Coachella City Council
July 23, 2025

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populations. High temperatures can also increase the demand for electricity for cooling, which can stress the power grid and lead to outages.

Factors such as high temperatures, low humidity, and limited nighttime cooling contribute to elevated heat indices. Heat indices can significantly exceed the actual air temperature, intensifying the heat stress experienced by residents. Below is a chart depicting possible heat disorders in high-risk groups in relation to temperature and relative humidity.

Figure 4-4: Heat Index Chart

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Source: National Weather Service
Previous occurrences: There have been no state or federal declarations for extreme heat.

The National Risk Index lists 142 heat wave events for the planning area and the planning committee has historical knowledge of multiple days of extreme heat over 100 degrees Fahrenheit.

Probability of future events: 4 — Highly likely — Temperature extremes are likely to continue to occur annually in the planning area. Temperatures at or above 100 degrees typically occur during the summer months in the city.

4.4.3 Flooding - Severity - 1, Probability - 4, Ranking – 3 Hazard description: Flooding is natural hazard characterized by the overflow of water onto normally dry land, resulting in inundation. Flooding in the City of Coachella can occur due to various factors, including heavy rainfall, flash foods, storm surges, and the overflow of rivers and canals. Flooding can have several adverse impacts, including:
• Property damage: can cause structural damage to buildings, homes, and other infrastructure.
• Disruption of utilities: can damage electrical, water, and sewage systems leading to service interruptions.
• Environmental impacts: can result in soil erosion, water contamination, and damage to ecosystems.

Location: The city is in proximity to several bodies of water, including the Coachella Valley Stormwater Channel and Whitewater River, making it susceptible to various types of flooding events.

Extent: Flooding events in Coachella can vary in extent and severity. Depending on the cause, flooding can impact localized areas, such as streets and low-lying neighborhoods, or more extensive regions of the city and surrounding areas within Riverside County. Flash floods in particular can develop rapidly and affect specific locations without much warning.

As a result of high flood events from 2014 – 2022 the below map is a reflection of high flood prone areas within the city limits. The below map identifies where higher risk damages are for city facilities and is supported by modeling completed in the City’s Stormdrain Master Plan.

Figure 4-5: City of Coachella Flood Prone Areas

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Previous occurrences: There have been two state declarations for flooding/severe storms in Riverside County since the last LHMP update in 2018 and a total of 10 federal declarations for Riverside County for flooding/severe storms since 1990.

In February 2014, the Coachella Valley experienced severe flash floods following a heavy rainstorm, resulting in property damage and road closures.

Table 4-12: Riverside County Disaster Declarations from Flood and Severe Storms Disaster Type State Declaration Federal Declaration
Count Years Count Years
Flood - - 3 1993, 2011,
2017
Severe Storm 2 2019, 2022 7 1995, 1998,
2005, 2010,
2019
Source: FEMA, California Tax Franchise Board

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Probability of future events: 4 — Highly Likely — Near 100 percent chance of occurrence in the next year. With the increase in atmospheric rivers and change in weather patterns heavy rain falls over a short period of time are becoming a multi-year event.

4.5 Vulnerability Assessment
An estimate of the vulnerability of the city to each identified hazard, in addition to the estimate of likelihood of future occurrence, is provided in each of the hazard specific sections that follow.

Vulnerability is measures in general, qualitative terms and is a summary of the potential impact based on past occurrences, spatial context, damage and casualty potential. It is categorized into the following classifications.
• Low – minimal impact. The occurrence and potential cost of damage to life and property is minimal.
• Medium – moderate potential impact. This ranking carries a moderate threat level to the general population and/or build environment. Here the potential damage is more isolated and less costly than a more widespread disaster. • High – widespread potential impact. This ranking carries a high threat to the general population and/or build environment. The potential for damage is widespread. Hazards in this category may have occurred in the past.

4.5.1 Earthquake Vulnerability Assessment
Likelihood of Future Occurrence (major earthquake): 1 — Unlikely — Less than 1 percent chance of occurrence in the next 100 years
Vulnerability – High
The city has a mix of building structures, including older constructions and newer developments. Older buildings, especially those build before modern seismic codes were established, may be more vulnerable to earthquake damage. Retrofitting and strengthening of older structures are essential to reduce the risk of structural failures and protect occupants.

The planning committee has identified approximately 36 unreinforced masonry buildings in the City. The majority of the unreinforced masonry buildings are downtown, which is very much a community asset. The downtown area is the community’s major attraction. City Hall is the only critical facility that is an unreinforced masonry building. Critical infrastructure, including roads, bridges, utilities, and lifeline systems (water, power, gas), may be significantly impacted by a major earthquake. Damage to the infrastructure can lead to disruptions in transportation, communication, and emergency response efforts. The city’s vulnerability is further compounded by its location near the San Andreas Fault, increasing the potential for ground shaking and infrastructure damage.

The San Andreas Fault was focused on for the assessment. USGS earthquake shake map for a 7.5 magnitude earthquake on the San Andreas Fault, Figure 4-6, was used to establish potential damage estimates. This map classified shaking as “Violent”, this was then assigned

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a value of .10 and multiplied by the total “Exposure-Building Value” from the NRI data for Planning Area.

Figure 4-6: USGS Shake Map San Andreas
Table 4-13: Earthquake Total Value Loss for Structures in the City of Coachella Census Tract Earthquake - Exposure - Building Value Value Loss 045703 $ 371,507,000 $ 37,150,700
045704 $ 231,242,000 $ 23,124,200

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045706 $ 313,621,000 $ 31,362,100
045707 $ 556,679,000 $ 55,667,900
045708 $ 349,521,000 $ 34,952,100
045709 $ 268,519,000 $ 26,851,900
Total Value Loss = $ 209,108,900
A magnitude of 7.0 or higher earthquake would impact the entire planning area including all of the critical facilities within the planning area. It would be catastrophic to the entire community. The shaking can result in various impacts, including:
• Building and infrastructure damage: may cause structural damage to buildings, freeways, roads, bridges, and other critical infrastructure, jeopardizing public safety.
• Disruption of essential services: may interrupt the supply of electricity, water, gas, and communication networks, impacting emergency response and recovery efforts.
• Ground failure: can trigger landslides, liquefaction, and other ground failures, further damaging infrastructure and posing risks to residents. • Secondary hazards: can trigger secondary hazards such as fires, gas leaks, train derailments, and hazardous materials incidents.

4.5.2 Heat Wave Vulnerability Assessment
Likelihood of future occurrence: 4 — Highly Likely — Near 100 percent chance of occurrence in the next year
Vulnerability – Medium
Heat is a significant hazard faced by the City of Coachella. Heatwaves are common during the summer months, with temperatures often exceeding 100 degrees Fahrenheit. Prolonged exposure to high temperatures poses a risk to the health and well-being of the population, particularly vulnerable groups such as the elderly, young children, outdoor workers, and individuals with pre-existing health conditions.

Heat waves will have limited impact on damage to physical structures and limited loss risk associated with them. The greatest risk is to the vulnerable populations throughout the planning area. The Public Health Alliance of Southern California created an index to identify health disadvantage areas within the state. Areas that have a low Healthy lace Index (HPI) would be at greater risk during heat waves. Figure X is a map of the HPI for the Planning Area.

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Figure 4-7: Healthy Places Index Map for Coachella
Source: Public Health Alliance of Southern California
Due to the low HPI all of the residents within the planning area would be susceptible to heat waves.

The City of Coachella has developed a strategic plan for the activation of Cooling and Warming Centers. In circumstances of extreme heat, the City has a cooling station plan and identifies city facilities as cooling stations open to the public. The Centers will be activated based on the following conditions:
• The forecast anticipated temperatures of 100+ degrees for three consecutive days or extreme cold.
• The Riverside County Department of Public Health, after contact with the National Weather Service, issues a “Heat Warning” for affected areas.
• Heat Warning announcements posted on media outlets; television, radio, local newspaper and posting on the Summer Crisis Hotline.
• Activation of Cooling or Warming Centers by the Community Action Partnership of Riverside County.

4.5.3 Flooding Vulnerability Assessment
The vulnerability assessment for flooding in the City of Coachella highlights structures, systems, populations, and community assets susceptible to damage and loss from flood-related hazards.

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Structures:

1. Residential Buildings: Many residential structures in Coachella are susceptible to flood damage due to their proximity to water bodies and varying levels of flood-resistant construction.

2. Commercial and Industrial Buildings: Businesses and industries located in flood-prone areas may experience damage to their facilities, inventory, and equipment.

3. Critical infrastructure: Key infrastructure, including bridges, roads, electrical substations, and wastewater treatment plants, is vulnerable to flooding, potentially leading to service interruptions and costly repairs.

Systems:

1. Stormwater Management: Outdates or inadequate stormwater drainage systems can contribute to localized flooding, exacerbating flood risks.

2. Utilities: Water supply, power, gas, and telecommunications systems may be disrupted during flooding events, affecting essential services and communication.

Populations:

1. Vulnerable Populations: Low income communities, the elderly, young children, and individuals with disabilities may face increased risks due to limited resources, mobility challenges, and difficulties accessing emergency services.

2. Tourists and Seasonal Residents: Coachella attracts tourists and seasonal residents. Lack of familiarity with local flood risks and evacuation routes can put the populations at higher risk vulnerability.

Community Assets:

1. Agricultural Lands: Coachella’s economy relies on agriculture. Flooding can damage crops, impacting the livelihoods of farmers and the local economy.

2. Cultural and Historic Sites: Flooding poses a risk to Coachella’s cultural heritage, including historic structures, aritfacts, and cultural landmarks.

3. Emergency Services: Floods can overwhelm emergency services, hindering response efforts and potentially putting first responders at risk.

4. Educational Institutions: Schools and educational facilities are essential assets. Flooding can disrupt education, impacting student’s academic progress and the community’s wellbeing.

The City of Coachella is vulnerable to flooding due to its geographic location, proximity to water bodies, population density, and historical flood events. Vulnerable structures, systems, populations, and community assets are at risk of damage and loss in the event of flooding.

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Below is a map of the critical infrastructure in the City of Coachella overlayed on FEMA’s National Flood Hazard Layer.

Figure 4-8: Critical Infrastructure and FEMA’s Flood Hazard Layer SECTION 5.0 – COMMUNITY RATING SYSTEM

5.1 REPETITIVE LOSS PROPERTIES
There are no repetitive loss properties in the City of Coachella.

5.2 NATIONAL FLOOD INSURANCE PROPERTIES

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The City of Coachella does participate in the National Flood Insurance Program (NFIP) - # 060249 since 09/30/80.
a. Describe participation in NFIP, including any changes since previously approved plan. There are no changes since the 2018 Local Hazard Mitigation Plan. b. Date first joined NFIP. 09/30/1980
c. Identify actions related to continued compliance with NFIP.

Continually monitoring all streets, flood control channels, washes, and hillsides. Upgrade flood maps as identified by the Community Action Visit and as additional incorporation areas become part of the City.
d. CRS member? N/A
e. CRS class? N/A
f. Describe any data used to regulate flood hazard area other than FEMA maps.

N/A
g. Have there been issues with community participation in the program? None
h. What are the general hurdles for effective implementation of the NFIP? None
i. Summarize actions related to continued compliance with NFIP (c-2 and c-4) N/A

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SECTION 6.0 - CAPABILITIES ASSESSMENT
Capabilities are the programs and policies currently in use to reduce hazard impacts or that could be used to implement hazard mitigation activities. This capabilities assessment is divided into five sections –
• Regulatory Mitigation Capabilities
• Administrative And Technical Mitigation Capabilities
• Fiscal Mitigation Capabilities
• Mitigation Outreach And Partnerships
• Funding Sources

6.1 REGULATORY MITIGATION CAPABILITIES
Regulatory mitigation capabilities can be expanded and improved in the following ways:

Providing incentives and financial assistance for property owners to retrofit their buildings for hazard resilience. This can include grants, low-interest loans, or tax incentives for improvements.

Implementing and enforcing zoning regulations that restrict development in high-risk areas, such as floodplains. Encourage smart land use planning to minimize exposure to hazards.

Table 6-14 lists planning and land management tools typically used by jurisdictions to implement hazard mitigation activities and those that are currently active in the city. The column that indicates “Yes” or “No” defines if the City has that capability currently.

Table 6-14: Regulatory Mitigation Capabilities for the City of Coachella Regulatory Tool Yes/No Comments
General plan Yes Updated 2015; This plan helps with the City’s long-term changes and
improvements, which include
developing new infrastructure or
policies on topics like land use,
mobility, and public safety. It also
includes a discussion of fire,
earthquake, flooding, and severe
weather. This plan assists with the
integration of mitigation actions.

Zoning ordinance Yes Title 17-Chapter 17.08

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Subdivision ordinance Yes Title 15 – Chapter 15.08.030
Site plan review requirements Yes
Floodplain ordinance No
Other special purpose
ordinance (storm water, water
conservation, wildfire)
Yes 2015 Model Water Efficient Landscape
Ordinance
Building code Yes California Code, Title 15; This code
indicates how new developed
structures can be built. This code can
support with some of the mitigation
actions the City may consider doing in
revising and updating this code in order
to enforce stricter building regulations
to prevent disaster risks such as fires
and earthquakes.

Fire department ISO rating Yes
Erosion or sediment control
program
No
Storm water management
program
Yes
Capital improvements plan Yes Five year plan, updated annually Economic development plan Yes Comprehensive General Plan Local emergency operations
plan
Yes Updated 2021
Flood Insurance Study or other
engineering study for streams
Yes Panel 2300

6.2 ADMINISTRATIVE/TECHNICAL MITIGATION CAPABILITIES
Administrative/technical mitigation capabilities can be expanded or approved upon in the following ways:

Implementing an advanced early warning system for different hazards, such as flood forecasting and earthquake early warning systems. Early warning systems detect and inform at-risk communities before disasters, enable early action, save lives and reduce impact of disasters.

Table 6-15 is a list of City Departments that can have a role in activities related to hazard mitigation. The column that indicates “Yes” or “No” defines if the City has that capability currently.

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Table 6-15: Administrative and Technical Capabilities for the City of Coachella.

Personnel Resources Yes/No Department/Position
Planner/engineer with knowledge of land
development/land management practices Yes Development Director Engineer/professional trained in
construction practices related to buildings
and/or infrastructure Yes
City Engineer and Building
Official
Engineer with an understanding of
natural hazards Yes
City Engineer and
Development Director
Personnel skilled in GIS Yes Planning Department
Full time building official Yes Building Division
Floodplain manager No
Emergency manager Yes Public Works/ESC
Grant writer Yes Administration
GIS Data—Land use Yes Planning Department
GIS Data—Links to Assessor’s data Yes Planning Department Warning systems/services
(Reverse 9-11, outdoor warning signals) No

6.3 FISCAL MITIGATION CAPABILITIES
Fiscal mitigation capabilities can be expanded or improved upon by seeking federal, state, and regional grant opportunities that provide funding for hazard mitigation projects. This could include programs like the Federal Emergency Management Agency’s (FEMA) Hazard Mitigation Assistance (HMA) grants. Be diligent in applying for available grants and maximizing the use of external funds for mitigation projects.

Table 6-16 identifies financial tools or resources that the city could potentially use to help fund mitigation activities.

Table 6-16: Fiscal Mitigation Capabilities for the City of Coachella Financial Resources
Accessible/Eligible
to Use (Yes/No)
Comments
Community Development Block
Grants, HMPG, or other federal
infrastructure finding
Yes EMPG, SHSP
Capital improvements project
funding
Yes
Authority to levy taxes for
specific purposes
Yes With voter
approval

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Fees for water, sewer, gas, or
electric services
Yes Water & Sewer
Impact fees for new
development
Yes
Incur debt through general
obligation bonds
Yes With voter
approval
Incur debt through special tax
bonds
Yes With voter
approval
Incur debt through private
activities
No
Withhold spending in hazard
prone areas
N/A
Other

6.4 MITIGATION OUTREACH AND PARTNERSHIPS
The City of Coachella has engaged in mitigation outreach efforts to educate residents, businesses, and community organizations about the importance of disaster preparedness and mitigation.

The City trains residents in emergency preparedness through Teen CERT classes that are available once per year. CERT training prepares residents to assist the City of Coachella and emergency personnel during hazardous situations and mitigates the likelihood of loss of life or injury in the process.

The City has provided emergency preparedness presentations to the older adults that convene at the Senior Center.

The City regularly interacts with the City of Coachella’s Emergency Services representative.

City of Coachella has regular discussions and attends meetings held by the County of Riverside Emergency Management Department, to include the Riverside County Operational Planning Committee (OAPC) meetings.

The City participates in the Great ShakeOut annually with all staff.

The City of Coachella Fire Department has an automatic aid agreement for fire and emergency medical services with the Riverside County Fire.

6.5 FUNDING OPPORTUNITIES
FEMA HMA Grants: Cal OES administers three main types of HMA grants: (1) Hazard Mitigation Grant Program, (2) Pre-Disaster Mitigation Program, and (3) Flood Mitigation Assistance Program. Eligible applicants for the HMA include state and local governments, certain private non-profits, and federally recognized Indian tribal governments. While private

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citizens cannot apply directly for the grant programs, they can benefit from the programs if they are included in an application sponsored by an eligible applicant.

FEMA Public Assistance Section 406 Mitigation: The Robert T. Stafford Disaster Relief and Emergency Assistance Act provides FEMA the authority to fund the restoration of eligible facilities that have sustained damage due to a presidentially declared disaster. The regulations contain a provision for the consideration of funding additional measures that will enhance a facility’s ability to resist similar damage in future events.

Community Development Block Grants: The California Department of Housing and Community Development administers the State’s Community Development Block Grant (CDBG) program with funding provided by the U.S. Department of Housing and Urban Development. The program is available to all non-entitlement communities that meet applicable threshold requirements. All projects must meet one of the national objectives of the program – projects must benefit 51 percent low- and moderate-income people, aid in the prevention or clearance of slum and blight or meet an urgent need. Grant funds can generally be used in federally declared disaster areas for CDBG eligible activities including the replacement or repair of infrastructure and housing damaged during, or because of, the declared disaster.

SECTION 7.0 - PLAN IMPLEMENTATION AND MAINTENANCE PROCESS The City will monitor its LHMP on an annual basis as it evaluates and submits budget requests for its Emergency Operations Division and submits projects to be funded by its Capital Improvement Program. Limitations will exist and dependent on available funding. Our Public Works Department will be in charge of review, monitoring, evaluation and updating our LHMP. If through this process we discover changes have occurred during the review/evaluation, we will update the LHMP Revision Page and notify OES to update our Annex.

The evaluation process will include assessments of the following components of the LHMP:
• Reassess our hazards and mitigations. Reaffirm if those identified are still accurate. • Assess if the nature, magnitude, and/or type of risks have changed. • Identify planning tools that must be refined and/or developed. • Identify resources available to respond to the hazards identified and what resources are lacking.
• Identify regional resources and relationships we need to build upon and refine. • Obstacles identified as a result of training or real incidents. • Evaluate whether the agencies and other partners participation was as anticipated.

The City of Coachella has several existing planning mechanisms where hazard mitigation information and actions will interconnect. These mechanisms include:

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Comprehensive plan: The comprehensive plan, also known as a general plan, is a long-range policy document that guides the physical, social, and economic development of a city. It typically includes land use goals, objectives, and policies. Hazard mitigation information and actions can be integrated into the comprehensive plan by incorporating specific land use regulations, development standards, and policies that address hazard-prone areas, resilient infrastructure, and disaster preparedness.

Capital Improvement Plan: The Capital Improvement Plan outlines the city’s proposed public infrastructure projects and major investments over a specified period. By incorporating hazard mitigation information and actions into the Capital Improvement Plan, the city will prioritize projects that enhance resilience and reduce vulnerability to hazards. This includes projects such as flood control measures and retrofitting critical infrastructure.

Zoning and Building Codes: Zoning regulations and building codes play a crucial role in shaping land use and development within a city. By integrating hazard mitigation principles into zoning ordinances and building codes, the city can ensure that new development projects adhere to resilient design standards, setback requirements, and other measures that mitigate risks posed by hazards. This could include regulations for building in flood zones, seismic safety requirements, or wildfire-resistant construction practices.

Permitting Processes: Permitting processes provide the framework for reviewing and approving development projects. Incorporating hazard mitigation into the permitting process allows the city to assess potential risks and ensure that proposed projects comply with applicable hazard mitigation measures. This may involve conducting environmental assessments, requiring hazard impact studies, or incorporating hazard mitigation conditions as part of the permitting requirements.

It is critical to engage stakeholders and the community throughout the process. This includes involving relevant departments within the local government, such as planning, public works, emergency management, and community development, in the integration process. Additionally, public participation through workshops, meetings, and feedback mechanisms should be encouraged to gather input and ensure community buy-in.

SECTION 8.0 INCORPORATION INTO EXISTING PLANNING MECHANISMS The City of Coachella will integrate mitigation goals, information, and actions from its 2022 LHMP into the Safety Element of the General Plan upon the next update in 2035. The LHMP is already implemented into the following planning mechanisms.
• Building and Construction Codes

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• Fire Codes
• Capital Improvement Plan
• Storm Drain Master Plan
• Stormwater ordinance required by MS4
• Efficient Landscape Irrigation Ordinance required by MS4 The LHMP will be reviewed by key staff to incorporate the identified hazards within the City. Some of these identified hazards will also include review with the County of Riverside Emergency Management Department personnel to help address potential funding opportunities. All of the identified hazards within the plan will be considered in building, modernizing, and maintaining city facilities.

SECTION 9.0 - CONTINUED PUBLIC INVOLVEMENT
After the City of Coachella Planning Committee reviews the Scheduled Plan Maintenance Process, we will notify the public of any changes and request input from the public to the LHMP by posting the LHMP on the city’s website, announcing the request for input at public events and meetings.

In addition, we discuss hazard mitigation planning during all CERT courses and refresher trainings.

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APPENDIX A – PUBLIC NOTICES AND MAPS
Figure A – 9: Public Opportunity City Website Screenshot

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Figure A – 10: Public Opportunity Survey Questions

1. What city or unincorporated area do you live and work in?

2. Are you responding as:
a. Resident
b. Community Organization
c. Local Business
d. Non-Profit Organization

3. Are you aware that Riverside County has a Local Hazard Mitigation Plan? a. Yes
b. No

4. Please select the one hazard you think is the highest threat to your neighborhood:
a. Extreme Weather
b. Flood
c. Insect Infestation
d. Landslide
e. Tornado
f. Wildland Fire
g. Civil Disorder
h. Communications Failure
i. Cyber Attack
j. Dam Failure
k. Electrical Failure
l. HazMat Incident
m. Jail/Prison Event
n. Nuclear Incident
o. Pipeline Disruption
p. Terrorist Event – Mass Casualty Incident
q. Transportation Failure
r. Water Supply Disruption/Contamination
s. Emergency Disease/Contamination
t. Pandemic Flu

5. Please select the one hazard you think is the second highest threat to your neighborhood:
a. Extreme Weather
b. Flood
c. Insect Infestation
d. Landslide
e. Tornado
f. Wildland Fire
g. Civil Disorder
h. Communications Failure
i. Cyber Attack
j. Dam Failure
k. Electrical Failure
l. HazMat Incident

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m. Jail/Prison Event
n. Nuclear Incident
o. Pipeline Disruption
p. Terrorist Event – Mass Casualty Incident
q. Transportation Failure
r. Water Supply Disruption/Contamination
s. Emergency Disease/Contamination
t. Pandemic Flu

6. In your opinion, what are some steps your local government could make to reduce or eliminate the risk of future damages in your neighborhood?

7. Are there any other issues regarding the reduction of risk and loss associated with hazards or disasters in the community that you think are important?

8. A number of community-wide activities can reduce our risk from hazards. In general, these activities fall into one of the following six broad categories. Please tell us how important you think each one is for your community to consider pursuing.

Prevention – Administrative or regulatory actions that influence the way land is developed and buildings are constructed (Example – Planning and zoning building codes, etc). a. Very Important
b. Somewhat Important
c. Not Important
Property Protection – Actions that involve the modification of existing buildings or structures to protect them from a hazard or remove them from the hazard area (Example – Retrofits, relocation, acquisition, etc).
a. Very Important
b. Somewhat Important
c. Not Important
Public Education and Awareness – Actions to inform and educate residents, elected officials and property owners about the hazards and potential ways to mitigate them (Example – Outreach, real estate disclosure, school-age and adult education).
a. Very Important
b. Somewhat Important
c. Not Important
Natural Resource Protection – Actions that, in addition to minimizing hazard losses, also preserve or restore the functions of natural systems (Example – Erosion control, stream restoration, etc). a. Very Important
b. Somewhat Important
c. Not Important

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Emergency Services – Actions that protect people and property during and immediately after a disaster or hazard event (Example – Warning systems, protection of official facilities, etc). a. Very Important
b. Somewhat Important
c. Not Important
Structural Projects – Actions that involve the construction of structures to reduce the impact of a hazard (Example – Dams, floodwalls, etc).
a. Very Important
b. Somewhat Important
c. Not Important

9. What would make you lose confidence in your jurisdiction’s ability to protect you and your community from hazards?
Non-disclosure of the hazards in my community
a. Very Important
b. Somewhat Important
c. Not Important
Poor planning and response to an emergency or disaster
a. Very Important
b. Somewhat Important
c. Not Important
Lack of follow-up in implementing carrying out mitigation projects a. Very Important
b. Somewhat Important
c. Not Important
No early alert and warnings notifications during an emergency or disaster a. Very Important
b. Somewhat Important
c. Not Important
Too many alert and warnings notifications regarding an emergency or disaster a. Very Important
b. Somewhat Important
c. Not Important

10. Please provide us your name, email, and telephone number. Riverside County will use this information only in instances where they need to respond to your questions or comments. We will not share this information with anyone.
a. Name (Optional)
b. Email Address (Optional)
c. Phone Number (Optional)

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Figure A – 11: Teen CERT Agenda

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Figure A – 12 : City of Coachella’s Flood Prone Areas Map

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Figure A – 13: City of Coachella’s (FIRM) Flood Insurance Rate Map

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APPENDIX B – INVENTORY WORKSHEETS

SEE ATTACHMENTS

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APPENDIX C – PLAN REVIEW TOOL/CROSSWALK

SEE ATTACHMENTS

Item 9.

SAFETY | 08-1
08 | SAFETY

INTRODUCTION
This Element provides strategies that City staff, residents, developers and business owners can implement to effectively address the natural hazards where the City of Coachella is vulnerable. The goals and policies are long-term measures that reflect the City’s desire to deal effectively with natural hazards and provide a safe living environment for the community. The primary objective of the Safety Element, as the policies and actions are implemented over the next 20 years, is to make Coachella increasingly resistant to disasters and become more self-reliant, sustainable and prosperous.

For Coachella to become the most important city in the Valley, it needs to grow responsibly, completely aware and respectful of the natural forces that have shaped this area over the last millennia and are still active today. Several of these forces, including earthquakes, floods, wildfires and severe weather, have the potential to cause substantial damage to the fabric of the community, with resultant significant economic and social dislocation. When (not if) the San Andreas Fault ruptures next, the growth and development of the region has the potential to be delayed for years, if not decades. If the City is well prepared, however, the impact that this earthquake would have on the community could be minor.

Preparation for this worst-case scenario will be expensive but money spent in disaster preparedness will be a fraction of what the actual earthquake would cost the City in disaster response and postdisaster recovery. Thus, earthquake-preparedness should be viewed as a worthy and necessary investment.

The characteristics that define Coachella’s unique identity – the gently sloping valley underlain by thick, rich soils that make it one of the most productive agricultural regions in the world, and the rounded hills and steep, jagged mountains were formed by movement along the San Andreas fault, the wandering of the Whitewater River during flood stage, and the gentle but constant tug of gravity. Most of the time, these forces have little effect on the environment. The big, landscape-changing events occur intermittently, sometimes only once every generation, or less. As a result, it can be difficult to engender the support necessary from the public and government to take action and prepare for these lowprobability but high-consequence events. Coachella, however, recognizes the importance of being proactive and addressing disaster preparedness. It is the responsible thing to do, both for the current community and the generations to come.

When weighing in the effectiveness and cost of disaster preparedness programs, it is helpful to realize many of the action items designed to reduce the community’s risk to natural hazards can work seamlessly with other implementation actions of the General Plan. Thus, green buildings that work well in the arid environment can also be earthquake- and fire-resistant. Respect for the preservation of natural landscapes such as steep slopes and springs along the San Andreas Fault will prevent construction on or across features that are natural hazards. Similarly, preservation of the Whitewater River wash as a habitat and corridor for wildlife can prevent the storm-induced flooding of otherwise illlocated structures. Incorporating xeriscaping into landscape design can decrease the fuel loads available for wildland fires, reducing the potential for vegetation fires at the urban-wildland interface. Recycling water can reduce or eliminate the potential for groundwater-withdrawal-induced subsidence. “Green Attachment 2

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streets” that allow for the infiltration of stormwater lessen runoff, erosion and sedimentation, and the potential for flooding downstream.

Lastly, it is also helpful to realize that Safety Elements are provisional by scope and definition. The policies and implementation actions are established within a framework that identifies timelines and priorities. As the more critical policies are implemented, emphasis will shift to new priorities. This permits the City to prioritize its use of limited resources over the short- and long-term, while continuously moving forward in its ultimate goal of being disaster resistant. Both the process and the ultimate result will help Coachella realize its goals of being a social and economic leader in the region.

OUR COMMUNITY’S GOALS
The geologically and physically diverse environment that forms the backdrop for the community of Coachella formed after thousands of years of tectonic and climatic forces acting on the area. These forces are ongoing today, with the potential to severely impact the built environment, especially if structures and infrastructure are not designed adequately. When this happens, there is the potential for loss of life, limb and/or property. The goals below reflect the City’s fundamental responsibility and desire to protect and preserve the health, safety and welfare of the community. • Minimally impacted by seismic shaking and other earthquake-induced hazards. The San Andreas Fault bisects the City. The section of the fault that extends through Coachella has a high probability of rupturing in the next 30 years. The resulting earthquake will be accompanied by extreme seismic shaking and lateral rupture of the ground that locally may exceed 20 feet. Other earthquakeinduced hazards expected in the area include ground deformation due to liquefaction and slope failure. Any of these conditions can result in damage to the built environment, including the collapse of structures. Recognizing and avoiding or mitigating those areas where earthquake-induced ground failure is likely to occur will minimize the impact this earthquake would have on the City. • All new habitable buildings and structures are seismically resistant. Earthquake-induced damage to the built environment, such as the catastrophic failure of structures, can result in large numbers of casualties. We cannot prevent earthquakes from occurring but we can design and build our structures to prevent them from collapsing. Given that an earthquake on the San Andreas Fault has the potential to be the worst-case disaster for Coachella, the City has a strong incentive and desire to become as earthquake-resistant as possible.
• Older structures are resistant to seismic shaking. The latest building codes have incorporated many lessons learned from the damaging earthquakes that occurred globally in the 1990s and early 2000s.

Building codes are unfortunately not retroactive but we can voluntarily retrofit older structures to be stronger and thus more earthquake-resistant.
• Infrastructure is resistant to seismic shaking, surface fault rupture and seismically induced ground deformation. Earthquake scenarios indicate the infrastructure in the region will be damaged extensively by an earthquake on the San Andreas Fault. The water-distribution system especially will be hard-hit but other services, including the transportation network, will also be affected. The Coachella Canal is expected to be damaged by surface fault rupture and ground deformation, with the potential for significant flooding in the Coachella area. Retrofitting these systems is a priority. • The community is minimally impacted by geologic hazards. The geologically young soils that underlie Coachella can be poor foundation materials, susceptible to liquefaction and differential settlement. Some of the soils are highly expansive or corrosive to metallic objects. All of these

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conditions, if recognized before construction, can be mitigated effectively with engineering solutions.
• Potential geologic hazards have been mitigated before construction of new developments. The City is expanding into the hills to the east of the San Andreas Fault. Slope instability is a potential hazard in this area but can be mitigated through appropriate engineering design. • The community is minimally disrupted by flooding and inundation hazards. Given the arid conditions that characterize Coachella, it can be difficult to recognize the Whitewater River channel and the desert washes, in and at the base of the hills, can carry significant amounts of water during storms, even when those storms do not drop measurable rain. An interconnected, permanent flood control system can prevent flooding in the low-lying areas of the City. Inexpensive but effective seismic strengthening measures can prevent the inundation of low-lying areas downstream of above-ground reservoirs in the event these structures fail during an earthquake. • Fire hazards are negligible, the result of effective fire suppression, mitigation and response measures.

Vegetation fires in the Coachella area have historically been small. With the increased encroachment of development into the hillside areas, however, wildland fire may increase in the future, unless effective programs are implemented. These measures include vegetation control, fireresistant construction and educational programs for homeowners, business owners and motorists.

Strengthening of the gas and water distribution systems will limit the potential for devastating fires after an earthquake.
• Hazardous materials are used minimally. Recognizing that the production, use, storage, transport or disposal of hazardous materials poses a significant hazard to the community and the environment, the City encourages the use of alternative, non-toxic products as much as possible. If hazardous materials are required, the smallest amounts necessary to get the job done will be used. Facilities that generate, use, or store hazardous materials are not located within the 100-year floodplain, in an area susceptible to seismic or geologic hazards, or near schools, nursing homes, or other facilities with sensitive or special-needs populations.
• The community is minimally impacted by severe weather. Strong winds, dust storms, temperature extremes and drought can have short- and long-term impacts on the region’s economy and on the health and wellbeing of residents and visitors. Even more severe weather, with higher temperatures, stronger winds, and more intense flooding, could be the norm as a result of global climate change. As part of the process of becoming more sustainable, the City will implement measures to reduce where possible, the effects of severe weather, and respond proactively and effectively when a storm, strong wind, extreme heat or drought affects the region. • The community has an effective disaster response and recovery system in place, thus is self-reliant and sustainable. History shows the Coachella Valley region is susceptible to several different types of natural hazards. Some of these, like an earthquake on the San Andreas Fault, will have a regional impact, whereas others, like slope failures, tend to be contained to a small geographic area.

Coachella has developed a disaster preparedness, response, and recovery plan that allows the community to be responsive to any type and size of natural hazard with minimal assistance from outside agencies and neighboring cities.

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GOALS AND POLICIES
Goal 1. Earthquake Hazards. A community that is minimally affected by seismic shaking and other earthquake-induced hazards.

Policies

1.1 Development plan review. Review all plans for new development to be certain new structures are designed in accordance with the most recent California Building Code adopted by City Council, including the provisions regarding seismic loads, lateral forces and grading.

1.2 Earthquake-resistant new buildings. Require all new habitable buildings and structures to be designed and built to be seismically resistant and not built across the trace of an active fault.

1.3 Strengthened and seismically retrofitted older structures. Promote the strengthening of older structures to make them more resistant to seismic shaking. This includes encouraging owners of potentially hazardous buildings, such as pre-1952 woodframe structures, concrete tilt-ups, pre-1971 reinforced masonry, soft-story, multifamily residential buildings and manufactured homes, to assess the seismic vulnerability of their structures and conduct seismic retrofitting as necessary to improve the buildings’ resistance to seismic shaking.

1.4 Strengthened infrastructure. Promote the strengthening of infrastructure and utilities to make them more earthquake resistant by encouraging the City’s utility service providers to identify, evaluate and replace or strengthen, as needed, those sections of their distribution network that are located in areas susceptible to fault rupture, liquefaction or slope instability. This also includes encouraging the City’s utility service providers to identify and replace or strengthen those sections of their distribution network in the General Plan area that are the oldest, and therefore more likely to be weathered or corroded.

1.5 Seismically damaged buildings. Prohibit any additions or reconstruction of structures damaged by seismic hazards, unless the structure is re-located to a safer area, or it can be demonstrated the proposed project and its occupants can be protected from future, recurrent damage by implementing mitigation measures not present in the original, damaged structure.

1.6 Liquefaction assessment studies. Require liquefaction assessment studies be conducted for all projects proposed in areas identified as potentially susceptible to liquefaction (Plate 1-3, Technical Background Report). These studies need to be conducted in accordance with the provisions in the Seismic Hazards Mapping Act and the most recent version of the California Geological Survey’s Special Publication 117:

Guidelines for Evaluating and Mitigating Seismic Hazards in California.

1.7 Liquefaction mitigation. In areas where geotechnical testing shows the sediments are susceptible to liquefaction, require the implementation of mitigation measures as a condition of approval. Liquefaction mitigation measures shall be applied to all habitable structures, bridges, roadways, major utility lines and park improvements to be built in these areas.

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1.8 Seismic hazards map update. If the California Geological Survey (CGS) develops a Seismic Hazards Zonation Map that includes the City, review the preliminary map for agreement with geotechnical reports filed at the City, work with the CGS to make any necessary changes and adopt the final map as a replacement to the Seismic Hazards Map currently part of the Technical Background Report (Plate 1-3).

1.9 Inundation review. Regularly evaluate the above-ground water storage tanks in the General Plan area to assess their potential inundation hazard in the event of catastrophic failure and ensure all tanks are fitted with appropriate seismic safeguards, including shut-off valves, in accordance with the most recent water tank design guidelines.

Goal 2. Geologic Hazards. A community that has used engineering solutions to reduce or eliminate the potential for injury, loss of life, property damage and economic and social disruption caused by geologic hazards such as slope instability; compressible, collapsible, expansive or corrosive soils; and subsidence due to groundwater withdrawal.

Policies

2.1 Geotechnical investigations. Require all development proposals in the City to conduct, as a condition of approval, geotechnical and engineering geological investigations, prepared by state-certified professionals (geotechnical engineers and engineering geologists, as appropriate) following the most recent guidelines of the California Geological Survey and similar organizations, that address, as a minimum, the site-specific geologic hazards identified in the Technical Background Report. This includes the hazard of slope failure in, and adjacent to, hillside areas.

2.2 Mitigated geologic hazards. Require all new developments to mitigate the geologic hazards that have the potential to have an impact on habitable structures and other improvements.

2.3 Slope failure mitigation. Minimize grading and modifications to the natural topography to prevent potential for man-induced slope failures. Where deemed necessary, erect protective devices such as barriers, rock fences, retaining structures or catchment areas.

2.4 Field inspections. Conduct routine field inspections during grading and construction to ensure safety practices are being followed and the site is being graded; and new structures are being built in accordance with the most recent California Building Code adopted by the City, in agreement with the approved plans and specifications.

2.5 Slope failure map updates. Maintain an updated map of slope failures in the General Plan area to identify slopes where debris flows, surficial mass wasting events, and rockfalls have occurred, especially during wet winters.

2.6 Learn from past mistakes. Monitor the losses caused by geologic hazards to existing development and require studies to specifically address these issues, including implementation of measures designed to mitigate these hazards in all future developments in the General Plan area.

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2.7 Damaged buildings. Prohibit any additions or reconstruction of habitable structures destroyed or damaged by geologic hazards unless the structure is relocated to a safer area or the applicant proves that the remedial measures proposed will mitigate the unsafe geological conditions so the proposed project and its occupants can be protected from future, recurrent damage.

2.8 Critical facility siting. Regulate the location of new essential or critical facilities in areas that could be affected by geologic hazards by comparing, during the project feasibility stage, the location of the proposed facilities with the mapped areas in the Technical Background Report identified as susceptible to natural hazards.

2.9 Groundwater resources protection. Develop partnerships with the Coachella Valley Water District and adjacent communities to manage the groundwater resources of the region, prevent over-drafting of the aquifers and prevent regional subsidence due to excessive water extraction.

Goal 3. Flood hazards. A community that is minimally disrupted by flooding and inundation hazards.

Policies

3.1 Hydrological studies. Require new development proposals to include as a condition of approval, hydrological studies prepared by a state-certified engineer with expertise in these kinds of studies, that assess the impact the new development will have on the flooding potential of existing development down-gradient. The studies shall provide mitigation measures to reduce this impact to an acceptable level.

3.2 Flood mitigation in repetitive-flooding areas. Identify repetitive flood problem areas in existing development, prioritize hydrological studies of areas that flood repeatedly during storms and develop feasible engineering solutions to mitigate these sites.

3.3 Flood mitigation for both existing and new construction. Require all new developments and redevelopments in areas susceptible to flooding (such as the 100- year floodplain and areas known to flood during intense or prolonged rainfall events) to incorporate mitigation measures designed to minimize or eliminate flood hazards.

3.4 Flood hazard enforcement. Continue to enforce City ordinances for flood hazard reduction, tract drainage and stormwater management for all new developments and existing projects undergoing substantial improvements within the FEMA-designated Special Flood Hazard Areas, other areas identified by the state as susceptible to flooding, hillside areas, and other areas known to flood. Mitigation measures may include (but are not limited to) the design of onsite drainage systems connected to the Coachella Valley Stormwater Channel, keeping surface waters within the project area, grading of the sites so that runoff does not affect adjacent properties, and building structures so they are elevated above the anticipated flood levels.

3.5 Storm drainage facilities. Maintain, develop and improve where needed, the storm drain facilities (including bridges and other stormwater channel crossings) with an emphasis on those areas in the City that flood repeatedly.

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3.6 Floodplain development. Promote the use of floodplains as parks, nature trails, equestrian parks, golf courses or other types of recreational facilities that can withstand periodic inundation. In the planned build-out of the City, create an atmosphere of working with nature and the natural processes characteristic of the arid environment.

3.7 Disaster response plan. Require all essential and critical facilities (including but not limited to essential City offices and buildings, medical facilities, schools, childcare centers and nursing homes) in or within 200 feet of Flood Zones A and X, to develop disaster response and evacuation plans that address the actions to be taken in the event of storm flooding or inundation due to catastrophic failure of a water reservoir or other water retention facilities such as the Coachella Canal, the Eastside Dike and levees of the Coachella Valley Stormwater Channel.

3.8 Hazardous material siting. New facilities that use or store hazardous materials in quantities that would place them in the State’s TRI or SQG databases shall not be permitted in the flood zone (Zones A and X) unless all standards of elevation, anchoring and flood proofing have been implemented to the satisfaction of the City and the Riverside County Department Hazardous Materials Division. The hazardous materials must be stored in watertight containers not capable of floating or in floodproof receptacles or tanks.

3.9 Storm Ready Program. Participate in the Storm Ready Program with the National Weather Service, including the monitoring of precipitation and snow levels on the mountains, providing storm watches and warnings in real-time and issuing evacuation notices for the potentially affected neighborhoods in a timely manner.

3.10 Smart systems. Encourage the use of technology to identify flood-prone areas and to warn residents and motorists of impending flood hazards.

3.11 Flood damage. Prohibit any additions or reconstruction of structures damaged by flooding, unless the structure is relocated to a safer area or can be demonstrated the proposed project and its occupants can be protected from future, recurrent flood damage by implementing mitigation measures not present in the original, damaged structure.

3.12 Flood Insurance. Encourage property owners and residents to purchase flood insurance for areas outside of the FEMA-mapped 100-year flood zones, especially in those areas that have experienced flooding in the past.

Goal 4. Fire hazards. A community that is minimally affected by wildland and structure fires.

Policies

4.1 Vegetation control. Require the use of vegetation control methods to reduce the hazard of wildland fire.

4.2 Construction materials. Require the use of fire-resistant building construction materials to reduce the hazard of structure fires, within the developed areas of the City and at the urban-wildland interface.

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4.3 Sprinkler retrofits. Encourage owners of non-sprinklered high-occupancy structures to retrofit their buildings to include internal sprinklers.

4.4 Fire response adequacy. Ensure, to the maximum extent possible, that fire services, such as firefighting equipment and personnel, infrastructure and response times, are adequate for all sections of the City. To that end, continue to regularly evaluate specific fire hazard areas, and adopt reasonable safety standards, such as adequacy of nearby water supplies, fire-retardant roofing materials, fire-equipment accessible routes, clarity of addresses, street signage and street maintenance.

4.5 Fire flow tests. Ensure that annual fire flow tests are conducted, and that any deficiencies found be mitigated as soon as possible.

4.6 Fire inspections. Conduct regular inspection of parcels throughout the City, and direct property owners to bring their property into compliance with fire safety standards. This includes enforcing the weed abatement and notification program to reduce the potential for vegetation fires that could occur in vacant or poorly maintained lots, and encourage homeowners to follow fire-safe practices, including maintaining a fire-safe landscape and keeping combustibles (such as fire wood) a safe distance away from all structures.

4.7 Fire Hydrant Management. Establish a fire hydrant monitoring and testing program.

Explore different funding streams including development impact fees.

Goal 5. Hazardous Materials Management. A community that has reduced the potential for hazardous materials contamination.

Policies

5.1 Enforcement actions. Continue to enforce disclosure laws that require all users, generators and transporters of hazardous materials and wastes to identify the materials they store, use or transport.

5.2 Effective response. Ensure the City and the county’s fire and sheriff departments can respond safely and effectively to a hazardous materials incident in the City, whether as a spill at a permitted facility, a pipeline release or an accident along a section of the I-10 or railroad line that extends across Coachella; ensure all residents, workers and visitors to Coachella are protected from exposure to hazardous materials and waste.

5.3 Hazardous materials siting. Prohibit the placement of proposed new facilities that will be involved in the production, use, storage, transport or disposal of hazardous materials near existing land uses that may be adversely affected by such activities.

Conversely, prohibit the development of new sensitive facilities (like schools, childcare centers, nursing homes, senior housing, etc.) near existing sites that use, store or generate hazardous materials.

5.4 Gasoline dispensing facilities. Avoid siting new sensitive land uses (schools, childcare centers and senior housing) within 300 feet of a large gas station (defined as a facility with a throughput of 3.6 million gallons per year or greater) and vice versa. A minimum 50-foot separation is recommended for other uses.

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5.5 Hazardous materials transport routes. Identify roadways along which hazardous materials are routinely transported and if schools, medical facilities, child-care centers or other facilities with special evacuation needs are located along these routes, the City, together with these facilities, will identify emergency response actions that can be implemented if a roadway accident results in the unauthorized release of hazardous materials.

5.6 Hazardous materials on public property. Reduce or eliminate the use of pesticides and herbicides that can have a negative impact on human health on city properties – especially in parks and publicly accessible open spaces.

5.7 Green cleaning in public buildings. Require the City use green and non-toxic cleaning supplies in all public buildings to protect the health of workers and users of the facilities. Encourage school districts, health facilities, youth programs and local business within Coachella to use green and non-toxic cleaning supplies.

5.8 Non-toxic alternatives. Encourage residents and businesses to reduce or eliminate the use of hazardous materials, including pesticides and herbicides, by using nontoxic, safer products and methods that do not pose a threat to the environment or by buying and using only the smallest amount of a hazardous substance needed for the job.

5.9 Green dry cleaning. Promote and incentivize dry cleaning facilities that use environmentally friendly cleaning processes.

5.10 Household hazardous waste collection. Increase awareness in the community about proper disposal/collection of leftover household products, especially those that contain corrosive, toxic, ignitable, or reactive ingredients that are considered to be "household hazardous waste.” Require special care for disposal or collection of products, such as paints, cleaners, oils, batteries and pesticides that contain potentially hazardous ingredients.

5.11 Hazardous materials disposal. Continue to support the operation of programs and recycling centers that accept hazardous substances, such as paint, paint thinner, used waste oil, etc., such as the City’s Drop-Off facility.

Goal 6. Clean Environment. A community protected from the harmful effects of pollution and hazardous materials, hazardous waste and environmental contamination.

Policies

6.1 Clean drinking water. Work with the Riverside County Department of Environmental Health and community organizations to educate families about the health risks of drinking from potentially contaminated wells and provide options for the families to obtain safe and clean water.

6.2 Water funding. Seek funding to ensure adequate infrastructure and service delivery to provide safe drinking water and access to an adequate wastewater system within Coachella and within the City’s sphere of influence.

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6.3 Mold and lead hazards prevention. Partner with the Riverside County Environmental Health and Public Health Departments to provide education and technical assistance in reducing mold and lead hazards in homes.

6.4 Agriculture-related hazards. Protect residents and workers from the sometimesharsh conditions and potentially harmful consequences of agricultural operations while preserving the vitality of the industry.

6.5 Worker safety. Work with the county and community groups to educate agricultural workers, their families and employers about minimizing exposure to pesticides while at work and preventing the spread of harmful pesticides from the field to their homes and families.

6.6 Buffer zones. Create buffer zones between agricultural and residential areas, schools and other sensitive receptors to protect community members from pesticides and herbicides.

6.7 Noticing. Work with the farms to provide education about and inform nearby residences, schools, businesses, etc. about upcoming pesticide sprays and how to avoid negative impacts.

6.8 Pesticides on agricultural land. Create and periodically update a master database of local agricultural land, nurseries and greenhouses that includes, to the extent feasible, information on soil quality, past and present use of herbicides and pesticides, past occurrences of contaminant releases and other historical events that could pose a health risk, so the City has accurate information when considering new development proposals or soil-mitigation projects.

6.9 Agricultural land project coordination. Work with the Riverside County Department of Environmental Health and the Agricultural Commissioner’s Office on regulating pesticide/hazardous materials upon conversion of an existing agricultural operation.

Encourage property owners to coordinate with regulatory agencies concurrently with project design and development. A materials analysis (degree of contamination, scope of treatment, remediation and/or disposal measures) should be considered, initiated and documented in conjunction with the preliminary design, project review and construction. Develop a process to keep adjacent residents informed and protected throughout the stages of development, including the identification and remediation phases.

6.10 Agriculture soil quality. Require testing of land previously used for agricultural purposes before new development. If contaminants are present, the soil must be treated and re-tested until levels are adequate, or if necessary, removed and replaced with clean soil, before any development on site.

6.11 Soil Quality. Require soil testing for contaminants on sites that have historically, or currently, been exposed to chemical releases. If contamination does exist, require a remediation strategy to reduce or eliminate contamination on site.

6.12 Conversion to organic farming. Incentivize the conversion of Coachella’s farms to organic methods of agriculture that do not use chemical pesticides and herbicides.

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6.13 Pesticide education to businesses. Provide education to gardeners and landscape companies that do business in Coachella about alternatives to, and safer usage of, toxic pesticides and herbicides.

6.14 Proximity to pollution sources. Avoid locating new sensitive uses such as schools, child-care centers, multifamily housing and senior housing in proximity to sources of pollution (e.g., I-10, truck routes, busy roadways and agricultural land where pesticides and chemical fertilizers are used regularly) and vice versa. Where such uses are located in proximity to sources of air pollution, use building design, construction and technology techniques to mitigate the negative affects of air pollution on indoor air quality. For guidance consult with the South Coast Air Quality Management District, CARB’s Air Quality and Land Use Handbook or other more recent scientific studies or tools.

6.15 Regional air and water quality. Track and publicly support regional, state and federal efforts that improve air and water quality to protect human and environmental health and minimize disproportionate impacts on sensitive population groups.

Goal 7. Severe Weather Hazards. A community that is minimally affected by high winds, dust storms, extreme temperatures and drought.

Policies

7.1 Climate and health indicators. Monitor local changes in temperature, extreme heat days, heat waves, drought and precipitation patterns to inform policy and planning decisions.

7.2 Public awareness. Develop a public awareness program, including educational materials, that provides information on what to do before, during and after a windstorm to protect life and property.

7.3 Backup energy sources. Obtain and install backup power equipment for critical facilities to ensure they are functional during a power failure, resulting from a windstorm or earthquake, and ensure the equipment is in working condition at all times.

7.4 Below ground utilities. Phase out and replace overhead electric lines with subsurface lines that will not be affected by fallen trees and branches during windstorms.

7.5 Tree trimming. Enforce the national guidelines on tree trimming and vegetation management around electric transmission and communication lines to prevent or reduce the potential for felled branches or trees to cause power outages and disrupted communications.

7.6 Monitor severe weather losses and climate change-related hazards. Monitor and regularly assess climate vulnerabilities. Create a database to track incidents of windstorms, dust storms and other severe weather events to develop a better understanding of the frequency, magnitude and costs associated with severe weather. Use this knowledge to determine the value of establishing a “bad weather” fund to pay for repairs, cleaning and other direct costs of severe weather.

Periodically review the effectiveness of existing plans, programs, codes and ordinances in protecting health and safety

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7.7 Populations at risk. Identify populations that, due to economic or other circumstances, do not have the resources to cool or heat their living environment during hot summers, or cold winters, and thus may be at risk for temperaturerelated illnesses or death. During high heat or extreme cold events, check on these individuals, and if necessary, transport them to cooling centers or heated shelters.

7.8 Cooling centers and air conditioning. Work with the City’s emergency response team and community action partnership of Riverside County to expand access to the dropin cooling centers for people vulnerable to high heat days. This should also include organizing a transportation-assistance program for individuals without access to vehicles, develop a robust heat warning system and provide up-to-date information to residents about cooling center locations and the health risks of extreme heat.

7.9 Workers’ safety. Enforce Cal-OSHA’s Heat Illness Prevention Program, especially in the agricultural and construction sectors where employees are exposed to extreme heat conditions at outdoor worksites.

7.10 Wind barriers. Encourage the preservation and establishment of additional wind barriers in the form of hedges and tree lines to reduce the effects of dust and sand.

7.11 Best management practices during construction and planting. Enforce the use of water spray and other mitigation measures to control dust in grading and construction sites and in agricultural fields being prepared for planting. This may include prohibiting earthwork activities at construction sites and farms on windy days.

Goal 8. Disaster Preparedness. A community that has planned for emergency response and recovery from natural disasters, especially from earthquakes, flooding, and fire, and from civil unrest that may occur following a natural disaster.

Policies

8.1 Local Hazard Mitigation Plan: Maintain and update on a regular basis, as mandated by FEMA, a Local Hazard Mitigation Plan. Incorporate an assessment of climate changerelated hazards in all future Local Hazard Mitigation Plan updates.The Local Hazard Mitigation Plan (LHMP) for the City of Coachella planning area was developed in accordance with the Disaster Mitigation Act of 2000 (DMA 200) and followed FEMA’s 2011 Local Hazard Mitigation Plan guidance. The LHMP incorporates a process where hazards are identified and profiled, the people and facilities at risk are analyzed, and mitigation actions are developed to reduce or eliminate hazard risk. The implementation of these mitigation actions, which include both short and long-term strategies, involve planning, policy changes, programs, projects, and other activities.

The Local Hazard Mitigation Plan can be found at this location:
https://www.coachella.org/home/showpublisheddocument/10470/6388162555714 00000.

8.2 Emergency response organization: Maintain and update the emergency response organization consisting of representatives from all City departments, the Riverside County Fire and Sheriff Departments, local quasi-governmental agencies, private

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businesses, citizens, and other community partners involved in emergency relief and/or community-wide emergency-response services.

8.3 Ask the climate question. Consider and plan for climate change-related hazards when conducting disaster preparedness exercises.

8.4 Regional hospital: Provide incentives to establish a new hospital in the region that includes extensive redundant systems, including generators and its own water storage, to provide medical emergency services to the area.

8.5 Mutual aid: Continue to maintain mutual aid agreements with neighboring cities and the Riverside County Operational Area.

8.6 Emergency exercises: Participate in regional and local emergency exercises, such as the Great California ShakeOut, an annual statewide earthquake drill.

8.7 Maintain critical facilities: Ensure to the fullest possible extent that, in the event of a major disaster, critical, dependent care and high-occupancy facilities remain functional. The Riverside County Fire Department, in their annual review of these facilities, will encourage owners and operators to maintain alternate emergency exits, emergency evacuation plans, emergency generators and anchor computers, shelving, and other non-structural elements.

8.8 Sensitive facilities: Compile and maintain a list of facilities that because of population demands (such as mobility issues, construction type, location relative to a high hazard area or other factors) may have a high risk and specific needs requiring special response during a disaster.

8.9 Public preparedness: Enhance public awareness and preparedness by encouraging residents and businesses to store supplies for self-reliance following a disaster.

Emergency preparedness kits should include, at a minimum, a seven-day supply of drinking water and food for all members of the household or business, including pets.

8.10 Earthquake-preparedness educational programs: Offer educational programs for residents and businesses regarding measures to take before, during, and after an emergency, and involve the public in the awareness of City emergency response plans, resources, risk reduction and mitigation measures.

8.11 Changing fire hazards. When reviewing fire hazards, consider the increasing risk of wildfires and consider requiring enhanced fire protection measures.

8.12 Flood-preparedness educational programs. Prepare and distribute informational materials to owners of properties within the flood zones (Zones A and X), as well as potential seismically induced inundation areas, regarding the potential for flooding in their area. It would include the potential for flooding of access routes to and from their neighborhoods. Continue to educate and remind the public of the risks of flooding and the uncertainties inherent in the flood hazard mapping.

8.13 Periodic reminders: Periodically issue reminders to encourage residents to review and renew their earthquake-preparedness kits and other emergency preparedness materials and procedures.

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8.14 Emergency response training: Direct select City staff to coordinate with the Riverside County Fire Department and train in NIMS-compliant emergency response procedures to provide assistance as needed during emergency situations. This includes conducting emergency response exercises, including mock earthquakeinduced fire-scenario exercises, to evaluate and improve, as needed, the City’s ability to respond to the multiple ignitions that an earthquake is likely to generate.

8.15 Community training programs: Develop and hold regular training exercises that involve residents as much as possible, through the Community’s Emergency Response Team (CERT) program, to empower individuals and neighborhoods to be self-reliant in the aftermath of a natural or man-made disaster.

8.16 Emergency shelters: Review potential shelter locations and draw agreements, as needed, with the owners and operators of those facilities. Specific sheltering amenities that each of these facilities can provide, including restrooms and showers, whether cooking can be done on site, and whether family pets are allowed, should be identified so this information is available in advance of a disaster. Identify and procure shelter locations for horses and other large animals.

8.17 Local preparedness plans: Continue to support the development of local preparedness plans and multi-jurisdictional cooperation and communication for emergency situations consistent with regional, state (SIMS), and federal standards, guidelines and/or recommendations (NIMS).

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STAFF REPORT
7/23/2025
TO: Honorable Mayor and City Council Members
FROM: Andrew Simmons, P.E., Public Works Director/City Engineer SUBJECT: Authorization to file a Notice of Completion for the Westerfield Retention Basin Landscape Improvements, City Project No. 111924.

STAFF RECOMMENDATION:

Accept the Westerfield Retention Basin Landscape Improvements (Project No. 111924) as complete and direct the City Clerk to file a Notice of Completion attached hereto with the County of Riverside.

DISCUSSION/ANALYSIS:

On January 22, 2025 City Council authorized a construction contract with Superb Engineering for the Westerfield Retention Basin Landscape Improvements Project. City Staff has inspected the Project and found the improvements to be in accordance with plans, specifications, and applicable standards. Staff recommends the acceptance of this project and that the City Council authorizes the filing of a Notice of Completion. Upon acceptance by City Council, the Project will enter a one-year warranty period as prescribed by the project contract agreement.

FISCAL IMPACT:

No fiscal impact to General Fund. The project was constructed within budget including all quantities totaling $249,061.77.

ATTACHMENTS:

1. Notice of Completion

Item 10.
(“President of,” “Manager of,” “A partner of,” “Owner of,” etc.)

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

Name
Street
Address
City &
State
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
Notice is hereby given that:

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

2. The full name of the owner is

3. The full address of the owner is

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

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

NAMES ADDRESSES

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

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

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

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

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

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

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

Executed on , 20 , at , California.
(Date of signature) (City where signed)
(Personal signature of the individual who is swearing that the contents of the notice of completion are true)
City of Coachella
Mayor, Steven A. Hernandez
City Clerk
Angela Zepeda
Delia Granados
53990 Enterprise Way
Coachella, CA 92236
City of Coachella
53990 Enterprise Way, Coachella, CA 92236
Steven A. Hernandez 53990 Enterprise Way
Mayor Coachella, CA 92236
07/14/2025
Westerfield Retention Basin Landscape Improvements, City Project No.111924 Superb Engineering
Coachella
Riverside Westerfield Retention Basin
APN 768-133-001
none (APN 768-133-001)
07/23/2025
City Clerk, Angela Zepeda
July 23 25 Coachella

Item 10.

STAFF REPORT
7/23/2025
TO: Honorable Mayor and City Council Members
FROM: Andrew Simmons, P.E., Public Works Director/City Engineer SUBJECT: Amendment #1 to the Lease Agreement with Troll Family Limited Partnership for property at APNs: 603-241-010 and 603-241-011.

STAFF RECOMMENDATION:

Authorize City Manager to execute Amendment #1 to the Lease Agreement with Troll Family Limited Partnership for property at APNs: 603-241-010 and 603-241-011.

EXECUTIVE SUMMARY:

The City entered into a lease agreement with the Troll Family Limited Partnership to lease their property located on Ed Mitchel Drive between Frederick Street and Grapefruit Blvd for a three year term in August 2022. The agreement expires on July 31, 2025. The City now requests to amend the agreement for an additional three year term. The owner has agreed to renew the lease with the same terms as the original lease.

The City has used this property for overflow parking adjacent to Rancho Las Flores Park during special City Events. This property will also be beneficial during construction of the Rancho Las Flores Park Expansion Project. The City recommends authorizing Amendment #1 for an additional three year term. The annual fee for the lease is $6,000.

FISCAL IMPACT:

No fiscal impact.

ATTACHMENTS:

1. Amendment #1 with Troll Family Limited Partnership

2. Lease Agreement

Item 11.

First Amendment to Lease for Certain Real Property
Between the City of Coachella
And
Troll Family Limited Partnership

1. Parties And Date.

This First Amendment to the Lease for Certain Real Property ("First Amendment") is made and entered into this 23
rd day of July, 2025 by and between the City of Coachella ("Lessee") and Troll Family Limited Partnership., ("Lessor"). Lessee and Lessor are sometimes individually referred to as "Party" and collectively as "Parties" in this First Amendment.

2. Recitals.

2.1 Lease. Lessee and Lessor entered into that certain Lease For certain real property identified as Assessor Parcel Numbers: 603-241-010, 603-241-011, in the City of Coachella, County of Riverside dated July 1, 2022 ("Lease"), whereby Lessor is the owner of certain real property (the "Premises") described by Exhibit "A" attached to the Lease.

2.2Amendment. Lessee desires to lease the Premises from Lessor for purposes to provide parking to augment that available at the adjacent Rancho Las Flores Park, and Lessor desires to lease the Premises to Lessee on the terms and conditions set forth in the Lease and in this First Amendment.

2.3 Amendment. Lessee and Lessor desire to amend the Lease for the first time to amend the following terms of the Lease: extend the term of the Lease, extend the Notice of Termination period and amend the use.

3. Amendments.

3.1 Recitals. Recitals A, B, C and D, are hereby deleted in their entirety and replaced with the following:
"A. Lessor is the owner of certain real property (the "Premises") described by Exhibit "A" attached hereto.

B. The Premises is presently vacant land. Its past usage is not known with certainty, but is believed to have been used in the past for agriculture (grape growing), and it is not in active use.

C. Lessee desire to lease the Premises from Lessor for purposes to provide parking to augment that available at adjacent Rancho Las Flores Park will be in the public interest and will be used for overflow parking for city events and construction staging." D. Lessor will not be liable or responsible for any damage or injury occurring on the Premises.

3.1 Term of Lease. Sections 4.1 and 4.2 of the Lease are hereby deleted in their entirety and replaced with the following:
80237.00021\5903920.1

Item 11.
"4.1 Original Term. The original term of the Lease shall be for a three (3) year period commencing on August 1, 2022 and terminating on July 31, 2025 (the "Original Term"). “4.2 Extension of Term. Following the expiration of the Original Term, unless and until Lessee or Lessor delivers a Notice of Termination in accordance with the definition and provisions below, the term of this Lease shall be extended for an additional three (3) year period, beginning on August 1, 2025 and expiring on July 31, 2028 (the "Extended Term")."

3.2 Rent. Section 5.2 of the Lease is hereby deleted in its entirety and replaced with the following:
"5.2 Extended Term Minimum Annual Rent. During the Term of this Lease, Lessee shall pay to Lessor as rent the sum of Six Thousand Dollars and No Cents ($6,000) for each year. The annual rent will be paid by the Lessee to the Lessor annually by December 15th starting December 15th, 2025 and continuing throughout the term of the amendment."

3.3 Continuing Effect of Agreement. Except as amended by this First Amendment, all provisions of the Lease shall remain unchanged and in full force and effect. From and after the date of this First Amendment, whenever the term "Lease" appears in the Lease, it shall mean the Lease as amended by this First Amendment.

3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this First Amendment.

3.5 Counterparts. This First Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
80237.00021\5903920,1

Item 11.

IN WITNESS WHEREOF, the parties have executed this First Amendment as of the date first written above.

LESSOR:

Troll Family Limited Partnership
___________________________________
Christina Ann-Troll Carlstrom
General Partner
LESSEE:

The City of Coachella
Approved by:
___________________________________
William B. Pattison Jr.

City Manager
Approved as to Form:

BEST, BEST & KRIEGER
___________________________________
City Attorney
Attest:
___________________________________
Angela M. Zepeda
City Clerk

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Item 11.

STAFF REPORT
7/23/2025
TO: Honorable Mayor and City Council Members
FROM: Castulo Estrada, Utilities Director
SUBJECT: Authorization to file a Notice of Completion for City Project No. S-18, Tyler Street Sewer Improvements
STAFF RECOMMENDATION:

Accept the City Project No. S-18, Tyler Street Sewer Improvements as complete and direct the City Clerk to file a Notice of Completion attached hereto with the County of Riverside.

BACKGROUND:

On December 11, 2024, the City of Coachella acted to authorize the City Manager to execute a construction contract with The Van Dyke Corporation in the amount of $1,119,244.00 for the construction of the Tyler Street Sewer Improvements, City Project No. S-18 and the approval of additional expenditures for a total request of $1,281,168.40.

City Staff has, in order to maximize funds and be as efficient as possible, requested public bids in accordance with City Standard and in compliance with the California Contract Code, with six companies submitting bids for this project. The Tyler Street Sewer Project upgraded the existing undersized 8-inch pipe to a 15-inch pipe.

DISCUSSION/ANALYSIS:

City Staff has inspected the Project and found the improvements to be in accordance with the plans, specifications, and applicable standards. Staff recommends the acceptance of this project and that the City Council authorizes the filing of a Notice of Completion. Upon acceptance by City Council, the Project will enter a one-year warranty period as prescribed by the project contract agreement.

FISCAL IMPACT:

City Council authorized $1,119,244.00 of the ARPA funding and $161,924.40 from the Sewer Connection Fund for construction contingency and other project management items for a total request of $1,281,168.40
The project had a Contract Change Order #1 in the amount $20,562.00. The project was constructed within budget including all quantities totaling $1,139,806.00.

Item 12.

To be recorded with County Recorder
within 10 days after completion and
Acceptance. No recording fee.

When Recorded, return to:

Delia Granados, Deputy City Clerk
City of Coachella
53990 Enterprise Way
Coachella, CA 92236 (For Recorders Use)
Notice of Completion
(California Civil Code Section 3093 - Public Works)
Notice is hereby given by the undersigned owner, a political subdivision of the State of California that a public work improvement described as Tyler Street Sewer Improvements, City Project No.S-18 has been completed and was accepted by the undersigned awarding authority on the date hereof. The project is located on Tyler Street between Avenue 53 and Avenue 54 within the City of Coachella.

The contractor on such work was The Van Dyke Corporation and the surety on his bond is Western Surety Company located at 27 Park Plaza, Suite 400 Irvine, CA 92614.

The real property upon which said work was performed is in the City of Coachella, County of Riverside, and State of California.

The nature of the interest of the owner is in fee.

Date: July 23, 2025 City of Coachella
(Date of Acceptance) (Name of Political Subdivision)
Owner Address:
53990 Enterprise Way
Coachella, CA 92236
By: ________________________________
Steven A. Hernandez
Title: _________Mayor_________
State of California) City of Coachella
) ss
County of Riverside)
I hereby certify that I am the Deputy City Clerk of the governing board of the City of Coachella, the political subdivision which executed the foregoing notice and on whose behalf I make this verification; that I have read said notice, know its contents, and that the same is true. I certify under penalty of perjury that the foregoing is true and correct.

Executed at Coachella , California on (Date)
(City Where Signed)
________________________________
Delia Granados, Deputy City Clerk, City of Coachella County Counsel Form 1 (Rev. 5-64)

Item 12.

Item 12.

STAFF REPORT
7/23/2025
TO: Honorable Mayor and City Council Members
FROM: Jaime Arroyo, Grants Manager
SUBJECT: Adopt Resolution No. 2025-42 Authorizing the City Manager to Execute a Grant Agreement with the California Department of Transportation (Caltrans) for its Sustainable Transportation Planning Grant in the Amount of $393,740 for the Cesar Chavez Street Corridor Transformation Plan STAFF RECOMMENDATION:

Staff recommends that the City Council consider adopting Resolution No. 2025-42 authorizing the City Manager to execute a grant agreement with the California Department of Transportation (Caltrans) for its Sustainable Transportation Planning Grant in the amount of $393,740 for the Cesar Chavez Street Corridor Transformation Plan.

BACKGROUND:

The Sustainable Transportation Planning Grant Program was created to support the California Department of Transportation’s (Caltrans) Mission: Provide a safe and reliable transportation network that serves all people and respects the environment.

The California Legislature passed, and Governor Edmund G. Brown Jr. signed into law, Senate Bill 1 (SB 1, Beall, Chapter 5, Statutes of 2017) – The Road Repair and Accountability Act of 2017, a transportation funding bill that provides a reliable fund source to maintain and integrate the State’s multimodal transportation system. In addition to the $9.5 million in traditional State and federal grants, approximately $25 million in SB 1 funds for Sustainable Communities Grants is available for each grant cycle.

On January 22, 2025, the City applied to the Sustainable Transportation Planning Grant to fund its Cesar Chavez Street Corridor Transformation Plan. On July 1, 2025, City staff was informed that the grant was awarded to the City in the amount of $393,740, with a required city match of $51,014.

DISCUSSION/ANALYSIS:

The City of Coachella proposed the Cesar Chavez Street Corridor Transformation Plan to

Item 13.
address critical transportation and land use challenges along the city’s most significant north-south corridor. Cesar Chavez Street is designed in a suburban, automobile-centric manner that discourages walking and bicycling, isolates neighborhoods, and contributes to high numbers of pedestrian- and bicycle-involved crashes. This project will create a comprehensive transformation plan that prioritizes safety, expands multimodal access, and fosters sustainable land use along the corridor.

The Plan will be developed in partnership with CivicWell and local nonprofit, Raices Cultura, emphasizing public engagement to ensure alignment with community needs. It will build upon the City’s Active Transportation Plan, recent ATP-funded projects and new affordable housing and transit-oriented infill development, and regional goals outlined in SCAG’s Connect SoCal 2020- 45 SCS/RTP to advance sustainable and equitable urban development.

The total project cost is $444,754. Below is a budget breakdown:

Grant Award Total Local Match % Local Match Total Project Cost $393,740 $51,014 11.47% $444,754
Conditions of Award are due to Caltrans by August 8, 2025.

ALTERNATIVES:

1. Adopt Resolution No. 2025-42 Authorizing the City Manager to Execute a Grant Agreement with the California Department of Transportation (Caltrans) for its Sustainable Transportation Planning Grant in the Amount of $393,740 for the Cesar Chavez Street Corridor Transformation Plan

2. Not Adopt Resolution No. 2025-42 Authorizing the City Manager to Execute a Grant Agreement with the California Department of Transportation (Caltrans) for its Sustainable Transportation Planning Grant in the Amount of $393,740 for the Cesar Chavez Street Corridor Transformation Plan
FISCAL IMPACT:

Adoption of Resolution No. 2025-42 will require the City to provide a local match of $51,014,

11.47% of the total project amount. This local match is recommended to be funded from the General Fund.

ATTACHMENTS:

1. Resolution No. 2025-42

Item 13.

RESOLUTION NO. 2025-42

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COACHELLA AUTHORIZING THE CITY MANAGER TO EXECUTE A

GRANT AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF

TRANSPORTATION (CALTRANS) FOR ITS SUSTAINABLE
TRANSPORTATION PLANNING GRANT IN THE AMOUNT OF $393,740

FOR THE CESAR CHAVEZ STREET CORRIDOR TRANSFORMATION
PLAN
WHEREAS, The Sustainable Transportation Planning Grant Program was created to support the California Department of Transportation’s (Caltrans) Mission: Provide a safe and reliable transportation network that serves all people and respects the environment; and WHEREAS, The State-funded Sustainable Communities grants are intended to support and implement Regional Transportation Plan (RTP) Sustainable Communities Strategies/Alternative Planning Strategies (SCS/APS) (where applicable) and to ultimately achieve the State’s greenhouse gas (GHG) reduction target of 40 and 80 percent below 1990 levels by 2030 and 2050; and
WHEREAS, the City of Coachella submitted an application and was awarded $393,740 for its Cesar Chavez Street Corridor Transformation Plan project to address critical transportation and land use challenges along the city’s most significant north-south corridor; and WHEREAS, a Restricted Grant Agreement is needed to be executed with Caltrans before such funds can be allocated through the Sustainable Transportation Planning Grant Program; and
WHEREAS, the acceptance of this grant will enable the City to advance its efforts in creating a comprehensive transformation plan that prioritizes safety, expands multimodal access, and fosters sustainable land use along the corridor.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COACHELLA, CALIFORNIA, AS FOLLOWS:

SECTION 1: The City Manager is hereby authorized to execute a Grant agreement for grant funds for the purpose of obtaining financial assistance provided by Caltrans.

SECTION 2: The City of Coachella hereby agrees to comply with each and all of the terms, conditions, and limitations imposed by the Grantor upon said Grant, and the City Manager is hereby authorized and directed to execute any agreements, assurance, extensions, amendments or other documents as may be necessary in connection with acceptance and implementation of said Grant as may be required by the Grantor.

Item 13.

Resolution No. 2025-42

PASSED, APPROVED and ADOPTED this 23rd day of July, 2025. ___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER
___________________________________
Ryan Guiboa
City Attorney

Item 13.

Resolution No. 2025-42

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2025-42 was duly adopted by the City Council of the City of Coachella at its regularly scheduled meeting, held on the 23rd day of July, 2025, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk

Item 13.

STAFF REPORT
7/23/2025
TO: Honorable Mayor and City Council Members
FROM: Celina Jimenez, Director of Economic Development
SUBJECT: Approve a Voluntary Collection Agreement with HomeAway.com, Inc. and its Subsidiaries for the Collection and Remittance of the City of Coachella’s Transient Occupancy Tax and the Greater Palm Springs Tourism Business Improvement District Assessment Due From Homeowners and Guests Booking Short-Term Rentals in Coachella Through the HomeAway/VRBO Platform and Authorize the City Manager to Execute the Agreement
STAFF RECOMMENDATION:

Staff recommends that the City Council approve a Voluntary Collection Agreement with HomeAway.com, Inc. and its subsidiaries [a.k.a. VRBO] for the collection and remittance of the City of Coachella’s Transient Occupancy Tax and the Greater Palm Springs Tourism Business Improvement District Assessment due from homeowners and guests booking short-term rentals in Coachella through the HomeAway/VRBO platform and authorize the City Manager to execute the agreement.

BACKGROUND:

HomeAway and its subsidiaries operate an internet-based platform that allows homeowners to advertise the availability of and book their properties to travelers seeking short-term rental accommodations through VRBO.com and localized VRBO websites operating worldwide, or the HomeAway Platform.

Pursuant to Ballot Measure Y, which Coachella voters approved at the November 5, 2024 General Municipal Election, the City currently has a 13% transient occupancy tax on hotel, motel, shortterm/vacation rental and similar stays. The tax is primarily the guest’s responsibility, but is traditionally collected by the hotel, motel or short-term/vacation rental operator at time of billing the guest.

On April 4, 2025, the Joint Powers Authority Executive Committee of Visit Greater Palm Springs approved a resolution to include the City of Coachella within the Greater Palm Springs Tourism Business Improvement District (GPSTBID). The GPSTBID imposes an annual assessment on lodging businesses within its boundaries to fund improvements, programs and activities that promote tourism in Palm Springs and the Coachella Valley. The annual assessment rate is three percent (3%) of gross short-term room rental revenue of all lodging businesses with fifty (50)

Item 14.
rooms or more, and one percent (1%) of gross short-term room rental revenue of all shortterm/vacation rentals. The 1% assessment on short-term/vacation rentals began to apply in Coachella on July 1, 2025.

Therefore, guests staying at short-term/vacation rentals in Coachella are subject to a combined 13% levy on the stay (12% in TOT tax and 1% in TBID assessment).

DISCUSSION/ANALYSIS:

For short-term/vacation rentals booked through an online platform, the platform typically collects charges for occupancy from the customer/guest and is, therefore, in the best position to collect any City taxes and assessments due from the transaction. To that end, the City and HomeAway have negotiated the attached Voluntary Collection Agreement to facilitate HomeAway’s collection and remitting of TOT taxes and the TBID assessments, consistent with Chapter 4.28 of the City’s Municipal Code (as updated by Measure Y). Under the Agreement, HomeAway will commence tax and assessment collection on September 1, 2025.

HomeAway will remit TOT taxes and TBID assessments to the City and report aggregate information in the form of a monthly return on the City’s TOT return form. As of June 1, 2025, the City has 390 active TOT Certificates for short-term/vacation rental operators. The Taxes will be collected based upon the entire amount charged to the guest in connection with the Booking Transaction, including but not limited to the following fees charged by a Homeowner or HomeAway: rental fee, Traveler Service Fee charged by HomeAway, booking fee, cleaning fee, property damage fee, and any other use-related fee under Chapter 4.28 of the Municipal Code; but excluding refundable damage deposits.

FISCAL IMPACT
A detailed funding analysis obtained from Deckard, the City’s short-term vacation rental platform showed Host Revenue to be $7,675,455 as of May, 2025 for the 390 properties. Twelve percent of that amount in TOT tax would be $921,054.60. One percent (1%) of that amount in TBID assessments would be $76,754.55. Given that the TOT now applies to all charges to the guest (including online booking and service fees) due to Measure Y, additional TOT revenue is anticipated. These projections will change and increase once the City goes through one full cycle of TOT at the rate of 12%, plus the 1% TBID tax.

ATTACHMENTS:

1. HomeAway Voluntary Collection Agreement

Item 14.

SGR/80300191.1

VOLUNTARY COLLECTION AGREEMENT
THIS VOLUNTARY COLLECTION AGREEMENT ("Agreement") is dated ______, 2025 and is between HOMEAWAY.COM, INC., a Delaware corporation ("HomeAway"), and the City of Coachella, California (“City”). Each party may be referred to individually as a "Party" and collectively as the "Parties.”
HomeAway and its subsidiaries operate an internet-based platform that allows homeowners of short-term/vacation rentals ("Homeowners") to advertise the availability of their properties to travelers ("Guests") seeking accommodations through Vrbo.com and localized Vrbo websites operating worldwide (“HomeAway Platform”).

HomeAway and the City enter into this Agreement voluntarily in order to facilitate the collection and remittance of the City’s Transient Occupancy Tax imposed under Chapter 4.28 of the City’s Municipal Code (the “Code”) and the Greater Palm Springs Tourism Business Improvement District Assessment (collectively, the “Taxes”) upon Homeowners and Guests on the HomeAway Platform for occupancy of short-term/vacation rental accommodations located in the City of Coachella in accordance with this Agreement as follows:

1. With respect to any transaction between a Homeowner and a Guest booked on and for which payment is completed on the HomeAway Platform for accommodations for which the Taxes are due (“Booking Transaction”), and during the period in which this Agreement is in effect (as defined below), and pursuant to the terms and conditions of this Agreement, HomeAway agrees to collect and remit the Taxes.

2. The Taxes shall be collected and remitted at the applicable City rates by HomeAway based upon the entire amount charged to the Guest in connection with the Booking Transaction, including but not limited to the following fees charged by a Homeowner or HomeAway to a Guest: rental fee, Traveler Service Fee (“TSF”), booking fee, cleaning fee, property damage fee, and any other rent/fee charged to the Guest for the booking, reservation or actual transient occupancy of the short-term/vacation rental as identified in Chapter 4.28 of the Code; but excluding refundable deposits. HomeAway shall file returns on the form and by the due dates described in the Code or as agreed between the parties in writing. For the avoidance of doubt, it is understood and agreed by the Parties, that HomeAway will file returns and remit any Taxes collected, based on the date the stay commences and not the date of the booking transaction.

3. HomeAway agrees to commence collecting the Taxes starting on September 1, 2025 (the "Effective Date") and remitting any Taxes collected in accordance with Paragraph 2. For the avoidance of doubt, this Agreement to collect shall not extend to any period or transaction booked prior to the Effective Date or after the termination of this Agreement, or to any user's transaction completed through any means, method or platform other than the HomeAway Platform.

4. The City agrees to confirm its jurisdictional boundaries with HomeAway’s third-party tax content provider within 90-days of the Effective Date. The content provider is Vertex and

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2 SGR/80300191.1
boundaries can be verified by emailing [email protected]. If the City fails to confirm the boundaries, the City agrees to accept the boundaries as determined by HomeAway.

5. On a prospective basis upon the Effective Date of this Agreement, and during any period in which this Agreement is in effect, in accordance with Chapter 4.28 of the Code and the terms of this Agreement, HomeAway agrees to assume liability for any failure to report, collect, and/or remit the correct amount of the Taxes for any Booking Transaction, including, but not limited to, penalties and interest, lawfully and properly imposed in compliance with law. Nothing contained herein nor any action taken pursuant to this Agreement, including but not limited to the collection or remittance of the Taxes, shall impair, restrict, or prevent HomeAway from asserting that any Taxes and/or penalties, interest, fines, or other amounts assessed against it were not due or are the subject of a claim for refund under applicable law, or from enforcing any and all rights accorded to it pursuant to law. Other than its obligation to facilitate the collection and remittance of the Tax under Chapter 4.28 of the Code and its agreement to assume liability for any failure to report, collect, and/or remit the correct amount of the Tax for any Booking Transaction pursuant to the terms of this Agreement, HomeAway shall not be required to enforce any other terms or requirements of the City’s short-term rental ordinance codified in Chapter 5.80 of the Code imposed on the Homeowner and shall not assume any liability for any violations of such ordinance by any Homeowner.

6. During any period in which this Agreement is in effect, and without waiving any audit rights provided to the City, with respect to any transaction for which the Taxes are due and paid pursuant to this Agreement, the City agrees to audit HomeAway in the manner provided in the Code, except that: (a) HomeAway will not be required on the basis of this Agreement to disclose the Homeowner or Guest name at issue except pursuant to a lawfully issued subpoena or other legal compulsion to produce said information; (b) the City shall not, directly or indirectly, audit any individual Guest or Homeowner relating to such transactions; and (c) if there are errors in the jurisdictional boundaries, HomeAway will provide the URL of the property listing after the City updates the boundaries with HomeAway’s third-party content provider in accordance with Paragraph 4. HomeAway will provide the property address associated with each Booking Transaction in response to a valid information document request formally issued by the City as part of an audit of HomeAway’s books and records pursuant to Chapter 4.28 of the Code. The City shall complete any audit of HomeAway’s books and records within the time period permitted under the applicable statute of limitations, including any waivers mutually agreed to by HomeAway and the City. Nothing in this paragraph prevents the City from auditing an individual who (or entity that) happens to be a Homeowner based upon transactions that the City learns of independently.

7. Upon the City’s request in connection with an audit, HomeAway shall submit all applicable transaction data based on reservation ID, or other type of transaction ID, as maintained by HomeAway in its ordinary course of business. The Parties agree that HomeAway is not required, on the basis of this Agreement, to produce any Homeowner or Guest name relating to any transaction in connection with an audit or otherwise, except pursuant to a lawfully issued subpoena or other legal compulsion to produce said information.

8. During any period in which this Agreement is in effect, and on the condition that HomeAway is in compliance with its obligations under this Agreement, and solely with respect to

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3 SGR/80300191.1
Booking Transactions, said Homeowner shall not be required to individually collect, remit and report the Taxes. However, nothing in this Agreement shall relieve Guests or Homeowners from any responsibilities with respect to the Taxes, including, without limitation, any obligation to collect, remit, and report the Taxes for transactions completed through any other means, method, device, or platform, or restrict the City from investigating or enforcing any provision of applicable law against any such person or entity for any occupancy arranged directly or indirectly through any other means.

9. The City agrees, for the purpose of facilitating this Agreement, that it shall not make any assessment, supplemental assessment, or claim for the Taxes as to HomeAway for any period prior to the Effective Date of this Agreement; and it releases and discharges any claims against HomeAway (and its present or former: successors, direct or indirect members, parents, subsidiaries, affiliates, agents, legal representatives, insurers, employees, officers, directors and shareholders) from any and all past, present, or future assessments, causes of action, claims, demands, expenses, damages, or losses, of whatever kind or nature, known or unknown, asserted or unasserted, in law or equity, whether statutory or common law, which existed, accrued, or arose related to the Taxes for the period preceding the Effective Date of this Agreement. This waiver and release as to HomeAway shall not prevent the City from pursuing any assessment, supplemental assessment, or claim for the Taxes directly against a Homeowner or Guest for any period prior to the Effective Date of this Agreement.

10. Any and all tax returns, data, records, documents or information, including property address information, provided to the City in connection with this Agreement, including but not limited to any audit, shall be deemed confidential and shall not be shared with any third party, except as required by applicable law and shall not be used for any purpose other than for enforcement of the Taxes.

11. This Agreement is solely for the purpose of facilitating the administration and collection of the Taxes due for Booking Transactions. It is expressly understood and agreed by the Parties that neither Party has made any concessions regarding the merits of its respective positions nor the merits of the other Party’s positions with respect to the collection of the Taxes addressed in this Agreement.

12. The City agrees to work with HomeAway to answer any questions received from Homeowners and the public about HomeAway’s tax collection and remittance process under this Agreement. If requested by the City, HomeAway will provide information to the City to be used by the City to answer questions from Homeowners, travelers and others.

13. No modification of this Agreement shall be effective unless in writing and signed by both parties.

14. This Agreement may be terminated by HomeAway or the City upon 30 days’ written notification to the other Party. Any termination under this Paragraph shall not affect the duty of HomeAway to remit to the City any Taxes collected from Guests up through and including the effective date of termination of this Agreement, even if not remitted by HomeAway to the City as of the date of termination.

Item 14.
4 SGR/80300191.1

15. This Agreement, its construction and any and all disputes arising out of or relating to it, shall be interpreted in accordance with the substantive laws of the State of California without regard to its conflict of law principles.

16. This Agreement contains the entire agreement of the Parties with respect to the subject matter of this Agreement, and supersedes all prior negotiations, agreements, and understandings with respect thereto.

17. This Agreement is not binding until executed by HomeAway and the City. The Parties represent and warrant that they each have the legal authority to enter this Agreement, that the person executing the Agreement on behalf of either Party is authorized to do so, and that the Agreement shall be binding and enforceable when duly executed and delivered by each Party.

18. This Agreement is executed in two (2) counterparts, each of which shall be deemed an original, and all counterparts individually or together shall constitute one and the same Agreement.

Further, the reproduction of an original signature by electronic means shall be deemed to be an original signature.

19. This Agreement has been jointly prepared by the Parties hereto, and shall not be construed more strictly against either Party.

20. The Parties agree that each shall, to the maximum extent permitted by law, treat as confidential all information furnished to it by the other Party under this Agreement; provided, however, that a Party may disclose the confidential information of the other Party to those of its employees, consultants (including professional advisers) and affiliates that require access to such confidential information in order to permit such Party to exercise its rights and perform its obligations hereunder. Further, nothing in this Agreement shall prevent the disclosure by a Party or its employees, contractors, or affiliates of an item of confidential information that is made public by the disclosing party or as may be required by applicable law or released from confidential treatment by written consent of the disclosing Party.

21. Neither Party may assign any of its rights or obligations hereunder, whether by operation of law or otherwise, without the prior written consent of the other Party which consent shall not be unreasonably withheld. Notwithstanding the foregoing, HomeAway may assign this Agreement in its entirety without the City’s consent in connection with a merger, acquisition, corporate reorganization, or sale of all or substantially all of its assets provided the assignee has agreed to be bound by all of the terms of this Agreement and all Taxes and all other sums due at the time of the attempted assignment have been paid in full. Any attempt by a Party to assign its rights or obligations under this Agreement in breach of this section shall be void and of no effect. Subject to the foregoing, this Agreement shall bind and inure to the benefit of the Parties, their respective successors, and permitted assigns.

22. All notices under this Agreement shall be in writing and shall be deemed to have been given upon: (i) personal delivery; (ii) the third business day after first class mailing, postage prepaid; or (iii) the second business day after sending by overnight mail, by facsimile with telephonic confirmation of receipt, or by email. Notices shall be addressed to the attention of the

Item 14.
5 SGR/80300191.1
following persons, provided each Party may modify the authorized recipients by providing written notice to the other Party:

To HomeAway: HomeAway.com, Inc.

Attn: Legal Department
1111 Expedia Group Way West
Seattle, WA 98119
Email: [email protected]
To the City: City of Coachella
Attn: Bill Pattison, City Manager
53990 Enterprise Way
Coachella, CA 92236
Email: [email protected]

CITY OF COACHELLA, CALIFORNIA
Approved as to Form:
________________________
Ryan Guiboa, City Attorney
Best Best & Krieger LLP
By:

William B. Pattison, City Manager
___________ day of _________________, 2025
HOMEAWAY.COM, INC., a Delaware
corporation
By:

Stephanie Gilfeather
__________ day of __________________, 2025

Item 14.

TO: Honorable Mayor and City Council
FROM: Yolanda Lopez, Human Resources Department
SUBJECT: Disclosure of Cost of Granting Two Years Additional Service Credit Pursuant to Government Code Section 20903 as Required by Government Code Section 7507; Certification of Compliance with Government Code Section 7507; Certification of Compliance with Government Code Section 20903.

STAFF RECOMMENDATION
Staff recommends that the City Council consider taking the following actions in the order listed:

1. Announce cost associated with granting two years of additional service credit for local miscellaneous employees meeting the age and service credit requirements of Government Code section 20903 and the Public Employees’ Retirement Law, who retire during the designated period beginning on August 8, 2025 and ending on December 30, 2025.

2. Approve Certification of Compliance with Government Code section 7507, certifying that the City Council has made public the costs of granting two years additional service credit pursuant to Government Code section 20903.

3. Approve Certification of Compliance with Government Code section 20903, certifying that the City Council has satisfied the requirements of Government Code section 20903.

DISCUSSION/ANALYSIS
As part of the budget reduction strategy several years ago, the City Council amended the City’s contract with CalPERS to provide the optional benefit of additional service credit for two years for eligible employees who retire pursuant to Government Code Section 20903. The City adopted this Golden Handshake as a strategy to reduce the number of involuntary staff reductions. Since the contract between the City and CalPERS has been amended to provide this optional benefit, additional retirement window periods can be established by a resolution of the City Council without further need to amend the City’s CalPERS contract.

Specifically, Government Code section 20903 allows agencies, contracting with CalPERS to provide pension benefits to its employees, to provide two years additional service credit (“Golden Handshake”) to CalPERS members, employed in a City department or job classification identified by the City as eligible for the Golden Handshake, who retire during a designated period specified by the City due to impending mandatory transfers, layoffs or

STAFF REPORT
July 23, 2025

Item 15.
demotions, and who are at least 50 years old if classic or 52 years old if PEPRA, have at least 5 years of service credit and are in employed status with the City for at least 1 day during the designated period. Applying this criteria, the City has determined that there are 16 miscellaneous City employees that are eligible for the Golden Handshake. Vacancies created by retirements under Section 20903 or at least one vacancy in any position in any department or organizational unit must remain permanently unfilled resulting in an overall reduction in the work force.

By once again offering the Golden Handshake to eligible City employees, the City will have the opportunity to reduce staffing through voluntary retirements. City staff have identified a total of 16 employees that meet the minimum eligibility for retirement as set forth in Section 20903. Therefore, it is recommended that an additional window period for the Golden Handshake be offered to all eligible City employees who retire between August 8, 2025 and December 30, 2025 (“Designated Period”). Note that to be eligible for the Golden Handshake, an employee must be employed at the time that the Designated Period opens. Therefore, to be eligible, employees must retire after August 8, 2025 but no later than December 30, 2025.

Since the City has already amended its CalPERS contract to provide for the implementation of Section 20903, fewer steps are required to open an additional window period.

The first step is the disclosure of costs. Government Code sections 7507 and 20903 require that the added cost to the retirement fund for all eligible employees who retire during the Designated Period be disclosed at a public meeting at least two weeks prior to the adoption of the Resolution to Grant Another Designated Period for Two Years Additional Service Credit (“Resolution”).

This disclosure is included in this agenda item. Certification of the City’s compliance with Government Code Section 7507 must be made by the City Clerk. By City Council action approving staff’s recommendation, the City Clerk will be authorized to sign the required Certification of Compliance with Government Code Section 7507, provided as Attachment 4 and incorporated herein by reference.

Further, as part of the City Council’s action to provide this additional Designated Period, the City Council is required to certify that: (i) the best interests of the City will be served by granting the additional service credit; (ii) the added cost of the benefit will be included in the City’s employer contribution rate for the 2027/2028 fiscal year (iii) the additional service credit is being made available in an effort to avoid mandatory transfers, demotions and layoffs that constitute at least 1 percent of the City’s work force; and (iv) it is the City’s intention that at least one vacancy in any position in any department remain permanently unfilled thereby resulting in an overall reduction in the work force. By City Council action approving staff’s recommendation, the Mayor will be authorized to sign the required Certification of Compliance with Government Code Section 20903, provided as Attachment 5 and incorporated herein by reference.

The second step involves the adoption of the Resolution. The adoption must take place at least two weeks after the date that the disclosure of costs occurs. The adoption is expected to occur on August 6, 2025. The final step will entail the submission of the original or a certified copy of the Resolution, Certification of Governing Body’s Action with respect to the adoption of the Resolution, Certification of Compliance with Government Code Section 7507 and

Item 15.

Certification of Compliance with Government Code Section 20903 to CalPERS immediately after the adoption of the Resolution.

FISCAL IMPACT
Government Code section 7507 requires that the cost to provide the Golden Handshake be disclosed at a public meeting at least two weeks prior to the adoption of the Resolution. The City Council satisfies this requirement by making the cost analysis for granting the Golden Handshake prepared by CalPERS public. Accordingly, included with this report are the following actuarial valuation reports prepared by CalPERS:
 Miscellaneous Plan of the City of Coachella City (12 eligible employees)  Miscellaneous Second Tier Plan of the City of Coachella City (2 eligible employees)  New PEPRA Miscellaneous Plan of the City of Coachella City (2 eligible employees) The actual cost of this benefit will depend on the number of employees who take the Golden Handshake. The cost of the two years additional service credit will be included in the City’s CalPERS employer contribution rate commencing with the fiscal year starting two years after the end of the Designated Period, the 2027/2028 fiscal year, and will be amortized over a 5 year period. In accordance with Government Code section 7507, the cost analysis for each plan is provided at Attachments 1-3, and incorporated herein by reference.

The estimated savings in salaries and benefits is approximately $250,000 per year over a five year period, for a total savings of approximately $1,250,000. The foregoing estimate assumes that 3 eligible employees will elect to retire and that at least one of the positions left vacant will be eliminated.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION
Should the City Council not take the action recommended, the City will not be able to move forward with the adoption of the Resolution on August 6, 2025, to grant an additional designated period during which two years additional service credit would be offered to eligible employees meeting the age and service credit requirements if they elect to retire during such period.

ATTACHMENTS:

1. Miscellaneous Plan of the City of Coachella City

2. Miscellaneous Second Tier Plan of the City of Coachella City

3. New PEPRA Miscellaneous Plan of the City of Coachella City

4. Certification of Compliance with Government Code Section 7507

5. Certification of Compliance with Government Code Section 20903

Item 15.

California Public Employees’ Retirement System
Actuarial Office
P.O. Box 942709
Sacramento, CA 94229-2709
TTY: (916) 795-3240
(888) 225-7377 phone • (916) 795-2744 fax
www.calpers.ca.gov
June 18, 2025
CalPERS ID: 6373819375
Employer Name: City of Coachella City
Plan Name: Miscellaneous Plan of the City of Coachella City Rate Plan ID: 857
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member Dear Requestor:

A cost analysis for granting two years of additional service to designated members (Golden Handshake) and related information is enclosed. This actuarial valuation report reflects the following proposed benefit provision changes:

Additional two years of service for designated members - Golden Handshake The employer has provided CalPERS with a list of members to include in this cost analysis.

Number of eligible members* 12
Average Pay $81,703
Average Service 20.38
Average Age 53.45
*Members hired on or after July 1, 2023 are not included in the valuation California Government Code section 20903 allows an agency to provide its employees, who retire during a designated period, two years of additional service credit. Before an agency may adopt the Golden Handshake resolution, the governing body must certify that it intends to keep some of the resulting vacancies permanently unfilled and reduce the workforce. The provision permits agencies to reduce staff and provide immediate payroll savings by offering a retirement incentive for eligible employees.

The estimated total increase in retirement benefit costs and analysis regarding estimated changes in required employer contribution rates are provided in the attached cost analysis, which is intended to satisfy Government Code section 7507(b). In order to satisfy section 7507(c), the employer must make this report public at a public meeting at least two weeks prior to adopting the Golden Handshake. This subsection may also require an actuary to be present at the meeting at which the Golden Handshake is adopted to provide information as needed.

Important Risk Disclosure
• The Nature of Actuarial Work: All actuarial calculations, including the ones in this cost estimate, are based on numerous assumptions about the future. This includes demographic assumptions about the percentage of your employees that will terminate, die, become disabled, and retire in each future year, and economic assumptions, about what salary increases each employee receives and the most important assumption, what the assets at CalPERS will earn for each year into the future until the last dollar is paid to current members of your plan. While CalPERS has set these assumptions as our best estimate of the future, it must be understood that these assumptions are very long-term predictors and will not be realized each year as we go forward.

This means that your required employer contributions can vary with or without any benefit changes because short term experience does not conform to the long-term actuarial assumptions.

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
June 18, 2025 Page | 2
• Change in Actuarial Assumptions: On November 17, 2021, the CalPERS Board of Administration (board) adopted new actuarial assumptions based on the recommendations in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases and inflation assumptions for public agencies.

These new assumptions are incorporated in this actuarial valuation. In addition, the board adopted a new strategic asset allocation as part of its Asset Liability Management process. The new asset allocation along with the new capital market assumptions and economic assumptions support a discount rate of 6.80%. This includes a reduction in the price inflation assumption from 2.50% to 2.30%. • Investment return is much more volatile than liability fluctuations and can cause employer rates to vary significantly. For example, for the past twenty-year period ending June 30, 2023, returns for each fiscal year ranged from -23.6% to +21.3%. The impact of investment return on employer contribution rates varies significantly based on the plan’s volatility ratio (the ratio of the market value of assets to the payroll). • The risks associated with whether actual future measurements differ significantly from expected future measurements are disclosed in this report. These risk disclosures are important and should be reviewed.

If you have questions about the cost analysis, please call (888) CalPERS (225-7377). Please ask to speak to a contract analyst for questions about the contract. Please ask to speak to the signing actuary below for questions about this cost analysis.

Kurt Schneider, MPA, ASA, EA, MAAA
Supervising Actuary, CalPERS
Enclosures

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Estimated Cost/Savings of Golden Handshake
A Golden Handshake program generally results in increased retirement benefit costs but lower payroll and ancillary benefit costs (at least for some period of time). An appropriate method for determining the ultimate cost / savings of such a program is to compare the estimated increase in retirement benefit costs to the estimated payroll and ancillary benefit savings. There is generally no way to know which of the eligible members will retire under the program. All “post-change” results provided in this report assume all eligible members will retire. If some eligible employees choose to continue working, the cost will be different. However, it is not necessarily true that if 80% of eligible members choose to retire, the cost will be 80% of the results shown in this report. The cost of the additional service varies by individuals, and those for whom it has a higher value may be more likely to elect to take advantage, meaning that the cost for the 80% that elect to retire could be more than 80% of the cost if all members elect to retire.

The ultimate cost/savings will also depend heavily on the extent to which members who retire under the program are replaced or not replaced. Both the increase in retirement benefit costs and the decrease in payroll/ancillary benefits depend on this.

Adoption of the proposed Golden Handshake would affect the cost of retirement benefits provided in this plan in two ways:

1. Increase in Past Service Cost –this is the current value of the improved benefit for all past service of eligible members, expressed as a lump-sum dollar amount. According to CalPERS policy, a new Unfunded Accrued Liability base is established in the amount of the past service cost increase for the Golden Handshake program and amortized over 5 years.

2. Decrease in Normal Cost –employer normal costs for remaining active members will be unaffected by the Golden Handshake program. However, to the extent members who retire under the program are not replaced, total required employer normal cost payments will be reduced.

This report provides estimates of the increase in retirement benefit costs but does not provide estimated payroll/ancillary benefit savings. For a full picture of the financial impact of this program, payroll and ancillary benefit costs should be estimated and compared to the retirement benefit costs provided in this report.

Present Value of Projected Benefits
The table below shows the change in the plan’s total present value of benefits for the proposed plan change. The present value of benefits represents the total dollars needed today to fund all future benefits for current members of the plan (i.e., without regard to future employees).

Also provided in the table is the present value of future member contributions for members assumed to retire under the Golden Handshake program. Without the program, these member contributions would be expected to be paid to the plan. If the retiring members are not replaced, these member contributions will not be contributed to the plan.

The change in the present value of benefits due to the Golden Handshake program plus “lost”member contributions is an estimate of the total retirement benefit cost of the program if retiring members are not replaced.

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Estimated Cost of Golden Handshake Benefits if No Replacement of Employees Total Present Value of Projected Benefits (PVB) from June 30, 2023 Valuation $60,562,043 As of Assumed Program Effective Date
(1/1/2025)
Pre-Change Post-Change
PVB for Eligible Members $9,426,662 $9,444,994
Change to PVB $18,332
Present Value of Future Member Contributions for
eligible members $374,366 $0
Reduction in Future Member Contributions $374,366
Estimated Total Increase in Retirement Benefit Costs
(Assuming no replacement) * $392,698
* The Estimated Total Increase in Retirement Benefit Costs shown in the table above assumes that all employees eligible for retirement elect to retire under the Golden Handshake program. For certain eligible members, the present value of future benefits decreases as a result of immediate retirement under this program due either:

1. Forfeiture of the value of higher future service retirement benefits at later retirement dates.

2. An actuarial liability gain due to the early retirement benefit factor applied if the member has not yet reached the normal retirement age.

If eligible members meeting the above criteria are excluded from the valuation, the estimated increase to the PVB is $313,379, with reduction in future member contributions of $192,007. This would yield a total estimated increase in retirement benefit costs of $505,386.

As discussed in the Important Risk Disclosure in the cover letter, actual cost in the future will differ from our estimates due to experience deviating from the long-term actuarial assumptions on which the estimates are based.

Accrued Liability
The plan’s Accrued Liability is the portion of the Present Value of Projected Benefits attributable to past service. A plan with assets exactly equal to the plan’s accrued liability is “on schedule” in funding that plan. A plan with assets below the accrued liability is “behind schedule”, or is said to have an unfunded liability, and must temporarily increase contributions to get back on schedule. Of course, events such as plan changes and investment or demographic gains or losses can change a plan’s condition from year to year.

The increase in the plan’s accrued liability due to the Golden Handshake program determines the increase in unfunded liability that is amortized over a 5-year period which increases required annual employer contributions.

The table that follows shows the accrued liability (AL), unfunded accrued liability, funded status for the plan as of the most recent valuation date, and the changes in the accrued liability due to the Golden Handshake program as of the assumed effective date of the program.

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Estimated Cost of Golden Handshake Benefits if all Employees Replaced Total Entry Age Accrued Liability (AL) from June 30, 2023 Valuation $56,108,924 Market Value of Assets (MVA) as of June 30, 2023 $51,270,796 Unfunded Liability/(Excess Assets) (UAL = AL –MVA) as of June 30, 2023 $4,838,128 Funded Status (MVA / AL) as of June 30, 2023 94.4%
As of Assumed Program Effective Date
(1/1/2025)
Pre-Change Post-Change
Entry Age Accrued Liability for Eligible Members $8,328,530 $9,444,994 Change to Entry Age Accrued Liability $1,116,464
Estimated Total Increase in Retirement Benefit Costs
(if all employees replaced) $1,116,464
For a Golden Handshake program, the increase in accrued liability is typically greater than the increase in the present value of projected benefits. The difference is the value of normal costs that would have been charged for the retiring members between the valuation date and their projected retirement date (without the Golden Handshake program).

If these retiring members are replaced (resulting in these normal costs being accrued by replacement members), a more appropriate estimate of the total increase in retirement benefit costs attributable to the Golden Handshake program is the increase in accrued liability shown above. For certain eligible members, the accrued liability decreases as a result of retirement under this program due to the value of future retirement benefit factor increases that they forfeit if they accept the Golden Handshake. If the Golden Handshake is declined by these members, the change to the Entry Age Accrued liability could be approximately $1,116,464 rather than the $1,116,464 shown above.

Estimated Impact on Future Employer Contributions
The previous sections of this report provide information regarding the estimated total cost of additional retirement benefits under the proposed Golden Handshake program. Estimating this cost is important so that it can be compared against estimated savings due to payroll and other ancillary benefits. However, the estimate of the total cost of additional retirement benefits does not by itself indicate how year-by-year future contribution requirements will be impacted. The purpose of this section is to discuss how the expected cost of the program is spread over future contribution requirements.

CalPERS policy provides that the change in unfunded liability due to a Golden Handshake program will be separately amortized over a period of 5 years and all other components of the plan’s unfunded liability/excess assets will continue to be amortized separately. Future employer normal costs are expected to be lower provided at least some of the retiring members are not replaced.

Normal Cost for Fiscal Year 2025-26
The employer normal cost rate determined in the June 30, 2023 actuarial valuation, and applicable to fiscal year 2025- 26, is unaffected by the Golden Handshake program. However, if member payroll for that year is reduced due to this program, this normal cost rate will be applied to lower payroll which will result in lower normal cost dollars paid during that year. The reduction in fiscal year 2025-26 employer normal cost can be estimated by multiplying the plan’s currentemployer normal cost rate by the estimated decrease in payroll due to this program.

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Normal Cost for Fiscal Year 2026-27 and Beyond
The employer normal cost rate that will be determined in the June 30, 2024 actuarial valuation (applicable to the 2026- 27 fiscal year) will also be unaffected by this Golden Handshake program as all eligible members will be retiring after that date. An estimate for the employer normal cost reduction in fiscal year 2026-27 can be determined by multiplying the plan’s current employer normal cost rate by the estimated decrease in payroll due to this program in fiscal year 2026-27. The employer normal cost rate is provided in the table below. This estimate of the decrease in the employer normal cost reduction also applies to future fiscal years.

Employer Normal Cost Based on June 30, 2023 Actuarial Valuation Employer Normal Cost Rates (FY 2025 –26)
Miscellaneous Plan 17.39%
Employer Normal Costs are made as a percentage of payroll. Future employer normal cost contribution reductions can be estimated using the procedures described in the text above.

Note –individual member normal cost rates are not impacted by the Golden Handshake program.

Increase to Future Required Employer UAL Contributions Pre-Change Post-Change Increase to Required Employer Unfunded Accrued
Liability Payments beginning July 1, 2027
(level dollar payment persists for 5 years)
$0 $308,925
Increase to Required Employer Unfunded Accrued
Liability Payments if only members with an increased
accrued liability elect to retire under the Golden
Handshake program beginning July 1, 2027 (level dollar
payment persists for 5 years)
$308,925

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Additional Risk Disclosures
With the adoption of the Actuarial Standards of Practice Number 51 (ASOP 51), there is an increase in the amounts of disclosures about the risk associated with pension plans. These risks are shown in both the annual valuation report, as well as this cost analysis report. The following are some risk disclosures that your actuary feels you should be aware of before adopting the Golden Handshake.

The actuarial calculations supplied in this communication are based on a number of assumptions about very long-term demographic and economic behavior. Unless these assumptions (terminations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year to year differences between actual experience and the assumptions are called actuarial gains and losses and serve to raise or lower the employer’s required contributions from year to year. As a result, the required contributions will fluctuate, especially due to the unpredictability of investment returns.

Provided on the following pages are several measures to help your agency understand the risks associated with the proposed contract.

Specifically, these exhibits illustrate the risk associated with:
▪ The Plan’s Sensitivity to the Discount Rate, Mortality, and Inflation ▪ The Plan’s Maturity, and
▪ The Potential Costs for Terminating the Proposed Contract The risks analyzed here are not a comprehensive list but are instead the risks we believe to have the greatest impact on the additional retirement benefit costs due to the Golden Handshake program. There are other risks associated with the proposed contract not analyzed here that could impact the cost of the plan.

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2023, assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption. This type of analysis assesses the impact of a change in real rate of return assumption and the price inflation assumption independently.

Sensitivity to the Real Rate of Return Assumption
The following tables indicate the sensitivity of key valuation results, before and after the Golden Handshake, to changes in the assumed real rate of return. For this analysis, the inflation assumption was unchanged at 2.3%.

Sensitivity Analysis (Pre-Change)
As of June 30, 2023
1% Lower
Discount Rate
Current
Discount Rate
1% Higher
Discount Rate
Discount Rate 5.8% 6.8% 7.8%
a) Accrued Liability $63,450,121 $56,108,924 $50,018,540 b) Market Value of Assets $51,270,796 $51,270,796 $51,270,796 c) Unfunded Liability (Surplus) [(a) - (b)] $12,179,325 $4,838,128 ($1,252,256) d) Funded Ratio [(b) ÷ (a)] 80.8% 91.4% 102.5%
Sensitivity Analysis (Post-Change)
As of June 30, 2023
1% Lower
Discount Rate
Current
Discount Rate
1% Higher
Discount Rate
Discount Rate 5.8% 6.8% 7.8%
a) Accrued Liability $64,431,387 $57,120,475 $51,062,893 b) Market Value of Assets $51,270,796 $51,270,796 $51,270,796 c) Unfunded Liability (Surplus) [(a) - (b)] $13,160,591 $5,849,679 ($207,903) d) Funded Ratio [(b) ÷ (a)] 79.6% 89.8% 100.4%

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Sensitivity to the Price Inflation Assumption
The following tables indicate the sensitivity of key valuation results, before and after the Golden Handshake, to changes in the price inflation assumption. For this analysis, the real rate of return assumption was unchanged at 4.5%.

Sensitivity Analysis (Pre-Change)
As of June 30, 2023
1% Lower
Inflation Rate
Current
Inflation Rate
1% Higher
Inflation Rate
a) Accrued Liability $57,952,919 $56,108,924 $52,149,701 b) Market Value of Assets $51,270,796 $51,270,796 $51,270,796 c) Unfunded Liability (Surplus) [(a) - (b)] $6,682,123 $4,838,128 $878,905 d) Funded Ratio [(b) ÷ (a)] 88.5% 91.4% 98.3%
Sensitivity Analysis (Post-Change)
As of June 30, 2023
1% Lower
Inflation Rate
Current
Inflation Rate
1% Higher
Inflation Rate
a) Accrued Liability $59,047,283 $57,120,475 $53,034,945 b) Market Value of Assets $51,270,796 $51,270,796 $51,270,796 c) Unfunded Liability (Surplus) [(a) - (b)] $7,776,487 $5,849,679 $1,764,149 d) Funded Ratio [(b) ÷ (a)] 86.8% 89.8% 96.7%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2023 plan costs for eligible members under two different longevity scenarios, namely assuming a 10% increase or 10% decrease in the mortality rates adopted in 2021. This type of analysis assesses the impact of a change in the mortality assumption.

Sensitivity Analysis (Pre-Change)
As of June 30, 2023
10% Lower
Mortality Rates
Current
Mortality
10% Higher
Mortality Rates
a) Accrued Liability $57,202,071 $56,108,924 $55,101,527 b) Market Value of Assets $51,270,796 $51,270,796 $51,270,796 c) Unfunded Liability (Surplus) [(a) - (b)] $5,931,275 $4,838,128 $3,830,731 d) Funded Ratio [(b) ÷ (a)] 89.6% 91.4% 93.0%
Sensitivity Analysis (Post-Change)
As of June 30, 2023
10% Lower
Mortality Rates
Current
Mortality
10% Higher
Mortality Rates
a) Accrued Liability $58,201,961 $57,120,475 $56,123,155 b) Market Value of Assets $51,270,796 $51,270,796 $51,270,796 c) Unfunded Liability (Surplus) [(a) - (b)] $6,931,165 $5,849,679 $4,852,359 d) Funded Ratio [(b) ÷ (a)] 88.1% 89.8% 91.4%

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Maturity Measures
As pension plans mature, they become more sensitive to risks. Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions. Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans.

The following measures are for one rate plan only.

Ratio of Retiree Accrued Liability to
Total Accrued Liability Pre-Change Post-Change

1. Retired Accrued Liability $38,222,884 $46,465,514

2. Total Accrued Liability $56,108,924 $57,120,475

3. Ratio of Retiree AL to Total AL [(1) ÷ (2)] 0.68 0.81 Another way to look at the maturity level of CalPERS and its plans is to look at the ratio of actives to retirees. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures, and members retire, the ratio starts declining. A mature plan will often have a ratio near or below one.

Support Ratio Pre-Change Post-Change

1. Number of Actives 28 16

2. Number of Retirees 125 137

3. Support Ratio [(1) ÷ (2)] 0.22 0.12
In the tables above, the “post-change” results assume all eligible members retire under this program and are not replaced.

Volatility Ratios
Actuarial calculations are based on a number of assumptions about long-term demographic and economic behavior.

Unless these assumptions (terminations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.

The volatility in annual employer rates may be affected by this Golden Handshake due to changes in plan liabilities and payroll. Rate volatility can be measured by the ratio of plan assets to active member payroll. Higher asset to payroll ratios produce more volatile employer rates. To see this, consider two plans, one with assets that are 4 times active member payroll, and the other with assets that are 8 times active member payroll. In a given year, when assets rise or fall 10% above or below the actuarial assumption, the plan with a volatility index of 4 experiences a dollar gain or loss of 40% of payroll while the plan with a volatility index of 8 experiences a dollar gain or loss of 80% of payroll. If this gain or loss is spread over 20 years (and we oversimplify by ignoring interest on the gain or loss), then the first plan’s rate changes by 2% of pay while the second plan’s rate changes by 4% of pay.

It should also be noted that these ratios tend to stabilize as the plan matures. That is, all plans with no past service start their lives with zero assets and zero accrued liability –thus, asset to payroll ratio and liability to payroll ratios are equal to zero. However, as time goes by these ratios begin to rise and then tend to stabilize at some constant amount as the plan matures. Higher benefit levels and earlier expected retirements produce higher constant future ratios.

Asset Volatility Ratio (AVR)

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Plans that have higher asset-to-payroll ratios experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with an asset-to-payroll ratio of 8 may experience twice the contribution volatility due to investment return volatility than a plan with an asset-to-payroll ratio of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as the plan matures. When an agency increases benefits, the future liability changes, but assets do not. So, the AVR does not change immediately. However, as assets grow to equal the new accrued liability, the AVR will also grow. So, we also disclose the ratio of accrued liability to payroll below to show what the future AVR will become when the plan is 100% funded. The higher this ratio, the more volatile the future contribution rate will be.

Liability Volatility Ratio (LVR)
Plans that have higher liability-to-payroll ratios experience more volatile employer contributions (as a percentage of payroll) due to investment return and changes in liability. For example, a plan with a liability-to-payroll ratio of 8 is expected to have twice the contribution volatility of a plan with a liability-to-payroll ratio of 4. The liability volatility ratio is also shown in the table below. It should be noted that this ratio indicates a longer-term potential for contribution volatility. The asset volatility ratio, described above, will tend to move closer to the liability volatility ratio as the plan matures. With an increase in benefits, a plan is likely to see an increase in the Liability Volatility Ratio as more assets are needed to support the higher benefits that are to be paid out.

The table below contains these measures of potential future rate volatility. For this purpose, the “post-change” results assume all eligible members retire under this program and are not replaced.

Contribution Volatility As of June 30, 2023
(Pre-Change)
As of June 30, 2023
(Post-Change)

1. Market Value of Assets $51,270,796 $51,270,796

2. Payroll 2,431,800 $1,451,368

3. Asset Volatility Ratio (AVR) [(1) ÷ (2)] 21.1 35.3

4. Accrued Liability $56,108,924 $57,120,475

5. Liability Volatility Ratio (LVR) [(4) ÷ (2)] 23.1 39.4

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Funded Status - Termination Basis
The funded status on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2023. The plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For the termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees.

A more conservative investment policy and asset allocation strategy was adopted by the CalPERS Board of Administration (board) for the Terminated Agency Pool. The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while funding risk is limited. However, this asset allocation has a lower expected rate of return than the PERF and consequently, a lower discount rate is assumed. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.

The effective termination discount rate will depend on actual market rates of return for risk-free securities on the date of termination. As market discount rates are variable, the table below shows a range for the termination liability based on the lowest and highest interest rates observed during an approximate 19-month period from 12 months before the valuation date to 7 months after.

The following tables show the termination liabilities before and after the proposed Golden Handshake.

Pre-Change
Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $89,918,599 $66,941,136

2. Market Value of Assets (MVA) $51,270,796 $51,270,796

3. Unfunded Termination Liability [(1) –(2)] $38,647,803 $15,670,340

4. Funded Ratio [(2) ÷ (1)] 57.0% 76.6%
Post-Change
Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $92,541,900 $69,155,059

2. Market Value of Assets (MVA) $51,270,796 $51,270,796

3. Unfunded Termination Liability [(1) –(2)] $41,271,104 $17,884,263

4. Funded Ratio [(2) ÷ (1)] 55.4% 74.1%
1 The liabilities calculated above include a 5% mortality contingency load in accordance with board policy. 2 The current discount rate assumption used for termination valuations is a weighted average of the 10-year and 30-year U.S.

Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield was 4.06% on June 30, 2023.

In order to terminate the plan, you must first contact our Retirement Services Contract Unit to initiate a Resolution of Intentto terminate. The completed Resolution will allow the plan actuary to give you a preliminary termination valuation with a more up-to-date estimate of the plan liabilities. CalPERS advises you to consult with the plan actuary before beginning this process.

Item 15.

Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Additional Disclosure
Please note thatthe cost analysis provided in this document may not be relied upon after you receive your next annual valuation. If you have not taken action to adopt the Golden Handshake by this date, you must contact our office for an updated cost analysis, based on the new annual valuation.

The actuarial methodologies and plan benefit provisions are the same as those that may be found in the appendices of the June 30, 2023 annual report. The actuarial assumptions are those recommended to and adopted by the board in the 2021 CalPERS Experience Study and Review of Actuarial Assumptions, except that all decrements for Golden Handshake eligible members were removed for fiscal year 2023-24 and these members are assumed to retire in fiscal year 2024-25.

Actuarial Certification
This actuarial valuation for the proposed Golden Handshake is based on the participant, benefits, and asset data used in the June 30, 2023 annual valuation, with the benefits modified if necessary to reflect what is currently provided under your contract with CalPERS, and further modified to reflect the proposed Golden Handshake. The valuation has been restricted to those individuals designated by the employer and excludes those designees currently ineligible to retire based on CalPERS data. Note that a Golden Handshake could be granted to members notincluded in this valuation report, possibly even members not yet hired by the employer, which would result in additional employer costs not disclosed here. The valuation has been performed in accordance with standards of practice prescribed by the Actuarial Standards Board, and the assumptions and methods are internally consistent and reasonable for this plan, as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.

The undersigned are actuaries who satisfy the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.

Kurt Schneider, MPA, ASA, EA, MAAA
Supervising Actuary, CalPERS

Item 15.

California Public Employees’ Retirement System
Actuarial Office
P.O. Box 942709
Sacramento, CA 94229-2709
TTY: (916) 795-3240
(888) 225-7377 phone • (916) 795-2744 fax
www.calpers.ca.gov
June 18, 2025
CalPERS ID: 6373819375
Employer Name: City of Coachella City
Plan Name: Miscellaneous Second Tier Plan of the City of Coachella City Rate Plan ID: 23258
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member Dear Requestor:

A cost analysis for granting two years of additional service to designated members (Golden Handshake) and related information is enclosed. This actuarial valuation report reflects the following proposed benefit provision changes:

Additional two years of service for designated members - Golden Handshake The employer has provided CalPERS with a list of members to include in this cost analysis.

Number of eligible members* 2
Average Pay $75,077
Average Service 5.74
Average Age 49.53
*Members hired on or after July 1, 2023 are not included in the valuation California Government Code section 20903 allows an agency to provide its employees, who retire during a designated period, two years of additional service credit. Before an agency may adopt the Golden Handshake resolution, the governing body must certify that it intends to keep some of the resulting vacancies permanently unfilled and reduce the workforce. The provision permits agencies to reduce staff and provide immediate payroll savings by offering a retirement incentive for eligible employees.

The estimated total increase in retirement benefit costs and analysis regarding estimated changes in required employer contribution rates are provided in the attached cost analysis, which is intended to satisfy Government Code section 7507(b). In order to satisfy section 7507(c), the employer must make this report public at a public meeting at least two weeks prior to adopting the Golden Handshake. This subsection may also require an actuary to be present at the meeting at which the Golden Handshake is adopted to provide information as needed.

Important Risk Disclosure
• The Nature of Actuarial Work: All actuarial calculations, including the ones in this cost estimate, are based on numerous assumptions about the future. This includes demographic assumptions about the percentage of your employees that will terminate, die, become disabled, and retire in each future year, and economic assumptions, about what salary increases each employee receives and the most important assumption, what the assets at CalPERS will earn for each year into the future until the last dollar is paid to current members of your plan. While CalPERS has set these assumptions as our best estimate of the future, it must be understood that these assumptions are very long-term predictors and will not be realized each year as we go forward.

This means that your required employer contributions can vary with or without any benefit changes because short term experience does not conform to the long-term actuarial assumptions.

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
June 18, 2025 Page | 2
• Change in Actuarial Assumptions: On November 17, 2021, the CalPERS Board of Administration (board) adopted new actuarial assumptions based on the recommendations in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases and inflation assumptions for public agencies.

These new assumptions are incorporated in this actuarial valuation. In addition, the board adopted a new strategic asset allocation as part of its Asset Liability Management process. The new asset allocation along with the new capital market assumptions and economic assumptions support a discount rate of 6.80%. This includes a reduction in the price inflation assumption from 2.50% to 2.30%. • Investment return is much more volatile than liability fluctuations and can cause employer rates to vary significantly. For example, for the past twenty-year period ending June 30, 2023, returns for each fiscal year ranged from -23.6% to +21.3%. The impact of investment return on employer contribution rates varies significantly based on the plan’s volatility ratio (the ratio of the market value of assets to the payroll). • The risks associated with whether actual future measurements differ significantly from expected future measurements are disclosed in this report. These risk disclosures are important and should be reviewed.

If you have questions about the cost analysis, please call (888) CalPERS (225-7377). Please ask to speak to a contract analyst for questions about the contract. Please ask to speak to the signing actuary below for questions about this cost analysis.

Kurt Schneider, MPA, ASA, EA, MAAA
Supervising Actuary, CalPERS
Enclosures

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Estimated Cost/Savings of Golden Handshake
A Golden Handshake program generally results in increased retirement benefit costs but lower payroll and ancillary benefit costs (at least for some period of time). An appropriate method for determining the ultimate cost / savings of such a program is to compare the estimated increase in retirement benefit costs to the estimated payroll and ancillary benefit savings. There is generally no way to know which of the eligible members will retire under the program. All “post-change” results provided in this report assume all eligible members will retire. If some eligible employees choose to continue working, the cost will be different. However, it is not necessarily true that if 80% of eligible members choose to retire, the cost will be 80% of the results shown in this report. The cost of the additional service varies by individuals, and those for whom it has a higher value may be more likely to elect to take advantage, meaning that the cost for the 80% that elect to retire could be more than 80% of the cost if all members elect to retire.

The ultimate cost/savings will also depend heavily on the extent to which members who retire under the program are replaced or not replaced. Both the increase in retirement benefit costs and the decrease in payroll/ancillary benefits depend on this.

Adoption of the proposed Golden Handshake would affect the cost of retirement benefits provided in this plan in two ways:

1. Increase in Past Service Cost –this is the current value of the improved benefit for all past service of eligible members, expressed as a lump-sum dollar amount. According to CalPERS policy, a new Unfunded Accrued Liability base is established in the amount of the past service cost increase for the Golden Handshake program and amortized over 5 years.

2. Decrease in Normal Cost –employer normal costs for remaining active members will be unaffected by the Golden Handshake program. However, to the extent members who retire under the program are not replaced, total required employer normal cost payments will be reduced.

This report provides estimates of the increase in retirement benefit costs but does not provide estimated payroll/ancillary benefit savings. For a full picture of the financial impact of this program, payroll and ancillary benefit costs should be estimated and compared to the retirement benefit costs provided in this report.

Present Value of Projected Benefits
The table below shows the change in the plan’s total present value of benefits for the proposed plan change. The present value of benefits represents the total dollars needed today to fund all future benefits for current members of the plan (i.e., without regard to future employees).

Also provided in the table is the present value of future member contributions for members assumed to retire under the Golden Handshake program. Without the program, these member contributions would be expected to be paid to the plan. If the retiring members are not replaced, these member contributions will not be contributed to the plan.

The change in the present value of benefits due to the Golden Handshake program plus “lost”member contributions is an estimate of the total retirement benefit cost of the program if retiring members are not replaced.

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Estimated Cost of Golden Handshake Benefits if No Replacement of Employees Total Present Value of Projected Benefits (PVB) from June 30, 2023 Valuation $2,812,788 As of Assumed Program Effective Date
(1/1/2025)
Pre-Change Post-Change
PVB for Eligible Members $558,455 $288,206
Change to PVB ($270,249)
Present Value of Future Member Contributions for
eligible members $98,171 $0
Reduction in Future Member Contributions $98,171
Estimated Total Increase in Retirement Benefit Costs
(Assuming no replacement) *
($172,078)
* The Estimated Total Increase in Retirement Benefit Costs shown in the table above assumes that all employees eligible for retirement electto retire under the Golden Handshake program. For certain eligible members, the present value of future benefits decreases as a result of immediate retirement under this program due either:

1. Forfeiture of the value of higher future service retirement benefits at later retirement dates.

2. An actuarial liability gain due to the early retirement benefit factor applied if the member has not yet reached the normal retirement age.

If eligible members meeting the above criteria are excluded from the valuation, the estimated increase to the PVB is $0, with reduction in future member contributions of $0. This would yield a total estimated increase in retirement benefit costs of $0.

As discussed in the Important Risk Disclosure in the cover letter, actual cost in the future will differ from our estimates due to experience deviating from the long-term actuarial assumptions on which the estimates are based.

Accrued Liability
The plan’s Accrued Liability is the portion of the Present Value of Projected Benefits attributable to past service. A plan with assets exactly equal to the plan’s accrued liability is “on schedule” in funding that plan. A plan with assets below the accrued liability is “behind schedule”, or is said to have an unfunded liability, and must temporarily increase contributions to get back on schedule. Of course, events such as plan changes and investment or demographic gains or losses can change a plan’s condition from year to year.

The increase in the plan’s accrued liability due to the Golden Handshake program determines the increase in unfunded liability that is amortized over a 5-year period which increases required annual employer contributions.

The table that follows shows the accrued liability (AL), unfunded accrued liability, funded status for the plan as of the most recent valuation date, and the changes in the accrued liability due to the Golden Handshake program as of the assumed effective date of the program.

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Estimated Cost of Golden Handshake Benefits if all Employees Replaced Total Entry Age Accrued Liability (AL) from June 30, 2023 Valuation $1,277,473 Market Value of Assets (MVA) as of June 30, 2023 $1,158,236 Unfunded Liability/(Excess Assets) (UAL = AL –MVA) as of June 30, 2023 $119,237 Funded Status (MVA / AL) as of June 30, 2023 90.7%
As of Assumed Program Effective Date
(1/1/2025)
Pre-Change Post-Change
Entry Age Accrued Liability for Eligible Members $273,835 $288,206 Change to Entry Age Accrued Liability $14,371
Estimated Total Increase in Retirement Benefit Costs
(if all employees replaced) $14,371
For a Golden Handshake program, the increase in accrued liability is typically greater than the increase in the present value of projected benefits. The difference is the value of normal costs that would have been charged for the retiring members between the valuation date and their projected retirement date (without the Golden Handshake program).

If these retiring members are replaced (resulting in these normal costs being accrued by replacement members), a more appropriate estimate of the total increase in retirement benefit costs attributable to the Golden Handshake program is the increase in accrued liability shown above. For certain eligible members, the accrued liability decreases as a result of retirement under this program due to the value of future retirement benefit factor increases that they forfeit if they accept the Golden Handshake. If the Golden Handshake is declined by these members, the change to the Entry Age Accrued liability could be approximately $16,573 rather than the $14,371 shown above.

Estimated Impact on Future Employer Contributions
The previous sections of this report provide information regarding the estimated total cost of additional retirement benefits under the proposed Golden Handshake program. Estimating this cost is important so that it can be compared against estimated savings due to payroll and other ancillary benefits. However, the estimate of the total cost of additional retirement benefits does not by itself indicate how year-by-year future contribution requirements will be impacted. The purpose of this section is to discuss how the expected cost of the program is spread over future contribution requirements.

CalPERS policy provides that the change in unfunded liability due to a Golden Handshake program will be separately amortized over a period of 5 years and all other components of the plan’s unfunded liability/excess assets will continue to be amortized separately. Future employer normal costs are expected to be lower provided at least some of the retiring members are not replaced.

Normal Cost for Fiscal Year 2025-26
The employer normal cost rate determined in the June 30, 2023 actuarial valuation, and applicable to fiscal year 2025- 26, is unaffected by the Golden Handshake program. However, if member payroll for that year is reduced due to this program, this normal cost rate will be applied to lower payroll which will result in lower normal cost dollars paid during that year. The reduction in fiscal year 2025-26 employer normal cost can be estimated by multiplying the plan’s currentemployer normal cost rate by the estimated decrease in payroll due to this program.

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Normal Cost for Fiscal Year 2026-27 and Beyond
The employer normal cost rate that will be determined in the June 30, 2024 actuarial valuation (applicable to the 2026- 27 fiscal year) will also be unaffected by this Golden Handshake program as all eligible members will be retiring after that date. An estimate for the employer normal cost reduction in fiscal year 2026-27 can be determined by multiplying the plan’s current employer normal cost rate by the estimated decrease in payroll due to this program in fiscal year 2026-27. The employer normal cost rate is provided in the table below. This estimate of the decrease in the employer normal cost reduction also applies to future fiscal years.

Employer Normal Cost Based on June 30, 2023 Actuarial Valuation Employer Normal Cost Rates (FY 2025 –26)
Miscellaneous Second Tier Plan 10.19%
Employer Normal Costs are made as a percentage of payroll. Future employer normal cost contribution reductions can be estimated using the procedures described in the text above.

Note –individual member normal cost rates are not impacted by the Golden Handshake program.

Increase to Future Required Employer UAL Contributions Pre-Change Post-Change Increase to Required Employer Unfunded Accrued
Liability Payments beginning July 1, 2027
(level dollar payment persists for 5 years)
$0 $3,977
Increase to Required Employer Unfunded Accrued
Liability Payments if only members with an increased
accrued liability elect to retire under the Golden
Handshake program beginning July 1, 2027 (level dollar
payment persists for 5 years)
$4,586

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Additional Risk Disclosures
With the adoption of the Actuarial Standards of Practice Number 51 (ASOP 51), there is an increase in the amounts of disclosures about the risk associated with pension plans. These risks are shown in both the annual valuation report, as well as this cost analysis report. The following are some risk disclosures that your actuary feels you should be aware of before adopting the Golden Handshake.

The actuarial calculations supplied in this communication are based on a number of assumptions about very long-term demographic and economic behavior. Unless these assumptions (terminations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year to year differences between actual experience and the assumptions are called actuarial gains and losses and serve to raise or lower the employer’s required contributions from year to year. As a result, the required contributions will fluctuate, especially due to the unpredictability of investment returns.

Provided on the following pages are several measures to help your agency understand the risks associated with the proposed contract.

Specifically, these exhibits illustrate the risk associated with:
▪ The Plan’s Sensitivity to the Discount Rate, Mortality, and Inflation ▪ The Plan’s Maturity, and
▪ The Potential Costs for Terminating the Proposed Contract The risks analyzed here are not a comprehensive list but are instead the risks we believe to have the greatest impact on the additional retirement benefit costs due to the Golden Handshake program. There are other risks associated with the proposed contract not analyzed here that could impact the cost of the plan.

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2023, assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption. This type of analysis assesses the impact of a change in real rate of return assumption and the price inflation assumption independently.

Sensitivity to the Real Rate of Return Assumption
The following tables indicate the sensitivity of key valuation results, before and after the Golden Handshake, to changes in the assumed real rate of return. For this analysis, the inflation assumption was unchanged at 2.3%.

Sensitivity Analysis (Pre-Change)
As of June 30, 2023
1% Lower
Discount Rate
Current
Discount Rate
1% Higher
Discount Rate
Discount Rate 5.8% 6.8% 7.8%
a) Accrued Liability $1,522,623 $1,277,473 $1,080,198
b) Market Value of Assets $1,158,236 $1,158,236 $1,158,236 c) Unfunded Liability (Surplus) [(a) - (b)] $364,387 $119,237 ($78,038) d) Funded Ratio [(b) ÷ (a)] 76.1% 90.7% 107.2%
Sensitivity Analysis (Post-Change)
As of June 30, 2023
1% Lower
Discount Rate
Current
Discount Rate
1% Higher
Discount Rate
Discount Rate 5.8% 6.8% 7.8%
a) Accrued Liability $1,526,910 $1,290,494 $1,100,589
b) Market Value of Assets $1,158,236 $1,158,236 $1,158,236 c) Unfunded Liability (Surplus) [(a) - (b)] $368,674 $132,258 ($57,647) d) Funded Ratio [(b) ÷ (a)] 75.9% 89.8% 105.2%

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Sensitivity to the Price Inflation Assumption
The following tables indicate the sensitivity of key valuation results, before and after the Golden Handshake, to changes in the price inflation assumption. For this analysis, the real rate of return assumption was unchanged at 4.5%.

Sensitivity Analysis (Pre-Change)
As of June 30, 2023
1% Lower
Inflation Rate
Current
Inflation Rate
1% Higher
Inflation Rate
a) Accrued Liability $1,347,484 $1,277,473 $1,154,540
b) Market Value of Assets $1,158,236 $1,158,236 $1,158,236 c) Unfunded Liability (Surplus) [(a) - (b)] $189,248 $119,237 ($3,696) d) Funded Ratio [(b) ÷ (a)] 86.0% 90.7% 100.3%
Sensitivity Analysis (Post-Change)
As of June 30, 2023
1% Lower
Inflation Rate
Current
Inflation Rate
1% Higher
Inflation Rate
a) Accrued Liability $1,363,572 $1,290,494 $1,163,981
b) Market Value of Assets $1,158,236 $1,158,236 $1,158,236 c) Unfunded Liability (Surplus) [(a) - (b)] $205,336 $132,258 $5,745 d) Funded Ratio [(b) ÷ (a)] 84.9% 89.8% 99.5%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2023 plan costs for eligible members under two different longevity scenarios, namely assuming a 10% increase or 10% decrease in the mortality rates adopted in 2021. This type of analysis assesses the impact of a change in the mortality assumption.

Sensitivity Analysis (Pre-Change)
As of June 30, 2023
10% Lower
Mortality Rates
Current
Mortality
10% Higher
Mortality Rates
a) Accrued Liability $1,301,631 $1,277,473 $1,163,981
b) Market Value of Assets $1,158,236 $1,158,236 $1,158,236 c) Unfunded Liability (Surplus) [(a) - (b)] $143,395 $119,237 $5,745 d) Funded Ratio [(b) ÷ (a)] 89.0% 90.7% 99.5%
Sensitivity Analysis (Post-Change)
As of June 30, 2023
10% Lower
Mortality Rates
Current
Mortality
10% Higher
Mortality Rates
a) Accrued Liability $1,312,792 $1,290,494 $1,269,797
b) Market Value of Assets $1,158,236 $1,158,236 $1,158,236 c) Unfunded Liability (Surplus) [(a) - (b)] $154,556 $132,258 $111,561 d) Funded Ratio [(b) ÷ (a)] 88.2% 89.8% 91.2%

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Maturity Measures
As pension plans mature, they become more sensitive to risks. Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions. Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans.

The following measures are for one rate plan only.

Ratio of Retiree Accrued Liability to
Total Accrued Liability Pre-Change Post-Change

1. Retired Accrued Liability $0 $213,332

2. Total Accrued Liability $1,277,473 $1,290,494

3. Ratio of Retiree AL to Total AL [(1) ÷ (2)] 0.00 0.17 Another way to look at the maturity level of CalPERS and its plans is to look at the ratio of actives to retirees. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures, and members retire, the ratio starts declining. A mature plan will often have a ratio near or below one.

Support Ratio Pre-Change Post-Change

1. Number of Actives 7 5

2. Number of Retirees 0 2

3. Support Ratio [(1) ÷ (2)] N/A 2.50
In the tables above, the “post-change” results assume all eligible members retire under this program and are not replaced.

Volatility Ratios
Actuarial calculations are based on a number of assumptions about long-term demographic and economic behavior.

Unless these assumptions (terminations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.

The volatility in annual employer rates may be affected by this Golden Handshake due to changes in plan liabilities and payroll. Rate volatility can be measured by the ratio of plan assets to active member payroll. Higher asset to payroll ratios produce more volatile employer rates. To see this, consider two plans, one with assets that are 4 times active member payroll, and the other with assets that are 8 times active member payroll. In a given year, when assets rise or fall 10% above or below the actuarial assumption, the plan with a volatility index of 4 experiences a dollar gain or loss of 40% of payroll while the plan with a volatility index of 8 experiences a dollar gain or loss of 80% of payroll. If this gain or loss is spread over 20 years (and we oversimplify by ignoring interest on the gain or loss), then the first plan’s rate changes by 2% of pay while the second plan’s rate changes by 4% of pay.

It should also be noted that these ratios tend to stabilize as the plan matures. That is, all plans with no past service start their lives with zero assets and zero accrued liability –thus, asset to payroll ratio and liability to payroll ratios are equal to zero. However, as time goes by these ratios begin to rise and then tend to stabilize at some constant amount as the plan matures. Higher benefit levels and earlier expected retirements produce higher constant future ratios.

Asset Volatility Ratio (AVR)

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Plans that have higher asset-to-payroll ratios experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with an asset-to-payroll ratio of 8 may experience twice the contribution volatility due to investment return volatility than a plan with an asset-to-payroll ratio of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as the plan matures. When an agency increases benefits, the future liability changes, but assets do not. So, the AVR does not change immediately. However, as assets grow to equal the new accrued liability, the AVR will also grow. So, we also disclose the ratio of accrued liability to payroll below to show what the future AVR will become when the plan is 100% funded. The higher this ratio, the more volatile the future contribution rate will be.

Liability Volatility Ratio (LVR)
Plans that have higher liability-to-payroll ratios experience more volatile employer contributions (as a percentage of payroll) due to investment return and changes in liability. For example, a plan with a liability-to-payroll ratio of 8 is expected to have twice the contribution volatility of a plan with a liability-to-payroll ratio of 4. The liability volatility ratio is also shown in the table below. It should be noted thatthis ratio indicates a longer-term potential for contribution volatility. The asset volatility ratio, described above, will tend to move closer to the liability volatility ratio as the plan matures. With an increase in benefits, a plan is likely to see an increase in the Liability Volatility Ratio as more assets are needed to support the higher benefits that are to be paid out.

The table below contains these measures of potential future rate volatility. For this purpose, the “post-change” results assume all eligible members retire under this program and are not replaced.

Contribution Volatility As of June 30, 2023
(Pre-Change)
As of June 30, 2023
(Post-Change)

1. Market Value of Assets $1,158,236 $1,158,236

2. Payroll 742,808 $592,655

3. Asset Volatility Ratio (AVR) [(1) ÷ (2)] 1.6 2.0

4. Accrued Liability $1,277,473 $1,290,494

5. Liability Volatility Ratio (LVR) [(4) ÷ (2)] 1.7 2.2

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Funded Status - Termination Basis
The funded status on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2023. The plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For the termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees.

A more conservative investment policy and asset allocation strategy was adopted by the CalPERS Board of Administration (board) for the Terminated Agency Pool. The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while funding risk is limited. However, this asset allocation has a lower expected rate of return than the PERF and consequently, a lower discount rate is assumed. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.

The effective termination discount rate will depend on actual market rates of return for risk-free securities on the date of termination. As market discount rates are variable, the table below shows a range for the termination liability based on the lowest and highest interest rates observed during an approximate 19-month period from 12 months before the valuation date to 7 months after.

The following tables show the termination liabilities before and after the proposed Golden Handshake.

Pre-Change
Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $2,038,990 $1,338,505

2. Market Value of Assets (MVA) $1,158,236 $1,158,236

3. Unfunded Termination Liability [(1) –(2)] $880,754 $180,269

4. Funded Ratio [(2) ÷ (1)] 56.8% 86.5%
Post-Change
Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $2,121,016 $1,412,021

2. Market Value of Assets (MVA) $1,158,236 $1,158,236

3. Unfunded Termination Liability [(1) –(2)] $962,780 $253,785

4. Funded Ratio [(2) ÷ (1)] 54.6% 82.0%
1 The liabilities calculated above include a 5% mortality contingency load in accordance with board policy. 2 The current discount rate assumption used for termination valuations is a weighted average of the 10-year and 30-year U.S.

Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield was 4.06% on June 30, 2023.

In order to terminate the plan, you must first contact our Retirement Services Contract Unit to initiate a Resolution of Intentto terminate. The completed Resolution will allow the plan actuary to give you a preliminary termination valuation with a more up-to-date estimate of the plan liabilities. CalPERS advises you to consult with the plan actuary before beginning this process.

Item 15.

Miscellaneous Second Tier Plan of the City of Coachella City CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Additional Disclosure
Please note thatthe cost analysis provided in this document may not be relied upon after you receive your next annual valuation. If you have not taken action to adopt the Golden Handshake by this date, you must contact our office for an updated cost analysis, based on the new annual valuation.

The actuarial methodologies and plan benefit provisions are the same as those that may be found in the appendices of the June 30, 2023 annual report. The actuarial assumptions are those recommended to and adopted by the board in the 2021 CalPERS Experience Study and Review of Actuarial Assumptions, except that all decrements for Golden Handshake eligible members were removed for fiscal year 2023-24 and these members are assumed to retire in fiscal year 2024-25.

Actuarial Certification
This actuarial valuation for the proposed Golden Handshake is based on the participant, benefits, and asset data used in the June 30, 2023 annual valuation, with the benefits modified if necessary to reflect what is currently provided under your contract with CalPERS, and further modified to reflect the proposed Golden Handshake. The valuation has been restricted to those individuals designated by the employer and excludes those designees currently ineligible to retire based on CalPERS data. Note that a Golden Handshake could be granted to members notincluded in this valuation report, possibly even members not yet hired by the employer, which would result in additional employer costs not disclosed here. The valuation has been performed in accordance with standards of practice prescribed by the Actuarial Standards Board, and the assumptions and methods are internally consistent and reasonable for this plan, as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.

The undersigned are actuaries who satisfy the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.

Kurt Schneider, MPA, ASA, EA, MAAA
Supervising Actuary, CalPERS

Item 15.

California Public Employees’ Retirement System
Actuarial Office
P.O. Box 942709
Sacramento, CA 94229-2709
TTY: (916) 795-3240
(888) 225-7377 phone • (916) 795-2744 fax
www.calpers.ca.gov
June 18, 2025
CalPERS ID: 6373819375
Employer Name: City of Coachella City
Plan Name: PEPRA Miscellaneous Plan of the City of Coachella City Rate Plan ID: 27390
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member Dear Requestor:

A cost analysis for granting two years of additional service to designated members (Golden Handshake) and related information is enclosed. This actuarial valuation report reflects the following proposed benefit provision changes:

Additional two years of service for designated members - Golden Handshake The employer has provided CalPERS with a list of members to include in this cost analysis.

Number of eligible members* 2
Average Pay $84,063
Average Service 4.90
Average Age 57.68
*Members hired on or after July 1, 2023 are not included in the valuation California Government Code section 20903 allows an agency to provide its employees, who retire during a designated period, two years of additional service credit. Before an agency may adopt the Golden Handshake resolution, the governing body must certify that it intends to keep some of the resulting vacancies permanently unfilled and reduce the workforce. The provision permits agencies to reduce staff and provide immediate payroll savings by offering a retirement incentive for eligible employees.

The estimated total increase in retirement benefit costs and analysis regarding estimated changes in required employer contribution rates are provided in the attached cost analysis, which is intended to satisfy Government Code section 7507(b). In order to satisfy section 7507(c), the employer must make this report public at a public meeting at least two weeks prior to adopting the Golden Handshake. This subsection may also require an actuary to be present at the meeting at which the Golden Handshake is adopted to provide information as needed.

Important Risk Disclosure
• The Nature of Actuarial Work: All actuarial calculations, including the ones in this cost estimate, are based on numerous assumptions about the future. This includes demographic assumptions about the percentage of your employees that will terminate, die, become disabled, and retire in each future year, and economic assumptions, about what salary increases each employee receives and the most important assumption, what the assets at CalPERS will earn for each year into the future until the last dollar is paid to current members of your plan. While CalPERS has set these assumptions as our best estimate of the future, it must be understood that these assumptions are very long-term predictors and will not be realized each year as we go forward.

This means that your required employer contributions can vary with or without any benefit changes because short term experience does not conform to the long-term actuarial assumptions.

Item 15.

PEPRA Miscellaneous Plan of the City of Coachella City
CalPERS ID: 6373819375
June 18, 2025 Page | 2
• Change in Actuarial Assumptions: On November 17, 2021, the CalPERS Board of Administration (board) adopted new actuarial assumptions based on the recommendations in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases and inflation assumptions for public agencies.

These new assumptions are incorporated in this actuarial valuation. In addition, the board adopted a new strategic asset allocation as part of its Asset Liability Management process. The new asset allocation along with the new capital market assumptions and economic assumptions support a discount rate of 6.80%. This includes a reduction in the price inflation assumption from 2.50% to 2.30%. • Investment return is much more volatile than liability fluctuations and can cause employer rates to vary significantly. For example, for the past twenty-year period ending June 30, 2023, returns for each fiscal year ranged from -23.6% to +21.3%. The impact of investment return on employer contribution rates varies significantly based on the plan’s volatility ratio (the ratio of the market value of assets to the payroll). • The risks associated with whether actual future measurements differ significantly from expected future measurements are disclosed in this report. These risk disclosures are important and should be reviewed.

If you have questions about the cost analysis, please call (888) CalPERS (225-7377). Please ask to speak to a contract analyst for questions about the contract. Please ask to speak to the signing actuary below for questions about this cost analysis.

Kurt Schneider, MPA, ASA, EA, MAAA
Supervising Actuary, CalPERS
Enclosures

Item 15.

PEPRA Miscellaneous Plan of City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Estimated Cost/Savings of Golden Handshake
A Golden Handshake program generally results in increased retirement benefit costs but lower payroll and ancillary benefit costs (at least for some period of time). An appropriate method for determining the ultimate cost / savings of such a program is to compare the estimated increase in retirement benefit costs to the estimated payroll and ancillary benefit savings. There is generally no way to know which of the eligible members will retire under the program. All “post-change” results provided in this report assume all eligible members will retire. If some eligible employees choose to continue working, the cost will be different. However, it is not necessarily true that if 80% of eligible members choose to retire, the cost will be 80% of the results shown in this report. The cost of the additional service varies by individuals, and those for whom it has a higher value may be more likely to elect to take advantage, meaning that the cost for the 80% that elect to retire could be more than 80% of the cost if all members elect to retire.

The ultimate cost/savings will also depend heavily on the extent to which members who retire under the program are replaced or not replaced. Both the increase in retirement benefit costs and the decrease in payroll/ancillary benefits depend on this.

Adoption of the proposed Golden Handshake would affect the cost of retirement benefits provided in this plan in two ways:

1. Increase in Past Service Cost –this is the current value of the improved benefit for all past service of eligible members, expressed as a lump-sum dollar amount. According to CalPERS policy, a new Unfunded Accrued Liability base is established in the amount of the past service cost increase for the Golden Handshake program and amortized over 5 years.

2. Decrease in Normal Cost –employer normal costs for remaining active members will be unaffected by the Golden Handshake program. However, to the extent members who retire under the program are not replaced, total required employer normal cost payments will be reduced.

This report provides estimates of the increase in retirement benefit costs but does not provide estimated payroll/ancillary benefit savings. For a full picture of the financial impact of this program, payroll and ancillary benefit costs should be estimated and compared to the retirement benefit costs provided in this report.

Present Value of Projected Benefits
The table below shows the change in the plan’s total present value of benefits for the proposed plan change. The present value of benefits represents the total dollars needed today to fund all future benefits for current members of the plan (i.e., without regard to future employees).

Also provided in the table is the present value of future member contributions for members assumed to retire under the Golden Handshake program. Without the program, these member contributions would be expected to be paid to the plan. If the retiring members are not replaced, these member contributions will not be contributed to the plan.

The change in the present value of benefits due to the Golden Handshake program plus “lost”member contributions is an estimate of the total retirement benefit cost of the program if retiring members are not replaced.

Item 15.

PEPRA Miscellaneous Plan of City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Estimated Cost of Golden Handshake Benefits if No Replacement of Employees Total Present Value of Projected Benefits (PVB) from June 30, 2023 Valuation $9,277,862 As of Assumed Program Effective Date
(1/1/2025)
Pre-Change Post-Change
PVB for Eligible Members $439,075 $340,618
Change to PVB ($98,457)
Present Value of Future Member Contributions for
eligible members $65,063 $0
Reduction in Future Member Contributions $65,063
Estimated Total Increase in Retirement Benefit Costs
(Assuming no replacement) *
($33,394)
* The Estimated Total Increase in Retirement Benefit Costs shown in the table above assumes that all employees eligible for retirement electto retire under the Golden Handshake program. For certain eligible members, the present value of future benefits decreases as a result of immediate retirement under this program due either:

1. Forfeiture of the value of higher future service retirement benefits at later retirement dates.

2. An actuarial liability gain due to the early retirement benefit factor applied if the member has not yet reached the normal retirement age.

If eligible members meeting the above criteria are excluded from the valuation, the estimated increase to the PVB is $0, with reduction in future member contributions of $0. This would yield a total estimated increase in retirement benefit costs of $0.

As discussed in the Important Risk Disclosure in the cover letter, actual cost in the future will differ from our estimates due to experience deviating from the long-term actuarial assumptions on which the estimates are based.

Accrued Liability
The plan’s Accrued Liability is the portion of the Present Value of Projected Benefits attributable to past service. A plan with assets exactly equal to the plan’s accrued liability is “on schedule” in funding that plan. A plan with assets below the accrued liability is “behind schedule”, or is said to have an unfunded liability, and must temporarily increase contributions to get back on schedule. Of course, events such as plan changes and investment or demographic gains or losses can change a plan’s condition from year to year.

The increase in the plan’s accrued liability due to the Golden Handshake program determines the increase in unfunded liability that is amortized over a 5-year period which increases required annual employer contributions.

The table that follows shows the accrued liability (AL), unfunded accrued liability, funded status for the plan as of the most recent valuation date, and the changes in the accrued liability due to the Golden Handshake program as of the assumed effective date of the program.

Item 15.

PEPRA Miscellaneous Plan of City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Estimated Cost of Golden Handshake Benefits if all Employees Replaced Total Entry Age Accrued Liability (AL) from June 30, 2023 Valuation $2,707,478 Market Value of Assets (MVA) as of June 30, 2023 $2,478,578 Unfunded Liability/(Excess Assets) (UAL = AL –MVA) as of June 30, 2023 $278,900 Funded Status (MVA / AL) as of June 30, 2023 89.7%
As of Assumed Program Effective Date
(1/1/2025)
Pre-Change Post-Change
Entry Age Accrued Liability for Eligible Members $257,524 $340,618 Change to Entry Age Accrued Liability $83,094
Estimated Total Increase in Retirement Benefit Costs
(if all employees replaced) $83,094
For a Golden Handshake program, the increase in accrued liability is typically greater than the increase in the present value of projected benefits. The difference is the value of normal costs that would have been charged for the retiring members between the valuation date and their projected retirement date (without the Golden Handshake program).

If these retiring members are replaced (resulting in these normal costs being accrued by replacement members), a more appropriate estimate of the total increase in retirement benefit costs attributable to the Golden Handshake program is the increase in accrued liability shown above. For certain eligible members, the accrued liability decreases as a result of retirement under this program due to the value of future retirement benefit factor increases that they forfeit if they accept the Golden Handshake. If the Golden Handshake is declined by these members, the change to the Entry Age Accrued liability could be approximately $83,094 rather than the $83,094 shown above.

Estimated Impact on Future Employer Contributions
The previous sections of this report provide information regarding the estimated total cost of additional retirement benefits under the proposed Golden Handshake program. Estimating this cost is important so that it can be compared against estimated savings due to payroll and other ancillary benefits. However, the estimate of the total cost of additional retirement benefits does not by itself indicate how year-by-year future contribution requirements will be impacted. The purpose of this section is to discuss how the expected cost of the program is spread over future contribution requirements.

CalPERS policy provides that the change in unfunded liability due to a Golden Handshake program will be separately amortized over a period of 5 years and all other components of the plan’s unfunded liability/excess assets will continue to be amortized separately. Future employer normal costs are expected to be lower provided at least some of the retiring members are not replaced.

Normal Cost for Fiscal Year 2025-26
The employer normal cost rate determined in the June 30, 2023 actuarial valuation, and applicable to fiscal year 2025- 26, is unaffected by the Golden Handshake program. However, if member payroll for that year is reduced due to this program, this normal cost rate will be applied to lower payroll which will result in lower normal cost dollars paid during that year. The reduction in fiscal year 2025-26 employer normal cost can be estimated by multiplying the plan’s currentemployer normal cost rate by the estimated decrease in payroll due to this program.

Item 15.

PEPRA Miscellaneous Plan of City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Normal Cost for Fiscal Year 2026-27 and Beyond
The employer normal cost rate that will be determined in the June 30, 2024 actuarial valuation (applicable to the 2026- 27 fiscal year) will also be unaffected by this Golden Handshake program as all eligible members will be retiring after that date. An estimate for the employer normal cost reduction in fiscal year 2026-27 can be determined by multiplying the plan’s current employer normal cost rate by the estimated decrease in payroll due to this program in fiscal year 2026-27. The employer normal cost rate is provided in the table below. This estimate of the decrease in the employer normal cost reduction also applies to future fiscal years.

Employer Normal Cost Based on June 30, 2023 Actuarial Valuation Employer Normal Cost Rates (FY 2025 –26)
Pepra Miscellaneous Plan 7.96%
Employer Normal Costs are made as a percentage of payroll. Future employer normal cost contribution reductions can be estimated using the procedures described in the text above.

Note –individual member normal cost rates are not impacted by the Golden Handshake program.

Increase to Future Required Employer UAL Contributions Pre-Change Post-Change Increase to Required Employer Unfunded Accrued
Liability Payments beginning July 1, 2027
(level dollar payment persists for 5 years)
$0 $22,992
Increase to Required Employer Unfunded Accrued
Liability Payments if only members with an increased
accrued liability elect to retire under the Golden
Handshake program beginning July 1, 2027 (level dollar
payment persists for 5 years)
$22,992

Item 15.

PEPRA Miscellaneous Plan of City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Additional Risk Disclosures
With the adoption of the Actuarial Standards of Practice Number 51 (ASOP 51), there is an increase in the amounts of disclosures about the risk associated with pension plans. These risks are shown in both the annual valuation report, as well as this cost analysis report. The following are some risk disclosures that your actuary feels you should be aware of before adopting the Golden Handshake.

The actuarial calculations supplied in this communication are based on a number of assumptions about very long-term demographic and economic behavior. Unless these assumptions (terminations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year to year differences between actual experience and the assumptions are called actuarial gains and losses and serve to raise or lower the employer’s required contributions from year to year. As a result, the required contributions will fluctuate, especially due to the unpredictability of investment returns.

Provided on the following pages are several measures to help your agency understand the risks associated with the proposed contract.

Specifically, these exhibits illustrate the risk associated with:
▪ The Plan’s Sensitivity to the Discount Rate, Mortality, and Inflation ▪ The Plan’s Maturity, and
▪ The Potential Costs for Terminating the Proposed Contract The risks analyzed here are not a comprehensive list but are instead the risks we believe to have the greatest impact on the additional retirement benefit costs due to the Golden Handshake program. There are other risks associated with the proposed contract not analyzed here that could impact the cost of the plan.

Item 15.

PEPRA Miscellaneous Plan of City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2023, assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption. This type of analysis assesses the impact of a change in real rate of return assumption and the price inflation assumption independently.

Sensitivity to the Real Rate of Return Assumption
The following tables indicate the sensitivity of key valuation results, before and after the Golden Handshake, to changes in the assumed real rate of return. For this analysis, the inflation assumption was unchanged at 2.3%.

Sensitivity Analysis (Pre-Change)
As of June 30, 2023
1% Lower
Discount Rate
Current
Discount Rate
1% Higher
Discount Rate
Discount Rate 5.8% 6.8% 7.8%
a) Accrued Liability $3,383,401 $2,707,478 $2,189,076
b) Market Value of Assets $2,428,578 $2,428,578 $2,428,578 c) Unfunded Liability (Surplus) [(a) - (b)] $954,823 $278,900 ($239,502) d) Funded Ratio [(b) ÷ (a)] 71.8% 89.7% 110.9%
Sensitivity Analysis (Post-Change)
As of June 30, 2023
1% Lower
Discount Rate
Current
Discount Rate
1% Higher
Discount Rate
Discount Rate 5.8% 6.8% 7.8%
a) Accrued Liability $3,463,645 $2,782,764 $2,260,397
b) Market Value of Assets $2,428,578 $2,428,578 $2,428,578 c) Unfunded Liability (Surplus) [(a) - (b)] $1,035,067 $354,186 ($168,181) d) Funded Ratio [(b) ÷ (a)] 70.1% 87.3% 107.4%

Item 15.

PEPRA Miscellaneous Plan of City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Sensitivity to the Price Inflation Assumption
The following tables indicate the sensitivity of key valuation results, before and after the Golden Handshake, to changes in the price inflation assumption. For this analysis, the real rate of return assumption was unchanged at 4.5%.

Sensitivity Analysis (Pre-Change)
As of June 30, 2023
1% Lower
Inflation Rate
Current
Inflation Rate
1% Higher
Inflation Rate
a) Accrued Liability $2,847,116 $2,707,478 $2,453,413
b) Market Value of Assets $2,428,578 $2,428,578 $2,428,578 c) Unfunded Liability (Surplus) [(a) - (b)] $418,538 $278,900 $24,835 d) Funded Ratio [(b) ÷ (a)] 85.3% 89.7% 99.0%
Sensitivity Analysis (Post-Change)
As of June 30, 2023
1% Lower
Inflation Rate
Current
Inflation Rate
1% Higher
Inflation Rate
a) Accrued Liability $2,927,317 $2,782,764 $2,519,944
b) Market Value of Assets $2,428,578 $2,428,578 $2,428,578 c) Unfunded Liability (Surplus) [(a) - (b)] $498,739 $354,186 $91,366 d) Funded Ratio [(b) ÷ (a)] 83.0% 87.3% 96.4%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2023 plan costs for eligible members under two different longevity scenarios, namely assuming a 10% increase or 10% decrease in the mortality rates adopted in 2021. This type of analysis assesses the impact of a change in the mortality assumption.

Sensitivity Analysis (Pre-Change)
As of June 30, 2023
10% Lower
Mortality Rates
Current
Mortality
10% Higher
Mortality Rates
a) Accrued Liability $2,759,161 $2,707,478 $2,659,732
b) Market Value of Assets $2,428,578 $2,428,578 $2,428,578 c) Unfunded Liability (Surplus) [(a) - (b)] $330,583 $278,900 $231,154 d) Funded Ratio [(b) ÷ (a)] 88.0% 89.7% 91.3%
Sensitivity Analysis (Post-Change)
As of June 30, 2023
10% Lower
Mortality Rates
Current
Mortality
10% Higher
Mortality Rates
a) Accrued Liability $2,834,406 $2,782,764 $2,735,010
b) Market Value of Assets $2,428,578 $2,428,578 $2,428,578 c) Unfunded Liability (Surplus) [(a) - (b)] $405,828 $354,186 $306,432 d) Funded Ratio [(b) ÷ (a)] 85.7% 87.3% 88.8%

Item 15.

PEPRA Miscellaneous Plan of City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Maturity Measures
As pension plans mature, they become more sensitive to risks. Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions. Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans.

The following measures are for one rate plan only.

Ratio of Retiree Accrued Liability to
Total Accrued Liability Pre-Change Post-Change

1. Retired Accrued Liability $0 $252,431

2. Total Accrued Liability $2,707,478 $2,782,764

3. Ratio of Retiree AL to Total AL [(1) ÷ (2)] 0.00 0.09 Another way to look at the maturity level of CalPERS and its plans is to look at the ratio of actives to retirees. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures, and members retire, the ratio starts declining. A mature plan will often have a ratio near or below one.

Support Ratio Pre-Change Post-Change

1. Number of Actives 47 45

2. Number of Retirees 0 2

3. Support Ratio [(1) ÷ (2)] N/A 22.50
In the tables above, the “post-change” results assume all eligible members retire under this program and are not replaced.

Volatility Ratios
Actuarial calculations are based on a number of assumptions about long-term demographic and economic behavior.

Unless these assumptions (terminations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.

The volatility in annual employer rates may be affected by this Golden Handshake due to changes in plan liabilities and payroll. Rate volatility can be measured by the ratio of plan assets to active member payroll. Higher asset to payroll ratios produce more volatile employer rates. To see this, consider two plans, one with assets that are 4 times active member payroll, and the other with assets that are 8 times active member payroll. In a given year, when assets rise or fall 10% above or below the actuarial assumption, the plan with a volatility index of 4 experiences a dollar gain or loss of 40% of payroll while the plan with a volatility index of 8 experiences a dollar gain or loss of 80% of payroll. If this gain or loss is spread over 20 years (and we oversimplify by ignoring interest on the gain or loss), then the first plan’s rate changes by 2% of pay while the second plan’s rate changes by 4% of pay.

It should also be noted that these ratios tend to stabilize as the plan matures. That is, all plans with no past service start their lives with zero assets and zero accrued liability –thus, asset to payroll ratio and liability to payroll ratios are equal to zero. However, as time goes by these ratios begin to rise and then tend to stabilize at some constant amount as the plan matures. Higher benefit levels and earlier expected retirements produce higher constant future ratios.

Asset Volatility Ratio (AVR)

Item 15.

PEPRA Miscellaneous Plan of City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Plans that have higher asset-to-payroll ratios experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with an asset-to-payroll ratio of 8 may experience twice the contribution volatility due to investment return volatility than a plan with an asset-to-payroll ratio of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as the plan matures. When an agency increases benefits, the future liability changes, but assets do not. So, the AVR does not change immediately. However, as assets grow to equal the new accrued liability, the AVR will also grow. So, we also disclose the ratio of accrued liability to payroll below to show what the future AVR will become when the plan is 100% funded. The higher this ratio, the more volatile the future contribution rate will be.

Liability Volatility Ratio (LVR)
Plans that have higher liability-to-payroll ratios experience more volatile employer contributions (as a percentage of payroll) due to investment return and changes in liability. For example, a plan with a liability-to-payroll ratio of 8 is expected to have twice the contribution volatility of a plan with a liability-to-payroll ratio of 4. The liability volatility ratio is also shown in the table below. It should be noted thatthis ratio indicates a longer-term potential for contribution volatility. The asset volatility ratio, described above, will tend to move closer to the liability volatility ratio as the plan matures. With an increase in benefits, a plan is likely to see an increase in the Liability Volatility Ratio as more assets are needed to support the higher benefits that are to be paid out.

The table below contains these measures of potential future rate volatility. For this purpose, the “post-change” results assume all eligible members retire under this program and are not replaced.

Contribution Volatility As of June 30, 2023
(Pre-Change)
As of June 30, 2023
(Post-Change)

1. Market Value of Assets $2,428,578 $2,428,578

2. Payroll 3,870,594 $3,702,469

3. Asset Volatility Ratio (AVR) [(1) ÷ (2)] 0.6 0.7

4. Accrued Liability $2,707,478 $2,782,764

5. Liability Volatility Ratio (LVR) [(4) ÷ (2)] 0.7 0.8

Item 15.

PEPRA Miscellaneous Plan of City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Funded Status - Termination Basis
The funded status on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2023. The plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For the termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees.

A more conservative investment policy and asset allocation strategy was adopted by the CalPERS Board of Administration (board) for the Terminated Agency Pool. The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while funding risk is limited. However, this asset allocation has a lower expected rate of return than the PERF and consequently, a lower discount rate is assumed. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.

The effective termination discount rate will depend on actual market rates of return for risk-free securities on the date of termination. As market discount rates are variable, the table below shows a range for the termination liability based on the lowest and highest interest rates observed during an approximate 19-month period from 12 months before the valuation date to 7 months after.

The following tables show the termination liabilities before and after the proposed Golden Handshake.

Pre-Change
Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $4,035,066 $2,447,104

2. Market Value of Assets (MVA) $2,428,578 $2,428,578

3. Unfunded Termination Liability [(1) –(2)] $1,606,488 $18,526

4. Funded Ratio [(2) ÷ (1)] 60.2% 99.2%
Post-Change
Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $4,242,208 $2,600,797

2. Market Value of Assets (MVA) $2,428,578 $2,428,578

3. Unfunded Termination Liability [(1) –(2)] $1,813,630 $172,219

4. Funded Ratio [(2) ÷ (1)] 57.2% 93.4%
1 The liabilities calculated above include a 5% mortality contingency load in accordance with board policy. 2 The current discount rate assumption used for termination valuations is a weighted average of the 10-year and 30-year U.S.

Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield was 4.06% on June 30, 2023.

In order to terminate the plan, you must first contact our Retirement Services Contract Unit to initiate a Resolution of Intentto terminate. The completed Resolution will allow the plan actuary to give you a preliminary termination valuation with a more up-to-date estimate of the plan liabilities. CalPERS advises you to consult with the plan actuary before beginning this process.

Item 15.

PEPRA Miscellaneous Plan of City of Coachella City
CalPERS ID: 6373819375
Benefit Description: Section 20903 - Additional Service Credit (Golden Handshake) –Local Member

Additional Disclosure
Please note thatthe cost analysis provided in this document may not be relied upon after you receive your next annual valuation. If you have not taken action to adopt the Golden Handshake by this date, you must contact our office for an updated cost analysis, based on the new annual valuation.

The actuarial methodologies and plan benefit provisions are the same as those that may be found in the appendices of the June 30, 2023 annual report. The actuarial assumptions are those recommended to and adopted by the board in the 2021 CalPERS Experience Study and Review of Actuarial Assumptions, except that all decrements for Golden Handshake eligible members were removed for fiscal year 2023-24 and these members are assumed to retire in fiscal year 2024-25.

Actuarial Certification
This actuarial valuation for the proposed Golden Handshake is based on the participant, benefits, and asset data used in the June 30, 2023 annual valuation, with the benefits modified if necessary to reflect what is currently provided under your contract with CalPERS, and further modified to reflect the proposed Golden Handshake. The valuation has been restricted to those individuals designated by the employer and excludes those designees currently ineligible to retire based on CalPERS data. Note that a Golden Handshake could be granted to members notincluded in this valuation report, possibly even members not yet hired by the employer, which would result in additional employer costs not disclosed here. The valuation has been performed in accordance with standards of practice prescribed by the Actuarial Standards Board, and the assumptions and methods are internally consistent and reasonable for this plan, as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.

The undersigned are actuaries who satisfy the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.

Kurt Schneider, MPA, ASA, EA, MAAA
Supervising Actuary, CalPERS

Item 15.

CalPERS-CON-12A Page 1 of 1
California Public Employees’ Retirement System www.calpers.ca.gov Financial Office | Pension Contracts & Prefunding Programs Division 888 CalPERS (or 888-225-7377) P.O. Box 942715, Sacramento, CA 94229-2715 TTY: (877) 249-7442

Certification of Compliance with
Government Code Section 7507
I hereby certify that in accordance with Government Code section 7507, the future annual costs as determined by the California Public Employees’ Retirement System for the increase or change in retirement benefit(s) have been made public at a public meeting of the of the
(governing body) (public agency)
on
(date)
which is at least two weeks prior to the adoption of the Resolution / Ordinance. Adoption of the retirement benefit increase or change will not be placed on the consent calendar.

Clerk/Secretary
Title
Date

Item 15.

CalPERS-2yr Certification-PA
California Public Employees’ Retirement System www.calpers.ca.gov Financial Office | Pension Contracts and Prefunding Programs Division 888 CalPERS (or 888-225-7377) P.O. Box 942703, Sacramento, CA 94229-2703 TTY: (877) 249-7442 Certification of Compliance With
Government Code Section 20903
In accordance with Government Code section 20903 and the contract between the Public Employees' Retirement System, the City Council of the City of Coachella hereby certifies that:

1. Because of an impending curtailment of, or change in the manner of performing service, the best interests of the agency will be served by granting such additional service credit.

2. The added cost to the retirement fund for all eligible employees who retire during the designated window period will be included in the contracting agency’s employer contribution rate for the fiscal year that begins two years after the end of the designated period.

3. It has elected to become subject to section 20903 because of impending mandatory transfers, demotions, and layoffs that constitute at least 1 percent of the job classification, department, or organizational unit, as designated by the governing body, resulting from the curtailment of, or change in the manner of performing, its services.

4. Its intention at the time section 20903 becomes operative is to keep all vacancies created by retirements under this section or at least one vacancy in any position in any department or other organizational unit permanently unfilled thereby resulting in an overall reduction in the work force of such department or organizational unit.

THEREFORE, the City Council of the City of Coachella hereby elects to provide the benefits of Government Code section 20903 to all eligible members who retire within the designated period, _____________________ through _____________________.

CITY COUNCIL
OF THE

CITY OF COACHELLA
BY _______________________________
Presiding Officer
Attest:
______________________________
Clerk/Secretary

Item 15.

STAFF REPORT
7/23/2025
TO: Honorable Mayor and City Council Members
FROM: Kendra Reif, Community Development Director
SUBJECT: City of Coachella 6th Cycle Housing Element proposed amendments to Sections

17.16.020, 17.18.020, 17.18.030, 17.24.020 and 17.24.030 of the Coachella Municipal Code regarding affordable housing developments to bring the city’s 6 th Cycle Housing Element into compliance with state law. City-Initiated STAFF RECOMMENDATION:

Staff recommends that the City Council:

1. Introduce Ordinance No. 1225 approving amendments to the Coachella Municipal Code (C.M.C.) Sections 17.16.020, 17.18.020, 17.18.030, 17.24.020 and 17.24.030 of Title 17 (“Zoning”) to permit certain affordable housing developments by right and amend certain height and density standards for affordable housing developments in order to bring the city’s 6th Cycle Housing Element into compliance with state law.

BACKGROUND:

The City Council adopted the Coachella General Plan 2035 on April 22, 2015, that established the goals, policies, and implementation strategies that will implement the vision for the City of Coachella. The Housing Element is one of seven mandatory elements of a city’s General Plan.

One of the purposes of the Housing Element is to identify and analyze existing and projected housing needs in an effort to preserve, improve and develop housing for all economic segments of the community in accordance with State law. It is the only General Plan element for which State certification is required. State law requires that Housing Elements be updated periodically. As a jurisdiction in the Southern California Association of Governments (SCAG) region, the City of Coachella is required to adopt its updated Housing Element that covers the planning period from October 2021 through October 2029.

A new draft Housing Element was originally prepared in 2021. Since that time, the City has engaged in a series of consultations, workshops, and meetings with housing advocates, developers, local service providers, neighborhood associations, and the community-at-large to solicit input regarding the Element and issues related to its implementation. Further, the City has submitted a number of draft Elements to the State Department of Housing and Community Development

Item 16.
(HCD) for their review and approval, and HCD has suggested a number of proposed amendments to the City for State law compliance.

On July 27, 2023, HCD issued a third findings letter to the City noting the revised draft Element, incorporating prior revisions submitted, met the statutory requirements of State Housing Element Law. On September 13, 2023, the 6th Cycle Housing Element and Negative Declaration/Environmental Assessment were approved by the City Council. On October 2, 2023, the City submitted the Council approved Housing Element to HCD for final certification.

On December 1, 2023, HCD issued a fourth findings letter to the City indicating that while the wording of the Housing Element itself met legal requirements, the Housing Element cannot be found in substantial compliance with State law (and finally certified) until the City has completed necessary amendments to the City’s Zoning Code to implement the updated Element. The city submitted an Electronic Site Inventory List to HCD on May 1, 2025 and it was accepted by HCD on May 1, 2025.

Staff prepared draft amendments to the Zoning Code for HCD’s review and on May 15, 2025 HCD issued a letter accepting all of staff’s draft amendments as being in compliance with State Housing Law to accommodate the lower-income regional housing need allocation (RHNA) pursuant to Government Code section 65585. (Attachment 2).

On July 2, 2025 the Planning Commission unanimously approved Resolution No. 2025-13 recommending the approval of the proposed Zoning Code amendments to the City Council.

DISCUSSION/ANALYSIS:

To bring the City’s 6th Cycle Housing Element into compliance with State law and promote affordable housing in the City, Planning Staff prepared Code amendments to Title 17, Zoning, to permit certain affordable housing developments by right and to amend certain development standards to allow for affordable housing.

The proposed C.M.C. zoning amendments are as follows:

U-E Urban Employment Zone (Chapter 17.16.020), DT-PV Downtown Pueblo Viejo and TRPV Downtown Transition Zones (Chapter 17.18.020), CN Neighborhood Commercial Zone (Chapter 17.24.020)
Permitted uses. Allows for multifamily developments in which at least 20 percent of the units are affordable to lower income households and meet all requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i).

DT-PV Downtown Pueblo Viejo and TR-PV Downtown Transition Zones (Chapter 17.18.30) Property Development Standards. Modifies building height limitation to 5 stories, or seventy-five (75) feet, whichever is less.

Item 16.

CN Neighborhood Commercial (Chapter 17.24.030)
Property Development Standards. Modifies minimum density to 20 dwelling units/acre for multifamily residential uses meeting state requirements and modifies the maximum height limit to four (4) stories or fifty (50) feet, whichever is less.

Once these Zoning Code amendments are approved by the City Council, the City’s 6th Cycle Housing Element will fully comply with State law, allowing the city to implement the new 2021- 2029 Housing Element.

ENVIRONMENTAL REVIEW:

This Ordinance is a “project” subject to the California Environmental Quality Act (CEQA). On April 22, 2015, the City Council adopted the Coachella General Plan 2035 and an Environmental Impact Report (EIR) that analyzed the significant direct and indirect environmental effects of the General Plan 2035. On September 13, 2023, the Coachella City Council adopted a Negative Declaration of Environmental Impact (ND) when it adopted the 6th Cycle Housing Element, which concluded that the Housing Element updates would not result in significant direct or indirect effects to the environment beyond what had already been analyzed. Because this zoning Ordinance merely implements the provisions of the new Housing Element, the conclusions contained in the ND remain sufficient to outline the significant environmental impacts of this Ordinance. No facts or circumstances have significantly changed since adoption of the Housing Element and the ND.

Therefore, no further environmental analysis of this Ordinance is required under CEQA.

ALTERNATIVES:
1) Introduce Ordinance No. 1225 approving amendments to the Coachella Municipal Code (C.M.C.) Sections 17.16.020, 17.18.020, 17.18.030, 17.24.020 and 17.24.030 of Title 17 (“Zoning”) for adoption of the 2021-2029 Housing Element. 2) Introduce Ordinance No. 1225 approving amendments to the Coachella Municipal Code (C.M.C.) Sections 17.16.020, 17.18.020, 17.18.030, 17.24.020 and 17.24.030 of Title 17 (“Zoning”) for adoption of the 2021-2029 Housing Element with amendments. 3) Recommend denial of Ordinance No. 1225.
4) Continue this item and provide staff with direction.

RECOMMENDED ALTERNATIVE(S):

Staff recommends Alternative #1 as noted above.

Attachment:

1. Ordinance No. 1225, Amending Zoning Code to Conform with HCD Approved 6 th Cycle Housing Element
Exhibit B – Draft 6th Cycle Housing Element of the City of Coachella

2. Letter from the California Department of Housing and Community Development (HCD)

Item 16.

ORDINANCE NO. 1225

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
COACHELLA, CALIFORNIA, AMENDING SECTIONS 17.16.020,

17.18.020, 17.18.030, 17.24.020 AND 17.24.030 OF TITLE 17 (“ZONING”) OF

THE COACHELLA MUNICIPAL CODE TO PERMIT CERTAIN

AFFORDABLE HOUSING DEVELOPMENTS BY RIGHT AND TO

AMEND CERTAIN HEIGHT AND DENSITY STANDARDS FOR

AFFORDABLE HOUSING DEVELOPMENTS IN ORDER TO BRING THE
CITY’S 6TH CYCLE HOUSING ELEMENT INTO COMPLIANCE WITH
STATE LAW.

WHEREAS, on September 28, 2021, City planning staff prepared and submitted to the California Department of Housing and Community Development (“HCD”) a first draft of the 6th Cycle Housing Element to the City’s General Plan pursuant to State housing law; and WHEREAS, on November, 24, 2021, HCD responded by indicating that revisions were necessary to the draft 6
th Cycle Housing Element to bring it into compliance with State housing law; and
WHEREAS, throughout 2022 and 2023, the City and HCD exchanged revised drafts and correspondence regarding the draft 6th Cycle Housing Element in an effort to bring it into compliance with State housing law; and
WHEREAS, on September 13, 2023, the Coachella City Council adopted the 6th Cycle Housing Element as part of a General Plan Amendment; and WHEREAS, on December 1, 2023, HCD informed the City that the revised wording of the 6t Cycle Housing Element now met the requirements of State housing law, but that HCD could not find it to be in full compliance with State housing law until the City had completed the required rezoning of land within the City to allow certain affordable housing in order to implement the new Housing Element; and
WHEREAS, this Ordinance is intended to implement the new 6 th Cycle Housing Element
by making certain affordable housing developments permitted uses as of right in the UrbanEmployment (U-E), Downtown-Pueblo Viejo/Downtown-Transitional (DT-PV/TR-PV), and Neighborhood Commercial (C-N) zones within the City, as well as amending certain height and density standards to permit such affordable housing to be developed; and WHEREAS, at a duly noticed public hearing held on July 2, 2025, the City of Coachella Planning Commission recommended that the City Council approve this Ordinance; and WHEREAS, at a duly noticed public hearing held on July 23, 2025, the Coachella City Council reviewed this Ordinance and, after considering all oral and written evidence in the record, introduced this Ordinance on July 23, 2025 and adopted it on July 23, 2025.

Item 16.

Ordinance No. 1225

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COACHELLA, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
(Note: strikeout is deleted text and bold underlined is new text) SECTION 1. AMENDMENT TO MUNICIPAL CODE. Subsection (A) of Section

17.16.020 of Chapter 17.16 of Title 17 of the Coachella Municipal Code is hereby amended to read as follows:
“Title 17. ZONING
Chapter 17.16 – U-E URBAN EMPLOYMENT ZONE
. . . .

17.16.020 - Permitted uses.

The following uses are permitted in the U-E (Urban Employment) zone, subject to all provisions of this chapter:

A. Primary Uses.

1. Office uses of all types, including but not limited to the following:
a. Medical and dental offices.
b. Administrative, business, executive and editorial.
c. Professional offices.
d. Financial, insurance, real estate offices, including banks and related institutions.
e. General offices.

2. Research and Development.

3. Neighborhood retail uses per Chapter 17.24 (C-N Neighborhood Commercial Zone).

4. Restaurants per Chapter 17.24 (C-N Neighborhood Commercial Zone).

5. Artisan manufacturing/flex space.

6. Multi-family dwellings (5+ units), except that no new residential uses are permitted in the area bounded by Avenue 53, Tyler Street, Avenue 54, and Shady Lane.

Item 16.

Ordinance No. 1225

7. Public Utility Facilities (city-initiated).

8. Child nurseries, day care centers.

9. For sites identified to accommodate the lower-income regional housing need allocation, multifamily uses shall be a use by right and permitted without discretionary action for developments in which at least 20 percent of the units are affordable to lower income households and shall meet all requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i), including but not limited to requiring minimum densities of 20 units per acre, allowing 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project. For more information on eligible sites, please see the sites inventory listing at https://www.coachella.org/departments/community-development.” SECTION 2. AMENDMENT TO MUNICIPAL CODE. Subsection (A) of Section

17.18.020 of Chapter 17.18 of Title 17 of the Coachella Municipal Code is hereby amended to read as follows:
“Title 17. ZONING
Chapter 17.18 – DT-PV DOWNTOWN PUEBLO VIEJO AND TR-PV

DOWNTOWN TRANSITION ZONES
. . . .

17.18.020 - Permitted uses.

The following uses are permitted in the DT-PV (Downtown) and TR-PV (Downtown Transition) zones, subject to all provisions of this chapter:

A. Primary Uses.

1. Retail
a) Antique dealers and shop.
b) Art dealers.
c) Art related retail - art and architecture supply shops and studios. d) Beer and/or winemaking supply retail stores.
e) Bookstore.
f) Candle shops.

Item 16.

Ordinance No. 1225

g) Clothing and clothing accessories stores.
h) Collectors’ shops.
i) Cosmetics, beauty supplies and perfume stores.
j) Drugstores or retail pharmacies.
k) Electronics and appliance stores.
l) Flag and banner shops.
m) Florist shops.
n) Fruit and vegetable markets.
o) Hardware stores.
p) Health and personal care stores.
q) Home furnishing stores.
r) Jewelry, luggage, and leather goods stores.
s) Meat, fish, and seafood markets (No on-site slaughtering). t) Office machinery and equipment rental and leasing.
u) Office supplies, stationery, and gift stores.
v) Home security equipment stores.
w) Optical goods stores.
x) Other building materials dealers or retail stores (Except lumber stores, fencing dealers, garage door dealers and prefabricated building dealers – no construction or trade services permitted). y) Paint and wallpaper stores.
z) Pet and pet supply stores.
aa) Photographic services and photofinishing.
bb) Religious goods store.
cc) Restaurants, delicatessens, and other eating establishments (No drive-thru permitted).

Item 16.

Ordinance No. 1225

dd) Retail bakeries.
ee) Specialty food stores (No on-site slaughtering).
ff) Sporting goods, hobby, musical instrument, toy stores. gg) Supermarkets and other grocery stores.
hh) Trophy (including awards and plaques) shops.

2. Lodging
a) Hotels.
b) Resort hotels.
c) Motels.

3. Entertainment (Amusement Arcades - Indoor and Bowling Centers).

4. Office, Professional (Medical, construction, finance, real estate, music and video production, health care, newspaper/media, scientific and technical services other than testing laboratories, event promotions, construction industry, telemarketing/contact centers, banks, finance and insurance retail, social advocacy organizations, informational, Independent Artists, Writers, and Performers, Business Professional, Labor, Political and Similar organizations, Tourist Information Centers, Sound Recording Industries, recreational and youth sport teams).

5. Personal Care Services (Including Day Spas, Depilatory or Electrolysis Salons, Beauty Salons, Saunas, Ear Piercing Services, Steam or Turkish Baths, Hair Replacement or Weaving Services, Tanning Salons, or Permanent Makeup Salons, Hair, Nail and Skin Care Services, Barber Shops).

6. Public/Quasi Public and Institutional Uses (Libraries and Archives, Employment Centers, Educational Services, Business Service Centers, Civic and Social organizations, Fitness and Recreational Sports Centers).

7. Residential (Multi-family of 5+ units).

8. Service - business support services except collection agencies, administrative services, Computer Systems Design and Related Services, Travel Arrangement and Reservation Services, Pet Care Services (Except Animal Shelters, Outdoor Boarding Services, Outdoor Catteries, Dog Pounds, Guard Dog Training Services and Outdoor Kennels, Reupholstery and Furniture Repair, Tailor and Alterations Stores, Jewelry Repair Shops, Dry-Cleaning and Laundry Services (Except Linen and Uniform Supply

Item 16.

Ordinance No. 1225

and Industrial Launderers), Footwear and Leather Goods Repair, Other Personal and Household Goods Repair and Maintenance.

9. Existing single family residential uses built before July 1st, 2019.

10. Public Utility Facilities (City-initiated).

11. For sites identified to accommodate the lower-income regional housing need allocation, multifamily uses shall be a use by right and permitted without discretionary action for developments in which at least 20 percent of the units are affordable to lower income households and shall meet all requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i), including but not limited to requiring minimum densities of 20 units per acre, allowing 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project. For more information on eligible sites, please see the sites inventory listing at https://www.coachella.org/departments/community-development.” SECTION 3. AMENDMENT TO MUNICIPAL CODE. Subsection (A) of Section

17.18.030 of Chapter 17.18 of Title 17 of the Coachella Municipal Code is hereby amended to read as follows:
“Title 17. ZONING
Chapter 17.18 – DT-PV DOWNTOWN PUEBLO VIEJO AND TR-PV

DOWNTOWN TRANSITION ZONES
. . . .

17.18.030 – Property development standards.

The following property development standards shall apply to all land and permitted or conditionally permitted buildings located within their respective Downtown zones.

A. General Development Standards. Table 17.18.030A, Downtown Zone Development Standards, lists the site development standards required for Downtown (DT-PV) and Downtown Transition (TR-PV) Zone projects.

Table 17.18.030A
Development Standards Downtown Zones
Standard DT-PV Downtown Zone DT-PV Downtown
Transition Zone
Residential Density &
Non-residential Intensity
Minimum Density 20 dwelling units/acre No minimum

Item 16.

Ordinance No. 1225

Maximum Density 65 dwelling units/acre 25 dwelling units/acre Maximum Floor Area
Ratio (FAR) for nonresidential uses

3.0 1.5
Lot Area, Minimum -
Standalone commercial
uses or mixed uses
10,000 square feet 5,000 square feet
Lot Area, Minimum -
Multifamily Minimum
5,000 square feet (1) 5,000 square feet1
Lot Frontage, Maximum N/A 70%
Front Yard requirement Where one or both adjoining
zones are zoned residential, the
front yard shall be the average
of the adjoining zones.

The average of front setbacks
for existing structures on the
block face. For all other lots,
the maximum front setback
shall be ten (10) feet. For
corner lots, the side setback
shall be the average setbacks
for existing structures.

Side Yard Requirement Where a DT-PV zone adjoins a
street or residential zone, the
minimum side yard is 10 feet.

Otherwise, no side yard is
required.

Minimum of five 5 feet.
10 feet if adjacent to singlefamily residential use.

Rear Yard Requirement Where the DT-PV zone
adjoins a residential zone, the
minimum rear yard shall be 10
feet.2
No other rear yard is required
except as required by Building
Code.

Minimum 10 feet when
adjoining a residential zone.

Minimum 20 feet when
adjoining a building or
structure in residential use.

Encroachments for
Colonnades or Arcades
Colonnades and/or arcades
may occur forward of the
property line and may
encroach upon the rights of
way if an encroachment permit
is approved by the Department
of Public Works. Colonnades
and/or arcades that encroach
within the rights of way must
not impede pedestrian traffic
Colonnades and/or arcades
may occur forward of the
property line and may
encroach upon the rights of
way if an encroachment permit
is approved by the Department
of Public Works. Colonnades
and/or arcades that encroach
within the rights of way must
not impede pedestrian traffic

Item 16.

Ordinance No. 1225

and be setback a minimum of
six (6) feet from the curb line.

Encroachments are not
permitted on Grapefruit
Boulevard and Cesar Chavez
Street.
and be setback a minimum of
six (6) feet from the curb line.

Encroachments are not
permitted on Grapefruit
Boulevard and Cesar Chavez
Street.

Height Limits –
Building(s)
5 stories or 75 feet, whichever
is less.
4 stories or 50 feet, whichever
is less. 5 stories, or seventyfive (75) feet, whichever is less, except that for
properties adjacent to a
single-family zone, starting
from the third floor up, each
subsequent floor shall be
stepped back by 15 ft for
every two floors.

Height Limits – Accessory
Structure(s)
1 story or 15 feet, whichever
is less.
1 story or 15 feet, whichever
is less.

Stepbacks All buildings exceeding four
stories in height shall require a
minimum of ten (10) foot
additional front setback
(including corner lots) for
stories above the fourth story.3
Adjacent to a single-family
zone, starting from the third
floor up, each floor shall be
stepped back by 15 feet for
every floor. See diagram in
Section 17.16.030 D (1).

All buildings over two stories
shall have a 10foot additional
front setback.

Usable Open Space
Standards
Multifamily developments:
150 square feet total of private
open space per unit minimum.
10 square feet per unit or 1,000
square feet total, whichever is
greater shall be required for
common open space for a
common recreation and/or
leisure area.

Multifamily developments:
150 square feet total per unit
minimum.
120 square feet of private open
space required for ground-level
units
60 square feet of private open
space for upper-level units.
10 square feet per unit or 1,000
square feet total, whichever is
greater required for common
open space for common
recreation/leisure area.

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Ordinance No. 1225

Usable open space may be
provided as private outdoor
living areas, balconies, decks,
or as common recreationalleisure areas4
.

Usable common open space
may extend into the required
front yard to within five feet of
the front lot line5.

Usable open space may be
provided as private outdoor
living areas, balconies, decks,
or as common recreationalleisure areas4
.

Usable common open space
may extend into the required
front yard to within five feet of
the front lot line5.

Public Open Space Development over one-half
(1/2) acre or more in gross
land area, must provide a
minimum of ten (10) percent
of the development for public
open space.6
NA
(1) All development shall maintain existing block sizes. New development without existing streets shall mimic prevailing block dimensions with maximum block lengths no longer than 500 feet. (2) This standard does not apply where zones are separated by an alley. (3) An additional five (5) foot setback for every additional story shall be required on building facades facing 5th or 7th Street.
(4) Except in the case of balconies, such areas shall be landscaped. (5) Subject to the following provisions:
i. No more than forty (40) percent of the required front yard may be so used. ii. No permanent structures, except swimming pools and those structures required by law, shall be permitted in the required front yard.
iii. Such areas shall be screened from the street and adjacent properties by landscaping and/or decorative fencing of a maximum height of forty-two (42) inches, except where a greater height is required by law.
iv. The remaining portion of the required front yard, except for access drives and walks, shall be landscaped and maintained. "
(6) Public open space must be accessible from the public realm. Applicant may make a payment to the City in lieu of public space reservation for larger park or plaza development within the Pueblo Viejo upon approval of the Planning Director or their designee.”
SECTION 4. AMENDMENT TO MUNICIPAL CODE. Subsection (A) of Section

17.24.020 of Chapter 17.24 of Title 17 of the Coachella Municipal Code is hereby amended to read as follows:
“Title 17. ZONING
Chapter 17.24 – CN – NEIGHBORHOOD COMMERCIAL ZONE
. . . .

Item 16.

Ordinance No. 1225

17.24.020 - Permitted uses.

The following uses are permitted in the C-N (Neighborhood Commercial) zone, subject to all provisions of this chapter:

A. Primary Uses.

1. Local retail businesses primarily intended to serve the immediate neighborhood, provided that no one use shall exceed ten thousand (10,000) square feet of floor area, including the following:
a. Grocery, fruit, or vegetable store; meat market.
b. Meat, fish, or dressed poultry (no live poultry) sales. c. Bakery.
d. Drugstore.
e. Hardware store.
f. Restaurant, café, or soda fountain, not including entertainment, dancing, sale of liquor, beer, or other alcoholic beverages.

2. Local service businesses primarily intended to serve the immediate neighborhood, including the following:
a. Barber or beauty shop.
b. Child care centers.
c. Clothes cleaning and laundry pickup stations, laundromat, coinoperated dry-cleaning establishment. d. Offices of physicians, dentists, optometrists, chiropractors, accountants, and realtors.
e. Tailor, dressmaker.

3. Multi-tenant retail, up to 35,000 square feet of floor area.

4. Public Utility Facilities (City-initiated).

5. Existing single family residential uses built before the date of this adoption.

6. For sites identified to accommodate the lower-income regional housing need allocation, multifamily uses shall be a use by right and permitted without discretionary action for developments in which at least 20 percent of the units are affordable to lower income households and shall meet all requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i), including but not limited to requiring minimum densities of 20 units per acre, allowing 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project. For more information on eligible sites, please see the sites inventory listing at https://www.coachella.org/departments/community-development.”

Item 16.

Ordinance No. 1225

SECTION 5. AMENDMENT TO MUNICIPAL CODE. Subsections (A) and (D) of Section 17.24.030 of Chapter 17.24 of Title 17 of the Coachella Municipal Code are hereby amended to read as follows:
“Title 17. ZONING
Chapter 17.24 – CN – NEIGHBORHOOD COMMERCIAL ZONE
. . . .

17.24.030 – Property development standards.

The following standards of development shall apply in the C-N (Neighborhood Commercial) zone:

A. Residential Density and Non-Residential Intensity.

1. Minimum Density. 15 dwelling units/acre, when residential uses are provided. 20 dwelling units/acre for multifamily residential uses meeting state requirements.

2. Maximum Density. 40 dwelling units/acre.

3. Maximum FAR. 1.5.
. . . .

D. Height Limit. The maximum height of any building or structure shall be three four stories or fifty (50) feet, whichever is less.”
SECTION 6. SEVERABILITY. If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.

SECTION 7. EFFECTIVE DATE. This Ordinance shall become effective thirty (30) days from its adoption.

SECTION 8. CEQA. This Ordinance is a “project” subject to the California Environmental Quality Act (CEQA). On September 13, 2023, the Coachella City Council adopted a Negative Declaration (ND) when it adopted the 6th Cycle Housing Element (State Clearing House #2022100424), which analyzed the significant environmental impacts resulting from adoption of the new Housing Element. Because this zoning Ordinance merely implements the provisions of the new Housing Element, the analysis contained in the ND remains sufficient to outline the significant environmental impacts of this Ordinance. No facts or circumstances have significantly

Item 16.

Ordinance No. 1225

changed since adoption of the Housing Element and the ND. Therefore, no further environmental analysis of this Ordinance is required under CEQA.

SECTION 9. PUBLICATION. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published in a newspaper of general circulation printed and published within the City of Coachella, pursuant to all legal requirements.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Coachella on the 23rd day of July, 2025.
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER
___________________________________
City Attorney

Item 16.

Ordinance No. 1225

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Ordinance No. 1225 was duly and regularly introduced at a meeting of the City Council on the 23rd day of July 2025.

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk

Item 16.

Item 16.

Item 16.
1 | City of Coachella 2021-2029 Housing Element
Contents
Contents........................................................................................................................................1 Section I Introduction............................................................................................................3 I.A Community Context...............................................................................................3 I.B Housing Element Purpose.....................................................................................3 I.C Organization of the Housing Element....................................................................4 I.D Data Sources and Methods...................................................................................6 I.E Summary of Public Participation............................................................................6 I.F Affirmatively Furthering Fair Housing ..................................................................12 I.G Relationship to Other General Plan Elements.....................................................14 I.H Other Statutory Requirements.............................................................................14 Section II Projected Housing Need .....................................................................................15 II.A Introduction/Overview of SCAG Methodology.....................................................15 II.B Riverside County Income Limits..........................................................................15 II.C Regional Housing Needs Allocation ....................................................................16 Section III Housing Resources .............................................................................................16 III.A Introduction..........................................................................................................16 III.B Land Resources ..............................................................................................1617 III.C Financial and Administrative Resources .............................................................18 III.D Opportunities for Energy Conservation ...........................................................2122 Section IV Housing Plan .......................................................................................................23 Introduction ...........................................................................................................................23 Goal A: Facilitate the Development of a Variety of Housing Types to Provide Adequate Housing in the City to all Households..............................................................2324 Goal B: Conserve and Improve the Condition of the Existing Housing Stock...................2729 Goal C: Encourage Energy Conservation to Reduce Housing Costs ...............................3131 Goal D: Promote Fair Housing Opportunity for All Persons [regardless of race, religion, marital status, age, sex, gender, nationality, physical or developmental disability, family size, and level and source of income]...................................................3232 Goal E: Remove Constraints to the Maintenance, Improvement, and Development of Housing ...........................................................................................................3333 Goal F: Promote Affordable Housing to Meet the Needs of Lower- and Moderate-Income Households .....................................................................................................3636

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2021-2029 Housing Element City of Coachella | 2
Goal G: Preserve Existing Affordable Housing Opportunities for Lower Income Residents of the City ............................................................................................................3838 Quantified Objectives........................................................................................................4139 Appendices
Appendix A: Housing Needs Assessment…………………………………………………….…..A-1 Appendix B: Sites Inventory and Methodology…………………………………………………...B-1 Appendix C: Housing Constraints………………………………………………………………….C-1 Appendix D: Existing Programs Review…………………………………………………………..D-1 Appendix E: Public Participation Summaries……………………………………………………..E-1 Appendix F: Affirmatively Furthering Fair Housing……………………………………………….F-1

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3 | City of Coachella 2021-2029 Housing Element
Section I Introduction
I.A Community Context
Founded in 1876 and incorporated in 1946, Coachella is a desert community located at the eastern end of the Coachella Valley in Riverside County, California. The city is located southeast of the San Gorgonio Pass, east of the San Jacinto and Santa Rosa Mountains, and north of the Salton Sea. Interstate 10 runs the length of the Coachella Valley, connecting Coachella with nearby cities and the Southern California region.

Residential land accounts for 3% of the city, with the majority of its 47,000 residents concentrated west of State Route 111. The city’s two main retail and commercial corridors are Cesar Chavez Street (formerly U.S. Route 99) and Grapefruit Boulevard (State Route 111). Agricultural uses comprise about one-third of the city, while just over half of Coachella is undeveloped land. 98% of Coachella’s residents are Hispanic or Latino. The city is officially bilingual in both English and Spanish. Coachella celebrates a strong cultural identity and is a tightly knit community, one that played a key role in fostering parts of the farmworker revolution during the 1960s that shaped the agricultural industry in immeasurable ways. Coachella’s vision is to transform into a mediumsized, full-service city with a range of amenities and economic opportunities beyond its two main industries of agriculture and hospitality. The city is growing rapidly, but the community intends to maintain its social cohesion and sense of identity as the City expands.

I.B Housing Element Purpose
The State of California has stated that the availability of decent and suitable housing for every California family is “a priority of the highest order” (California Government Code §54220). This objective has become increasingly urgent in recent years as communities across the state, including Coachella, struggle to meet the housing needs of all their residents. State Housing Element Law, established in 1969, recognizes the vital role local governments play in the supply and affordability of housing and requires all cities and counties in California establish a long-range plan to meet their fair share of regional housing needs. Cities are charged with planning for the welfare of their citizens, including ensuring that the existing and projected demands for housing are adequately met.

High housing costs — and related housing instability issues — increase health care costs (for individuals and the state), decrease educational outcomes (affecting individuals, as well as the state’s productivity), and make it difficult for California businesses to attract and retain employees.
– State of California 2025 Statewide Housing Assessment

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2021-2029 Housing Element City of Coachella | 4
The Housing Element is the primary tool used by the State to ensure local governments are appropriately planning for and accommodating enough housing across all income levels. This Housing Element covers the planning period 2021-2029. The Housing Element is a mandatory part of a jurisdiction’s General Plan but differs from other General Plan elements in two key aspects. The housing element must be updated every eight years for jurisdictions within a metropolitan planning organization (MPO) on a 4-year regional transportation plan (RTP) cycle, such as the Southern California Association of Governments (SCAG). The housing element must also be reviewed and approved (i.e., certified) by the California Department of Housing and Community Development (HCD) to ensure compliance with statutory requirements.

At the time of publication, the COVID-19 crisis has impacted Coachella in significant ways. This has made the issue of housing security even more acute as residents face job loss, housing cost pressures, and disparate health impacts from the pandemic. On a practical level, the housing element has had to respond to these conditions by transitioning the public outreach process to reflect the limitations brought on by COVID-19. These actions are detailed in this report. From a policy perspective, the impact on housing security has shown that many of Coachella’s residents have only tenuous access to housing and the need to secure more housing alternatives for all members of Coachella’s populations.

I.C Organization of the Housing Element
Per California Government Code §65580-65589, a housing element must consist of the following components:
• Review of the Previous Housing Element: An evaluation of the results of the goals, policies, and programs adopted in the previous Housing Element that compares projected outcomes with actual achieved results.

The results of this assessment are located in Appendix D. • Housing Needs Assessment: An analysis of the existing and projected housing needs of the community. It provides a profile of sociodemographic information, such as population characteristics, household information, housing stock, tenure, and housing affordability. The assessment also considers local special housing needs, such as, seniors, farmworkers, homeless, large households, and female-headed households. The analysis is provided in Appendix A.

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5 | City of Coachella 2021-2029 Housing Element
• Inventory of Adequate Sites: An inventory listing adequate sites that are suitably zoned and available within the planning period to meet the City’s fair share of regional housing needs across all income levels. The inventory is summarized in Section 3, with the detailed analysis in Appendix B.
• Housing Resources: An identification of resources to support the development, preservation, and rehabilitation of housing. Non-land resources are summarized in Section 3.
• Housing Constraints: An assessment of impediments to housing production across all income levels covering both governmental (e.g., zoning, fees, etc.) and nongovernmental (e.g., market, environmental, etc.). This analysis is provided in Appendix C.
• Affirmatively Furthering Fair Housing: This section provides an assessment of fair housing by identifying disparities in housing needs, unequal access to opportunity, and/or patterns of racial and ethnic segregation, a process referred to as affirmatively furthering fair housing (AFFH). See Section 1.F, below, and Appendix F. This assessment meets AB 686 requirements for all housing elements due to be revised on or after January 1, 2021 • Housing Plan: This section provides a statement of the community’s goals, quantified objectives, and policies to maintain, preserve, improve, and develop housing, as well as a schedule of implementable actions to be taken during the planning period to achieve the goals, objectives, and policies. Quantified objectives for new construction, rehabilitation, and conserved units by income category (i.e., very low, low, moderate, and above moderate) are included to make sure that both the existing and the projected housing needs are met, consistent with the City’s share of the Regional Housing Needs Allocation (RHNA).

Section II provides a summary of the projected housing need. Section III summarizes the adequacy of housing sites and identifies housing resources. Section IV contains the housing plan.

The comprehensive research and analysis supporting the development of Section IV, Housing Plan, are compiled in appendices to this Housing Element. These appendices contain the full set of information used to inform the City’s goals, policies, and programs:

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2021-2029 Housing Element City of Coachella | 6
• Appendix A: Housing Needs Assessment
• Appendix B: Sites Inventory and Methodology
• Appendix C: Housing Constraints
• Appendix D: Existing Programs Review
• Appendix E: Public Participation Summaries
• Appendix F: Affirmatively Furthering Fair Housing
I.D Data Sources and Methods
This Housing Element was updated in accordance with California Department of Housing and Community Development (HCD) guidelines for the 6th Housing Element Cycle, incorporating additional considerations required under new State housing-related legislation. Specific documents are referenced throughout the Housing Element, including but not limited to the Coachella 2015 General Plan, Zoning Code, and the Vista Del Agua and La Entrada Specific Plans. The analyses and findings in this document relied on data compiled from various sources, including:
• US Census Bureau (American Community Survey)
• California Department of Housing and Community Development (HCD) • California Department of Finance (DOF)
• US Department of Housing and Urban Development (HUD)
• Consumer Financial Protection Bureau (CFPB)
• Southern California Association of Governments (SCAG) pre-certified data This document was also informed by information provided by residents, business groups, local institutions, City staff, and elected officials.

I.E Summary of Public Participation
Public participation is crucial in shaping Coachella’s housing strategy. Understanding the needs of the community enables the development of housing strategies that are most appropriate and effective. Public outreach also allows the City to identify concerns unique to certain stakeholders that may not have been initially apparent. As part of the development of this Housing Element, the City’s public participation program included two focus group meetings, four steering committee meetings, one community-wide meeting, one public hearing with the Planning Commission, and one public hearing with the City Council. For summaries of public outreach events including attendees, discussion topics, and meeting format, please see Appendix E.

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7 | City of Coachella 2021-2029 Housing Element
During the public outreach sessions, the City documented prominent comments and concerns.

These were taken into consideration when the goals and programs of the Housing Element were created. Concerns about resident displacement, inclusionary zoning, and climate change mitigation were expressed. These concerns were translated into action items seen in Program

7.1, Program 7.2, and Program 3.1.

Other concerns included workforce housing needs and efforts to streamline affordable housing development. Program 1.10 and Program 5.10 focus directly on workforce housing, specifically farmworkers. Developmental streamlines for affordable housing – in Program 6.2 and Program

6.7. The community outreach process also identified concerns regarding constraints that affect housing type and income diversity in the city. The community mentioned that sites should be chosen strategically to avoid creating income segregation, which prompted the City to reevaluate the site inventory and consider additional sites for housing. Affordable housing incentives and flexibility for developers were strategies to promote housing. In response, the City includes programs such as Program 1.8, Program 2.7, and Program 6.4. Website The Housing Element Update webpage (https://www.coachellahousingelement.com/) was used to provide an overview of the Housing Element update process and timeline, resources for Housing Element information (e.g., meeting notices, draft documents, etc.), and provide City contact information. Interested parties could sign up to receive information about upcoming meetings and documents. The website was available in English and Spanish (translated).

Focus Groups
The City conducted two focus group meetings in preparation of the Housing Element update:
• Focus Group #1: Wednesday, April 21, 2021, 5:00 pm – 6:00 pm • Focus Group #2: Friday, April 23, 2021, 1:30pm – 2:30pm Due to the ongoing COVID-19 crisis, the focus groups were held over webinar. Invitations were distributed to 51 individuals representing multiple stakeholder groups (See Appendix E for list of contacted groups). Of the 11 individuals who RSVP’d, 8 participants attended. Follow up meetings were offered to individuals who RSVP’d and did not participate, although no stakeholder responded to this offer. Comments received are documented in Appendix E and summarized below.
• Underserved groups tend to be low-income individuals, older individuals, full time and seasonal agriculture workers, Native Americans, and families and households with mixed immigration status.
• There is a need and an interest in creating workforce housing, especially housing for farmworkers to remain near the farms.

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2021-2029 Housing Element City of Coachella | 8
• There needs to be a better integration of various income level housing opportunities throughout the City.
• Development standards need to be reevaluated to increase flexibility in housing production. Participants have shown desire to reduce setbacks, up zone areas, and create more mixed-use opportunities in the City’s Downtown.
• Affordable housing developers have difficulty meeting state and federal funding requirements because of the City’s density restrictions and other limitations (parking, height limits, Floor Area Ratio restrictions, etc.) as well as the availability of suitable sites in proximity to other factors (e.g., proximity to transit and services). • The City works well with non-profit developers to streamline approvals, when possible.

City has helped utilized SB35 streamlining.

Steering Committee
The City formed a housing steering committee consisting of eight members representing a variety of interests and expertise.

Meeting #1 (July 2021)
On July 26, 2021, the City conducted the first steering committee meeting via Zoom.

The purpose of the meeting was to introduce the Housing Element update, outline the role of the steering committee, and facilitate a discussion regarding committee member concerns, observations, and goals for housing development in Coachella. Committee members are tasked with representing a variety of perspectives and interests; consensus housing goals, objectives, or constraints is not necessary. Initial comments included:
• Building denser, affordable housing is difficult given the higher cost of such development typologies
• Current market-rate rents are not high enough to absorb added costs without outside sources of funding
• Future projects would benefit from lowering development costs and increasing certainty for developers, e.g., shortening the entitlement timeline, streamlining the process, and allowing smaller lots by-right
Meeting #2 (August 2021)
On August 16, 2021, the City conducted the second steering committee meeting via Zoom. The City and Consultant team presented an overview of the technical requirements of the Housing Element and the draft goals and policies for the 6th Cycle Housing Element. The steering committee members were provided with memos with initial results from the needs assessment, governmental constraints assessment, draft sites inventory, and preliminary housing plan for review in advance of the meeting. The City and team facilitated discussions on the technical assessment findings and the draft implementation plan. Discussion included:

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9 | City of Coachella 2021-2029 Housing Element
• How to eliminate development constraints, such as minimum street widths and setback requirements
• Need for affordable housing incentives for both for-profit and non-profit developers (both developers should collaborate to access financing options) • Include a program or policy to reduce developer uncertainty through reducing/removing CEQA requirements, expediting the development review process, etc.
• The need for community amenities such as a senior center close to residential development
• What can the City do to be more competitive in federal funding for affordable housing projects (based on ranking criteria)?
• Meeting #3 (August 2021)
• On August 27, 2021, the City conducted the third steering committee meeting via Zoom.

The City facilitated a discussion with the committee and focused on Housing Element goals and policies and preparations for the upcoming workshop.

Community Events
The City conducted one community-wide event to solicit input on housing needs:
• Virtual Workshop, October 14, 2021
On October 14, 2021, the City of Coachella hosted a virtual public workshop for the 6th Cycle Housing Element Update project. Gabriel Perez, Development Services Director, opened the meeting and explained the intent of the workshop is to provide information about the Housing Element Update process and answer questions. The presentation was available in English and live Spanish translation. Director Perez introduced additional City staff and the Consultant Team, Lisa Wise Consulting Inc. (LWC). The presentation addressed the following topics:

1. Housing Element Overview

2. Process and Public Outreach

3. Housing Needs and Conditions in Coachella

4. Public Review Draft Housing Element

5. Next Steps for the Coachella Housing Element Update

6. Questions and Discussion
Due to the ongoing COVID-19 crisis, the community event was held as a webinar. Notifications of the community event were distributed in English and Spanish to the City’s email database.

Approximately 20 participants attended. Comments received are documented in Appendix E and summarized below.
• How can interested persons participate in the Housing Element Update process? There are many ways to participate in the Housing Element Update process. The steering committee meetings included non-profit and for-profit developers, faith-based groups, and the housing authority, among others.