Coachella City Council
August 6, 2025

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

CITY COUNCIL SPECIAL MEETING

OF THE CITY OF COACHELLA

THE COUNCIL SITTING AS THE COACHELLA SANITARY DISTRICT,

COACHELLA FIRE PROTECTION DISTRICT, COACHELLA FINANCING AUTHORITY,

COACHELLA EDUCATIONAL AND GOVERNMENTAL ACCESS CABLE CHANNEL CORPORATION,

COACHELLA WATER AUTHORITY, SUCCESSOR AGENCY TO THE COACHELLA REDEVELOPMENT AGENCY

AND COACHELLA PARKS AND RECREATION FOUNDATION
August 06, 2025
6:00 PM-Special Meeting
In-Person Meeting
Location:

Coachella City Hall
Council Chamber
1515 Sixth Street
Coachella, CA
If you would like to attend the meeting via Zoom, here is the link:
https://us02web.zoom.us/j/88457271898?pwd=REdzU1NoQmpVSFhWTDVaZ0VCekYxdz09 Or One tap mobile : 16699006833,,88457271898#,,,,*606140# Or Telephone:

US: +1 669 900 6833
Webinar ID: 884 5727 1898
Passcode: 606140
Spanish: El idioma español está disponible en Zoom seleccionado la opción en la parte de abajo de la pantalla
 Public comments may be received either in person, via email, or via Zoom. o In Person:

Anyone wishing to speak in person during the public comment period or on a particular item is required to fill out a Request to Speak Form. In order to be recognized, a Request to Speak Form must be turned in to the City Clerk prior to the start of the public comment period or before the agenda item is taken up by Council on which you wish to provide a comment.
o In Real Time via Zoom:

If participating in real time via Zoom, during the public comment period, participants must be visible on camera and use the “raise hand” function on Zoom.
o In Writing via Email:

If providing a written comment by email, you may submit your public comment to the City Council by emailing [email protected]. To comment by email, submit your comments no later than 12 p.m. on the day of the meeting by emailing your name, agenda item (if applicable), and your comment. Any correspondence received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter, during the meeting and upon request one (1) hard copy of the written public comments will be available for the public’s view, and written comments will be retained for the official records. Written comments will not be read aloud at City Council meetings.

Agenda City Council Special Meeting August 06, 2025

 The live stream of the meeting may be viewed online by accessing the city's website at www.coachella.org, and clicking on the "Watch Council Meetings" tab located on the home page, and then clicking on the "live" button.

CALL TO ORDER: - 6:00 P.M.

ROLL CALL:

APPROVAL OF AGENDA:
“At this time the Council/ Board/Corporation/Authority may announce any items being pulled from the Agenda or continued to another date or request the moving of an item on the agenda” PLEDGE OF ALLEGIANCE:

PROCLAMATIONS/PRESENTATIONS/DIRECTION:

1. Proclamation Recognizing Employment Month
WRITTEN COMMUNICATIONS:

PUBLIC COMMENTS (NON-AGENDA ITEMS) (LIMITED TO A MAXIMUM OF 30 MINUTES. IF ADDITIONAL TIME IS REQUIRED FOR PUBLIC COMMENTS, THEY WILL BE HEARD AFTER ITEM NO.15 PUBLIC HEARING CALENDAR):

CONSENT CALENDAR:

2. Regular Meeting Minutes of July 23, 2025, of the City of Coachella, Coachella Sanitary District, Coachella Fire Protection District, Coachella Financing Authority, Coachella Educational and Governmental Access Cable Corporation, Coachella Water Authority, Successor Agency to the Coachella Redevelopment Agency and Coachella Parks and Recreation

3. Voucher Listing- EFT's/Manual Checks/FY 2024-25 and FY 2025-26 Expenditures as of August 6, 2025, $7,840,877.34

4. Investment Report – June 30, 2025

5. Amendment #4 to Construction Agreement with WGJ Enterprises Inc. (dba PCI) for the FY 2023-26 OnCall Striping Contract Project No. 083122 in an Amount Not-to-Exceed $100,000

6. Cooperative Agreement with State of California Department of Transportation for the SR86/Avenue 50 Interchange Project (ST-81).

7. Authorize Amendment #1 to the Professional Services Agreement with Citiguard Inc. for Security Guard Services Project No. 082224 in the amount of $60,000

8. Establish the Appropriations Limits for Fiscal Year 2025-26

Agenda City Council Special Meeting August 06, 2025

Adopt Resolution No. 2025-45, Establishing the Appropriations Limit for the City of Coachella for the Fiscal Year 2025-26;
Adopt Resolution No. SD-2025-04, Establishing the Appropriations Limit for the Coachella Sanitary District for the Fiscal Year 2025-26;
Adopt Resolution No. FD-2025-03, Establishing the Appropriations Limit for the Coachella Fire Protection District for the Fiscal Year 2025-26

9. Approval of Agreement Between the City of Coachella and Teamsters Local 1932 – Water & Sanitation/Utilities Employees Purpose: To Approve the Results of the Base Compensation Salary Study for Utility Operations
NEW BUSINESS CALENDAR (LEGISLATIVE AND ADMINISTRATIVE):

10. Approve a Sponsorship Request from the Codex Creation Committee for the 2025 Run With Los Muertos Event in the Amount of $45,000 and Authorize the Operation of a Beer Garden on November 1, 2025 in Downtown Sixth Street from 4:00 PM to 12:00 PM

11. Approve a Sponsorship Request for Raices Cultura for their 2025 Dia de los Muertos Celebration in the Amount of $20,000

12. Approve a Sponsorship Request for the 2025 Synergy Zine and Live Art Festival by Culturas Music and Arts in the Amount of $20,100

13. 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

14. Annual Budget and Organizational Structure for Fiscal Year 2025-2026:

Resolution No. 2025-44 Adopting an Annual Budget and Organizational Structure for the City of Coachella for Fiscal Year 2025-2026
Resolution No. FD-2025-02, Adopting an Annual Budget and Organizational Structure for the Coachella Fire Protection District for Fiscal Year 2025-2026
Resolution No. SD-2025-03, Adopting an Annual Budget and Organizational Structure for the Coachella Sanitary District for Fiscal Year 2025-2026
Resolution No. WA-2025-02, Adopting an Annual Budget and Organizational Structure for the Coachella Water Authority for Fiscal Year 2025-2026
PUBLIC HEARING CALENDAR (QUASI-JUDICIAL):

NONE
REPORTS AND REQUESTS:

Agenda City Council Special Meeting August 06, 2025

Council Comments/Report of Miscellaneous Committees.

City Manager’s Comments.

ADJOURNMENT:

Complete Agenda Packets are available for public inspection at the City Clerk’s Office at 53-462 Enterprise Way, Coachella, California, and on the City’s website www.coachella.org.

THIS MEETING IS ACCESSIBLE TO PERSONS WITH DISABILITIES

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

MINUTES

CITY COUNCIL CLOSED SESSION AND

REGULAR MEETING

OF THE CITY OF COACHELLA

THE COUNCIL SITTING AS THE COACHELLA SANITARY DISTRICT,

COACHELLA FIRE PROTECTION DISTRICT, COACHELLA FINANCING AUTHORITY,

COACHELLA EDUCATIONAL AND GOVERNMENTAL ACCESS CABLE CHANNEL CORPORATION,

COACHELLA WATER AUTHORITY, SUCCESSOR AGENCY TO THE COACHELLA REDEVELOPMENT AGENCY

AND COACHELLA PARKS AND RECREATION FOUNDATION
July 23, 2025
5:00 PM – CLOSED SESSION
6:00 PM – REGULAR MEETING
In-Person Meeting
Location:

Coachella City Hall
Council Chamber
1515 Sixth Street
Coachella, CA
If you would like to attend the meeting via Zoom, here is the link:
https://us02web.zoom.us/j/88457271898?pwd=REdzU1NoQmpVSFhWTDVaZ0VCekYxdz09 Or One tap mobile : 16699006833,,88457271898#,,,,*606140# Or Telephone:

US: +1 669 900 6833
Webinar ID: 884 5727 1898
Passcode: 606140
Spanish: El idioma español está disponible en Zoom seleccionado la opción en la parte de abajo de la pantalla
 Public comments may be received either in person, via email, or via Zoom. o In Person:

Anyone wishing to speak in person during the public comment period or on a particular item is required to fill out a Request to Speak Form. In order to be recognized, a Request to Speak Form must be turned in to the City Clerk prior to the start of the public comment period or before the agenda item is taken up by Council on which you wish to provide a comment.
o In Real Time via Zoom:

If participating in real time via Zoom, during the public comment period, participants must be visible on camera and use the “raise hand” function on Zoom.
o In Writing via Email:

If providing a written comment by email, you may submit your public comment to the City Council by emailing [email protected]. To comment by email, submit your comments no later than 12 p.m. on the day of the meeting by emailing your name, agenda item (if applicable), and your comment. Any correspondence received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter, during the meeting and upon request one (1) hard copy of the written

Item 2.

Minutes City Council Closed Session and Regular Meeting July 23, 2025

public comments will be available for the public’s view, and written comments will be retained for the official records. Written comments will not be read aloud at City Council meetings.  The live stream of the meeting may be viewed online by accessing the city's website at www.coachella.org, and clicking on the "Watch Council Meetings" tab located on the home page, and then clicking on the "live" button.

CALL TO ORDER: - 5:00 P.M.

Mayor Hernandez called the City Council Closed Session and Regular Meeting of the City of Coachella to order at 5:00 p.m. via Zoom and left the meeting at 6:00 p.m.

ROLL CALL:

Present: Councilmember Perez, Councilmember Dr. Figueroa, Mayor Pro Tem Delgado (arrived at 5:10 p.m.), and Mayor Hernandez
City Treasurer

Absent: Councilmember Virgen and City Clerk
APPROVAL OF AGENDA:
“At this time the Council/ Board/Corporation/Authority may announce any items being pulled from the Agenda or continued to another date or request the moving of an item on the agenda” Motion: To approve the agenda
Made by: Councilmember Dr. Figueroa
Seconded by: Councilmember Perez
Approved: 3-0:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, and Mayor Pro Tem Delgado NOES: None
ABSTAIN: None
ABSENT: Councilmember Virgen, and Mayor Hernandez
PUBLIC COMMENTS (CLOSED SESSION ITEMS):

None
ADJOURN TO CLOSED SESSION:

1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Section 54957(b)(1)) Title: City Manager

Item 2.

Minutes City Council Closed Session and Regular Meeting July 23, 2025

RECONVENE REGULAR MEETING: - 6:00 P.M.

The City Council reconvened into open session at 6:03 p.m.

PLEDGE OF ALLEGIANCE:

Councilmember Dr. Figueroa led the Pledge of Allegiance.

CLOSED SESSION ANNOUNCEMENTS:

No reportable action taken.

PROCLAMATIONS/PRESENTATIONS/DIRECTION:

2. Coachella Rail Station Feasibility Study and Integrated Land Use and Transit Network WRITTEN COMMUNICATIONS:

None
PUBLIC COMMENTS (NON-AGENDA ITEMS) (LIMITED TO A MAXIMUM OF 30 MINUTES. IF ADDITIONAL TIME IS REQUIRED FOR PUBLIC COMMENTS, THEY WILL BE HEARD AFTER ITEM NO. 15. PUBLIC HEARING CALENDAR):

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

None
CONSENT CALENDAR:
(It is recommended that Consent Items be acted upon simultaneously unless separate discussion and/or action is requested by a Council Member.)

3. Regular Meeting Minutes of July 9, 2025, of the City of Coachella, Coachella Sanitary District, Coachella Fire Protection District, Coachella Financing Authority, Coachella Educational and Governmental Access Cable Corporation, Coachella Water Authority, Successor Agency to the Coachella Redevelopment Agency and Coachella Parks and Recreation

4. Voucher Listing- EFT's/Utility Billing Refunds/FY 2024-25 and 2025-26 Expenditures as of July 23, 2025, $4,118,797.53

5. Investment Report – May 31, 2025

6. Quarterly Reports - Fourth Quarter (April - June) FY2024-2025

Item 2.

Minutes City Council Closed Session and Regular Meeting July 23, 2025

7. Authorize the City Manager to Execute an Agreement with Coachella Valley Water District (CVWD) to Protect and Construct CVWD Facilities as a Result of the Construction of a New Bridge Over Whitewater Channel at Avenue 50, City Project ST-69

8. Determine the Avenue 53 Tot Lot Park Project, City Project P-29 to be Categorically Exempt from CEQA per Section 15301 of the CCR and Authorize City Staff to File a Notice of Exemption

9. Adopt Resolution No. 2025-40 Recognizing the Adopted Local Hazard Mitigation Plan (LHMP) into the Safety Element of the General Plan as Required By Assembly Bill No. 2140

10. Authorization to file a Notice of Completion for the Westerfield Retention Basin Landscape Improvements, City Project No. 111924

11. Authorize the 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

12. Authorization to file a Notice of Completion for City Project No. S-18, Tyler Street Sewer Improvements

13. 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 Motion: To approve the Consent Calendar
Made by: Councilmember Dr. Figueroa
Seconded by: Councilmember Perez
Approved: 3-0:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, and Mayor Pro Tem Delgado NOES: None
ABSTAIN: None
ABSENT: Councilmember Virgen and Mayor Hernandez
NEW BUSINESS CALENDAR (LEGISLATIVE AND ADMINISTRATIVE):

14. 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
Motion: To 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

Item 2.

Minutes City Council Closed Session and Regular Meeting July 23, 2025

Made by: Councilmember Dr. Figueroa
Seconded by: Councilmember Perez
Approved: 3-0:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, and Mayor Pro Tem Delgado NOES: None
ABSTAIN: None
ABSENT: Councilmember Virgen and Mayor Hernandez

15. 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 Motion: To continue item #15 to next Council meeting on August 6, 2025 Made by: Councilmember Perez
Seconded by: Mayor Pro Tem Delgado
Approved: 3-0:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, and Mayor Pro Tem Delgado NOES: None
ABSTAIN: None
ABSENT: Councilmember Virgen and Mayor Hernandez
PUBLIC HEARING CALENDAR (QUASI-JUDICIAL):

16. Introduce Ordinance No. 1225 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 Ament 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 Motion: To introduce and Waive further Reading of Ordinance No. 1225 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 Ament 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 Public Hearing opened at 6:27 p.m. and closed at 6:28 p.m.

Made by: Councilmember Dr. Figueroa
Seconded by: Councilmember Perez
Approved: 3-0:

Item 2.

Minutes City Council Closed Session and Regular Meeting July 23, 2025

AYES: Councilmember Perez, Councilmember Dr. Figueroa, and Mayor Pro Tem Delgado NOES: None
ABSTAIN: None
ABSENT: Councilmember Virgen and Mayor Hernandez

17. Adopt Resolution No. SD-2025-02 Authorizing the Collection of Residential Sanitary Sewer Rates for Fiscal Year 2025/2026 Through the County of Riverside Tax Roll at the Same Time and Manner as General Taxes
Public Hearing opened at 6:29 p.m. and closed at 6:30 p.m.

Motion: To Adopt Resolution No. SD-2025-02 Authorizing the Collection of Residential Sanitary Sewer Rates for Fiscal Year 2025/2026 Through the County of Riverside Tax Roll at the Same Time and Manner as General Taxes
Made by: Councilmember Dr. Figueroa
Seconded by: Councilmember Perez
Approved: 3-0:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, and Mayor Pro Tem Delgado NOES: None
ABSTAIN: None
ABSENT: Councilmember Virgen and Mayor Hernandez
REPORTS AND REQUESTS:

Council Comments/Report of Miscellaneous Committees.

City Manager’s Comments.

ADJOURNMENT:

Mayor Pro Tem Delgado adjourned the meeting at 6:41 p.m. ____________________________________
Delia Granados
Deputy City Clerk

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Item 3.

STAFF REPORT
8/6/2025
TO: Honorable Mayor and City Council Members
FROM: Ruben Ramirez, Controller
SUBJECT: Investment Report – June 30, 2025
STAFF RECOMMENDATION:

Staff recommends that the City Council receive and file the investment report for June 2025.

EXECUTIVE SUMMARY:

On June 12, 2024, the City of Coachella along with its component units (Sanitary District, Educational & Governmental Access Cable Corporation, Fire Protection District and Water Authority) approved and adopted the current “Statement of Investment Policy”.

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

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

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

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

Item 4.

Attached is the Treasurer’s Report of Investments which includes an overview on investments which provides information on investment activity, withdrawals and deposits, interest earned, payment of interest and payment of principal as of the months ended June 30, 2025. In addition, this report includes detailed information and current activity on individual investments.

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

There was no unusual investment activity to report.

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

FISCAL IMPACT:

None, this report is to receive and file only.

Item 4.

CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 5/31/2025 (WITHDRAWALS) CHANGE IN VALUE (INTEREST) (PRINCIPAL) 6/30/2025

CASH ON HAND
Wells Fargo-General Checking N/A 5,699,806.25 1,269,321.89 - - - 6,969,128.14 Sweep Account 4.966% 6,189,538.16 (436,832.04) 5,752,706.12 Wells Fargo-Road Maintenance N/A 2,267,259.14 100,907.48 - - 2,368,166.62 Wells Fargo-Gas Tax N/A 943,183.50 (663,089.60) - - - 280,093.90 - Wells Fargo- Payroll Acct N/A (8,441.01) 3,523.41 (4,917.60) Wells Fargo- TCC Grant N/A - 2,477,304.00 923.21 2,478,227.21 Petty Cash N/A 7,000.00 - - - - 7,000.00
Total Cash on Hand 15,098,346.04 2,751,135.14 923.21 - - 17,850,404.39

INVESTMENTS
State of California - LAIF 2.17% 17,773,117.02 - - - - 17,773,117.02 Investment Management Acct 1.47% 36,594,554.53 271,191.43 - - 36,865,745.96 Total Investments 54,367,671.55 - 271,191.43 - - 54,638,862.98

CASH WITH FISCAL AGENT
US Bank varies 4,634,091.32 - 1,687.35 (467,365.63) - 4,168,413.04 ① Wells Fargo Bank, N.A. 5.83% 280,802.31 29.80 91.82 (280,800.00) - 123.93 ② Wilmington Trust, N. A. 0.03% 2,332,747.08 1,256,104.97 4,658.40 - - 3,593,510.45 ③ Total Cash with Fiscal Agent 7,247,640.71 1,256,134.77 6,437.57 (748,165.63) - 7,762,047.42 Grand Total 76,713,658.30 4,007,269.91 278,552.21 (748,165.63) - 80,251,314.79 Completed By:

Reviewed By: Ruben Ramirez- Controller

CITY OF COACHELLA

TREASURER'S REPORT - INVESTMENT REPORT
As of June 30, 2025
Fiscal Year 2024-2025

DESCRIPTION
Lourdes Marrón-Accountant

Item 4.

CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 5/31/2025 (WITHDRAWALS) CHANGE IN VALUE (INTEREST) (PRINCIPAL) 6/30/2025

CITY OF COACHELLA

TREASURER'S REPORT - INVESTMENT REPORT
As of June 30, 2025
Fiscal Year 2024-2025

DESCRIPTION

CASH WITH FISCAL AGENT

US BANK

COACHELLA FINANCING AUTHORITY
Successor Agency to the Coachella Redevelopments Agency 2014 Series A/C #: 6712104701 Debt Service Fund 0.00% 545.62 - 1.94 - - 547.56 A/C #: 6712104702 Interest Account 0.00% - - - - - -
A/C #: 6712104703 Principal Account 0.00% - - - - - -
A/C #: 6712104704 Reserve Account 0.00% 827,612.50 - - - - 827,612.50

COACHELLA SANITARY DISTRICT
WASTEWATER SERIES 2015A
A/C #: 6712148601 Bond Fund 0.00% 593.20 - 2.11 - - 595.31 A/C #: 6712148602 Interest Account 0.00% - - - - - -
A/C #: 6712148603 Principal Account 0.00% - - - - - -
A/C #: 6712148604 Reserve Account 0.00% 310,175.00 - - - - 310,175.00 COACHELLA SANITARY DISTRICT: PROJECT FUND 2011
A/C #: 6711963500 Project Fund 2011 0.0100% 28,724.50 102.36 - - 28,826.86

Item 4.

CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 5/31/2025 (WITHDRAWALS) CHANGE IN VALUE (INTEREST) (PRINCIPAL) 6/30/2025

CITY OF COACHELLA

TREASURER'S REPORT - INVESTMENT REPORT
As of June 30, 2025
Fiscal Year 2024-2025

DESCRIPTION

COACHELLA SUCCESSOR AGENCY
MERGED PROJECT AREAS BONDS 98 & 99: BONDS 2013
A/C #: 6712071401 Debt Service 0.00% 139.91 - 0.50 - - 140.41 A/C #: 6712071402 Interest Account 0.00% - - - - - -
A/C #: 6712071403 Principal Account 0.00% - - - - - -
A/C #: 6712071404 Reserve Account 0.00% 406,487.50 - - - - 406,487.50 SA TO COACHELLA RDA REFUNDING BONDS SERIES 2016A & 2016B A/C #: 6712160601 Debt Service 0.00% 1,432.80 - 5.11 - - 1,437.91 A/C #: 6712160602 Interest Account 0.00% - - - - - -
A/C #: 6712160603 Principal Account 0.00% - - - - - -
A/C #: 6712160604 Reserve Account 0.00% 1,978,368.49 - - - - 1,978,368.49 COACHELLA LEASE BONDS 2016
A/C #: 6712179801 Payment Account 0.0000% 467,680.54 (467,365.63) 1,575.33 - - 1,890.24 A/C #: 6712179802 Interest Account 0.0000% (0.00) 142,365.63 - (142,365.63) - (0.00) A/C #: 6712179803 Principal Account 0.0000% - 325,000.00 - (325,000.00) - - A/C #: 6712179804 Reserve Account 0.0000% 612,331.26 - - - - 612,331.26 TOTAL US BANK OF CALIFORNIA 4,634,091.32 - 1,687.35 (467,365.63) - 4,168,413.04 ① WELLS FARGO BANK, N.A.

GAS TAX BONDS SERIES 2019
A/C #: 83925300 Debt Service Fund 0.0000% 0.75 29.80 - - - 30.55 A/C #: 83925301 Interest Account 0.0000% 75,800.00 - 24.88 (75,800.00) - 24.88 A/C #: 83925302 Principal Account 0.0000% 205,001.56 - 66.94 (205,000.00) 68.50 TOTAL WELLS FARGO BANK, N.A. 280,802.31 29.80 91.82 (280,800.00) - 123.93 ②

Item 4.

CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 5/31/2025 (WITHDRAWALS) CHANGE IN VALUE (INTEREST) (PRINCIPAL) 6/30/2025

CITY OF COACHELLA

TREASURER'S REPORT - INVESTMENT REPORT
As of June 30, 2025
Fiscal Year 2024-2025

DESCRIPTION
WILMINGTON TRUST, N. A.

CITY OF COACHELLA TAXABLE PENSION OBLIGATION BONDS
A/C #: 144613-000 Revenue Account 0.03% 616.82 1,256,104.97 821.78 - - 1,257,543.57 A/C #: 144613-001 Interest Account 0.03% 0.00 - - - - 0.00 A/C #: 144613-002 Principal Account 0.00% 606.88 - 2.10 - 608.98 CITY OF COACHELLA 2022A BOND FUND
A/C #: 154278-000 Bond Fund 1.76% 19,876.14 3,887.56 76.16 - - 23,839.86 A/C #: 154278-001 Interest Account 0.00% (0.00) - - - - (0.00) A/C #: 154278-002 Principal Account 0.00% - - - - - -
A/C #: 154278-004 Project FD Account 1.76% 1,162,005.93 (3,887.56) 3,751.02 - - 1,161,869.39 CITY OF COACHELLA 2022B BOND FUND
A/C #: 155657-000 Bond Fund 1.76% 2,275.57 - 7.34 - - 2,282.91 A/C #: 155657-001 Interest Account 0.00% (0.00) - - - - (0.00) A/C #: 155657-002 Principal Account 0.00% - - - - - -
A/C #: 155657-004 COI Account 0.00% - - - - - -
CITY OF COACHELLA BOFA 2023 ESCROW
A/C #: 166682-000 Bond Fund 1,147,365.74 - 1,147,365.74 TOTAL WILMINGTGON TRUST BANK, N.A. 2,332,747.08 1,256,104.97 4,658.40 - - 3,593,510.45 ③ TOTAL CASH WITH FISCAL AGENT 7,247,640.71 1,256,134.77 6,437.57 (748,165.63) - 7,762,047.42

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Item 4.

STAFF REPORT
8/6/2025
TO: Honorable Mayor and City Council Members
FROM: Andrew Simmons, P.E., Public Works Director/City Engineer SUBJECT: Amendment #4 to construction agreement with WGJ Enterprises Inc. (dba PCI) for the FY 2023-26 On-Call Striping Contract Project No. 083122 in an amount not-to-exceed $100,000.

STAFF RECOMMENDATION:

Authorize City Manager to execute Amendment #4 to construction agreement with WGJ Enterprises Inc. (dba PCI) for the FY 2023-26 On-Call Striping Contract Project No. 083122 in an amount not-to-exceed $100,000.

EXECUTIVE SUMMARY:

In November 2022 City Council awarded a construction contract to WGJ Enterprises Inc. for the FY 2023-2026 On-Call Striping Contract Project No. 083122 with the option to amend through FY 25/26. City Council has awarded amendments #1-#3 for the FY 23/24 and FY 24/25. The services provided though this contract will address annual maintenance of City major and minor arterials striping. This work includes crosswalks, lane striping and pavement markings and bike lane striping as needed. Staff is recommending awarding this amendment #4 for WGJ Enterprises to provide on-call striping services for the FY 25/26 in the amount not-to-exceed $100,000.

FISCAL IMPACT:

No fiscal impact. This amendment is included in the FY 25/26 budget in account #101-11-148-20- 334-608 (Street Striping Contract Services).

ATTACHMENTS:

1. Amendment #4

Item 5.

FOURTH AMENDMENT TO THE CONTRACTOR AGREEMENT BETWEEN THE CITY

OF COACHELLA
ANDWGJ ENTERPRISES INC. DBA PCI.

THIS FOURTH AMENDMENT ("Amendment") is made and entered into as of A u g u s t 6 th, 2025 by and between the City of Coachella ("City”) and WGJ Enterprises, Inc. dba PCI ("Consultant"). In consideration of the mutual covenants and conditions s et forth herein, the parties agree as follows:

1. RECITALS. This Amendment is made with the respect to the following facts and purposes:
a. On or about November 1
st, 2022 the City and Consultant entered into that certain agreement entitled "Contractor Agreement" between the City and Consultant to provide on-call striping services in the amount of $120,000.
b. On or about September 13
th, 2023 the City and Consultant entered into the
“First Amendment” to the agreement between the City and Consultant in the amount of $37,500.
c. On or about February 28
th, 2024 the City and Consultant entered into the “Second Amendment” to the agreement between the City and Consultant in the amount of $112,500.
d. On or about June 12th, 2024 the City and Consultant entered into the “Third Amendment” to the agreement between the City and Consultant in the amount of $125,000.
e. The parties now desire to amend the Agreement as set forth in this Amendment.

2. AMENDMENT.

3.1 General Scope of Services. Article 1 of the Agreement is hereby amended to include the Scope of Services to be performed for FY 25-26 On-Call City Striping Services under this Amendment No. 4.

3.2 Performance Period. Article 2 of the Agreement is hereby amended to go into effect on July 1, 2025 contingent upon approval by City, and Consultant shall commence work after notification to proceed by City’s Agreement Administrator. The Agreement shall end on June 30, 2026, unless extended by Agreement Amendment.

3.3 Allowable Costs and Payments. Article 3 of the Agreement is hereby amended to increase the compensation, including authorized reimbursements, for all services rendered under

Item 5.
this Agreement as set forth in EXHIBIT “B” attached hereto and incorporated herein by reference.

The method of payment in Article 3 of the Agreement is hereby amended to actual cost. City will reimburse Consultant for actual costs (including labor costs, employee benefits, travel, equipment rental costs, overhead and other direct costs) incurred by Consultant in performance of the work. The total authorized compensation for the Amendment No. 4 is in the amount not to exceed One Hundred Thousand Dollars and Zero Cents ($100,000.00).

The amended total compensation shall not exceed Four Hundred Ninety-Five Thousand Dollars and Zero Cents ($495,000.00) without written approval of the City’s representative. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this agreement.

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

3.5 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 Amendment.

3.6 Counterparts. This Amendment m a y 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.

IN WITNESS THEREOF, the parties have executed this Amendment as of the day and year first set forth above, which date shall be considered by the parties to be the effective date of this Amendment.

Item 5.

CITY OF COACHELLA WGJ ENTERPRISES, INC. DBA PCI
Approved by: Approved by:
_________________________________ By:________________________________ William B. Pattison Jr.

City Manager
Its:________________________________
Approved as to Form: Printed Name:_______________________ BEST, BEST & KRIEGER By: ________________________________ _________________________________ Its: ________________________________ City Attorney
Printed Name: _______________________
Attest:
415490, C-32
_________________________________ ________________________________ Angela M. Zepeda Contractor’s License Number and
City Clerk Classification
1000813536
________________________________
DIR Registration Number

Item 5.

STAFF REPORT
8/6/2025
TO: Honorable Mayor and City Council Members
FROM: Andrew Simmons, P.E., Public Works Director/City Engineer SUBJECT: Cooperative Agreement with State of California Department of Transportation for the SR86/Avenue 50 Interchange Project (ST-81).

STAFF RECOMMENDATION:

Authorize the City Manager to execute a Cooperative Agreement with State of California Department of Transportation for the SR86/Avenue 50 Interchange Project (ST-81), subject to reasonable and acceptable minor modifications by Caltrans and as approval to form by City Attorney.

BACKGROUND:

On November 18, 2015, City Council adopted resolution No. 2015-27 authorizing the City Manager to execute on behalf on the City any and all agreements associated with the ST-81 project.

On November 27, 2019 the City entered into a Professional Services Agreement with Angenious Engineering Services for Professional Engineering Services in preparation of a funding grant application. On October 14, 2020 the City authorized Amendment #1 for additional professional services for the SR86/Avenue 50 Interchange Project. City Staff authorized Amendment #2 for professional engineering services in preparation of a RAISE funding grant application.

In March 2025 the City requested an amendment to the contract with CVAG to add additional funding for the SR86/Avenue 50 Interchange Project. In May 2025 the amendment was approved and an additional $5,000,000 was awarded for the SR86/Avenue 50 Interchange Project in CVAG funding with the City’s 25% match to be differed to the construction phase. In June 2025, City Council approved Amendment #3 with Angenious to prepare plans, specifications and engineer’s estimates for the SR86/Avenue 50 Interchange Project.

DISCUSSION/ANALYSIS:

A cooperative agreement with Caltrans is needed since this project will affect the State Highway System (SHS). The cooperative agreement outlines the roles between each party to progress the project forward. The City is the implementing agency for this project and agrees to work with Caltrans to meet their standards. As the implementing agency, the City is responsible for managing the scope, cost, schedule, and quality of the work activities and products of the project. The City will

Item 6.
also lead the PS&E and Right-of-Way work. Caltrans is the lead agency for CEQA and NEPA and will perform quality management.

FISCAL IMPACT:

No fiscal impact to General Fund.

ATTACHMENTS:

1. Draft Cooperative Agreement with the State of California Department of Transportation

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 1

COOPERATIVE AGREEMENT COVER SHEET
Work Description
CONSTRUCT NEW INTERCHANGE ON STATE ROUTE 86 AT AVE 50 & BRIDGE

OVER COACHELLA CHANNEL
Contact Information
The information provided below indicates the primary contact information for each PARTY to this AGREEMENT. PARTIES will notify each other in writing of any personnel or location changes.

Contact information changes do not require an amendment to this AGREEMENT.

CALTRANS
David Maher, Project Manager
464 W. 4th Street
San Bernardino, CA 92401
Office Phone: (909) 371-6670
Email: [email protected]

CITY OF COACHELLA
Andrew Simmons, City Engineer
53990 Enterprise Way
Coachella, CA 92236
Office Phone: (760) 398-5744
Mobile Phone: (442) 307-2396
Email: [email protected]

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 2

COOPERATIVE AGREEMENT
This AGREEMENT, executed on and effective from __________________________, is between the State of California, acting through its Department of Transportation, referred to as CALTRANS, and:

City of Coachella, a body politic and municipal corporation or chartered city of the State of California, referred to hereinafter as CITY.

An individual signatory agency in this AGREEMENT is referred to as a PARTY. Collectively, the signatory agencies in this AGREEMENT are referred to as PARTIES.

RECITALS

1. PARTIES are authorized to enter into a cooperative agreement for improvements to the State Highway System (SHS) per the California Streets and Highways Code, Sections 114 and 130.

2. For the purpose of this AGREEMENT, construct new interchange on State Route 86 at Ave 50 & bridge over Coachella Channel, will be referred to hereinafter as PROJECT. The PROJECT scope of work is defined in the project initiation and approval documents.

3. All obligations and responsibilities assigned in this AGREEMENT to complete the following PROJECT COMPONENTS will be referred to hereinafter as WORK:
• PLANS, SPECIFICATIONS, AND ESTIMATE (PS&E)
• RIGHT-OF-WAY (R/W)
Each PROJECT COMPONENT is defined in the CALTRANS Workplan Standards Guide as a distinct group of activities/products in the project planning and development process.

4. The term AGREEMENT, as used herein, includes this document and any attachments, exhibits, and amendments.

This AGREEMENT is separate from and does not modify or replace any other cooperative agreement or memorandum of understanding between the PARTIES regarding the PROJECT.

PARTIES intend this AGREEMENT to be their final expression that supersedes any oral understanding or writings pertaining to the WORK. The requirements of this

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 3
AGREEMENT will preside over any conflicting requirements in any documents that are made an express part of this AGREEMENT.

If any provisions in this AGREEMENT are found by a court of competent jurisdiction to be, or are in fact, illegal, inoperative, or unenforceable, those provisions do not render any or all other AGREEMENT provisions invalid, inoperative, or unenforceable, and those provisions will be automatically severed from this AGREEMENT.

Except as otherwise provided in the AGREEMENT, PARTIES will execute a written amendment if there are any changes to the terms of this AGREEMENT.

PARTIES agree to sign a CLOSURE STATEMENT to terminate this AGREEMENT.

However, all indemnification, document retention, audit, claims, environmental commitment, legal challenge, maintenance and ownership articles will remain in effect until terminated or modified in writing by mutual agreement or expire by the statute of limitations.

5. The following work associated with this PROJECT has been completed or is in progress:
• CALTRANS completed the Project Initiation Document (PID) on August 8, 2005. • CITY completed the Project Report on May 17, 2019.
• CALTRANS approved the Mitigated Negative Declaration on May 17, 2019. • CALTRANS approved the Finding of No Significant Impact (FONSI) on May 17, 2019.

6. In this AGREEMENT capitalized words represent defined terms, initialisms, or acronyms.

7. PARTIES hereby set forth the terms, covenants, and conditions of this AGREEMENT.

RESPONSIBILITIES
Sponsorship

8. A SPONSOR is responsible for establishing the scope of the PROJECT and securing the financial resources to fund the WORK. A SPONSOR is responsible for securing additional funds when necessary or implementing PROJECT changes to ensure the WORK can be completed with the funds committed in this AGREEMENT.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 4
PROJECT changes, as described in the CALTRANS Project Development Procedures Manual, will be approved by CALTRANS as the owner/operator of the State Highway System.

9. CITY is the SPONSOR for the WORK in this AGREEMENT.

Implementing Agency

10. The IMPLEMENTING AGENCY is the PARTY responsible for managing the scope, cost, schedule, and quality of the work activities and products of a PROJECT COMPONENT. • CITY is the Plans, Specifications, and Estimate (PS&E) IMPLEMENTING AGENCY.

PS&E includes the development of the plans, specifications, and estimate; obtaining any resource agency permits; and the advertisement/award of the construction contract.
• CITY is the RIGHT-OF-WAY IMPLEMENTING AGENCY.

RIGHT-OF-WAY includes coordination with utility owners for the protection, removal, or relocation of utilities; pre-construction monument preservation; the acquisition of right-of-way interests; and post-construction work such as right-ofway monumentation/recordation, relinquishments/vacations, and excess land transactions. The RIGHT-OF-WAY component budget identifies the cost of the capital costs of right-of-way acquisition (RIGHT-OF-WAY CAPITAL) and the cost of the staff work in support of the acquisition (RIGHT-OF-WAY SUPPORT).

11. CITY will provide a Quality Management Plan (QMP) for the WORK in every PROJECT COMPONENT that they are implementing. The QMP describes the IMPLEMENTING AGENCY's quality policy and how it will be used. The QMP will include a process for resolving disputes between the PARTIES at the team level. The QMP is subject to CALTRANS review and concurrence.

12. Any PARTY responsible for completing WORK will make its personnel and consultants that prepare WORK available to help resolve WORK-related problems and changes for the entire duration of the PROJECT including PROJECT work that may occur under separate agreements.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 5
Funding

13. The WORK does not use funds administered by CALTRANS. PARTIES will amend this AGREEMENT should this condition change.

14. Each PARTY is responsible for the costs they incur in performing the WORK.

CALTRANS' Quality Management

15. CALTRANS, as the owner/operator of the State Highway System (SHS), will perform quality management work including Quality Management Assessment (QMA) and owner/operator approvals for the portions of WORK within the existing and proposed SHS right-of-way.

16. CALTRANS' Quality Management Assessment (QMA) efforts are to ensure that CITY's quality assurance results in WORK that is in accordance with the applicable standards and the PROJECT's quality management plan (QMP). QMA does not include any efforts necessary to develop or deliver WORK or any validation by verifying or rechecking WORK.

When CALTRANS performs QMA, it does so for its own benefit. No one can assign liability to CALTRANS due to its QMA.

17. CALTRANS, as the owner/operator of the State Highway System, will approve WORK products in accordance with CALTRANS policies and guidance and as indicated in this AGREEMENT.

18. CITY will provide WORK-related products and supporting documentation upon CALTRANS' request for the purpose of CALTRANS' quality management work.

19. The cost of CALTRANS’ quality management work is to be borne by CALTRANS.

CEQA/NEPA Lead Agency

20. CALTRANS is the CEQA Lead Agency for the PROJECT.

21. CALTRANS is the NEPA Lead Agency for the PROJECT.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 6
Environmental Permits, Approvals and Agreements

22. CITY will comply with the commitments and conditions set forth in the environmental documentation, environmental permits, approvals, and applicable agreements as those commitments and conditions apply to CITY's responsibilities in this AGREEMENT.

23. Unless otherwise assigned in this AGREEMENT, the IMPLEMENTING AGENCY for a PROJECT COMPONENT is responsible for all PROJECT COMPONENT WORK associated with coordinating, obtaining, implementing, renewing, and amending the PROJECT permits, agreements, and approvals whether they are identified in the planned project scope of work or become necessary in the course of completing the PROJECT.

24. The PROJECT requires the following environmental permits/approvals:

ENVIRONMENTAL PERMITS/REQUIREMENTS
404 US Army Corps of Engineers
401 Regional Water Quality Control Board
1602 California Department of Fish & Wildlife
Plans, Specifications, and Estimate (PS&E)

25. As the PS&E IMPLEMENTING AGENCY, CITY is responsible for all PS&E WORK except those activities and responsibilities that are assigned to another PARTY and those activities that are excluded under this AGREEMENT.

26. CALTRANS will be responsible for completing the following PS&E activities:

CALTRANS Work Breakdown Structure Identifier (If Applicable) 100.15.10.xx Quality Management
255.15 Environmental Re-evaluation

27. CITY will prepare Utility Conflict Maps identifying the accommodation, protection, relocation, or removal of any existing utility facilities that conflict with construction of the PROJECT or that violate CALTRANS’ encroachment policy.

CITY will provide CALTRANS a copy of Utility Conflict Maps for CALTRANS' concurrence prior to issuing the Notices to Owner and executing the utility agreement. All utility conflicts will be addressed in the PROJECT plans, specifications, and estimate.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 7

28. CITY will determine the cost to positively identify and locate, accommodate, protect, relocate, or remove any utility facilities whether inside or outside the State Highway System right-of-way in accordance with federal and California laws and regulations, and CALTRANS’ policies, procedures, standards, practices, and applicable agreements including but not limited to Freeway Master Contracts.

29. CALTRANS will not issue the Acceptance of Final Plans, Specifications, and Estimate to CITY until the following conditions are met:
• Any new or amended Maintenance Agreement required for the WORK are executed. • Any new or amended Freeway Agreement required for the WORK are executed.

RIGHT-OF-WAY

30. As the RIGHT-OF-WAY IMPLEMENTING AGENCY, CITY is responsible for all RIGHTOF-WAY WORK except those activities and responsibilities that are assigned to another PARTY and those activities that are excluded under this AGREEMENT.

31. CALTRANS will be responsible for completing the following RIGHT-OF-WAY activities:

CALTRANS Work Breakdown Structure Identifier (If Applicable) 100.25.10.xx Quality Management

32. The selection of personnel performing RIGHT-OF-WAY WORK will be in accordance with federal and California laws and regulations, and CALTRANS’ policies, procedures, standards, practices, and applicable agreements.

33. CITY will make all necessary arrangements with utility owners for the timely accommodation, protection, relocation, or removal of any existing utility facilities that conflict with construction of the PROJECT or that violate CALTRANS' encroachment policy.

34. CITY will provide CALTRANS a copy of conflict maps, relocation plans, proposed notices to owner, reports of investigation, and utility agreements (if applicable) for CALTRANS' concurrence prior to issuing the notices to owner and executing the utility agreement. All utility conflicts will be fully addressed prior to Right-of-Way Certification and all arrangements for the protection, relocation, or removal of all conflicting facilities will be completed prior to construction contract award and included in the PROJECT plans, specifications, and estimate.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 8

35. CITY will provide a land surveyor licensed in the State of California to be responsible for surveying and right-of-way engineering. All survey and right-of-way engineering documents will bear the professional seal, certificate number, registration classification, expiration date of certificate, and signature of the responsible surveyor.

36. Acquisition of right-of-way will not occur prior to the approval of the environmental document without written approval from the CEQA Lead Agency.

37. CITY will hear and adopt Resolutions of Necessity when authorized to do so by law or will work with local agencies having jurisdiction and authorized under the law to hear and adopt Resolutions of Necessity.

CITY will conduct and document Condemnation Evaluation Meetings and Condemnation Panel Review Meetings as required in accordance with CALTRANS policy and guidance.

CALTRANS will be notified in advance of any Condemnation Evaluation Meetings and Condemnation Panel Review Meetings.

38. If CITY acquires any right-of-way to be incorporated into the State Highway System (SHS), CITY will first acquire in its own name.

No right-of-way will be acquired in CALTRANS' name.

Title to the SHS right-of-way will ultimately be vested in the State. CALTRANS' acceptance of title will occur after the Right-of-Way Closeout activities are complete.

39. CITY will utilize a public agency currently qualified by CALTRANS or a properly licensed consultant for all RIGHT-OF-WAY activities. A qualified right-of-way agent will administer all right-of-way consultant contracts.

CITY will submit a draft Right-of-Way Certification to CALTRANS six weeks prior to the scheduled Right-of-Way Certification milestone date for review.

CITY will submit a final Right-of-Way Certification to CALTRANS for approval prior to the advertising the construction contract.

40. Physical and legal possession of the right-of-way must be completed prior to advertising the construction contract, unless PARTIES mutually agree to other arrangements in writing.

41. CALTRANS’ acceptance of right-of-way title is subject to review of an Updated Preliminary Title Report provided by CITY verifying that the title is free of all encumbrances and liens. Upon acceptance, CITY will provide CALTRANS with a Policy of Title Insurance in CALTRANS’ name.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 9

42. Right-of-way conveyances must be completed prior to WORK completion, unless PARTIES mutually agree to other arrangements in writing.

Schedule

43. PARTIES will manage the WORK schedule to ensure the timely use of committed funds and to ensure compliance with any environmental permits, right-of-way agreements, construction contracts, and any other commitments. PARTIES will communicate schedule risks or changes as soon as they are identified and will actively manage and mitigate schedule risks.

Additional Provisions
Standards

44. PARTIES will perform all WORK in accordance with federal and California laws, regulations, and standards; Federal Highway Administration (FHWA) standards; and CALTRANS standards. CALTRANS standards include, but are not limited to, the guidance provided in the:
• CADD Users Manual
• CALTRANS policies and directives
• Plans Preparation Manual
• Project Development Procedures Manual (PDPM)
• Workplan Standards Guide
• Standard Environmental Reference
• Highway Design Manual
• Right of Way Manual
• Stewardship and Oversight Agreement
• Construction Manual Supplement for Local Agency Resident Engineers • Local Agency Structure Representative Guidelines
Noncompliant Work

45. CALTRANS retains the right to reject noncompliant WORK. CITY agrees to suspend WORK upon request by CALTRANS for the purpose of protecting public safety, preserving property rights, and ensuring that all WORK is in the best interest of the State Highway System.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 10
Qualifications

46. Each PARTY will ensure that personnel participating in WORK are appropriately qualified or licensed to perform the tasks assigned to them.

Consultant Selection

47. CITY will invite CALTRANS to participate in the selection of any consultants that participate in the WORK.

Encroachment Permits

48. CALTRANS will issue, upon proper application, the encroachment permits required for WORK within State Highway System (SHS) right-of-way. CITY, their contractors, consultants, agents, and utility owners will not work within the SHS right-of-way without an encroachment permit issued by CALTRANS. CALTRANS will provide encroachment permits to CITY at no cost. CALTRANS will provide encroachment permits to utility owners at no cost. If the encroachment permit and this AGREEMENT conflict, the requirements of this AGREEMENT will prevail.

49. The IMPLEMENTING AGENCY for a PROJECT COMPONENT will coordinate, prepare, obtain, implement, renew, and amend any encroachment permits needed to complete the WORK.

Protected Resources

50. If any PARTY discovers unanticipated cultural, archaeological, paleontological, or other protected resources during WORK, all WORK in that area will stop and that PARTY will notify all PARTIES within 24 hours of discovery. WORK may only resume after a qualified professional has evaluated the nature and significance of the discovery and CALTRANS approves a plan for its removal or protection.

Disclosures

51. PARTIES will hold all administrative drafts and administrative final reports, studies, materials, and documentation relied upon, produced, created, or utilized for the WORK in confidence to the extent permitted by law and where applicable, the provisions of California Government Code, Section 7921.505(c)(5) will protect the confidentiality of such documents in the event that said documents are shared between PARTIES.

PARTIES will not distribute, release, or share said documents with anyone other than employees, agents, and consultants who require access to complete the WORK without the

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 11
written consent of the PARTY authorized to release them, unless required or authorized to do so by law.

52. If a PARTY receives a public records request pertaining to the WORK, that PARTY will notify PARTIES within five (5) working days of receipt and make PARTIES aware of any disclosed public records.

Hazardous Materials

53. HM-1 is hazardous material (including, but not limited to, hazardous waste) that may require removal and disposal pursuant to federal or state law, whether it is disturbed by the PROJECT or not.

HM-2 is hazardous material (including, but not limited to, hazardous waste) that may require removal and disposal pursuant to federal or state law only if disturbed by the PROJECT.

The management activities related to HM-1 and HM-2, including and without limitation, any necessary manifest requirements and disposal facility designations are referred to herein as HM-1 MANAGEMENT and HM-2 MANAGEMENT respectively.

54. If HM-1 or HM-2 is found, the discovering PARTY will immediately notify all other PARTIES.

55. CALTRANS, independent of the PROJECT, is responsible for any HM-1 found within the existing State Highway System right-of-way. CALTRANS will undertake, or cause to be undertaken, HM-1 MANAGEMENT with minimum impact to the PROJECT schedule.

CALTRANS, independent of the PROJECT, will pay, or cause to be paid, the cost of HM-1 MANAGEMENT related to HM-1 found within the existing State Highway System rightof-way.

56. CITY, independent of the PROJECT, is responsible for any HM-1 found within the PROJECT limits and outside the existing State Highway System right-of-way. CITY will undertake, or cause to be undertaken, HM-1 MANAGEMENT with minimum impact to the PROJECT schedule.

CITY, independent of the PROJECT, will pay, or cause to be paid, the cost of HM-1 MANAGEMENT for HM-1 found within the PROJECT limits and outside of the existing State Highway System right-of-way.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 12

57. The CONSTRUCTION IMPLEMENTING AGENCY is responsible for HM-2 MANAGEMENT within the PROJECT limits.

CITY and CALTRANS will comply with the Soil Management Agreement for Aerially Deposited Lead Contaminated Soils (Soil Management Agreement) executed between CALTRANS and the California Department of Toxic Substances Control (DTSC). Under Section 3.2 of the Soil Management Agreement, CALTRANS and CITY each retain joint and severable liability for noncompliance with the provisions of the Soil Management Agreement. CITY will assume all responsibilities assigned to CALTRANS in the Soil Management Agreement during PROJECT COMPONENTS for which they are the IMPLEMENTING AGENCY except for final placement and burial of soil within the State right-of-way, per Section 4.5 of the Soil Management Agreement, which is subject to CALTRANS concurrence and reporting to DTSC which will be performed by CALTRANS.

58. CALTRANS' acquisition or acceptance of title to any property on which any HM-1 or HM2 is found will proceed in accordance with CALTRANS' policy on such acquisition.

Claims

59. CITY may accept, reject, compromise, settle, or litigate claims of any consultants or contractors hired to complete WORK without concurrence from the other PARTY.

60. PARTIES will confer on any claim that may affect the WORK or PARTIES' liability or responsibility under this AGREEMENT in order to retain resolution possibilities for potential future claims. No PARTY will prejudice the rights of another PARTY until after PARTIES confer on the claim.

61. If the WORK expends state or federal funds, each PARTY will comply with the Federal Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards of 2 CFR, Part 200. PARTIES will ensure that any for-profit consultant hired to participate in the WORK will comply with the requirements in 48 CFR, Chapter 1, Part 31. When state or federal funds are expended on the WORK these principles and requirements apply to all funding types included in this AGREEMENT.

Accounting and Audits

62. If the WORK expends state or federal funds, each PARTY will undergo an annual audit in accordance with the Single Audit Act in the Federal Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards as defined in 2 CFR, Part 200.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 13

63. When a PARTY reimburses a consultant for WORK with state or federal funds, the procurement of the consultant and the consultant overhead costs will be in accordance with the Local Assistance Procedures Manual, Chapter 10.

Interruption of Work

64. If WORK stops for any reason, IMPLEMENTING AGENCY will place the PROJECT right-of-way in a safe and operable condition acceptable to CALTRANS.

65. If WORK stops for any reason, each PARTY will continue with environmental commitments included in the environmental documentation, permits, agreements, or approvals that are in effect at the time that WORK stops, and will keep the PROJECT in environmental compliance until WORK resumes.

Penalties, Judgments and Settlements

66. The cost of awards, judgments, fines, interest, penalties, attorney's fees, and/or settlements generated by the WORK are considered WORK costs.

67. The cost of legal challenges to the environmental process or documentation are considered WORK costs.

68. Any PARTY whose action or lack of action causes the levy of fines, interest, or penalties will indemnify and hold all other PARTIES harmless per the terms of this AGREEMENT.

Project Files

69. CITY will furnish CALTRANS with the Project History Files related to the PROJECT facilities on State Highway System within sixty (60) days following the completion of each PROJECT COMPONENT. CITY will assure that the Project History File is prepared and submitted in compliance with the Project Development Procedures Manual, Chapter 7. All material will be submitted neatly in a three-ring binder and in PDF format.

Environmental Compliance

70. If during performance of WORK additional activities or environmental documentation is necessary to keep the PROJECT in environmental compliance, PARTIES will amend this AGREEMENT to include completion of those additional tasks.

GENERAL CONDITIONS

71. All portions of this AGREEMENT, including the RECITALS section, are enforceable.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 14
Venue

72. PARTIES understand that this AGREEMENT is in accordance with and governed by the Constitution and laws of the State of California. This AGREEMENT will be enforceable in the State of California. Any PARTY initiating legal action arising from this AGREEMENT will file and maintain that legal action in the Superior Court of the county in which the CALTRANS district office that is signatory to this AGREEMENT resides, or in the Superior Court of the county in which the PROJECT is physically located.

Exemptions

73. All CALTRANS' obligations and commitments under this AGREEMENT are subject to the appropriation of resources by the Legislature, the State Budget Act authority, programming and allocation of funds by the California Transportation Commission (CTC).

Indemnification

74. Neither CALTRANS nor any of its officers and employees, are responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by CITY, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction conferred upon CITY under this AGREEMENT. It is understood and agreed that CITY, to the extent permitted by law, will defend, indemnify, and save harmless CALTRANS and all of its officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by CITY, its contractors, subcontractors, and/or its agents under this AGREEMENT.

75. Neither CITY nor any of its officers and employees, are responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by CALTRANS, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction conferred upon CALTRANS under this AGREEMENT. It is understood and agreed that CALTRANS, to the extent permitted by law, will defend, indemnify, and save harmless CITY and all of its officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by CALTRANS, its contractors, sub-contractors, and/or its agents under this AGREEMENT.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 15
Non-parties

76. PARTIES do not intend this AGREEMENT to create a third-party beneficiary or define duties, obligations, or rights for entities in PARTIES not signatory to this AGREEMENT.

PARTIES do not intend this AGREEMENT to affect their legal liability by imposing any standard of care for fulfilling the WORK different from the standards imposed by law.

77. PARTIES will not assign or attempt to assign obligations to entities not signatory to this AGREEMENT without an amendment to this AGREEMENT.

Ambiguity and Performance

78. Neither PARTY will interpret any ambiguity contained in this AGREEMENT against the other PARTY. PARTIES waive the provisions of California Civil Code, Section 1654.

A waiver of a PARTY’s performance under this AGREEMENT will not constitute a continuous waiver of any other provision.

79. A delay or omission to exercise a right or power due to a default does not negate the use of that right or power in the future when deemed necessary.

Defaults

80. If any PARTY defaults in its performance of the WORK, a non-defaulting PARTY will request in writing that the default be remedied within thirty (30) calendar days. If the defaulting PARTY fails to do so, the non-defaulting PARTY may initiate dispute resolution.

Dispute Resolution

81. PARTIES will first attempt to resolve AGREEMENT disputes at the PROJECT team level as described in the Quality Management Plan. If they cannot resolve the dispute themselves, the CALTRANS District Director and the Executive Officer of CITY will attempt to negotiate a resolution. If PARTIES do not reach a resolution, PARTIES' legal counsel will initiate mediation. PARTIES agree to participate in mediation in good faith and will share equally in its costs.

Neither the dispute nor the mediation process relieves PARTIES from full and timely performance of the WORK in accordance with the terms of this AGREEMENT. However, if any PARTY stops fulfilling its obligations, any other PARTY may seek equitable relief to ensure that the WORK continues.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 16
Except for equitable relief and/or to preserve the statute of limitations, no PARTY may file a civil complaint until after mediation, or forty-five (45) calendar days after filing the written mediation request, whichever occurs first.

PARTIES will file any civil complaints in the Superior Court of the county in which the CALTRANS District Office signatory to this AGREEMENT resides or in the Superior Court of the county in which the PROJECT is physically located.

82. PARTIES maintain the ability to pursue alternative or additional dispute remedies if a previously selected remedy does not achieve resolution.

Prevailing Wage

83. When WORK falls within the Labor Code § 1720(a)(1) definition of "public works" in that it is construction, alteration, demolition, installation, or repair; or maintenance work under Labor Code § 1771, PARTIES will conform to the provisions of Labor Code §§ 1720-1815, and all applicable provisions of California Code of Regulations, Title 8, Division 1, Chapter 8, Subchapter 3, Articles 1-7. PARTIES will include prevailing wage requirements in contracts for public work and require contractors to include the same prevailing wage requirements in all subcontracts.

Work performed by a PARTY's own employees is exempt from the Labor Code's Prevailing Wage requirements.

If WORK is paid for, in whole or part, with federal funds and is of the type of work subject to federal prevailing wage requirements, PARTIES will conform to the provisions of the Davis-Bacon and Related Acts, 40 U.S.C. §§ 3141-3148.

When applicable, PARTIES will include federal prevailing wage requirements in contracts for public works. WORK performed by a PARTY's employees is exempt from federal prevailing wage requirements.

Item 6.

Agreement No. 08-1812
Project No.: 0814000144
EA: 08-0C970
08-RIV-86-R19.2/R21.6
Agreement No. 08-1812 | 08-RIV-86 | EA: 08-0C970
Page | 17

SIGNATURES
PARTIES are authorized to enter into this AGREEMENT and have delegated to the undersigned the authority to execute this AGREEMENT on behalf of the respective agencies and hereby covenants to have followed all the necessary legal requirements to validly execute this AGREEMENT. By signing below, the PARTIES each expressly agree to execute this AGREEMENT electronically.

The PARTIES acknowledge that executed copies of this AGREEMENT may be exchanged by facsimile or email, and that such copies shall be deemed to be effective as originals. �STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION
Catalino A. Pining III
District 8 Director
Verification of Funds and Authority:

Karem Evans
District 8 Budget Manager (Acting)
Certified as to financial terms and policies:

Darwin Salmos
HQ Accounting Supervisor
HQ Legal Representative
HQ Legal Rep Title
William B. Pattison
City Manager

CITY OF COACHELLA

Item 6.

STAFF REPORT
8/6/2025
TO: Honorable Mayor and City Council Members
FROM: Andrew Simmons, P.E., Public Works Director/City Engineer SUBJECT: Authorize Amendment #1 to the Professional Services Agreement with Citiguard Inc. for Security Guard Services Project No. 082224 in the amount of $60,000.

STAFF RECOMMENDATION:

Authorize Amendment #1 to the Professional Services Agreement with Citiguard Inc. for Security Guard Services Project No. 082224 in the amount of $60,000.

BACKGROUND:

The City has contracted for security guard services since 2016 to deter acts of vandalism at various city facilities. Services provided through this agreement include patrol and support services at the following sites:
- City Parks and Facilities: Services include locking all park restrooms (11) every night and patrolling twelve (12) city facilities between 10pm to 6am every night. - Library and Senior Center: Provide security guard services Monday–Friday at the Coachella Library and Coachella Senior Center.
- LLMD: Patrol services include evening patrols from 8pm–4am, Thursday–Sunday, to the following LLMD areas: 16, 17, 20, 25, 29, 30, 31, 32, 33, 36,38,39,40.

DISCUSSION:

A request for proposals (RFP) for security guard services was published in September 2024. The City received seven (7) responses. A three-member staff panel reviewed and scored all responses received. In December 2024, City Council authorized a professional services agreement to Citiguard Inc., for a not-to-exceed amount of $300,000 for a one-year term ending in December 2025.

City staff recommends authorizing Amendment #1 for an additional $60,000 to continue providing these services through the contract term. Staff has been tracking the contract and based on the current rate of expenditure, this is what is needed to cover the same level of services for the remainder of the contract term. Since the RFP was posted, an additional three LLMDs have been

Item 7.
added to the scope of services that can attribute to the additional costs. There has also been overtime for City facilities due to special events or scheduled services that were not in the original estimate.

FISCAL IMPACT:

The total remaining contract value is $180,000. This contract was originally budgeted in FY 24/25.

FY 25/26 budgeted amount may not cover total costs and will be reassessed during the mid-year budget update process. The contract and amendment will be funded by General Fund (Fund 101), LLMD (Fund 160), Water (Fund 178) and Sewer (Fund 361) -334-000 professional services accounts.

ATTACHMENTS:

1. Amendment #1

2. Professional Services Agreement

Item 7.

FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF COACHELLA
AND CITIGUARD INC.

THIS FIRST AMENDMENT ("Amendment") is made and entered into as of A u g u s t 6 TH
, 2025
by and between the City of Coachella ("City") and Citiguard Inc. ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. RECITALS. This Amendment is made with the respect to the following facts and purposes:
a. On or about December 11th, 2024 the City and Consultant entered into that certain agreement entitled "City of Coachella Professional Services Agreement" between the City and Consultant to provide Security Guard Services in the amount of $300,000.00. b. The parties now desire to amend the Agreement as set forth in this Amendment.

2. AMENDMENT.

3.1 General Scope of Services. Section 3.1.1 of the Agreement is hereby amended to include the additional Scope of Services to be performed for the Security Guard Services under this Amendment No. 1.

3.2 Performance Period. Section 3.1.2 of the Agreement is hereby amended to go into effect on August 6, 2025 contingent upon approval by City, and Consultant shall commence work after notification to proceed by City’s Agreement Administrator. The Agreement shall end on December 31, 2025, unless extended by Agreement Amendment.

3.3 Allowable Costs and Payments. Section 3.3.1 of the Agreement is hereby amended to increase the compensation, including authorized reimbursements, for all services rendered under this Agreement incorporated herein by reference.

The method of payment in Sections 3.3.1.A and B of the Agreement are hereby amended to actual cost plus a ten percent (10%) fixed fee. City will reimburse Consultant for actual costs (including labor costs, employee benefits, travel, equipment rental costs, overhead and other direct costs; plus ten percent fixed fee) incurred by Consultant in performance of the work. The total authorized compensation for the Amendment No. 1 is in the amount not to exceed Sixty Thousand Dollars and Zero Cents ($60,000.00).

The amended total compensation shall not exceed Three Hundred Sixty Thousand Dollars and Zero Cents ($360,000.00) without written approval of the City’s representative. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this agreement.

Item 7.

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

3.5 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 Amendment.

3.6 Counterparts. This Amendment m a y 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.

IN WITNESS THEREOF, the parties have executed this Amendment as of the day and year first set forth above, which date shall be considered by the parties to be the effective date of this Amendment.

CITY OF COACHELLA CITIGUARD INC.

By: By:
____________________________ _________________________
William B. Pattison Jr. Sami Nomair
City Manager CEO, President at Citiguard
Approve as to form:
________________________________
City Attorney
Attest:
_________________________
Angela Zepeda
City Clerk

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

MINUTES

CITY COUNCIL CLOSED SESSION AND

REGULAR MEETING

OF THE CITY OF COACHELLA

THE COUNCIL SITTING AS THE COACHELLA SANITARY DISTRICT,

COACHELLA FIRE PROTECTION DISTRICT, COACHELLA FINANCING AUTHORITY,

COACHELLA EDUCATIONAL AND GOVERNMENTAL ACCESS CABLE CHANNEL CORPORATION,

COACHELLA WATER AUTHORITY, SUCCESSOR AGENCY TO THE COACHELLA REDEVELOPMENT AGENCY

AND COACHELLA PARKS AND RECREATION FOUNDATION
December 11, 2024
5:00 PM – CLOSED SESSION
6:00 PM – REGULAR MEETING
In-Person Meeting
Location:

Coachella City Hall
Council Chamber
1515 Sixth Street
Coachella, CA
If you would like to attend the meeting via Zoom, here is the link:
https://us02web.zoom.us/j/88457271898?pwd=REdzU1NoQmpVSFhWTDVaZ0VCekYxdz09 Or One tap mobile : 16699006833,,88457271898#,,,,* 606140# Or Telephone:

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

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

Written comments may be submitted to the City Council electronically via email to cityclerk@coachella. org. Transmittal prior to the start of the meeting is required. All written comments received will be forwarded to the City Council and entered into the record. o If you wish, you may leave a message at (760) 262- 6240 before 5:30 p.m. on the day of the meeting.

The live stream of the meeting may be viewed online by accessing the city's website at www.coachella.org, and clicking on the "Watch Council Meetings" tab located on the home page, and then clicking on the " live" button.

Item 7.

Minutes City Council Closed Session and Regular Meeting December 11, 2024

CALL TO ORDER: - 5:00 P.M.

Mayor Hernandez called the City Council Closed Session and Regular Meeting of the City of Coachella to order at 5:00 p.m.

ROLL CALL:

Present: Councilmember Dr. Figueroa, Councilman Delgado (arrived at 5:15 p.m.), Councilmember Galarza ( arrived at 5:10 p.pm), Mayor Pro Tem Virgen, and Mayor Hernandez City Clerk

Absent: City Treasurer
APPROVAL OF AGENDA:

At this time the Council/ Board/ Corporation/ Authority may announce any items being pulled from the Agenda or continued to another date or request the moving of an item on the agenda” Motion: To approve the agenda
Made by: Councilmember Dr. Figueroa
Seconded by: Mayor Pro Tem Virgen
Approved: 3-0, Unanimous roll call vote:

AYES: Councilmember Dr. Figueroa, Mayor Pro Tem Virgen, and Mayor Hernandez NOES: None
ABSTAIN: None
ABSENT: Councilmember Delgado, Councilmember Galarza
PUBLIC COMMENTS (CLOSED SESSION ITEMS):

None
ADJOURN TO CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(d)(2)/(e)(1) One ( 1) Potential Case

2. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957. 6:

City Labor Negotiator: City Manager Gabriel Martin
Employee Organization: Teamsters Local 1932 Representing All the Employee Groups

Item 7.

Minutes City Council Closed Session and Regular Meeting December 11, 2024

RECONVENE REGULAR MEETING: - 6:00 P.M.

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

PLEDGE OF ALLEGIANCE:

The City Manager led the Pledge of Allegiance.

CANVASS OF BALLOTS:

3. Adopt Resolution No. 2024-63 Reciting the Fact of the General Municipal Election on November 5, 2024, Declaring the Results and Such Other Matters as Provided by Law Motion: To approve Adopt Resolution No. 2024-63 Reciting the Fact of the General Municipal Election on November 5, 2024, Declaring the Results and Such Other Matters as Provided by Law Made by: Councilmember Dr. Figueroa
Seconded by: Mayor Pro Tem Virgen
Approved: 5-0, Unanimous roll call vote:

AYES: Councilmember Dr. Figueroa, Councilmember Delgado, Councilmember Galarza, Mayor Pro Tem Virgen, and Mayor Hernandez
NOES: None
ABSTAIN: None
ABSENT: None
RECOGNITION:

4. Recognition of Outgoing Elected Officials
Neftali Galarza was recognized for years of service with the City Council OATH OF OFFICE:

5. Administration of Oath of Office to Newly Elected Officials Mayor Steven A. Hernandez
Councilmember Denise Delgado
Councilmember Yadira Perez
City Clerk Angela Zepeda
City Treasurer Mayra Perez

Item 7.

Minutes City Council Closed Session and Regular Meeting December 11, 2024

COUNCIL ORGANIZATION:

6. Nomination for the Position of Mayor Pro Tem
Denise Delgado was nominated and appointed the Position of Mayor Pro Tem Motion: To approve Denise Delgado as the Mayor Pro Tem
Made by: Councilmember Dr. Figueroa
Seconded by: Councilmember Perez
Approved: 5-0, Unanimous roll call vote:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Delgado, Mayor Pro Tem Virgen, and Mayor Hernandez
NOES: None
ABSTAIN: None
ABSENT: None
CLOSED SESSION ANNOUNCEMENTS:

No reportable action taken.

PROCLAMATIONS/PRESENTATIONS/DIRECTION:

7. Coachella Resident Engagement Academy Update

8. Autism Certification Presentation
WRITTEN COMMUNICATIONS:

None
CONSENT CALENDAR:

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

9. Regular Meeting Minutes of November 13, 2024, of the City of Coachella, Coachella Sanitary District, Coachella Fire Protection District, Coachella Financing Authority, Coachella Educational and Governmental Access Cable Corporation, Coachella Water Authority, Successor Agency to the Coachella Redevelopment Agency and Coachella Parks and Recreation

10. Voucher Listing- EFT's/Utility Billing Refunds/FY 2024-25 Expenditures as of December 11, 2024, 5,411,959.03

11. Investment Report – July 31, 2024

Item 7.

Minutes City Council Closed Session and Regular Meeting December 11, 2024

12. Adopt Resolution No. 2024-64 Approving and Adopting an Amended Conflict of Interest Code Pursuant to the Political Reform Act of 1974

13. Authorize the City Manager to Execute a Construction Contract with GMAT Inc, DBA Inland Overhead Door in the Amount of $267, 000 and 10% Contingency for the Construction of the Fire Station # 79 Garage Door Replacement Project, (F-7)

14. Authorization to file a Notice of Completion for City Project No’ s P-30 & P-32, Bagdouma Park Misc. Site Improvements

15. Adopt Ordinance No. 1217 Increasing Compensation of the Elected City Clerk and the City Treasurer Positions (Second Reading)

16. Adopt Resolution No. 2024- 67 To Increase the Transient Occupancy Tax ( TOT) Rate at Thirteen Percent 13%) Pursuant to Measure Y Effective January 1, 2025

17. Adopt Resolution No. 2024- 68 Authorizing the City Manager to Submit an Application to the U.S.

Department of Transportation (DOT) Rebuilding American Infrastructure with Sustainability and Equity RAISE) Grant Program in the Amount Not-To-Exceed Twenty-Five Million ($25,000,000) Dollars for the City’s Active Transportation Program (ATP) Project

18. Adopt Resolution No. 2024- 69 Authorizing the City Manager to Submit an Application to the U.S.

Department of Transportation (DOT) Rebuilding American Infrastructure with Sustainability and Equity RAISE) Grant Program in the Amount Not-To-Exceed Twenty-Five Million ($25,000,000) Dollars for the City’s State Route 86 at Ave 50 Interchange Project

19. Authorize a Sponsorship Grant to Culturas Music & Arts’ Arte del Barrio Events in the Amount of $9,500

20. Authorize the Allocation of Funds in the Amount of $10,000 for the Coachella Youth Art Program

21. Award Maintenance Agreements to both Amtek Construction and Desert Elite Electric, Inc. for the As Needed Electrical Repairs Project No. 102424B, not to Exceed $200,000

22. Appointment of two Commissioners to the Coachella Youth Advisory Commission.

23. Authorize award of a Professional Services Agreement with Citiguard Inc. for Security Guard Services Project No. 082224, for $300,000.

24. Proposal for on-call Professional Services with Dudek in the amount of $31,120.00 for Coachella Sanitary District Sewer System Management Plan ( SSMP) Audit

25. Authorize the City Manager to execute Professional Services Agreement with Keyser Marston Associates, Inc. (KMA) for a Hotel Feasibility Study in the Amount of $79,500 Councilmember Virgen stepped away at 7:14 p.m. and returned at 7:16 p.m.

Motion: To approve item #13
Made by: Councilmember Dr. Figueroa

Item 7.

Minutes City Council Closed Session and Regular Meeting December 11, 2024

Seconded by: Mayor Pro Tem Delgado
Approved: 4-0, Unanimous roll call vote:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Virgen, and Mayor Pro Tem Delgado
NOES: None
ABSTAIN: Mayor Hernandez
ABSENT: None
Motion: To continue item #19 to January 8th, 2025
Made by: Councilmember Dr. Figueroa
Seconded by: Mayor Pro Tem Delgado
Approved: 5-0, Unanimous roll call vote:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Virgen, Mayor Pro Tem Delgado, and Mayor Hernandez
NOES: None
ABSTAIN: None
ABSENT: None
Motion: To approve item #20 with integration of the Youth Advisory Commission Made by: Councilmember Dr. Figueroa
Seconded by: Mayor Pro Tem Delgado
Approved: 5-0, Unanimous roll call vote:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Virgen, Mayor Pro Tem Delgado, and Mayor Hernandez
NOES: None
ABSTAIN: None
ABSENT: None
Motion: To continue item #25
Made by: Mayor Pro Tem Delgado
Seconded by: Councilmember Dr. Figueroa
Approved: 5-0, Unanimous roll call vote:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Virgen, Mayor Pro Tem Delgado, and Mayor Hernandez
NOES: None
ABSTAIN: None

Item 7.

Minutes City Council Closed Session and Regular Meeting December 11, 2024

ABSENT: None
Motion: To approve the Consent Calendar # 9 - #18 & # 21 - #24, excluding item #13 Made by: Councilmember Dr. Figueroa
Seconded by: Mayor Pro Tem Delgado
Approved: 5-0, Unanimous roll call vote:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Virgen, Mayor Pro Tem Delgado, and Mayor Hernandez
NOES: None
ABSTAIN: None
ABSENT: None
NEW BUSINESS CALENDAR (LEGISLATIVE AND ADMINISTRATIVE):

26. Authorize the City Manager to Execute a Construction Contract with Cora Construction, Inc. in the Amount of $1,271,400.00 for the Construction of the Headworks Screening System Improvements Project, City Project No. S-29 and the Approval of Additional Expenditures for a Total Request of $1,518,540.00 Motion: To authorize the City Manager to Execute a Construction Contract with Cora Construction, Inc. in the Amount of $1,271,400.00 for the Construction of the Headworks Screening System Improvements Project, City Project No. S-29 and the Approval of Additional Expenditures for a Total Request of $1,518,540.00
Made by: Councilmember Dr. Figueroa
Seconded by: Councilmember Perez
Approved: 5-0, Unanimous roll call vote:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Virgen, Mayor Pro Tem Delgado, and Mayor Hernandez
NOES: None
ABSTAIN: None
ABSENT: None

27. Adopt Resolution No. 2024- 66 Approving American Rescue Plan Act Funds ( ARPA) for the State and Local Fiscal Recovery Fund (SLFRF) Program for the Coachella Sanitary District Headworks Screening Improvements Project S-29 in the Amount of $1,090, 756
Motion: To approve Resolution No. 2024-66 Approving American Rescue Plan Act Funds (ARPA) for the State and Local Fiscal Recovery Fund (SLFRF) Program for the Coachella Sanitary District Headworks Screening Improvements Project S-29 in the Amount of $1,090,756 Made by: Councilmember Dr. Figueroa

Item 7.

Minutes City Council Closed Session and Regular Meeting December 11, 2024

Seconded by: Councilmember Perez
Approved: 5-0, Unanimous roll call vote:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Virgen, Mayor Pro Tem Delgado, and Mayor Hernandez
NOES: None
ABSTAIN: None
ABSENT: None

28. 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 Motion: 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
Made by: Councilmember Dr. Figueroa
Seconded by: Mayor Hernandez
Approved: 5-0, Unanimous roll call vote:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Virgen, Mayor Pro Tem Delgado, and Mayor Hernandez
NOES: None
ABSTAIN: None
ABSENT: None

29. Authorize the City of Coachella to Sponsor the Palm Springs International Film Festival ( PSIFF) in the Amount of $20,000
Motion: To authorize the City of Coachella to Sponsor the Palm Springs International Film Festival PSIFF) in the Amount of $20,000
Made by: Mayor Hernandez
Seconded by: Councilmember Dr. Figueroa
Approved: 5-0, Unanimous roll call vote:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Virgen, Mayor Pro Tem Delgado, and Mayor Hernandez
NOES: None
ABSTAIN: None
ABSENT: None

Item 7.

Minutes City Council Closed Session and Regular Meeting December 11, 2024

30. Approval of the 2025 City Council Meetings Calendar Motion: To approval of the 2025 City Council Meetings Calendar with modifications to not cancel meetings on Conference dates & Spring Break
Made by: Mayor Pro Tem Delgado
Seconded by: Councilmember Dr. Figueroa
Approved: 3-0-2:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, and Mayor Pro Tem Delgado NOES: Councilmember Virgen, and Mayor Hernandez
ABSTAIN: None
ABSENT: None

31. Coachella Healthy Food Truck Permit Pilot Program
Introduce Ordinance No. 1218 Coachella Healthy Food Truck Permit Pilot Program (ZOA No. 24-03) City Parks and Parcels in Downtown Zones (DT-PV and TR-PV Zones) Introduce Ordinance No. 1219 Coachella Healthy Food Truck Permit Pilot Program (ZOA No. 24-03) for Active Date Farms
Councilmember Virgen stepped away at 8:52 p.m. and returned at 8:58 p.m.

Motion: To approval Coachella Healthy Food Truck Permit Pilot Program - Ordinance No. 1218 (First Reading) & Introduce Ordinance No. 1219 ( First Reading) with modification to disallow alcohol Made by: Councilmember Dr. Figueroa
Seconded by: Councilmember Perez
Approved: 4-0, Unanimous roll call vote:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Virgen, and Mayor Pro Tem Delgado
NOES: None
ABSTAIN: Mayor Hernandez
ABSENT: None
PUBLIC HEARING CALENDAR (QUASI-JUDICIAL):

32. Ordinance No. 1220 ( First Reading) Zoning Ordinance Amendment No. 24-02 – Streamline Code Amendments - Phase 2 to Amend Coachella Municipal Code Title 17 Regarding Zoning District Permitted Uses, Development Standards and Development Review Process in the City - City-Initiated Councilmember Dr. Figueroa stepped away at 9:04 p.m. and returned at 9:05 p.m.

Item 7.

Minutes City Council Closed Session and Regular Meeting December 11, 2024

Motion: To approval Ordinance No. 1220 (First Reading) Zoning Ordinance Amendment No. 24-02 – Streamline Code Amendments - Phase 2 to Amend Coachella Municipal Code Title 17 Regarding Zoning District Permitted Uses, Development Standards and Development Review Process in the City - City-Initiated with amendment
Made by: Councilmember Virgen
Seconded by: Mayor Hernandez
Approved: 4-1-0:

AYES: Councilmember Perez, Councilmember Dr. Figueroa, Councilmember Virgen, and Mayor Hernandez
NOES: None
ABSTAIN: Mayor Pro Tem Delgado
ABSENT: None
PUBLIC COMMENTS ( NON- AGENDA ITEMS):

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

With the time being after the 8:00 p.m. and per Resolution No. 2019-34, Public Comments were moved up after item #32 on page 9.

REPORTS AND REQUESTS:

Council Comments/Report of Miscellaneous Committees.

City Manager’ s Comments.

ADJOURNMENT:

There being no further business to come before the City Council and the Agencies, Mayor Hernandez adjourned the meeting at 10:13 p.m.

Angela Zepeda
City Clerk

Item 7.

STAFF REPORT
8/6/2025
TO: Honorable Mayor and City Council Members
FROM: Lincoln G. Bogard, Finance Director
SUBJECT: Establish the Appropriations Limits for Fiscal Year 2025-26 SPECIFICS: a) Adopt Resolution No. 2025-45, establishing the appropriations limit for the City of Coachella for the fiscal year 2025-26;
b) Adopt Resolution No. SD-2025-04, establishing the appropriations limit for the Coachella Sanitary District for the fiscal year 2025-26; c) Adopt Resolution No. FD-2025-03, establishing the appropriations limit for the Coachella Fire Protection District for the fiscal year 2025-26 STAFF RECOMMENDATION:
a) Adopt Resolution No. 2025-45, establishing the appropriations limit for the City of Coachella for the fiscal year 2025-26;
b) Adopt Resolution No. SD-2025-04, establishing the appropriations limit for the Coachella Sanitary District for the fiscal year 2025-26;
c) Adopt Resolution No. FD-2025-03; establishing the appropriations limit for the Coachella Fire Protection District for the fiscal year 2025-26.

BACKGROUND:

In conjunction with the fiscal year budget, each year, the City of Coachella, Coachella Sanitary District, and Coachella Fire Protection District are required to establish their appropriations limit by resolution. For fiscal year 2024-25, the appropriations limits were as follows:

City of Coachella - $56,875,834 (an increase of $3,254,797) Coachella Sanitary District – $9,291,122 (an increase of $531,697) Coachella Fire Protection District – $5,022,033 (an increase of $287,393) The formula used to adjust the limit for fiscal year 2025-26 is the change in the California Per Capita Personal Income (6.44%) multiplied by the Riverside County population growth factor (0.76%) as published by the California Department of Finance. For the 2025-26 fiscal year, the calculation results in an increase factor of 1.0725. Multiplying the 2024-25 appropriation limits by the increase factor increases the appropriations limit for the 2025-26 fiscal year to the following:

Item 8.

City of Coachella - $60,999,332 (an increase of $4,123,498) Coachella Sanitary District – $9,964,728 (an increase of $673,606) Coachella Fire Protection District – $5,386,130 (an increase of $364,097) FISCAL IMPACT:

There is no fiscal impact at this time.

Item 8.

Resolution No. FD-2025-03
RESOLUTION NO. FD-2025-03

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COACHELLA FIRE

PROTECTION DISTRICT, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26 FOR THE COACHELLA FIRE PROTECTION DISTRICT IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE

CALIFORNIA GOVERNMENT CODE
WHEREAS, Article XIIIB of the Constitution of the State of California as proposed by the Initiative Measure approved by the people at the special statewide election held November 6, 1979, provides that the total annual appropriations subject to limitation of each local government shall not exceed the appropriations limit of such entity for the prior year adjusted for changes in the cost of living and population except as otherwise specifically provided for in said Article; and WHEREAS, the State Legislature added Division 9 (commencing with Section 7900) to Title 1 of the Government Code of the State of California to implement Article XIIIB of the California Constitution; and
WHEREAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year pursuant to Article XIIIB at a regularly scheduled meeting or a noticed special meeting and that fifteen days prior to such meeting, documentation used in the determination of the appropriations limit shall be available to the public; and WHEREAS, Section 7902 (a) of the Government Code sets forth the method for determining the appropriations limit for each local jurisdiction for the 2025-26 fiscal year; and WHEREAS, the Board of Directors of the Coachella Fire Protection District wishes to establish the appropriations limit for the fiscal year 2025-26 for the Coachella Fire Protection District.

NOW, THEREFORE BE IT RESOLVED by the Board of Directors of the Coachella Fire Protection District, as follows:

Section 1. That it hereby found and determined that the documentation used in the determination of the appropriations limit for the Coachella Fire Protection District for the fiscal year 2025-26 was available to the public from the Finance Department of the City of Coachella at least fifteen days prior to this date.

Section 2. That the appropriations limit for the Coachella Fire Protection District for fiscal year 2025-26, as established in accordance with Section 7902 (a) of the California Government Code, is $5,386,130.

Item 8.

Resolution No. FD-2025-03

Section 3. That the Board of Directors of the Coachella Fire Protection District has elected to utilize the California Per Capita Income and the Riverside County population growth factor in determining the appropriations limit for fiscal year 2025-26.

PASSED, APPROVED and ADOPTED this 6
th day of August, 2025.
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
___________________________________
Ryan Guiboa
City Attorney

Item 8.

Resolution No. FD-2025-03

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. FD-2025-03 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 6 th day of
August, 2025, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados,
Deputy City Clerk

Item 8.

Resolution No. SD-2025-04
RESOLUTION NO. SD-2025-04

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COACHELLA SANITARY

DISTRICT, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26 FOR THE COACHELLA SANITARY DISTRICT IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE CALIFORNIA

GOVERNMENT CODE
WHEREAS, Article XIIIB of the Constitution of the State of California as proposed by the Initiative Measure approved by the people at the special statewide election held November 6, 1979, provides that the total annual appropriations subject to limitation of each local government shall not exceed the appropriations limit of such entity for the prior year adjusted for changes in the cost of living and population except as otherwise specifically provided for in said Article; and WHEREAS, the State Legislature added Division 9 (commencing with Section 7900) to Title 1 of the Government Code of the State of California to implement Article XIIIB of the California Constitution; and
WHEREAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year pursuant to Article XIIIB at a regularly scheduled meeting or a noticed special meeting and that fifteen days prior to such meeting, documentation used in the determination of the appropriations limit shall be available to the public; and WHEREAS, Section 7902 (a) of the Government Code sets forth the method for determining the appropriations limit for each local jurisdiction for the 2025-26 fiscal year; and WHEREAS, the Board of Directors of the Coachella Sanitary District wishes to establish the appropriations limit for the fiscal year 2025-26 for the Coachella Sanitary District.

NOW, THEREFORE BE IT RESOLVED by the Board of Directors of the Coachella Sanitary District, as follows:

Section 1. That it hereby found and determined that the documentation used in the determination of the appropriations limit for the Coachella Sanitary District for the fiscal year 2025-26 was available to the public from the Finance Department of the City of Coachella at least fifteen days prior to this date.

Section 2. That the appropriations limit for the Coachella Sanitary District for fiscal year 2025-26, as established in accordance with Section 7902 (a) of the California Government Code, is $9,964,728.

Item 8.

Resolution No. SD-2025-04

Section 3. That the Board of Directors of the Coachella Sanitary District has elected to utilize the California Per Capita Income and the Riverside County population growth factor in determining the appropriations limit for fiscal year 2025-26 PASSED, APPROVED and ADOPTED this 6
th day of August, 2025.
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
___________________________________
Ryan Guiboa
City Attorney

Item 8.

Resolution No. SD-2025-04

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. SD-2025-04 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 6 th day of
August, 2025, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados,
Deputy City Clerk

Item 8.

Tmpd25e
RESOLUTION NO. 2025-45

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COACHELLA,

CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26 FOR THE CITY OF COACHELLA, CALIFORNIA IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE CALIFORNIA

GOVERNMENT CODE
WHEREAS, Article XIIIB of the Constitution of the State of California as proposed by the Initiative Measure approved by the people at the special statewide election held November 6, 1979, provides that the total annual appropriations subject to limitation of each local government shall not exceed the appropriations limit of such entity for the prior year adjusted for changes in the cost of living and population except as otherwise specifically provided for in said Article; and WHEREAS, the State Legislature added Division 9 (commencing with Section 7900) to Title 1 of the Government Code of the State of California to implement Article XIIIB of the California Constitution; and
WHEREAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year pursuant to Article XIIIB at a regularly scheduled meeting or a noticed special meeting and that fifteen days prior to such meeting, documentation used in the determination of the appropriations limit shall be available to the public; and WHEREAS, Section 7902 (a) of the Government Code sets forth the method for determining the appropriations limit for each local jurisdiction for the 2025-26 fiscal year; and WHEREAS, the CITY COUNCIL of the City of Coachella wishes to establish the appropriations limit for the fiscal year 2025-26 for the City of Coachella.

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

Section 1. That it hereby found and determined that the documentation used in the determination of the appropriations limit for the City of Coachella for the fiscal year 2025-26 was available to the public from the Finance Department of the City of Coachella at least fifteen days prior to this date.

Section 2. That the appropriations limit for the City of Coachella fiscal year 2025-26, as established in accordance with Section 7902 (a) of the California Government Code, is $60,999,332.

Section 3. That the City Council of the City of Coachella has elected to utilize the California Per Capita Income and the Riverside County population growth factor in determining the appropriations limit for fiscal year 2025-26.

Item 8.

Tmpd25e45
2 PASSED, APPROVED and ADOPTED this 6
th day of August, 2025.
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
___________________________________
Ryan Guiboa
City Attorney

Item 8.

Tmpd25e45
3 STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2025-45 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 6 th day of August,
2025, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados,
Deputy City Clerk

Item 8.

STAFF REPORT
August 6, 2025
TO: Honorable Mayor and City Council Members
FROM: Yolanda Lopez, Department of Human Resources
SUBJECT: Resolution No. 2025-46 Approval of Agreement Between the City of Coachella and Teamsters Local 1932 – Water & Sanitation/Utilities Employees Purpose: To Approve the Results of the Base Compensation Salary Study for Utility Operations
STAFF RECOMMENDATION:

Staff recommends that the City Council approve Resolution No. 2025-46, adopting the Side Letter Agreement between the City of Coachella and Teamsters Local 1932, representing Water & Sanitation/Utilities employees. This includes approval of the final compensation report submitted by Gallagher Benefit Services, Inc. (formerly Koff & Associates).

BACKGROUND:

On March 27, 2024, the Council approved conducting a Manpower Study and a Salary Study for Water and Sanitary Utility Operations as part of the 2021-2023 Memorandum of Understanding with the Sanitary and Miscellaneous Employees and Confidential Mid-Management Employees bargaining units. The Manpower Study was to be completed first, followed by the Salary Study.

On December 30, 2024, Gallagher Benefit Services, Inc. completed the initial base compensation report.

On June 26, 2025, the City’s compensation report was returned for revision to incorporate employee benefit comparisons and to reduce the number of survey comparator agencies to nine.

Following these revisions, the city engaged in meet-and-confer sessions with Teamsters Local 1932 to review the results of the Manpower and Salary Studies.

As a result of these discussions, the City and Teamsters Local 1932 have reached a Side Letter of Agreement that provides a 3% wage increase for eligible classifications for Fiscal Year 2025/2026. The increase will take effect with the first full pay period following City Council approval and will be retroactive to January 1, 2025. The remaining percentage pay will be distributed over the fiscal year.

The position of Chief Wastewater Collections is excluded from this increase, as its current salary already exceeds the market median.

Item 9.

APPROVED PAY ADJUSTMENTS FISCAL YEAR 2025/2026
Sanitary and Miscellaneous and Confidential MidManagement EmployeesPay Adjustment Assistant Engineer (Utilities) 3%
Environmental/Special Programs Manager 3%
Heavy Equipment Operator (Utilities) 3%
Sanitary Superintendent 3%
Senior Water Service Worker IV 3%
Treatment Plant Operator II 3%
Water Service Worker II 3%
Water Superintendent 3%
Note: The 3% increase will be effective August 28, 2025, and retroactive to January 1, 2025.

DISCUSSION/ANALYSIS:

Staff is asking that Council approve the
ALTERNATIVES:

1. Approve the action.

2. Do not approve the action.

FISCAL IMPACT:

The fiscal impact on salaries and benefits is $32,088.00 for FY 25/26. Funds would be appropriated from the Water and Wastewater budget.

Attachments
Resolution No. 2025-46
Side Letter Agreement between the City of Coachella and Teamsters Local 1932 Updated Salary Schedule

Item 9.

RESOLUTION NO. 2025-46

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF COACHELLA, CALIFORNIA, APPROVING A SIDE LETTER AGREEMENT WITH TEAMSTERS LOCAL 1932 – WATER &

SANITATION/UTILITIES EMPLOYEES, AND ADOPTING THE RESULTS OF THE

BASE COMPENSATION SALARY STUDY
WHEREAS, the Approval of Agreement Between the City of Coachella and Teamsters Local 1932 – Water & Sanitation/Utilities Employees is to approve the results of the Base Compensation Salary Study for Utility Operations;
WHEREAS, the City of Coachella and Teamsters Local 1932, representing Water & Sanitation/Utilities employees, are parties to a Memorandum of Understanding (MOU) that included the completion of a Manpower Study and a Salary Study; WHEREAS, the City retained Gallagher Benefit Services, Inc. (formerly Koff & Associates) to conduct the studies, with the Salary Study finalized on June 26, 2025, following revisions to reflect updated comparator data and employee benefit analysis; WHEREAS, the City and Teamsters Local 1932 have engaged in good faith negotiations and reached a Side Letter Agreement to implement the study’s findings; WHEREAS, the Side Letter Agreement provides a 3% wage increase for identified classifications, effective the first full pay period following City Council approval, retroactive to January 1, 2025;
WHEREAS, the position of Chief Wastewater Collections is excluded from the pay adjustment due to its current salary exceeding the market median; and WHEREAS, the total cost impact of the agreement is $32,088.00 for Fiscal Year 2025/2026, to be funded through the Water and Wastewater budget.

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

Section 1. Incorporation of Recitals. The City Council hereby finds and determines that the foregoing Recitals of this Resolution are true and correct and hereby incorporates them into this Resolution as though fully set forth herein.

Section 2. The City Council approves the Side Letter Agreement between the City of Coachella and Teamsters Local 1932 – Water & Sanitation/Utilities Employees. Adopt Resolution No. 2025-46, and formally adopts the results and recommendations of the Base Compensation Salary Study conducted by Gallagher Benefit Services, Inc.

Exhibit A: Side Letter Agreement

Item 9.

Resolution No. 2025-46

Section 3. Salary Schedule Update. The City Council acknowledges the salary range adjustment associated with the implementation of the 3% wage adjustments for eligible classifications, effective August 28, 2025, and retroactive to January 1, 2025. Salary Schedule attached hereto.

Exhibit B: Updated Salary Schedule
PASSED, APPROVED, and ADOPTED this 6
th day of August, 2025.
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER
___________________________________
City Attorney

Item 9.

Resolution No. 2025-46

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2025-46 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 6 th day of August
2025, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk

Item 9.

Item 9.

City of Coachella - Salary Schedule
Sanitary/Miscellaneous Employees
July 1, 2025 - June 30, 2026 (4% COLA effective July 1, 2025) (Revised by Council 8/6/25, Resolution No. 2025-46)
Position Title Step A B C D E
Accountant h 45.42 47.69 50.08 52.58
m 7,873.24 8,266.90 8,680.24 9,114.26
Grade 13 a 94,478.84 99,202.78 104,162.92 109,371.07
Accounting Technician I h 32.86 34.50 36.23 38.04
m 5,695.32 5,980.09 6,279.10 6,593.05
Grade 7 a 68,343.90 71,761.09 75,349.15 79,116.60
Accounting Technician II h 38.11 40.02 42.02 44.12
m 6,605.76 6,936.05 7,282.85 7,647.00
Grade 30 a 79,269.16 83,232.61 87,394.24 91,763.96
Assistant Engineer h 47.33 49.70 52.19 54.79
m 8,204.45 8,614.68 9,045.41 9,497.68
Grade 21 a 98,453.45 103,376.12 108,544.92 113,972.17
Assistant Engineer (Utilities) h 48.75 51.19 53.75 56.44 m 8,450.59 8,873.12 9,316.77 9,782.61
Grade 31 a 101,407.05 106,477.40 111,801.27 117,391.34
Building Inspector I h 37.09 38.94 40.89 42.94
m 6,428.99 6,750.44 7,087.96 7,442.36
Grade 11 a 77,147.86 81,005.25 85,055.51 89,308.29
Building Inspector II h 42.48 44.61 46.84 49.18
m 7,363.89 7,732.08 8,118.68 8,524.62
Grade 19 a 88,366.62 92,784.95 97,424.20 102,295.41
Building Maintenance Worker h 27.05 28.41 29.83 31.32
m 4,689.16 4,923.62 5,169.80 5,428.29
Grade 2 a 56,269.89 59,083.39 62,037.56 65,139.43
Code Enforcement Aide h 19.92 20.91 21.96 23.06
m 3,452.41 3,625.03 3,806.28 3,996.60
Grade 10 a 41,428.93 43,500.37 45,675.39 47,959.16
Code Enforcement Officer h 34.80 36.54 38.37 40.29
m 6,032.81 6,334.45 6,651.17 6,983.73
Grade 9 a 72,393.72 76,013.41 79,814.08 83,804.78
Construction Project Coordinator h 47.29 49.65 52.13 54.74 m 8,196.07 8,605.87 9,036.17 9,487.97
Grade 20 a 98,352.83 103,270.47 108,433.99 113,855.69
Customer Service Representative I h 28.40 29.81 31.31 32.87 m 4,921.83 5,167.93 5,426.32 5,697.64
Grade 28 a 59,062.01 62,015.11 65,115.86 68,371.65
Customer Service Representative II h 29.80 31.29 32.85 34.49 m 5,164.99 5,423.24 5,694.40 5,979.12
Grade 29 a 61,979.89 65,078.88 68,332.83 71,749.47

Item 9.

Customer Service Technician h 35.59 37.37 39.24 41.20
m 6,169.06 6,477.51 6,801.39 7,141.46
Grade 17 a 74,028.74 77,730.18 81,616.69 85,697.52
Department Assistant I h 27.05 28.41 29.83 31.32
m 4,689.16 4,923.62 5,169.80 5,428.29
Grade 2 a 56,269.89 59,083.39 62,037.56 65,139.43
Department Assistant II h 28.38 29.80 31.29 32.86
m 4,919.74 5,165.72 5,424.01 5,695.21
Grade 3 a 59,036.85 61,988.69 65,088.13 68,342.54
Economic Development h 35.59 37.37 39.24 41.20
Technician m 6,169.06 6,477.51 6,801.39 7,141.46
Grade 17 a 74,028.74 77,730.18 81,616.69 85,697.52
Engineering Technician h 35.59 37.37 39.24 41.20
m 6,169.06 6,477.51 6,801.39 7,141.46
Grade 17 a 74,028.74 77,730.18 81,616.69 85,697.52
Fleet Services Coordinator h 48.74 51.17 53.73 56.42
m 8,447.61 8,869.99 9,313.49 9,779.17
Grade 22 a 101,371.33 106,439.90 111,761.89 117,349.99
Graffiti Maintenance Worker h 30.45 31.97 33.57 35.25
m 5,278.18 5,542.09 5,819.20 6,110.16
Grade 5 a 63,338.22 66,505.13 69,830.38 73,321.90
Heavy Equipment Operator h 32.65 34.28 36.00 37.80
m 5,659.69 5,942.67 6,239.81 6,551.80
Grade 23 a 67,916.28 71,312.09 74,877.69 78,621.58
Heavy Equipment Operator (Utilities) h 33.63 35.32 37.08 38.94 m 5,829.82 6,121.32 6,427.38 6,748.75
Grade 32 a 69,957.89 73,455.78 77,128.57 80,985.00
Human Resources Technician h 35.47 37.24 39.11 41.06
m 6,148.10 6,455.50 6,778.28 7,117.19
Grade 24 a 73,777.20 77,466.06 81,339.36 85,406.33
Information Technology Technician h 35.59 37.37 39.24 41.20 m 6,169.06 6,477.51 6,801.39 7,141.46
Grade 17 a 74,028.74 77,730.18 81,616.69 85,697.52
Payroll Specialist h 41.34 43.40 45.57 47.85
m 7,164.75 7,522.99 7,899.13 8,294.09
Grade 18 a 85,976.97 90,275.82 94,789.61 99,529.10
Parks Ranger h 31.59 33.17 34.83 36.57
m 5,475.23 5,748.99 6,036.44 6,338.26
Grade 25 a 65,702.71 68,987.84 72,437.24 76,059.10
Planning Technician h 33.55 35.22 36.99 38.83
m 5,814.81 6,105.55 6,410.82 6,731.37
Grade 8 a 69,777.69 73,266.57 76,929.90 80,776.39
Public Works/Landscape & h 42.48 44.61 46.84 49.18
Lighting Inspector m 7,363.89 7,732.08 8,118.68 8,524.62 Grade 19 a 88,366.62 92,784.95 97,424.20 102,295.41
Public Works Parks Maintenance h 27.05 28.41 29.83 31.32 Worker Trainee/I/II m 4,689.16 4,923.62 5,169.80 5,428.29

Item 9.

Grade 2 a 56,269.89 59,083.39 62,037.56 65,139.43
Public Works Streets Maintenance h 27.91 29.31 30.77 32.31 Worker Trainee/I/II m 4,837.99 5,079.89 5,333.88 5,600.57 Grade 26 a 58,055.84 60,958.63 64,006.56 67,206.89
Recreation Services Coordinator h 29.76 31.25 32.81 34.45 m 5,158.70 5,416.64 5,687.47 5,971.84
Grade 4 a 61,904.43 64,999.65 68,249.63 71,662.11
Senior Accountant h 53.37 56.03 58.84 61.78
m 9,249.97 9,712.47 10,198.09 10,708.00
Grade 16 a 110,999.63 116,549.61 122,377.09 128,495.95
Senior Center Assistant h 27.05 28.41 29.83 31.32
m 4,689.16 4,923.62 5,169.80 5,428.29
Grade 2 a 56,269.89 59,083.39 62,037.56 65,139.43
Senior Center Coordinator h 31.41 32.98 34.63 36.36
m 5,443.78 5,715.97 6,001.77 6,301.86
Grade 6 a 65,325.40 68,591.67 72,021.25 75,622.31
Senior Center Operator h 27.91 29.31 30.77 32.31
m 4,837.99 5,079.89 5,333.88 5,600.57
Grade 26 a 58,055.84 60,958.63 64,006.56 67,206.89
Senior Code Enforcement h 40.02 42.02 44.12 46.32
Officer m 6,936.26 7,283.08 7,647.23 8,029.59
Grade 15 a 83,235.17 87,396.93 91,766.77 96,355.11
Senior Maintenance Worker h 32.41 34.03 35.73 37.52
m 5,617.77 5,898.65 6,193.59 6,503.27
Grade 27 a 67,413.19 70,783.85 74,323.04 78,039.20
Senior Water Service Worker III h 33.55 35.22 36.99 38.83 m 5,814.81 6,105.55 6,410.82 6,731.37
Grade 8 a 69,777.69 73,266.57 76,929.90 80,776.39
Senior Water Service Worker IV h 38.03 39.94 41.93 44.03 m 6,592.49 6,922.11 7,268.22 7,631.63
Grade 14 a 79,109.88 83,065.38 87,218.65 91,579.58
Senior Water Service Worker IV h 39.17 41.12 43.18 45.34 m 6,788.84 7,128.28 7,484.70 7,858.93
Grade 33 a 81,466.11 85,539.42 89,816.39 94,307.21
Street Sweeper Operator h 32.65 34.28 36.00 37.80
m 5,659.69 5,942.67 6,239.81 6,551.80
Grade 23 a 67,916.28 71,312.09 74,877.69 78,621.58
Treatment Plant Operator h 26.94 28.29 29.71 31.19
Trainee m 4,670.29 4,903.81 5,149.00 5,406.45
Grade 1 a 56,043.50 58,845.68 61,787.96 64,877.36
Treatment Plant Operator I h 30.45 31.97 33.57 35.25
m 5,278.18 5,542.09 5,819.20 6,110.16
Grade 5 a 63,338.22 66,505.13 69,830.38 73,321.90
Treatment Plant Operator II h 33.55 35.22 36.99 38.83
m 5,814.81 6,105.55 6,410.82 6,731.37
Grade 8 a 69,777.69 73,266.57 76,929.90 80,776.39
Treatment Plant Operator II h 34.55 36.28 38.09 39.99

Item 9.
m 5,988.46 6,287.88 6,602.28 6,932.39
Grade 34 a 71,861.50 75,454.58 79,227.31 83,188.67
Treatment Plant Operator III h 38.03 39.94 41.93 44.03
m 6,592.49 6,922.11 7,268.22 7,631.63
Grade 14 a 79,109.88 83,065.38 87,218.65 91,579.58
Vehicle/Equipment Mechanic I h 29.76 31.25 32.81 34.45
m 5,158.70 5,416.64 5,687.47 5,971.84
Grade 4 a 61,904.43 64,999.65 68,249.63 71,662.11
Vehicle/Equipment Mechanic II h 41.34 43.40 45.57 47.85 m 7,164.75 7,522.99 7,899.13 8,294.09
Grade 18 a 85,976.97 90,275.82 94,789.61 99,529.10
Water Service Worker I h 26.94 28.29 29.71 31.19
m 4,670.29 4,903.81 5,149.00 5,406.45
Grade 1 a 56,043.50 58,845.68 61,787.96 64,877.36
Water Service Worker II h 30.45 31.97 33.57 35.25
m 5,278.18 5,542.09 5,819.20 6,110.16
Grade 5 a 63,338.22 66,505.13 69,830.38 73,321.90
Water Service Worker II h 31.37 32.93 34.58 36.31
m 5,436.84 5,708.68 5,994.12 6,293.82
Grade 35 a 65,242.11 68,504.22 71,929.43 75,525.90

Item 9.

E
"O"
Performance Step (5%)

55.21 57.97
9,569.97 10,048.47
114,839.62 120,581.60

39.94 41.94
6,922.70 7,268.84
83,072.43 87,226.06

46.32 48.64
8,029.35 8,430.81
96,352.15 101,169.76

57.53 60.41
9,972.56 10,471.19
119,670.78 125,654.32

59.26 add 3% 62.22
10,271.74 10,785.33 add 3%
123,260.90 129,423.95 add 3%

45.08 47.34
7,814.48 8,205.20
93,773.70 98,462.39

51.64 54.22
8,950.85 9,398.39
107,410.18 112,780.69

32.88 34.53
5,699.70 5,984.69
68,396.41 71,816.23

24.21 25.42
4,196.43 4,406.25
50,357.12 52,874.98

42.31 44.42
7,332.92 7,699.56
87,995.02 92,394.77

57.48 60.35
9,962.37 10,460.49
119,548.48 125,525.90

34.51 36.24
5,982.52 6,281.65
71,790.24 75,379.75

36.22 38.03
6,278.08 6,591.98
75,336.94 79,103.79

Item 9.

43.26 45.42
7,498.53 7,873.46
89,982.40 94,481.52

32.88 34.53
5,699.70 5,984.69
68,396.41 71,816.23

34.50 36.22
5,979.97 6,278.97
71,759.66 75,347.65

43.26 45.42
7,498.53 7,873.46
89,982.40 94,481.52

43.26 45.42
7,498.53 7,873.46
89,982.40 94,481.52

59.24 62.20
10,268.12 10,781.53
123,217.49 129,378.36

37.01 38.86
6,415.67 6,736.45
76,988.00 80,837.40

39.69 41.67
6,879.39 7,223.36
82,552.66 86,680.29

40.88 add 3% 42.93
7,086.19 7,440.50 add 3%
85,034.25 89,285.96 add 3%

43.11 45.27
7,473.05 7,846.71
89,676.65 94,160.48

43.26 45.42
7,498.53 7,873.46
89,982.40 94,481.52

50.24 52.76
8,708.80 9,144.24
104,505.55 109,730.83

38.40 40.31
6,655.17 6,987.93
79,862.05 83,855.16

40.78 42.82
7,067.93 7,421.33
84,815.21 89,055.97

51.64 54.22
8,950.85 9,398.39
107,410.18 112,780.69

32.88 34.53
5,699.70 5,984.69

Item 9.
68,396.41 71,816.23

33.93 35.62
5,880.60 6,174.63
70,567.24 74,095.60

36.18 37.98
6,270.43 6,583.96
75,245.22 79,007.48

64.87 68.11
11,243.40 11,805.57
134,920.75 141,666.78

32.88 34.53
5,699.70 5,984.69
68,396.41 71,816.23

38.17 40.08
6,616.95 6,947.80
79,403.43 83,373.60

33.93 35.62
5,880.60 6,174.63
70,567.24 74,095.60

48.64 51.07
8,431.07 8,852.63
101,172.87 106,231.51

39.39 41.36
6,828.43 7,169.85
81,941.16 86,038.21

40.78 42.82
7,067.93 7,421.33
84,815.21 89,055.97

46.23 48.54
8,013.21 8,413.87
96,158.56 100,966.49

47.61 add 3% 49.99
8,251.88 8,664.47 add 3%
99,022.57 103,973.70 add 3%

39.69 41.67
6,879.39 7,223.36
82,552.66 86,680.29

32.75 34.39
5,676.77 5,960.61
68,121.23 71,527.29

37.01 38.86
6,415.67 6,736.45
76,988.00 80,837.40

40.78 42.82
7,067.93 7,421.33
84,815.21 89,055.97

41.99 add 3% 44.09

Item 9.
7,279.01 7,642.96 add 3%
87,348.11 91,715.51 add 3%

46.23 48.54
8,013.21 8,413.87
96,158.56 100,966.49

36.18 37.98
6,270.43 6,583.96
75,245.22 79,007.48

50.24 52.76
8,708.80 9,144.24
104,505.55 109,730.83

32.75 34.39
5,676.77 5,960.61
68,121.23 71,527.29

37.01 38.86
6,415.67 6,736.45
76,988.00 80,837.40

38.13 add 3% 40.03
6,608.52 6,938.94 add 3%
79,302.19 83,267.30 add 3%

Item 9.

City of Coachella - Salary Schedule
Confidential Mid-Management Employees
July 1, 2025 - June 30, 2025 (3% COLA Effective July 1, 2025) (Revised by Council 8/6/25, Resolution No. 2025-46)
Step A B C D E
Accounting Manager h 61.65 64.73 67.96 71.36
m 10,685.30 11,219.57 11,780.55 12,369.58
Grade 37 a 128,223.66 134,634.84 141,366.58 148,434.91
Administrative Assistant h 37.30 39.16 41.12 43.18
m 6,464.74 6,787.98 7,127.38 7,483.75
Grade 10 a 77,576.93 81,455.78 85,528.57 89,804.99
Assistant to the City Manager h 61.47 64.54 67.77 71.15 a 10,654.16 11,186.87 11,746.22 12,333.53
Grade 36 m 127,849.97 134,242.47 140,954.59 148,002.32
Associate Planner h 47.81 50.20 52.71 55.35
m 8,287.49 8,701.87 9,136.96 9,593.81
Grade 32 a 99,449.94 104,422.44 109,643.56 115,125.74
Building Official h 60.92 63.96 67.16 70.52
m 10,558.67 11,086.60 11,640.93 12,222.98
Grade 25 a 126,704.00 133,039.21 139,691.17 146,675.72
Chief Treatment/Collections h 49.53 52.00 54.60 57.33
System Operator m 8,584.37 9,013.58 9,464.26 9,937.48
Grade 29 a 103,012.40 108,163.02 113,571.17 119,249.73
Civil Engineering Associate h 47.13 49.49 51.96 54.56
m 8,169.16 8,577.62 9,006.50 9,456.83
Grade 31 a 98,029.94 102,931.43 108,078.01 113,481.91
Code Compliance Manager h 60.92 63.96 67.16 70.52
m 10,558.67 11,086.60 11,640.93 12,222.98
Grade 25 a 126,704.00 133,039.21 139,691.17 146,675.72
Development Services h 41.17 43.22 45.38 47.65
Technician m 7,135.30 7,492.07 7,866.67 8,260.00
Grade 17 a 85,623.61 89,904.79 94,400.03 99,120.03
Community Services h 37.30 39.16 41.12 43.18
Coordinator m 6,464.74 6,787.98 7,127.38 7,483.75
Grade 10 a 77,576.93 81,455.78 85,528.57 89,804.99
Customer Service Supervisor h 46.44 48.76 51.19 53.75
m 8,048.75 8,451.19 8,873.75 9,317.44
Grade 34 a 96,585.02 101,414.27 106,484.99 111,809.24
Deputy City Clerk h 46.44 48.76 51.19 53.75
m 8,048.75 8,451.19 8,873.75 9,317.44
Grade 22 a 96,585.02 101,414.27 106,484.99 111,809.24
Economic Development h 61.95 65.04 68.29 71.71
Manager m 10,737.21 11,274.07 11,837.77 12,429.66
Grade 38 a 128,846.46 135,288.79 142,053.23 149,155.89
Environmental/ h 47.81 50.20 52.71 55.35
Special Programs Manager m 8,287.49 8,701.87 9,136.96 9,593.81

Item 9.

Grade 32 a 99,449.94 104,422.44 109,643.56 115,125.74
Environmental/ h 49.25 51.72 54.30 57.02
Special Programs Manager m 8,537.46 8,964.34 9,412.55 9,883.18 Grade 11 a 102,449.57 107,572.05 112,950.65 118,598.18
Executive Assistant h 41.17 43.22 45.38 47.65
m 7,135.30 7,492.07 7,866.67 8,260.00
Grade 17 a 85,623.61 89,904.79 94,400.03 99,120.03
Finance Manager h 61.65 64.73 67.96 71.36
m 10,685.30 11,219.57 11,780.55 12,369.58
Grade 37 a 128,223.66 134,634.84 141,366.58 148,434.91
Finance Services Supervisor h 46.44 48.76 51.19 53.75
m 8,048.75 8,451.19 8,873.75 9,317.44
Grade 34 a 96,585.02 101,414.27 106,484.99 111,809.24
Grants Manager h 56.26 59.07 62.02 65.12
m 9,751.09 10,238.65 10,750.58 11,288.11
Grade 24 a 117,013.12 122,863.77 129,006.96 135,457.31
Information Technology h 69.19 72.65 76.28 80.10
Manager m 11,993.20 12,592.86 13,222.50 13,883.63
Grade 40 a 143,918.41 151,114.33 158,670.05 166,603.55
Management Analyst h 45.73 48.01 50.41 52.93
m 7,925.81 8,322.11 8,738.21 9,175.12
Grade 14 a 95,109.78 99,865.27 104,858.53 110,101.45
Parks and Recreation Services h 56.26 59.07 62.02 65.12 Manager m 9,751.09 10,238.65 10,750.58 11,288.11
Grade 24 a 117,013.12 122,863.77 129,006.96 135,457.31
Parks Supervisor h 46.44 48.76 51.19 53.75
m 8,048.75 8,451.19 8,873.75 9,317.44
Grade 34 a 96,585.02 101,414.27 106,484.99 111,809.24
Permit Technician h 38.18 40.09 42.10 44.20
m 6,618.37 6,949.29 7,296.75 7,661.59
Grade 12 a 79,420.44 83,391.46 87,561.04 91,939.09
Planning Manager h 74.02 77.72 81.61 85.69
m 12,829.84 13,471.33 14,144.90 14,852.14
Grade 41 a 153,958.07 161,655.97 169,738.77 178,225.71
Principal Planner h 60.92 63.96 67.16 70.52
m 10,558.67 11,086.60 11,640.93 12,222.98
Grade 39 a 126,704.00 133,039.21 139,691.17 146,675.72
Sanitary Superintendent h 56.26 59.07 62.02 65.12
m 9,751.09 10,238.65 10,750.58 11,288.11
Grade 24 a 117,013.12 122,863.77 129,006.96 135,457.31
Sanitary Superintendent h 57.95 60.85 63.89 67.08
m 10,044.29 10,546.50 11,073.82 11,627.52
Grade 15 a 120,531.42 126,558.00 132,885.89 139,530.19
Senior Civil Engineer h 60.92 63.96 67.16 70.52
m 10,558.67 11,086.60 11,640.93 12,222.98
Grade 25 a 126,704.00 133,039.21 139,691.17 146,675.72
Senior Management Analyst h 56.26 59.07 62.02 65.12
m 9,751.09 10,238.65 10,750.58 11,288.11
Grade 24 a 117,013.12 122,863.77 129,006.96 135,457.31

Item 9.

Senior Planner h 52.76 55.40 58.17 61.08
m 9,144.89 9,602.14 10,082.25 10,586.36
Grade 23 a 109,738.72 115,225.66 120,986.94 127,036.29
Streets Supervisor h 46.44 48.76 51.19 53.75
m 8,048.75 8,451.19 8,873.75 9,317.44
Grade 34 a 96,585.02 101,414.27 106,484.99 111,809.24
Streets Superintendent/ h 53.05 55.70 58.48 61.41
Emergency Services Coordinator m 9,194.72 9,654.45 10,137.18 10,644.04 Grade 33 a 110,336.62 115,853.45 121,646.12 127,728.43
Water Superintendent h 56.26 59.07 62.02 65.12
m 9,751.09 10,238.65 10,750.58 11,288.11
Grade 24 a 117,013.12 122,863.77 129,006.96 135,457.31
Water Superintendent h 57.95 60.85 63.89 67.08
m 10,044.29 10,546.50 11,073.82 11,627.52
Grade 18 a 120,531.42 126,558.00 132,885.89 139,530.19

Item 9.

E
"O"
Performance Step (5%)

74.93 78.68
12,988.05 13,637.46
155,856.65 163,649.49

45.33 47.60
7,857.94 8,250.83
94,295.24 99,010.01

74.71 78.45
12,950.20 13,597.71
155,402.44 163,172.56

58.12 61.02
10,073.50 10,577.18
120,882.02 126,926.12

74.04 77.75
12,834.13 13,475.83
154,009.51 161,709.99

60.20 63.21
10,434.35 10,956.07
125,212.21 131,472.83

57.29 60.15
9,929.67 10,426.15
119,156.00 125,113.80

74.04 77.75
12,834.13 13,475.83
154,009.51 161,709.99

50.04 52.54
8,673.00 9,106.65
104,076.03 109,279.83

45.33 47.60
7,857.94 8,250.83
94,295.24 99,010.01

56.44 59.26
9,783.31 10,272.47
117,399.70 123,269.68

56.44 59.26
9,783.31 10,272.47
117,399.70 123,269.68

75.30 79.06
13,051.14 13,703.70
156,613.68 164,444.37

58.12 61.02
10,073.50 10,577.18

Item 9.
120,882.02 126,926.12

59.87 62.86
10,377.34 10,896.21
124,528.09 130,754.49

50.04 52.54
8,673.00 9,106.65
104,076.03 109,279.83

74.93 78.68
12,988.05 13,637.46
155,856.65 163,649.49

56.44 59.26
9,783.31 10,272.47
117,399.70 123,269.68

68.38 71.80
11,852.51 12,445.14
142,230.17 149,341.68

84.10 88.31
14,577.81 15,306.70
174,933.73 183,680.41

55.58 58.36
9,633.88 10,115.57
115,606.53 121,386.85

68.38 71.80
11,852.51 12,445.14
142,230.17 149,341.68

56.44 59.26
9,783.31 10,272.47
117,399.70 123,269.68

46.41 48.73
8,044.67 8,446.90
96,536.04 101,362.85

89.97 94.47
15,594.75 16,374.49
187,137.00 196,493.85

74.04 77.75
12,834.13 13,475.83
154,009.51 161,709.99

68.38 71.80
11,852.51 12,445.14
142,230.17 149,341.68

70.44 73.96
12,208.89 12,819.34
146,506.70 153,832.03

74.04 77.75
12,834.13 13,475.83
154,009.51 161,709.99

68.38 71.80
11,852.51 12,445.14
142,230.17 149,341.68

Item 9.

64.13 67.34
11,115.68 11,671.46
133,388.10 140,057.51

56.44 59.26
9,783.31 10,272.47
117,399.70 123,269.68

64.48 67.70
11,176.24 11,735.05
134,114.85 140,820.59

68.38 71.80
11,852.51 12,445.14
142,230.17 149,341.68

70.44 73.96
12,208.89 12,819.34
146,506.70 153,832.03

Item 9.

STAFF REPORT
8/6/2025
TO: Honorable Mayor and City Council Members
FROM: Celina Jimenez, Director of Economic Development
SUBJECT: Approve a Sponsorship Request from the Codex Creation Committee for the 2025 Run With Los Muertos Event in the Amount of $45,000 and Authorize the Operation of a Beer Garden on November 1, 2025 in Downtown Sixth Street from 4:00 PM to 12:00 PM
STAFF RECOMMENDATION:

Staff recommends that the City Council consider approving a sponsorship request from the Codex Creation Committee for the 2025 Run With Los Muertos Event in the amount of $45,000 and authorize the operation of a Beer Garden on November 1, 2025 in downtown Sixth Street from 4:00 PM to 12:00 PM.

BACKGROUND:

The Run With Los Muertos event began in 2013 and has since flourished into a full-scale block party featuring a procession, a 5K run/walk, vendor village, food, a beer garden, and multiple stages featuring live entertainment.

DISCUSSION/ANALYSIS:

Staff received the attached $45,000-dollar sponsorship request from Codex Creation Committee for the 2025 Run With Los Muertos Event. This year’s event is scheduled for Saturday, November 1, 2025. The event will feature: entertainment, staging, the 5K run/walk, beer garden, procession, awards, food and beverages. Through the years, the City has provided in-kind support for traffic control, public safety, and has funded all lighting rental expenses for a total value of approximately $21,000 as detailed below:

Traffic Control $10,900
Trash Cans + Dumpster $1,800
Temporary Lighting $2,300
City staff over-time $6,000
Total $21,000

Item 10.
2025 Run With Los Muertos Event - Projected Costs
Entertainment $13,843.39
Staging $20,091.95
Outside Service $9,777.53
Equipment/Supplies $6,960.97
Permits + Insurance $1,869.27
Video Production $16,718.50
Admin/Management $22,000.00
Start/Finish Line Buildout $4,950.00
Cantina Buildout $16,148.22
Paseo Buildout $10,450.00
Production Staff $19,088.70
Printing $1,145.01
5K $9,863.59
Photography $1,248.50
Procession $2,750.00
Awards $1,815.00
Food and Beverage $1,046.00
TOTAL $159,766.63
[Projected Costs provided by the event organizers, the Codex Creation Committee] FISCAL IMPACT:

The requested action will fiscally impact the General Fund through the budget process for FY 25- 26 in the amount of $45,000 plus $21,000 for a total amount of $66,000.

ATTACHMENT:

1. Sponsorship Request Letter

Item 10.

May 28, 2025
Bill Pattison
City Manager
City of Coachella
53990 Enterprise Way
Coachella, CA 92236
Dear Bill Pattison,
On behalf of the Codex Creation Committee Board and the Run with Los Muertos Team, we are pleased to once again bring a premier Coachella Valley event to the City of Coachella.

Run with Los Muertos was proudly born in the City of Coachella, and now hopes to celebrate its 12th year on November 1, 2025. Since its inception, this event has succeeded in its mission to create a regional celebration that encourages the whole family to come together in honor of a centuries old tradition. By combining art, culture, health, and wellness, our event not only serves as a platform for local residents, it promotes tourism to Coachella by welcoming new visitors from all over the US, Canada, and Mexico. Nearly a thousand runners were at the starting line with several thousand more joining last year's event. We expect this year's run to be the best one yet.

This event would not be possible without a strong partnership with the City of Coachella. In particular, the financial support we receive has allowed the event to grow year after year. To that end, we are hoping to solidify and receive the sponsorship funds as early as possible.

This will allow us to more efficiently plan and stretch the monetary value.

We are requesting the same package as last year which included a $45,000 check and in kind services. The true value of the event is now closer to $200,000 presenting tremendous value to the City.

Please let me know if you need anything from me or the team. We are excited and eager to get the ball rolling.

Very best,
Arlene Amick
Chairwoman
Codex Creation Committee

Item 10.

STAFF REPORT
8/6/2025
TO: Honorable Mayor and City Council Members
FROM: Celina Jimenez, Director of Economic Development
SUBJECT: Approve a Sponsorship Request for Raices Cultura for their 2025 Dia de los Muertos Celebration in the Amount of $20,000
STAFF RECOMMENDATION:

Staff recommends that the City Council consider approving a sponsorship request for Raices Cultura in the amount of $20,000 to be the Presenting Sponsor of their Dia de los Muertos celebration on November 1, 2025.

BACKGROUND:

Since 2004, the Dia de los Muertos celebration event by Raices Cultura has grown year after year, bringing in more than 4,000 attendees together to celebrate art, culture, and community health with the main event being the Run with Los Muertos 5k Race. Funding for Raices Cultura sponsors unique art displays from large-scale Calaveras painted by local artists, to the traditional ‘ofrendas’ built by intergenerational family members, artists, and community organizations; the community art gallery features over a dozen visual artists, a special commission of two over-sized ‘titeres’ - La Catrina y El Viejito - by expert puppet-makers for the procession, the doubling of its thematic community-based art workshops, an interactive art installation photo op area, and a curated Mercadito de Arte vendor area.

DISCUSSION/ANALYSIS:

Presenting Sponsor Benefits: Chicomecoatl (Nourishment) - $20,000 (1 available)  Presenting Sponsor at 2025 Dia de Los Muertos Community Celebration on November 1  Sponsor of Special Project Art Installation for event with a Presenting Sponsor post on social media
 Sponsor of Art Activity Zone at the event with sponsor logo signage  Custom floor graphics with Sponsor logo in thematic design at the event  Tour of local museum for 4 with Raices Cultura’s Executive Director + lunch in Palm Springs (TBD)
 Invitation for 6 to private Artist Dinner (TBD)

Item 11.
 Logo displayed as 2025 Presenting Sponsor on all printed material and on website in perpetuity
 Formal acknowledgement by Master of Ceremonies during opening remarks FISCAL IMPACT:

Should the City Council approve the request as submitted, an appropriation of $20,000 from Undesignated General Fund Reserves will be required to allow for sponsorship award in the requested amount of $20,000. If approved the appropriation will be made to the event from the General Fund.

ATTACHMENT:

1. Sponsorship Request

Item 11.

Dear Mr. Bill Pattison, City Manager, City of Coachella:

Raices Cultura would like to request your consideration for the City to renew its commitment as the Presenting Sponsor for our Dia de Los Muertos Celebration in Coachella on November 1, 2025. Your support will sustain this long-standing tradition and demonstrate to the public that the City of Coachella continues to value the power of art & culture to transform communities and uplift residents.

Who We Are: Raices Cultura is committed to the empowerment of youth and adult residents through artistic selfexpression and community building. We promote the preservation of cultural traditions and the development of personal voice, creativity, and civic engagement through the arts.

Event Sponsorship: This inclusive event attracts a diverse audience from the Coachella Valley and beyond where all are welcome. Raices Cultura’s priority is to highlight the heritage and arts & culture practices which honor the ancient indigenous traditions of Mesoamerican peoples, combined with Mexican and Spanish cultural influences, that celebrate the lives of loved ones who are no longer with us.

Since 2005, we have proudly staged our event in the City of Coachella and it has grown year after year with thousands of attendees gathering together to celebrate art, culture, & community. Sponsorships for this event support unique art displays such as our oversized calaveras painted by local artists, traditional ofrendas built by intergenerational family members, artists, and community organizations, interactive art installations and special projects that feature visual artists, as well as numerous thematic workshops that educate attendees about cultural art, an activity zone, a curated artist vendor market, and more!
We respectfully request your support for our annual Dia de Los Muertos celebration. Your sponsorship will not only foster sustainability for our organization & the important work we do, it also provides greater economic support for artists and expands the creative offerings at this annual event. It is a wonderful opportunity to proudly display your commitment to strengthening our community and increasing access to art & culture in the City of Coachella.

In Community,
Marnie L. Navarro, BA, MFA
Executive Director
Raices Cultura
1536 7th Street | PO Box 714 Coachella, CA 92236 | www.raicescultura.org

Item 11.
2025 Sponsorship Levels
Presenting Sponsor: Chicomecoatl (Nourishment) - $20,000 (1 available) ● Presenting Sponsor of Raices Cultura’s 2025 Dia de Los Muertos Community Celebration on November 1 ● Sponsor of Special Project Art Installation for event with a Presenting Sponsor post on social media ● Sponsor of Art Activity Zone at the event with sponsor logo signage ● Custom floor graphics with Sponsor logo in thematic design at the event ● Tour of local museum for 4 with Raices Cultura’s Executive Director and lunch in Palm Springs (TBD) ● Invitation for 6 to private Artist Dinner (TBD)
● Logo displayed as 2025 Presenting Sponsor on any printed material and organization website in perpetuity** ● Formal acknowledgement by Master of Ceremonies during opening remarks Visionary Sponsor: Coatlicue (Supreme Goddess) - $15,000 (1 available) ● Partner Sponsor of Raices Cultura’s 2025 Dia de Los Muertos Community Celebration on November 1 ● Sponsor of Mercadito de Arte at the event with Partner Sponsor signage and post on social media ● (1) Special art display by Raices Cultura for a future private or community event of sponsor’s choice*** ● Invitation for 4 to private Artist Dinner (TBD)
● Logo or Name as 2025 Partner Sponsor on any printed event materials and organization website in perpetuity** ● Large logo on signage displayed at event in prominent location as Partner Sponsor** Program Sponsor: Quetzalcoatl (Creator of Earth) - $10,000 (2 available) ● (1) 4’x4’ Calavera Gigante painted by a local artist unveiled at Nov. 1 event with sponsor name placard* ● Sponsor (1) of the following programs for a year: Nepantleras Women’s Group, Media Production, or Open Mic ● Invitation for 4 to private Artist Dinner (TBD)
● Logo or Name as Gold Sponsor on any printed event materials and organization website in perpetuity** ● Medium logo on signage displayed at event in prominent location** Collaborator Sponsor: Tezcatlipoca (Earth Co-Creator) - $5,000 (4 available) ● Swag bag incl. (1) limited edition artwork, (2) 2025 Raices Cultura DDLM t-shirts, and personalized note**** ● Team-Building or Staff Development art workshop for up to 20 participants*** ● Invitation for 2 to private Artist Dinner (TBD)
● Logo or Name as Silver Sponsor on any printed event materials and organization website in perpetuity** ● Small logo on signage displayed at event in prominent location** Ally Sponsor: Tlaloc (Rain & Water)- $1000 (20 available) ● Swag bag incl. (1) 2025 Raices Cultura DDLM t-shirt and personalized note**** ● Logo or Name as Bronze Sponsor on organization website in perpetuity** ___________________________________________________________________________________________ *Option to keep the calavera or donate it back to Raices Cultura for auction or reuse. **Sponsorships must be confirmed by October 15, 2025 to be included in promotional materials. ***Special project not to exceed $2000.00 budget / Must be scheduled 90 days in advance, not available in March or April ****Indicate mailing address and size for t-shirt (S, M, L, XL, XXL, XXXL) Please contact a representative of Raices Cultura at (760) 861-3188 if interested in a sponsorship. Make checks payable to Raices Cultura and mail to P.O. Box 714, Coachella, CA 92236. Sponsorships must be confirmed by October 15, 2025 to be included in promotional materials. Raices Cultura is a tax-exempt organization and is exempt from Federal income tax under section 501 (c) (3) of the Internal Revenue Code EIN# 26-4790803.

Item 11.

STAFF REPORT
8/6/2025
TO: Honorable Mayor and City Council Members
FROM: Celina Jimenez, Director of Economic Development
SUBJECT:

Approve a Sponsorship Request for the 2025 Synergy Zine and Live Art Festival by Culturas Music and Arts in the Amount of $20,100 STAFF RECOMMENDATION:

Staff recommends that the City Council considers approving a sponsorship request for the Synergy Zine and Art Festival by Culturas Music and Arts in the Amount of $20,100.

BACKGROUND
Synergy Music and Arts Festival was established in 2012 with the unveiling of the Shady Lane Mural. Since then, the Synergy Festival has been convening artists, musicians, and the community to celebrate culture by featuring live music performances, a low-rider car show, art created by local artists, and other creative activities for all ages.

DISCUSSION/ANALYSIS:

This year’s Synergy Zine and Live Art Festival is taking place on Saturday, November 8, 2025 from 10:00 am until 12:00 midnight at Dateland Park and will feature live bands, a music disc jockey, food vendors, art displays, merchandise vendors, and car show (this year’s event will not have a beer garden). Additionally, Culturas Music and Arts is also requesting the following “inkind” items, which have an approximate total value of $10,000:

1. Road closures along Shady Lane between Bagdad Street and Avenue 52 - $3,500

2. Four (4) Portable Bathrooms with Wash Stations - $2,000

3. Trash Bins - $500

4. Two (2) Small Generators for DJ and Car Show - $1,000

5. City staff over-time - $3,000

Item 12.

FISCAL IMPACT:

The received sponsorship request is for $20,100. The in-kind request has an approximate value of $10,000 bringing the total sponsorship request to $30,100 from the General Fund.

ATTACHMENT(S):

1. Sponsorship Request

Item 12.

CULTURAS MUSIC & ARTS
2025 SYNERGY ZINE & LIVE ART FESTIVAL

EVENT BUDGET
PUBLICITY + SOCIAL MEDIA
Paid Advertising $ 3,000.00
Promotional Shirts $ 2,000.00
Video + Photography $ 2,000.00
Stage Platform $ 2,000.00

LIVE ART
Paint, Brushes, Miscellaneous Supplies,
Construction of 10 (6x7) Wood Panels $ 6,000.00
DJ (2) $ 2,000.00
2 Art Coordinators $ 2,000.00
1 Vendor Coordinator $ 500.00

PERMITS
Event Insurance $ 600.00
TOTAL $ 20,100.00

IN-KIND ITEMS VALUE
1 Road Closures along Shady Lane between Bagdad Street and Avenue 52 $ 3,500.00 2 Four (4) Portable Bathrooms with Wash Stations $ 2,000.00 3 Trash Bins $ 500.00
4 Two (2) Small Generators for DJ & Car Show $ 1,000.00 5 City Staff Time (Setup) $ 3,000.00
$ 10,000.00

Item 12.

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 September 11, 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 demotions, and who are at

STAFF REPORT
August 6, 2025

Item 13.
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 September 11, 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 September 11, 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 September 10, 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 Certification of Compliance with Government Code Section 20903 to CalPERS immediately after the adoption of the Resolution.

Item 13.

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 September 10, 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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

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 13.

STAFF REPORT
8/6/2025
TO: Honorable Mayor and City Council Members
FROM: Lincoln Bogard, Finance Director
Ruben Ramirez, Controller
SUBJECT: Resolution 2025-44, Approving the City of Coachella Recommended Annual Budget and Organizational Structure for Fiscal Year 2025-26 and its Component Units
STAFF RECOMMENDATION:

Adopt Resolution 2025-44 approving the annual budget, organizational structure, and policy changes for fiscal year 2025-26 for the City of Coachella and its component units.

BACKGROUND:

I am pleased to submit for your review the recommended budget for the City of Coachella for all funds and departments and its component units for the fiscal year beginning July 1, 2025 and ending June 30, 2026.

In the proposed budget for Fiscal Year 2025-2026, the City of Coachella and all its component units have budgeted revenues of $145.55 million and appropriations of $161.48 million. $122.26 million of these appropriations are for non-general fund capital expenditures. The City’s General Fund has budgeted revenues of $39.29 million and expenditure appropriations of $39.22 million resulting in a $72,346 budgeted surplus. The General Fund is projected to have unrestricted reserves of $13.98 million at June 30, 2026. Details are provided in the general fund schedules and tables that follow.

HISTORY:

During the fiscal years 2022-2023 and 2023-2024 the City of Coachella saw a steady recovery for our community. The prolonged slow recovery from the 2008 recession and the pandemic continue to affect our local economy. The voters passed Measure U, a sales tax rate increase of 1% in November of 2014.

These funds were critical in allowing us to finish fiscal year 2023-2024 within budget. However, during these three fiscal years the City incurred steep increases in our contracts with Riverside County Sheriff and Riverside County/Cal Fire for Police and Fire services. The Police Department expenditures budget increased by $1,086,348 or 9.64% and the Fire Department Expenditures increased by $894,657or

15.51% for a combined total of $1,981,005 or a 11.59% increase in Public Safety expenditures budget over the last year.

Item 14.

CHALLENGES AND PRIORITIES:

Public Safety Cost Increase
Increases in public safety costs continue to be a challenge for the City. The County of Riverside’s continuous increase to public safety services is limiting the amounts available to address capital needs, maintenance and operations in existing and future facilities. In Fiscal Year 2024-25, there was a total increase over the previous Fiscal Year to Police and Fire of $1,300,743, which represents slightly over

12.2%. For the 2025-26 Fiscal Year, the total actual amount is expected to increase another $890,605 or approximately 7.45%. This is due to Fiscal Year 2024-25 actuals coming in over budget for public safety. For actual expenditures, the City anticipates the increases to continue as Riverside County shifts more cost recovery of police services on to its contract cities.

ECONOMIC FORECASTS:

The City of Coachella will endeavor to maintain a diversified and stable revenue base to minimize the effects of economic fluctuations. All estimates are conservative. General fund revenues are categorized into seven broad categories taxes, licenses and permits, charges for services, intergovernmental, fines and forfeitures, interest and other revenues and transfers in from other funds.

The vast majority of general fund revenues are from taxes and are discretionary in nature. The general fund’s position as the originating fund for all service components, i.e., Water, Sanitary, Fire, Police, Streets, and Redevelopment efforts has resulted in the general fund now receiving service charges from all funds. The process of ending Redevelopment has resulted in a significant loss of administrative funds. Redevelopment tax increment funds are still available to perform administrative and legal activities required to dispose of assets and restructure financing but they are limited and do not cover the full cost of the redevelopment agency dissolution. The City’s 92.2 employees’ salary costs are disbursed among 16 different departments and funds to be able to ascertain both direct and indirect costs from the family of employees for City services rendered.

Item 14.

General Fund Expenditures by Department
The general fund is the main operating fund of the City of Coachella. It is used to account for all financial resources except where legal, administrative or Generally Accepted Accounting Principles (GAAP) requirements cause them to be accounted for in another fund. The City’s general fund activity includes departments that serve the general public as well as functions that provide administrative support to the various departments within the government and its agencies. The table shown below provides a summary list of the general fund Departments and their respective budgets.

City of Coachella
General Fund Historical and Projected Expenditures by Department Fiscal Years 2025-2026

Item 14.

Other Funds
The City has various funds and special districts which are designated subdivisions of the general fund or are classified as component units. These other funds all have the Coachella City Council as the governing body and have their respective budgets approved by the Council for the fiscal year ended June 30, 2026.

Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted for specific purposes. Special Revenue funds include State and Federal grants, funds to be used solely for capital projects, and the property taxes and charges collected by the County Tax-Collector’s Office for the Successor Agency of the Former Coachella Redevelopment Agency and the Coachella Fire Protection District.

Capital Improvement Funds are used to account for project costs for the building of infrastructure to attract business and expand capacities. The Capital Improvement Program found in the last budget section is a listing of proposed and existing projects for the acquisition and construction of capital assets.

These programs are outlined in the proposed five-year capital budget and existing capital projects. The five-year Capital Improvement Plan includes proposed financing for the 2025-26 fiscal year with projected revenue sources and project costs for the next four fiscal years. The Engineering Department has provided a comprehensive capital improvements plan that utilizes developer impact fees, grants and self-generated funds from the City’s enterprise operations. Although the funds required for the proposed fiscal year projects are available, future year’s projects may have a “To Be Determined” footnote if funds have not yet been identified.

Budget Preparation and Presentation
Individual general fund departments have included their accomplishments for the current fiscal year, their goals for the 2025-26 budget year and are presenting budget issues to the Council for your review and approval that will allow the Council to standardize future budget matters and keep the Council’s policies in line with the City’s priorities.

I would like to thank Public Works Director and City Engineer Andrew Simmons, Utilities Director Castulo Estrada, Finance Director Lincoln Bogard, Controller Ruben Ramirez, the Finance Department staff, Economic Development Director Celina Jimenez, Development Services Director Kendra Reif, and all the City personnel who contributed to the entire budget process.

ATTACHMENTS:

Resolution 2025-44
Fiscal Year 2025-26 Proposed Budget
Five Year Capital Improvement Plan

Item 14.

Resolution No. 2025-44
RESOLUTION 2025-44

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COACHELLA,

CALIFORNIA, ADOPTING AN ANNUAL BUDGET AND ORGANIZATIONAL STRUCTURE FOR FISCAL YEAR 2025-26
WHEREAS, an annual budget and organization structure for Fiscal Year 2025-26 has been prepared by the City Manager, Department Heads and other City personnel; and WHEREAS, the City Council has examined said budget and organizational structure and conferred with the City Manager and department heads; and WHEREAS, the City Council has, after due deliberation and consideration, made such amendments in the proposed annual budget and organizational structure as it considered desirable.

WHEREAS, the City Council has, after due deliberation and consideration, made such amendments in the proposed annual budget and organizational structure as it considered desirable.

NOW THEREFORE, be it resolved by the City Council of the City of Coachella, California, as follows:

SECTION 1. That the budget and organizational structure and made a part hereof is hereby approved and effective July 1, 2025 with no recommended classification or compensation changes.

SECTION 2. That the Capital Improvements Budget for fiscal 2025-26 is hereby approved effective July 1, 2025.

SECTION 3. That all debt service payments on previously authorized debts issuances are authorized along with applicable transfers into and out of the City’s debt service fund.

PASSED, APPROVED and ADOPTED this 6
th day of August 2024.
_______________________
Steven A. Hernandez
Mayor

Item 14.

Resolution No. 2025-XX

ATTEST:
_________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
___________________________
Ryan Guiboa
City Attorney

Item 14.

Resolution No. 2025-XX

STATE OF CALIFONIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF COACHELLA )
I HEREBY CERTIFY that the foregoing Resolution No. 2025-44 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 6 th day
of August 2025 by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________
Delia Granados,
Deputy City Clerk

Item 14.

STAFF REPORT
8/6/2025
TO: Honorable Mayor and City Council Members
FROM: Lincoln Bogard, Finance Director
Ruben Ramirez, Controller
SUBJECT: Resolution No. FD-2025-02, Approving the Fiscal Year 2025-2625 Coachella Fire Protection District Annual Budget
STAFF RECOMMENDATION:

Adopt Resolution FD-2025-02 approving the annual budget for the fiscal year 2025-2026 for the Coachella Fire Protection District.

BACKGROUND:

The Coachella Fire Protection District (the District) was created in December 1990 to provide fire protection services to the residents of the City of Coachella. The Riverside County Fire Protection District provides all necessary services that are described in a contract between the two entities.

The District is funded through transfers from the City’s general fund, property tax collected, interest earned on investments, and miscellaneous sources.

The District’s 2025-2026 budget includes revenues projected at $6.66 million which represents an increase of 23.46% over the prior fiscal year. All Fire grant funded services are directly administered by the County of Riverside in 2025-2026..

District expenditures are budgeted at $6.66 million, which is 15.52% more than last year. The increase is due the CalFire contract cost which increased $0.66 million.

The Fire District contract will staff one (1) fire engine company with three (municipal) Fire Captains, six Engineers, three Fire Fighter II, three Fire Fighter II Medics, and one Office Assistant III; for a total of sixteen staffed positions.

In addition to the staffed positions there is an active Volunteer Reserve Firefighter Program.

Item 14.

FISCAL IMPACT:

EXHIBITS:

Resolution FD-2025-02
Fiscal Year 2025-26 Proposed Budget
Five Year Capital Improvement Plan
Projected
2024-25
Budget
2025-26
Beginning Fund Balance $ 16,166 $ (355,145)
Revenues
General Fund Transfer 3,242,928 4,190,837
CFD 2005-1 Assessment 1,163,299 1,240,465
Property Taxes 950,000 1,175,000
Interest & Other Revenue 40,000 55,893
Grants - -
Total Revenue 5,396,227 6,662,195
Expenditures
Other Professional Services 5,017,261 5,683,864
Administration/Other 750,277 978,331
Total Expenditures 5,767,538 6,662,195
Surplus (Deficit) (371,311) 0
Projected Ending Fund Balance $ (355,145) $ (355,145)

Item 14.

Resolution No. FD 2025-02

RESOLUTION NO. FD-2025-02

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE

COACHELLA FIRE PROTECTION DISTRICT, ADOPTING AN
ANNUAL BUDGET FOR FISCAL YEAR 2025-26
WHEREAS, an annual budget for Fiscal Year 2025-26 has been prepared by the District Manager, Fire Chief and other District personnel; and
WHEREAS, the Board of Directors has examined said budget and conferred with the District Manager and the Fire Chief; and
WHEREAS, the Board of Directors desires to adopt a final annual budget for the Fiscal Year 2025-26; and
WHEREAS, the Board of Directors has, after due deliberation and consideration, made such amendments in the proposed annual budget as it considered desirable.

NOW THEREFORE, be it resolved by the Board of Directors of the Coachella Fire Protection District, as follows:

Section 1: That the budget attached hereto and made a part hereof is hereby approved and effective July 1, 2025.

Section 2: That the Capital Improvements Budget for fiscal 2025-26 is hereby approved effective July 1, 2025.

PASSED, APPROVED and ADOPTED this 6
th day of August, 2025.

Steven A. Hernandez
Chairman
ATTEST:

Angela M. Zepeda
Secretary
APPROVED AS TO FORM:

Ryan Guiboa
City Attorney

Item 14.

Resolution No. FD 2025-02

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. FD-2025-02 was duly adopted by the Board of Directors of the Coachella Fire Protection District at a regular meeting thereof, held on the 6
th day of August, 2025 by the following vote of the Board:

AYES:

NOES:

ABSENT:

ABSTAIN:

Delia Granados,
Deputy City Clerk

Item 14.

STAFF REPORT
8/6/2025
TO: Honorable Mayor and City Council Members
FROM: Lincoln Bogard, Finance Director
Ruben Ramirez, Controller
SUBJECT: Resolution No. SD-2025-03, Approving the Fiscal Year 2025-2026 Coachella Sanitary District Annual Budget
STAFF RECOMMENDATION:

Adopt Resolution SD-2025-03 approving the annual budget and organizational structure for the fiscal year 2025-2026 for the Coachella Sanitary District.

BACKGROUND:

The Sanitary District’s 2025-2026 budget includes revenues projected at $8.77 million, which represents a decrease of 14.21% over the prior fiscal year. This results from decreases in interest and other revenues.

District expenditures (net of principal payments) are budgeted at $8.93 million, which is 17.06% lower than last year. The decrease is due to decreases in administrative costs, operating costs, and inter-fund transfers.

FISCAL IMPACT:

Budget impact in chart on next page. Recommended classification changes are: (1) add one FTE Treatment Plant Operator I, and (2) reclass one-half FTE from Utility Manager to Utility Director.

This change occurred in Fiscal Year 2024-25, but was not included in the resolution approving the budget change.