Cities Index.
Agenda

Desert Hot Springs City Council
February 6, 2024

Document
Agenda
Meeting
February 6, 2024
Body
Desert Hot Springs City Council
Pages
73
Original file
10.0 MB
Text extracted from the city's file for reading and search. Open the original on cityofdhs.civicweb.net. That file is the official record.

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City of Desert Hot Springs

AMENDED AGENDA

REGULAR MEETING OF THE CITY COUNCIL
and the City Council Serving as the Successor Agency to the Former Redevelopment Agency Board
Tuesday, February 6, 2024
4:30 PM - Closed Session
5:30 PM - Presentations
6:00 PM - Regular Session
Council Chambers/City Hall
11-999 Palm Drive
Desert Hot Springs, California, 92240

Page
CLOSED SESSION - 4:30 P.M.

CALL TO ORDER

ROLL CALL

PUBLIC COMMENTS
At this time, item(s) on the Closed Session agenda may be discussed during Public Comments. PLEASE STATE YOUR NAME FOR THE RECORD.

CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: City of Desert Hot Springs v. Yeh Dynasty Entertainment, LLC et al.; Riverside County Superior Court Case Number CVPS2104940

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

3. Public Employee Complaints
(Government Code Section 54957)
RECESS

Page 1 of 73 ends

PRESENTATIONS - 5:30 P.M.

Recognition of the 2023 Photo Contest Winner - Elena Mercado Desert Healthcare District, Mobile Health Clinic Presentation Special Recognition
REGULAR SESSION - 6:00 P.M.

CALL TO ORDER

ROLL CALL

INVOCATION

PLEDGE OF ALLEGIANCE

CITY ATTORNEY REPORT ON CLOSED SESSION

APPROVAL OF AGENDA
At this time the City Council may amend the order of the agenda, approve the Consent Calendar, remove items from the Consent Calendar for separate discussion and action, and add Urgency Items.

Urgency Items ("Added Starters"): The Brown Act, which governs public meetings, permits the City Council to take action on any item that does not appear on the agenda only if 2/3 of the City Council (if all are present) or all members of the City Council (if fewer than all members are present) determine there is a need to take immediate action on the item, and the need to take immediate action came to the City Council's attention after the agenda was posted.

PUBLIC COMMENTS
At this time, pursuant to the Brown Act, any person may comment on matters of general interest within the subject matter jurisdiction of the City Council, NOT listed on the agenda. Under the Brown Act, the City Council should not take action on or discuss matters raised during Public Comment portion of the agenda that are not listed on the agenda.

Comments are limited to the first ten (10) speakers at three (3) minutes per speaker. Speakers may not yield their time to others without consent of the Mayor. All comments are to be directed to the City Council and shall be devoid of any personal attacks. Members of the public are expected to maintain a professional, courteous decorum during public comments.

Please complete and submit a "speaker card" to the City Clerk. You will be asked to STATE YOUR NAME AND CITY OF RESIDENCE FOR THE RECORD.

CITY MANAGER REPORT

MAYOR AND COUNCIL MEMBER REPORTS

Page 2 of 73 ends

ADMINISTRATIVE CALENDAR:

4. Appointment of a Delegate and Alternate Delegate for the 2024 Southern California Association of Governments (SCAG) Annual General Assembly
Jerryl Soriano, City Clerk
Recommendation:

Appoint a delegate and alternate delegate for the 2024 SCAG Annual General Assembly on May 2, 2024 - May 3, 2024.

Staff Report - SR-24-026 - Pdf
5 5. Cannabis Tax Policy
Frank Luckino, City Manager
Recommendation:

Staff is recommending the City Council give policy direction on the following and direct staff to bring back the first reading of the ordinance on February 20th:
1) Reduce the cannabis canopy tax to $5.75
2) Add an annual cannabis license fee of $5,775, excluding dispensaries 3) Add an allowance for lost crop
4) Payment Arrangements are an application and not a right 5) Monthly Tax Payments
6) Late penalties and interest will apply after the due date 7) Require the connection to Monarch from each entity's point of sale system
8) Limit Space (500 sq.ft) at a dispensary and not plants 9) Add the ability to create consumption spaces
Staff Report - SR-24-024 - Pdf
7 - 33
CONSENT CALENDAR:

Matters on the "Consent Calendar" are considered routine and may be acted upon by one motion under "Approval of the Agenda." Individual items may also be removed by the City Council for separate discussion under "Approval of the Agenda." The title is deemed to be read and further reading waived on any ordinance listed on the Consent Calendar for second reading and adoption.

6. City Council Regular Meeting Minutes: January 16, 2024 Jerryl Soriano, City Clerk
Recommendation: Approve the Minutes as presented; or as corrected.

Staff Report - SR-24-030 - Pdf
35 - 42

7. Unmanned Aircraft Systems (Drone) Policy
Jim Henson, Chief of Police
Recommendation: Approve the Unmanned Aircraft Systems (Drone) Policy.

Staff Report - SR-24-023 - Pdf
43 - 48

Page 3 of 73 ends

8. Notice of Completion: Guy J. Tedesco Restroom Replacement Project, City Project No. 4015
Nicholas Haecker, Public Works Director
Recommendation:

Approve the work, accept the project, and direct the City Manager to file the Notice of Completion for the Guy J. Tedesco Restroom Replacement Project, City Project No. 4015
Staff Report - SR-24-029 - Pdf
49 - 64

9. Notice of Completion: Pierson Bridge Repairs (City Project No. 2005)
Nicholas Haecker, Public Works Director
Recommendation:

Approve the work, accept the project, and direct the City Manager to file the Notice of Completion for the Pierson Bridge Repair, City Project No. 2005.

Staff Report - SR-24-028 - Pdf
65 - 73

FUTURE AGENDA ITEMS

PUBLIC COMMENTS
Opportunity is given to those members of the public who have NOT addressed the City Council on an item which is NOT on the agenda. Comments are limited to three (3) minutes per speaker. PLEASE STATE YOUR NAME AND CITY OF RESIDENCE FOR THE RECORD.

ADJOURN

UPCOMING MEETING DATES
*Please refer to the City website calendar at www.cityofdhs.org for meeting locations and the most up to date information.

February 8 Public Safety Commission 6:00 p.m.

February 13 Planning Commission 6:00 p.m.

February 20 City Council Regular Meeting 6:00 p.m.
________________________________________________________________________________________

NOTICES
In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the Office of the City Clerk at City Hall during normal business hours at 11999 Palm Drive, Desert Hot Springs, CA 92240.

If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda at 11999 Palm Drive, Desert Hot Springs, CA 92240.

Americans with Disabilities Act
In an effort to comply with the requirements of Title 2 of the Americans with Disabilities Act of 1990, the City of Desert Hot Springs requires that any person in need of any type of special equipment, assistance, or accommodation(s) in order to communicate at a City public meeting, must inform the City Clerk a minimum of 72 hours prior to the scheduled meeting to enable the City to make reasonable arrangements.

Page 4 of 73 ends

SR-24-026
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: February 6, 2024
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Appointment of a Delegate and Alternate Delegate for the 2024 Southern California Association of Governments (SCAG) Annual General Assembly RECOMMENDATION:

Appoint a delegate and alternate delegate for the 2024 SCAG Annual General Assembly on May 2, 2024 - May 3, 2024.

DISCUSSION:

The SCAG 2024 General Assembly will be held in Palm Desert at the JW Marriott Desert Springs Resort & Spa on Thursday, May 2, 2024 - Friday, May 3, 2024.

Each year, SCAG member cities select a delegate and alternate representative to participate at this annual meeting.

Council Member Betts currently serves or previously served on the following SCAG Committees:
 Transportation Committee
 Regional Housing Needs Assessment (RHNA) Subcommittee Last year, Council Member Betts was appointed as the Delegate, and Mayor Pro Tem Pye was the Alternate.

The Delegate (or Alternate, in the absence of the Delegate) will have the opportunity to propose any policy matter for determination by the General Assembly in the form of a proposed Resolution and/or to propose revisions to the SCAG Bylaws. All proposed Resolutions and/or Bylaws revisions will be reviewed by SCAG’s Bylaws and Resolutions Committee and Regional Council before being considered at the Regional Conference and General Assembly meeting.

FISCAL IMPACT:

None.

Item Number: 4.

Page 5 of 73 ends
Page 6 of 73 ends

SR-24-024
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: February 6, 2024
Department: City Manager
Prepared by: Frank Luckino, City Manager
Subject: Cannabis Tax Policy
RECOMMENDATION:

Staff is recommending the City Council give policy direction on the following and direct staff to bring back the first reading of the ordinance on February 20th:
1) Reduce the cannabis canopy tax to $5.75
2) Add an annual cannabis license fee of $5,775, excluding dispensaries 3) Add an allowance for lost crop
4) Payment Arrangements are an application and not a right 5) Monthly Tax Payments
6) Late penalties and interest will apply after the due date 7) Require the connection to Monarch from each entity's point of sale system 8) Limit Space (500 sq.ft) at a dispensary and not plants 9) Add the ability to create consumption spaces
BACKGROUND:

Council Goals
The overarching objective established on August 5, 2014, by City Council resolution was to devise a fair and equitable tax framework for all entities within the cannabis industry, which includes cultivators, dispensaries, and ancillary businesses, to benefit the community at large.

Historical Tax Structure (Adopted August 5, 2014)
 Retail Tax: Imposed at a rate of 10% on proceeds/sales.  Cultivation Tax: Levied based on square footage at $25/sq.ft for the first 3,000 square feet and $10/sq.ft for the remaining square feet.
 Voter Support: Tax structure received an approval rating of 70%.

July 2018 Changes
 Taxes increased by CPI of 2% as per Municipal Code 3.33040 Annual Adjustment making the taxes $25.50/sqft for the first 3,000 square feet and $10.20/sqft for the remaining square feet.

Item Number: 5.

Page 7 of 73 ends

SR-24-024
February 2021 Changes
 Removed the $25.50/sqft for the first 3,000 square feet and made the tax a flat rate of $10.20/sqft.
 The reduction in tax revenue was supposed to be offset by anticipated increases in cultivation space already in the planning stage.

April 2023 Changes
 Enactment of a temporary 50% reduction in cultivation tax, lowering the rate to $5.10/sq.ft.  This adjustment led to a one-time revenue shortfall of $2,335,784.

July 5th, 2023 Changes
 Continuation of the 50% reduced cultivation tax rate of $5.10/sq.ft.  The revenue impact mirrored the previous period, with a loss of $2,335,784.

November 7, 2023 Changes
 City Council sanctioned a temporary tax cut, reducing the cannabis cultivation tax from $10.20 per sq. ft to $7.50 per sq. ft. for the tax period of July – December 2023.  The newly adjusted ordinance is slated for implementation on January 6, 2024.  An amendment to the definition of taxable cultivation space was effected on November 17, 2023, which will also contribute to a decrease in the overall tax liability for the relevant tax period.

The City Council has made a series of temporary tax adjustments in response to prevailing economic conditions and industry feedback. These strategic decisions aim to sustain the viability of the cannabis industry within our community while also considering the fiscal health of the City.

DISCUSSION:

The City Council has given direction to the Staff to relieve the Cannabis Industry of added cost burden. And in doing so in 2023 delivered the industry a reduction in total cannabis taxable space from, at that time, 68,703 sq.ft. AND relieved approximately $275K in annual security cost per establishment. And, at different times reduced the cultivation tax from $10.20 sq.ft. to $5.00 sq.ft to $7.50 sq. ft in respective 6-month periods over the past twelve months. Council continued to hear challenges from the industry and instructed staff again to come back with further analysis and recommendation. The new City Manager took the helm on November 6th and started to dive into the data and talked to Council, Staff, Community, CVCAN, and some members of the cultivation, manufacturing, distribution, and dispensary owners and representatives. And with all that dialogue led us to the recommendation today.

FISCAL IMPACT:

If approved this action would result in a $2,517,362 revenue in cannabis cultivation. Our collection rate, on-time and recapturing delinquencies is $5.96/sq.ft. The recommendation keeps us on track with our current collection rate, however if compared to our budget of $10.20 sq. ft is a loss of $1,948,218. The estimated loss in tax revenue would be slightly offset by an increase in permit fees by $190,000 if an annual cannabis license fee of $5,775 is approved.

Item Number: 5.

Page 8 of 73 ends

SR-24-024
OPTIONAL:

Council could choose to change the proposal(s) or reject all and send it back for further analysis.

ATTACHMENTS:
1) PowerPoint Presentation
Item Number: 5.

Page 9 of 73 ends

Cannabis Tax
Discussion
Frank Luckino
City Manager Item Number: 5. Page 10 of 73
Recommendations
Short Term
Short Term (Immediate, as soon as ordinance is presented and approved):
• Reduction of the Cannabis Canopy tax to $5.75
• Add an annual Cannabis License renewal fee of $5,770, excluding dispensaries • Add an allowance for lost crop
• Payment arrangements are an application and NOT a right • Monthly tax payments
• Late fees and penalties will be assessed after due date • Require the connection to Monarch from each entity's Point of Sale System • Limit space (500 sq./ft.) at a dispensary for cultivation, and not plants • Add the ability to create consumption spaces Item Number: 5.

Page 11 of 73 ends

Recommendations
Long Term
Long Term (2-5 years) Vision:
•Convert Canopy taxes to a transactional tax, i.e. percentage of sales •Add a tiered system of taxation to manufacturing and distribution but still give the incentive to come here, i.e. no taxes for zero sales to some number then have a tax once it exceeds that sales number
•Build our local brand and industry through incentivizing the made in DHS •Lobbying for the de-scheduling, 280E repeal, and interstate commerce allowance •Reviewing the Dispensary Taxation and fee model
•Reviewing the potential to add psychedelics
Item Number: 5.

Page 12 of 73 ends

Goals & Discovery
Goals •Collect Tax Dollars •Fair and Equitable Taxes and Fees for the Industry •Fair and Equitable Taxes and Fees for the Residents that authorized this activity •Recognize the impacts to the general fund budget •Create Value for the City and Industry Discovery •Still a predominant cash industry – off book transactions are likely and possible •Canopy Tax – Discourages growth for additional rooms because an entity does not want to pay tax due to only potential sales •Manufactures and Distributors came here because of the tax policy, i.e. no taxes •Retail taxes are 32.75% including local, state tax, and state excise •One size tax policy does not fit all, very complex
Item Number: 5.

Page 13 of 73 ends

Background
Council Goals
• To create a fair and equitable tax structure for the cannabis industry (cultivators, dispensaries, and all ancillary businesses) and community.

August 5, 2014- (City Council Adopted Resolution)
•Retail Tax percentage for proceeds/sales (10% of sales) • Tax square footage for cultivation ($10.20/sq.ft.) •Voter support (70%) April 2023 (Changes)
• Temporary 50% reduction of cultivation tax ($5.10/sq.ft.) •Resulted in one-time revenue loss of $2,335,784
July 5th, 2023 (Changes) • Temporary 50% reduction of cultivation tax ($5.10/sq.ft.) •Resulted in one-time revenue loss of $2,335,784
November 7, 2023 (Changes) •City Council approved to temporarily reduced the cannabis cultivation tax rate from $10.20 per sq. ft to $7.50 per sq. ft. for the July – December 2023 tax period. • The ordinance will go into effect on January 6, 2024 • The amended definition of space went into effect on November 17, 2023. • This tax period would also see a reduction to the overall tax liability due to the amended definition of space Item Number: 5.

Page 14 of 73 ends

Road Map
Execution of plan
•Interim/Immediate/Short Term (next 12 months)
•Long term (2-5+ years)
Incentivize Dispensaries
•Square footage (500 sq./ft.) VS Number of plants
•Allow consumption lounge permits
Incentivize Cultivators
•Credits for “Bad Crops”
•Reduction of Canopy Tax
Discuss Manufacturing, Distribution, & Other tax
•Analyze other cities
•Implement within the next 5 years
Cannabis Uses/Industry Sectors
• Cultivation
• Storefront Retail “dispensary”
• Manufacturing
• Distribution
• Non-Storefront Retail “delivery”
• Testing
• Entertainment
• Hotel
Item Number: 5.

Page 15 of 73 ends

Execution of
Plan
Long Term (2-5 years) Vision:
•This will be a 2-5 year plan that will be
analyzed with data collected during
the 12-month interim period. This data
along with new recommendations will
be presented to Council at the end of
the “short term/immediate” plan.

Short Term (12 month) Vision:
•This will be the immediate plan that will
be implemented after the second
reading, if adopted. But, then will take
up to twelve months to have a
comprehensive review and update of
the ordinance.

Item Number: 5.

Page 16 of 73 ends

Coachella Valley
Item Number: 5.

Page 17 of 73 ends

California
Item Number: 5.

Page 18 of 73 ends

USA
Item Number: 5.

Page 19 of 73 ends

$3,177,728
$2,755,200 $2,548,120

DHS CANNABIS CULTIVATION TAX
SALES
2022 2023 2024 2025 (projected)

DESERT HOT SPRINGS CANNABIS

CULTIVATION TAX SALES TRENDS
Received
vs.

Billed %
Amount
Received
Year Tax Rate
2022 $10.20/SF $3,177,728 84%
$10.20 & $2,755,200 51%
$5.20
(Temp
Red.)/SF
2023
2024 $7.50/SF TBD TBD
*2025 $5.75/SF $2,517,362 100%
(projected)
*The projected amount received is calculated based on the revised taxable cultivation square footage amount of 437,802 sq./ft (Reduced 63,104 sq./ft. from the previous 500,906 sq./ft.). This information does not include an estimated additional license fee revenue of $300,000.

Item Number: 5.

Page 20 of 73 ends

Desert Hot Springs Cannabis Business Square Footage
Active SF In-Transition SF Empty SF Unfinished SF
1,057,725 95,065 94,587 4,022,326
1,057,725
95,065 94,587
4,022,326
0 500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
Sq. Ft. Total
DHS CANNABIS BUSINESS SQ. FT.

Active In Transition Empty Unfinished
•Storefront Retail
•Non-Storefront Retail
•Cultivation
•Manufacturing
•Distribution
•Multi-Use
DHS
Cannabis
Business
Uses Item Number: 5.

Page 21 of 73 ends

Palm
Springs
Desert Hot
Springs
Cathedral
City
Palm
Desert
Coachella
$4,300,000
$2,700,000
$1,800,000
$3,700,000
$1,900,000
$4,000,000
$2,000,000
$1,400,000
$3,300,000
$1,377,000

CANNABIS RETAIL SALES
FY20/21 FY21/22
Coachella Valley Cannabis Retail Sales
Decline in
Sales
Tax
Rate
# of
Stores
City
7%
($300,000)
Palm 24 10%
Springs
26%
($700,000)
Desert Hot 9 10%
Springs
22%
($400,000)
Cathedral 12 5%
City
11%
(400,000)
Palm Desert 7 5%
28%
($523,000)
Coachella 3 6% Item Number: 5.

Page 22 of 73 ends

Comparative Rates
California Comparative Cannabis Rates
City Retail Cultivation Manufacturing Distribution Non-Storefront The current rate is X
0%.

Going to PS Council on
Feb 8, 2024 with $5 sq./ft.
recommendation
5% 2%
Going to PS Council
on Feb 8, 2024 with
$5 sq./ft.
recommendation
10%
Going to PS
Council on Feb 8,
2024 with 5%
recommendation
Palm Springs
$10 sq./ft. 5%-40% X 5%
If taxes are paid up
to date ($15 sq./ft. if
taxes are back due)
*Cathedral 5%
City
Palm Desert 5% $10 sq./ft. 2% X X
Coachella 6% 3% 2% X X
$5 sq./ft. (outdoor $10 sq./ft. $10 sq./ft. $10 sq./ft. cultivation)
$10 sq./ft. (indoor
cultivation)
San Jacinto 15%
Adelanto 3% $5 sq./ft. 1% 1% X
California City 6% $1-$7 sq./ft. 6% 6% X Item Number: 5.

Page 23 of 73 ends

● Wholesale cannabis rates have been
volatile.
● 2020 saw an increase in the wholesale
price to around $2,200 per pound of
untrimmed cannabis.
● 2022, where the wholesale price
dropped to as low as $633 per pound.
● Since that time, most reports indicate
an increase and steadying of the
wholesale per pound price of around
$1,200. This is consistent with
information provided by cultivators
within Desert Hot Springs.

USA Rates
Chart 3.01 provided by Cannabis Benchmarks, a
Item Number: 5.
division of New Leaf Data Services LLC.

Page 24 of 73 ends

DHS Operators
● There are currently 61 operators in Desert Hot Springs. The number has been consistent over the last two years. Although operators have come and gone, the
number of permitted operating facilities has remained
steady
● Nine (9) storefront retailers
● Five (5) non-storefront retailers
● Thirty-three (33) cultivators
● Ten 10 manufacturers
● Four (4) distributors
● Cultivation facilities cannot have a non-storefront retail component of their cultivation and require a fully
separate premises and regulatory permits.
● 77% of the facilities bear some tax liability
Item Number: 5.

Page 25 of 73 ends

Cultivation Payment Analysis FY2021-22 & FY2022-23
Percentage
Received for Current
vs. Billed
Total Amount
Received (Past
+ Current)
Credits Applied
(if applicable)
Amount
Received for
Current Period
Amount
Received for
Amount Billed Past Due
Cultivation Tax
Period
December 2022 $2,250,845.96 $535,193.04 $459,776.80 ($2,403.82) $994,969.84 20.43% June 2023 $1,049,329.84 $1,152,148.94 $417,287.13 ($21,161.90) $1,569,436.07 39.77% December 2023
● Based on the Revenue Vs.

Collection Table, the 50%
reduction in cultivation taxes
resulted in a 19% increase in
the percentage of revenue
collected but left an overall
revenue loss of $38,389.67.

Payment Analysis
Revenue Vs. Collection
Percentage
Collected
Revenue
July- Dec 2022 (Rate $455,766.80 20.43%
$10.20 sq./ft.)
Jan-June 2023 (Rate $417,287.13 39.77%
$5.10 sq./ft.)
July-Dec 2023
(Rate $5.10 sq./ft.

Item Number: 5.

Page 26 of 73 ends

Canna-Tourism
● Zoning Adjustments
● Lounges
● Consumption Regulations
● Streamlining Licensing Processes
● Event Licensing for Cannabis Events
● Advertise New Regulations and Tax Rates
● Spa/Hotel/Hospitality Regulations
● Tourism Integration
Item Number: 5.

Page 27 of 73 ends

Cannabis
Employees
Total Cannabis
Facility
Employees:
4,150
1,512 DHS
Residents

36.43% of all
Cannabis
Employees
Item Number: 5.

Page 28 of 73 ends

Various Local
Brands
Item Number: 5.

Page 29 of 73 ends

Recommendations
Short Term
Short Term (Immediate, as soon as ordinance is presented and approved):
• Reduction of the Cannabis Canopy tax to $5.75
• Add an annual Cannabis License renewal fee of $5,770, excluding dispensaries • Add an allowance for lost crop
• Payment arrangements are an application and NOT a right • Monthly tax payments
• Late fees and penalties will be assessed after due date • Require the connection to Monarch from each entity's Point of Sale System • Limit space at a dispensary for cultivation, and not plants • Add the ability to create consumption spaces
Item Number: 5.

Page 30 of 73 ends

Recommendations
Long Term
Long Term (2-5 years) Vision:
• Convert Canopy taxes to a transactional tax, i.e. percentage of sales • Add a tiered system of taxation to manufacturing and distribution but still give the incentive to come here, i.e. no taxes for zero sales to some number then have a tax once it exceeds that sales number
• Build our local brand and industry through incentivizing the made in DHS • Lobbying for the de-scheduling, 280E repeal, and interstate commerce allowance • Reviewing the Dispensary Taxation and fee model
• Reviewing the potential to add psychedelics
Item Number: 5.

Page 31 of 73 ends

Fiscal Impact
● The current tax reductions and definition of space will impact the City’s budget with a 2.4 million dollar deficit. ● New revenue stream from consumption lounges has not been analyzed for its impact on new potential revenues.
● Storefront retail tax reduction will need to be analyzed for its negative impact on the general fund.

Item Number: 5.

Page 32 of 73 ends

End
Thank you.

Item Number: 5.

Page 33 of 73 ends
Page 34 of 73 ends

SR-24-030
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: February 6, 2024
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: City Council Regular Meeting Minutes: January 16, 2024 RECOMMENDATION:

Approve the Minutes as presented; or as corrected.

ATTACHMENTS:

Draft City Council Regular Meeting Minutes - January 16, 2024 Item Number: 6.

Page 35 of 73 ends

City of Desert Hot Springs

DRAFT ACTION MINUTES
City Council Meeting
6:00 PM - Tuesday, January 16, 2024
Council Chambers
CLOSED SESSION - 4:00 P.M.

CALL TO ORDER
Mayor Matas called the Closed Session to order at 4:00 PM.

ROLL CALL

Present:

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

PUBLIC COMMENTS
None.

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

CLOSED SESSION:

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

2. Public Employee Complaints
(Government Code Section 54957)
PRESENTATIONS - 5:30 P.M.

Recognition of the Desert Hot Springs High School Football Team Mayor Matas and the City Council presented a Certificate of Recognition to the Desert Hot Springs High School Football Team for their achievements.

City Employee Years of Service Recognition
Item Number: 6.

Page 36 of 73 ends

City Council
January 16, 2024
Brent Jones, Human Resources Analyst, presented anniversary pins to the following employees:
5-Year: Viviana Gonzalez-Osoria, Management Analyst; Geoffrey Buchheim, Administrative Services Director; Victor Sandoval, Lead Maintenance Technician; Colleen Stephens, Assistant Planner; Joe Valdez, Public Works Inspector; Andrew Duncan, Police Officer; and Nicholas Haecker, Public Works Director.
10-Year: Daud Chang, Police Commander; Corinn Lindsey, Police Commander; and James Harbin, Public Works Supervisor.
15-Year: Tom Pittenger, Support Services Manager
20-Year: Phillip Weigle, Sergeant
25-Year: Scott Wittig, Public Works Supervisor
REGULAR SESSION - 6:00 P.M.

CALL TO ORDER
Mayor Matas called the Regular Session to order at 6:00 PM.

ROLL CALL

Present:

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

SELECTION OF MAYOR PRO TEM
ACTION: Ratify Mayor Matas' appointment of Jan Pye as Mayor Pro Tem.

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

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

INVOCATION
Tiara Smith gave the Invocation.

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

Item Number: 6.

Page 37 of 73 ends

City Council
January 16, 2024

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

APPROVAL OF AGENDA
ACTION: Approve the January 16, 2024 Regular Meeting agenda and approve the Consent Calendar except for Items 7, 8, and 9.

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

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

PUBLIC COMMENTS
1) Tom Moen expressed concerns regarding Highway 62 and Pierson Boulevard, and Varner Road.
2) Marion Champion gave Mission Springs Water District updates. 3) Brian Brodowski spoke regarding DiversityDHS.

CITY MANAGER REPORT
Frank Luckino, City Manager, reported that CalTrans has approved safety improvements at Highway 62 and Pierson Boulevard.

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

Mayor Pro Tem Pye reported on the various meetings and events she attended.

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

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

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

ADMINISTRATIVE CALENDAR:

3. Appointment to the Public Safety Commission to Fill One (1) Vacancy for Unexpired Term
Recommendation:

Item Number: 6.

Page 38 of 73 ends

City Council
January 16, 2024
Ratify Council Member Pye's appointment of Michael Rizzio to the Public Safety Commission to fill one (1) vacancy consisting of an unexpired term through January 2025.

Staff Report - SR-24-014 - Pdf
Jerryl Soriano, City Clerk, presented the staff report.

ACTION: Approve Staff recommendation.

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

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

4. City of Desert Hot Springs Homeless Program
Recommendation:

Adopt the Riverside County Housing and Workforce Solutions Homeless Action Plan.

Staff Report - SR-24-017 - Pdf
Noe Arechiga, Grants Manager, presented the staff report.

Tanya Torno and Greg Rodriguez, Riverside County Housing and Workforce Solutions Department, and Karen Roper, Homeless Solutions Manager, City of Corona, presented an overview of the County's Homeless Strategic Plan and responded to questions.

Tom Moen spoke in support.

Sally Hedberg spoke in support.

A discussion ensued.

ACTION: Approve Staff recommendation.

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

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

5. Social Media Policy
Recommendation:

Approve the Social Media Policy.

Staff Report - SR-24-007 - Pdf
Item Number: 6.

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City Council
January 16, 2024
Erick Becerril, Housing & Community Program Manager, presented the staff report. Staff responded to questions.

ACTION: Approve Staff recommendation.

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

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

6. City Council Regular Meeting Minutes: December 5, 2023 Staff Report - SR-24-018 - Pdf
ACTION: Approved the Minutes as presented.

7. Riverside County Transportation Commission Loan for Road Repairs from Storm Damage
Recommendation:

Authorize the City Manager to develop, finalize, and execute a loan agreement between the City and Riverside County Transportation Commission for a loan amount of up to $7,500,000.00 pursuant to legal counsel review prior to execution.

Staff Report - SR-24-010 - Pdf
Councilmember Betts provided comments.

ACTION: Approve Staff recommendation.

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

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

8. Reimbursement Agreement for Emergency Access Study - Coachella Valley Association of Governments (CVAG)
Recommendation:

Authorize the City Manager to enter into a Reimbursement Agreement with the Coachella Valley Association of Governments (CVAG) for the design and engineering of an Emergency Access Study for the City of Desert Hot Springs, with Desert Hot Springs’ share of the project cost not to exceed $28,750.00 being 25% of the anticipated Local Share of the Project costs.

Staff Report - SR-24-015 - Pdf
Mayor Pro Tem Pye requested Mayor Matas to provide an overview of the item Item Number: 6.

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City Council
January 16, 2024
for the public.

Tom Moen expressed thanks for Little Morongo Road repairs.

ACTION: Approve Staff recommendation.

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

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

9. Resolution to Approve Salary Schedules for Fiscal Years 2020-2021, 2021-2022, 2022-2023, 2023-2024
Recommendation:

Adopt a Resolution of the City Council of the City of Desert Hot Springs approving the salary schedules for Fiscal Years 2020-2021, 2021-2022, 2022- 2023, 2023-2024.

Staff Report - SR-24-016 - Pdf
Councilmember Betts provided comments.

ACTION: Approve Staff recommendation and adopt Resolution No. 2024-001.

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

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

10. Notice of Completion: ATP Cycle 5 - Palm Drive North, Phase 1 Improvements (City Project No. 3000)
Staff Report - SR-24-013 - Pdf
ACTION: Approved Staff recommendation to approve the work, accept the project, and direct the City Manager to file the Notice of Completion for the ATP Cycle 5 - Palm Drive North – Phase 1 Improvements, City Project No. 3000.

11. Payment Register and City Council Expenditures for the Period of November 1, 2023 to November 30, 2023
Staff Report - SR-24-011 - Pdf
ACTION: Approved Staff recommendation to receive and file.

12. Payment Register and City Council Expenditures for the Period of December 1, 2023 to December 31, 2023
Item Number: 6.

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City Council
January 16, 2024
Staff Report - SR-24-012 - Pdf
ACTION: Approved Staff recommendation to receive and file.

PUBLIC COMMENTS
None.

ADJOURN
Mayor Matas adjourned the meeting at 8:23 PM.

Jerryl Soriano, CMC, City Clerk
Item Number: 6.

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SR-24-023
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: February 6, 2024
Department: Police Department
Prepared by: Steven Shaw, Deputy Police Chief
Subject: Unmanned Aircraft Systems (Drone) Policy
RECOMMENDATION:

Approve the Unmanned Aircraft Systems (Drone) Policy.

BACKGROUND:

Since 2017, the department has used drones (Unmanned Aircraft Systems-UAS) as a resource tool for search and rescue operations, and traffic and crime scene documentation.

DISCUSSION:

A safe and effective response to a law enforcement emergency depends on accurate and timely information. With advances in technology, we are seeing more law enforcement agencies utilizing drones not only for search and rescue, and scene documentation, but also as a first responder resource. The Desert Hot Springs Police Department is expanding its drone program to utilize the drone as a proactive resource in response to a law enforcement emergency. The intent of the expanded drone program is to provide airborne support to officers in the field, in a safe, responsible, and transparent manner. This support provides for more timely and accurate information as incidents are taking place, better officer safety for those officers responding to an incident, reduced response times, better safety to the public and an overall increase in the quality of life in Desert Hot Springs.

The expanded drone program is designed to have a drone on scene before responding officers arrive on scene. This allows for real time information to be given to the officers while enroute to the incident. Observations from the drone will advise officers of potential dangers, fleeing suspects, tactical approaches, and additional resource needs, all before the first officer is on scene. The drone as a first responder is also beneficial given the desert environment of our jurisdiction, and the frequency with which officers respond to calls for service in the desert area. The drone will provide the ability to quickly cover large areas from the air in areas where officers may not have easy access.

The drone that will be used by the department is a DJI Mavic Enterprise 3T. The drone is equipped with a thermal/infrared camera which allows for day and night operation. The drone also has a remote speaker that allows the operator to speak and hear subjects on the ground. This is especially useful in cases involving missing or lost people in the desert, barricaded suspects, or de-escalation of armed subjects. The drone has mapping and photographing capabilities which allow for the documentation of crime and traffic scenes. Flight time for the drone on a single battery is 45 minutes and up to a 6-mile range.

Item Number: 7.

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SR-24-023
Drone operations are governed by a number of policies, regulations, and laws. Only authorized operators who have completed specific Federal Aviation Administration (FAA) training and have received their FAA certification are authorized to operate the drone. Use of vision enhancement technology (e.g., thermal and other imaging equipment not generally available to the public) is permissible only where there is no protectable privacy interest or when in compliance with exigent circumstances, a search warrant, or court order. While media may be recorded during deployment, it is not operationally required during all flights and is based on the circumstances and the needs of the department. Drone video will be saved and cataloged per department Body Worn Camera (BWC) video.

While not all inclusive, intended uses for the drone include:
 High priority calls including calls involving weapons, aggravated assaults, domestic violence in public, injury traffic collisions, etc.
 Disturbances at businesses or in public places with suspects reported to be on scene.  Assist calls involving structure fires or outside fires.  Vehicle or foot pursuits.
 Reported gunfire or fireworks.

The drone shall not be used for.
 Random surveillance activities against an individual or group.  To harass, intimidate or discriminate against any individual or group.  Random patrol through the city.
 Any operation that would run afoul of the United States or California Constitutions, including the Fourth Amendment.
 The drone shall not be weaponized.

The department recognizes that use of a drone potentially involves privacy considerations. Absent a warrant or exigent circumstances, drone operators shall adhere to FAA altitude regulations and shall not intentionally record or transmit images of any location where a person would have a reasonable expectation of privacy. Drone operators shall take reasonable precautions to avoid inadvertently recording or transmitting images of areas where there is a reasonable expectation of privacy.

Reasonable precautions can include deactivating or turning imaging devices away from such areas or persons during drone operations. Hot pursuit of fleeing suspects, searches for missing/injured people, or other exigent circumstances generally permitting officers to enter private property may be cause for drone operations over private property.

FISCAL IMPACT:

None.

ATTACHMENTS:
1) DP 703 Unmanned Aircraft Systems
Item Number: 7.

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Desert HotSprings Police Department
Desert HotSprings PD Policy Manual
Unmanned Aircraft Systems
703.1 PURPOSE . The use of a City of Desert Hot Springs ("City")-owned unmanned aircraft systems ("UAS“,also commonly known as drones) willenhance the Desert Hot Springs Police Department's (“PD”)mission to protect the life, safety, and property of the people of the City of Desert Hot Springs. The purpose of this policy is to establish guidelines and procedures for the PD's operation of a UAS and for the management and storage of informationcaptured by a UAS.The operation of, and management ofinfonnationcollectedby, a UASshall be incompliance withthis policy, federal, state, and local law, and any applicable regulation. This policy does not regulate UAS operated by private persons; itonly regulates UASoperated by the PD. 703.1.1 DEFINITIONS
Unmanned Aerial System (UAS)- An unmanned aircraftof any type that is capable ofsustaining directed ?ight. whether preprogrammed or remotely controlled ( commonly referred to as an unmanned aerial vehicle (UAV)). and all of the supporting or attached systems designed for gathering informationthrough imaging, recording or any other means. 703.2 POLICY
It is the policy of the PD that duly trained and authorized PD personnel may operate a UAS to provide aerial observation support for the PD. AllPDoperations of the UAS shall-be conducted safely, incompliance withthe law, and withrespect for the privacy for the people of City of Desert HotSprings. The PDshall develop a programforthe usage and operations ofthe UAS(“Program"). 703.3 ADMINISTRATION
(a) Program Manager - The Chief of Police shall designate a person, who has the rank of Sergeant or higher, as the Program Manager responsible for the management of the UAS Program. The Chief of Police or his/her designee shall have ?nal approval on all UAS?ight missions.The Program Manager's duties include, but are not limited to.the following:

1. Coordinatingthe FAACerti?cateofWaiverorAuthorization(COA)applicationprocess and ensuring that the COA is current.

2. Ensuring that all authorized operators and required observers have completed all required FAA and department-approved training in the operation, applicable laws, policies, and procedures regarding the use of the UAS.

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Desert HotSprings PD PolicyManual
Unmanned AircraftSystems

10. Developing an operational protocol governing the deployment and operation of a UAS including, but not limitedto, safety oversight, use of visual observers, establishment of lost linkprocedures, and communicationwith air traf?c controlfacilities.

Developing a protocolfor fullydocumenting all missions.

Developing a UAS inspection, maintenance, and record-keeping protocol to ensure continuing ainrvorthinessof a UAS, up to and including its overhaulor life limits.

Developing protocols to ensure that all data intended to be used as evidence are accessed, maintained, stored, and retrieved in a manner that ensures its integrity as evidence, includingstrict adherence to the chain of custody requirements.

Developing protocols that ensure retention and purge periods are maintained in accordance with established records retention schedules.

Facilitating law enforcement access to images and data captured by the UAS.

Recommending program enhancements.particularlyregarding safety and information security.

Ensuring that established protocols are followedby monitoring and providingperiodic reports on the program to the Chief of Police.
703.4 OPERATIONS
(a)
(D)
The UAS will be operated in compliance with this policy, and all applicable federal, state, and local laws and regulations. In particular, the UAS Program shall comply with the Fourth Amendment of the United States Constitution. The UAS Program must be implemented under any ofthe following regulatory framework, which may be amended from time to time:

1. Title 14ofthe Code of Federal Regulations (14 CFR) Part 107, SmallUnmanned AircraftSystems. The Program Manager or his/her designee must possess a current Remote PilotCerti?cate issued by the Federal AviationAdministration. or other equivalent credential.

2. Public Aircraft Operations pursuant to Title 49 of the United States Code 40102(a)(41). The Program Manager shall obtain a certi?cate waiver or authorizationfrom the Federal AviationAdministrationand ensure the timely renewal of the certi?cate.

3. Emergency Certi?cate of Waiver or Authorization.The Program Manager shall coordinate with the Federal Aviation Administration to obtain an emergency certi?cate ofwaiver or authorization when necessary.

4. A FlightLog Book shall be kept in the Watch Commanders of?ce. Alluse ofthe UAS including training shall be logged inthe Flight Log Book for documentation and demonstration of pro?ciency purposes.

Permitted Uses - The deployment of a UAS shall only be used where aerial observation would assist law enforcement inthe performance oftheir of?cialduties. All deployments must be documented, including the date and time, purpose of the flight, and location. UAS may only be deployed in the following situations:
copyright Lexipcl.LLC2024101118. AllRights Reserved.

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Desert Hot Springs Police Department
Desert Hot Springs PD Policy Manual
Unmanned AircraftSystems
Search and rescue operations
Searches for ?eeing suspects
Traffic accident scene processing
Crime scene processing
Routine training
As permitted by a search warrant
High-priority cells including calls involving weapons, aggravated assaults, domesticviolence in public, injurytraf?c collisions, etc.

8. Disturbances at businesses, or in public places withsuspects reported to be on scene.

9. AOD calls reference structure or outside ?res (Info relayed to CaIFire)

10. Routine non-injury traf?c collisions with road blockage (UAS can relay traf?c needs)

11. Patrol or detective requests for back-up

12. Locatedlabandonedstolen vehicles

13. FLOCKcamera hits

14. High-risk vehicle stops

15. VehicleIFootpursuits

16. Reported gun?re (Shots" calls)
(c) Prohibited Uses - The UAS shall not be used in any mannerthat is contrary to this policy. Further.the UAS shall not be used for any of the following:

1. Personal or unauthorized?ights

2. Random surveillance or general searches in any manner whatsoever.

3. Any operations that would run afoul of the United States or California Constitutions, including the Fourth Amendment.

4. No UAS may be weaponized
703.4.1 PRIVACY
The use of the UAS potentially involves privacy considerations. Absent a wanant or exigent circumstances, operators and observers shall adhere to FAA altitude regulations and shall not intentionally record or transmit images of any location where a person would have a reasonable expectation of privacy. Operators and observers shall take reasonable precautions to avoid inadvertently recording or transmitting images of areas where there is a reasonable expectation of privacy. Reasonable precautions can include.for example, deactivating orturning imaging devices away fromsuch areas or persons during UASoperations. Hot pursuit of?eeing suspects. searches for missingfinjured people. or other exigent circumstances generally permitting of?cers to enter private property may be cause for UAS operations over private property. copyragmtextpoa. u.c 2024I01I18.A!lRigt'its Reserved. F1-use ‘fa-a? - Publishedwithpermission byDesertHotSpringsPolice WDRA Unmanned A’ Systems 3 Department Item Number: 7.

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Desert Hot Springs Police Department
Desert HotSprings PD Poiicy Manual
Unmanned AircraftSystems
703.5 DATA RETENTION
Allexisting retention schedules and management policies regarding body-wom cameras shall apply to infonnation captured by any UAS, including any audio or video recordings, or other data. Unlessotherwiserequired by law, any informationcaptured by a UASshallnot be shared with other law enforcement agencies without prior approval of the Chiefof Police or Deputy Chief.The law enforcement agency receiving the UAS-captured infonnation must have a written retention and management policy.
703.6 PERIODICREVIEW
This policy shall be reviewed periodically by the City. PD and CityAttorney from time to time to' ensure it conforms to applicable existing laws regulating UAS and laws concerningprivacy. civil rights. and civilliberties. This policymay be revised and updated fromtime to time. 703.7 QUALIFICATIONSAND DESIGNATIONS
UAS PilotQuali?cations and Certification
General Responsibilities:

1. The PilotinCommand (PIC)of a UAS is directly responsible for, and is the ?nal authority with respect to the in-?ight operation of the UAS.

2. Supplemental Pilot(SP) is a supporting pilotrole as determined or required by the complexity of the system in the manufacturer recommendations.The SP ifrequired may augment the PIC; however, the PIC retains complete and overallresponsibilityfor the operation of the UAS.

3. The VisualObserver (V0) is the person designated to supplement situationalawareness and maintainVisualLineof Sight (VLOS),assisting withseeing and avoiding other air traf?c or objects aloftor on the ground.

UAS PilotCertificationRequirements

1. For operations in FAANational Airspace, at a minimumthe PIC is required to have a Remote PilotAirmanCerti?cate with a small UAS rating.

Atminimum,the PICmust demonstrate three takeoffs (launch) and landings (recovery) inthe UAS in the previous 90 days.

Currency may also be regained under the direct supervision of a quali?ed and current PIC in the speci?c UAS. Ifthe above means are unavailable, currency may be regained with dedicated training ?ights on the UAS system prior to any operational ?ight. \/isual Observer (V0) Quali?cations and Certi?cation:

A dedicated Visual Observer (V0) is required for operations above 400 feet AGLor in congested areas. Operations below400 feet AGLand in non-congested areas willmaintain traf?c separation withthe situationalawareness of the PIC.
ht Laxipol.u.c 2024I01I18.AnRights Reserved. ' . Comte
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SR-24-029
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: February 6, 2024
Department: Public Works
Prepared by: Nicholas Haecker, Public Works Director
Subject: Notice of Completion: Guy J. Tedesco Restroom Replacement Project, City Project No. 4015
RECOMMENDATION:

Approve the work, accept the project, and direct the City Manager to file the Notice of Completion for the Guy J. Tedesco Restroom Replacement Project, City Project No. 4015 BACKGROUND:

The City of Desert Hot Springs applied for and received grant funding from the Community Development Block Grant (CDBG) FY 2019/20 and FY 2021/22 program in the amount of $550,542.00 for the Guy J. Tedesco Restroom Replacement Project.

On December 12, 2022, the City of Desert Hot Springs posted a Request for Proposal (RFP) for City Project No. 4015 – Guy J. Tedesco Restroom Replacement Project. The Notice Inviting Bids was posted on the City’s website and with Planit Reprographics, a local valley clearing house for public bid solicitations, as well as published in the Desert Star Weekly and La Prensa Hispana. The RFP was released for 30 days, and on January 11, 2023, five Bids were received and opened.

On February 7, 2023, City Council approved Staff’s recommendation to award the construction contract agreement to the lowest responsible bidder, Abboud Diamond Construction, Inc. and authorized the City Manager to execute the Agreement for the construction of the Guy J. Tedesco Park Restroom Replacement Project, Federal Project No. 4-DHS.34-21, City Project No. 4015 in the amount of $658,500, and approved a 10% contingency amount of $65,850, which brought the total project budget to $724,350.00.

The scope of work for this project included the demolition of the existing structure, site preparation, the purchase of the restroom facility, utility connections, concrete site work, and landscaping and irrigation.

DISCUSSION:

On January 31, 2024, Abboud Diamond Construction, Inc. completed construction of the Guy J.

Tedesco Restroom Replacement Project., City Project No. 40015. The work has been inspected and approved by the inspector and the City’s Engineering Division. The next step is for the City to record a Notice of Completion for the project.

Item Number: 8.

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SR-24-029
FISCAL IMPACT:

This project includes Abboud Diamond Construction, Inc. construction contract for $658,350.00, and additional construction cost for as-needed material testing, and SCE fees for a total of $675,952.98.

This project was completed under the approved project budget.

Funding and funding sources for this project are as follows:
$546,935.00 FY 2019/20, FY 2021/22 Community Development Block Grant $129,017.98 DIF Parks Fund 102
There is no fiscal impact for filing the Notice of Completion.

ATTACHMENTS:

Notice of Completion Abboud Diamond Construction, Inc.. Project #4015 - Guy J Tedesco Restroom Replacement Project
Pictures - Tedesco Park Restroom
Item Number: 8.

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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City Clerk
City of Desert Hot Springs
11999 Pierson Boulevard
Desert Hot Springs, CA 92240
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
Notice is hereby given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is The City of Desert Hot Springs.

3. The full address of the owner is 11999 Pierson Boulevard Desert Hot Springs, CA, 92240.

4. The nature of the interest or estate of the owner is in fee and easements.

5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common, are: None.

6. A work of improvement on the property hereinafter described was completed on 1/31/2024 The work done was: Tedesco Park Restroom Replacement, City Project No. 4015

7. The name of the contractor for such work of improvement was Abboud Diamond Construction, Inc.

Date of Contract: 2/7/2023

8. The property on which said work of improvements were completed is in the City of Desert Hot Springs, County of Riverside, State of California, and is described as follows: Within the rights of ways of City Streets. ______________________________________________ Dated:_____________________ Jerryl Soriano CMC, City Clerk, City of Desert Hot Springs I, the undersigned, am the City Manager of City of Desert Hot Springs, hereby certify that of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof; the same is true to the best of my knowledge. I declare under penalty of perjury that the foregoing is true and correct. ________________________________________________ Dated: ____________________ Frank J. Luckino, MPA, ICMA-CM, City Manager
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Tedesco Park Restroom
City Project No. 4015
Pictures
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SR-24-028
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: February 6, 2024
Department: Public Works
Prepared by: Nicholas Haecker, Public Works Director
Subject: Notice of Completion: Pierson Bridge Repairs (City Project No. 2005) RECOMMENDATION:

Approve the work, accept the project, and direct the City Manager to file the Notice of Completion for the Pierson Bridge Repair, City Project No. 2005.

BACKGROUND:

On August 20, 2023, Tropical Storm Hilary hit the Coachella Valley and the City of Desert Hot Springs suffered major impacts. Extensive rain in the Mission Creek Watershed created substantial amounts of flood water, mud, and debris running down the Mission Creek. It was calculated that Mission Creek received rainfall equivalent to a 1,000-year storm event. The floods through Mission Creek began in the mountains to the north and flowed south through Desert Hot Springs, violently damaging everything in its pathway.

The Pierson Blvd Bridge was heavily impacted with storm water, mud, and debris along both of its piers. There was severe damage to a 6 feet horizontal and 10 feet vertical portion of one of the two piers. The bridge remained open in both directions with traffic shifted south to reduce stress on the pier.

In an effort to expedite the repairs of the bridge, Staff worked with multiple consultant engineers and Riverside County Flood Control District Engineers to establish proper repair work. A structural design for the repair to the damaged pier was completed and emergency repair work began in September 2023.

On November 7, 2023, City Council approved Staff’s recommendation to authorize the City Manager to execute an agreement for construction of emergency road repairs between the City and Powel Constructors, Inc. in the amount not to exceed $517,207.00 and a total budget of $719,704.70 for the Pierson Bridge Repair, City Project No. 2005.

DISCUSSION:

On January 11, 2024, Powell Constructors, Inc. completed construction of the Pierson Bridge Repair, City Project No. 2005. The work has been inspected and approved by the inspector and the City’s Engineering Division. The next step is for the City to record a Notice of Completion for the project.

Item Number: 9.

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SR-24-028
FISCAL IMPACT:

This project includes Powell Constructors, Inc. construction contract for $517,207.00, and additional construction costs for as-needed material testing, inspection services, environmental, traffic control, and design for a total of $ 678,431.38. Funding is temporarily funded through SB1 Fund 142 and will receive reimbursement from the Federal Highway Administration (FHWA).

Funding and funding source for this project is as follows:
$678,431.38 SB1 Fund 142
There is no fiscal impact for filing the Notice of Completion.

ATTACHMENTS:
1) Notice of Completion Powell Constructors, Inc. Pierson Bridge Repair, City Project No. 2005 2) Pictures Pierson Bridge Repair, City Project No. 2005 Item Number: 9.

Page 66 of 73 ends

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City Clerk
City of Desert Hot Springs
11999 Pierson Boulevard
Desert Hot Springs, CA 92240
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
Notice is hereby given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is The City of Desert Hot Springs.

3. The full address of the owner is 11999 Pierson Boulevard Desert Hot Springs, CA, 92240.

4. The nature of the interest or estate of the owner is in fee and easements.

5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common, are: None.

6. A work of improvement on the property hereinafter described was completed on 1/11/2024 The work done was: – Project # 2005 – Pierson Bridge Repair.

7. The name of the contractor for such work of improvement was Powell Constructors, Inc.

Date of Contract: 9/1/2023

8. The property on which said work of improvements were completed is in the City of Desert Hot Springs, County of Riverside, State of California, and is described as follows: Within the rights of ways of City Streets. ______________________________________________ Dated:_____________________ Jerryl Soriano CMC, City Clerk, City of Desert Hot Springs I, the undersigned, am the City Manager of City of Desert Hot Springs, hereby certify that of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof; the same is true to the best of my knowledge. I declare under penalty of perjury that the foregoing is true and correct. ________________________________________________ Dated: ____________________ Frank J. Luckino, MPA, ICMA-CM, City Manager
Item Number: 9.

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Pierson Bridge Repair
City Project #2005
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