Agenda — Desert Hot Springs City Council, July 2, 2024 (part 2 of 5)

i. Engineer’s Statement
Table 4-16. Zone 17 – The Arbors Proposed Assessment ____________________________ 25 Appendices
Appendix A. Assessment Roll __________________________________________________ A-1 Appendix B. Assessment Diagrams _____________________________________________ B-1 Item Number: 6.

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i. Engineer’s Statement
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 i
AGENCY: CITY OF DESERT HOT SPRINGS
PROJECT: DRAINAGE ASSESSMENT DISTRICT NO. 1
TO: CITY COUNCIL

CITY OF DESERT HOT SPRINGS

STATE OF CALIFORNIA
Report Pursuant to "Benefit Assessment Act of 1982"
Pursuant to direction from the City Council (the “City Council”) of the City of Desert Hot Springs (the “City”), State of California, submitted herewith is the Engineer’s Report (the “Report”) for Drainage Assessment District No. 1 (“DAD No. 1”), consisting of the following parts, pursuant to the provisions of Division 2, Part 1, Chapter

6.4 of the California Government Code of the State of California, being the "Benefit Assessment Act of 1982," and which is in accordance with Resolution No. 2024-010 adopted by the City of Desert Hot Springs City Council, Riverside County, California ordering the preparation of the Report for DAD No 1. This Report is applicable for the ensuing 12-month period, being the Fiscal Year commencing July 1, 2024, to June 30, 2025.

SECTION 1 PLANS AND SPECIFICATION of the improvements to be maintained and-or improved for the Fiscal Year. The plans and specifications show and describe the existing improvements and are sufficient in showing and describing the general nature, location and extent of the improvements.

SECTION 2 A COST ESTIMATE of the improvements to be maintained and-or improved for the mentioned Fiscal Year.

SECTION 3 The METHOD OF APPORTIONMENT showing the proportionate amount of the assessment to be charged in proportion to the benefits to be received by each lot or parcel within the exterior boundaries as shown in Appendix B.

SECTION 4 The PROPOSED ASSESSMENTS for each Zone within DAD No. 1.

Item Number: 6.

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Item Number: 6.

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i. Engineer’s Statement
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 iii
WHEREAS, on April 16, 2024, the City Council, under the Act, adopted its Resolution Initiating Proceedings for the Levy and Collection of Assessments and the Preparation of an Engineer’s Report for DAD No. 1; Whereas, the Resolution of Intention directed Webb Municipal Finance, LLC, to prepare and file a report presenting plans and specifications describing the general nature, location, and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations, and servicing of the improvements for DAD No. 1 for the referenced Fiscal Year, a diagram for DAD No. 1 showing the area and properties to be assessed, and an assessment of the estimated costs of the maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and-or parcels within DAD No. 1 in proportion to the special benefit received;
NOW THEREFORE, the following assessment is made to cover the portion of the estimated costs of maintenance, operations, and servicing of said improvements to be paid by the assessable real property within DAD No. 1 in proportion to the special benefit received:

Table i-1
Summary of Assessments
Zone
Maintenance
Costs
Maximum
Assessment
Parcels
to be Assessed
Zone 1 Hacienda Heights $35,173.99 $23,324.70 203
Zone 2 Desert View II & III $37,243.83 $24,168.78 81
Zone 3 Foxdale $31,773.49 $28,430.33 59
Zone 4 Vista Hacienda $18,651.96 $17,627.13 153
Zone 5 Eagle Point $7,702.50 $10,014.20 92
Zone 6 Sunset Springs $23,803.30 $23,347.80 63
Zone 7 El Dorado $14,444.16 $10,314.80 40
Zone 8 Desert View 4 $9,036.73 $8,175.63 31
Zone 9 Hidden Springs $2,914.36 $55,398.72 96
Zone 10 Rancho Buena Vista $6,714.98 $12,184.59 33
Zone 11 Summit $0.00 $39,245.64 0
Zone 12 Skyborne $57,069.41 $37,772.78 394
Zone 13 Vista Santa Fe $1,166.53 $11,033.60 32
Zone 14 Rolling Hills Est. $26,596.34 $16,226.16 41
Zone 16 Hunter's Run $0.00 $13,179.34 0
Zone 17 The Arbors $7,770.73 $9,990.09 33
Item Number: 6.

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i. Engineer’s Statement
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 i
Description of Improvements and Services
Improvements provided within DAD No. 1, Zones 1 through 14, 16 and 17 may include, but are not limited to, flood control facilities, graffiti removal, fencing, masonry walls, and associated appurtenant facilities. Services provided include all necessary services, operations, administration, and maintenance required to keep the above-mentioned improvements in a healthy, vigorous, and satisfactory working condition.

Reference is made to the plans and specifications for the improvements, which are on file with the City.

Description of Capital Improvement Projects
The following are capital improvement projects the City has planned for the District for Fiscal Year 2024-2025:
• Zone 1 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, open channel clean-up, repairs, upgrades.
• Zone 2 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.
• Zone 3 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.
• Zone 4 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.
• Zone 5 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.
• Zone 6 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.
• Zone 7 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.
• Zone 8 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.
• Zone 9 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.
• Zone 10 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.
• Zone 12 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.
• Zone 13 – no planned projects, HOA maintained.
• Zone 14 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.
• Zone 17 – Catch basin clean-up/repairs/upgrades, retention basin clean-up/repairs/upgrades, storm drain clean-up/repairs/upgrades, as needed.

Description of the Boundaries of DAD No. 1
Assessment Diagrams for DAD No. 1, Zones 1 through 14, 16 and 17 have been submitted to the City in the format required under the provision of the Act. The lines and dimensions shown on maps of the County Assessor of the County of Riverside for the current Fiscal Year are incorporated by reference herein and made part of this Report as Appendix B. Below is a brief description of the boundaries of each zone within DAD No. 1.

ZONE 1, commonly referred to as Hacienda Heights, is located north of the City’s boundary, south of Hacienda Avenue, west of Long Canyon Road, and east of McCarger Road within the incorporated territory of the City. The zone is built out and consists of 203 Equivalent Dwelling Units (EDUs).

Item Number: 6.

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i. Engineer’s Statement
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 ii
ZONE 2, commonly referred to as Desert View II & III, is located north of the City’s boundary, south of 14th Street, west of Mountain View Road, and east of Yerxa Road within the incorporated territory of the City. The zone is built out and consists of 81 EDUs.

ZONE 3, commonly referred to as Foxdale, is located north of Pierson Boulevard, south of Pasatiempo Drive, west of Foxdale Drive, and east of Ambrosio Drive within the incorporated territory of the City. The zone is built out and consists of 59 EDUs.

ZONE 4, commonly referred to as Vista Hacienda, is located south of Hacienda Drive, west of McCarger Road, generally north of Dillon Road, and generally east of Mountain View Road, within the incorporated territory of the City. The zone is built out and consists of 153 EDUs.

ZONE 5, commonly referred to as Eagle Point, is located north of Pierson Boulevard, generally south of 8th Street, generally east of Little Morongo Road, and west of Golden Eagle Road, within the incorporated territory of the City. The zone, when subdivided, is proposed to consist of 160 EDUs.

ZONE 6, commonly referred to as Sunset Springs, is located north of Mission Lakes Boulevard, east of Little Morongo Road, and west of West Drive, within the incorporated territory of the City. The zone is built out and consists of 63 EDUs.

ZONE 7, commonly referred to as El Dorado Country, is located at the north end of Little Morongo Road. Tract No. 31481 is located along the north side of Little Morongo Storm Channel, while Tract No. 32034 is located along the south side of the Little Morongo Channel, within the incorporated territory of the City. The zone is built out and consists of 40 single family residential (“SFR”) parcels. Tract No. 31481 contains 35 SFR parcels, and Tract No. contains 5 SFR parcels.

ZONE 8, commonly referred to as Desert View 4, is located at the northwest corner of Hacienda Avenue, and Cholla Drive, within the incorporated territory of the City. The zone is built out and consists of 31 EDUs.

ZONE 9, commonly referred to as Hidden Springs, is located generally north of 8th Street, south of Mission Lakes Boulevard, east of Little Morongo Road, and west of Cholla Drive, within the incorporated territory of the City.

The zone, when subdivided, is proposed to consist of 96 EDUs. Tract No. 32735 will consist of 65 assessable parcels, while Tract No. 32343 will consist of 31 assessable parcels.

ZONE 10, commonly referred to as Rancho Buena Vista, is located north of Desert View Avenue, south of Buena Vista Avenue, east of Via Loreto, and west of Cholla Drive, within the incorporated territory of the City. The zone is built out and consists of 33 EDUs.

ZONE 11, commonly referred to as The Summit, is located north of Mission Lakes Boulevard, south of Augusta Avenue, east of Little Morongo Road, and west of Sonora Drive, within the incorporated territory of the City. The zone, when subdivided, is proposed to consist of 266 EDUs.

ZONE 12, commonly referred to as Skyborne, is located north of Pierson Boulevard, south of Mission Lakes Boulevard, east of Worsley Road, and west of Karen Avenue, within the incorporated territory of the City. The zone, when subdivided, is proposed to consist of 2,080 EDUs.

Item Number: 6.

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i. Engineer’s Statement
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 iii
ZONE 13, commonly referred to as Vista Santa Fe, located north of Mission Lakes Boulevard, south of Augusta Avenue, east of Little Morongo Road, and west of Sonora Drive, within the incorporated territory of the City. The zone, when subdivided, is proposed to consist of 96 EDUs.

ZONE 14, commonly referred to as Rolling Hills Estates, is located north of Mission Lakes Boulevard, south of Augusta Avenue, east of Little Morongo Road, and west of Sonora Drive, within the incorporated territory of the City. The zone is built out and consists of 47 EDUs.

ZONE 16, commonly referred to as Hunter’s Run, is located north of 15th Avenue, generally south of 2 Bunch Palms Trail, east of West Drive, and west of Palm Drive, within the incorporated territory of the City. The zone, when subdivided, is proposed to consist of 62 EDUs.

ZONE 17, commonly referred to as The Arbors, is located north of Flora Avenue, south of Desert View Avenue, east of Via Loreto, and west of Cholla Drive, within the incorporated territory of the City. The zone is built out and consists of 33 EDUs.

Item Number: 6.

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2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 4
The cost of servicing, maintaining, repairing, and replacing the actual improvements as described in the Plans and Specifications are summarized below. Zones 11 and 16 will not be levied in Fiscal Year 2024-2025; therefore, no cost estimate tables have been included for these zones.

Table 2-1
Zone 1 – Hacienda Heights Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Block Walls/Fencing $3,999.05 $3,570.58
Channel Fencing $1,040.58 $929.09
Flood Control Channel $22,960.38 $20,500.34
Total Direct Costs $28,000.00 $25,000.00
Indirect Costs
Administrative Consultant $1,665.85 $1,857.53
City Personnel/Overhead $8,138.00 $8,138.00
County Administration Fees $178.46 $178.46
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $9,982.31 $10,173.99
Total Direct & Indirect Costs $37,982.31 $35,173.99
Adjustments
Operating Reserve Collection/Contribution ($15,116.39) ($11,849.29) Capital Replacement Collection/Contribution $0.00 $0.00 Total Adjustments ($15,116.39) ($11,849.29)
Total Assessment $22,865.92 $23,324.70
Reserve Fund Balances
Beginning Operating Reserve $29,116.39 $24,349.29
Reserve Collection/Contribution ($15,116.39) ($11,849.29) Est. Ending Operating Reserve (1) $14,000.00 $12,500.00 Beginning Capital Replacement Reserve $128,802.99 $124,473.55 Reserve Contribution $0.00 $0.00
Est. Ending Capital Replacement Reserve (2) $128,802.99 $124,473.55 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs.

Item Number: 6.

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2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 5
Table 2-2
ZONE 2 – Desert View II and III Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Contract Maintenance $30,500.01 $16,009.64
Detention Basin Fencing $1,321.60 $511.72
Drop and Junction Structures $11,517.49 $4,459.59
Northern 12’ x 3’ Channel $3,625.85 $1,403.93
RCP Piping $6,440.44 $2,493.75
Rip Rap Channel $3,412.61 $1,321.37
Total Direct Costs $56,818.00 $26,200.00
Indirect Costs
Administrative Consultant $3,022.64 $1,966.83
City Personnel/Overhead $8,951.00 $8,951.00
County Administration Fees $126.00 $126.00
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $12,099.64 $11,043.83
Total Direct & Indirect Costs $68,917.64 $37,243.83
Adjustments
Operating Reserve Collection/Contribution ($45,223.52) ($13,075.05) Capital Replacement Collection/Contribution $0.00 $0.00 Total Adjustments ($45,223.52) ($13,075.05)
Total Assessment $23,694.12 $24,168.78
Reserve Fund Balances
Beginning Operating Reserve $70,243.23 $26,175.05
Reserve Collection/Contribution ($45,223.52) ($13,075.05) Est. Ending Operating Reserve (1) $25,019.71 $13,100.00 Beginning Capital Replacement Reserve $0.00 $11,210.51
Reserve Contribution $0.00 $0.00
Est. Ending Capital Replacement Reserve (2) $0.00 $11,210.51 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs.

Item Number: 6.

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2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 6
Table 2-3
Zone 3 – Foxdale Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Contract Maintenance $5,950.58 $12,472.24
Masonry Walls $347.49 $62.62
Retention Basin $17,829.67 $6,771.22
Retention Basin Fencing $521.25 $93.92
Total Direct Costs $24,649.00 $19,400.00
Indirect Costs
Administrative Consultant $1,621.27 $1,677.95
City Personnel/Overhead $10,579.00 $10,579.00
County Administration Fees $116.54 $116.54
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $12,316.81 $12,373.49
Total Direct & Indirect Costs $36,965.81 $31,773.49
Adjustments
Operating Reserve Collection/Contribution ($9,093.03) ($3,343.75) Capital Replacement Collection/Contribution $0.00 $0.00 Total Adjustments ($9,093.03) ($3,343.75)
Total Assessment $27,872.78 $28,429.74
Reserve Fund Balances
Beginning Operating Reserve $6,659.07 $1,278.40
Reserve Collection/Contribution ($9,093.03) ($3,343.75) Est. Ending Operating Reserve (1) ($2,433.96) ($2,065.35) Beginning Capital Replacement Reserve $0.00 $0.00
Reserve Contribution $0.00 $0.00
Est. Ending Capital Replacement Reserve (2) $0.00 $0.00 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs.

Item Number: 6.

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2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 7
Table 2-4
Zone 4 – Vista Hacienda Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Contract Maintenance $21,451.49 $10,807.85
Masonry Walls $744.64 $155.44
Retention Basin Fencing $175.86 $36.71
Total Direct Costs $22,372.00 $11,000.00
Indirect Costs
Administrative Consultant $1,332.03 $985.00
City Personnel/Overhead $6,510.00 $6,510.00
County Administration Fees $156.96 $156.96
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $7,998.99 $7,651.96
Total Direct & Indirect Costs $30,370.99 $18,651.96
Adjustments
Operating Reserve Collection/Contribution ($13,091.17) ($1,026.36) Capital Replacement Collection/Contribution $0.00 $0.00 Total Adjustments ($13,091.17) ($1,026.36)
Total Assessment $17,279.82 $17,625.60
Reserve Fund Balances
Beginning Operating Reserve ($18,301.81) ($26,769.85)
Reserve Collection/Contribution ($13,091.17) ($1,026.36) Est. Ending Operating Reserve (1) ($31,392.98) ($27,796.21) Beginning Capital Replacement Reserve $0.00 $0.00
Reserve Contribution $0.00 $0.00
Est. Ending Capital Replacement Reserve (2) $0.00 $0.00 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs.

Item Number: 6.

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2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 8
Table 2-5
Zone 5 – Eagle Point Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Block Walls/Fencing $200.93 $14.89
Contract Maintenance $12,954.21 $3,869.93
Retention Basin Fencing $339.86 $25.18
Total Direct Costs $13,495.00 $3,910.00
Indirect Costs
Administrative Consultant $774.33 $406.77
City Personnel/Overhead $3,255.00 $3,255.00
County Administration Fees $130.73 $130.73
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $4,160.06 $3,792.50
Total Direct & Indirect Costs $17,655.06 $7,702.50
Adjustments
Operating Reserve Collection/Contribution ($7,836.82) $2,310.78 Capital Replacement Collection/Contribution $0.00 $0.00 Total Adjustments ($7,836.82) $2,310.78
Total Assessment $9,818.24 $10,013.28
Reserve Fund Balances
Beginning Operating Reserve $1,175.47 ($4,887.00)
Reserve Collection/Contribution ($7,836.82) $2,310.78
Est. Ending Operating Reserve (1) ($6,661.35) ($2,576.22) Beginning Capital Replacement Reserve $0.00 $0.00
Reserve Contribution $0.00 $0.00
Est. Ending Capital Replacement Reserve (2) $0.00 $0.00 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs.

Item Number: 6.

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2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 9
Table 2-6
Zone 6 – Sunset Springs Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Block Walls/Fencing $50.46 $12.07
Contract Maintenance $11,842.80 $14,165.59
Drainage Pipes $137.16 $32.80
Retention Basin Fencing $275.02 $65.77
Rip Rap Area $57.56 $13.77
Total Direct Costs $12,363.00 $14,290.00
Indirect Costs
Administrative Consultant $945.82 $1,257.04
City Personnel/Overhead $8,138.00 $8,138.00
County Administration Fees $118.26 $118.26
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $9,202.08 $9,513.30
Total Direct & Indirect Costs $21,565.08 $23,803.30
Adjustments
Operating Reserve Collection/Contribution $0.00 ($455.50) Capital Replacement Collection/Contribution $1,325.34 $0.00 Total Adjustments $1,325.34 ($455.50)
Total Assessment $22,890.42 $23,347.80
Reserve Fund Balances
Beginning Operating Reserve $6,181.50 $7,600.50
Reserve Collection/Contribution $0.00 ($455.50)
Est. Ending Operating Reserve (1) $6,181.50 $7,145.00
Beginning Capital Replacement Reserve $17,981.71 $25,339.74 Reserve Contribution $1,325.34 $0.00
Est. Ending Capital Replacement Reserve (2) $19,307.05 $25,339.74 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs. Please refer to Appendix C for a list of capital improvement projects by Zone.

Item Number: 6.

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2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 10
Table 2-7
Zone 7 – El Dorado Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Contract Maintenance $14,289.00 $9,504.00
Drainage Pipes $0.00 $0.00
Vinyl Picket Fencing $0.00 $0.00
Total Direct Costs $14,289.00 $9,504.00
Indirect Costs
Administrative Consultant $847.06 $762.79
City Personnel/Overhead $4,069.00 $4,069.00
County Administration Fees $108.37 $108.37
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $5,024.43 $4,940.16
Total Direct & Indirect Costs $19,313.43 $14,444.16
Adjustments
Operating Reserve Collection/Contribution ($9,200.63) ($4,129.76) Capital Replacement Collection/Contribution $0.00 $0.00 Total Adjustments ($9,200.63) ($4,129.76)
Total Assessment $10,112.80 $10,314.40
Reserve Fund Balances
Beginning Operating Reserve ($14,382.29) ($19,982.23)
Reserve Collection/Contribution ($9,200.63) ($4,129.76) Est. Ending Operating Reserve (1) ($23,582.92) ($24,111.99) Beginning Capital Replacement Reserve $0.00 $0.00
Reserve Contribution $0.00 $0.00
Est. Ending Capital Replacement Reserve (2) $0.00 $0.00 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs.

Item Number: 6.

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2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 11
Table 2-8
Zone 8 – Desert View 4 Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Block Walls/Fencing $85.65 $39.38
Contract Maintenance $2,050.85 $5,142.92
Drainage Channel $38.49 $17.70
Retention Basin $10,000.00 $0.00
Total Direct Costs $12,175.00 $5,200.00
Indirect Costs
Administrative Consultant $712.58 $477.23
City Personnel/Overhead $3,255.00 $3,255.00
County Administration Fees $104.50 $104.50
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $4,072.08 $3,836.73
Total Direct & Indirect Costs $16,247.08 $9,036.73
Adjustments
Operating Reserve Collection/Contribution ($8,231.72) ($861.41) Capital Replacement Collection/Contribution $0.00 $0.00 Total Adjustments ($8,231.72) ($861.41)
Total Assessment $8,015.36 $8,175.32
Reserve Fund Balances
Beginning Operating Reserve $14,319.22 $3,461.41
Reserve Collection/Contribution ($8,231.72) ($861.41)
Est. Ending Operating Reserve (1) $6,087.50 $2,600.00
Beginning Capital Replacement Reserve $18,062.17 $27,696.80 Reserve Contribution $0.00 $0.00
Est. Ending Capital Replacement Reserve (2) $18,062.17 $27,696.80 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs.

Item Number: 6.

Page 186 of 711 ends

2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 12
Table 2-9
Zone 9 – Hidden Springs Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Block Walls/Fencing $0.00 $0.00
Drainage Inlets $0.00 $0.00
Retention Basin $0.00 $1,000.00
Contract Maintenance $0.00 $0.00
Total Direct Costs $0.00 $1,000.00
Indirect Costs
Administrative Consultant $80.75 $153.91
City Personnel/Overhead $1,628.00 $1,628.00
County Administration Fees $132.45 $132.45
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $1,841.20 $1,914.36
Total Direct & Indirect Costs $1,841.20 $2,914.36
Adjustments
Operating Reserve Collection/Contribution $0.00 $0.00
Capital Replacement Collection/Contribution $3,588.56 $2,624.84 Total Adjustments $3,588.56 $2,624.84
Total Assessment $5,429.76 $5,539.20
Reserve Fund Balances
Beginning Operating Reserve $0.00 $500.00
Reserve Collection/Contribution $0.00 $0.00
Est. Ending Operating Reserve (1) $0.00 $500.00
Beginning Capital Replacement Reserve $125,499.74 $128,421.95 Reserve Contribution $3,588.56 $2,624.84
Est. Ending Capital Replacement Reserve (2) $129,088.30 $131,046.79 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs. Please refer to Appendix C for a list of capital improvement projects by Zone.

Item Number: 6.

Page 187 of 711 ends

2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 13
Table 2-10
Zone 10 – Rancho Buena Vista Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Block Walls/Fencing $0.00 $84.61
Drainage Inlets $0.00 $71.79
HDPE Pipes $0.00 $123.72
Retention Basin $0.00 $2,719.89
Total Direct Costs $0.00 $3,000.00
Indirect Costs
Administrative Consultant $154.14 $354.62
City Personnel/Overhead $3,255.00 $3,255.00
County Administration Fees $105.36 $105.36
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $3,514.50 $3,714.98
Total Direct & Indirect Costs $3,514.50 $6,714.98
Adjustments
Operating Reserve Collection/Contribution $0.00 $0.00
Capital Replacement Collection/Contribution $5,444.34 $2,423.38 Total Adjustments $5,444.34 $2,423.38
Total Assessment $8,958.84 $9,138.36
Reserve Fund Balances
Beginning Operating Reserve $0.00 $1,500.00
Reserve Collection/Contribution $0.00 $0.00
Est. Ending Operating Reserve (1) $0.00 $1,500.00
Beginning Capital Replacement Reserve $80,041.10 $81,568.70 Reserve Contribution $5,444.34 $2,423.38
Est. Ending Capital Replacement Reserve (2) $85,485.44 $83,992.08 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs. Please refer to Appendix C for a list of capital improvement projects by Zone.

Item Number: 6.

Page 188 of 711 ends

2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 14
Table 2-11
Zone 12– Skyborne Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Block Inlets $34.76 $0.00
Drainage Channel $12,364.19 $17,148.00
Mitigation Site Monitoring & Maintenance $752.05 $0.00
Utilities $23,000.00 $22,000.00
Total Direct Costs $36,151.00 $39,148.00
Indirect Costs
Administrative Consultant $2,342.08 $3,013.82
City Personnel/Overhead $14,647.00 $14,647.00
County Administration Fees $260.59 $260.59
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $17,249.67 $17,921.41
Total Direct & Indirect Costs $53,400.67 $57,069.41
Adjustments
Operating Reserve Collection/Contribution ($16,372.55) ($19,300.57) Capital Replacement Collection/Contribution $0.00 $0.00 Total Adjustments ($16,372.55) ($19,300.57)
Total Assessment $37,028.12 $37,768.84
Reserve Fund Balances
Beginning Operating Reserve ($24,591.49) ($20,576.64)
Reserve Collection/Contribution ($16,372.55) ($19,300.57) Est. Ending Operating Reserve (1) ($40,964.04) ($39,877.21) Beginning Capital Replacement Reserve $0.00 $0.00
Reserve Contribution $0.00 $0.00
Est. Ending Capital Replacement Reserve (2) $0.00 $0.00 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs.

Item Number: 6.

Page 189 of 711 ends

2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 15
Table 2-12
Zone 13 – Vista Santa Fe Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Block Walls/Fencing $0.00 $35.68
Drainage Inlets $0.00 $5.73
Retention Basin $0.00 $942.34
Rip Rap Area $0.00 $16.24
Total Direct Costs $0.00 $1,000.00
Indirect Costs
Administrative Consultant $4.81 $61.60
City Personnel/Overhead $0.00 $0.00
County Administration Fees $104.93 $104.93
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $109.74 $166.53
Total Direct & Indirect Costs $109.74 $1,166.53
Adjustments
Operating Reserve Collection/Contribution $0.00 ($63.17) Capital Replacement Collection/Contribution $971.86 $0.00 Total Adjustments $971.86 ($63.17)
Total Assessment $1,081.60 $1,103.36
Reserve Fund Balances
Beginning Operating Reserve $0.00 $563.17
Reserve Collection/Contribution $0.00 ($63.17)
Est. Ending Operating Reserve (1) $0.00 $500.00
Beginning Capital Replacement Reserve $93,183.91 $91,636.26 Reserve Contribution $971.86 $0.00
Est. Ending Capital Replacement Reserve (2) $94,155.77 $91,636.26 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs. Please refer to Appendix C for a list of capital improvement projects by Zone.

Item Number: 6.

Page 190 of 711 ends

2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 16
Table 2-13
Zone 14 – Rolling Hills Estates Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Block Walls/Fencing $233.96 $185.64
Contract Maintenance $8,230.25 $19,123.78
Drainage Inlets $97.78 $77.59
Total Direct Costs $8,562.00 $19,387.00
Indirect Costs
Administrative Consultant $659.01 $1,404.54
City Personnel/Overhead $5,696.00 $5,696.00
County Administration Fees $108.80 $108.80
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $6,463.81 $7,209.34
Total Direct & Indirect Costs $15,025.81 $26,596.34
Adjustments
Operating Reserve Collection/Contribution $0.00 ($10,370.18) Capital Replacement Collection/Contribution $882.19 $0.00 Total Adjustments $882.19 ($10,370.18)
Total Assessment $15,908.00 $16,226.16
Reserve Fund Balances
Beginning Operating Reserve $4,281.00 $20,063.68
Reserve Collection/Contribution $0.00 ($10,370.18)
Est. Ending Operating Reserve (1) $4,281.00 $9,693.50
Beginning Capital Replacement Reserve $38,899.38 $25,996.71 Reserve Contribution $882.19 $0.00
Est. Ending Capital Replacement Reserve (2) $39,781.57 $25,996.71 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs.

Item Number: 6.

Page 191 of 711 ends

2. Cost Estimate
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 17
Table 2-14
Zone 17 – The Arbors Budget
Estimated through June 30
Direct Costs FY 2023-24 FY 2024-25
Drainage Inlets, Catch Basin, Storm Pipes $0.00 $0.00
Drainage Pipes $4,000.00 $4,000.00
Retention Basin $0.00 $0.00
Total Direct Costs $4,000.00 $4,000.00
Indirect Costs
Administrative Consultant $337.62 $410.37
City Personnel/Overhead $3,255.00 $3,255.00
County Administration Fees $105.36 $105.36
Maintenance Repairs & Contingency $0.00 $0.00
Rounding $0.00 $0.00
Total Indirect Costs $3,697.98 $3,770.73
Total Direct & Indirect Costs $7,697.98 $7,770.73
Adjustments
Operating Reserve Collection/Contribution $2,000.00 $0.00 Capital Replacement Collection/Contribution $95.76 $2,219.03 Total Adjustments $2,095.76 $2,219.03
Total Assessment $9,793.74 $9,989.76
Reserve Fund Balances
Beginning Operating Reserve $0.00 $2,000.00
Reserve Collection/Contribution $2,000.00 $0.00
Est. Ending Operating Reserve (1) $2,000.00 $2,000.00
Beginning Capital Replacement Reserve $579.60 $813.70
Reserve Contribution $95.76 $2,219.03
Est. Ending Capital Replacement Reserve (2) $675.36 $3,032.73 (1) The Operating Reserve Fund may equal up to 50% of the estimated annual cost of providing services funded by the District and shall be used to pay the cost of services until the District receives funds from the assessment levy. (2) The Capital Replacement Reserve fund will be used for capital improvement projects including the cost to replace and/or renovate larger, more expensive improvements within the benefit zone. These improvements have finite life expectancies and will need to be replaced at some point in the future. On an annual basis, any non-expended assessment monies, in excess of the Operating Reserve Contribution, will be transferred to the Capital Replacement Reserve fund until such time as there are sufficient monies to pay for these and/or other unforeseen improvement costs.

Item Number: 6.

Page 192 of 711 ends

3. Method of Apportionment
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 18
Proposition 218 Compliance
On November 5, 1996, California voters approved Proposition 218, entitled “Right to Vote on Taxes Act,” which added Article XIIID to the California Constitution. While its title refers only to taxes, Proposition 218 establishes new procedural requirements for the formation and administration of assessment districts. Proposition 218 also requires that with certain specified exceptions, which are described below, all existing assessment districts must be ratified by the property owners within the District using the new procedures.

Some of these exceptions include:

1. Any assessments imposed exclusively to finance the capital cost or maintenance and operation expenses for streets.

2. Any assessments levied pursuant to a petition signed by the persons owning all of the parcels subject to the assessment at the time the assessment was initially imposed.

However, even if assessments are initially exempt from Proposition 218, if the assessments are increased in the future, the City will need to comply with the provisions of Proposition 218 for that portion of the increased assessment formula (e.g., CPI increase).

Proposition 218 does not define the term “streets,” however, based on the opinions of the public agency officials, attorneys, assessment engineers, and Senate Bill 919, it has been determined that streets include all public improvements located within the street rights-of-way. This would include median and parkway landscaping, traffic signals, safety lighting, and street lighting.

Proposition 218 defines “assessment” as “any levy or charge upon real property by an agency for a special benefit conferred upon the real property”, California Constitution, Article XIII D, §2(b). A special assessment, sometimes called a “benefit assessment,” is a charge generally levied upon parcels of real property to pay for benefits the parcels receive from local improvements. Special assessments are levied according to statutory authority granted by the Legislature or, in some instances, local charters. Distinguishing among taxes, fees, and assessments can be difficult and often depends on the context in which the distinction is made. For example, taxes, assessments, and property-related fees all may be imposed on property. The key feature that distinguishes an assessment from a tax, fee, or charge is the existence of a special benefit to real property.

Without identifying a special benefit, there can be no assessment.

Distinguishing General and Special Benefit
Proposition 218 added a set of procedures and requirements, which a local government must follow to levy an assessment. In addition to notice, hearing, and assessment ballot proceedings, Proposition 218 provides that “only special benefits are assessable” and requires a local government to “separate the general benefits from the special benefits conferred on a parcel.”
By its nature, most public improvements financed through an assessment district contain an element of public benefit. The test is: does there exist, with relation to the improvement, a special benefit to the property assessed? The law requires that portion of the cost of the improvement, which benefits the public generally to be separated from that portion of the cost of the improvement, which specially benefits assessed properties.

Proposition 218 provides the following definition of “special benefit”:
“Special benefit” means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit”.

The actual assessment and the amount of the assessment for the Fiscal Year 2024-2025 apportioned to each parcel as shown on the latest equalized roll at the County Assessor’s office are listed in Appendix A of this Item Number: 6.

Page 193 of 711 ends

3. Method of Apportionment
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 19
Report. The description of each lot or parcel is part of the records of the County Assessor of the County of Riverside, and such records are, by reference, made part of this Report.

Method of Apportionment
Pursuant to the Benefit Assessment Act of 1982 and Article XIII D of the Constitution of the State of California, all parcels that have special benefit conferred upon them as a result of the maintenance and operation of improvements shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire cost of the maintenance and operation of the improvements. Only parcels that receive direct special benefit are assessed, and each parcel is assessed in proportion to the estimated benefit received.

To apportion the Estimated Costs of any Zone during any Fiscal Year, each of the subdivided Single-Family Lots within the Zone is deemed to receive equal special benefit from the Improvements. The Assessment for SingleFamily Lots within the Zone is calculated by dividing the total Zone Assessment by the total number of existing subdivided Single-Family Lots within the Zone to determine the Annual Assessment per Single-Family Lot.

Direct and Special Benefit
Particular direct and special benefit is provided by the improvements, which include protection and preservation of private property within the Zone from damage caused by flooding.

General Benefit
The flood control facilities provide no general public benefit; the properties within the Zone are a discrete neighborhood for which the improvements were installed and are being maintained for the sole benefit and enjoyment of those properties.

Benefit by Zone
Each of the developed parcels within the zones listed below has been deemed to receive proportional special benefit from the maintenance and operation of the improvements within that zone. The percentage change in the allowable Fiscal Year 2024-25 assessment from the allowable Fiscal Year 2023-24 assessment is as follows:

Item Number: 6.

Page 194 of 711 ends

3. Method of Apportionment
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 20
Table 3-1
Allowable Assessments
Estimated Cost
FY 2024-25*
Assessable
Parcels
Allowable
Assessment
per Parcel
FY 2023-24
Allowable
Assessment
per Parcel
FY 2024-25
Allowable
Assessment
Rate
Change (%)
Actual
Assessment
per Parcel
FY 2024-25
Zone 1 $35,173.99 203 $112.65 $114.90 2.0% $114.90
Zone 2 $37,243.83 81 $292.54 $298.38 2.0% $298.38
Zone 3 $31,773.49 59 $472.43 $481.87 2.0% $481.86
Zone 4 $18,651.96 153 $112.96 $115.21 2.0% $115.20
Zone 5 $7,702.50 92 $106.72 $108.85 2.0% $108.84
Zone 6 $23,803.30 63 $363.34 $370.60 2.0% $370.60
Zone 7 $14,444.16 40 $252.82 $257.87 2.0% $257.86
Zone 8 $9,036.73 31 $258.56 $263.73 2.0% $263.72
Zone 9 $2,914.36 96 $565.76 $577.07 2.0% $57.70
Zone 10 $6,714.98 33 $361.99 $369.23 2.0% $276.92
Zone 11 $0.00 0 $144.66 $147.54 2.0% $0.00
Zone 12 $57,069.41 394 $93.99 $95.87 2.0% $95.86
Zone 13 $1,166.53 32 $338.05 $344.80 2.0% $34.48
Zone 14 $26,596.34 41 $388.01 $395.76 2.0% $395.76
Zone 16 $0.00 0 $208.41 $212.57 2.0% $0.00
Zone 17 $7,770.73 33 $296.80 $302.73 2.0% $302.72
*Does not include operating reserve and capital replacement collections or contributions.

Item Number: 6.

Page 195 of 711 ends

4. Proposed Assessment
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 21
As of February 1, of each fiscal year after the base year (2004-05), the maximum amount of each assessment (the “Maximum Assessment”) shall be increased by 2%. It is specifically provided that the Maximum Assessment shall be increased each fiscal year, computed on the previous fiscal year’s Maximum Assessment. The Annual Assessment may be less than, but shall not exceed, the Maximum Assessment unless appropriate proceedings are conducted by the District to authorize any increase beyond the Maximum Assessment. For assessment information prior to Fiscal Year 2020-21, please see prior years Engineer’s Reports.

Table 4-1
Zone 1- Hacienda Heights
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $106.15 $106.14 100%
2021-22 2% $108.27 $108.26 100%
2022-23 2% $110.44 $110.44 100%
2023-24 2% $112.64 $112.64 100%
2024-25 2% $114.90 $114.90 100%
Table 4-2
Zone 2 – Desert View II & III
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $275.66 $275.66 100%
2021-22 2% $281.17 $281.16 100%
2022-23 2% $286.80 $286.80 100%
2023-24 2% $292.53 $292.52 100%
2024-25 2% $298.38 $298.38 100%
Table 4-3
Zone 3 – Foxdale
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $445.17 $445.16 100%
2021-22 2% $454.08 $454.08 100%
2022-23 2% $463.16 $463.16 100%
2023-24 2% $472.42 $472.42 100%
2024-25 2% $481.87 $481.86 100%
Item Number: 6.

Page 196 of 711 ends

4. Proposed Assessment
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 22
Table 4-4
Zone 4 – Vista Hacienda
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $106.44 $106.44 100%
2021-22 2% $108.57 $108.56 100%
2022-23 2% $110.74 $110.74 100%
2023-24 2% $112.95 $112.94 100%
2024-25 2% $115.21 $115.20 100%
Table 4-5
Zone 5 – Eagle Point
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $100.56 $100.56 100%
2021-22 2% $102.57 $102.56 100%
2022-23 2% $104.62 $104.62 100%
2023-24 2% $106.72 $106.72 100%
2024-25 2% $108.85 $108.84 100%
Table 4-6
Zone 6 – Sunset Springs
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $342.38 $342.38 100%
2021-22 2% $349.23 $349.22 100%
2022-23 2% $356.21 $356.20 100%
2023-24 2% $363.34 $363.34 100%
2024-25 2% $370.60 $370.60 100%
Table 4-7
Zone 7 – El Dorado
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $238.24 $238.24 100%
2021-22 2% $243.00 $243.00 100%
2022-23 2% $247.86 $247.86 100%
2023-24 2% $252.82 $252.82 100%
2024-25 2% $257.87 $257.86 100%
Item Number: 6.

Page 197 of 711 ends

4. Proposed Assessment
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 23
Table 4-8
Zone 8 – Desert View 4
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $243.65 $243.64 100%
2021-22 2% $248.52 $248.52 100%
2022-23 2% $253.49 $253.48 100%
2023-24 2% $258.56 $258.56 100%
2024-25 2% $263.73 $263.72 100%
Table 4-9
Zone 9 – Hidden Springs
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $533.13 $63.96 12%
2021-22 2% $543.79 $54.36 10%
2022-23 2% $554.67 $55.46 10%
2023-24 2% $565.76 $56.56 10%
2024-25 2% $577.07 $57.70 10%
Table 4-10
Zone 10 – Rancho Buena Vista
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $341.11 $306.98 90%
2021-22 2% $347.93 $260.94 75%
2022-23 2% $354.89 $266.16 75%
2023-24 2% $361.99 $271.48 75%
2024-25 2% $369.23 $276.92 75%
Table 4-11
Zone 11 – Summit
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $136.31 $0.00 0%
2021-22 2% $139.03 $0.00 0%
2022-23 2% $141.82 $0.00 0%
2023-24 2% $144.65 $0.00 0%
2024-25 2% $147.54 $0.00 0%
Item Number: 6.

Page 198 of 711 ends

4. Proposed Assessment
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 24
Table 4-12
Zone 12– Skyborne
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $88.56 $88.56 100%
2021-22 2% $90.34 $90.34 100%
2022-23 2% $92.14 $92.14 100%
2023-24 2% $93.99 $93.98 100%
2024-25 2% $95.87 $95.86 100%
Table 4-13
Zone 13 – Vista Santa Fe
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $318.54 $254.82 80%
2021-22 2% $324.92 $32.48 10%
2022-23 2% $331.41 $33.14 10%
2023-24 2% $338.04 $33.80 10%
2024-25 2% $344.80 $34.48 10%
Table 4-14
Zone 14 – Rolling Hills Est.

Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $365.62 $365.62 100%
2021-22 2% $372.94 $372.94 100%
2022-23 2% $380.39 $380.38 100%
2023-24 2% $388.00 $388.00 100%
2024-25 2% $395.76 $395.76 100%
Table 4-15
Zone 16 – Hunter’s Run
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $196.38 $0.00 0%
2021-22 2% $200.31 $0.00 0%
2022-23 2% $204.31 $0.00 0%
2023-24 2% $208.40 $0.00 0%
2024-25 2% $212.57 $0.00 0%
Item Number: 6.

Page 199 of 711 ends

4. Proposed Assessment
City of Desert Hot Springs Drainage Assessment District No. 1 Engineer’s Report for Fiscal Year 2024-25 25
Table 4-16
Zone 17 – The Arbors
Fiscal Year Increase Maximum Assessment Actual Assessment Percentage of
Maximum
2020-21 2% $279.68 $279.68 100%
2021-22 2% $285.27 $285.26 100%
2022-23 2% $290.97 $290.96 100%
2023-24 2% $296.79 $296.78 100%
2024-25 2% $302.73 $302.72 100%
Item Number: 6.

Page 200 of 711 ends

APPENDIX A
Assessment Roll
Item Number: 6.

Page 201 of 711 ends

PIN Levy Amount PIN Levy Amount
681501 - DAD1 Zone 01
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
644240001 $114.90
644240002 $114.90
644240003 $114.90
644240004 $114.90
644240005 $114.90
644240006 $114.90
644240007 $114.90
644240008 $114.90
644240009 $114.90
644240010 $114.90
644240011 $114.90
644240012 $114.90
644240013 $114.90
644240014 $114.90
644240015 $114.90
644240016 $114.90
644240017 $114.90
644240018 $114.90
644240019 $114.90
644240020 $114.90
644240021 $114.90
644241001 $114.90
644241002 $114.90
644241003 $114.90
644242001 $114.90
644242002 $114.90
644242003 $114.90
644250001 $114.90
644250002 $114.90
644250003 $114.90
644250004 $114.90
644250005 $114.90
644250006 $114.90
644250007 $114.90
644250008 $114.90
644250009 $114.90
644250010 $114.90
644250011 $114.90
644250012 $114.90
644250013 $114.90
644251001 $114.90
644251002 $114.90
644251003 $114.90
644251004 $114.90
644251005 $114.90
644251006 $114.90
644251007 $114.90
644251008 $114.90
644251009 $114.90
644251010 $114.90
644251011 $114.90
644251012 $114.90
644251013 $114.90
644251014 $114.90
644252001 $114.90
644252002 $114.90
644252003 $114.90
644252004 $114.90
644252005 $114.90
644252006 $114.90
644252007 $114.90
644252008 $114.90
644252009 $114.90
644252010 $114.90
644252011 $114.90
644252012 $114.90
644252013 $114.90
644252014 $114.90
644252015 $114.90
644252016 $114.90
644252017 $114.90
644252018 $114.90
644252019 $114.90
644252020 $114.90
644252021 $114.90
644252022 $114.90
644252023 $114.90
644252024 $114.90
644252025 $114.90
644252026 $114.90
644252027 $114.90
644253001 $114.90
644253002 $114.90
644253003 $114.90
644253004 $114.90
644253005 $114.90
644253006 $114.90
644253007 $114.90
644253008 $114.90
644253009 $114.90
644253010 $114.90
644253011 $114.90
644253012 $114.90
644254001 $114.90
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 1 of 22

Page 202 of 711 ends

PIN Levy Amount PIN Levy Amount
681501 - DAD1 Zone 01
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
644254002 $114.90
644254003 $114.90
644254004 $114.90
644254005 $114.90
644254006 $114.90
644254007 $114.90
644254008 $114.90
644254009 $114.90
644254010 $114.90
644260001 $114.90
644260002 $114.90
644260003 $114.90
644260004 $114.90
644260005 $114.90
644260006 $114.90
644260007 $114.90
644260008 $114.90
644260009 $114.90
644260010 $114.90
644260011 $114.90
644260012 $114.90
644260013 $114.90
644260014 $114.90
644260015 $114.90
644260016 $114.90
644260017 $114.90
644260018 $114.90
644260019 $114.90
644260020 $114.90
644260021 $114.90
644260022 $114.90
644261001 $114.90
644261002 $114.90
644261003 $114.90
644261004 $114.90
644262001 $114.90
644262002 $114.90
644262003 $114.90
644262004 $114.90
644262005 $114.90
644262006 $114.90
644262007 $114.90
644262008 $114.90
644262009 $114.90
644262010 $114.90
644262011 $114.90
644262012 $114.90
644262013 $114.90
644262014 $114.90
644262015 $114.90
644262016 $114.90
644262017 $114.90
644262018 $114.90
644262019 $114.90
644262020 $114.90
644262021 $114.90
644262022 $114.90
644262023 $114.90
644270002 $114.90
644270003 $114.90
644270004 $114.90
644270005 $114.90
644270006 $114.90
644270007 $114.90
644270008 $114.90
644270009 $114.90
644270010 $114.90
644270011 $114.90
644270012 $114.90
644270013 $114.90
644270014 $114.90
644270015 $114.90
644270016 $114.90
644270017 $114.90
644270018 $114.90
644270019 $114.90
644270020 $114.90
644270021 $114.90
644270022 $114.90
644270023 $114.90
644270024 $114.90
644270025 $114.90
644270026 $114.90
644270027 $114.90
644270028 $114.90
644270029 $114.90
644270030 $114.90
644270031 $114.90
644270032 $114.90
644270033 $114.90
644270034 $114.90
644270035 $114.90
644271001 $114.90
644271002 $114.90
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 2 of 22

Page 203 of 711 ends

PIN Levy Amount PIN Levy Amount
681501 - DAD1 Zone 01
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
644271003 $114.90
644271004 $114.90
644271005 $114.90
644271006 $114.90
644271007 $114.90
644271008 $114.90
644271009 $114.90
644271010 $114.90
644271011 $114.90
644271012 $114.90
644271013 $114.90
644271014 $114.90
644271015 $114.90
644271016 $114.90
644271017 $114.90
203 $23,324.70
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 3 of 22

Page 204 of 711 ends

PIN Levy Amount PIN Levy Amount
681502 - DAD1 Zone 02
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
656440001 $298.38
656440002 $298.38
656440003 $298.38
656440004 $298.38
656440005 $298.38
656440006 $298.38
656440007 $298.38
656440008 $298.38
656440009 $298.38
656440010 $298.38
656440011 $298.38
656440012 $298.38
656440013 $298.38
656440014 $298.38
656440015 $298.38
656440016 $298.38
656440017 $298.38
656441001 $298.38
656441002 $298.38
656441003 $298.38
656441004 $298.38
656441005 $298.38
656441006 $298.38
656441007 $298.38
656441008 $298.38
656441009 $298.38
656441010 $298.38
656441011 $298.38
656441012 $298.38
656441013 $298.38
656441014 $298.38
656450001 $298.38
656450002 $298.38
656450003 $298.38
656450004 $298.38
656450005 $298.38
656450006 $298.38
656450007 $298.38
656450008 $298.38
656450009 $298.38
656450010 $298.38
656450011 $298.38
656450012 $298.38
656450013 $298.38
656450014 $298.38
656450015 $298.38
656450016 $298.38
656450017 $298.38
656450018 $298.38
656450019 $298.38
656450020 $298.38
656450021 $298.38
656450022 $298.38
656450023 $298.38
656450024 $298.38
656450025 $298.38
656450026 $298.38
656450027 $298.38
656450028 $298.38
656450029 $298.38
656450030 $298.38
656450031 $298.38
656450032 $298.38
656450033 $298.38
656450034 $298.38
656450035 $298.38
656450036 $298.38
656450037 $298.38
656450038 $298.38
656450039 $298.38
656450040 $298.38
656450041 $298.38
656450042 $298.38
656450043 $298.38
656450044 $298.38
656450045 $298.38
656450046 $298.38
656450047 $298.38
656450048 $298.38
656450049 $298.38
656450050 $298.38
81 $24,168.78
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 4 of 22

Page 205 of 711 ends

PIN Levy Amount PIN Levy Amount
681503 - DAD1 Zone 03
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
638313006 $481.86
638313007 $481.86
638313008 $481.86
638313009 $481.86
638314013 $481.86
638314014 $481.86
638315007 $481.86
638315008 $481.86
638315009 $481.86
638315010 $481.86
638316001 $481.86
638316002 $481.86
638316003 $481.86
638316004 $481.86
638316005 $481.86
638316006 $481.86
638316007 $481.86
638316008 $481.86
638410017 $481.86
638410018 $481.86
638410019 $481.86
638410020 $481.86
638410021 $481.86
638410022 $481.86
638410023 $481.86
638410024 $481.86
638410025 $481.86
638410026 $481.86
638410027 $481.86
638410028 $481.86
638410029 $481.86
638410030 $481.86
638410031 $481.86
638411001 $481.86
638411002 $481.86
638412001 $481.86
638412002 $481.86
638412003 $481.86
638412004 $481.86
638412005 $481.86
638412006 $481.86
638412007 $481.86
638412008 $481.86
638412009 $481.86
638412010 $481.86
638412011 $481.86
638412012 $481.86
638412013 $481.86
638412014 $481.86
638412015 $481.86
638412016 $481.86
638412017 $481.86
638412018 $481.86
638412019 $481.86
638412020 $481.86
638412021 $481.86
638412022 $481.86
638412023 $481.86
638412024 $481.86
59 $28,429.74
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 5 of 22

Page 206 of 711 ends

PIN Levy Amount PIN Levy Amount
681504 - DAD1 Zone 04
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
644280001 $115.20
644280002 $115.20
644280003 $115.20
644280004 $115.20
644280005 $115.20
644280006 $115.20
644280007 $115.20
644280008 $115.20
644280009 $115.20
644280011 $115.20
644280012 $115.20
644280013 $115.20
644280014 $115.20
644280015 $115.20
644280016 $115.20
644280017 $115.20
644281001 $115.20
644281002 $115.20
644281003 $115.20
644281004 $115.20
644281005 $115.20
644282001 $115.20
644282002 $115.20
644282003 $115.20
644282004 $115.20
644282005 $115.20
644282006 $115.20
644282007 $115.20
644282008 $115.20
644282009 $115.20
644282010 $115.20
644282011 $115.20
644282012 $115.20
644282013 $115.20
644282014 $115.20
644282015 $115.20
644282016 $115.20
644282017 $115.20
644282018 $115.20
644282019 $115.20
644282020 $115.20
644282021 $115.20
644282022 $115.20
644282023 $115.20
644282024 $115.20
644282025 $115.20
644282026 $115.20
644282027 $115.20
644282028 $115.20
644282029 $115.20
644282030 $115.20
644282031 $115.20
644282032 $115.20
644282033 $115.20
644290001 $115.20
644290002 $115.20
644290003 $115.20
644290004 $115.20
644290005 $115.20
644290006 $115.20
644290007 $115.20
644290008 $115.20
644290009 $115.20
644291001 $115.20
644291002 $115.20
644291003 $115.20
644291004 $115.20
644291005 $115.20
644291006 $115.20
644291007 $115.20
644291008 $115.20
644291009 $115.20
644291010 $115.20
644291011 $115.20
644291012 $115.20
644291013 $115.20
644291014 $115.20
644291015 $115.20
644291016 $115.20
644291017 $115.20
644291018 $115.20
644292001 $115.20
644292002 $115.20
644292003 $115.20
644292004 $115.20
644293001 $115.20
644293002 $115.20
644293003 $115.20
644293004 $115.20
644293005 $115.20
644293006 $115.20
644293007 $115.20
644293008 $115.20
644294001 $115.20
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 6 of 22

Page 207 of 711 ends

PIN Levy Amount PIN Levy Amount
681504 - DAD1 Zone 04
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
644294002 $115.20
644294003 $115.20
644294004 $115.20
644294005 $115.20
644294006 $115.20
644294007 $115.20
644294008 $115.20
644294009 $115.20
644294010 $115.20
644294011 $115.20
644300001 $115.20
644300002 $115.20
644300003 $115.20
644300004 $115.20
644300005 $115.20
644301001 $115.20
644301002 $115.20
644301003 $115.20
644301004 $115.20
644301005 $115.20
644301006 $115.20
644301007 $115.20
644301008 $115.20
644301009 $115.20
644301010 $115.20
644301011 $115.20
644301012 $115.20
644301013 $115.20
644301014 $115.20
644301015 $115.20
644301016 $115.20
644301017 $115.20
644301018 $115.20
644301019 $115.20
644301020 $115.20
644301021 $115.20
644302001 $115.20
644302002 $115.20
644302003 $115.20
644302004 $115.20
644302005 $115.20
644302006 $115.20
644302007 $115.20
644302008 $115.20
644302009 $115.20
644302010 $115.20
644302011 $115.20
644302012 $115.20
644302013 $115.20
644302014 $115.20
644303001 $115.20
644303002 $115.20
644303003 $115.20
644303004 $115.20
644303005 $115.20
644303006 $115.20
644304001 $115.20
644304002 $115.20
644304003 $115.20
153 $17,625.60
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 7 of 22

Page 208 of 711 ends

PIN Levy Amount PIN Levy Amount
681505 - DAD1 Zone 05
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
664190042 $108.84
664280001 $108.84
664280002 $108.84
664280003 $108.84
664280004 $108.84
664280005 $108.84
664280006 $108.84
664280007 $108.84
664280008 $108.84
664280009 $108.84
664280010 $108.84
664280011 $108.84
664280012 $108.84
664280013 $108.84
664280014 $108.84
664280015 $108.84
664280016 $108.84
664280017 $108.84
664280018 $108.84
664280019 $108.84
664280020 $108.84
664280021 $108.84
664280022 $108.84
664280023 $108.84
664280024 $108.84
664280025 $108.84
664280026 $108.84
664280027 $108.84
664280028 $108.84
664280029 $108.84
664280030 $108.84
664280031 $108.84
664280032 $108.84
664280033 $108.84
664280034 $108.84
664280035 $108.84
664280036 $108.84
664280037 $108.84
664280038 $108.84
664280039 $108.84
664280040 $108.84
664280041 $108.84
664290001 $108.84
664290002 $108.84
664290003 $108.84
664290004 $108.84
664290005 $108.84
664290006 $108.84
664290007 $108.84
664290008 $108.84
664290009 $108.84
664290010 $108.84
664290011 $108.84
664290012 $108.84
664290013 $108.84
664290014 $108.84
664290015 $108.84
664290016 $108.84
664290017 $108.84
664290018 $108.84
664290019 $108.84
664290020 $108.84
664290021 $108.84
664290022 $108.84
664290023 $108.84
664290024 $108.84
664290025 $108.84
664290026 $108.84
664290027 $108.84
664290028 $108.84
664290029 $108.84
664290030 $108.84
664290031 $108.84
664290032 $108.84
664290033 $108.84
664290034 $108.84
664290035 $108.84
664290036 $108.84
664290037 $108.84
664290038 $108.84
664290039 $108.84
664290040 $108.84
664290041 $108.84
664290042 $108.84
664290043 $108.84
664290044 $108.84
664290045 $108.84
664290046 $108.84
664290047 $108.84
664290048 $108.84
664290049 $108.84
664290050 $108.84
92 $10,013.28
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 8 of 22

Page 209 of 711 ends

PIN Levy Amount PIN Levy Amount
681506 - DAD1 Zone 06
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
661490001 $370.60
661490002 $370.60
661490003 $370.60
661490004 $370.60
661490005 $370.60
661490006 $370.60
661490007 $370.60
661490008 $370.60
661490009 $370.60
661490010 $370.60
661490011 $370.60
661490012 $370.60
661490013 $370.60
661490014 $370.60
661490015 $370.60
661490016 $370.60
661490017 $370.60
661490018 $370.60
661490019 $370.60
661490020 $370.60
661490021 $370.60
661490022 $370.60
661490023 $370.60
661490024 $370.60
661490025 $370.60
661490026 $370.60
661490027 $370.60
661490028 $370.60
661490029 $370.60
661490030 $370.60
661490031 $370.60
661490032 $370.60
661490033 $370.60
661491001 $370.60
661491002 $370.60
661491003 $370.60
661491004 $370.60
661491005 $370.60
661491006 $370.60
661491007 $370.60
661491008 $370.60
661491009 $370.60
661491010 $370.60
661491011 $370.60
661491012 $370.60
661491013 $370.60
661491014 $370.60
661491015 $370.60
661491016 $370.60
661491017 $370.60
661491018 $370.60
661491019 $370.60
661491020 $370.60
661491021 $370.60
661491022 $370.60
661491023 $370.60
661491024 $370.60
661491025 $370.60
661491026 $370.60
661491027 $370.60
661491028 $370.60
661491029 $370.60
661491030 $370.60
63 $23,347.80
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 9 of 22

Page 210 of 711 ends

PIN Levy Amount PIN Levy Amount
681507 - DAD1 Zone 07
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
661173001 $257.86
661173002 $257.86
661173003 $257.86
661173004 $257.86
661173005 $257.86
661480001 $257.86
661480002 $257.86
661480003 $257.86
661480004 $257.86
661480005 $257.86
661480006 $257.86
661480007 $257.86
661480008 $257.86
661480009 $257.86
661480010 $257.86
661480011 $257.86
661480012 $257.86
661480013 $257.86
661480014 $257.86
661480015 $257.86
661480016 $257.86
661480017 $257.86
661480018 $257.86
661480019 $257.86
661480020 $257.86
661480021 $257.86
661480022 $257.86
661480023 $257.86
661480024 $257.86
661481001 $257.86
661481002 $257.86
661481003 $257.86
661481004 $257.86
661481005 $257.86
661481006 $257.86
661481007 $257.86
661481008 $257.86
661481009 $257.86
661481010 $257.86
661481011 $257.86
40 $10,314.40
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 10 of 22

Page 211 of 711 ends

PIN Levy Amount PIN Levy Amount
681508 - DAD1 Zone 08
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
663420001 $263.72
663420002 $263.72
663420003 $263.72
663420004 $263.72
663420005 $263.72
663420006 $263.72
663420007 $263.72
663420008 $263.72
663420009 $263.72
663420010 $263.72
663420011 $263.72
663420012 $263.72
663420013 $263.72
663420014 $263.72
663420015 $263.72
663420016 $263.72
663421001 $263.72
663421002 $263.72
663421003 $263.72
663421004 $263.72
663421005 $263.72
663421006 $263.72
663421007 $263.72
663421008 $263.72
663421009 $263.72
663421010 $263.72
663421011 $263.72
663421012 $263.72
663421013 $263.72
663421014 $263.72
663421015 $263.72
31 $8,175.32
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 11 of 22

Page 212 of 711 ends

PIN Levy Amount PIN Levy Amount
681509 - DAD1 Zone 09
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
664300001 $57.68
664300002 $57.68
664300003 $57.68
664300004 $57.68
664300005 $57.68
664300006 $57.68
664300007 $57.68
664300008 $57.68
664300010 $57.68
664300011 $57.68
664300012 $57.68
664300013 $57.68
664300014 $57.68
664300015 $57.68
664301001 $57.68
664301002 $57.68
664301003 $57.68
664301004 $57.68
664301005 $57.68
664301006 $57.68
664301007 $57.68
664301008 $57.68
664301009 $57.68
664301010 $57.68
664301011 $57.68
664301012 $57.68
664301013 $57.68
664301014 $57.68
664301015 $57.68
664301016 $57.68
664301017 $57.68
664301018 $57.68
664301019 $57.68
664301020 $57.68
664301021 $57.68
664301022 $57.68
664301023 $57.68
664302001 $57.68
664302002 $57.68
664302003 $57.68
664302004 $57.68
664302005 $57.68
664302006 $57.68
664302007 $57.68
664302009 $57.68
664302010 $57.68
664302011 $57.68
664302012 $57.68
664302013 $57.68
664302014 $57.68
664302015 $57.68
664302016 $57.68
664302017 $57.68
664302018 $57.68
664310001 $57.68
664310002 $57.68
664310003 $57.68
664310004 $57.68
664310005 $57.68
664310006 $57.68
664310007 $57.68
664310008 $57.68
664311001 $57.68
664311002 $57.68
664311003 $57.68
664311004 $57.68
664311005 $57.68
664311006 $57.68
664311007 $57.68
664311008 $57.68
664311009 $57.68
664312001 $57.68
664312002 $57.68
664312003 $57.68
664312004 $57.68
664312005 $57.68
664312006 $57.68
664312007 $57.68
664312008 $57.68
664313001 $57.68
664313002 $57.68
664313003 $57.68
664313004 $57.68
664313005 $57.68
664313006 $57.68
664313007 $57.68
664313008 $57.68
664313009 $57.68
664313011 $57.68
664313012 $57.68
664313013 $57.68
664313014 $57.68
664313015 $57.68
664313016 $57.68
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 12 of 22

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PIN Levy Amount PIN Levy Amount
681509 - DAD1 Zone 09
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
664313017 $57.68
664313018 $57.68
96 $5,537.28
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 13 of 22

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PIN Levy Amount PIN Levy Amount
681510 - DAD1 Zone 10
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
663430001 $276.92
663430002 $276.92
663430003 $276.92
663430004 $276.92
663430005 $276.92
663430006 $276.92
663430007 $276.92
663430008 $276.92
663430009 $276.92
663430010 $276.92
663430011 $276.92
663430012 $276.92
663430013 $276.92
663430014 $276.92
663430015 $276.92
663430016 $276.92
663431001 $276.92
663431002 $276.92
663431003 $276.92
663431004 $276.92
663431005 $276.92
663431006 $276.92
663431007 $276.92
663431008 $276.92
663431009 $276.92
663431010 $276.92
663431011 $276.92
663431012 $276.92
663431013 $276.92
663431014 $276.92
663431015 $276.92
663431016 $276.92
663431017 $276.92
33 $9,138.36
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 14 of 22

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PIN Levy Amount PIN Levy Amount
681512 - DAD1 Zone 12
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
667240001 $95.86
667240002 $95.86
667240003 $95.86
667240004 $95.86
667240005 $95.86
667240006 $95.86
667240007 $95.86
667240008 $95.86
667240009 $95.86
667240010 $95.86
667240011 $95.86
667240012 $95.86
667240013 $95.86
667240014 $95.86
667240015 $95.86
667240016 $95.86
667240017 $95.86
667240018 $95.86
667240019 $95.86
667240020 $95.86
667240021 $95.86
667240022 $95.86
667240023 $95.86
667240024 $95.86
667240025 $95.86
667240026 $95.86
667240027 $95.86
667240028 $95.86
667240029 $95.86
667240030 $95.86
667240031 $95.86
667240032 $95.86
667240033 $95.86
667240034 $95.86
667240035 $95.86
667240036 $95.86
667240037 $95.86
667240038 $95.86
667250001 $95.86
667250002 $95.86
667250003 $95.86
667250004 $95.86
667250005 $95.86
667250006 $95.86
667250007 $95.86
667250008 $95.86
667250009 $95.86
667250010 $95.86
667250011 $95.86
667250012 $95.86
667250013 $95.86
667250014 $95.86
667250015 $95.86
667250016 $95.86
667250017 $95.86
667250018 $95.86
667250019 $95.86
667250020 $95.86
667250021 $95.86
667250022 $95.86
667250023 $95.86
667250024 $95.86
667250025 $95.86
667250026 $95.86
667250027 $95.86
667250028 $95.86
667250029 $95.86
667250030 $95.86
667250031 $95.86
667250032 $95.86
667250033 $95.86
667250034 $95.86
667250035 $95.86
667250036 $95.86
667250037 $95.86
667250038 $95.86
667260001 $95.86
667260002 $95.86
667260003 $95.86
667260004 $95.86
667260005 $95.86
667260006 $95.86
667260007 $95.86
667260008 $95.86
667260009 $95.86
667260010 $95.86
667260011 $95.86
667260012 $95.86
667260013 $95.86
667260014 $95.86
667260015 $95.86
667260016 $95.86
667260017 $95.86
667260018 $95.86
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 15 of 22

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PIN Levy Amount PIN Levy Amount
681512 - DAD1 Zone 12
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
667260019 $95.86
667260020 $95.86
667260021 $95.86
667260022 $95.86
667260023 $95.86
667260024 $95.86
667260025 $95.86
667260026 $95.86
667260027 $95.86
667260028 $95.86
667260029 $95.86
667260030 $95.86
667260031 $95.86
667260032 $95.86
667260033 $95.86
667260034 $95.86
667260035 $95.86
667260036 $95.86
667260037 $95.86
667260038 $95.86
667260039 $95.86
667260040 $95.86
667260041 $95.86
667260042 $95.86
667260043 $95.86
667260044 $95.86
667260045 $95.86
667260046 $95.86
667260047 $95.86
667260048 $95.86
667260049 $95.86
667260050 $95.86
667260051 $95.86
667260052 $95.86
667260053 $95.86
667260054 $95.86
667260055 $95.86
667260056 $95.86
667260057 $95.86
667260058 $95.86
667260059 $95.86
667260060 $95.86
667260061 $95.86
667260062 $95.86
667260063 $95.86
667260064 $95.86
667260065 $95.86
667260066 $95.86
667260067 $95.86
667260068 $95.86
667260069 $95.86
667260070 $95.86
667260071 $95.86
667260072 $95.86
667260073 $95.86
667260074 $95.86
667260075 $95.86
667260076 $95.86
667260077 $95.86
667260078 $95.86
667270001 $95.86
667270002 $95.86
667270003 $95.86
667270004 $95.86
667270005 $95.86
667270006 $95.86
667270007 $95.86
667270008 $95.86
667270009 $95.86
667270010 $95.86
667270011 $95.86
667270012 $95.86
667270013 $95.86
667270014 $95.86
667270015 $95.86
667270016 $95.86
667270017 $95.86
667270018 $95.86
667270019 $95.86
667270020 $95.86
667270021 $95.86
667270022 $95.86
667270023 $95.86
667270024 $95.86
667270025 $95.86
667270026 $95.86
667270027 $95.86
667270028 $95.86
667270029 $95.86
667270030 $95.86
667270031 $95.86
667270032 $95.86
667270033 $95.86
667270034 $95.86
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 16 of 22

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PIN Levy Amount PIN Levy Amount
681512 - DAD1 Zone 12
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
667270035 $95.86
667270036 $95.86
667270037 $95.86
667270038 $95.86
667270039 $95.86
667270040 $95.86
667270041 $95.86
667270042 $95.86
667270043 $95.86
667270044 $95.86
667270045 $95.86
667270046 $95.86
667270047 $95.86
667270048 $95.86
667270049 $95.86
667270050 $95.86
667270051 $95.86
667270052 $95.86
667270053 $95.86
667270054 $95.86
667270055 $95.86
667270056 $95.86
667270057 $95.86
667270058 $95.86
667270059 $95.86
667270060 $95.86
667270061 $95.86
667270062 $95.86
667270063 $95.86
667270064 $95.86
667270065 $95.86
667270066 $95.86
667270067 $95.86
667270068 $95.86
667270069 $95.86
667270070 $95.86
667270071 $95.86
667270072 $95.86
667270073 $95.86
667270074 $95.86
667270075 $95.86
667270076 $95.86
667270077 $95.86
667270078 $95.86
667270079 $95.86
667280001 $95.86
667280002 $95.86
667280003 $95.86
667280004 $95.86
667280005 $95.86
667280006 $95.86
667280007 $95.86
667280008 $95.86
667280009 $95.86
667280010 $95.86
667280011 $95.86
667280012 $95.86
667280013 $95.86
667280014 $95.86
667280015 $95.86
667280016 $95.86
667280017 $95.86
667280018 $95.86
667280019 $95.86
667280020 $95.86
667280021 $95.86
667280022 $95.86
667280023 $95.86
667280024 $95.86
667280025 $95.86
667280026 $95.86
667280027 $95.86
667280028 $95.86
667280029 $95.86
667280030 $95.86
667280031 $95.86
667280032 $95.86
667280033 $95.86
667280034 $95.86
667280035 $95.86
667280036 $95.86
667280037 $95.86
667280038 $95.86
667280039 $95.86
667280040 $95.86
667280041 $95.86
667280042 $95.86
667280043 $95.86
667280044 $95.86
667280045 $95.86
667280046 $95.86
667280047 $95.86
667280048 $95.86
667280049 $95.86
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 17 of 22

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PIN Levy Amount PIN Levy Amount
681512 - DAD1 Zone 12
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
667280050 $95.86
667280051 $95.86
667280052 $95.86
667280053 $95.86
667280054 $95.86
667280055 $95.86
667280056 $95.86
667280057 $95.86
667280058 $95.86
667280059 $95.86
667280060 $95.86
667280061 $95.86
667280062 $95.86
667280063 $95.86
667280064 $95.86
667280065 $95.86
667280066 $95.86
667280067 $95.86
667280068 $95.86
667280069 $95.86
667280070 $95.86
667280071 $95.86
667280072 $95.86
667280073 $95.86
667280074 $95.86
667280075 $95.86
667280079 $95.86
667280080 $95.86
667280081 $95.86
667280082 $95.86
667280083 $95.86
667280084 $95.86
667280085 $95.86
667280093 $95.86
667280094 $95.86
667280095 $95.86
667290001 $95.86
667290002 $95.86
667290003 $95.86
667290004 $95.86
667290005 $95.86
667290006 $95.86
667290007 $95.86
667290008 $95.86
667290009 $95.86
667290010 $95.86
667290011 $95.86
667290012 $95.86
667290013 $95.86
667290014 $95.86
667290015 $95.86
667290016 $95.86
667290017 $95.86
667290018 $95.86
667290019 $95.86
667290020 $95.86
667290021 $95.86
667290022 $95.86
667290023 $95.86
667290024 $95.86
667290025 $95.86
667290026 $95.86
667290027 $95.86
667290028 $95.86
667290029 $95.86
667290030 $95.86
667290031 $95.86
667290032 $95.86
667290033 $95.86
667290034 $95.86
667290035 $95.86
667290036 $95.86
667290037 $95.86
667290038 $95.86
667290039 $95.86
667290040 $95.86
667290041 $95.86
667290042 $95.86
667290043 $95.86
667290044 $95.86
667290045 $95.86
667290046 $95.86
667290047 $95.86
667290048 $95.86
667290049 $95.86
667290050 $95.86
667290051 $95.86
667290052 $95.86
667290053 $95.86
667290054 $95.86
667290055 $95.86
667290056 $95.86
667290057 $95.86
667290058 $95.86
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 18 of 22

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PIN Levy Amount PIN Levy Amount
681512 - DAD1 Zone 12
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
667290059 $95.86
667290060 $95.86
667290061 $95.86
667290062 $95.86
667290063 $95.86
667290064 $95.86
667290065 $95.86
667290066 $95.86
667290067 $95.86
667290068 $95.86
667290069 $95.86
667290070 $95.86
667290071 $95.86
667290072 $95.86
667290073 $95.86
667290074 $95.86
667290075 $95.86
667290076 $95.86
394 $37,768.84
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 19 of 22

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PIN Levy Amount PIN Levy Amount
681513 - DAD1 Zone 13
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
661500001 $34.48
661500002 $34.48
661500003 $34.48
661500004 $34.48
661500005 $34.48
661500006 $34.48
661500007 $34.48
661500008 $34.48
661500009 $34.48
661500010 $34.48
661500011 $34.48
661500012 $34.48
661500013 $34.48
661500014 $34.48
661500015 $34.48
661500016 $34.48
661500017 $34.48
661500018 $34.48
661500019 $34.48
661500020 $34.48
661500021 $34.48
661500022 $34.48
661500023 $34.48
661500024 $34.48
661500025 $34.48
661500026 $34.48
661500027 $34.48
661500028 $34.48
661500029 $34.48
661500030 $34.48
661500031 $34.48
661500032 $34.48
32 $1,103.36
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 20 of 22

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PIN Levy Amount PIN Levy Amount
681514 - DAD1 Zone 14
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
661550001 $395.76
661550002 $395.76
661550003 $395.76
661550004 $395.76
661550005 $395.76
661550006 $395.76
661550007 $395.76
661550008 $395.76
661550009 $395.76
661550010 $395.76
661550011 $395.76
661550012 $395.76
661550013 $395.76
661550014 $395.76
661550015 $395.76
661550016 $395.76
661550017 $395.76
661550018 $395.76
661550019 $395.76
661551001 $395.76
661551002 $395.76
661551003 $395.76
661551004 $395.76
661551005 $395.76
661551006 $395.76
661551007 $395.76
661551008 $395.76
661551009 $395.76
661551010 $395.76
661551011 $395.76
661551012 $395.76
661551013 $395.76
661551014 $395.76
661551015 $395.76
661551016 $395.76
661551017 $395.76
661560001 $395.76
661560002 $395.76
661560003 $395.76
661560004 $395.76
661560005 $395.76
41 $16,226.16
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 21 of 22

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PIN Levy Amount PIN Levy Amount
681517 - DAD1 Zone 17
CITY OF DESERT HOT SPRINGS DRAINAGE ASSESSMENT DISTRICT NO. 1 Fiscal Year 2024-25 Assessment Roll
663422001 $302.72
663422002 $302.72
663422003 $302.72
663422004 $302.72
663422005 $302.72
663422006 $302.72
663422007 $302.72
663422008 $302.72
663422009 $302.72
663422010 $302.72
663422011 $302.72
663422012 $302.72
663422013 $302.72
663422014 $302.72
663422015 $302.72
663422016 $302.72
663422017 $302.72
663423001 $302.72
663423002 $302.72
663423003 $302.72
663423004 $302.72
663423005 $302.72
663423006 $302.72
663423007 $302.72
663423010 $302.72
663423011 $302.72
663423012 $302.72
663423013 $302.72
663423014 $302.72
663423015 $302.72
663423016 $302.72
663423021 $302.72
663423022 $302.72
33 $9,989.76
1,351 $225,163.38
Parcel Count Levy Amount
Drainage Assessment District No. 1
Grand Totals
City of Desert Hot Springs - Drainage Assessment District No. 1 Item Number: 6. Page 22 of 22

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APPENDIX B
Assessment Diagrams
Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Item Number: 6.

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Source: County of Riverside GIS, 2024

PALM DR

PIERSON BLVD

WEST DR

N INDIAN CANYON DR

HACIENDA DR

LITTLE MORONGO RD
4TH ST

MISSION LAKES BLVD
5TH ST
1ST ST
12TH ST

MESQUITE AVE

VERBENA DR
7TH ST

DESERT VIEW AVE

CHOLLA DR
13TH AVE
15TH AVE
14TH AVE

MISSION C REEK RD

IRONWOOD DR

KAREN AVE

SCENIC DR

ATLANT CI AVE

WESTERN AVE

SANTA CRUZ RD
8TH AVE

MIRACLE HILL RD

YUCCA DR

CAMINO CAMPANERO

PROMENADE DR

VALENCIA DR

CALIENTE DR

SKYLINE
DR

CALLE CERRITO

VIEW RD
16TH AVE

PIERSON BLVD
ZONE 12
ZONE 1
ZONE 11
ZONE 4
ZONE 5
ZONE 2
ZONE 6
ZONE 13
ZONE 13
ZONE 9
ZONE 3
ZONE 16
ZONE 14
ZONE 8
ZONE 13
ZONE 17
ZONE 10
ZONE 15
ZONE 7
GG
RB
RB
RB
RB
RB
SM
SM
JP
RN
M:\GIS-Assessment\DHS\D
A
D_Council_Properties.mxd; Map revised May 23, 2023. 0 2,000 4,000 6,000 Feet
LEGEND
City Boundary
ZONE 1
ZONE 2
ZONE 3
ZONE 4
ZONE 5
ZONE 6
ZONE 7
ZONE 8
ZONE 9
ZONE 10
ZONE 11
ZONE 12
ZONE 13
ZONE 14
ZONE 15
ZONE 16
ZONE 17
500 Foot Buffer of
Council Member's Property
RB - Russell Betts
GG - Gary Gardner
SM - Scott Matas
JP - Jan Pye
RN - Roger Nunez
City of Desert Hot Springs
DAD No. 1 with Council Member Properties

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Item Number: 6.

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SR-24-161
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 2, 2024
Department: City Manager
Prepared by: Doria Wilms, Deputy City Manager
Subject: Resolution, calling for and giving notice of a General Municipal Election to be held in the City of Desert Hot Springs on November 5, 2024, for the “Desert Hot Springs Fiscal Stability/Local Control Measure” and Authorize the City Manager to negotiate and execute a contract amendment with the Lew Edwards Group in an amount not to exceed $68,500.00 for the extension of the Consulting Agreement for Municipal Election Informational Services.

RECOMMENDATION:
1) Adopt a Resolution of the City Council of the City of Desert Hot Springs calling and giving notice of a General Municipal Election to be held in the City of Desert Hot Springs on November 5, 2024, regarding a ballot measure titled “Desert Hot Springs Fiscal Stability/Local Control Measure” asking Shall the measure to maintain Desert Hot Springs’ fiscal stability/ general services, including maintaining 911 emergency/police response; anti-gang/drug programs; crime prevention/investigation; disaster preparation; pothole repair; preventing road/bridge closures; homelessness prevention; attracting local businesses by keeping public areas clean, safe, well-lit; by establishing a 1c sales tax, providing approximately $2,400,000 annually until ended by voters, with public spending disclosure/all funds spent in Desert Hot Springs, be adopted? 2) Authorize the City Manager to negotiate and execute a contract amendment with the Lew Edwards Group in an amount not to exceed $68,500.00 for the extension of the Consulting Agreement for Municipal Election Informational Services.

DISCUSSION:

Desert Hot Springs is home to some of the world’s finest naturally occurring hot mineral springs. For years, these waters have driven the economy, spawning resorts, retro-hip motels and celebrity retreats. Today, Desert Hot Springs is a full-service city.

One of the fastest growing cities in the region, the population of Desert Hot Springs has increased by over 25% in the last 10 years alone. Businesses have also increased in that time, leading to an increased need for basic services. Also during that time, the state has taken away local funds and handed down unfunded mandates to the city costing millions, and the cost of providing basic services has risen significantly. This need has not gone unnoticed by local residents, as in a recent resident survey, 73% of respondents agreed that the City is in need of additional funding.

Item Number: 7.

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The City also conducted significant community outreach over the past year to obtain resident input on services, including outreach via mailed communication, community and stakeholder meetings, and digital outreach, which is still ongoing. We thank the over 500 residents who provided input on their priorities, which was utilized extensively by the city in formulating this recommendation. Public safety, 911 response, preventing budget and road closures, addressing homelessness and keeping public areas safe and clean were among the top priorities for respondents.

In addition to increased demand for services, the cannabis industry has experienced difficulty over the past several years. This led to a significant reduction in the amount of cannabis tax collected by the City. At the same time, the City is experiencing increases in annual expenditures in order to continue providing the core services residents have told us are important to them. This is impacting core services including safety, 911 response and road and bridge repair, as well as the increasing need to address the homelessness crisis in our region – all areas of concern for Desert Hot Springs residents.

In order to provide a plan for the unhoused, the City acquired a building on Hacienda and contracted with a non-profit provider to open the HUB, an emergency access center for the unhoused. With the transfer of the Animal Hospital and Sanctuary properties from the Coachella Valley Humane Society, the City has incurred additional ongoing maintenance costs. Additionally, following Tropical Storm Hillary in August 2023, the City needed to spend over $1 million dollars for clean-up of storm debris, further impacting both our budget and the increased need to accelerate bridge and road repair to prevent closures in the future.

In order to balance the budget, staff made significant changes in the City's expenditures totaling $3.1 million dollars in direct budget cuts. These changes include the reduction of contract services in the City Council, City Attorney and Compliance Departments. The City also reduced its workforce by eliminating 15 full-time and part-time positions.

Long term, as the state of California enters into what may be a multi-year budget deficit, the City of Desert Hot Springs must be self-reliant in securing a source of local funding that cannot be taken by Sacramento or prepare for deeper cuts to basic services soon.

Key Considerations of a Measure Mechanism and Rate
General Purpose Measure
A general-purpose tax measure generates revenues that can be used for any purpose determined by the Council and requires a majority (50% + 1) vote while a special tax must be spent on uses specified in the ballot measure and requires a 2/3 (66.6%) vote, with a single subject limitation on what the tax can be used for. Staff recommends that the Council consider a genera-purpose measure to provide the flexibility in addressing multiple services areas that the community has indicated are important, and retaining the ability to develop an annual spending plan for use of the revenues from this measure.

Measure Rate/Amount
Staff recommends placing a 1¢ (1%) measure, which is anticipated to provide an additional $2.4 million dollars annually until ended by voters.

Item Number: 7.

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CONCLUSION:

Placing a locally-controlled measure on the ballot is a key policy issue for the Council to consider.

The City’s financial projections do not have adequate funding to meet key and basic community needs such as maintaining rapid 911 emergency and police response times, investigating and preventing crime, and upgrading roads and bridges to better prepare them for flooding and blow sand and prevent them from being shut down, among other priorities.

To help meet these and other important community needs, staff is seeking direction from the Council on whether to move forward with a sales tax measure for the November 2024 ballot for local voter consideration.

Lastly as the Council is aware, placing such a measure on the ballot does not constitute a vote by the Council on such a measure but rather whether the voters should be given the opportunity to decide if an additional locally-controlled sales tax measure is an appropriate action to provide additional funding to meet community needs.

Staff recommends the City Council adopt the Resolution, calling for and giving notice of a General Municipal Election to be held in the City of Desert Hot Springs on November 5, 2024, for the “Desert Hot Springs Fiscal Stability / Local Control Measure. Shall the measure to maintain Desert Hot Springs’ fiscal stability/ general services, including maintaining 911 emergency/ police response; anti- gang/ drug programs; crime prevention/ investigation; disaster preparation; pothole repair; preventing road/ bridge closures; homelessness prevention; attracting local businesses by keeping public areas clean, safe, well-lit; by establishing a 1c sales tax, providing approximately $2,400,000 annually until ended by voters, with public spending disclosure/all funds spent in Desert Hot Springs, be adopted?”
City Council adoption is needed to meet the County filing deadline of August 9, 2024, to place the measure on the ballot for the next available General Municipal Election date of November 5, 2024.

Additionally, Council is being asked to authorize the City Manager to negotiate and execute a contract amendment with the Lew Edwards Group in an amount not to exceed $68,500.00 for the extension of the Consulting Agreement for Municipal Election Informational Services.

Important Dates
Date Responsible Description
August 14 City Council Last day to withdraw measure
August 19 City Attorney / City Clerk Impartial Analysis of measure due
August 19 Proponents / Opponents / City
Clerk Last day to file arguments
August 20-29 - Public Exam Period
August 29 Proponents / Opponents / City
Clerk
Last day to file rebuttals to
arguments
FISCAL IMPACT:

Item Number: 7.

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Currently, the sales tax rate in the City of Desert Hot Springs is at the State minimum of 7.75%. One percent is allocated to the City while the other 6.75% goes to the State and other agencies.. An additional one cent ( one-percent added) to the sales tax within the city limits is estimated to provide an additional $2.4 million in revenue to the City depending on sales tax activity.

ATTACHMENTS:
1) Resolution
2) Ordinance
3) Consultant Scope of Services
Item Number: 7.

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RESOLUTION NO. 2024- _____

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

CALLING AND GIVING NOTICE OF A GENERAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF DESERT HOT SPRINGS ON NOVEMBER 5, 2024, REGARDING A BALLOT MEASURE TITLED “DESERT HOT SPRINGS FISCAL STABILITY / LOCAL CONTROL MEASURE. SHALL THE MEASURE TO MAINTAIN DESERT HOT SPRINGS’ FISCAL STABILITY/ GENERAL SERVICES, INCLUDING MAINTAINING 911 EMERGENCY/ POLICE RESPONSE; ANTI- GANG/ DRUG PROGRAMS; CRIME PREVENTION/ INVESTIGATION; DISASTER PREPARATION; POTHOLE REPAIR; PREVENTING ROAD/ BRIDGE CLOSURES; HOMELESSNESS PREVENTION; ATTRACTING LOCAL BUSINESSES BY KEEPING PUBLIC AREAS CLEAN, SAFE, WELL-LIT; BY ESTABLISHING A 1C SALES TAX, PROVIDING APPROXIMATELY $2,400,000 ANNUALLY UNTIL ENDED BY VOTERS,

WITH PUBLIC SPENDING DISCLOSURE/ALL FUNDS SPENT IN DESERT HOT SPRINGS, BE ADOPTED?”
WHEREAS, the City of Desert Hot Springs is committed to protecting our quality of life and property values; and
WHEREAS, providing well-lit streets and business corridors and keeping neighborhood parks and public spaces clean help keep our community a safer and more desirable place to live, do business, and raise a family; and
WHEREAS, Desert Hot Springs needs additional funds to address the basic services our residents have told us they prioritize, including maintaining rapid 911 emergency and police response times, investigating and preventing crime, and upgrading roads and bridges to better prepare them for flooding and blow sand and prevent them from being shut down, and
WHEREAS, all funds from the measure are legally required to stay in Desert Hot Springs and are protected from State takeaways; and
WHEREAS, the measure has strict accountability requirements to ensure funds are used effectively and as promised, including public disclosure of spending and independent audits; and
NOW, THEREFORE, be it resolved by the City Council of the City of Desert Hot Springs as follows:

Section 1. BALLOT MEASURE
That a ballot measure (“Measure”) shall be submitted to the voters on the November 5, 2024, election ballot in the form of the following question:

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Desert Hot Springs Fiscal Stability / Local Control Measure. Shall the measure to maintain Desert Hot Springs’ fiscal stability/ general services, including maintaining 911 emergency/ police response; anti- gang/ drug programs; crime prevention/
investigation; disaster preparation; pothole repair; preventing road/ bridge closures; homelessness prevention; attracting local businesses by keeping public areas clean, safe, well-lit; by establishing a 1c sales tax, providing approximately $2,400,000 annually until ended by voters, with public spending disclosure/all funds spent in Desert Hot Springs, be adopted?
YES NO
Section 3. PUBLIC INSPECTION
That the City Clerk shall maintain a copy of the Measure and proposed ordinance and make the same available for public inspection upon request.

Section 4. DEADLINE FOR SUBMISSION OF ARGUMENTS
That arguments in Favor or Against the Measure shall be filed with the City Clerk of the City of Desert Hot Springs on or before August 19, 2024, after which no arguments for or against the Measure may be submitted to the City Clerk.

Section 5. ARGUMENTS IN FAVOR OR AGAINST
That any individual eligible voter, or bona fide association of citizens may file a written argument in Favor OR Against the measure, accompanied by the printed names and signature(s) of the person(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, in accordance with Article 4, Chapter 3, Division 9 of the California Elections Code, and to change the argument until and including the deadline for submission, after which no arguments for or against the measure may be submitted to the City Clerk. No argument shall exceed 300 words in length.

Section 6. REBUTTALS
That rebuttal arguments shall be filed with the City Clerk by August 29, 2024, and shall not exceed 250 words in length.

Section 7. CITY ATTORNEY ANALYSIS
That the City Clerk is hereby directed to transmit a copy of the Measure and proposed ordinance to the City Attorney, who shall prepare an impartial analysis of the Measure showing the effect of the Measure on the existing law and the operation of the Measure in accordance with Section 9280 of the Elections Code.

Section 8. CITY CLERK DUTIES
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That the City Clerk is hereby directed to take all other administrative actions necessary to accomplish the orders set forth in this Resolution.

Section 9. EFFECTIVE DATE
That this Resolution shall take effect upon its adoption.

Section 10. CERTIFICATION
That the City Clerk shall certify to the passage of this Resolution and enter it into the book of original resolutions.
[SIGNATURES FOLLOW ON THE NEXT PAGE]
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PASSED, APPROVED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this _____ day of _____ 2024 by the following vote:

AYES:

NAYES:

ABSENT:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Tuan-Anh Vu, City Attorney
Item Number: 7.

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ATTACHMENT

PROPOSED ORDINANCE
Item Number: 7.

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ORDINANCE NO. _____

AN ORDINANCE OF THE CITY OF DESERT HOT SPRINGS,

CALIFORNIA IMPOSING A TRANSACTIONS AND USE (SALES) TAX

THE PEOPLE OF THE CITY OF DESERT HOT SPRINGS ORDAIN AS
FOLLOWS:

Section 1. ADDITION OF CHAPTER 3.18 TO TITLE 3 OF THE

DESERT HOT SPRINGS MUNICIPAL CODE
Chapter 3.18 is hereby added to Title 3 of the Desert Hot Springs Municipal Code to read as follows:

3.18.010. Title
This ordinance shall be known as the Desert Hot Springs Transactions and Use Tax Ordinance. The City of Desert Hot Springs hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City.

3.18.020. Operative date
Operative Date means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below.

3.18.030. Purpose
This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
(a) To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. (b) To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. (c) To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes.
(d) To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions Item Number: 7.

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of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. (e) To provide transactions and use tax revenue to the City to be used to fund general government fund purposes.

3.18.040 Contract with State.

Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions, sales and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such contract.

3.18.050 Transactions tax rate
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 1% of the gross receipts of any retailers for the sale of all tangible personal property sold at retail in said territory on and after the operative date of this Chapter.

3.18.060 Place of sale
For the purposes of this Chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his or her agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization.

3.18.070 Use tax rate.

An excise tax is hereby imposed on the storage, use, or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this Chapter for storage, use, or other consumption in said territory at the rate of 1% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made.

3.18.080 Adoption of provisions of State Law
Except as otherwise provided in this Chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Cal. Rev. & Tax. Code, all of the provisions of Part 1 (commencing with § 6001) of Division 2 of the Cal. Rev. & Tax. Code are hereby adopted and made a part of this subchapter as though fully set forth herein.

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3.18.090 Limitation on Adoption of State Law
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted. The substitution, however, shall not be made when:

1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California.

2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Chapter.

3. In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
(a). Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or
(b). Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provision of that Code.

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word "City" shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203.

3.18.100 Permit not required
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional seller's permit shall not be required by this Chapter.

3.18.110 Exemptions and exclusions
A. There shall be excluded from the measure of the transactions and sales tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any City, City and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any State-administered transactions or use tax.

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B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his or her agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
(a) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and (b) With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of the ordinance codified in this Chapter.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of the ordinance codified in this Chapter.

5. For the purposes of subsections (B)(3) and (B)(4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this Chapter, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any State administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption Item Number: 7.

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is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this Chapter.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this Chapter.

5. For the purposes of subsections (C)(3) and (C)(4) of this Section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subsection (C)(7) of this Section, a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

D. Any person subject to use tax under this Chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

E. Nothing in this Chapter shall be construed as imposing a tax upon any person or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the State of California.

3.18.120 Amendments
All amendments subsequent to the effective date of this Chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which Item Number: 7.

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are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter.

3.18.130 Enjoining collection forbidden
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or the city, or against any officer of the State or the City, to prevent or enjoin the collection under this Chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

3.18.140 Independent annual audit
The proceeds resulting from this transactions, sales, and use tax shall be deposited into the City's general fund and become subject to the same independent annual audit requirements as other general fund revenue. The independent auditor's report, which shall include an accounting of the revenues received and expenditures made from the transactions and use tax, will be presented annually to the City Council and made available for public review.

Section 2. SEVERABILITY
If any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 3. EFFECTIVE DATE
This Ordinance shall become effective only upon adoption by a majority of the people voting on the measure to adopt this Ordinance at the general municipal election on November 5, 2024. This Ordinance shall be considered as adopted upon the date that the vote on this Ordinance is declared by the City Council for the City of Desert Hot Springs, and shall go into effect 10 days after that date.

Section 4. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2024 by the following vote:

Item Number: 7.

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Ayes:

Noes:

Abstain:

Absent:
_______________________________
Scott Matas, Mayor
ATTEST:
____________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
____________________________________
Tuan-Anh Vu, City Attorney
Item Number: 7.

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CONSULTANT SCOPE OF SERVICES
As of June 25, 2024
The Lew Edwards Group will provide the following Scope of Work to the City of Desert Hot Springs from August 1 – November 30, 2024:

Public Education/Communications Services for Municipal Election • Develop a Communications Suite of informational Municipal Election materials (such as website copy, FAQs, public service announcements, community information and presentations)
• Convene planning sessions with City Staff to review recommended messaging materials and dissemination
• Produce up to three Municipal Election mailings.
(LEG to facilitate delivery to USPS on agreed upon mailing schedule but can only monitor not ensure delivery once mailings are in possession/control of USPS.) • Provide updated Message Training to City Staff as needed. • Produce one tranche of paid digital information.

Legal advice or services is expressly not within Consultant’s Scope of Work. NO advocacy services will be provided as part of any City scope of services. The parties can agree to alter the communications approaches (more mail, less paid digital or vice versa) provided that doing so does not exceed total contract amount.

PAYMENT OF SERVICES
Not to Exceed Sixty -eight Thousand, Five Hundred Dollars ($68,500) for Municipal Election informational services:
a. Professional fees August 1 -November 30th at Six Thousand, Five Hundred Dollars ($6,500) per month, Not to Exceed Twenty-six Thousand Dollars ($26,000)
b. Projected three mailers at estimated cost of Thirty Thousand Dollars ($30,000) c. Paid digital communications at estimated cost of Twelve Thousand, Five Hundred Dollars ($12,500)
As noted above, the parties can agree to alter the communications approaches (more mail, less paid digital or vice versa) provided that doing so does not exceed total contract amount.

Item Number: 7.

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SR-24-164
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 2, 2024
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: City Council Regular Meeting Minutes: June 4, 2024 RECOMMENDATION:

Approve the Minutes as presented; or as corrected.

ATTACHMENTS:

Draft City Council Regular Meeting Minutes - June 4, 2024 Item Number: 8.

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City of Desert Hot Springs

DRAFT ACTION MINUTES
City Council Regular Meeting
6:00 PM - Tuesday, June 4, 2024
Council Chambers
CLOSED SESSION - 4:30 P.M.

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

ROLL CALL

Present:

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

PUBLIC COMMENTS
None.

Tuan-Anh Vu, City Attorney, announced the Closed Session Items.

CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: (Paula Terifaj v. City of Desert Hot Springs) Riverside County Superior Court Case Number: CVPS2304283)

2. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: (One potential case)
RECESS
PRESENTATIONS - 5:15 P.M.

Retirement Recognition - Carol Morin, Mission Springs Water District A Certificate of Recognition was presented to Carol Morin in recognition of her retirement from Mission Springs Water District.

Item Number: 8.

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City Council
June 4, 2024
Indian Canyon Drive Update
Tom Kirk, Coachella Valley Association of Governments, and Joel Montalvo, Engineering Director, City of Palm Springs, presented the update and responded to questions.

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, Roger Nuñez Mayor Pro Tem: Jan Pye
Mayor: Scott Matas

INVOCATION
Pastor James Baylark gave the Invocation.

PLEDGE OF ALLEGIANCE
Councilmember Nuñez led the Pledge of Allegiance.

CITY ATTORNEY REPORT ON CLOSED SESSION
Tuan-Anh Vu, City Attorney, advised that there was no reportable action.

APPROVAL OF AGENDA
ACTION: Approve the June 4, 2024, Regular Meeting agenda and approve the Consent Calendar except for Items 6 and 9; and Item 10 withdrawn.

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

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

PUBLIC COMMENTS
None.

Item Number: 8.

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City Council
June 4, 2024

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

MAYOR AND COUNCIL MEMBER REPORTS
Councilmember Nuñez 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. Audited Financial Statements for Fiscal Year 2022-2023 Staff Report - SR-24-140 - Pdf
Sophia Kuo, The Pun Group, presented the reports and responded to questions.

The item was received and filed.

4. Presentation and Request for Support for Lift to Rise's 2024-26 Affordable Housing Action Plan
Recommendation:

Staff recommends that the City Council consider:
1) Receive and file the presentation on Lift to Rise's 2024-26 Affordable Housing Action Plan;
2) Support the goals and initiatives outlined in the Action Plan; and 3) Direct staff to collaborate with Lift to Rise and other community partners to advance affordable housing projects within Desert Hot Springs.

Staff Report - SR-24-141 - Pdf
Ian Gabriel and Jessika Pollard, Lift to Rise, presented the report and responded to questions.

Malcolm Harris spoke in support.

Alejandro Meza Aguilar spoke in support.

Frank Elmore spoke in support.

Item Number: 8.

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City Council
June 4, 2024
Otilia Zavala spoke in support.

Name not provided, spoke in support.

Tom Moen spoke in support.

ACTION: Approve Staff recommendation.

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

AYES: Betts, Gardner, Pye, Nuñez, and Matas
The City Council recessed at 7:38 PM
The City Council reconvened at 7:45 PM
CONSENT CALENDAR:

5. City Council Regular Meeting Minutes: May 21, 2024
Staff Report - SR-24-144 - Pdf
ACTION: Approved the Minutes as presented.

6. Cooperative Agreement with the County of Riverside to Provide Fire Protection, Fire Prevention, Rescue, Fire Marshal, and Medical Emergency Services and with a Fuel Use Agreement.

Staff Report - SR-24-136 - Pdf
ACTION: Approved Staff recommendation to approve the Cooperative Agreement with the County of Riverside to provide fire protection, fire prevention, rescue, Fire Marshal, and Medical Emergency Services and a Fuel Use Agreement for a term of July 1, 2024 to June 30, 2029.

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

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

7. Community Facilities District 2006-1 Improvement Area No. 1, Levy and Collection of Special Taxes for Fiscal Year 2024-25
Staff Report - SR-24-138 - Pdf
Item Number: 8.

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City Council
June 4, 2024
ACTION: Approved Staff recommendation and adopted Resolution No. 2024- 023: A Resolution of the City Council Ordering the Levy and Collection of Special Taxes within Community Facilities District No. 2006-1 Improvement Area No. 1, for Fiscal Year 2024-25.

8. Resolution Listing Projects to be Funded by Senate Bill 1 for Fiscal Year 2024-2025
Staff Report - SR-24-143 - Pdf
ACTION: Approved Staff recommendation and adopted Resolution No. 2024- 024: A Resolution of the City Council listing projects to be funded in Fiscal Year 2024-2025 by Senate Bill 1 (SB1)– Road Maintenance Rehabilitation Account (RMRA) Funds with an estimated amount of $700,000.

9. Approval of Side Letter Agreement to the Memorandum of Understanding (MOU) with the Desert Hot Springs Police Officers' Association (DHSPOA) Recommendation:
1) Approve the Side Letter Agreement to the MOU between the City of Desert Hot Springs and the DHPOA; and
2) Authorize the City Manager to execute the Side Letter Agreement on behalf of the City.

Staff Report - SR-24-142 - Pdf
Tom Moen spoke in support.

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

10. Tow Franchise Services
Recommendation:

Authorize the City Manager to execute a Towing Franchise Service Agreement with Aarco Towing to exclusively provide towing service per the Towing Franchise Agreement with substantive edits to be negotiated and approved by the City Manager and upon approval as to form by the City Attorney. These services will be provided within the city limits for the Police Department, as well as other City Departments on a as needed basis.

Staff Report - SR-24-135 - Pdf
This item was withdrawn from the agenda.

11. Second Reading and Adoption of An Ordinance Amending Mobile Food Item Number: 8.

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City Council
June 4, 2024
Facility, Street Vendor, and Peddler Regulations.

Staff Report - SR-24-139 - Pdf
ACTION: Approved Staff recommendation and adopted Ordinance No. 803:
"An Ordinance of the City Council of the City of Desert Hot Springs, amending Title 5 "Business License and Regulations" of Chapter 5.28 "Sidewalk Vendors and Peddlers" and Chapter 5.52 "Mobile Food Facilities" of the Desert Hot Springs Municipal Code."

PUBLIC COMMENTS
None.

ADJOURN
Mayor Matas adjourned the meeting at 7:53 PM
Jerryl Soriano, CMC, City Clerk
Item Number: 8.

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SR-24-152
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 2, 2024
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Notice and Call of General Municipal Election to be Held on Tuesday, November 5, 2024
RECOMMENDATION:
1) Adopt a Resolution of the City Council giving notice of the election of officers, authorizing the City Clerk to perform all items necessary to lawfully conduct the election, and requesting services from the County of Riverside to assist in conducting and canvassing the election; and 2) Adopt a Resolution of the City Council establishing general regulations for the filing of an optional candidate's statement for inclusion in the voter's pamphlet; and setting the deposit fee.

DISCUSSION:

Under the provisions of Desert Hot Springs Municipal Code (DHSMC) § 2.04.060, a General Municipal Election (“Election”) shall be held on Tuesday, November 5, 2024 (the first Tuesday after the first Monday of November in each even-numbered year) for the election of the following Municipal Officers:

Two routine and customary resolutions have been prepared for adoption by the City Council. The adopted resolutions must be submitted to the Registrar of Voters (“ROV”), County of Riverside, no later than July 3, 2024:
1) Notice and Call of Election
The first resolution (Exhibit 1) gives notice of the election, requests consolidation and the services of the “ROV” to conduct the Election, and provides for the payment of such services.

Item Number: 9.

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SR-24-152
2) Candidate Statement and Deposit (Optional to Candidates) The second resolution (Exhibit 2) sets forth rules and regulations pertaining to the cost, preparation, and submission of candidate statements for inclusion in the voters pamphlet mailed to each registered voter, as required by California Elections Code § 13307.

Candidate statements (maximum 200 words) are optional. Should a candidate choose to have a statement included in the voters pamphlet, the deposit required at the time nomination papers are filed is as follows:
 Mayor - $800.00
 Councilmember - $400.00
 Electronic Distribution Only - $260.00
The deposit amount was determined by the “ROV” as an approximation of the actual cost.

Following the Election, candidates may be billed, or refunded the unused portion of the deposit based on the actual cost.

Pursuant to California Elections Code § 13308, candidate statements shall be limited to a recitation of the candidate’s own personal background and qualifications and shall not in any way make reference to other candidates for that office or to another candidate’s qualifications, character, or activities.

By-District Elections
In 2022 the City transitioned to a by-district election system. In a by-district election system, a candidate for City Council must reside in the district which he or she wishes to represent, and only registered voters residing in the Council District may vote for candidates running for City Council in that District. In addition to the aforementioned, DHSMC 2.04.130 "Candidate Residency" provides the following:
a) City Councilmember(s) must reside in the jurisdictional boundaries of their respective district for no fewer than 30 days prior to filing nomination papers, and for the duration of their term. b) Mayoral candidate(s) must reside in the jurisdictional boundaries of the City no fewer than 30 days prior to filing nomination papers, and for the duration of their term. c) Proof of residency in document form must be shown to the City Clerk upon filing nomination papers.

On April 5, 2022, the City Council adopted Ordinance 754 approving Map 1.1 as the final district map and establishing a by-district election process that commenced with the November 8, 2022 General Municipal Election. Members of the City Council shall be elected by districts 1, 2, 3, and 4, with one (1) mayor elected at-large.

Item Number: 9.

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SR-24-152
 Members of the City Council from Council Districts 1 and 3 shall be elected on a by-district basis beginning with the November 8, 2022, General Municipal Election and every four years thereafter.
 Members of the City Council from Council Districts 2 and 4 shall be elected on a by-district basis beginning with the General Municipal Election in November 2024 and every four years thereafter.
 One (1) mayor shall be elected at-large in November 2024 and every four years thereafter.

An interactive map is available to assist voters in looking up their voting district.

Nomination Period
Every election starts with a “Nomination Period.” Per the California Elections Code, this is the period of time that begins not earlier than than the 113th day before, nor later than the 88th day before the municipal election during normal office hours as posted.

This is the only period of time during which potential candidates can obtain “nomination papers,” which are the official forms needed in order to run for office. Accordingly, the nomination period begins on Monday, July 15, 2024 and ends on Thursday, August 8, 2024.

If an incumbent does not file nomination papers, the nominating period is extended pursuant to California Elections Code § 10225. As such, candidates other than the person who was the incumbent may file nomination papers for that incumbent's elective office until August 14, 2024. If an incumbent files nomination papers, the nomination period for that office does not get extended.

Candidate Filing Fee
Pursuant to DHSMC § 2.04.090, there is an established filing fee of $25.00 due at the time nomination papers are filed, to defray, in part, the cost to the City of processing nomination papers.

FISCAL IMPACT:

The “ROV” has advised that the estimated cost for the Election is $50,000 and has been appropriated in the FY 2024-25 Budget.

ATTACHMENTS:
1) Resolution Calling the Election
2) Resolution Candidate Statement Regulations
3) Basic Steps in Running for Office
Item Number: 9.

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RESOLUTION NO. 2024-_____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS, CALIFORNIA, CALLING AND GIVING NOTICE OF THE

HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD IN
THE CITY ON TUESDAY, NOVEMBER 5, 2024, FOR THE ELECTION

OF CERTAIN OFFICERS OF THE CITY AND REQUESTING SERVICES

FROM THE RIVERSIDE COUNTY REGISTRAR OF VOTERS AND

PROVIDING FOR CANVASS OF THE ELECTION BY THE CITY CLERK NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Desert Hot Springs as follows:

Section 1. GENERAL MUNICIPAL ELECTION
That pursuant to the requirements of the Desert Hot Springs City Charter, Desert Hot Springs Municipal Code, and the laws of the State of California relating to elections, there is called and ordered to be held in the City of Desert Hot Springs, California, on Tuesday, November 5, 2024, a General Municipal Election for the purpose of electing the Mayor of the City of Desert Hot Springs for the full term of four years; and two (2) members of the City Council from Districts 2 and 4, respectively, for the full term of four (4) years. The seats are currently held by incumbent Mayor Scott Matas, and incumbent City Council members Russell Betts and Roger Nuñez.

Section 2. BALLOT DESIGNATIONS
That the City Clerk shall follow the California Secretary of State's Ballot Designations Guidelines.

Section 3. BALLOTS
That the ballots to be used at said election shall be, both as to form and matter contained therein, such as may be required by law to be used there at.

Section 4. PROCUREMENT
Except for those services routinely conducted by the City Clerk as the local elections official, delegation is hereby made to the Riverside County Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to conduct said election in accordance with all applicable laws and procedures.

Section 5. REIMBURSEMENT
That the City of Desert Hot Springs shall reimburse Riverside County for services performed when the work is completed and upon presentation to the City of a properly approved bill.

Item Number: 9.

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Section 6. CANVASS
The Riverside County Registrar of Voters is hereby authorized, instructed, and directed to canvass the returns of the General Municipal Election and give such further or additional notice of said election, in time, form, and manner as required by law.

Section 7. ELECTION RESULTS
That pursuant to Sections 10262, 10263, 15301, and 15302 of the Elections Code, the City Clerk of the City of Desert Hot Springs shall certify the results to the City Council no later than the third Friday following the certification of the election by the Registrar of Voters.

Section 8. REPEAL OF CONFLICTING RESOLUTIONS
That all the provisions of any existing resolution as heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.

Section 9. PASSAGE AND ADOPTION
That the City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions of the City of Desert Hot Springs; and shall make a minute of passage and adoption thereof in the records of the proceedings of the City Council of the City of Desert Hot Springs, in the minutes of the meeting at which the same is passed and adopted.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the 2nd day of July 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________________________________________ ATTEST: Scott Matas, Mayor
________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
________________________________
Item Number: 9.

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Tuan-Anh Vu, City Attorney
Item Number: 9.

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RESOLUTION NO. 2024-_______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS, CALIFORNIA, ADOPTING REGULATIONS FOR

CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATE

STATEMENTS SUBMITTED TO THE VOTERS AT THE GENERAL
MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024.

WHEREAS, Section 13307 of the California Elections Code provides that the governing body of a local agency adopt regulations pertaining to materials prepared by any candidate for a municipal election, including the costs thereof.

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

Section 1. RECITALS
That the recitals set forth hereinabove are true and correct.

Section 2. CANDIDATE STATEMENTS
A. That pursuant to Section 13307 of the California Elections Code, each candidate for elective office to be voted on at the City of Desert Hot Springs General Municipal Election, to be held on November 5, 2024, may prepare a candidate statement on an appropriate form provided by the City Clerk.

B. That the statement may include the name, age, and occupation of the candidate and a brief description of no more than 200 words of the candidate's education and qualifications expressed by the candidate himself or herself.

C. That the statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations.

D. That, pursuant to Section 13307(b) of the California Elections Code, bold font is prohibited.

E. That the statement shall be filed in typewritten form in the Office of the City Clerk at the time the candidate's nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period.

F. That in addition to the restrictions set forth in California Elections Code Section 13307, any candidate's statement submitted, pursuant to Section 13308 shall be limited to a recitation of the candidate's own personal background and qualifications, and shall not in any way make reference to other candidates for that office or to another candidate's qualifications, character, or activities.

Item Number: 9.

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G. That the City Clerk is not permitted to edit any material contained in candidate statements. Candidates are responsible for proofreading spelling, punctuation and grammar. Since the statement cannot be changed after it is submitted, it is important for candidates to carefully prepare and proofread their statements. Pursuant to California Elections Code Section 13308, the City Clerk shall not cause to be printed or circulated any statement which the City Clerk determines does not comply with the provisions of the Elections Code.

H. That the City Clerk, in his or her sole discretion, after first attempting to consult with the candidate, may strike or modify the portion or portions of the candidate statement that is not in compliance and thereafter cause to be printed and circulated the candidate's statement as redacted or modified.

Section 3. FOREIGN LANGUAGE POLICY
A. Pursuant to the federal Voting Rights Act of 1965 (as amended), candidate statements will be translated into all languages required by the County of Riverside. The County is required to translate candidate’s statements into Spanish.

B. The Riverside County Registrar of Voters will print and mail sample ballots and candidate statements to all voters in English and Spanish. The Registrar of Voters will make sample ballots and candidate’s statements in the required languages available at all vote centers, on the County’s website and in the election official’s office.

Section 4. ADDITIONAL MATERIALS
That no candidate will be permitted to include additional materials in the sample ballot package.

Section 5. PAYMENT
A. That the candidate shall be required to pay for the cost of printing the candidate's statements in English and Spanish.

B. That it is hereby estimated that the total cost of printing, handling, translating, and mailing the candidate's statements filed pursuant to California Elections Code Section 13307 will be as follows:

Mayor $800.00
Councilmember $400.00
Electronic Distribution Only $260.00
The City Clerk shall require each candidate filing a statement to pay in advance a deposit in the amount indicated above as a condition of having his or her statement included in the voter's pamphlet.

C. That the above estimate is only an approximation of the actual costs that vary from one election to another election and may be significantly more or less Item Number: 9.

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than the estimate, depending on the actual number of candidates filing statements.

D. That the City Clerk shall bill each candidate for that candidate's proportion of the actual cost in excess of the deposit and shall refund any unused portion of any deposit.

Section 6. COPY OF RESOLUTION
That the City Clerk is directed to provide each candidate or the candidate's representative a copy of this Resolution at the time nomination papers are issued.

Section 7. REPEAL OF CONFLICTING RESOLUTIONS
That all the provisions of any existing resolution as heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.

Section 8. PASSAGE AND ADOPTION
That the City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions of the City of Desert Hot Springs; and shall make a minute of passage and adoption thereof in the records of the proceedings of the City Council of City of Desert Hot Springs, in the minutes of the meeting at which the same is passed and adopted.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the 2nd day of July 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: _____________________________
Scott Matas, Mayor
________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
______________________________________
Tuan-Anh Vu, City Attorney
Item Number: 9.

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1 City of Desert Hot Springs

OFFICE OF THE CITY CLERK

BASIC STEPS IN RUNNING FOR OFFICE
The City of Desert Hot Springs is a Charter city. The conduct of elections for the City of Desert Hot Springs is established by the California Elections Code and may be supplemented by City rules and regulations.

The Office of the City Clerk does not render any legal advice. Therefore, this guide is NOT intended to be a substitute for legal counsel. As such, candidates are encouraged to consult legal assistance as needed.

In order to be eligible to hold office as a member of the City Council, a candidate must be a registered voter and reside within the district in which he or she wishes to represent, no fewer than 30 days prior to filing nomination papers, and for the duration of their term.

Mayoral candidate(s) must be a registered voter and reside in the jurisdictional boundaries of the City of Desert Hot Springs no fewer than 30 days prior to filing nomination papers, and for the duration of their term.

Proof of residency in document form must be shown to the City Clerk upon filing of nomination papers.

In order to qualify as a registered voter in Desert Hot Springs, you must be a United States citizen; a resident of Desert Hot Springs; at least 18 years of age on the date of the next election; and not in prison or on parole for a felony conviction.

During a specific period known as the “Nomination Period,” you obtain your official papers from the City Clerk; you have a minimum of 20, maximum of 30 registered voters from your district sign your papers; you complete the papers; and you turn them into the City Clerk.

Before starting your campaign, you’ll need to become familiar with a number of other requirements. This is not an all-inclusive list, so please be sure to check with the City Clerk on other requirements.

Fair Political Practices Commission (FPPC) Rules and Requirements You and your campaign treasurer will need to become conversant with the rules of the Political Reform Act, which is the State law that regulates contributions and expenditures for elective offices in California. The Fair Political Practices Commission (the FPPC) has regulatory responsibility and authority for the Act. The day-to-day implementation of the Act for City offices is the responsibility of the City Clerk.

If you plan on receiving or spending funds for your campaign, here are some things you’ll need to do:
• Learn the rules for campaigns and familiarize yourself with the laws and regulations:
▪ Getting Started – Candidate Toolkit
▪ FPPC Campaign Rules and the California Political Reform Act ▪ FPPC Campaign Forms
▪ FPPC Campaign Disclosure Manual 2 – Local Candidates
Read and provide a copy to your Treasurer
FPPC Manuals and Forms can also be obtained from the Office of the City Clerk Item Number: 9.

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2 • Before you collect or spend any funds in connection with your campaign, you must file a FPPC Form 501 (Candidate Intention Statement) with the City Clerk. • Open a bank account for your committee.
• Within 10 days of receiving $2,000 in contributions, file a FPPC Form 410 (Statement of Organization).
▪ File an original (wet ink signature) Form 410 with the California Secretary of State ($50 filing fee payable to the California Secretary of State) and a copy to the City Clerk • Become familiar with campaign report filing requirements and deadlines. • Attend an FPPC webinar or seminar (information available on the FPPC website or call the FPPC at 1-866-ASK-FPPC (1-866-275-3772).

HOW TO RUN FOR OFFICE
Nomination Period
Per the California Elections Code, every election starts with a “Nomination Period.” This is the period of time that begins 113 days before the day of the election and ends 88 days before the day of the election. This is the only period of time during which you can obtain “nomination papers,” which are the official forms you need to submit in order to run for office. Contact the City Clerk for an appointment. There is a $25 filing fee pursuant to the Desert Hot Springs Municipal Code.

It is strongly advised that you file your nomination papers as early as possible in order to correct any possible errors and/or insufficiencies in the forms.

Obtain Signatures
Obtain valid signatures of registered voters from your District on your nomination papers. A maximum of 30 signatures can be obtained. A minimum of 20 valid signatures is required to qualify for the ballot.

Ballot Designation
This is the word or group of not more than three words which will appear on the ballot under your name. It designates your principal profession, vocation or occupation, subject to certain requirements of the California Elections Code.

Optional Candidate’s Statement
Start thinking about what you want your candidate’s statement to say. Under the California Elections Code, your statement is limited to 200 words and shall be limited to a recitation of the candidate’s own personal background and qualifications, and shall not in any way make reference to other candidates for that office or to another candidate’s qualifications, character, or activities. Check with the City Clerk regarding costs and deposits related to printing, translating and publishing your candidate’s statement.

Item Number: 9.

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SR-24-153
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 2, 2024
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: Award Professional Services Agreement for Cannabis Consultant Planner RECOMMENDATION:

Authorize the City Manager to negotiate and execute the Professional Services Agreement for cannabis consultant services with TS Elite Consulting, in the amount not to exceed $265,000 per year, with a contingency of $25,000 (11%) for any additional work per year as approved by the City, which brings a total budget of $290,000 per year.

BACKGROUND:

In 2021, the California Department of Cannabis Control released the Local Jurisdiction Assistance Grant Program, which provided local jurisdictions with funding to aid in transitioning many State provisional cannabis licenses into State annual licenses. The total grant program identified available funding for 17 local jurisdictions totaling $100 Million. The City of Desert Hot Springs was among those local jurisdictions that were identified with a total available grant fund amount of $822,160. The grant program also identified the grant guidelines and requirements for the application and selection process.

In response, the City of Desert Hot Springs submitted a grant application that met specific grant program guidelines and utilized the available funds for the following scope of work:
1) The City will utilize the grant funds to hire planning/environmental consultant firms that will complete various tasks in assisting all cannabis provisional licensees in moving forward in the process to establish cannabis permanent licenses. These tasks will consist of processing and updating any pending, expired, and/or new cannabis applications and licensees from beginning to end, including but not limited to coordinating meetings with cannabis licensee applicants, reviewing all cannabis applications, completing and/or reviewing California Environmental Quality Act (CEQA) technical studies, completing CEQA analysis and reporting, processing all required local and State public noticing, assisting in processing applications through all public hearings through staff reports and presentations, and assisting applicants in submitting all State requirements for State cannabis licenses.
2) The City will also utilize the grant funds to hire IT/GIS consultant firms that will assist the City in establishing a software database for tracking of all the City’s cannabis licenses, including all provisional licenses, to be utilized for tracking through the entire process. The firm will update and develop user friendly online tools and resources for cannabis applicants, develop online Item Number: 10.

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SR-24-153
cannabis applications and online submittal processes. This will help streamline the cannabis application process by making all resources readily available to applicants.

In February 2023, the City Council approved a Professional Services Agreement (PSA) with AM LLC to provide consulting services and processing for cannabis licensing. AM LLC successfully processed 12 local cannabis operator addendums, resulting in annual licensure. To maximize the number of provisional to annual licensing transitions, the City submitted an amendment to the DCC for the scope of work and associated costs. The City required additional hours of service dedicated to the grant and amended scope of work.

As such, the City opted to terminate the PSA with AM LLC and amend the proposed grant budget with the California DCC. The City published a request for qualifications that better aligned with its goals and deliverables regarding the DCC’s Local Jurisdiction Assistance Grant Program.

DISCUSSION:

On May 23, 2034, the City of Desert Hot Springs released a Request for Qualifications for Consultant Cannabis Planner(s) to provide consultant services in processing cannabis facility applications through the entitlement process and the City and States’ respective permitting and licensing processes. The Request for Qualifications was posted on the City’s website. The Request for Qualifications closed on June 20, 2024, and the City received eleven (11) submissions from the consultants listed below.

Staff completed independent evaluations for each submission and ranked each firm based on the following criteria:
 Experience with Cannabis Consulting and Planning with City Government and Cannabis Development Projects
 Staff qualifications
 Experience with CEQA in the development process of projects  Experience with California Department of Cannabis Control (DCC) applications, permits and requirements
 Experience with project management, project database, and project tracking.

The results of the rankings were as follows:

Item Number: 10.

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SR-24-153
Based on the evaluations of qualifications, the staff finds TS Elite Consulting to be the most qualified consultant and recommends awarding the contract.

The California Department of Cannabis Control Local Jurisdiction Assistance Grant Program will reimburse 100% of all expenses related to this contract.

FISCAL IMPACT:

This contract is subject to negotiations not exceeding $265,000 annually, with a contingency of $25,000 (11%) for any additional work per year as approved by the City and an option to extend into a second fiscal year. Thus, the total budget for a two-year term is $580,000 per year.

All expenses related to this contract will utilize the $822,160.00 awarded to the City by the California Department of Cannabis Control Local Jurisdiction Assistance Grant Program. To date, $657,000 in grant funds have been deposited in the Department of Cannabis Control Grant Special Revenue Fund in the City's general ledger. City staff is requesting the remaining 20% allocation from the grant award.

ATTACHMENTS:
1) TS Elite Consulting LLC RFQ
2) Professional Services Agreement - TS Elite Consulting LLC 3) Scope of Work
Item Number: 10.

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REQUEST FOR
QUALIFICATIONS /PROPOSALS:

CONSULTANT PLANNING,

ENVIRONMENTAL, AND GIS SERVICES

FOR CANNABIS APPLICATIONS

CITY OF DESERT HOT SPRINGS
June 18th, 2024
ATTN: CHRISTINA NEWSOM

CODE COMPLIANCE DIRECTOR
[email protected]
Item Number: 10.

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TABLE OF CONTENTS
COVER LETTER................................................01 CONSULTANT PORTFOLIO..............................02
CONSULTANT ORGANIZATION CHART............03
ROLES AND RESPONSIBILITIES........................04
CONSULTANT RESUME...................................07
RECOMMENDED SUB-CONTRACTORS..............10
CONSULTANT SIMILAR WORK EXPERIENCE......11
PROPOSED AVAILABLE SCHEDULE...................12
ADDITIONAL RECOMMENDATIONS..................13
FEE PROPOSAL ..............................................14 Item Number: 10.

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1. Cover Letter
June 18th, 2024
Christina Newsom
City of Desert Hot Springs
Code Compliance Director
[email protected]
Re: REQUEST FOR QUALIFICATIONS/PROPOSALS FOR CONSULTANT PLANNING,

ENVIRONMENTAL, AND GIS SERVICES FOR CANNABIS APPLICATIONS Dear Director Newsom and the City of Desert Hot Springs, TS Elite Consulting LLC (TSEC) is a regulated industry focused consulting firm with an expertise in licensing, application processes, operational compliance, government relations, and risk mitigation. Led by Andrew Mieure (CEO and Lead Consultant), with support from world class subcontractors and subject matter experts, TS Elite Consulting LLC provides unmatched service and execution. TS Elite Consulting LLC’s service footprint includes over half of the United States and multiple international jurisdictions.

TS Elite Consulting LLC will work extensively with the City of Desert Hot Springs to not only meet, but exceed all established goals and objectives related to cannabis application processing, business licensing, and support. Utilizing the experience gained during similar projects, we have a vast array of applicable experience that we believe will assist the City of Desert Hot Springs in supporting the needs of all cannabis business operators within the City.

The following highlights display relevant experience and projects performed by TS Elite Consulting LLC:

Assisted in completing over 100 cannabis license applications within 15 states and 6 international jurisdictions.

Assisted local California based City government agency with managing DCC provisionalto-annual licensing, CEQA compliance, local permitting, internal training material creation, and applicant/operator database management.

Submitted fully developed cannabis-specific regulatory framework and ordinances for numerous state and local governments, resulting in direct adoption.

Developed cannabis-specific education materials, videos, and standard operating procedures for the New York State Workforce Development Initiative in collaboration with Cornell University.

We look forward to assisting the City of Desert Hot Springs with this project. If you require any additional information or have any further questions please contact me at the following email [email protected] or at my direct phone line 419-306-3672.

Best Regards,
Andrew Mieure, CEO - TS Elite Consulting LLC
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2. Consultant Portfolio
In order to meet and exceed the objectives requested by the City of Desert Hot Springs, TS Elite Consulting LLC will utilize CEO and lead consultant Andrew Mieure to perform the majority of the project scope. TS Elite Consulting LLC shall be referred to as (TSEC) moving forward.

TS ELITE CONSULTING LLC (TSEC) Introduction
TSEC is a boutique consulting firm with a specialized focus on highly regulated industries.

Founded in 2016, we have been dedicated to assisting some of the most extensively regulated industries including cannabis, psychedelics, and alcohol. We navigate the intricate world of regulated business licensing, offer strategic insights, provide risk mitigation, and compliance support all with a keen eye for detail. We integrate seamlessly into operational teams, law firms, government agencies, and compliance roles, working closely with key decision makers.

While we are not lawyers or government regulators, we are comfortable working closely with both. We work closely with our client's legal counsel, the government, regulatory oversight committees, and businesses. These strong relationships and deep understanding are what has allowed us to become trusted within our space.

We explain government regulations in plain english and tell our clients exactly the way they would have an impact on businesses, communities, and bottom lines. We spot issues before they become problems, before fines and before compliance violations. We keep detailed tabs on the latest updates in order to best serve our clients and the regulatory process. we pride ourselves ensuring that our clients make economically, socially, and compliantly sound business decisions.

As a trusted licensing consulting firm, we have assisted numerous applicants with competitive merit-based licensing application submission and regulatory support.

Specifically, we have won dozens of licenses for clients in multiple regions throughout the United States and internationally in some of the most competitive markets.

TS ELITE CONSULTING LLC (TSEC) Client Portfolio
TSEC’s client portfolio includes boutique brands, family-owned businesses, large scale vertically integrated organizations, psychedelics startups, cannabis operators (dispensary, cultivation, manufacturing, and consumption lounge), hospitality groups, and government agencies. TSEC has assisted hundreds of clients within 20 adult-use and medical cannabis legal states and 6 countries internationally.

Furthermore, TSEC has a proven track record of assisting applicants, operators, and local government in the State of California with CEQA compliance, cannabis application processing, operational data preparation, state and local compliance review, technical study review/completion, public noticing, staff reporting, and provisional-to-annual license approval processing.

Prior project writing samples will be made available upon request.

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3. Consultant Organization Chart
Organization Chart

THE CITY OF

DESERT HOT SPRINGS

SUBJECT MATTER EXPERTS (AS NEEDED)

SUB CONTRACTORS (AS NEEDED)

TS ELITE

CONSULTING LLC
TS Elite Consulting LLC has established a streamlined organization chart that will efficiently address the needs of the City, while providing oversight and responsibility for all aspects of the project.

TS Elite Consulting LLC, specifically Andrew Mieure, will report to the City of Desert Hot Springs for all decisions and project objectives prior to commencing. TSEC will ultimately act as the lead for all deliverables on the project.

If additional subject matter experts (SME) or subcontractors are required to complete the requested scope, they will report to TSEC / Andrew Mieure prior to performing any work. Any subcontractors used during the project will be immediately disclosed and vetted by the City of Desert Hot Springs prior to any work being completed.

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3.1 Roles and Responsibilities
Scope of Services
TSEC will designate a full-time dedicated consultant to oversee the processing of cannabis applications through the entitlement and permitting process. All existing and new applicants will be assisted throughout the process until annual licensure (State) and regulatory permitting (local) is confirmed complete. When starting this process, TSEC will create a database of all current and prospective license holders and applicants to ensure that all applicant data is up-to-date. Applicants will then be introduced to the program, informed of the next steps in the process, and provided with the correct tools to provide the City of Desert Hot Springs with accurate operational and applicant information (operating procedures, real estate, CEQA status, utility usage, etc.). The information gathered during this phase will directly shape the training materials, templates, and standard operating procedures used to inform the decisions around improving the applicant process experience.

Throughout this “discovery” phase, all aspects of licensing, permitting, city-provided educational materials, and processes will be evaluated with the intention to provide recommendations to make the overall process more streamlined and efficient. All city processes, permitting programs, software, and education materials will be cross-referenced against TSEC’s established operating procedures, practices, and prior case studies.

TSEC is well versed in training programs, with of focus on easy-to-understand materials and the most up-to-date information. TSEC prides itself on understanding the deep intricacies of the cannabis industry, while encouraging sensible policy and regulation.

As the project timeline moves forward, TSEC will continue to work with the applicants, operators, and City staff to ensure that all aspects of cannabis business licensing are addressed. All pending, expired, and/or new cannabis applications and licensees will be updated and processed from beginning to end.

Throughout the life of the project, TSEC will focus on processing CEQA requests, analysis, reviews, technical studies, and lead agency determinations, Project Plan
Proposed steps to successfully complete the project are as follows:

Day One
Overview of City ordinances, policy, and protocols on day one.

Coordinate discovery meetings to identify all applicants, stakeholders, and decision makers within the City of Desert Hot Springs.

Week One
Review all current applicants in the queue for training, licensing or support.

Discover the pain points and urgent needs of both the City and applicants within the first week of project kickoff.

Develop a roadmap for standard operating procedures, licensing timelines, and applicable processes. These documents are to be considered “living” and will change as more efficient or effective processes are discovered and implemented.

Develop all quality control standards.

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Month One
Review the City’s current software database for tracking of all the City’s cannabis licenses. Analyze the software for any potential upgrades or improvements.

Begin to analyze existing online tools and resources for cannabis applicants. Create a roadmap for the development of new tools and resources as required (subcontractor may be used for software development or web development work). Discover and report any methods of streamlining or improving these tools.

Months 2-6
Review the City’s current software database for tracking of all the City’s cannabis licenses.

Analyze the software for any potential upgrades or improvements.

Evaluate the needs of all provisional license holders.

Gather all relevant operational data and proposed project information from all applicants.

Months 6-12
Develop a comprehensive and interactive Geographical Information System (GIS) map with cannabis related projects, business parks, and historical geographical information (subcontractor may be used for software development work).

Continue to evaluate the needs of all provisional license holders.

Continue to assist applicants with provisional to annual licensing.

Continue to gather all relevant operational data and proposed project information from all applicants.

Year 1 (Q2 2024 - Q2 2025)
Successfully communicate with every applicant, all operational and CEQA information requests complete.

Perform quarterly progress updates to inform City leaders on the status of all applicants, pain points, and wins.

Continue to evaluate the needs of all provisional license holders.

Continue to assist applicants with provisional-to-annual licensing.

Begin development of standard operating procedures, training materials, and business process models.

Submit relevant CEQA and application information on behalf of the applicant to obtain annual licensure.

Successfully process every applicant/license in the City. At minimum, all applicants shall have CEQA documentation completed and submitted to the DCC.

Develop business process models and standard operating procedures to guide City staff when developing addendums and CEQA documentation in the future.

Continue to create training materials for the City of DHS pertaining to CEQA documentation, addendum creation, and annual licensure.

Schedule training delivery for all relevant City team members.

The following tasks will be completed daily through the life of the project:

Process and update all pending, expired, and/or new cannabis applications and licensees from beginning to end.

Coordinate meetings with cannabis licensee applicants, reviewing all cannabis applications.

Complete and/or review California Environmental Quality Act (CEQA) technical studies.

Complete and/or review CEQA analysis and reporting.

Process all required local and State public noticing.

Process applications through all public hearings through drafting staff reports and giving presentations.

Assist applicants in submitting all State requirements for State cannabis licenses.

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Monitor and maintain all databases related to tracking the status of all provisional DCC licenses.

Continue to develop and refine internal processes, materials, and templates related to CEQA requirements for cannabis projects.

Communicate with all cannabis operators regarding DCC licensing, environmental studies, documents, and CEQA related processes.

Communicate with City Staff on the state of City cannabis facility licensing.

Meet with city staff as required or requested to discuss any relevant changes to cannabis facility operations including receivership, revocation, suspension or enforcement actions. All licensing priorities will be adjusted per city staff needs and/or recommendations.

Review and complete CEQA analysis and reporting as required.

Assist all applicants in submitting all State requirements for State cannabis licenses as required.

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On-Site Presence
The City of Desert Hot Springs is expecting the TSEC to dedicate a minimum of 40 hours per week of work on the project. TSEC can remain on-site full time (up to 40 hours per week) as required by the City, based on the workload and project needs. TSEC will transition to a hybrid-remote role to complete the required scope in an efficient manner as possible, remaining at the minimum of 40 hours per week for the remainder of the life of the project, unless otherwise increased and agreed upon.

Remote work will be utilized as much as possible to reduce the overall cost of reimbursement, travel, etc. Additional remote hours may be used if project deadlines determine more hours are required for project completion.

TSEC is willing to make accommodations to work on-site as required by City leadership.

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4. Consultant Resume
Andrew Mieure

EXPERIENCE
2016 – PRESENT

OWNER/LEAD CONSULTANT, TS ELITE CONSULTING LLC
Provides strategy, guidance and consulting for highly regulated businesses; with a focus on licensing, compliance, risk mitigation, SOPs, operations, and government relations.

Notable Clients / Projects:

California City Government (2023 - 2024)
Assisted a local California based City government agency with managing DCC provisional-to-annual licensing, CEQA compliance, local permitting, internal training material creation, and applicant/operator database management.

State of New York Workforce Development (In Partnership with Cornell University) Developed cannabis-specific education materials, training materials, training videos, and standard operating procedures for cannabis license applicants/operators within the State of New York. Content was provided to applicants/operators at no cost via State grant programs.

East River Farms LLC (South Dakota, 2021)
Won (1) Dispensing License (3500 Sq. Ft)
Was the lead application technical writer and project manager on all submitted competitive medical cannabis applications. Developed a full business plan, competitive application for a medical cannabis dispensary in the city of Sioux Falls, South Dakota.

Genesis Farms LLC (South Dakota, 2021)
Won (5) Dispensing Licenses, (1) Manufacturing License and (1) Cultivation License With (10) Licenses Submitted Assisted with developing full business plans, competitive applications, site design and full on-site training for a medical cannabis dispensaries, manufacturing facilities and a cultivation facility in numerous cities all over South Dakota. Genesis farms is poised to be the largest operator in South Dakota.

GVG (Illinois, 2020) – Submitted (18) High Scoring Dispensing Applications, Won (1) Manufacturing/Infuser License, Won (2) Transporter/Delivery Licenses, Submitted (2) Craft Grow Applications With High Scores Was the lead application technical writer on all submitted competitive adult-use applications. I assisted with project management, security plan development, business plan development, facility concepting, site design and full company-wide training for cannabis dispensaries, manufacturing facilities and a craft grow facility in numerous regions in Illinois. GVG is currently preparing for a 2022 infused cannabis products facility launch. 2017 – PRESENT

DIRECTOR OF OPERATIONS/PARTNER, CANNECT HOSPITALITY
Assist with building the best cannabis-focused food and beverage, entertainment and nightlife brands and venues in Las Vegas. Cannect’s members have developed, managed and owned hospitality venues within MGM Resorts, The Cosmopolitan of Las Vegas, Station Casinos, Starwood Resorts and Morgans Hotel Group properties.

Cannect's Executive Team has been working with and writing applications for state and local governments in Colorado, California, Illinois, Michigan and Nevada to introduce sensible regulations, compliant SOPs and responsible safe-serving practices regarding the social consumption of cannabis since 2014.

Notable Clients / Projects:

Large Vertical MSO Operator - $312M+ Revenue (Under NDA Until Launch - Las Vegas, Nevada) Assisted with cannabis lounge concepting, operations, standard operating procedures, staff training, business management, security, application support, regulatory lobbying and end-to-end services regarding cannabis hospitality. Project/venue expected to launch in 2025.
420 Hotels Inc. Hotel and Lounge (Denver, Colorado) – Awarded State Licensure Assisted ownership with development and submission of state and local cannabis hospitality applications, operating procedures, and best practices. Venue is expected to open in 2025.

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2014 – 2024

OWNER/FOUNDER, TOP SHELF BUDTENDING
Over the past eight years, Top Shelf Budtending, has successfully served 80,000 consumers, spanning six adult-use legal marijuana states. My business has implemented proven principles and techniques with cutting edge cannabis science, unforgettable services, conscious serving practices and peerless consumer education to develop the world’s foremost trusted cannabis events and mobile budtending service.

EDUCATION
2009 – 2013
BACHELOR OF FINE ARTS, THE UNIVERSITY OF FINDLAY (FINDLAY, OHIO) GPA – 3.62 (Cum Laude) SKILLS
Licensing and Technical Writing:

Licensing Technical Writing
Business Plans
Recordkeeping Plans
Security Plans
Standard Operating Procedures
Handbook Development
Conceptual Documents
Supply Chain Planning
Inventory Management Planning
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Staff Training
General Operations
Management Agreements
Staffing
Emergency Prevention
Life Safety Protection
Equipment Selection
Conceptual Design
Safety Protocols and Training
Minor Entry Prevention
Diversion Prevention
Cash Handling
Product Security
Product Safety
Advertising
State and Local Compliance
Inventory Procedures
METRC / State Track and Trace Software
Cannabis Hospitality Establishments (Lounges):

Food and Beverage Programs
Venue Location Scouting
Competitive Analysis
Site Analysis
Market Research
Emergency Response Planning
Worker Safety Plan (OSHA)
Customer Relations Plan (CRM)
Quality Management Plan (QA/QC)
Patient/Customer Management Plan
Environmental Planning
Purchasing Plan Creation
Online and Social Media Planning
Transportation Planning
Production Planning
Packaging and Labeling Plan Creation
Waste Destruction/Disposal Plan Creation
Loss Prevention and Anti- Diversion Planning
Supply Chain and Vendor Management Planning
Advertising and Marketing Plan Creation
Risk Mitigation Analysis

MEDIA FEATURES
Television:

CNN

VICELAND
Bravo Network
Online and Print Media:

Forbes
Fortune
FOX News
CNN
MSNBC
Rolling Stone
Newsweek
High Times
HERB
Compliance & Government:

CEQA Compliance (CA)
DCC License Submission & Compliance (CA)
Environmental Studies
Cannabis License Permitting Processes
METRC
License Database Management
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5. Recommended Sub-Contractors
TS Elite Consulting LLC has access to a large, reliable network of world class partners, subject matter experts, and sub-contractors. In the case of this project, TSEC is expecting to perform and fulfill all of the requirements included in the proposed scope of service without the need to hire sub-contractors.

If there is a portion of the scope that cannot be completed by TSEC, the City of Desert Hot Springs and the relevant points of contact will be notified in writing so that there can be an agreement and vetting process prior to retaining any sub-contractor.

Sub-contractor list will be made available upon request.

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6. Consultant Similar Work Experience
California / City Government Specific:

TS Elite Consulting LLC has experience with the previous project, which included a similar scope to the current, updated City of Desert Hot Springs project.

Similar tasks, milestones, and completed objectives related to this project include:

Created and maintained a full database of all applicants and operators within the City.

Assisted with managing DCC provisional-to-annual licensing, Communicated with stakeholders, owners, and operators daily, weekly, and monthly to ensure licensing status and task completion.

Communicated with Department of Cannabis Control Agents to ensure correct, acceptable documentation.

Frequently communicated with the Department of Cannabis Control Agents to ensure that the list of provisionally licensed and annually licensed operators was updated correctly and promptly.

Created CEQA addendum documentation that updated previously filed MND documentation.

Reviewed and analyzed 3rd party environmental studies submitted by applicants and operators, which were submitted to the City for approval.

Performed updated CEQA reviews on applicant and operator MND documentation.

Uploaded applicable CEQA documentation to the State Clearinghouse Portal for public review, as required. (Addendums are not required to be uploaded to the Clearinghouse Portal, per DCC guidance)
Ensured that new applicants and current operators understood CEQA compliance, with regard to cannabis business licensing.

Assisted with the local permitting and entitlement programs with the City.

Developed internal training materials, which included standard operating procedures, flowcharts, and how-to documents. and applicant/operator database management.

Worked with the City planning department on updating all associated GIS maps and APN(s) related cannabis business parks in the city.

Began the process of working with a 3rd party company on GIS mapping and publicfacing database creation to ensure transparent views of license status, associated APN(s), cannabis business parks, and project locations.

Performed entitlement tasks of a California Lead Agency to process all CEQA addendums, notices of determination, conditional use permits, notice of exemption, and other relevant licensing requirements.

Provided City staff with daily, weekly, bi-weekly, monthly, and quarterly updates on the status of all applicants and operators within the city.

Worked with the City to understand priorities surrounding licensing, Informed all relevant City staff on the status of receiverships, revocations, provisional licenses and annual licenses with a full developed database.

Transitioned 30+ licenses from provisional to annual status in less than 10 months.

Educated City staff, licensees, and applicants on the California cannabis licensing process, and specifically the CEQA process,
Continued to seek guidance from the Department of Cannabis Control related to CEQA review, provisional-to-annual licensing, lead agency documentation, best practices, and regulatory compliance.

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6.1 Consultant Similar Work Experience
Cannabis / Licensing Specific:

TS Elite Consulting LLC has a proven track record within the cannabis industry, specifically, with projects that are similar in scope to the Desert Hot Spring project.

Additional similar work experience includes:

Assisted local California based City government agency with managing DCC provisional-to-annual licensing, CEQA compliance, local permitting, internal training material creation, and applicant/operator database management.

Assisted 100+ clients with cannabis business licensing and application services within 20 states in the United States and 6 counties internationally.

Assisting applicants, operators, and local government in the State of California with CEQA compliance, cannabis application processing, operational data preparation, state and local compliance review, technical study review/completion, public noticing, staff reporting, and provisional-to-annual license approval processing.

Developed cannabis-specific education materials, videos, and standard operating procedures for the New York State Workforce Initiative in collaboration with Cornell University.

Assisted law firms in New York City with providing recommendations, public comment, testimonials, and drafted example regulatory framework for submission to the State of New York Office of Cannabis Management (OCM).

Drafted full ordinance and regulatory set for cannabis consumption lounge license types for the County of Monterey, California.

Provided recommendations, public comment, testimonials, and drafted example regulatory framework for the State of Nevada Cannabis Control Board (CCB) regarding cannabis consumption lounges.

Successfully opened Las Vegas’ first cannabis consumption lounge “Smoke and Mirrors.” During the life of the project we provided world-class standard operating procedures, application support, compliance support, and post-operation auditing services.

Provided application services to all available vertical license types within the cannabis industry (dispensary, lounge, delivery/transport, manufacturing, cultivation, and distribution), resulting in dozens of awarded licenses in some of the most competitive markets in the United States.

Drafted federal cannabis manufacturing, cultivation, and distribution applications for a client in Costa Rica. This project included creating and confirming phytosanitary certificates for importing seeds into the country, Federal compliance with regulations in Costa Rica, creating operating procedures in compliance with EU GMP, packaging and labeling of medical products, and complying with worldwide export laws.

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7. Proposed Available Schedule
The following TSEC available schedule includes:

Day 1
Start work on the scope of services immediately upon contract award.

Week 1
Introductions with City leaders and decision makers.

Develop a roadmap for assisting applicants with licensing.

Month 1-3
Work on-site during the first three months to gain a deep understanding of City processes, ordinances, and procedures.

Provide applicants with licensing, CEQA, and permitting support.

Begin analysis of City systems and licensing software platforms.

Month 3-6
Continue to evaluate the needs of all provisional license holders.

Continue to assist applicants with provisional-to-annual licensing.

Begin development of standard operating procedures, training materials, and business process models.

Submit relevant CEQA and application information on behalf of the applicant to obtain annual licensure.

Month 6-12
Successfully process every applicant/license in the City. At minimum, all applicants shall have CEQA documentation completed and submitted to the DCC.

Develop business process models and standard operating procedures to guide City staff when developing addendums and CEQA documentation in the future.

Continue to create training materials for the City of DHS pertaining to CEQA documentation, addendum creation, and annual licensure.

Schedule training delivery for all relevant City team members.

Fix any issues that arise from the licensing process.

Wok with the City of Desert Hot Springs to identify and solve any additional issues.

The full project plan and project timeline can be located in section 3.1, page 04 of this proposal.

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8. Additional Recommendations
Insurance
TS Elite Consulting LLC shall retain (upon selection as a contractor) and continue to carry all required insurance policies per California State law, California Labor Code, and City of Desert Hot Springs requirements.

All insurance documentation will be provided upon selection of contractor.

TSEC does not have any additional recommendations beyond what has already been presented and addressed in this proposal. Any additional recommendations that are discovered when executing the included scope of services will be reported to the City of Desert Hot Springs.

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8. Fee Proposal
TS Elite Consulting LLC proposes hybrid onsite-remote support for (40) hours per week minimum, up to (60) hours per week for (1) year (June 2024 - June 2025), with additional hours and funds (contingency) allotted for additional working hours to ensure that all applicants and operators are transitioned from provisional to annual licenses (as required and approved). Due to communication lapses, tight deadlines and implications of failing to transition operators to annual licenses, it is estimated that Q1 and Q2 of 2025 will require a heavier hourly workload related to the licensing process and monitoring of applicants.

Based on the original, accepted proposal from AM LLC, only up to (30) hours per week were being dedicated to work associated with the scope on this project. We propose increasing the minimum dedicated working hours to (40) per week, with an available (60) per week as required to fulfill the project scope fully.

Due to the higher estimated workload and strict DCC deadlines throughout Q3/Q4 2024 and Q1/Q2 2025, the proposed funding has been budgeted for additional working hours and subcontractors as needed (up to 60 hours per week).

TS Elite Consulting’s proposed budget for full completion of this scope is $450,000 annually with a contingency of $50,000 (11%) for any additional/unforeseen work, during the remaining (1) year. Contingency funds, and any remaining funds in the grant can be negotiated if an extension is required based on applicant workload and DCC deadlines in Q3 and Q4 of 2025.

Fee payment structure is broken down into 12 equal payments of $37,500 per month, with an hourly pay rate from $156.25 - $234.38 and $78.12 - $117.19 based on the amount of contractors working on the project and total hours worked. The fee can be adjusted up or down depending on the required workload, timeline, and associated agreements. No additional fees will be charged to the City of Desert Hot Springs if subcontractors are utilized.

The following chart shows the financial (fee) breakdown for the proposed project:

TS ELITE CONSULTING LLC - PROJECT FEE PROPOSAL (WITH ESTIMATED HOURS) ANNUAL FEE $450,000 EST. Total Hours = 2280
MONTHLY FEE $37,500 EST. Total Hours = 160 - 240

HOURLY FEE
(1 CONTRACTOR)
$156.25 - $234.38
Fee Per Hour Varies Based on
Hours Worked Per Week

HOURLY FEE
(2 CONTRACTORS)
$78.12 - $117.19
Fee Per Hour Varies Based on
Hours Worked Per Week
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8.1 Fee Proposal Comparison
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The previous project was approved on the following terms:
“This contract is for $230,000 per year, with a contingency of $46,000 (20%), which brings a total budget of $276,000 per year, for a two-year term.” The previous project was approved with the understanding that only (30) hours would be dedicated to the project per week.

AM LLC - PREVIOUSLY ACCEPTED FEE PROPOSAL (WITHOUT CONTINGENCY) YEAR 1 (2024) YEAR 2 (2025) PROJECT TOTAL
$230,000 $230,000 $460,000

AM LLC - PREVIOUSLY ACCEPTED FEE PROPOSAL (WITH CONTINGENCY) YEAR 1 (2024) YEAR 2 (2025) PROJECT TOTAL
$276,000 $276,000 $552,000
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8.2 Fee Proposal Comparison (Cont.)
R FP: C O N S U L T A N T PL A N N I N G , E N V I R O N M E N T A L , A N D G IS SE R V ICES F O R C A N N A B IS A PPL IC A T I O N S 1 7 Current Project Fee Proposal Structure (TS ELITE CONSULTING LLC) “TS Elite Consulting’s proposed budget for full completion of this scope is $450,000 annually with a contingency of $50,000 (11%) for any additional/unforeseen work, during the remaining (1) year.”
TS Elite Consulting LLC is proposing a minimum of (40) hours per week with a total of (60) hours per week available for working labor to ensure full completion of the project scope.

Based on hours made available to the City of Desert Hot Springs for working labor, the city could see an increase in 10-30 additional hours per week with this proposed fee and working hours structure.

TS ELITE CONSULTING LLC - 2024/2025 FEE PROPOSAL (WITHOUT CONTINGENCY) YEAR 1 (Q2 2024 -> Q2 2025) PROJECT TOTAL
$450,000 $450,000
TS ELITE CONSULTING LLC - 2024/2025 FEE PROPOSAL (WITH CONTINGENCY) YEAR 1 (Q2 2024 -> Q3/Q4 2025) PROJECT TOTAL
$500,000 $500,000
Item Number: 10.

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PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND
_______________________________
This Professional Services Agreement (“Agreement”) is made and entered into this _____ day of ___________, 20____, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the “City,” and ___________________________, a ________________________, hereinafter referred to as “Contractor.” RECITALS:

WHEREAS, the City desires to utilize the services of Contractor, as an independent contractor, to provide the City with ________________________________ (sometimes hereinafter, the “Services”), as described in more particularity in Exhibit “A,” attached hereto and incorporated by reference as the “Scope of Services”; and WHEREAS, Contractor 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 PARTIES 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
Contractor shall provide to the City the Services on an as-needed and as-directed basis in a manner satisfactory to the City and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions, as described in more detail in the Scope of Services. In the event a conflict exists between this Agreement and the Scope of Services, the former shall supersede. Except where this Agreement specifically provides otherwise, the Contractor is responsible for providing any and all facilities, assets, and resources (including personnel, facilities, equipment, and software) necessary and appropriate for delivery of the Services and to meet the Contractor's obligations under this Agreement.

Any City assets to which access is being provided for use by the Contractor (including equipment, software licenses and third party service contracts) are provided on an “as is, Item Number: 10.

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where is” basis, and the City does not provide the Contractor any representations or warranties regarding such assets.

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 Contractor for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Contractor agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, a total amount not to exceed TWO HUNDRED AND SIXTY-FIVE THOUSAND
Dollars and Zero cents ($265,000) per year, with an additional TWENTY-FIVE THOUSAND Dollars and Zero cents ($25,000) for additional services requested by the City.

Section 5. METHOD OF PAYMENT
a. Contractor shall submit invoices to the City, not more often than once a month, describing the work performed. Contractor’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 Contractor 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 Contractor shall submit invoices under this Agreement to:

City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
Item Number: 10.

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Section 6. EXTRA WORK
At any time during the term of this Agreement, the City may request that Contractor 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.

Contractor 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, Contractor shall be entitled to compensation for services performed up to the effective date of termination, provided that Contractor 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 Contractor, 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 Contractor for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Contractor or to any other party. Contractor 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 Contractor in connection with the performance of this Agreement shall be held confidential by Contractor. Such materials shall not, without prior written consent of the City, be used by Contractor 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. Contractor will make all reasonable efforts to keep such information confidential and to limit access only to those who require it for performance, Nothing furnished to Contractor that is otherwise known to Contractor, is generally known in the industry, or has become known to the related industry shall be deemed confidential. b. Contractor shall not use the City’s insignia or photographs relating to Contractor’s Services, or any publicity pertaining to the Contractor’s Services under this Item Number: 10.

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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. CONTRACTOR’S BOOKS AND RECORDS
a. Contractor 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 Contractor pursuant to this Agreement. b. Contractor 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 Contractor’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 Contractor’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 Contractor, Contractor’s representatives, or Contractor’s successorin-interest.

Section 11. INDEPENDENT CONTRACTOR’S STATUS: NOT AGENT

OF THE CITY
Contractor 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 Contractor or any of Contractor’s employees, except as herein set forth. Contractor shall be entirely responsible for the compensation and control of any assistants, employees, and subcontractors used by Contractor in providing said services. Nothing contained in this Agreement shall be deemed, construed or represented by the City or Contractor or by any third person to create the relationship of principal and agent and Contractor shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. Contractor shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent, nor shall Item Number: 10.

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Contractor 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 CONTRACTOR
a. Contractor represents and acknowledges the following:
(1) The City is not required to provide any training or legal counsel to Contractor or its employees for Contractor 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 Contractor 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 Contractor to perform the services described in this Agreement. (6) Contractor 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 and will so instruct its officers, employees and/or agents.
b. The City represents and acknowledges the following:
(1) Contractor is not required to comply with daily instructions from City staff with respect to when, where or how Contractor must perform the services set forth in this Agreement.
(2) Contractor is solely responsible for determining who, under the supervision or direction of Contractor, will perform the services set forth in this Agreement. (3) The City will not hire, supervise or pay any assistants working for Contractor pursuant to this Agreement.
(4) Nothing in this Agreement shall be interpreted to imply that the Contractor must maintain any contractual relationship with the City on a continuing basis after termination of this Agreement.

Item Number: 10.

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(5) It is the sole responsibility of Contractor to set the hours in which Contractor performs or plans to perform the services set forth in this Agreement subject to hours of access.
(6) Contractor is not required to devote full time to the business operations of the City to perform the services set forth in this Agreement. (7) Contractor 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 Contractor from working for other persons or firms, provided that such work does not create a conflict of interest.
(9) Contractor is not required to perform the Services at City-owned property.
(10) Contractor will perform services that are outside the usual course of the City’s business.

Section 13. CIVIL CODE SECTION 1542 WAIVER
Contractor 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 that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”
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. Contractor further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
__________
Initials
Section 14. CONFLICTS OF INTEREST
a. Contractor (including principals, associates and professional employees) covenants and represents that it does not have any investment or interest in real property Item Number: 10.

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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 Contractor’s services hereunder.

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

LICENSES
Item Number: 10.

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a. Contractor 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, Contractor 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 Contractor 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 Contractor’s risk until written instructions are received from the City Manager or appropriate City representative. d. Contractor 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
Contractor shall comply with all local, state and federal laws and regulations applicable to the services required hereunder.

Section 17. INDEMNIFICATION
a. Contractor shall defend, indemnify and hold harmless the City, its 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 officials, agents, employees or volunteers.
b. The City does not, and shall not, waive any rights that it may have against Contractor 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 Item Number: 10.

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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, Contractor 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 Contractor’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 Contractor’s control, or for which Contractor is without fault. d. In the event that Contractor or any employee, agent, or subcontractor of Contractor 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, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Contractor 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. e. If Contractor should subcontract all or any portion of the work to be performed under this Contract, Contractor shall require each subcontractor to indemnify, hold harmless and defend City and each of its officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph. f. This Section shall survive termination or expiration of this Agreement.

Section 18. INSURANCE REQUIREMENTS
a. Policies. Contractor, at Contractor’s sole cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies:
(1) Worker’s Compensation Coverage. Contractor shall maintain Worker’s Compensation Insurance and Employers’ 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 and for Employers’ Liability Insurance in amounts not less than $1,000,000 each accident for bodily injury by accident, $1,000,000 policy limit for bodily injury by disease, and $1,000,000 each employee for bodily injury by disease. In addition, Contractor shall require each subcontractor to similarly maintain Worker’s Compensation Insurance and Employers’ 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 Contractor pursuant to this Agreement is not protected by the California State Worker’s Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Contractor has no employees performing work under this Agreement. Contractor 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.

Item Number: 10.

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(2) General Liability Coverage. Contractor 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. Contractor shall provide insurance on an occurrence, not claims-made basis.

Contractor 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. Contractor shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Contractor 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, Contractor shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Contractor 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. Contractor shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Contractor’s Services, whether such Services are performed by Contractor or by its employees, subcontractors, or subContractors, to the extent such persons other than Contractor are permitted to perform any of the Services under this Agreement. The amount of this insurance shall not be less than one million dollars ($1,000,000) per claim, and two million dollars ($2,000,000) in the aggregate.
b. Endorsements. Unless otherwise specified hereunder, each insurance policy required herein shall be with insurers possessing an A.M. 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 Contractor, including materials, parts or equipment furnished in connection with such work or operations.

Item Number: 10.

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(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. Contractor 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, Contractor 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 Contractor 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. Contractor shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. e. Imposition of Insurance Requirements. Provided the City gives its written consent for any persons other than Contractor to perform any part of the Services, Contractor agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Contractor enters into contracts or whom Contractor 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.

Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that coverage is provided in conformity with the requirements of this Section.

Item Number: 10.

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f. Maintain Coverages. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor 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 has been eliminated. g. Failure to Obtain Coverages. Contractor 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 it or any subcontractors or others involved in any way with the performance of Services, to the extent such is permissible under this Agreement, Contractor 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, Contractor shall provide written notice to the City either by facsimile and/or via certified mail, at Contractor’s earliest possible opportunity and in no case later than fifteen (15) calendar days after Contractor 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:

To Contractor:

City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
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.

Item Number: 10.

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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
If Contractor 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 Contractor pursuant to this Agreement; c. Retain a different Contractor to complete the Services that are not finished by Contractor.

Section 22. ENTIRE AGREEMENT
a. This Agreement supersedes any and all other agreements, either oral or written, between the City and Contractor 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 Item Number: 10.

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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 all parties.

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

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

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

Item Number: 10.

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

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

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

Section 30. PROHIBITED INTERESTS
Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor 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 Contractor, 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
Contractor 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); Item Number: 10.

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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, Contractor shall not refuse to hire or employ any such person or refuse to select any such person for a training program leading to employment, or bar or discharge any such person from employment or from a training program leading to employment, or otherwise discriminate against any such person in compensation or in terms, conditions, or privileges of employment.

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

Section 33. PRINCIPAL REPRESENTATIVES
a. ____________________, shall be Contractor's Principal Representative and the person responsible for undertaking, managing and supervising the performance of all of the Services for this Agreement. Contractor's Principal Representative's experience, knowledge, capability and reputation were a substantial inducement for the City to enter into this Agreement, and as such, for the purposes of performing the Services, the duties of Contractor's Principal Representative shall not be reassigned, without the express written consent of both parties.
b. ____________________, shall be the Principal Representative of the City for purposes of communicating with Contractor 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 Contractor, 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 Contractor 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. Contractor shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Contractor, and the equipment, materials, papers and other components thereof to prevent losses or damages.

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b. The performance of services by Contractor shall not relieve Contractor 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 Contractor.

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

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

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

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

Section 41. OTHER GOVERNMENTAL REGULATIONS
To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Contractor 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.

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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 Contractor shall survive any such termination.

Section 45. USE OF RECYCLED PRODUCTS
Contractor shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.

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

CITY OF DESERT HOT SPRINGS
_____________________________
_____________________________
Frank Luckino, City Manager
ATTEST:
_____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
_____________________________
Tuan-Anh Vu, City Attorney
_____________________________
_____________________________
N:\DHSO\0001-01 General\Doc\6051
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EXHIBIT “A”

SCOPE OF SERVICES
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May 23, 2024

REQUEST FOR QUALIFICATIONS/PROPOSALS
FOR

CONSULTANT PLANNING, ENVIRONMENTAL, AND GIS SERVICES FOR

CANNABIS APPLICATIONS
A. Introduction to Desert Hot Springs
The City of Desert Hot Springs, hereinafter referred to as the City, is one of the fastestgrowing cities within the Coachella Valley. The City of Desert Hot Springs was one of the first cities to permit cannabis production including cultivation, manufacturing, testing, and dispensaries. The City of Desert Hot Springs has processed many cannabis applications from beginning to end. To further streamline and expedite the application review and processing time, and further assist applicants in moving from the State Provisional licensees to State Annual licenses, the City will utilize the Department of Cannabis Control grant funds to hire consultant firms that will be dedicated to handling all cannabis applications and associated processing tasks.

B. Scope of Work and Tasks
The City of Desert Hot Springs is inviting proposals from qualified consulting firms, hereinafter called Consultants, to provide environmental, planning, and GIS services to the City in processing cannabis applications through the State provisional and annual licensing requirements. To be considered for this contract, firms must meet the qualifications and satisfy the requirements as stated in this Request for Qualifications (RFQ). The City seeks one or multiple consultant firms or a consultant firm with subconsultants that can accomplish the tasks and qualifications below related to cannabis applications going through the state licensing process.

Tasks and qualifications will include but are not limited to the following;

1. Maintain a database for tracking the status of the City’s provisional Department of Cannabis Control licenses.

2. Developing internal processes, materials, and templates for City Staff concerning CEQA requirements for cannabis projects.
11999 Palm Drive • Desert Hot Springs • CA • 92240
(760) 329-6411• www.cityofdhs.org

CITY OF DESERT HOT SPRINGS

CODE COMPLIANCE
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3. Develop comprehensive and interactive Geographical Information Systems (GIS) for cannabis-related projects, cannabis business parks, and related historical geographical information.

4. The Consultant shall complete the following weekly tasks:
a. Communicate with Cannabis Operators regarding DCC licensing, environmental studies, documents, and various CEQA-related processes.
b. Communicate with City Staff on the status of City Cannabis Facility licensing.
i. Track and estimate dedicated hours and workload to align with DCC provisional license deadlines.

1. Provide City Staff with quarterly updates on licensure progress and propose goals for the following quarter.
c. Meet with City Staff to discuss any relevant changes to cannabis facility operations including but not limited to, receivership, revocation, suspension, and enforcement actions.
i. Adjust licensing priorities based on City Staff
recommendations.
d. Complete and/or review CEQA analysis and reporting.
e. Assist applicants in submitting all State requirements for State cannabis licenses.

5. The consultant shall have knowledge and experience in planning principles, the California Environmental Quality Act (CEQA), entitlement and permitting processes.

C. Submission Requirements
Proposal Format:

1. Cover Letter

2. Consultant Portfolio

3. Consultant Organization Chart with Roles and Responsibilities

4. Consultant Resume(s)

5. Consultant sub-contractors and/or recommended sub-contractors

6. Consultant Similar Work Experience

7. Proposed Available Schedule

8. Additional Recommendations from the Consultant

9. Fee Proposal
Availability and Terms:

6. The scope of work will remain for 1 year with possible extensions.

7. Sample Professional Services Agreement with terms attached.

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Please submit your proposal via email with the subject “RFQ Consultant Planning, Environmental, and GIS Services for Cannabis Applications” to Christina Newsom Code Compliance Director, at [email protected] by 2:00 PM, June 20th, 2024.

An interview may be requested after proposals are received.

A contract will be awarded to the most qualified Consultant. Although price is in consideration, it is not the sole determining factor. The City reserves the right to select the appropriate firm based on the most qualified proposal.

If you have any questions regarding this Request For Proposal or would like to meet and discuss the Scope of Work prior to submitting a proposal, please contact, Christina Newsom, Code Compliance Director, at [email protected], or via phone at (760) 329-6411 ext. 265.

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SR-24-163
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 2, 2024
Department: Public Works
Prepared by: Nicholas Haecker, Public Works Director
Subject: Purchase of a Caterpillar Compact Track Loader with Brushcutter Attachment
RECOMMENDATION:

Approve the purchase of a Caterpillar Inc. Model: 249D3 Compact Track Loader with a Brushcutter attachment, in the FY 2023-24 budget for a total cost of $84,953.41, by utilizing a cooperative purchasing agreement to complete the purchase.

BACKGROUND:

Maintenance of the vegetation and overgrowth within the Public Right-of-Way is important for public safety, allowing for unobstructed views of traffic control signs and the beautification of the City. The City of Desert Hot Springs does have sections of the Public Right-of-Way without sidewalks.

Maintaining the vegetation and overgrowth in these areas allows a safer path of travel for pedestrians.

Currently the Public Works Department utilizes weed whips to maintain the vegetation and overgrowth within the Public Right-of-Way. This process is tedious and requires a lot of staff time, often only being able to accomplish minimal sections of the Public Right-of-Way. In an effort to be more efficient and productive with the maintenance of the Public Right-of-Way, Staff researched equipment that is designed to maintain vegetation and overgrowth. Staff reached out to multiple vendors, other agencies and contractors to identify what equipment they use.

The ultimate recommendation was the Caterpillar Compact Track Loader with the Brushcutter attachment. Staff were able to demo the Caterpillar Compact Track Loader with the Brushcutter attachment at the City’s Corporate Yard and agreed that this equipment does meet the needs of the maintenance of vegetation and overgrowth of the Public Right-of-Way.

DISCUSSION:

The Caterpillar Compact Track Loader is compliant with the State’s Environmental regulations. It includes an environmentally enclosed cab with A/C for employees’ safety. It comes with lights, back up alarm and back up camera for the public’s safety. It comes equipped with a 74” bucket and allows for multiple attachments.

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SR-24-163
The Brushcutter attachment has a cutting width of 72” and can cut vegetation up to 3” in diameter. It comes equipped with galvanized coil chains providing debris guarding in the front and rear areas to restrict flying debris and material.

Both the Caterpillar Compact Tack Loader and the Brushcutter attachment includes a 24 month/2,000 hours warranty and a 36 month/1,500 hours parts only warranty.

Sourcewell is a cooperative purchasing agency “Procurement conducted by, or on behalf of, one or more Public Procurement Units” as defined by the American Bar Association Model Procurement Code for State and Local Governments.

Sourcewell's analysts streamline the procurement process by developing RFPs and IFBs for national, competitive solicitations that meet or exceed local requirements. The rigorous process is continually refined to best meet the needs of participating agencies and allows Sourcewell to offer exceptional products from nationally acclaimed suppliers. Both the City of Desert Hot Springs and Caterpillar Inc. are members of Sourcewell.

On February 2, 2023, Sourcewell’s RFP closed for Medium Duty and Compact Construction Equipment with Related Attachments. Caterpillar Inc. submitted and was awarded the Medium Duty and Compact Construction Equipment with Related Attachments. Sourcewell’s contract with Caterpillar Inc. expires on April 17, 2027.

The Machine Sourcewell Discount rate is 21% off the sells price. This rate is the proposed amount in the Sourcewell RFP. Quinn Caterpillar gave the City of Desert Hot Springs an additional one-time discount rate.

FISCAL IMPACT:

The equipment’s sell price is $103,638.75. The Sourcewell sells prices is $81,874.61. The one-time discount rate offered by Quinn Caterpillar is an additional discount of $4,621.54. With tax the total cost for this equipment is $ 84,953.41.

Funding will come from FY 2023-24:
- 100-4266-41-41 $84,953.41
ATTACHMENTS:
1) Quote Cat 249D3 Enclosed with Brushcutter
2) 2024 Sourcewell Discount
3) Sourcewell RFP and Addendums-Med. Const
4) Sourcewell Caterpillar Contract
Item Number: 11.

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Quote 177526-02

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177526-02
Jun 24, 2024

CITY OF DESERT HOT SPRINGS
ATTN: ACCOUNTS PAYABLE
11999 PALM DRIVE
DESERT HOT SPRINGS, California 92240
Sourcewell Member # 26835
Attention: NICHOLAS HAECKER
Dear Sir,
We would like to thank you for your interest in our company and our products, and are pleased to quote the following for your consideration.

One (1) New Caterpillar Inc. Model: 249D3 Compact Track Loader including standard and optional equipment as listed below.

STOCK NUMBER: NS0022016 SERIAL NUMBER: 0WKD01108 YEAR: 2024 SMU: 2 We wish to thank you for the opportunity of quoting on your equipment needs. This quotation is valid for 30 days, after which time we reserve the right to re-quote. If there are any questions, please do not hesitate to contact me.

Sincerely,
Jose Farias
Machine Sales Representative
Phone 760.399.6404
Email [email protected]
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Quote 177526-02

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One (1) New Caterpillar Inc. Model: 249D3 Compact Track Loader including standard and optional equipment as listed below.

Standard Equipment

POWERTRAIN
Cat C2.2TA DI diesel engine Filter, cartridge type, hydraulic -Gross horsepower per SAE J1349 Filters, canister type, fuel 67 hp (50 kW) @ 2800 RPM and water separator 84,953.41
-Electric fuel priming pump Radiator / hydraulic oil
-Glow plugs starting aid cooler (side-by-side)
-Liquid cooled, direct injection Spring applied, hydraulically released, Air cleaner, dual element, radial seal parking brakes
S-O-S sampling valve, hydraulic oil Hydrostatic transmission

UNDERCARRIAGE
Dual flange front idler Suspension - independent torsion axle(4) Single flange rear idler Two speed motor

HYDRAULICS
ISO or H pattern controls: Electro/hydraulic hydrostatic Electro/hydraulic implement control transmission control

ELECTRICAL
12 volt electrical system -Gauge backlighting
80 ampere alternator -Two rear tail lights
Ignition key start / stop / aux switch -Dome light
Lights: Backup alarm
-LED work lights (2 front, 2 rear) Electrical outlet, beacon

OPERATOR ENVIRONMENT
Operator warning system indicators: Control interlock system, when operator -Air filter restriction leaves seat or armrest raised :
-Alternator output -Hydraulic system disables
-Armrest raised / operator out of seat -Hydrostatic transmission disables -Engine coolant temperature -Parking brake engages
-Engine oil pressure ROPS Cab, open, tilt up
-Glow plug activation Anti-theft security system w/6-button -Hydraulic filter restriction keypad
-Hydraulic oil temperature FOPS, Level I
-Park brake engages Top and rear windows
-Engine emission system Floormat
Gauges: fuel level and hour meter Interior rear view mirror Storage compartment with netting USB charging port
Ergonomic contoured armrest Horn
Adjustable joystick controls Hand (dial) throttle, electronic Item Number: 11.

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Quote 177526-02

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FRAMES
Lift linkage, vertical path Belly pan cleanout
Chassis, one piece welded Support, lift arm
Machine tie down points (6) Rear bumper, welded

OTHER STANDARD EQUIPMENT
Engine enclosure - lockable Heavy duty flat faced quick disconnects Extended life antifreeze (-37C, -34F) Split D-Ring to Route Work Tool Hoses Coupler, mechanical along side of left lift arm
Hydraulic oil level sight gauge Variable speed hydraulic cooling fan Radiator coolant level sight gauge Per SAE J818-2007 and EN 474-3:2006 and Radiator expansion bottle ISO 14397-1:2007
Cat ToughGuard TM hose
BRUSHCUTTER, BR118
Item Number: 11.

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Quote 177526-02

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MACHINE SPECIFICATIONS
249D3 COMPACT TRACK LOADER 568-4729
LANE 2 ORDER 0P-9002
CAB PACKAGE, PRO PLUS 568-4695
HYDRAULICS, PERFORMANCE (H2) 568-4568
CONTROL, ISO, PROP, WT 512-3998
LIGHTS, LED 495-1671
RUBBER BELT, DUAL/SINGLE IDLER 420-9760
ROPS, ENCLOSED WITH A/C (C3) 568-4597
DISPLAY, ADVANCED, LCD, BACK UP CAMERA 422-5565
FAN, COOLING, DEMAND 441-5939
QUICK COUPLER, HYDRAULIC 512-3749
SEAT,AIR SUSPENSION,CLOTH,HEAT 536-9738
FILM, TWO SPEED 568-4700
STANDARD RADIO(12V),BLUETOOTH 345-6180
TRACK,RUBBER,400MM(15.7 IN)BAR 420-9886
BATTERY,HD,DISCONNECT, 850 CCA 579-2412
REAR LIGHTS 356-6082
DOOR, CAB, POLYCARBONATE 545-6278
SEAT BELT, 3'' 542-6995
PRODUCT LINK, CELLULAR PL243 566-7115
CERTIFICATION ARR, P65 563-1163
INSTRUCTIONS, ANSI, USA 512-4447
COUNTERWEIGHT,MACHINE,EXTERNAL 420-9750
FILM, RIDE CONTROL, ANSI 422-3445
SHIPPING/STORAGE PROTECTION 0P-2266
HYDRAULIC OIL, STANDARD 601-4753
RIDE CONTROL 568-4499
INSTRUCTIONS, ENGLISH 580-1439
PACKING, CONTAINER 0P-0223
BUCKET-GP, 74'', BOCE 279-5373
BRUSHCUTTER, BR118 610-2690
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WARRANTY & COVERAGE
Standard Warranty: 24 MONTHS / 2,000 HOURS FULL MACHINE CSA 36 MO / 1,500 HOURS PARTS ONLY (INCLUDES SOS) - QUINN CVA SELL PRICE $103,638.75
Machine Sourcewell Discount (21%) ($21,764.14)
Addtln Discount One time Only ($4,621.54)
NET BALANCE DUE $78,843.07
SALES TAX (7.75%) $6,110.34
AFTER TAX BALANCE $84.953.41
2024 Sourcewell Contract#032119-CAT

PAYMENT TERMS
Cash Invoice Terms

CASH WITH ORDER
$84,953.41
F.O.B/TERMS:

Accepted by___________________________________ on ____________________ ______________________________
Signature
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Rev. 3/2022 Sourcewell RFP #020223
Medium Duty and Compact Construction Equipment with Related Attachments

Page 1 ends

RFP #020223

REQUEST FOR PROPOSALS
for
Medium Duty and Compact Construction Equipment with Related Attachments Proposal Due Date: February 2, 2023, 4:30 p.m., Central Time Sourcewell, a State of Minnesota local government unit and service cooperative, is requesting proposals for Medium Duty and Compact Construction Equipment with Related Attachments to result in a contracting solution for use by its Participating Entities. Sourcewell Participating Entities include thousands of governmental, higher education, K-12 education, nonprofit, tribal government, and other public agencies located in the United States and Canada. A full copy of the Request for Proposals can be found on the Sourcewell Procurement Portal [https://proportal.sourcewell-mn.gov]. Only proposals submitted through the Sourcewell Procurement Portal will be considered. Proposals are due no later than February 2, 2023, at 4:30 p.m. Central Time, and late proposals will not be considered.

SOLICITATION SCHEDULE
Public Notice of RFP Published: December 6, 2022
Pre-proposal Conference: January 4, 2023, 10:00 a.m., Central Time Question Submission Deadline: January 25, 2023, 4:30 p.m., Central Time Proposal Due Date: February 2, 2023, 4:30 p.m., Central Time Late responses will not be considered.

Opening: February 2, 2023, 6:30 p.m., Central Time
See RFP Section V.G. “Opening”
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Rev. 3/2022 Sourcewell RFP #020223
Medium Duty and Compact Construction Equipment with Related Attachments

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I. ABOUT SOURCEWELL
A. SOURCEWELL

Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that facilitates a competitive public solicitation and contract award process for the benefit of its 50,000+ participating entities across the United States and Canada. Sourcewell’s solicitation process complies with State of Minnesota law and policies, conforms to Canadian trade agreements (including Canadian Free Trade Agreement, Ontario-Quebec Trade and Cooperation Agreement, and Canada-European Union Comprehensive Economic and Trade Agreement, as applicable), and results in cooperative purchasing solutions from which Sourcewell’s Participating Entities procure equipment, products, and services.

Cooperative purchasing provides participating entities and suppliers increased administrative efficiencies and the power of combined purchasing volume that result in overall cost savings. At times, Sourcewell also partners with other purchasing cooperatives to combine the purchasing volume of their membership into a single solicitation and contract expanding the reach of contracted suppliers’ potential pool of end users.

Sourcewell uses a website-based platform, the Sourcewell Procurement Portal, through which all proposals to this RFP must be submitted.

B. USE OF RESULTING CONTRACTS
In the United States, Sourcewell’s contracts are available for use by:
• Federal and state government entities1;
• Cities, towns, and counties/parishes;
• Education service cooperatives;
• K-12 and higher education entities;
• Tribal government entities;
• Some nonprofit entities; and
• Other public entities.

In Canada, Sourcewell’s contracts are available for use by:
• Provincial and territorial government departments, ministries, agencies, boards, councils, committees, commissions, and similar agencies; • Indigenous self-governing bodies;
• Regional, local, district, and other forms of municipal government, municipal organizations, school boards, and publicly funded academic, health, and social service 1 Pursuant to HAR §3-128-2, the State of Hawaii, Department of Accounting and General Services, State Procurement Office, on behalf of the State of Hawaii and participating jurisdictions, has provided notice of its Intent to Participate in the solicitation as a participating entity.

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Rev. 3/2022 Sourcewell RFP #020223
Medium Duty and Compact Construction Equipment with Related Attachments

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entities referred to as MASH sector (this should be construed to include but not be limited to the Cities of Calgary, Edmonton, Toronto, Ottawa, and Winnipeg), as well as any corporation or entity owned or controlled by one or more of the preceding entities; • Crown corporations, government enterprises, and other entities that are owned or controlled by these entities through ownership interest; and • Members of the Canoe procurement group of Canada, and their partner associations:

Canoe members are regional, local, district or other forms of municipal government, school boards, publicly-funded academic, health and social service entities in Alberta and across Canada, as well as any corporation or entity owned or controlled by one or more of the preceding entities – as well as partner associations, including Saskatchewan Association of Rural Municipalities, Association of Manitoba Municipalities, Local Authorities Services/Association of Municipalities Ontario, Nova Scotia Federation of Municipalities, Federation of Prince Edward Island Municipalities, Municipalities Newfoundland Labrador, Union of New Brunswick Municipalities, North West Territories Association of Communities, CivicInfo BC, and their members.

For a listing of current United States and Canadian Participating Entities visit Sourcewell’s website (note: there is a tab for each country): https://www.sourcewell-mn.gov/sourcewell-forvendors/agency-locator.

Participating Entities typically access contracted equipment, products, or services through a purchase order issued directly to the contracted supplier. A Participating Entity may request additional terms or conditions related to a purchase. Use of Sourcewell contracts is voluntary and Participating Entities retain the right to obtain similar equipment, products, or services from other sources.

To meet Participating Entities’ needs, Sourcewell broadly publishes public notice of all solicitation opportunities, including this RFP. In addition, where applicable, other purchasing cooperatives and procurement officials receive notice and are encouraged to re-post the solicitation opportunity.

Proof of publication will be available at the conclusion of the solicitation process.

II. SOLICITATION DETAILS
A. SOLUTIONS-BASED SOLICITATION
This RFP and contract award process is a solutions-based solicitation; meaning that Sourcewell is seeking equipment, products, or services that meet the general requirements of the scope of this RFP and that are commonly desired or are required by law or industry standards.

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Rev. 3/2022 Sourcewell RFP #020223
Medium Duty and Compact Construction Equipment with Related Attachments

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B. REQUESTED EQUIPMENT, PRODUCTS, OR SERVICES
It is expected that proposers will offer a wide array of equipment, products, or services at lower prices and with better value than what they would ordinarily offer to a single government entity, a school district, or a regional cooperative.

1. Sourcewell is seeking proposals for Medium Duty and Compact Construction Equipment with Related Attachments, including, but not to limited to, the following types of medium and compact construction equipment:
a. Wheeled, tracked, and backhoe loaders;
b. Skid steers;
c. Mini excavators;
d. Telehandlers; and
e. Soil compaction and site preparation equipment.

Proposers may include related equipment, accessories, attachments, and services to the extent that these solutions are ancillary or complementary to the equipment, products, or services being proposed.

2. The primary focus of this solicitation is on Medium Duty and Compact Construction Equipment with Related Attachments. This solicitation should NOT be construed to include:
a. Construction services; and,
b. Equipment accessory, attachment, and supply only solutions.

3. This solicitation does not include those equipment, products, or services covered under categories included in pending or planned Sourcewell solicitations, or in contracts currently maintained by Sourcewell, identified below:
a. Mobile Refuse Collection Vehicles with Related Equipment, Accessories, and Services (RFP #091219)
b. Ag Tractors with Related Attachments, Accessories, and Supplies (RFP #110719) c. Equipment Rental with Related Services (RFP #062320) d. Forklifts and Lift Trucks with Related Services (RFP #091520) e. Grounds Maintenance Equipment, Attachments, Accessories, and Related Services (RFP #031121)
f. Road Right-of-Way Maintenance Equipment (RFP #070821) g. Roadway Maintenance Equipment (RFP #080521)
h. Street Sweepers and Specialty Sweepers, with Related Equipment, Accessories, and Supplies (RFP #093021)
i. Sewer Vacuum, Hydro-Excavation, and Municipal Pumping Equipment with Related Accessories and Supplies (RFP #101221)
j. Public Utility Equipment with Related Accessories and Supplies (RFP #110421) Item Number: 11.

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Rev. 3/2022 Sourcewell RFP #020223
Medium Duty and Compact Construction Equipment with Related Attachments

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k. Roadway Paving Equipment (RFP #060122)
l. Snow and Ice Handling Equipment, Supplies, and Accessories (RFP #062222) m. Trailers with Related Equipment, Accessories, and Services (RFP #092922) n. Heavy Construction Equipment with Related Attachments and Technology (RFP #011723) o. Portable Construction Equipment with Related Accessories and Attachments (RFP #TBD) Generally, the solutions for Participating Entities are turn-key solutions, providing a combination of equipment, products and services, delivery, and installation to a properly operating status. However, equipment-only or products-only solutions may be appropriate for situations where Participating Entities possess the ability, either in-house or through local thirdparty contractors, to properly install and bring to operation the equipment or products being proposed.

Sourcewell prefers suppliers that provide a sole source of responsibility for the equipment, products, and services provided under a resulting contract. If proposer is including the equipment, products, and services of its subsidiary entities, the proposer must also identify all included subsidiaries in its proposal. If proposer requires the use of distributors, dealers, resellers, or subcontractors to provide the equipment, products, or services, the proposal must address how the equipment, products or services will be provided to Participating Entities, and describe the network of distributors, dealers, resellers, and/or subcontractors that will be available to serve Participating Entities under a resulting contract.

Sourcewell encourages suppliers to offer the broadest possible selection of equipment, products, and services being proposed over the largest possible geographic area and to the largest possible cross-section of Sourcewell current and future Participating Entities.

C. REQUIREMENTS
It is expected that proposers have knowledge of all applicable industry standards, laws, and regulations and possess an ability to market and distribute the equipment, products, or services to Participating Entities.

1. Safety Requirements. All items proposed must comply with current applicable safety or regulatory standards or codes.

2. Deviation from Industry Standard. Deviations from industry standards must be identified with an explanation of how the equipment, products, and services will provide equivalent function, coverage, performance, and/or related services.

3. New Equipment and Products. Proposed equipment and products must be for new, current model; however, proposer may offer certain close-out equipment or products if it is specifically noted in the Pricing proposal.

4. Delivered and operational. Unless clearly noted in the proposal, equipment and products must be delivered to the Participating Entity as operational.

5. Warranty. All equipment, products, supplies, and services must be covered by a warranty that is the industry standard or better.

Item Number: 11.

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D. ANTICIPATED CONTRACT TERM
Sourcewell anticipates that the term of any resulting contract(s) will be four years, with an optional one-year extension that may be offered based on the best interests of Sourcewell and its Participating Entities.

E. ESTIMATED CONTRACT VALUE AND USAGE
Based on past volume of similar contracts, the estimated annual value of all transactions from contracts resulting from this RFP are anticipated to be USD $200 Million; therefore, proposers are expected to propose volume pricing. Sourcewell anticipates considerable activity under the contract(s) awarded from this RFP; however, sales and sales volume from any resulting contract are not guaranteed.

F. MARKETING PLAN
Proposer’s sales force will be the primary source of communication with Participating Entities.

The proposer’s Marketing Plan should demonstrate proposer’s ability to deploy a sales force or dealer network to Participating Entities, as well as proposer’s sales and service capabilities. It is expected that proposer will promote and market any contract award.

G. ADDITIONAL CONSIDERATIONS

1. Contracts will be awarded to proposers able to best meet the need of Participating Entities. Proposers should submit their complete line of equipment, products, or services that are applicable to the scope of this RFP.

2. A proposer may submit only one proposal. If related, affiliated, or subsidiary entities elect to submit separate proposals, rather than a single parent-entity proposal, each such proposal must be prepared independently and without cooperation, collaboration, or collusion.

3. If a proposer works with a consultant on its proposal, the consultant (an individual or company) may not assist any other entity with a proposal for this solicitation.

4. Proposers should include all relevant information in its proposal, since Sourcewell cannot consider information that is not included in the proposal. Sourcewell reserves the right to verify proposer’s information and may request clarification from a proposer, including samples of the proposed equipment or products.

5. Depending upon the responses received in a given category, Sourcewell may need to organize responses into subcategories in order to provide the broadest coverage of the requested equipment, products, or services to Participating Entities. Awards may be based on a subcategory.

6. A proposer’s documented negative past performance with Sourcewell or its Participating Entities occurring under a previously awarded Sourcewell contract may be considered in the evaluation of a proposal.

Item Number: 11.

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III. PRICING
A. REQUIREMENTS
All proposed pricing must be:

1. Either Line-Item Pricing or Percentage Discount from Catalog Pricing, or a combination of these:
a. Line-item Pricing is pricing based on each individual product or services. Each line must indicate the proposer’s published “List Price,” as well as the “Contract Price.” b. Percentage Discount from Catalog or Category is based on a percentage discount from a catalog or list price, defined as a published Manufacturer’s Suggested Retail Price (MSRP) for the products or services. Individualized percentage discounts can be applied to any number of defined product groupings. Proposers will be responsible for providing and maintaining current published MSRP with Sourcewell, and this pricing must be included in its proposal and provided throughout the term of any contract resulting from this RFP.

2. The proposer’s not to exceed price. A not to exceed price is the highest price for which equipment, products, or services may be billed to a Participating Entity. However, it is permissible for suppliers to sell at a price that is lower than the contracted price.

3. Stated in U.S. and Canadian dollars (as applicable).

4. Clearly understandable, complete, and fully describe the total cost of acquisition (e.g., the cost of the proposed equipment, products, and services delivered and operational for its intended purpose in the Participating Entity’s location).

Proposers should clearly identify any costs that are NOT included in the proposed product or service pricing. This may include items such as installation, set up, mandatory training, or initial inspection. Include identification of any parties that impose such costs and their relationship to the proposer. Additionally, proposers should clearly describe any unique distribution and/or delivery methods or options offered in the proposal.

B. ADMINISTRATIVE FEES
Proposers awarded a contract are expected to pay to Sourcewell an administrative fee in exchange for Sourcewell facilitating the resulting contracts. The administrative fee is normally calculated as a percentage of the total sales to Participating Entitiesfor all contracted equipment, products, or services made during a calendar quarter, and is typically one percent (1%) to two percent (2%). In some categories, a flat fee may be an acceptable alternative.

IV. CONTRACT
Proposers awarded a contract will be required to execute a contract with Sourcewell (see attached template). Only those modifications the proposer indicates in its proposal will be available for discussion. Much of the language in the Contract reflects Minnesota legal Item Number: 11.

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requirements and cannot be altered. Numerous and/or onerous exceptions that contradict Minnesota law may result in the proposal being disqualified from further review and evaluation.

To request a modification to the template Contract, a proposer must submit the Exceptions to Terms, Conditions, or Specifications table with its proposal. Only those exceptions noted at the time of the proposal submission will be considered.

Exceptions must:

1. Clearly identify the affected article and section.

2. Clearly note the requested modification; and as applicable, provide requested alternative language.

Unclear requests will be automatically denied.

Only those exceptions that have been accepted by Sourcewell will be included in the contract document provided to the awarded supplier for signature.

If a proposer receives a contract award resulting from this solicitation it will have up to 30 days to sign and return the contract. After that time, at Sourcewell’s sole discretion, the contract award may be revoked.

V. RFP PROCESS
A. PRE-PROPOSAL CONFERENCE
Sourcewell will hold an optional, non-mandatory pre-proposal conference via webcast on the date and time noted in the Solicitation Schedule for this RFP and on the Sourcewell Procurement Portal. The purpose of this conference is to allow potential proposers to ask questions regarding this RFP and Sourcewell’s competitive contracting process. Information about the webcast will be sent to all entities that have registered for this solicitation opportunity through their Sourcewell Procurement Portal Vendor Account. Pre-proposal conference attendance is optional.

B. QUESTIONS REGARDING THIS RFP AND ORAL COMMUNICATION
All questions regarding this RFP must be submitted through the Sourcewell Procurement Portal.

The deadline for submission of questions is found in the Solicitation Schedule and on the Sourcewell Procurement Portal. Answers to questions will be issued through an addendum to this RFP. Repetitive questions will be summarized into a single answer and identifying information will be removed from the submitted questions.

All questions, whether specific to a proposer or generally related to the RFP, must be submitted using this process. Do not contact individual Sourcewell staff to ask questions or request information as this may disqualify the proposer from responding to this RFP. Sourcewell will not respond to questions submitted after the deadline.

Item Number: 11.

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C. ADDENDA
Sourcewell may modify this RFP at any time prior to the proposal due date by issuing an addendum. Addenda issued by Sourcewell become a part of the RFP and will be delivered to potential proposers through the Sourcewell Procurement Portal. Sourcewell accepts no liability in connection with the delivery of any addenda.

Before a proposal will be accepted through the Sourcewell Procurement Portal, all addenda, if any, must be acknowledged by the proposer by checking the box for each addendum. It is the responsibility of the proposer to check for any addenda that may have been issued up to the solicitation due date and time.

If an addendum is issued after a proposer submitted its proposal, the Sourcewell Procurement Portal will WITHDRAW the submission and change the proposer’s proposal status to INCOMPLETE. The proposer can view this status change in the “MY BIDS” section of the Sourcewell Procurement Portal Vendor Account. The proposer is solely responsible to check the “MY BIDS” section of the Sourcewell Procurement Portal Vendor Account periodically after submitting its proposal (and up to the Proposal Due Date). If the proposer’s proposal status has changed to INCOMPLETE, the proposer is solely responsible to:
i) make any required adjustments to its proposal;
ii) acknowledge the addenda; and
iii) ensure the re-submitted proposal is received through the Sourcewell Procurement Portal no later than the Proposal Due Date and time shown in the Solicitation Schedule above.

D. PROPOSAL SUBMISSION
Proposer’s complete proposal must be submitted through the Sourcewell Procurement Portal no later than the date and time specified in the Solicitation Schedule. Any other form of proposal submission, whether electronic, paper, or otherwise, will not be considered by Sourcewell. Late proposals will not be considered. It is the proposer’s sole responsibility to ensure that the proposal is received on time.

It is recommended that proposers allow sufficient time to upload the proposal and to resolve any issues that may arise. The time and date that a proposal is received by Sourcewell is solely determined by the Sourcewell Procurement Portal web clock.

In the event of problems with the Sourcewell Procurement Portal, follow the instructions for technical support posted in the portal. It may take up to 24 hours to respond to certain issues.

Upon successful submission of a proposal, the Sourcewell Procurement Portal will automatically generate a confirmation email to the proposer. If the proposer does not receive a confirmation email, contact Sourcewell’s support provider at [email protected].

Item Number: 11.

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To ensure receipt of the latest information and updates via email regarding this solicitation, or if the proposer has obtained this solicitation document from a third party, the onus is on the proposer to create a Sourcewell Procurement Portal Vendor Account and register for this solicitation opportunity.

Within the Sourcewell Procurement Portal, all proposals must be digitally acknowledged by an authorized representative of the proposer attesting that the information contained in in the proposal is true and accurate. By submitting a proposal, proposer warrants that the information provided is true, correct, and reliable for purposes of evaluation for potential contract award.

The submission of inaccurate, misleading, or false information is grounds for disqualification from a contract award and may subject the proposer to remedies available by law.

E. GENERAL PROPOSAL REQUIREMENTS
Proposals must be:
• In substantial compliance with the requirements of this RFP or it will be considered nonresponsive and be rejected.
• Complete. A proposal will be rejected if it is conditional or incomplete. • Submitted in English.
• Valid and irrevocable for 90 days following the Proposal Due Date.

Any and all costs incurred in responding to this RFP will be borne by the proposer.

F. PROPOSAL WITHDRAWAL
Prior to the proposal deadline, a proposer may withdraw its proposal.

G. OPENING
The Opening of proposals will be conducted electronically through the Sourcewell Procurement Portal. A list of all proposers will be made publicly available in the Sourcewell Procurement Portal after the Proposal Due Date, but no later than the Opening time listed in the Solicitation Schedule.

To view the list of proposers, verify that the Sourcewell Procurement Portal opportunities list search is set to “All” or “Closed.” The solicitation status will automatically change to “Closed” after the Proposal Due Date and Time.

VI. EVALUATION AND AWARD
A. EVALUATION
It is the intent of Sourcewell to award one or more contracts to responsive and responsible proposers offering the best overall quality, selection of equipment, products, and services, and Item Number: 11.

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price that meet the commonly requested specifications of Sourcewell and its Participating Entities. The award(s) will be limited to the number of proposers that Sourcewell determines is necessary to meet the needs of its Participating Entities.

Factors to be considered in determining the number of contracts to be awarded in any category may include the following:
• Total evaluation scores (giving consideration to natural breaks in the scoring of responsive proposals);
• The number and geographic location of highest-scoring proposers that offer:
o A comprehensive selection of the requested equipment, products, or services; o A sales and service network ensuring availability and coverage for Participating Entities’ use; and
o Other attributes of the proposer or contents of its proposal that assist Participating Entities in achieving environmental and social requirements, and goals.

Information submitted as part of a proposal should be as specific as possible when responding to the RFP. Do not assume Sourcewell has any knowledge about a specific supplier or product.

B. AWARD(S)
Award(s) will be made to the highest-scoring proposer(s) whose proposal conforms to all conditions and requirements of the RFP, and consistent with the award criteria defined in this RFP.

Sourcewell may request written clarification of a proposal at any time during the evaluation process.

Proposal evaluation will be based on the following scoring criteria and the Sourcewell Evaluator Scoring Guide (a copy is available in the Sourcewell Procurement Portal):

Conformance to RFP Requirements 50
Financial Viability and Marketplace Success 75
Ability to Sell and Deliver Service 100
Marketing Plan 50
Value Added Attributes 75
Warranty 50
Depth and Breadth of Offered Equipment, Products, or Services 200 Pricing 400
TOTAL POINTS 1000
C. PROTESTS OF AWARDS
Any protest made under this RFP by a proposer must be in writing, addressed to Sourcewell’s Executive Director, and delivered to the Sourcewell office located at 202 12th Street NE, P.O.

Item Number: 11.

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Desert Hot Springs City CouncilJuly 2, 2024

Desert Hot Springs City Council
July 2, 2024