Agenda packet — Coachella City Council, November 12, 2025 (part 2 of 2)

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ORDINANCE NO. 1226

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF COACHELLA, CALIFORNIA, AMENDING CHAPTERS

5.68 AND 5.69 OF THE COACHELLA MUNICIPAL CODE
TO UPDATE THE CITY’S CANNABIS BUSINESS

REGULATORY PERMIT REGULATIONS AND MAKING
FINDINGS UNDER CEQA.

WHEREAS, City of Coachella (“City”) recognizes the need to update and clarify regulations pertaining to commercial and retail cannabis business operations to ensure compliance with state laws and to promote public safety, health, and welfare; and WHEREAS, the definitions and background check process for cannabis business within Chapters 5.68 and 5.69 of the Coachella Municipal Code require updating to reflect current practices and state regulatory standards to ensure clarity and consistency in the application of the City’s cannabis laws; and
WHEREAS, this Ordinance is consistent with the City’s commitment to regulatory compliance and the promotion of a safe, legal cannabis market; and WHEREAS, this ordinance is exempt from the California Environmental Quality Act (“CEQA”) under CEQA Guidelines Section 15061(b)(3), because it has no potential for resulting in physical changes to the environment, directly or indirectly; and WHEREAS, the City of Coachella City Council held a duly noticed public hearing to consider the introduction of this ordinance on October 22, 2025; and WHEREAS, the introduction of this ordinance was approved by a 5-0 vote as specific in the meeting minutes from October 22, 2025.

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

SECTION 1. INCORPORATION OF RECITALS. The City Council hereby finds that all of the foregoing recitals presented herewith are true and correct and are hereby incorporated and adopted as findings of the City Council.

SECTION 2. AMENDMENT TO MUNICIPAL CODE. Section 5.68.020 Definitions of Chapter 5.68 Commercial Cannabis Regulatory Permit of Title 5 Business Licenses and Regulations of the Coachella Municipal Code is amended to read as follows:
“5.68.020 - Definitions.

For the purposes of this chapter, the following definitions shall apply, unless the context clearly indicates otherwise. If a word is not explicitly defined in this chapter, the common and

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ordinary meaning of the word shall apply.
“Applicant” means an owner applying for a commercial cannabis regulatory permit under this chapter. An “applicant” includes all representatives, agents, parent entities, or subsidiary entities of the applicant.
“Business” means an entity, sole proprietorship, partnership, or corporation operating legally in the State of California, that sells, leases, distributes, creates, or otherwise offers products or services to customers.
“Cannabis” has the same definition as in Business and Professions Code Section 26001(f), as amended.
“Cannabis products” has the same definition as in Business and Professions Code Section 26001(k), as amended; however, when the term “cannabis” is used in this chapter, it shall include “cannabis products.”
“City” means the City of Coachella.
“City manager” means the city manager of the city of Coachella or designee. “Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, and transportation of cannabis and cannabis products as provided in this chapter. Pursuant to this chapter, “commercial cannabis activity” includes a non-retail microbusiness. “Commercial cannabis business” means a business that engages in one or more commercial cannabis activities.
“Commercial cannabis regulatory permit” or “regulatory permit” means a regulatory permit issued by the City pursuant to this chapter, to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the City. The initial permit and annual renewal of a permit is made expressly contingent upon the business’ ongoing compliance with all of the requirements of this chapter and any regulations adopted by the City governing the commercial cannabis activity at issue.
“Corporation” has the same definition as in California Corporations Code section 162, as amended.
“Cultivate” or “cultivation” means any commercial activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. A cannabis nursery is considered a “cultivation” use.
“Customer” means a natural person twenty-one (21) years of age or older or a natural person eighteen (18) years of age or older who possesses a physician’s recommendation, or a primary caregiver.

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“Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Director” has the same definition as in California Corporations Code section 164, as amended.
“Distribution” means the procurement, wholesale sale, and transport of cannabis and cannabis products between entities permitted or licensed under this chapter, another local California jurisdiction, or state law.
“Edible cannabis product” has the same definition as in California Business and Professions Code section 26001(y), as amended. When the term “cannabis” is used in this chapter, it shall include “edible cannabis products.”
“Entity” means any form of business organization recognized under California law, including but not limited to a corporation, limited liability company, partnership, limited partnership, limited liability partnership, joint venture, association, trust, estate, or sole proprietorship, whether formed under the laws of this state or another jurisdiction. This term includes any structure that may hold an ownership interest in a commercial cannabis business. “Indoor” means within a fully enclosed and secure building. “Management” means for the process of directing, controlling, and overseeing the day-today operations of a commercial cannabis activity business, including making strategic decisions, managing personnel,setting policies, and allocating resources to ensure operational efficiency and compliance with legal and ethical standards.
“Manufacture” means to compound, blend, extract, infuse or otherwise make or prepare a cannabis product.
“Manufacturer” means a business that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its containers.
“Non-retail microbusiness” means a commercial business that engages in indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and state law on licensed cultivators, distributors, Level 1 manufacturers, to the extent the business engages in such activities. “Non-storefront retail microbusiness” means a commercial business that engages in nonstorefront retail cannabis sales (delivery only) and at least two (2) of the following commercial cannabis activities: indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and state law on licensed cultivators, distributors,

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Level 1 manufacturers, and retailers to the extent the business engages in such activities. “Nursery” means a permittee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis. “Officer” means an individual appointed or elected to perform designated duties within a corporation, as specified by the corporation’s bylaws, the board of directors, or as required by law.

This includes roles such as president, vice president, secretary, chief financial officer, and other positions that might be outlined in the corporations’ governance documents. Officers are chosen by the board and serve at its discretion unless otherwise specified in the articles or bylaws of the corporation.
“Operation” means any act for which a permit is required under the provisions of this chapter, or any commercial transfer of cannabis or cannabis products. “Owner” means any of the following:
(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a regulatory permit or a permittee, unless the interest is solely a security, lien, or encumbrance.
(2) The chief executive officer of a nonprofit or other entity. (3) A member of the board of directors of a nonprofit.
(4) An individual who will be participating in the direction, control, or management of the person applying for a regulatory permit.
“Ownership” means the possession of an equity interest or financial stake in an entity applying for or holding a commercial cannabis regulatory permit, including but not limited to shares of stock in a corporation, membership interests in a limited liability company, or partnership interests in a partnership, that confers rights to profits, capital, voting, or control. Ownership excludes security interests, liens, or encumbrances.
“Partner” means a person who has become a partner in a partnership. “Partnership” has the same definition as in California Corporations Code section 16101(9), as amended.
“Permittee” means any person holding a regulatory permit that has been issued under this chapter. A “permittee” includes all representatives, agents, parent entities, or subsidiary entities of the permittee.
“Person” means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. “Premises” means the designated structures and land specified in the regulatory permit application that is owned, leased, or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted. The premises must be a contiguous area and may only be occupied by one licensee.

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“Retail cannabis business” means a business that sells and/or delivers cannabis or cannabis products to customers, and includes the following business types: non-storefront retail microbusiness, non-storefront retailer, storefront retailer, and storefront retail microbusiness. “Retailer” or “storefront retailer” shall have the same definition as in California Business and Professions Code section 26001(ay), as amended.
“Shared-use facility” means a premises registered by a primary manufacturing permittee at which multiple cannabis manufacturers may operate at separate times. “Storefront retail microbusiness” means a commercial business that engages in retail cannabis sales and at least two of the following commercial cannabis activities: indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and State law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities. “Testing” means subjecting cannabis to laboratory testing for active compounds and purity prior to distribution for consumption.

Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources:

A. The Compassionate Use Act of 1996 (“CUA”);
B. The Medical Marijuana Program (“MMP”); and
C. The Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”).”
SECTION 3. AMENDMENT TO MUNICIPAL CODE. Subsection (C) of Section

5.68.040 Regulatory permit application of Chapter 5.68 Commercial Cannabis Regulatory Permit of Title 5 Business Licenses and Regulations of the Coachella Municipal Code is amended to read as follows:
“5.68.040 - Regulatory permit application.

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SECTION 4. AMENDMENT TO MUNICIPAL CODE. Section 5.68.050 Background check of Chapter 5.68 Commercial Cannabis Regulatory Permit of Title 5 Business Licenses and Regulations of the Coachella Municipal Code is amended to read as follows:
“5.68.050 - Background check.

A. Any person who is an owner of a commercial cannabis business must be legally authorized to do so under applicable state law.

B. Commercial cannabis business owners shall be required to:

1. Submit to a criminal background check.

2. Complete a criminal background check prior to issuance or transfer of a commercial cannabis regulatory permit.

C. The City shall conduct criminal background checks which must, at a minimum, identify the following for each owner:

1. Whether the owner has ever been convicted of a violent felony as defined by California Penal Code 667.5 or equivalent offense in other states;

2. Whether the owner has ever been convicted of a serious felony, as defined by California Penal Code 1192.7 or equivalent offense in other states;

3. Whether the owner has ever been convicted of a felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor;

4. Whether the owner has ever been convicted of a felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code; or

5. Whether the owner has ever been convicted of a felony involving fraud, deceit, or embezzlement.

D. Evidence of a conviction of any the offenses enumerated in Section 5.68.040(D) of this chapter shall be grounds for denial or revocation of a commercial cannabis regulatory permit, and/or disqualification from serving as an owner with a commercial cannabis business permittee in the City of Coachella SECTION 5. AMENDMENT TO MUNICIPAL CODE. Section 5.68.070 Regulatory permit denial of Chapter 5.68 Commercial Cannabis Regulatory Permit of Title 5 Business Licenses and Regulations of the Coachella Municipal Code is amended to read as follows:
“5.68.070 - Regulatory permit denial.

The city manager may deny an application for a regulatory permit or renewal of a regulatory permit upon making any of the following findings:

A. The applicant or the premises for which a regulatory permit is applied does not qualify for a permit under this chapter.

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B. The applicant or permittee fails to comply with the provisions of this chapter.

C. The applicant or permittee has failed to provide information required by the city manager.

D. The applicant or permittee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the city manager determines that the applicant or permittee is otherwise suitable to be issued a license and granting the license would not compromise public safety, the city manager shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant or permittee to be issued a permit based on the evidence found through the review.

In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the city manager shall include, but not be limited to, the following:

1. A violent felony, as defined by California Penal Code section 667.5 or equivalent offense in other states.

2. A serious felony, as defined by California Penal Code section 1192.7 or equivalent offense in other states.

3. A felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.

4. A felony for drug trafficking with enhancements pursuant to California Health and Safety Code sections 11370.4 or 11379.8.

5. A felony involving fraud, deceit, or embezzlement.

E. The applicant or permittee has been sanctioned by a State licensing authority or a city, county, or city and county for unlicensed commercial cannabis activities or unlicensed retail cannabis business or has had a State license revoked in the three years immediately preceding the date the application is filed with the city manager.

F. The applicant or permittee is not properly organized or operating in strict compliance pursuant to the Compassionate Use Act of 1996, the Medical Marijuana Program Act, the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”), and any other applicable law, rules and regulations.” SECTION 6. REPEAL OF MUNICIPAL CODE SECTION. Section 5.68.150 Interested parties of Chapter 5.68 Commercial Cannabis Regulatory Permit of Title 5 Business Licenses and Regulations of the Coachella Municipal Code is repealed as follows:
“5.68.150 – Reserved.”
SECTION 7. AMENDMENT TO MUNICIPAL CODE. Section 5.69.010 Definitions of Chapter 5.69 Retail Cannabis Regulatory Permit of Title 5 Business Licenses and Regulations of the Coachella Municipal Code is amended to read as follows:

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“5.69.010 - Definitions.

For the purposes of this chapter, the following definitions shall apply. “Applicant” means an owner applying for a retail cannabis regulatory permit under this chapter.
“Business” means an entity, sole proprietorship, partnership, or corporation operating legally in the State of California, that sells, leases, distributes, creates, or otherwise offers products or services to customers.
“Cannabis” has the same definition as in Business and Professions Code Section 26001(f), as amended.
“Cannabis products” has the same definition as in Business and Professions Code Section 26001(k), as amended; however, when the term “cannabis” is used in this chapter, it shall include “cannabis products.”
“City” means City of Coachella.
“City manager” means the city manager of the city of Coachella or designee. “Corporation” has the same definition as in California Corporations Code section 162, as amended.
“Customer” means a natural person twenty-one (21) years of age or older or a natural person eighteen (18) years of age or older who possesses a physician’s recommendation, or a primary caregiver.
“Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform. “Director” has the same definition as in California Corporations Code section 164, as amended.
“Entity” means any form of business organization recognized under California law, including but not limited to a corporation, limited liability company, partnership, limited partnership, limited liability partnership, joint venture, association, trust, estate, or sole proprietorship, whether formed under the laws of this state or another jurisdiction. This term includes any structure that may hold an ownership interest in a retail cannabis business. “Management” means for the process of directing, controlling, and overseeing the day-today operations of a retail cannabis activity business, including making strategic decisions, managing personnel, setting policies, and allocating resources to ensure operational efficiency and compliance with legal and ethical standards.

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“Non-storefront retailer” means a cannabis retailer that provides cannabis exclusively through delivery.
“Non-storefront retail microbusiness” means a commercial business that engages in nonstorefront retail cannabis sales and at least two of the following commercial cannabis activities:
indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and State law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities. “Officer” means an individual appointed or elected to perform designated duties within a corporation, as specified by the corporation’s bylaws, the board of directors, or as required by law.

This includes roles such as president, vice president, secretary, chief financial officer, and other positions that might be outlined in the corporations’ governance documents. Officers are chosen by the board and serve at its discretion unless otherwise specified in the articles or bylaws of the corporation.
“Owner” means any of the following:
(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a regulatory permit or a permittee, unless the interest is solely a security, lien, or encumbrance.
(2) The chief executive officer of a nonprofit or other entity. (3) A member of the board of directors of a nonprofit.
(4) An individual who will be participating in the direction, control, or management of the person applying for a regulatory permit. “Partnership” hasthe same definition asinCalifornia Corporations Code section 16101(9), as amended.
“Ownership” means the possession of an equity interest or financial stake in an entity applying for or holding a retail cannabis regulatory permit, including but not limited to shares of stock in a corporation, membership interests in a limited liability company, or partnership interests in a partnership, that confers rights to profits, capital, voting, or control. Ownership excludes security interests, liens, or encumbrances.
“Permittee” means any person holding a valid retail cannabis regulatory permit under this chapter.
“Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.

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“Premises” means the designated structure or structures and land specified in the regulatory permit application that is owned, leased, or otherwise held under the control of the applicant or permittee where the retailer or retail microbusiness will be or is conducted. These premises shall be a contiguous area and shall only be occupied by one permittee. “Purchaser” means the customer who is engaged in a transaction with a permittee for the purposes of obtaining cannabis or cannabis products.
“Retail cannabis business” means a business that sells or sells and delivers cannabis or cannabis products to customers, and includes the following business types: non-storefront retail microbusiness, non-storefront retailer, storefront retailer, and storefront retail microbusiness. “Retail cannabis regulatory permit” means a regulatory permit issued by the City pursuant to this chapter, to a retail cannabis business and is required before any retail cannabis business may operate in the City. The initial permit and annual renewal of a permit is made expressly contingent upon the business’ ongoing compliance with all of the requirements of this chapter and any regulations adopted by the City governing the retail cannabis business. “Sell,” “sale,” and “to sell” include any transaction, whereby, for any consideration title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee to the permittee from who the cannabis or cannabis product was purchased. “State license” means a license issued by the state of California, as listed in California Business and Professions Code Section 26050.
“Storefront retailer” means a business that has a storefront open to the public where cannabis or cannabis products are offered for retail sale to consumers, where delivery may or may not be included as part of the business's operation.
“Storefront retail microbusiness” means a commercial business that engages in retail cannabis sales and at least two of the following commercial cannabis activities: indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and state law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities.” SECTION 8. AMENDMENT TO MUNICIPAL CODE. Subsection (C) of Section

5.69.030 Regulatory permit application of Chapter 5.69 Retail Cannabis Regulatory Permit of Title 5 Business Licenses and Regulations of the Coachella Municipal Code is amended to read as follows:
“5.69.030 - Regulatory permit application.

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An application for a regulatory permit shall include, but shall not be limited to, the following information:
…
C. T he name, address, telephone number, title, and function of each of the owners of the retail cannabis business.”
SECTION 9.. AMENDMENT TO MUNICIPAL CODE. Section 5.69.040 Background check of Chapter 5.69 Retail Cannabis Regulatory Permit of Title 5 Business Licenses and Regulations of the Coachella Municipal Code is amended to read as follows:
“5.69.040 - Background check.

A. Any person who is an owner of a retail cannabis business must be legally authorized to do so under applicable state law.

B. Retail cannabis business owners shall be required to:

1. Submit to a criminal background check.

2. Complete a criminal background check prior to issuance or transfer of a retail cannabis regulatory permit.

C. The City shall conduct criminal background checks which must, at a minimum, identify the following for each owner:

1. Whether the owner has ever been convicted of a violent felony as defined by California Penal Code 667.5 or equivalent offense in other states;

2. Whether the owner has ever been convicted of a serious felony, as defined by California Penal Code 1192.7 or equivalent offense in other states;

4. Whether the owner has ever been convicted of a felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code; or

5. Whether the owner has ever been convicted of a felony involving fraud, deceit, or embezzlement.

D. Evidence of a conviction of any the offenses enumerated in Section 5.69.040(D) of this chapter shall be grounds for denial or revocation of a retail cannabis regulatory permit, and/or disqualification from serving as an owner with a retail cannabis business permittee in the City of Coachella.

SECTION 10. AMENDMENT TO MUNICIPAL CODE. Section 5.69.060 Regulatory permit denial of Chapter 5.69 Retail Cannabis Regulatory Permit of Title 5 Business Licenses and Regulations of the Coachella Municipal Code is amended to read as follows:

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“5.69.060 - Regulatory permit denial.

The city manager may deny an application for a regulatory permit or renewal of a regulatory permit upon making any of the following findings:

A. The applicant or the premises for which a regulatory permit is applied does not qualify for a permit under this chapter.

B. The applicant or permittee fails to comply with the provisions of this chapter.

C. The applicant or permittee has failed to provide information required by the city manager.

1. A violent felony, as defined by California Penal Code section 667.5 or equivalent offense in other states.

2. A serious felony, as defined by California Penal Code section 1192.7 or equivalent offense in other states.

4. A felony for drug trafficking with enhancements pursuant to California Health and Safety Code sections 11370.4 or 11379.8.

5. A felony involving fraud, deceit, or embezzlement.

E. The applicant or permittee has been sanctioned by a State licensing authority or a city, county, or city and county for unlicensed commercial cannabis activities or unlicensed storefront retailer business or has had a State license revoked in the three years immediately preceding the date the application is filed with the city manager.

F. The applicant or permittee is not properly organized or operating in strict compliance pursuant to the Compassionate Use Act of 1996, the Medical Marijuana Program Act, the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”), and any other applicable law, rules and regulations.” SECTION 11. REPEAL OF MUNICIPAL CODE SECTION. Section 5.69.150 Interested parties of Chapter 5.69 Retail Cannabis Regulatory Permit of Title 5 Business Licenses and Regulations of the Coachella Municipal Code is repealed to read as follows:
“5.69.150 – Reserved.”

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SECTION 12. CEQA DETERMINATION. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“Public Resources Code section 21000 et seq.) (“CEQA”) because it does not qualify as a “project” under CEQA. The State CEQA Guidelines provide that “[a]n activity is not subject to CEQA if … the activity is not a project as defined in Section 15378.” (State CEQA Guidelines, § 15060(c).) Here, the Ordinance does not qualify as a “project” as defined in State CEQA Guidelines section 15378 for at least two reasons:

First, Section 15378 defines a project as an activity that “has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (State CEQA Guidelines, § 15378(a).) The proposed Ordinance adds commercial cannabis and retail cannabis regulatory permit definitions and updates to provisions regarding background checks and regulatory permit denials. These amendments merely clarify terminology and establish regulatory consistency with state law. Therefore, the proposed amendments are not a “project” subject to CEQA. (State CEQA Guidelines, § 15060(c).) Second, Section 15378 explicitly excludes from the definition of “project” “[o]rganizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” (State CEQA Guidelines, § 15378(b)(5).) This Ordinance is organizational in nature, as it simply updates definitions and standards to clarify the City’s cannabis regulatory permit procedures. These activities are administrative in nature and do not have any direct or indirect physical environmental impacts. Accordingly, they are not subject to CEQA.

Even if the proposed Ordinance was considered a “project” subject to CEQA, it would qualify for the “common sense exemption” set forth in State CEQA Guidelines section 15061(b)(3). This exemption applies where “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Here, the Ordinance does not authorize or directly result in any physical development or changes to the environment.

Instead, it serves to define terms and establish standards for cannabis business background checks and permitting, ensuring future compliance with applicable regulations. As a result, it can be seen with certainty that the Ordinance will not have a significant environmental effect.

SECTION 13. SEVERABILITY. If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.

SECTION 14. EFFECTIVE DATE. This Ordinance shall become effective thirty (30) days from its adoption.

SECTION 15. PUBLICATION. The City Clerk shall certify to the adoption of this

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Ordinance and cause it, or a summary of it, to be published in a newspaper of general circulation printed and published within the City of Coachella, pursuant to all legal requirements.

I hereby certify that the foregoing Ordinance was PASSED, APPROVED AND ADOPTED by the City Council of the City of Coachella on the 12th day of November, 2025.

STEVEN A. HERNANDEZ
MAYOR
ATTEST:

ANGELA M. ZEPEDA

CITY CLERK
APPROVED AS TO FORM:

BEST, BEST & KRIEGER

CITY ATTORNEY

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STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Ordinance No. 1226 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on this 12th day of November 2025 by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk

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Item 13.

STAFF REPORT
11/12/2025
TO: Honorable Mayor and City Council Members
FROM: Andrew Simmons, P.E., Director of Public Works/City Engineer SUBJECT: Lease Agreement with Sixth Street Coffee for property located at 1500 Sixth Street.

STAFF RECOMMENDATION:

Authorize City Manager to execute Lease Agreement with Sixth Street Coffee for property located at 1500 Sixth Street.

EXECUTIVE SUMMARY:

The Coachella Library was constructed with a storefront commercial space for a restaurant/café tenant. Through a competitive Request for Proposals selection process, Sixth Street Coffee was identified as the tenant for this commercial space within the Coachella Library. The City entered into a lease agreement with Sixth Street Coffee for this space in July 2018. The tenant now desires to renew the lease agreement for three (3) years.

The proposed lease would renew the term through December 31, 2028 and would be for a monthly rate of $987.00 per month ($1.50 per square foot). Overall, the proposed lease identifies the below lease terms:
o Lease Term = three years; December 1, 2025 – December 31, 2028. o Utilities = to be paid by Lessee for said property
o Maintenance/Janitorial = to be completed by Lessee for said property. o Insurance = to be provided be Lessee for said property. o Rent = $987.00 per month.

FISCAL IMPACT:

No fiscal impact.

ATTACHMENTS:

1. Lease Agreement

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1 CITY OF COACHELLA

LEASE AGREEMENT
THIS LEASE AGREEMENT (the "Lease") is made as of November 12, 2025 by and between THE CITY OF COACHELLA, a California municipal corporation (the "Lessor"), and SIXTH STREET COFFEE, a partnership (the "Lessee"), with reference to the following facts:

RECITALS
A. Lessor is the owner of certain real property identified as the new City of Coachella Library, located at 1500 Sixth Street, Assessor Parcel Numbers: 7 7 8 - 1 0 3 - 0 0 5 , in the City of Coachella, County of Riverside, described in more detail in attached Exhibit "A" incorporated herein by this reference (the "Property"); and B. Lessee desires to lease 6 5 8 square feet from Lessor of the Property referenced m more detail in the attached Exhibit "A" for purposes of operating and managing a restaurant/cafe business; and
C. Lessee will be responsible for all tenant improvements the leased space; and D. Lessor will not be liable or responsible for any damage or injury occurring on the Premises.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

AGREEMENT

1. Recitals. Lessor and Lessee acknowledge the Recitals set forth above which are incorporated herein by this reference together with the Exhibits attached hereto.

2. Leasehold. Lessor hereby 1eases to Lessee, and Lessee here by 1eases from Lessor, the Premises, for the term, at the rental and upon the conditions set forth herein. Lessee accepts the Premises, including the appurtenant improvements, structures, and facilities, if any, in "AS IS" condition.

3. Premises. The Premises described in Exhibit "A" amounts to an area of approximately 658 square feet. Upon execution of this Lease, Lessor grants to Lessee the right to survey the Premises (the "Survey") and such Survey, if performed, shall replace Exhibit "A" as the description of the Premises and shall be attached and incorporated herein as Exhibit "B." If performed, the Survey attached as Exhibit "B" shall control the description of the Premises thereafter.

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2 4. Term of Lease.

4.1 Term. The original term of the Lease shall be for a three (3) year period commencing on December 1, 2025 and terminating on December 31, 2028 (the "Term").

5.1 Rent. During the Term of this Lease, Lessee shall pay to Lessor as rent the sum of Nine Hundred Eighty-Seven Dollars and No Cents ($987.00) per month.

The monthly rent will be paid by the Lessee to the Lessor in advance of the 15th day of each month and continuing throughout the term of this Lease.

5.2 Where to Pay Rent. All rent shall be paid to Lessor at the address specified below in Section 19.

6. Utilities, Maintenance and Insurance.

6.1 Utilities. Lessee shall make all arrangements for and shall pay for all utilities and services furnished to the Premises or used by Lessee on the Premises, including, without limitation: electricity, water, sewer and trash removal services as described in Exhibit "C", and Lessee shall pay for any and all charges for establishment or connection of utility services to the Premises.

6.2 Maintenance. Lessor shall provide all maintenance and repairs, at Lessor's sole cost and expense, to keep the Premises in good order and condition, including, without limitation, weed abatement, fencing, all improvements existing at the commencement of this Lease, and any improvements approved by the Lessor to be constructed and/or installed by the Lessee during the term of this Lease.

6.3 Insurance. All insurance carried by Lessee shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only. Lessee shall carry and maintain, during the entire term hereof, at Lessee's sole cost and expense, the following types of insurance in the amounts specified and in the form provided for in this section:
a. Public Liability and Property Damage. Broad-form
comprehensive public liability insurance with limits of not less than One Million Dollars ($1,000,000) per person and One Million Dollars ($1,000,000) each occurrence, insuring against any and all liability of Lessee with respect to the Premises or arising out of the maintenance, use or occupancy thereof, and property damage liability insurance with a limit of not less than One Million Dollars ($1,000,000) each accident, or One Million Dollars ($1,000,000) combined single limit.
b. Property Insurance. Lessee shall obtain and maintain in force a policy or policies of insurance in the name of Lessee, with any loss payable to Lessee, and any lender of Lessor insuring against loss or damage to the improvements on the Premises, including, without limitation, any improvements installed or constructed by Lessee. The

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3 amount of such insurance shall be equal to the full insurable replacement cost of such improvements, as the same shall exist from time to time, or the amount required by any lender of Lessor, but in no event more than the commercially reasonable and available insurance value thereof. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct loss or physical damage (except the perils of flood and earthquake unless required by a lender of Lessor). If such insurance coverage has a deductible clause, the deductible amount shall not exceed 'the amount permitted by a lender of Lessor.

In the event any casualty results in damage to the improvements on the Premises which are the property of Lessor (and not constructed or installed by Lessee in accordance with the provisions hereof), Lessee shall either (i) use the proceeds of insurance to cause the restoration of such property of Lessor or (ii) pay or cause payment to Lessor or any lender of Lessor in an amount of the proportionate share of insurance proceeds attributable to damage to such property of Lessor.
c. Delivery of Certificate of Insurance. Lessee shall deliver to Lessor certificates of insurance evidencing the insurance procured by Lessee, which certificates shall name Lessor as an additional insured together with any lender of Lessor. The Certificates of Insurance shall be delivered by Lessee to Lessor at the time of the execution of the Lease and shall be monitored regularly.
d. Notice of Cancellation. All insurance po1icies shall contain a provision that such policies shall not be canceled or terminated without thirty (30) days' prior notice from the insurance company to Lessor. Lessee agrees that on or before thirty (30) days prior to expiration of any insurance policy, Lessee will deliver to Lessor written notification in the form of a receipt or other similar document from the applicable insurance company that said policy or policies have been renewed, or deliver certificates of coverage from another good and solvent insurance company for such coverage.

7. Use. Lessee shall use and occupy the Premises for purposes of managing and operating a restaurant/cafe inside the new City Library. Lessee shall not use the Premises for the purposes of storing, manufacturing or selling any inherently dangerous substance, chemical, thing, or device.

8. Hazardous Substances and Hazardous Materials.

8.1 Defined. For purposes of this Lease, the term "Hazardous Substances" shall be as defined in the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§ 9601 et seq., and any regulations promulgated pursuant thereto, and as used to define "Hazardous Wastes" in the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., and any regulations promulgated thereto, or as may be identified or defined by any federal, state or local law or regulation.

8.2 Prohibition and Indemnity. Lessee shall not (either with or without negligence) cause or permit the use, storage, generation, escape, disposal or release of any Hazardous Substances or Hazardous Wastes in any manner not sanctioned by law.

In all events, Lessee shall indemnify and hold Lessor harmless from any and all claims, damages, fines, judgments, penalties, costs, liabilities or losses (including, without limitation, any and all sums paid for settlement of claims, attorneys' fees, and consultants' and experts' fees) (collectively

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Item 14.
4 "Claims") from the presence or release of any Hazardous Substances or Hazardous Wastes on the Premises if caused by Lessee or persons acting under Lessee. The foregoing indemnity shall apply regardless of whether or not any such Claims are contributed to by the negligence or fault of the indemnified party, by the violation of any law, statute or regulation by the indemnified party, and even if the indemnified party is strictly liable therefore. However, in the event of such contributory negligence or other fault of the indemnified party, then the indemnified party shall not be indemnified hereunder in the proportion that the indemnified party's negligence or other fault caused any such Claims. Lessee shall execute such affidavits, representations or other documents from time to time as Lessor may reasonably request concerning Lessee's best knowledge and belief as to the presence of Hazardous Substances or Hazardous Wastes on the Premises. This paragraph shall survive the termination of this Lease.

9. Improvements.

9.1 Consent of Lessor. Lessee shall not construct or make any installations, additions, improvements or alterations in or to the Premises, without the prior written consent of Lessor.

9.2 Lessee to Pay Improvement Cost. All installations, additions, improvements, or alterations constructed or made to the Premises, with the consent of Lessor, shall be made at the sole cost and expense of Lessee. The Lessee has agreed to fabricate and install six foot high wrought iron perimeter fencing with screening along the entire perimeter of the Property prior to the termination of the Lease; the design of which must be approved as stated in Section 12.1. This is the only onsite improvement not subject to Section 12.3.

9.3 Removal of Improvements. All installations, additions, improvements, or alterations constructed or made to the Premises by Lessee shall remain Lessee's personal property and, notwithstanding principles of law applicable to real property improvements, Lessee's installations, additions, improvements or alternations shall not be deemed improvements to Lessor's Premises and may be removed from the Premises ·by Lessee upon termination of this Lease in the sole discretion of Lessee. Notwithstanding the foregoing, upon termination of this Lease, Lessor may require Lessee to remove some or all of Lessee's installations, additions, improvements and alterations, at Lessee's sole cost and expense.

Further, upon termination of this Lease and following removal of Lessee's property, the Premises shall be restored to a condition reasonably satisfactory to Lessor, at Lessee's expense. Any of Lessee's property, as aforesaid, not removed from the Premises upon termination of this Lease shall become the property of Lessor.

9.4 Mechanic's Liens. Lessee agrees to pay promptly for all labor or materials furnished for any work of construction, improvements, alterations, additions, repairs or maintenance performed by Lessee in connection with the Premises, and to keep and to hold the Premises free, clear, and harmless of and from all liens that could arise by reason of any such work.

10. Termination.

Within ninety (90) days prior to expiration of the Term, either Lessor or Lessee may terminate this Lease, without cause, by serving the other party with thirty (30) days' prior written notice of such termination (a "Notice of Termination"). Upon termination of this Lease, Lessee shall

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Item 14.
5 return the Premises in good condition and repair to the reasonable satisfaction or Lessor.

11. - Lessee shall not install any signs on the Premises without the prior written consent of Lessor. Lessor has the option to authorize a billboard to be installed on the Premises during the term of the Lease.

12. Lessor's Consent Required. Lessee shall not assign, mortgage, or hypothecate this Lease in whole or in part, nor sublet all or any part of the Premises, without the prior written consent of Lessor in each instance, which consent may be granted or denied in Lessor's sole discretion.

13. Assignment and Subleasing. Lessee shall not assign, mortgage, or hypothecate this Lease in whole or in part, nor sublet all or any part of the Premises, without the prior written consent of Lessor in each instance, which consent may be granted or denied in Lessor's sole discretion. This prohibition against assigning or subletting shall be construed to include a prohibition against any assignment or subletting by operation of law. In the event that Lessor's written consent is granted, Lessee shall pay all expenses in connection with such assignment and Lessee shall remain primarily obligated to Lessor for performance of all provisions of this Lease.

14. Use of Premises by City. The Premises will be used for as the new City Library and provide various library services and programs throughout the year.

15. Entry and Inspection. Lessee shall permit Lessor or Lessor's agents to· enter upon the Premises at reasonable times and upon reasonable notice, for the purpose of inspecting the same.

16. Indemnification. To the extent permitted by law, Lessor shall not be liable for any damage _or injury to Lessee, or any other person, or to any property, occurring on the Premises or any part thereof in connection with this Lease, unless caused by the gross negligence or willful misconduct of Lessor. Lessee agrees to indemnify and hold Lessor harmless from any claims for damages which arise in connection with any such occurrence.

Lessor agrees to indemnify and hold Lessee harmless from any claims for damages which arise from the gross negligence or willful misconduct of Lessor in connection with the Premises or this Lease. Said indemnifications shall include indemnity from any reasonable costs or fees which the indemnified party may incur in defending any such claim. The provisions of this Section shall survive termination of this Lease.

17. Lessor's Remedies on Default. If Lessee defaults in the payment of rent or defaults in the performance of any of the other covenants or conditions hereof, Lessor may give Lessee notice of such default and if Lessee does not cure any such default within thirty (30) days after the giving of such notice (or if the default is of a nature that it cannot be completely cured within such period, if Lessee does not commence such cure within such thirty (30) days and thereafter proceed with reasonable diligence and in good faith to cure such default), then Lessor may terminate this Lease on not less than thirty (30) days' notice to Lessee. On the date specified in such notice, the term of this Lease shall terminate and Lessee shall then quit and surrender the Premises to Lessor, without extinguishing L ess ee’ s Liab ilit y . If this Lease shall have been so terminated by Lessor, Lessor may at any time thereafter resume possession of the Premises by any lawful means and remove Lessee or other occupants and their

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Item 14.
6 effects.

18. waiver.

Waiver. No Failure to Lessor to enforce any term hereof shall be deemed to be a

19. Notices. Any notice, request, demand, or other communication which either party may or is required to give, shall be in writing and shall be delivered in person or sent to the address set forth herein below by registered or certified mail, return receipt requested with postage prepaid, by commercial overnight courier, with written verification of receipt, or by telecopy. A n o t i c e s h a l l be d e e m e d given: (a)when delivered by p e r s o n a l delivery (as evidenced by the receipt); (b) three (3) days after deposit in the mail if sent by registered or certified mail; (c) one (1) business day after having been sent by commercial overnight courier as evidenced by the written verification of receipt or (d) on the date of confirmation if telecopies. Either party may change its address for receiving notice by written notice given to the other in accordance with the provisions of this Notices section.

To Lessee:

To Lessor:

City of Coachella
53990 Enterprise Way
Coachella, CA 92236
Attn: City Engineer/Public Works Director
Phone: 760) 398-3502 Ext. 134
E-mail: [email protected]
Sixth Street Coffee
50895 Chiapas Drive
Coachella, CA 92236
Attn: Steven Garcia
Phone: 760) 669-7481
E-mail:[email protected]

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Item 14.
7 20. No Agency/Employment. In performing the terms of this Lease, the Lessor and Lessee each remain an autonomous and separate entity, solely responsible for its own actions and those of its officers, employees, agents and volunteers. No relationship of employment, agency, partnership or joint venture is to be created by or implied from this Lease.

21. Heirs, Assigns, Successors. This Lease is binding upon and inures to the benefit of the heirs, assigns and successors in interest to the parties.

22. Time of Essence. Time is of the essence ofthis Lease.

23. Entire Agreement. This instrument constitutes the entire agreement between the parties and may be modified only by a writing signed by both parties.

24. Governing Law. This Lease shall be governed by and construed in accordance with the laws of the State of California.

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

LESSOR:

THE CITY OF COACHELLA
a California municipal corporation
By:

William B. Pattison Jr., City Manager
City of Coachella
Attest:

B y :

Angela M. Zepeda City Clerk
City of Coachella
Approved as to Form:

By:

Best, Best & Krieger LLP
City Attorney
LESSEE:

SIXTH STREET COFFEE
By:

Steven Garcia, Owner

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Item 14.
8 EXHIBIT "A"

DESCRIPTION OF PREMISES
The City of Coachella (Lessor) owns real property located at 1500 Sixth Street, Assessor Parcel Numbers: 7 7 8 - 1 0 3 - 0 0 5, in the City of Coachella, County of Riverside, and State of California. The total leased space is approximately 658 square feet.

Depiction/Sketch
6TH Slf
l .
-------- +

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Item 14.
9 EXHIBIT "B"

SURVEY OF LEASED PREMISES
No survey was completed by the Lessee.

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Item 14.
10 EXHIBIT"C"

Lessor'sreal property is located at 1500 Sixth Street, Assessor Parcel Numbers: 7 7 8 - 1 0 3 - 0 0 5 , in the City of Coachella, County of Riverside. The leased space is approximately 6 5 8 s q u a r e f e e t .

Lessee shall establish accounts for the property under Lessee's name for all utilities. Lessee will maintain current all utility billing for the Property.

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Item 14.

STAFF REPORT
11/4/2025
TO: Honorable Mayor and City Council Members
FROM: Jason Stevens, IT Manager
SUBJECT: Authorize the annual subscription to Microsoft Office 365 cloud services for the amount of $83,945.00.

STAFF RECOMMENDATION:

Staff recommends that the City Council authorize the annual subscription to Microsoft Office 365 cloud services for a subscription commitment of three years for the annual amount of $83,945.00.

BACKGROUND:

The City of Coachella for most of its past has obtained Microsoft software and licensing through Microsoft’s volume licensing program without their annual Software Assurance Subscription service. This licensing is obtained through the cities trusted government sales partner CDWG who offers pricing based on California state and county procurement contracts.

Currently the city operates its own on-premise Microsoft Exchange email server. While this provides some benefits in terms of unlimited storage of email and lack of requirement for perpetual per user per month licensing costs, it does present multiple security related concerns.

While Microsoft in the past has provide multi factor authentication methods for on-premise solutions, they no longer do so and there are not any other viable MFA (multi factor authentication) solutions that can secure an Exchange server and network authentication to the level or point of Microsoft’s hosted or SaaS solution Microsoft 365 services does.

Due to recent security concerns and cyber security insurance requirements, staff now recommends the transition to Microsoft 365 services in order to provide the most secure communications and collaboration services that is available. The recommend subscription level would be Office 365 G3 GCC with Entra ID plan 2. These services will provide end to end multi factor authentication, conditional access policies, privileged identity management, geographic access controls and many other robust security controls, monitoring and alerting that will significantly minimize the Cities vulnerability footprint helping to reduce access vulnerabilities such as ACH fraud, identity fraud and theft and other security concerns.

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Item 15.

The Microsoft Office 365 subscription not only includes email hosting, but all of the other services encompassed in the G3 level. This includes all current and future versions of Microsoft Office, Teams, SharePoint, OneDrive and other services. Please see accompanying services matrix sheet for all services included in Office G3 with Entra ID plan 2. Current mailbox count is 238 so pricing is noted for 250 users.

In anticipation of this possible upgrade IT did budget $60,000 for this line item which was included in the 25-26 budget. However, it was previously determined to post-pone the migration to Office 365 but instead renew the local Exchange SE Server with Software Assurance for one year at the cost of $8,345.00 which was performed. Remaining reserved funds in account 101- 11-161-90-612-000 for this line item is $51,655.

ALTERNATIVES:

1. Remain with Volume Licensing, the current Exchange SE with Software Assurance licensing version and remain with on-premise Exchange.

FISCAL IMPACT:

With this action, City Council authorizes a three-year commitment for the annual subscription of Microsoft Office 365 G3 with Entra ID plan2 for the amount of 83,948.00. For the first year, $51,655.00 would be allocated from account 101-11-161-90-612-000 with remaining funds of $32,290.00 coming from the unreserved general fund. Years two and three will be included in future budgets for account 101-11-161-90-612-000.

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Item 15.

Date 10/16/25
Account Manager Jeff Butchko
for VSL Specialist Brent Cameron
Channel Price Sheet Month Oct.

Unless otherwise noted, All Quotes expire upon current month's end Microsoft Part # Description Level Quantity Price Extended Price Extended Price Extended AAA-11894 O365 G3 GCC Sub Per User D 250 $251.99 $ 62,997.50 $ 251.99 $ 62,997.50 $ 251.99 $ 62,997.50 MQN-00001 Entra ID P2 Gov Sub Per User D 250 $83.79 $ 20,947.50 $ 83.79 $ 20,947.50 $ 83.79 $ 20,947.50 Year 1 Total $ 83,945.00 Year 2 Total $ 83,945.00 Year 3 Total $ 83,945.00 Three Year Total $ 251,835.00
No Tax Referenced
RIVERSIDE CONTRACT: ITARC-00933
Terms and Conditions of sales and services projects are governed by the terms at:
http://www.cdwg.com/content/terms-conditions/product-sales.aspx Terms & Conditions
Year 1 Year 2 Year 3
Notes
CDW Government, LLC
Microsoft Enterprise 6.6 Agreement Pricing
Enterprise Quote

CITY OF COACHELLA
EA Quote
Customer to make three annual payments to CDW•G

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Item 15.

Transform your organization with Microsoft subscriptions for GCC Connect, protect, and empower every employee, from the office to the frontline worker, with a subscription plan that enhances productivity and drives innovation.

Jump to section 🡺 Microsoft 365 apps
Email, calendar, and scheduling
Meetings, calling, and chat
Intranet and storage
Content services
Analytics
Viva
Project and task management
Automation, app building, and chatbots
Data lifecycle management
Data loss prevention (DLP)
Information protection
Threat protection
Cloud Access Security Broker
Identity and access management
Endpoint and app management
eDiscovery and auditing
Insider risk management
Windows
Add-on subscriptions
Email, calendar, and scheduling
Exchange Kiosk (2 GB mailbox) See footnote 1 ● ●
Exchange Plan 1 (50 GB mailbox) ●
Exchange Plan 2 (100 GB mailbox) ● ● ● ●
Calendar ● ● ● ● ● ● ● ●
Outlook desktop client ● ● ● ●
Auto-expanding email archive ● ● ● ● ● ●
Exchange Online Protection ● ● ● ● ● ● ●
Public folder mailboxes ● ● ● ● ●
Resource mailboxes ● ● ● ● ● ● ●
Inactive mailboxes ● ● ● ●
Microsoft Shifts ● ● ● ● ● ● ● ●
Microsoft Bookings ● ● ● ● ● ● ● ●
1 Microsoft 365 F1 includes the Exchange Kiosk service plan to enable Teams calendar only. It does not include mailbox rights.

Microsoft 365 apps
Desktop client apps1 ● ● ● ●
Microsoft 365 for mobile2 ● ● ● ● ● Read only ●3 ●3
Install apps on up to 5 PCs/Mac + 5 tablets
+ 5 smartphones ● ● ●4 ● ● ●4 ●4
Microsoft 365 for the web ● ● ● ● ● Read only ● ●
Visio for the web ● ● ● ● ● Read only ● ●
Microsoft Editor premium features ● ● ● ●
Multilingual user interface for Microsoft 365 apps ● ● ● ● 1 Includes Word, Excel, PowerPoint, OneNote, Outlook, Access (PC only), and Publisher (PC only). 2 Includes Word, Excel, PowerPoint, Outlook, and OneNote mobile Apps. 3 Limited to devices with integrated screens smaller than 10.9”. 4 Mobile apps only.

Page 1 of 8 ends

Information Worker Plans Frontline Worker Plans
Microsoft 365 Office 365 Enterprise Mobility
+ Security Windows 11 Microsoft 365 Office 365
G3 G5 G5
Security1
G5
Compliance1 G1 G3 G5 G3 G5 Enterprise G5 F1 F3 F5
Security2
F5
Compliance2
F5
Sec+Comp2 F33
1 Requires Microsoft 365 G3 (or Office 365 G3 and Enterprise Mobility + Security G3). 2 Requires Microsoft 365 F1/F3 (or Office 365 F3 and Enterprise Mobility + Security E3). 3 Not available for new customer purchases in Volume Licensing or Buy Online channels.

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Item 15.

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Intranet and storage
SharePoint Kiosk (2 GB OneDrive storage) ●1 ●1 ●1
SharePoint Plan 12(1 TB OneDrive storage) ●
SharePoint Plan 22 (1+ TB OneDrive storage3) ● ● ● ●
1 No site mailbox. No personal site.
2 Includes 10 GB SharePoint storage in addition to 1TB storage provided per organization. 3 Microsoft will provide up to 5 TB of initial OneDrive storage per user based on the default quota for the tenant. Additional storage can be requested by contacting Microsoft support. Subscriptions for fewer than five users received 1 TB of OneDrive storage that cannot be expanded.

Content services
Microsoft Graph API ● ● ● ● ● ● ● ●
Microsoft Search ● ● ● ● ● ● ● ●
Microsoft Stream (on SharePoint) ● ● ● ● ● ●1 ●1 ●1
Microsoft Forms2 ● ● ● ● ● ● ●
Microsoft Lists ● ● ● ● ● ● ● ●
Delve ● ● ● ● ●
1 Users can record meetings and consume Stream content but cannot publish to Stream. 2 Licensed users can create/share/manage forms. Completing/responding does not require a Forms license.

Meetings, calling, and chat
Microsoft Teams ● ● ● ● ● ● ● ●
Unlimited chat ● ● ● ● ● ● ● ●
Online meetings ● ● ● ● ● ● ● ●
Live Events ● ● ● ● ●
Webinars ● ● ● ●
Screen sharing and custom backgrounds ● ● ● ● ● ● ● ●
Record meetings ● ● ● ● ● ● ● ●
Priority notifications ● ● ● ● ● ● ● ●
Teams Phone Standard ● ●
Audio Conferencing ●1 ●2 ●1 ●1 ●2 ●1 ●1 ●1
1 Available via the no-cost Audio Conferencing with Select Dial Out supplemental license. Includes unlimited toll dial-in, 60 minutes/user/month dial-out to US and Canada phone numbers, and Operator Connect Conferencing. 2 Includes unlimited toll dial-in, 60 minutes/user/month dial-out to Zone A countries, and Operator Connect Conferencing.

Analytics
Adoption Score ● ● ● ● ● ● ● ●
Secure Score ● ● ● ● ● ● ● ● ●
Compliance Management ● ● ● ● ● ● ● ●
Power BI Pro ● Page 220●
Item 15.

Project and task management
Microsoft Planner ● ● ● ● ● ● ● ●
Microsoft To-Do ● ● ● ● ● ● ●
Automation, app building, and chatbots1
Power Apps for Microsoft 365 ● ● ● ● ● ● ●
Power Automate for Microsoft 365 ● ● ●2 ●2 ●2 ●3 ● ●2
Power Virtual Agent for Teams ● ● ● ● ● ● ●
Dataverse for Teams ● ● ● ● ● ● ●
1 Refer to the licensing FAQs and Licensing Guide at https://docs.microsoft.com/power-platform/admin/powerapps-flow-licensing-faq for details including functionality limits. 2 Cloud flows only.
3 Desktop flows only.

Data lifecycle management
Manual retention labels ● ● ● ● ● ● ● ● ● ●
Basic org-wide or location-wide retention policies ● ● ● ● ● ● Rules-based automatic retention policies ● ● ● ● ●
Machine Learning-based retention ● ● ● ●
Teams message retention policies ● ● ●1 ● ● ●1 ●1 ● ● ●1 Records Management ● ● ● ● ●
1 30-day minimum retention period.

Page 3 of 8 ends

Viva Insights1
Viva Insights app in Teams ● ● ● ● ● ●2 ●2 ●2
Personal insights and experiences ● ● ● ● ●
Premium personal insights and experiences1 ●3 ●3
1 Requires Exchange Online. Analyst workbench tools and accelerators, Manager and leader insights and experiences, and additional Premium personal insights and experiences are available with the Viva Insights and Viva Suite add-ons. 2 Limited to Reflect, Headspace, Send Praise, Virtual Commute, Microsoft To-Do (F3 only) 3 Includes the Shorten a meeting feature, Delay delivery plan, and Track email open rate inline suggestions.

Viva Connections
Dashboard, Feed, Resources, and Teams app ● ● ● ● ● ● ● ● Data Loss Prevention (DLP)
DLP for emails & files ● ● ● ● ● ●
DLP for Teams chat ● ● ● ● ●
Endpoint DLP ● ● ● ●

Page 221 ends

Item 15.

Information protection
Azure Information Protection Plan 14 ● ● ● ●
Azure Information Protection Plan 24 ● ● ● ● ●
Manual, default, and mandatory sensitivity
labeling in Microsoft 365 apps ● ● ● ● ● ● ●1 ●
Automatic sensitivity labeling in Microsoft 365 apps ● ● ● ● ● ● Manual sensitivity labels for Teams meetings2 ● ● ● ● ● Automatic sensitivity labels in Exchange,
SharePoint, and OneDrive ● ● ● ● ●
Default sensitivity labels for SharePoint
document libraries ● ● ● ● ●
Sensitivity labels based on advanced classifiers (e.g., Trainable Classifiers, EDM, Named Entities, Contextual) ● ● ● ● ● Sensitivity labeling for containers in Microsoft 365 ● ● ● ● ● Basic Message Encryption ● ● ● ● ●3 ●3 ●3 ●
Advanced Message Encryption ● ● ● ● ●
Customer Key ● ● ● ● ●
Personal Data Encryption ● ● ● ●
1 Microsoft 365 F1 does not include Exchange email service or Microsoft 365 apps. 2 Requires Microsoft Teams Premium.
3 Does not included Exchange email service.
4 The AIP Unified Labeling add-in for Office is retiring on April 11, 2024.

Threat protection
Microsoft Defender Antimalware ● ● ● ● ●
Microsoft Defender Firewall ● ● ● ●
Microsoft Defender Exploit Guard ● ● ● ●
Microsoft Defender Credential Guard ● ● ● ●
BitLocker and BitLocker To Go ● ● ● ●
Microsoft Defender for Endpoint Plan 1 ● ● ●
Microsoft Defender for Endpoint Plan 2 ● ● ●
Microsoft Defender for Identity ● ● ● ● ●
Microsoft Defender for Office 365 Plan 2 ● ● ● ● ●
Microsoft Defender Application Guard for Edge ● ● ● ●
Microsoft Defender Application Guard for Office ● ● ● ● Safe Documents ● ● ● ●

Page 4 of 8 ends

Page 222 ends

Item 15.

Identity and access management
Microsoft Entra ID1 Plan 12 ● ● ● ●
Microsoft Entra ID1 Plan 22 ● ● ● ● ●
Microsoft Entra ID Protection ● ● ● ● ●
User Provisioning ● ● ● ● ● ● ● ● ● ● ● ● ●
Cloud user self-service password change ● ● ● ● ● ● ● ● ● ● ● ● ● Cloud user self-service password reset ● ● ● ● ● ● ● ● ● Hybrid user self-service password change/reset
with on-premises write-back ● ● ● ● ● ● ● ● ●
Advanced Security Reports ● ● ● ● ● ● ● ● ●
Multi Factor Authentication ● ● ● ● ● ● ● ● ● ● ● ● ●
Conditional Access ● ● ● ● ● ● ● ● ●
Risk Based Conditional Access / Identity Protection ● ● ● ● ● Privileged Identity Management ● ● ● ● ●
Access Reviews ● ● ● ● ●
Entitlement Management ● ● ● ● ●
Microsoft 365 Groups ● ● ● ● ● ● ● ●
On-premises Active Directory sync for SSO ● ● ● ● ● ● ● ● ● ● ● ● DirectAccess supported ● ● ● ●
Windows Hello for Business ● ● ● ●
Microsoft Advanced Threat Analytics ● ● ● ● ● ● ● ●
1Formerly Azure Active Directory Premium.
2Learn about known limitations in Azure Government for Microsoft Entra ID P1 and P2.

Endpoint and app management
Microsoft Intune Plan 1 ● ● ● ● ● ●
Mobile Device Management ● ● ● ● ● ● ● ● ● ● ●
Mobile application management ● ● ● ● ● ● ●
Windows Autopilot ● ● ●
1 ●1 ●1 ●
Group Policy support for Windows ● ● ● ●
Group Policy support for Microsoft 365 apps ● ● ● ●
Cloud Policy service for Microsoft 365 ● ● ●
2 ● ● ●2 ●2
Shared computer activation for M365 Apps ● ● ● ●
Endpoint Analytics ● ● ● ● ● ●
1 Does not include Windows license.
2 Limited to policies for web apps.

Cloud access security broker
Microsoft Defender for Cloud Apps ● ● ● ● ● ● ●
Microsoft Defender for Cloud Apps Discovery ● ● ● ● ● ● App Governance in Defender for Cloud Apps ● ● ● ● ● ● ● Office 365 Cloud App Security ●

Page 5 of 8 ends

Page 223 ends

Item 15.

Insider risk management
Insider Risk Management ● ● ● ●
Communication Compliance ● ● ● ● ●
Information Barriers ● ● ● ● ●
Customer Lockbox ● ● ● ● ●
eDiscovery and auditing
Content Search ● ● ● ● ● ● ● ● ●
eDiscovery (Standard) (including Hold and Export) ● ● ● ● ● ● ● Litigation Hold ● ● ● ● ● ●
eDiscovery (Premium) ● ● ● ● ●
Audit (Standard) ● ● ● ● ● ● ● ●
Audit (Premium) ● ● ● ● ●

Page 6 of 8 ends

Windows
Windows 11 Edition (EA only) Enterprise Enterprise Enterprise Enterprise Azure Virtual Desktop ● ● ● ●
Windows Enterprise LTSC and MDOP ● ● ● ●
Universal Print1 ● ● ● ●
1 100 print jobs per month for each Microsoft 365 G3/G5 license and 5 print jobs per month for each Windows E5 Commercial GCC Compatible license

Page 224 ends

Item 15.

Add-on subscriptions
Expand the power and security of your Microsoft 365 plans with these additional options.

Information Worker Plans Frontline Worker Plans

Page 7 of 8 ends

Microsoft 365 Office 365 Microsoft 365 Office 365
G3 G5 G1 G3 G5 F1 F3 F3 Security and Compliance
Microsoft 365 G5 Security + ● N/A N/A N/A N/A N/A N/A
Microsoft 365 G5 Compliance + ● N/A N/A N/A N/A N/A N/A Microsoft 365 G5 Info Protection and Governance + ● +
1 +1 ●+1,2 + + +1
Microsoft 365 G5 Insider Risk Management + ● + + ●+
3 + + +
Microsoft Purview Insider Risk Management forensic evidence8 N/A + N/A N/A N/A N/A N/A N/A Microsoft 365 G5 eDiscovery and Audit + ● + + ● + + +
Microsoft 365 F5 Security N/A N/A N/A N/A N/A + + +
4 Microsoft 365 F5 Compliance N/A N/A N/A N/A N/A + + + 4 Microsoft 365 F5 Security + Compliance N/A N/A N/A N/A N/A + + + 4 Microsoft 365 F5 Information Protection and Governance N/A N/A N/A N/A N/A + + + 4 Microsoft 365 F5 Insider Risk Management N/A N/A N/A N/A N/A + + + 4 Microsoft 365 F5 eDiscovery and Audit N/A N/A N/A N/A N/A + + + 4 Microsoft Defender for Identity + ● + + + + + +
Microsoft Defender for Office 365 Plan 1 + ● + + ● + + + Microsoft Defender for Office 365 Plan 2 + ● + + ● + + + Microsoft Defender for Cloud Apps + ● + + + + + +
Microsoft Defender for Endpoint Plan 1 ● ● + + + + + +
Microsoft Defender for Endpoint Plan 2 + ● + + + + + +
Microsoft Defender Vulnerability Management (standalone) + + + + + + + + Microsoft Defender Vulnerability Management (add-on)9 + + + + + + + + Microsoft Defender for Endpoint for servers5 + + + + + + + + Premium Assessments add-on for Compliance Manager6 + + + + + + + + Priva Privacy Risk Management + + + + + N/A N/A N/A
Priva Subject Rights Requests + + + + + N/A N/A N/A
Microsoft Purview Data Loss Prevention (for email and files) ● ● + ● ● N/A + + Exchange Archiving ● ● + ● ● N/A + +
Microsoft Entra ID7Plan 1 ● ● + + + ● ● +
Microsoft Entra ID7Plan 2 + ● + + + + + +
Microsoft Entra ID Governance + + +
11 +11 +11 +11 + +11
Microsoft Entra ID Governance Plan 2 +
11 + +11 +11 +11 +11 +11 +11
Microsoft Intune Plan 1 ● ● + + + ● ● +
Microsoft Intune Suite for GOV + + +
10 +10 +10 + + +10
Microsoft Intune Plan 2 for GOV + + +
10 +10 +10 + + +10
Microsoft Intune Endpoint Privilege Management for GOV + + + 10 +10 +10 + + +10
Microsoft Intune Remote Help for GOV + + +
10 +10 +10 + + +10
Microsoft Intune Advanced Analytics for GOV + + +
10 +10 +10 + + +10
Microsoft Intune Enterprise Application Management for GOV + + + 10 +10 +10 + + +10
Microsoft Cloud PKI for GOV + + +
10 +10 +10 + + +10
10-year Audit Log Retention N/A + N/A N/A + N/A N/A N/A 1 EMS E3 or Azure Information Protection Plan 1 standalone required. 2 Office 365 E5 includes the DLP for Teams chat, Rules-based auto classification, advanced Information Governance, Advanced Message Encryption, and Customer Key value of Microsoft 365 E5 Information Protection and Governance but does not include Microsoft Defender for Cloud Apps
or Machine Learning-based auto classification.
3 Office 365 E5 includes the Communication Compliance, Information Barriers, Customer Lockbox, and Privileged Access Management value of M365 E5 Insider Risk Management but does not include the full Insider Risk Management solution.
4 Requires EMS E3 (K)
5 Separate license required for each OSE (e.g., servers or virtual machines). See OSE definition in the Product Terms glossary. 6 Get details on available assessments.
7 Learn about known limitations in Azure Government for Microsoft Entra ID P1 and P2 (formerly Azure Active Directory Premium). 8 Requires Microsoft 365 G5, Microsoft 365 G5 Compliance, or Microsoft 365 G5 Insider Risk Management.
9 Requires Microsoft Defender for Endpoint Plan 2 standalone or subscription/suite that includes Microsoft Defender for Endpoint P2. 10 Requires Microsoft Intune Plan 1
11 Microsoft Entra ID Governance requires Microsoft Entra ID P1.

Microsoft Entra ID ID Governance P2 requires Microsoft Entra ID P2. Page 225 Item 15.

Add-on subscriptions
Microsoft 365 Office 365 Microsoft 365 Office 365
G3 G5 G1 G3 G5 F1 F3 F3
Information Worker Plans Frontline Worker Plans

Page 8 of 8 ends

©2025 Microsoft Corporation. All rights reserved. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. This document is provided "as-is." Information and views expressed in this document, including URL and other Internet Web site references, may change without notice. This document does not provide you with any legal rights to any intellectual property in any Microsoft product.

Publish date: January 1, 2025
Power Platform
Power BI Pro + ● + + ● + + +
Power BI Premium + + + + + + + +
Power Apps per-app (1 app/user/month) + + + + + + + +
Power Apps per-user (unlimited apps/user/month) + + + + + + + + Power Automate per-user (unlimited flows + 5K AI Builder credits/user/month) + + + + + + + +
Power Automate per-user w/ Unattended RPA (unlimited flows + 5K AI Builder credits/user/month) + + + + + + + +
Power Automate per-flow (5 flows/month for unlimited users)1 + + + + + + + + 1 Initial minimum purchase requirement of 5 licenses.

Teams Services1
Teams Premium + + + + + + + +
Audio Conferencing with Select Dial Out + N/A + + N/A + + + Extended Dial Out Minutes to US and Canada +
2 + +2 +2 + +2 +2 +2
Teams Phone Standard + ● + + ● + + +
Domestic Calling Plan +
3 + +3 +3 +3 +3 +3 +3
Domestic Calling 120 Minute Plan +
3 +3 +3 +3 +3 +3 +3 +3
International Calling Plan (includes Domestic Plan) +
3 +3 +3 +3 +3 +3 +3 +3
Teams Phone with Calling Plan4 + ◐5 + + ◐5 N/A + +
1 Check country and region availability.
2 Audio Conferencing, Audio Conferencing with Select Dial Out, or Business Voice required. 3 Teams Phone Standard required.
4 Microsoft 365 G5 and Office 365 G5 include Teams Phone Standard. Choose a Calling Plan to add calling minutes. 5 Includes full Domestic Calling Plan.

Windows
Universal Print Volume Add-on + + N/A N/A N/A N/A + N/A .

SharePoint and storage
SharePoint Advanced Management + + + + + + + +
Microsoft 365 Extra File Storage + + + + + + + +
Microsoft Viva
Viva Insights + + + + + N/A N/A N/A
Copilot
Microsoft 365 Copilot + + + + + + + +

Page 226 ends

Item 15.

STAFF REPORT
11/12/205
TO: Honorable Mayor and City Council Members
FROM: Jaime Arroyo, Grants Manager
SUBJECT: Adopt Resolution No. 2025-56 Authorizing the Submittal of an Individual Grant Application for the California Department of Resources Recycling and Recovery (CalRecycle) Beverage Container Recycling City/County Program in the Amount of $11,282
STAFF RECOMMENDATION:

Staff recommends that the City Council consider adopting Resolution No. 2025-56 authorizing the submittal of an individual grant Aapplication for the California Department of Resources Recycling and Recovery (CalRecycle) Beverage Container Recycling City/County Program in the Amount of $11,282.

Authorization will be effective for five years from the date of adoption, from FY 25-26 to FY 30-

31. BACKGROUND:

The Department of Resources Recycling and Recovery (CalRecycle) offers the Beverage Container Recycling City County Payment Program pursuant to Public Resources Code (PRC) Section 14581(a)(3)(A) of the California Beverage Container Recycling and Litter Reduction Act.

CalRecycle is distributing $10,500,000 in fiscal year (FY) 2025-26 to eligible cities and counties specifically for beverage container recycling and litter cleanup activities. The purpose of the beverage container recycling program is to reach and maintain an 80 percent recycling rate for all California Refund Value beverage containers – aluminum, glass, plastic, and bi-metal. Projects implemented by cities and counties will assist in reaching and maintaining this goal.

The City of Coachella’s allocation is $11,282. The calculation is based upon the population in the incorporated areas of a city, or a city and county, or the unincorporated area of a county as of January 1, 2025 (Department of Finance E-1 Population Estimates for Cities, Counties and the State with Annual Percent Change – January 1, 2024, and 2025. Sacramento, California, May 2025).

Page 227 ends

Item 16.

DISCUSSION/ANALYSIS:

Eligible activities include, but are not necessarily limited to:
 Bins/Litter Reduction
 Water Refill Stations
 Advertising/Promotion
 Education/Outreach
 Personnel Hours
 Litter Clean-Up Event
 Promotion Items/Stuff We All Get
Timeline
 August 19, 2025: Funding Request Open Date
 November 18, 2025: Funding Request Due Date
 January 15, 2026 (Tentative): Payment Awards and Beginning of Term (Request for Approval Date)
 March – April 2026 (Tentative): Payment Distributed
 January 5, 2028: Term End Date
 February 2, 2028: Reporting Due Date
The City will submit an application for the Bins/Litter Reduction eligible activity, as it has in the past.

ALTERNATIVES:

1. Adopt Resolution No. 2025-56 Authorizing the Submittal of an Individual Grant Application for the California Department of Resources Recycling and Recovery (CalRecycle) Beverage Container Recycling City/County Program in the Amount of $11,282

2. Not Adopt Resolution No. 2025-56 Authorizing the Submittal of an Individual Grant Application for the California Department of Resources Recycling and Recovery (CalRecycle) Beverage Container Recycling City/County Program in the Amount of $11,282
FISCAL IMPACT:

The City of Coachella will receive reimbursement in the amount of $11,897.00 from the California Department of Resources Recycling and Recovery (CalRecycle). Once CalRecycle reviews and approves the City’s reimbursement request, including the supporting documentation for the eligible expenditures, payment will be released.

ATTACHMENT:

Resolution No. 2025-56

Page 228 ends

Item 16.

RESOLUTION 2025-56

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COACHELLA

CALIFORNIA AUTHORIZING SUBMITTAL OF AN INDIVIDUAL GRANT

APPLICATION FOR THE CALIFORNIA DEPARTMENT OF RESOURCES

RECYCLING AND RECOVERY BEVERAGE CONTAINER RECYCLING
CITY/COUNTY PROGRAM IN THE AMOUNT OF $11,282
WHEREAS, the California Public Resources Code authorizes the Department of Resources Recycling and Recovery (CalRecycle) to administer various Grant Programs; and WHEREAS, in furtherance of this authority, CalRecycle is required to establish procedures governing the administration of the Grant Programs; and WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle Grants.

WHEREAS, in furtherance of this authority, CalRecycle is required to establish procedures governing the administration of the Grant Programs; and NOW, THEREFORE, BE IT RESOLVED that the City Manager of the City of Coachella is authorized to submit an application to CalRecycle for the Beverage Container Recycling City/County Program.

BE IT FURTHER RESOLVED that the City Manager, or their designee, are hereby authorized as Signature Authority to execute in the name of City of Coachella all grant documents, including but not limited to, applications, agreements, amendments, and requests for payment, necessary to secure grant funds and implement the approved grant project.

BE IT FURTHER RESOLVED that these authorizations are effective for five years from the date of adoption.

Page 229 ends

Item 16.

PASSED, APPROVED and ADOPTED this 12th day of November, 2025. ___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
___________________________________
Ryan Guiboa
City Attorney

Page 230 ends

Item 16.

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2025-56 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 12th day of November, 2025, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk

Page 231 ends

Item 16.

STAFF REPORT
11/12/205
TO: Honorable Mayor and City Council Members
FROM: Jaime Arroyo, Grants Manager
SUBJECT: Adopt Resolution No. 2025-55 Authorizing State of California Cannabis Equity Act Grant Funding
STAFF RECOMMENDATION:

Staff recommends that the City Council consider adopting Resolution No. 2025-55 authorizing the City Manager to submit an application to the Office of the Governor’s Business and Economic Development’s (Go-Biz) under the FY 2025-26 Cannabis Equity Grants Program for Local Jurisdictions in the amount of $250,000 and authorize the City Manager to execute any and all necessary documentation, including a standard agreement to accept the grant funds, if awarded.

BACKGROUND:

In 2019, the City of Coachella Cannabis Equity Program was established to support equitable opportunities in the local cannabis industry by making legal cannabis business ownership and employment opportunities more accessible to individuals negatively impacted by the prior criminalization of cannabis in Long Beach. This support includes access to resources such as direct technical assistance and grants, expedited application review, and priority consideration in the licensing process for Local Equity Applicants/Licensees. GO-Biz, in accordance with the California Cannabis Equity Act, administers the Cannabis Equity Grants Program for Local Jurisdictions to aid local equity program efforts to support equity applicants and licensees. GOBiz requires 80 percent of the City's total grant award to be redistributed to equity applicants and licensees in the form of direct grants. The remaining 20 percent is split evenly between administrative costs and direct technical assistant costs.

DISCUSSION/ANALYSIS:

The latest grant award will be utilized to assist equity licensees with ongoing and startup costs including rent/lease payments, local licensing and regulatory fees, legal assistance, regulatory compliance, capital improvements, furniture, fixtures, and equipment. In addition, the grant award will help to continue to fund administrative costs and technical assistance to provide educational resources and one-on-one advisory services in the areas of regulatory compliance, inventory, site lease negotiation, and financial assistance.

Page 232 ends

Item 17.

ALTERNATIVES:

1. Adopt Resolution No. 2025-55 Authorizing State of California Cannabis Equity Act Grant Funding

2. Not Adopt Resolution No. 2025-55 Authorizing State of California Cannabis Equity Act Grant Funding
FISCAL IMPACT:

The grant has no required match or in-kind service mandate. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. This recommendation will result in the continued employment of City staff funded through this grant who help administer the Cannabis Equity Program in the Development Services Department.

ATTACHMENT:

Resolution No. 2025-55

Page 233 ends

Item 17.

RESOLUTION 2025-55

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COACHELLA

CALIFORNIA AUTHORIZING STATE OF CALIFORNIA CANNABIS EQUITY ACT

GRANT FUNDING
The City Council of the City of Coachella finds:

WHEREAS, the members of the California Legislature have recognized the need for cannabis equity grant funding;
WHEREAS, funding has been provided to the Governor’s Office of Business and Economic Development to provide grant funds to local governments; WHEREAS, the City Council of the City of Coachella has adopted and operates a local equity program for commercial cannabis activity.

WHEREAS, the City Council of the City of Coachella has determined that it will use grant funds from the Governor’s Office of Business and Economic Development to assist local equity applicants and licensees through its local equity program for commercial cannabis activity as described in its application for grant funds.

NOW, THEREFORE, BE IT RESOLVED that the City Manager of the City of Coachella is authorized to execute by electronic signature on behalf of the City Council of the City of Coachella, the grant agreement with the Governor’s Office of Business and Economic Development, including any extensions or amendments thereof and any subsequent grant agreement with the Governor’s Office of Business and Economic Development in relation thereto.

IT IS AGREED that any liability arising out of the performance of this grant agreement, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency. The Governor’s Office of Business and Economic Development and the State of California disclaim responsibility for any such liability.

Page 234 ends

Item 17.

Page 235 ends

Item 17.

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2025-55 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 12th day of November, 2025, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk

Page 236 ends

Item 17.

STAFF REPORT
11/12/2025
TO: Honorable Mayor and City Council Members
FROM: Lincoln Bogard, Finance Director
SUBJECT: Investments 101 Presentation and Agreement for Investment Advisory Services with Optimized Investment Partners, LLC
STAFF RECOMMENDATION:

Receive the Investments 101 Presentation with Optimized Investments Partners, LLC (Attachment A) and adopt Resolution 2025-57 to approve an Agreement for Professional Services with Optimized Investment Partners, LLC (Attachment B) for investment advisory services.

EXECUTIVE SUMMARY:

Staff recommends that Council approve a three-year agreement with Optimized Investment Partners, LLC (OIP) for investment advisory and management services, with the option to extend twice via one-year extensions. This will allow the City to maximize investment returns and stabilize interest earnings, generating additional revenue to support critical municipal services.

Optimized Investment Partners will also provide advanced cash flow modeling and active cash management to ensure the City's liquidity needs are met and that the City can optimize interest revenue.

BACKGROUND:

The City has historically invested surplus cash conservatively in LAIF and a managed portfolio.

However, the City seeks a more proactive investment strategy to maximize returns on its investments and to create stability in interest income. The City’s current investment advisor only manages a portion of the City’s portfolio. This agreement will allow for 90-95% portfolio utilization and comprehensive cash management.

After reviewing Optimized Investment Partners' qualifications, references, and competitive bids from other municipalities, as well as comparing the firm’s strategy to the City’s current portfolio management strategy, staff determined OIP is best suited to meet the City's needs. OIP offers unique services including cash-flow modeling, investment policy review, monthly account monitoring, and continuous investment advice. Additionally, Optimized Investment Partners pricing structure provides a cost-savings from its current advisor.

Page 237 ends

Item 18.

DISCUSSION/ANALYSIS:

During the review of Optimized Investment Partners' services, staff evaluated the proposed costs and fees to ensure they are in line with current market rates for the scope of services to be provided.

City staff also reviewed formal bidding documents from two other California cities for investment advisory services to industry standard pricing.

While the City’s current investment advisor charges a tiered fee structure ranging from 10 basis points (0.10%) on the first $25 million to 7 basis points (0.07%) above $50 million, Optimized Investment Partners, LLC (OIP) offers a flat rate of 8 basis points (0.08%) on all assets under management. This structure is more equitable and cost-effective for the City’s portfolio size, eliminating the higher initial fee tiers applied under the current agreement.

Beyond cost savings, OIP provides a broader and more proactive scope of services that the current advisor does not offer. These include comprehensive cash-flow modeling, monthly cash position analysis, and continuous portfolio oversight designed to maximize returns while maintaining liquidity. OIP’s approach identifies additional investable funds and integrates the City’s operational budget and capital plans into the investment strategy, ensuring funds are always aligned with the City’s financial needs.

In summary, OIP’s proposal offers both a lower effective cost and greater value, combining professional expertise, enhanced cash management tools, and strategic portfolio optimization to improve long-term investment performance and fiscal stability for the City.

The City can utilize cooperative purchasing to engage Optimized Investment Partners for investment advisory services. Many public agencies have cooperative purchasing clauses in their procurement policies that allow them to "piggyback" on competitively bid contracts from other public entities. Utilizing cooperative purchasing to engage Optimized Investment Partners (OIP) provides an efficient and cost-effective solution for the City. By leveraging OIP's existing contracts with other agencies, the City can obtain high-quality investment advisory services without the time and resources required for a full competitive bidding process. Moreover, the opportunity cost of delaying investment through a competitive bidding process outweighs any potential savings, as the lost investment revenue would be substantially greater.

Optimized Investment Partners recently earned the business of the City of Coalinga and the City of Del Mar through competitive bidding processes that the City of Coachella can leverage. This would allow the City to quickly engage Optimized's services and begin benefiting from their expertise in public agency portfolio management and cash flow optimization.

The investment strategies currently being considered will utilize a multi-year laddering approach designed to take advantage of the higher interest rates currently available in the market. This approach is intended to stabilize interest earnings and generate consistent returns for the City.

The City will maintain its custodial agreement with its current authorized bank to continue holding the investment cash before and after investments are purchased. This third-party relationship

Page 238 ends

Item 18.
ensures an appropriate system of checks and balances to safeguard the City's investments.

Optimized Investment Partners will not hold or maintain any control over the City's cash but will instead advise and recommend compliant investments.

Recently, the Financial Director spoke with the City Manager of the City of Suisun City regarding their experience with Optimized Investment Partners. Bret Prebula, City Manager, confirmed that OIP has fulfilled all contractual obligations and expressed satisfaction with their services, noting positive performance and professional relationship. He even stated that he had no negative comments to make and that is unusual for him.

OIP is a California based company from San Diego County that serves cities and special districts.

OIP is comprised of highly skilled staff with extensive municipal finance experience. OIP specializes in assisting small to medium size municipalities in California with optimizing their investment portfolios. OIP currently has 26 clients with total assets under management of $480 million. OIP’s approach to optimizing the City’s returns on its investments will include rigorous cash flow modeling and monthly reviews of cash balances to ensure sufficient liquidity necessary for daily operations.

The fees for OIP services will be based on the amount of assets under management (AUM) and is set at a flat rate of 0.08% (8 basis points) for AUM, which encompasses all investments in custodial accounts, pooled accounts, and other investment-related accounts, excluding City checking account balances. There are no additional fees or reimbursement costs associated with these services unless in-person meetings are required.

OIP's services differ substantially from traditional municipal investment advisors:
• Their custom cash flow modeling uniquely integrates all of the City’s funds, the City's budgets, Capital Improvement Plans, and cyclical revenue patterns into the investment strategy. This proactive approach identifies significantly more investable funds compared to competitors who rely on clients to determine cash availability. • OIP provides active cash management by analyzing all cash positions monthly, including existing investments with US Bank. This maximizes investment potential while ensuring liquidity needs are met.

The City will also have an option to terminate the agreement at any time with a 30-day notice, should the Consultant’s performance fall below the City’s expectations.

ALTERNATIVES:

1. Adopt Resolution 2025-57 to approve City Manager to enter into contract with Optimized Investment Partners, LLC.

2. Do not approve resolution and maintain existing investment advisor services.

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Item 18.

FISCAL IMPACT:

If the Council would like to proceed with authorizing the City Manager to engage in an agreement for investment advisory services with Optimized Investment Partners LLC, Optimized Investment Partners will actively manage the City’s cash surplus which will ensure monthly value with cash management, taking advantage of market opportunities to improve future yields, and to appropriately ladder the investment portfolio to ensure resiliency and consistent revenue into the future. They will also help to ensure that the City stays in compliance with the California government code.

By contracting Optimized Investment Partners for investment advisory services, it is anticipated that they will generate an additional $38,000 in revenue per month for the first 12 months, based on current interest rates. Their fee is approximately $4,000 per month. This is a projected positive net fiscal impact of $34,000 per month. The fee is subject to change based upon the fluctuations of the amount of assets under management (AUM) and is set at a flat rate of 0.08% (8 basis points) as specified in the advisory contract.

Should the City Council not take the action recommended, the City may forgo the financial benefits associated with engaging Optimized Investment Partners (OIP). Without OIP’s expertise in proactive investment portfolio management, cash flow modeling, and active cash management, the City could miss opportunities to enhance investment performance and result in reduced investment earnings and opportunity cost.

RECOMMENDED ALTERNATIVE(S):

Adopt Resolution 2025-57 to approve City Manager to enter into contract with Optimized Investment Partners, LLC.

ATTACHMENT(S):

Attachment A – Investments 101 Presentation by Optimized Investment Partners, LLC Attachment B – Agreement for professional services-Optimized Investment Partners, LLC

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Item 18.

RESOLUTION NO. 2025-57

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

CALIFORNIA, APPROVING A PROFESSIONAL SERVICES AGREEMENT

WITH OPTIMIZED INVESTMENT PARTNERS, LLC
WHEREAS, the Approval of Agreement Between the City of Coachella and Optimized Investment Partners, LLC – Investment Advisory Firm is to approve the Agreement for Professional Services; and
WHEREAS, the City of Coachella desires to enhance the management of its investment portfolio and ensure compliance with California Government Code Section 53600 et seq.; and WHEREAS, the City of Coachella and Optimized Investment Partners, LLC (“OIP”) desire to enter into a Professional Services Agreement for investment advisory services; and WHEREAS, the Agreement provides for comprehensive investment advisory services, including cash flow modeling, investment policy review, compliance oversight, monthly and quarterly reporting, and continuous investment oversight to improve liquidity management and portfolio performance; and
WHEREAS, the Professional Services Agreement with Optimized Investment Partners, LLC establishes an annual fee based on assets under management at a rate of eight (8) basis points (0.08%); and
NOW, THEREFORE, BE IT RESOLVED 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 incorporated into this Resolution as though fully set forth herein.

Section 2. Adopt Resolution No. 2025-57 Agreement Between the City of Coachella and Optimized Investment Partners, LLC Agreement Dated November 12, 2025.

Section 3. Authorize the City Manager to make any non-substantive changes to the contract as may be recommended by City Attorney and agreed to by Optimized Investment Partners, LLC.

PASSED, APPROVED and ADOPTED this 12th day of November 2025. ___________________________________
Steven A. Hernandez
Mayor

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Item 18.

Resolution No. 2025-57

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ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER
___________________________________
City Attorney

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Item 18.

Resolution No. 2025-57

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STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2025-57 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 12th day of November 2025, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk

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Item 18.
1 INVESTMENTS 101

PRESENTATION

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Item 18.

Agenda
Investment Requirements
Permitted Investments
The OIP Advantage
Interest Revenue Projections
The OIP Process
Success Stories
FAQ
2

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Item 18.

Government agencies must comply with California Government Code (GC Section 53600) CITY OF COACHELLA’S INVESTMENT REQUIREMENTS

INVESTMENT OF SURPLUS

REPORTING
Monthly or Quarterly reporting to the governing body outlining cash assets invested, investment types, purchases, sales, market conditions, and affirming agency projection of sufficient cash availability to meet operating needs. (GC Section 53607) ANNUAL INVESTMENT POLICY UPDATE (GC SECTION 53646)

PRUDENT INVESTOR STANDARD
Trustees shall act with care, skill, prudence, and diligence. (GC Section 53600.3)

REQUIREMENTS SAFEGUARDS
Safety of Principal, Liquidity, and Yield (GC Section 53600.5) 3

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4 PERMITTED INVESTMENTS G C 5 3 6 0 1

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Item 18.

Provide Annual Investment Policy Review and Recommendations for Updates

TRANSPARENT REPORTING

COMPREHENSIVE CASH FLOW MODELING AND LADDERING STRATEGY

ANNUAL INVESTMENT POLICY REVIEW AND ADOPTION

INVESTMENT OF LIQUID FUNDS
OIP’S VALUE ADDED SERVICES
Prepare Council Agenda Items, Staff Reports, and Monthly or Quarterly Reports Perform an Initial Historical Analysis and Cash Flow Model, Provide Monthly or More Review, and Continuous Investment Monitoring

EDUCATIONAL PRESENTATIONS
Deliver Investments 101 and On-Going Support in Municipal Fund Management Provide Active Cash Management and Optimize Investment Performance While Maintaining Sufficient Liquidity

COMPLIANCE
Ensure and Maintain Regulatory Compliance with All Applicable Government Codes and Standards 5

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Item 18.

COMMON APPROACH

INVESTMENT MANAGEMENT APPROACHES

THE OIP ADVANTAGE
Cash flow modeling and cash management that utilizes
more funds for the investment portfolio and honors
liquidity needs.

Reporting and compliance included with our service.

Safer, provides budgetary resiliency, and optimizes
yields.

A customized approach that incorporates budgets and
CIP Programming.

Government expertise.

Passive: Most of the money is in
checking. Some funds invested in county
or state investment pools. Liquid, but
low yields. Exposes the portfolio to
interest rate risks.

Active: Somewhat diverse over a 5-year
period, cookie-cutter, impersonal and
out-dated.
6

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Item 18.

An optimized laddering strategy secures the best available rates while keeping funds productive until needed, ensuring stability in budgeted interest income.

Liquid investments are highly sensitive to market fluctuations. Locking in rates with appropriate tools and time horizons provides more predictable and guaranteed returns.

THE OIP ADVANTAGE: KEY POINTS

BUDGETARY RESILIENCY

REDUCING INTEREST RATE RISK
Tailored investment strategies based on the City’s unique cash flow needs allows for optimized returns and honors liquidity needs.

ACTIVE MANAGEMENT
7

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Item 18.

PERFORMANCE IMPACT
* B a s e d o n o r i g i n a l p r o j e c t i o n s , s u b j e c t t o c h a n g e b a s e d o n c u r r e n t i n t e r e s t r a t e s a n d a r e n o t a g u a r a n t e e o f f u t u r e r e t u r n s .

WITHOUT OIP WITH OIP IMPROVEMENT
FY 2025-2026 BUDGETED
INTEREST REVENUE $670,000 $2,223,000 $1,553,000
PROJECTED YEAR 1
INTEREST REVENUE $2,010,000 $2,470,000 $460,000
PROJECTED YEAR 2
INTEREST REVENUE $1,890,000 $2,340,000 $450,000
8

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Item 18.

OIP creates a strategic
investment plan that
outlines initial portfolio
structure and receives
approval from the City.

Step 1 OIP assists the City with
confirming or establishing
custodial/trust and
broker/dealer accounts.

Step 2

THE OIP PROCESS
A meeting is held with OIP,
the broker/dealer and your
team to purchase
investments.

Step 3
9 OIP actively monitors all
accounts and provides
monthly or more
recommendations.

Continuous
Management
Step 4 After contract approval,
OIP performs a
comprehensive cash flow
model analysis.

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Item 18.

SUCCESS STORIES
Cities/Towns
City of Buellton
City of Coalinga
City of Cotati
City of Del Mar
City of Fontana
Community Services Districts
Arvin Community Services District
Cambria Community Services District
Golden Hills Community Services District
Los Osos Community Services District
Oceano Community Services District
Stallion Springs Community Services District
Special Districts
Cayucos Sanitary District
Northshore Fire Protection District
Lake County Fire Protection District
San Mateo County Harbor District
San Gabriel Valley Mosquito and Vector Control District West Side Mosquito & Vector Control District
Georgetown Divide Public Utility District
Rancho Simi Recreation and Park District
Greenfield County Water District
Tehachapi-Cummings County Water District
City of Lemoore
City of Sanger
City of Sonoma
City of Suisun City
Town of Loomis
San Francisco San Mateo Nevada
Placer
El Dorado Ventura Lake Sonoma Del
Norte
Humboldt Mendocino TrinityMarin Santa Cruz Siskiyou Glenn Tehama Colusa ShastaButteYuba Sutter Yolo Sacramento San Benito MontereyPlumas Modoc LassenSierra Fresno Kings Santa Barbara Alpine Amador Calaveras Contra Tulare Costa Alameda
San
Joaquin
Stanislaus Mariposa Santa
Clara
Merced Madera Mono Tuolumne Los AngelesInyo Orange San DiegoRiverside San Bernardino Imperial San Luis Obispo Solano Napa Kern 10

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Item 18.

HOW DOES OIP FREE UP CITY STAFF’S TIME?
HOW DOES OIP KEEP THE CITY’S MONEY SAFE?
WHAT IS CASH FLOW MODELING AND CASH MANAGEMENT?
HOW IS OIP DIFFERENT FROM OTHER INVESTMENT ADVISORS?
FAQ
OIP produces monthly or quarterly reports, staff reports, and investment policies and revisions, and relieves City staff of the burden of staying informed in the government investment landscape.

OIP utilizes high quality investments, optimized laddering, and checks and balances.

OIP analyzes historical data, budgets, and current data to optimize returns and minimize idle cash.

OIP delivers individualized, first-class, service standards, and a customized approach which is backed by extensive government expertise.
11

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Item 18.

THANK
YOU!
12

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Item 18.

Important Disclosures
Investment Advisory Status
Optimized Investment Partners, LLC (“OIP”) is a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). The views expressed herein reflect OIP’s opinions as of the date of this presentation and are subject to change without notice. This material does not constitute an offer to buy or sell any securities.

Projections and Forward-Looking Statements
Any references to financial outcomes, interest rates, or market conditions are for illustrative purposes only and should not be interpreted as guarantees. Projections are based on current assumptions and are subject to change. Actual results may vary due to market fluctuations and other unforeseen factors.

Investment Risks
Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. Economic conditions, market volatility, and changes in investment strategy may significantly impact performance. Fixed income investments carry risks including interest rate, credit, and market risk—particularly in environments with rising interest rates.

Performance Reporting
Performance figures are presented gross of advisory fees and include reinvested dividends. Advisory fees, if applied, will reduce overall performance. Benchmark and index performance shown does not reflect transaction costs, custodial fees, or advisory fees.

Legal and Advisory Disclaimer
This presentation is for informational purposes only and should not be considered specific investment, legal, or tax advice. Opinions expressed are based on current market conditions and may change at any time. Information may become outdated or superseded without notice. 13

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Item 18.
1 AGREEMENT FOR PROFESSIONAL SERVICES

TO PERFORM INVESTMENT ADVISORY SERVICES
This AGREEMENT is entered into this 12th of November, 2025, by and between the City of Coachella, a municipal corporation (“CITY”) and OPTIMIZED INVESTMENT PARTNERS, LLC. (“Optimized” OR “ADVISER”).

RECITALS
A. The City desires for Investment Adviser to provide non-discretionary Investment Advisory services related to the City’s investment portfolio for investment of surplus funds to achieve preservation of capital and maintain appropriate levels of liquidity at market yields.

B. The City does not have the personnel able and/or available to perform the services required under this agreement and therefore, the City desires to contract for advisory services to accomplish this work.

C. The Adviser warrants to the City that it has the licenses, qualifications, and experience to perform the services under this Agreement.

D. The City desires to contract with the Adviser to perform the services as described in Attachment A “The Proposal.”
NOW, THEREFORE, based on the foregoing recitals, the City and the Adviser agree as follows:

1. CONSIDERATION AND COMPENSATION
A. As partial consideration, ADVISER agrees to perform the work listed in the SCOPE OF SERVICES, attached as Attachment A “The Proposal.”
B. As additional consideration, ADVISER and CITY agree to abide by the terms and conditions contained in this Agreement.

C. As additional consideration, CITY agrees to pay ADVISER for ADVISER’s services, based on “Compensation” as reflected in Attachment A “The Proposal,” unless otherwise specified by written amendment to this Agreement. City Manager is authorized to allow an additional amount not to exceed twenty percent (20%) of the total estimated amount under this Agreement.

D. No additional compensation shall be paid for any other expenses incurred, unless first approved by the Administrative Services Director or his/her designee.

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Item 18.
2 E. ADVISER shall submit monthly invoices to CITY. CITY shall pay ADVISER all uncontested amounts set forth in ADVISER’s invoice within 30 days after it is received.

2. SCOPE OF SERVICES.

A. ADVISER will perform the services and activities set forth in the SCOPE OF SERVICE attached hereto as Attachment A “The Proposal” and incorporated herein by this reference.

B. Except as herein otherwise expressly specified to be furnished by CITY, ADVISER will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space, and facilities necessary or proper to perform and complete the work and provide the professional services required of ADVISER by this Agreement.

C. Optimized’s attendance or participation at any publicly noticed meeting (in addition to the one virtual meeting included in the scope of services section), whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public City Board, other), as requested by Client is in addition to stated compensation schedule (Additional Task) and will be billed at the professional services (hourly) fees as shown on Attachment A “The Proposal,” Exhibit 1.

D. Optimized’s services outlined and described herein are advisory services only. Any decisions or actions taken or not taken by Client and affiliates, are deemed to be based on Client’s understanding and by execution of this Agreement, acknowledgement that Optimized’s services are advisory only and as such, cannot be relied on as to the results, performance and conclusions of any investment or project that Client may or may not undertake as related to the services provided including any verbal or written communications by and between the Client and Optimized. Client acknowledges that Optimized's use of work product is limited to the purposes contemplated within this Agreement.

Optimized makes no representation of the work product's application to, or suitability for use in, circumstances not contemplated by the scope of work under this Agreement

3. PAYMENTS. For CITY to pay ADVISER as specified by this Agreement, ADVISER must submit a monthly invoice to CITY in accordance with the schedule of compensation incorporated in Attachment A “The Proposal.” For the convenience of OPTIMIZED’s clients, we offer a secure ACH payment method.

Bank account information provided on a separate form after contract execution. Services will be invoiced monthly at Consultant’s standard billing rates, as shown on Attachment A “The Proposal,” Exhibit 1. In addition to professional services (hourly) fees, invoices will include reimbursement for out-of-pocket expenses such as travel and mileage (provided that there shall be no overnight travel without the Client’s prior approval and that mileage shall be reimbursed at the current IRS mileage reimbursement rate), professional printing, conference calls, and delivery charges for messenger and overnight packages at actual cost. Unless otherwise agreed to in advance, out-of-area travel, if any, requires advance funding of flights and hotel accommodations. All standard deliverables will be provided electronically. No additional out-of-pocket expenses are assumed unless specifically requested by Client. The first monthly invoice will be generated after investment recommendations have been approved by Client and funds have been invested. Fees will not be charged on assets in City checking (i.e., demand deposit) accounts. Fees are charged on the ending monthly custodial bank balance, assets invested in certificates of deposit, and pooled account assets including cash and investments, as reported by the custodial bank, broker/dealers,

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Item 18.
3 other banks, and pooled account administrators. Optimized will submit an invoice calculated monthly with a statement provided.

4. TIME OF PERFORMANCE. The services of the ADVISER are to commence upon receipt of a notice to proceed from the CITY and shall continue until all authorized work is completed to the City’s reasonable satisfaction, in accordance with the schedule incorporated in Attachment A “The Proposal”, unless extended in writing by the CITY.

5. FAMILIARITY WITH WORK. By executing this Agreement, ADVISER represents that ADVISER has (a) thoroughly investigated and considered the scope of services to be performed; (b) carefully considered how the services should be performed; and (c) understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement.

6. LIMITATION OF DAMAGES. In the event Optimized is found liable for any violation of duty, whether in tort or in contract, damages shall be limited to the amount Optimized has received from Client.

7. KEY PERSONNEL. ADVISER’s key person assigned to perform Investment Advisory services under this Agreement is David Bilby. ADVISER shall not assign other persons to be in charge of the work contemplated by this Agreement without the prior written authorization of the City.

8. TERM OF AGREEMENT. The term of this Agreement shall commence upon execution by both parties and shall expire pursuant to Attachment A “The Proposal”, unless earlier termination occurs under Section 12 of this Agreement, or this Agreement is extended in writing in advance by both parties.

9. CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by ADVISER and CITY.

The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties.

10. TAXPAYER IDENTIFICATION NUMBER. ADVISER will provide CITY with a Taxpayer Identification Number.

11. PERMITS AND LICENSES. ADVISER will obtain and maintain during the term of this Agreement all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement.

12. TERMINATION.

A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause.

Notice will be in writing at least 30 days before the effective termination date.

B. ADVISER may terminate this Agreement. Notice will be in writing at least 30 days before the effective termination date.

C. In the event of such termination, the ADVISOR shall cease services as of the date of termination, and all finished or unfinished documents, data, drawings, maps, and other materials prepared by ADVISER

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Item 18.
4 shall, at City’s option, become City’s property, and ADVISER will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination.

D. CANCELLATION PERIOD. If a copy of Optimized’s ADV brochure has not been provided at least 48 hours prior to the signing of this document, the City is afforded a five-day cancellation option.

13. INDEMNIFICATION.

A. ADVISER shall indemnify, defend with counsel approved by CITY, and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, and cost of every nature resulting from ADVISER's negligent or wrongful performance of work hereunder or its failure to comply with any of its obligations contained in this AGREEMENT, regardless of CITY’S passive negligence, but excepting such loss or damage which is caused by the sole active negligence or willful misconduct of the CITY.

B. The requirements as to the types and limits of insurance coverage to be maintained by ADVISER as required by Section 18, and any approval of said insurance by CITY, is intended to and will limit or qualify the liabilities and obligations otherwise assumed by ADVISER pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification.

14. ASSIGNABILITY. This Agreement is for ADVISER’s professional services. ADVISER’s attempts to assign the benefits or burdens of this Agreement without City’s written approval are prohibited and will be null and void.

15. INDEPENDENT CONTRACTOR. CITY and ADVISER agree that ADVISER will act as an independent contractor and will have control of all work and the manner in which is it performed.

ADVISER will be free to contract for similar service to be performed for other employers while under contract with CITY. ADVISER is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct ADVISER as to the details of doing the work or to exercise a measure of control over the work means that ADVISER will follow the direction of the CITY as it relates to the end results of the work only.

16. AUDIT OF RECORDS.

A. ADVISER agrees that CITY, or designee, has the right to review, obtain, and copy all records pertaining to the performance of this Agreement. ADVISER agrees to provide CITY, or designee, with any relevant information requested and will permit CITY, or designee, access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this Agreement. ADVISER further agrees to maintain such records for a period of three (3) years following final payment under this Agreement.

B. ADVISER will keep all books, records, accounts and documents pertaining to this Agreement separate from other activities unrelated to this Agreement.

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Item 18.
5 17. CORRECTIVE MEASURES. ADVISER will promptly implement any corrective measures required by CITY regarding the requirements and obligations of this Agreement. ADVISER will be given a reasonable amount of time as determined by the City to implement said corrective measures. Failure of ADVISER to implement required corrective measures shall result in immediate termination of this Agreement.

18. INSURANCE REQUIREMENTS.

A. The ADVISER, at the ADVISER’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies:

1. If ADVISER has employees, Workers Compensation Insurance as required by law. The Adviser shall require all subcontractors similarly to provide such compensation insurance for their respective employees. Any notice of cancellation or non-renewal of all Workers’ Compensation policies must be received by the CITY at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against the CITY, its officers, agents, employees, and volunteers for losses arising from work performed by the CONTRACTOR for City.

2. General Liability Coverage. The ADVISER shall maintain commercial general liability insurance in an amount of not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.

3. Automobile Liability Coverage. The ADVISER shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the ADVISER arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired, and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence.

4. Professional Liability Coverage. Professional liability insurance appropriate to the Adviser’s profession. This coverage may be written on a “claims made” basis and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of or related to services performed under this Agreement. The insurance must be maintained for at least 3 consecutive years following the completion of Adviser’s services or the termination of this Agreement.

During this additional 3-year period, Adviser shall annually and upon request of the City submit written evidence of this continuous coverage.

B. Endorsements. Each general liability, automobile liability and professional liability insurance policy shall be issued by a financially responsible insurance company or companies eligible and authorized to do business in the State of California, or which is approved in writing by City.

C. The ADVISER shall provide certificates of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with

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Item 18.
6 the CITY on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement.

D. Failure on the part of the ADVISER to procure or maintain required insurance shall constitute a material breach of contract under which the CITY may terminate this Agreement pursuant to Section 11 above.

19. USE OF OTHER ADVISERS. ADVISER must obtain CITY’s prior written approval to use any Advisers while performing any portion of this Agreement. Such approval must include approval of the proposed Advisers and the terms of compensation. ADVISER must obtain CITY’s prior written approval to using any Advisers (other than David Bilby or Robert Michalik) while performing any portion of this Agreement.

20. FINAL PAYMENT ACCEPTANCE CONSTITUTES RELEASE. The acceptance by the ADVISER of the final payment made under this Agreement shall operate as and be a release of the CITY from all claims and liabilities for compensation to the ADVISER for anything done, furnished or relating to the ADVISER’S work or services. Acceptance of payment shall be any negotiation of the CITY’S check or the failure to make a written extra compensation claim within ten (10) calendar days of the receipt of that check. However, approval or payment by the CITY shall not constitute, nor be deemed, a release of the responsibility and liability of the ADVISER, its employees, sub-Advisers and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by the CITY for any defect or error in the work prepared by the Adviser, its employees, sub-Advisers and agents.

21. NOTICES. All communications pertaining to this Agreement to either party by the other party will be deemed made when received by such party at its respective name and mailing or email address as follows and receipt of communication is acknowledged in writing or by email:

City: City of Coachella
53990 Enterprise Way
Coachella, CA 92236
(760) 398-3502
Attention: William Pattison
City Manager
Adviser: Optimized Investment Partners, LLC.
2212 Carol View Drive, 103
Cardiff, CA 92007
(619) 324-9531
Attention: Robert Michalik, COO
Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. All notices, requests, demands, and other communications which may be required under this Agreement shall be in writing and shall be deemed to have been received when transmitted; if personally delivered, if transmitted by telecopier, electronic or

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Item 18.
7 digital transmission method, upon transmission; if sent by next day delivery to a domestic address by a recognized overnight delivery service (e.g., Federal Express), the day after it is sent; and if sent by certified or registered mail, return receipt requested, upon receipt. In each case, notice shall be sent to the principal place of business of the respective party. Either party may change its address by giving written notice thereof to the other in accordance with the provisions of this paragraph.

22. INTERPRETATION. This Agreement was drafted in and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in San Diego County.

23. ENTIRE AGREEMENT; AMENDMENTS AND WAIVERS. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. This Agreement contains the entire agreement between the parties relating to the transactions contemplated hereby and any and all prior discussions, negotiations, commitments and understanding, whether written or oral, related hereto are superseded hereby. No addition or modification of any term or provision of this Agreement shall be effective unless set forth in writing signed by both parties. No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver of such provisions unless otherwise expressly provided. Each party to this Agreement has participated in its drafting and, therefore, ambiguities in this Agreement will not be construed against any party to this Agreement.

24. LIMIT OF SCOPE OF WORK. All services are provided by Optimized Investment Partners, LLC. (Optimized). Optimized is registered with FINRA through IARD as a registered investment adviser.

Optimized is also registered with the United States Securities and Exchange Commission (SEC). Those personnel of Optimized providing Investment Advisory services are registered as investment advisors pursuant to the requirements of the state of California. Optimized is a registered investment advisor under the rules and laws of the State of California. Optimized is not a registered broker/dealer under the Securities Exchange Act of 1934 and does not provide broker/dealer services subject to those laws and the regulations thereunder. Optimized provides investment advisor and other services only in those jurisdictions where it is legally permitted to operate.

25. TITLE AND CAPTIONS. Titles and captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend, or describe the scope of this Agreement or the intent of any provision herein.

26. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party.

27. EXPIRATION OF PROPOSAL FOR SERVICES. If this Agreement is not fully executed by the parties within thirty (30) days from the date of this letter, this proposal shall expire.

28. SEVERABILITY. If any term or provision of this Agreement shall be deemed invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each remaining term and provision of this Agreement shall be valid and in force to the fullest extent permitted by law.

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Item 18.
8 29. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment with signatures of all parties to this Agreement. City Manager, or designee, may execute any such amendment on behalf of CITY.

30. ASSIGNMENT. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party without the prior written consent of the other party.

31. SUCCESORS & ASSIGNS. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

32. ACCEPTANCE OF ELECTRONIC SIGNATURES. The Parties agree that this Contract, agreements ancillary to this Contract, and related documents to be entered into in connection with this Contract will be considered signed when the signature of a party is delivered by scanned and delivered via electronic mail. Such facsimile or electronic mail copies will be treated in all respects as having the same effect as an original signature.

33. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which constitutes an original, and all of which together constitute one and the same instrument. The signature of any person on a telecopy of this Agreement, or any notice, action or consent taken pursuant to this Agreement shall have the same full force and effect as such person's original signature.

34. FORCE MAJEURE. Should performance of this Agreement be delayed or deemed impossible due to fire, flood, explosion, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties’ control, then the Agreement will immediately terminate without obligation of either party.

35. TIME IS OF ESSENCE. Time is of the essence to comply with dates and schedules to be provided.

36. FURTHER ACTIONS. The parties agree to execute such additional documents and take such further actions as may be necessary to carry out the provisions and intent of this Agreement.

37. CONFIDENTIALITY. Each of the parties agrees not to disclose this Agreement or any information concerning this Agreement to any persons or entities, other than to their attorneys and accountants, or as otherwise may be required by law.

38. ATTORNEY’S FEES. The parties hereto acknowledge and agree that each will bear his or its own costs, expenses, and attorneys' fees arising out of and/or connected with the negotiation, drafting and execution of the Agreement, and all matters arising out of or connected therewith except that, in the event any action is brought by any party hereto to enforce this Agreement, the prevailing party in such action shall be entitled to reasonable attorneys' fees and costs in addition to all other relief to which that party or those parties may be entitled.

39. STATEMENT OF EXPERIENCE. By executing this Agreement, ADVISER represents that it has demonstrated trustworthiness and possesses the quality, fitness, and capabilities to perform the Agreement

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Item 18.
9 in a manner satisfactory to CITY. ADVISER represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private Advisers, and experience in dealing with public agencies all suggest that ADVISER is capable of performing the proposed contract and has a demonstrated capability to deal fairly and effectively with and to satisfy a public City.

40. OWNERSHIP OF DOCUMENTS. It is understood and agreed that the City shall own all documents and other work product of the Adviser, except the Adviser’s notes and workpapers, which pertain to the work performed under this Agreement. The City shall have the sole right to use such materials in its discretion and without further compensation to the Adviser, but any re-use of such documents by the City on any other project without prior written consent of the Adviser shall be at the sole risk of the City.

Documents belonging to the City shall be transmitted to the City immediately and without delay upon any termination of this Agreement.

41. DISCLAIMER. Optimized’s investment advisory services and work product, which may include but is not limited to pro forma analysis and tax projections, are projections only. Actual results may differ materially from those expressed in the analysis performed by Optimized due to the integrity of data received, market conditions, economic events and conditions, and a variety of factors that could materially affect the data and conclusions. Client’s reliance on Optimized’s analysis must consider the foregoing.

Any material conflicts of interest have been disclosed within this Agreement.

IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.

CITY:

City of Coachella
By: ____________________________
Name: William Pattison
Title: City Manager
Date: ____________________
ADVISER:

Optimized Investment Partners, LLC.

By: ______________________________
Name: Robert Michalik
Title: COO
Date: ____________________

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Item 18.
10 Attachment A (Proposal)
October 28, 2025
William Pattison
City Manager
City of Coachella
53990 Enterprise Way
Coachella, CA 92236
Re: Proposal (Attachment A) for Investment Advisory Services to the City of Coachella Dear Mr. Pattison:

Optimized Investment Partners, LLC (“Optimized”), is pleased to present this proposal (Attachment A) to the City of Coachella (“Client” or “City”) to provide investment advisory services related to the City’s surplus funds portfolio to achieve preservation of capital and maintain appropriate levels of liquidity at market yields.

Optimized Investment Partners was formed for one reason. To serve you. Our president and CEO has been working in local government investments for over 19 years. He identified a huge disparity in the investment advisory industry. The larger agencies were offered more opportunities for services than smaller ones. Smaller agencies have been virtually ignored even though it’s the smaller agencies that don’t have the staffing resources to manage the diverse set of responsibilities required.

I. BACKGROUND AND OBJECTIVE
OPTIMIZED will provide specified professional investment advisory services consistent with California government code section 53600 as detailed in the scope of services section below. As a fiduciary to your City, Optimized will place preservation of capital as our top priority, while ensuring appropriate levels of liquidity for day-to-day operations. We will seek to earn market yields once the first two priorities have been achieved.

II. SCOPE OF SERVICES
OPTIMIZED proposes the following scope of work to assist Client with investment advisory services. Please note that the prospective assignment that OPTIMIZED proposes to provide are advisory in nature. OPTIMIZED will be making specific investment recommendations. None of OPTIMIZED's staff will act in a capacity as an elected official, an appointed official, as staff, or serve in a "designated" position.

1. Provide investment advisory services for all surplus funds identified by Optimized and Client in compliance with Government Code Section 53600 and other applicable government codes, local municipal codes, charters, and policies

2. Build a comprehensive cash-flow model to enhance liquidity management and increase the amount of funds invested in the investment portfolio

3. Investment Policy review and consulting

4. Provide general investment education to City Staff and Officials

5. Prepare reports of monthly/quarterly transactions

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Item 18.
11 6. Monitor the credit of investment securities in the portfolio for compliance with the City’s Investment Policy

7. Perform interest revenue projections as needed for analysis

8. If requested, deliver one virtual public presentation to a commission, special committee, or governing body (e.g. City Council, Board of Directors) of the City

9. As requested, assist with other compliance and audit review requirements as related to OPTIMIZED services, and/or attend publicly noticed City meetings.

III. SCHEDULE AND REQUIRED DATA
Optimized is prepared to commence work upon receipt of an executed Agreement. Client will promptly provide Optimized with project data requested, including three (3) years of cash transaction detail.

Days 1-7
⮚ Kickoff meeting to discuss and confirm schedule
⮚ Custodial account setup
⮚ Broker/Dealer account setup
⮚ Pool(s) account(s) setup
Days 7-14
⮚ Portfolio recommendations
⮚ Trade execution with Client broker/dealer
IV. COMPENSATION/TERM
Consultant shall receive compensation, including authorized reimbursements, for Services rendered under this Agreement at the rates set forth below. Contract will be in force for an initial three (3) years, with the option to extend twice via one (1) year extension(s).

Investment Advisory Annual Fee Schedule
Contract Year Annual Fee Basis – Assets Under Management Year 1 Fiscal Year Ending
June 30, 2026
8 basis points Ending Monthly Custodial Bank Balance and Collateral Accounts*
Year 2 Fiscal Year Ending
June 30, 2027
8 basis points Ending Monthly Custodial Bank Balance and Collateral Accounts*
Year 3 Fiscal Year Ending
June 30, 2028
8 basis points Ending Monthly Custodial Bank Balance and Collateral Accounts*
Year 4 Fiscal Year Ending
June 30, 2029
8 basis points Ending Monthly Custodial Bank Balance and Collateral Accounts*
Year 5 Fiscal Year Ending
June 30, 2030
8 basis points Ending Monthly Custodial Bank Balance and Collateral Accounts*
*Based on the ending monthly custodial bank balance, assets invested in certificates of deposit, and pooled account assets including cash and investments, as reported by the custodial bank, broker/dealers, other banks, and pooled account administrators. Optimized will submit an invoice calculated monthly with a statement provided (Example: $61 million ending balance would be invoiced at $61 million * 0.0008= $48,800/12 = $4,067 monthly).

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Item 18.
12 To the extent alternative assignments are requested, compensation for requested Additional Tasks (defined below) will be based on hours spent at OPTIMIZED’s billing rates as shown on “Exhibit 1.” V. NON-DISCRETIONARY
This contract does not grant discretionary power to Optimized, or its representatives, and the contract will not be assigned by Optimized without the consent of the Client. Optimized must secure client permission prior to effecting securities transactions for the Client in the client’s broker-dealer account(s).

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Item 18.
13 Exhibit 1
Optimized Investment Partners, LLC.
2025 City Fee Schedule
Professional Services
President & CEO $350.00/hour
Senior Project Manager $250.00/hour
Project Analyst / Project Research $150.00/hour
Clerical Support $ 75.00/hour
● Additional Expenses
In addition to professional services (labor fees):
1) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost.
2) If Optimized retains Third Party Vendor(s) for Client (with Client’s advance approval), fees and cost will be billed to Client at

1.1X (times) fees and costs.
3) Consultant’s attendance or participation at any public meeting, in addition to 1 included virtual meeting in scope of services, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public City Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this “Exhibit 1.” ● Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of 1.5 times scheduled rates, with a 4-hour minimum.

Rates shall remain in effect until December 31, 2025.

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Item 18.

STAFF REPORT
November 12, 2025
TO: Honorable Mayor and City Council Members
FROM: Yolanda Lopez, Department of Human Resources
SUBJECT: Resolution No. 2025-47 Approving Reclassifications change from Construction Project Coordinator to Public Works Construction Manager STAFF RECOMMENDATION:

Staff recommends that the City Council approve Resolution 2025-47, approving the reclassification of the Construction Project Coordinator position to a new position titled Public Works Construction Manager, including approval of the job description and Salary Schedule adjustment.

BACKGROUND:

As part of the City’s recent organizational restructuring, the Public Works Department and the Engineering Division were merged under the leadership of the Public Works Director/City Engineer. With this consolidation, the Construction Project Coordinator position has taken on broader responsibilities that extend beyond project management.

The reclassified position may provide direct supervision of assigned staff, overseeing Parks and Facilities Capital Improvement Projects (CIP), and managing park maintenance contracts. In addition, the position will act as a key liaison between Public Works and Engineering, ensuring better coordination of resources, projects, and staff.

On October 14, 2025, Staff and Union representatives conducted a review of the proposed changes to the salary schedule and classifications. Following this review, the Union formally agreed via email to the proposed reclassification, which will transition employees from the Sanitary Employees and Miscellaneous Employees bargaining units into the Confidential MidManagement Employees bargaining unit.

DISCUSSION/ANALYSIS:

The current Construction Project Coordinator has extensive experience in construction management and has already been handling responsibilities at a higher level. The reclassification ensures that the title and pay range align with the actual duties being performed.

Page 270 ends

Item 19.

The position will move from the Sanitary Employees and Miscellaneous Employees group into the Confidential Mid-Management Employees group, being exempt from overtime.

ALTERNATIVES:

1. Approve the action.

2. Do not approve the action.

FISCAL IMPACT:

The Public Works Construction Manager classification will result in a salary range increase from $98,352.83 – $125,525.90 to $117,013.12– $149,341.68, representing an approximate 19% adjustment. This is offset by a reduction of overtime of 20% by the staff in this position. The overall adjustment will be negligible.

Attachments:

Resolution 2025-47
Job Description
Confidential Mid-Management Salary Schedule

Page 271 ends

Item 19.

RESOLUTION NO. 2025-47

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COACHELLA, CALIFORNIA, APPROVING THE RECLASSIFICATION OF

THE CONSTRUCTION PROJECT COORDINATOR POSITION TO PUBLIC

WORKS CONSTRUCTION MANAGER, INCLUDING APPROVAL OF THE

JOB DESCRIPTION AND SALARY SCHEDULE ADJUSTMENT
WHEREAS, the City of Coachella has recently undergone an organizational restructuring resulting in the consolidation of the Public Works Department and the Engineering Division under the leadership of the Public Works Director/City Engineer; and WHEREAS, as a result of this consolidation, the duties and responsibilities of the Construction Project Coordinator position have significantly expanded to include oversight of Capital Improvement Projects (CIP), supervision of staff, management of park maintenance contracts, and increased coordination between Public Works and Engineering; and WHEREAS, staff has determined that these enhanced responsibilities warrant a reclassification of the Construction Project Coordinator position to a new classification titled Public Works Construction Manager; and
WHEREAS, the reclassification reflects the duties currently being performed and ensures proper alignment between job title, responsibilities, and compensation; and WHEREAS, the proposed reclassification includes a salary range adjustment from $98,352.83 – $125,525.90 to $117,013.12 – $149,341.68, representing approximately a 19% increase; and
WHEREAS, the proposed reclassification includes a reduction in overtime of the existing staff member of approximately 20% which will offset the proposed salary increase; and WHEREAS, the position will move from the Sanitary Employees and Miscellaneous Employees bargaining unit to the Confidential Mid-Management Employees bargaining unit and be designated as exempt from overtime; and
WHEREAS, the City has discussed and conferred with the appropriate employee bargaining representatives, and no objections to the reclassification were raised; and WHEREAS, staff recommends the approval of the new job description for the Public Works Construction Manager and the associated salary schedule adjustment.

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

Section 1. The City Council hereby approves the reclassification of the Construction Project Coordinator position to Public Works Construction Manager.

Section 2. The City Council approves the new job description for Public Works Construction Manager as attached hereto.

Page 272 ends

Item 19.

Resolution No. 2025-47

Page 2 ends

Exhibit A: Job Description
Section 3. The City Council approves the associated salary schedule adjustment to the Confidential Mid-Management Salary Schedule.

Exhibit B: Updated Salary Schedule
PASSED, APPROVED and ADOPTED this 12th day of November 2025. ___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER
___________________________________
City Attorney

Page 273 ends

Item 19.

Resolution No. 2025-47

Page 3 ends

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2025-47 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 12th day of November 2025, by the following vote of Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk

Page 274 ends

Item 19.

City of Coachella - Salary Schedule
Confidential Mid-Management Employees
July 1, 2025 - June 30, 2026 (3% COLA Effective July 1, 2025) (Revised by Council 9/10/25, Resolution No. 2025-47)
Step A B C D E
"O"
Performance
Step (5%)
Public Works h 56.26 59.07 62.02 65.12 68.38 71.80
Construction Manager m 9,751.09 10,238.65 10,750.58 11,288.11 11,852.51 12,445.14 Grade 24 a 117,013.12 122,863.77 129,006.96 135,457.31 142,230.17 149,341.68

Page 275 ends

Item 19.

City of Coachella - Salary Schedule
Confidential Mid-Management Employees
July 1, 2026 - June 30, 2027 (2% COLA Effective July 1, 2026) (Revised by Council 9/10/25, Resolution No. 2025-47)
Step A B C D E
"O"
Performance
Step (5%)
Public Works h 57.38 60.25 63.26 66.43 69.75 73.23
Construction Manager m 9,946.11 10,443.42 10,965.59 11,513.87 12,089.56 12,694.04 Grade 24 a 119,353.38 125,321.05 131,587.10 138,166.46 145,074.78 152,328.52

Page 276 ends

Item 19.

STAFF REPORT
11/12/2025
TO: Honorable Mayor and City Council Members
FROM: Andrew Simmons, Director of Public Works/City Engineer SUBJECT: Provide Direction for Selection of 2025 Hometown Heroes Honorees and the Parade Grand Marshal
STAFF RECOMMENDATION:

Staff is requesting direction from the City Council for the selection of 5 Hometown Hero honorees for 2025.

Staff is recommending that Lee Espinoza be selected as the Grand Marshal to lead the Hometown Hero Honorees in the parade.

BACKGROUND:

The “Hometown Heroes” monument honors individuals or organizations who have made significant contributions to the civic or cultural life of the City of Coachella. Currently, the list of “Hometown Heroes” include the following persons:

1. Cesar Chavez; Civil Rights and Labor Leader

2. Leonila Torres; Community Leader

3. Linda Garza; Government Employee

4. Elvira Acosta Murillo; Community Leader

5. Severio “Cosmo” Lira Jr.; Commitment to Youth

6. Raquel G. Medina; Community Volunteer

7. Rich Ramirez; Educator and Mentor

8. Chauncey Veatch; Educator and Mentor

9. Juan Torres; Entrepreneur and Business Leader

10. Joe and Maria Celia Munoz; Exceptional
Citizens

11. Julio Diaz, Antonio Diaz and Joel Diaz; Boxing
Family Champions

12. Eugenia Ortiz; Community Leader and Activist

13. Clementine Olloque, Maria Carmona-Marron,
Maria Serrano, Maria Munoz; Community
Leaders and Activists

14. Organización en California de Lideres
Campesinas; Leaders and Community Activists

15. Caballero Family, Boxing Family Champions

16. Chris Romero, Exceptional Citizen

17. Mary Lou Torres, Exceptional Citizen and
Advocate

18. Merlyn Hamner, Historian

19. Joe Vega; Postmaster and Exceptional Citizen

20. Lee Espinoza; Coach and Mentor

21. CYSAS La Laja; Youth Sports Leaders

22. Vanessa Madera; Youth Sports Leader

23. Joe Ceja; Educator and Mentor

24. Deputy David Solis; Exceptional Valor

25. Mayor Yolanda R. Coba; Community Leader

26. Enedina Rapan; Community Activist

27. Enedina Rapan, Jesus Mota, Maria Hernandez,
Prospero Montes, Jesus Sanchez; Inspirational
Community Mentors

28. Gabriela Fundora; Youth Sports Leader

29. Citlalli Ortiz; Youth Sports Leader

30. Cesar Sanchez, Entrepreneur and Business
Leader

Page 277 ends

Item 20.

31. Father Guy Wilson; Religious and Spiritual
Leader

32. Dr. Juan De Lara; Educator and Mentor

33. Juanita Godwin; Community Leader and Youth
Mentor

34. Raices Cultura; Community Leader and Activists

35. Rosa Lucas – Community Advocate and Activist

36. Mario Lazcano; Community Leader and Activist

37. Captain Frank Morales, Lieutenant Cesar Garcia,
Engineer Danny Castro, Lieutenant George
Torres; Coachella Volunteer Firefighters

38. Clara Herrera and Clara Nieblas, Community
Advocate and Activist

39. Rosalia Plata; Community Advocate and Activist

40. Baltazar Aguirre; Exceptional Citizen and
Activist

41. Maria Magdalena Rodriguez; Exceptional
Citizen

42. Sandra Ramirez; Exceptional Citizen

43. Sebastian Fundora; Exceptional Athlete

44. Bonifacio De La Cruz; Battalion Chief Coachella
Fire Station No. 79

45. ASM Eduardo Garcia; Community Advocate
and Activist

46. Emmanuel Martinez; Community Leader and
Activist

47. Susie Del Toro – Veterans Advocate & Activist

48. Hon. Laura C. Garcia – Judge & Advocate

49. Araceli De La Torre – Educator & Mentor

50. Oralia Ortiz – Community Leader & Activist

51. Ruben Gonzalez – Community Advocate &
Activist

52. Susie Del Toro – Veterans Advocate & Activist

53. Hon. Laura C. Garcia – Judge & Advocate

54. Araceli De La Torre – Educator & Mentor
DISCUSSION/ANALYSIS:

Annually, during the City’s Tree Lighting Ceremony the City has recognized individuals or organizations as Hometown Heroes; staff recommends selecting up to 5 honorees per year. The selected Hometown Heroes are also invited to participate in the Holiday Parade and are led by the Grand Marshal. The recommended Grand Marshal, Coach and Mentor Lee Espinoza, was selected by staff as a noteworthy community member and former Hometown Hero Recipient. The City requested community input from late September through early November using its social media platforms and received the following 2025 Hometown Heroes nominee recommendations (10 nominees):

1. Maria Del Carmen Banda

2. Marcos Caballero

3. Cecelia Paniagua

4. Linda Cantu

5. Maria Mendoza

6. Rosie Martinez

7. Nick Meza

8. Amaya Munoz

9. Gabriel D. Martin, PhD (16 nominations)

10. Aaron Gasu (5 nominations)
ALTERNATIVES: None.

FISCAL IMPACT: None.

ATTACHMENT(S): None.

Page 278 ends

Item 20.

Coachella City CouncilNovember 12, 2025

Coachella City Council
November 12, 2025