Minutes — Desert Hot Springs City Council, March 1, 2022

City of Desert Hot Springs

ACTION MINUTES
City Council Meeting
6:00 PM - Tuesday, March 1, 2022
Council Chambers
CLOSED SESSION - 4:30 P.M.

CALL TO ORDER
Mayor Matas called the Closed Session to order at 4:30 P.M.

ROLL CALL

Present:

Council Members: Russell Betts, Roger Nuñez, Jan Pye
Mayor Pro Tem: Gary Gardner
Mayor: Scott Matas

PUBLIC COMMENTS
None.

Jennifer Mizrahi, City Attorney, announced the Closed Session Items.

CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: One Potential Case

2. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: One Potential Case

3. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Nadine Garcia, et al. v. City of Desert Hot Springs, et al.; 4th District Court of Appeal – Division 2; Case No. E075523

4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Gov Code Sec. 54957(b)
Title: City Manager

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City Council
March 1, 2022
PRESENTATIONS - 5:30 P.M.

Acrisure Arena Presentation
Arturo Aviles, Community Engagement Manager, gave a presentation regarding the Acrisure Arena project and the Coachella Valley Firebirds, and responded to questions.

Visit Greater Palm Springs Presentation
Scott White, President/CEO, and Colleen Pace, Chief Sales & Marketing Officer, presented updates regarding tourism economic impacts, cannatourism, marketing results, statistics, and responded to questions.

REGULAR SESSION - 6:00 P.M.

CALL TO ORDER
Mayor Matas called the Regular Session to order at 6:08 P.M.

ROLL CALL

Present:

Council Members: Russell Betts, Roger Nuñez, Jan Pye
Mayor Pro Tem: Gary Gardner
Mayor: Scott Matas

INVOCATION
Council Member Nuñez introduced Benny Hollman, who gave the Invocation.

PLEDGE OF ALLEGIANCE
Mayor Pro Tem Gardner led the Pledge of Allegiance.

CITY ATTORNEY REPORT ON CLOSED SESSION
Jennifer Mizrahi, City Attorney, advised that there was no reportable action.

APPROVAL OF AGENDA
ACTION: Approve the March 1, 2022 Regular Meeting agenda and approve the Consent Calendar in its entirety.

Moved by Mayor Matas
Seconded by Mayor Pro Tem Gardner

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City Council
March 1, 2022
Carried 5-0 by the following votes:

AYES: Betts, Nuñez, Pye, Gardner, and Matas

PUBLIC COMMENTS
Evelyn Rojas expressed concerns regarding construction noise.

Marion Champion, Mission Springs Water District, announced that the District would be holding "Water 101" classes.

CITY MANAGER REPORT
Geoffrey Buchheim, Administrative Services Director, provided a financial update.

Nicholas Haecker, Public Works Director, provided an update regarding the Police Department Dispatch Center project currently under construction.

Daniel Porras, Assistant City Manager, introduced the new City Engineer, Jilleen Ferris.

MAYOR AND COUNCIL MEMBER REPORTS
Council Member Pye reported on the various meetings and events she attended.

Mayor Pro Tem Gardner reported on the various meetings and events he attended.

Council Member Betts reported on the various meetings and events he attended.

Mayor Matas reported on the various meetings and events he attended.

PUBLIC HEARINGS:

5. Transition From At-Large to By-District Elections (Public Hearing No. 2) Staff Report - SR-22-042 - Pdf
Recommendation:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony;
7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Conclude the second Public Hearing receiving public testimony as part of the administrative record.

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City Council
March 1, 2022
Jerryl Soriano, City Clerk, presented the staff report and responded to questions.

Mayor Matas opened the Public Hearing.

Lance Weber expressed concerns regarding districting.

Mayor Matas closed the Public Hearing.

A discussion ensued.

ADMINISTRATIVE CALENDAR:

6. An Ordinance Amending Chapter 8.16 (Shopping and Laundry Carts) of Title 8 (Health and Safety) of the Desert Hot Springs Municipal Code to Enhance Regulations for the Containment and Retrieval of Shopping Carts Staff Report - SR-22-046 - Pdf
Recommendation:

Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, California, Amending Chapter 8.16 (Shopping and Laundry Carts) of Title 8 (Health and Safety) of the Desert Hot Springs Municipal Code to Enhance Regulations for the Containment and Retrieval of Shopping Carts.

Christina Newsom, Compliance Manager, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation.

Moved by Council Member Betts
Seconded by Council Member Nuñez
Carried 5-0 by the following votes:

AYES: Betts, Nuñez, Pye, Gardner, and Matas

7. Mid-Year Budget Adjustments for the 2021-2022 Fiscal Year.

Staff Report - SR-22-045 - Pdf
Recommendation:

Approve mid-year budget adjustments for the 2021-2022 Fiscal Year.

Geoffrey Buchheim, Administrative Services Director, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation.

Moved by Council Member Nuñez
Seconded by Mayor Pro Tem Gardner
Carried 5-0 by the following votes:

AYES: Betts, Nuñez, Pye, Gardner, and Matas

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City Council
March 1, 2022

8. Delegation of Investment Authority to the City Treasurer and adopt the Investment Policy for Fiscal Year 2022-2023
Staff Report - SR-22-047 - Pdf
Recommendation:

Adopt a Resolution of the City Council approving delegation of investment authority and other related duties to the City Treasurer, as authorized by the City’s Investment Policy, and approve and adopt the attached Investment Policy for Fiscal Year 2022-2023.

ACTION: Approve Staff recommendation and adopt Resolution No. 2022-005.

Moved by Council Member Betts
Seconded by Mayor Pro Tem Gardner
Carried 5-0 by the following votes:

AYES: Betts, Nuñez, Pye, Gardner, and Matas
CONSENT CALENDAR:

9. City Council Regular Meeting Minutes: February 15, 2022 Staff Report - SR-22-043 - Pdf
ACTION: Approved the Minutes as presented.

10. Second Reading and Adoption of An Ordinance Increasing the Salary for Planning Commissioners and Public Safety Commissioners
Staff Report - SR-22-041 - Pdf
ACTION: Adopted Ordinance No. 750: "An Ordinance of the City Council of the City of Desert Hot Springs amending Section 2.32.050 (Salaries of Planning Commissioners) of Chapter 2.32 (Planning Commission) and Section 2.40.050 (Salaries of Police Commissioners) of Chapter 2.40 (Police Commission) of the Desert Hot Springs Municipal Code increasing the salary of City Commissioners."

11. Second Reading and Adoption of An Ordinance Prohibiting the Unlawful Possession of Catalytic Converters in the City of Desert Hot Springs Staff Report - SR-22-040 - Pdf
ACTION: Adopted Ordinance No. 751: "An Ordinance of the City Council of the City of Desert Hot Springs, California, adding Chapter 8.55 "Catalytic Converters" to the Desert Hot Springs Municipal Code establishing regulations prohibiting the unlawful possession of catalytic converters in the City."

12. Contracts Management Report as of February 15, 2022 Staff Report - SR-22-044 - Pdf
ACTION: Received and filed.

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City Council
March 1, 2022

ADJOURN
Mayor Matas adjourned the meeting at 7:17 P.M.

Jerryl Soriano, CMC, City Clerk

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SR-22-042
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 1, 2022
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Transition From At-Large to By-District Elections (Public Hearing No. 2) RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony;
7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Conclude the second Public Hearing receiving public testimony as part of the administrative record.

BACKGROUND:

On December 8, 2021, the City Council adopted Resolution No. 2021-071 declaring its intent to transition from at-large to by-district elections, establishing the City’s compliance with Elections Code Section 10010, and a step-by-step process for the transition, which requires significant public participation.

On February 15, 2022, the City Council held the 1st required public hearing. At that meeting, the City Council received a presentation from Staff and its demographer, David Ely of Bear Demographics & Research, regarding legal requirements to be considered, the criteria for creating district boundaries, and the public input process.

The purpose of the first two public hearings is to inform the public about the districting process and to hear from the community on what factors should be taken into consideration while creating district boundaries.

Following this hearing, the map drawing phase of the process will begin. This involves the City's demographer using 2020 Census data, City Council direction, and public input to draw draft maps for

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SR-22-042
consideration at Public Hearing No. 3 on March 15, 2022. A final district map will be presented at Public Hearing No. 4 currently scheduled for April 5, 2022.

In addition to the required public hearings, public workshops were held on Thursday, February 17, 2022 and Thursday, February 24, 2022. A third public workshop will be held on March 9, 2022 at 6:00 P.M.

Members of the public are invited to attend in-person at City Hall or virtually via the Zoom platform.

FISCAL IMPACT:

None.

ATTACHMENTS:

Exhibit 1 - Staff Report from December 8, 2021
Exhibit 2 - Staff Report from February 15, 2022

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SR-21-295
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: December 8, 2021
Department: City Clerk
Prepared by: Jennifer Mizrahi, City Attorney
Subject: Resolution Declaring Intention to Transition From At-Large to By-District Elections and Setting Forth the Process for Transitioning to By-District Elections
RECOMMENDATION:

Adopt a Resolution of the City Council of the City of Desert Hot Springs declaring its intent to transition from at-large to by-district elections and setting forth the process for transitioning to by-district elections.

BACKGROUND:

The Desert Hot Springs Municipal Code provides that members of the City Council are currently elected by at-large elections, as each member is elected by the registered voters of the entire city. The California Voting Rights Act (the "CVRA") became law in 2003 and provides a means for prospective plaintiffs to allege racially polarized voting and to seek a change from a jurisdiction's at-large election system to a different system, typically a by-district or by-division election system where only registered voters within a specific district may vote for a candidate running from their specific district, and also allows for the recovery of a plaintiffs' attorneys' fees.

A violation of the CVRA may be established if it is shown that racially polarized voting has combined with an at-large voting system to impair the ability of a protected class of voters to elect candidates of its choice or to influence the outcome of an election. "Racially polarized voting" under the CVRA means voting in which there is a difference between the choice of candidates or other electoral choices that are preferred by voters in a protected class and in the choice of candidates and electoral choices preferred by voters in the rest of the electorate.

On November 1, 2021, the City received a certified letter from attorney Kevin I. Shenkman of the law firm Shenkman & Hughes, on behalf of his client, the Southwest Voter Registration Project, asserting that the City's at-large election system may violate the CVRA and threatening litigation if the City does not voluntarily transition to a district-based election system for electing its City Council. The City denies that its election system violates the CVRA or any other similar law whatsoever in connection with the manner in which it has conducted its City Council elections.

The City Council has nevertheless determined that the public interest would be served by transitioning to a district-based electoral system because of (1) the high cost to defend against a CVRA lawsuit, (2) the risk of losing such a lawsuit, which would require the City to pay the prevailing plaintiffs’ attorneys’ fees and costs, and (3) the availability of changing to district elections under the safe harbor provisions.

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SR-21-295
The City Council expresses its desire and intent that the district-based election system be implemented in a way that will minimize divisiveness in the community. The Resolution (Exhibit 1) establishes the City’s compliance with Elections Code Section 10010, and a step-by-step process for the transition, which requires significant public participation.

Procedure
Prior to the City's consideration and approval of an ordinance establishing boundaries for a by-district election system, Elections Code Section 10010 outlines procedural rules and requires all of the following steps:

A) Prior to drawing a draft map or maps of the proposed boundaries of the districts, the City shall hold at least two (2) public hearings over a period of no more than thirty (30) days, at which the public will be invited to provide input regarding the composition of the districts; B) After all maps are drawn, the City shall publish and make available for release at least one draft map, if members of the City Council will be elected in their districts at different times to provide for staggered terms of office, the potential sequence of elections shall also be published; C) The City Council shall also hold at least two (2) additional public hearings over a period of no more than forty-five (45) days, at which the public shall be invited to provide input regarding the content of the draft map(s) and the proposed sequence of elections, if applicable; and D) The first version of a draft map shall be published at least seven (7) days before consideration at a public hearing. If a draft map is revised at or following a public hearing, it shall be published and made available to the public for at least seven (7) days before being adopted.

The City shall take the following actions, within the time frames established by Elections Code Section 10010 following the effective date of this Resolution, taking into consideration time required for public outreach and input, agenda requirements under the Brown Act, and the City Council' meeting schedule:

A) Hiring of a qualified demographer to provide demographic services and assist in the preparation of proposed district maps;
B) Conduct public outreach, including to non-English speaking communities, to explain the districting process and to encourage public participation; C) Before drawing a draft map or maps of the proposed district boundaries, hold at least two (2) public hearings at which the public is invited to provide input regarding the composition of the districts and to consider district boundaries as provided in Elections Code Section 10010; D) After drawing a draft map or maps, publish the draft map(s) and the potential sequence of the district elections and hold at least two (2) public hearings at which the public is invited to provide input regarding the content of the draft map or maps and the proposed sequence of elections; and E) Adopt an ordinance establishing district elections, including the adoption of a district boundary map and the sequence of the district elections.

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SR-21-295
The following is a tentative timeline for consideration and implementation of a "district-based" election method.

Date Event
November 1, 2021 City received demand letter.

December 8, 2021 Adoption of Resolution of Intention to Transition to By District Elections.

February 1, 2022 Public hearing to give background on CVRA, introduce mapping tools and information on process.

February 15, 2022 Public hearing to give background on CVRA, introduce mapping tools and information on process.

March 1, 2022 First public hearing where maps can be drawn.

April 5, 2022 Second public hearing to confirm maps and sequencing.

June 7, 2022 Introduction and first reading of Ordinance.

June 21, 2022 Second reading and adoption of Ordinance.

FISCAL IMPACT:

The estimated cost for demographer and public outreach services is between $50-100k. The City Clerk's Office is in the process of obtaining quotes for said services.

The annual budget will be adjusted to accommodate this additional expenditure and will be included in the Mid-Year Budget Adjustments.

ATTACHMENTS:

Exhibit 1 - CVRA Resolution Establishing Intent to Transition to Districts Exhibit 2 - CVRA Demand Letter February 1, 2021

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SR-22-039
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: February 15, 2022
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Transition From At-Large to By-District Elections (Public Hearing No. 1) RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony;
7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Conclude the first Public Hearing receiving public testimony as part of the administrative record.

BACKGROUND:

On November 1, 2021, the City received a certified letter (Exhibit 1) from attorney Kevin I. Shenkman of the law firm Shenkman & Hughes, on behalf of his client, the Southwest Voter Registration Project, asserting that the City's at-large election system may violate the CVRA and threatening litigation if the City does not voluntarily transition to a district-based election system for electing its City Council.

On December 8, 2021, the City Council adopted Resolution No. 2021-071 (Exhibit 2) declaring its intent to transition from at-large to by-district elections, establishing the City’s compliance with Elections Code Section 10010, and a step-by-step process for the transition, which requires significant public participation.

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SR-22-039
DISCUSSION:

Prior to the City's consideration and approval of an ordinance establishing boundaries for a by-district election system, Elections Code Section 10010 outlines procedural rules and requires all of the following steps:

In accordance with the above, the timeline of events and implementation of a "district-based" election method is as follows:

Date Event
November 1, 2021 City received demand letter.

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SR-22-039
Date Event
December 8, 2021 Adoption of Resolution of Intention to Transition to By District Elections.

February 15, 2022
Public Hearing No. 1 (Pre-Draft Map)
Summary of District Formation/Redistricting Law, Criteria, Process, and 2020 Census
March 1, 2022 Public Hearing No. 2 (Pre-Draft Map)
March 8, 2022 Draft Map(s) Published on City Website
March 15, 2022 Public Hearing No. 3 (Pre-Final Map)
Presentation and Adoption of DRAFT District Boundaries Map April 5, 2022/TBD
Public Hearing No. 4
Presentation and Adoption of FINAL District Boundaries Map (First Reading of Ordinance)
April 19, 2022/TBD Adoption of FINAL District Boundaries Map (Second Reading of Ordinance)
FISCAL IMPACT:

None.

ATTACHMENTS:

Exhibit 1 - Council District Formation Process FAQ
Exhibit 2 - District Formation Presentation
Exhibit 3 - Resolution 2021-071 Declaring Intent to Transition to By-District Elections Exhibit 4 - Staff Report from December 8, 2021
Exhibit 5 - CVRA Demand Letter February 1, 2021

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SR-22-046
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 1, 2022
Department: Police Department
Prepared by: Christina Newsom, Compliance Manager
Subject: An Ordinance Amending Chapter 8.16 (Shopping and Laundry Carts) of Title 8 (Health and Safety) of the Desert Hot Springs Municipal Code to Enhance Regulations for the Containment and Retrieval of Shopping Carts RECOMMENDATION:

BACKGROUND:

Staff is proposing amendments to the Desert Hot Springs Municipal Code (DHSMC) that would address issues concerning shopping cart containment, retrieval and abatement in the city. Shopping carts serve as a convenience to customers while shopping for merchandise. However, carts are being used to transport merchandise and other items to off-site destinations resulting in abandoned carts throughout the City. This issue has become a nuisance resulting in numerous abandoned shopping carts, blight and deterioration, all of which are concerning in the City.

DISCUSSION:

Due to the increase in abandoned carts in the City, Staff has identified that the current municipal code regulations for shopping carts provide too much discretion with respect to the type of containment system a cart owner could utilize to ensure carts are not taken offsite. Additionally, the current regulations are not effective in encouraging owners of shopping carts to actively seek out and retrieve abandoned, off-site shopping carts.

The proposed amendment will require that every cart owner shall implement, operate, and maintain an on-site cart containment plan. The cart owner shall implement the following measures in the on-site cart containment plan:
• The installation and maintenance of electronic or other disabling devices on all carts which prevent them from being removed from the business premises by locking the wheels or otherwise preventing the movement of the carts.

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SR-22-046
• Cart owners shall conduct regular maintenance to ensure disabling devices are working properly. If at any time, a cart owner determines the disabling device installed on a cart is not working properly, the cart shall be pulled from circulation until it is repaired. The cart owner shall inspect, test, and repair all abandoned carts returned to the owner prior to making the returned carts available for use
• Cart owners shall secure and continuously maintain a qualified cart retrieval service to retrieve carts which have been removed from their business premises. The qualified cart retrieval service shall respond to complaints from the public or notifications from the City in a manner which results in the retrieval of carts within 24 hours of receiving the notification. Additionally, qualified cart retrieval services shall actively locate removed carts within a one-mile radius of the business premises at least once per week. The qualified cart retrieval service shall not place any limits on daily loads or days per week to retrieve carts within the City.

Further, the amended ordinance will include a new section, 8.16.065 Prohibited Conduct, that provides that it shall be unlawful to be in possession of a cart that has been removed from a business premises or parking area of a cart owner unless it is in the process of being immediately returned to the owner or business premises.

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

Exempt as per the Ordinance.

ATTACHMENTS:

Exhibit 1 - Shopping Carts Ordinance

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ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF DESERT HOT SPRINGS,
CALIFORNIA, AMENDING CHAPTER 8.16
(SHOPPING AND LAUNDRY CARTS) OF
TITLE 8 (HEALTH AND SAFETY) OF THE

DESERT HOT SPRINGS MUNICIPAL CODE

TO ENHANCE REGULATIONS FOR THE

CONTAINMENT AND RETRIEVAL OF

SHOPPING CARTS
WHEREAS, the City of Desert Hot Springs (“City”) is
a charter city organized pursuant to Article XI of the
California Constitution; and
WHEREAS, California Business and Professions
Code sections 22435 through 22435.13 contains regulations for the identification, removal, impoundment, and retrieval of shopping carts; and
WHEREAS, California law does not invalidate local
ordinances regulating shopping carts or laundry carts,
provided such ordinances do not conflict with California law; and
WHEREAS, currently, Chapter 8.16 of the Desert Hot
Springs Municipal Code supplements State law regulations regarding shopping carts and laundry carts, including
requiring owners to develop a cart containment program and hiring a qualified cart retrieval service; and
WHEREAS, the City Council finds that despite
existing regulations, shopping carts continue to be unlawfully removed from business premises and dumped onto public
and private properties; and
WHEREAS, the City Council finds that the
proliferation of wrecked, dismantled, or abandoned shopping and laundry carts, or parts thereof, on private or public property is a public nuisance; and
WHEREAS, the City Council finds that enhancing
regulations for cart containment and retrieval is in the best interest of the public health, safety and welfare of the residents of the City.

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NOW, THEREFORE, BE IT ORDAINED by the City
Council of the City of Desert Hot Springs as follows:

Section 1. RECITALS
That the foregoing recitals are true and correct and
are herein adopted by this reference.

Section 2. AMENDMENT OF CHAPTER

8.16 (“SHOPPING AND
LAUNDRY CARTS”) OF TITLE 8
(“HEALTH AND SAFETY”) OF

THE DESERT HOT SPRINGS

MUNICIPAL CODE
Chapter 8.16 (“Shopping and Laundry Carts”) of Title
8 (“Health and Safety”) of the Desert Hot Springs Municipal Code is hereby amended to read in its entirety as follows:

8.16.010 Purpose.

This chapter is not intended as the exclusive
regulation of shopping carts within the City. Rather, the purpose of this chapter is to supplement any applicable state law, including California Business and Professions Code, Article 1, Chapter 19, of Division 8 (commencing with
Section 22435, as may be amended), by providing special procedures for the abatement as public nuisances of certain shopping and laundry carts.

8.16.020 Definitions.

For purposes of this chapter only, and unless the
context clearly requires a different meaning, the words, terms and phrases set forth in this section are defined as follows:
“Abandoned cart” means any cart that has been
removed from the business premises and which is left
unattended or discarded upon any public or private
property other than the premises regardless of whether
the cart was removed with permission from the owner.

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“Business premises” means the interior of a cart
owner’s commercial establishment, adjacent walkways, any loading area, and the parking area, as defined herein.
“Cart” means a shopping cart or laundry cart, as
defined herein.
“Cart identification sign” means a sign or engraved
surface which is permanently affixed to a shopping cart containing all of the information specified in Section

8.16.060(C) of this chapter.
“Cart owner” means the owner or operator of a
commercial establishment which provides shopping carts or laundry carts to customers or to the public. for use by its customers for the purpose of transporting goods of
any kind.
“Cart removal warning” means a placard, sign or
painted text which meets the requirements of Section

8.16.060(A) of this chapter.
“Derelict cart” means any shopping or laundry
cart remaining unattended and/or deserted on public or
private property under such circumstances as would
lead a reasonable person to conclude that the cart was
no longer under the control or supervision of its owner or lawful possessor.
“Enforcement agency” means the City
department in which the enforcement officer is
employed.
“Enforcement officer” means any officer or
employee of the City designated with the authority to
enforce the applicable provisions of the Desert Hot
Springs Municipal Code.
“Individual cart identification number” means a
number unique to each cart owned or provided by a cart
owner.
“Laundry cart” means a basket which is mounted on
wheels and used in a coin-operated laundry or dry cleaning establishment by a customer or an attendant of the

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establishment for the purpose of transporting fabrics and the supplies necessary to process them.
“Nuisance” cart means any shopping or laundry
cart that constitutes a public nuisance under this
chapter.
“On-site cart containment program” means one
or more of the following measures:

1. Disabling devices on all shopping carts which
prevent them from being removed from the business
premises by locking the wheels or otherwise preventing
the movement of the carts.

2. An on-site security guard to deter customers who
attempt to remove carts from the business premises.

3. Bollards and chains around the business
premises to prevent cart removal, if permitted by the
Fire Marshal.

4. Obtaining a security deposit from customers for
the on-site use of shopping carts.

5. The rental or sale of utility carts that can be
temporarily or permanently used for the transport of
goods.

6. Any other measure approved by the City Manager
or his or her designee as a means to contain carts on
business premises.
“Parking area” means a parking lot or other property
provided by a retailer for use by a customer for parking an automobile or other vehicle. The parking area of a retail establishment located in a multistore complex or shopping center shall include the entire parking area used by the complex or center.
“Physical containment system” means one of the
following, as approved by the City Manager or his or her designee:

1. Disabling devices on all shopping carts which
prevent them from being removed from the business

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premises by locking the wheels or otherwise preventing
the movement of the carts.

2. Any other system of equipment approved by the
City Manager or his or her designee which physically
contains carts on premises.
“Qualified cart retrieval service” means a commercial
service, operated by a third party and paid by a cart owner to retrieve and return shopping carts. The City Manager or his or her designee shall develop minimal service
standards by which a cart retrieval service may be
designated as a qualified cart retrieval service and
maintain a list of all such services.
“Removed cart” means a cart which is removed
from the business premises by any person without the
written permission or consent of the cart owner.
“Shopping cart” means a basket which is mounted on
wheels or a similar device provided by the operator of a commercial establishment for the use of customers for the purpose of transporting goods of any kind. (Business and Professions Code, Section 22435.10) A shopping cart sold by a commercial establishment to a retail customer for that customer’s personal use is not a shopping cart for the
purposes of this chapter.

8.16.030 Findings—Declaration of nuisance.

The City Council finds and declares as follows:

The presence of wrecked, dismantled, or abandoned
derelict shopping and laundry carts, or parts thereof, on private or public property is found to create a condition tending to reduce the value of private property, to promote blight and deterioration, to invite plundering, interfere with pedestrian and vehicular traffic, to constitute an attractive nuisance creating a hazard to the health and safety of
minors, to create a harborage for rodents and insects, and to be injurious to health, safety and general welfare. The presence of wrecked, dismantled, or abandoned derelict
shopping or laundry carts, or parts thereof, on private or public property, except as expressly hereinafter permitted, is

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declared a public nuisance which may be abated as such in accordance with the provision of this chapter.

8.16.040 When chapter not applicable.

This chapter shall not apply to:

A. A shopping or laundry cart, or parts thereof,
which is completely enclosed within a building in a lawful manner where it is not visible from the street or other public or private property; or
B. A shopping or laundry cart, or parts thereof,
which is stored in a lawful manner on private property in connection with the business of and licensed retail consumer goods vendor when such storage or parking is necessary to the operation of a lawfully conducted business or
commercial enterprise; or
C. A shopping or laundry cart, or parts thereof,
which is stored in a lawful manner on private property in connection with the business of a licensed dismantler or junk dealer when such storage is necessary to the operation of a lawfully conducted business or commercial enterprise.

8.16.050 Administration and enforcement authority.

Except as otherwise provided herein, the provisions
of this chapter shall be administered and enforced by the City Manager or his or her designee. In the enforcement of this chapter, the City Manager or his or her designee, may enter upon private or public property, in a manner consistent with the United States and California Constitutions, to examine a shopping or laundry cart, or parts thereof, or obtain information as to the identity of a shopping or
laundry cart and to remove, or cause the removal of, a
shopping or laundry cart, or parts thereof, which is
declared to be a nuisance pursuant to this chapter.

8.16.060 Identification of carts—Notice.

A. Every cart owner shall post and maintain cart
removal warnings which meet all of the following minimum specifications:

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1. Meet or exceed 18 inches in width and 24
inches in height.

2. Using block lettering not less than one-half
inch in width and two inches in height, contain a statement in two or more languages to the effect that unauthorized
removal of a shopping cart from the business premises, or possession of a shopping cart in a location other than on the business premises, is a violation of state law and City ordinance.

3. List a local or toll-free telephone number for
cart retrieval.

4. Be affixed to an interior wall of the building or
otherwise permanently and prominently displayed within two feet of all customer entrances and exits.

B. Cart removal warnings on the exterior of the
building are not considered “signs” for the purpose of
calculating any maximum allowable signage in the City.

C. Each shopping cart owned or used within the
City shall have, permanently affixed and easily visible, a cart identification sign or engraved surface which includes all of the following information: the name of the cart owner, the telephone number of the cart owner and/or commercial
establishment to which the cart belongs, an address for returning the cart to the owner or business premises,
the individual cart identification number, a valid toll-free phone number for cart retrieval, the procedure (if any) to be followed to obtain permission to remove the cart from the business premises, and a notice to the public that
unauthorized removal of the cart from the business premises is a violation of state law and City ordinance.

D. It shall be the responsibility of each cart owner
to comply with subsections A and C of this section, and to continuously maintain, or cause to be maintained, the cart identification sign so that all of the required information is accurate and clearly legible.

8.16.065 Prohibited Conduct

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A. It shall be unlawful to either temporarily or
permanently remove a cart from the business premises
or parking area of a cart owner without the express prior written approval of the owner or designee. Written
approval shall be for a period not to exceed 72 hours.

B. It shall be unlawful to be in possession of a
cart that has been removed from a business premises or
parking area of a cart owner unless it is in the process of being immediately returned to the owner or business
premises.

C. This section shall not apply to carts that are
removed for lawful purposes, such as repair or
maintenance.

8.16.070 Nuisance cart abatement by the City.

Mandatory cart containment and retrieval.

A. Purpose. The purposes of this chapter are:

1. To reduce neighborhood nuisance and blight
caused by abandoned shopping carts in the public
rights-of way;

2. To protect public health and public safety;

3. To encourage shopping cart owners to contain
their carts on their respective business; and

4. To balance the rights and interests of those
engaged in commercial activities requiring shopping
carts with the rights and interests of those who do not want to be disturbed by such activities on private and
public property.

A. B. Cart Containment Plan System—Required.

1. Every cart owner shall implement, operate,
and maintain an on-site cart containment program plan.

The cart owner shall implement, operate, and maintain
the following measures in the on-site cart containment
plan:

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a. Install and maintain electronic or other
disabling devices on all carts which prevent them from
being removed from the business premises by locking
the wheels or otherwise preventing the movement of the
carts.
b. Install and maintain physical measures
to prevent the removal of carts from the business
premises. These measures may include physical
barriers and security guards to deter unlawful removal
of carts from the business premises. All carts shall be securely locked and stored at all times while the
business is closed.
c. Conduct ongoing employee training to
educate new and existing employees about procedures
to prevent cart removal, including the operation of the on-site cart containment plan.
d. Secure and continuously maintain a
qualified cart retrieval service to retrieve carts which have been removed from their business premises. The
qualified cart retrieval service shall respond to
complaints from the public or notifications from the City in a manner which results in the retrieval of carts within 24 hours of receiving the notification. Additionally,
qualified cart retrieval services shall actively locate removed carts within a one-mile radius of the business
premises at least once per week. The qualified cart
retrieval service shall not place any limits on daily loads or days per week to retrieve carts within the City.

2. Each cart owner must contain all shopping
carts on the business premises at all times. All carts must be accounted for at the end of each business day.

3. Cart owners shall conduct regular
maintenance to ensure disabling devices are working
properly. If at any time, a cart owner determines the
disabling device installed on a cart is not working
properly, the cart shall be pulled from circulation until it is repaired. The cart owner shall inspect, test, and repair all abandoned carts returned to the owner prior to
making the returned carts available for use.

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4. A cart that does not have an electronic or other
disabling device shall not be in circulation unless and until such device is added to the cart.

B. On-site cart containment plan review. The
review of on-site cart containment plans shall be
conducted pursuant to this subsection.

1. Existing cart owners must develop and submit
an on-site cart containment plan within 60 days from the date of the City notice stating that such a plan is
required pursuant to this chapter.

2. New cart owners or cart owners who have
relocated must submit an on-site cart containment plan
at the time of applying for a business license or
certificate of occupancy. A cart owner applying for a
renewed license or certificate, but which did not
previously submit an on-site cart containment plan,
shall submit such plan upon application for renewal.

3. Two or more cart owners located within the
same shopping or retail center or sharing a common
parking area may collaborate and submit a single onsite cart containment plan.

4. At the time a cart owner submits an on-site
cart containment plan, the cart owner shall pay a fee for the review and administration of the plan as set forth by resolution of the City Council.

5. The City Manager or designee shall review onsite cart containment plans and may approve, deny, or require modifications. Once a plan is approved, the cart owner shall have thirty (30) days to begin
implementation. Cart owners may appeal a denial of an
on-site cart containment plan within 14 calendar days.

The applicable provisions of chapter 4.36 of this code
shall govern the proceedings of such an appeal.

3. Any instance in which a shopping cart owned
or provided by a cart owner is found off of the business premises shall be considered a violation by the cart
owner of subsection (B)(2) of this section.

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a. For each violation of subsection (B)(2) of this
section, a civil fine pursuant to Title 4 (Code
Enforcement), Section 4.28.070 (Infraction penalties) of the City’s municipal code shall be assessed by means of an administrative citation issued by an enforcement
officer and shall be payable directly to the City as
follows:
b. Fines shall be assessed for up to $100 for a first
violation; up to $200 for a second violation of this code section within a 12-month period commencing upon the
date of the first violation; and up to $500 for a third violation within a 12-month period commencing upon
the date of the first violation. For purposes of this
section, a violation includes all of a cart owner’s
shopping carts found off of the business premises in a
one-day, 24-hour period. (See Title 4, Section 4.28.070, Infraction penalties, of the City’s municipal code, Ord. 1998-03, adopted 11-17-98)

4. Following the issuance of more than 10
administrative citations to the same cart owner within a 30-day period, in addition to the administrative penalty set forth in this chapter, subsequent violations by that cart owner shall be referred by the enforcement agency
for criminal prosecution.

C. Employee Training—Cart Removal
Prevention. Each cart owner shall conduct ongoing
employee training to educate new and existing
employees about procedures to prevent cart removal,
including the operation of the cart containment system.

D. Cart Removal from Business Premises—
Written Permission Required. No person shall be
deemed to be authorized to remove a cart unless he or
she possesses written authorization from the cart
owner. This section shall not apply the possession of a shopping cart removed from the business premises at
the direction of the cart owner for the purposes of repair or maintenance.

E. Physical Containment System. A cart owner will
be required to install a physical containment system to the satisfaction of the City Manager or his or her
designee and the city prosecutor within 90 days of the

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effective date of the ordinance codified in this chapter; except that cart owners will not be subject to
administrative citations as provided for herein within
180 days of the effective date of the ordinance codified in this chapter.

F. Retrieval. All shopping cart owners shall
secure and continuously maintain a qualified cart
retrieval service to retrieve shopping carts which have been removed from their business premises, and
provide evidence thereof, to the City Manager or his or her designee upon request.

G. Regulatory Fee Authorized. A regulatory fee
shall be established to enforce this regulation and to
fairly apportion the cost of mitigating the negative
effects of off-site shopping carts. A business which
installs a physical containment system to the
satisfaction of the director of planning and building, or which does not provide any shopping carts to its
customers, shall be exempted from this fee.

An administrative citation subject to this chapter
shall be issued on a form approved by the City Manager
or his or her designee, and may be served upon by mail
to any cart owner by an enforcement officer in the
following manner:

1. The administrative citation or duplicate thereof
shall be mailed to the cart owner(s); and

2. A proof of service of the notice shall be made by
declaration of the enforcement officer effecting the
service.

H. Contents of Notice. Each administrative citation
issued pursuant to this chapter shall contain the
following information:

1. The date of service of the citation and the date,
time, address or description of the location where the
violation(s) was observed;

2. The code section(s) and condition(s) violated and
a description of the violation(s);

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3. A photographic image depicting the cart at the
location of the violation(s);

4. The amount of the fine for the violation(s);

5. An explanation of how the fine shall be paid and
the fine payment due date;

6. Notice of the right to appeal the citation, the time within which the citation may be appealed and the place to obtain a request for hearing form to appeal the
administrative citation; and

7. The name and signature of the enforcement
officer.

I. Satisfaction of Administrative Citation. Upon
service of an administrative citation issued pursuant to this chapter, the cart owner shall do the following:

1. Pay the fine no later than 30 days from the date
of issuance of the citation as specified on the
administrative citation. Payment of a fine shall not bar further enforcement action by the City. Late charges
shall be imposed for fine payments made after the fine
payment due date. The late charge shall be calculated at a rate of 25 percent of the fine, and will be imposed in addition to any outstanding fine.

2. Failure of the cart owner(s) to pay the civil fine
and any accrued late penalties in a timely manner may
result in the imposition of a special assessment and/or lien against the real property on the business premises, and/or filing of an action with the small claims court for recovery of the fine and any late penalty. The only issue to be adjudicated by the small claims court shall be
whether or not the fines and possible late fees were
paid. A cart owner may only obtain judicial review of the validity of the citation by first requesting and
participating in an administrative appeal hearing before a hearing officer. In the small claims court action, the City may also recover its costs, according to proof.

3. The City may also refuse to issue, extend, or
renew to any cart owner who has unpaid delinquent
fines, interest, penalties, liens, or assessments, any City

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permit, license, entitlement, or other City approval
pertaining to the business premises that is the subject of the fine and administrative citation.

4. Any permit, license, entitlement, or land use
approval issued by the City may be subject to
suspension or revocation of the permit, license,
entitlement, or land use approval in accordance with the procedures set forth in the respective City municipal
code if any unpaid fine, interest or penalties remain
delinquent for a period of more than 30 days.

J. Appeal of Administrative Citation.

1. Any recipient of an administrative citation issued
pursuant to this chapter may appeal said citation by
making a written request for hearing form from the
enforcement agency designated on the citation, and
returning it to said City agency within 30 calendar days from the date the administrative citation was served or deemed to have been served, together with a deposit in
the total amount of the fine.

2. A failure to file a timely appeal of the
administrative citation shall be deemed a waiver of the right to appeal and to seek judicial review.

3. The administrative appeal hearing shall be set for
a date not sooner than 15 calendar, and not more than
60 calendar days from the date the request for hearing is completed and submitted in accordance with the
provisions of this chapter. The cart owner requesting
the hearing shall be notified in writing of the time and place set for the hearing at least 10 calendar days prior to the date of the hearing.

4. The hearing provided for in this chapter shall be
conducted by a Hearing Officer or Hearing Body
appointed by the City Manager or his or her authorized
designee.

5. The Hearing Officer/Body shall only consider
evidence that is relevant to whether the appellant is the bona fide cart owner, and whether appellant created,
committed, or maintained the violation(s). Courtroom
rules of evidence shall not apply. Relevant hearsay

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evidence and written reports may be admitted whether
or not the speaker or author is present to testify, if the Hearing Officer/Body determines that such evidence is
reliable. Admission of evidence and the conduct of the
hearing shall be controlled by the Hearing Officer/Body in accordance with the fundamentals of due process.

The Hearing Officer/Body may set reasonable limits on
the length of the hearing, and shall allow the appellant at least as much time to present his or her case as is
allowed the City.

6. The appellant contesting the administrative
citation shall be given the opportunity to testify and
present witnesses and evidence concerning the citation.

The City’s case shall be presented by any person
designated by the City Manager. The appellant and City
may be represented by counsel.

7. The failure of the appellant to appear at the
hearing shall constitute a forfeiture of the fine and a failure to exhaust administrative remedies.

8. The administrative citation and any additional
documents prepared by the City in connection with the
violation(s) may be submitted and shall constitute prima facie evidence of the respective facts contained in those documents.

9. If the enforcement officer or his or her designee
submits any additional documents concerning the
administrative citation to the Hearing Officer for
consideration at the hearing, then, whenever possible, a copy of such document(s) shall be served by mail on the appellant at least five calendar days prior to the date of the hearing.

10. The Hearing Officer/Body may continue the
hearing or request additional information from the
enforcement officer, his or her designee or the appellant prior to issuing a written decision.

11. After considering all of the testimony and
evidence submitted at the hearing, the Hearing
Officer/Body shall issue a written decision within 15
business days of the hearing. The decision of the
Hearing Officer shall be final.

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12. If the Hearing Officer/Body denies the appeal,
then the deposit shall be retained by the City.

13. If the Hearing Officer/Body grants the appeal,
then the City shall refund the deposit within 30 business days from the date of the final written decision.

14. The Hearing Officer/Body shall serve the
appellant and the City with a copy of the written
decision.

K. Dismissal of Citation. The Enforcement Officer,
with the approval of the director of the respective
enforcement agency, may dismiss an administrative
citation issued pursuant to this chapter at any time if it is determined to have been issued in error, in which
event any deposit will be refunded.

L. Right to Judicial Review. Either the City or the
appellant aggrieved by a decision of a Hearing
Officer/Body on an administrative citation issued
pursuant to this chapter, may obtain review of the
decision by filing a petition for review with the County Superior Court in accordance with the time lines and
provisions as set forth in California Government Code
Section 53069.4(b). Said procedure shall be available for all judicial review under this chapter, notwithstanding that the term or condition being enforced pursuant to
this chapter may not be a matter covered by Section
53069.4(a). Judicial review of a citation shall not be
available unless all administrative remedies have been
exhausted as provided in this chapter.

M. Recovery of Abatement Costs. The
administrative citation process described in this chapter does not preclude the City from recovering any other
code violation or nuisance abatement costs incurred by
the City in performing its code enforcement efforts.

N. City Powers not Limited by this Chapter.

Nothing in this section is intended to limit the ability of the City to remove or dispose of any cart to which a cart identification sign is not attached, or to remove or
dispose of any cart which impedes the provision of
emergency services, or which is an immediate threat to

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public health and safety, to the full extent permitted by state law.

O. Additional Nonadministrative Penalty. The
procedures established in this chapter shall be in
addition to any criminal, civil or other legal remedy
established by law for violation of the sections defined in this chapter of the municipal code.

8.16.075 Impoundment procedures.

A. Pursuant to Business and Professions Code
Section 22435.7(b), as may be amended, the City
Manager or designee may provide notice to the cart
owner of any abandoned or removed carts that has been
located within the City. If three (3) business days after such notice is given the cart has not been retrieved by the owner or his or her agent, the cart may be
impounded by the City. The City may recover the actual
costs of retrieving the cart and fines against the cart owner. A cart impounded pursuant to this subsection
that is not reclaimed within thirty (30) days of the
owner’s receipt of the notice provided for herein shall be sold or otherwise disposed of by the city.

B. Pursuant to Business and Professions Code
Section 22435.7(i), as may be amended, the City
Manager or designee may immediately impound any
abandoned or removed cart located within the City, and
give the cart owner notice that the cart has been
impounded within twenty-four hours of the
impoundment. Any cart impounded pursuant to this
subsection that is reclaimed within three (3) business
days following the date of notice to the cart owner shall be released and surrendered to the owner or his or her
agent at no charge whatsoever. Any cart reclaimed
within the three (3) business day period shall not be
deemed an occurrence or violation for the purposes of
this chapter. Where a cart owner fails to reclaim a cart, the City may recover the actual costs of retrieving the cart and fines against the owner commencing on the
fourth business day following the date of the notice. Any cart not reclaimed within thirty (30) days of the actual notice provided to the owner of the cart shall be sold or otherwise disposed of by the City.

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8.16.080 Other pPenalties.

A. Any person who violates any provision of this
chapter for which no penalty is otherwise provided shall be guilty of a misdemeanor.

B. The owner, occupant, or agent of any lot or
premises within the City who permits or otherwise
allows the existence of a public nuisance upon any lot
or premises owned, occupied or controlled by him or
her, shall be guilty of a misdemeanor.

B. Except as to subsection F, a violation of any
provision of this chapter shall constitute a public
nuisance and may be abated according to the
provisions of this code or by any other means provided
by law.

C. The remedies set forth in this chapter shall be
cumulative and in addition to any and all other
remedies, civil, equitable or criminal, afforded to the City under the law.

D. A separate offense occurs for each day a
violation of, or failure to comply with, any provision of this chapter is committed, continued, permitted,
maintained, or allowed to be continued.

E. The failure of a cart owner to submit,
establish, or maintain a cart containment plan as
required by this chapter shall subject the owner to a
civil penalty of up to one thousand dollars, plus an
additional penalty of fifty dollars for each day of
noncompliance.

F. Fines. Pursuant to Business and Professions
Code Section 22435.7(f), a fine in the amount of fifty
($50) dollars is hereby imposed upon each cart owner of a cart for each occurrence in excess of three during a
specified six-month period for failure to retrieve carts in accordance with this chapter. An occurrence includes
all shopping carts impounded in accordance with this
chapter in a one-day period. This subsection does not
apply to and does not limit or prohibit any other fee, fine

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or penalty that the City may charge for violation of this chapter.

Section 3. CEQA
This Ordinance is exempt from the requirements of the
California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines because there is no possibility that this Ordinance or its implementation would have a significant negative effect on the environment. (14 Cal. Code Regs. § 15061(b)(3).) City staff shall cause a Notice of Exemption to be filed as authorized by CEQA and the State CEQA
Guidelines.

Section 4. SEVERABILITY
That, should any provision, section, paragraph,
sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 5. REPEAL OF CONFLICTING

PROVISIONS
That all the provisions of the Municipal Code as
heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this ordinance are hereby repealed.

Section 6. AMENDING OF BAIL

SCHEDULE
That the City Attorney’s Office is hereby directed to
determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 7. EFFECTIVE DATE
That this ordinance shall be effective thirty days after the second reading of the ordinance.

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Section 8. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published
according to law.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK]

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PASSED AND ADOPTED by the City Council of the City of
Desert Hot Springs at a regular meeting held on the ___ day of ______, 2022 by the following vote:

Ayes:

Noes:

Abstain:

Absent:

ATTEST:
____________________________________
Jerryl Soriano, City Clerk
_______________________________
Scott Matas, Mayor
APPROVED AS TO FORM:
____________________________________
Jennifer A. Mizrahi, City Attorney

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SR-22-045
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 1, 2022
Department: Finance
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Mid-Year Budget Adjustments for the 2021-2022 Fiscal Year.

RECOMMENDATION:

Approve mid-year budget adjustments for the 2021-2022 Fiscal Year.

BACKGROUND:

During the regular course of business, adjustments to the budget become necessary as new information for more accurate estimates become available. Staff is able to make changes to the forecasted revenues based on new information that is received during the fiscal year. In addition, as actual changes in programs occur, such as salary and benefit costs change, changes in staff positions, and new or altered demands for contracted services, expenditure forecasts can be made more accurate. These adjustments allow for the City to continue daily operations, on-going repairs, maintenance, and improvements to the City’s public facilities and to provide appropriations for unanticipated expenses.

The City’s Finance Staff worked in cooperation with staff from other City departments to determine the changes in their needs for FY 2021-2022. The items presented here are the adjustments for FY2021-2022 for the City Council’s review. As to date, these adjustments reflect the changes in the two City’s bargaining unit agreements, other staffing changes, and vacant positions. City staff is also including changes for development related activities.

DISCUSSION:

Consolidated General Fund:

The Consolidated General Fund consists of three funds used to account for virtually all required services funded predominantly with discretionary revenue sources:

General Fund (Fund 001)
Emergency Reserve Fund (Fund 212)
Public Safety Fund (Fund 245)
The summary of the mid-year budget adjustments for FY2021-2022 in the Consolidated General Fund are as follows:

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SR-22-045
Consolidated General Fund FY2021-2022 Mid-Year Adjustments Change in Revenues $2,915,231 increase
Change in Expenses $1,018,180 increase
FY 2021-2022 Adopted Budget Use of Reserves ($1,791,351) FY 2021-2022 Amended Budget Surplus $105,700
During this fiscal year, the City has experienced increased tourism and development activity, which was not anticipated during the preparation of the budget for FY21-22. After seven months into the fiscal year, the City has received over 71% of its budgeted Transient Occupancy Tax (TOT) revenue. Since the highest revenue generating months for TOT for the City are January through March, it is expected the TOT revenue will exceed its FY2021-2022 budget estimate by $230,000. The City has been positively impacted by the increased activity in the housing market which affects the Property Transfer Tax. This revenue source has already exceeded the FY21-22 budget estimates and is expected to continue with an estimated increase of $100,000 for this fiscal year. With the increased activity in the housing market, the City is seeing more residential developments. The development type revenues, such as building permits and plan check fees are anticipated to be higher than the adopted budget estimates. Staff is recommending a $150,000 increase in the budget for building permits and a $400,000 increase in building plan check fees. The largest revenue increase will be the transfer of American Rescue Plan Act (ARPA) funds, which are being used to cover one-time expenses. The City Council approved to transfer over $1.9 in ARPA funds to cover the set-up costs for the new Dispatch Center and one-time COVID premium pay. Overall, the FY2021-2022 Mid-Year Budget Adjustments contain over $2.9 million in increased revenues.

The Mid-Year Budget adjustments for the Consolidated General Fund for FY2021-2022 include $1,018,180 in expenditure increases. The expenditure increases are a combination of sustainable, on-going operating expenses and some one-time expenses. The on-going operating expenses contain staffing changes which include changes to the City’s 2 bargaining unit MOU agreements. The one-time expenditures include over $230,000 in expenses addressing the Hyundae Hotel (fencing, long-term board ups to control access, security measures maintenance, and 24-hour security services); $60,000 for redistricting consulting services, $105,000 for the Police Department lobby remodel, $50,000 for upcoming code enforcement services along Palm Drive, and an additional $188,000 transfer to the City-wide LMD Fund for park, landscaping, and vandalism repairs.

There is also a $300,000 increase for plan check services (which is offset by the increased plan check fees).

For the adoption of the FY21-22 Budget, Council approved the use of $1,791,351 in General Fund reserves.

The use of these reserves was due to the one-time set up costs for the construction of the new dispatch center.

However, with the use of ARPA funds as well as other revenue increases for the FY21-22 Mid-Year Budget Adjustments, General Fund reserves will no longer be used and the FY2021-2022 Amended Budget is estimated to have a $105,700 surplus at the end of the fiscal year.

Restricted Funds:

Fire Facilities DIF Fund (101): - Increase revenue estimates by $23,975 for the actual amount of revenues received to date. Increase expenditure budget appropriations in the amount of $15,900 are due to increased costs for the Dispatch Center construction. The additional costs will be covered by additional revenues.

Streets/Traffic Signals/Bridges DIF (103): - Increase revenue estimates by $175,000 for the actual amount of revenue received to date. Increase expenditure budget appropriations in the amount of $113,246 for the North Indian Canyon Drive Widening Project. The additional costs will be covered by the additional revenues.

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SR-22-045
Law Enforcement DIF Fund (105): - Increase expenditure budget appropriations in the amount of $162,157 for additional construction costs of the Dispatch Center project. These costs will utilize monies already available in the fund.

Quimby Act Fund (111): - Increase revenue estimates by $680,000 for the actual amount of revenue received to date. Increase expenditure budget appropriations in the amount of $314,493 for various park design projects including the Corporation Yard Park design. These costs will be covered by the additional revenues.

State Gas Tax Fund (140): - Increase revenue estimates by $5,425 for a transfer in from the ARPA fund.

Increase expenditure budget appropriations in the amount of $26,528 for personnel costs. Of the increased costs, $21,103 are for changes in the MOU for employees allocated to that fund, which will be covered by monies already available in the fund. Another $5,425 in costs is for the one-time COVID premium payout which is covered by the transfer from the ARPA Fund.

Health & Wellness Fund (211): - Increase revenue estimates by $104,194 with a transfer from the General Fund.

Increase expenditure budget appropriations in the amount of $104,194 for the added costs of a receptionist and moving a part-time teacher to full-time at the recreation center. Other additional costs include equipment replacement and vandalism repair. These costs will be offset by an increase of the Transfer In from the General Fund.

Public Facilities CIP Fund (222): - Increase revenue estimates by $1,212,822 with a transfer from the City Debt Service Fund from the 2021 Bond proceeds. Increase expenditure budget appropriations in the amount of $1,212,822 for design, construction and equipment for the Police Annex Building, Fire Station 98 and Fire Station 37 projects.

American Rescue Plan Act Fund (230): – Increase revenue estimates by $3,454,116 for the first payment of the American Rescue Plan Act funds for COVID relief. Increase expenditure budget appropriations in the amount of $1,923,794 in Transfers Out. The Transfers Out consist of $1,786,456 for the Dispatch Center start-up costs and $138,338 for the one-time COVID premium pay. The increase in expenditures is offset by the grant revenues received.

County Service Area 152 Fund (250): - Increase expenditure budget appropriations by $15,000 for additional street sweeping services. The increase in expenditures will be covered by monies already available in the fund.

City Debt Service Fund (401): - Increase revenue estimates by $16,009,042 for increase in Utility User Tax revenue and proceeds from the issuance of the Series 2021 Bonds. Increase expenditure budget appropriations by $1,311,977 for the cost of issuance of the bonds and transfer to the Public Facilities CIP Fund for the new public safety projects.

City-wide Landscape/Lighting Maintenance District Fund (501): - Increase revenue estimates by $196,457 by transfers in from the General Fund and the ARPA Fund. Increase expenditure budget appropriations in the amount of $196,457 for changes in DSHEU MOU agreements, COVID premium pay, and to cover additional park repairs and landscaping services. These costs will be offset by an additional transfer of $188,319 from the General Fund and $8,138 from the ARPA Fund.

FISCAL IMPACT:

For FY 2021-2022, these adjustments will change the projected revenues and expenditures in the Consolidated General Fund to be as follows:

Consolidated General Fund FY2021-2022 Amended Budget
Revenues $ 31,594,068
Expenses 31,488,358

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SR-22-045
Estimated Surplus 105,700
Estimated Ending Fund Balance at 6/30/2022 $ 13,225,246 Fire Facilities DIF Fund (101): - The overall fiscal impact increases revenues by $23,975 and increases expenditures by $15,900.

Streets/Traffic Signals/Bridges DIF Fund (103): - The overall fiscal impact increases revenues by $175,000 and increases expenditures by $113,246.

Law Enforcement DIF Fund: - The overall fiscal impact increases expenditures by $162,157.

Quimby Act Fund (111): - The overall fiscal impact increases revenues by $680,000 and increases expenditures by $314,493.

State Gas Tax Fund (140):- - The overall fiscal impact increases revenues by $5,425 and expenditures by $21,103.

Health & Wellness Fund (211): – The overall fiscal impact increases revenues by $104,194 and increases expenditures by $104,194.

Public Facilities CIP Fund (222): - The overall fiscal impact increases revenues by $1,212,822 and expenditures by $1,212,822.

American Rescue Plan Act Fund (230): - The overall fiscal impact increases revenues by $3,454,116 and increases expenditures by $1,923,794.

County Service Area 152 Fund (250): - The overall fiscal impact increases expenditures by $15,000.

City Debt Service Fund (401): - The overall fiscal impact increases revenues by $16,009,042 and expenditures by $1,311,977
City-wide Landscape/Lighting Maintenance District Fund (501): – The overall fiscal impact increases revenues by $196,457 and increases expenditures by $196,457.

ATTACHMENTS:

FY21-22 Mid-Year Budget Adjustments

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FY 2021-2022 Mid-Year Budget Adjustments
3/1/2022
Consolidated General Fund Summary
General Fund Revenue changes 898,988 $
General Fund Expenditure changes 646,443 $
Net 252,545 $
Public Safety Fund Revenue changes 2,016,244 $
Public Safety Fund Expenditure changes 371,738 $
Net 1,644,506 $
Consoidated General Fund Net change 1,897,051 $
FY 2021-2022 Adopted Budged Use of Reserves (1,791,351) $ FY 2021-2022 Amended Budget Surplus 105,700 $
All Funds Detail
Account Amount Description
Revenues - General Fund
100-3105-3030-0000 Property Transfer Tax 100,000 $ By mid-January, already received $44,000 for 5 months of revenue 100-3111-3030-0000 Transient Occupancy Tax 230,000 $ After six months, over 55% of budgeted revenue received 100-3211-3030-0000 Building Permits 150,000 $ Increased based on year-to-date revenue received. 100-3213-3030-0000 Building Plan Check Fees 400,000 $ Increase in expected development activity 100-3999-3030-0000 Transfers In 18,988 $ Transfer from ARPA for COVID pay Total Revenue changes $ 898,988
Expenses - General Fund
City Manager:
100-4100-4112-0000 Salaries 49,211 $ Increase for promotion of Executive Program Director 100-4150-4112-0000 PERS 3,735 $ Increase for promotion of Executive Program Director 100-4160-4112-0000 Taxes 4,183 $ Increase for lobbyist agreement $3,000 a month for 12 months 100-4100-4112-0000 Salaries 3,383 $ Increase for promotion of Receptionist to Admin Asst I 100-4150-4112-0000 PERS 257 $ Increase for promotion of Receptionist to Admin Asst I 100-4160-4112-0000 Taxes 288 $ Increase for promotion of Receptionist to Admin Asst I 100-4100-4112-0000 Salaries 7,345 $ Increase for DHSEU MOU changes 100-4150-4112-0000 PERS 558 $ Increase for DHSEU MOU changes 100-4160-4112-0000 Taxes 624 $ Increase for DHSEU MOU changes 100-4100-4112-0000 Salaries 2,154 $ Increase for Non-Rep changes 100-4150-4112-0000 PERS 164 $ Increase for Non-Rep changes 100-4160-4112-0000 Taxes 183 $ Increase for Non-Rep changes 100-4100-4112-0000 Salaries 2,500 $ COVID Premium pay
100-4160-4112-0000 Taxes 213 $ COVID Premium pay
100-4100-4112-0000 Salaries 17,661 $ Increase for Program Management Analyst Position 100-4140-4112-0000 Employee Benefits 7,710 $ Increase for Program Management Analyst Position 100-4150-4112-0000 PERS 1,340 $ Increase for Program Management Analyst Position 100-4160-4112-0000 Taxes 1,501 $ Increase for Program Management Analyst Position 100-4320-4112-0000 Contract Services 20,000 $ Racially Polarizing Voting Analysis study 100-4320-4112-0000 Contract Services 10,000 $ 4th of July Celebration 100-4320-4112-0000 Contract Services 60,000 $ Consulting services for moving to district voting City Clerk:
100-4320-4113-0000 Contract Services (50,000) $ Reduce contract services due to postponing Prop 218 election Finance:
100-4100-4115-0000 Salaries 9,529 $ Promotion of Admin Svcs Director and Payroll Administrator 100-4150-4115-0000 PERS 824 $ Promotion of Admin Svcs Director and Payroll Administrator 100-4160-4115-0000 Taxes 810 $ Promotion of Admin Svcs Director and Payroll Administrator 100-4100-4115-0000 Salaries 11,161 $ Increase for DHSEU MOU changes 100-4150-4115-0000 PERS 1,565 $ Increase for DHSEU MOU changes 100-4160-4115-0000 Taxes 949 $ Increase for DHSEU MOU changes 100-4100-4115-0000 Salaries 1,848 $ Changing from Accounting Supervisor to Finance Manager position 100-4150-4115-0000 PERS 140 $ Changing from Accounting Supervisor to Finance Manager position 100-4160-4115-0000 Taxes 12 $ Changing from Accounting Supervisor to Finance Manager position 100-4115-4115-0000 Annual Leave Buyout 20,000 $ Increased buyout expenses 100-4320-4115-0000 Contract Services (70,000) $ Reduce contract services due to postponing Prop 218 election Human Resources
100-4100-4116-0000 Salaries (43,692) $ Savings for vacant HR Manager position (4 months) 100-4140-4116-0000 Employee Benefits (7,405) $ Savings for vacant HR Manager position (4 months) 100-4150-4116-0000 PERS (3,316) $ Savings for vacant HR Manager position (4 months) 100-4160-4116-0000 Taxes (4,142) $ Savings for vacant HR Manager position (4 months) 100-4100-4116-0000 Salaries 4,477 $ Increase for Non-Rep changes 100-4150-4116-0000 PERS 340 $ Increase for Non-Rep changes 100-4160-4116-0000 Taxes 381 $ Increase for Non-Rep changes 100-4320-4116-0000 Contract Services 46,400 $ Temp HR Consulting Services

Page 43 of 84 ends

FY 2021-2022 Mid-Year Budget Adjustments
3/1/2022
IT
100-4100-4117-0000 Salaries 1,519 $ Increase for Non-Rep changes 100-4150-4117-0000 PERS 213 $ Increase for Non-Rep changes 100-4160-4117-0000 Taxes 129 $ Increase for Non-Rep changes 100-4200-4117-0000 Utilities 10,000 $ Verizon increase
100-4235-4117-0000 Dues and Subscriptions 65,000 $ OpenGov financials software cloud services 100-4235-4117-0000 Dues and Subscriptions 2,000 $ Zoom video conference increase 100-4235-4117-0000 Dues and Subscriptions 5,000 $ Office 365 increase 100-4266 -4117-0000Supplies & Maintenance 38,000 $ HPE warranty renewal 100-4266 -4117-0000Supplies & Maintenance 30,000 $ Upgrade recreation center computers 100-4266 -4117-0000Supplies & Maintenance 3,650 $ Additional microphone and nameplate for council chamber 100-4266 -4117-0000Supplies & Maintenance 5,000 $ Recreation center gym side takeover 100-4266 -4117-0000Supplies & Maintenance 19,000 $ Warranty for servers 100-4320-4117-0000 Contract Services 5,000 $ GIS services Nondepartmental:
100-4999-4119-0000 Transfers Out 188,319 $ Transfer to Fund 501 for additional landscape repairs for parks and employee benefits 100-4999-4119-0000 Transfers Out 104,194 $ Transfer to Fund 211 for increases staffing 100-4999-4119-0000 Transfers Out (400,000) $ Transfer to Fund 222 for remaining City Hall construction items Public Works Admin:
100-4100-4141-0000 Salaries (34,681) $ Savings for vacant City Engineer position 100-4140-4141-0000 Employee Benefits (7,322) $ Savings for vacant City Engineer position 100-4150-4141-0000 PERS (3,000) $ Savings for vacant City Engineer position 100-4160-4141-0000 Taxes (3,539) $ Savings for vacant City Engineer position 100-4100-4141-0000 Salaries 10,856 $ Increase for DHSEU MOU changes 100-4150-4141-0000 PERS 540 $ Increase for DHSEU MOU changes 100-4160-4141-0000 Taxes 940 $ Increase for DHSEU MOU changes 100-4100-4141-0000 Salaries 5,000 $ COVID Premium pay
100-4160-4141-0000 Taxes 425 $ COVID Premium pay
Public Buildings:
100-4266-4142-0000 Supplies & Maintenance 215,000 $ Hyundae Hotel security and other services 100-4266-4142-0000 Supplies & Maintenance 28,927 $ City-wide cleanups 100-4266-4142-0000 Supplies & Maintenance 14,370 $ Storm cleanups 100-4266-4142-0000 Supplies & Maintenance 18,000 $ Long Canyon Trail work 100-4266-4142-0000 Supplies & Maintenance 9,500 $ Traffic signal repairs 100-4320-4142-0000 Contract Services 46,550 $ Post Office landscaping 100-4320-4142-0000 Contract Services 40,000 $ Little league field improvements Building & Safety:
100-4100-4161-0000 Salaries (137,773) $ Savings for vacant Building Official position (3 months) & Comm Dev Director (6 months) 100-4140-4161-0000 Employee Benefits (16,944) $ Savings for vacant Building Official position (3 months) & Comm Dev Director (6 months) 100-4150-4161-0000 PERS (17,149) $ Savings for vacant Building Official position (3 months) & Comm Dev Director (6 months) 100-4160-4161-0000 Taxes (13,523) $ Savings for vacant Building Official position (3 months) & Comm Dev Director (6 months) 100-4100-4161-0000 Salaries 24,794 $ Increase for DHSEU MOU changes 100-4150-4161-0000 PERS 1,882 $ Increase for DHSEU MOU changes 100-4160-4161-0000 Taxes 2,108 $ Increase for DHSEU MOU changes 100-4320-4161-0000 Contract Services - Building 300,000 $ Increase plan checks for increased development activity 100-4100-4161-0000 Salaries 7,500 $ COVID Premium pay
100-4160-4161-0000 Taxes 638 $ COVID Premium pay
Planning:
100-4100-4162-0000 Salaries (40,891) $ Savings for vacant Com Dev Director position (6 months) 100-4150-4162-0000 PERS (3,537) $ Savings for vacant Com Dev Director position (6 months) 100-4160-4162-0000 Taxes (4,424) $ Savings for vacant Com Dev Director position (6 months) 100-4100-4162-0000 Salaries 3,344 $ Increase for DHSEU MOU changes 100-4150-4162-0000 PERS 268 $ Increase for DHSEU MOU changes 100-4160-4162-0000 Taxes 284 $ Increase for DHSEU MOU changes 100-4100-4162-0000 Salaries 2,500 $ COVID Premium pay
100-4160-4162-0000 Taxes 213 $ COVID Premium pay
100-4101-4162-0000 Appointed Officials 5,000 $ Increase in stipend for commissions Engineering:
100-4100-4163-0000 Salaries (53,517) $ Savings for vacant City Engineer position (8 months) 100-4150-4163-0000 PERS (4,062) $ Savings for vacant City Engineer position (8 months) 100-4160-4163-0000 Taxes (5,593) $ Savings for vacant City Engineer position (8 months) 100-4100-4163-0000 Salaries 2,477 $ Increase for Non-Rep changes 100-4150-4163-0000 PERS 158 $ Increase for Non-Rep changes 100-4160-4163-0000 Taxes 211 $ Increase for Non-Rep changes 100-4320-4163-0000 Contract Services 50,000 $ Engineering consulting services while City Engineer position was vacant 100-4320-4163-0000 Contract Services 11,000 $ Traffic signal design/installs Total Expense changes $ 646,443

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FY 2021-2022 Mid-Year Budget Adjustments
3/1/2022
Net Budget change $ 252,545
Revenues - Public Safety Fund
245-3120-3030-0000 Prop 172 Sales Tax 15,000 $ Increase based on YTD received 245-3205-3030-0000 Utility Users Tax 30,000 $ Increase based on YTD received 245-3726-3030-0000 Reimbursements 80,000 $ Increase based on actual revenue 245-0000-3999 Transfers In 1,891,244 $ Transfer of Funds from 230 to 245 Total Revenue changes $ 2,016,244
Expenses - Publice Safety Fund
Patrol & Field:
245-4100-4223-0000 Salaries 335,725 $ Increase for POA MOU changes 245-4105-4223-0000 Overtime/Oncall 100,000 $ Increase for POA MOU changes 245-4105-4223-0000 Overtime/Oncall 9,746 $ Increase for Tour de Palm Springs 245-4115-4223-0000 Annual Leave Buyout 20,000 $ Increase for POA MOU changes 245-4150-4223-0000 PERS 59,821 $ Increase for POA MOU changes 245-4160-4223-0000 Taxes 28,537 $ Increase for POA MOU changes 245-4101-4223-0000 Appointed Officials 1,000 $ Increase in stipend for commissions 245-4100-4223-0000 Salaries 36,867 $ Increase for DHSEU MOU changes 245-4150-4223-0000 PERS 3,724 $ Increase for DHSEU MOU changes 245-4160-4223-0000 Taxes 3,134 $ Increase for DHSEU MOU changes 245-4100-4223-0000 Salaries 29,608 $ Increase for Non-Rep changes 245-4150-4223-0000 PERS 13,627 $ Increase for Non-Rep changes 245-4160-4223-0000 Taxes 5,994 $ Increase for Non-Rep changes 245-4100-4223-0000 Salaries 82,500 $ COVID Premium pay
245-4160-4223-0000 Taxes 7,013 $ COVID Premium pay
245-4230-4223-0000 Travel & Training 10,000 $ Basic Academy 245-4260-4223-0000 Vehicle Maintenance 20,000 $ Increase vehicle repairs 245-4266-4223-0000 Maintenace & Repairs 27,500 $ Flock Cameras 245-4266-4223-0000 Maintenace & Repairs 8,945 $ Detective copiers 245-4320-4223-0000 Contract Services 105,475 $ Police Department lobby remodel 245-4320-4223-0000 Contract Services 12,600 $ Air conditioner repair 245-4320-4223-0000 Contract Services 30,000 $ Additional investigations Code Compliance:
245-4100-4224-0000 Salaries 7,659 $ Increase for DHSEU MOU changes 245-4150-4224-0000 PERS 592 $ Increase for DHSEU MOU changes 245-4160-4224-0000 Taxes 651 $ Increase for DHSEU MOU changes 245-4100-4224-0000 Salaries 7,500 $ COVID Premium pay
245-4160-4224-0000 Taxes 638 $ COVID Premium pay
245-4230-4224-0000 Contract Services 23,745 $ Air conditioner repair 245-4230-4224-0000 Contract Services 50,000 $ Code Enforcement Services - Palm Drive 245-4230-4224-0000 Contract Services 16,000 $ Hyundae Hotel resident relocation Animal Control:
245-4100-4226-0000 Salaires 7,500 $ COVID Premium pay
245-4160-4226-0000 Taxes 638 $ COVID Premium pay
Dispatch Services:
245-4100-4229-0000 Salaries (450,000) $ Savings from delay in opening Dispatch Center 245-4105-4229-0000 Overtime/On-call (20,000) $ Savings from delay in opening Dispatch Center 245-4140-4229-0000 Employee Benefits (60,000) $ Savings from delay in opening Dispatch Center 245-4150-4229-0000 PERS (25,000) $ Savings from delay in opening Dispatch Center 245-4160-4229-0000 Taxes (35,000) $ Savings from delay in opening Dispatch Center 245-4170-4229-0000 WC/Liability Insurance (5,000) $ Savings from delay in opening Dispatch Center Fire Services:
245-4320-4231-0000 Contract Services (100,000) $ Savings from Fire Services contract due to increased taxes and delayed staffing enhancements Total Expense changes $ 371,738
Net Budget change $ 1,644,506
Grand Total change $ 1,897,051
FY 2021-2022 Adopted Budget Deficit $ -
Amended Budget Surplus(Deficit) $ 1,897,051
Revenues - Fire Facilities DIF
101-3230-3030-0000 - Development Fees 23,975 $ Increase revenues to actual amount received to date Expenses - Fire Facilities DIF
101-5020-5072-0000 Construction 15,900 $ Increase in Dispatch Center construction costs Revenues - Streets/Traffic Signals/Bridges
103-3231-3030-0000 - Development Fees 175,000 $ Increase revenues to actual amount received to date Expenses - Streets/Traffic Signals/Bridges

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FY 2021-2022 Mid-Year Budget Adjustments
3/1/2022
103-5020-5072-0000 Construction 113,246 $ North Indian Canyon Drive Widening Project Expenses - Law Enforcement DIF
105-5020-5072-0000 162,157 $ Increase in Dispatch Center construction costs Revenues - Quimby Act Fund
111-3233-3030-0000 Quimby Fees 680,000 $ Increase revenues to actual amount received to date Expenses - Quimby Act Fund
111-5005-5073-0000 Administration 23,297 $ Various Park Projects 111-5010-5073-0000 Design 291,196 $ Various Park Projects Revenues - Gas Tax
140-3999-3030-0000 Transfers In 5,425 $ Transfer from ARPA for premium pay Expenditures - Gas Tax
140-4100-43-71-0000 Salaries 17,224 $ Increase for DHSEU MOU changes 140-4150-4371-0000 PERS 2,415 $ Increase for DHSEU MOU changes 140-4160-4371-0000 Taxes 1,464 $ Increase for DHSEU MOU changes 140-4100-4371-0000 Salaires 5,000 $ COVID Premium pay
140-4160-4371-0000 Taxes 425 $ COVID Premium pay
Revenues - Health & Wellness Center
211-3999-3030-0000 Transfers In 104,194 $
Expenditures - Health & Wellness Center
211-4266-4453-0000 Supplies & Maintenance 10,000 $ Equipment replacement and vandalism repair 211-4100-4454-0000 Salaries 58,344 $ Increase for new receptionist and for a part-time teacher going full-time 211-4140-4454-0000 Employee Benefits 20,462 $ Increase for new receptionist and for a part-time teacher going full-time 211-4150-4454-0000 PERS 4,428 $ Increase for new receptionist and for a part-time teacher going full-time 211-4160-4454-0000 Taxes 4,959 $ Increase for new receptionist and for a part-time teacher going full-time 211-4320-4454-0000 Contract Services 6,000 $ Additional janitorial services after taking over the gym Revenues - Public Facilities Bond CIP Fund
222-3999-3030-0000 Transfers In 1,212,822 $ Transfer in from Debt Service Fund 2021 Bonds Expenditures - Public Facilities Bond CIP Fund
222-4320-5042-8002 Contract Svcs - PD Site Imprvs 30,000 $ Police Department Site Improvements project 222-5010-5042-8002 Design - PD Site Imprvs 368,605 $ Police Department Site Improvements project 222-5020-5042-8002 Construction - PD Site Imprvs 100,000 $ Police Department Site Improvements project 222-5030-5042-8002 Equipment - PD Site Imprvs 10,000 $ Police Department Site Improvements project 222-4320-5042-8003 Contract Svcs - PD Annex Bldg 30,000 $ Police Department Annex Building 222-5030-5042-8003 Equipment - PD Annex Bldg 10,000 $ Police Department Annex Building 222-5010-5042-8004 Design - Fire Station 98 449,327 $ Fire Station 98 design 222-4320-5042-8005 Contract Svcs - Fire Station 37 30,000 $ Fire Station 37 Improvements 222-5010-5042-8005 Design - Fire Station 37 174,890 $ Fire Station 37 Improvements 222-5030-5042-8005 Equipment - Fire Station 37 10,000 $ Fire Station 37 Improvements Revenues - American Recovery Act Fund
230-3551-3030-0000 Grants 3,454,116 $ COVID Recovery Funds - 1st payment Expenses - American Recovery Act Fund
230-4999-4119-0000 Transfers Out 1,785,456 $ Transfer of Funds from 230 to 245 230-4999-4119-0000 Transfers Out 138,338 $ Transfer for COIVD Premium pay Expenditures - County Service Area 152
250-4320-4363-0000 Contract Services 15,000 $ Increase in street sweeping services Revenues -City Debt Service Fund
401-3205-3030-0000 Utility Users Tax 200,000 $ Estimate increased based on year to date revenue 401-3990-3030-0000 Bond Proceeds 15,970,000 $ Proceeds from issuance of 2021 bonds 401-3991-3030-0000 Bond Original Issue Premium 239,042 $ Premium from issuance of 2021 bonds 401-3999-3030-0000 Transfers In (400,000) $ Reduced transfer from the General Fund Expenditures - City Debt Service Fund
401-4705-6082-0000 Interest Expense (200,000) $ Reduced interest expense due to delay in issuing bonds 401-4720-6015-0000 Cost of Issuance 299,155 $ Cost of issuance for 2021 Bonds 401-4999-6015-0000 Transfers Out 1,212,822 $ Transfer to Public Facilities CIP Fund Revenues - LLMD Citywide
501-3999-3030-0000 Transfers In 188,319 $ Transfer from Fund 100 for additional landscape repairs for parks and employee benefits 501-3999-3030-0000 Transfers In 8,138 $ Transfer from ARPA for COVID pay Expenses - LLMD Citywide

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FY 2021-2022 Mid-Year Budget Adjustments
3/1/2022
501-4100-4345-0000 Salaries 25,734 $ Increase for DHSEU MOU changes 501-4140-4345-0000 Employee Benefits 25,000 $ Health insurance increases 501-4150-4345-0000 PERS 1,947 $ Increase for DHSEU MOU changes 501-4160-4345-0000 Taxes 2,188 $ Increase for DHSEU MOU changes 501-4100-4345-0000 Salaries 7,500 $ COVID Premium pay
501-4160-4345-0000 Taxes 638 $ COVID Premium pay
501-4266-4345-0000 Supplies & Maintenance 100,000 $ Additional park repairs 501-4266-4347-0000 Supplies & Maintenance 28,450 $ Additional landscaping services 501-4320-4347-0000 Contract Services 5,000 $ Medial landscape lighting

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SR-22-047
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 1, 2022
Department: Finance
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Delegation of Investment Authority to the City Treasurer and adopt the Investment Policy for Fiscal Year 2022-2023
RECOMMENDATION:

DISCUSSION:

This Investment Policy helps ensure that the City follows best practices and safeguards the principal of City investments, as well as meeting the liquidity needs of the City.

The purpose of the attached Investment Policy (“Policy”) is to provide guidelines for the deposit and investment of public monies on behalf of the City of Desert Hot Springs (“City”) that are intended to protect the solvency and creditworthiness of the City consistent with the terms and provisions of California Government Code Section 53600 et seq., and any amendments thereto. However, since the State Legislature has declared that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern, should any conflicts arise between the terms and provisions of the proposed Policy and the terms and provisions of California Code Sections 53600 et seq., the terms and provisions of said Government Code sections will control.

As permitted per California Government Code Section 53607, it is recommended that the City Council delegate the authority to invest or to reinvest funds of the City, or to sell or exchange securities so purchased, for a one-year period to the City Treasurer (“Treasurer”), who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires. To protect the City from any misdeeds of the Treasurer with respect to his/her investment duties, California Government Code Section 36518 requires the Treasurer to execute a bond to the City that conforms to the provisions of the California Government Code relating to bonds of public officers. The penal sum of the bond must be in a reasonable amount recommended by the City Attorney and fixed by the City Council, by resolution, which the City Council is authorized to change during the Treasurer’s term of office, as permitted under California Government Code Section 36518. Also, the Treasurer’s bond must be filed with the City Clerk pursuant to California Government Code Section 36520.

The City Council will be required to annually review and consider whether to renew the delegation of investment authority to the Treasurer, as required by California Government Code Section 53607. In

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SR-22-047
addition, the Treasurer will be required to make a monthly report of all investment-related transactions to the City Council, as required by California Government Code Section 53607.

When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing City funds, the Treasurer is required to act pursuant to the prudent investor standard as set forth in California Government Code Section 53600.3 Further, when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, the objectives shall be: (a) to safeguard the principal of the funds; (b) to meet the City’s liquidity needs; and (c) to achieve a return on the funds, as set forth in California Government Code Section 53600.5.

The Treasurer will be permitted to invest any City funds contained in a sinking fund or not required for the immediate needs of the City in those investments set forth in California Government Code Sections 53601 and 53601.1. The Treasurer may also invest a portion of the City’s surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits, subject to the conditions set forth in California Government Code Section 53601.7.

The Treasurer will also be permitted to invest a portion of City’s surplus funds in certificates of deposit at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of certificates of deposit, subject to the limitations and conditions set forth in Government Code Section 53601.8.

With respect to deferred compensation plans for the employees, those funds may be invested in the types of investments set forth in Government Code Sections 53601 and 53602 and in corporate stocks, bonds, and securities, mutual funds, savings and loan accounts, credit union accounts, life insurance policies, annuities, mortgages, deeds of trust, or other security interests in real or personal property, as set forth in California Government Code Section 53609.

The Treasurer will be prohibited from investing any funds in any securities that could result in zero interest accrual if held to maturity or any instruments; such as, inverse floaters, range notes, or mortgage-derived, interest-only strips, as proscribed in California Government Code Section 53601.6.

Finally, the Treasurer may:
(a)Invest only in notes, bonds, bills, certificates of indebtedness, warrants, or registered warrants which are legal investments for savings banks in the state as set forth in California Government Code Section 53602;
(b)Invest by direct purchase of any issue of eligible securities at their original sale or after they have been issued as set forth in California Government Code Section 53602; (c)Sell, or exchange for other eligible securities, and reinvest the proceeds of, the securities purchased, as set forth in California Government Code Section 53604; (d)Sell securities so that the proceeds may be applied to the purposes for which the original purchase money was placed in a sinking fund or the City’s treasury as set forth in California Government Code Section 53605;
(e)Cancel purchased bonds either in satisfaction or sinking fund obligations or otherwise, subject to the provisions set forth in California Government Code Section 53606; and (f)Deposit for safekeeping with a federal or state association, a trust company or a state or national bank located within the state or with the Federal Reserve Bank of San Francisco or any branch

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SR-22-047
thereof within the state, or with any Federal Reserve bank or with any state or national bank located in any city designated as a reserve city by the Board of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates of indebtedness, warrants, or other evidences of indebtedness in which the money of the City is invested pursuant to the provisions of California Government Code Section 53608.

FISCAL IMPACT:

None
ATTACHMENTS:

Exhibit 1 - FY2022-2023 Investment Policy Resolution
Exhibit 2 - Investment Policy

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RESOLUTION NO. 2022-_____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT HOT

SPRINGS APPROVING DELEGATION OF INVESTMENT AUTHORITY AND

OTHER RELATED DUTIES TO THE CITY TREASURER AS AUTHORIZED BY THE CITY’S INVESTMENT POLICY
WHEREAS, per California Government Code Section 53600.6, the State Legislature finds that since the solvency and creditworthiness of each individual local agency can impact the solvency and creditworthiness of the state and other local agencies within the state, the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern; and
WHEREAS, the terms and provisions of California Code Sections 53600 et seq. set forth specific guidelines for cities (including charter cities) to follow with respect to depositing and investing public monies; and
WHEREAS, pursuant to the City’s previously adopted Investment Policy, a copy of which is attached hereto and incorporated herein by this reference as Exhibit “A,” which provides guidelines for the deposit and investment of public monies on behalf of the City of Desert Hot Springs (“City”) that are intended to protect the solvency and creditworthiness of the City consistent with the terms and provisions of California Government Code Section 53600 et seq., and any amendments thereto, and specifically pursuant to California Government Code Section 53607, the City Council may delegate the authority to invest or to reinvest funds of the City, or to sell or exchange securities so purchased, for a one-year period to the Administrative Services Director acting as City Treasurer, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS AS FOLLOWS:

Section 1. RECITALS
That the Recitals set forth above are true and correct.

Section 2. DELEGATION OF INVESTMENT AUTHORITY
That pursuant to California Government Code Section 53607, the City Council delegates the authority to invest or to reinvest funds of the City, or to sell or exchange securities so purchased, for a one-year period to the City Treasurer, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires.

Section 3. OTHER ACTS
That each officer of the City, acting on behalf of the City of Desert Hot Springs, is hereby authorized and directed, jointly and severally, to exclude and deliver such documents and instruments and to do such things which may be necessary or proper to effectuate the purposes of the Resolution, and any such actions previously taken by such officers are hereby ratified, approved and confirmed.

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Section 4. SEVERABILITY
That if any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable and that the City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

Section 5. EFFECTIVE DATE
That this Resolution shall take effect immediately upon adoption.

Section 6. CERTIFICATION
That the City Clerk shall certify to the passage of this Resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this 1st day of March, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
[SIGNATURES FOLLOW ON THE NEXT PAGE]

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ATTEST:
______________________________ _______________________
Jerryl Soriano, CMC, City Clerk Scott Matas, Mayor

APPROVED AS TO FORM:
____________________________
Jennifer A. Mizrahi, City Attorney

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EXHIBIT “A”

INVESTMENT POLICY

SEE ATTACHED

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City of Desert Hot Springs Investment Policy
Adopted March 1, 2022

CITY OF DESERT HOT SPRINGS

INVESTMENT POLICY
Adopted March 1, 2022
(Subject to Annual Review)
Section 1. Purpose (Gov. Code § 53600 et seq.)
The purpose of this Investment Policy (“Policy”) is to provide guidelines for the deposit and investment of public monies on behalf of the City of Desert Hot Springs (“City”) that are intended to protect the solvency and creditworthiness of the City consistent with the terms and provisions of California Government Code Section 53600 et seq., and any amendments thereto.

Section 2. Conflicts (Gov. Code § 53600.6)
Since the State Legislature has declared that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern, should any conflicts arise between the terms and provisions of this Policy and the terms and provisions of California Code Sections 53600 et seq., the terms and provisions of said Government Code sections shall control.

Section 3. Delegation of Investment Authority (Gov. Code § 53607) Pursuant to California Government Code Section 53607, the City Council delegates the authority to invest or to reinvest funds of the City, or to sell or exchange securities so purchased, for a one-year period to the City Treasurer (“Treasurer”), who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires.

Section 4. Bond (Gov. Code § 36518)
Pursuant to California Government Code Section 36518, the Treasurer shall execute a bond to the City that conforms to the provisions of the California Government Code relating to bonds of public officers. The penal sum of the bond shall be in a reasonable amount recommended by the City Attorney and fixed by the City Council, by resolution, which the City Council is authorized to change during the Treasurer’s term of office, as permitted under California Government Code Section 36518. The Treasurer’s bond shall be filed with the City Clerk pursuant to California Government Code Section 36520.

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City of Desert Hot Springs Investment Policy
Adopted March 1, 2022
Section 5. Annual Renewal (Gov. Code § 53607)
The City Council shall review and consider annually whether to renew the delegation of investment authority to the Treasurer, as required by California Government Code Section 53607.

Section 6. Monthly Reports (Gov. Code § 53607)
The Treasurer shall make a monthly report of all investment-related transactions to the City Council, as required by California Government Code Section 53607.

Section 7. Prudent Investor Standard (Gov. Code § 53600.3) When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing city funds, the Treasurer shall act pursuant to the prudent investor standard as set forth in California Government Code Section 53600.3
Section 8. Objectives (Gov. Code § 53600.5)
When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, the objectives shall be: (a) to safeguard the principal of the funds; (b) to meet the City’s liquidity needs; and (3) to achieve a return on the funds, as set forth in California Government Code Section 53600.5.

Section 9. Authorized Investments (Gov. Code §§ 53601, 53601.1) The Treasurer may invest any City funds contained in a sinking fund or supranational security or not required for the immediate needs of the City in those investments set forth in California Government Code Sections 53601 and 53601.1
Section 10. Authorized Deposits (Gov. Code § 53601.7)
The Treasurer may invest a portion of the City’s surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits, subject to the conditions set forth in California Government Code Section 53601.7.

Section 11. Certificates of Deposit (Gov. Code § 53601.8) The Treasurer may invest a portion of City’s surplus funds in certificates of deposit at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of certificates of deposit, subject to the limitations and conditions set forth in Government Code Section 53601.8.

Section 12. Purchasing Investments (Gov. Code § 53601.5) All authorized investments not purchased directly from the issuer, shall be purchased pursuant to California Government Code Section 53601.5.

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City of Desert Hot Springs Investment Policy
Adopted March 1, 2022
Section 13. Deferred Compensation Investments (Gov. Code § 53609) Funds held by the City pursuant to a written agreement between the City and City employees to defer a portion of the compensation otherwise receivable by the City’s employees and pursuant to a plan for such deferral as adopted by the City Council may be invested in the types of investments set forth in Government Code Sections 53601 and 53602 and in corporate stocks, bonds, and securities, mutual funds, savings and loan accounts, credit union accounts, life insurance policies, annuities, mortgages, deeds of trust, or other security interests in real or personal property, as set forth in California Government Code Section 53609.

Section 14. Prohibited Investments (Gov. Code § 53601.6) The Treasurer shall not invest any funds in any securities that could result in zero interest accrual if held to maturity nor any instruments such as, inverse floaters, range notes, or mortgage-derived, interest-only strips, as proscribed in California Government Code Section 53601.6.

Section 15. Miscellaneous (Gov. Code § 53602, 53604, 53605, 53606, 53608 ) The Treasurer may:
(a) Invest only in notes, bonds, supranational securities, bills, certificates of indebtedness, warrants, or registered warrants which are legal investments for savings banks in the state as set forth in California Government Code Section 53602. (b) Invest by direct purchase of any issue of eligible securities at their original sale or after they have been issued as set forth in California Government Code Section 53602. (c) Sell, or exchange for other eligible securities, and reinvest the proceeds of, the securities purchased, as set forth in California Government Code Section 53604. (d) Sell securities so that the proceeds may be applied to the purposes for which the original purchase money was placed in a sinking fund or the City’s treasury as set forth in California Government Code Section 53605.
(e) Cancel purchased bonds either in satisfaction or sinking fund obligations or otherwise, subject to the provisions set forth in California Government Code Section 53606. (f) Deposit for safekeeping with a federal or state association, a trust company or a state or national bank located within the state or with the Federal Reserve Bank of San Francisco or any branch thereof within the state, or with any Federal Reserve bank or with any state or national bank located in any city designated as a reserve city by the Board of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates of indebtedness, warrants, or other evidences of indebtedness in which the money of the City is invested pursuant to the provisions of California Government Code Section 53608.

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SR-22-043
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 1, 2022
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: City Council Regular Meeting Minutes: February 15, 2022 RECOMMENDATION:

Approve the Minutes as presented; or as corrected.

ATTACHMENTS:

Draft City Council Regular Meeting Minutes - February 15, 2022

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City of Desert Hot Springs

DRAFT ACTION MINUTES
City Council Meeting
6:00 PM - Tuesday, February 15, 2022
Council Chambers
CLOSED SESSION - 4:30 P.M.

CALL TO ORDER
Mayor Pro Tem Gardner called the Closed Session to order at 4:30 P.M.

ROLL CALL

Present:

Council Members: Russell Betts, Roger Nuñez, Jan Pye
Mayor Pro Tem: Gary Gardner

Absent:

Mayor: Scott Matas (excused)

PUBLIC COMMENTS
None.

Jennifer Mizrahi, City Attorney, announced the Closed Session Items.

CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Nadine Garcia, et al. v. City of Desert Hot Springs, et al.; 4th District Court of Appeal – Division 2; Case No. E075523

2. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: One Potential Case

3. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: One Potential Case

4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Gov Code Sec.

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City Council
February 15, 2022
54957(b)
Title: City Manager
RECESS
REGULAR SESSION - 6:00 P.M.

CALL TO ORDER
Mayor Pro Tem Gardner called the Regular Session to order at 6:00 P.M.

ROLL CALL

Present:

Council Members: Russell Betts, Roger Nuñez, Jan Pye
Mayor Pro Tem: Gary Gardner

Absent:

Mayor: Scott Matas (excused)

INVOCATION
Mayor Pro Tem Gardner gave the Invocation.

PLEDGE OF ALLEGIANCE
Council Member Betts led the Pledge of Allegiance.

CITY ATTORNEY REPORT ON CLOSED SESSION
Jennifer Mizrahi, City Attorney, advised that there was no reportable action.

APPROVAL OF AGENDA
ACTION: Approve the February 15, 2022 Regular Meeting agenda, consider Item 7 prior to Item 6, and approve the Consent Calendar in its entirety.

Moved by Mayor Pro Tem Gardner
Seconded by Council Member Nuñez
Carried 4-0 by the following votes:

AYES: Betts, Nuñez, Pye, and Gardner
ABSENT: Matas

PUBLIC COMMENTS

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City Council
February 15, 2022
1) Matthew Garcia spoke regarding the cost of housing/rent. 2) Calvin Ludwigsen spoke regarding development around his neighborhood. 3) Kim Lee spokeshort term vacation rentals.
4) Alexander Bazley spoke regarding short term vacation rentals. 5) Doan Chau spoke regarding short term vacation rentals. 6) Walker Beverly spoke regarding weather related road closures. 7) Debra Haas spoke regarding short term vacation rentals. 8) William Ashman spoke regarding short term vacation rentals. 9) Gabriel Richards spoke regarding short term vacation rentals. 10) Andrew Spencer spoke regarding short term vacation rentals. 11) Joshua Woody spoke regarding short term vacation rentals. 12) Nuvea Cobb spoke regarding short term vacation rentals.

CITY MANAGER REPORT
Luke Rainey, City Manager, advised that Staff was assessing short term vacation rentals impacts.

Geoffrey Buchheim, Administrative Services Director, provided a financial update.

Christina Newsom, Compliance Manager, reported on a Code Enforcement clean-up case at 15th Avenue and Via Real.

Roberta Crncic, Executive Program Director, provide updates regarding Little League sign-ups and coaching, and the co-ed youth basketball league.

Erick Becerril, Community Development Director, reported on the Tour de Palm Springs event.

MAYOR AND COUNCIL MEMBER REPORTS
Council Member Pye reported on the various meetings and events she attended.

Council Member Nuñez reported on the various meetings and events he attended.

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City Council
February 15, 2022
Council Member Betts reported on the various meetings and events he attended.

Mayor Pro Tem Gardner reported on the various meetings and events he attended.

The City Council recessed at 7:00 P.M.

The City Council reconvened at 7:05 P.M.

Item 7 was considered at this time.

PUBLIC HEARINGS:

6. Transition From At-Large to By-District Elections (Public Hearing No. 1) Staff Report - SR-22-039 - Pdf
Recommendation:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony;
7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Conclude the first Public Hearing receiving public testimony as part of the administrative record.

Jerryl Soriano, City Clerk, presented the staff report.

David Ely, Bear Demographics & Research, presented an overview of legal requirements to be considered, the criteria for creating district boundaries, and the public input process, and responded to questions.

Tizoc DeAztlan, DeAztlan Consulting, described the public input process and responded to questions.

Mayor Pro Tem Gardner opened the Public Hearing.

There was no public testimony.

Mayor Pro Tem Gardner closed the Public Hearing.

ADMINISTRATIVE CALENDAR:

7. Appointment to the Planning Commission to Fill One (1) Vacancy for Unexpired Term
Staff Report - SR-22-037 - Pdf
Recommendation:

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City Council
February 15, 2022
Ratify Mayor Pro Tem Gardner's appointment of Chris Wagstaff to the Planning Commission to fill one (1) vacancy consisting of an unexpired term through January 2023.

Item 7 was considered prior to Item 6.

Jerryl Soriano, City Clerk, presented the staff report.

ACTION: Ratify Mayor Pro Tem Gardner's appointment of Chris Wagstaff to the Planning Commission to fill one (1) vacancy consisting of an unexpired term through January 2023.

Moved by Council Member Betts
Seconded by Council Member Pye
Carried 4-0 by the following votes:

AYES: Betts, Nuñez, Pye, and Gardner
ABSENT: Matas

8. Ordinance Increasing the Salary for Planning Commissioners and Public Safety Commissioners
Staff Report - SR-22-023 - Pdf
Recommendation:

2.40.050 (Salaries of Police Commissioners) of Chapter 2.40 (Police Commission) of the Desert Hot Springs Municipal Code increasing the salary of City Commissioners."
Jerryl Soriano, City Clerk, presented the staff report.

ACTION: Approve Staff recommendation.

Moved by Council Member Betts
Seconded by Council Member Nuñez
Carried 4-0 by the following votes:

AYES: Betts, Nuñez, Pye, and Gardner
ABSENT: Matas

9. Resolution adopting Caltrans Local Assistance Procedures Manual Chapter 10: Consultant Selection
Staff Report - SR-22-036 - Pdf
Recommendation:

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City Council
February 15, 2022
Adopt a Resolution of the City Council of the City of Desert Hot Springs, California adopting Caltrans Local Assistance Procedures Manual Chapter 10:

Consultant Selection.

Daniel Porras, Assistant City Manager, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation and adopt Resolution No. 2022-004.

Moved by Council Member Nuñez
Seconded by Council Member Pye
Carried 4-0 by the following votes:

AYES: Betts, Nuñez, Pye, and Gardner
ABSENT: Matas

10. Ordinance Prohibiting the Unlawful Possession of Catalytic Converters in the City of Desert Hot Springs
Staff Report - SR-22-029 - Pdf
Recommendation:

Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, California, adding Chapter 8.55 "Catalytic Converters" to the Desert Hot Springs Municipal Code establishing regulations prohibiting the unlawful possession of catalytic converters in the City"
Steven Shaw, Deputy Police Chief, presented the staff report.

ACTION: Approve Staff recommendation.

Moved by Council Member Betts
Seconded by Council Member Nuñez
Carried 4-0 by the following votes:

AYES: Betts, Nuñez, Pye, and Gardner
ABSENT: Matas
CONSENT CALENDAR:

11. City Council Regular Meeting Minutes: February 1, 2022 Staff Report - SR-22-038 - Pdf
Recommendation:

Approve the Minutes as presented; or as corrected.

ACTION: Approved the Minutes as presented.

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City Council
February 15, 2022

PUBLIC COMMENTS
None.

ADJOURN
Mayor Pro Tem Gardner adjourned the meeting at 7:53 P.M.

Jerryl Soriano, CMC, City Clerk

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SR-22-041
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 1, 2022
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance Increasing the Salary for Planning Commissioners and Public Safety Commissioners
RECOMMENDATION:

Approve second reading, read by title only and adopt: "An Ordinance of the City Council of the City of Desert Hot Springs amending Section 2.32.050 (Salaries of Planning Commissioners) of Chapter 2.32 (Planning Commission) and Section 2.40.050 (Salaries of Police Commissioners) of Chapter 2.40 (Police Commission) of the Desert Hot Springs Municipal Code increasing the salary of City Commissioners."
BACKGROUND:

The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on February 15, 2022.

The Ordinance shall take effect thirty (30) days after its second reading.

FISCAL IMPACT:
• $100 per Planning Commissioner per meeting; and
• $100 per Public Safety Commissioner per meeting.

The fiscal impact for each Commission is $500 per month (assuming one meeting per month and all commissioners attend). It will be an estimated $6,000 annual increase in costs. The increase for the remainder of FY2021-2022 will be covered from savings due to vacant positions. The increase for FY2022-2023 will be included in the budget adjustments that will be brought before Council in the spring.

ATTACHMENTS:

Exhibit 1 - Staff Report from February 15, 2022
Exhibit 2 - Draft Ordinance - Commissioner Salaries

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SR-22-023
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: February 15, 2022
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Ordinance Increasing the Salary for Planning Commissioners and Public Safety Commissioners
RECOMMENDATION:

Introduce for First Reading, read by title only, "An Ordinance of the City Council of the City of Desert Hot Springs amending Section 2.32.050 (Salaries of Planning Commissioners) of Chapter 2.32 (Planning Commission) and Section 2.40.050 (Salaries of Police Commissioners) of Chapter 2.40 (Police Commission) of the Desert Hot Springs Municipal Code increasing the salary of City Commissioners."
BACKGROUND:

Currently, the City of Desert Hot Springs Municipal Code (“DHSMC”) provides that members of the City’s Planning Commission and Public Safety Commission receive a salary of $50 per meeting attended.

The proposed Ordinance (Exhibit 1) provides for $100 to be paid as a salary to Planning Commissioners and Public Safety Commissioners per each meeting attended.

FISCAL IMPACT:
• $100 per Planning Commissioner per meeting; and
• $100 per Public Safety Commissioner per meeting.

ATTACHMENTS:

Exhibit 1 - Draft Ordinance - Commissioner Salaries

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ORDINANCE NO. _______

AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF DESERT HOT SPRINGS
AMENDING SECTION 2.32.050 (SALARIES

OF PLANNING COMMISSIONERS) OF
CHAPTER 2.32 (PLANNING COMMISSION)
AND SECTION 2.40.050 (SALARIES OF

POLICE COMMISSIONERS) OF CHAPTER

2.40 (POLICE COMMISSION) OF THE

DESERT HOT SPRINGS MUNICIPAL CODE

INCREASING THE SALARY OF CITY

COMMISSIONERS
WHEREAS, the City of Desert Hot Springs (“City”) is
a charter city organized pursuant to Article XI of the
California Constitution; and
WHEREAS, currently the City’s Planning
Commissioners receive a salary of $50 per meeting they
attend; and
WHEREAS, currently the City’s Public Safety
Commissioners receive a salary of $50 per meeting they
attend; and
WHEREAS, the commissioners’ service and
dedication to the community should be recognized; and
WHEREAS, the City Council determines that
amending the Planning Commissioners’ and Public Safety
Commissioners’ salary to better reflect the actual work performed by all commissioners and committee members
promotes the health, safety and public welfare of the
community; and

NOW, THEREFORE, THE CITY COUNCIL OF THE

CITY OF DESERT HOT SPRINGS DOES ORDAIN AS
FOLLOWS:

Section 1. RECITALS.

That the Recitals are hereby incorporated by this
reference.

Section 2. AMENDMENT OF SECTION 2.32.050
“SALARIES OF PLANNING COMMISSIONERS” OF
CHAPTER 2.32 OF THE DESERT HOT SPRINGS

MUNICIPAL CODE

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That Section 2.32.050 of Chapter 2.32 of the Desert
Hot Springs Municipal Code shall be amended to read as
follows:

2.32.050 Salaries of Planning Commissioners.

Each member of the Planning Commission shall
receive a salary in the amount of $50 $100 per any
officially convened Planning Commission meeting that
they attend. (Ord. 606 3-21-17; prior code § 32.35)
Section 3. AMENDMENT OF SECTION 2.40.050
“SALARIES OF POLICE COMMISSIONERS” TO THE

DESERT HOT SPRINGS MUNICIPAL CODE
That Section 2.40.050 of Chapter 2.40 of the Desert
Hot Springs Municipal Code, and shall be amended to read as follows:

2.40.050 Salaries of Police Commissioners.

Each member of the Police Commission shall receive
a salary in the amount of $50 $100 per any officially
convened Commission meeting that they attend.

Section 4. SEVERABILITY
That the City Council declares that, should any
provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 5. CEQA EXEMPTION
That this ordinance is exempt from environmental
review pursuant to Section 15061(b)(3) of the Guidelines for California Environmental Quality Act (California Code of Regulations, Title 14, Chapter 3), because approval of this ordinance does not have the potential for causing a
significant effect on the environment, and it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

Section 6. AMENDING OF BAIL SCHEDULE
That the City Attorney's Office is hereby directed to
determine whether this ordinance necessitates amendment

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of the City's Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 7. EXECUTION AND CERTIFICATION
That the City Clerk is directed to do all things
necessary to cause the execution of this ordinance
immediately upon its adoption and shall thereafter certify to the passage of this ordinance and cause the same to be
published according to law.

Section 8. EFFECTIVE DATE
That this ordinance shall take effect thirty (30) days
after its second reading by the City Council.

PASSED AND ADOPTED by the City Council at a
regular meeting held on the _____ day of
________________, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
______________________________
________________________
_____
Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:
______________________________
Jennifer A. Mizrahi, City Attorney

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SR-22-040
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 1, 2022
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance Prohibiting the Unlawful Possession of Catalytic Converters in the City of Desert Hot Springs RECOMMENDATION:

Approve second reading, read by title only and adopt: "An Ordinance of the City Council of the City of Desert Hot Springs, California, adding Chapter 8.55 "Catalytic Converters" to the Desert Hot Springs Municipal Code establishing regulations prohibiting the unlawful possession of catalytic converters in the City"
BACKGROUND:

The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on February 15, 2022.

The Ordinance shall take effect thirty (30) days after its second reading.

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

ATTACHMENTS:

Exhibit 1 - Staff Report from February 15, 2022
Exhibit 2 - Ordinance re Catalytic Converters

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SR-22-029
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: February 15, 2022
Department: Police Department
Prepared by: Steven Shaw, Deputy Police Chief
Subject: Ordinance Prohibiting the Unlawful Possession of Catalytic Converters in the City of Desert Hot Springs
RECOMMENDATION:

The theft of catalytic converters has increased significantly in cities across California and the nation.

Catalytic converter theft is popular because of the value of precious metals contained within the catalytic converter, the ease of removing the catalytic converter from a vehicle, and the ease of selling the item to a scrap metal dealer for cash. Catalytic converters do not have serial numbers so if an individual is in possession of a catalytic converter and stopped by the police, it is very difficult for the officer to prove the item is stolen and take enforcement action. The Desert Hot Springs Police Department investigated nine (9) catalytic converter thefts in 2021, (9) catalytic converter thefts in 2020, and twenty-six (26) catalytic converter thefts in 2019.

DISCUSSION:

Cities across the nation have experienced an increase in catalytic converter thefts due to the ease of obtaining and selling the items. Catalytic converter thieves move across jurisdictional lines and in many cases are committing other crimes such as auto theft. Catalytic converter theft is challenging for law enforcement because of the lack of serial numbers or other identifying information on a catalytic converter which can positively identify the item as stolen.

An individual stopped by police while possessing a catalytic converter does not need to show proof of ownership, and unless the officer can identify a victim who then must be able to positively identify the catalytic converter as theirs, may have to release the individual along with the catalytic converter. In addition to the possession of a catalytic converter there is no enforcement mechanism for the scrap dealer or recycling center that buys the catalytic converter for an additional profit of the precious metals.

There is currently no City, State, or Federal legislation applicable to define and punish the possession, recycling, or sale of unlawfully obtained catalytic converters. The ordinance as proposed will help protect the citizens of Desert Hot Springs and assist law enforcement by establishing a zero tolerance policy and enforcement tool for catalytic converter theft, establish sanctions for possessing stolen

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SR-22-029
catalytic converters, prevent offenders from profiting from the sale of catalytic converters and prevent recycling centers from purchasing unlawfully obtained catalytic converters, provide indirect justice to the victims of catalytic converter theft, reduce Part 1 crime statistics which have been negatively impacted by catalytic converter thefts, and minimize the fiscal and personnel impact invested by the City of Desert Hot Springs in deterring and investigating catalytic converter thefts.

FISCAL IMPACT:

None
ENVIRONMENTAL ANALYSIS:

This Ordinance is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines because there is no possibility that this Ordinance or its implementation would have a significant negative effect on the environment. (14 Cal. Code Regs. § 15061(b)(3).

ATTACHMENTS:

Exhibit 1 - Ordinance re Catalytic Converters

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ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS, CALIFORNIA, ADDING CHAPTER 8.55 “CATALYTIC CONVERTERS” TO THE DESERT HOT SPRINGS MUNICIPAL CODE

ESTABLISHING REGULATIONS PROHIBITING THE UNLAWFUL

POSSESSION OF CATALYTIC CONVERTERS IN THE CITY
WHEREAS, the citizens of Desert Hot Springs have seen approximately fifty (50) catalytic converter thefts in the past three (3) years from automobiles over the past several years; and
WHEREAS, there is currently no City, State, or Federal legislation applicable within the City of Desert Hot Springs to define and punish catalytic converter thefts absent an identifiable victim; and
WHEREAS, there are currently no City, State, or Federal legislation applicable within the City of Desert Hot Springs requiring individuals to provide proof to law enforcement as to how they obtained catalytic converters, thus limiting law enforcement ability to protect the public by preventing catalytic converter thefts and preventing law enforcement from seizing suspected stolen catalytic converters when no victim present; and
WHEREAS, catalytic converter thefts are on the rise because individuals are incentivized to commit catalytic converter thefts for multiple reasons including, but not limited to: (1) the ease and undetectable nature of committing the thefts in a matter of seconds using common tools such as a reciprocating saw, (2) the ability to recycle catalytic converters at scrap metal yards for high dollar returns ranging from $200 to $1,200 per catalytic converter, and (3) loopholes in legislation protecting criminals from prosecution unless a victim can be identified; and
WHEREAS, finding a victim of these crimes is nearly impossible due to the undetectable nature of the catalytic converter thefts and catalytic converters being untraceable to link back to a victim (no identifying markers on the catalytic converters); and
WHEREAS, due to lack of legislation defining and prosecuting these thefts, 99% of all catalytic converter theft cases in the City of Desert Hot Springs have gone unsolved, which is fundamentally unacceptable for the citizens of the City of Desert Hot Springs; and
WHEREAS, the citizens of Desert Hot Springs and the Desert Hot Springs Police Department are in need of legislation for multiple reasons including, but not limited to:
(1) deterrence by establishing zero-tolerance for catalytic converter thefts, (2) sanctions for possessing stolen catalytic converters, (3) preventing criminals from profiting from the sale and recycling of stolen catalytic converters, (4) providing indirect justice to the victims of catalytic converters whose cases will go unsolved, (5) reducing crime statistics which have been substantially negatively impacted by catalytic converter thefts, and (6) minimizing the fiscal and personnel impact on the City of Desert Hot Springs invested in deterring and investigating catalytic converter thefts; and

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WHEREAS, individuals who are in possession of stolen catalytic converters recycle them for substantial profit while victims of these thefts suffer tremendous consequences of paying thousands of dollars in repairs, the inconvenience of repairing their vehicles, and feeling unsafe in the community; and WHEREAS, this Ordinance is necessary to provide the City of Desert Hot Springs Police Department clearly established legal authority to protect the public and deter this criminal activity.

NOW, THEREFORE, the City Council of the City of Desert Hot Springs DOES HEREBY ORDAIN as follows:

SECTION 1. The above recitals are true and correct and incorporated herein.

SECTION 2. Chapter 8.45 “Unlawful Possession of a Catalytic Converter” shall be added to the Desert Hot Springs Municipal Code to read as follows:

Chapter 8.45 UNLAWFUL POSSESSION OF A CATALYTIC

CONVERTER

8.45.010. Title
This chapter shall be referred to as the “Unlawful Possession of a Catalytic Converter.”

8.45.020. Definitions
A. For purposes of this chapter “lawful possession” includes being the lawful owner of the catalytic converter or in possession of the catalytic converter with the lawful owner’s written consent. It is not required to prove the catalytic converter was stolen to establish the possession is not a “lawful possession.”
B. For purposes of this chapter, documentation or other proof means written document(s) that clearly identify the vehicle from which the catalytic converter originated and includes but is not limited to the following document types: bill of sale from the original owner with photographs, documentation from an auto-body shop proving the owner relinquished the catalytic converter to the auto-body shop, verifiable electronic communication from the previous owner to the possessor relinquishing ownership of the catalytic converter, photographs of the vehicle from which the catalytic converter originated, vehicle registration associated with the catalytic converter containing an etched associated license plate number or vehicle identification number. The validity of “documentation or other proof” is based on the totality of the circumstances.

8.45.030. Unlawful Possession of a Catalytic Converter.

It shall be unlawful to possess any catalytic converter that is not attached to a

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vehicle unless the possessor has valid documentation or other proof to verify they are in lawful possession of the catalytic converter.

8.45.040. Violations
A. Each and every violation of this section shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the Desert Hot Springs Municipal Code. Each and every catalytic converter unlawfully possessed is a separate violation of this section.

B. Each and every violation of this section may, in the discretion of the District Attorney, be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed $500 or imprisonment in the county jail for a period of not more than 12 months, or by both such fine and imprisonment.

C. The remedies provided herein are not to be construed as exclusive remedies.

The City is authorized to pursue any proceedings or remedies provided by law.

SECTION 3. This Ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines because there is no possibility that this Ordinance or its implementation would have a significant negative effect on the environment. (14 Cal. Code Regs. § 15061(b)(3).) City staff shall cause a Notice of Exemption to be filed as authorized by CEQA and the State CEQA Guidelines.

SECTION 4. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases or portions thereof be declared invalid or unconstitutional.

SECTION 5. The City Clerk shall certify to the passage of this Ordinance and this Ordinance shall be published as required by law and shall take effect as provided by law.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ____day of __________, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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ATTEST: APPROVED:
_________________________________ ______________________________ Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:
_________________________________
Jennifer Mizrahi, City Attorney

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Page 80 of 84 ends

SR-22-044
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 1, 2022
Department: Finance
Prepared by: Viviana Gonzalez-Osorio, Management Analyst Subject: Contracts Management Report as of February 15, 2022 RECOMMENDATION:

Receive and file.

DISCUSSION:

Of the FY 2021-2022 Consolidated General Fund adopted operating budget of 32.76 Million, 7.41 Million, or 23% is comprised of contract services. To facilitate management of the City’s contracts, a Contracts Management Report (Exhibit 1) has been developed and is submitted to the City Council for informational purposes. This report is comprised of operational contracts over $5,000.00 in support of daily City operations. This report assists staff in proactively administering contracts.

FISCAL IMPACT:

None.

ATTACHMENTS:

Exhibit 1 - Contracts Management Report as of February 15, 2022

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City of Desert Hot Springs
Contracts Management Report
March 1, 2022
Balance as of February 15, 2022
Service/Commodity Provided Current
Contractor/ Consultant
Responsible
Department / Division
Annual Contract
Amount Total Contract Amount
Total
Contract
Remaining
Balance
Contract
Effective
Date
Contract Expiration
Date
JOHN H. FURBEE AQUATICS CENTER POOL SERVICES 1 STOP POOL PROS Public Works $ 144,890.00 $ 144,890.00 $ 36,222.47 7/2/2019 6/30/2022 CITY WIDE ZONE 3 & 4 LANDSCAPE SERVICES DESERT CONCEPTS CONSTRUCTION Public Works $ 212,484.00 $ 212,484.00 $ 88,545.00 7/1/2019 6/30/2022 CITYWIDE JANITORIAL SERVICES KELLER MEYER BERGENSONS SERVICES LLC Public Works $ 236,809.20 $ 236,809.20 $ 108,233.51 7/1/2019 6/30/2022 CITYWIDE STREET SWEEPING SERVICES CONTRACT SWEEPING SERVICES, LLC Public Works $ 49,344.00 $ 148,026.10 $ 148,026.10 1/1/2022 6/30/2023 CITY WIDE ZONE 1 & 2 LANDSCAPE SERVICES MARIPOSA LANDSCAPES, INC. Public Works $199,781 $199,781 $100,236 7/1/2021 6/30/2022 SENIOR CENTER MANAGEMENT MIZELL SENIOR CENTER Public Works $ 155,291.00 $ 155,291.00 $ 63,768.17 3/1/2019 6/30/2022 CITYWIDE TRAFFIC SIGNAL SERVICES SIEMENS MOBILITY INC Public Works $ 72,024.00 $ 72,024.00 $ 26,458.47 7/1/2015 6/30/2022 SPECIAL DISTRICT ADMIN SERVICES WEBB MUNICIPAL FINANCE LLC Admin Services Agreement for a period of (3)
years beginning FY19-20
and continue until FY 21-22 Not
to exceed $256,615. $256,615 $57,675 11/20/2018 6/30/2022 PROPERTY TAX AUDIT SERVICES HDL (HINDERLITER, DELLAMAS) COREN & CONE Admin Services $14,850 annually and rate
schedule for contingencies $77,423 $5,004 5/23/2017 5/23/2022 MARIJUANA DISPENSARY AUDIT SERVICES HDL (HINDERLITER, DELLAMAS) COREN & CONE Admin Services Not to exceed $104,500 through
FY 23-24 $104,500 $35,000 10/26/2016 6/30/2024
AUDIT SERVICES THE PUN GROUP Admin Services
TO 06/30/17: $68,440
FY 17-18: $69,809
FY 18-19: $71,204
FY 19-20: $72,628
FY 20-21 $74,082
FY 21-22 $75,563 $431,726 $154,029 4/18/2017 6/30/2022
DEBRIS ABATEMENT PROGRAM DESERT VALLEY DISPOSAL (DVD) Admin Services $190,547 $190,547 $111,152 7/1/2021 6/30/2022 GRANT WRITING, RESEARCH & CONSULTING SERVICES EVAN BROOKS ASSOCIATES, INC. Admin Services $72,031 $72,031 $6,050 11/17/2020 Not to Exceed dollar amount BANKING SERVICES MUFG UNION BANK OF CALIFORNIA Admin Services Per MUFG Union Ban k Price
Schedule
Per MUFG Union Ban k Price
Schedule N/A 5/19/2015 5/19/2022
FISCAL BUDGETING CONSULTING SERVICES URBAN FUTURES Admin Services $75,000.00 Annually (Total 3
year contract amendment not to
exceed $225,000.) $225,000 $166,313 10/10/2020 6/30/2023 GENERAL LEGAL SERVICES STREAM KIM City Manager Rate Schedule Rate Schedule Rate Schedule 7/1/2021 Open LITIGATION LEGAL SERVICES STREAM KIM City Manager Rate Schedule Rate Schedule Rate Schedule 7/1/2021 Open COUNCIL VIDEO AWESOME DUDE VIDEO City Manager / City Council NA NA NA 10/1/2012 Month to Month

LEGAL SERVICE LIEBERT CASSIDY
City Manager / Human
Resources Rate Schedule Rate Schedule Rate Schedule 2/4/2014 Month to Month

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BUILDING PLAN CHECK INSPECTION SERVICES/ OFFICIAL
& CASP SERVICES WILLDAN ENGINEERING Community Development FY 18-19 Contract Not to
Exceed $500,000. - Shall
automatically renew for (4)
successive 1 year terms 2023
Not to Exceed $500,000 $183,133 2/5/2019 6/30/2023
PLANNING STAFFING SERVICES WILLDAN ENGINEERING Community Development FY 19-20 Contract - Not to
Exceed $50,000.

Not to Exceed $50,000 $27,754 1/30/2020 24 Hr. Termination Clause PLAN CHECK SERVICES INTERWEST CONSULTING GROUP, INC. Community Development FY 18-19 Contract Not to
Exceed $500,000. - Shall
automatically renew for (4)
successive 1 year terms 2023
Not to Exceed $500,000 $496,538 2/5/2019 6/30/2023
ENVIRONMENTAL SERVICES CHAMBERS GROUP, INC. Community Development FY 19-20 Three (3) Year
Contract Not to Exceed
$150,000 per year.

Not to Exceed $450,000 $97,987 7/2/2019 6/30/2022
GIS SUPPORT INFINITY TECHNOLOGIES Community Development $19,500 $19,500 $12,395 7/29/2021 6/30/2022 PUBLIC FACING GIS APPLICATION INFINITY TECHNOLOGIES Community Development $15,000 $15,000 $15,000 7/29/2021 6/30/2022 DISPATCH SERVICES CITY OF CATHEDRAL CITY Police
TOTAL 2015-2018: $3,967,533
FY 18-19 $1,269,119.

FY 19-20 $1,315,124.56
FY 20-21 $1,362,797.83
FY 21-22 $1,412,199.25 $9,326,774 $1,059,150 1/1/2015 7/1/2022

EASTERN RIVERSIDE COUNTY INTEROPERABLE
COMMUNICATIONS AUTHORITY (ERICA) CITY OF INDIO Police
TOTAL 2015-2018:
$1,032,588.84, FY 2018-2019
$351,082.11, FY 2019-2020
$355,509.11 $1,739,180 $806,003 7/1/2015
Automatic Annual
renewal
ANIMAL SERVICES COUNTY OF RIVERSIDE ANIMAL SERVICES Police Billed per rate schedules $36,000 $23,947 7/1/2020 6/30/2023 FIRE SERVICES RIVERSIDE COUNTY FIRE DEPARTMENT Police
TOTAL FOR EACH FY: 2021-
2022 $1,831,996 2022-2023
$1,948,842 2023-2024
$2,071,434 $5,852,272 $5,440,093 7/1/2021 7/30/2024
GRAFFITI REMOVAL GRAFFITI PROTECTIVE COATING Police $90,000 (3) Year Contract with an amount
not to Exceed $270,000,
$90,000. per year with a max of
$7,500 per month $67,864 7/1/2020 6/30/2022

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CODE ENFORCEMENT/VEH ABATEMENT CONTRACT
SERVICES PAMELA CHAFFIN Police $50,000 $50,000 $10,016 7/1/2020 24 Hr. Termination Clause POLICE DEPARTMENT CONSULTING SERVICES MGR CONSULTING Police $50,000 $50,000 $19,830 4/1/2021 24 Hr. Termination Clause Page 84 of 84

Desert Hot Springs City CouncilMarch 1, 2022

Desert Hot Springs City Council
March 1, 2022