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Desert Hot Springs City Council
March 21, 2023

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Minutes
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March 21, 2023
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Desert Hot Springs City Council
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854
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City of Desert Hot Springs

ACTION MINUTES
City Council Meeting
6:00 PM - Tuesday, March 21, 2023
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, Gary Gardner, Jan Pye
Mayor Pro Tem: Roger Nuñez
Mayor: Scott Matas

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: Supporters Alliance for Environmental Responsibility (SAFER) v.

City of Desert Hot Springs, et al, Riverside County Court Case Number CVPS2300062

2. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Sierra Club v. City of Desert Hot Springs, et al, Riverside County Court Case Number CVPS2300057

3. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9: (One Potential Case)

Page 1 of 854 ends

City Council
March 21, 2023

4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8:

Property: 13700 Palm Drive, Desert Hot Springs, CA 92240 (APN 641-294- 042); and 17825 Indian Avenue, Palm Springs, CA 92258 (APNs 666-150-003, 666-150-007, and 666-150-008)
Agency Negotiator: Doria Wilms, Interim City Manager
Jennifer Mizrahi, City Attorney
Negotiating Parties: Doria Wilms, Interim City Manager
Jennifer Mizrahi, City Attorney
Under Negotiation: Price and Terms

5. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code Section 54957.6)
Unrepresented employee: City Manager

6. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Government Code Section 54956.9) Name of case: Newrez, LLC dba Shellpoint Mortgage Servicing v. City of Desert Hot Springs
REGULAR SESSION - 6:00 P.M.

CALL TO ORDER
Mayor Matas called the Regular Session to order at 6:01 P.M.

ROLL CALL

Present:

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

INVOCATION
Mayor Matas presented a Certificate of Recognition to Pastor Jerry Johnson, Lily of the Valley Worship Center, for their 64th Anniversary and facility dedication.

Pastor Jerry Johnson gave the Invocation.

PLEDGE OF ALLEGIANCE
Councilmember Pye led the Pledge of Allegiance.

Page 2 of 854 ends

City Council
March 21, 2023

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

APPROVAL OF AGENDA
ACTION: Approve the March 21, 2023, Regular Meeting agenda, and approve the Consent Calendar in its entirety.

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

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

PUBLIC COMMENTS
Emery Lesco spoke regarding his encounter with a lost child.

Tom Moen spoke regarding Highway 62 and Pierson Boulevard.

Paul Scopelitis expressed concerns regarding right-turn only lane at Palm Drive and Pierson Boulevard, and disabled parking accessibility.

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

Nicholas Haecker, Public Works Director, provided an update regarding various Public Works projects.

Roberta Crncic, Recreation and Community Services Director, provided Recreation Center updates and announcements.

MAYOR AND COUNCIL MEMBER REPORTS
Councilmember Betts reported on the various meetings and events he attended.

Councilmember Gardner reported on the various meetings and events he attended.

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

Councilmember Pye reported on the various meetings and events she attended.

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

Page 3 of 854 ends

City Council
March 21, 2023
PUBLIC HEARINGS:

7. Massage Establishment Fees
(Exempt from CEQA per Guidelines Section 15061(b)(3))
Recommendation:
1) Staff Report;
2) Entertain questions of Staff from City Council;
3) Open the Public Hearing;
4) Take public testimony from those in favor;
5) Take public testimony from those opposed;
6) Take public testimony of those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, Adopting the New User Fees Related to Massage Establishments and the Nexus Study Prepared Therefor.

Staff Report - SR-23-043 - Pdf
Christina Newsom, Compliance Director, presented the staff report and responded to questions.

Mayor Matas opened the Public Hearing.

There was no public testimony.

Mayor Matas closed the Public Hearing.

ACTION: Approve Staff recommendation and adopt Resolution No. 2023-006.

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

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

8. 2022 Housing Element Annual Progress Report
Recommendation:

Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, to direct staff to submit the 2022 HCD Housing Element Annual Progress Report (HE APR).

Staff Report - SR-23-063 - Pdf
Travis Clark, Interim Community Development Director, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation and adopt Resolution No. 2023-007.

Page 4 of 854 ends

City Council
March 21, 2023
Moved by Council Member Betts
Seconded by Council Member Gardner
Carried 5-0 by the following votes:

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

9. Hot Springs Park
Recommendation:

Provide direction to Staff on one of the following options:
1) Leave the fence in place and order and install a “coming soon” banner to go on the fence until the Reflection Park project is completed; or 2) Direct the awarded contractor to remove all vertical structures, backfill pools and ponds and remove the construction fence until the Reflection Park project begins.

Staff Report - SR-23-064 - Pdf
Nicholas Haecker, Public Works Director, presented the staff report and responded to questions.

Emory Lusco spoke.

Paul Scopelitis spoke.

Kurt Handshuh spoke.

Tom Moen spoke.

Roger LaGreca spoke.

A discussion ensued.

ACTION: Approve Staff recommendation No. 2): Direct the awarded contractor to remove all vertical structures, backfill pools and ponds and remove the construction fence until the Reflection Park project begins.

Moved by Council Member Pye
Seconded by Council Member Gardner
Carried 4-1 by the following votes:

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

10. Authorize Approval of Banking Services Agreement
Recommendation:

Authorize the City Manager to execute an Agreement, and any other related documents, with Union Bank/US Bank for general banking services for five years

Page 5 of 854 ends

City Council
March 21, 2023
with 2 one year extensions and to take such actions as are necessary to implement and administer the Agreement, and to exercise the available renewal options if in the City’s best interest.

Staff Report - SR-23-061 - Pdf
Geoffrey Buchheim, Administrative Services Director, presented the staff report and responded to questions.

Tom Moen spoke regarding failed banks.

A discussion ensued.

ACTION: Continue the Item to the next meeting and receive analysis from financial advisor.

Moved by Council Member Betts
Seconded by Council Member Pye
DEFEATED. 2-3 by the following votes:

AYES: Betts and Nuñez
NOES: Gardner, Pye, and Matas
ACTION: Approve Staff recommendation.

Moved by Council Member Gardner
Seconded by Mayor Pro Tem Nuñez
Carried 4-1 by the following votes:

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

11. Contract Code Compliance Officer Professional Services Agreement Recommendation:

Authorize the City Manager to execute a Professional Services Agreement between the City and Willdan Engineering, Inc. for Code Compliance Officer services on an as-needed and as-directed basis in an amount not to exceed $300,000; with approval as to form by the City Attorney.

Staff Report - SR-23-059 - Pdf
Christian Newsom, Compliance Director, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation.

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

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

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City Council
March 21, 2023
CONSENT CALENDAR:

12. City Council Regular Meeting Minutes: March 7, 2023 Staff Report - SR-23-065 - Pdf
ACTION: Approve the Minutes as presented.

13. Termination of Local Emergency Related to COVID-19
Staff Report - SR-23-060 - Pdf
ACTION: Approve Staff recommendation and adopt Resolution No. 2023-008:
“A Resolution of the City Council of the City of Desert Hot Springs, California, rescinding Resolution No. 2020-007 declaring a local emergency, and promulgating orders and regulations necessary for the protection of life and property related to COVID-19.

14. Second Reading and Adoption of An Ordinance Amending Operating Hours for Specific Cannabis Facilities (Exempt from CEQA Pursuant to CEQA Guidelines Section 15061 (b)(3))
Staff Report - SR-23-056 - Pdf
ACTION: Approve Second Reading, read by title only and adopt Ordinance No. 775: “An Ordinance of the City Council of the City of Desert Hot Springs, California, Amending Section 5.50.080 “General Operating Requirements” of Chapter 5.50 “Cannabis Businesses”; and Amending Sections 17.180.040 (“Marijuana Storefront Retail Facilities”), 17.180.045 (“Marijuana Non-storefront Retail Facilities”), 17.180.050 (“Marijuana Cultivation Facilities”), 17.180.060 (“Marijuana Manufacturing Facilities”), 17.180.070 (“Marijuana Testing Facilities”), and 17.180.080 (“Marijuana Distribution Facilities”) of the Desert Hot Springs Municipal Code to Update Regulations Regarding Hours of Operation."

15. Second Reading and Adoption of An Ordinance Amending Regulations to Mobile Food Vending Vehicles (Food Trucks) (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3))
Staff Report - SR-23-058 - Pdf
ACTION: Approve Second Reading, read by title only and adopt Ordinance No. 776: "An Ordinance of the City Council of the City of Desert Hot Springs, Amending Chapter 5.52 “Mobile Food Vending Vehicles” of Title 5 “Business Licenses and Regulations” of the Desert Hot Springs Municipal Code."

16. Second Reading and Adoption of An Ordinance to Update Regulations for Transfers of Ownership for Cannabis Businesses (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3))
Staff Report - SR-23-057 - Pdf

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City Council
March 21, 2023
ACTION: Approve Second Reading, read by title only and adopt Ordinance No. 777: “An Ordinance of the City Council of the City of Desert Hot Springs, California Amending Section 5.50 “Cannabis Businesses” of Title 5 “Business Licenses and Regulations” of the Desert Hot Springs Municipal Code in Order to Update Regulations for Transfers of Ownership."

17. Amendment to Professional Services Agreement with Chambers Group, Inc. for On-Call Environmental Services on an As-Needed Basis Staff Report - SR-23-062 - Pdf
ACTION: Approve Staff recommendation to authorize the City Manager to execute an Amendment to the Professional Services Agreement for On-Call Environmental Services with Chambers Group Inc. in the amount of $200,000 for one year with the option of month-to-month extensions; and to authorize the City Manager to execute all necessary agreements, as approved to form by the City Attorney.

PUBLIC COMMENTS
None.

ADJOURN
Mayor Matas adjourned the meeting at 7:55 P.M.

Jerryl Soriano, CMC, City Clerk

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SR-23-043
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 21, 2023
Department: City Manager
Prepared by: Christina Newsom, Compliance Director
Subject: Massage Establishment Fees
(Exempt from CEQA per Guidelines Section 15061(b)(3))
RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from City Council;
3) Open the Public Hearing;
4) Take public testimony from those in favor;
5) Take public testimony from those opposed;
6) Take public testimony of those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, Adopting the New User Fees Related to Massage Establishments and the Nexus Study Prepared Therefor.

BACKGROUND:

The California Constitution allows municipalities to recover reasonable costs borne from providing certain services to certain individuals. The City is permitted to charge fees based on “costs reasonably borne” by the City. However, the fees may not exceed the costs of providing the service. “Costs reasonably borne” is intended to include all appropriations by an entity for the appropriate costs for the continuation of the service over time. This includes ongoing expenses such as operating costs and an allocation for overhead and administration. The types of costs include salaries and wages; employee fringe benefits; maintenance and operations costs; overhead costs; general City and department and/or divisional overhead costs. Without corresponding user fees, these services would be funded by tax revenues. In June 2020, the City adopted its current user fee schedule based on the User Fee Study completed in April 2020.

DISCUSSION:

On November 15, 2022, The City Council approved An Ordinance Repealing and Replacing Chapter

17.160 Massage Establishments of the Desert Hot Springs Municipal Code. Per the new regulations, two fees were to be set by resolution:
• Permit Application Fee
• Permit Amendment Fee

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SR-23-043
New fees need to be added due to new regulations or as the City adds services. The following are proposed fees to be added to the user fee schedule: proposed fees to be added to the user fee schedule:

User Fee Calculation - Massage Establishments
Fully Burdened
Hourly Rate
Calculation
Salary
Hourly Rate
Fringe
Benefits
Maintenance
& Operation
Costs
Overhead
Costs Total
Position 47% 19% 173%
Compliance Director 66.30 30.98 12.39 114.86 224.52
Compliance
Management Analyst 35.12 16.41 6.56 60.84 118.94
Community
Development
Administrative
Assistant II

29.32 13.70 5.48 50.80 99.30
(Percentages for Fringe Benefits, Maintenance & Operations Costs, and Overhead Costs are per the Fully Allocated Hourly Rate Detail Report calculated as part of the user fee study in August 2020)
Massage Establishment Permit Fee
Position
Staff
Time
(in
hours)
Fully Burdened
Hourly Rate Total Cost
Compliance Director 1 224.52 224.52
Compliance Management Analyst 2 118.94 237.87
Community Development
Administrative Assistant II 1 99.3 99.3
Total - This would be the fee amount per permit for full cost recovery
$561.70
Massage Establishment Permit Amendment Fee
Position Staff Time
(in hours)
Fully Burdened
Hourly Rate Total Cost
Compliance Management
Analyst 0.25 118.94 29.73
Community Development
Administrative Assistant II 0.25 99.3 24.83
Total - This would be the fee amount per permit for full cost recovery
$54.56
FISCAL IMPACT:

As these are new fees, the fiscal impact will be an increase in user fee revenues for the City.

Currently the City has 10 massage establishments which will generate over $5,000 in new user fees.

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SR-23-043
ATTACHMENTS:

Exhibit 1 - Resolution

Page 11 of 854 ends

RESOLUTION NO. 2023-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA,

ADOPTING THE NEW USER FEES RELATED TO MASSAGE

ESTABLISHEMENTS AND THE NEXUS STUDY PREPARED

THEREFOR
WHEREAS, the City of Desert Hot Springs has established new rules and regulations for massage establishments, as defined in Chapter 5 of the Desert Hots Springs Municipal Code Code (“DHSMC”); and
WHEREAS, the fees related to massage establishments are needed to cover the City’s costs in administering such regulations; and
WHEREAS, the City wishes to comply with both the letter and the spirit of the California Constitution and limit the growth of taxes; and WHEREAS, the City provides various services related to massage establishments to the public including, but not limited to, processing applications, reviewing plans and maps, issuing permits, etc. (the “Massage Establishment Services”); and
WHEREAS, the City desires to establish a methodology of recovering the costs reasonably borne from providing services as they relate to massage establishments certain other special services, including but not limited to, those concerning park and recreation services, rental of City property, police and fire services, and other miscellaneous City services, of a voluntary or limited nature, such that general taxes are not diverted from general services of a broad nature and thereby utilized unfairly and inequitably for such special services (“City Services”); and WHEREAS, City Council intends to collect fees (the “Fees”) to offset the costs associated with providing the Massage Establishment Services and City Services; and WHEREAS, because some of the Fees are described in Government Code Section 66014, the City is required to hold at least one open and public meeting as well as a general description of the matter to be considered are to be mailed at least 14 days prior to the date of the meeting to those parties (if any) who have filed requests for such notifications; and
WHEREAS, since no requests for such notification were filed with the City, no notices were mailed; and
WHEREAS, data indicating the amount of the estimated cost required to provide the Massage Establishment Services and City Services and the resources anticipated to fund the same were made available to the public at least 10 days prior to the date of this meeting, in accordance with Government Code Section 66016; and WHEREAS, pursuant to Government Code Sections 66016 and 66018, the enactment or increase in any fees to be charged for services must be adopted by the

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City Council by ordinance or resolution, after providing notice and holding a public hearing; and
WHEREAS, pursuant to Government Code Section 66018, the City complied with all notice and hearing requirements thereof; and
WHEREAS, City staff has prepared and presented to the City Council a “User Fee Study for Massage Establishments” dated February 24, 2023 (the “User Fee Study”), a copy of which is attached hereto and incorporated herein by this reference as Exhibit “A”, which details the amount of cost, or estimated cost, required to provide the service for which the fee or service charge is levied and the revenue sources anticipated to provide the service, including General Fund revenues, if any; and, WHEREAS, a duly noticed public hearing before the City Council was held on March 21, 2023, at which public testimony was received and duly considered on the proposed Fees; and
WHEREAS, the amount of the Fees does not exceed the true cost of providing the Massage Establishment Services; and
WHEREAS, the establishment of the fees as set forth in the User Fee Study is not a “project” subject to the California Environmental Quality Act because it is a funding mechanism have no physical effect on the environment.

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. APPROVAL OF USER FEE STUDY
That the City Council hereby approve and adopt the User Fee Study and the fees and charges contained herein.

Section 3. REPEAL OF CONFLICTING PROVISIONS
That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.

Section 4. SEVERABLITY
That if any provisions 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. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

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Section 5. EFFECTIVE DATE
That this Resolution shall take effect upon its adoption and the User Fee Study and the Fees contained therein shall take effect immediately, but the fees therein shall take effect accordance with law.

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

PASSED, APPROVED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this 21st day of March, 2023, by the following vote:

AYES:

NAYES:

ABSENT:

ABSTAIN:

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

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SR-23-063
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 21, 2023
Department: City Council
Prepared by: Travis Clark, Community Development Director Subject: 2022 Housing Element Annual Progress Report
RECOMMENDATION:

Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, to direct staff to submit the 2022 HCD Housing Element Annual Progress Report (HE APR).

BACKGROUND:

The California Department of Housing and Community Development (HCD) requires all jurisdictions in the state to submit a Housing Element Annual Progress Report (HE APR). Using a form provided by HCD, staff provides data to create an overview of housing production for all affordability levels, development applications received, and an update on HCD Program implementation. All jurisdictions in California update their housing elements every eight years according to a state established planning cycle. The current planning cycle is for 2021- 2029.

State law requires cities to update their General Plan Housing Element on an eight year cycle. After the City Council adopted the Housing Element in November, 2022, it was sent to the Department of Housing and Community Development (HCD) for their review and approval. On January 12th, 2023, the City of Desert Hot Springs received approval from HCD for the adopted housing element, finding it in full compliance with State Housing Element Law (Article 10.6 of the Gov. Code).

DISCUSSION:

As required by Government Code Section 65400(b), the Planning Division is required to provide an annual report to the California Department of Housing and Community Development (HCD) and to the Governor’s Office of Planning and Research (OPR) regarding the implementation of the General Plan’s Housing Element and how the City is meeting the regional housing needs for the community. The Housing Element Annual Progress Report (HE APR) is a vital tool for HCD to track and monitoring the City’s progress in addressing the regional housing needs allocation (RHNA). This includes the number of housing units permitted by income level, the status of programs in the Housing Element, and efforts to remove governmental constraints. Attached is the 2023 Housing Element Annual Progress Report for the 2022 calendar year.

In 2022, the City issued building permits for 175 housing units, with 107 units being entitled. In addition, 122 units were completed to the final stage of occupancy. Two applications were submitted for deedrestricted, low income houses by Habitat for Humanity but permits have not yet been issued.

Page 15 of 854 ends

SR-23-063
Staff recommends that the Planning Commission adopt a Resolution of the Planning Commission of the City of Desert Hot Springs, California recommending the City Council to direct staff to submit the 2021 HCD Housing Element Annual Progress Report (Exhibit 2).

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

The state has determined that CEQA does not apply to the approval of ministerial projects. CEQA does not apply to the subject matter of the proposed Housing Element APR since it is not considered a project.

ATTACHMENTS:

Exhibit 1 - CC Resolution for Housing Element Annual Progress Report 03.16.23 Exhibit 2 - HCD Annual Progress Report All Pages

Page 16 of 854 ends

RESOLUTION NO. ___

A RESOLUTION OF THE CITY COUNCIL ADOPT THE HOUSING ELEMENT

ANNUAL PROGRESS REPORT AND FIND IT EXEMPT UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, after a duly noticed public hearing, on May 26, 2020, the City Council adopted and approved a General Plan Update and an amendment to the General Plan Land Use Map to update the General Plan and re-designate several properties in the City, GPA 20-1 (the “General Plan Amendment”); and WHEREAS, pursuant to the California Environmental Quality Act (“CEQA”), Public Resources Code Sections 21000, et seq., and its implementing regulations, California Code of Regulations Section 15000, et seq., (“CEQA Guidelines”), the City, acting as Lead Agency, reviewed and certified a draft Environmental Impact Report (State Clearinghouse number 2019080101) prepared for the proposed General Plan Amendment and determined that, following the implementation of certain mitigated measures; and
WHEREAS, the City adopted the Housing Element for the 6th Cycle; and WHEREAS, state law requires that all general plans contain a housing element, which provides a plan for accommodating future housing production needs; and WHEREAS, state law further requires that all cities create an APR that describes the community’s progress toward implementing their housing element; and WHEREAS, the Housing Element APR must be delivered to the Office of Planning and Research (“OPR”) and HCD; and
WHEREAS, the Housing Element APR fulfills statutory requirements to report certain housing information, including: the local agency’s progress in meeting its share of regional housing needs (i.e., applications, entitlements, permits and certificates of occupancy), certain rezoning activities, actions taken towards completion of housing element programs, and local efforts to remove governmental constraints to the development of housing; and
WHEREAS, California’s housing element law acknowledges that in order for the private market to adequately address the state’s housing needs, local governments must adopt plans and regulatory systems that provide opportunities for housing development; and

Page 17 of 854 ends

WHEREAS, the City is making a diligent effort to engage the public and reach planning goals by having this public meeting before the Planning Commission; and WHEREAS, subsequent to the Planning Commission, the APR will be presented to the City Council; and
WHEREAS, the proposed Housing Element Annual Progress Report has been prepared in accordance with the Government Code, and is attached hereto as Exhibit A, and incorporated herein; and
WHEREAS, the proposed Housing Element Annual Progress Report is categorically exempt from California Environmental Quality Act (“CEQA”), as amended (Section 15306, Information Collection); and
WHEREAS, on March 14, 2023, the Planning Commission of the City conducted a duly noticed public meeting to review the proposed Housing Element Annual Progress Report; and
WHEREAS, the Planning Commission recommended that the City Council adopt this Resolutions; and
WHEREAS, the City Council finds that this Resolution would promote the public interest, health, safety, convenience, or welfare of the City.

NOW, THEREFORE, BE IT RESOLVED 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. CEQA FINDINGS
The City Council finds as follows:

1. The City Council has reviewed and considered the information contained in the record for the APR.

2. Based upon the facts and information contained in the record, including all written and oral evidence presented to the City Council, the City Council finds as follows:
a. The record has been completed in compliance with CEQA, the State CEQA Guidelines; and

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b. The Project is categorically exempt from environmental review pursuant to Section 15306, (Class 6 – Information Collection) of the CEQA Guidelines; and
c. The application of the categorical exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 15300.2; and d. The determination of CEQA exemption reflects the independent judgement of the City Council.

Section 3. ADOPTION BY CITY COUNCIL
The City Councils adopt the Housing Element Annual Progress Report, which is attached hereto as Exhibit “A”, incorporated herein; AND to authorize staff to submit the APR to the Office of Planning and Research and to HCD.

Section 4. SEVERABILITY
That, should any provision, section, paragraph, sentence or word of this resolution 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 Resolution 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 Resolution are hereby repealed.

Section 6. CERTIFICATION
That the City Clerk shall certify to the passage of this Resolution and shall cause the same to be published according to law.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2023 by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Page 19 of 854 ends

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

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EXHIBIT A

HOUSING ELEMENT APR

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Jurisidiction Name
Reporting Calendar YearFirst NameLast NameTitleEmailPhoneStreet AddressCityZipcode 11999 Palm Dr.

Desert Hot Springs
92240
General Information
2022
Desert Hot Springs
Contact Information
Travis
Clark
Community Development Director
[email protected]
7603296411
Mailing Address
Annual Progress Report January 2020

Page 22 of 854 ends

Date
Application
Submitted
Total
Approved
Units by
Project
Total
Disapprove
d Units by
Project
Streamlinin
g
Application
Status Notes
2 34 6 7 8 9 11 12
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Date
Application
Submitted+
(see
instructions)
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome
Non Deed
Restricted
Above
ModerateIncome
Total

PROPOSED
Units by
Project
Total

APPROVED
Units by
project
Total

DISAPPROVED
Units by
Project
Was

APPLICATION

SUBMITTED
Pursuant to
GC
65913.4(b)?
(SB 35
Streamlining)
Ddi the
housing
development
application
seek
incentives or
concessions
pursuant to
Government
Code section
Were
incentives or
concessions
reqested
pursuant to
Government
Code section
65915
approved?
Please
indicate the
status of the
application.

Notes+
Summary Row: Start Data Entry Below #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A 641201001 13260 CACTUS DR., DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐297 SFD O 12/5/2022 1 1 NO NO N/A Approved 638302018 11165 AMBROSIO DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐107 SFD O 7/18/2022 1 1 NO NO N/A Approved638193009 9886 SAN RAFAEL DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐74 SFD O 6/8/2022 1 1 NO NO N/A Approved642231016 67661 KEY WAY, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐102 SFD O 7/7/2022 1 1 NO NO N/A Approved667280008 11631 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐181 SFD O 11/5/2022 1 1 NO NO N/A Approved667280009 11635 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐182 SFD O 11/5/2022 1 1 NO NO N/A Approved667280010 11639 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐183 SFD O 11/5/2022 1 1 NO NO N/A Approved667280037 11640 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐185 SFD O 11/5/2022 1 1 NO NO N/A Approved667280038 11636 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐186 SFD O 11/5/2022 1 1 NO NO N/A Approved667280039 11632 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐187 SFD O 11/5/2022 1 1 NO NO N/A Approved667280040 11628 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐188 SFD O 11/5/2022 1 1 NO NO N/A Approved667280011 11643 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐184 SFD O 11/5/2022 1 1 NO NO N/A Approved667280004 11615 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐189 SFD O 11/5/2022 1 1 NO NO N/A Approved667280006 11623 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐191 SFD O 11/5/2022 1 1 NO NO N/A Approved667280043 11616 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐195 SFD O 11/5/2022 1 1 NO NO N/A Approved667280044 11612 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐196 SFD O 11/5/2022 1 1 NO NO N/A Approved667280042 11620 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐194 SFD O 11/5/2022 1 1 NO NO N/A Approved667280005 11619 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐190 SFD O 11/5/2022 1 1 NO NO N/A Approved667280007 11627 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐192 SFD O 11/5/2022 1 1 NO NO N/A Approved667280041 11624 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐193 SFD O 11/5/2022 1 1 NO NO N/A Approved667270030 11599 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐197 SFD O 11/5/2022 1 1 NO NO N/A Approved667280001 11603 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐198 SFD O 11/5/2022 1 1 NO NO N/A Approved667280002 11607 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐199 SFD O 11/5/2022 1 1 NO NO N/A Approved667280003 11611 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐200 SFD O 11/5/2022 1 1 NO NO N/A Approved667280045 11608 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐201 SFD O 11/5/2022 1 1 NO NO N/A Approved667280046 11604 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐202 SFD O 11/5/2022 1 1 NO NO N/A Approved667280047 11600 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐203 SFD O 11/5/2022 1 1 NO NO N/A Approved667270031 11596 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐204 SFD O 11/5/2022 1 1 NO NO N/A Approved667270026 11585 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐207 SFD O 11/7/2022 1 1 NO NO N/A Approved667270027 11589 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐208 SFD O 11/7/2022 1 1 NO NO N/A Approved667270028 11593 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐209 SFD O 11/7/2022 1 1 NO NO N/A Approved667270029 11597 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐210 SFD O 11/7/2022 1 1 NO NO N/A Approved667270032 11592 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐211 SFD O 11/7/2022 1 1 NO NO N/A Approved667270033 11588 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐212 SFD O 11/7/2022 1 1 NO NO N/A Approved667270034 11584 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐213 SFD O 11/7/2022 1 1 NO NO N/A Approved667270025 11581 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐216 SFD O 11/8/2022 1 1 NO NO N/A Approved667270023 11573 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐214 SFD O 11/8/2022 1 1 NO NO N/A Approved667270024 11577 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐215 SFD O 11/8/2022 1 1 NO NO N/A Approved667270035 11580 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐217 SFD O 11/8/2022 1 1 NO NO N/A Approved667270036 11576 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐218 SFD O 11/8/2022 1 1 NO NO N/A Approved667270037 11572 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐219 SFD O 11/8/2022 1 1 NO NO N/A Approved667270019 11557 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐229 SFD O 11/14/2022 1 1 NO NO N/A Approved667270020 11561 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐231 SFD O 11/15/2022 1 1 NO NO N/A Approved667270021 11565 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐232 SFD O 11/15/2022 1 1 NO NO N/A Approved667270022 11569 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐233 SFD O 11/15/2022 1 1 NO NO N/A Approved667270038 11568 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐234 SFD O 11/15/2022 1 1 NO NO N/A Approved667270039 11564 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐235 SFD O 11/15/2022 1 1 NO NO N/A Approved667270040 11560 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐236 SFD O 11/15/2022 1 1 NO NO N/A Approved667270011 62672 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐237 SFD O 11/15/2022 1 1 NO NO N/A Approved667270012 62668 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐238 SFD O 11/15/2022 1 1 NO NO N/A Approved667270013 62662 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐239 SFD O 11/15/2022 1 1 NO NO N/A Approved667270014 62658 N CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐240 SFD O 11/15/2022 1 1 NO NO N/A Approved667270015 62652 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐241 SFD O 11/15/2022 1 1 NO NO N/A Approved667270016 62648 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐242 SFD O 11/15/2022 1 1 NO NO N/A Approved667270017 62651 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐243 SFD O 11/15/2022 1 1 NO NO N/A Approved667270018 62659 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐244 SFD O 11/15/2022 1 1 NO NO N/A Approved667270007 62692 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐247 SFD O 11/15/2022 1 1 NO NO N/A Approved667270008 62688 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐248 SFD O 11/15/2022 1 1 NO NO N/A Approved667270009 62682 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐249 SFD O 11/15/2022 1 1 NO NO N/A Approved667270010 62678 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐250 SFD O 11/15/2022 1 1 NO NO N/A Approved667270001 62722 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐251 SFD O 11/15/2022 1 1 NO NO N/A Approved667270005 62702 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐252 SFD O 11/15/2022 1 1 NO NO N/A Approved667270006 62698 CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE BLDR‐22‐253 SFD O 11/15/2022 1 1 NO NO N/A Approved 639231042 66238 1ST, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐55 SFD O 4/5/2022 1 1 NO NO N/A Approved 642032019 12305 POMELO DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐174 SFD O 10/12/2022 1 1 NO NO N/A Approved638294004 10768 Pomelo Dr., Desert Hot Springs, CA 92240 IN FILL NSFR‐22‐18 SFD O 1/19/2022 1 1 NO NO N/A Approved641172020 66947 GRANADA AVE., Desert Hot Springs, CA 92240 IN FILL NSFR‐22‐16 SFD O 1/13/2022 1 1 NO NO N/A Approved638091007 9175 CALLE DEL DIABLO, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐299 SFD O 12/6/2022 1 1 NO NO N/A Approved639051001 10191 CACTUS DR., DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐335 SFD O 12/20/2022 1 1 NO NO N/A Approved639041031 10223 CACTUS DR., DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐334 SFD O 12/20/2022 1 1 NO NO N/A Approved641132040 66750 Desert View Avenue, Desert Hot Springs, CA 92240 IN FILL NSFR‐22‐26 SFD O 2/16/2022 1 1 NO NO N/A Approved Table A
1 5
Project Identifier Unit Types Proposed Units - Affordability by Household Incomes Density Bonus Law Applications 10 Housing Development Applications Submitted

Page 23 of 854 ends

639041001 66313 MISSION LAKES BLVD, DESERT HOT SPRINGS, CA 92240

HABITAT FOR
HUMANITY NSFR‐22‐132
SFD O
8/1/2022 1 1 NO NO N/A Approved
656080016 0 NO STREET, CA 00000 RANCHO DESCANSO NSFR‐22‐59 SFD O 4/19/2022 76 76 NO NO N/A Approved 641091011 66353 FLORA AVE, DESERT HOT SPRINGS, CA 92240

HABITAT FOR
HUMANITY NSFR‐22‐131
SFD O
8/1/2022 1 1 NO NO N/A Approved
665154009 65613 Sycamore Rd., Desert Hot Springs, CA 92240 IN FILL NSFR‐22‐19 SFD O 1/25/2022 1 1 NO NO N/A Approved663344002 13236 DEL RAY LN, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐100 SFD O 6/27/2022 1 1 NO NO N/A Approved663311008 65845 BUENA VISTA AVE, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐99 SFD O 6/27/2022 1 1 NO NO N/A Approved639072010 10920 SANTA CRUZ RD, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐98 SFD O 6/27/2022 1 1 NO NO N/A Approved642206007 67845 ALAMEDA DR., UNIT 1 & 2, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐308 2 to 4 O 4/19/2022 2 2 NO NO N/A Approved641223001 13710 CUYAMACA DR., DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐309 SFD O 4/19/2022 1 1 NO NO N/A Approved642206008 67855 ALAMEDA DR., UNIT 1 & 2, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐311 2 to 4 O 12/8/2022 2 2 NO NO N/A Approved642206009 67865 ALAMEDA DR., UNIT 1 & 2, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐312 2 to 4 O 12/8/2022 2 2 NO NO N/A Approved642206010 67875 ALAMEDA DR., UNIT 1 & 2, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐313 2 to 4 O 12/8/2022 2 2 NO NO N/A Approved641223002 13680 CUYAMACA DR., DESERT HOT SPRINGS, A 92240 IN FILL BLDR‐22‐329 SFD O 12/19/2022 1 1 NO NO N/A Approved664290033 11573 BALD EAGLE LN, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐245 SFD O 11/15/2022 1 1 NO NO N/A Approved641081016 66415 DESERT VIEW AVE, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐321 2 to 4 O 12/13/2022 3 3 NO NO N/A Approved641311026 13680 MARK DR., Unit 1 & 2, Desert Hot Springs, CA 92240 IN FILL NSFR‐22‐22 2 to 4 O 1/27/2022 2 2 NO NO N/A Approved667270048 11599 KITETAIL DR., Desert Hot Springs, CA 92240 SKYBORNE NSFR‐22‐13 SFD O 1/5/2022 1 1 NO NO N/A Approved667280015 11659 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐149 SFD O 8/4/2022 1 1 NO NO N/A Approved667280036 11644 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐148 SFD O 8/2/2022 1 1 NO NO N/A Approved667280035 11648 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐147 SFD O 8/2/2022 1 1 NO NO N/A Approved667280034 11652 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐146 SFD O 8/2/2022 1 1 NO NO N/A Approved667280033 11656 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐145 SFD O 8/2/2022 1 1 NO NO N/A Approved667280032 11660 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐144 SFD O 8/2/2022 1 1 NO NO N/A Approved667280014 11655 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐143 SFD O 8/2/2022 1 1 NO NO N/A Approved667280013 11651 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐142 SFD O 8/2/2022 1 1 NO NO N/A Approved667280012 11647 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐141 SFD O 8/2/2022 1 1 NO NO N/A Approved667280031 11664 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐140 SFD O 8/2/2022 1 1 NO NO N/A Approved667280030 11668 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐139 SFD O 8/2/2022 1 1 NO NO N/A Approved667280029 11672 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐138 SFD O 8/2/2022 1 1 NO NO N/A Approved667280028 11676 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐137 SFD O 8/2/2022 1 1 NO NO N/A Approved667280019 11675 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐136 SFD O 8/2/2022 1 1 NO NO N/A Approved667280018 11671 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐135 SFD O 8/2/2022 1 1 NO NO N/A Approved667280017 11667 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐134 SFD O 8/2/2022 1 1 NO NO N/A Approved667280016 11663 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐133 SFD O 8/2/2022 1 1 NO NO N/A Approved667280024 11695 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐89 SFD O 6/10/2022 1 1 NO NO N/A Approved667280070 11854 E CRESCENT ST, DESERT HOT SPRINGS, CA 92240 SKYBORNE NSFR‐22‐83 SFD O 6/10/2022 1 1 NO NO N/A Approved644152010 68225 CALLE AZTECA, DESERT HOT SPRINIGS, CA 92240 IN FILL BLDR‐22‐156 SFD O 12/1/2022 1 1 NO NO N/A Approved641234011 13945 RAMONA DR., DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐164 SFD O 10/27/2022 1 1 NO NO N/A Approved644301021 13828 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI BLDR‐22‐264 SFD O 11/18/2022 1 1 NO NO N/A Approved638185006 66788 CASA GRANDE DR., DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐282 SFD O 11/26/2022 1 1 NO NO N/A Approved638161019 9543 VISTA DEL VALLE, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐283 SFD O 11/26/2022 1 1 NO NO N/A Approved641292006 13704 SARITA DR., DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐324 2 to 4 O 12/14/2022 2 2 NO NO N/A Approved641321021 13900 VERBENA DR., UNIT 1 & 2, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐337 2 to 4 O 12/21/2022 2 2 NO NO N/A Approved644294005 13860 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐127 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644294004 13856 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐126 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644294003 13852 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐125 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644294002 13848 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐124 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644294001 13844 SCENIC CREST DR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐123 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644304003 13840 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐122 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644304002 13836 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐121 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644304001 68645 RIDGE CREST WAY, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐120 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644293007 13853 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐119 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644293006 13849 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐118 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644293005 13845 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐117 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644303006 13841 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐116 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644303005 13837 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐115 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644303004 13833 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐114 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644301018 13816 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐113 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644301017 13812 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐112 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644301016 13808 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐111 2 to 4 O 7/26/2022 2 2 NO NO N/A Approved644301020 13824 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐109 2 to 4 O 7/20/2022 2 2 NO NO N/A Approved644301019 13820 SCENIC CREST CIR, DESERT HOT SPRINGS, CA 92240 PALARI NSFR‐22‐108 2 to 4 O 7/20/2022 2 2 NO NO N/A Approved644301021 13828 Scenic Crest Circle, Desert Hot Springs, CA 92240 PALARI NSFR‐22‐31 2 to 4 O 3/14/2022 2 2 NO NO N/A Approved642225001 67340 MONTERY RD., DESERT HOT SPRINGS, CA 92240 PALARI BLDR‐22‐354 SFD O 12/22/2022 1 1 NO NO N/A Approved642231015 67630 KEY WAY, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐355 SFD O 12/22/2022 1 1 NO NO N/A Approved642102010 12795 CASA LOMA RD, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐162 SFD O 9/7/2022 1 1 NO NO N/A Approved642184014 67737 HACIENDA DR, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐356 SFD O 12/23/2022 1 1 NO NO N/A Approved644065006 12633 CALLE AMAPOLA, DESERT HOT SPRINGS, CA 92240 IN FILL BLDR‐22‐265 SFD O 11/18/2022 1 1 NO NO N/A Approved641201007 13120 CACTUS DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐159 SFD O 8/25/2022 1 1 NO NO N/A Approved641252016 13826 CALIENTE DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐158 SFD O 8/25/2022 1 1 NO NO N/A Approved638142030 66120 MISSION LAKES, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐157 SFD O 8/25/2022 1 1 NO NO N/A Approved641162047 66776 FLORA AVE, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐155 SFD O 8/12/2022 1 1 NO NO N/A Approved663373016 13635 DEL RAY LN, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐154 SFD O 8/12/2022 1 1 NO NO N/A Approved641231006 13900 WEST DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐153 SFD O 8/12/2022 1 1 NO NO N/A Approved642192012 13483 CUANDO WAY, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐152 SFD O 8/12/2022 1 1 NO NO N/A Approved642192003 13354 AGUA CAYENDO RD, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐151 SFD O 8/12/2022 1 1 NO NO N/A Approved639081011 10655 SAN PABLO RD, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐150 SFD O 8/11/2022 1 1 NO NO N/A Approved641194009 13427 RAMONA DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐130 SFD O 8/1/2022 1 1 NO NO N/A Approved638203007 9858 VALPARAISO DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐104 SFD O 7/11/2022 1 1 NO NO N/A Approved638203010 66820 MISSION LAKES BLVD, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐103 SFD O 7/11/2022 1 1 NO NO N/A Approved641032005 66049 CAHUILA AVE, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐96 2 to 4 O 6/27/2022 3 3 NO NO N/A Approved641241015 13855 LA MESA DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐73 SFD O 6/8/2022 1 1 NO NO N/A Approved641031032 66162 CAHUILLA AVE, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐68 2 to 4 O 5/27/2022 3 3 NO NO N/A Approved641253028 13868 LA MESA, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐63 SFD O 5/4/2022 1 1 NO NO N/A Approved641031022 66211 BUENA VISTA AVE, Desert Hot Springs, CA 92240 IN FILL NSFR‐22‐62 SFD O 5/3/2022 1 1 NO NO N/A Approved639153014 66715 PINTO WAY, Unit 1 & 2, Desert Hot Springs, CA 92240 IN FILL NSFR‐22‐61 2 to 4 O 5/3/2022 2 2 NO NO N/A Approved641065024 66176 FLORA AVE, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐54 SFD O 3/22/2022 1 1 NO NO N/A Approved

Page 24 of 854 ends

641194008 13490 JULIAN DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐129 SFD O 8/1/2022 1 1 NO NO N/A Approved 641092011 66367 GRANADA AVE, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐72 SFD O 6/7/2022 1 1 NO NO N/A Approved639053017 66340 12TH STREET, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐173 SFD O 10/12/2022 1 1 NO NO N/A Approved639192013 66125 5TH ST, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐172 SFD O 10/5/2022 1 1 NO NO N/A Approved639125004 66907 San Carlos, Desert Hot Springs, CA 92240 IN FILL NSFR‐22‐28 SFD O 2/24/2022 1 1 NO NO N/A Approved638292010 10825 AMBROSIO DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐165 SFD O 9/26/2022 1 1 NO NO N/A Approved641304017 66660 TWO BUNCH PALMS TRL, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐105 SFD O 7/11/2022 1 1 NO NO N/A Approved663372009 13600 EL RIO LN, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐101 SFD O 7/1/2022 1 1 NO NO N/A Approved641232001 13740 SANTA YSABEL, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐161 SFD O 9/6/2022 1 1 NO NO N/A Approved641312003 66785 IRONWOOD DR., UNIT 1 & 2, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐94 2 to 4 O 6/20/2022 2 2 NO NO N/A Approved638203008 9890 VALPARAISO DR, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐84 SFD O 6/10/2022 1 1 NO NO N/A Approved644175001 13300 CALLE AMAPOLA, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐70 SFD O 6/3/2022 1 1 NO NO N/A Approved642253016 13787 INAJA ST, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐66 SFD O 5/20/2022 1 1 NO NO N/A Approved639201033 66348 7TH, DESERT HOT SPRINGS, CA 92240 IN FILL NSFR‐22‐60 SFD O 4/25/2022 1 1 NO NO N/A Approved642125014 12981 Cuando Way, Desert Hot Springs, CA 92240 IN FILL NSFR‐22‐57 SFD O 4/14/2022 1 1 NO NO N/A Approved641081028 66434 ESTRELLA AVE., DESERT HOT SPRINGS, CA 92240 ADU RADD‐22‐9 ADU O 10/12/2022 1 1 NO NO N/A Approved641032004 66041  CAHUILLA AVE., DESERT HOT SPRINGS, CA 92240 ADU BLDR‐22‐51 ADU O 6/28/2022 1 1 NO NO N/A Approved641261006 13229 OCOTILLO RD., DESERT HOT SPRINGS, CA 92240 ADU BLDR‐22‐75 ADU O 8/16/2022 1 1 NO NO N/A Approved663341008 13100 CHOLLA DR., DESERT HOT SPRINGS, CA 92240 ADU BLDR‐22‐2211 ADU O 11/8/2022 1 1 NO NO N/A Approved

Page 25 of 854 ends

Jurisdiction Desert Hot Springs ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 6th Cycle 10/15/2021 - 10/15/2029
Table A2
Streamlining Infill
Housing without
Financial Assistance or
Deed Restrictions
Term of
Affordability or
Deed Restriction
Notes
23 56 89 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID+ Unit Category (SFA,SFD,2 to 4,5+,ADU,MH) Tenure R=Renter O=Owner Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Entitlement Date Approved # of Units issued Entitlements Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Building Permits Date Issued # of Units Issued Building Permits Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Certificates of Occupancy or other forms of readiness (see instructions) Date Issued # of Units issued Certificates of Occupancy or other forms of readiness How many of the units were Extremely Low Income?+ Was Project APPROVED using GC 65913.4(b)? (SB 35 Streamlining) Y/N Infill Units? Y/N+ Assistance Programs for Each Development (may select multiple - see instructions) Deed Restriction Type (may select multiple - see instructions) For units affordable without financial assistance or deed restrictions, explain how the locality determined the units were affordable (see instructions) Term of Affordability or Deed Restriction (years) (if affordable in perpetuity enter 1000)+ Number of Demolished/Des troyed Units Demolished or Destroyed Units Demolished/De stroyed Units Owner or Renter Total Density Bonus Applied to the Project (Percentage Increase in Total Allowable Units or Total Maximum Allowable Residential Gross Floor Area) Number of Other Incentives, Concessions, Waivers, or Other Modifications Given to the Project (Excluding Parking Waivers or Parking Reductions)
List the incentives,
concessions,
waivers, and
modifications
(Excluding Parking
Waivers or Parking
Modifications)
Did the project receive a
reduction or waiver of
parking standards? (Y/N)
Notes+
Summary Row: Start Data Entry Below 0 0 0 0 0 107 0 107 0 0 0 0 0 175 0 175 0 0 0 1 0 119 2 122 0 0 53 15 0 641132040 66750 Desert View Avenue, Desert Hot Springs, CA 92240

IN FILL
NSFR-22-26
SFD O 1
2/16/2022 1
1 7/26/2022
1 00 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
641294014 13815 Sarita Dr., Unit 1 & 2, Desert Hot Springs, CA 92240

IN FILL
NSFR-21-71
2 to 4 O 2
7/1/2021 2
2 4/14/2022
2 00 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
641294004 13615 Sarita Dr., Unit 1 & 2, Desert Hot Springs, CA 92240

IN FILL
NSFR-21-70
2 to 4 O 2
7/1/2021 2
2 4/14/2022
2 00 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
641311026 13680 MARK DR., Unit 1 & 2, Desert Hot Springs, CA 92240

IN FILL
NSFR-22-22
2 to 4 O 2
1/27/2022 2
2 8/4/2022
2 00 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
641253009 13695 CALIENTE DR., Desert Hot Springs, CA 92240

IN FILL
NSFR-21-41
SFD O 1
6/8/2021 1
1 3/7/2022
1 00 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
642193018 13456 Cerrita Way, Desert Hot Springs, CA 92240

IN FILL
NSFR-21-154
SFD O 1
8/19/2021 1
1 1/13/2022
1 00 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
641172020 66947 GRANADA AVE., Desert Hot Springs, CA 92240

IN FILL
NSFR-22-16
SFD O 1
1/13/2022 1
1 2/25/2022
1 00 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
661490026 65363 AVENIDA DORADO, DESERT HOT SPRINGS, CA 92240

IN FILL
NSFR-21-209
SFD O 1
11/19/2021 1
1 6/22/2022
1 00 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
641065024 66176 FLORA AVE, DESERT HOT SPRINGS, CA 92240

IN FILL
NSFR-22-54
SFD O 1
3/22/2022 1
1 10/11/2022
1 00 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
641091039 66330 GRANADA AVE., Desert Hot Springs, CA 92240

IN FILL
NSFR-21-219
SFD O 1
12/13/2021 1
1 3/30/2022
1 1 8/30/2022 1 0 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
638191011 9896 PALM DRIVE, Desert Hot Springs, CA 92240

IN FILL
NSFR-21-218
SFD O 1
12/13/2021 1
1 4/6/2022
1 1 9/19/2022 1 0 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
638084018 9450 WEST DR, Desert Hot Springs, CA 92240

IN FILL
NSFR-21-217
SFD O 1
12/13/2021 1
1 4/26/2022
1 1 9/19/2022 1 0 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
642203003 13320 HIDALGO ST., DESERT HOT SPRINGS, CA 92240

IN FILL
NSFR-21-216
SFD O 1
12/13/2021 1
1 6/7/2022
1 00 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
638191003 9738 PALM DRIVE, Desert Hot Springs, CA 92240

IN FILL
NSFR-21-133
SFD O 1
8/5/2021 1
1 1/12/2022
1 1 8/9/2022 1 0 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
638191002 9726 PALM DRIVE, Desert Hot Springs, CA 92240

IN FILL
NSFR-21-131
SFD O 1
8/5/2021 1
1 1/12/2022
1 1 6/30/2022 1 0 N Y
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280015 11659 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-149
SFD O 1
8/4/2022 1
1 9/20/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280036 11644 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-148
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280035 11648 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-147
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280034 11652 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-146
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280033 11656 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-145
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280032 11660 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-144
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280014 11655 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-143
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280013 11651 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-142
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280012 11647 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-141
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280031 11664 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-140
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280030 11668 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-139
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280029 11672 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-138
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280028 11676 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-137
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280019 11675 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-136
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280018 11671 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-135
SFD O 1
8/2/2022 1
1 9/19/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280017 11667 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-134
SFD O 1
8/2/2022 1
1 8/23/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280016 11663 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-133
SFD O 1
8/2/2022 1
1 8/23/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280027 11680 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-92
SFD O 1
6/10/2022 1
1 8/23/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280026 11686 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-91
SFD O 1
6/10/2022 1
1 8/23/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280025 11699 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-90
SFD O 1
6/10/2022 1
1 8/23/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280024 11695 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-89
SFD O 1
6/10/2022 1
1 8/23/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280023 11691 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-88
SFD O 1
6/10/2022 1
1 8/23/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280022 11689 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-87
SFD O 1
6/10/2022 1
1 8/23/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280021 11683 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-86
SFD O 1
6/10/2022 1
1 8/23/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280020 11679 S CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-85
SFD O 1
6/10/2022 1
1 8/23/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280070 11854 E CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-83
SFD O 1
6/10/2022 1
1 8/23/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280069 11860 E CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-82
SFD O 1
6/10/2022 1
1 7/18/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280068 11866 E CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-81
SFD O 1
6/10/2022 1
1 7/18/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280067 11872 E CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-80
SFD O 1
6/10/2022 1
1 7/18/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280066 11878 E CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-79
SFD O 1
6/10/2022 1
1 7/18/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280065 11884 E CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-78
SFD O 1
6/10/2022 1
1 7/18/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280064 11890 E CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-77
SFD O 1
6/10/2022 1
1 7/18/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280063 11875 E CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-76
SFD O 1
6/10/2022 1
1 7/18/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280062 11869 E CRESCENT ST, DESERT HOT SPRINGS, CA 92240

SKYBORNE
NSFR-22-75
SFD O 1
6/10/2022 1
1 7/18/2022
1 00 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280073 11652 SKY POINTE DR., Desert Hot Springs, CA 92240

SKYBORNE
NSFR-22-52
SFD O 1
3/21/2022 1
1 5/16/2022
1 1 12/19/2022 1 0 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280072 11658 SKY POINTE DR., Desert Hot Springs, CA 92240

SKYBORNE
NSFR-22-51
SFD O 1
3/21/2022 1
1 5/16/2022
1 1 12/15/2022 1 0 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280060 11669 SKY POINTE DR., Desert Hot Springs, CA 92240

SKYBORNE
NSFR-22-49
SFD O 1
3/21/2022 1
1 5/16/2022
1 1 12/15/2022 1 0 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280059 11663 SKY POINTE DR., Desert Hot Springs, CA 92240

SKYBORNE
NSFR-22-48
SFD O 1
3/21/2022 1
1 5/16/2022
1 1 12/12/2022 1 0 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280058 11659 SKY POINTE DR., Desert Hot Springs, CA 92240

SKYBORNE
NSFR-22-47
SFD O 1
3/21/2022 1
1 5/16/2022
1 1 12/13/2022 1 0 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280057 11653 SKY POINTE DR., Desert Hot Springs, CA 92240

SKYBORNE
NSFR-22-46
SFD O 1
3/21/2022 1
1 5/16/2022
1 1 12/19/2022 1 0 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280056 11649 SKY POINTE DR., Desert Hot Springs, CA 92240

SKYBORNE
NSFR-22-45
SFD O 1
3/21/2022 1
1 5/16/2022
1 1 12/13/2022 1 0 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280075 11642 SKY POINTE DR., Desert Hot Springs, CA 92240

SKYBORNE
NSFR-22-41
SFD O 1
3/21/2022 1
1 5/16/2022
1 1 11/17/2022 1 0 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
667280074 11648 SKY POINTE DR., Desert Hot Springs, CA 92240

SKYBORNE
NSFR-22-53
SFD O 1
3/21/2022 1
1 5/16/2022
1 1 12/15/2022 1 0 N N
Estimated value of home meets
standards for moderate income
using HCD affordability calculator
Note: "+" indicates an optional field
Housing with Financial Assistance
and/or Deed Restrictions Project Identifier Demolished/Destroyed Units Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units Density Bonus
1 Unit Types Affordability by Household Incomes - Completed Entitlement Affordability by Household Incomes - Building Permits Affordability by Household Incomes - Certificates of Occupancy 4 7 10

Page 26 of 854 ends

1 Projection Period 34
RHNA Allocation by
Income Level
Projection Period -
06/30/2021-
10/14/2021
2021 2022 2023 2024 2025 2026 2027 2028 2029 Total Units to Date (all years) Total Remaining RHNA by Income Level Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted 12 57 175 - - - - - - -
Above Moderate 2,081 - - - - - - - - - - - 2,081
3,873
12 57 175 - - - - - - - 244 3,629
5 67
Extremely low-Income
Need 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total Units to Date Total Units Remaining 285 - - - - - - - - - - 285
535
Total RHNA
Total Units
Income Level
Very LowLowExtremely Low-Income Units*
Progress toward extremely low-income housing need, as determined pursuant to Government Code 65583(a)(1). 444
-
244
Moderate
569 535 688
-
2 Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
569

Page 27 of 854 ends

Jurisdiction Desert Hot Springs
Reporting Year 2022 (Jan. 1 - Dec. 31)
123
4 Name of Pro
gram Objective Timeframe in H.E Status of Pro
gram Im
plementation
Program 1.1, Sites Development Program
Facilitate the development of the sites identified in the sites inventory that will accommodate the City’s share of the regional housing need.

Implement the sites development program continuously through the 2021-2029 planning period.

Not Completed
Program 1.2, No Net Loss Program
Develop and maintain a no net loss evaluation procedure.

Within six months of adoption of the 2021-2029 Housing Element, develop and implement a formal ongoing evaluation procedure pursuant to Government Code section 65863.

Not Completed
Program 2.1, Section 8 Housing Choice Voucher Program
Provide assistance to at least 400 extremely low- and very low-income households, an increase of 30 households from the September 2021 fi gure.

Implementation throughout the 2021-2029 planning period The City of Desert Hot Springs has established a Residential Beautification Program that would allow for residents to obtain assistance to repair their home. The City of Desert Hot Springs is devloping a draft Housing Choice Voucher program that aligns with the other various housing programs being developed in 2023.

Program 2.2, First Time Homebuyer Program
First Time Homebuyer Assistance to eight (one per year) buyers purchasing homes in Desert Hot Springs.

Ongoing throughout the 2021-2029 8-year planning period The City of Desert Hot Springs is working on a draft Homebuyers Assistance program. Staff has been meeting with housing non-profits to identify the best program for the Desert Hot Springs community. This program will be taken to Council for approval after this is established in 2023.

Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation

Page 28 of 854 ends

Program 2.3, Affordable
Housing Incentives Program
Use of affordable housing incentives by private developers which will be reported in the Annual Progress Report, and coordination with the Lift to Rise Regional Plan.

Implementation throughout the planning period. Meet with developers at least once a year with technical assistance and information dissemination. Conduct pre-application conferences and on a caseby-case basis.

The City established an incentive program to reduce impact fees in a defined Discount Zone. Staff has met with and continues to meet with developers interested in affordable housing. These meetings are free of charge and allow for the developer to get questions answered on potnential affordable housing sites. Some of the developers are; Palm Communities, Riv Co Engineering, and Diamond Construction.

Program 2.4, Regional Plan for Development of 2,000 Affordable Housing Units 200 affordable housing units (10% of the 2,000 sub-regional total) Transmit sites information to the Coachella Valley Housing Coalition (CVHC). Work with the CVHC to identify one or more affordable housing proposals. Implementation within the 2021-2029 planning period Staff is currently in talks with CVHC in establishing more affordable housing as well as a first time homebuyer program.

Program 2.5, Area Agency on Aging Outreach Pro
gram
Complete outreach and City support
One-year from adoption of the 2021-2029 Housing Element No Completed
Program 3.1 Zoning Ordinance Update (LEAP Grant)
Completion of the Zoning Ordinance Update per the LEAP Grant Schedule Completion by June 2023 The City recceived an extension from HCD to complete this activity by December, 2023 Program 3.2, Increase Community Awareness of the Reasonable Accommodation Procedure Complete preparation of the application 2021-2029 Planning Perio d Brochure distributed and posted in 2022 in both English and Spanish; Outreach and brochure distribution annually throughout the planning period.

Program 3.3, ADU Incentives
Implementation of ADU incentives Program
Information packet within 6 months of adoption. Implement throughout the 2021-2029 planning period The pre-designed ADUs are almost finshied passing the Building and Safety review. Afterwards, the City will conduct a workshop in both English and Spanish

Page 29 of 854 ends

on the application process.

Program 3.4, SB 35
Streamlining Information
Implementation of SB 35 streamlining ministerial approval process Information packet availability by December 2021
Not Completed
Program 3.5, Government Code Section 65940.1
Complete the assessment and add information as necessary Six months from adoption Complete. Zoning, design, and development standards are found under Community Development. All fee infromation can be found under Administrative Services
Program 4.1, Housing Code Enforcement
The City will continue providing ongoing
inspection services to review code violations with an objective of 250 housing cases per year. 2021-2029 Planning Period
The Code Complaince Department resolved 636 code violations in 2022. The City of Desert Hot Springs has established a Residential Beautification Program that would allow for residents to obtain assistance to repair their home.

Program 4.2 Homeowner Housing Rehabilitation Program
Eight homes rehabilitated through the County’s program during the 2021-2029 planning period. 1 home annually through the 2021-2029 planning period
The City of Desert Hot Springs has established a Residential Beautification Program that would allow for residents to obtain assistance to repair their home. The nubmer of homes that are being evaluated in the identifed areas that need assistance will be more than 8 homes and will be launched in 2023.

Program 4.3, Abandoned Residential Property Re
gistration
Abandoned properties as they occur 2021-2029 Planning Period The Code Complaince resolved 661 code infractions affecting residential properties in 2022 Program 5.1, Fair Housing Services Program
Website: public counter posting of fair housing resources within six months of adoption of the 2021-2019 Housing Element. Other actions to be accomplished and implemented on an on goin
g basis as needed.

Six months from adoption then 2021-2029 Planning Period as needed Brochures posted in English and Spanish in 2022.

Program 5.2, Affirmative Fair Housing Marketing Plan
Develop the Affirmative Fair Housing Marketing Plan within six months of adoption of the 2021-2029 Housing Element Work with affordable housing developers to implement the Marketing Plan throughout the 8-year planning period.

Not Completed
Program 5.3, Poverty Reduction Program
Post information on the Community Action Partnership, American Rescue Plan, and safety net programs within six months of adoption of the 2021-2029 Housing Element. 2021-2029 Planning Period No Completed

Page 30 of 854 ends

Program 5.4, Place-Based
Neighborhood Poverty Reduction Program
To start delivery of services in neighborhood pockets of poverty within one year of adoption of the 2021-2029 Housing Element.

One year from adoption for project development and implementation throughout the 2021-2029 Plannin g Period
Not Completed
Program 5.5, Mobility Strategies Program
Post maps and information within six months of adoption of the 2021-2029 Housing Element. Establish a working relation with Housing Authority staff within six months of adoption of the 2021-2029 Housing Element. 2021-2029 Planning Period Not Completed
Program 5.6, Displacement Risk Program
Post information within six months of adoption of the 2021-2029 Housing Element. Establish a working relation with Housing Authority, FHCRC, and Lift to Rise within six months of adoption of the 2021-2029 Housing Element.

Six months from adoption Not Completed
Program 5.7, Bilingual Assistance on Development and Housing Processes Provide translation for housing and development processes, post translated materials within a year of adoption of the 2021-2029 Housing Element, and provide ongoing bilingual assistance as re quested.

Establish programs and processes by December 2022. Implement throughout 2021-2029 Planning Period The City has appointed Erick Becerril as Housing and Community Program Manager. Erick is fluent in English and Spanish. In addition, the City has permit technicians who are also bilingual.

Program 5.8, Accessibility of Development and Housing Processes Host workshops on housing and development processes within a year of adoption of the 2021-2029 Housing Element, and evaluate participation and progress for continued implementation.

Establish programs and processes by December 2022. Implement throughout 2021-2029 Planning Period Not Completed
Program 5.9 Place-based Strategies for R/ECAP Improvements Assist 10 households annually in the R/ECAP areas.

Recruitment of residents, January 2023 and annually as positions are open for application.

Not Completed

Page 31 of 854 ends

Jurisdiction Desert Hot Springs
Reporting Year 2022 (Jan. 1 - Dec. 31)Planning Period 6th Cycle 10/15/2021 - 10/15/2029 Current Year
Deed Restricted
0 Non-Deed Restricted
0 Deed Restricted
0 Non-Deed Restricted
0 Deed Restricted
0 Non-Deed Restricted 175
0 175
Units by Structure Type Entitled Permitted CompletedSFA 0 0 0SFD 73 130 1192 to 4 34 44 25+ 0 0 0ADU 0 1 1MH 0 0 0Total 107 175 122 0 #N/A#N/A
Income Level
Very Low
Low
Moderate
Above Moderate
Total Housing Applications Submitted:Number of Proposed Units in All Applications Received:Total Housing Units Approved:Total UnitsHousing Applications SummaryNote: Units serving extremely low-income households are included in the very low-income permitted units totals Building Permits Issued by Affordability Summary

Page 32 of 854 ends

#N/A
0 #N/A
#N/A
0 Income Rental Ownership Total
Very Low 0 00Low 0 00Moderate 0 00Above Moderate 0 00Total 0 00Units Constructed - SB 35 Streamlining PermitsNumber of Streamlining Applications ApprovedTotal Developments Approved with StreamliningTotal Units Constructed with StreamliningTotal Housing Units Disapproved:Use of SB 35 Streamlining ProvisionsNumber of Applications for Streamlining

Page 33 of 854 ends

Total Award Amount Total award amount is auto‐populated based on amounts entered in rows 15‐26.

Task $ Amount Awarded $ Cumulative Reimbursement Requested Other Funding Notes Update all development standards $90,000.00 $33,442.50 None Review draft Development Code $20,000.00 $0.00 None
Ensure compliance with State Legislation $10,000.00 $0.00 None Ensure CEQA Compliance $10,000.00 $0.00 None
Conduct Public Hearing/Appeals Process $5,000.00 $0.00 None Conduct Public Outreach and Participation $15,000.00 $0.00 None Adopt Updates to Municipal Code $0.00 $0.00 None
Summary of entitlements, building permits, and certificates of occupancy (auto‐populated from Table A2) Current Year
Deed Restricted 0Non-Deed Restricted 0Deed Restricted 0Non-Deed Restricted 0Deed Restricted 0Non-Deed Restricted 107 0 107
Current Year
Deed Restricted 0Non-Deed Restricted 0Deed Restricted 0Non-Deed Restricted 0Deed Restricted 0Non-Deed Restricted 175 0 175
Current Year
Deed Restricted 0Non-Deed Restricted 0Deed Restricted 0Non-Deed Restricted 1Deed Restricted 0Non-Deed Restricted 119 2 122
Moderate
Above Moderate
Total Units
Completed Entitlement Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low
Total Units
Certificate of Occupancy Issued by Affordability Summary Income Level
Very Low
Low
Moderate
Above Moderate
In ProgressIn ProgressIn ProgressIn Progress
ANNUAL ELEMENT PROGRESS REPORT
Local Early Action Planning (LEAP) Reporting
(CCR Title 25 §6202)
In Progress
Please update the status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in Section 50515.02 or 50515.03, as applicable.
$                                                               150,000.00 Task Status
In ProgressIn Progress

Page 34 of 854 ends

SR-23-064
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 21, 2023
Department: Public Works
Prepared by: Nicholas Haecker, Public Works Director
Subject: Hot Springs Park
RECOMMENDATION:

Provide direction to Staff on one of the following options:
1) Leave the fence in place and order and install a “coming soon” banner to go on the fence until the Reflection Park project is completed; or
2) Direct the awarded contractor to remove all vertical structures, backfill pools and ponds and remove the construction fence until the Reflection Park project begins.

BACKGROUND:

In 1994, the City of Desert Hot Springs (“City”) and Desert Hot Springs Real Properties, Inc. (“Seller”) executed a Purchase and Sale Agreement, for the parcel located on the northwest corner of Palm Drive and 8th Street, in the amount of forty thousand dollars ($40,000). In the Purchase and Sale Agreement there are various conditions that were required by both parties. In general, the Seller sold the lots to the City and the City was to develop a “Hot Springs Park” at the northwest corner of Palm Drive and 8th Street next to the Desert Hot Springs Spa Hotel. This Purchase and Sale Agreement is the only fully executed agreement that is on record between the City and Desert Hot Springs Real Properties, Inc. for this property. As such, the City is the sole legal owner of the parcel. A lawsuit has been filed by Desert Hot Springs Real Properties, Inc contesting the ownership of the parcel and other matters.

On July 1, 2000, a Maintenance Agreement between the City and Desert Hot Springs Real Properties, Inc. for the maintenance and operation of Hot Springs Park was drafted. There is no record of a fully executed agreement nor is there a record of this item ever being brought forward to the City Council for consideration.

At some time between 2000 and 2009, there was a purported verbal understanding between the City and the representatives of the adjacent hotel, the Desert Hot Springs Spa Hotel, for the maintenance of Hot Springs Park. The verbal understanding was for the hotel to maintain Hot Springs Park.

In 2019, the City received complaints about the safety and condition of Hot Springs Park. Public safety complaints consisted of used drug paraphernalia, broken glass bottles, human urine and feces, people bathing in the pool water, vandalism and graffiti. Most complaints were caused due to general lack of maintenance, stolen pump equipment, broken irrigation equipment and un-maintained landscaping.

After no maintenance was done for some time by the adjacent hotel and the safety issues continued to increase, the City and their contractor resumed maintenance of Hot Springs Park.

Page 35 of 854 ends

SR-23-064
In an effort to improve the conditions of Hot Springs Park and replace park features that were not properly working and were causing safety concerns, Staff drafted a grant application seeking park funding. On December 3, 2019, City Council approved the rehabilitation of Hot Springs Park into Reflection Park and authorized City Staff to submit a grant application for Community Development Block Grant funding for the design and construction of Reflection Park. The consensus in the community and verified by the 2013 Parks Master Plan is that existing parks were not capable of fulfilling all the needs of the community and thus new facilities should be planned and constructed.

On January 31, 2022, Public Works contracted to have a construction fence installed around the perimeter of the approved future site of Reflection Park. The installation of the fence was to limit access to the future construction site and limit extra maintenance cost due to continued vandalism and vagrancy related issues.

On January 31, 2022, City Staff received an email from a representative of the hotels, asking for an update on the poles for fencing in Hot Springs Park and the impact it will have on the hotels busiest months.

On February 1, 2022, City Staff met with the hotel representative of the Desert Hot Springs Spa Hotel to discuss the potential impact of the Reflection Park Project and the Palm Drive North Project. Staff reviewed the schedule of both projects and sent an email with the rendered images of Reflection Park per the hotel representative’s request. Staff informed the hotel representative that there will be no construction of Reflection Park (Hot Springs Park) until after the completion of the Palm Drive North project and explained that the City was working on securing more funding to complete construction of phase 1 and phase 2 of the park at the same time. Staff also informed the hotel representative of the reasons why the construction fencing was installed.

On November 30, 2022, City Staff met with the hotel representative about Reflection Park. At this meeting, the hotel representative wanted the fencing taken down. City Staff presented two options as a compromise. Option 1 was to leave the fencing in place and install a “coming soon” banner to go across the fencing in anticipation of the construction of Reflection Park. Option 2 was to remove any vertical structures within the park, backfill all pools and ponds and then remove the fencing. All vertical structures and pools and ponds were already scheduled to be removed and replaced as part of the Reflection Park project. At the meeting it was agreed that the hotel representative would provide an answer to the City, on which option was preferred.

On December 6, 2022, City Staff received an email and voice mail confirming the hotel representatives’ option on how the City should proceed. The hotel representative requested the City to proceed with the fence removal and demolition of the vertical structures at the park.

On December 6, 2022, City Council approved the second phase of Reflection Park and authorized City Staff to submit a grant application for Community Development Block Grant funding for construction.

Both phases of Reflection Park were approved for funding through Community Development Block Grant.

On December 15, 2022, Public Works finalized a contract to remove all vertical structures within the park and remove the construction fencing.

Page 36 of 854 ends

SR-23-064
On January 10, 2023, City Staff notified the hotel representative of the demolition schedule. On January 11, 2023, City Staff received an email confirming that the hotel representative agreed with the construction starting on January 23, 2023.

On January 18, 2023, City Staff received an email from the hotel representative instructing the City to cancel the demolition of the vertical structures and cancel the removal of the fencing around the park.

City Staff received a letter from the hotel’s attorney requesting the City not to start the demolition of the vertical structures and cancel the removal of the fencing around the park until the City received permission from the hotel. The City did not start the demolition per the request of the hotel.

FISCAL IMPACT:

The City continues maintenance at Reflection Park. Maintenance includes landscaping, irrigation, tree trimming, debris clean up and removal of nuisance water in the fountains and pools. The City has incurred the cost for the new design of the park, the fencing of the park and the demolition of the vertical structures of the park. The architectural design costs totaled $60,232.90, in addition to completing the design the City has secured $456,110.00 funds from Community Development Block Grant funds for the rehabilitation of the Reflection Park.

ATTACHMENTS:

Exhibit 1 - Agreement of Purchase and Sale
Exhibit 2 - Maintenance Agreement
Exhibit 3 - Fence Installation Quote and Invoice
Exhibit 4 - Email: Removal of Fence and Demolition of Hot Springs Park.msg Exhibit 5 - Contract to Remove Fencing and Vertical Structures

Page 37 of 854 ends

RUH54173

AGREEMENT F PURCHASE A SALE
THIS AGREEMENT is entered into by and among the CITY OF DESERT HOT SPRINGS ("City") , the REDEVELOPMENT AGENCY or THE CITY or DESERT HOT SPRINGS ("RDA") , and DESERT HOT SPRINGSREAL PROPERTIES, INC., a California corporation ("Seller").

RECITALB
A. Seller owns certainureal property located within the City of Desert Hot Springs that includes lots 41, 42, 68 and the northerIy.52 feet of lot 49, the southerly 52 feet of lot 50 on which the Spa Hotel and. adjacent. parking are located ("Spa Property"); and lots 45, 46, 47, 48 and 49 located between the Spa Property and Palm Drive, which are currently vacant and unimproved except for the northerly 52 feet of lot 49 which is improved as the entrance to the Spa Hotel, all as more particularly described in Exhibit "A", attached hereto.

B. The City and RDA desire to develop a "Hot Water Park" on the easterly portion of lots 45, 46, 47, 48 and 49, excluding the northerly 52 feet of lot 49, as more particularly described in Exhibit "B" attached hereto (“Sale Property"). The Hot Water Park is anticipated to include water features, interpretive displays and landscaped areas. The RDA and City anticipate that the Hot Water Park will substantially improve the spa/Hotel District and will attract tourism to that District and the City as a whole. RDA desires to purchase the Sale Property in order to develop the Hot Water Park which will subsequently be transferred to the City.

C. The Seller desires to sell the sale Property at belowmarket price to RDA to facilitate development of the Hot Water Park, which Seller anticipates will increase the desirability and value of the Spa Property.

D.» The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Sale Property.

AGREEMENT
The parties therefore agree as follows:
1 . PURCHASE
RDA agrees to buy and Seller agrees to sell and convey
the Sale Property for the Purchase Price, as defined herein, and upon the terms and conditions hereinafter set forth,
2 . ESCROW
RDA will establish an escrow with an escrow company of
RDA's choice ("Escrow Holder") for the purpose of consummating the purchase and sale of the Sale Property as described herein. The

Page 38 of 854 ends

RHH54173
parties hereto shall execute and deliver to Escrow Holder such escrow instructions prepared by Escrow Holder as may be required to consummate the transaction contemplated by this Agreement. Any such instructions shall not conflict with, amend, or supersede any provisions of this Agreement. If there is any inconsistency between such instructions and this Agreement, this Agreement shall control unless the parties expressly agree in writing otherwise.

The escrow instructions shall include the following terms and conditions of sale: A

2.1 Purchase Price
- The total purchase price ("Purchase Price") for the
Sale Property shall be the lump sum of Forty Thousand Dollars ($40,000.00). The Purchase Price shall be paid by the RDA to Seller through Escrow Holder in cash at close of Escrow. RDA shall deposit prior to Close of Escrow the funds to be deposited by RDA in order to allow escrow to close.

2.2 Close of Escrow
Escrow shall close on or before thirty (30) days
following execution of this Agreement ("close of Escrow"). If escrow is not in a condition to close by the close of Escrow, any party who is not in default may, in writing, demand the return of its money and] or documents. Thereupon, all obligations and liabilities of the parties under this Agreement shall cease and terminate. If no such demand is made, then escrow shall be closed as soon as possible.

2.3 Condition of Title
Seller shall cause the conveyance of title to the
Sale Property to RDA as evidenced by a CLTA standard Form Policy or Binder of Title Insurance ("Title Policy") (order No. 543312-30) issued by Chicago Title Company ("Title Company") in an amount equal to the purchase price. The Title Policy shall show as exceptions with respect to the Sale Property only matters approved in writing by RDA. Except for street or other improvement assessments, if any, any exceptions to title representing monetary liens or encumbrances are hereby disapproved by RDA, and Escrow Holder is hereby authorized and instructed to cause the reconveyance, partial reconveyance, or subordination, as the case may be, of any such monetary exceptions to RDA's title to the Sale Property at or prior to the close of Escrow.

Escrow and Qlosing Costs

2.4.1 RDA shall pay the cost of the Title
Policy, the escrow fees, and all recording costs and other costs and expenses incurred herein. All parties acknowledge that RDA is exempt from payment of documentary transfer taxes.

2.4

Page 39 of 854 ends

2.5 Deposit of Funds apd Documents

2.5.1 Prior to close of escrow, RDA shall
deposit into escrow (i) all escrow and closing costs as described above; (ii) the purchase price to be paid to Seller through escrow; and (iii) such other documentation as is necessary to close escrow.

2.5.2. Prior to the Close of Escrow, seller shall
deposit into escrow (i) the properly executed grant deed for conveyance of the Sale Property to RDA, a copy of which is attached hereto as Exhibit "C"; and (ii) such other documents and sums, if any, as _are necessary to close escrow in conformance herewith.

2.5.3 As shown on grant deed,_ Exhibit "C"
attached hereto, the grant deed shall include the following reversionary interest in Seller:
"Title to the property to revert to grantor,
its successors or assigns, if any of the
following events occurs:
(a) the property is used for a primary purpose
other than a public park within 25 years of
the date of this deed;
(b) grantee, its successors or assigns, fails
to construct park improvements in the value of
at least $150,000.00 on or before December 31,
1995, unless prevented from doing so by
circumstances beyond grantee's or its
successors‘ or assigns‘ control;
(c) for the period of twenty-five (25) years
after the date of the deed, grantee, its
successors or assigns, fails to provide for
maintenance and operation of park improvements
in a neat, orderly manner consistent with
municipal maintenance of parks in the
Coachella Valley for a continuous period of
six (6) months, after written notice by
grantor, its successors or assigns, of such
failure, unless the failure to maintain the
park is due to circumstances beyond grantee's,
its successors‘ or assigns‘ control.

The power of termination created hereby can
only be exercised upon payment to grantee by
the person or entity exercising the power of
termination of an amount equal to $40,000.00
minus $1,000.00 for every month that elapses
between the recordation of this deed and the
occurrence that justifies the exercise of the
power of termination.
12141154173 "3 '

Page 40 of 854 ends

RHHSMTS
Grantor retains all water rights, including without limitation, underground hot water.

2.6 3QA's Condition gregegegt to Qlgse of gscgow
The Close of Escrow is subject to the following
conditions:

2.6.1 All representations and warranties of
Seller set forth in this Agreement shall be true and correct as of the date of the Close of Escrow.
— 2 .6 .2 Seller shall timely perform all
obligations required by the terms of this Agreement to be performed by Seller.

2.7 Seller's Conditions Precedent to close of Escrow
For the benefit of Seller, the Close of Escrow shall
be conditioned upon the timely performance by RDA of all RDA's obligations required by the terms of this Agreement.

3. ADDITIONALAGREEMENTS

3.1 City and RDA shall not develop their own hot water
supply for the Hot Water Park, but shall contract with the owner of the Spa Property to provide hot water, or in the alternative, shall connect to the municipal water supply.

3.2 city shall provide a facility for disposal of excess water, if any, or contract with the owner of the spa Property for such disposal.

3.3 Maintenance and operation of the Hot Water Park may be provided by City or by contractor. Nothing in this Agreement shall prevent Seller or any related entity from competing for any such contract, or from performing any such contract if it is a successful bidder.

3.4 seller retains the right to perform routine
maintenance of the sale Property and Hot Water Park at no obligation to City or RDA as long as seller's efforts in that regard are in accordance with city's maintenance standards and procedures and do not interfere with City's maintenance efforts.

3.5 For all purposes of zoning, planning and land use or other regulation where the area of land is a factor (e.g. , density, lot coverage, setbacks) with respect to the spa Property, the Sale Property may, at the option of the owner of the spa Property, be added to the area of the Spa Property to determine the total area to be considered.

Page 41 of 854 ends

aun5_1.17s
‘including,

3.6 Within 180 days of close of escrow, City will, at
its sole expense, process a lot line adjustment to merge the remaining, untransferred portions of lots 45, 46, 47, 48 and 49 into the Spa Property. ‘

3.7 To the extent reasonably possible, RDA will solicit and incorporate Seller's comments regarding the design of the Hot Water Park. However, RDA and City retain final discretion to approve or disapprove alldesigns.

3.8 No building or habitable structure will be erected
on the Sale Property without the prior written approval of the Spa Hotel owner.

4. REPRESENTATIONS AND WARRANTIES OF SELLER
Seller makes the following representations and warranties with respect to the sale Property, each of which shall survive Close of Escrow:

4.1 Litigation. To Seller's knowledge, no litigation
and no governmental, administrative or regulatory act or proceeding regarding the environmental, health and safety aspects of the Sale Property is pending, proposed or threatened;

4.2 Further. Encumbrances. Seller will not enter into
any agreements or undertake any new obligations prior to close of Escrow which will in any way burden, encumber or otherwise affect the sale Property without the prior written consent of RDA; and

4.3 Hazardous Materials. According to Seller's actual,
current knowledge, the property and any contiguous real property owned by Seller is not in violation of any federal, state or local statute, regulation or ordinance relating to industrial hygiene or to environmental conditions on, under or about the property, without limitation, soil and groundwater conditions
underlying the property that could affect the Sale Property or their use or development, and except for usual and normal practices in the operation of a first class hotel, such as the normal use of pesticides, herbicides, cleaning materials, pool maintenance materials, fuel and oil for powered maintenance tools and machinery, and materials of like and similar nature, and the storage of such materials incidental to such usual and normal usage, neither Seller nor any other person or predecessor in interest have used, generated, manufactured, stored or disposed of on, under or about the property or transported to or from the property any flammable materials, explosives, radioactive materials, hazardous or contaminated materials or substances, toxic or noxious materials, substances or related materials or substances ("hazardous materials") . For the purpose of this section, hazardous materials shall include, without limitation, substances defined as "hazardous substances," "hazardous materials ," "toxic substances, " "hazardous wastes,“ “extremely hazardous wastes, " or "restricted hazardous wastes," or stated to be known to cause -5-

Page 42 of 854 ends

RHH54173
cancer or reproductive toxicity, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. sections 9601, _et_§_gg.; the Hazardous Materials Transportation Act, 49 U.S.C. sections 1801, __e_t;_§gg.; the Resource Conservation and Recovery Act, 42 U.s.c. sections 6901, gt s_e;q.,- the Federal Water Pollution Control Act, 33 U.S.C. sections 1317, _e_1_:_ 5%; sections 25115, 25117, 25122.7, 25140, 25249.5, 25249.8, 25281, 25316 or 25501 of the California Health & Safety Code; or any substances so defined or stated in any of the regulations adopted and publications promulgated pursuant to said laws as they may be amended from time to time. ‘
‘-4.4 Taxes. Seller has and shall have paid before Close of Escrow all taxes and assessments levied and assessed against the Sale Property and the larger parcels of which the Sale Property is a part. If not paid prior to Close of Escrow, Seller hereby authorizes Escrow Holder to disburse to the taxing authority from funds otherwise due to Seller an amount sufficient to discharge said taxes and/or assessments. Taxes and assessments levied and assessed against the Sale Property shall be prorated as of the date of close of escrow.

5. ACKNOWLEDGEMENTOF FULL BENEFITS AND RELEASE

5.1 Full Payment. By execution of this Agreement,
Seller, on behalf of itself, Seller's heirs, executors, administrators, successors and assigns, hereby acknowledges that this Agreement provides full payment for the acquisition of the sale Property by RDA, and Seller hereby expressly and
unconditionally waives any claim for damages, relocation assistance benefits, interest, loss of goodwill, severance damages, claims for inverse condemnation or unreasonable precondemnation conduct, or any other compensation or benefits other than as already expressly provided for in this Agreement, it being understood that this is a complete and full settlement of all acquisition claims, liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the Sale Property. 6 . RQEDIES
If Seller defaults under this Agreement, then RDA may, at RDA's option, terminate the escrow or initiate an action for specific performance of this Agreement, in addition to pursuing any other rights or’ remedies that RDA may have at law or in equity. ’ If RDA defaults under this Agreement, then seller may, at Seller's option, terminate the escrow or pursue any rights or remedies that Seller may have at law or in equity.
7 . MI§CELI-ANEQUS

7.1 uotige. Any notice to be given or other document or documents to be delivered to either party by the other hereunder may be delivered in person or may be deposited in the United States -6-

Page 43 of 854 ends

RHI-I541T5
Mail in the State of California, duly registered or certified, with postage prepaid, and addressed as follows:

DESERT HOT SPRINGS REAL PROPERTIES,
INC.
10805 Palm Drive ' Desert Hot Springs, CA 92240
Seller:

City and RDA: City Manager
city of Desert Hot Springs
65950 Pierson Blvd.

Desert Hot Springs, CA 92240
Any notice or other document sent by registered or
certified mail as aforesaid shall be deemed to have been effectively served or delivered at the expiration of twenty—four (24) hours following the deposit of said notice or other document in the United States mail.

7.2 i'I'ime of Essence. Time is of the essence with
respect to each and every provision hereof.
7 .3 Assignmen . Neither this Agreement, nor any
interest herein, shall be assignable by any party without prior written consent of the other parties.

7.4 govegn-ing La . All questionswith respect to this
Agreement, and the rights and liabilities of the parties hereto, shall be governed by the laws of the State of California.

7.5 Inurement. Subject to the restrictions against
assignment as herein contained, this Agreement shall inure to the benefit of, and shall be binding upon, the assigns, successors in interest, personal representatives, estates, heirs and legatees of each of the parties hereto.
7 .6 Attorney Fees. In the event of any controversy,
claim or dispute between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorney fees and costs.

7.7. Entire Agreement. This Agreement contains the
entire Agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein.

7.8 Agditignal Dgcuments. All parties hereto agree to
execute any and all additional documents and instruments necessary to carry out the terms of this Agreement.
..-7..

Page 44 of 854 ends

RHH5/9173
Seller.

7.9 _No Merger. All warranties, representations,
acknowledgments, releases, covenants and obligations contained in this Agreement shall survive delivery and recordation of the Sale Property. R

7.10 Authority to Negotiate and Execute on Behalf of
Michael Bickford represents and warrants to RDA and City that he is authorized by Desert Hot Springs Real Properties, Inc., to negotiate this Agreement on its behalf. Freéesisk—¥H—4ha?ab represents and warrants to RDA and City that.he is the president of Desert got Springs Real Properties, Inc. and that he is authorized by said corporation to execute this Agreement on its behalf.

7.11 . This Agreement may he signed in
counterpart or duplicate copies, and any signed counterpart or duplicate copy shall be equivalent to a signed original for all purposes. V

CITY OF DESERT HOT SPRINGS
K MIKE sEcRIsTiMAYO%a ; A

THE RDA OF THE CITY OF

DESERT HOT SPRINGS
MIKE SEGRISTECHAIé%§§ :

DESERT nor SPRINGS REAL
PROPERTIES, INC.

Title:

Page 45 of 854 ends

PAH53934
EXHIBIT "A"

DESCRIPTION OF REAL PROPERTY
Tract 2639, as shown by Map on file in Book 47, Pages 94 and 95 o Maps, in the Office of the County Recorder of Riverside County, State on California to include the following described lots;
Lots 68, 41, 42, 45, 46, 47, 48, the southerly 65 feet of Lot 49 the Northerly 52 feet of Lot 49, and the southerly 52 feet of Lot 50.

Together with that portion of the alley lying adjacent with saio land as vacated by a resolution recorded October 3, 1986 as InstrumenNo. 245035; official records.

Page 46 of 854 ends

'° nxnnsrr "3"
All that portion of Lots 45, 46, 47, 48 and 49 Tract No. 2639 as recordedin Map Book 47, Pages 94 and 95, Records of
Riverside County, described as follows:

Commencing at the Northeast corner of Lot 49 of Said
Tract No. 2639;
Thence South 00°06'15" Bast along the east line of
said Lot 49, a distance of 60.00 feet to the true
point of beginning; 3 ThenceSouth 89°58'30" West and parallel to the North line of said Lot 49, a distance of 60.00 feet;
Thence South 00°06'15" East and parallel to the east
line of said.Lot 49, a distance of 57.00 feet to the
south line of said Lot 49;
Thence North 89°58'30" East along said south line of
Lot 49 and the north line of Lot 48, a distance of

20.00 feet;
Thence South 00°06'15" East and parallel to the east
line of Lots 48, 47, 46 and 45, a distance of 235.01
to a point that is 70.00 feet northerly of the south
line of said Lot 45;
Thence South 89°53'30" West and parallel to the
south line of said Lot 45, a distance of 30.00 feet;
Thence South 00°06'15" East and parallel to the east
line of said Lot 45, a distance of 70.00 feet to the
south line of said Lot 45;
Thence North 89°53'30" East along the south line of
said Lot 45, a distance of 67.90 feet to the
beginning of a non tangent curve concave
northwesterly having a radius of 25.00 feet, a
radial bearing passes through said curve hears south
66°26'49" east;
Thence Northeasterly along said curve and lot line
through a central angle of 23°39'26" and a length of

10.32 feet;
Thence Northerly along the easterly line of said
Lots 45, 46, 47, 48 and 49, a distance of 351.98
feet to the true point of beginning.

PAHS393-’o

Page 47 of 854 ends

RECORDINGREQUESTED BY
AND WHEN RECORDED MAIL TO:

CITY OF DESERT E01‘ BPRINGB
ATTENTION: CITY CLERK
65950 Pierson Blvd.

Desert Hot Springs, CA 92240
Space above thisline for Recorders Use
THE UNDERSIGNED GRANTOR DECLARES:

Documentary Transfer Tax is $
Computed on the full Value of the interest or propert
conveyed, or is
Computed on the full value less the value of liens oencumbrances remaining thereon at the time of sale.

FOR VALUABLE CONSIDERHTION,the receipt of which is hereby acknowledged, DESERT HOT SPRINGS REAL PROPERTIES, INC. hereby GRANTS to th REDEVELOPMENT AGENCY OF THE CITY OF DESERT HOT SPRINGS the followin ‘described real property in the county of Riverside, state of California:

All that portion of Lots 45, 46, 47, 48 and 49 Tract No. 2639 _as recorded in Map Book 47, Pages 94 and 95, Records of Riverside County, described as follows:

Commencingat the Northeast corner of Lot 49 of Said
Tract No. 2639;
Thence South 00°06'15" East along the east line of
said Lot 49, a distance of 60.00 feet to the true
point of beginning;
Thence South 89°58'30" West and parallel to the
North line of said not 49, a distance of 60.00 feet;
Thence South 00°06'15" East and parallel to the east
line of said Lot 49, a distance of 57.00 feet to the
south line of said Lot 49;
Thence North 89°58'30" East.a1ong said south line of
Lot 49 and the north line of Lot 48, a distance of

20.00 feet;
PAM53934

Page 48 of 854 ends

Thence South 00°06'15" East and parallel to the east
line of Lots 48, 47, 46 and 45, a distance of 235.01
to a point that is 70.00 feet northerly of the south
line of said Lot 45;
Thence South 89°53'30" West and parallel to the
south line of said Lot 45, a distance of 30.00 feet;
Thence south 00°06'15" East and parallel to the east
line of said Lot 45, a distance of 70.00 feet to the
south line of said Lot 45;
Thence North‘ 89°53'30" East along the south line of
said Lot 45, a distance of 67.90 feet to the
beginning of a non tangent curve concave
northwesterly having a radius of 25.00 feet, a
radial bearing passes through said curve bears south
66°26'49" east;
Thence Northeasterly along said curve and lot line
through a central angle of 23°39'26" and a length of

10.32 feet;
Thence Northerly along the easterly line of said
Lots 45, 46, 47, 48 and 49, a distance of 351.98
feet to the true point of beginning.

The following reversionary interest shall remain with Grantor:
"Title to the property to revert to grantor, its successors or assigns, if any of the following events occurs:
a. The property is used for a primary purpose other than a public park within 25 years of the date of this deed; b. Grantee, its successors or assigns, fails to
construct park improvements in the value of at least
$150,000.00 on or before December 31, 1995, unless prevented from doing so by circumstances beyond grantee's or its
successors‘ or assigns‘ control;
c. For the period of twenty-five (25) years after the
date of the deed, grantee, its successors or assigns, fails to provide for maintenance and operation of park improvements in a neat, orderly manner consistent with municipal maintenance of parks in the Coachella Valley for a continuous period of six (6) months, after written notice by grantor, its successors or assigns, of such failure, unless the failure to maintain the park is due to circumstances beyond grantee's, its successors‘ or assigns‘ control.

The power of termination created hereby canonly be
exercised upon payment to grantee by the person or entity exercising the power of termination of an amount equal to $40,000.00 minus $1,000.00 for every month that elapses between

Page 49 of 854 ends

‘ the recordation of this deed and the occurrence that justifies the exercise of the power of termination.

Grantor retains all water rights, including without
limitation, underground hot water.
0 SPRINGS REAL PROPERTIES, INC.

Dated= DES ~
/
'
,/
sure or cauroma )
‘ 3
comm or /ZN/1/sell/(JJ
4’ on 1” J7[ , 1996, before m,( , a Notary Public in and for said state, peraonall appeared n V; I3 , m o me(or proved to me on the basis of satisfactory evidence to be the rsonw) whose cs) is/ace stbscribed to the within instrunent and acknowledged to me that he/she/t » executed the same in hi-s/her/their authorized capacity?eo-)-, and that by ll-i-s/herlthei-rsignature;/é) on the instru-nent the person(§6, or the entity (pen behalf of sdnich the pcrson(s) acted, executed the instruaent. i ‘ COLLEENJ. MCOI. I
:2 . _-. COMM.#962282
mm.mx S1’ was 10: §
x
' .
'
. "°*°'V

RIVERSIDE
"Ub"¢-California

COUNTY E
city of Desert Hot springs l
W" *
» Myc°mm'E'°l'°’ MAR25-1995[
65950 Pierson Blvd.

Desert hot springs, CA 92260
88 UITNESSmy hand and official seal.

PAHS3936

Page 50 of 854 ends

AGREEMENT BETWEEN THE CITY OF DESERT HOT SPRINGS.

THE REDEVELOPMENTAGENCYOF THE CITY OF DESERT HOT
SPRINGS AND DESERT HOT SPRINGS REAL PROPERTIES, INC.

FOR THE MAINTENANCE AND OPERATION OF HOT SPRINGS PARK
THIS AGREEMENT is made between the City of Desert Hot Spr'ngs [“C1ty"]. the Redevelopment Agency of the City of Desert Hot Springs [”RDA"] and Desert Hot Springs Real Properties. Inc. ["Real Properties"], and is effective as of July 1, 2000, if executed on or before that date, or on the date of its execution if signed after July 1, 2000.

The purpose of this agreement is to provide for the ongoing upkeep. maintenance and operation of Hot Springs’Park located at Palm Drive and Eighth Street in Desert Hot Springs. California.

This agreement is based on the following recitals of fact:

1. Hot Springs Park was created to provide an aesthetic setting for water features to exemplify and provide information about the natural hot water resources of Desert Hot Springs. to promote tourism. and to provide recreational and educational benefits for the citizens of and visitors to Desert Hot Springs.

2. Hot Springs Park consists of two distinct parts: (A) A portion purchased by RDA. fronting on Palm Drive and on Eighth Street. improved with water features. hardscape and other permanent improvements ["RDA Property"]; and (B) a portion owned by Real Properties. situated between the RDA Property and the adjacent hotel. also owned by Real Properties. which portion is improved with landscaping. six parking spaces and sidewalk for access to the RDA property ["Buf£er Zone"]. -

3. The rights and obligations of the parties in and to the RDA property are delineated in a document entitled "Agreement of Purchase and Sale" and in a deed dated August 4, 1994. by which Real Properties conveyed the described property to RDA.

4. The rights and obligations of the parties in and to the Buffer Zone. prior to the execution of this agreement. are delineated in an unrecorded and undated document executed in November. 1994. entitled “Agreement for Security, Hot water and Easements". The parties intend by this agreement to cancel and rescind said "Agreement for Security. Hot Water and Easements“, in exchange for the granting by Real Properties to CITY of a permanent. recordable easement for six parking spaces on property owned by Real Properties. together with pedestrian access from said six parking spaces to the RDA Property.

5. CITY and RDA have experienced administrative difficulties in continuing upkeep. maintenance and operation of Hot Springs Park.

6. Real Properties has an economic interest in assuring that Hot Springs Park is kept up, maintained and operated in a proper manner. and has offered to take over such upkeep. maintenance and operation at no cost to CITY or RDA.

Page 51 of 854 ends

‘ the recordation of this deed and the occurrence that justifies the exercise of the power of termination.

Grantor retains all water rights, including without
limitation, underground hot water.

DEsmSPRINGS REAL PROPERTIES, INC.

Dated: Qéggg_(f[272 48;, *
/ /

STATE OF CALIFQNHIA
couomor Qua/5.Lb
I /
- on 1” ‘ll , 1994, before 1:12.65!/[U11 J- A/‘C43/, a Notary Public in and for said state, peraonall )
) 33
I
appeared n H /3 , w o me (or proved to meon the basis of satisfactory evidence to be the rsonls’) whose 08) is/are suascribed to the uithin instrument and acknoul$d to me that he/she/t - exetutedthe same in his/her/their authorized capacitv?es-)', and that by his/her/their signeturapé) on the instrument the person(;6, or the entity tpon behalf of uhich the person(s) acted, executed the instruuent.

HITNESS my hand and official seal.
-
o mvznsuos coumv ~*
'
e MVCOMM-Emilee MAR25.1995 city of Desert Hot springs
65950 Pierson Blvd.

Desert Hot Springs, CA 92240
P81453934

Page 52 of 854 ends

BASED ON THE FOREGOING RECITALS AND ON THE MUTUALuPROMISES STATED HEREIN. the partis agree as follows:

1. Real Properties agrees to assume the obligation of upkeep. maintenance and operation of Hot Springs Park as of July 1. 2000, and continuing thereafter until termination of this agreement. and to do so in a good and workmanlike manner, as it would -maintain and operate its own property. to standards not less than those typical of the maintenance and operation of municipal parks in the City of Desert Hot Springs. Such maintenance and operation shall include. withoot limitation. general cleaning. litter removal. pruning, trimming and mowing of shrubs and grass, maintenance and operation of pumps and water features. and payment of all utilities necessary therefor.

2. Real Properties agrees to continue to make the RDA Property portion of Hot Springs Park available to the public in a similarmanner and to_the same extent as CITY and RDA have made it available during the five years next preceding the effective date of this agreement. No admission fees shall be charged to the public for entry into the RDA Property portion of Hot Springs Park. User fees may be charged to persons using Hot Springs Park for commercial purposes.

3. Real Properties will consult with CITY before making any substantial changes. improvements or modifications of the configuration or operation of the RDA Property portion of Hot Springs Park.

4. Real Properties agrees to make no substantial changes in the configuration or operation of the Buffer Zone portion of Hot Springs Park for a period of one year from the effective date of this agreement. After July 1. 2001, or such later date as shall be the first anniversary of the effective date of this agreement,.

Ral Properties may make such use of the Buffer Zone property as ‘Real Properties. in its sole discretion, shall decide. subject only to zoning and building regulations in effect at the inception of this agreement. and to the terms of the parking and access easement hereinafter described.

5. As used in this agreement the term "operation" means full operational control. including without thereby limiting. establishing or changing of hours of opening and closing. the granting or denial of permission to hold organized events in Hot Springs Park [as distinguished from casual recreatiional or tourist types of use]. control of photo shoots, street fairs. arts or craft shows and other commercial or similar activities.

Any income derived from any permitted commercial or similar activities shall be retained by Real Properties to contribute toward the cost of upkeep. maintenance and operation of Hot Springs Park.

6. Real Properties agrees to grant to CITY and/or to RDA an easement for six parking spaces located on property owned by Real Properties. together with pedestrian access from such parking spaces to the RDA Property portion of Hot Springs Park. Such parking spaces and pedestrian access may consist of the existing six parking spaces and sidewalk located in the Buffer Zone’ portion of Hot Springs Park.,or may. at the discretion of Real \

Page 53 of 854 ends

Properties. be located elsewhere on property owned by Real Properties. provided that the same are within 300 feet.of the RDA Property.

CITY AND RDA AGREE to relinquish to Real Properties, as of July

1. 2000 and continuing until termination of this agreement. full operational control of Hot Springs Park, together with the obligation of upkeep and maintenance thereof.

CITY and RDA will make available to Real Properties, for use in upkeep. maintenance and operation of Hot Springs Park. any equipment. pumps. parts or other supplies which they may have on hand, acquired for the purpose of upkeep, maintenance. repairs or operation of Hot Springs Park. CITY and/or RDA will also make available to Real Properties. for use in upkeep. maintenance or operation of Hot Springs Park, the services of persons assigned to CITY or RDA for Community Service. provided the same can be done at no expense to CITY or RDA.

THE PARTIES MUTUALLYAGREE to cancel. rescind and terminate the document entitled "AGREEMENT FOR SECUTIEY. HOT WATER. AND EASEMENTS". referred to in the recitals above. Said agreement shall be of no further force or effect upon the execution of this agreement by all parties.

THE PARTIES FURTHER MUTUALLYAGREE that the reversionary interest described in the deed by which RDA acquired the RDA Property shall be suspended during the continuance of this agreement, but shall be restored to full force and effect upon termination of this agreement by either party.

THE PARTIES FURTHER MUTUALLYAGREE that any party to this agreement may terminate the agreement. with or without cause. by giving thirty days written notice of termination to the other party.or parties.
"CITY" "REAL PROPERTTES"
Desert Hot Springs Real
Properties. Inc.
by: by:

Date:___________________ Date:
ll II
by:

Page 54 of 854 ends

Eighth street
‘ ‘-
' ’ - ' - v 2:. ' - -.-. -.
' I ’l’o-2?...” u‘.'‘..-..: .
'. .0.
"' .3‘r’f" ' .... .
.-.0.a..°-'~'_..-.."
' -" r:‘-\.mst.s’y 1:‘ _l 5 \,;-I...’

Page 55 of 854 ends

Desert Concepts Construction, Inc. lnvo iCe
79-775 Ave 40
IndioaCA 92203 Date Invoice #
2/21/2022 21301
BillTo
City of Desert Hot Springs
65-950 Pierson Blvd.

Desert Hot Springs, CA 92240
P.O. No.
222152
Description Amount
Re?ection Park
Proposal No. RR22007; Dated l/20/22,
-Install approximately 600 In. ft of 6 ft chain link fencing, including a of 10 ft gates, price includes 23,875.00 concrete coring for the installation of fence posts, parts labor and material.

T°ta' $23,875.00

Page 56 of 854 ends

79-775 Ave. 40
Indio, CA 92203
Phone: (760) 200-9007
Fax: (760) 200-9014
Email: [email protected]
‘"" Lic. #849837 / DIR #1000006619
Proposal Submitted To: Date Reference No:
1/20/21 RR22007
City of Desert Hot Springs Job Name:
65-950 Pierson BlVCl. Re?ection Park
Desert Hot Springs, CA 92240 Job Location:

Desert Hot Springs, CA
Contact: Date of Plans: Phone: Fax:
760-329-6411
We propose to furnish materials and labor—complete in accordance with speci?cations below for the sum of:

Twenty-Three Thousand Eight Hundred Seventy-Five and 00/ 100*********$23,875.00

UPON COMPLETION
All material is guaranteed to be as speci?ed. All Work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from speci?cations below involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry ?re, tornado, and other necessary insurance. Our employees are ?11lycovered by Workman’s Compensation Insurance. This proposal may be withdrawn by us if not accepted within 90 Days.

Authorized Signature
We hereby submit speci?cations and estimates for:
0 Install approximately 600 ln. ft of 6 ft chain link fencing, including a of 10 ft gates, price includes concrete coring for the installation of fence posts, parts labor and material.

TOTAL COST FOR JOB $23,875.00
Acceptance of Proposa1—the above prices, speci?cations and conditions are satisfactory and are hereby accepted. You are authorized to do the work as speci?ed.

Accepted By: Date:

Page 1 ends
Page 57 of 854 ends

1 Nicholas Haecker
From: David Nunn <[email protected]>
Sent: Tuesday, December 6, 2022 12:20 PM
To: Nicholas Haecker
Cc: Lynn Byrnes; Michael Bickford; Reggie Bickford; Julie Breuer; David Nunn Subject: Removal of Fence and Demolition of Hot Springs Park

CAUTION: This email originated from outside of our organization. Do not click on links or open attachments unless you recognize the sender and know that the content is safe. Thank you.

Dear Nick:

Please be advised that I left you a voicemail at 12:10 pm to proceed with the fence removal and demolition of the vertical structures at Hot Springs Park. Mr.

Michael J. Bickford has advised me via text message for you to proceed.

Thank you and your staff for the time they have spent with our organization regarding this matter. Per our conversation this morning about the City accepting the name of an executive from the Bickford organization to be included in any city activities adjacent to our property. We look forward to developing a better relationship with the City moving forward. Mr. Bickford has already started discussion on several programs that we can sponsor that will be beneficial to the community.

Regards:

Dave Nunn
Vice President Operations
Miracle Springs Resort & Spa
Desert Hot Springs Spa Hotel
Atrix Property Management
760-285-3077 Cell/ Text
[email protected]
Good thoughts precede great deeds. Great deeds precede success!

Page 58 of 854 ends

SHORT FORM PURCHASE OF SERVICE CONTRACT CONTRACW
The parties to this Short Form Purchase of Goods
and/or Services Contract (Contract) do mutually
agree and promise as follows:

1. Parties:

The parties to this Contract are the:
cm or DESERT HOTSPRINGS
CALIFORNIA,a municipal corporation (City) and
the following named Contractor:

Tri-Star Contracting ll, |Nc.

Name
15501 LittleMorongo Road
PO #223354
CONTRACT #2023-130

DEMOLITIONANDREMOVALOF STRUCTURES
(b) Contractor shall perform the above-referenced
services or delivery the required goods at or to
the following speci?ed location/s:

REFLECTIONPARK

5. City's Obligations:

The City
as follows:
shall pay Contractor
Up to a maximumof $ 529-97590

6. Supplementalconditionsz
' This Contract is subject to the Supplemental Address H .

City State Zlp
'
(760) 251-5454 [email protected] 7. Signatures:

Phone Email . ,
'
20_818830o BUSL_20_1128 Tgreestzslgnatures attest the parties agreement Taxpayer IDNo. City Business License No.
‘
2 T
_ CONTRACTOR:
' em‘ Tri-Star Contractingll,lnc.

The effective date ofthis contract Is: / I, 9 12/15/22 and ittenninates Upon completion lJu'aAllave1IoorIIl1«l5.1’ zrnunsrr unless sooner tenninated as provided herein. 5'9'“““'° 93'“ Laura Davenport / Contract Administrator

3. Payment Limit: N,me,m,e
City's total payments to Contractor under this
29'976_00 cm! or=DESERT HOT SPRINGS
.
_
°°”‘'a°t 5"" “°‘ °’‘°°e‘’ 5‘ 5 CALIFORNIA,a municipal corporation:
'
4_ Contractog-'5 Ob?gations; By:

I anager
(a) To the satisfaction of the City's Project
Manager, Contractor shall provide the following Bl/1 _ goods and/or services: P701863Manager Date By: >4nmm Mm-(Ir-r Inc! I! 7:177:-in mi Department Head Date Approved as to content/Insurance:
. Adlnistrative Services Director Date

SHORT FORMPURCHASEOF SERVICESCONTRACT
Cityof Desert HotSprings! t103931.1 I 10514001

Page 59 of 854 ends

1. SUPPLEMENTALCONDITIONS
Independent Contractor._It is expressly agreed that Contractor is to perform or deliver the goods and/or services described herein as an independent contractor pursuant to CalifomiaLabor-Code Section3353, under the controlof the Cityas to the result of his work only but not as to the means by which such result is accomplished. Nothing contained herein shall in any way be construed to make Contractor or any of its agents or employees, an agent, employee or representative of the Agency. Contractor shall be entirely responsible for the compensation of any assistants, employees, and- subcontractors used by Contractor in providingsaid goods and/or services. ’ Termination. ThisContract shall automatically terminate whenthe total accumulated compensation paid or due to Contractor under this -Contract reaches $ 29.976-00. The City shall not be responsible for compensating Contractorforany amounts inexcess of $ 29376.00 . Cancellation. Eitherthe Agency orContractor may cancel this Contract at any time upon giving the other party ?ve (5) calendar days’ written notice of such cancellation. In the event of cancellation, the City shall be liableonly to pay to the Contractor compensation for services rendered up to the date of the Contract's cancellation. Underno circumstances shallAgency be responsible for payment of lost pro?ts, or damages beyond the total amount of compensation set in this Contract.

Assignment. Contractorshall not assign this Contract, or any part thereof, or any rightof the Contractor hereunder withoutthe priorwrittenconsent of the City.

Indemni?cation.To the furthest extent allowedby law, Contractor shall indemnify, hold harmless and defend City and each of its officers, of?cials, employees, agents and volunteersfrom any and all loss, liability,fines, penalties, forfeltures, costs and damages (whether in contract, tort or strict liability,including but not limited to personal injury, death at any time and property equity (including attorney's fees and litigationexpenses), arising or alleged to have arisen directly or indirectlyout of performance of this Contract. Contractors obligations under the preceding sentence shall apply regardless of whether City or any of its officers, of?cials, employees,’ agents or volunteers are negligent, but shall not apply to any loss, liability,?nes, penalties, forfeitures, costs or damages caused solely by the gross negligence, or caused by the willfulmisconduct, of Cityor any of its oflicers, of?cials, employees, agents or volunteers.

IfContractorshould subcontract all or any portion of the work to be performed under this Contract, Contractor shall require each subcontractor to indemnify, hold harmless and defend City and each of its of?oers, of?cials, employees, agents and volunteers in accordance withthe terms of the preceding paragraph.

This section shall survive terminationor expiration ofthis Contract.

SHORTFORMPURCHASEOFSERVICESCONTRACT 2
City of Desert HotSprings! 1103931.1I 1059.4001 '

Page 60 of 854 ends

6. I Anti-Discrimination.Contractor agrees to observe the provisions of the City's .

A Anti-DiscriminationPolicyand TitleVIIof the CivilRights Act of 1964, obligating every contractor or subcontractor under a contract or subcontract to the City of Desert Hot Springs for publicworks or for goods andlorservicesto refrainfrom discriminatory employment practices on the basis of the race, color, sex, sexual orientation, religious creed, national origin or ancestry of any employee of, or applicant for employment with,such contractor orsubcontractor.

7. Legal Responsibilities. The Contractor shall keep itselfinformed of State, and Federal laws and regulations and local Municipal codes which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Contractorto comply with this section.

8. Insurance. Contractor shall pay for and maintain infullforce and effectall policies of insurance required hereunder with an insurance company(ies) either (i) admitted by the California Insurance commissionerto do business inthe State of Californiaand rated not less than “A-VII”in Best's InsuranceRating Guide, or (ii) authorized by the City Manager or his/her designee at any time and in his/her sole discretion.The followingpoliciesof insurance are required:
i. COMMERICIALGENERALLIABILITYinsurance whichshall be at least as broad as the most current version of Insurance Services Oflice’(lSO)form CG 00 01 and shall include insurance for “bodily injury“, “property damage” and “personal and advertising injury",including premises and operation, products and completed operations and contractualliabilitywith limits of liability of not less than $2,000,000 per occurrence and $4,000,000 general aggregate for bodily injury and property damage, $1,000,000 per occurrence for personal and advertising injury and $4,000,000 aggregate for products and completed operations. ii. COMMERCIALAUTOMOBILELIABILITYinsurance which shallbe at least as broad as the most current version of Insurance Services Office (ISO)form CA 00 01 and shall include coverage for “any auto” with limits of liabilityor not less than $1,000,000 per accident for bodily and property damage.
iii. ’ WORKERS’COMPENSATIONinsurance as required under the California LaborCode.
iv. EMPLOYERS’ LIABILITYinsurance with minimum limits of $1,000,000 each accident, $1,000,000 disease each employee and $1,000,000 disease policy limit.

Inthe event Contractor purchases an Umbrellaor Excess insurance policy(ies)to meet the minimumlimitsof insurance set forth above, this insurance policy(ies) shall ‘follow form" and afford no less coverage than the primary insurance policy(ies).

SHORTFORMPURCHASEOF,SERVICESCONTRACT 3
Cityof DesertHotSprings! 1103931.1 I 1059.4001

Page 61 of 854 ends

Contractor shall be responsible for payment of any deductibles contained in any insurance policies required hereunder and Vendor shall also be responsible for payment of any self-insuredretentions.
‘ Allpolicies of insurancerequired hereunder shall be endorsed to provide that the coverage shall not be cancelled, non-renewed, reduced in coverage or in limits except after thirty (30) calendar day written notice by certi?ed mail,return receipt requested, has been given to the City. Upon issuance by the insurer, broker or agent of a notice of cancellation, non-renewal or reduction in coverage or limits, Contractor shallfurnish Citywitha new certi?cate and applicable endorsements for such policy(ies).In the event any policy(ies) are due to expire during this Contract, Contractor shall provide a new certificate and all applicable endorsements evidencing renewal of such policy(ies) not less than 15 calendar days prior to the expiration date of the expiring pollcy(ies).

9. Payment of Prevailing Wages. City hereby noti?es Contractor that pursuant to CaliforniaLabor Code Section 1720 et seq., Contractor may be legally obligated to pay prevailing wages for the services called for in this Contract whether City l requires the payment of prevailingwages or not.

SHORTFORMPURCHASEOFSERVICESCONTRACT 4
Cityof DesertHotSprings I 110393‘|.1 I 1059.4001

Page 62 of 854 ends

PROPOSAL ,, .
,
, * We dig the
Tn-Star Corztmctzrzg [.6 Inc. *, coacneuaValley"
I5-501 LITTLEMORONGO ROAD
Proposal Date: 30-Nov-22
DESERTHOTSPRINGS CA 92240
Date of plans:

Bus:(760) 251-5454 Fax:(760) 251-5458
‘
:15: Number:909/95 (A).

Proposal Submittedt City of Desert ot Springs
Proposal numbor: 111122
Job Name: ReflectionPark - Site Demo
Address: 11595 Palm Drive Address: 10-901Palm Drlvo
Desert Hot Springs CA 92240 Desert Hot Springs CA
Phone: 760-325-6411 Contact: Nicholas t-laecker
Fax: nhaeckogcityoldhsorg Contact coll #: 760-32545411
We herebysubmit an estimate for equipment. labor 8.materialto: Q0 ReflectionPark Site Demo to include:
,
Remove and dispose of existing chainlinkfence
VF 9@j3'_\F5O
Remove allverticalstrudures such as walls, benches.andwaterfalls Remove fountain.fountainequipment.wall.looting, and bench Bury existing water ponds using soil acrossthe street
Eliminate electricalpointsof connection
Utilitiesto be disconnectedbefore work starts
Proposal includes preva?ingwage
Exclusions(unless listedabove): any pennlta. inspections.lees, bonding. water. water meter.engineering.surveying. tests. screening on-sllematerial.tmlilccontrol.drainage Inareas at less than 1%grade.

Ccnlractorisundernoduty to investigate the projectsite. analyze. compareendlorcorrectthe plans and speci?cations.

Tri-Startsnotresponsibleforundisclosedsite conditionsincludingutilities.rocks.pipes. orseptic tanks.

Work necessary as a resultof these unknownconditionsare the ownersresponsibilityand itadditionalworkis necessary as a result. such worttwillbe billedas an extra. Ownerlconlractoris advisedto obtaintheirownsoils engineer &compaction tests.

TOTALPROPOSAL:S 29,976.00
Alisurns are due and payalzlnas stated Any unpaidsumolnourlnrarust olthe ralo oI(2!t) per Payment is to be made as follows:Due upon completion monthfromtho dole saidsurn is due. I!tmylnstalimonlpoyrnoni due homundorispast duo, orllsuyurwspurns an extra charge iwroundor, Tnswrmysmp work _ THISPROPOSALIS VALIDFOR30 DAYS R pectfull ' Simittedzy ?ying-yowem
Rodney Owens. Estimator
GeneralProvllions
Any adorationof deviationfromabove sped?cations, indudlng any such alterationsor deviationsinvolving addltionalmaterialandlorlabor cost.vnilbe exewled only uponwritten order forsame, signedby Owner and irl-Star. and ii there is any charge torsuch alterationor deviation, the edditioralcharge willbe added to this Contract It payment is not madewhen due.Trlslar may suspend workonthe ]ob untilsuchtime as all payments due have been made. Afailureto makepayments horn the due date shall be deemeda breachoi thisContract
In addluonthe (allowing general provisions apply:

1. Allworkshallbe completedin a workman-likemannerandincompliance withall buildingcodes andother applicable laws.

To the rodentrequired by lewatlworkshall be periorrnedby individualsdulylicensedand authorizedto performsaidwork.

Trtstar may at its discretionengage sub-contractorsto pertonnworkhereunder.providedTrislar shallfullypay said subcorrlractorandin all instances remain resporsible torthe propercompletion of this Conlrad.

Trl-Starshallfumlshor/ner appropriate releases orwaivers ot lien for allworkptoiormedor materials providedat the time the nextperiodic payment shall be due flkgange orders shall be inwriting andsigned both by OwnerandTristar. and shallbe incorporatedin.and become a part oi this contract. 5 2'gnomesr shallfailto pay any periodicor Installment payment due hereunder.Tri-Starmay cease workwithoutbreachoi pendingpayment orresolution Alldis es hereundershall be resolved ind '
' ~ ~ » ~
- . _..........:~.,:.,
rs not liable tor an del '
' <
'
governmental authority orliti9al.‘l'on. ‘lty:-fh‘:l|‘els‘:n;ucLnni1‘:nne°t::abl?y|a‘t[ndnyBc:i°e:1mu:k mdowner and,” conuacmmads 0' God‘wumen Hg!-Inls. Brdtil=d3.ensincers.or government agencywhichwillextend or change the scope oiworkme be crsrama e bymeown” asW"asthewnuador‘

9. Tn-Starwanants allwork tora period oi 12 monthsfollowingcompletion y mmB: an ‘mm um" ‘N’ °‘’'‘‘'‘‘‘‘-
The above prices. speci?cations and c n ltlo I f
M...
. .2::;°::a.:::?.z::“.:::::;:.:::.°:::“;. *°
nd no contractual rights arise until this pmpo“l:a:cc:::;c‘:‘l': is 9.

Date I 3/3 an .
'\

Page 63 of 854 ends
Page 64 of 854 ends

SR-23-061
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 21, 2023
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Authorize Approval of Banking Services Agreement RECOMMENDATION:

Authorize the City Manager to execute an Agreement, and any other related documents, with Union Bank/US Bank for general banking services for five years with 2 one year extensions and to take such actions as are necessary to implement and administer the Agreement, and to exercise the available renewal options if in the City’s best interest.

BACKGROUND:

The City of Desert Hot Springs currently has an agreement with Union Bank for banking services which expires on May 19, 2023. On January 4, 2023, City staff issued a banking services Request for Proposal (RFP). The objective of the RFP was to ensure procurement of cost effective banking services that not only maintained the high quality of cash management to support City departments but to also to further improve processes for residents, businesses, and staff.

The scope of the RFP outlined the selection criteria, instructions, legal requirements, desired qualifications, general information, scope of work for governmental banking services, and community benefits. The RFP process included issuance, question period, deadline, review and award. The selection criteria outlined in the RFP included the firm’s experience, ability and willingness to meet all requirements, client references, thoroughness and conformity of response, estimate and compensation schedule.

DISCUSSION:

Staff contacted five banks, sent out four proposals, and the RFP was posted on the City’s website. By the deadline, the City received three proposals in response to the RFP. Those proposals were from Chase Bank, Union Bank/US Bank, and Wells Fargo Bank. The submitted responses were extensively reviewed by several staff members with a focus on the above criteria. Based on the evaluations of the three responses, City staff is recommending Union Bank/US Bank. The chart below illustrates staff’s ranking of each proposal and its cost estimates:
2023 Banking Proposals Ranking
Rank Bank Average Score
out of 50 total
Average
Monthly Service
Charge
Average Annual
Service Charge Notes

Page 65 of 854 ends

SR-23-061
1 Union Bank/US
Bank 46.5 $2,820 $33,840
2 Wells Fargo
Bank 43 $3,465 $41,580
Does not
include armored
vehicle
services.
3 Chase Bank 39.5 $2,389 $28,608
Does not
include armored
vehicle
services.

Of the three proposals, only Union Bank/US Bank included armored vehicle services. One of the services listed in the RFP is for armored vehicle services but Chase Bank and Wells Fargo Bank does not provide those services. They would require the City to separately contract with an armored vehicle services company which would increase the City’s overall costs. Per the proposals, the City would not be working with any local branches, all deposits would be sent to each respective banks’ vaults in Los Angeles, therefore requiring the City to hire an armored vehicle service.

In December 2022, Union Bank is now a part of US Bank which has assets over $601 billion and provides comprehensive financial services to governments, businesses, and individuals alike. The City’s account will be managed out of their Los Angeles office by Prahant Gandhi, Vice President. In addition, Union Bank has offered a $25,000 Loyalty Credit that can be utilized for the setup of new services that would provide the City with up to-date enhancements and recommendations for financial solutions.

FISCAL IMPACT:

The average annual cost would be $33,840 for banking services which will result in an annual savings of approximately $13,000 per year from what Union Bank was charging previously. The cost of these new banking services will be included in future budgets.

ATTACHMENTS:

Exhibit 1 - Banking Services RFP 2022
Exhibit 2 - Banking Services Professional Services Agreement - Union Bank Exhibit 3 - Union Bank Proposal
Exhibit 4 - Wells Fargo Proposal
Exhibit 5 - Chase Proposal

Page 66 of 854 ends

CITY OF DESERT HOT SPRINGS
March 7, 2022

REQUEST FOR PROPOSAL
The City of Desert Hot Springs, hereinafter referred to as the City, is inviting proposals from qualified Banking firms to provide Governmental Banking Services. To be considered for this contract, your firm must meet the qualifications and satisfy the requirements as stated in the Request for Proposal (RFP).

Time Schedule:

The following is the City's tentative schedule for the selection of a Consulting firm to provide a User Fee study:

1. Request for Proposal Dated: March 7, 2022

2. RFP Question Deadline March 25, 2022

3. Deadline for filing RFP: April 7, 2022

4. City review of proposals: April 7– April 21, 2022

5. Award Contract: May 5, 2022
Prior to 4:00 p.m., on April 7, 2022, firms will send an email with the proposals attached and shall be submitted to:

Jerryl Soriano City Clerk
[email protected]
All Proposals must be received by the City no later than 4:00 PM, PST, April 7, 2022, where at such time and said place Proposals will be publicly opened, examined and declared. Any proposal may be withdrawn by Offeror(s) prior to the above scheduled time for the opening of Proposals.

Any proposal received after that time and date specified shall NOT be considered.

All questions regarding this RFP must be directed to Geoffrey Buchheim, Administrative Services Director at [email protected]. Contact with City of Desert Hot Springs personnel other than those listed above regarding this RFP may be grounds for elimination from the selection process.

Page 67 of 854 ends

The City will also accept questions by email; however, all emailed questions must be received by the City no later than 5:00 PM, PST, March 25, 2022. Send email questions Geoffrey Buchheim, Administrative Services Director at [email protected]. Inquiries received after 5:00 PM March 25, 2022, will not be accepted. Responses from the City will be communicated in writing to all recipients of this RFP, by a posting to the City’s website, www.cityofdhs.org.

Sincerely,
Geoffrey Buchheim
Administrative Services Director

Page 68 of 854 ends

CITY OF DESERT HOT SPRINGS

REQUEST FOR PROPOSAL

BANKING SERVICES
PART I: SELECTION CRITERIA
A final contract will be awarded to the firm who can best meet the requirements as specified; and provide high quality, cost effective Banking Services, as determined by the City Staff/Council based on the following factors which are listed without implication of priority:

1. Information regarding the Firm’s experience and qualifications to successfully provide Banking Services.

2. The ability and willingness of the Firm to meet all requirements as outlined in the scope of work (see Exhibit A).

3. Provide a list of client references and an outline of any experience the Firm has had in providing Banking Services, as needed within the City’s organization. Include the name, address and telephone number of client references that may be contacted, as well as a brief description of each project, explaining the service(s) performed.

4. The thoroughness and conformity of the proposal package and cost of services to complete the scope of work identified in Exhibit A.

5. Provide an estimate and compensation schedule on the scope of work as outlined in Exhibit A and a proposed fee schedule. Please understand all proposals will be evaluated based on the Scope of Work, Exhibit A, established herein. It is the responsibility of the submitter to review and understand all of the requirements in the Scope of Work. During the evaluation process, the City reserves the right, where it may serve the City’s best interest, to request additional information or clarification from proposing firms, or to allow corrections of errors or omissions.

PART II: INSTRUCTIONS, CONDITIONS, and LEGAL REQUIREMENTS

1. Contractor shall provide an email with attachment of the proposal. The City of Desert Hot Springs has outlined the requirements herein in as much detail as is currently known.

Please provide any exceptions, additional information, or suggestions that will aid in the City’s selection process (attachments are acceptable).

2. The Firm shall defend, indemnify, and hold the City of Desert Hot Springs, its officers, agents, volunteers, and employees free and harmless from any and all causes of action or claims of damages arising out of or related to the Firm’s performance under this contract.

Page 69 of 854 ends

3. The City reserves the right to negotiate terms and scope of work with the highest ranked Firm. If an agreement cannot be negotiated the City reserves the right to negotiate with any other firm.

4. Selected Firm is required to comply with all existing State and Federal labor laws. If the Firm out-sources any work or job to a sub-Contractor/Consultant, it will be the prime Firm’s responsibility to ensure that all sub-Contractors/Consultants meet the requirements as stated in this RFP.

5. A contract will be awarded to the most qualified Firm. Although price is of prime consideration, it is not the sole determining factor. The City reserves the right to select the appropriate firm based on the most qualified proposal. The determination of the most qualified and most competitively priced proposal may involve all or some of the following factors: price, thoroughness of the proposal package, previous experience and performance; conformity to scope of work in Exhibit A; financial ability to fulfill the contract; ability to meet scope of work; terms of payment; compatibility, as required; number of subContractors/Consultants the main firm may need to employ for out-sourced work; other costs; and other objectives and accountable factors which are reasonable. The City reserves the right to select a Firm to perform all of the work identified in the RFP, or only selected portions based on price and/or other factors.

6. Before execution of the contract, the selected Firm is obligated to provide evidence of liability insurance to include: Worker’s Compensation, General Liability, and Automobile Liability of $1,000,000 per occurrence, $2,000,000 aggregate.

7. The successful Firm shall be an independent contractor, and nothing shall be construed to cause the Firm to be deemed or represent itself as an agent or employee of the City.

8. Any evidence of agreement or collusion among Firm acting illegally to restrain freedom of competition by agreement to propose a fixed price, or otherwise, will render the proposal of such Firm void.

9. Firm agrees that all service by the Firm shall be to the satisfaction of authorized City personnel. In the event that the Firm defaults on performance of any of these requirements, then the City shall have the right to terminate this agreement upon thirty (30) days written notice delivered to the Firm by certified mail or courier. Termination of the contract will not relieve the Firm of any liability to the City for damages sustained by the City because of any breach of contract by the Firm, and the City may withhold any payments to the Firm until such time as the exact amount of damages due the City from the Firm is determined.

10. The Firm shall submit a list of at least five (5) references that have purchased Banking Services from the Firm. Firm shall provide company name, contact name and phone number for each reference.

11. The term of the contract shall commence upon execution by the City Council or authorized City representative and continue through a date to be determined. The City reserves the option to extend the contract(s) under the same terms and conditions for a maximum of two (2) additional years at current price levels.

Page 70 of 854 ends

12. The contract between Firm and the City is non-transferable. Firm shall under no circumstances assign the agreement without written permission of the City. Firm shall notify the City, in writing, of any change in ownership at least thirty (30) days prior to said change.

13. The standard form of the City’s professional services agreement is attached hereto as Exhibit B. The selected Firm will be required to enter into this Agreement. By submitting a proposal, Firm certifies to the City that they have reviewed the Specifications of the RFP and the terms of the agreement and have incorporated all direct and indirect costs of complying with the scope of work and the agreement into the Proposal.

14. The City's terms for payment are net 30 upon receipt of invoice. Firm shall submit invoices between the first and fifteenth business day of each month for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all undisputed fees.

15. Prohibited Interest – No officer, elected official, or employee of the City of Desert Hot Springs shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Firm, or Firm’s sub-Contractors/Consultants for this project, during his/her tenure or for one year thereafter. The Firm hereby warrants and represents to the City that no officer or employee of the City of Desert Hot Springs has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of the Firm or Firm’s sub-Contractors/Consultants on this project. Firm further agrees to notify the City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement.

16. The selected Firm Representative must be live scanned (fingerprinted) before execution of an official agreement by the City of Desert Hot Springs Police Department at the Firm’s expense.

PART III QUALIFICATIONS
Please provide a resume of each staff member that will be working with the City directly to provide Banking Services, as needed by the City. The resume should include, but is not limited to, the following information:

Range of experience related to providing and recommending appropriate banking services, as requested; number of years performing this type of service; education; number of years with firm; title of position with the firm; hourly rates and name of individual.

Please include in the proposal a listing of community benefits the contractor has provided to the communities in which it has operated.

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PART IV: GENERAL INFORMATION

1. Firm is required to carefully and fully investigate all of the requirements of this RFP. By submitting a proposal, Firm represents and certifies to the City that such investigation has been completed and that it fully understands the scope of work.

2. The City reserves the right to reject any and all proposals when deemed necessary.

3. The City will not reimburse firms for any costs involved in the preparation and submission of proposals. Furthermore, this RFP does not obligate the City to accept or contract for any expressed or implied services.

4. The City reserves the right to request any Firm submitting a proposal to clarify its proposal or to supply additional material deemed necessary to assist in the selection process.

5. If an Exhibit “A” requirement cannot be met by a Firm, then the Firm should submit a “No Proposal” response for the items affected. Alternate or equivalent items may be submitted for consideration by the City, unless otherwise specified.

6. All submitted proposals and information included therein or attached thereto shall become public records upon contract award.

7. Firm is requested to provide any exceptions, additional information or suggestions that will aid in the City’s selection process.

8. Any questions regarding this RFP should be referred to Geoffrey Buchheim, Administrative Services Director at [email protected].

Page 72 of 854 ends

Exhibit A
The Scope of Work for Governmental Banking Services
OBJECTIVES:

The City of Desert Hot Springs is requesting a proposal for a primary banking relationship with a financial institution. The following is a listing of mandatory services the City requires of its financial institution:
• Checking Accounts • ACH reporting
• ACH Debit Services • On-line balance reporting
• Credit/Debit Card Services • On-line Image Retrieval
• Courier Services • On-line Stop-pays
• On-line wire transfers • Banking Supplies
• Positive Pay on Checking • Excellent customer service • Overdraft protection • Data Equipment Compatibility
The following is a list of optional services the City may require:
• Automatic Account Reconciliation
• Trust & Escrow Agent Services Accounts
• Payment of Financial System Upgrades and Fees through use of analysis and supplies • Online Banking payments collected in a batch deposit
• E-Payments
• Web Based Payment System

BANKING SERVICES REQUIRED

1. General Banking: The Firm must have centralized cash vault operation that can accommodate the security, deposit volume, and change order demands associated with City accounts. The Firm must process returned/re-cleared items, stop payments, change/currency orders, and photocopying services for items or documents related to the City's bank accounts.

2. Deposit Verifications: The Firm must provide for deposit verification and return of validated deposit receipts to the City.

3. Electronic Money Transfers: The Firm must provide incoming and outgoing electronic money transfer services, including ACH and Wire safeguards and security measures.

4. Overdraft Protection: The Firm must provide overdraft protection. Provide a description of overdraft protection services available and any cost associated with the service.

5. Tax Processing and Remittance: The Firm must accommodate the City's payment and reporting of payroll and other taxes.

6. Balance Reporting: The Firm must have an electronic communication/file transmission system that allows the City to access data by 8:00 a.m. Pacific Standard Time, including previous day balance, collected balances, earnings allowance, and transaction information for each designated account.

Page 73 of 854 ends

7. Account Reconcilement: The Firm must provide monthly reconcilement reports, bank statements, account analysis statements, confirmations and other report related features within a maximum of 3 working days after month end. The Firm must be able to provide various reports and statements in a computer media and also provide specialized reports as needed.

8. Credit/Debit Card Processing: The Firm must provide an electronic system to accommodate credit/debit card authorizations and processing.

9. Emergency Preparedness and Disaster Recovery: The Firm must have a fully developed disaster recovery plan, including remote sites for currency acquisition and recovery of records.

10. Conversion Plan: The Firm must provide for a smooth transition. The Firm must also provide on-site training to City personnel for the operation and use of the Firm's services and automated systems.

11. Data Equipment Compatibility: The City is interested in equipment and data compatibility and therefore request the specifications needed for an automated wire transfer, ACH debit and credit, credit card, balance reporting and any other automated system be included in this proposal. Any cost associated with the automated data and equipment should be identified on the bid.

Page 74 of 854 ends

PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND
______
This Professional Services Agreement (“Agreement”) is made and entered into this ____ day of _____, 2022, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the “City,” and ________., a _____, hereinafter referred to as “Consultant.” RECITALS:

WHEREAS, the City desires to utilize the services of Consultant, as an independent contractor, to provide the City with _____ as directed by the City on an as needed basis (sometimes hereinafter, the “Services”), as described in more particularity in Exhibit “A,” attached hereto and incorporated herein by this reference as the “Scope of Services”; and
WHEREAS, Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS

AND PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND

VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY
ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS
The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth in full herein.

Section 2. SCOPE OF SERVICES
Consultant shall provide to the City the Services on an as-needed and as-directed basis in a manner satisfactory to the City and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions, as described in more detail in the Scope of Services. In the event a conflict exists between this Agreement and the Scope of Services, the former shall supersede.

Section 3. TERM

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This Agreement shall commence as of the date in the opening paragraph of this Agreement and shall continue in force and effect until terminated, in accordance with Section 7 of this Agreement, subject to allocation of funds pursuant to a duly approved City budget.

Section 4. COMPENSATION
The City agrees to pay Consultant for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Consultant agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, ____ Dollars and Zero Cents ($____.00) per hour, and estimate Consultant shall provide twenty (20) hours a week of Services to the City, subject to Section 2 of this Agreement, in a total amount not to exceed ___ Dollars and Zero Cents ($_____.00).

Section 5. METHOD OF PAYMENT
a. Consultant shall submit invoices to the City, not more often than once a month, describing the work performed. Consultant’s bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. The City shall pay Consultant no later than thirty (30) days after approval of the invoice by City staff provided that the services reflected in the invoice were performed to the reasonable satisfaction of the City in accordance with the terms of this Agreement, that the number of hours of service set forth in the invoice reflect the amount of time ordinarily expended for such service by members of the profession currently practicing in the same locality under similar conditions, and that all expenses, rates and other information set forth in the invoice are consistent with the terms and conditions of this Agreement. Review and approval of invoice by City staff will occur within thirty (30) calendar days of receipt of invoice via email.
b. The Consultant shall submit invoices under this Agreement to:

Luke Rainey
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
Email: [email protected]
Section 6. EXTRA WORK
At any time during the term of this Agreement, the City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined

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by the City to be necessary for the proper completion of the Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform Extra Work without written authorization from the City.

Section 7. TERMINATION
This Agreement may be terminated by the City immediately for cause. Either party may terminate this Agreement without cause upon twenty-four hours (24) hours written notice of termination to the other party. Upon termination, Consultant shall be entitled to compensation for services performed up to the effective date of termination, provided that Consultant shall have satisfied all its obligations under this Agreement through and including the effective date of termination, and is not otherwise in breach of this Agreement.

Section 8. OWNERSHIP OF DOCUMENTS
All plans, studies, documents and other writings, including drafts, prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the City upon payment to Consultant for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party. Consultant shall, at its expense, provide such reports, plans, studies, documents and other writings in pdf format to the City upon written request, or such other electronic format as reasonably requested by the City.

Section 9. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without prior written consent of the City, be used by Consultant for any purposes other than the performance of the services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential.

b. Consultant shall not use the City’s insignia or photographs relating to Consultant’s Services, or any publicity pertaining to the Consultant’s Services under this Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of the City.

Section 10. CONSULTANT’S BOOKS AND RECORDS

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a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement.

c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant’s address indicated for receipt of notices in this Agreement. d. Where the City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, the City may, by written request of any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained at City Hall. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successorin-interest.

Section 11. INDEPENDENT CONTRACTOR’S STATUS: NOT AGENT

OF THE CITY
Consultant shall at all times during the term of this Agreement remain, as to the City, a wholly independent contractor and shall perform the services described in this Agreement as an independent contractor and further, hereby waives any claims for any compensation or benefits afforded to City employees and not to independent contractors.

Neither the City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as herein set forth. Nothing contained in this Agreement shall be deemed, construed or represented by the City or Consultant or by any third person to create the relationship of principal and agent and Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind the City to any obligation whatsoever.

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Section 12. REPRESENTATIONS AND ACKNOWLEDGMENTS
REGARDING INDEPENDENT CONTRACTOR’S STATUS

OF CONSULTANT
a. Consultant represents and acknowledges the following:
(1) The City is not required to provide any training or legal counsel to Consultant or its employees in order for Consultant to perform the services described in this Agreement.
(2) Performance of the services described in this Agreement does not have to be integrated into the daily business operations of the City. (3) The services described in this Agreement can be performed without the use of City equipment, materials, tools or facilities. (4) Nothing in this Agreement shall be interpreted to imply that the City must maintain any contractual relationship with Consultant on a continuing basis after termination of this Agreement.
(5) The City will not be requested or demanded to assume any liability for the direct payment of any salary, wage or other such compensation to any person employed by Consultant to perform the services described in this Agreement. (6) Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are employees of the City. b. The City represents and acknowledges the following:
(1) Consultant is not required to comply with daily instructions from City staff with respect to when, where or how Consultant must perform the services set forth in this Agreement.
(2) Consultant is solely responsible for determining who, under the supervision or direction of Consultant, will perform the services set forth in this Agreement.
(3) The City will not hire, supervise or pay any assistants working for Consultant pursuant to this Agreement.
(4) Nothing in this Agreement shall be interpreted to imply that the Consultant must maintain any contractual relationship with the City on a continuing basis after termination of this Agreement.

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(5) It is the sole responsibility of Consultant to set the hours in which Consultant performs or plans to perform the services set forth in this Agreement. (6) Consultant is not required to devote full time to the business operations of the City in order to perform the services set forth in this Agreement. (7) Consultant is not required to perform the services set forth in the Agreement in any particular order or sequence.
(8) Nothing in this Agreement shall be interpreted to preclude Consultant from working for other persons or firms, provided that such work does not create a conflict of interest.
(9) Consultant is not required to perform the Services at City-owned property.

Section 13. CIVIL CODE SECTION 1542 WAIVER
Consultant expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”
This waiver shall be effective as a bar to any and all actions, fees, damages, losses, claims, liabilities and demands of whatsoever character, nature and kind, that are known or unknown, or suspected or unsuspected, including, without limitation, claims of entitlements under the California Public Employees’ Retirement System (“CalPERS”) that are only afforded to employees and not independent contractors. Consultant further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
__________
Initials

Section 14. CONFLICTS OF INTEREST
a. Consultant (including principals, associates and professional employees) covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source or income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s services hereunder.

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Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
b. Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
(1) Does not make or participate in:
(i) the making or any governmental decisions regarding approval of a rate, rule, or regulation, the adoption or enforcement of laws;
(ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certificates, approvals, orders, or similar authorization or entitlement;
(iii) authorizing the City to enter into, modify, or renew a contract; (iv) granting the City approval to a contract that requires City approval and to which the City is a party, or to the
specifications for such a contract;
(v) granting the City approval to a plan, design, report, study, or similar item; or
(vi) adopting, or granting City approval of, policies, standards, or guidelines for the City or for any subdivision thereof. (2) Does not serve in a staff capacity with the City and in that capacity participate in making a governmental decision or otherwise perform the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City’s Conflict of Interest Code under Government Code Section 87302.
c. In the event the City officially determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file the subject Form 700 with the City Clerk’s Office pursuant to the written instructions provided by the Office of the City Clerk.

Section 15. PROFESSIONAL ABILITY OF CONSULTANT;
WARRANTY; FAMILIARITY WITH WORK; PERMITS AND

LICENSES

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a. Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services.
b. By executing this Agreement, Consultant warrants that:
(1) it has thoroughly investigated and considered the work to be performed;
(2) it has investigated the issues, regarding the scope of services to be provided;
(3) it has carefully considered how the work should be performed; and (4) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement.
c. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the City, it shall immediately inform the City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the City Manager or appropriate City representative. d. Consultant represents that it and all of its subcontractors, if any, have obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement, including a City business license.

Section 16. COMPLIANCE WITH LAWS
Consultant shall comply with all local, state and federal laws and regulations applicable to the services required hereunder.

Section 17. INDEMNIFICATION
a. Consultant shall defend, indemnify and hold harmless the City, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs, expenses and attorneys’ fees in connection therewith), arising out of the performance of this Agreement, except for any such claim arising out of the sole negligence, recklessness, or willful misconduct of the City, its officers, agents, employees or volunteers.
b. The City does not, and shall not, waive any rights that it may have against Consultant under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The

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hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. c. Notwithstanding the provisions of subsections a. and b. of this section, Consultant shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Consultant’s work promptly, or by reason of delay or faulty performance by the City, construction contractors, or governmental agencies, or by reason of any other delays beyond Consultant’s control, or for which Consultant is without fault. d. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.

Section 18. INSURANCE REQUIREMENTS
a. Policies. Consultant, at Consultant’s sole cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies:
(1) Worker’s Compensation Coverage. Consultant shall maintain Worker’s Compensation Insurance and Employer’s Liability Insurance for its employees in accordance with the laws of the State of California, of an amount not less than one million dollars ($1,000,000) per accident. In addition, Consultant shall require each subcontractor to similarly maintain Worker’s Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. If any class of employees employed by Consultant pursuant to this Agreement is not protected by the California State Worker’s Compensation Law, Consultant shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Consultant has no employees performing work under this Agreement. Consultant agrees to waive its statutory immunity under any worker’s compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved in the Services to do the same.
(2) General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence, combined single limit coverage for bodily injury, personal injury and property damage associated with work contemplated in this Agreement. If a commercial general

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liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Consultant shall provide insurance on an occurrence, not claims-made basis.

Consultant acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an “offense” while bodily injury and property damage coverage shall be triggered by an “occurrence” during the policy period.

The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CG 00 01 12 07 or any updated form thereof. (3) Automobile Liability Coverage. Consultant shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Consultant arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and two million dollars ($2,000,000) in the aggregate. As an alternative, Consultant shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Consultant were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof.
(4) Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant’s Services, whether such Services are performed by Consultant or by its employees, subcontractors, or subconsultants, to the extent such persons other than Consultant are permitted to perform any of the Services under this Agreement. The amount of this insurance shall not be less than one million dollars ($1,000,000) per claim, and two million dollars ($2,000,000) in the aggregate.
b. Endorsements. Unless otherwise specified hereunder, each insurance policy required herein shall be with insurers possessing a Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
(1) Except as otherwise provided by law, the City, its elected or appointed officers, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work or operations.
(2) This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any

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insurance maintained by the City, including any self-insured retention the City may have shall be considered excess insurance only and shall not contribute with it. (3) This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
(4) The insurer waives all rights of subrogation against the City, its elected or appointed officials, officers, employees or agents. (5) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.
(6) The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
c. Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the approval of City for any self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. During the period covered by this Agreement, only upon the prior express written authorization of the City Manager, Consultant may either reduce or eliminate such deductibles or selfinsured retentions with respect to City, its officers, employees, agents, and volunteers.

The City Manager may condition approval of any reduction or elimination in deductible or self-insured retention levels with a requirement that Consultant procure a bond, guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. d. Certificates of Insurance. , Consultant shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. e. Imposition of Insurance Requirements. Provided the City gives its written consent for any persons other than Consultant to perform any part of the Services, Consultant agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Consultant enters into contracts or whom Consultant hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and name as additional insureds the parties to this Agreement consistent with Section 18b(1) hereof. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section.

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f. Maintain Coverages. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Consultant agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated.
g. Failure to Obtain Coverages. Consultant agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the performance of Services, to the extent such is permissible under this Agreement, Consultant shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City or its officers, employees, servants, volunteers, agents and independent contractors.
h. Notice of Cancellation or Reduction in Coverage. In the event that any coverage required in this Agreement is canceled, reduced, limited, or materially affected in any other manner, Consultant shall provide written notice to the City either by facsimile and/or via certified mail, at Consultant’s earliest possible opportunity and in no case later than fifteen (15) calendar days after Consultant is notified of the change in coverage.

Section 19. NOTICES
a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the parties as follows:

To the City: Luke Rainey
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
Email: [email protected]
To Consultant: _____
_____
_____
b. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 20. DEFAULT

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a. Failure or delay by any party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within fifteen (15) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder.
b. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein. c. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
d. In the event that a default of any party to this Agreement may remain uncured for more than fifteen (15) calendar days following written notice, as provided above, a "material breach" shall be deemed to have occurred. In the event of a material breach, the injured party shall be entitled to seek any appropriate remedy or damages as otherwise set forth herein and by initiating legal proceedings.

Section 21. REMEDIES
If Consultant materially breaches any of the terms of this Agreement, the City’s remedies shall include, but shall not be limited to, the following:
a. Immediately terminate the Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; c. Retain a different consultant to complete the Services that are not finished by Consultant.

Section 22. ENTIRE AGREEMENT
a. This Agreement supersedes any and all other agreements, either oral or written, between the City and Consultant with respect to the subject matter of this Agreement.

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b. This Agreement contains all of the covenants and agreements between the parties with respect to the subject matter of this Agreement, and each party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any party except those covenants and agreements embodied in this Agreement.
c. No agreement, statement, or promise not contained in this Agreement shall be valid or binding.

Section 23. MODIFICATIONS AND AMENDMENTS
This Agreement may be modified or amended only by a written instrument signed by both parties.

Section 24. ASSIGNMENT AND SUBCONTRACTING
a. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the written consent of the City. b. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written consent of the City. If the City consents to such subcontract, Consultant shall be fully responsible to the City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the City and subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as required by law.

Section 25. WAIVER
a. No waiver shall be binding, unless executed in writing by the party making the waiver.
b. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. c. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the remaining provisions of this Agreement.

Section 26. SEVERABILITY

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If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein.

Section 27. VENUE
All proceedings involving disputes over the terms, provisions, covenants or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in Riverside County, California.

Section 28. LITIGATION EXPENSES AND ATTORNEYS’ FEES
In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof.

Section 29. EXECUTION IN COUNTERPARTS
This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least a copy hereof shall have been signed by both parties hereto. Electronic and facsimile signatures shall be deemed the same as original signatures. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

Section 30. PROHIBITED INTERESTS
Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement.

For breach or violation of this warranty, the City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of the City, during the term of his or her service with the City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

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Section 31. EQUAL OPPORTUNITY EMPLOYMENT
Consultant represents that it is an equal opportunity employer and shall not discriminate against any subcontractor, employee, or applicant (“person”) for employment because of race; denial of family and medical care leave; religious creed (including religious dress and grooming practices); color; national origin (including language use restrictions); ancestry; physical disability or mental disability (including HIV and Aids); medical condition (cancer and genetic characteristics); genetic information; military or veteran status; marital status; gender, gender identity, and gender expression; sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding); age or sexual orientation. Unless otherwise permitted under the law, Consultant shall not refuse to hire or employ any such person or refuse to select any such person for a training program leading to employment, or bar or discharge any such person from employment or from a training program leading to employment, or otherwise discriminate against any such person in compensation or in terms, conditions, or privileges of employment.

Section 32. TIME OF THE ESSENCE
Time is of the essence in the performance of this Agreement.

Section 33. PRINCIPAL REPRESENTATIVES
a. _____ shall be Consultant's Principal Representative and the person responsible for undertaking, managing and supervising the performance of all of the Services for this Agreement. Consultant's Principal Representative's experience, knowledge, capability and reputation were a substantial inducement for the City to enter into this Agreement, and as such, for the purposes of performing the Services, the duties of Consultant's Principal Representative shall not be reassigned, without the express written consent of both parties.
b. Luke Rainey shall be the Principal Representative of the City for purposes of communicating with Consultant on any matter associated with the performance of the services set forth in this Agreement.

Section 34. NON-LIABILITY OF CITY’S OFFICERS AND EMPLOYEES No officer or employee of the City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to Consultant or to its successor, or for any breach of any obligation of the terms of this Agreement.

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Section 35. INTERPRETATION
This Agreement shall not be interpreted against either party on the grounds that one of the parties was solely responsible for preparing it or caused it to be prepared as both parties were involved in drafting it.

Section 36. PROTECTION AND CORRECTION OF WORK
a. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages. b. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to the City, when such inaccuracies are due to the fault of Consultant.

Section 37. CAPTIONS AND HEADINGS
The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.

Section 38. GOVERNING LAW
The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the parties under this Agreement, shall be construed pursuant to and in accordance with California law.

Section 39. CUMULATIVE REMEDIES
Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

Section 40. NO THIRD PARTY BENEFICIARIES
The parties do not intend the benefits of this Agreement to inure to any third party, nor shall any provision of this Agreement be so construed.

Section 41. OTHER GOVERNMENTAL REGULATIONS

To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable

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rules and regulations to which City is bound by the terms of such fiscal assistance program.

Section 42. REPRESENTATIONS OF PARTIES AND PERSONS

EXECUTING AGREEMENT
a. Each of the parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the parties hereto. b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the parties each purports to represent.

Section 43. SUCCESSORS AND ASSIGNS
The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties hereto.

Section 44. SURVIVAL
All obligations arising prior to any termination of this Agreement and all provisions of this Agreement allocating liability between the City and Consultant shall survive any such termination.

Section 45. FINGERPRINTING
Consultant hereby acknowledges that the people working with the City must pass a background check and that s/he is required to be livescanned (fingerprinted) by the City of Desert Hot Springs Police Department, at Consultant’s expense, prior to execution of this Agreement. In the event Consultant does not do so prior to execution, Consultant agrees to do so immediately following execution hereof.

Section 46. USE OF RECYCLED PRODUCTS
Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

CITY OF DESERT HOT SPRINGS
_____________________________
Luke Rainey, City Manager

ATTEST:
_____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
_____________________________
________
_____________________________
Name, Title
N:\DHSO\0001-01 General\Doc\6051

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EXHIBIT "B"

CERTIFICATE OF EXEMPTION

FROM WORKERS' COMPENSATION INSURANCE
I certify that, in the performance of the work to be performed by ______________ for the City of Desert Hot Springs, I shall not employ any person in any manner so as to become subject to the workers’ compensation laws of California, and agree that if I should become subject to the workers’ compensation provisions of the California Labor Code, I shall forthwith comply with those provisions.
___________________________________ Date: _______________, 2022 Name & Signature

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PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND

UNION BANK/US BANK
This Professional Services Agreement (“Agreement”) is made and entered into this 19th day of May, 2023, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the “City,” and Union Bank/Us Bank., a _____, hereinafter referred to as “Consultant.”
RECITALS:

WHEREAS, the City desires to utilize the services of Consultant, as an independent contractor, to provide the City with banking services as directed by the City on an as needed basis (sometimes hereinafter, the “Services”), as described in more particularity in Exhibit “A,” attached hereto and incorporated herein by this reference as the “Scope of Services”; and
WHEREAS, Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS,

CONDITIONS AND PROMISES CONTAINED HEREIN AND FOR SUCH OTHER

GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS
The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth in full herein.

Section 2. SCOPE OF SERVICES
Consultant shall provide to the City the Services on an as-needed and asdirected basis in a manner satisfactory to the City and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions, as described in more detail in the Scope of Services. In the event a conflict exists between this Agreement and the Scope of Services, the former shall supersede.

Section 3. TERM

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This Agreement shall commence as of the date in the opening paragraph of this Agreement and shall continue in force and effect for a period of 5 years with 2 one-year optional extensions or until terminated, in accordance with Section 7 of this Agreement, subject to allocation of funds pursuant to a duly approved City budget.

Section 4. COMPENSATION
The City agrees to pay Consultant for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Consultant agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties as er the fee proposal set forth in Exhibit A.

Section 5. METHOD OF PAYMENT
a. Consultant shall submit invoices to the City, not more often than once a month, describing the work performed. Consultant’s bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. The City shall pay Consultant no later than thirty (30) days after approval of the invoice by City staff provided that the services reflected in the invoice were performed to the reasonable satisfaction of the City in accordance with the terms of this Agreement, that the number of hours of service set forth in the invoice reflect the amount of time ordinarily expended for such service by members of the profession currently practicing in the same locality under similar conditions, and that all expenses, rates and other information set forth in the invoice are consistent with the terms and conditions of this Agreement. Review and approval of invoice by City staff will occur within thirty (30) calendar days of receipt of invoice via email.
b. The Consultant shall submit invoices under this Agreement to:

Doria Wilms
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
Email: [email protected]
Section 6. EXTRA WORK
At any time during the term of this Agreement, the City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by the City to be necessary for the proper completion of the Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform Extra Work without written authorization from the City.

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Section 7. TERMINATION
This Agreement may be terminated by the City immediately for cause. Either party may terminate this Agreement without cause upon twenty-four hours (24) hours written notice of termination to the other party. Upon termination, Consultant shall be entitled to compensation for services performed up to the effective date of termination, provided that Consultant shall have satisfied all its obligations under this Agreement through and including the effective date of termination, and is not otherwise in breach of this Agreement.

Section 8. OWNERSHIP OF DOCUMENTS
All plans, studies, documents and other writings, including drafts, prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the City upon payment to Consultant for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party. Consultant shall, at its expense, provide such reports, plans, studies, documents and other writings in pdf format to the City upon written request, or such other electronic format as reasonably requested by the City.

Section 9. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without prior written consent of the City, be used by Consultant for any purposes other than the performance of the services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential.

b. Consultant shall not use the City’s insignia or photographs relating to Consultant’s Services, or any publicity pertaining to the Consultant’s Services under this Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of the City.

Section 10. CONSULTANT’S BOOKS AND RECORDS
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to the City for a

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minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant’s address indicated for receipt of notices in this Agreement. d. Where the City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, the City may, by written request of any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained at City Hall. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in-interest.

Section 11. INDEPENDENT CONTRACTOR’S STATUS: NOT AGENT

OF THE CITY
Consultant shall at all times during the term of this Agreement remain, as to the City, a wholly independent contractor and shall perform the services described in this Agreement as an independent contractor and further, hereby waives any claims for any compensation or benefits afforded to City employees and not to independent contractors. Neither the City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as herein set forth. Nothing contained in this Agreement shall be deemed, construed or represented by the City or Consultant or by any third person to create the relationship of principal and agent and Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind the City to any obligation whatsoever.

Section 12. REPRESENTATIONS AND ACKNOWLEDGMENTS
REGARDING INDEPENDENT CONTRACTOR’S STATUS

OF CONSULTANT
a. Consultant represents and acknowledges the following:

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(1) The City is not required to provide any training or legal counsel to Consultant or its employees in order for Consultant to perform the services described in this Agreement.
(2) Performance of the services described in this Agreement does not have to be integrated into the daily business operations of the City. (3) The services described in this Agreement can be performed without the use of City equipment, materials, tools or facilities. (4) Nothing in this Agreement shall be interpreted to imply that the City must maintain any contractual relationship with Consultant on a continuing basis after termination of this Agreement.
(5) The City will not be requested or demanded to assume any liability for the direct payment of any salary, wage or other such compensation to any person employed by Consultant to perform the services described in this Agreement. (6) Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are employees of the City. b. The City represents and acknowledges the following:
(1) Consultant is not required to comply with daily instructions from City staff with respect to when, where or how Consultant must perform the services set forth in this Agreement.
(2) Consultant is solely responsible for determining who, under the supervision or direction of Consultant, will perform the services set forth in this Agreement.
(3) The City will not hire, supervise or pay any assistants working for Consultant pursuant to this Agreement.
(4) Nothing in this Agreement shall be interpreted to imply that the Consultant must maintain any contractual relationship with the City on a continuing basis after termination of this Agreement.
(5) It is the sole responsibility of Consultant to set the hours in which Consultant performs or plans to perform the services set forth in this Agreement. (6) Consultant is not required to devote full time to the business operations of the City in order to perform the services set forth in this Agreement. (7) Consultant is not required to perform the services set forth in the Agreement in any particular order or sequence.

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(8) Nothing in this Agreement shall be interpreted to preclude Consultant from working for other persons or firms, provided that such work does not create a conflict of interest.
(9) Consultant is not required to perform the Services at City-owned property.

Section 13. CIVIL CODE SECTION 1542 WAIVER
Consultant expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”
This waiver shall be effective as a bar to any and all actions, fees, damages, losses, claims, liabilities and demands of whatsoever character, nature and kind, that are known or unknown, or suspected or unsuspected, including, without limitation, claims of entitlements under the California Public Employees’ Retirement System (“CalPERS”) that are only afforded to employees and not independent contractors.

Consultant further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
__________
Initials
Section 14. CONFLICTS OF INTEREST
a. Consultant (including principals, associates and professional employees) covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source or income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
b. Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
(1) Does not make or participate in:

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(i) the making or any governmental decisions regarding
approval of a rate, rule, or regulation, the adoption or enforcement of laws;
(ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certificates, approvals, orders, or similar authorization or entitlement;
(iii) authorizing the City to enter into, modify, or renew a contract;
(iv) granting the City approval to a contract that requires City approval and to which the City is a party, or to the
specifications for such a contract;
(v) granting the City approval to a plan, design, report, study, or similar item; or
(vi) adopting, or granting City approval of, policies, standards, or guidelines for the City or for any subdivision thereof. (2) Does not serve in a staff capacity with the City and in that capacity participate in making a governmental decision or otherwise perform the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City’s Conflict of Interest Code under Government Code Section 87302.
c. In the event the City officially determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file the subject Form 700 with the City Clerk’s Office pursuant to the written instructions provided by the Office of the City Clerk.

Section 15. PROFESSIONAL ABILITY OF CONSULTANT;
WARRANTY; FAMILIARITY WITH WORK; PERMITS AND

LICENSES
a. Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services.
b. By executing this Agreement, Consultant warrants that:
(1) it has thoroughly investigated and considered the work to be performed;

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(2) it has investigated the issues, regarding the scope of services to be provided;
(3) it has carefully considered how the work should be performed; and (4) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. c. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the City, it shall immediately inform the City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the City Manager or appropriate City representative.
d. Consultant represents that it and all of its subcontractors, if any, have obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement, including a City business license.

Section 16. COMPLIANCE WITH LAWS
Consultant shall comply with all local, state and federal laws and regulations applicable to the services required hereunder.

Section 17. INDEMNIFICATION
a. Consultant shall defend, indemnify and hold harmless the City, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs, expenses and attorneys’ fees in connection therewith), arising out of the performance of this Agreement, except for any such claim arising out of the sole negligence, recklessness, or willful misconduct of the City, its officers, agents, employees or volunteers.
b. The City does not, and shall not, waive any rights that it may have against Consultant under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. c. Notwithstanding the provisions of subsections a. and b. of this section, Consultant shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Consultant’s work promptly, or by reason of delay or faulty performance by the City, construction

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contractors, or governmental agencies, or by reason of any other delays beyond Consultant’s control, or for which Consultant is without fault. d. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.

Section 18. INSURANCE REQUIREMENTS
a. Policies. Consultant, at Consultant’s sole cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies:
(1) Worker’s Compensation Coverage. Consultant shall maintain Worker’s Compensation Insurance and Employer’s Liability Insurance for its employees in accordance with the laws of the State of California, of an amount not less than one million dollars ($1,000,000) per accident. In addition, Consultant shall require each subcontractor to similarly maintain Worker’s Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. If any class of employees employed by Consultant pursuant to this Agreement is not protected by the California State Worker’s Compensation Law, Consultant shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Consultant has no employees performing work under this Agreement. Consultant agrees to waive its statutory immunity under any worker’s compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved in the Services to do the same.
(2) General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence, combined single limit coverage for bodily injury, personal injury and property damage associated with work contemplated in this Agreement. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Consultant shall provide insurance on an occurrence, not claims-made basis. Consultant acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an “offense” while bodily injury and property damage coverage shall be triggered by an “occurrence” during the policy period. The coverage required in this paragraph shall provide at least

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as much coverage as that provided by ISO form CG 00 01 12 07 or any updated form thereof.
(3) Automobile Liability Coverage. Consultant shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Consultant arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and two million dollars ($2,000,000) in the aggregate. As an alternative, Consultant shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Consultant were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof.
(4) Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant’s Services, whether such Services are performed by Consultant or by its employees, subcontractors, or sub-consultants, to the extent such persons other than Consultant are permitted to perform any of the Services under this Agreement. The amount of this insurance shall not be less than one million dollars ($1,000,000) per claim, and two million dollars ($2,000,000) in the aggregate.
b. Endorsements. Unless otherwise specified hereunder, each insurance policy required herein shall be with insurers possessing a Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
(1) Except as otherwise provided by law, the City, its elected or appointed officers, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work or operations.
(2) This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have shall be considered excess insurance only and shall not contribute with it. (3) This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
(4) The insurer waives all rights of subrogation against the City, its elected or appointed officials, officers, employees or agents.

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(5) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.
(6) The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
c. Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the approval of City for any self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. During the period covered by this Agreement, only upon the prior express written authorization of the City Manager, Consultant may either reduce or eliminate such deductibles or selfinsured retentions with respect to City, its officers, employees, agents, and volunteers.

The City Manager may condition approval of any reduction or elimination in deductible or self-insured retention levels with a requirement that Consultant procure a bond, guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. d. Certificates of Insurance. , Consultant shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. e. Imposition of Insurance Requirements. Provided the City gives its written consent for any persons other than Consultant to perform any part of the Services, Consultant agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Consultant enters into contracts or whom Consultant hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and name as additional insureds the parties to this Agreement consistent with Section 18b(1) hereof.

Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section.
f. Maintain Coverages. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Consultant agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated.
g. Failure to Obtain Coverages. Consultant agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is

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maintained by any subcontractors or others involved in any way with the performance of Services, to the extent such is permissible under this Agreement, Consultant shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City or its officers, employees, servants, volunteers, agents and independent contractors.
h. Notice of Cancellation or Reduction in Coverage. In the event that any coverage required in this Agreement is canceled, reduced, limited, or materially affected in any other manner, Consultant shall provide written notice to the City either by facsimile and/or via certified mail, at Consultant’s earliest possible opportunity and in no case later than fifteen (15) calendar days after Consultant is notified of the change in coverage.

Section 19. NOTICES
a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the parties as follows:

To the City: Doria Wilms
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
Email: [email protected]
To Consultant: _____
_____
_____
b. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 20. DEFAULT
a. Failure or delay by any party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within fifteen (15) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder.

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b. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein. c. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
d. In the event that a default of any party to this Agreement may remain uncured for more than fifteen (15) calendar days following written notice, as provided above, a "material breach" shall be deemed to have occurred. In the event of a material breach, the injured party shall be entitled to seek any appropriate remedy or damages as otherwise set forth herein and by initiating legal proceedings.

Section 21. REMEDIES
If Consultant materially breaches any of the terms of this Agreement, the City’s remedies shall include, but shall not be limited to, the following:
a. Immediately terminate the Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; c. Retain a different consultant to complete the Services that are not finished by Consultant.

Section 22. ENTIRE AGREEMENT
a. This Agreement supersedes any and all other agreements, either oral or written, between the City and Consultant with respect to the subject matter of this Agreement.
b. This Agreement contains all of the covenants and agreements between the parties with respect to the subject matter of this Agreement, and each party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any party except those covenants and agreements embodied in this Agreement.
c. No agreement, statement, or promise not contained in this Agreement shall be valid or binding.

Section 23. MODIFICATIONS AND AMENDMENTS

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This Agreement may be modified or amended only by a written instrument signed by both parties.

Section 24. ASSIGNMENT AND SUBCONTRACTING
a. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the written consent of the City. b. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written consent of the City. If the City consents to such subcontract, Consultant shall be fully responsible to the City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the City and subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as required by law.

Section 25. WAIVER
a. No waiver shall be binding, unless executed in writing by the party making the waiver.
b. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. c. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the remaining provisions of this Agreement.

Section 26. SEVERABILITY
If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein.

Section 27. VENUE
All proceedings involving disputes over the terms, provisions, covenants or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in Riverside County, California.

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Section 28. LITIGATION EXPENSES AND ATTORNEYS’ FEES
In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof.

Section 29. EXECUTION IN COUNTERPARTS
This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least a copy hereof shall have been signed by both parties hereto. Electronic and facsimile signatures shall be deemed the same as original signatures. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

Section 30. PROHIBITED INTERESTS
Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement.

For breach or violation of this warranty, the City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of the City, during the term of his or her service with the City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

Section 31. EQUAL OPPORTUNITY EMPLOYMENT
Consultant represents that it is an equal opportunity employer and shall not discriminate against any subcontractor, employee, or applicant (“person”) for employment because of race; denial of family and medical care leave; religious creed (including religious dress and grooming practices); color; national origin (including language use restrictions); ancestry; physical disability or mental disability (including HIV and Aids); medical condition (cancer and genetic characteristics); genetic information; military or veteran status; marital status; gender, gender identity, and gender expression; sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding); age or sexual orientation. Unless otherwise permitted under the law, Consultant shall not refuse to hire or employ any such person or refuse to select any such person for a training program leading to employment, or bar or discharge any such person from employment

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or from a training program leading to employment, or otherwise discriminate against any such person in compensation or in terms, conditions, or privileges of employment.

Section 32. TIME OF THE ESSENCE
Time is of the essence in the performance of this Agreement.

Section 33. PRINCIPAL REPRESENTATIVES
a. _____ shall be Consultant's Principal Representative and the person responsible for undertaking, managing and supervising the performance of all of the Services for this Agreement. Consultant's Principal Representative's experience, knowledge, capability and reputation were a substantial inducement for the City to enter into this Agreement, and as such, for the purposes of performing the Services, the duties of Consultant's Principal Representative shall not be reassigned, without the express written consent of both parties.
b. Luke Rainey shall be the Principal Representative of the City for purposes of communicating with Consultant on any matter associated with the performance of the services set forth in this Agreement.

Section 34. NON-LIABILITY OF CITY’S OFFICERS AND EMPLOYEES No officer or employee of the City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to Consultant or to its successor, or for any breach of any obligation of the terms of this Agreement.

Section 35. INTERPRETATION
This Agreement shall not be interpreted against either party on the grounds that one of the parties was solely responsible for preparing it or caused it to be prepared as both parties were involved in drafting it.

Section 36. PROTECTION AND CORRECTION OF WORK
a. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages.
b. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to the City, when such inaccuracies are due to the fault of Consultant.

Section 37. CAPTIONS AND HEADINGS

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The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.

Section 38. GOVERNING LAW
The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the parties under this Agreement, shall be construed pursuant to and in accordance with California law.

Section 39. CUMULATIVE REMEDIES
Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

Section 40. NO THIRD PARTY BENEFICIARIES
The parties do not intend the benefits of this Agreement to inure to any third party, nor shall any provision of this Agreement be so construed.

Section 41. OTHER GOVERNMENTAL REGULATIONS
To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

Section 42. REPRESENTATIONS OF PARTIES AND PERSONS

EXECUTING AGREEMENT
a. Each of the parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the parties hereto. b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the parties each purports to represent.

Section 43. SUCCESSORS AND ASSIGNS
The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties hereto.

Section 44. SURVIVAL

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All obligations arising prior to any termination of this Agreement and all provisions of this Agreement allocating liability between the City and Consultant shall survive any such termination.

Section 45. FINGERPRINTING
Consultant hereby acknowledges that the people working with the City must pass a background check and that s/he is required to be livescanned (fingerprinted) by the City of Desert Hot Springs Police Department, at Consultant’s expense, prior to execution of this Agreement. In the event Consultant does not do so prior to execution, Consultant agrees to do so immediately following execution hereof.

Section 46. USE OF RECYCLED PRODUCTS
Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

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CITY OF DESERT HOT SPRINGS
_____________________________
Doria Wilms, Interim City Manager
ATTEST:
_____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
_____________________________
________
_____________________________
Name, Title
N:\DHSO\0001-01 General\Doc\6051

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EXHIBIT A
See Proposal from Bank

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EXHIBIT "B"

CERTIFICATE OF EXEMPTION

FROM WORKERS' COMPENSATION INSURANCE
I certify that, in the performance of the work to be performed by ______________ for the City of Desert Hot Springs, I shall not employ any person in any manner so as to become subject to the workers’ compensation laws of California, and agree that if I should become subject to the workers’ compensation provisions of the California Labor Code, I shall forthwith comply with those provisions.
___________________________________ Date: _______________, 2023 Name & Signature

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Proposal for
Governmental
Banking Services
City of Desert Hot Springs
Due Date: January 31, 2023
PRESENTED TO:

Geoffrey Buchheim
Administrative Services Director
SUBMITTED BY:

Prashant (Shawn) Gandhi
Vice President
929‐240‐0745
[email protected]

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January 31, 2023
Mr. Geoffrey Buchheim
c/o Jerryl Soriano, City Clerk
The City of Desert Hot Springs
[email protected]
Dear Geoffrey:

MUFG Union Bank, N. A. (“Union Bank”) and U.S. Bank are pleased to present to the City of Desert Hot Springs (“City”) our response to the Request for Proposal to provide Governmental Banking Services. Our proposal includes responses to the City’s RFP, adheres to the RFP instructions and requirements, and contains recommendations for service enhancements.

As of December 1, 2022, Union Bank is now a part of U.S. Bank, which has served as your Custodian since 2019. Both organizations are committed to a smooth transition for our mutual customers. To achieve this, it is recommended that the City maintain your current product and process structure until full systems conversion (currently slated for May 30, 2023). As such, our responses in this proposal largely focus on your existing products and processes. Likewise, while additional communication has been sent to all existing Union Bank customers as part of the broader conversion process, we have attempted to note any differences in products or processes in this proposal as well. We have also included product suggestions for the City to consider following the systems conversion date.

We believe that the change on our side will result in broad benefits for our customers like the City. Our proposal further delivers on that statement by offering minimized bank costs and a path to improved operational efficiency. We are confident you will find our focus on your long‐term success unmatched and look forward to strengthening our mutual relationship.

My team and I will continue to work closely with the City to help you realize significant working capital benefits and expense savings. We are confident that our unique combination of global treasury solutions, account management platform, payables and receivables automation tools, and fraud prevention suite enables the City to achieve a streamlined and cost‐effective structure. We look forward to our established partnership as we work with the City to execute strategies that will enhance your cash management processes.

Our MUFG Exchange platform and connectivity solutions make banking more convenient and efficient, enabling you to automate critical business functions and make time‐sensitive treasury management decisions anywhere in the world.

The City also benefits from exceptional, dedicated customer service and technical support.

U.S. Bank was named as a 2022 World’s Most Ethical
Company® by the Ethisphere Institute.

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Union Bank has read and will comply with all terms and conditions of the RFP. We believe that the combination of experience and dedication our team brings is the right mix to help the City achieve your goals, both now and long‐term.

Union Bank is pleased to offer the City a $25,000 Loyalty Credit the City may utilize for the setup of new services and/or to cover Account Analysis Fees. The Loyalty Credit will expire after 12‐months. Union Bank will also increase the City’s earnings credit rate (ECR) to 1.50%; this will also be guaranteed for 12 months. We have appreciated the opportunity to establish ourselves as trusted advisors to the City, and we are committed to working with the team to build what we hope is a strong and long‐lasting relationship.

We look forward to working with you through this evaluation process and thank you for the opportunity to earn your business.

Sincerely,
Prashant Gandhi
Prashant “Shawn” Gandhi, Vice President
MUFG Union Bank, N.A.
445 South Figueroa Street, 16th Floor
Los Angeles, CA 90071
Office: 213‐236‐6435 / Mobile: 929‐240‐0745
Email: [email protected]

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i City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information Table of contents
Executive summary...................................................................................................................................1 RFP Questionnaire ....................................................................................................................................3 Part I:  Selection Criteria ...........................................................................................................................3 Part III:  Qualifications...............................................................................................................................7 Exhibit A..................................................................................................................................................12 The Scope of Work for Governmental Banking Services .................................................................................... 12 Banking Services Required......................................................................................................................13 Optional Services: ...................................................................................................................................36 Trust and Escrow Agent Services Account.......................................................................................................... 36 Payment of Financial System Upgrades and Fees through use of analysis and supplies ................................... 38 Online Banking payments collected in a batch deposit...................................................................................... 39 E‐Payments.......................................................................................................................................................... 41 Web Based Payment System............................................................................................................................... 42 Appendices .............................................................................................................................................56

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ii City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information Disclaimers
MUFG Union Bank, N.A. and U.S. Bank National Association are each wholly‐owned subsidiaries of U.S. Bancorp. UnionBanc Investment Services LLC is a wholly owned subsidiary of MUFG Union Bank, N.A.

Acknowledging information provided in this response to the City of Desert Hot Springs is subject to the Freedom of Information Laws governing disclosure of public information, U.S. Bank requests to be contacted before information is made public in order to request redaction of designated specific “Confidential” information given this proposal may contain certain nonpublic information about U.S.

Bancorp and its subsidiaries and affiliates that we deem proprietary and confidential. By accepting these materials, you agree to use this information only to evaluate the proposal and to hold such designated confidential material in confidence, sharing it only with your employees and advisors on a need‐to‐know for the purpose of choosing a service provider. Confidential information potentially included in our proposed response includes business contracts/agreements, proprietary information regarding product functionality, custom process flows, pricing, operational procedures, processing site locations, human resources statistical data, service quality statistics, service manuals, data security, disaster recovery details, SOC and SSAE18 reports, and implementation and disclosure documents. Publication of this information could create an unfair competitive disadvantage and/or regulatory concern. Where possible, such confidential information as outlined above will also be marked “Confidential” within our response.

The prices quoted in this proposal are firm and irrevocable for not less than 180 days until contract award and documentation. Thereafter, prices quoted will be held fixed for the five‐year term of the contract. However, should volumes, quality of work provided by the City of Desert Hot Springs, or regulatory requirements significantly change, this pricing agreement may be subject to mutual renegotiation for impacted items. Notwithstanding anything contained herein to the contrary, all Treasury Management Services provided to the City of Desert Hot Springs are subject to U.S. Bank’s Treasury Management Services Terms and Conditions as provided for mutual negotiation, and as the same may be amended from time to time. Additional new services will be offered at the same agreed upon prices if bid, or at similar offered discounts if newly requested services not previously included. If the City of Desert Hot Springs terminates Master Service Agreement for convenience before expiration of initial term, the City of Desert Hot Springs shall make U.S. Bank whole for any fees waived by U.S. Bank or other incentives provided by U.S. Bank. The City of Desert Hot Springs’ make‐whole obligation shall be prorated based on number of days remaining in initial term.

U.S. Bank does not agree to contract terms solely by delivering this response to the City of Desert Hot Springs’ RFP. Separate contract documentation will be mutually negotiated as provided by the City of Desert Hot Springs within which the issued RFP, questions and answer responses, and this proposed response can be incorporated therein. This agreement can be terminated by either party with 30 days written notice.

By your acceptance of these materials, you also acknowledge that U.S. Bancorp and U.S. Bank are not committing to extend credit or render services to the City of Desert Hot Springs’s or any other person or entity.

World’s Most Ethical Companies” and “Ethisphere” names and mark are registered trademarks of Ethisphere LLC.

Regulatory disclaimer
Our proposal is contingent on U.S. Bank’s completion of required AML/KYC processes and enhanced due diligence review and approval.

We look forward to working with you to obtain the appropriate information to complete that process.

Regulation W disclaimer: U.S. Bank N.A. is not responsible for the obligations of its affiliates. .

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1 City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information Executive summary
Thank you for the opportunity to present the City of Desert Hot Springs with this proposal for government banking services. Our proposal includes responses to the City’s request for proposal (RFP), adheres to the RFP instructions and requirements, and contains recommendations for service enhancements and cost savings. Our proposal is valid for a period of 180 days, with an option to extend following a direct dialogue with the City. We view the proposed pricing as an effort to provide the City with a direct comparison in terms of services offered. We would welcome the opportunity for further discussion, both to clarify any translation discrepancies and further customize our pricing model to suit the City’s needs.

Union Bank is well‐positioned to continue to provide the capabilities the City needs as your transaction banking services provider, not just to match the solution set in place today, but with an eye to the future. We look forward to the opportunity to continue to partner with the City as a strategic partner to fully understand your operational needs and make suggestions to enhance the City’s efficiency through state‐of‐the‐art technology and process improvement. Union Bank has the resources in place to provide the City with a world‐class transaction banking experience.

The Bank also backs our governmental clients with our balance sheet, providing credit products when our banking customers need support. From a Revolving Line of Credit to use of third‐party liquidity for special projects to debt management products like Commercial Paper Programs and bond direct purchases, Union Bank’s strategy is to offer these critical facilities to our municipal partners.

Developing and implementing new products and product enhancements to meet our customers’ needs is a top priority. Our experienced product management team actively participates in industry councils to remain at the forefront of industry trends and changes. We review the product roadmaps on an on‐going basis to reflect the needs of our customers, new technology developments, environmental and regulatory changes, and other changing market conditions. We make enhancements to our internal systems and programs, and work with our technology partner to implement enhancements.

In addition to product capabilities, we understand many intangibles factor into choosing your primary banking partner. We would like to highlight a few of items that sets Union Bank apart in the industry:
 Experience in government services—Union Bank differentiates us from our peers by having hands‐on experience and knowledge of your industry. With our strong and unwavering commitment to the government market, Union Bank has earned a well‐deserved reputation as one of the premier banking services providers for government agencies.
 Experienced relationship management team—To ensure that you receive the best possible customer service, you are assigned to an outstanding relationship management team to oversee all aspects of the City’s banking relationship. Prashant (Shawn) Gandhi will continue to serve as your primary Treasury Relationship Manager as well as your trusted advisor and consultant.  The relationship team will provide personal attention to details throughout any implementation process and on an ongoing basis post‐onboarding. Your relationship team is backed by our Transaction Banking Client Service organization.  CRA—– Union Bank is a committed and dedicated partner in the community. We are pleased to announce that we were notified by our regulator, the Office of the Comptroller of the Currency (OCC) that we have achieved an "Outstanding" rating based on the federal agency’s Community Reinvestment Act (CRA) Performance Evaluation for 2015 – 2018. The most recent copy of Union Bank’s CRA evaluation can be found at https://assets.unionbank.com/assets/file/about‐us/2019‐cra‐performance‐evaluation‐charter‐mufg‐union‐ bank‐na‐20201125.pdf   In addition, U.S. Bank National Association is proud to have received the highest

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2 City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information rating, “Outstanding,” for our recent Community Reinvestment Act (CRA) examination from the Office of the Comptroller of the Currency (OCC). The evaluation period was January 1, 2016, through December 31, 2020.

The company also received an “Outstanding” rating on each of the three individual CRA tests for Lending, Investment and Service. The most recent copy of our CRA evaluation can be found at usbank.com/about‐us‐ bank/community/community‐reinvestment‐act/cra‐performance‐evaluation.html. Highlights of each bank’s Corporate Social Responsibility Program are included as part of this response, beginning on page 9.

With Union Bank, you have a committed strategic partner that works with the City to achieve your financial goals.

We believe our proposal reflects alignment with your stated organizational objectives, and we are excited to share the details. Thank you for your time and consideration.

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3 City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information RFP Questionnaire
Part I:  Selection Criteria
A final contract will be awarded to the firm who can best meet the requirements as specified; and provide high quality, cost effective Banking Services, as determined by the City Staff/Council based on the following factors which are listed without implication of priority:

1. Information regarding the Firm’s experience and qualifications to successfully provide Banking Services.

As of December 1, 2022, MUFG Union Bank is now a part of U.S. Bancorp. U.S. Bancorp, with approximately 70,000 employees and $601 billion in assets as of September 30, 2022, is the parent company of U.S. Bank National Association. Our Minneapolis‐based company serves millions of customers locally, nationally and globally through a diversified mix of businesses: Consumer and Business Banking; Payment Services; Corporate & Commercial Banking; and Wealth Management and Investment Services. We have been recognized for our approach to digital innovation, social responsibility and customer service. Learn more at usbank.com/about.

We are a leader in the banking industry. Our outstanding track record of financial performance, coupled with our sound ethical business practices, have earned us the honor of being named a 2022 World’s Most Ethical Company® by the Ethisphere Institute, a leading international think tank dedicated to the advancement of best practices in business. This is our eighth consecutive year on this list. We were also named Fortune’s 2022 “most admired superregional bank” for the 12th consecutive year. Within the Superregional Banks industry category, we topped the list in seven of the nine key attributes of reputation: People Management, Use of Corporate Assets, Social Responsibility, Quality of Management, Financial Soundness, Long‐Term Investment Value and Quality of Products/Services.

Our size, strength and scale keep us well positioned for future growth. We are committed to invest in delivering innovative and remarkable solutions for our customers, shareholders, employees, and communities as their most trusted financial partner.

Our history
Our history dates to 1863, when our predecessor, First National Bank of Cincinnati, received national bank charter No. 24. As regional banks proliferated across the country, a few other predecessors were born, including our namesake, United States National Bank of Portland, which opened its doors in 1891 – just two decades later, a federal law prohibited other banks from using United States in their names. We opened our current headquarters building, U.S. Bancorp Center at 800 Nicollet Mall in Minneapolis in 2001. And in 2019, we opened our first‐ever branch on the East Coast in Charlotte, North Carolina.

Both Union Bank and U.S. Bank are committed to a smooth transition for our mutual customers. To achieve this, it is recommended that the City maintain your current product and process structure until full systems conversion (currently slated for May 30, 2023). As such, our responses in this proposal largely focus on your existing products and processes. Likewise, while additional communication has been sent to all existing Union Bank customers as part of the broader conversion process, we have attempted to note any differences in products or processes in this proposal as well. We have also included product suggestions for the City to consider following the systems conversion date.

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4 City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information We believe that the change on our side will result in broad benefits for our customers like the City. Our proposal further delivers on that statement by offering minimized bank costs and a path to improved operational efficiency. We are confident you will find our focus on your long‐term success unmatched and look forward to strengthening our mutual relationship.

Government banking expertise
For more than 150 years, U.S. Bank has provided financial services to government entities. Our extensive work in partnership with organizations of all shapes and sizes gives us a unique perspective in meeting the public sector’s requirements.

We offer a wide range of deposit, treasury management, trust, investment and payment processing products to meet the needs of states, cities, counties, towns, school districts and other governmental or public organizations. We also provide government‐specific interim financing for construction products, equipment financing, temporary cash flow financing, term financing, pooled financing programs and registered warrants.

Significant state relationships
We provide primary banking services for Idaho, Kansas, Maine, Minnesota, Montana, Nebraska, Oregon, Utah, Washington and Wisconsin. Other significant banking relationships include Alaska, Arkansas, California, Colorado, Iowa, Kentucky, Michigan, Ohio, Pennsylvania, South Dakota, Tennessee and Texas.

Union Bank has supported Government Agencies for almost 150 years and currently has a portfolio of more than 550 governmental clients. Our clients are largely concentrated in California, Oregon, and Washington.

They include, but are not limited to cities, counties, states, special districts, and agencies. They have approximately $5.5 billion in public funds deposited at Union Bank, which are collateralized in compliance with applicable state law. Collateralization is monitored daily.

Both Union Bank and U.S. Bank are depositories eligible to receive public funds deposits pursuant to California Government Code section 53630 et seq. Public fund balances deposited at Union Bank are collateralized in compliance with the requirements of Title 5, Division 2, Part 1, Chapter 4, Article 2 (commencing with Section 53630) of the California Government Code.

The Bank follows an integrative coverage model that utilizes both a global relationship manager and a treasury relationship manager who work directly with dedicated partners to tailor products and services for the City.

Prashant “Shawn” Gandhi is your primary treasury relationship manager and is the City’s primary contact and provides general support. If Shawn is unavailable, Tommy Castaneda, your treasury associate, remains available as an additional resource and point of contact.

Our Transaction Banking Client Services team is your day‐to‐day contact. The team is based in the greater Los Angeles area, and is available from 8 a.m. to 5 p.m. PT.

Our vision, mission and values
The City will also benefit from the synergies between our vision, mission and values.

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5 City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information Union Bank U.S. Bank
Mission and vision Mission and vision
Be the world's most trusted financial group. Be a
foundation of strength and trust, committed to
meeting the needs of our customers, colleagues,
communities, and shareholders, fostering shared and
sustainable growth.
⇆
U.S. Bank has the right business model to generate and
sustain its industry‐leading financial performance. We
work together to bring the power of the whole bank to
every customer, every single day.

Values Values
Integrity and stewardship ⇆ Being the most trusted choice Respect and inclusion ⇆ Driving one U.S. Bank
Service ⇆ Creating the future now
Collaboration ⇆ Striving for simplicity

2. The ability and willingness of the Firm to meet all requirements as outlined in the scope of work (see Exhibit A).

Union Bank has supported the City since 2009. We value our consultative relationship and look forward to the opportunity to continue to partner with you to achieve your business goals and objectives, both now and into the future. We have responded to the scope of work identified in Exhibit A.

3. Provide a list of client references and an outline of any experience the Firm has had in providing Banking Services, as needed within the City’s organization. Include the name, address and telephone number of client references that may be contacted, as well as a brief description of each project, explaining the service(s) performed.

Name of Customer:  Imperial County
Contact Name / Title Suzanne C. Bermudez, Treasurer – Tax Collector Address 940 W. Main Street, Ste 106, El Centro, CA 92243 Telephone / Fax Number 442‐265‐1255 / [email protected] Number of Years as Customers Since 1992
Description of services provided:

Acct. Reconciliation, ACH, Alerts, Business Checking, Business Tiered Interest Checking, Cash Vault Services, Check Image, Check Processing, Deposited Items Returned, Electronic Funds Transfer, Electronic Payment Authorization, Electronic Tax Deposit, Information Reporting‐Web, Stop Payments‐Web, Transportation Services, Treasury, Wire Transfers, Zero Balance Accounts

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6 City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information Name of Customer: City of Indio
Contact Name / Title Rob Rockwell, Asst. City Manager / Director of Finance Address 100 Civic Center Mall, Indio, CA 92201
Telephone / Fax Number 760‐391‐4029 / [email protected] Number of Years as Customers Since 2002
Description of services provided: Full banking including Positive Pay, Remote Deposit, ACH processing, Wire processing, & Reporting services.

Name of Customer: Indio Water Authority
Contact Name / Title Brian Kinder, Finance Manager
Address 83‐101 Ave. 45, Indio, CA 92201
Telephone / Email 760.625.1859 / [email protected]
Number of Years as Customers Since 2013
Description of services provided: Full banking including Positive Pay, E‐Lockbox, ACH processing, Wire processing, Wholetail Lockbox, & Reporting services.

Name of Customer: Coachella Valley Water District
Contact Name / Title Teresa Acevedo, Finance Manager
Address 75515 Hovley Lane East, Palm Desert, CA 92211
Telephone / Email 760‐398‐2661 x2207 / [email protected] Number of Years as Customers Since 1996
Description of services provided: Full banking including Positive Pay, E‐Lockbox, Image Cash Letter, ACH processing, Wire processing, & Reporting services.

Name of Customer: City of Rancho Cucamonga
Contact Name / Title Tamara Oatman, Finance Director
Address 10500 Civic Center Dr, Rancho Cucamonga, CA 91729 Telephone / Email 909‐774‐2430 / [email protected]

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7 City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information Name of Customer: City of Rancho Cucamonga
Number of Years as Customers Since 2008
Description of services provided: Full banking including Positive Pay, ACH processing, Wire processing, & Reporting services.

4. The thoroughness and conformity of the proposal package and cost of services to complete the scope of work identified in Exhibit A.

Union Bank follows the instructions provided in the RFP. We have responded to the scope of work identified in Exhibit A.

5. Provide an estimate and compensation schedule on the scope of work as outlined in Exhibit A and a proposed fee schedule. Please understand all proposals will be evaluated based on the Scope of Work, Exhibit A, established herein. It is the responsibility of the submitter to review and understand all of the requirements in the Scope of Work. During the evaluation process, the City reserves the right, where it may serve the City’s best interest, to request additional information or clarification from proposing firms, or to allow corrections of errors or omissions.

The Pro Forma Account Analysis for the City of Desert Hot Springs and the Government Services Fee Schedule are provided in Appendix 1 and Appendix 2.

Part III:  Qualifications
Please provide a resume of each staff member that will be working with the City directly to provide Banking Services, as needed by the City. The resume should include, but is not limited to, the following information:

Range of experience related to providing and recommending appropriate banking services, as requested; number of years performing this type of service; education; number of years with firm; title of position with the firm; hourly rates and name of individual.

Union Bank has supported Government Agencies for almost 150 years and currently has a portfolio of more than 550 governmental clients.

To ensure that you receive the best possible customer service, the City is assigned to an outstanding relationship management team to oversee all aspects of the City’s banking relationship. Prashant (Shawn) Gandhi will continue to serve as your primary treasury relationship manager as well as your trusted advisor and consultant. Leading Union Bank’s Government Treasury Services team is Kimberly Gimenez, with more than 25 years in banking. The City’s relationship team will continue to provide personal attention to details on an ongoing basis. Your relationship team is backed by our Transaction Banking Client Service organization.

The Bank follows an integrative coverage model that utilizes both a global relationship manager and a treasury relationship manager who work directly with dedicated partners to tailor products and services for the City.

Prashant Gandhi is your treasury relationship manager and is the City’s primary contact and provides general support.

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8 City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information Prashant Gandhi, Treasury Relationship Manager
Prashant (Shawn) Gandhi is a treasury relationship manager for U.S. Wholesale Banking Treasury Services – Government/Public Finance Division. In his previous role, Shawn was a client implementation manager for MUFG Client Delivery department. Shawn has served clients at Union Bank for 17 years. He has experience working with clients in various industries—from retail clients, title companies, financial institutions, and government agencies. Shawn strives to provide outstanding client service, build partnerships with business partners, and deliver results within deadlines. He has been recognized for his commitment to providing a high‐ level service by earning several Union Bank client service awards. He earned his Bachelor of Science degree in Information Computer Science from UC Irvine. As part of Shawn’s commitment to the community, he volunteers routinely with the Barks of Love Animal Rescue in Orange County.

Office Location: 445 So Figueroa, Los Angeles, CA 90071 T | 213‐236‐6435
F | 213‐236‐5019
E | [email protected]
Kimberly Gimenez, Senior Vice President, Government Banking (U.S. Bank) Kimberly has been in banking for more than 25 years, with experience in community, business, corporate and government banking. She attended California State University – Sacramento and holds a Bachelors and a Master’s degree, as well as other banking specific certifications from the California Bankers Association and the College of Commercial Credit. Kimberly recently joined the U.S. Bank team and brings nine years of dedicated municipal experience, most recently with the Wells Fargo Bank Government and Institutional Banking group. Kimberly resides in northern California. She is responsible for approximately 50 relationships throughout the northern California area.

Office Location: 621 Capitol Mall, Sacramento, CA 95814 T | 916‐498‐3417
F | Please email
E | [email protected]
Tommy Castaneda, Sr. Treasury Associate Vice President
Tommy Castaneda is a treasury sales officer who partners with assigned treasury relationship managers to create appropriate products solutions for clients based on their needs and best practices. Tommy joined Union Bank in 2008 and has more than 14 years of banking experience. Tommy’s previous experience includes, onboarding and implementation, developing policies and procedures to securely enhance Union Bank's KYC requirements, and managing corporate portfolios.

Office location: 1980 Saturn Street, Monterey Park, CA 91755 T | 323‐720‐7285
E | [email protected]
Transaction Banking (TB) Client Services
The Transaction Banking Client Service team is comprised of an experienced group of individuals dedicated to fulfilling client requests. Our team has an average tenure of 10 years with the Union Bank and over 20 years of

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9 City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information Client Service experience. Each associate has a commitment to providing the highest level of service for your requests. Customer Service Associates are available from 5 a.m. to 6 p.m. PT, Monday through Friday. After hours voicemail for a next‐day return call is available, and automated Commercial Customer Service is available 24 hours a day.

Location: Monterey Park, CA
T | 800‐298‐6466
E | [email protected]
Please include in the proposal a listing of community benefits the contractor has provided to the communities in which it has operated.

MUFG Union Bank Corporate Social Responsibility
MUFG Union Bank prides itself in being a good corporate citizen. In our most recent Community Reinvestment Act (CRA) Performance Evaluation, we achieved an "Outstanding" rating from the Office of the Comptroller of the Currency (OCC).

In 2021, MUFG Union Bank and the MUFG Union Bank Foundation (MUB Foundation) donated more than $22.8 million to expand access to opportunity and help propel all our communities to a better financial future.

The MUB Foundation supports local community programs with an emphasis on low‐and moderate‐income populations, and communities where we work and do business. 90% of philanthropic investments are devoted to four strategic areas: affordable housing, economic development, social services and stewardship and sustainability. Additional investments through the Community Recovery Program (CRP) – a $10 million, three‐ year commitment, has enabled us to deliver our core values of diversity, equity, and inclusion into communities. Some of the facets of the CRP include loans to individuals and small businesses, delivering small business technical assistance, and access to capital.

CRA Investments & Donations
MUFG Union Bank’s participation in the Federal Home Loan of San Francisco’s (FHLB) Community Programs:
 Affordable Housing Program (AHP). The FHLB’s AHP program is designed to expand access to affordable housing for those who need it most. Their AHP grants are awarded annually through a competitive application process to Bank Members (such as MUFG Union Bank), working in partnership with housing developers and community organizations.
 Workforce Initiative for Subsidy for Homeownership (WISH) Program. The WISH program offers eligible low‐ to moderate‐income (LMI) households 4‐to‐1 matching grants of up to $22,000 that can be applied towards down payment and closing costs for the purchase of a home. In 2021, MUFG Union Bank provided a $22,000 WISH grant to an LMI borrower for the purchase of their new home.  AHEAD Economic Development Grants. AHEAD grants support innovative, targeted initiatives that will create new economic opportunity or fill critical social service gaps by expanding proven development models or piloting new interventions. AHEAD funding can directly change a community by creating and preserving jobs, delivering job training, supporting small businesses, and addressing special economic development needs of the at‐risk populations.

MUFG Union Bank Down Payment Assistance Grant (DAP)
In 2019, MUFG Union Bank launched the UB DAP grant program, an affordable initiative that provides closing cost and down payment assistance for eligible first‐time homebuyers. The one‐time grant of $6,000 or $9,000 (only available in Alameda, Contra Costa, Los Angeles, Orange, and San Diego counties) is available throughout

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10 City of Desert Hot Springs RFP for Governmental Banking Services U.S. Bank Confidential Information Union Bank’s retail footprint. To date, the Bank has provided two UB DAP grants for a total of $12,000 in assistance to support first‐time homebuyers in the City of Desert Hot Springs.

Charitable Contributions
The MUFG Union Bank Foundation has four strategic priorities: Affordable Housing; Economic Development, Social Services, and Stewardship and Sustainability. From 2019 to 2022, the Bank has provided $20,000 in charitable donations to nonprofit organizations throughout the City of Desert Hot Springs. Total contributions in Riverside County during the same period totaled $1.4 million.

Volunteerism & Community Involvement
From 2019 through 2022, MUFG Union Bank employees provided 131 volunteer hours to the City of Desert Hot Springs non‐profits, offering technical assistance, fundraising, and financial literacy. Employee volunteers reported nearly 3,000 service hours in Riverside County.

Small Business Lending
In 2021, MUFG Union Bank funded four (4) small business loans in the City of Desert Hot Springs totaling $523,000.

Residential Lending
MUFG Union Bank funded 13 residential loans in 2021 including 11 or 85% to low‐and moderate‐income tracts within the City of Desert Hot Springs, and 7 or 54% to low‐and moderate‐income borrowers for a total of $2.8 million dollars for affordable housing.

U.S. Bank corporate social responsibility
U.S. Bank National Association is proud to have received the highest rating, “Outstanding,” for our recent Community Reinvestment Act (CRA) examination from the Office of the Comptroller of the Currency (OCC).

The evaluation period was January 1, 2016, through December 31, 2020. The company also received an “Outstanding” rating on each of the three individual CRA tests for Lending, Investment and Service. The most recent copy of our CRA evaluation can be found at usbank.com/about‐us‐bank/community/community‐ reinvestment‐act/cra‐performance‐evaluation.html.

More than a bank, we’re part of California
We live and work We support business We invest in community

2.5 million+ total customers 240,000+ business customers $1.5 billion in community
development loans and investments
to low‐and‐moderate‐income
communities
461 branches $204.5 million SBA loan total $38 million U.S. Bank Foundation and corporate giving
630 ATMs $49 million to  partner certified diverse
suppliers 70,000 volunteer hours
6,194 employees
U.S. Bancorp announces $100 billion community benefits plan As part of our acquisition of MUFG Union Bank, this five‐year plan focuses on supporting equitable access to capital for low‐ and moderate‐ income communities and communities of color. Sixty percent of the funds will go to California.

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