Agenda — Desert Hot Springs City Council, November 7, 2023 (part 2 of 9)

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90 Overarching Long-Term Vision
To achieve multiple policy objectives, long-term strategic planning efforts would right-size parking to serve the City efficiently and effectively, while at a minimum providing residents and employees with real transportation choices, balancing different modes of transportation so that more travel within the City could be shared, or accomplished by walking, biking, or neighborhood electric vehicles.2 Throughout the state, cities are eager to become more walkable and bike-able to attract new residents, to provide current residents with the health and wellness benefits of purposeful and recreational exercise and fresh air, and to reduce automobile-related fatalities. The goal of improving multimodal transportation is particularly relevant for Desert Hot Springs, as cities that are safe for walking and biking especially benefit children, who are too young to drive, and lower-income residents, for whom private vehicle ownership depletes a substantial share of their financial resources.

A significant body of research has shown how large swaths of parking can encourage or force people to drive more and, in some cases, own additional vehicles. Surface parking lots create sprawl and consume vast amounts of valuable land, which cities would often like to use for housing, businesses, community amenities, and open space conservation. Developing strategies to limit and consolidate the parking footprint clearly aligns with City, regional, and state goals for economic development, civic space, transportation, and the environment. As the City pursues the goal of expanding transportation options, plans will still consider the perspectives of businesses whose customers and employees may expect or prefer to drive and park. Strategies should continue to ensure parking availability and accommodate private vehicle travel, while also helping the City gradually transition to support a balance of transportation options and more sustainable land use patterns in the future. The key is to provide flexibility and freedom of choice for people moving about, and to and from, Desert Hot Springs. 2 As the price of cars become more expensive, and small electric vehicles, batteries and clean electricity become cheaper, transportation planners are seeing a future where NEVs become a real option and part of people’s daily lives.

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91 Summary of Parking and Access Recommendations
for Downtown and the Industrial Cannabis District
The following recommendations are organized around six short-term strategies and three potential longer-term strategies supported by existing conditions findings, established General Plan policies, and community and stakeholder feedback. The strategies may be relevant citywide, but this analysis gives specific attention to parking and access opportunities in the Downtown and Industrial Cannabis study areas (as shown in Figure 2 and Figure 3 in the Introduction beginning on page 21).

Recommended short-term parking strategies include repealing minimum parking mandates, facilitating shared and public parking, discouraging private and reserved parking, incentivizing mixed-use and infill developments, and supporting walking, biking, and shared mobility solutions to reduce the demand for parking. Each of these strategies complements and builds on the others.

Longer-term strategies that may become relevant farther into the future include applying parking management techniques and then managing public parking based on demand as warranted, investing in new parking technologies, and establishing parking benefit districts. Table 1 outlines these recommendations. The strategies are not entirely new for Desert Hot Springs. We note their consistency with the General Plan and appropriateness for each study area. The following sections present an analysis of each strategy, including an explanation of how each could be implemented, the purpose of the recommendation, supportive General Plan policies, potential impacts for each study area, and high level financial implications and staffing requirements for the City. A more thorough review of financial considerations and possible funding sources is included in Appendix D.

Table 11: Summary of Parking and Access Recommendations for Desert Hot Springs Summary of Parking and Access Recommendations
Strategy
Consistency with
General Plan
Appropriate for
Downtown
Study Area
Appropriate for
Industrial Cannabis
Study Area
Short-term and Ongoing Strategies
Repeal minimum parking requirements X X X
Facilitate shared/public parking X X X
Discourage unshared parking X X X
Allow for mixed-use and infill developments X X X
Support walking, biking, and shared mobility
solutions
X X X
Potential Longer-term Strategies
Manage public parking based on demand X X X
Invest in new parking technologies X X X
Create a parking benefit district X X X
Prepare to manage public parking with
dedicated City or contract staff
X X X
Source: Walker Consultants, 2023.

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92 Short-Term and Ongoing Strategies

1. Repeal Minimum Parking Requirements
Explanation and Rationale
Parking in Downtown Desert Hot Springs is ample, with nearly two thousand spaces in the study area sitting vacant during the observed peak demand period. These spaces are valuable real estate and represent a capital asset as well as a potential economic development tool. It does not make sense for businesses to be required to build more than they think necessary when there is so much abundance.

The City’s development code establishes specific requirements for how many parking spaces must be included with various land use projects based on metrics such as per 1,000 square feet of various uses. These mandates do not account for the cost to provide parking, the opportunity cost of the land and related economic impacts, and in some cases are not aligned with actual parking demand, which varies significantly, particularly in a downtown district. If too low, businesses can typically build more spaces than are required. But if the parking requirement is higher than what developers think is needed, the requirement can constrain new development and prevent entrepreneurs from opening or expanding businesses when a parcel is unable to accommodate the number of required parking spaces for their proposed land use. The requirements work against the City’s economic development goals and the community’s desire for a vibrant downtown by, in some cases, requiring as much square footage of parking as productive square footage. Repealing parking requirements does not require that less parking be provided. Instead, it creates flexibility in the development process, allowing property owners to evaluate for themselves how much parking they need. This strategy has been proven to spur economic development, in part by helping to facilitate the adaptive reuse of buildings or lots that are currently vacant and reduce the number of empty parking spaces in the City, a drag on the economy, tax base, and vibrancy of a city.

Minimum parking mandates also run contrary to sustainability goals, forcing property owners to subsidize car ownership and storage, which is inconsistent with the overarching General Plan vision of gradually reducing vehicular trips and miles traveled and the environmental, equity, and innovation goals of the SCAG Parking Bundle scope. Repealing parking minimums supports efficient land use and economic revitalization, as is demonstrated in some of the cities and their staff that we surveyed for this study. Relaxing demands on property owners and businesses to dedicate a significant portion of their property to reserved parking spaces, which often sit empty most or all of the time, provides all parties with flexibility in offering parking and access solutions, not just adding more parking to areas such as the downtown core where empty parking is already abundant. Flexibility in how parking spaces are provided and allocated creates financial incentives and savings opportunities for the City, businesses, and builders to provide only the parking needed, and for residents, households, and employees, to have options other than driving and parking for all their trips.

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93 Examples of Cities that have Repealed Minimum Parking Mandates As the benefits of reducing or eliminating required parking have become more understood, dozens of cities in just the past two to three years have repealed their minimum parking requirements. Cities have recently updated their development codes to allow for more flexibility than allowed by traditional zoning regulations, flexibility that promotes business. Some cities have eliminated minimum parking mandates for nonresidential uses citywide, others have eliminated minimum requirements for all land uses downtown, and still others have created an exemption for downtown commercial and public land uses. Walker researched and contacted staff members at several cities with flexible parking standards or that have recently changed the parking requirements in the development codes to better understand the rationale behind these particular cities’ policies, the results, and any complementary strategies recommended. The cities range in population size from 7,695 to 95,230 people. Their experiences with repealing minimum parking requirements range from somewhat underwhelming to very positive; no city reported any negative outcomes resulting from their policy change. These case studies show how the policy can work for small cities, including cities that do not yet have an abundance of transit or multimodal infrastructure, cities with extreme weather, including high wind speeds, and cities with significant levels of tourism. Table 12 below lists five cities, their populations, their changes to minimum parking requirements, and the year the changes were implemented. The subsequent sections provide additional information that was shared regarding the rationale, results, and complementary strategies used in these cities.

Table 12: Case Studies of Cities with Changes to Minimum Parking Requirements City Population Year Implemented Changes to Minimum Parking Requirements Fayetteville,
Arkansas
95,230 2015 • No minimums for non-residential uses
citywide
• Maximums for all uses
• Parking reductions available for
residential uses
Laramie,
Wyoming
31,659 2010; 2018 • 2010: Eliminated commercial parking requirements downtown
• 2018: Eliminated residential parking
requirements downtown for 10 units or
less
• 2018: Reduced parking requirements
citywide
Wickenburg,
Arizona
7,695 2021 • Eliminated parking minimums
downtown
• Decreased requirements in other
commercial zoning districts
Boulder City,
Nevada
14,879 2014 • Eliminated parking minimums
downtown
29 Palms,
California
27,435 2022 • Eliminated parking minimums for
commercial and public uses in the
downtown commercial core
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94 • Other parking requirements may be
reduced 25% if parking is shared and
posted as public parking
Source: Walker Consultants, 2023.

Case Study Cities’ Rationales
Fayetteville, AR:
• Nonresidential parking requirements were a barrier to redevelopment, especially in the city’s downtown.

People seldom applied for a variance. Fayetteville planners initially wanted to abolish parking mandates in just downtown. But no-one could identify a boundary for the reform that made sense, and citywide repeal seemed fairer.
• The City wanted people to have more choice and flexibility to provide the amount of parking that works best for their commercial projects and businesses.

Laramie, WY:
• Parking requirements were a barrier to development in the city’s downtown. Even when a property might have received a variance, the uncertainty and unpredictability of the approval could be enough to dissuade someone from trying to open a business, especially small business owners.

Wickenburg, AZ:
• Existing public parking was not at capacity.
• Planning Commission and Council were presented with research and acted accordingly.

Boulder City, NV:
• Their downtown was already built out, and flexible parking standards were necessary to allow redevelopment and use changes.
29 Palms, CA:
• Eliminating minimum parking requirements was part of a “park once and walk” strategy established in the Downtown Specific Plan to facilitate development, in part by concentrating public parking in specific locations, part of the city’s overall Project Phoenix to focus development incentives and create a critical mass of destinations in the downtown.

Case Study Cities’ Results
Fayetteville, AR:
• Most developments and redevelopments still provide parking, but the flexibility makes more projects viable. A project that was viable when allowed to choose to provide 12 spaces would not have been possible if it had been mandated to build 16 spaces, according to the old requirements.

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95 • A restaurant was built on a site that had sat vacant for 40 years, which had only five parking spaces on-site.

Previously, the redevelopment would have required 41 spaces. Customers still show up; people are willing to park and walk to the restaurant (see Figure 31).
• Another vacant lot was converted into nine apartments, two offices, a smoothie shop, and a taproom (see Figure 32).

Figure 31: Restaurant redevelopment in Fayetteville, AR on a site that had been vacant for 40 years Source: Sightline Institute, 2022.

Figure 32: Vacant lot development in Fayetteville, AR
Source: Sightline Institute, 2022.

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96 Laramie, WY:
• Prior to the parking reforms in 2010, the city had about 25% vacancies in the downtown, and the existing commercial spaces had significant turnover, demonstrating that they were not necessarily the right fit for downtown. Now, the downtown is said to have no vacancies and more stability in the businesses. They have a mix of restaurants, breweries, general retail – outdoor equipment, clothing, etc., personal services. • Even during the downtown’s typical busy times, there is usually a parking space available within two blocks.

During events, people may walk six to eight blocks.
• Not only have more businesses located downtown since the elimination of parking requirements, but a few new buildings have also been built; property owners are able to maximize the revenue potential of their property.
• One grocery co-op relocated to a larger space with residential apartments constructed above. • The past few years have been the “best ever” for the city’s downtown in terms of sales tax revenue. While these results cannot be attributed entirely to the parking code change, at a minimum, city staff said that the code change certainly has not hurt business.

Wickenburg, AZ:
• Some excess commercial parking is already being redeveloped into a building addition (see Figure 33). • “We do have a large museum project proposed downtown and while it has not been constructed, they are going to be able to maximize their space and self-determine how much parking they will need rather than the government telling them how many spaces they need for their use. The whole theory of eliminating the parking minimums has been well received by the community. Park once, walk around.”

Figure 33: Building Addition Made Possible by Parking Code Update in Wickenburg, AZ Source: Wickenburg, Arizona - Community Development Staff.

Boulder City, NV:
• Their downtown was already built out, but city staff credits flexible parking standards with helping keep retail and office vacancies low, even despite the pandemic and the development of a new interstate that bypassed their downtown.

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97 29 Palms, CA:
• The new downtown plan, consisting of eliminating parking requirements and sharing parking, is bearing fruit. While its success in attracting new businesses and destinations can be attributed to more than the elimination of parking requirements, the plan could not have been implemented without the change.

Benefits of the overall plan include the approval and imminent construction of a new hotel with approximately ninety-five rooms, the City of Twentynine Palms Visitor Center, and a culinary arts school associated with the local Cooper Mountain College. As a critical mass of destinations develop, the city expects more businesses to be attracted to the area.

Case Study Cities’ Complementary Strategies
Laramie, WY:
• The City owns one public lot and has a lease agreement for another large lot on the outskirts of the downtown area.
• The City is monitoring the effect on parking, and if it ever seems like it was a mistake, they would consider re-implementing parking requirements, but so far the changes are going well.

Boulder City, NV:
• The City has public street parking and public parking lots. • The City highlighted the importance of signage and wayfinding showing where parking is available. 29 Palms, CA:
• The Downtown Specific Plan integrates shared public parking lots and pedestrian paseos to increase the acceptable walking distances between parking and downtown destinations. Shared public lots allow parking to be used more efficiently.
• The Downtown Specific Plan also recommends using off-site lots and shuttles for events.

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98 Supportive General Plan Policies
The foundation for eliminating minimum parking requirements has been well established in the City’s planning documents, as identified below. The policies the City puts in place regarding minimum parking mandates be the single most effective policy tool the City can use to facilitate many of these policy goals.

Land Use and Community Design Element Policies
• Policy LU-1.5: Reduce Vehicular Trips and Miles Traveled. Coordinate land use patterns with the Mobility and Infrastructure Element to improve and protect air quality, reduce vehicular trips, and promote active transportation modes and transit use.
• Policy LU-1.6: Infill Revitalization. Encourage revitalization of underutilized and vacant infill properties within the City closest to available infrastructure and community services. • Policy LU-1.9: Community Health through Land Use Planning. Maintain and promote the pattern and linkage of land uses citywide to promote mobility choices and healthy lifestyles. • Policy LU-2.7: Higher Residential Density Corridor. Allow higher-density and mixed uses along Palm Drive and Pierson Boulevard to encourage shopping, services, and entertainment amenities in closer proximity to established infrastructure and transit services.
• Policy LU-3.6: Commercial Intensification. Encourage the intensification of commercial uses on underutilized and vacant commercial properties within Downtown and along the Pierson Boulevard and Palm Drive corridors.
• Policy LU-3.10: City-owned Land and Resources. Maximize revenue from the utilization of City-owned land and resources.
• Policy LU-4.2: Pedestrian-friendly Environments. Accommodate outdoor cafes and neighborhood-serving uses as a means of promoting pedestrian activity and commercial center vitality. • Policy LU-8.3: Protect Industrial Uses. Limit non-industrial uses within industrially designated areas to protect the viability of those areas for industrial businesses. • Policy LU-8.5: Prioritize Industrial Development. Prioritize business attraction and retention of employment and revenue-generating uses on industrial land.
• Policy LU-11.1: Efficient Land Use Patterns. Encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl. • Policy LU-12.10: Visual Character. Encourage residential development that enhances the visual character, quality, and uniqueness of neighborhoods and districts.

Mobility and Infrastructure Element Policies
• Policy MI-5.1: Reduce Vehicle Miles Traveled. Implement development and transportation improvements that help reduce greenhouse gas emissions by reducing per capita Vehicle Miles Traveled (VMT), reducing impacts on the City’s transportation network, and maintaining the desired service levels for all modes of transportation.
• Policy MI-5.2: Sustainable Transportation and Land Use Strategies. Implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled. Consider using vehicle daily trips as the benchmark demand for determining potential levels of parking and vehicular congestion. • Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent.

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99 Economic Development Element Policies
• Policy ED-2.2: Economic Development. Promote economic development through focused land use planning, flexible development standards, and targeted circulation and infrastructure improvements. • Policy ED-2.3: Streamline Permit Process. Maintain a development permitting process that provides clarity, consistency, and assistance opportunities for new businesses and existing businesses looking to expand.

Impact on the Downtown Study Area
The downtown study area contains
approximately 1,800 parking spaces,
including approximately 800 on-street
spaces at the curb and approximately 1,000
off-street spaces, not including include
single family home driveways and garages
or parking lots with fewer than five spaces.

Observations revealed that overall parking
occupancy for all on and off-street spaces in
the downtown study area was relatively
evenly distributed and ranged from 12
percent to 18 percent—always well below the 85 percent occupancy target. Many parcels are currently vacant, and a vast amount of parking is available downtown, even during the busiest times. Figure 34 displays an image of an underutilized downtown private parking lot.

Interpreted another way, we estimate that this parking occupancy rate demonstrates that typically there are about

8.5 acres of unutilized parking spaces in the commercial core. This unutilized land represents a wasted asset but also a great opportunity for the City and businesses.

Short-term impact: If repealing minimum parking requirements streamlines the adaptive reuse of existing buildings and facilitates redevelopment over existing surface parking lots, this would support the General Plan goals for economic development, density, and commercial intensification while also improving the visual character of the downtown. In the short-term, it could also result in more efficient use of the area’s existing parking resources.

Long-term impact: In the much longer term, if parking were ever to become scarce, this would increase demand for a variety of sustainable transportation options, and potentially even create a source of revenue for the City. The need for greater transportation choice for residents, customers, and employees would become even more apparent. Curb space is a valuable public asset, and in the process of managing parking demand, many successful downtowns end up collecting revenue as a beneficial byproduct, which creates new jobs in the area and supports community amenities—such as active transportation infrastructure, aesthetic improvements such as street trees and landscaping, public Wi-Fi, and clean-and-safe programs—which further increase the attractiveness of the downtown area for new businesses and also encourage residents and visitors to use sustainable transportation whenever possible, creating a virtuous cycle. The result is an attractive civic and commercial space. Opportunities for the use of potential revenue are analyzed in greater depth in the longer-term strategies section.

Source: Google Maps Street View, 2023.

Figure 34: Underutilized Downtown Parking Lot
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Impact on the Industrial Cannabis Study Area
Industrial cannabis is a relatively new land use, and cities with minimum parking requirements are often unsure what the precise requirement should be, as each individual development has its own unique mix of uses and needs.

Indeed, this is the challenge and problem of setting minimum parking mandates, as they are a rigid requirement for capital infrastructure, the demand for which may vary greatly on a parcel-by-parcel basis and over time.

If parking requirements are high, cities force businesses to dedicate land to an unproductive use rather than to revenue generating uses, assuming they have the ability to accommodate the required parking or are able to apply for variances, exemptions, or similar. As mentioned, particularly in employment centers, dedicating large amounts of land to parking also creates a large capital subsidy in favor of driving compared to other modes of transportation, many of which could be more cost effective than driving. If parking requirements are seen as higher than what their business needs, some developers may hesitate to undertake a lengthy and unpredictable process to provide what they believe is the more accurate number of spaces. If parking requirements are too low, property owners may simply trust what they perceive to be the City’s expertise and provide only the minimum required. Without parking requirements, each new development proactively considers how much parking is needed to accommodate parking demand based on the specific activities of their business and anticipated employee schedules. Some business owners develop cost effective and creative solutions to reduce their on-site parking footprint (and traffic generation) while still meeting the transportation needs of employees.

Repealing minimum parking requirements provides the opportunity to free up unproductive land to increase the share of revenue-generating square footage on industrial land in Desert Hot Springs. Observations at existing industrial cannabis facilities revealed that even during peak demand hours, at some facilities, many parking spaces sit empty. Repealing minimum parking requirements may also create new local markets; if property owners take advantage of opportunities to financially benefit from sharing their parking facilities with other establishments when not in use, the overall parking supply in the area will be used more efficiently, effectively increasing capacity.

Detailed Considerations for the Industrial Cannabis Area The City requested that Walker explore an appropriate minimum parking requirement for the cannabis production land use designation in the city as part of the curb management study.

Based on the empirical data collected, our understanding of the City’s needs, and the goals of the study as directed by SCAG, determining a parking requirement for cannabis production was challenging. Nearly all the parking demand in the Industrial Cannabis District is generated by employees. Our goals for this effort are to establish a policy that facilitates the economic development of the area and provides equitable and sustainable access for employees to their place of employment. Consistent with these goals are policies that provide flexibility and choices for both businesses and employees.

Empirical Parking Data from the Industrial Cannabis Area As shown in Table 5 on page 52 in the Parking Supply and Demand chapter, Walker collected data from eight properties in the Industrial Cannabis District, demonstrating that parking demand varied across the sites considerably. The highest ratio (1.88 cars/ksf) was more than seven times the lowest ratio (0.26 cars/ksf), after excluding the high and low outliers (4.96 cars/ksf and 0.22 cars/ksf respectively). The average for all eight properties Item Number: 8.

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(outliers included) was 0.59 cars/ksf. This average ratio is still higher than the current one space per 2,500 sf (0.4 spaces per ksf) required for cultivation, the cannabis land use with the lowest parking requirement.

Different Land Uses within the Cannabis Category
The significant variations in parking demand ratios observed may in part be due to variations within the cannabis land use category. The definition of cannabis uses incorporates at least three different land uses, which have parking demands that appear to vary significantly per square foot of building space:
• Cultivation (with parking currently required at 1 space per 2,500 sf) • Manufacturing, testing, extraction, distribution, and packaging (currently required at 1 space per 750 sf, which is 1.33 per ksf)
• Office – currently required at 4.0 spaces per 1,000 sf • Warehouse – the warehouse land use has been identified as a possible “catch all” requirement for large cannabis facilities. The parking requirement for warehouse space in the city is currently 2.0 spaces per 1,000 sf.
• Dispensary uses were not included in this analysis as they tend to fall into a retail or similar category, which represents a very small percentage of the cannabis related square footage in the district.

Based on these requirements, the amount of parking needed for manufacturing cannabis is more than three times higher than the requirement for cultivation. The parking requirement for general warehouse is higher still.

A precise breakdown of the cannabis use square footage within these parcels could not be determined. To respond to the needs of their business operations, cannabis businesses may sometimes need to shift their built square footage between uses. This not only makes determination of the accurate parking ratios generated by cannabis land uses challenging, but it also demonstrates the problematic nature of establishing a parking requirement for cannabis facilities. Flexibility is necessary, but difficult when establishing a required parking ratio.

Establishing a parking requirement will, in many instances, result in more parking than needed being required, limiting the productive square footage of the sites (and therefore the ability of each site to generate the per-squarefoot cannabis tax). As noted, the requirement also reduces flexibility.

We note that there has been mounting, and unrefuted evidence in planning and development circles that minimum parking requirements constrain businesses and development. Further, requirements incentivize employees to drive at the expense of other modes of transportation, from carpooling (which we observed occurring during our data collection and in conversations with staff at cannabis facilities) to transit, bicycling and walking, and other modes.

In sum, we see establishing one-size-fits-all parking requirements as not just problematic for businesses but as having negative consequences on traffic, emissions, and equity.

Additional Considerations
Concern over parking requirements in the cannabis industrial district stems from parking spillover along unimproved curb areas along Two Bunch Palms Trail. Our understanding and most recent observations is that this issue stems largely from one employer and has largely dissipated due to shifting employees on one parcel to another location that has adequate parking. However, a related issue to the same problem, significant queuing along Two Bunch Palms prior to shift changes has remained until recently. We note that new parking requirements Item Number: 8.

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typically cannot be applied retroactively. Therefore, the issue in question is related to only one property of several in the district and will not be solved by a change in parking requirements.

Based on these findings, we make the below recommendations.

Strategic Goals for Parking and Access Policy in the Cannabis Industrial Area We recommend a parking and access policy for the cannabis district that:
• Facilitates business and economic development.
• Encourages flexibility to address changes to business needs. • Encourages equitable and green transportation through the facilitation of non-drive-alone modes of access including shuttles and transit, micromobility, and active transportation, and not just parking, which is land and capital intensive, and the requiring of which tends to be inflexible.

Recommended Approach for the Cannabis Industrial Area
We recommend the following parking and access strategies in the cannabis district:
• Refrain from maintaining a specific minimum parking requirement for cannabis uses in the district, as doing so imposes inflexibility, and potentially unnecessary costs, and an inaccurate requirement that may constrain business development.
o To the extent the City is concerned that the lack of a requirement could result in parking issues, the City could require that a parking and access study be performed for approvals, in lieu of a specific or inflexible requirement. Such a requirement is typical for large or varied land uses, such as medical centers. Parking studies could also be required for developments over a specific number of square feet, such as 10,000 sf.
o Based on the findings from our empirical data, we advise not to require more than 0.85 spaces per 1,000 sf if a parking requirement is desired, but again highlight that businesses could provide additional spaces as they see fit.3 Again, a parking study could be allowed to justify a variance. • Reduce the demand for on-site private parking lots by pursuing the other, complementary strategies included in the next sections of this report.

Financial Implications and Staffing Requirements
Eliminating minimum parking requirements can facilitate new development and adaptive reuse, increasing the economic vibrancy and generating new revenue for the City. An additional benefit may be that when new developments are no longer required to subsidize vehicle storage for residents or employees, the true value of public curb space will become more apparent, and the City may have opportunities to leverage this value to support priorities identified by community members and local business owners.

Repealing minimum parking requirements is a strategy that requires only a simple ordinance and involves relatively minimal staff time to implement. It can also reduce demands on Planning staff by streamlining the permitting 3 Six of the eight properties surveyed had parking demand ratios of 0.85 spaces or less. We note that five of the properties had parking demand ratios of 0.64 spaces or less. The two properties that had higher parking demand ratios likely had significant office components.

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process for new developments. Should the strategy eventually result in higher demand for on-street parking, additional staff time will be necessary to develop a management plan and enforce any new regulations.

2. Facilitate Shared/Public Parking
Explanation and Rationale
The traditional approach to municipal parking regulations has been to require dedicated on-site parking for each land use. However, this nearly always results in an inefficient use of land that also degrades the visual character and environment of an area, as most parking spaces sit empty most of the time. Different land uses often experience peak parking demands at different times of day and days of the week, creating opportunities for shared parking in areas with a mix of uses. For example:
• Offices and banks experience peak demand during weekday business hours. • Movie theatres experience peak parking demand at night and on weekends, as well as the second half of December.
• Peak parking demand at religious institutions occurs on weekends and weekday evenings. • Health clubs experience peak parking demand in January, while most retailers experience peak parking demand in the week in December leading up to Christmas. • Residential buildings and hotels have their highest parking demand overnight.

When each land use has its own private and reserved parking supply, parking usage data demonstrates that there is a wasteful increase in the total parking footprint in suburban areas, reducing the amount of land available for business activity, housing, community amenities, and open space. Some researchers have estimated that there are approximately seven empty parking spaces for every vehicle. If Desert Hot Springs can increase the share of parking that is publicly available or shared among various users, excess parking can be transformed, and valuable land can be preserved as nature or used more efficiently. Providing shared parking instead of dedicated parking can reduce the amount of parking that needs to be constructed by ten to more than thirty percent, freeing up land for more businesses, amenities, or public space.

Furthermore, when parking is private and reserved for a particular property, visitors are more likely to drive even when multiple destinations are within a short walking distance, such as in a downtown. All the additional private parking increases distances between businesses incentivizes or forces people to drive between destinations.

Shared parking gives visitors the option to “park once” and walk. The strategy encourages pedestrian activity by allowing many small parking facilities to be consolidated into larger shared lots, reducing the visual impact of surface parking lots and making walking more practical and pleasant. Some small lots, especially in the downtown area, may be revitalized as outdoor dining, pocket parks, and civic spaces. Alternatively, more efficient use of offstreet parking resources could allow for the repurposing of street parking—facilitating beautification projects or improving safety for walking and biking.

To summarize, the two main benefits of shared parking are:

1. To allow for more economically efficient and community-serving land uses.

2. To enhance the visual character of an area and promote walkability.

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Both benefits can apply anywhere in the City, but as later sections explain, allowing more economically efficient land uses may be especially relevant for the industrial cannabis study area, while promoting walkability and enhancing the visual character is especially relevant for the downtown. The recommended strategies for implementing shared parking in each study area also differ.

Why Shared Parking in Downtown Desert Hot Springs?
Based on our observations, it would be beneficial to consolidate the supply of parking in the Downtown area, through public action, efforts by the private sector, or a combination of the two, for the following reasons:

1. Efficiency: When different land uses share parking, fewer parking spaces are needed to accommodate demand. Shared parking is efficient. Based on Walker research, the reduced need for parking resulting from sharing spaces can range from 10% to more than 35%. This is a key reason to minimize private parking lots in Downtown Desert Hot Springs. Private parking lots necessitate that a district have more parking spaces than it would if parking were shared, and then those spaces sit empty most of the time. The result is less land devoted to businesses, other destinations, job- and sales-tax generating land, and housing.

2. So as not to create even more parking spaces where parking is already oversupplied: There is an overabundance of parking in the Downtown Desert Hot Springs commercial corridor. To the extent the excess supply of parking can be made available to nearby businesses or parcels, this should be allowed to take place.

3. Enhance the visual character of Downtown and promote walkability: Both visual character and walkability key ingredients of a successful central commercial and civic area.

4. Facilitates the removal of parking requirements: Shared parking facilitates the removal of minimum parking requirements, and vice versa. When parking is available to share, it provides options for business to have parking provided in locations other than on site, allowing businesses and developers to maximize the developable square footage of their property.

The need for fewer parking spaces also results in the need for lower costs to provide parking for businesses, and potentially residents.

Where to Provide Shared Parking Downtown
There are several ways – and locations where - shared parking can be provided in the Downtown District. Shared parking is already occurring using the on-street parking supply.

On-street parking:

1. At the curb: Approximately half the parking spaces in Downtown Desert Hot Springs are already shared, the approximately 800 spaces quantified at the curb. Many commercial districts rely heavily on curb parking turnover to accommodate customers making quick trips. A key advantage of curb parking is that it is spread uniformly throughout the area. Curb spaces are typically in the highest demand. These days, they may compete for space with bike lanes, although a wide right-of-way allows for both.

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2. In the median: Public and shared parking can also be provided in the median. The width of Pierson Boulevard allows for the possible conversion of the median into public parking, a strategy identified by Cal Poly San Luis Obispo urban planning students in their Desert Hot Springs Downtown Concept Plan. Parking spaces in the median add to the parking supply, provide a flexible civic space for events, calm traffic, and provide parking along the length of the commercial district. Several other cities have used the median to expand their supply of shared, public parking:
• The most relevant successful example noted in the Desert Hot Springs Downtown Concept Plan was in another Southern California desert city, Lancaster. • The much smaller city, Pismo Beach, also successfully created public parking in the median along Price Street in its inland restaurant district.
• The City of Hawthorne replaced its median, a former streetcar right-of-way, with abundant public parking along Hawthorne Boulevard.

Like curb parking, angled parking allows for spaces to be distributed uniformly along the Pierson Boulevard corridor. However, these spaces provide less convenient access to businesses and destinations along the curb. Mid-block crosswalks must be provided to make median parking spaces conveniently and more safely accessible.

Off-street parking:

3. In publicly owned parking lots: Many cities provide parking in publicly owned surface lots. The land, capital, and maintenance costs are significant, and in California, historically were mostly covered by the now defunct Redevelopment Agency through tax increment financing. In addition to funding, the challenge of providing public parking in surface parking lots in linear commercial districts is determining locations that will minimize walking distances without devoting prime locations to surface parking.

4. In privately owned surface parking lots: Privately owned parking is typically the most abundant and evenly distributed source of parking in a commercial district. This is certainly true in Downtown Desert Hot Springs, where the private parking supply represents the majority of parking spaces. Through shared parking agreements, privately owned parking spaces shared and available to the public, or even to just a portion of the public (such as employees, who park in the district regularly and would understand how to find and utilize such spaces).

Based on a request by City staff, Walker created a methodology specific to Desert Hot Springs to develop a list of the recommended locations for the City to consider providing off-street public parking, if the consolidation of parking is desired.

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Walking Distances
Based on decades of research, Walker developed the following standards, displayed in Table 13, for rating the walking distance from parking. These distances were developed with inclement weather in mind, such as the severe heat (and wind) experienced in some seasons in Desert Hot Springs.

Table 13: Walking Distance from Parking - Level of Service Standards Level of Service Conditions A B C D
Climate Controlled Walkway 1,000 Ft 2,400 ft 3,800 ft 5,200 ft Outdoor/Covered Walkway 500 1,000 1,500 2,000
Outdoor/Uncovered Walkway 400 800 1,200 1,600
Through a Surface Lot 350 700 1,050 1,400
Inside a Parking Facility 300 600 900 1,200

User Experience
Visitor/Customer X X
Special Event X X X X
Employee X X X
Source: Walker Consultants, 2023.

Our Study Area in Downtown Desert Hot Springs runs along Pierson Boulevard, approximately 7,000 linear feet from Cholla Drive to Mesquite Avenue, and one block to the north and south. By locating off street parking facilities approximately every 1,000 to 1,400 feet along the Pierson Boulevard commercial corridor within the study area, we ensure that no off-street public parking is no more than approximately 500 to 700 feet from any parcel along Pierson. We also note the availability of street parking spaces fronting most parcels, either along the curb or potentially in the median spaces under consideration.

Based on this methodology, Table 14 below displays a list of locations in which to consider the consolidation of private parking into public parking facilities.

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Table 14: Recommended Parking Locations
Proposed Location for
Consolidation of Private Lots into
Public Parking
Rationale Method
Builder Supply site or Along with nearby Saint Elizabeth Church parking, the lot could serve
development east of Palm Drive.

Lease or purchase of spaces.

Saint Elizabeth’s Church Along with nearby Builder Supply parking, the lot could serve
development east of Palm Drive.

Partial lease of spaces.
66200 block of Pierson Near Cactus Drive, south side of street, to serve that portion of the
block. Density of existing
businesses on this block.

Lease or purchase and new
construction of spaces.
66000 block of Pierson Mid to western portion of north
side of this block coverage.

Purchase and construction for land
banking or lease.
65800 – 65900 block of Pierson South side of the street to serve both sides of Via Real.

Likely purchase and construction.

Source: Walker Consultants, 2023.

Sizing of Parking Facilities Based on Downtown Parcels
Even with abundant and underutilized private parking throughout the study area, the City may wish to invest in the purchase, construction, and maintenance of its own parking facilities for any number of goals, including possible land banking, to maintain control for long-term future economic development efforts, or to leave open the possibility of constructing vertical parking facilities, if property values ever warrant such an effort.

Walker determined that typical parcels along Pierson Boulevard are 0.15 acres with dimensions of 136-foot depth by 48-foot width (frontage). This lot size is not efficient for providing parking, and infeasible for vertical parking.

Three combined parcels could potentially allow for self-park vertical parking but would result in a highly inefficient design. We note that for the foreseeable future we view standalone structured parking in the area as economically infeasible and inadvisable for myriad reasons. Even as part of future development, including podium parking, the costs should be carefully considered compared to the economic benefits and policy considerations. Based on City of Desert Hot Springs code requirements, our layouts demonstrated a yield of 13 spaces for one typical parcel, 34 spaces by combining two contiguous parcels, and 52 spaces by combining three parcels (see Figure 35). It should be noted that these drawings and numbers of spaces are conceptual; the number of stalls may be lower due to requirements such as landscaping and factors such as utility access or other variable conditions that may differ by parcel.

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Figure 35: Representative Parcel Sizes and Associated Parking Space Yields Source: Walker Consultants, 2023.

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How to Provide Shared Off-Street Parking
Shared parking agreements may be:

1. City-sponsored;

2. City-facilitated; or

3. Between private parties.

A strategy to increase the off-street supply of public parking while promoting efficiency in the parking system is to develop shared parking agreements with the owners of private parking lots. Leasing of existing parking facilities, long-term or short-term, avoids the large upfront investment (and commitment) of purchasing property.

Municipalities often consider constructing new surface or structured parking facilities to increase parking availability. However, to the extent that some existing private spaces can be made available either to the public or even just to employees who work in the district, a shared parking strategy can increase parking availability and convenience as much or more than developing new spaces.

Parking lot owners may receive a fixed fee from the City (where there is paid parking, they may receive a share of parking revenues) in exchange for allowing public parking, management, and enforcement. Even more beneficial for property owners (but more costly to the City), the City may also provide owners with parking lot maintenance, insurance, signage, enforcement, and other security. Based on the data and findings from this report, the City of Desert Hot Springs can identify private parking lots that are underutilized during periods of high demand and consider arranging shared parking agreements with property owners. These could be parking lots in busier or peripheral areas or on the periphery, for public, employee or other long-term parking.

The City can consider releasing a request for information (RFI) or request for proposals (RFP) to all businesses or property owners in desired locations to gauge interest in a parking lease.

The elimination of minimum parking requirements facilitates the sharing of parking, but the City does not need to control the process. With the elimination of minimum parking requirements, property and business owners have an incentive to create sharing arrangements to benefit one another mutually. Parking is real estate, and one should always or nearly always expect some sort of compensation for the arrangement. Otherwise, shared parking becomes infeasible.

City of San Clemente – A Case Study in City-sponsored Shared Parking Downtown San Clemente is a popular destination frequented by both residents and visitors. The core of San Clemente’s downtown experiences parking shortages at peak times. When the City studied the parking supply, it was found that although the public parking lots were at or near capacity, there was a surplus of 400 spaces in the private parking lots. Rather than constructing new parking resources, which is expensive, San Clemente has developed the Parking Lot Lease Program (“program”). The cost is equivalent to maintaining a parking structure without the capital costs for the purchase of land and improvements. Put simply, the program opens the surplus parking in private lots by converting underutilized private parking lots to public lots, thereby increasing their usage and available parking downtown.

The program came about as a result of complaints by downtown merchants that there was not an adequate supply of parking in the downtown area. To understand parking dynamics in the downtown, San Clemente engaged Walker Parking Consultants to develop a parking study and survey that analyzed parking supply and demand. The survey Item Number: 8.

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was conducted during the mid-summer, the peak parking demand period for this beachside community. The analysis concluded that the public parking spaces were heavily utilized while the private parking spaces, although in convenient locations, were not heavily utilized. The private parking lots were averaging 50% capacity utilization during peak demand periods. At the same time, the public parking resources (public lots and public street parking) were nearly 100% utilized. Walker and the City quickly realized that the perceived deficiency of parking in downtown was actually a lack of available and convenient public parking, rather than a critical shortage of parking overall. Walker recommended that the City increase its effective supply of parking by making the underutilized private parking lots open to the public. It was understood that 100% conversion of private lots was not necessary.

Rather, the conversion of several key private lots to public close to the downtown core was the goal.

The challenge in leasing the private lots was to persuade property owners of the benefits of leasing their private parking lots. The City was able to identify several strong incentives that property owners wanted. Executed leases often included the following terms (refer to attachment 5 for sample lease):
• Rental rates began at approximately $350.00/month/10 spaces (but have increased to keep up with inflation and other costs); and
• City funded parking lot improvements including slurry seal and restriping; and • City maintenance of parking lots; and
• City parking enforcement (which owners are reluctant to do because they do not want to offend their customers); and
• City hold harmless and indemnify private property owners from liability resulting from public use; and • Wayfinding signage identifying the private lots as public lots; and • Lease term of 1-year with automatic 30 day renewal thereafter (short term leases are more appealing to property owners who are considering future development of their property).

The terms of the lease proved to be enticing to private parking lot owners. Since the adoption of the program in 2003, nine property owners have participated for an increase of 120 public spaces to the previously pool of 803 public parking spaces in the downtown, resulting in a 15% increase in the effective supply of public parking. Walker studies in 2006, 2008 and 2010 confirmed that the privately-owned lots that have been converted to public lots are now more effectively utilized (averaging 80% utilization).

This program demonstrates how downtowns can increase their effective supply of public parking without a large commitment of public dollars. This program is unique because rather than increasing the overall parking supply by way of physical construction, better management of parking resources is employed by making better use of private parking supply by converting private lots to public use. The program can be successfully implemented in other communities that have an underutilized private parking supply. All it takes is some City initiative in opening private parking lots for public use and then trusting in the ability of smart entrepreneurial property owners to see the benefits of the program.

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City of Twentynine Palms – A Case Study in Providing Shared Public Parking as Incentive for New Development As noted in our discussion of the elimination of minimum parking requirements, in the redevelopment effort of the Twentynine Palms commercial core, new public parking lots and a system of pedestrian paseos that connect these lots to businesses and other destinations in the downtown, have worked in tandem to allow businesses, the new museum, and a new educational institution to make full use of their parcels. Individual land uses consolidated much of their parking in these centralized lots, allowing for the benefits of shared parking.

Supportive General Plan Policies
Land Use and Community Design Element Policies
• Policy LU-1.5: Reduce Vehicular Trips and Miles Traveled. Coordinate land use patterns with the Mobility and Infrastructure Element to improve and protect air quality, reduce vehicular trips, and promote active transportation modes and transit use.
• Policy LU-1.6: Infill Revitalization. Encourage revitalization of underutilized and vacant infill properties within the City closest to available infrastructure and community services. • Policy LU-1.7: Infrastructure. Ensure that infrastructure is integrated into the community concurrently with new development projects.
• Policy LU-1.8: Lot Consolidation. Encourage lot consolidation and utilize land assembly strategies and incentives to promote compatible infill developments.
• Policy LU-1.9: Community Health through Land Use Planning. Maintain and promote the pattern and linkage of land uses citywide to promote mobility choices and healthy lifestyles. • Policy LU-2.7: Higher Residential Density Corridor. Allow higher-density and mixed uses along Palm Drive and Pierson Boulevard to encourage shopping, services, and entertainment amenities in closer proximity to established infrastructure and transit services.
• Policy LU-3.6: Commercial Intensification. Encourage the intensification of commercial uses on underutilized and vacant commercial properties within Downtown and along the Pierson Boulevard and Palm Drive corridors.
• Policy LU-4.2: Pedestrian-friendly Environments. Accommodate outdoor cafes and neighborhood-serving uses as a means of promoting pedestrian activity and commercial center vitality. • Policy LU-7.6: Innovative Parking Solutions. Allow mixed-use developments to utilize shared parking plans, park once and walk districts, and other innovative and flexible parking strategies. • Policy LU-8.3: Protect Industrial Uses. Limit non-industrial uses within industrially designated areas to protect the viability of those areas for industrial businesses. • Policy LU-8.5: Prioritize Industrial Development. Prioritize business attraction and retention of employment and revenue-generating uses on industrial land.
• Policy LU-11.1: Efficient Land Use Patterns. Encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl. • Policy LU-11.2: Cluster Development. Encourage proposed projects within designated conservation areas to cluster development to provide for the greatest amount of conservation while respecting surrounding established and planned uses.
• Policy LU-12.10: Visual Character. Encourage residential development that enhances the visual character, quality, and uniqueness of neighborhoods and districts.

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Mobility and Infrastructure Element Policies
• Policy MI-1.3: Multi-Modal. Aim to develop a multimodal and/or multipurpose approach when implementing infrastructure outlined in the Mobility Plan. • Policy MI-2.6: Rights-of-Ways. Use available public rights-of-ways to provide wider sidewalks, bicycle lanes, trail facilities, and transit amenities.
• Policy MI-3.1: Safety Prioritization. Design, plan, and operate streets to prioritize the safety of the most vulnerable roadway user.
• Policy MI-3.3: Adaptive Street Strategies. Repurpose underused roadway space for safety, mobility, and public space improvements using low-cost, temporary solutions. • Policy MI-5.1: Reduce Vehicle Miles Traveled. Implement development and transportation improvements that help reduce greenhouse gas emissions by reducing per capita Vehicle Miles Traveled (VMT), reducing impacts on the City’s transportation network, and maintaining the desired service levels for all modes of transportation.
• Policy MI-5.2: Sustainable Transportation and Land Use Strategies. Implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled. Consider using vehicle daily trips as the benchmark demand for determining potential levels of parking and vehicular congestion. • Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent. • Policy MI-11.7: Rights-of-Way. Seek opportunities to integrate mobility and infrastructure planning, particularly to efficiently use rights-of-way.

Open Space and Natural Resources Element Policy
• Policy OS-2.4: Air Quality Goals. Ensure that land use and transportation plans support regional air quality goals, with new development projects reducing vehicle miles traveled and vehicle trips.

Economic Development Element Policy
• Policy ED-2.2: Economic Development. Promote economic development through focused land use planning, flexible development standards, and targeted circulation and infrastructure improvements.

Health and Wellness Element Policy
• Policy HW-1.10: Amenities that Promote Healthy Living. Encourage developments to provide access, facilities, and amenities that connect to trails, encourage walking, and/or provide for other facilities that promote healthy living.

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Impact on the Downtown Study Area
A shared parking strategy for downtown allows visitors to park once and walk from one of multiple central offstreet parking areas. This approach can ensure ample parking is available while also allowing any excess parking to be repurposed for other uses, which has the potential to improve the visual character of the area and making it more appealing to new businesses. The following paragraphs discusses implementation strategy for downtown.

Public ownership and management: One common approach to shared downtown parking is for the City to purchase and manage off-street parking facilities to ensure spaces are available to the public and used efficiently. This could facilitate the redevelopment of small surface lots and result in a more appealing pedestrian environment for the downtown area. Investing in public ownership of several key parking lots may be the most appropriate strategy for achieving the benefits of shared parking in the downtown.

Public off-street parking lots could initially complement the City’s 800 on-street spaces, and if the City successfully transitioned to a more multi-modal future, the lots could later be redeveloped into better community-serving uses. In the short-term, if the City purchases parking facilities for public use, while repealing parking mandates, development may become more attractive, and some potential small businesses may become more feasible and affordable.

Other shared parking strategies may become relevant and feasible much further into the future if there is ever sufficient demand for parking in the downtown study area such that people begin to see parking spaces as scarce and valuable. In that case, downtown business owners may partner with the City to attempt to increase the number of parking spaces available to the public by leasing additional spaces for public management and use, either all the time or outside of an establishment’s typical business hours.

Impact on the Industrial Cannabis Study Area
The primary benefits of promoting shared parking in the industrial cannabis study area are to allow more economically efficient land use, conserve open space, create flexibility for changes of use that might need additional parking, and, in some instances, to accommodate parking needs during shift changes (with on-street shared parking). Additionally, establishments with parking facilities that are vacant much of the time would have the opportunity to monetize their parking. Promoting shared or public parking can help ensure any developments that need more parking or are interested in reducing their parking footprint have opportunities and incentives to pursue an appropriate solution. The opportunity to share parking is more curtailed in this study area given the limited mix of land uses, but even among similar land uses, shared parking is still possible and beneficial.

In the Industrial Cannabis Study Area, the City should (1) allow and promote shared use agreements between private property owners, and (2) make the existing and potential public on-street street parking supply safe and accessible to employees.

Private Shared Use Agreements: The City could help facilitate shared use agreements by conducting outreach to property owners and providing model agreements and administrative assistance for owners who wish to rent parking spaces to one another or to share facilities that are needed at different times (such as religious institutions with peak demand on evenings and weekends, and industrial uses with peak demand on weekdays). New developments will also have a natural economic incentive to explore shared parking opportunities that would allow their business to be feasible on a smaller lot or allow them to use more of their parcel for business activity, rather Item Number: 8.

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than parking. The opportunity to use valuable land within the Industrial Cannabis Overlay more efficiently could make the area more desirable for development activity.

Making Existing Public Parking Supply Accessible: Before considering public investment in ownership of public offstreet parking facilities, Desert Hot Springs should consider the approximately 1,873 potential or existing street parking spaces along the seven streets in the industrial cannabis study area. This represents a significant amount of land already owned by the City, and it has the potential to be an enormous public parking resource.

If these on-street spaces were provided in surface parking lots, they would take up over fourteen acres of land in the district, representing millions of dollars in land. If provided in structured parking facilities, they would represent over fifty million dollars in capital costs alone, not considering land and facility maintenance costs.

The City should first concentrate on making sure that on-street spaces are safely accessible, an effort for which the City should consult its traffic engineer, among others. The effort could involve measures such as creating sidewalks, developing dedicated bike/scooter lanes, narrowing vehicle travel lane widths, reducing speed limits, or installing speed bumps. The City could also install low level dark sky compliant lighting, or encourage the use of flashlights, bike or scooter lights, or head lamps to increase nighttime safety without significantly impacting light pollution.

Infrastructure improvements that improve safety for walking and biking can also be included with new developments, a strategy further explored in a later section.

Financial Implications and Staffing Requirements
There are several vacant properties that include parking for sale in the downtown. The City may invest in purchasing one or more of these facilities to increase the supply of publicly available and managed parking. In the industrial cannabis study area, financial investments would be focused on improving the safety and accessibility of existing and potential on-street parking supply. Increasing the supply of public parking in each of these ways would involve significant capital outlays, but the investments may be worthwhile to improve the economic vitality and overall environment of each area.

City staff time would be necessary to identify downtown off-street facilities for investment, develop a plan for cannabis area street parking safety improvements, and promote shared use agreements among private entities.

3. Discourage Unshared Parking
Explanation and Rationale
When each business or parcel provides its own parking, the result is often acres of underutilized parking spaces that sit empty much of the time. Right-sizing parking allows more public and private land to be used for economic activity, community amenities, and open space. It facilitates more walking, biking and other active transportation opportunities, and more affordable housing. Managing the parking footprint is a key part of the planning effort to accomplish these goals. To transition into a future with more efficient land use patterns, the City may begin simply by seeking to minimize the footprint of unshared parking spaces. The same General Plan policies that support a shared parking strategy also support a strategy of discouraging unshared parking so that parking can be used as needed. The implementation actions for encouraging shared parking and discouraging unshared parking are different but complementary.

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Some cities have enacted commercial restrictions on how much parking can be constructed (parking maximum requirements) in their downtowns, with an exception for parking made available to the public, at least outside of the establishment’s business hours, to discourage large amounts of asphalt that sit open most of the time. Some of these maximum parking allowances exempt any parking that is made available to the public outside of an establishment’s usual hours of operation.

There is also precedent for establishing parking maximums, including those governing marijuana facilities and establishments, in industrial areas of the city. Some cities have converted what were previously minimum parking requirements into standards limiting how much parking may be provided. For example, the City of River Rouge, Michigan, allows the following:
• Commercial marijuana facilities and establishments: A maximum of 3 spaces/1000 square feet • Industrial marijuana facilities and establishments: A maximum of 4 spaces/1000 square feet Beyond the extent to which cost savings opportunities will already do so, parking maximum allowances could encourage developers to consider shared parking opportunities, parking opportunities off-site that could be accessed by shuttles or scooters, and available street parking, rather than paving over greenfield sites.

This study does not recommend strict parking maximums for Desert Hot Springs, but rather the more flexible strategy of soft maximums, which developers may exceed if they also provide similar benefits that will serve those who travel by other modes.

This more flexible strategy for discouraging private and reserved parking involves requiring that transportation demand management (TDM) measures (such as shuttle bus services, vanpool programs,4transportation information displays, multimodal wayfinding signage, secure bicycle parking, showers and lockers, a fleet of bicycles, car-share parking and membership, tailored transportation marketing services, or parking cash-out) be selected from a menu of options and included with new developments, according to the number of parking spaces proposed. This type of Parking and TDM Plan would help offset the negative impacts of providing parking beyond current requirements by also ensuring the inclusion of infrastructure or services that support active transportation and shared mobility.

Often, cities that have implemented parking maximums simply turned their previous parking minimums into maximums, to better align with goals for sustainability, public health, and economic vitality. The City of Desert Hot Springs is advised to follow a similar approach, but using “soft maximums” that may be exceeded through TDM provisions, effectively to help “even the transportation playing field.” This strategy will require the creation of a Parking and TDM Plan that establishes a clear menu of possible TDM options and the number of excess parking spaces each option could potentially mitigate.

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• Policy LU-1.6: Infill Revitalization. Encourage revitalization of underutilized and vacant infill properties within the City closest to available infrastructure and community services. • Policy LU-1.7: Infrastructure. Ensure that infrastructure is integrated into the community concurrently with new development projects.
• Policy LU-1.8: Lot Consolidation. Encourage lot consolidation and utilize land assembly strategies and incentives to promote compatible infill developments.
• Policy LU-1.9: Community Health through Land Use Planning. Maintain and promote the pattern and linkage of land uses citywide to promote mobility choices and healthy lifestyles. • Policy LU-2.7: Higher Residential Density Corridor. Allow higher-density and mixed uses along Palm Drive and Pierson Boulevard to encourage shopping, services, and entertainment amenities in closer proximity to established infrastructure and transit services.
• Policy LU-3.6: Commercial Intensification. Encourage the intensification of commercial uses on underutilized and vacant commercial properties within Downtown and along the Pierson Boulevard and Palm Drive corridors.
• Policy LU-4.2: Pedestrian-friendly Environments. Accommodate outdoor cafes and neighborhood-serving uses as a means of promoting pedestrian activity and commercial center vitality. • Policy LU-7.6: Innovative Parking Solutions. Allow mixed-use developments to utilize shared parking plans, park once and walk districts, and other innovative and flexible parking strategies. • Policy LU-8.3: Protect Industrial Uses. Limit non-industrial uses within industrially designated areas to protect the viability of those areas for industrial businesses. • Policy LU-8.5: Prioritize Industrial Development. Prioritize business attraction and retention of employment and revenue-generating uses on industrial land. • Policy LU-11.1: Efficient Land Use Patterns. Encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl. • Policy LU-11.2: Cluster Development. Encourage proposed projects within designated conservation areas to cluster development to provide for the greatest amount of conservation while respecting surrounding established and planned uses.
• Policy LU-12.10: Visual Character. Encourage residential development that enhances the visual character, quality, and uniqueness of neighborhoods and districts.

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impacts on the City’s transportation network, and maintaining the desired service levels for all modes of transportation.
• Policy MI-5.2: Sustainable Transportation and Land Use Strategies. Implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled. Consider using vehicle daily trips as the benchmark demand for determining potential levels of parking and vehicular congestion. • Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent. • Policy MI-10.3: Impact Fees. Ensure that impact fees provide adequate funding for necessary transportation improvements that will benefit all travel modes, while also incentivizing development that is less dependent on expensive, new transportation.
• Policy MI-11.7: Rights-of-Way. Seek opportunities to integrate mobility and infrastructure planning, particularly to efficiently use rights-of-way.

Impact on the Downtown Study Area
The downtown study area already has ample parking availability both on- and off-street, and the purchase of a public parking lot or lots—as recommended in the previous strategy—would further ensure that parking is available. In light of these existing and future conditions, implementing soft maximum parking allowances downtown can help ensure future land uses help make the downtown a walkable destination that attracts visitors and new businesses.

Requiring any new commercial or mixed-use developments to include transportation demand management (TDM) strategies, just as has traditionally been done for parking spaces, according to the number of private off-street parking spaces planned in excess of the maximums can help ensure that parking is not oversupplied and that negative impacts associated with off-street parking are offset by equally impactful investments in infrastructure and services supporting active transportation and shared mobility.

Development standards that recognize parking’s impact on travel and land use and attempt to curb the growth of the unshared parking footprint in the Desert Hot Springs are key to gradually developing a sustainable transportation culture. Policy decisions made today can also help bring about a long-term future in which people are less dependent on private vehicles, and in which active and shared modes become more common place.

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Impact on the Industrial Cannabis Study Area
The industrial cannabis study area is within the Industrial Cannabis Overlay, an area where land is particularly valuable for its economic development potential. As in the downtown, “soft” maximum parking allowances could help the City guide the industrial cannabis area’s economic growth and ensure land is used productively. This could further encourage developers to independently pursue shared parking opportunities, parking opportunities off-site that could be accessed by shuttles or scooters, and available street parking opportunities, rather than paving over greenfield sites or otherwise potentially productive land in prime areas.

Transportation access in the Industrial Cannabis Overlay area is first and foremost an exercise in facilitating employees’ access to their jobs. A citywide Parking and TDM Plan could benefit this area. Requiring any new industrial developments to include transportation demand management strategies according to the number of private off-street parking spaces planned in excess of the maximums can help prevent the oversupply of parking and ensure that any negative impacts are offset by equally impactful investments that support active transportation and shared mobility.

Financial Implications and Staffing Requirements
Policies designed to regulate parking and increase the efficiency of land use, especially in key areas such as Downtown Study Area and the Industrial Cannabis Study Area, can bring economic benefits to the City. Regulations should not impede new developments but should create an incentive for developers to think creatively and consider alternative parking and transportation solutions that may work for their development. The only cost to the City for this strategy is staff time developing new ordinances updating development standards.

Initially, staff time will be needed to develop ordinances (1) establishing soft maximum parking allowances citywide, based on previous minimum parking requirements and (2) adopting a Parking and TDM Plan with requirements for the inclusion of TDM measures for new projects that include unshared parking in excess of the soft maximums. If the City provides developers with a clear menu of TDM strategies upfront, including the number of points each strategy is worth and the number of “points-worth” of strategies that must be included based on proposed parking supply, this should streamline the development review process and limit the amount of staff time required for implementation.

4. Allow for Mixed-Use and Infill Development
Explanation and Rationale
Another planning strategy that reduces parking demand and the demands placed on transportation infrastructure, and which also facilitates multimodal access and an improved aesthetic, is developing zoning standards that better support a mix of uses. This can improve proximity and access to different places, reducing the distance and segregation between different types of places, making it possible for more trips to be taken without a car. Mixeduse projects are often more economically viable to develop and can potentially generate additional tax revenue for cities. In many cases, it can make sense to allow commercial or light industrial development on a ground floor with residential units above.

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According to SCAG’s Connect SoCal Demographics and Growth Forecast, the population of Desert Hot Springs is projected to increase from 29,000 in 2016 to 61,000 in 2045, or by approximately 1,100 residents per year. The number of households is projected to increase from 9,300 to 24,700, or by approximately 530 per year. The City already has a plan to allow new housing, but expanding the areas where housing is allowed to be built could help facilitate commercial developments downtown and light-industrial developments within the cannabis overlay.

In addition to supporting project viability, allowing housing to be built over commercial buildings can support businesses by increasing the base of nearby customers. Currently, mixed-use development with residential uses is restricted or prohibited on most land in the project’s study areas. Zoning code update recommendations for consideration include:
• Rezoning all Residential-Low and Residential-Medium areas of the downtown study area to Mixed-Use Neighborhood, which would also allow for higher residential densities. • Legalizing multi-family or single room occupancy housing by-right as an accessory use in all CommercialDowntown and Commercial-General zones, limited to upper floors. • Legalizing upper-level housing units by-right as an accessory use in Light-Industrial zones.

Rationale for these recommendations is further explained in the Impact on the Downtown Study Area section beginning on page 121 and the Impact on the Industrial Cannabis Study Area section beginning on page 122.

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Mobility and Infrastructure Element Policies
• Policy MI-1.3: Multi-Modal. Aim to develop a multimodal and/or multipurpose approach when implementing infrastructure outlined in the Mobility Plan. • Policy MI-5.1: Reduce Vehicle Miles Traveled. Implement development and transportation improvements that help reduce greenhouse gas emissions by reducing per capita Vehicle Miles Traveled (VMT), reducing impacts on the City’s transportation network, and maintaining the desired service levels for all modes of transportation.
• Policy MI-5.2: Sustainable Transportation and Land Use Strategies. Implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled. Consider using vehicle daily trips as the benchmark demand for determining potential levels of parking and vehicular congestion. • Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent. • Policy MI-10.3: Impact Fees. Ensure that impact fees provide adequate funding for necessary transportation improvements that will benefit all travel modes, while also incentivizing development that is less dependent on expensive, new transportation.

Economic Development Element Policy
• Policy ED-1.9: Cannabis Cultivation. Develop a comprehensive strategy to position the City as the premier center for cannabis cultivation and production businesses and enterprises that support/complement the developing cannabis industry in the Coachella Valley.
• Policy ED-2.2: Economic Development. Promote economic development through focused land use planning, flexible development standards, and targeted circulation and infrastructure improvements. • Policy ED-2.3: Streamline Permit Process. Maintain a development permitting process that provides clarity, consistency, and assistance opportunities for new businesses and existing businesses looking to expand.

Impact on the Downtown Study Area
Allowing housing to be built over commercial buildings can support businesses by increasing the base of nearby customers or potential employees. Residents who have convenient access to downtown destinations will be more likely to visit, and do so without the need to drive. Expanding the areas where housing is allowed will increase the number of people who can take advantage of planned improvements to the walkability and bike-ability of the downtown. Furthermore, allowing housing as an accessory use allows commercial land to be used more efficiently and can increase property values without compromising the City’s goals for commercial development.

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One concern that may be raised is how opening up new opportunities for residential development in the downtown could affect parking availability. This is a valid concern, and one which underscores the importance of implementing the other recommendations of this report, as they are designed to complement and strengthen one another. For example, development standards can help discourage residents from owning more vehicles than necessary.

Residential uses are also complementary in that they typically experience peak parking demand overnight, when the parking demands of other uses are at their lowest. If the City supports walking, biking, and shared mobility— including e-bikes and car share programs—downtown households with lower car ownership will still have attractive transportation options available. Finally, if the City is prepared to implement longer-term strategies, including managing public parking based on demand, making use of new technologies, and creating a parking benefit district, increasing residential density in the downtown is nothing to fear and will only increase the vibrancy of the area.

This recommendation aligns with the Desert Hot Springs Downtown Concept Plan—which was recently prepared by California Polytechnic State University students, in collaboration with City staff and based on feedback from community members. The Downtown Concept Plan also recommended rezoning all Residential-Low and Residential-Medium areas of downtown to Mixed-Use Neighborhood, which would allow higher densities. Some of the parcels which would be re-zoned are within the Downtown Study Area, on the north side of First Street and the south side of Acoma Avenue. The Downtown Concept Plan also recommends re-zoning General-Commercial parcels to Downtown-Commercial.

Residential uses should also be allowed by right in Downtown-Commercial zones, but the City may limit them to upper floors. For example, as shown in Figure 36, the City of Santa Monica’s zoning code includes L(1) as a category in addition to more standard categories such as P (Permitted) or CUP (Conditional Use Permit).

The L(1) category in Santa Monica’s zoning code references the following limitation:
• “Limited to upper floors, and on the ground floor where the entire tenant space shall be located at least 25 feet from the front property line, except for residential units shall be limited to upper floors only.” This zoning has supported the City in creating a dense, walkable downtown, with apartments built above retail establishments.

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Figure 36: Example of Santa Monica’s L(1) Zoning Category Permitting Residential Units on Upper Floors Source: City of Santa Monica Municipal Code, 2023.

Impact on the Industrial Cannabis Study Area
Opening new opportunities for residential units to be constructed above light industrial development is a more innovative strategy, but it is supported by similar rationale to the downtown area; the housing could increase the pool of potential workers in the area and decrease average vehicle miles traveled, as many other jobs and locations (including schools, supermarkets, and many local businesses) would be only a short distance away. Light-Industrial zoning in Desert Hot Springs already allows a maximum structure height of five stories, so upper levels could potentially be developed as residential units. Allowing housing on upper levels creates potential light industrial land to be used even more efficiently and can increase property values without compromising the City’s goals for Item Number: 8.

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industrial development. Allowing housing to be built on upper levels does not mean it would make sense for every development, but some developers might see on-site housing as an appropriate and compatible use to include in their projects, which could provide financial security for the project and a valuable benefit for the community.

Traditional zoning codes separate industrial uses from residential uses, but advances in technology have made many industries cleaner, safer, and quieter—and potentially compatible with housing. Both residents and cannabis businesses might mutually benefit from an increased sense of security, as businesses often employ on-site security personnel, which could make residents feel safer, and residents provide more “eyes on the street” who would be likely to notice and report any suspicious activities.

With thoughtful plans and policies in place to manage parking demand, residential components of new light industrial developments would not necessarily create parking difficulties in the area. Indeed, employment centers such as in Silicon Valley have begun exploring providing housing in place of the parking at large employment sites.

Policies that discourage private parking and support sustainable transportation will help ensure new developments attract residents who want to work nearby or who can live comfortably with fewer vehicles. There may also be shared parking opportunities, as residential and industrial developments generate peak parking demand at different times of day. Another benefit is that mixed-use developments could significantly contribute to street safety improvements—such as creating sidewalks, developing dedicated bike/scooter lanes, and installing speed bumps—which would benefit residents and employees alike.

Financial Implications and Staffing Requirements
Allowing residential development as an upper-floor use in Downtown-Commercial and light-industrial zones could increase the economic viability of projects, increase property values, and expand the City’s tax base. Increasing residential densities in the downtown and industrial cannabis study areas would also result in more efficient use of financial resources that promote sustainable transportation in these key areas.

Like the other policies recommended thus far, expanding the areas where mixed-use and infill development is allowed would primarily require drafting a new ordinance (establishing a new category of permitted uses such as L(1)), and occasionally performing more detailed site plan reviews, with minimal additional staff time required. New upper level residences will also result in increased demand for public services, but this would occur regardless of where new housing units are located.

5. Support Walking, Biking, and Shared Mobility
Explanation and Rationale
Desert Hot Springs has the opportunity to transform its transportation and land use system so that equitable, healthy, and sustainable modes of transportation are not only the most affordable, but also the most convenient and enjoyable. While the midday heat that occurs for several months a year is certainly a consideration, as are the windy conditions, the mild climate for most of the year provides opportunities for transportation choice. Ultimately, Desert Hot Springs will get what it builds for. A transportation strategy that takes “alternative” modes of travel— including walking, biking, e-bikes, electric scooters, neighborhood electric vehicles, transit services, carpooling, and car sharing—seriously today will eventually result in the following long-term benefits:

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• Access and mobility for those too young, too elderly, too financially constrained, or otherwise unable to drive
• Financial freedom from the expenses of vehicle ownership (the Economic Policy Institute estimated average annual transportation spending for an adult in Desert Hot Springs at $10,624—nearly half of the City’s median income for an individual, and over a quarter of the median household income) • More efficient land use and reduced sprawl, resulting in more affordable housing, opportunities for community amenities, and the preservation of open space • Health and wellness benefits of fresh air and exercise • Greater sense of community
• Reduced automobile accidents and fatalities
• Improved air quality
• Reduced greenhouse gas emissions
• Economic vitality and support for local businesses
• Reduced traffic congestion
• Fiscal sustainability and savings on infrastructure spending By planning for and investing in sustainable transportation and shared mobility, the City can eventually create a system in which individual incentives align with collective goals for health, fiscal responsibility, environmental sustainability, economic vitality, and community.

The City’s strategy should recognize its unique local context—including the warm climate, the grade of the terrain, the low residential density, and the need for connection with the surrounding region. Given these features, the strategy should especially consider opportunities to promote (1) electric bicycles and scooters, which can allow riders to travel uphill with minimal physical exertion and quickly cover longer trip distances within the City, and (2) car sharing opportunities, a convenient transportation option that can allow households who need a car or additional car only occasionally to reduce their vehicle ownership.

The shared mobility strategy should also recognize public transit availability in the area. Fixed route bus services can be expected to improve with time, as demand grows—as population density increases and vehicle ownership rates decrease. SunLine Transit Agency’s on-demand rideshare service, SunRide, can also play an important role in providing transportation access. In the cannabis district in particular, the City should also consider opportunities for commuter transportation, explore regional partnerships, and promote regional commute planning and incentive programs, including Sun Commute, IE Commuter, and SolVan Vanpool Program.

Implementation Actions
While implementation for the previous five strategies is more straightforward, often requiring little more than a zoning ordinance update, the strategy of supporting walking, biking, and shared mobility requires a more thorough outlining of recommended implementation steps. In addition to continuing to implement the recommendations set forth in the 2016 Bicycle and Pedestrian Master Plan, the following actions are advised:

1. Develop an Active Transportation Safety and Connectivity Plan The City of Desert Hot Springs has applied for grant funding to develop an Active Transportation Safety and Connectivity Plan, which will incorporate and update the 2016 Bicycle and Pedestrian Master Plan. Plan objectives Item Number: 8.

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include (1) safer street design, (2) access to greater mobility choices, (3) a more sustainable, resilient, and equitable community, (4) improvements to mobility and connectivity, (5) reductions in greenhouse gas emissions, and (6) improvements to air quality and public health and safety. Having a plan in place for multimodal infrastructure improvements is essential, and other actions listed for this strategy may help with the implementation of projects listed in the Active Transportation Safety and Connectivity Plan.

2. Adopt Mode Share Goals and Align Budget Expenditures Adopting specific targets can help the City monitor its progress toward making sustainable mobility options safer, more convenient, and more appealing to travelers. These targets should also govern general fund transportation expenditures. For example, San Luis Obispo County has a 20 percent mode share goal for bicycling, so their policy requires that 20 percent of spending on transportation supports bicycle infrastructure. Mode share targets could be updated every ten years as the City makes progress toward its goals. Planning efforts are valuable only to the extent that they are implemented, and implementation requires aligning public spending with community goals.

The City should further support mode share goals by establishing corresponding “road share goals.” For example, if the City sets a ten-year goal for bicycle and scooter mode share at 20 percent, the City should plan to allocate a corresponding share of roadway space to dedicated bike lanes. Similarly, the City could plan to allocate 20 percent of the land currently used for automobile parking to bicycle and scooter parking, lockers, and charging.

3. Establish a Sustainable Mobility Impact Fee
The City has ample on- and off-street space dedicated to parking. Further, developers, their lenders, and other financial partners are already inclined to consider parking needs. In order to more quickly level the playing field for sustainable modes, Desert Hot Springs can establish a Sustainable Mobility Impact Fee.

For example, Pasadena has a Traffic Reduction and Transportation Fee. Rates are set per square foot for retail, office, and industrial developments, and by the number of units for residential developments. These funds are used for already-planned pedestrian and bicycle infrastructure projects throughout the City. Similarly, Santa Monica has a “Transportation Impact Fee”, and San Francisco has a “Transportation Sustainability Fee.” Establishing these fees requires a nexus study demonstrating the relationship between the expected transportation impacts of new developments and the cost of addressing those impacts through transportation improvements and trip reduction strategies.

4. Create a Parking and Transportation Demand Management (TDM) Plan The value of creating a Parking and TDM plan was introduced in Section 4, as a way to discourage excessive provision of private and reserved parking. However, this strategy also has significant potential to improve conditions for walking, biking, and shared mobility. Many developers consider private parking necessary for project viability and will therefore need to include equal site level benefits for sustainable travel modes.

TDM measures may include secure bicycle parking, electric bicycle and scooter charging stations, showers and lockers, a fleet of bicycles, car-share parking and membership, shuttle bus services, vanpool programs, transit passes, transportation route displays, multimodal wayfinding signage, tailored transportation marketing services, parking cash-out, or localized infrastructure improvements—such as sidewalks, bike lanes, and lighting, which were identified in the Bicycle and Pedestrian Master Plan as the top barriers to walking and biking in the City.

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5. Promote Regional Commuter Programs
To reduce parking demand and promote sustainable travel choices, the City should explore regional partnerships promoting commuter services already offered by SunLine Transit Agency and the Riverside County Transportation Authority, including:
• SunCommute: SunLine Transit Agency provides materials, meetings, and workshops to employee transportation coordinators and provides staff for presentations to commuters. The agency also offers free trial bus passes and has an employer bus pass program with discounted monthly passes. • IE Commuter is a program of the Riverside County Transportation Commission and the San Bernardino County Transportation Authority. The program helps employers of all sizes set up customized rideshare programs at no cost to the employer. The program also provides commuters with incentives, information, and services that encourage commuters to consider alternatives to driving alone. o Rideshare Incentives and Guaranteed Ride Home Program: IE Commuter offers monthly drawings, as well as a $5 gift card per day rideshare incentive for employees who carpool or vanpool at least five days a month for three or more consecutive months. IE Commuter also offers a Guaranteed Ride Home program, which provides Lyft/Uber or other travel reimbursement for commuters who use rideshare to get to work but may have to leave early due to an emergency or stay late to work unexpected overtime.
• SolVan Vanpool Program: Other services include carpool or vanpool matching and personalized bus or train routing assistance. IE Commuter partners with SunLine Transit to offer the SolVan program, a vanpool incentive program for groups of 5 to 15 people, which provides a $400-500 per month subsidy to offset the cost of the van lease. Vanpool is marketed as a way to save money by splitting the cost of gas, tolls, and parking, enjoy more free time and legroom, reduce wear and mileage on personal vehicles, travel in a more environmentally friendly way, and save time in traffic by accessing HOV lanes.

The City should also explore whether there may be an opportunity to partner with regional agencies and local employers to collaboratively develop a more tailored employee transportation program, such as a commuter shuttle, serving the cannabis district. Especially when tens or even hundreds of employees work similar shifts, as is the case in the cannabis district, shared mobility can deliver many benefits—reducing individual transportation spending, reducing traffic congestion and emissions, reducing parking demand and allowing land to be used more efficiently, and expanding access to employment opportunities.

6. Establish Development Standards and a Plan for Bicycle and Scooter Parking.

Development standards: Requiring secure bicycle parking is one step cities can take to promote sustainable transportation. The California Green Building Standards Code already establishes bicycle parking requirements, but Desert Hot Springs can go further by updating the development code so that new developments must provide secure parking and charging that can accommodate short- and long-term storage of electric bicycles, electric scooters, and larger e-cargo bikes. Any indoor storage and charging rooms should require safety measures such as cinder blocks, upgraded electrical outlets, and sprinkler heads to protect buildings and inhabitants from fire damage and injuries, which can occasionally result from the charging of faulty e-bike and e-scooter batteries.

Planning for public infrastructure: The City should also conduct an inventory of publicly available bicycle and scooter parking, identify locations in need of public bicycle and scooter parking and charging infrastructure, and identify funding sources and a project timeline for implementing the necessary infrastructure.

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7. Explore Potential Connector Routes between Downtown and Key Areas As downtown Desert Hot Springs develops and becomes a more popular destination, the City should explore options that would encourage visitors from key areas to visit using sustainable transportation. Routes could draw new visitors downtown and make non-driving options more accessible for those already planning to visit.

Spa District: Plans for connecting the spa district with downtown could involve creating an aesthetically appealing pedestrian, bicycle, scooter, or even neighborhood electric vehicle route along Miracle Hill Road that connects downtown with the spa district. The City could collaborate with hotels, who could offer their guests access to a fleet of personal electric vehicles, and the City could provide signage and wayfinding along the route and secure parking on Pierson Boulevard and at other tourism destinations, such as Cabot’s Pueblo Museum, or local hiking trails.

During special events, the City may also wish to explore a potential partnership and offer shuttle service from spa district and any nearby high-density residential neighborhoods to the downtown.

Cannabis Area: Cannabis area employees could also be encouraged to explore downtown Desert Hot Springs if there were a dedicated travel route for bicycles and electric vehicles. The Bicycle and Pedestrian Master Plan includes proposed bike lanes for Two Bunch Palms Trail and Cactus Drive; this could connect the cannabis area with downtown, and the City could use signage and wayfinding to specifically promote downtown access. Signage and wayfinding should also indicate transit stop locations and routes. As in the Spa District, the City should explore partnerships with employers to provide their employees access to a fleet of electric bicycles, scooters, or neighborhood electric vehicles, potentially as a TDM option or condition of development. Once a safe and attractive bike and scooter route is created, not only will multimodal commuting be more accessible, but employees may also take advantage of the opportunity to explore downtown during lunch breaks or after work.

8. Explore Opportunity to Create a Downtown Specific Plan that Includes Planning for a Mobility Hub Parking planning touches a broad spectrum of plans and issues related to land use, transportation, and economic development. The broader transportation and land use recommendations contained in this report to improve parking in the downtown therefore, of necessity, go beyond parking. Combined with previous work done by and for the City, it is likely that the next phase of implementation for meaningful implementation of the parking recommendations and other City priorities would be the creation of a comprehensive Downtown Specific Plan.

As part of this plan, the role, location, and programming of a multimodal center, or “mobility hub” in the downtown district should be determined. The mobility hub should be served by SunLine Transit and connected to active transportation infrastructure. Bikes, e-bikes, scooters, and/or shuttles may be made available for first- and last-mile travel to key employment centers, including the Industrial Cannabis district. Micromobility transportation vehicles that utilize improving battery technologies are becoming an increasingly viable, equitable, and sustainable transportation solution, particularly for short trips and first- and last-mile links to transit. Micromobility options could be a key feature of a mobility hub. Some smaller cities in the region are already forming pilot agreements with scooter companies to provide service to the public. For example, we were told that in 29 Palms, Bird scooters available through a pilot program were used not only by tourists, but also in many cases by residents, for daily work trips and errands.

Establishing a central physical presence for active transportation and shared mobility can also help increase awareness of these mode options and create more culture and community around sustainable transportation. If Item Number: 8.

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the City is able to partner with a local nonprofit organization, a mobility hub could also include community programming, such as a bike kitchen, classes, group rides, or a lending library.

Supportive General Plan Policies
Land Use and Community Design Element Policies
• LU-1.5: Reduce Vehicular Trips and Miles Traveled. Coordinate land use patterns with the Mobility and Infrastructure Element to improve and protect air quality, reduce vehicular trips, and promote active transportation modes and transit use.
• LU-1.7: Infrastructure. Ensure that infrastructure is integrated into the community concurrently with new development projects.
• LU-1.9: Community Health through Land Use Planning. Maintain and promote the pattern and linkage of land uses citywide to promote mobility choices and healthy lifestyles. • Policy LU-4.2: Pedestrian-friendly Environments. Accommodate outdoor cafes and neighborhood-serving uses as a means of promoting pedestrian activity and commercial center vitality. • Policy LU-11.1: Efficient Land Use Patterns. Encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl. • Policy LU-12.10: Visual Character. Encourage residential development that enhances the visual character, quality, and uniqueness of neighborhoods and districts.

Mobility and Infrastructure Element Policies
• Policy MI-1.3: Multi-Modal. Aim to develop a multimodal and/or multipurpose approach when implementing infrastructure outlined in the Mobility Plan. • Policy MI-2.6: Rights-of-Ways. Use available public rights-of-ways to provide wider sidewalks, bicycle lanes, trail facilities, and transit amenities.
• Policy MI-3.1: Safety Prioritization. Design, plan, and operate streets to prioritize the safety of the most vulnerable roadway user.
• Policy MI-3.3: Adaptive Street Strategies. Repurpose underused roadway space for safety, mobility, and public space improvements using low-cost, temporary solutions. • Policy MI-3.4: Test Street Improvement. Install temporary, low-cost materials to test street improvement ideas prior to incorporating permanent designs for successful projects. • Policy MI-5.1: Reduce Vehicle Miles Traveled. Implement development and transportation improvements that help reduce greenhouse gas emissions by reducing per capita Vehicle Miles Traveled (VMT), reducing impacts on the City’s transportation network, and maintaining the desired service levels for all modes of transportation.
• Policy MI-5.2: Sustainable Transportation and Land Use Strategies. Implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled. Consider using vehicle daily trips as the benchmark demand for determining potential levels of parking and vehicular congestion. • Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent.

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• Policy MI-10.3: Impact Fees. Ensure that impact fees provide adequate funding for necessary transportation improvements that will benefit all travel modes, while also incentivizing development that is less dependent on expensive, new transportation.
• Policy MI-11.7: Rights-of-Way. Seek opportunities to integrate mobility and infrastructure planning, particularly to efficiently use rights-of-way.

Economic Development Element Policies
• Policy ED-2.2: Economic Development. Promote economic development through focused land use planning, flexible development standards, and targeted circulation and infrastructure improvements. • Policy ED-2.3: Streamline Permit Process. Maintain a development permitting process that provides clarity, consistency, and assistance opportunities for new businesses and existing businesses looking to expand.

Impact on the Downtown Study Area
Adopting mode share goals, establishing sustainable mobility impact fees, linking parking and TDM standards, adding bicycle and scooter parking, and exploring potential connector routes are all important steps to bring about a future where sustainable mobility options are convenient ways for people to access downtown. These actions align with the community’s desire for safe walking and biking infrastructure, support community health and economic vitality, and complement the parking strategies set forth in the previous sections.

In addition to the implementation action items detailed above, Desert Hot Springs should implement the following programs to support active transportation, as recommended in the Downtown Concept Plan:
• M-3.3.1 Build a bicycle kitchen.
• M-4.1.1 Incorporate speed management measures.
• M-4.3.1 Implement a pedestrian signal policy that prioritizes pedestrian safety. • M-4.5.1 Maintain the quality and cleanliness of streets. • M-5.1.2 Ensure maintenance of painted street markings. • M-5.4.1 Create unique pedestrian crossings with paintings that showcase local community artists. • CC-4.1.1 Install water fountains and hydration stations. • C-4.1.3 Develop a Downtown Shade Plan to increase tree canopy and pedestrian shade amenities.

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Impact on the Industrial Cannabis Study Area
Supporting walking, biking, and shared mobility will also benefit the industrial cannabis study area. Safe multimodal infrastructure and regional commuter incentive programs can encourage employees to try sustainable transportation options. When more employees share rides or commute by bikes, e-bikes, and electric scooters, fewer parking spaces will be necessary, and land can be used more efficiently.

Financial Implications and Staffing Requirements
Of the five parking management strategies proposed, supporting walking, biking, and shared mobility is the only one that will require substantial ongoing investment. Fortunately, expanding and maintaining the City’s active transportation infrastructure—including secure parking and safe travel lanes for bikes and scooters—is inexpensive relative to expanding and maintaining automobile infrastructure. Spending decisions should be consistent with the community’s goals, and the City can also pursue additional funding through regional, state, and federal active transportation grants.

A significant investment of City staff time will be necessary to successfully support walking, biking, and shared mobility in Desert Hot Springs. As explained in the implementation section above, this involves developing new goals, plans, partnerships, and policies and identifying, obtaining, and allocating sources of revenue. Planning and policy efforts will require more time in the short-term, while implementation will be ongoing as the City continually seeks to become a place where residents and visitors have a variety of attractive transportation options available and can rely less on private vehicles.

Potential Longer-Term Strategies
This section introduces successful parking strategies that may become relevant for Desert Hot Springs many years into the future, if the City prioritizes livability, health, economic vitality, and sustainability through efficient land use patterns and ensures that new growth and development aligns with the community goals established in the General Plan. Over the next few decades, implementing the above strategies may gradually result in a landscape where surface parking is no longer such a dominant land use, and residents and visitors have a variety of attractive transportation options to choose from for traveling around the City.

1. Manage Public Parking Based on Demand
Explanation and Rationale
While existing conditions in the City do not demonstrate a need for demand-based parking management, the Southern California Association of Governments and the City of Desert Hot Springs share many goals that are supported by having a plan and vision in place for what to do if demand patterns and utilization rates change in the future.

In December 2022, parking utilization downtown ranged from 12 percent to 18 percent; there is an abundance of parking. The ideal occupancy rate is 85 percent, which means parking spaces are well-used but still available and convenient for visitors. This usually translates to one or two empty spaces per block. Many successful business Item Number: 8.

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districts and densely developed areas eventually find that parking occupancies naturally come to exceed this 85 percent threshold in prime locations, and strategies must be developed to maintain availability. Keeping a few spaces are available on each block keeps visitors from having to circle to find a space—saving time, preventing superfluous emissions, allowing people to arrive on-time for appointments and meetings, and ensuring potential visitors do not decide to shop or dine elsewhere due to a lack of convenient parking.

Desert Hot Springs is advised to monitor street parking occupancy, and, if ever warranted by utilization rates that regularly exceed 85 percent, develop and implement a demand-based parking management strategy. • Time limits: One approach to keeping a few spaces available involves creating parking time limits for prime street parking spaces. This can encourage employees and other longer-term parkers find a space off-street or several blocks away, ensuring the most convenient spaces are available for short-term visitors. However, this approach is somewhat limited, as it requires enforcement to be successful. Time limits are cumbersome to enforce, and the City may not wish to issue citations, which can leave visitors with a negative impression of their visit.
• Demand-based pricing: An alternative involves establishing demand-based prices—not set with the purpose of generating revenue, but simply with the purpose of ensuring continued availability. Prices set with this purpose should be kept at the lowest rate that successfully keeps a few spaces available, which supports local businesses downtown. Targeting 85 percent occupancy ensures many people are still visiting the area, and those who want to save on the cost of parking may choose to carpool or park in areas of less demand and walk to their destination.
• Demand-based parking permits: Charging per transaction makes sense where many different people park in an area and most visits occur irregularly. If public parking becomes scarce on streets in residential or industrial areas, it can be more convenient to allow those who park regularly to purchase a permit guaranteeing their access to a street parking space in the area. As with hourly rates in commercial areas, the cost of a permit can be set at the lowest price necessary to successfully manage demand. Many permit areas offer slightly fewer permits than the number of spaces available to keep a few spaces available so that infrequent visitors or guests have an option to purchase a daily parking pass.

It is not anticipated that parking demand would exceed the 85 percent threshold anytime in the near future, and would likely only result from large scale development, but it is important that the City recognize management options are available; otherwise, concerns about availability could derail the sustainability, visual character, affordability, and efficiency of future growth and development. Providing parking involves land costs, construction costs, operation and maintenance costs, and environmental costs.5Free parking subsidizes the true cost of driving and makes solo driving more attractive. The City may wish to continue to subsidize driving through free parking where it has already been developed, to promote access and activity in places where parking occupancy rates are not high enough to justify charging; however, future public investments and subsidies should focus on creating equal access for more sustainable modes of travel.
5 Litman, 2023. Comprehensive Parking Supply, Cost and Pricing Analysis. https://www.vtpi.org/pscp.pdf Item Number: 8.

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Supportive General Plan Policies
Land Use and Community Design Element Policies
• Policy LU-1.5: Reduce Vehicular Trips and Miles Traveled. Coordinate land use patterns with the Mobility and Infrastructure Element to improve and protect air quality, reduce vehicular trips, and promote active transportation modes and transit use.
• Policy LU-1.6: Infill Revitalization. Encourage revitalization of underutilized and vacant infill properties within the City closest to available infrastructure and community services. • Policy LU-1.9: Community Health through Land Use Planning. Maintain and promote the pattern and linkage of land uses citywide to promote mobility choices and healthy lifestyles. • Policy LU-2.7: Higher Residential Density Corridor. Allow higher-density and mixed uses along Palm Drive and Pierson Boulevard to encourage shopping, services, and entertainment amenities in closer proximity to established infrastructure and transit services.
• Policy LU-3.6: Commercial Intensification. Encourage the intensification of commercial uses on underutilized and vacant commercial properties within Downtown and along the Pierson Boulevard and Palm Drive corridors.
• Policy LU-3.10: City-owned Land and Resources. Maximize revenue from the utilization of City-owned land and resources.
• Policy LU-4.2: Pedestrian-friendly Environments. Accommodate outdoor cafes and neighborhood-serving uses as a means of promoting pedestrian activity and commercial center vitality. • Policy LU-11.1: Efficient Land Use Patterns. Encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl. • Policy LU-12.10: Visual Character. Encourage residential development that enhances the visual character, quality, and uniqueness of neighborhoods and districts.

Mobility and Infrastructure Element Policies
• Policy MI-1.3: Multi-Modal. Aim to develop a multimodal and/or multipurpose approach when implementing infrastructure outlined in the Mobility Plan. • Policy MI-3.1: Safety Prioritization. Design, plan, and operate streets to prioritize the safety of the most vulnerable roadway user.
• Policy MI-5.1: Reduce Vehicle Miles Traveled. Implement development and transportation improvements that help reduce greenhouse gas emissions by reducing per capita Vehicle Miles Traveled (VMT), reducing impacts on the City’s transportation network, and maintaining the desired service levels for all modes of transportation.
• Policy MI-5.2: Sustainable Transportation and Land Use Strategies. Implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled. Consider using vehicle daily trips as the benchmark demand for determining potential levels of parking and vehicular congestion. • Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent. • Policy MI-11.7: Rights-of-Way. Seek opportunities to integrate mobility and infrastructure planning, particularly to efficiently use rights-of-way.

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Economic Development Element Policies
• Policy ED-1.9: Cannabis Cultivation. Develop a comprehensive strategy to position the City as the premier center for cannabis cultivation and production businesses and enterprises that support/complement the developing cannabis industry in the Coachella Valley.
• Policy ED-2.2: Economic Development. Promote economic development through focused land use planning, flexible development standards, and targeted circulation and infrastructure improvements.

Impact on the Downtown Study Area
Having a plan to manage public parking should there ever be high demand in the future allows Desert Hot Springs to take meaningful actions today that will welcome sustainable growth and development patterns that are not dominated by parking. This plan helps reveal the true value of parking and supports the efficient use of space, including through incentivizing shared parking. Demand-based parking management strategies align with goals for economic development, infill development, sustainable development, rent affordability, and development density, while also helping local businesses. Other cities have seen an increase in economic activity and sales tax revenue after implementing demand-based pricing. In the long-term, management also has the potential to generate revenue, which can be used to bring local business owners and residents together to develop and fund downtown beautification projects and transportation initiatives that further attract visitors to the area. This idea is further discussed in the Parking Benefit District section.

Impact on the Industrial Cannabis Study Area
Having a plan for demand-based parking management allows the City to make efficient use of the large supply of potential and existing street parking in the industrial cannabis study area. Both offering initial free public parking to incentivize development and offering paid parking permits if parking ever becomes scarce support the goal of increasing revenue from the utilization of City-owned land and resources. When vehicles are allowed to park on the street, developers have more flexible options, which may result in a greater share of off-street land being used for economically productive uses. If so many people take advantage of street parking that it becomes difficult to find a space and causes traffic issues, the City can offer permits. Permit revenue can support program administration and enforcement or alternative transportation programs supporting cannabis area employees.

Financial Implications and Staffing Requirements
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depends on the technology chosen. Ongoing investment depends on the level of enforcement necessary to obtain compliance. Operational costs for paid parking are typically covered by revenues, and a program may even generate revenue, which can fund streetscape beautification projects, cleaning, security, sustainable transportation programs, or whatever projects are prioritized by the local community. Reinvesting revenue in the district where it was generated can create a virtuous cycle, making the area more attractive and drawing in more visitors. When Old Pasadena implemented paid parking, economic activity improved and sales tax revenue in the area increased relative to other commercial centers in the City.

If this strategy ever becomes relevant for Desert Hot Springs, staff time will be required to conduct an initial parking occupancy study and develop a plan. Occupancy rates should be monitored periodically, and adjustments to time limits or pricing should be made as necessary to achieve the goals of the program. Enforcement should occur only as often as necessary to ensure parking availability is maintained.

2. Invest in New Parking Technologies
Explanation and Rationale
The Southern California Association of Governments supports regional cities in pursuing innovative approaches to planning and policy issues. If the City’s parking management becomes more complex in the future, it is well-worth exploring the technology solutions available to create a user-friendly experience and save staff time on administration and enforcement. For example, smart sensors can monitor parking utilization, which can highlight to the public where spaces are available and can provide data that helps staff update rates based on demand. In areas with paid parking, pay-by-plate technologies can facilitate automated license plate reader (ALPR) enforcement and allow staff time to be used more efficiently. The City can also encourage shared parking by partnering with and promoting one of the many mobile apps that allows private property owners to rent out their parking spaces when not in use.

Supportive General Plan Policies
Land Use and Community Design Element Policies
• Policy LU-1.8: Lot Consolidation. Encourage lot consolidation and utilize land assembly strategies and incentives to promote compatible infill developments.
• Policy LU-1.9: Community Health through Land Use Planning. Maintain and promote the pattern and linkage of land uses citywide to promote mobility choices and healthy lifestyles. • Policy LU-2.7: Higher Residential Density Corridor. Allow higher-density and mixed uses along Palm Drive and Pierson Boulevard to encourage shopping, services, and entertainment amenities in closer proximity to established infrastructure and transit services.
• Policy LU-3.6: Commercial Intensification. Encourage the intensification of commercial uses on underutilized and vacant commercial properties within Downtown and along the Pierson Boulevard and Palm Drive corridors.
• Policy LU-3.10: City-owned Land and Resources. Maximize revenue from the utilization of City-owned land and resources.

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• Policy LU-7.6: Innovative Parking Solutions. Allow mixed-use developments to utilize shared parking plans, park once and walk districts, and other innovative and flexible parking strategies. • Policy LU-8.5: Prioritize Industrial Development. Prioritize business attraction and retention of employment and revenue-generating uses on industrial land.
• Policy LU-11.1: Efficient Land Use Patterns. Encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl. • Policy LU-11.2: Cluster Development. Encourage proposed projects within designated conservation areas to cluster development to provide for the greatest amount of conservation while respecting surrounding established and planned uses.

Mobility and Infrastructure Element Policies
• Policy MI-3.1: Safety Prioritization. Design, plan, and operate streets to prioritize the safety of the most vulnerable roadway user.
• Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent. • Policy MI-11.7: Rights-of-Way. Seek opportunities to integrate mobility and infrastructure planning, particularly to efficiently use rights-of-way.

Impact on the Downtown Study Area
Parking technologies can benefit the downtown in the following ways:
• Facilitating demand-based management.
• Helping drivers see available parking locations and decide where to park. • Removing friction from the payment process.
• Providing occupancy data to inform rate adjustments.
• Increasing the ease and efficiency of enforcement.
• Creating potential for downtown business parking validation programs. • Promoting sustainable land use and helping local owners benefit economically through sharing parking.

Impact on the Industrial Cannabis Study Area
Parking technologies can benefit the industrial cannabis study area in the following ways:
• Facilitating demand-based management through plate-based permits. • Allowing occasional visitors to park on an hourly or daily basis. • Providing occupancy data to inform management decisions. • Increasing the ease and efficiency of enforcement, ensuring spaces are available and parking does not create traffic issues.
• Promoting sustainable land use and helping local owners benefit economically through sharing parking.

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Financial Implications and Staffing Requirements
The costs and benefits of each technology should be considered at the time additional parking management becomes necessary, based on community needs and input. Technologies are continually developing, and while it is worthwhile to know what options may be available, it may be many years before it makes sense for Desert Hot Springs consider investing in new parking management solutions.

Staff time will be required to explore options and conduct outreach with local business owners, community members, and City staff members to determine which technologies best meet their needs.

3. Create a Parking Benefit District
Explanation and Rationale
A parking benefit district is a public-private partnership which facilitates the comprehensive management of parking resources (on- and off-street and, ideally publicly and privately owned), giving the business community and resident stakeholders an active role in identifying parking issues, needs, and opportunities, making decisions, and allocating parking revenue for local programs or projects. This helps ensure that public spaces are managed in a way that most benefits the community, and it also helps generate buy-in and support for the parking management program, as stakeholders see how it will benefit them. When the parking program results in revenue, stakeholders may choose how the revenue is used—for initiatives like downtown street beautification projects, active transportation infrastructure, shuttles, or employee cash outs or e-bike rebates.

Parking Benefit District Example: Old Pasadena
Pasadena is a mid-sized city in Los Angeles County with a thriving business district, Old Pasadena, that now attracts many visitors for shopping and dining. Old Pasadena was one of the earliest adopters of what has come to be widely accepted as a best practice in parking management, the “parking benefit district” model. Pasadena also uses pricing to ensure convenient street parking is available for short-term visitors, limits parking supply in transit-oriented development areas, and uses transportation impact fees to fund sustainable mobility projects.

Initially, Old Pasadena had no parking management other than two-hour time limits. City staff suggested installing meters, but some business owners were concerned that charging for parking would discourage potential customers from visiting. Then, the City proposed using all parking revenue to fund public improvements within the parking meter zone and allowing advisory board members to control the use of revenue. Merchants and property owners accepted this idea. The parking meters resulted in greater availability of convenient curb parking for customers, and customers willing to pay for parking seemed to be more willing to spend more money in Old Pasadena. Retail sales and tax revenue in Old Pasadena increased significantly following the installation of parking meters in 1993, including when compared to other commercial districts in Pasadena, as shown in Figure 37.

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Figure 37: Retail sales-tax revenue in Old Pasadena before and after installing parking meters in 1993 Source: Access Magazine, Turning Small Change Into Big Changes, Kolozsvari and Shoup, 2003.

Meter revenues were used to fund street furniture, trees, tree grates, lighting fixtures, cleaning services, marketing, and security services and patrols for the area. These public improvements attracted more visitors, which resulted in higher meter revenues and created a “virtuous cycle” of continual improvements credited with revitalizing the downtown. A marketing campaign assured visitors that their parking fees would be used to benefit Old Pasadena.

Thirty years after initial implementation, the Parking Benefit District is still delivering benefits to the area. In October 2022, Pasadena’s Director of Transportation provided the Old Pasadena Parking Meter Zone Advisory Commission with a report on the parking meter fund’s revenues, expenses, and projections through the end of the year. The fund was estimated to end with a balance of approximately $1.6 million, with $900,000 designated to cover operations and meter replacement expenses, and approximately $682,000 available for appropriations. The Advisory Commission is composed of seven members—three property owners in the area, three business owners who rent property, and one “at large” member who may be either. The commissioners guide the expenditure of meter revenue and recommend meter rate adjustments.

Source: Parking Matters in Old Pasadena,
Kolozsvari and Shoup, 2018.

Old Pasadena Parking Meter
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• Policy LU-3.10: City-owned Land and Resources. Maximize revenue from the utilization of City-owned land and resources.
• Policy LU-4.2: Pedestrian-friendly Environments. Accommodate outdoor cafes and neighborhood-serving uses as a means of promoting pedestrian activity and commercial center vitality. • Policy LU-7.6: Innovative Parking Solutions. Allow mixed-use developments to utilize shared parking plans, park once and walk districts, and other innovative and flexible parking strategies. • Policy LU-8.5: Prioritize Industrial Development. Prioritize business attraction and retention of employment and revenue-generating uses on industrial land.
• Policy LU-11.1: Efficient Land Use Patterns. Encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl. • Policy LU-12.10: Visual Character. Encourage residential development that enhances the visual character, quality, and uniqueness of neighborhoods and districts.

Mobility and Infrastructure Element Policies
• Policy MI-1.3: Multi-Modal. Aim to develop a multimodal and/or multipurpose approach when implementing infrastructure outlined in the Mobility Plan. • Policy MI-2.6: Rights-of-Ways. Use available public rights-of-ways to provide wider sidewalks, bicycle lanes, trail facilities, and transit amenities.
• Policy MI-3.1: Safety Prioritization. Design, plan, and operate streets to prioritize the safety of the most vulnerable roadway user.
• Policy MI-3.3: Adaptive Street Strategies. Repurpose underused roadway space for safety, mobility, and public space improvements using low-cost, temporary solutions. • Policy MI-3.4: Test Street Improvement. Install temporary, low-cost materials to test street improvement ideas prior to incorporating permanent designs for successful projects. • Policy MI-5.1: Reduce Vehicle Miles Traveled. Implement development and transportation improvements that help reduce greenhouse gas emissions by reducing per capita Vehicle Miles Traveled (VMT), reducing impacts on the City’s transportation network, and maintaining the desired service levels for all modes of transportation.
• Policy MI-5.2: Sustainable Transportation and Land Use Strategies. Implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled. Consider using vehicle daily trips as the benchmark demand for determining potential levels of parking and vehicular congestion. • Policy MI-9.4: Special Assessments. Support special assessment districts for street and traffic improvements.
• Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent. • Policy MI-11.7: Rights-of-Way. Seek opportunities to integrate mobility and infrastructure planning, particularly to efficiently use rights-of-way.

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Open Space and Natural Resources Element Policy
• Policy OS-2.4: Air Quality Goals. Ensure that land use and transportation plans support regional air quality goals, with new development projects reducing vehicle miles traveled and vehicle trips.

Impact on the Downtown Study Area
If parking demand downtown ever justifies and leads to considering paid parking as a parking management tool, a parking benefit district should be implemented at the same time. This can allow downtown business and property owners to participate in a shared vision for the future of downtown Desert Hot Springs by informing decision making and allocating any parking revenues generated in the area for local improvements. Other parking benefit districts have chosen to use their paid parking programs to fund “clean and safe” programs, downtown ambassadors, free downtown Wi-Fi, landscaping and street beautification, public parking structures, cleaning and security services, and employee transportation wallet programs. Parking benefit districts help generate political buy-in for paid parking programs and result in more informed management of public and shared parking. Business owners often have important insights about the transportation needs of their employees and visitors and can offer valuable suggestions for localized parking management solutions.

Impact on the Industrial Cannabis Study Area
If parking demand in the industrial cannabis study area increases enough to justify permitted parking, a parking benefit district could be implemented at the same time to help manage the parking supply efficiently and allocate revenue. In collaboration with business owners and employees, the City can determine the optimal monthly permit cost that would sufficiently reduce street parking demand while still ensuring spaces are well-utilized. Stakeholders would include anyone who lives or works in the area, including those who drive alone, carpool, or use alternative transportation. Based on their input, revenue could be used to fund employee transportation programs (such as carpool incentives, park and ride shuttles, or e-bike or scooter rebates), active transportation infrastructure, or street safety improvements.

Financial Implications and Staffing Requirements
If Desert Hot Springs experiences high parking demand in the future, parking benefit districts can help the City obtain the stakeholder buy-in necessary to implement paid parking programs. These programs can manage parking demand efficiently while also generating revenue to fund local projects and programs. Well-managed public parking and alternative transportation initiatives can also increase property values and make an area more desirable to developers or potential business owners.

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Staff time would be required for the initial establishment of any parking benefit districts. After the initial process, staffing requirements from the City would be minimal and would mainly consist of holding monthly or quarterly meetings with parking benefit district stakeholders.

4. Prepare to Manage Parking with Dedicated City or Contract Staff As Desert Hot Springs grows, and both the Downtown and Industrial Cannabis District grow larger, parking planning and enforcement capabilities for on- and potentially off-street parking will be needed. Ultimately, Walker recommends that additional staff who are dedicated to ensuring parking functionality and regulation compliance monitor parking conditions in the City, enforce parking restrictions, and interface with private parking owners to work on a collaborative approach to providing parking.

Appendices
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Appendix A: Exploratory Calculations and
Discussion of Future Conditions
Introduction
The future of parking and access needs in Desert Hot Springs depends on the ability of existing parking infrastructure to be used efficiently to absorb demand, and also on the community’s desire and ability to leverage interventions, transportation demand management initiatives, and infrastructure investments to support travel by modes other than driving alone.

This chapter's intent is to assess how future development and population growth trends in the City of Desert Hot Springs will likely impact street parking demand in (1) the downtown area and (2) the industrial cannabis district, and to provide insights into the potential benefits of public parking management in the long-term.

Commercial and industrial development, new housing, population shifts, transportation service and infrastructure decisions, and many other factors will impact parking demands both in quantity and in how they are distributed throughout the city. Parking in the study areas may be affected by population growth within the City boundaries and by economic growth and development that brings additional employees or visitors from other regions to the area. To project future public parking supply and demand for the City, the analysis in this chapter considers a planning horizon that extends to 2045, the same horizon used in population growth projections developed by the Southern California Association of Governments (SCAG). The analysis includes the following scenarios:
• Downtown study area; base growth
• Downtown study area; aggressive growth
• Industrial cannabis study area; base growth
• Industrial cannabis study area; aggressive growth
The base growth scenario for the downtown study area considers population growth projections, zoning and development potential, and the City’s strategic goals for future commercial build out. The base scenario is then adjusted to explore the potential impact of more aggressive growth and economic development. For the industrial cannabis study area, both scenarios combine observations of parking demand made at existing facilities with industrial build out possibilities based on projections provided by the City.

The chapter concludes by interpreting the findings of the future conditions analyses and previewing the potential impact of developing more proactive policies and practices. The projections provide insight into what could happen if future travel and development patterns reflect the status quo, but it is also possible for the City to help shape travel behavior and parking provision to better support efficient land use and multimodal transportation.

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Future Downtown Parking Demand
An understanding of the factors of existing downtown parking supply and demand is necessary to be able to model how a variety of different assumptions for future conditions—inputs related to economic development, population growth, and parking management practices—might affect the demand for parking in the downtown study area.

This section uses data, develops assumptions, and relies on the Shared Parking model to construct base growth and aggressive growth scenario projections of parking demand.

The major factors that contribute to downtown parking demand are types of land uses, square footage or similar metrics for those land uses, and how people access downtown (mode split). The number of residential units in the area, visitors, frequency of trips and peak demand, resident vehicle ownership also play a role. These factors are explored in more depth in the subsections below.

To gather relevant information for the downtown study area, Walker consulted Replica data, a proprietary data set that provides data related to mobility, land use, people, and economic activity from location-based mobile apps, connected vehicles, and demographic data from public and private sources. Replica tracks origin and destination behaviors by land use and travel mode.

Residential Land Use - Existing
A sizeable amount of the downtown study area contains residential buildings. Residential land uses can sometimes contribute to street parking demand, but single family homes and multi-family developments often include ample off-street parking. In Desert Hot Springs, approximately 197,000 square feet, or 36 percent of the land in the downtown study area is currently used for single-family residences, according to Replica data. Approximately 95,000 square feet, or 18 percent, is used for multi-family residences. There are approximately 84 single-family homes and 161 multi-family dwelling units in the study area.

Within the study area, approximately 5 percent of households have no vehicles available, 33 percent have one vehicle, 30 percent have two vehicles, and 32 percent have three or more vehicles. Table 1 below uses this information and an assumption of an average of 3.5 vehicles per 3+ vehicle household to calculate the approximate number of resident-owned vehicles in the study area, for a total of 502 vehicles.

Table 1: Resident-owned vehicles in the Downtown Study Area Number of
Dwelling Units
0 Vehicle
Households
1 Vehicle
Households
2 Vehicle
Households
3+ Vehicle
Households
Total
Vehicles
Single-Family 84 4 28 25 27 172
Multi-Family 161 8 53 48 52 330
Source: Data – Replica, 2023. Table and calculations - Walker Consultants, 2023.

The minimum parking requirements for multi-family dwelling units are 1.5 covered spaces for studio and 1- bedroom apartments, 2 covered spaces for 2-bedroom apartments, and 2.5 covered spaces for apartments with three or more bedrooms. Buildings are also required to provide one uncovered guest space for every five units.

Assuming an average of 2 spaces per multi-family unit would result in 322 covered spaces and 32 uncovered guest spaces, or a total of 354 spaces associated with multi-family housing in the downtown area. Single-family homes Item Number: 8.

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are required to have 2 spaces in an enclosed garage, which usually results in at least two additional spaces on the driveway. Assuming four spaces per home would result in approximately 336 off-street spaces associated with single-family homes. Based on these assumptions, the total estimated supply of residential off-street parking is approximately 690 spaces, which significantly exceeds the estimate of resident-owned vehicles and suggests residential demand is not currently a significant factor contributing to demand for street parking downtown.

Residential Land Use - Future
According to SCAG’s Connect SoCal Demographics and Growth Forecast, the population of Desert Hot Springs is projected to increase from 29,000 in 2016 to 61,000 in 2045, or by approximately 1,100 residents per year. The number of households is projected to increase from 9,300 to 24,700, or by approximately 530 per year.

The 2021-2029 Housing Element included a Regional Housing Needs Allocation of 3,693 new housing units by 2029.

The site analysis did not indicate or plan for any significant housing developments in the downtown study area, although the zoning code does permit residential development in the Mixed-Use Neighborhood zones on the south side of 1st Street and the north side of Acoma Avenue (see the purple areas in Figure 1). Because many of these parcels currently contain single family homes, some parcels may be redeveloped now that zoning allows for increased density—up to 15 dwelling units per acre and building heights of up to three stories.

Figure 1: Downtown Study Area Zoning Map
Source: City of Desert Hot Springs, 2023.

There are not currently plans or identified sites for new housing within the downtown study area, but it is possible some residential development will occur due to the increase in allowable density. However, most new housing developments tend to provide ample off-street parking regardless of parking requirements. Given this fact, and the estimated surplus of residential parking that currently exists, this analysis assumes that any new residential buildings that may be constructed downtown are unlikely to significantly affect parking demand in the study area. 1 2 3 4
5 6 7 8 9 10
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Commercial Land Use - Existing
The land along Pierson Boulevard and Palm Drive is zoned either General Commercial or Downtown Commercial (see the red areas of Figure 1). Currently, there are a variety of establishments in this area, including restaurants, retail, professional services, funeral parlors, offices, religious institutions, and City Hall. There are also several vacant parcels. Parking lots comprise a sizeable share of land in the downtown. There are approximately 800 on-street spaces and 999 spaces in parking lots, not including driveway and garage spaces associated with single family homes or parking lots with fewer than five spaces.

Table 2 below displays Replica summary data with estimates of existing building uses and square footage within the downtown study area:

Table 2: Current Building Square Footage by Use in the Downtown Study Area Building Use Area (square feet) % of Total
Single-Family Residential 197,000 36%
Retail 103,000 19%
Multi-Family Residential 95,000 18%
Office 84,000 15%
Non-Retail Attraction 42,700 8%
Other Categories 20,900 4%
Total 542,600 100%
Source: Data – Replica, 2023. Table and calculations - Walker Consultants, 2023.

There are currently 250,600 square feet, or slightly less than half of the downtown building area, occupied by nonresidential buildings. However, some of these buildings may be vacant. With the current build-out, the “typical day” peak parking demand was observed at 9:00 am on a Thursday. There were 325 parked vehicles observed in the study area at this time, a parking utilization rate of 18 percent.

Commercial Land Use – Future
The map in Figure 1 shows that slightly more than half of the land in the downtown study area is zoned commercial.

The Mixed-Use Neighborhood zoning also allows commercial development, and it is assumed that commercial uses will represent a greater share of downtown study area in the future.

There are approximately 1,557,000 square feet in the study area zoned as either General Commercial or Downtown Commercial (see Table 3). Both commercial zoning districts have a maximum floor area ratio (FAR) of 0.30, which means the combined eventual build out in these zones could potentially include approximately 467,000 square feet of commercial development. In addition, there are approximately 1,117,000 square feet zoned as Mixed-Use Neighborhood, which allows a maximum floor area ratio of 1.00 for nonresidential uses, so these areas could potentially accommodate an additional 1,117,000 square feet of commercial development in the downtown study area, for a total maximum potential build out of approximately 1,584,000 square feet.

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Table 3: Approximate Square Footage by Zoning in the Downtown Study Area Block Zoning Square Feet Zoning Square Feet
1 C-G 194000 MU-N 206000
2 C-D 231000 MU-N 150000
3 C-D 186000 MU-N 0
4 C-D 100000 MU-N 91000
5 C-G 91000 MU-N 87000
6 C-G 102000 MU-N 95000
7 C-G 210000 MU-N 179000
8 C-D 223000 MU-N 154000
9 C-D 121,000 MU-N 67000
10 C-D 99,000 MU-N 88000
Total C-G and C-D: 1,557,000 MU-N: 1,117,000
FAR-Adjusted
Total
FAR of

0.30 467,000 FAR of

1.00 1,117,000
Source: Data – Replica, 2023. Table and calculations - Walker Consultants, 2023.

Future Commercial Development Assumptions
The potential build-out of 1,584,000 square feet would represent a commercial density increase of over 600 percent compared with the current non-residential building footprint of just over 250,000 square feet. However, this is unrealistic, as it would involve the redevelopment of almost all parcels, including all residential parcels, and would also mean each redevelopment included the maximum commercial development footprint allowed by code.

Furthermore, although the existing commercial building footprint is 250,000 square feet, not all buildings are currently occupied or used in ways aligned with the City’s long-term strategy for the area. Some growth may involve construction that increases the total commercial development footprint, while other growth may simply entail the occupancy of vacant buildings or adaptive reuse that supports the City’s vision for downtown.

Based on these considerations, this analysis makes the following assumptions for the future footprint of commercial development:
• Base Scenario: 312,500 square feet by 2045 (25% growth from existing non-residential footprint) • Aggressive Scenario: 375,000 square feet by 2045 (50% growth from existing non-residential footprint) In the future, the City envisions an economic growth development strategy for the downtown area that prioritizes food and beverage establishments, retail, offices, and health and wellness businesses. The City imagines the following mix of commercial land uses downtown:
• 50% Food and Beverage
o 25% Bar - Restaurant
o 25% Family Restaurant
• 25% Retail, including retail with a health and wellness focus • 25% Office, including offices related to health and wellness Item Number: 8.

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As new commercial developments arise, and existing land uses change and intensify, parking utilization and demand patterns are likely to shift as well.

Shared Parking Model
To estimate the parking demand if the City’s economic development strategy comes to fruition, Walker consulted Shared Parking, a model created in partnership by Walker, the Urban Land Institute (ULI) and the International Council of Shopping Centers (ICSC). The model is designed to project the parking generation of various types of development from 6:00 a.m. to 12:00 midnight on a typical weekday and a weekend for every month of the year.

The methodology was originally developed in the 1980s and has been a widely accepted industry standard for rightsizing parking facilities over the past 30+ years. However, it is noted that the model assumes suburban contexts with a driving ratio, or share of people driving to the site, at or near 100 percent. By default, it does not account for potential interventions to encourage people to arrive to a downtown via non-driving modes. The model includes the following:

1. Base Ratios: Shared Parking starts with inputs for the type and quantity of land use to be analyzed. Each land use has a specific metric considered by the parking industry to be a reliable measure of parking demand for that use. For example, for retail, food and beverage, and office uses, that metric is square footage (gross leasable area or GLA). The model provides a base parking demand ratio for each land use.

2. Non-Captive Adjustments: A shared parking analysis recognizes that people often visit two or more establishments within an area, without increasing the overall parking demand. The noncaptive ratio is an estimate of the percentage of parkers at a land use who are not already counted as being parked at another of the land uses. The term "captive" has been borrowed from market researchers to describe people who are already present in the immediate vicinity and are likely patrons of a second use. For example, it assumes that 2 percent of professional employees dine within the area where they work.

3. Presence Factors: Adjustments are made to the shared parking model to account for parking demand variability by hour of day and month of year. These time-based adjustments are referred to as a “presence” adjustment. Presence is expressed as a percentage of the peak hour demand on a typical day for both time of day and month of the year. The Third Edition of Shared Parking provides these presence factors for all land uses. Walker used the presence factors recommended in Shared Parking Third Edition.

4. Shared Parking Reductions: The model uses the adjusted hourly and monthly parking demand estimates for each use to determine the total parking supply needed to serve the area during peak hours if parking is shared across uses. Some land uses generate more parking demand during the mornings or afternoons, while others may be busier during the evenings. Similarly, some land uses typically generate more parking demand during weekdays, while others are busier on weekends. Planning for shared parking can help cities and businesses use existing parking infrastructure efficiently and avoid unnecessary public or private investments, freeing up financial resources and improving the walkability and aesthetics of a downtown.

For a large study area, shared parking works best if complementary uses that generate parking demand at different times of day or days of the week are located in proximity to one another.

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Base and Aggressive Growth Scenario Projections
Inputs and Base Parking Demand Ratios
The base growth scenario assumes that by 2045, the City will have 312,500 square feet of active commercial development aligned with its intended mix of land uses. The aggressive growth scenario uses the same split of land uses but assumes 375,000 square feet of development. Table 4 shows the weekday and weekend parking demand ratios for each land use and calculates the total number of parking spaces that represent the maximum parking demand for the scenario, if all developments are successful and no actions are taken to support alternatives to solo driving. The base ratios are not yet adjusted for non-captive adjustments, presence factors, or shared parking reductions. As the table shows, bars and restaurants are typically associated with especially high parking demand per thousand square feet of development.

Table 4: Shared Parking Model Inputs and Base Parking Demand Ratios Land Use
Share of
Development
Base Scenario
Square Footage
Aggressive Scenario
Square Footage
Weekday Base
Demand Ratio
Weekend Base
Demand Ratio
Bar – Restaurant
25% 78,125 93,750 15.25 spaces
per 1000 sf

17.50 spaces
per 1000 sf
Family
Restaurant
25% 78,125 93,750 15.25 spaces
per 1000 sf

15.00 spaces
per 1000 sf
Retail
25% 78,125 93,750 2.90 spaces
per 1000 sf

3.20 spaces
per 1000 sf
Office
25% 78,125 93,750 3.50 spaces
per 1000 sf

0.35 spaces
per 1000 sf
Total 100% 312,500 375,000
Source: Parking Ratios – Shared Parking Model. Table - Walker Consultants, 2023.

Adjusted Parking Demand Estimates
The Shared Parking model calculations included adjustments for non-captive ratios, presence factors, and shared parking reductions to provide the weekday and weekend peak parking demand estimates shown in Table 5. Given the mix of land uses, the model suggested peak demand would occur in the month of December, around 8:00 pm on weekday evenings. The model projected a peak demand of 2,308 spaces for the base scenario, which includes a 29 percent reduction due to shared parking. The parking demand for the aggressive growth scenario corresponded with the assumed increase in the commercial development footprint, for an estimated peak parking demand of 2,766 spaces on a weekday in December at 8:00 pm.

Table 5: Base Growth Scenario – Adjusted Downtown Parking Demand Estimates Weekday Peak Weekend Peak
Shared Parking Reduction 29% 31%
Base Scenario Parking Demand 2,308 spaces 2,193 spaces
Aggressive Scenario Parking Demand 2,766 spaces 2,630 spaces Source: Calculations - Shared Parking Model. Table - Walker Consultants, 2023.

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Considerations and Interpretation
These downtown parking demand projections are merely exploratory calculations, and it is important to consider the following when planning for the future of parking in downtown Desert Hot Springs:
• Parking demand ratios are not set in stone. The City also has opportunities to proactively shape and manage parking demand through policy and planning initiatives. If the City prioritizes walkability and sustainable transportation, actual parking demand could be significantly less than what was indicated in the projection, even if development were to occur according to the projection’s assumptions. • The time horizon for achieving the City’s desired mix of land uses for the downtown area may take longer than this analysis assumes, given that new land use regulations do not apply retroactively. • If the City is successful in achieving its vision for downtown, the footprint of commercial buildings will expand, and the mix of commercial land uses will approach the City’s goals for the area, but this growth will still happen gradually.
o In December 2022, the peak demand observed downtown was 324 vehicles, or 18 percent of the current supply of 1,799 spaces.
o The base scenario’s estimated demand for December 2045 is 2,308 parking spaces. o If growth and development over the coming years were to occur linearly, it would take over sixteen years before parking demand in the downtown began to exceed capacity, even if new commercial developments provided no additional parking.

It is also worth considering the future parking demand estimates in the context of existing parking requirements.

Under the current development code Section 17.48.040, both projected growth scenarios would result in a large supply of unnecessary parking. Table 6 shows how, if minimum parking requirements were maintained, the base growth scenario would involve a parking supply increase to 2,786 spaces, and the aggressive growth scenario would involve an increase to 3,344 spaces. Excess surface parking supply degrades walkability and the natural environment, and parking garages cost tens of thousands of dollars per space to construct and maintain, so these projections serve as a warning that underscores the importance of developing policy to support shared parking.

Table 6: Existing Parking Requirements Applied to Future Downtown Development Scenarios Land Use
Base Scenario
Square Footage
Aggressive
Scenario
Square Footage
Existing Parking
Requirement
Base Scenario
Supply
Aggressive
Scenario Supply
Bar –
Restaurant
78,125 93,750 1 per 75 sf 1,042 1,250
Family
Restaurant
78,125 93,750 1 per 75 sf 1,042 1,250
Retail 78,125 93,750 1 per 250 sf 313 375
Office 78,125 93,750 1 per 200 sf 390 469
Total 312,500 375,000 2,786 3,344
Source: Walker Consultants, 2023.

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One final consideration is the relationship between parking policy and new development. Minimum parking requirements often constrain new development, and they could potentially prevent the growth scenarios from occurring at all. On the other hand, policy that supports more efficient use of parking resources and minimizes the parking footprint can help make the downtown a walkable destination that attracts visitors and new businesses.

Ultimately, the growth scenarios reveal the potential for parking demand to increase gradually but significantly as new commercial developments locate downtown, and land uses come to align with the City’s strategic vision for the area. Proactively developing parking management strategies can help Desert Hot Springs ensure that policies and plans support the City’s overarching vision and goals for the future.

Future Industrial Cannabis Area Parking Demand
Methodology
Industrial cannabis is a relatively new land use, and the parking demand associated with this kind of development has not been studied as closely as the parking demand for other uses, such as offices, retail, and food and beverage establishments. Applying the broader “light industrial” category to industrial cannabis may result in inaccurate demand projections. Even if there were well-established parking ratios for industrial cannabis, this broad classification can include a variety of specific activities, each of which may have very different trip generation rates.

For example, this category could include growing, trimming, testing, processing, packaging, and distribution. A facility where cannabis is grown as well as processed may occupy a greater footprint than one where it was only processed, but the increased square footage would not necessarily correspond with a proportionate increase in vehicle travel.

Given the uncertainties related to the parking demand for industrial cannabis land uses, this analysis considers actual parking demand observations from a sample of nine facilities and the nearby street parking within the industrial cannabis study area. Demand counts were conducted at these facilities during peak demand hours (between 10am-2pm, capturing the overlap of multiple shifts) on Thursday, December 1st. In addition to counting the vehicles in parking lots, Walker observed 68 vehicles parked on nearby streets, including 56 cars along Two Bunch Palms Trail and 12 cars on San Jacinto Lane. To ensure these vehicles are included in the calculations, the 56 vehicles on Two Bunch Palms Trail are added to the off-street parking demand for the facility at 65000 Little Morongo Road, and the 12 vehicles on San Jacinto Lane are added to the off-street parking demand facilities at 65242 San Jacinto Lane and 65282 San Jacinto Lane, which have a reciprocal parking agreement. These totals are displayed in the Parking Occupancy Observation column in Table 7 below.

The City provided the square footage for each of the nine facilities, and Walker calculated a parking demand ratio for each individual facility, as well as a combined average. Table 7 displays the parking demand ratio for each facility, the total square footage, the total number of vehicles observed, and the composite parking demand ratio from all nine facilities. The composite ratio was .59 vehicles per thousand square feet of development; however, this also includes the Industrial Park, which includes cannabis-related businesses but could include other businesses as well.

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Table 7: Observed Parking Demand Ratios
Facility Address Associated Business Square Footage Parking Occupancy Observation
Vehicles per 1000
Square Feet
13300 Little
Morongo Road
Desert Hot Springs
Green Horizons,
Inc. (Med Men)
45,000 10 0.22
13310 Little
Morongo Road
NUMACO, LLC 180,900 116 0.64
15850 Little
Morongo Road
Industrial Park 309,425 144 0.47
65000 Two Bunch
Palms Trail
Med for America,
Inc. 381,053 236 0.62
65283 Two Bunch
Palms Trail
TBP Indoor
Facilities - T2 30,550 8 0.26
65321 Two Bunch
Palms Trail
Canndescent, MBC 9,600 18 1.88
65441 Two Bunch
Palms Trail
Med for America,
Inc.
5,038 25 4.96
65242 San Jacinto
Lane and 65282
San Jacinto Lane
San Jac Facilities
LLC and A CUT

ABOVE, LLC
40,000 34 0.85
Total: 1,001,566 591 .59
Source: Walker Consultants, 2023.

Development Potential
Zoning in the industrial cannabis study area is primarily Light-Industrial, with an Industrial Cannabis Overlay (see Figure 2). A large portion of the land zoned as Light-Industrial falls within the study area boundaries. According to the City’s municipal code subsection 17.16.030, Light-Industrial zoning allows a maximum of 75 percent lot coverage, and a maximum structure height of five stories. In section 17.180, the municipal code specifically allows for marijuana cultivation, manufacturing, testing, distribution, and non-storefront retail facilities within the Industrial Cannabis Overlay.

The study area includes a large amount of undeveloped land and offers significant potential for cannabis-related growth and development. There are currently approximately 575,000 square feet of industrial cannabis developments throughout the Industrial Cannabis Overlay area, and the City anticipates this will grow by approximately 1,425,000 square feet, to a total of approximately 2,000,000 square feet, as the area is built out over the next 10 years. There is enough land within the study area boundaries to accommodate this amount of new development, but it is more likely new industrial cannabis developments will be more evenly spread out throughout the overlay area. This analysis explores base and aggressive scenarios with the following assumptions:
• Base growth scenario: 500,000 square feet of new development within the study area boundaries • Aggressive growth scenario: 750,000 square feet of new development within the study area boundaries

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Figure 2: Industrial Cannabis Study Area Zoning Map
Source: Walker Consultants, 2023.

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If the cannabis-related activities of new developments parallel those at existing developments, it could be assumed that the average parking demand ratio calculated in Table 7 would also be a relevant baseline for the new developments. Applying this ratio to the projected development assumptions and adding existing demand observed results in the following peak parking demand projections:
• Base growth scenario: 886 vehicles (295 new demand + 591 existing demand) • Aggressive growth scenario: 1,034 vehicles (443 new demand + 591 existing demand) Considerations and Interpretation
The base and aggressive growth scenario parking demands projected for the industrial cannabis area are only exploratory calculations—a glimpse at what could happen if growth patterns continue according to the status quo and the City takes no action to improve parking efficiency and reduce the footprint of surface parking lots. However, status quo development patterns with large areas devoted to private parking facilities may be inconsistent with many of the City’s goals for the future, including:
• To encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl.
• To promote economic development through focused land use planning, flexible development standards, and targeted circulation and infrastructure improvements. • To implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled.

The vacant land in the Industrial Cannabis Overlay is highly important for the City’s economic development strategy.

As a still-developing City, Desert Hot Springs has the unique opportunity to avoid some of the misguided policies which have led other cities to economically inefficient and sprawling land use. The next chapter will present an analysis of strategies that could help shape parking demand and travel behavior to better align with the City’s numerous goals for economic vitality, environmental sustainability, and community health and wellness.

Conclusion
This analysis has shown the potential increase in parking demand—both in the downtown and in the industrial cannabis study area—that may occur as Desert Hot Springs grows and develops. Growth will result in more trips and economic activity for the City, as residents and visitors travel to and from home and work, shopping, and dining opportunities throughout the City. The assumptions used in this analysis show that peak parking demand could potentially increase to between 2,308 and 2,766 vehicles in the downtown, and between 886 and 1,034 vehicles in the Industrial Cannabis study area.

Achieving or even exceeding growth projections will involve ensuring that these places are attractive to visitors, business owners, and developers. If new development proceeds without proactive parking strategies in place, the City risks losing an unnecessary portion of its most valuable real estate to surface parking spaces that sit empty much of the time. With thoughtful planning, however, Desert Hot Springs will be able to accommodate vehicle travel while also advancing toward a future that supports walkability, promotes economic vitality, and where active transportation and shared mobility are widely seen as attractive and viable travel options.

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Appendix B: Complete Business Licensee
Survey Results
Question 1: Please describe your role in Desert Hot Springs (check all that apply) The respondent who selected “Other” noted that they own a consulting business that operates out of their home. 0 1
1 3
3 9
0 1 2 3 4 5 6 7 8 9 10
I own property in the Cannabis
Corridor
I own or manage a business in the
Cannabis Corridor
Other
I own property in the Downtown
District
I own/manage a business elsewhere
in Desert Hot Springs
I own or manage a business in the
Downtown District
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Question 2: What type of business do you work for/own?
Question 3: Approximately how many employees do you have?

1 1
3 5
5 0 1 2 3 4 5 6
Hospitality (hotel, spa, tourism)
Medical
Cannabis retail
Construction/contracting
Public agency
Cannabis cultivation/manufacturing
Logistics/shipping
Commercial retail
Services (salon/barber, fitness, day
care, other professional service
Food/beverage
7 2
1 0 1 2 3 4 5 6 7 8
0-50
50-100
100-150
150-200
200-250
250-300
300-350
350-400
400-450
450-500
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Question 4: Where do most of your employees live?
Question 5: How would you describe the parking demand at your business or property? 2 2
9 0 1 2 3 4 5 6 7 8 9 10
Most commute from outside the city.

It's about a 50/50 split.

Most live in Desert Hot Springs
1 5
6 0 1 2 3 4 5 6 7
We do not have enough parking to
accommodate our growth plans.

There is enough parking nearby, but
employees/staff may have issues
accessing it.

We have more than enough; at least
some parking is empty much of the time.

We do not currently have enough
parking on site.

It is adequate for our current and future
needs.

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Question 6: Do you have any of the following situations that impact parking demand at your business? Policy Adjustments
In addition to the general questions about existing conditions at businesses, the survey also contained several questions about potential policy or infrastructure changes that could help address parking and transportation needs for employees. Business-owning respondents were asked to rank each initiative from “not helpful” to “very helpful.” The options and the responses to them are illustrated in the charts that follow.

Option 1
1 1
2 4
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
High numbers of employees coming and
going throughout the day
Other cannabis-related activity
Food pickup/delivery
Employees operating on shift schedules
5 4
2 0 1 2 3 4 5 6
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
More flexible parking standards that allow
businesses to share parking or provide less
parking.

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Option 2
Option 3
Option 4
3 1
6 1
0 1 2 3 4 5 6 7
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Rideshare matching initiatives or incentives
that encourage employee carpooling or
vanpooling
1 1
6 3
0 1 2 3 4 5 6 7
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Upgraded transit service (more frequent
service, expanded service hours or days)
1 2
4 3
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Adjustments to SunRide, SunTransit’s ondemand microtransit service such as expanding its service area
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Option 5
Option 6
Option 7
3 4
3 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Shuttles between my business and other areas
of the city
3 3
4 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Improved bike lanes that help local residents
commute to work on bicycles/scooters
1 2
2 5
0 1 2 3 4 5 6
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Incentives to promote sustainable
transportation choices (such as rebates for ebike purchases) Item Number: 8.

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The survey also included an open-ended question to invite additional input. The responses are listed in the bullet points below.
“Do you have any ideas for parking or transportation policies or programs that would help your business or attract new businesses to the area?”
• “The problem I see with this concept is. You are relying on groups of entry level cannabis employees to feed your downtown business and shops. Being a business owner I have seen these groups of people smoking weed, causing trouble in groups and questioning having them around. Please take in to consideration I don’t see how entry level cannabis employees would be the main focus to helping the downtown business. In the past I have personally seen groups of entry level cannabis employees come together and create more harm than good. The entry level employee is a male under 30, that doesn’t have a lot of money and smokes a lot of weed. Not sure that is clientele businesses downtown are wanting to be as the main focus.”
• “Center median parking”
• “Sidewalks and adequate street lighting. Slow down the traffic through the Palm/Pierson corridor to accommodate street parking. Customers don’t feel safe parking their cars on Palm due to high rates of speed and narrow street. There are no visible No Left/u-turn signs on Palm at Acoma going south and First going North causing traffic accidents and congestion.” Item Number: 8.

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Appendix C: Complete Community Survey
Results
Multiple Choice Questions
Question 1: Please describe your relationship to Desert Hot Springs. (Check all that apply)

Respondents who selected “other” provided the following details:
• “I play in Desert Hot Springs”
• “I own a business in the corner of Palm Dr and Acoma Ave” • “I am a bookkeeper for a business in Desert Hot Springs.” • “I work, live and own property in desert hot springs”

Question 2: What form of transportation do you use for most trips?

3 3
20 38
0 5 10 15 20 25 30 35 40
Other (please specify)
I attend school in Desert Hot Springs
I work in Desert Hot Springs
I live in Desert Hot Springs
1 4
38 0 5 10 15 20 25 30 35 40
Ride share (Lyft/Uber)
Bicycle / scooter
Walking
Public transit
Someone else drives me
Drive myself
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Question 3: When you are not using your primary form of transportation, how do you travel? (Check all that apply)

Question 4: E-bikes and e-scooters (bicycles/scooters that are partially powered by a battery) are a popular new option to get around. How would you rate your familiarity with e-bikes? (Check all that apply)

1 4
5 10
21 24
0 5 10 15 20 25 30
Bicycle / scooter
Ride share (Lyft/Uber)
Public transit
Walking
Drive myself
Someone else drives me
2 5
7 10
19 0 2 4 6 8 10 12 14 16 18 20
I own an e-bike/scooter and have used it to
replace care trips
I own an e-bike/scooter and ride it for fun
I am unfamiliar with e-bikes/scooters
I am interested in learning more about ebikes/scooters, potentially through a test ride I have ridden a friend/family members' ebike/scooter
I have heard of e-bike/scooters but don't know
much about them
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Question 5: E-bikes/scooters have potential to help people replace car trips with a more sustainable option. If Desert Hot Springs had safer bike infrastructure and secure parking, how likely would you be to switch to an ebike/scooter for some of your trips?

Question 6: Finding parking in Desert Hot Springs is generally easy.

3 5
1 8
15 Highly likely
Somewhat likely
Neutral
Somewhat unlikely
Highly unlikely
Number of Responses
Rating
4 5
8 8
7 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
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Question 7: I generally feel safe walking to/from my parked car.

Question 8: I would be willing to park in a central location (such as a shared parking lot) if it meant I could walk to/from multiple destinations.

10 7
5 5
3 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
7 4
6 6
8 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
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Question 9: Where there is excess parking, I would support re-purposing it for some other use such as parks, event spaces, outdoor dining, or bike and pedestrian infrastructure.

Question 10: It makes sense for parking facilities to shared among multiple uses if they can be.

0 1
4 4
23 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
0 1
10 10
17 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
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Question 11: The City's parking management plan should support environmental goals (such as habitat protection and reducing pollution).

Geospatial Questions
The survey contained several questions designed to gather feedback that has a geospatial element. Respondents were asked to “pin” locations on the map where they identified issues and where they would like to see specific improvements to address those issues. Screenshots of each layer of feedback are provided below.

The blue and green shaded areas in each screenshot illustrate the study areas of the downtown study area and industrial cannabis study area, respectively, but respondents could provide input throughout the City. The extent of each map shown was selected to enhance visibility of the data; areas of the city that did not receive input in a selected category are not shown. The underlying data gathered was also captured in a format that can be used by future planning efforts to map and evaluate the information received. 1 0
5 5
15 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
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Respondent Approximate Home Locations Item Number: 8.

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Respondent Home Locations (Wide View)
Three respondents also live outside of Desert Hot Springs in Morongo Valley, Palm Desert, and Redlands.

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Respondent Work Locations Item Number: 8.

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Respondent “Other Important Locations”
Other locations that were important to survey respondents included the commercial districts of Palm Springs and locations along State Route 62 west of Desert Hot Springs.

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Issues Identified
Issue Identified: Lack of Parking – Downtown
Respondents found that there was a lack of parking in the downtown area primarily near some commercial businesses, with several pins placed near the intersection of Palm Drive and Pierson Boulevard.

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Issue Identified: Lack of Parking – Industrial Cannabis Study Area Respondents identified three locations in the Industrial Cannabis Study Area where there is a lack of parking, located at the DreamFields and Canndescent facilities.

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Issue Identified: Unclear Where to Park
Respondents found that it was unclear where to park at business located near Palm Drive and Pierson Boulevard (where businesses have small parking lots that may be accessible from behind the business) and on the western end of the study area.

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Issue Identified: Unsafe Driving (Speeding/Swerving) – Downtown The majority of responses about unsafe driving were clustered north-south along Palm Drive. Some instances of unsafe driving were also observed in neighborhood streets along 5th Street and Hacienda Avenue.

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Issue Identified: Unsafe Driving (Speeding/Swerving) – Industrial Cannabis Study Area Survey respondents noted unsafe driving consistently along Two Bunch Palms Trail in the Industrial Cannabis Study Area.

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Issue Identified: Vacant/Underused Property – Downtown
Survey respondents noted vacant or underused properties throughout the Downtown study area and areas farther north.

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Issue Identified: Vacant/Underused Property – Industrial Cannabis Study Area Survey respondents noted several vacant or underused properties along Two Bunch Palms Trail.

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Issue Identified: Unsafe Crossings – All Areas
Survey respondents noted many areas that felt unsafe to cross the street, clustered north-south along Palm Drive, east-west along Two Bunch Palms Trail, and at some other intersections (Indian Canyon Drive and Mission Lakes Boulevard, Indian Canyon Drive and Pierson Boulevard, Little Morongo Road and Pierson Boulevard, and Hacienda Avenue and Mesquite Avenue).

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Issue Identified: Lack of Sidewalks – Downtown
Survey respondents noted a lack of sidewalks in residential neighborhoods along Acoma Avenue in the Downtown Business District, as well as in some residential neighborhoods elsewhere in the city.

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Issue Identified: Lack of Sidewalks – Industrial Cannabis Study Area Survey respondents noted a lack of sidewalks throughout the Industrial Cannabis Study Area, primarily in front of undeveloped properties.

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Issues Identified: Other Needs
Survey respondents were able to place a pin on other points throughout the city and add a note if they would like to identify a specific issue. The responses to these points included:
• “Homeless encampment”
• “razed property”
• “fenced up hotel”
• “This company creates traffic on the street. Lines of cars East and west waiting to enter the facility.” • “Owner locks parking lot without notice and impedes traffic from Pierson with a constant locked gate.” • “Stop lights must be "smarter": During peak hours, there is A LOT OF TRAFFIC, since the stop lights only favor the drivers from the main streets (Palm Drive). If you drive from Ironwood Dr or Two Bunch Palms, for instance; you have to get up up to 30 minutes earlier to make it to work....” [This comment was added to four locations in the city.] • “In here, DHS Gov. should open the yellow isle in the morning (6am to 9am at least) to the drivers who go to work/school and also in the afternoon/evening (5pm to 7pm, at least) to the ones who return from work. I have lived in big cities/suburban areas, and that is what they do to effectively address the traffic in peak hours.”
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Improvements Suggested
Improvement Suggested: Reduce Traffic Speed – Downtown
Survey respondents suggested reducing traffic speeds through the Downtown area, in particular north-south along Palm Drive.

Item Number: 8.

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Improvement Suggested: Reduce Traffic Speed – Industrial Cannabis Study Area One survey respondent suggested reducing traffic speeds in the Industrial Cannabis Study area around the intersection of Little Morongo Road and Two Bunch Palms Trail.

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Improvement Suggested: Add Crosswalk – Downtown
Survey respondents suggested adding a crosswalk where 1st Street and Acoma Avenue intersect Palm Drive.

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Improvement Suggested: Add Crosswalk – Industrial Cannabis Study Area Survey respondents suggested adding crosswalks adjacent to the major employers in the Cannabis Industrial Study Area.

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Improvement Suggested: Add Protected Bike Lanes – Downtown Survey respondents suggested adding protected bike lanes in proximity to the major downtown intersection at Palm Drive and Pierson Boulevard.

Item Number: 8.

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Improvement Suggested: Add Protected Bike Lanes – Industrial Cannabis Study Area Survey respondents suggested adding protected bike lanes throughout the Industrial Cannabis Study area along Two Bunch Palms Drive and on Little Morongo Road.

Item Number: 8.

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Improvement Suggested: Add Bike Parking – Downtown
Survey respondents suggested adding bicycle parking locations adjacent to the major downtown intersection at Palm Drive and Pierson Boulevard.

Item Number: 8.

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Improvement Suggested: Add Lighting – All Areas
Survey respondents suggested adding lighting near major employers and intersections in the Industrial Cannabis Study Area, in the residential neighborhoods of the Downtown Business District, at Mission Springs Park, and in some residential areas in the southeastern portion of the city.

Item Number: 8.

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Improvement Suggested: Add Sidewalk – Downtown
Survey respondents suggested adding sidewalks in the residential area along Acoma Avenue downtown, as well as in a few other residential areas to the southeast.

Item Number: 8.

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Improvement Suggested: Add Sidewalk – Industrial Cannabis Study Area Survey respondents suggested adding sidewalks throughout the Industrial Cannabis Study area along Two Bunch Palms Drive and on Little Morongo Road.

Item Number: 8.

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Improvement Suggested: Add Signage/Wayfinding – All Areas Survey respondents suggested adding signage or wayfinding on either side of the main intersection downtown at Palm Drive and Pierson Boulevard.

Item Number: 8.

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Improvement Suggested: Other – All Areas
Survey respondents were able to place a pin on other points throughout the city and add a note if they would like to suggest a specific improvement.

The responses to these points included:
• “Parking lot?” [pin placed in Industrial Cannabis Study area] • “The park should be fully open, safe and available for the community to exercise from 4am to at least 9pm everyday.” [pin placed on Mission Springs Park]
Item Number: 8.

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Appendix D: Financial Considerations
Introduction
This appendix includes an inventory and evaluation of parking fee structures and revenues, cost considerations for the strategy recommendations included in this report, and a review of potential funding sources for consideration.

At its most basic parking funding consideration, the City currently has no parking fees or revenues. Based on our analysis of parking supply and demand, we do not see the implementation of paid parking as feasible, either as a revenue generator or policy strategy (parking management or transportation demand management), for the foreseeable future. A system of charging fees for parking would become applicable only if the demand for public parking were to increase significantly. This appendix briefly reviews various types of parking-related fees, and the circumstances under which they may or may not be appropriate for Desert Hot Springs. Although parking fees are not currently recommended and could not be expected to generate revenue, some of the parking and access strategies recommended—including acquiring an off-street lot for public parking, making street improvements, and improving access to alternatives to driving alone—would require funding sources for implementation. Potential funding sources for these strategies and financial considerations are also discussed.

We note that Walker is not a financial advisor and does not act in that capacity. To provide complete financial advice, an advisor in this role should have a complete picture of the City of Desert Hot Springs’ finances, which is beyond the scope of services for this engagement. The financial guidance provided here is policy driven and based on the findings of this study and the recommendations provided in the report.

Current Fee Structure and Revenues
As outlined in the existing conditions chapter, the City of Desert Hot Springs currently has approximately 800 public on-street parking spaces in the downtown study area and approximately 1,873 existing and potential on-street parking spaces in the industrial cannabis area. Some of the potential parking spaces in the industrial cannabis area are on roads that are still undeveloped and unpaved or are on unpaved curb areas of existing roads. The two streets in the industrial cannabis study area where on-street parking was observed—Two Bunch Palms Trail and San Jacinto Lane—we project could reasonably accommodate a combined total of approximately 414 spaces. All public parking is on-street; the City does not have any public parking lots, with the possible exception of the City Hall parking facility, although it is assumed that the parking spaces serving public facilities are dedicated only to that purpose.

To the extent the City shares these spaces, it effectively increases the public parking supply.

All public on-street parking in the City is currently free to motorists. There is no current parking fee structure or otherwise paid public parking, and no parking revenues. Current parking demand does not justify charging for parking. The cost to implement paid parking would likely exceed any revenues from paid parking that might be generated. Public spaces are a public asset. To the extent they are underutilized, and that charging for parking would tend to exacerbate that Item Number: 8.

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underutilization, we do not recommend charging for parking. Further, no current demand would not generate parking revenue.

It is appropriate for existing on-street parking to remain free to motorists as long as the demand for this free parking is lower than the supply, which may be the case for many years. Although free parking is effectively a subsidy for driving, and although the City’s General Plan prioritizes reducing vehicular trips and promoting multimodal transportation, the City may wish to continue providing free parking where public on-street parking has already been created, to promote access and activity in places where parking occupancy rates are not high enough to justify charging, either from a revenue generation or asset utilization perspective.

Given the low demand for parking observed in both downtown and the industrial cannabis study areas, there is not currently any material revenue potential in charging for on-street parking. 6 General Plan Policy LU-3.10 states that
the City should maximize revenue from the utilization of City-owned land and resources. Under the current circumstances, continuing to offer existing on-street parking free of charge to motorists may be the best use of this resource. When ample public parking is available, this reduces potential parking provision constraints on new development and can facilitate economic activity and property improvements, as property owners may choose to dedicate less of their land to private surface parking lots. Ultimately, a demand-based fee structure is recommended, which, based on current demand, means maintaining free on-street parking in both the downtown commercial district and industrial cannabis district.

Additionally, we note that even when paid parking is implemented, a paid parking program has associated costs, which may include paid parking and enforcement hardware, software, fees, administrative time, and operating costs of enforcement. Even in cases where parking revenue is generated, it may not generate revenue surplus.

Citation revenue from parking infractions may also generate revenue. However, we do not include these fees as a material source of revenue and do not recommend relying on them. The purpose of parking enforcement is to enhance the convenience, safety and quality of life of the community. A well-run parking enforcement operation is a system with full compliance and no citation revenue. It is not a best practice in parking management to rely on citation revenue for purposes other than to support the ongoing parking enforcement, to maintain compliance and thereby support the quality of life in the community.

Cost Considerations for Recommended Measures
Per the Scope of Services, in the following section, we provide a discussion of cost considerations associated with the recommendations contained in this report. These recommendations generally fall into three categories:

1. Recommendations that may require some city staff time to implement, but overall little additional cost to the city (no ongoing FTE costs); and

2. Recommendations that may require ongoing operational costs; and 6 If the city were to promote the use of on-street spaces by employees in the Industrial Cannabis District, in lieu of using onsite private parking spaces, it is possible that a small amount of revenue could be generated, although unlikely to exceed the cost of administering and enforcing an on-street parking program. It is unlikely that employees would be willing to pay for onstreet parking in lieu of free on-site parking. The City would likely prefer to generate revenue from the revenue from cannabis production using on-site square footage rather than revenue from on-street parking, which would most certainly be less.

Item Number: 8.

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3. Recommendations that may require capital costs.

Below we discuss examples of each of these costs:

Providing shared or public parking. In the recommendations chapter, we noted that there is an excess of parking in Downtown Desert Hot Springs, however there could be an opportunity to consolidate parking into shared parking lots, thereby allowing for the development of more parcels into businesses or civic spaces. As has been talked about in the city, this type of civic space could host food trucks or the recently established Container Park in the City’s downtown.

Construction and Acquisition of Surface Parking
Cities typically envision that providing public parking facilities will require the acquisition of land and construction of parking-related improvements. We noted that the construction costs to improve a parcel with surface parking is typically $7,500± per space. We noted that the price for improved parcels along Pierson Boulevard as of the date of this report (July 31, 2023) appeared to be approximately $500,000 for 0.15 acres.

Therefore, not including demolition of existing structures, the cost of providing thirty four spaces on 0.30 acres is projected at approximately one million in land costs plus $255,000 in construction. A system of pedestrian pathways to connect surface lots to destinations in the area, separate from the existing sidewalk network, would represent an additional cost. Based on the number and location of the specific surface lots recommended (five lots) we project the total costs for the district of acquiring land and constructing surface parking ranging from approximately $100,000 for lots of 0.15 acres and 13 spaces, to $255,000 for 0.30 acres and 34 spaces per lot. Costs may vary considerably based on the conditions encountered.

Leasing Existing Parking or Parcels
As discussed in the recommendations, leasing existing parking or parcels can provide a more cost effective and flexible alternative to purchasing land and constructing parking in an area with abundant, available parking spaces.

In the recommendations chapter, we suggest that the City lease existing parking spaces to make them available to the driving public or a subset of that population (for example, to employees) so as to make the most convenient parking spaces available for customers and other visitors. The terms of these agreements vary, but should likely include the following:
• A per-space monthly or annual fee to the property owner: In Desert Hot Springs, we would expect a monthly fee from $40 to $75 per month per space.
• Parking Enforcement: All public parking, both on- and off-street, needs proper enforcement to ensure the availability of parking and provide clean and safe parking to the public. While the provision of off-street public parking on a small scale could be enforced by the police department, the full-scale implementation of the five off-street surface lot locations suggested in the recommendations chapter, as well as increased parking restrictions at the curb, could justify the addition of a 0.5 FTE staff member. When possible, Walker typically recommends that enforcement be performed with a customer service, ambassadorial style approach, and not necessarily by a law enforcement officer, which can also reduce costs. • Parking Lot Lease Program/Lot Purchase:
o Cost to restore and maintain a surface lot: Many of the surface lots we observed in Downtown Desert Hot Springs were in need of restoration, which we assume would take place prior to making Item Number: 8.

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them available to the public. We project these costs to range from $1,000 to $2,000. While just a fraction of the cost of maintaining parking structures, maintenance and cleaning costs for parking lots should be taken into account. Maintenance costs will vary based on the size of the lot, with more efficiency for a fewer number of total lots, which are larger. Smaller lots will increase costs on a per stall basis. Per stall costs could range substantially as a result, from $15-65 per year. An annual janitorial service for a the 34-space lot that we assume could be accommodated on two downtown 0.15 acre parcels is likely around $2,000, if not higher with labor scarcity. Maintaining landscaping could nearly double this cost. We would expect the parking lots discussed for downtown Desert Hot Springs to incur maintenance costs on the higher end of this range, given their small size and exposure to extreme heat. Maintenance costs for the surface lots serving city hall should provide a representative cost comparison.
o Signage: Signage is needed to communicate that a parking lot is available for public parking as well as any restrictions or limitations on the parking. We assume two to four signs at a cost of $200 to $250 each.
o Insurance: Liability issues and insurance are often cited as an obstacle to private owners allowing public parking in their surface lots. While the issue can be overcome through a city assuming liability or covering the costs to insure a parking facility, we note that typically parking lots are insured for full usage in any case. We suggest that the city assume a cost of $10 to $14 per space per year to insure surface parking lots, either owned or leased. • Shade Structures: In the recommendations chapter, shade structures were recommended as a way to facilitate the productive use of some of the underutilized right way for long term parking, so that private property owners could maximize the developable, productive area of their land, particularly in the industrial cannabis district. Improved on-street parking was also seen as a way to provide parking for cars waiting to enter cannabis production facilities during shift changes, to avoid waiting in the right of way. The shade structures were seen as a way potentially to minimize the exposure of cars parked at the curb to sun exposure, and to cover sidewalks, to facilitate the use of on-street parking longer walks from the curb to businesses.

Based on our experience with shade structures, we estimate the cost at $200 per square foot to $300 per square foot. This cost includes the shade structure, fabric, and installation, and we note that based on the experts we talk to, the shade structures can be expected to hold up in Desert Hot Springs’ windy environment. Therefore, for approximately 800 linear feet along Two Bunch Palms, a distance that could encompass potentially 300 to 400 parking spaces, we project costs of approximately $1.3 million to 2.0 million dollars, assuming a shade width of 8.2 feet. A significantly narrower shade structure may be acceptable. The cost per improved curb space is several thousand dollars, less than our projected surface lot cost of $7,500 per space although still costly. However, the opportunity cost of the private land, and its ability to contribute to the city tax base, should be considered, as should the facilitation of cars that currently queue in the right of way during shift changes. Regarding the cost to build sidewalks, we note that some sidewalk infrastructure currently exists on Two Bunch Palms and additional infrastructure may be built out based on the city’s bicycle and pedestrian plan and as new development occurs in the industrial cannabis district.

Item Number: 8.

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Shared Mobility Solutions: While they can be viewed as costly on a per ride basis, when compared to the significant cost of auto infrastructure and the cost to the driver for the vehicle, taxes, insurance, and fueling, transportation demand management (TDM) in general and short distance shared mobility specifically, can be an effective way to fulfill short trips for some members of the public in a cost effective and environmentally friendly way. Some points to note regarding shared mobility for Desert Hot Springs include the following:
o Scooter and bike share stations need some form of density to work. People will not walk far to stations or to find dockless bikes. However, we believe that destinations such as the cannabis industrial district, the Spa Zone, and the downtown, particularly at Pierson Boulevard and Two Bunch Palms, could be reasonable places to locate shared scooters, bicycles, or e-bikes. o Most trips are short trips, and we find that the shared mobility companies are raising rates, so to ride for significant distances would become costly.
o In terms of costs, shared mobility companies may need a subsidy from the city. In addition to an RFP bid effort from $20,000 to $30,000, the city would need to expect on going costs and hold shared mobility providers to a contract to ensure significant service. o Shared mobility is possible, even in suburban locations. We highlight a recent program in the San Gabriel Valley: https://betterbikeshare.org/2022/11/04/reimagining-bike-share-for-the-suburbs/ Review of Fees and Other Funding Sources
This section reviews various types of parking and transportation fees and funding sources and evaluates their appropriateness for Desert Hot Springs.
• Paid Parking: Paid parking involves charging an hourly or flat fee, from daily to monthly to annual rate for parking. Paid parking is most appropriate on streets with parking utilization above 85 percent, to allocate parking demand. Implementing paid parking in prime locations can ensure the most efficient use of a finite parking resource; discretionary or longer-term parkers park farther away, on streets or in off-street lots where there is no charge for parking, and walk to their destinations—ensuring convenient parking is available for customers and short-term visitors. Some may choose not to store their vehicles in the high demand areas or use an alternative to driving and parking. Free parking is a powerful incentive for driving, but the destination is the draw. With paid parking, some people will still travel to the destination but use other modes of transportation. To the extent paid parking deters someone from visiting a destination, the greater assurance of finding a space attracts others who otherwise would avoid coming to a district altogether.

When demand is sufficiently high, although revenue generation is not the primary goal, paid parking can be a valuable source of revenue for cities; maximizing the value of public assets, as previously noted, is called for in the City’s General Plan. Revenue can be allocated to help local business and property owners by funding improvements in the areas where the parking revenue was generated (such as cleaning, security, free public wi-fi, active transportation infrastructure, street trees, landscaping, and the management or added capacity of the parking supply). Over the course of our study, no streets in Desert Hot Springs were observed to experience parking utilization near or above 85 percent, but if parking demand increases in Item Number: 8.

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the future, paid parking, which can take various forms—including pay-by-phone (pay by text, app, or browser), parking meter multispacer meter kiosks (limiting the cost and aesthetic impact of parking hardware) or single space meters—can be considered for implementation. An online pay by plate system could allow residents to either pay in advance through a billing or declinating system or offer residents discounts or free parking while non-city residents are charged. A paid parking system can take the form of a combination of all these systems of charging for parking. We note that any kind of preferential parking tends to encourage driving and the associated traffic and lack of parking availability and constrains the revenue generation capability of a paid parking system.

Paid parking is not currently recommended for Desert Hot Springs, due to low parking utilization, representing underutilization of public assets and a lack of revenue generation opportunities. • Parking Assessment Districts: A parking assessment district allows property owners within designated boundaries the ability to assess themselves through increased property taxes to collectively fund desired parking improvements. For example, if local business owners believe they would benefit from the construction of paid parking infrastructure or a parking facility, forming an assessment district could ensure every owner contributed, preventing “free riders” from benefiting from the improvements without contributing their fair share. In some cases assessments vary based on distance (and therefore opportunity to benefit from) from the funded parking infrastructure. In California, establishing a parking assessment district typically requires an approval vote from two-thirds of all property owners within the proposed district. Parking assessment districts can be appropriate for locations in which property owners can reach consensus on the need – and willingness to pay - for certain parking improvements to support their businesses.

Establishing a parking assessment district is not recommended for Desert Hot Springs. First, the benefits of building a shared parking facility typically accrue where parking can be shared, providing efficiencies to a variety of land uses in the district. In the Cannabis District, land uses were observed to generally experience the same peaks in parking demand, limiting the ability to share spaces. In the downtown, nearly every parcel currently was observed to have excess, onsite parking. Likely because of this, neither the downtown nor the industrial cannabis study area property owners have expressed any interest in parking infrastructure improvements. A parking assessment is an additional cost to doing business. Given the nascency of the downtown commercial district, a parking assessment on properties or businesses is likely premature and counterproductive to developing the area.
• Parking In-lieu Fees: Parking in-lieu fees rely on the existence of minimum parking requirements for new development projects and use changes; they allow a developer or business owner to opt out of providing any required parking on-site and instead contribute a set fee per stall not provided to a citywide fund.

Parking in-lieu fees can help prevent scattered and unattractive private parking lots from being created and instead help downtowns become “park once and walk” areas. Some cities have used in-lieu fees to create public parking garages in central locations, facilitating the redevelopment of scattered surface parking lots and creating a more pedestrian-friendly environment. Cities have also used parking in-lieu fees to support access to transportation alternatives, including bike and pedestrian infrastructure. Collecting in-lieu fees to fund additional parking infrastructure could be appropriate if the lack of available and affordable parking was found to be preventing people from visiting an area. Allowing parking in-lieu fees and using the funds Item Number: 8.

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to increase access to transportation alternatives may be more appropriate than having inflexible parking requirements, but cities interested in increasing access to sustainable transportation can also do so more directly through impact fees.

The paradox of parking in lieu fees is that fees set high enough to contribute meaningfully to funding transportation infrastructure or programs are likely too high for businesses’ willingness to pay (after all, in lieu fees are optional, by definition). In lieu fees set sufficiently low to inspire businesses to pay the fees in lieu of providing their own private parking provide little meaningful funding. In lieu fees can, however, incentivize shared public parking in lieu of parcel after parcel of private parking, making parking more efficient, less impactful, and sustainable. However, as a revenue source, their impact tends to be minimal.

Parking in-lieu fees are not recommended for Desert Hot Springs because they rely on minimum parking requirements, which the City is advised to remove citywide, in order to facilitate economic growth and development and progress toward numerous other policy goals established in the General Plan. Further, their benefit as a funding source tends to be minimal. Only if the City were not to eliminate minimum parking requirements should parking in lieu fees be considered.

• Impact Fees: Developer impact fees generally involve establishing a per-unit fee for new residential developments and a square footage-based fee for retail, office, and industrial developments. Funds can be used for transportation facilities, including already-planned pedestrian and bicycle infrastructure projects throughout the City and transit service improvements. Establishing these fees requires a nexus study demonstrating the relationship between the expected transportation impacts of new developments and the cost of addressing those impacts through transportation improvements. As a result, typically a reasonable projection of the amount of new development that will be constructed within the defined district is needed to allocate the cost of new transportation infrastructure equitably, based on the amount of development impact.

As a member of the Coachella Valley of Association of Governments (CVAG), the City of Desert Hot Springs is currently a potential recipient of transportation impacts fees through Transportation Uniform Mitigations Fees (TUMF). However, a cursory review of the TUMF demonstrated a relatively small portion of the fee is dedicated to active transportation projects in Desert Hot Springs, and likely one that does not align with aspirational goals for a multimodal transportation system that offers robust alternatives to driving alone.

The TUMF appears focused on adding new arterial capacity for automobile traffic.

The City of Santa Monica has a transportation impact fee of the type we envision would be beneficial for Desert Hot Springs. Santa Monica’s Transportation Impact Fee program requires developers to pay a fee based on the number of residential units planned or on the amount of square footage for non-residential developments. The transportation impact fee revenues may fund sidewalk improvements, bike parking, transit improvements, and new striping (e.g., for bicycle and transit lanes). Programmatic measures may include partnerships with sustainable mobility service providers. While other cities may have transportation improvement fees that fund vehicle infrastructure, Santa Monica directs these funds toward projects that reduce vehicle traffic, which also helps manage parking demand.

Item Number: 8.

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Santa Monica requires Transportation Demand Management (TDM) plans for new developments with 16 or more residential units or at least 7500 commercial square feet. Strategies to reduce vehicle travel may include both programmatic measures, such as providing employees or residents with transportation allowances for transit passes, and site improvements, such as providing secure bicycle parking with electric charging for e-bikes.

To the extent that CVAG’s TUMF is not sufficient to fund the driving alternatives necessary to achieve the City’s goals, a transportation impact fee is recommended for Desert Hot Springs for the purpose of funding adequate infrastructure to support sustainable or active modes of travel, and new development increases the need for transportation improvements. The fees should be established at relatively low levels to avoid creating an excessive constraint on development. Transportation impact fees can be seen as an alternative to or replacement for minimum parking requirements, as the fees are less restrictive in their use and more aligned with the General Plan goals.

Creating and maintaining parking is both more costly and less necessary in Desert Hot Springs than increasing access and safety for people walking, biking, or using shared mobility. • Parking Revenue Bonds: Parking revenue bonds allow cities to go into debt to fund new parking infrastructure and use only parking revenues to pay the debt service. Cities cannot be required to use general funds or levy taxes to pay revenue bond interest and principal. Typically, the debt incurred by funding parking using these revenue bonds does not impact a city’s credit. Because they are not paid off with taxpayer funds, these revenue bonds may not require voter approval to be issued. However, because they are not backed by the general fund, they are also seen as riskier for investors and in nearly all cases will have higher interest rates than general obligation bonds. Further, a city planning to follow the best practice of returning at least half of any parking revenue generated to the community would result in a smaller revenue stream and increase the difficulty of securing bond financing.

Parking revenue bonds are not currently recommended for Desert Hot Springs because parking infrastructure could not be expected to pay for itself through parking revenues. As noted, we do not see a viable source of public parking revenue in the city.
• General Obligation Bonds: General obligation bonds allow cities to go into debt to fund public-serving capital projects. This could include parking infrastructure, but also infrastructure that supports active transportation and shared mobility. Clean Transportation projects are one of the project categories eligible for the issuance of a Green Bond according to the Green Bond Principles, created by an international group of finance institutions. The Green Bond label that may be seen as a bonus feature, especially for investors who prescribe to environmental, social and governance (ESG) goals for investing. Unlike revenue bonds, under general obligation bonds, including green general obligation bonds, cities can be required to use general funds or levy taxes to pay revenue bond interest and principal, typically relying on taxpayer funds, and therefore requiring two-thirds voter approval.

General obligation bonds are not currently recommended for Desert Hot Springs for the purpose of funding parking infrastructure because the benefits of additional parking infrastructure, would not outweigh the costs, which tend to be substantial. Structured parking results in costs of hundreds of dollars per space per month. Meanwhile, the City currently has ample parking availability.

Item Number: 8.

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Green general obligation bonds may be worth further exploring for the purpose of funding sustainable transportation infrastructure. The community has expressed a desire for improvements that would increase the ease and safety of walking, biking, and shared mobility, but it is unknown whether community members would support the City taking on additional public debt for sustainable transportation projects.

• Grants: In our experience, grant funding specifically to support parking infrastructure is extremely rare.

Federal, state, and regionally administered grants are unlikely to fund parking infrastructure. However, many grants support active transportation and shared mobility project implementation and new planning efforts, which reduce parking demand by making sustainable transportation more accessible and attractive.

City staff should periodically monitor grant opportunities for which the City may be eligible to apply. Grant programs worth exploring include, but are not limited to:
o Climate Pollution Reduction Grants, administered by the EPA o Safe Roads and Streets for All Grants, administered by the U.S. DOT o Congestion Mitigation and Air Quality Improvement Program, administered by the FHWA o Sustainable Communities Grants, administered by CalTrans o Affordable Housing and Sustainable Communities Program Grants, administered by California’s Strategic Growth Council and Department of Housing and Community Development o Urban Greening, administered by the California Natural Resources Agency o Transformative Climate Communities Grants, administered by the Strategic Growth Council and Department of Conservation
o Office of Traffic Safety Grant Programs, administered by the California Office of Traffic Safety o Clean Mobility Options Program, administered by the California Air Resources Board o Sustainable Transportation Equity Project, administered by the California Air Resources Board o Local Partnership Program, administered by the California Transportation Commission o Local Streets and Roads Program, administered by the California Transportation Commission o Highway Safety Improvement Program, administered by Caltrans Local Assistance/FHWA Seeking grant funding to implement sustainable transportation projects and fund future planning efforts is recommended. Many competitive grant programs prioritize disadvantaged communities and consider factors such as the average share of household income spent on transportation when allocating awards.

The average share of household income spent on transportation within the three Census Tracts covered by the study areas ranges from approximately 27 to 29 percent. Obtaining grant funding can help the City more quickly support the implementation of already-planned bicycle and pedestrian infrastructure capital improvement projects that may help community members reduce their transportation spending. Grant funding may also be available for planning efforts, including conducting a study to implement a Sustainable Mobility Impact Fee, to create a TDM plan and ordinance with updated development standards, and to create a plan for secure bicycle and scooter parking and charging. All of these planning efforts complement parking management by reducing demand for vehicle parking. • Enhanced Industrial Finance Districts (EIFDs) and Community Revitalization and Investment Authorities (CRIAs): The EIFD financing mechanism was established in 2014 to provide a funding mechanism for potential infrastructure financing in light of the 2011 dissolution of California redevelopment agencies.

CRIAs were established a year later as another type of tax increment financing district that increases Item Number: 8.

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funding for and production of affordable housing in disadvantaged communities. It may fund other types of infrastructure projects as well.

The City of West Sacramento was the first in California to establish an EIFD and has since used this mechanism to plan the funding of several public parking facilities in districts throughout the city.

EIFDs and CRIAs tend to be feasible only for a small number of cities that have a larger share of property tax revenues and significant new development in the proposed districts, such as West Sacramento.

Unfortunately, many cities have lost their internal capacity to pursue an EIFD or CRIA due to limited personnel and budget constraints. The process to form an EIFD or CRIA may be challenging if a full CEQA review or if voter approval to form the district or issue bonds is required. EIFDs can finance public infrastructure projects, as well as private childcare centers, affordable housing, and parking facilities.

Specific Funding Sources for Consideration
Due to current policy priorities in California and the nation, funding availability for the policies recommended in the report is tied most closely to two strategic goals, (1) housing production and (2) incentivization of multimodal transportation, particularly active transportation. The following funding sources—the Affordable Housing and Sustainable Communities Program and the Infill Infrastructure Grant Program—appear to be potentially relevant and promising.

California’s Affordable Housing and Sustainable Communities (AHSC) Program is funded by the Greenhouse Gas Reduction Fund, which receives cap-and-trade auction proceeds. The AHSC Program is intended to help lower GHG emissions by funding projects that reduce automobile trips or vehicle miles traveled. When a City applies for an AHSC grant, an affordable housing development corporation should generally be a co-applicant. Depending on the request, there may be other co-applicants as well, such as SunLine Transit, the Riverside County Transportation Commission, the local school district, or a program operator. At least 50 percent of the requested funds should be dedicated to affordable housing development or housing related infrastructure, and the remaining award amount may be used for sustainable transportation infrastructure, transportation related amenities, or program costs.

Three project area types are eligible:

1. Transit Oriented Development (TOD) Project Areas. This project area type requires proximity to “High Quality Transit” with service frequency of 15 minutes or less, so it is not applicable to DHS projects.

2. Integrated Connectivity Project (ICP) Project Areas. This project area type requires an affordable housing development near qualifying transit. This includes flexible transit service, so DHS projects within the SunRide service area may be eligible.

3. Rural Innovation Project Areas (RIPA). This project area type applies to Census tracts designated as being within a Rural Area (generally meaning a tract with population below 5,000, in a city with a population below 40,000). Two study area tracts in Desert Hot Springs may be eligible: Tract 445.09 in the downtown study area (north of Pierson Boulevard and west of Palm Drive) and Tract 445.07 in the industrial cannabis study area (south of Two Bunch Palms Trail and east of Little Morongo).

Item Number: 8.

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Examples of Sustainable Transportation Infrastructure, Transportation Related Amenities, or Program Costs funding uses include:
o Infrastructure:
▪ Walkways, protected bikeways, pedestrian crossings, streetscape lighting/signage, traffic calming, parklets
▪ Bike parking or bike repair kiosks
o Bike and car share:
▪ Bike share infrastructure and fleet, program operations ▪ ZEV car share vehicles with reduced costs for low-income participants, program operations o Transit:
▪ Transit vehicles, charging infrastructure, equipment, passenger amenities, real-time information displays, bus shelters
▪ Vanpool vans and electric shuttles in rural areas
o Programs:
▪ Education, transit subsidy programs and marketing, TDM programs, workforce development partnerships
All these examples could be applied to varying degrees to facilitate connections from parking to destinations in the downtown and cannabis districts. They could also be used to facilitate travel to and from the districts.

The Infill Infrastructure Grant (IIG) Program is administered by the California Department of Housing and Community Development. The IIG Program is meant to promote infill housing development by providing gap funding for infrastructure improvements that facilitate affordable or mixed-use housing development projects.

Funding may be used for ancillary development costs associated with a housing development, including:
• The creation, development, or rehabilitation of Parks or Open Space • Streets, roads, or transit linkages or facilities
• Facilities that support pedestrian or bicycle transit • Traffic mitigation
• Sidewalk or streetscape improvements
A city or other entity with jurisdiction over a “Catalytic Qualifying Infill Area” is eligible to apply. Applicants must have affordable housing development experience and demonstrate the capacity to acquire, develop, own, and maintain affordable housing. In the most recent round of funding, all small jurisdiction applicants were housing development corporations. To be eligible, projects must:
• Be located on previously developed or vacant site where at least 50 percent of the perimeter adjoins developed parcels
• Contain sites included in the housing element
• Be located in a mixed-use or residential area
• Be located within an Urbanized Area
• Show at least 100 housing units will be developed
• Include at least 15 percent Affordable units
Item Number: 8.

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Draft Parking Management Plan
8/21/2023

204
The total grant amount is influenced by the number of proposed housing units, the depth of affordability, housing densities, access to transit, access to amenities, the presence of an adaptive reuse ordinance, and other scoring factors.

A grant application for the Desert Hot Springs Active Transportation Safety and Connectivity Plan was submitted by the City in March 2023 to the California Department of Transportation’s Sustainable Transportation Planning Grant Program. The Plan focuses on the City’s Focused Active Transportation Study Corridors, including three corridors within our study areas, (1) Two Bunch Trail through the industrial cannabis district, (2) Pierson Boulevard, and (3) Palm Drive in the City’s downtown. If awarded, the grant therefore offers an opportunity to improve access and mitigate parking demand in a way that is consistent with SCAG’s Smart Cities and Mobility Innovations projects and this report’s recommendations.

Item Number: 8.

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SR-23-254
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: November 7, 2023
Department: Public Works
Prepared by: Nicholas Haecker, Public Works Director
Subject: First Amendment to Engineering Plan Check Professional Services Agreement with NV5, Incorporated
RECOMMENDATION:

Authorize the City Manager to execute, and make any substantive changes, to the First Amendment to the Professional Services Agreement between the City and NV5, Incorporated for Engineering Plan Check Services in the amount not to exceed $120,000, and allow for any substantive changes to be made by the City Manager, if needed.

BACKGROUND:

The City of Desert Hot Springs currently uses NV5, Incorporated for surveying plan check services, engineering checks for large projects, and engineering plan checks for CIP projects. As large projects apply for engineering permits, the need for additional plan check services support is necessary. The current contract with NV5 is for an amount not to exceed $20,000.

DISCUSSION:

The City recently has received engineering plan check submittals for large projects such as project Viento, and is requesting that NV5 Incorporated continue to provide plan check services support.

Therefore, an amendment to their contract is needed in an amount not to exceed $100,000. This amendment will cover plan check services for project Viento and other as-needed plan check services. The City collects plan check fees from developers for all engineering plan checks, and utilizes those funds to offset the costs of NV5 plan check services. NV5 Incorporated completes plan checks within a 2 week period (10 business days), and the fees for the services are collected from the applicant. The term of this amendment is through the current fiscal year (June 30, 2024).

The plan checks that will be included in this contract include:

1.Parcel Mergers

2.Lot Line Adjustments

3.Final Maps

4.Urban Lot Splits

5.Engineering Applications, which include:
a.Street Improvement Plans
Item Number: 9.

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SR-23-254
b.Grading Plans
c.Hydrology Reports
d.Water Quality Management Plans
e.Traffic Control Plans
f.Erosion Control Plans.

FISCAL IMPACT:

Plan check services are funded by plan check fees paid at the time of submitting plans for permits.

Any increase in the cost of plan check services will be covered by an increase in plan check fees.

Any increase in plan check service costs over budget appropriations will be offset by an increase in revenues and will included in the Mid-Year Budget Adjustments being brought to Council by the end of March 2024.

ATTACHMENTS:
1) Professional Services Agreement - NV5
Item Number: 9.

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PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND
NV5, INC.

This Professional Services Agreement (“Agreement”) is made and entered into this 2nd day of November, 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 NV5, Inc, a corporation, 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 plan check 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 Item Number: 9.

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Services. In the event a conflict exists between this Agreement and the Scope of Services, the former shall supersede.

Section 3. TERM
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, One Hundred Twenty Thousand Dollars and Zero Cents ($120,000.00) in accordance with the Cost Proposal contained in the Scope of Services.

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:

Nicholas Haecker, Public Works Director
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411 x223
Facsimile: (760) 288-0639
E-Mail: [email protected]
Section 6. EXTRA WORK
Item Number: 9.

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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.

Section 7. TERMINATION
This Agreement may be terminated by the City Manager, in his/her sole discretion, 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. For clarification, the City Manager in his/her sole discretion shall have the power to terminate this Agreement with or without cause in accordance with this Section.

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.

Item Number: 9.

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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 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 Item Number: 9.

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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:
(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.

Item Number: 9.

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(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.
(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.
(10) Consultant will perform services that are outside the usual course of the City’s business.

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
Item Number: 9.

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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:
(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.

Item Number: 9.

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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;
(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
Item Number: 9.

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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 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, Item Number: 9.

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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 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.

Item Number: 9.

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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. (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.

Item Number: 9.

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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 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: Nicholas Haecker, Public Works Director
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Item Number: 9.

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Telephone: (760) 329-6411 x223
Facsimile: (760) 288-0639
E-Mail: [email protected]

To Consultant: Jeffrey M. Cooper, Senior Vice President NV5, Inc.,
42-829 Cook Street, Suite 104
Palm Desert, CA 92211
Telephone: (760) 341-3101
E-Mail: [email protected]
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.
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
Item Number: 9.

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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
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.

Item Number: 9.

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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.

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 Item Number: 9.

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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 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. Jeffrey Cooper 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 Item Number: 9.

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duties of Consultant's Principal Representative shall not be reassigned, without the express written consent of both parties.
b. Nicholas Haecker, 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
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
Item Number: 9.

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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
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. USE OF RECYCLED PRODUCTS
Item Number: 9.

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Desert Hot Springs City CouncilNovember 7, 2023

Desert Hot Springs City Council
November 7, 2023