priority, not
critically overdrafted
(Indio Subbasin; DWR
Subbasin No. 7-
021.01)

8. Groundwater Management Compliance Self-Certification Groundwater Management Compliance: The Applicant and any Local Project Sponsors must maintain continuing eligibility with the current Sustainable Groundwater Management Act (SGMA, Water Code, § 10720 et seq.) requirements as they come into effect. ☒ Yes, the Applicant and Local Project Sponsors agree to maintain continuing eligibility with the most current SGMA requirements, as applicable.
☐ No, the Applicant and Local Project Sponsors do not agree to maintain continuing eligibility with the most current SGMA requirements, as applicable. DWR cannot enter into a Grant Agreement.

9. California Statewide Groundwater Elevation Monitoring (CASGEM) Compliance Please fill out the following table for any projects located in a high or medium priority groundwater basin as identified by the CASGEM program. Projects in high and medium priority groundwater basins that do not have a CASGEM monitoring entity will not be eligible for funding if the grant applicant and Local Project Sponsor are listed as potential monitoring entities in Water Code section 10927. The same applies to counties whose jurisdictions include unmonitored high and medium priority groundwater basins (Water Code, § 10933.7(a)).

Project Basin Monitoring Entity If there is no monitoring entity, is the Local Project Sponsor is an
eligible monitoring entity per Water
Code section 10928?
Groundwater Well
Project
Coachella Water Authority N/A

10. Stormwater Projects
If a project is a stormwater and/or dry weather runoff capture project, is it included in a Stormwater Resource Plan or functionally equivalent plan (FEP) if applicable? Projects that benefit a DAC with a population of 20,000 or less are exempt from this requirement. However, they must not be a co-permittee for a municipal separate Storm Sewer System (MS4) National

Item 19.

Eligibility Criteria Self-Certification Form
P a g e 5
Pollutant Discharge Elimination System (NPDES) permit issued to a municipality with a population greater than 20,000 (Water Code, § 10563(c)(2)(B)).

Project (only list stormwater and/or
dry weather runoff capture projects)
Project Included in a Stormwater
Resource Plan or FEP?

N/A N/A

Item 19.

Eligibility Criteria Self-Certification Form
P a g e 6

11. Agreement Template
Have you and your counsel reviewed the agreement template and all terms and conditions?
Yes ☒ No ☐
I understand that the Department of Water Resources will rely on this signed certification in order to approve funding and that false and/or inaccurate representations in this Self-Certification may result in revocation of the award of funds or loss of all funds awarded to the Grantee. and that reimbursement of any grant funds is reliant upon the Grantee and all local project sponsors to meet and maintain all eligibility requirements outlined within this Self-Certification form, the 2021 Urban and Multibenefit Drought Relief Program Guideline and Proposal Solicitation Package, and the Grant Agreement terms and conditions. Additionally, for the aforementioned reasons, the Department of Water Resources may withhold disbursement of grant funds and/or pursue any other applicable legal remedies.

Name of Authorized Representative Signature
Title Date
Dr. Gabriel D. Martin
City Manager 01/13/2022

Item 19.

PROJECT INFORMATION FORM
Please complete a unique Project Information Form for each project in the application.

There are no character limits on specific questions but the Project Information Form as a whole may not exceed 10 pages.

1. Project Name: Coachella Water Authority (CWA) Groundwater Well Project

2. Local Project Sponsor (if different than grantee): N/A

3. Please provide the latitude and longitude of the project site. For linear projects or those covering a large area, report the coordinates for a central point. If this information is confidential, it must be clearly labeled “confidential.” You can find the latitude and longitude easily using google maps. You can find instructions at the following link:
https://support.google.com/maps/answer/18539?hl=en&co=GENIE.Platform%3DDesktop.

Latitude: 33.6931 Longitude: -116.2077

4. Please briefly describe the proposed project.

Coachella Water Authority (CWA) is a joint powers authority formed by the City of Coachella and Coachella Redevelopment Agency to provide potable water service to the City of Coachella and surrounding areas. CWA’s water supply consists solely of groundwater, which is pumped from six wells within the Indio Subbasin of the Coachella Valley Groundwater Basin. CWA recently partnered with the three other water purveyors in the Indio Subbasin to prepare the Indio Subbasin Water Management Plan Update (www.IndioSubbasinSGMA.org) that will guide sustainable basin management, including protection of groundwater quality and reliability.

To ensure safe, clean drinking water for residents within its service area, CWA is in the process of consolidating small water systems (SWSs) that rely on individual, private groundwater wells into its potable water system. These SWSs often have poor water quality, poor water supply reliability, lack redundancy, and are small, disadvantaged communities (DACs). In the next year, CWA is planning to consolidate Shady Lane Mobile Home Park (MHP), Mesquite Mutual Water Company (MMWC), and Castro’s Mobile Home Community. All three SWSs previously relied on private, on-site wells to provide domestic water to a total of approximately 102 residential connections, as well as irrigation services. However, all three private wells exceeded the maximum contaminant level (MCL) for the hexavalent chromium drinking water standard and have failed in the past six years leaving the residents with no water supply. Temporary emergency water supplies have since been provided by CWA and adjacent parcels; for example, two of these SWS are currently being served by a high line from nearby CWA fire hydrants. As the lack of dedicated water supplies and lack of redundancy put the residents of each of the SWSs at risk, consolidation into CWA’s water system was found to be the most feasible and long-lasting alternative. The SWSs are at risk of experiencing more severe drought impacts since they already have limited and unreliable supplies and poor water quality – issues that can be further exacerbated during times of drought.

Item 19.

In the future, CWA will continue to consolidate SWSs to improve water supply reliability and water quality for these small DACs. Additionally, CWA will continue expanding its service to new customers within its service area consistent with its local planning documents. According to the City of Coachella 2021 Housing Element (https://www.coachellahousingelement.com/documents), it is estimated that the City will require over 7,500 new housing units to meet its projected need for the 2021 to 2029 planning period, with over 2,000 of the units set aside for very low or low income populations. This represents a potential increase of over 50% in total households in Coachella by 2030, which would significantly increase demands on the CWA water system.

As consolidations with small DACs and new customer connections continue, new water supplies will be needed to meet the increased demand on CWA’s system. The entirety CWA’s service area is designated as a severely disadvantaged community (SDAC), as shown in Attachment 1, consisting of predominantly Hispanic, Spanishspeaking communities with a median household income of $36,124 and a child poverty rate of 40 percent. Additionally, approximately 12.7% of Coachella residents are unemployed, which ranks as the highest unemployment rate in the County of Riverside.

The CWA Groundwater Well Project (Project) consists of the construction of one new groundwater well, which will increase CWA’s overall capacity, improve operational flexibility by increasing the number of wells CWA has access to and can pump as needed to meet demands, and assist CWA in responding to drought impacts within its service area. The Project will ensure SWSs can be served with a high-quality, reliable water supply while alleviating the SWSs’ susceptibility to drought conditions, as many lack the ability to purchase alternative water supplies, drill deeper wells, or repair wells should issues arise. Furthermore, the improved water supply reliability resulting from the Project will benefit all customers served by CWA and ensure adequate supply for new, planned connections including those for low and very low income populations.

5. Does this project respond to an existing emergency to humans and/or wildlife? If so, please describe the emergency and how this project is addressing it.

Yes, the Project responds to the existing drought emergency within the State of California, as well as an emergency to humans – specifically those living within the SWSs that are in the process of being consolidated into CWA’s potable water system.

In October 2021, CWA initiated Stage 1 of its Water Shortage Contingency Plan (WSCP), recognizing a shortage of up to 10 percent. The move to Stage 1 was prompted by the rapidly evolving drought conditions and the Proclamation of a State of Emergency by Governor Newsom on October 19, 2021, which calls on residents statewide to voluntarily reduce water use by 15 percent. According to the U.S.

Drought Monitor, CWA’s service area is experiencing moderate drought.

The Project benefits small DACs to address existing water supply challenges and builds local resilience should drought conditions continue by ensuring SWSs can access a high-quality, reliable water supply. The Project will alleviate the SWSs’ susceptibility to drought conditions by adding redundancy to their water supply systems, as many lack the ability to purchase alternative water supplies, drill deeper

Item 19.
wells, or repair wells should issues arise. Additionally, the improved water supply reliability that will result from the Project will benefit all customers served by CWA and furthers CWA’s continued investment to deliver value to all customers and communities served by providing safe, reliable, economical, and environmentally sustainable water services.

6. Each project must meet one of the following purposes as it relates to drought. Please select the appropriate purpose for your project.
a. Address immediate impacts on human health and safety, including providing or improving availability of food, water, or shelter.
b. Address immediate impacts on fish and wildlife resources. c. Provide water to persons or communities that lose or are threatened with the loss or contamination of water supplies.

7. Each project must enhance regional drought resilience and align with the goals and objectives of the relevant approved Integrated Regional Water Management Plan. You can find the relevant IRWM Region by using the map at the following link:
https://gis.water.ca.gov/app/dacs/
The IRWM Plans can be found at the following link: https://water.ca.gov/Work-WithUs/Grants-And-Loans/IRWM-Grant-Programs/Plan-Review-Process. If you have any questions about the IRWM region the contact list can be found at the following link:
https://water.ca.gov/Work-With-Us/Grants-And-Loans/IRWM-Grant-Programs. Applicants are encouraged to contact and coordinate with the applicable RWMG for the IRWM region in which the project is located
Please identify the IRWM objective your project addresses.

CWA is a planning partner of the Coachella Valley Regional Water Management Group. The 2018 Coachella Valley Integrated Regional Water Management and Stormwater Resource Plan (IRWM/SRP; www.cvrwmg.org/irwm/irwm-plan) includes five goals:

1. Optimize water supply reliability,

2. Protect or improve water quality,

3. Provide stewardship of water-related natural resources,

4. Coordinate and integrate water resource management, and

5. Ensure cultural, social, and economic sustainability of water in the Coachella Valley.

The Project contributes to goals 1 (Optimize water supply reliability) and 5 (Ensure cultural, social, and economic sustainability of water in the Coachella Valley) by addressing the following objectives of the IRWM/SRP:

A. Provide reliable water supply for residential and commercial, agricultural community and tourism needs. The Project directly supports the consolidation of several SWSs that have MCL violations within their drinking water wells into CWA’s potable water system, thereby providing a safe and reliable municipal water supply to DAC residents.

L. Address water and sanitation needs of DACs, including those in remote areas. The Project directly serves the water needs of DACs in the City of Coachella, the entirety of which is considered a SDAC.

M. Maintain affordability of water. Provision of a reliable local supply of groundwater for City of Coachella residents ensures that water rates will remain stable and affordable.

Item 19.

8. Describe the Primary Benefit of the project.

Quantified benefit: 2500
Units (Drop down):Acre feet per year If other please enter:

Benefit Type: Water Supply - Ground If other please enter:

9. Describe the Secondary Benefit of the project:

Quantified benefit: 45522
Units (Drop down):Other If other please enter:persons
Benefit Type: Water Supply Reliability If other please enter:

10. Please briefly describe how the project will achieve the claimed benefits.

The Project consists of the construction of a groundwater well to provide 2,500 acre-feet per year (AFY) of additional potable water supply to CWA’s system. This addition of groundwater production in the Low Zone pressure zone of the water system will directly support multiple SWS consolidations. The Project will provide high-quality, reliable water supply to the small DACs currently being served by privately owned SWSs that historically depended on private wells that produced unreliable and often unsafe water supply.

Additionally, the improved water supply reliability that will result from the Project will benefit all of the approximately 45,522 customers served by CWA.

11. Briefly describe how the community/area benefiting from this project is being impacted by the current drought.

In October 2021, CWA initiated Stage 1 of its WSCP, recognizing a shortage of up to 10 percent. The move to Stage 1 was prompted by the rapidly evolving drought conditions and the Proclamation of a State of Emergency by Governor Newsom on October 19, 2021, which calls on residents statewide to voluntarily reduce water use by 15 percent. Approximately 22% of Riverside County, where CWA is located, is experiencing severe drought, while 78% is in moderate drought. If drought conditions continue to increase in severity, additional restrictions may be implemented by the State of California and CWA may move to higher stages of the WSCP.

CWA is in the process of consolidating SWSs that rely on individual, private groundwater wells into its potable water system. In the next year, CWA will consolidate three SWSs that have experienced poor water quality, poor water supply reliability, and lack of redundancy:
• Shady Lane MHP is currently receiving temporary replacement bottled water after its on-site well failed in 2019 and its subsequent emergency water supplier, Amezcua Garcia Water, received a Citation and Compliance Order from the County of Riverside Department of Environmental Health (DEH) for hexavalent chromium concentrations exceeding the MCL.
• MMWC is currently receiving an emergency water supply from CWA via a fire hydrant and high-line fire hose after its on-site well failed in July 2015. Additionally, in August 2015, MMWC received a Citation and Compliance Order from the County of Riverside DEH for hexavalent chromium concentrations exceeding the MCL. • Castro’s Mobile Home Community is currently receiving an emergency water supply from CWA via a fire hydrant and high-line fire hose after its on-site well collapsed in 2017.

Additionally, Castro’s received a Citation and Compliance Order from the County of Riverside DEH.

Item 19.

The wells at each SWS were past their usable life and were not able to provide the needed water supply, water quality, or flow rate without substantial retrofits. Furthermore, while the lack of permanent, dedicated water supplies and lack of redundancy put the residents of each of the SWSs at risk, as SDACs, the residents of each SWS do not have the resources to pursue additional sources of supply independently. These communities are currently receiving emergency water supplies from CWA; but if they weren’t, the drought would impact them further by reducing groundwater storge and concentrating contaminants that are already in exceedance of MCLs. It is critical that CWA increase water supply capacity within its system so that it can continue to serve these small DACs and existing customers within its service area a reliable water supply even during times of drought.

12. How will this project alleviate the impacts described in your answer to Question 11? The Project consists of the construction of a new groundwater well to provide 2,500 AFY of additional potable water supply to CWA’s system. By drilling a new well to increase supply, CWA will be able to serve new SWS consolidations and provide a high quality, reliable water supply for the residents of these small SDACs. The conversion from community wells to CWA’s system will guarantee that residents receive potable water that is strictly regulated and meets drinking water standards. The Project will enable safe, reliable water distribution to meet the required fire flows plus the maximum day demand for existing dwelling units in the community.

The Project provides support to small, underrepresented communities to address existing water supply challenges. By ensuring SWSs can be served with a high-quality, reliable water supply upon consolidation with CWA, local resiliency during drought conditions is enhanced. The SWSs’ susceptibility to drought conditions will be alleviated by adding redundancy, as many SWSs lack the ability to purchase alternative water supplies, drill deeper wells, or repair existing private wells should wells go dry or other issues arise.

Additionally, the improved water supply reliability that will result from the Project will further CWA’s continued investment to deliver value to all customers and communities served by providing safe, reliable, economical, and environmentally sustainable water services.

13. Please complete the following budget table for the project. (Identify funding sources in Question 15)
BUDGET CATEGORY Grant Amount All Other Cost Total Cost
(a) Project Administration
40,000 0 40,000
(b) Land Purchase / Easement
0 0 0
(c) Planning / Design / Engineering
/ Environmental
Documentation
100,000 0 100,000
(d) Construction / Implementation
2,615,291 1,000,000 3,615,291
TOTAL COSTS 2,755,291 1,000,000 3,755,291

Item 19.

14. Please describe why state funding is needed for this project. If state funding is not secured, what will happen to the project?
The Project is ready to proceed pending funding. If state funding is secured through the Urban and Multibenefit Drought Grant Program, work on the Project can begin immediately.

If state funding is not secured, the project would not begin until subsequent grant funding is secured.

15. Will the applicant provide cost share (encouraged but not required) and/or will this project require any additional funding from sources other than this solicitation? If so, please describe the funding source and indicate if the funding has been secured. If the funding has not been secured, please describe the plan to secure the necessary funding.

A cost share of $1,000,000 is being provided by CWA local funds to contribute to construction and implementation costs. The cost share is sourced from CWA reserve funds and development impact fees and has been secured.

16. Is land acquisition or landowner permission required for this project? If so, please briefly describe the status of the acquisition or agreement with the landowner. If the acquisition is not complete or permission not secured at the time of application, please describe the plan to complete it.

No land acquisition or landowner permission is required for the Project; the Project will be implemented at one of two sites owned by CWA (see Attachment 1) and the location will be finalized during the preliminary design stage.

17. Has planning and design for this project been completed? If not, please describe the status of planning and design.

Planning and design for the Project began in January 2017 with the preparation of a Well Siting Evaluation (completed in May 2017). Design for the Project is expected to begin upon receipt of State grant funding in March 2022 and be complete by March 2023. CWA will hire a consultant to prepare 30%, 60%, 90% and Final plans and specifications for the project.

During the preliminary design phase, CWA and its consultant will select the site based on the Well Siting Evaluation previously completed.

18. Are the CEQA (and NEPA if applicable) and permitting processes for this project complete? If not, please briefly describe the permits and CEQA (or NEPA) documents to be completed and projected schedule for completion.

CEQA and the permitting processes for the Project are expected to be complete by March 2023. NEPA is not applicable.

The Project is anticipated to be exempt from environmental review under CEQA pursuant to Title 14 of the California Code of Regulations, State CEQA Guidelines § 15303 (Class 3: New Construction). This Class 3 exemption allows for the construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure; the Project consists of the construction of a well on a CWA-owned parcel.

Necessary permits may include:
• Permit to Construct, SCAQMD
• Fugitive Dust Control Plan, SCAQMD

Item 19.
• General Permit for Stormwater Discharge, SWRCB
• General Permit for Construction Discharges, RWQCB
The CEQA document and permits will be identified during the design process. CWA will acquire all necessary permits prior to the start of construction and operation. CWA will file the Notice of Exemption with the County of Riverside and State Clearinghouse prior to construction.

19. Please briefly describe the necessary construction/implementation for this project.

Following the completion of design, CEQA, and permit acquisition, CWA will conduct the bid process to retain a contractor to construct the new groundwater well at one of two sites, both of which are currently owned by CWA. The construction contracting process is expected to take approximately three months. Construction will consist of drilling, testing, casing, and developing an approximately 2,200-gallon per minute (gpm) groundwater well that will be approximately 1,300 feet deep with an approximately 18-inch diameter casing and screen. The exact depth and casing diamter will be determined during the design and implementation process. The Project will also construct the well manifold piping, pump house, electrical building, installation of the electrical motor control center, hydropneumatic tank, emergency backup generator, chlorination equipment, site grading, other related aboveground and underground appurtenances, and connection to CWA's existing domestic water distribution system. Based on local knowledge and experience drilling wells in the Coachella Valley, it is estimated the construction duration will be approximately 18 months.

20. Please complete the schedule below for the project. Projects must be complete by March 31, 2026, to allow time for final invoice processing and retention payment before the State funds expire on June 30, 2026. Project administration should end at least three months after construction.

Categories Start Date End Date
(a) Project Administration 3/1/2022 4/1/2025
(b) Land Purchase / Easement
(c) Planning/ Design / Engineering / Environmental Documentation 1/1/2017 3/31/2023 (d) Construction/ Implementation 4/1/2023 1/1/2025

Item 19.

December 27, 2021
To Whom It May Concern,
On behalf of Indio Subbasin Groundwater Sustainability Agencies (GSAs) – comprised of Coachella Valley Water District (CVWD), Desert Water Agency (DWA), Indio Water Authority (IWA), and Coachella Water Authority (CWA) – we are pleased to submit this letter of support for CWA’s Groundwater Well Project (Project). The improved water supply reliability that will result from the Project is vital to the communities within the basin – specifically to CWA’s service area and small disadvantaged communities that are being consolidated into CWA’s potable water system.

The Indio Subbasin plan area includes the entirety of the Indio Subbasin of the Coachella Valley Groundwater Basin. The Subbasin is unadjudicated and designated as a medium-priority subbasin by the California Department of Water Resources (DWR). In January 2017, CVWD, DWA, CWA, and IWA collaboratively submitted the 2010 CVWMP Update as an Alternative (Alternative Plan) to a Groundwater Sustainability Plan (GSP) for the Subbasin, which was subsequently approved by DWR on July 17, 2019. Since establishing as GSAs, CVWD, DWA, CWA, and IWA have worked together to implement Sustainable Groundwater Management Act (SGMA) requirements.

CWA is in the process of consolidating small water systems (SWSs) that rely on individual, private groundwater wells into its potable water system. These SWSs often have poor water quality with maximum contaminant level (MCL) exceedances for arsenic and fluoride, as well as poor water supply reliability. In the next year, CWA is consolidating Castro’s Mobile Home Community, the Mesquite Mutual Water Company and the Shady Lane Mobile Home Park. In the future, it will continue to consolidate SWSs to improve water supply reliability and water quality to these communities. In order to meet demands of the small DACs within the SWSs, CWA plans to implement the Groundwater Well Project which will increase the system’s overall capacity and ensure the SWSs can be served a high quality, reliable water supply, including during drought conditions. Furthermore, the project will remedy the SWSs’ susceptibility to drought conditions, as many lack the ability to purchase alternative water supplies, drill deeper wells, or repair wells should issues arise.

In conclusion, we support CWA’s 2021 Urban and Multibenefit Drought Relief Program Grant Application and encourage DWR to fully fund the grant request.

Sincerely,
Mark S. Krause
[email protected]
General Manager – Chief Engineer
Desert Water Agency
Jim Barrett
[email protected]
General Manager
Coachella Valley Water District

Item 19.

Dr. Gabriel Martin
[email protected]
Executive Director
Coachella Water Authority
Reymundo Trejo
[email protected]
General Manager
Indio Water Authority

Item 19.

UV10
UV10
UV10
UV111 UV10
UV111
UV86
UV86
UV111
UV10
Shady
Lane MHP
Mesquite Mutual
Water Company
Castro’s
Mobile Home
Community
Data Sources: US Census
Date Created: January 2022
0 0.4 0.8 1.6
Miles
Coachella Water
Authority Service Area
City of Coachella
Small Water System
Underrepresented
Communities
SDAC
DAC
Coachella Water Authority
Groundwater Well Project
DWR Urban & Multibenefit
Drought Relief Program
Figure Exported: 1/7/2022 By: nmeyer Using: \\woodardcurran.net\shared\Projects\0012161.00 CWA - DWR 2021 Drought Relief Grant App\Project Record\Contract Admin\G. GIS\CWA_DWRDroughtGrant2021.aprx

Item 19.

APPLICANT INFORMATION
Please complete the following summary form for the application. This form should be saved and submitted with the forms intact via email to [email protected]. Please do not print to pdf or scan this form. If the application contains more than five projects, please contact DWR for an expanded form. A Project Information Form should be complete for each project in addition to this summary form.

Applicant Name Coachella Water Authority
Primary Contact NameCastulo Estrada TitleUtilities Manager [email protected]
Address53462 Enterprise Way City Coachella
Zip Code92236 Telephone ( 760 ) 501-8113
Total State Funding Requested: $2,755,291
Does this application include project(s) benefitting underrepresented communities/Tribes? Pull down: Yes
Provide a summary of the budget for the application including other cost share (if applicable), for all projects included in the application. Please note that there is no required non-state cost share, but cost share is encouraged. Applicants are required to show other cost share to account for the full project budget. Funding source(s) for cost share must be described for each project in Question 15 on the Project Information Form.

APPLICATION BUDGET SUMMARY

PROJECTS
Grant
Amount Other
Cost
Share
Total
Cost
Grant Administration
40,000 0 40,000
1 Project Name: Coachella Water
Authority Groundwater Well
Project
2,715,291 1,000,000 3,715,291
2 Project Name:
3 Project Name:
4 Project Name:
5 Project Name:

Item 19.

GRAND TOTAL 2,755,291 1,000,000 3,755,291

Item 19.

STAFF REPORT
1/26/2022
TO: Honorable Mayor and City Council Members
FROM: Maritza Martinez, Public Works Director
SUBJECT: Approve professional services agreement between City of Coachella and the Greater Coachella Valley Chamber of Commerce for fiscal year 2021-2022.

STAFF RECOMMENDATION:

Approve professional services agreement between City of Coachella and the Greater Coachella Valley Chamber of Commerce for fiscal year 2021-2022.

EXECUTIVE SUMMARY:

The City of Coachella has partnered with the Greater Coachella Valley Chamber of Commerce (Chamber), as a private business support organization within the City to provide professional services. The City renews the service agreement annually with the Chamber, which commemorates the services the Chamber will provide to the City each fiscal year. These services include supporting the City’s economic development efforts by providing: business services, various community and city events, and further development of Coachella’s tourism market. The budget and the services identified in the attached professional services agreement total $60,700 which is more than the agreement for 2020/2021 as city events were canceled due to COVID-19 restrictions and the 2021/2022 agreement also reflects an increased cost in Chamber business costs.

The services described in the proposed 2021/2022 Agreement include the following services and final costs to the City after any available revenues are deducted per service/event:
 Visitor Center ($41,500)
o Staffed Mon-Thu, 8:30 - 4:30; Visitor Center is responsible for marketing the City of Coachella to guests and visitors at the center. Services include local directory, city and relocation information, and general business related guidance.  State of the City/Business Awards ($8,200)
o Chamber will organize and manage: Business Expo; ticket sales/sponsors, and business awards.
 General Promotion / Marketing ($2,000)
o Video Footage as needed.
 Holiday Parade ($2,500)
o Provide food vendors, judges and assist in soliciting convertible cars for dignitaries.  Coachella Tacos Tequila and Chavelas Festival ($6,500)

Item 20.
o Provide stipend and monetary prizes to participating businesses. Provide and staff ticketing for both presale and door entry tickets.

FISCAL IMPACT:

The recommended action will not have a fiscal impact as funding for the recommended action has been appropriated in the approved fiscal year 2021/2022 budget.

Attachment: 2021/2022 Professional Services Agreement

Item 20.

City of Coachella
Professional Services Agreement Fiscal Year 2021-22
With Greater Coachella Valley Chamber of Commerce
Section 1. Parties
This agreement is made and entered into when executed herein by and between the City of Coachella (“City”) and the Greater Coachella Valley Chamber of Commerce (“Chamber”). City and Chamber are sometimes individually referred to as “Party” and collectively as “Parties”.

Section 2. Purpose
a. The purpose of this agreement is to enter into a partnership between the City of Coachella and the Greater Coachella Valley Chamber of Commerce for the purpose of undertaking the planning and implementation of economic development, marketing and business development services and providing assistance to retain business and generally strengthen and expand the business climate and economic opportunities in the City of Coachella. b. The City will provide such assistance and guidance as may be required to support the objective set forth in this Agreement and will provide the funding and in-kind services for the services and activities set forth in this agreement.
c. The Chamber will provide professional and qualified staff and volunteers that will work to disseminate appropriate information to existing and prospective businesses and community members and operate within agreed upon hours.

Section 3. Scope of Work
The Chamber shall
a. Pro-actively represent the City of Coachella to potential business and industry which will add to the tax base of the City.
b. Encourage tourist interest in Coachella and promote tourism through the Visitor Center. The Chamber will provide visitor information services for the benefit of its residents as well as all business, retail, restaurant, hotel and other related establishments. c. Establish, coordinate and operate various “Business Services and Events, Tourism and Cultural Activities” including business development, Tourism Events, and Cultural Celebrations as described in Exhibit “A”, attached hereto and incorporated herein by this reference. d. Provide quarterly reports to the City Council on economic development and Chamber activities within the City. Specifically, these quarterly reports should be coordinated with the agreed consideration noted in Section 5, and submitted to the City Liaison by the end of September, December, March and June.

Item 20.

Section 4. Duration of Contract
The term of this agreement shall commence on July 1, 2021 and expire June 30, 2022.

Section 5. Consideration
As consideration for the services provided in Section 3, the City will compensate the Chamber the sum of $15,175 on a quarterly basis (disbursed in July, October, January, April), for a total amount of $60,700.

Section 6. Independent Contractor
The City and Chamber intend that an independent contractor relationship be created by this Agreement.

The Chamber and anyone affiliated with the Chamber for the purpose of this agreement is not considered an employee of the City for any purpose, and neither the Chamber nor any of its employees shall be entitled to any of the benefits of the City provides to employees, including health insurance, sick time, annual leave, or workers compensation. The Chamber specifically represents and stipulates that it is engaged in the business of providing the services set forth in this agreement, whether or not for profit, and that the Chamber is fully registered and legally authorized to conduct such business and pays all necessary taxes and assessments levied against such business.

Section 7. Suspension, Termination and Close Out
If the Chamber fails to comply with the terms and conditions of this agreement, the City may pursue such remedies as are legally available, including but not limited to, the suspension or termination of this agreement with a 60-day notice.

Section 8. Changes, Amendments, and Modifications
The City may, from time to time, request changes and modifications to Section 3, Scope of Work, referring to any additional events and services, to be performed hereunder.

Section 9. Assignability
The Chamber shall not assign any interest in this agreement, and shall not transfer any interests in the agreement without prior written consent of the City.

Section 10. Reports and Information
The Chamber shall at such time and in such form as the City may require, furnish the City periodic reports, including an accounting for the expenditures of the City funds, as it may request pertaining to the services rendered pursuant to this agreement, the costs and obligations incurred or to be incurred in connection therewith, or for any other matters covered by this agreement.

Item 20.

Section 11. Compliance and Local Laws
The Chamber shall comply with all applicable laws, ordinances, and codes of the state and local government and the Chamber shall hold and save the City harmless with respect to any damages arising from any tort done in performing and of the work embraced by this agreement.

Section 12. Liability and Indemnification
The Chamber agrees to hold the City harmless and shall indemnify and defend all claims. Demands, or suits of law or equity arising from negligent or intentional wrongful actions or omissions of the Chamber or the Chamber’s officials or agents in providing services under this agreement except to the extent arising in whole or in part from the actions of the City or City’s officials or agents.

This Agreement contains all terms and conditions agreed to by the City of Coachella and the Greater Coachella Valley Chamber of Commerce.

In Witness Whereof, the City of Coachella and the Greater Coachella Valley Chamber of Commerce have executed this Agreement as of the date and year last written below:

City of Coachella Greater Coachella Valley Chamber of Commerce _________________________ _________________________
Steven Hernandez Emily Falappino
Mayor President and CEO
_______________ _______________
Date Date
Attest: ___________________________ Date: ________
Andrea Carranza, Deputy City Clerk
Approved As To Form
__________________________
Carlos Campos, City Attorney

Item 20.

Exhibit “A”
Business Services and Events, Tourism and Cultural Services

1. Business Services
a. Business Advocate - Generally, promote the economic interests of the City through advocacy and business marketing.
b. Visitor Center - Direct, staff and run the City’s Visitor Center. Hours of operation are Monday through Thursday, 8:30 AM to 4:30 PM.
c. Directory of Business - Make available through digital and/or printed products, as well as direct customer support, a directory of businesses in Coachella. d. Information Regarding Economic Development - Supply and make on hand information from the City regarding local economic initiatives, programs and support. e. Housing Information - Supply and make on hand information from the City and local property management companies information regarding local housing. f. Business License Information - Supply and make on hand information from the City regarding acquiring business license.
g. Public Outreach – Supply and make on hand information from the City regarding General Plan, City Business Initiatives/Programs.
h. Digital Campaigns - Support Local Restaurant, Hospitality or Other Relevant Business, to include social media and other digital platforms.

2. Events
a. Coachella State of the City and Business Awards Gala – Plan, Market and Execute event on behalf of the City. City will offer input and guidance on event agenda, working in cooperation with the Mayor of Coachella. Chamber will retain operational control, including purchasing decisions, price points and revenues.
b. Support the City’s Holiday Christmas Parade – Secure donated vehicles for dignitaries, not to exceed twelve (12), including drivers for vehicles. Identify no more than five (5) food vendors to service event, including facilitating health permits. Secure three (3) judges for the holiday parade. Chamber retains all revenue from services rendered. c. Tacos and Tequila Festival – Plan, help market, and execute event, to include vendors, prize money, permits, insurance, ticketing, security, and facilitating county health permits.

Chamber retains all revenue from ticket and group (sponsorship) sales.

3. Cultural Activities
a. Promote the City’s Movies in the Park Program – Utilize marketing avenues to raise public awareness.
b. Promote the City’s Day of the Young Child Event – Utilize marketing avenues to raise public awareness.
c. Promote the Run with los Muertos Event – Utilize marketing avenues to raise public awareness.
d. Work with City to Develop and Propose New Events

4. Tourism
a. Support the City’s Tourism Outreach for Local Events and Businesses through Visitor Center and marketing outlets.
b. Support City’s Mexicali Sister Cities Agreement

Item 20.

* City shall provide financial support and/or in-kind services from entities such as Fire, Police, and Public Works, City Streets and Parks where applicable. **Due to the COVID-19 public health crisis, some services may be altered, delayed or not executed. Services not rendered may be supplemented with a new or different program or event as mutually agreed upon between both parties.

Item 20.

EXHIBIT “B”
Rates for Services

BUSINESS SERVICES / TOURISM / CULTURAL
Visitor Center | $41,500
GCVCC will staff the Coachella Resource & Visitor’s Center Monday – Thursday from 8:30am-4:30pm, weekly. Bilingual support will be made available to guide visitors with information and resources related to tourism, doing business in Coachella, living in Coachella, and downtown.

GCVCC rate increases account for increasing cost of labor, operational overhead, as well as intended upgrades to the resource center.

General Promotion / Marketing | $2,000
GCVCC will look for ways to enhance its marketing materials, circulation, and impressions made by marketing the City of Coachella. Despite increasing costs of labor and production resources, GCVCC does not propose an increase to this budget this year.

EVENTS
State of the City / Business Awards | $8,200
GCVCC will coordinate a unique outdoor State of the City Event. This will include the design, planning, and coordination of the event along with some degree of vendor management. GCVCC will work with City staff to plan and produce this event.

This event is quoted with an increase. The 2021 State of the City event will include significant changes that require more planning, additional resources, and added costs.

Additionally, pricing reflects consideration of the general increases associated with the cost of food, beverage, event rentals, and event resources through outside vendors. The Chamber will provide the City with two tables of seating. Additional tables to be billed as ordered by the City.

Holiday Christmas Parade | $2,500
GCVCC will contribute to the annual Holiday parade for residents of Coachella. Services will include the coordinating food vendors, securing judges, soliciting convertible or open aired vehicles involved with the event. GCVCC introduces a small stipend for this event to offset the cost of staff hours to produce and recruit businesses for this event. In the event that rental fees or additional costs are incurred for securing vehicles, such fees and costs will be in addition to the base stipend.

Tacos & Tequila | $6,500
GCVCC staff will work alongside City Staff to plan, coordinate, produce, and resource for the annual Tacos & Tequila event. Given COVID-19 restrictions, GCVCC will incur increased costs and limited revenue. Pricing reflects consideration of the general increases associated with the cost of staffing, outside vendors, and includes significant

Item 20.

increases to the stipends offered to participating businesses, as well as a general increase in monetary prizes.

GCVCC Annual Golf Tournament | $0
GCVCC will provide the City of Coachella with a foursome at its Annual Golf Tournament. The City of Coachella agrees to participate with at least four individuals.

Event registration may not be gifted to any party other than City staff or council. 2022 GCVCC Annual Awards & Installation Dinner | $0
GCVCC will provide the City of Coachella with seating for four at its Annual Awards and Installation Dinner. The City of Coachella agrees to participate with at least four individuals. Event registration may not be gifted to any party other than City staff or council.

Item 20.

EXHIBIT “C”
Optional Services
(Services below will be in addition to the contract as currently written on Page 2, Section 5)

ADDITIONAL SERVICE OPTIONS
ESL / Hispanic Business Support | $35,000
GCVCC will dedicate personnel resources to supporting the Hispanic business community through grassroots efforts, printed and posted business resources in Spanish, Spanish educational workshops, and general business support for the Hispanic business community. GCVCC will produce a one-of-a-kind, strategic effort that fosters an approachable business resource and network for Hispanic business owners. The Chamber will create metrics of measurement to adapt its programs and ensure successful outcomes.

Recurring Events, Programs, & Initiatives | $18,000
GCVCC will launch a new variety of recurring business events, programs, and initiatives through the calendar year at a higher frequency to serve the local business community and the City’s overall economic development interests. Recurring events will be designed and hosted in live, online, and hybrid formats. Additionally, events will be facilitated with an intentional effort to occasionally include and/or feature City Staff and Council with the business community. Examples of such events may include: specialty mixers, coffee with the city events, city walks (business visits), and business education events – all hosted specifically for the City of Coachella. The frequency of such events will be coordinated with City Staff.

Collateral Creation | $1,500
GCVCC will create and design Relocation Packets, Infographics and marketing pieces on “Doing Business in City of Coachella” and limited social media and digital marketing pieces to assist the City in its PR and marketing efforts. All collateral will be designed with City approval. Designs are intended to promote business and visitation throughout City of Coachella. Printing, production, and advertising costs are not included.

Site Visits & Business Visitation | $8,000
GCVCC will coordinate with the City Staff and/or Council to arrange site visits of large employers, new businesses, and/or industry innovators. Arrangements will account for a City Staff Member and/or City Council Member’s participation to view, tour, and get to know a local Coachella business. GCVCC will photo document each visit to market, promote, and share.

Item 20.

STAFF REPORT
1/26/2022
TO: Honorable Mayor and City Council Members
FROM: Nathan Statham, Finance Director
SUBJECT: Investment Report – October 2021
STAFF RECOMMENDATION:

Staff recommends that the City Council receive and file the investment report for October of 2021 EXECUTIVE SUMMARY:

On June 23, 2021, the City of Coachella along with its component units (Sanitary District, Educational & Governmental Access Cable Corporation, Fire Protection District and Water Authority) approved and adopted the current “Statement of Investment Policy”.

Pursuant to Section 16 of that policy, the City Treasurer shall provide to the City Council a monthly investment report which provides a clear picture of the status of the current investment portfolio.

This report shall include, at a minimum, the following information for each type of investment held in the City’s investment portfolio: the issuer; amount of investment; current market value; yield on investment; income generated from investments; dollar amount invested on all securities, investments and moneys held by the local agency; and shall additionally include a description of any of the local agency’s funds, investments, or programs; and a description of unusual investment activity or developments during the month for which the report is prepared. This information shall be provided for all City and component unit pooled investments, as well as for bond accounts, which are managed by outside Fiscal Agents.

The interest rates presented are the most current rates available as of the date of these reports. The market values presented for pooled City investments are based on closing prices for the related investments as of the date of these reports. This information was obtained from the Wall Street Journal or other reliable sources of market prices.

The Market values presented for investments managed by fiscal agents are based on amounts reported by the fiscal agent on their investment statements. The purchase date and type of investment are not included for funds held by fiscal agents.

Item 21.

Attached is the Treasurer’s Report of Investments which includes an overview on investments which provides information on investment activity, withdrawals and deposits, interest earned, payment of interest and payment of principal as of the months ended October 31, 2021. In addition, this report includes detailed information and current activity on individual investments.

All City investments are in compliance with the guidelines established for Authorized Investments as specified in the Investment Policy, Section 8.

There was no unusual investment activity to report.

The City and Districts have sufficient moneys to meet their expenditure requirements for the next six months.

FISCAL IMPACT:

None, this report is receive and file only.

Item 21.

CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 9/30/2021 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 10/31/2021

CASH ON HAND
Wells Fargo-General Checking N/A 10,528,265.44 1,762,589.55 - - - 12,290,854.99 Wells Fargo-Road Maintenance N/A 665,956.67 89,844.76 - - - 755,801.43 Wells Fargo-Gas Tax N/A 565,453.19 (356,400.00) - - - 209,053.19 Mechanics Bank - Payroll Acct N/A 111,793.66 90,789.01 - - - 202,582.67 Mechanics Bank-Gas Tax N/A 121,172.80 (16.59) - - - 121,156.21 Petty Cash N/A 3,500.00 - - - - 3,500.00
Total Cash on Hand 11,996,141.76 1,586,806.73 - - - 13,582,948.49

INVESTMENTS
State of California - LAIF 0.20% 8,794,952.89 (897,000.00) 4,673.97 - - 7,902,626.86 Investment Management Acct 1.34% 20,480,592.35 (110,246.87) - - 20,370,345.48 Total Investments 29,275,545.24 (1,007,246.87) 4,673.97 - - 28,272,972.34

CASH WITH FISCAL AGENT
Union Bank of California varies 5,291,302.82 (6.00) 0.17 (65,087.51) - 5,226,209.48 ① Wells Fargo Bank, N.A. 5.83% 3.84 - - - - 3.84 ②
Wilmington Trust, N. A. 0.03% - - - - - - ③
Total Cash with Fiscal Agent 5,291,306.66 (6.00) 0.17 (65,087.51) - 5,226,213.32 Grand Total 46,562,993.66 579,553.86 4,674.14 (65,087.51) - 47,082,134.15 Completed By:

Reviewed By: Nathan Statham-Finance Director

CITY OF COACHELLA

TREASURER'S REPORT - INVESTMENT REPORT
As of October 31, 2021
Fiscal Year 2021-2022

DESCRIPTION
Carmin Torres

Item 21.

CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 9/30/2021 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 10/31/2021

CITY OF COACHELLA

TREASURER'S REPORT - INVESTMENT REPORT
As of October 31, 2021
Fiscal Year 2021-2022

DESCRIPTION

CASH WITH FISCAL AGENT
US Bank

COACHELLA WATER AUTHORITY
CITY OF COACHELLA WATER: WATER REFUNDING BONDS 2012 SERIES A/C #: 6712016201 Bond Fund 0.00% 1.18 (1.00) - - - 0.18 A/C #: 6712016202 Interest Account 0.00% 0.06 - - - - 0.06 A/C #: 6712016203 Principal Account 0.00% 0.21 - - - - 0.21 A/C #: 6712016204 Reserve Fund 0.00% 777,000.00 - - - - 777,000.00

COACHELLA FINANCING AUTHORITY
Successor Agency to the Coachella Redevelopments Agency 2014 Series A/C #: 6712104701 Debt Service Fund 0.00% 1.47 (1.00) - - - 0.47 A/C #: 6712104702 Interest Account 0.00% - - - - - -
A/C #: 6712104703 Principal Account 0.00% - - - - - -
A/C #: 6712104704 Reserve Account 0.00% 827,612.50 - - - - 827,612.50

COACHELLA SANITARY DISTRICT
WASTEWATER SERIES 2015A
A/C #: 6712148601 Bond Fund 0.03% 1.00 (0.97) 0.03 - - 0.06 A/C #: 6712148602 Interest Account 0.03% 65,087.51 (0.03) 0.03 (65,087.51) - - A/C #: 6712148603 Principal Account 0.03% - - - - - -
A/C #: 6712148604 Reserve Account 0.03% 310,175.00 - - - - 310,175.00 A/C #: 6712148605 Redemption Fund 0.03% - - - - - -
COACHELLA SANITARY DISTRICT: PROJECT FUND 2011
A/C #: 6711963500 Project Fund 2011 0.0004% 25,269.75 - 0.11 - - 25,269.86

Item 21.

CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 9/30/2021 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 10/31/2021

CITY OF COACHELLA

TREASURER'S REPORT - INVESTMENT REPORT
As of October 31, 2021
Fiscal Year 2021-2022

DESCRIPTION

COACHELLA SUCCESSOR AGENCY
MERGED PROJECT AREAS BONDS 98 & 99: BONDS 2013
A/C #: 6712071401 Interest Account 0.00% 1.30 (1.00) - - 0.30 A/C #: 6712071402 Interest Account 0.00% - - - - - -
A/C #: 6712071403 Principal Account 0.00% - - - - - -
A/C #: 6712071404 Reserve Account 0.00% 525,984.89 - - - - 525,984.89 SA TO COACHELLA RDA REFUNDING BONDS SERIES 2016A & 2016B A/C #: 6712160601 Debt Service 0.00% 2.22 (1.00) - - - 1.22 A/C #: 6712160602 Interest Account 0.00% - - - - - -
A/C #: 6712160603 Principal Account 0.00% - - - - - -
A/C #: 6712160604 Reserve Account 0.00% 2,147,669.03 - - - - 2,147,669.03 COACHELLA LEASE BONDS 2016
A/C #: 6712179801 Payment Account 0.00% 5.03 (1.00) - - 4.03 A/C #: 6712179802 Interest Account 0.00% - - - - - -
A/C #: 6712179803 Principal Account 0.00% - - - - - -
A/C #: 6712179804 Reserve Account 0.00% 612,331.26 - - - - 612,331.26 A/C #: 6712179805 Project Fund 0.02% 160.41 - - - - 160.41 TOTAL US BANK 5,291,302.82 (6.00) 0.17 (65,087.51) - 5,226,209.48 ① WELLS FARGO BANK, N.A.

GAS TAX BONDS SERIES 2019
A/C #: 83925300 Debt Service Fund 0.00% 2.46 - - - 2.46 A/C #: 83925301 Interest Account 0.00% 0.47 - - - 0.47
A/C #: 83925302 Principal Account 0.00% 0.91 - - - 0.91 A/C #: 83925304 Reserve Fund 0.00% - - - - - -
TOTAL WELLS FARGO BANK, N.A. 3.84 - - - - 3.84 ②

Item 21.

CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 9/30/2021 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 10/31/2021

CITY OF COACHELLA

TREASURER'S REPORT - INVESTMENT REPORT
As of October 31, 2021
Fiscal Year 2021-2022

DESCRIPTION
WILMINGTON TRUST, N. A.

CITY OF COACHELLA TAXABLE PENSION OBLIGATION BONDS
A/C #: 144613-001 Interest Account 0.00% - - - - - -
A/C #: 144613-002 Principal Account 0.00% - - - - - -
A/C #: 144613-003 Cost of Issuance 0.00% - - - -
A/C #: 144613-004 Unfunded Liability 0.00% - - - - - -
TOTAL WILMINGTGON TRUST BANK, N.A. - - - - - - ③
TOTAL CASH WITH FISCAL AGENT 5,291,306.66 (6.00) 0.17 (65,087.51) - 5,226,213.32

Item 21.

Managed Account Detail of Securities Held For the Month Ending October 31, 2021 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note

US TREASURY NOTES
DTD 02/01/2016 1.750% 01/31/2023
912828P38 25,000.00 AA+ Aaa 10/02/18 10/04/18 23,806.64 2.93 110.56 24,655.59 25,464.85

US TREASURY NOTES
DTD 02/29/2016 1.500% 02/28/2023
912828P79 520,000.00 AA+ Aaa 07/02/18 07/05/18 491,968.75 2.74 1,335.91 512,014.64 528,287.50

US TREASURY NOTES
DTD 03/31/2016 1.500% 03/31/2023
912828Q29 185,000.00 AA+ Aaa 02/08/19 02/12/19 178,185.35 2.44 243.96 182,672.72 188,064.06

US TREASURY NOTES
DTD 08/01/2016 1.250% 07/31/2023
912828S92 140,000.00 AA+ Aaa 04/02/19 04/04/19 134,071.88 2.28 442.26 137,608.48 142,012.50

US TREASURY NOTES
DTD 11/15/2013 2.750% 11/15/2023
912828WE6 355,000.00 AA+ Aaa 03/06/19 03/08/19 358,591.60 2.52 4,509.85 356,559.92 371,085.94

US TREASURY NOTES
DTD 11/30/2016 2.125% 11/30/2023
912828U57 460,000.00 AA+ Aaa 01/07/19 01/09/19 451,770.31 2.52 4,112.98 456,502.61 475,165.65

US TREASURY NOTES
DTD 12/31/2018 2.625% 12/31/2023
9128285U0 70,000.00 AA+ Aaa 01/30/19 01/31/19 70,207.81 2.56 619.16 70,091.46 73,095.32

US TREASURY NOTES
DTD 05/01/2017 2.000% 04/30/2024
912828X70 655,000.00 AA+ Aaa 06/03/19 06/05/19 657,967.97 1.90 36.19 656,509.67 676,901.56

US TREASURY NOTES
DTD 07/31/2017 2.125% 07/31/2024
9128282N9 125,000.00 AA+ Aaa 08/01/19 08/05/19 126,933.59 1.80 671.28 126,064.43 129,843.75

US TREASURY NOTES
DTD 08/31/2017 1.875% 08/31/2024
9128282U3 165,000.00 AA+ Aaa 09/03/19 09/05/19 169,299.02 1.33 529.87 167,439.73 170,310.94

US TREASURY NOTES
DTD 10/02/2017 2.125% 09/30/2024
9128282Y5 295,000.00 AA+ Aaa 10/01/19 10/03/19 303,815.43 1.50 551.10 300,142.33 306,707.81

US TREASURY NOTES
DTD 10/31/2019 1.500% 10/31/2024
912828YM6 195,000.00 AA+ Aaa 01/11/21 01/12/21 203,630.27 0.33 8.08 201,808.46 199,265.63

US TREASURY NOTES
DTD 11/30/2017 2.125% 11/30/2024
9128283J7 425,000.00 AA+ Aaa 01/03/20 01/07/20 434,844.73 1.63 3,800.03 431,190.79 442,332.01

US TREASURY NOTES
DTD 11/30/2017 2.125% 11/30/2024
9128283J7 580,000.00 AA+ Aaa 12/02/19 12/04/19 591,917.19 1.69 5,185.93 587,354.27 603,653.10

Item 21.

Managed Account Detail of Securities Held For the Month Ending October 31, 2021 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note

US TREASURY NOTES
DTD 02/17/2015 2.000% 02/15/2025
912828J27 130,000.00 AA+ Aaa 03/02/20 03/04/20 137,205.86 0.85 551.09 134,787.97 134,875.00

US TREASURY NOTES
DTD 08/31/2020 0.250% 08/31/2025
91282CAJ0 555,000.00 AA+ Aaa 08/02/21 08/06/21 548,799.61 0.53 237.64 549,162.62 539,217.19

US TREASURY NOTES
DTD 09/30/2020 0.250% 09/30/2025
91282CAM3 460,000.00 AA+ Aaa 09/07/21 09/09/21 452,273.44 0.67 101.10 452,549.76 446,487.50

US TREASURY NOTES
DTD 10/31/2020 0.250% 10/31/2025
91282CAT8 410,000.00 AA+ Aaa 10/04/21 10/06/21 401,319.53 0.78 2.83 401,471.41 397,251.54

US TREASURY NOTES
DTD 12/31/2020 0.375% 12/31/2025
91282CBC4 190,000.00 AA+ Aaa 04/05/21 04/07/21 185,494.92 0.89 240.08 186,036.88 184,537.50

US TREASURY NOTES
DTD 12/31/2020 0.375% 12/31/2025
91282CBC4 350,000.00 AA+ Aaa 01/11/21 01/12/21 347,867.19 0.50 442.26 348,211.68 339,937.50

US TREASURY NOTES
DTD 01/31/2019 2.625% 01/31/2026
9128286A3 255,000.00 AA+ Aaa 02/04/21 02/08/21 282,063.87 0.47 1,691.63 278,104.03 271,335.94

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 270,000.00 AA+ Aaa 02/26/21 02/26/21 264,410.16 0.80 255.88 265,180.32 261,857.83

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 475,000.00 AA+ Aaa 07/02/21 07/07/21 465,871.09 0.80 450.15 466,511.04 460,675.80

US TREASURY NOTES
DTD 02/28/2021 0.500% 02/28/2026
91282CBQ3 310,000.00 AA+ Aaa 03/05/21 03/09/21 305,676.95 0.79 265.47 306,240.83 302,007.83

US TREASURY N/B NOTES
DTD 05/31/2021 0.750% 05/31/2026
91282CCF6 420,000.00 AA+ Aaa 06/02/21 06/04/21 419,081.25 0.79 1,325.41 419,156.89 412,518.75 Security Type Sub-Total 8,020,000.00 8,007,074.41 1.39 27,720.70 8,018,028.53 8,082,893.00 Supra-National Agency Bond / Note

INTL BK RECON & DEVELOP NOTES
DTD 11/24/2020 0.250% 11/24/2023
459058JM6 150,000.00 AAA Aaa 11/17/20 11/24/20 149,677.50 0.32 163.54 149,778.23 149,191.95

INTER-AMERICAN DEVEL BK NOTES
DTD 09/23/2021 0.500% 09/23/2024
4581X0DZ8 300,000.00 AAA Aaa 09/15/21 09/23/21 299,778.00 0.52 158.33 299,785.90 297,912.90

Item 21.

Managed Account Detail of Securities Held For the Month Ending October 31, 2021 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Supra-National Agency Bond / Note
Security Type Sub-Total 450,000.00 449,455.50 0.46 321.87 449,564.13 447,104.85 Municipal Bond / Note

CA ST TXBL GO BONDS
DTD 10/24/2019 2.400% 10/01/2023
13063DRJ9 190,000.00 AA- Aa2 10/16/19 10/24/19 193,801.90 1.87 380.00 191,848.07 197,193.40

MS ST TXBL GO BONDS
DTD 08/06/2020 0.565% 11/01/2024
605581MZ7 200,000.00 AA Aa2 07/24/20 08/06/20 200,000.00 0.57 565.00 200,000.00 197,672.00

OR ST DEPT TRANS TXBL REV BONDS
DTD 09/17/2020 0.566% 11/15/2024
68607DVA0 135,000.00 AAA Aa1 09/11/20 09/17/20 135,000.00 0.57 352.34 135,000.00 133,801.20

FL ST BOARD OF ADMIN TXBL REV BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 40,000.00 AA Aa3 09/03/20 09/16/20 40,282.80 1.11 167.73 40,216.34 40,031.20

FL ST BOARD OF ADMIN TXBL REV BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 110,000.00 AA Aa3 09/03/20 09/16/20 110,000.00 1.26 461.27 110,000.00 110,085.80

LOS ANGELES CCD, CA TXBL GO BONDS
DTD 11/10/2020 0.773% 08/01/2025
54438CYK2 80,000.00 AA+ Aaa 10/30/20 11/10/20 80,000.00 0.77 154.60 80,000.00 79,342.40

NJ TURNPIKE AUTHORITY TXBL REV BONDS
DTD 02/04/2021 1.047% 01/01/2026
646140DP5 40,000.00 A+ A2 01/22/21 02/04/21 40,000.00 1.05 139.60 40,000.00 39,379.60 Security Type Sub-Total 795,000.00 799,084.70 1.06 2,220.54 797,064.41 797,505.60 Federal Agency Commercial Mortgage-Backed Security

FHLMC MULTIFAMILY STRUCTURED P
DTD 05/01/2015 2.791% 01/01/2022
3137BHXY8 75,372.27 AA+ Aaa 05/16/19 05/21/19 75,843.35 2.54 175.30 75,402.33 75,543.00

FHLMC MULTIFAMILY STRUCTURED P
DTD 11/01/2015 2.716% 06/01/2022
3137BLUR7 95,730.10 AA+ Aaa 04/02/19 04/05/19 95,969.43 2.63 216.67 95,774.11 96,459.25 FHLMC SERIES K721 A2
DTD 12/01/2015 3.090% 08/01/2022
3137BM6P6 92,759.35 AA+ Aaa 04/04/18 04/09/18 93,549.25 2.88 238.86 92,896.27 93,900.55

FHLMC MULTIFAMILY STRUCTURED P
DTD 12/01/2012 2.307% 08/01/2022
3137AWQH1 100,000.00 AA+ Aaa 09/04/19 09/09/19 101,476.56 1.78 192.25 100,381.36 101,160.00

Item 21.

Managed Account Detail of Securities Held For the Month Ending October 31, 2021 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Federal Agency Commercial Mortgage-Backed Security

FANNIEMAE-ACES
DTD 04/01/2014 3.346% 03/01/2024
3136AJB54 93,329.05 AA+ Aaa 12/13/19 12/18/19 97,864.26 2.14 260.23 95,843.36 98,045.84 FHMS K043 A2
DTD 03/01/2015 3.062% 12/01/2024
3137BGK24 110,000.00 AA+ Aaa 03/19/20 03/25/20 115,448.44 1.95 280.68 113,583.49 116,412.53 Security Type Sub-Total 567,190.77 580,151.29 2.29 1,363.99 573,880.92 581,521.17 Federal Agency Bond / Note

FANNIE MAE NOTES
DTD 05/22/2020 0.250% 05/22/2023
3135G04Q3 255,000.00 AA+ Aaa 05/20/20 05/22/20 254,232.45 0.35 281.56 254,602.56 254,512.70

FREDDIE MAC NOTES
DTD 06/11/2018 2.750% 06/19/2023
3137EAEN5 500,000.00 AA+ Aaa 01/07/19 01/09/19 503,510.00 2.58 5,041.67 501,287.58 518,999.50

FREDDIE MAC NOTES
DTD 06/26/2020 0.250% 06/26/2023
3137EAES4 175,000.00 AA+ Aaa 06/24/20 06/26/20 174,489.00 0.35 151.91 174,719.07 174,530.30

FANNIE MAE NOTES
DTD 07/10/2020 0.250% 07/10/2023
3135G05G4 280,000.00 AA+ Aaa 07/08/20 07/10/20 279,398.00 0.32 215.83 279,661.34 279,136.76

FREDDIE MAC NOTES
DTD 08/21/2020 0.250% 08/24/2023
3137EAEV7 185,000.00 AA+ Aaa 08/19/20 08/21/20 184,811.30 0.28 86.08 184,886.40 184,288.68

FANNIE MAE NOTES
DTD 09/14/2018 2.875% 09/12/2023
3135G0U43 330,000.00 AA+ Aaa 12/03/18 12/06/18 329,333.40 2.92 1,291.35 329,739.64 344,627.58

FEDERAL FARM CREDIT BANK (CALLABLE)
DTD 09/21/2020 0.250% 09/21/2023
3133EMAM4 250,000.00 AA+ Aaa 10/07/20 10/09/20 249,575.00 0.31 69.44 249,728.11 248,786.00

FEDERAL HOME LOAN BANKS NOTES
DTD 12/09/2013 3.375% 12/08/2023
3130A0F70 190,000.00 AA+ Aaa 01/30/19 01/31/19 195,600.04 2.72 2,547.19 192,423.95 201,234.13

FEDERAL HOME LOAN BANK NOTES
DTD 04/16/2020 0.500% 04/14/2025
3130AJHU6 200,000.00 AA+ Aaa 04/15/20 04/16/20 199,008.00 0.60 47.22 199,314.74 197,396.40

FANNIE MAE NOTES
DTD 04/24/2020 0.625% 04/22/2025
3135G03U5 260,000.00 AA+ Aaa 04/22/20 04/24/20 259,464.40 0.67 40.63 259,627.66 257,703.94

FANNIE MAE NOTES
DTD 04/24/2020 0.625% 04/22/2025
3135G03U5 360,000.00 AA+ Aaa 06/03/20 06/05/20 361,843.20 0.52 56.25 361,311.55 356,820.84

Item 21.

Managed Account Detail of Securities Held For the Month Ending October 31, 2021 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Federal Agency Bond / Note

FREDDIE MAC NOTES (CALLABLE)
DTD 05/29/2020 0.750% 05/28/2025
3134GVB31 200,000.00 AA+ Aaa 06/05/20 06/09/20 199,400.00 0.81 637.50 199,568.69 198,380.20

FANNIE MAE NOTES
DTD 06/19/2020 0.500% 06/17/2025
3135G04Z3 175,000.00 AA+ Aaa 07/02/20 07/07/20 175,201.25 0.48 325.69 175,147.54 172,361.00

FANNIE MAE NOTES
DTD 06/19/2020 0.500% 06/17/2025
3135G04Z3 225,000.00 AA+ Aaa 10/01/20 10/05/20 226,055.25 0.40 418.75 225,814.19 221,607.00

FANNIE MAE NOTES
DTD 06/19/2020 0.500% 06/17/2025
3135G04Z3 305,000.00 AA+ Aaa 06/17/20 06/19/20 304,368.65 0.54 567.64 304,541.72 300,400.60

FREDDIE MAC NOTES
DTD 07/23/2020 0.375% 07/21/2025
3137EAEU9 185,000.00 AA+ Aaa 07/21/20 07/23/20 184,078.70 0.48 192.71 184,314.08 180,944.80

FANNIE MAE NOTES
DTD 08/27/2020 0.375% 08/25/2025
3135G05X7 195,000.00 AA+ Aaa 08/25/20 08/27/20 194,087.40 0.47 134.06 194,303.04 190,475.22

FANNIE MAE NOTES
DTD 08/27/2020 0.375% 08/25/2025
3135G05X7 420,000.00 AA+ Aaa 10/21/20 10/22/20 417,727.80 0.49 288.75 418,209.74 410,254.32

FREDDIE MAC NOTES
DTD 09/25/2020 0.375% 09/23/2025
3137EAEX3 285,000.00 AA+ Aaa 09/23/20 09/25/20 284,142.15 0.44 112.81 284,331.22 278,469.23

FANNIE MAE NOTES
DTD 11/12/2020 0.500% 11/07/2025
3135G06G3 185,000.00 AA+ Aaa 11/09/20 11/12/20 184,337.70 0.57 447.08 184,466.45 181,108.16 Security Type Sub-Total 5,160,000.00 5,160,663.69 0.94 12,954.12 5,157,999.27 5,152,037.36 Corporate Note

APPLE INC CORP NOTES
DTD 02/09/2017 2.500% 02/09/2022
037833CM0 240,000.00 AA+ Aa1 01/07/19 01/09/19 236,438.40 3.01 1,366.67 239,683.98 241,056.00

BB&T CORP (CALLABLE) NOTES
DTD 03/21/2017 2.750% 04/01/2022
05531FAX1 185,000.00 A- A3 04/03/18 04/05/18 181,564.55 3.25 423.96 184,643.96 186,387.32

UNITED PARCEL SERVICE CORP NOTES
DTD 09/27/2012 2.450% 10/01/2022
911312AQ9 275,000.00 A- A2 03/01/18 03/05/18 268,545.75 3.00 561.46 273,709.92 280,342.15

Item 21.

Managed Account Detail of Securities Held For the Month Ending October 31, 2021 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Corporate Note

ADOBE INC CORP NOTE
DTD 02/03/2020 1.700% 02/01/2023
00724PAA7 100,000.00 A+ A2 01/22/20 02/03/20 99,863.00 1.75 425.00 99,942.77 101,508.70

PFIZER INC CORP NOTES
DTD 03/11/2019 2.950% 03/15/2024
717081ES8 260,000.00 A+ A2 04/02/19 04/04/19 263,146.00 2.69 980.06 261,479.22 272,725.96

MORGAN STANLEY CORP NOTES
(CALLABLE)
DTD 04/22/2021 0.731% 04/05/2024
61772BAA1 25,000.00 BBB+ A1 04/19/21 04/22/21 25,000.00 0.73 13.20 25,000.00 24,979.10

MORGAN STANLEY CORP NOTES
(CALLABLE)
DTD 04/22/2021 0.731% 04/05/2024
61772BAA1 75,000.00 BBB+ A1 04/20/21 04/22/21 75,094.50 0.69 39.59 75,068.92 74,937.30 AMAZON.COM INC CORPORATE NOTES
DTD 05/12/2021 0.450% 05/12/2024
023135BW5 115,000.00 AA A1 05/10/21 05/12/21 114,832.10 0.50 242.94 114,858.60 114,022.16

WALMART INC CORPORATE NOTES
DTD 04/23/2019 2.850% 07/08/2024
931142EL3 360,000.00 AA Aa2 07/10/19 07/12/19 371,235.60 2.19 3,220.50 364,337.12 378,881.28

JPMORGAN CHASE & CO CORPORATE

NOTES (CAL
DTD 09/16/2020 0.653% 09/16/2024
46647PBS4 115,000.00 A- A2 09/09/20 09/16/20 115,000.00 0.65 93.87 115,000.00 114,823.13

BANK OF AMERICA CORP (CALLABLE)

CORPORAT
DTD 10/21/2020 0.810% 10/24/2024
06051GJH3 150,000.00 A- A2 10/16/20 10/21/20 150,000.00 0.81 23.63 150,000.00 149,801.25

MICROSOFT CORP (CALLABLE) NOTES
DTD 02/12/2015 2.700% 02/12/2025
594918BB9 190,000.00 AAA Aaa 03/15/21 03/17/21 202,921.90 0.92 1,125.75 200,706.99 199,597.66

TOYOTA MOTOR CREDIT CORP CORP
NOTES
DTD 02/13/2020 1.800% 02/13/2025
89236TGT6 60,000.00 A+ A1 05/20/20 05/26/20 60,586.20 1.58 234.00 60,408.03 61,219.98

TOYOTA MOTOR CREDIT CORP CORP
NOTES
DTD 02/13/2020 1.800% 02/13/2025
89236TGT6 90,000.00 A+ A1 05/20/20 05/26/20 90,879.30 1.58 351.00 90,612.04 91,829.97

NOVARTIS CAPITAL CORP
DTD 02/14/2020 1.750% 02/14/2025
66989HAP3 295,000.00 AA- A1 05/06/20 05/08/20 305,504.95 0.98 1,104.20 302,179.20 300,724.77