Agenda — Desert Hot Springs City Council, December 12, 2024 (part 9 of 16)

Patricia Villagomez, Principal Planner
City of Desert Hot Springs
September 13, 2024

Page 19 ends

appropriate nest buffer to be marked on the ground.

Nest buffers are species specific and shall be at least 300 feet for passerines and 500 feet for raptors. A
smaller or larger buffer may be determined by the
qualified biologist familiar with the nesting
phenology of the nesting species and based on nest
and buffer monitoring results. Construction activities
may not occur inside the established buffers, which
shall remain on-site until a qualified biologist
determines the young have fledged or the nest is no
longer active. Active nests and adequacy of the
established buffer distance shall be monitored daily
by the qualified biologist until the qualified biologist has determined the young have fledged or the Project
has been completed. The qualified biologist has the
authority to stop work if nesting pairs exhibit signs of disturbance.

Mitigation Measure BIO-[A]: Special-Status Plants
Prior to Project construction activities, a thorough,
recent, floristic-based assessment of special-status
plants and natural communities, following CDFW’s
Protocols for Surveying and Evaluating Impacts to
Special Status Native Plant Populations and Sensitive
Natural Communities (see
https://wildlife.ca.gov/Conservation/Plants) shall be
performed by a qualified biologist. Should any statelisted plant species (excluding CVMSHCP Covered Species) be present in the Project area, the Project
proponent shall obtain appropriate CESA
authorization for those species prior to the start of
Project activities. Should any species of native plants designated as rare, threatened, or endangered by
state law (excluding CVMSHCP Covered Species) be
present in the Project area, on-site or off-site habitat restoration (whichever is applicable) and/or
enhancement and preservation should be evaluated
and discussed in detail. Where habitat preservation is
not available on-site, off-site land acquisition,
management, and preservation should be evaluated.

Timing: Prior to
Project
construction
activities
Methods: See
Mitigation
Measure
Implementation:

City of Desert Hot
Springs and Project
proponent
Monitoring and
Reporting: City of
Desert Hot Springs
Mitigation Measure BIO-[B]: Burrowing Owl Surveys
Suitable burrowing owl habitat has been confirmed
on the site; therefore, focused burrowing owl surveys
shall be conducted by a qualified biologist according
to the Staff Report on Burrowing Owl Mitigation
(CDFG, 2012 or most recent version) prior to
Timing: Focused
surveys: Prior to
vegetation
removal or
ground-disturbing
activities. Preconstruction
Implementation:

City of Desert Hot
Springs and Project
proponent
Item Number: 1.

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Patricia Villagomez, Principal Planner
City of Desert Hot Springs
September 13, 2024

Page 20 ends

vegetation removal or ground-disturbing activities. If
burrowing owls are detected during the focused
surveys, the qualified biologist and Project
proponent shall begin coordination with CDFW and
USFWS immediately, and shall prepare a Burrowing
Owl Plan that shall be submitted to CDFW for review
and approval prior to commencing Project activities.

The Burrowing Owl Plan shall describe proposed
avoidance, minimization, mitigation, and monitoring
actions. The Burrowing Owl Plan shall include the
number and location of occupied burrow sites, acres
of burrowing owl habitat that will be impacted, details of site monitoring, and details on proposed buffers
and other avoidance measures. If impacts to
occupied burrowing owl habitat or burrow cannot be
avoided, the Burrowing Owl Plan shall also describe
minimization and relocation actions that will be
implemented. Proposed implementation of burrow
exclusion and closure should only be considered as
a last resort, after all other options have been
evaluated as exclusion is not in itself an avoidance,
minimization, or mitigation method and has the
possibility to result in take. If impacts to occupied
burrows cannot be avoided, information shall be
provided regarding adjacent or nearby suitable
habitat available to owls along with proposed
relocation actions. The Project proponent shall
implement the Burrowing Owl Plan following CDFW
and USFWS review and approval.

Preconstruction burrowing owl surveys shall be
conducted no less than 14 days prior to the start of
Project-related activities and within 24 hours prior to ground disturbance, in accordance with the Staff
Report on Burrowing Owl Mitigation (CDFG, 2012 or
most recent version). Preconstruction surveys
should be performed by a qualified biologist
following the recommendations and guidelines
provided in the Staff Report on Burrowing Owl
Mitigation. If the preconstruction surveys confirm
occupied burrowing owl habitat, Project activities
shall be immediately halted. The qualified biologist
shall coordinate with CDFW and prepare a Burrowing
Owl Plan that shall be submitted to CDFW and
USFWS for review and approval prior to commencing
Project activities.
surveys: No less
than 14 days prior
to start of Projectrelated activities
and within 24
hours prior to
ground
disturbance.

Methods: See
Mitigation
Measure
Monitoring and
Reporting: City of
Desert Hot Springs
Mitigation Measure BIO-[C]: Desert Tortoise Surveys
Prior to commencing Project activities, a focused
survey for desert tortoise shall be conducted by a
Timing: Focused
surveys: prior to
commencing
Project activities;
Implementation:

City of Desert Hot
Springs and Project
proponent
Item Number: 1.

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Patricia Villagomez, Principal Planner
City of Desert Hot Springs
September 13, 2024

Page 21 ends

qualified biologist, according to protocols in
Preparing for Any Action that May Occur within the
Range of the Mojave Desert Tortoise (USFWS 2019;
https://www.fws.gov/sites/default/files/documents/Mo
jave%20Desert%20Tortoise_Preproject%20Survey%20Protocol_2019.pdf). CDFW recommends working with USFWS and CDFW
concurrently to ensure a consistent and adequate
approach to planning survey work and that biologists
retained to complete desert tortoise protocol-level
surveys submit their qualifications to CDFW and
USFWS prior to initiation of surveys. If desert tortoise is found to be present, the qualified biologist shall
immediately notify CDFW and USFWS to determine
appropriate avoidance, minimization, and mitigation
measures.

No more than 14 calendar days prior to start of
Project activities and after any pause in Project
activities lasting 30 days or more, a qualified
biologist shall conduct pre-construction surveys for
desert tortoise as described in the USFWS 2019
desert tortoise survey methodology (Preparing for
Any Action that May Occur within the Range of the
Mojave Desert Tortoise;
https://www.fws.gov/sites/default/files/documents/Mo
jave%20Desert%20Tortoise_Preproject%20Survey%20Protocol_2019.pdf). Preconstruction surveys shall be completed using perpendicular survey routes and 100-percent visual
coverage for desert tortoise and their sign within the
Project area and 50-foot buffer zone. Pre-activity
surveys cannot be combined with other surveys
conducted for other species while using the same
personnel. Results of the surveys shall be submitted
to CDFW prior to construction start. If the preconstruction surveys confirm desert tortoise absence, the qualified biologist shall ensure desert
tortoise do not enter the Project area. Should desert
tortoise presence be confirmed during the survey,
the qualified biologist shall immediately notify CDFW
and USFWS to determine appropriate avoidance,
minimization, and mitigation measures.

Pre-construction
surveys: No more
than 14 calendar
days prior to start
of Project activities
and after any
pause in Project
activities lasting 30
days or more
Methods: See
Mitigation
Measure
Monitoring and
Reporting: City of
Desert Hot Springs
Mitigation Measure BIO-[D]: Desert Kit Fox
Preconstruction surveys for desert kit fox shall be
conducted within 14 days prior to the start of
construction. The survey area shall include the
Project disturbance areas plus a 500-foot buffer
during the breeding season (January 15 through
Timing:

Preconstruction
surveys: within 14
days prior to the
start of
construction
Implementation:

City of Desert Hot
Springs and Project
proponent
Item Number: 1.

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Patricia Villagomez, Principal Planner
City of Desert Hot Springs
September 13, 2024

Page 22 ends

August 31 or until pups are foraging on their own)
and a 250-foot buffer outside the breeding season.

Pre-construction surveys should include 100-percent
visual coverage of the Project area and buffers.

Potentially occupied burrows in Project disturbance
areas and the survey buffer shall be mapped, and
Qualified Biologist(s) shall utilize daily on-site
monitoring, tracking stations, and wildlife cameras to
determine whether the burrows are occupied. If a
burrow is determined to be occupied by desert kit fox
during the breeding season, the burrow shall be
demarcated with a 500-foot buffer. If a burrow is
determined to be occupied outside the breeding
season it shall be demarcated with a 250-foot buffer.

Burrows determined to be unoccupied shall be
demarcated with a 50-foot buffer. No disturbance of
active dens shall take place when juvenile desert kit
fox may be present and dependent on parental care.

Methods: See
Mitigation
Measure
Monitoring and
Reporting: City of
Desert Hot Springs
Mitigation Measure BIO-[E]: American Badger
No more than 30 days prior to the beginning of
ground disturbance and/or construction activities, a
Qualified Biologist(s) shall conduct surveys to
determine if potential American badger burrows are
present in the Project area. If American badger
burrows are located, the City of Desert Hot Springs
and Project sponsor shall have a Qualified
Biologist(s) monitor the burrows using observation
and tracking material and/or trail cameras over a
three (3) day period to determine the status of the
burrow. If non-natal active dens can be avoided and
buffered from Project activities, the biologist shall
flag a minimum 100-foot disturbance-free buffer zone.

A minimum 500-foot disturbance-free buffer shall be
placed around the natal den and maintained until
juvenile independence is determined by the biologist.

The biologist shall block inactive dens within the
work area or buffer zone that will not be directly
impacted by Project activities with rocks and sticks
to discourage use. The biologist shall periodically
check and ensure the inactive burrows remain
blocked and are not occupied. The biologist shall
remove the obstructions when Project activities are
complete. The biologist has the authority to halt or
stop work if individuals exhibit signs of disturbance.

Established buffers shall remain until the biologist
determines the young have dispersed or the den is
no longer active, or until Project activities cease. If American badger is proposed to be relocated from an
Timing: No more
than 30 days prior
to the beginning of
ground
disturbance and/or
construction
activities
Methods: See
Mitigation
Measure
Implementation:

City of Desert Hot
Springs and Project
proponent
Monitoring and
Reporting: City of
Desert Hot Springs
Item Number: 1.

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Patricia Villagomez, Principal Planner
City of Desert Hot Springs
September 13, 2024

Page 23 ends

active den or an active den will be impacted, an
exclusion plan shall be prepared for CDFW review
and approval that will be performed outside of
breeding season and after juvenile dispersal.

Mitigation Measure BIO-[F]: Artificial Nighttime
Lighting
Throughout construction and the lifetime operations
of the Project, the City of Desert Hot Springs and
Project proponent shall eliminate all nonessential
lighting throughout the Project area and avoid or limit the use of artificial light at night during the hours of dawn and dusk when many wildlife species are most
active. The City of Desert Hot Springs and Project
proponent shall ensure that all lighting for the Project is fully shielded, cast downward and directed away
from surrounding open-space and agricultural areas,
reduced in intensity to the greatest extent possible,
and does not result in lighting trespass including
glare into surrounding areas or upward into the night
sky (see the International Dark-Sky Association
standards at http://darksky.org/). The City of Desert
Hot Springs and Project proponent shall ensure use
of LED lighting with a correlated color temperature of
3,000 Kelvins or less, proper disposal of hazardous
waste, and recycling of lighting that contains toxic
compounds with a qualified recycler.

Timing:

Throughout
construction and
the lifetime
operations of the
Project.

Methods: See
Mitigation
Measure
Implementation:

City of Desert Hot
Springs and Project
proponent
Monitoring and
Reporting: City of
Desert Hot Springs
Mitigation Measure BIO-[G]: CDFW Lake and
Streambed Alteration Program
Prior to construction, the Project Sponsor shall
obtain written correspondence from the California
Department of Fish and Wildlife (CDFW) stating that
notification under section 1602 of the Fish and Game
Code is not required for the Project, or the Project
Sponsor shall obtain a CDFW-executed Lake and
Streambed Alteration Agreement, authorizing
impacts to Fish and Game Code section 1602
resources associated with the Project.

Timing: Prior to
construction.

Methods: See
Mitigation
Measure
Implementation:

City of Desert Hot
Springs and Project
proponent
Monitoring and
Reporting: City of
Desert Hot Springs
Item Number: 1.

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S H E E T

OF SHEETS

REVISIONS
TL/ZL
TL
TL NEW COMMERCIAL DEVELOPMENT NW CNR OF PIERSONS & N. INDIAN CANYON RD., DESERT HOT SPRINGS, CA AMIR BUTT 1461 TAHOE ST., BEAUMONT, CA 92223
ALL IDEAS, DESIGNS, ARRANGEMENTS AND PLANS INDICATED OR REPRESENTED BY THESE DRAWINGS ARE OWNED BY, AND THE PROPERTY OF PEGASUS ARCHITECTS AND PROTECTED BY THE CURRENT ARCHITECTURAL WORKS COPYRIGHT PROTECTION ACT, AND OTHER APPLICABLE LAWS. THESE DRAWINGS WERE CREATED, EVOLVED AND DEVELOPED FOR USE ON AND IN CONNECTION WITH THE SPECIFIED PROJECT. NONE OF SUCH IDEAS, DESIGN ARRANGEMENTS OR PLANS SHALL BE USED OR DISCLOSED TO ANY PERSON, FIRM OR CORPORATION FOR ANY PURPOSE WHATSOEVER WITHOUT THE WRITTEN PERMISSION OF PEGASUS ARCHITECTS. THESE DRAWINGS ARE NOT VALID FOR CONSTRUCTION PURPOSES UNLESS EXPRESSED CERTIFIED BY PEGASUS ARCHITECTURE FOR CONSTRUCTION ONLY. COPYRIGHT © 2022 PEGASUS ARCHITECTS.

SITE #1169 TPROJECT DIRECTORY & DATA LEGAL DESCRIPTION, SHEET INDEX, VICINITY MAP, NOTES & SCOPE OF WORK New Commercial Development
NORTH
NW Corner of Piersons & N. Indian Canyon Dr.,
Desert Hot Springs, CA

PROJECT
SITE
Item Number: 1.

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T EV NO PARKING
NO

PARKING EV T

LOADING ZONE

LOADING ZONE NO PARKING T NO PARKING EV EV NO PARKING NO PARKING NO PARKING EV EV T NO PARKING T NO

PARKING EV EV
PIERSON BLVD. INDIAN AVE. T SITE PLAN
A1.01

S H E E T

OF SHEETS

SITE #1169
NORTH
Item Number: 1.

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TRASH ENCLOSURE FLOOR PLAN & ELEVATIONS
A1.10

S H E E T

OF SHEETS

SITE #1169
Item Number: 1.

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CANOPY FLOOR PLAN & ELEVATIONS
A1.11
NORTH

S H E E T

OF SHEETS

SITE #1169
Item Number: 1.

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SALE AREA
B.O.H.

RESTROOM
#02

RESTROOM
#01

STORAGE
PREP
OFFICE
B.O.H.

COOLER
#02
COOLER
#01 C-STORE FLOOR PLAN
A2.01
NORTH

S H E E T

OF SHEETS

SITE #1169
Item Number: 1.

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CARWASH FLOOR PLAN
A2.02
NORTH

S H E E T

OF SHEETS

SITE #1169
Item Number: 1.

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S H E E T

OF SHEETS

SITE #1169 QSR FLOOR PLAN & ELEVATIONS
A2.03
NORTH
Item Number: 1.

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C-STORE ELEVATIONS
A3.01

S H E E T

OF SHEETS

SITE #1169
Item Number: 1.

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CARWASH ELEVATIONS
A3.02

S H E E T

OF SHEETS

SITE #1169
Item Number: 1.

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T
EV
NO

PARKING NO PARKING

EV TLOADING ZONE LOADING ZONE
NO

PARKING T
NO

PARKING EV EV
NO
PARKING PP PP PP PP Feet 0 50 100 CITY OF DESERT HOT SPRINGS DESERT HOT SPRINGS COMMERCIAL DEVELOPMENT A NGE L C E SA R ST C I V I L ATE OF CA L I FORN I A REG I STERED PROFESS IONAL ENG I NEER No. 87222 LDP: CUP: BEYOND FOODS MARKET 9320 BASELINE RD. STE. D - RANCHO CUCAMONGA, CA 91701 PHONE: 909-248-6557 - [email protected] WWW.BLUECIVILENG.COM CONDITIONAL USE PERMIT Item Number: 1.

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PP
PP

PP T EV NO PARKING
NO

PARKING EV T

LOADING ZONE
LOADING ZONE NO PARKING T NO EV EV PARKING NO PARKING Feet 0 30 60 CITY OF DESERT HOT SPRINGS DESERT HOT SPRINGS COMMERCIAL DEVELOPMENT A NGE L C E SA R ST C I V I L ATE OF CA L I FORN I A REG I STERED PROFESS IONAL ENG I NEER No. 87222 LDP: CUP: BEYOND FOODS MARKET 9320 BASELINE RD. STE. D - RANCHO CUCAMONGA, CA 91701 PHONE: 909-248-6557 - [email protected] WWW.BLUECIVILENG.COM CONDITIONAL USE PERMIT Item Number: 1.

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T EV NO PARKING
NO

PARKING EV T

LOADING ZONE

LOADING ZONE NO PARKING T NO EV EV PARKING NO PARKING
PPPP
PP Feet 0 50 100 CITY OF DESERT HOT SPRINGS DESERT HOT SPRINGS COMMERCIAL DEVELOPMENT A NGE L C E SA R ST C I V I L ATE OF CA L I FORN I A REG I STERED PROFESS IONAL ENG I NEER No. 87222 LDP: CUP: BEYOND FOODS MARKET 9320 BASELINE RD. STE. D - RANCHO CUCAMONGA, CA 91701 PHONE: 909-248-6557 - [email protected] WWW.BLUECIVILENG.COM CONDITIONAL USE PERMIT Item Number: 1.

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PP PP PP PP CITY OF DESERT HOT SPRINGS DESERT HOT SPRINGS COMMERCIAL DEVELOPMENT A NGE L C E SA R ST C I V I L ATE OF CA L I FORN I A REG I STERED PROFESS IONAL ENG I NEER No. 87222 LDP: CUP: BEYOND FOODS MARKET 9320 BASELINE RD. STE. D - RANCHO CUCAMONGA, CA 91701 PHONE: 909-248-6557 - [email protected] WWW.BLUECIVILENG.COM CONDITIONAL USE PERMIT Item Number: 1.

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T
EV
NO

PARKING NO PARKING

EV TLOADING ZONE LOADING ZONE
NO

PARKING T
NO

PARKING EV EV
NO
PARKING CITY OF DESERT HOT SPRINGS DESERT HOT SPRINGS COMMERCIAL DEVELOPMENT A NGE L C E SA R ST C I V I L ATE OF CA L I FORN I A REG I STERED PROFESS IONAL ENG I NEER No. 87222 LDP: CUP: BEYOND FOODS MARKET 9320 BASELINE RD. STE. D - RANCHO CUCAMONGA, CA 91701 PHONE: 909-248-6557 - [email protected] WWW.BLUECIVILENG.COM CONDITIONAL USE PERMIT Item Number: 1.

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8 3(INCL.4HCP)
53(2HCP)
52 Item Number: 1.

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2 Item Number: 1.

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L-3 REVISIONS BY p L R i STERi lE h D GE PI T DATE 05-31-23 RENEWAL DATE 1 3 PE NDSC S . Ma A y A SIGNATURE 0 A HC I R CE 4T 02-16-2023 R.S. R.S. CHECKED 09-26-2022 DATE DRAWN 22060 JOB NO. OF 4 SHEETS

NEW BEYOND MARKET &

CARWASH DEVELOPMENT
NWC PIERSON BLVD. &
INDIAN AVE.

DESERT HOT SPRINGS, CA

PRELIMINARY

LANDSCAPE PLAN TREES GROUND COVERS
Item Number: 1.

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L-4 REVISIONS BY
p
L
R
i
STER
i l
E
h D
GE
P
I
T DATE 05-31-23 RENEWAL DATE
1 3 PE
N
D
S
C
S . M
a
A
y A SIGNATURE
0 A
HC I
R
CE
4 T 02-16-2023 R.S. R.S. CHECKED 09-26-2022 DATE DRAWN 22060 JOB NO. OF 4 SHEETS

NEW BEYOND MARKET &

CARWASH DEVELOPMENT
NWC PIERSON BLVD. &
INDIAN AVE.

DESERT HOT SPRINGS, CA

PRELIMINARY

LANDSCAPE PLAN SHRUBS
Item Number: 1.

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CONSULTING TEAM RESPONSES TO MISSION SPRINGS WATER DISTRICT LETTER DATED SEPTEMBER 8, 2024
“Subject: Notice of Intent to Adopt a Mitigated Negative Declaration for the Pierson Commercial Specific Plan in the City of Desert Hot Springs” Comment 1: Under Air Quality, the discussion of gas dispensing emissions and health risk appear to be touched on only briefly. The SCAQMD has published a Risk Assessment Procedures document for Rules 1401, 1401.1 & 212 which provides screening-level risk estimates for gasoline dispensing operations. The analysis should be revised to include a discussion of gasoline dispensing related health risk impacts.

Response to Comment 1: In Section 3.3 Air Quality, under response c, a linear regressions risk estimate was completed per the Risk Assessment procedures. As stated on page 22 of the Initial Study, Emissions resulting from gasoline service station operations may include toxic air contaminants (TACs) (e.g., benzene, hexane, MTBE, toluene, xylene) and have the potential to contribute to health risk in the Project vicinity. Standard regulatory controls such as the SCAQMD’s Rule 461 (Gasoline Transfer and Dispensing) would apply to the Project in addition to any permits required that demonstrate appropriate operational controls. Gasoline dispensing facilities are required to use Phase I/II EVR (enhanced vapor recovery) systems. Phase I EVR have an average efficiency of 98 percent and Phase II EVR have an average efficiency of 95.1 percent. Therefore, the potential for fugitive VOC or TAC emissions from the gasoline pumps is negligible. Prior to issuance of a Permit to Operate, each individual gasoline dispensing station is required to obtain permits from SCAQMD which identify the maximum annual throughput allowed based on specific fuel storage and dispensing equipment that is proposed by the operator.

Comment 2: Under Air Quality and Greenhouse Gas, is there a reason why CalEEMod 2020 was utilized rather than the more current model, 2022.

Response to Comment 2: This project was initiated prior to the full release of CalEEMod 2022. Therefore, CalEEMod 2020 was used.

Comment 3: MSWD appreciates the robust discussion of groundwater management and water availability under Hydrology, issue (b), and concurs with the impact conclusions made therein, excepting the discrepancy between the water demand projections under Hydrology and Utilities and Service Systems, discussed in detail in the next bullet point.

Response to Comment 3: No response needed.

Item Number: 1.

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Comment 4: The Project water demand on page 50 and 74 are vastly different. On Page 50, the water demand is listed at 10,000 gallons per day, or 3,650,000 million gallons per year, whereas the analysis on page 74 indicates that the proposed Project would have a demand of 949,411 gallons per year with an “allocation” of 2,189,718 gallons per year, which is substantially less than that which is projected on Page 50. The correct amount of water demanded by the proposed Project should be clarified in the Final IS/MND, and the impact determination should be corrected if, indeed, the Project’s water demand is greater than that which is projected for a land use of this type in the Coachella Valley RUMWP.

Response to Comment 4: The Initial Study is being revised as follows (added text is underlined and deleted text is strikethrough):

For the Hydrology and Water Quality section, part b:

The Proposed Project includes approximately 61,941 square-feet of irrigated landscaping. The City would ensure that the Proposed Project is in compliance with the City of Desert Hot Springs Development Code, Section 17.56.130, which establishes water efficient landscaping standards. The Proposed Project is anticipated to have a water demand of 949,411 gallons per year. The Proposed Project is anticipated to have a water demand of 10,000 gallons per day, based on a commercial demand factor of 2,500 gallons per day per acre. This water demand would account for approximately 0.03% 0.007% of the WMP planning area projected customer water demand by 2045.

The revisions would result in no new significant impacts and no new mitigation measures are required.

Comment 5: The analysis under issue E for Hydrology and Water Quality, there is no discussion of the sustainable groundwater management act. There are two groundwater sustainability management plans that are applicable to the groundwater extracted by MSWD. The Mission Creek Subbasin Alternative Update and the Indio Subbasin Sustainable Groundwater Management Plan. As the Project will receive water from MSWD, which pumps groundwater from both the Indio and Mission Creek Subbasins, each of these plans should be outlined, and the Project impacts should detail why the provisions of these Plans would not be violated as a result of Project implementation to ensure that this issue (E) has been fully substantiated.

Response to Comment 5: The Initial Study is being revised as follows (added text is underlined):

For the Hydrology and Water Quality section, part e:

Item Number: 1.

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California’s Sustainable Groundwater Management Act (SGMA) requires Statedesignated medium- and high-priority basins to develop groundwater sustainability agencies (GSAs), develop groundwater sustainability plans (GSPs) and manage groundwater for long-term sustainability. The SGMA 2019 Basin Prioritization identified ninety-four basins and/or sub-basins as medium or high priority and are required to form GSAs and develop GSPs. These 94 basins, in combination with adjudicated areas which have existing governance and oversight in place, account for 98 percent of the pumping (20 million acre-feet), 83 percent of the population (25 million Californians), and 88 percent of all irrigated acres (6.7 million acres) within the state’s groundwater basins.1 The MSWD pumps groundwater from both the Mission Creek Subbasin (MCSB) and Indio Subbasin. Groundwater sustainability management plans have been adopted for both subbasins and are summarized herein.

Mission Creek Subbasins
The MCSB Alternative Plan Update2 ensures that the most current projections for population growth, land use, imported water supply, and other future conditions are incorporated into water management planning for the region. Land use within the Alternative Plan Update Planning Area is based on the Riverside County General Plan (Riverside County, 2019) and the City of Desert Hot Springs General Plan. The MCSB Alternative Plan Update ensures that the most current projections for population growth, land use, imported water supply, and other future conditions are incorporated into water management planning for the region. To account for commercial/industrial growth associated with the population growth from residential development, the existing parcel data were used to establish ratios of acres between residential, commercial, and industrial land uses. These ratios were then used to establish average historical acre-feet per year (AFY) per person factors for commercial and industrial uses.

To conduct evaluation of alternative water management scenarios, a 50-year MCSB forecast model was developed using the water demand forecast, the imported water forecast, and plans for recycled water use. The Baseline scenario provides a “benchmark” for evaluating the effects of water management activities and climate change on groundwater levels in the MCSB. It is not a potential operational scenario for the MCSB. The Baseline with Climate Change scenario is the same as the Baseline scenario but assumes mountain front recharge for a 50- year period based 1 https://water.ca.gov/Programs/Groundwater-Management/Basin-Prioritization 2 Wood Environment & Infrastructure Solutions, Inc. and Kennedy/Jenks Consultants, Inc. Mission Creek Subbasin Alternative Plan Update. November 2021.

Item Number: 1.

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on continuation of a 25-year period of below normal precipitation (i.e., drought) from 1995 through 2019. The Near-Term Projects with Climate Change scenario builds on the Baseline with Climate Change scenario by adding water management projects planned for implementation prior to 2035. Under this scenario, all wells remain above their Minimum Thresholds through the planning horizon and the long-term cumulative water balance is slightly positive. Conveyance of the treated wastewater from the Regional Water Reclamation Facility (RWRF) back to the MCSB for evaporation/percolation and new water supply ranging from 233 AFY in 2023 to 265 AFY in 2045 results in a sustainable condition in the MCSB through the planning horizon.

During the development of the Alternative Plan Update, an updated City of Desert Hot Springs General Plan was adopted in May 2020 that has not yet been captured in SCAG’s growth forecast. The Final Environmental Impact Report for the 2020 City of Desert Hot Springs General Plan Update plans for higher-than-expected growth, which could result in higher-than-expected increases in water demand. While full growth is unlikely to occur over the 25-year planning horizon, the General Plan Update includes several water supply policies/mitigation measures such as consultation with local water agencies to plan for adequate supplies. In addition, the General Plan Update conveys the need to recognize any immediate water supply constraints, consider long-term availability of water in the approval of development projects, and perform a coordinated review process with local water resources management agencies. The water supply policies/mitigation measures link the City’s project approval and building permitting to the water resources agencies’ ability to manage resources consistent with approved water management plans. An additional mitigation measure identified in the Final Environmental Impact Report is for the City of Desert Hot Springs to prepare an annual report of building permits issued and land use approvals for submittal to MSWD and CVWD to allow the agencies to estimate related water use increases and identify concerns and issues regarding the adequacy of water supply for permits or approvals. These mitigation measures can lessen some of the uncertainty associated with water needs from the City of Desert Hot Springs planning area. In addition, the revised growth forecasts can be incorporated into future updates of the Alternative Plan, as appropriate.

Indio Subbasin
To provide an adequate long-range forecast of future water demands, the Indio Subbasin Water Management Plan Update3 uses a 25-year planning period from 3 Todd Groundwater and Woodard & Curran. 2022 Indio Subbasin Water Management Plan Update. Sustainable Groundwater Management Act Alternative Plan. Adopted December 2021.

Item Number: 1.

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2020 through 2045. This planning is subject to uncertainties and changes that could affect future water demands, including revised growth forecasts, conversions of agricultural lands to urban uses, development on Tribal lands, and long-term conservation regulations. A variety of projects and management actions (PMAs) are planned for implementation over the planning horizon (to 2045) to achieve sustainability in the Subbasin.

Total municipal demand for the Plan Area is 235,148 acre-feet (AF) in 2045, which is an increase of 71,143 AF from the 2016 baseline (i.e., 43 percent). The forecast assumes a population increase from 402,392 in 2016 to 616,048 in 2045, primarily in the cities of Coachella and Indio. The Indio Subbasin GSAs recognize that land use changes can affect water demand in the Plan Area and affect their ability to achieve and maintain sustainable groundwater management over this Alternative Plan Update’s planning and implementation horizon. Land use development is guided by land use planning agencies, including those of California cities and counties, which are required to prepare General Plans. The City of Desert Hot Springs is one of the Indio Subbasin’s pertinent land use planning agencies.

Simulation of the Baseline and Baseline with Climate Change scenarios allows direct evaluation of the effect of simulated climate change on groundwater storage.

A net increase in Subbasin-wide groundwater storage is predicted for the Baseline scenario, while a net decrease in Subbasin storage is predicted for Baseline with Climate Change. This indicates that implementation of no new projects is not sustainable with climate change as simulated with recent hydrologic conditions projected into the future. Simulation of three other scenarios allows assessment of the effects of various water supply projects packaged as follows: 5-Year Plan with Climate Change, Future Projects with Climate Change, and Expanded Agriculture with Climate Change. While the Baseline with Climate Change scenario results in net groundwater storage decline, the three other scenarios show a net increase in storage at the end of the 25-year planning horizon (in 2045) and continuing stability through the end of the modeling timeframe. Simulation of the 5-Year Plan with Climate Change scenario shows that already-planned projects and management actions can maintain the water balance, even with climate change. The Future Projects with Climate Change scenario acknowledges the uncertainties that exist with regard to future water supplies, water demands, and other circumstances. This scenario also results in a stable Subbasin water balance. In addition, all three scenarios of climate change with projects indicate increased net outflow to drains.

All four climate change scenarios show a net outflow to the Salton Sea, indicating no seawater intrusion.

While nothing specified in Sustainable Groundwater Management Act or contained in a Groundwater Sustainability Plan can be interpreted as superseding the land use Item Number: 1.

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authority of cities or counties, Senate Bill (SB) 610 and SB 221 require that this information should be included in the administrative record that serves as the evidentiary basis for an approval action by a city or county for projects subject to CEQA that are of a specific size. As a result, local water agencies prepare and adopt water supply assessments and written verifications of water supply availability for large developments as required by SB 610 and SB 221.

Project Impacts
The Project Site is within the Mixed-Use Neighborhood (MU-N) land use designation and is zoned Mixed-Use Neighborhood (MU-N). While MU-N conditionally permits convenience stores and quick-serve restaurants, it does not permit commercial uses such as fueling stations or car washes. With adoption of the Specific Plan, fueling stations and car washes would be permitted within the proposed Specific Plan MU-N (SP-MU-N) zoning designation. Furthermore, restaurant with drivethrough facilities and convenience stores would be permitted uses within this zoning. As the current zoning, proposed zoning, and proposed uses are commercial, there would be no deviation from the water demand anticipated for the Project Site.

Furthermore, there are no Proposed Project features that are anticipated to interfere with the execution of water management projects. Coordination between the City and the local water agencies would ensure that the Proposed Project water demand does not substantially impact groundwater supplies.

The California Health and Safety Code, Statutes of Chapter 6.7, Underground Storage of Hazardous Materials provides further regulations in regard to permitting the operation of the USTs. Site design and operating procedures are to adhere to California Stormwater Quality Association standard BG-22, which requires implementation of operational BMPs to avoid above ground storm water pollution and discharge into storm drain system. Some of these operational requirements include training employees on proper leak and spill prevention and cleanup practices, and the maintenance and cleaning of the fueling area. Furthermore, a UST permit must be obtained from the County Hazardous Materials Management Branch, which is responsible for routine inspections of fueling station operations and USTs.

The revisions would result in no new significant impacts and no new mitigation measures are required.

Comment 6: Beyond the above comments, the underlying groundwater quality is of the utmost importance to the District, and MSWD wishes to make clear that the use of Item Number: 1.

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Underground Storage Tanks for hazardous materials, such as gasoline, within its service area should not result in any contaminated runoff as part of Project operations. While these are standard conditions of permits the Applicant will be required to obtain from the State and RWQCB, and other regulatory agencies to operate, MSWD, as a stakeholder of the groundwater basin that underlies the site, emphasizes the need for these standard permit conditions to be enforced and to remain enforced throughout the duration of Project operation
Response to Comment 6: The City will condition the project to meet all regulatory requirements.

Item Number: 1.

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-1-
RESPONSES TO COMMENT LETTER 1

CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE
DATED October 4, 2024
Pierson Commercial Specific Plan
(SCH# 2024080608)
Response to Comment 1-1:

Introductory comment thanking the City of Desert Hot Springs for the opportunity to review and provide comments on the Initial Study/Mitigated Negative Declaration (IS/MND).

Response to Comment 1-2:

Regulatory comment regarding the CDFW’s Role as a Trustee Agency under CEQA. Additionally, CDFW is also submitting comments as a Responsible Agency under CEQA.

Response to Comment 1-3:

Comment relates to the Project and describes the Proponent, Objective, Location, and time frame.

Response to Comment 1-4:

The comment describes the nature of the Comment Letter and the statement that the IS/MND does not adequately identify or disclose impacts on biological resources. Specific comments and recommendations follow this section.

Response to Comment 1-5:

Introductory comments for the recommended mitigation measures that CDFW Proposes.

Response to Comment 1-6:

The comment relates to the Biological Assessment that was completed for the Project site and specifically references an occurrence within the CNDDB of a rare plant species Little San Bernardino Mountains linanthus (Linanthus maculatus ssp. Maculatus).

As documented in the Biological Assessment the site is not suitable for this species. Specifically the occurrence that CDFW is referencing is over 23 years old and the polygon in the CNDDB has a diameter of 0.37 miles. Making the exact location of the observation unknown and likely no longer present given the length of time and ongoing disturbance in the area.

Additionally, the corner of the parcel that is overlapped by the polygon is highly disturbed as evidenced in the photos of the site. It is routinely used by street venders and road shoulder Item Number: 1.

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-2-
parking. It offers no suitable habitat for this species. This species is also routinely found in Sandy places. Usually in light-colored quartz sand; often in washes or bajadas. As noted in the Assessment, these habitat structures are absent from the Project site. Therefore, the City believes that the analysis provided in the Biological Assessment is sufficient.

Response to Comment 1-7:

Comment states that the IS/MND does provide a mitigation measure for Nesting Birds (MM BIO1), however, CDFW considers the provided mitigation measure insufficient in scope and timing to reduce impacts to this species.

The City thanks CDFW for the comment and will modify MM BIO-1 to reflect the revised language provided by CDFW.

Revised MM BIO-1
Regardless of the time of year, nesting bird surveys shall be performed by a qualified avian biologist no more than 3 days prior to vegetation removal or ground-disturbing activities. Preconstruction surveys shall focus on both direct and indirect evidence of nesting, including nest locations and nesting behavior. The qualified avian biologist will make every effort to avoid potential nest predation as a result of survey and monitoring efforts. If active nests are found during the pre-construction nesting bird surveys, a qualified biologist shall establish an appropriate nest buffer to be marked on the ground. Nest buffers are species-specific and shall be at least 300 feet for passerines and 500 feet for raptors. A smaller or larger buffer may be determined by a qualified biologist familiar with the nesting phenology of the nesting species and based on nest and buffer monitoring results. Established buffers shall remain on site until a qualified biologist determines the young have fledged or the nest is no longer active. Active nests and adequacy of the established buffer distance shall be monitored daily by the qualified biologist until the qualified biologist has determined the young have fledged or the Project has been completed. The qualified biologist has the authority to stop work if nesting pairs exhibit signs of disturbance.

Response to Comment 1-8:

Comment that the IS/MND does not provide a mitigation measure for burrowing owl and suggest the implementation of additional surveys.

As stated in the General Biological Assessment, the site is not suitable for the species. No evidence of the species was observed during the site visit. Focused burrowing owl surveys are not warranted as the site is not suitable for this species and no evidence exits that the site has ever or currently hosts this species. Therefore, the City believes that the analysis provided in the Biological Assessment is sufficient.

Item Number: 1.

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-3-
Response to Comment 1-9:

Comment states that the IS/MND does not provide a mitigation measure for desert tortoise, and suggest the implementation of additional surveys.

As stated in the General Biological Assessment, the site is not suitable for the species. In the comment letter CDFW stated that tortoises “are found naturally along the northern, eastern, and western rim of the Coachella Valley in the foothills of the Little San Bernardino Mountains”. The Project site is situated on the valley floor outside of any washes or valley foothills. No evidence of the species was observed during the site visit. Focused or Pre-Construction surveys are not warranted as the site is not suitable for this species and no evidence exits that the site has ever or currently hosts this species. Therefore, the City believes that the analysis provided in the Biological Assessment is sufficient.

Response to Comment 1-10:

The comment states that the IS/MND does not provide a discussion on the Desert kit fox (Vulpes macrotis arsipus), which is protected as a fur-bearing mammal under Title 14 of the California Code of Regulations (Chap. 5, § 460) and may not be taken at any time.

As stated in the General Biological Assessment there were no burrows of any kind. The Project site is situated on the valley floor outside of any washes or valley foothills and no evidence of the species was observed during the site visit. Pre-construction surveys are not warranted as the site is not suitable for this species and no evidence exits that the site has ever or currently hosts this species. Therefore, the City believes that the analysis provided in the Biological Assessment is sufficient.

Response to Comment 1-11:

The comment states that the IS/MND does not provide a discussion on the American badger (Taxidea taxus), which is a species of special concern.

As stated in the General Biological Assessment there were no burrows of any kind. The Project site is situated on the valley floor outside of any washes or valley foothills and no evidence of the species was observed during the site visit. The habitat within the valley floor is not suitable for this species. Pre-construction surveys are not warranted as the site is not suitable for this species and no evidence exits that the site has ever or currently hosts this species. Therefore, the City believes that the analysis provided in the Biological Assessment is sufficient.

Response to Comment 1-12:

The comment states that the IS/MND does not adequately address the potential for impacts to Artificial Nighttime Lighting.

Item Number: 1.

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-4-
As noted in Draft IS/MND already includes compliance with the City’s Municipal Code §17.40.170, which will reduce light glare. Additionally, MM AES-1 was drafted to be compliant with the recommendations as described in the. The City is a permittee under the Coachella Valley Multiple Species Habitat Conservation Plan (CVMSHCP) and believes that adherence to guidelines below is sufficient to reduce any potential off-site impacts on any protected species in the adjacent habitat conservation area.

CVMSHCP Land Use Adjacency Guidelines: Lighting Project lighting shall comply with CVMSHCP Section 4.5.3 which requires that “lighting shall be shielded and directed toward the developed area. Landscape shielding or other appropriate methods shall be incorporated in project designs to minimize the effects of lighting adjacent to or within the adjacent conservation area in accordance with the guidelines to be included in the Implementation Manual.” Response to Comment 1-13:

The comment states that the IS/MND does not adequately address the potential for impacts to jurisdictional waters under section 1602 of the California Fish and Game Code.

The site was surveyed by a qualified biologist with over 12 years of experience in delineations within the Coachella Valley.

Additionally, the CDFW asserts jurisdiction over any drainage feature that contains a definable bed and bank or associated riparian vegetation. The Project area was surveyed with 100 percent visual coverage and the Project Site does contain a degraded topographical feature. However, this particular topographical feature is no longer jurisdictional for the following reasons.

There is no discernable bed and bank within the topographical feature despite the recent rainfall within the region.

Additionally, Section 1602, Sub Section (a), of the Fish and Game Code provides the requirements of when a permit is necessary for a project:

Section 1602, (a) An entity shall not substantially divert or obstruct the natural flow of, or substantially change or use any material from the bed, channel, or bank of, any river, stream, or lake, or deposit or dispose of debris, waste, or other material containing crumbled, flaked, or ground pavement where it may pass into any river, stream, or lake, . . .”
CDFW has historically used the following definition of a “stream” from Title 14, Section 1.72 of the Fish and Game Code, which states:

A stream is a body of water that flows at least periodically or intermittently through a bed or channel having banks and that supports fish or other aquatic Item Number: 1.

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-5-
life. This includes watercourses having a surface or subsurface flow that supports or has supported riparian vegetation.

This definition puts an emphasis on the presence of Riparian Vegetation, as well as the presence of resources for fish or other aquatic life, as defining streams. The reason is that if the only requirement to define a stream (i.e., jurisdictional water) islimited to “a body of water that flows at least periodically or intermittently”, an intermittent stream could include a number of linear features that support water flow, such as a curb, a gutter, a rivulet, a topographical feature, etc.

Because the general term “stream” is too broad we have to further evaluate the topographical feature on-site and determine the value that it has to wildlife i.e., is Riparian Vegetation present, or has it been obviously present? The degraded topographical feature is not jurisdictional because it has no riparian vegetation or evidence of past riparian vegetation; therefore, it has no riparian values other than to collect sheet flow from occasional rains.

In addition, the degraded topographical feature does not support fish or other aquatic life as evidenced by the photos showing a dry degraded depression with scrub vegetation. The photos also show a lack of Riparian Vegetation upstream and downstream of the Project site and a lack of evidence of natural flow.

Because the degraded topographical feature on-site does not contain any evidence of past or present riparian vegetation, does not have any evidence of natural flow, does not contain a bed and bank, does not support fish or other aquatic wildlife, and does not meet the definition of a stream or other waterbody definitions as defined above in Section 1602, Subsection (a) of the Fish and Game Code, this Project is not subject to Fish and Game Code Section 1602. Therefore, the Project does not need to obtain a Streambed Alteration Agreement.

Response to Comment 1-14:

The comment states that the CDFW recommends the incorporation of xeriscaping into the landscape design of the proposed Project.

The City thanks CDFW for the comment and will ensure that the Project is in compliance with the City of Desert Hot Springs Development Code, Section 17.56.130 (Water Efficient Landscaping):

Section 17.56.130: That a certain document, a copy of which is on file in the office of the City Clerk, being marked and designated as “2009 Mission Springs Water District Water Efficient Landscaping Guidelines” as adopted by the Mission Springs Water District on September 21, 2009, establishing effective water efficient landscape requirements, and all appendices, tables, and indices thereto, is adopted and incorporated in this chapter as if fully set out at length in this chapter and the provisions thereof shall be controlling within the limits of the City, pursuant to the provisions of Section 50022 et seq., of the California Government Code. (Ord. 515 § 2, 2009; prior code § 162.010) Response to Comment 1-15:

Regulatory comment regarding the Environmental Data and Environmental Document Filing Fees.

Item Number: 1.

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-6-
Response to Comment 1-16:

Conclusion comment thanking the City for the opportunity to comment on the Draft IS/MND.

Item Number: 1.

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SR-24-254
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: December 12, 2024
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Public Safety Commission Recommendation to the City Council Regarding Aggressive Panhandling
RECOMMENDATION:

Take whatever action the City Council deems appropriate.

BACKGROUND:

On October 10, 2024, the Public Safety Commission took action to recommend to the City Council, the creation of signage discouraging panhandling to be placed at major intersections; and that the signage state that panhandling is unlawful, provide alternative ways to donate, include Police Department non-emergency phone number, and cite applicable Municipal Code section(s).

Item Number: 2.

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SR-24-259
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: December 12, 2024
Department: City Manager
Prepared by: Frank Luckino, City Manager
Subject: Rivco Regional Parks - 4th District
RECOMMENDATION:

Staff is looking for a formal recommendation by the City Council to submit for input to the County of Riverside Parks and Recreation.

BACKGROUND:

Rivco Parks has embarked on a feasibility study to determine the location and need of a new regional park. This feasibility study came about as a result of potentially losing the lease for Lake Cahuilla Regional Park. This park is leased from Bureau of Reclamation and Coachella Valley Water District.

However, Rivco Parks have since come to an agreement and a new 30-year lease goes before the Board on December 10, 2024. Even with Lake Cahuilla’s lease being extended, the 4th District is currently in need of regional parks so this feasibility will help identify potential future locations.

This study is funded by the American Rescue Plan Act (ARPA), internal CIP (Capital Improvement Program) funding, and a grant from Coachella Valley Mountains Conservancy. It is only the study that is funded and nothing beyond that. Rivco Parks hope to seek additional grant funds in the future to build out.

DISCUSSION:

Rivco Parks is looking for input from the public on a Regional Park within the 4th Supervisorial District of Riverside County. This is an opportunity for the Council to formally submit a comment and/or recommendation. This Park would be in the unincorporated area of Riverside County, but close to the City limits.

FISCAL IMPACT:

None for the City.

ENVIRONMENTAL ANALYSIS:

To be determined.

OPTIONAL:

Instead of picking one recommendation, Council could rank them.

Item Number: 3.

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SR-24-259
ATTACHMENTS:
1) Site 1 concept LONG CANYON_
2) Site 2 concept_BIG MORONGO
3) Site 4 concept_DESERT DUNES
4) Project Site Criteria
5) Regional Map
Item Number: 3.

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SITE 1: LONG CANYON CONCEPT DESIGN
Zone
Zone
Item Number: 3.

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SITE 2: BIG MORONGO CONCEPT DESIGN
Item Number: 3.

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SITE 4: DESERT DUNES CONCEPT DESIGN
Item Number: 3.

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PROJECT SITE CRITERIA
• Utilities and Service Systems
• Flood Protection
• Circulation (travel times; access by
various modes of transportation;
access to trails)
• Planning (zoning; land use)
• Agricultural Resources
• Air Quality
• Biological Resources
• Cultural Resources
• Disadvantaged Communities
• Geology and Soils (incl. earthquake
fault zones; active mines; soil survey)
• Hazardous Sites and Wildre Zones
• Hydrology and Water Quality (ood
water zones; watershed; master
drainage plans; etc.)
• Site Topography for development
(drainage; slope)
• Views
• Area Parks and Open Spaces
(proximity to other parks)
• Farmland and Urbanized Areas
• Historic Sites
• Climate
• Plant Life
Item Number: 3.

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5 15
15 15
10 10
76 91
74 74
60 78
62 62
177
111
247
111
79 86
95

POTENTIAL PROJECT SITE AREAS
COUNTY CONNECT: Exploring a New
Regional Park in D4 (Desert Region)

SITIOS POTENCIALES PARA ESTE PROYECTO

(DESERT REGION) (REGIÓN DESÉRTICA)
CONEXIÓN AL CONDADO: Explorando Un Nuevo
Parque Regional En El Distrito 4 (Región Desértica)
Item Number: 3.

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SR-24-263
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: December 12, 2024
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: City Council Regular Meeting Minutes: November 19, 2024 RECOMMENDATION:

Approve the minutes as presented; or as corrected.

ATTACHMENTS:

Draft City Council Regular Meeting Minutes - November 19, 2024 Item Number: 4.

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City of Desert Hot Springs

DRAFT ACTION MINUTES
City Council Regular Meeting
6:00 PM - Tuesday, November 19, 2024
Council Chambers
CLOSED SESSION - 5:30 P.M.

CALL TO ORDER
Mayor Matas called the Closed Session to order at 5:30 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 item.

CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Higher Yields Consulting, LLC v. City of Desert Hot Springs et al.

Riverside Superior Court Case No. CVPS2405497
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
Item Number: 4.

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City Council
November 19, 2024

INVOCATION
Mayor Pro Tem Pye 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 November 19, 2024, Regular Meeting agenda, and approve the Consent Calendar except for Item 4.

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

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

PUBLIC COMMENTS
1) Dana Johnson expressed thanks to the City and community for helping to make Food Now, Inc. one of the largest food distribution networks in the Coachella Valley. 2) Doug McAllister, Frontier Communications, stated that cable theft was becoming an issue and that most outages were a result cable theft.
3) Matthew Cunningham spoke regarding his baseball program.

CITY MANAGER REPORT
None.

MAYOR AND COUNCIL MEMBER REPORTS
Mayor Pro Tem Pye reported on the various meetings and events she attended.

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

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

Item Number: 4.

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City Council
November 19, 2024
Councilmember Betts reported on the various meetings and events he attended.

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

PUBLIC HEARINGS:

3. AB 1600 Annual Report – Development Impact Fees and Resolution Making Findings and Reaffirming the Necessity of Certain Development Impact Fees
Recommendation:
1) Staff Report;
2) Entertain questions from Staff and from the City Council; 3) Open the Public Hearing;
4) Take public testimony from those in favor;
5) Take public testimony from those opposed;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion;
9) Review and accept the AB 1600 Annual Report on Development Impact Fees for the period ending June 30, 2024 (Exhibit 1); and 10) Adopt a Resolution of the City Council making findings and reaffirming the necessity of certain Development Impact Fees.

Staff Report - SR-24-240 - Pdf
Viviana Gonzalez-Osorio, Management Analyst, presented the staff report and responded to questions.

Mayor Matas opened the Public Hearing.

There was no public testimony.

Mayor Matas closed the Public Hearing.

ACTION: Approve Staff recommendation and adopt Resolution No. 2024-044.

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

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

4. Legal Services Agreement (City Attorney)
Recommendation:

Authorize the City Manager to negotiate and execute a contract with Cole Huber, LLP for a retainer amount of $26,840/monthly.

Staff Report - SR-24-242 - Pdf
Item Number: 4.

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City Council
November 19, 2024
Frank Luckino, City Manager, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation.

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

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

5. Internet Crimes Against Children Task Force
Recommendation:

Authorize the City Manager to execute an agreement between the City of Desert Hot Springs and the San Diego Police Department for the Police Department to provide a detective, as a collateral duty, to the SDPD ICAC Task Force, for the term of agreement January 1, 2024, to December 31, 2028; with substantive edits to be negotiated and approved by the City Manager and upon approval as to form by the City Attorney.

Staff Report - SR-24-239 - Pdf
Steven Shaw, Deputy Police Chief, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation.

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

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

6. Payment Register and City Council Expenditures for the Period of October 1, 2024 to October 31, 2024
Staff Report - SR-24-241 - Pdf
ACTION: Approved Staff recommendation to receive and file.

7. Selection of Consultants to Provide Planning and Environmental Services to the City of Desert Hot Springs
Staff Report - SR-24-223 - Pdf
ACTION: Approved Staff recommendation to authorize the City Manager to execute a Professional Services Agreement with MSA Consulting, Placeworks, and Terra Nova Planning and Research.

Item Number: 4.

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City Council
November 19, 2024

8. Contract to Provide Plan Review, Permitting, and Inspection Services by the Interwest Group to the City of Desert Hot Springs on an As-Needed Basis.

Staff Report - SR-24-229 - Pdf
ACTION: Approved Staff recommendation to authorize the City Manager to execute a Professional Services Agreement with Interwest Group not to exceed $250,000 for a period of 5 years.

PUBLIC COMMENTS
None.

ADJOURN
Mayor Matas adjourned the meeting at 6:57 PM.

Jerryl Soriano, CMC, City Clerk
Item Number: 4.

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SR-24-255
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To:

Date: December 12, 2024
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Resolution of Intention for the Formation of CFD No. 2025-1 (Skyborne Village)
RECOMMENDATION:
1) Adopt, Resolution Declaring the Intention to Establish City of Desert Hot Springs CFD 2025-1; and 2) Adopt Resolution Declaring the Intention to Incur Bond Indebtedness within 2025-1.

BACKGROUND:

The developer, Skyborne Ventures LLC, a California corporation (the “Developer”) is the owner of property containing proposed residential lots within the City. Such property is located in the northwestern part of the City, with Indian Canyon Road on the east, Pierson Ave on the south and Highway 62 to the east. The Developer has requested that the City form a community facilities district (“CFD No. 2025-1”) with two improvement areas therein (“Improvement Area No. 1” and “Improvement Area No. 2” and together, the “Improvement Areas”) to encompass such property in accordance with the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to finance the costs of certain public improvements, and maintenance services through the levy of a special tax.

Improvement Area No. 1 is planned to include approximately 286 residential units and Improvement Area No. 2 is planned to include approximately 182 residential units. As the Council is aware, in initial CFD for the development was formed in early 2007 to accommodate more than 2,300 singlefamily residences on approximately 622 acres within five improvement areas, all part of a masterplanned community known as ‘Skyborne”. This request is consistent with the development of the project.

DISCUSSION:

In order to finance the CFD facilities and incidental expenses, the City intends to issue bonds secured by special taxes levied in each improvement area. The maximum amount of bonded indebtedness proposed for Improvement Area No. 1 and Improvement Area No. 2 is $13 million each.

The Developer has requested that the boundaries of CFD No. 2025-1 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-1 presented at this meeting (the “Resolution of Intention”), and that special taxes be levied within the boundaries of Improvement Area No. 1 and Improvement Area No. 2 in accordance with the applicable Rate and Method of Apportionment (each an “RMA”) described in Attachments C and D to the Resolution of Intention. The Resolution of Intention is the first step in the process of forming CFD No. 2025-1. The attached Resolutions declare the City’s intention to establish CFD No. 2025-1, designate Improvement Area Item Number: 5.

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SR-24-255
No. 1 and Improvement Area No. 2 therein and designate area for future annexation to CFD No. 2025-1, its intention to incur bonded indebtedness by CFD No. 2025-1 with respect to Improvement Area No. 1 and Improvement Area No. 2 and call for a public hearing. A public hearing on the matter will take place on January 21, 2025, and at that time the Council will formally consider approval to form CFD No. 2025-1, designate Improvement Area No. 1 and Improvement Area No. 2 therein, designate area for future annexation to CFD No. 2025-1 and hold elections on the approval of the special taxes and the need to incur bonded indebtedness within CFD No. 2025-1 for Improvement Area No. 1 and Improvement Area No. 2.

The proposed CFD No. 2025-1 will establish two categories of special taxes in each improvement area. A “Special Tax A” will finance infrastructure to be completed by the Developer. A “Special Tax B” will provide funds for maintenance of parks, parkways and open space, flood and storm protection services and the operation of storm drainage systems.

With respect to Improvement Area No. 1 and No. 2, the applicable RMA provides that the Fiscal Year 2025-26 Assigned Special Tax Rate A will range from $2,140 to $4,420 per parcel of residential property. The rates vary based upon the size of homes being constructed. The Special Tax A does not escalate.

With respect to Improvement Areas No. 1 and No. 2, the Fiscal Year 2025-26 Maximum Special Tax Rate B will be $275 per parcel of single family residential property, escalating at the greater of the percentage change in the Consumer Price Index or 2% per year.

FISCAL IMPACT:

The Developer has made a deposit of $80,000 to pay for the costs of the formation proceedings which may be reimbursed to the Developer in accordance with a funding agreement to be approved with the Developer. If established and subject to necessary Council and voter approvals, CFD No. 2025-1 will annually levy special taxes on all of the taxable property within each of Improvement Area No. 1 and Improvement Area No. 2 in accordance with the RMA applicable to such Improvement Areas (as attached to the Resolution of Intention). Any bonds issued by CFD No. 2025-1 are not obligations of the City and will be secured solely by the Special Taxes levied in the applicable improvement area within CFD No. 2025-1. The inclusion of the Special Tax B is estimated to produce $128,700 in annual revenues for maintenance services at buildout (based on the initial rate of $275/single-family residential unit).

ATTACHMENTS:
1) Resolution of Intention to Establish CFD 2025-1
2) Resolution of Intention to Incur Bonded Indebtness CFD 2025-1 Item Number: 5.

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4867-0417-6861v4/200812-0004

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE

CITY OF DESERT HOT SPRINGS TO ESTABLISH
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SKYBORNE

VILLAGE) OF THE CITY OF DESERT HOT SPRINGS, TO

AUTHORIZE THE LEVY OF SPECIAL TAXES TO PAY THE

COSTS OF CERTAIN FACILITIES, SERVICES AND EXPENSES

OF THE DISTRICT AND TO PAY DEBT SERVICE ON BONDED

INDEBTEDNESS AND TO DESIGNATE FUTURE ANNEXATION
AREA
Whereas, the City of Desert Hot Springs (the “City”) received a petition signed by the owner of more than ten percent of the land within the boundaries of the territory which is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and
Whereas, as provided in Section 53321 of the Government Code of the State of California the City Council of the City (the “City Council”) desires to adopt this resolution of intention to establish a community facilities district consisting of the territory shown in Attachment “A” hereto and incorporated herein by this reference and such territory proposed to be annexed in the future thereto pursuant to Sections 53329.6, 53339 et seq., and 53350 of the Government Code, which the City Council hereby determines shall be known as “Community Facilities District No. 2025-1 (Skyborne Village) of the City of Desert Hot Springs” (the “Community Facilities District No. 2025-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Attachment “B” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the “Facilities Incidental Expenses”), (3) the maintenance, service, repair, and/or rehabilitation of parks, parkways and open space, flood and storm protection services, and the operation of storm drainage systems (the “Maintenance Services”), and (4) the incidental expenses to be incurred in connection with financing the Services (the “Services Incidental Expenses” and together with the Facilities Incidental Expenses, the “Incidental Expenses”), all as described in Attachment “B” hereto; and Whereas, in accordance with the request of the owner submitting the petition, the City Council has been asked to consider the designation of two improvement areas within proposed Community Facilities District No. 2025-1 with the boundaries shown in Attachment “A” to be known as “Improvement Area No. 1 of Community Facilities District No. 2025-1 (Skyborne Village) of the City of Desert Hot Springs” (“Improvement Area No. 1”) and “Improvement Area No. 2 of Community Facilities District No. 2025-1 (Skyborne Village) of the City of Desert Hot Springs” (“Improvement Area No. 2”); and
Whereas, pursuant to Sections 53329.6, 53339 et seq., and 53350 of the Act, the City Council proposes to designate the property shown in Attachment “A” hereto and designated thereon as “Future Annexation Area” and incorporated herein by this references as territory proposed for annexation to the District in the future (the “Future Annexation Area”); and Item Number: 5.

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Whereas, a parcel or parcels within such Future Annexation Area may be annexed as additional improvement areas (“Future Improvement Area(s)”) within the District and subjected to the special tax of the District with the unanimous consent and approval of the owner or owners of the parcel or parcels at the time of annexation (the “Unanimous Consent and Approval”) and shall be approved by the City Council, acting as the legislative body of the District (the “Legislative Body”), or in compliance with other procedures established by the Act; and
Whereas, the City Council further intends to approve an estimate of the costs of the Facilities, the Maintenance Services and the Incidental Expenses for proposed Community Facilities District No. 2025-1; and
Whereas, it is the intention of the City Council to consider financing the Facilities and the Facilities Incidental Expenses through the formation of Community Facilities District No. 2025-1, the designation of Improvement Area No. 1 and Improvement Area No. 2, and the issuance of bonded indebtedness in an amount not to exceed $13,000,000 and $13,000,000 within the District on behalf of Improvement Area No. 1 and Improvement Area No. 2, respectively, and the levy of Special Tax A (as defined in Attachments “C” and “D” hereto) within Improvement Area No. 1 and Improvement Area No. 2 to pay for the Facilities and the Facilities Incidental Expenses and to pay debt service on the bonded indebtedness to be incurred for Improvement Area No. 1 and Improvement Area No. 2, provided that the bond sales and special tax levy are approved at a separate election to be held within the boundaries of Improvement Area No. 1 and Improvement Area No. 2; and
Whereas, it is the intention of the City Council to consider financing the Maintenance Services and the Services Incidental Expenses through the formation of Community Facilities District No. 2025-1, the designation of Improvement Area No. 1 and Improvement Area No. 2, and the levy of Special Tax B (as defined in Attachments “C” and “D” hereto) within Improvement Area No. 1 and Improvement Area No. 2 to pay for the Maintenance Services and the Services Incidental Expenses; and
Whereas, it is the intention of the City Council to consider financing the Facilities, the Maintenance Services and the Incidental Expenses through the annexation of the Future Annexation Area to one or more Future Improvement Areas of the District and the issuance of bonded indebtedness within each Future Improvement Area not to exceed the amount approved by the owner or owners of the parcel or parcels to be annexed in the related Unanimous Consent and Approval, as approved by the Legislative Body, and the levy of special taxes within each Future Improvement Area so annexed to pay for the Facilities, the Maintenance Services and the Incidental Expenses and to pay debt service on the bonded indebtedness to be incurred for such Future Improvement Area at such rates and method of apportionment approved by the owner or owners of the parcel or parcels to be annexed in the Unanimous Consent and Approval, as approved by the Legislative Body at the time of annexation, in accordance with Sections 53329.6, 53339 et seq., and 53350 of the Act; and Whereas, the property within proposed Community Facilities District No. 2025-1 is included within a portion of City of Desert Hot Springs Community Facilities District No. 2006-1 (“CFD No. 2006-1”) and upon the formation of Community Facilities District No. 2025-1, the City expects to record a notice of cancellation of the special tax lien of CFD No. 2006-1 on the property that is included in Community Facilities District No. 2025-1, including the property in the Future Annexation Area;
Item Number: 5.

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Whereas, the property within proposed Community Facilities District No. 2025-1 is included within City of Desert Hot Springs Drainage Assessment District No. 1 and Lighting, Landscape and Maintenance District No. 2, and upon the formation of Community Facilities District No. 2025-1, the City expects to exclude the property in the District from the foregoing;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The above recitals are true and correct.

Section 2. A community facilities district is proposed to be established under the terms of the Act with Improvement Area No. 1 and Improvement Area No. 2 designated pursuant to Section 53350 of the Act. It is further proposed that the legal boundaries of Community Facilities District No. 2025-1, Improvement Area No. 1 and Improvement Area No. 2 shall be those shown in Attachment “A” hereto, which boundaries shall, upon recordation of the boundary map for proposed Community Facilities District No. 2025-1, include the entirety of any parcel subject to taxation by the District.

The City Council further proposes to designate the Future Annexation Area shown in Attachment “A” hereto as property proposed for annexation into the District in the future, by submittal of a Unanimous Consent and Approval of the owner or owners of such parcel or parcels, as approved by the Legislative Body at the time that such parcel or parcels are annexed to the District.

The proposed boundaries of the District, Improvement Area No. 1, Improvement Area No. 2 and the Future Annexation Area are depicted on the map of proposed Community Facilities District No. 2025-1 attached hereto as Attachment “A.” The City Clerk is hereby directed to sign the original map of the proposed boundaries and record it with all proper endorsements thereon with the County Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

Section 3. The name of the proposed community facilities district shall be “Community Facilities District No. 2025-1 (Skyborne Village) of the City of Desert Hot Springs,” the proposed Improvement Area No. 1 shall be designated as “Improvement Area No. 1 of Community Facilities District No. 2025-1 (Skyborne Village) of the City of Desert Hot Springs,” and the proposed Improvement Area No. 2 shall be designated as “Improvement Area No. 2 of Community Facilities District No. 2025-1 (Skyborne Village) of the City of Desert Hot Springs.” Any property annexed to the District in the future as a Future Improvement Area shall be designated in numerical sequence as “Improvement Area No. __ of Community Facilities District No. 2025-1 (Skyborne Village) of the City of Desert Hot Springs.” Section 4. The Facilities proposed to be provided within Community Facilities District No. 2025-1 and to be financed by Improvement Area No. 1, Improvement Area No. 2 and any Future Improvement Area annexed to the District are public facilities as defined in the Act, which the City, and the other local agencies that will own the Facilities pursuant to a joint community facilities agreement expected to be entered into with such other public agencies in accordance with Section 53316.2 of the Act are authorized by law to construct, acquire, own and operate.

The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District, Improvement Area No. 1 and Improvement Area No. 2 to understand what the funds of Improvement Area No. 1 and Item Number: 5.

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Improvement Area No. 2 may be used to finance. The Facilities Incidental Expenses within Improvement Area No. 1, Improvement Area No. 2 and any Future Improvement Area annexed to the District expected to be incurred include the costs of planning and designing the Facilities, the costs of forming the District and designating any improvement area therein and the costs of issuing bonds and levying and collecting the special tax within Improvement Area No. 1, Improvement Area No. 2 and any Future Improvement Area annexed to the District.

All or a portion of the Facilities may be purchased with District funds as completed public facilities pursuant to Section 53314.9 of the Act or as discrete portions or phases pursuant to Section 53313.51 of the Act and/or may be acquired or constructed with District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities may be financed through a lease or lease-purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District.

The Maintenance Services proposed to be provided within Community Facilities District No. 2025-1 and to be financed by Improvement Area No. 1, Improvement Area No. 2 and any Future Improvement Area annexed to the District are public services as defined in the Act, which the City is authorized by law to provide. The City Council hereby finds and determines that the description of the Maintenance Services herein is sufficiently informative to allow taxpayers within the proposed District, Improvement Area No. 1 and Improvement Area No. 2 to understand what the funds of Improvement Area No. 1 and Improvement Area No. 2 may be used to finance. The Services Incidental Expenses within Improvement Area No. 1, Improvement Area No. 2 and any Future Improvement Area annexed to the District expected to be incurred include the costs of planning the Maintenance Services, the costs of forming the District, the cost of levying and collecting Special Tax B within Improvement Area No. 1, Improvement Area No. 2, and any similar special tax for Maintenance in any Future Improvement Area annexed to the District.

Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act, Special Tax A within Improvement Area No. 1 and Improvement Area No. 2, secured by recordation of a continuing lien against all nonexempt real property within Improvement Area No. 1 and Improvement Area No. 2, sufficient to pay for: (i) the portion of the Facilities and Facilities Incidental Expenses to be financed by Improvement Area No. 1 and Improvement Area No. 2; and (ii) the principal and interest and other periodic costs on bonds or other indebtedness issued by the District for Improvement Area No. 1 and Improvement Area No. 2 to finance the Facilities and Facilities Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash). The rate and method of apportionment and manner of collection of the special tax for Improvement Area No. 1 and Improvement Area No. 2 are described in detail in Attachment “C” and Attachment “D” attached hereto, respectively, which Attachment “C” and Attachment “D” are incorporated herein by this reference. Attachment “C” and Attachment “D” allow each landowner within proposed Improvement Area No. 1 and Improvement Area No. 2 to estimate the maximum amount that may be levied against each parcel. In the first year in which Special Tax A is levied in Improvement Area No. 1 and Improvement Area No. 2, the levy shall include an amount sufficient to repay to the District all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.

The rate and method of apportionment and manner of collection of the special tax for each parcel of Future Annexation Area annexed to the District as a Future Improvement Area Item Number: 5.

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shall be set forth in the Unanimous Consent and Approval of the owner or owners of the parcel or parcels of the property to be annexed and approved by the Legislative Body at the time of annexation.

If Special Tax A of Improvement Area No. 1 or Improvement Area No. 2 are levied against any parcel used for private residential purposes, (i) the maximum special tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to Special Tax A because of its use for private residential purposes and shall not be increased over time, (ii) with respect to Improvement Area No. 1, Special Tax A shall be levied until the final series of bonds for Improvement Area No. 1 has matured, provided that Special Tax A shall not be levied after Fiscal Year 2068-69, (iii) with respect to Improvement Area No. 2, Special Tax A shall be levied until the final series of bonds for Improvement Area No. 2 has matured, provided that Special Tax A shall not be levied after Fiscal Year 2068-69, and (iv) under no circumstances will Special Tax A levied against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within Improvement Area No. 1 or Improvement Area No. 2, as applicable, by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

Special Tax A within Improvement Area No. 1 and Improvement Area No. 2 are based on the expected demand that each parcel of real property within Improvement Area No. 1 or Improvement Area No. 2 will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City and other local government agencies and the existing infrastructure in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines each rate and method of apportionment of the special tax for proposed Improvement Area No. 1 and Improvement Area No. 2 as set forth in Attachment “C” and Attachment “D” to be reasonable.

Special Tax A is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and Special Tax A is not on or based upon the value or ownership of real property. In the event that a portion of the property within Improvement Area No. 1 or Improvement Area No. 2 shall become for any reason exempt, wholly or partially, from the levy of Special Tax A specified on Attachment “C” or Attachment “D,” as applicable, the City Council shall, on behalf of Community Facilities District No. 2025-1, cause the levy to be increased, subject to the limitation of the maximum Special Tax A for a parcel as set forth in Attachment “C” or Attachment “D,” as applicable, the extent necessary upon the remaining property within the proposed Improvement Area No. 1 and Improvement Area No. 2 which is not exempt in order to yield the Special Tax A revenues required for the purposes described in this Section 5. The obligation to pay Special Tax A for Improvement Area No. 1 may be prepaid only as set forth in Section H of Attachment “C.” The obligation to pay Special Tax A for Improvement Area No. 2 may be prepaid only as set forth in Section H of Attachment “D.” If special taxes of any Future Improvement Area annexed to the District are levied against any parcel used for private residential purposes, (i) the maximum special tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the special tax because of its use for private residential purposes and shall not be increased over time except that it may be increased by an amount as set forth in the rate and method of apportionment of the special tax for the Future Improvement Area annexed to the District, (ii) for such term as set forth in the rate and method of apportionment of the special tax for such Future Improvement Area as approved by the Unanimous Consent and Approval and the Legislative Body and (iii) under no circumstances will Item Number: 5.

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the special tax levied against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the Future Improvement Area by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

The special tax within any Future Improvement Area annexed to the District shall be based on the expected demand that each parcel of real property within the Future Improvement Area will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities.

Section 6. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act, Special Tax B within Improvement Area No. 1 and Improvement Area No. 2, secured by recordation of a continuing lien against all nonexempt real property within Improvement Area No. 1 and Improvement Area No. 2, sufficient to pay for the Maintenance Services and the Services Incidental Expenses.

Special Tax B may be increased by the greater of the increase in the consumer price index or two percent (2%) per year, as set forth in the rate and method of apportionment of the special tax for Improvement Area No. 1 and Improvement Area No. 2 as set forth in Attachment “C” and Attachment “D,” respectively. Special Tax B may be levied for such period as the Maintenance Services are needed, as further described in Attachment “C” and Attachment “D” hereto, provided that under no circumstances will Special Tax B levied against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within Improvement Area No. 1 or Improvement Area No. 2, as applicable, by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

Special Tax B within Improvement Area No. 1 and Improvement Area No. 2 are based on the expected demand that each parcel of real property within Improvement Area No. 1 or Improvement Area No. 2 will place on the Maintenance Services. The City Council hereby determines that the proposed Maintenance Services are necessary to meet the increased demand placed upon the City as a result of the development of the land proposed for inclusion in the District. Special Tax B is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and Special Tax B is not on or based upon the value or ownership of real property. In the event that a portion of the property within Improvement Area No. 1 or Improvement Area No. 2 shall become for any reason exempt, wholly or partially, from the levy of Special Tax B specified on Attachment “C” or Attachment “D,” as applicable, the City Council shall, on behalf of Community Facilities District No. 2025-1, cause the levy to be increased, subject to the limitation of the maximum special tax for a parcel as set forth in Attachment “C” or Attachment “D,” as applicable, the extent necessary upon the remaining property within the proposed Improvement Area No. 1 and Improvement Area No. 2 which is not exempt in order to yield the Special Tax B revenues required for the purposes described in this Section 6.

Section 7. A public hearing (the “Hearing”) on the proposed establishment of Community Facilities District No. 2025-1, Improvement Area No. 1 and Improvement Area No. 2, the designation of the Future Annexation Area, and the rate and method of apportionment of the special tax and the bonded indebtedness proposed for the District and Improvement Area No. 1 and Improvement Area No. 2 to finance the Facilities, Maintenance Services and the Incidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on January 21, 2025, at the City Council Chambers, 11-999 Palm Drive, Desert Hot Springs, California Item Number: 5.

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92240. Should the City Council determine to form the District and establish Improvement Area No. 1 and Improvement Area No. 2, a special election will be held within Improvement Area No. 1 and Improvement Area No. 2 to authorize the issuance of bonds of Improvement Area No. 1 and Improvement Area No. 2 and the levy of special taxes within Improvement Area No. 1 and Improvement Area No. 2 in accordance with the procedures contained in Section 53326 of the Act. If held, the proposed voting procedure at the elections will be a landowner vote with each landowner who is the owner of record of land within each of Improvement Area No. 1 and Improvement Area No. 2 at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within Improvement Area No. 1 or Improvement Area No. 2, as applicable. Ballots for the special elections may be distributed by mail or by personal service.

Section 8. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2025-1 and the proposed Improvement Area No. 1 and Improvement Area No. 2 shall be established, as to the rate and method of apportionment of the special taxes within Improvement Area No. 1 and Improvement Area No. 2 and the designation of the Future Annexation Area as property to be annexed to the District in the future, and shall consider:
(a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2025-1 for the exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities District No. 2025-1 will provide the same services as were provided by the capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District No. 2025-1, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be adjusted after the date on which Community Facilities District No. 2025-1 is established, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question.

Section 9. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2025-1 and the Future Annexation Area, may appear and be heard.

Section 10. Each officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 2025-1, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of the public facilities and services by type which will in his or her opinion be required to meet adequately the needs of proposed Community Facilities District No. 2025-1 and an estimate of the cost of providing those public facilities and services, and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred.

Section 11. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized Item Number: 5.

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purpose, including, but not limited to, paying any cost incurred in establishing Community Facilities District No. 2025-1. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.

Section 12. Section 53314.9 of the Act provides that, either before or after formation of the District, the City may accept work in-kind from any source, including, but not limited to, private persons or private entities, and may provide, by resolution, for the use of that work inkind for any authorized purpose and the City Council may enter into an agreement, by resolution, with the person or entity advancing the work in-kind, to reimburse the person or entity for the value, or cost, whichever is less, of the work in-kind, as determined by the City Council, with or without interest, under the conditions specified in the Act. Any work in-kind must be performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority of, the City.

Section 13. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2025-1 and the Future Annexation Area. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the proposed boundaries of the District and the Future Annexation Area at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed District and the Future Annexation Area and a description of the proposed voting procedure for the elections required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

Section 14. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred within Improvement Area No. 1 is Thirteen Million Dollars ($13,000,000). The reasonably expected maximum principal amount of the bonded indebtedness to be incurred within Improvement Area No. 2 is Thirteen Million Dollars ($13,000,000).

Section 15. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment of special taxes).

Section 16. This Resolution shall be effective upon its adoption.

Item Number: 5.

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Passed and Adopted on this 12th day of December, 2024.
_____________________________
Scott Matas, Mayor
Attest:
_____________________________
Jerryl Soriano, CMC
City Clerk
Item Number: 5.

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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF DESERT HOT SPRINGS )
I, Jerryl Soriano, CMC, City Clerk of the City of Desert Hot Springs, California, do hereby certify that Resolution No. 2024-______ was adopted by the City Council of the City of Desert Hot Springs, California, at the Regular meeting of December 12, 2024 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Jerryl Soriano, CMC
City Clerk
Item Number: 5.

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A-1
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ATTACHMENT A
LEGAL DESCRIPTION OF DISTRICT, IMPROVEMENT AREA NO 1.,
IMPROVEMENT ARA NO. 2 AND FUTURE ANNEXATION AREA
Item Number: 5.

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A-2
4867-0417-6861v4/200812-0004
Item Number: 5.

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A-3
4867-0417-6861v4/200812-0004
Item Number: 5.

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4867-0417-6861v4/200812-0004
Real property in the City of Desert Hot Springs, County of Riverside, State of California, described as follows:

IMPROVEMENT AREA NO. 1:

Assessor Parcel Nos.:
667-300-001 through 667-300-058
667-310-001 through 667-310-088
667-320-001 through 667-320-083
667-330-001 through 667-330-076
IMPROVEMENT AREA NO. 2:

Assessor Parcel Nos.:
667-340-001 through 667-340-051
667-350-001 through 667-350-076
667-350-078 through 667-350-080
667-360-001 through 667-360-064
FUTURE ANNEXATION AREA:

Assessor Parcel Nos.:
667-080-002 through 667-080-007
667-100-029
667-100-031
667-100-038
667-120-024 through 667-120-027
667-120-051
Item Number: 5.

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ATTACHMENT B
Types of Facilities and Maintenance Services To Be
Financed By
City of Desert Hot Springs (Skyborne Village)
of the Community Facilities District No. 2025-1
The proposed types of public facilities and expenses to be financed by the District include:

The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, roadway, traffic, administration and general government facilities, animal shelter facilities, fire and safety, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”); (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of Mission Springs Water District which are included in Mission Springs Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

The proposed types of public maintenance services and expenses to be financed by the District include, services permitted under the Mello-Roos Community Facilities Act of 1982, as amended, including, without limitation, maintenance of parks, parkways and open space, flood and storm protection services, and the operation of storm drainage systems, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District.

Item Number: 5.

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ATTACHMENT C

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1

OF THE CITY OF DESERT HOT SPRINGS
(SKYBORNE VILLAGE)
(IMPROVEMENT AREA NO. 1)
An Annual Special Tax A and an Annual Special Tax B (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 1 of Community Facilities District No. 2025-1 (Skyborne Village). The amount of Annual Special Tax A and Annual Special Tax B to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Desert Hot Springs (“City”), acting in its capacity as the legislative body of the CFD by applying the appropriate Annual Special Tax A and Annual Special Tax B for Developed Property, Approved Property, Undeveloped Property and Public Property and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, D, F and G, below. All of the real property within Improvement Area No. 1, unless exempted by law or by the provisions hereof in Section I, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California.
“Administrative Expenses” means all actual or reasonably estimated costs and expenses of the CFD related to Improvement Area No. 1 including but not limited to the following:
(i) the costs of computing Special Tax A and Special Tax B (the “Special Taxes”) and of preparing the annual Special Tax A and Special Tax B collection schedules (whether by the Administrator or designee thereof, or both); (ii) the costs of collecting the Special Taxes (whether by the County, City, or otherwise); (iii) the costs of remitting the Special Taxes to the fiscal agent or trustee for any Bonds; (iv) the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Tax A; (v) the costs of the fiscal agent or trustee (including its legal counsel) in the discharge of the duties required of it under any Indenture; (vi) the costs of the City, or designee of complying with arbitrage rebate, mandated reporting and disclosure requirements of applicable federal and State of California laws, and responding to property owner or Bond owner inquiries regarding the Special Taxes; (vii) the costs associated with the release of funds from any escrow account; (viii) the costs of the City, or designee related to any appeal of a Special Tax; and (ix) an allocable share of the salaries of the City staff and City overhead expense Item Number: 5.

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directly relating to the foregoing. Administrative Expenses shall also include amounts advanced by the City for any administrative purposes of the CFD. “Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year on any Assessor’s Parcel. “Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year on any Assessor’s Parcel. “Appraisal” a report prepared by a MAI Certified Appraiser setting forth at least the minimum market value of Residential Units within each Land Use Category of Residential Property.
“Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax A is being levied. “Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Annual Special Tax A” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below. “Backup Special Tax A” means the Special Tax amount set forth in Section C.1.b., below. “Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Special Tax A in Improvement Area No. 1 of the CFD.
“Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 1 of the CFD.
“Building Permit” means the first legal document issued by a local agency giving official permission for new construction within Improvement Area No. 1. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator. “CFD” means Community Facilities District No. 2025-1 (Skyborne Village) of the The City of Desert Hot Springs established pursuant to the Act.
“City” means The City of Desert Hot Springs.
“City Council” means the City Council of The City of Desert Hot Springs. “Consumer Price Index” or “CPI” means the index published monthly by the U.S.

Department of Labor, Bureau of Labor Statistics for all urban consumers in the RiversideSan Bernardino-Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario area.

Item Number: 5.

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“County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax A and Special Tax B are being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Taxes are being levied.
“Dwelling Unit” or “(D/U)” means a residential unit that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator. “Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section I below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision.
“Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 1” or “IA No. 1” means the property in the CFD designated as Improvement Area No. 1 on the Boundary Map.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 under Section C below. “Maximum Special Tax A” means for each Parcel, the maximum Special Tax A, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel.
“Maximum Special Tax B” means for each Parcel, the maximum Special Tax B, determined in accordance with Section F, which can be levied in any Fiscal Year on such Parcel.
“Minimum Sale Price” means the minimum price at which Residential Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Residential Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category.
“Multifamily Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Dwelling Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the Administrator. “Non-Residential Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of non-residential use.

Item Number: 5.

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“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned parcel number valid as of July 1st for the Fiscal Year for which the Special Tax is being levied.
“Price Point Determination” means the determination of the Minimum Sales Price of Residential Units in Improvement Area No. 1 using actual sales price data; provided, however, if there is no actual sales price data within the Improvement Area, then a Price Point Study will be conducted to determine the Minimum Sales Price. In utilizing actual sales price data, if there are not actual sales prices available for certain products or product types, then the base pricings for such product or product types as set forth in the appraisal report to be used in connection with the sale of Bonds shall apply. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association.
“Proportionately” means for Special Tax A that the ratio of the Annual Special Tax A levy to the applicable Assigned Annual Special Tax A is equal for all applicable Assessor’s Parcels. In the case of Special Tax B, “Proportionately” means that the ratio of the Annual Special Tax B levy to the applicable Maximum Special Tax B is equal for all applicable Assessor’s Parcels. In the case of Developed Property subject to the apportionment of the Annual Special Tax A under Step Four of Section F
“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. “Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel. The determination of Residential Floor Area shall be made by reference to the original Building Permit issued for the Parcel or, if the Building Permit is not available by reference to a similar official document as selected by the Administrator. “Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units.
"Services" means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, maintenance of parks, parkways and open space; flood and storm protection services; and the operation of storm drainage systems. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2025-1.
“Single Family Property” means all Parcels of Residential Property, other than Multifamily Residential Property.

Item Number: 5.

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“Special Tax A” means any of the Special Taxes authorized to be levied on Taxable Property within Improvement Area No. 1 and by the CFD pursuant to the Act to fund the Special Tax A Requirement.
“Special Tax B” means any of the Special Taxes authorized to be levied on Taxable Property within Improvement Area No. 1 and by the CFD pursuant to the Act to fund the Special Tax B Requirement.
“Special Tax A Requirement” means that amount required in any Fiscal Year: (i) to pay annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) to pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) to pay Administrative Expenses; (iv) to pay any anticipated shortfall due based on Special Tax delinquencies in the prior Fiscal Year; (v) to establish or replenish any reserve funds for the outstanding Bonds or with respect to Bonds expected to be issued in such Fiscal Year; (vi) until the final series of Bonds are issued as determined by the Board, to pay directly for acquisition or construction of the facilities eligible under the Act, provided that the inclusion of such amount does not increase the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Step 2 or Step 3 of section D below; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture as determined by the Administrator.
“Special Tax B Requirement” means, subject to the Maximum Special Tax B, that amount to be collected in any Fiscal Year to pay for certain Services as required to meet the needs of the CFD. The costs of Services to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B); less (iii) a credit for funds available to reduce the Annual Special Tax B levy, if any, as determined by the Administrator. Under no circumstances shall the Special Tax B Requirement include funds for Bonds.
“Special Tax” or “Special Taxes” means, as applicable, either or both of Special Tax A and/or Special Tax B.
“Taxable Property” means all Parcels for which the Special Taxes have not been prepaid in full pursuant to Section E. or that are not exempt from the Special Tax pursuant to law or Section I.
“Taxable Unit” means either a Dwelling Unit or an Acre, as shown in Table 1. “Total Tax Burden” means for any Residential Unit, the annual Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees, and charges which are levied on the County secured tax roll and imposed on such Residential Unit and the real property on which it is located and collected by the County on ad valorem tax bills and which are secured by such Residential Unit and the real property on which it is located, assuming such Residential Unit had been completed, sold, and subject to such levies and impositions, excluding (i) PACE Charges (or any other charge entered into voluntarily by the property owner), (ii) homeowners association assessments, and (iii) service charges such as those related to sewer and trash that may be collected on the County secured tax roll.

Item Number: 5.

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“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property or Property Owners’ Association Property.

B. ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with the 2025-2026 Fiscal Year, all Parcels of Taxable Property shall be classified as Developed Property, Approved Property, Undeveloped Property, Public Property and/or Property Owners’ Association Property, and subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C, D, F, and G.

Parcels of Developed Property shall further be classified as Residential Property or NonResidential Property. Parcels of Residential Property shall further be classified as Single Family Property or Multifamily Residential Property. Parcels of Single Family Property shall be further categorized into the applicable Land Use Category based on the Residential Floor Area for such Parcel.

C. MAXIMUM SPECIAL TAX A RATE

1. Developed Property
The Maximum Special Tax A for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Annual Special Tax A described in Table 1 or (ii) the amount derived by application of the Backup Special Tax A.

The Maximum Special Tax A for each Parcel of Non-Residential Property or Multifamily Residential Property shall be the Assigned Annual Special Tax A described in Table 1. a. Assigned Annual Special Tax A
The Assigned Annual Special Tax A for each Parcel of Developed Property is shown in Table 1.

Item Number: 5.

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TABLE 1
Assigned Annual Special Tax A for Developed Property
Land Use Category
Taxable
Unit Residential Floor Area
Assigned
Annual Special
Tax A Per
Taxable Unit

1. Single Family Property D/U Less than 1,450 sq. ft. $2,140

2. Single Family Property D/U 1,450 sq. ft. – 1,599 sq. ft. $2,255

3. Single Family Property D/U 1,600 sq. ft. – 1,749 sq. ft. $2,370

4. Single Family Property D/U 1,750 sq. ft. – 1,899 sq. ft. $2,485

5. Single Family Property D/U 1,900 sq. ft. – 2,049 sq. ft. $2,600

6. Single Family Property D/U 2,050 sq. ft. – 2,199 sq. ft. $2,715

7. Single Family Property D/U 2,200 sq. ft. – 2,349 sq. ft. $2,830

8. Single Family Property D/U 2,350 sq. ft. – 2,499 sq. ft. $2,945

9. Single Family Property D/U Greater than 2,499 sq. ft. $3,060

10. Multifamily Residential Property Acre N/A $16,917

11. Non-Residential Property Acre N/A $16,917
b. Backup Special Tax A
When a Final Map is recorded, the Backup Special Tax A for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax A per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with Non-Residential Property, Multifamily Residential Property, Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section I and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

Notwithstanding the forgoing, if Parcels classified or to be classified as Single Family Property are subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax A shall be recalculated using the methodology described in the preceding paragraph but only for the area that has been changed or modified.

The Backup Special Tax A shall not apply to Multifamily Residential Property, NonResidential Property, Public Property, or Property Owners’ Association Property.

2. Approved Property
The Maximum Special Tax A for each Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax A computed pursuant to Section C.1.b above.

Item Number: 5.

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The Maximum Special Tax A for each Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $16,917 per Acre.

3. Undeveloped Property
The Maximum Special Tax A for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax A
Maximum Special Tax A Per
Acre
$16,917

4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section I.

The Maximum Special Tax A for each Parcel of Public Property and/or Property Owners’ Association Property that is not Exempt Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax A rate per Acre in Table 2 multiplied by the Acreage of such Parcel.

5. Prior to the issuance of the Bonds, the CFD shall determine the Minimum Sales Price of Residential Units within each Land Use Category through a Price Point Determination. If, based upon such Price Point Determination, the Administrator calculates that the Total Tax Burden applicable to Residential Units within one or more Land Use Categories of Residential Property to be constructed within Improvement Area No. 1 exceeds 2.00% of the Minimum Sale Price of such Residential Units, the Special Tax A shall be reduced to the extent necessary to cause the Total Tax Burden applicable to Residential Units within such Land Use Category(ies) not to exceed 2.00% of the Minimum Sale Price of such Residential Units. Each Special Tax A reduction for a Land Use Category shall be calculated by the Administrator separately, and it shall not be required that such reduction be proportionate among Land Use Categories.

If the Special Tax A for any Land Use Category is reduced pursuant to the preceding paragraph, the Administrator shall calculate a reduced Maximum Special Tax A for Non-Residential, Approved and Undeveloped Property, as well as a reduced Backup Special Tax A for Developed Property. The revised Maximum Special Tax A shall be equal to the Maximum Special Tax A as set forth in Table 1 above, reduced by a percentage equal to the weighted average percentage reduction in the Special Tax A for all Land Use Categories of Residential Property. The weighted average percentage will be calculated by taking the sum of the products of the number of Residential Units constructed or expected to be constructed in each Land Use Category multiplied by the percentage change in the Special Tax A for each Land Use Category (or 0 for Land Use Categories that are not changing). This amount is then divided by the total number of Residential Units constructed or expected to be constructed and converted to a percentage. The reduced Maximum Special Tax A shall be used to compute the reduced Backup Special Tax A.

The Special Tax A reductions, if required pursuant to this section, shall be reflected in an amended notice of Special Tax lien, which CFD No. 2025-1 shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit A.

Item Number: 5.

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D. METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX A
Commencing with Fiscal Year 2025-2026 and for each following Fiscal Year, the City Council shall levy the Special Tax A on all Taxable Property until the amount of Special Tax A equals the applicable Special Tax A Requirement in accordance with the following steps:

First: The Special Tax A shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Assigned Annual Special Tax A rate as needed to satisfy the Special Tax A Requirement;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property;
Third: If additional moneys are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, the Special Tax A shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax A for Undeveloped Property;
Fourth: If additional moneys are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, the Special Tax A to be levied on each Parcel of Developed Property for which the Maximum Special Tax A is derived by the application of the Backup Special Tax A shall be increased in equal percentages from the Assigned Annual Special Tax A up to the Maximum Special Tax A for such Parcel; Fifth: If additional moneys are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, the Special Tax A shall be levied Proportionately on each Parcel of Taxable Property that is Public Property or Property Owners’ Association Property at up to 100% of the Maximum Special Tax A for such Parcel.

Notwithstanding the above, under no circumstances will the Special Tax A levied in any Fiscal Year against any Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax A applicable to any other Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

E. PREPAYMENT OF SPECIAL TAX A
The following definitions apply to this Section E:
“CFD Public Facilities” means $8,140,436, expressed in 2024 dollars, which shall increase by the Construction Inflation Index on July 1, 2025, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds. “Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose.

Item Number: 5.

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“Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the CFD Public Facilities minus (i) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (Special Tax A, interest earnings, etc.) allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment. “Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Tax A that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Tax A.

1. Prepayment in Full
The Maximum Special Tax A obligation may be prepaid and permanently satisfied for (i) Parcels of Developed Property, (ii) Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued, and (iv) Parcels of Public Property or Property Owners’ Association Property that are not Exempt Property pursuant to Section I. The Maximum Special Tax A obligation applicable to a Parcel may be fully prepaid and the obligation to pay the Special Tax A for such Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Maximum Special Tax A obligation for such Parcel shall provide the Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Parcel. Within 15 days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the Prepayment Amount for the Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Tax A.

The Prepayment Amount shall be calculated as follows (capitalized terms are defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

Item Number: 5.

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1. Confirm that no Special Tax A delinquencies apply to such Parcel.

2. For a Parcel of Developed Property, compute the Maximum Special Tax A for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax A for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, and for a Parcel of Public Property or Property Owners’ Association Property to be prepaid, compute the Maximum Special Tax A for the Parcel.

3. Divide the Maximum Special Tax A derived pursuant to paragraph 2 by the total amount of Special Tax A that could be levied at the Maximum Special Tax A at build out of all Parcels of Taxable Property based on the applicable Maximum Special Tax A for Parcels of Developed Property not including any Parcels for which the Special Tax A obligation has been previously prepaid.

4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Parcel (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax A prepayments.

9. Determine the Special Tax A levied on the Parcel in the current Fiscal Year which have not yet been paid.

10. Determine the amount the Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

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prepayment of the Maximum Special Tax A obligation for the Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax A prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax A levy as determined pursuant to paragraph 9 above, the Administrator shall remove the current Fiscal Year’s Special Tax A levy for the Parcel from the County tax roll. With respect to any Parcel for which the Maximum Special Tax A obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax A obligation and the release of the Special Tax A lien for the Parcel, and the obligation to pay the Special Tax A for such Parcel shall cease.

Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless the amount of Maximum Special Tax A that may be levied on all Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Bonds in prepayment of the Maximum Special Tax A obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act.

However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.

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partial prepayment amount, the provisions of Section E.1 shall be modified as provided by the following formula:

PP = ((PE –A) x F) +A
These terms have the following meaning:

PP = Partial Prepayment
PE = the Prepayment Amount calculated according to Section E.1 F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax A obligation
A = the Administrative Fees and Expenses determined pursuant to Section E.1 The owner of a Parcel who desires to partially prepay the Maximum Special Tax A obligation for the Parcel shall notify the Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax A obligation, (ii) the percentage of the Maximum Special Tax A obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

With respect to any Parcel for which the Maximum Special Tax A obligation is partially prepaid, the Administrator shall (i) distribute the Partial Prepayment as provided in Paragraph 15 of Section E.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Parcel and that a portion of the Special Tax A obligation equal to the remaining percentage (1.00 - F) of Special Tax A obligation will continue on the Parcel pursuant to Section D.

F. MAXIMUM SPECIAL TAX B RATE

1. Developed Property
The Maximum Special Tax B for Fiscal Year 2025-2026 for each Parcel of Single Family Property, Non-Residential Property or Multifamily Residential Property, classified as Developed Property, shall be shall be the Maximum Special Tax B described in Table 3.

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TABLE 3
Maximum Special Tax B for Developed Property
(Fiscal Year 2025-2026)
Land Use Category
Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
(FY 2025-2026)

1. Single Family Property D/U $275.00

2. Multifamily Residential Property Acre $1,836.76

3. Non-Residential Property Acre $1,836.76
On each July 1, commencing July 1, 2026, the Maximum Special Tax B shall be increased by an amount equal to CPI or two percent (2%), whichever is greater, of the amount in effect for the previous Fiscal Year.

2. Approved Property
The Maximum Special Tax B for Fiscal Year 2025-2026 for each Parcel of Single Family Property, Non-Residential Property or Multifamily Residential Property, classified as Approved Property, shall be the Maximum Special Tax B described in Table 4.

TABLE 4
Maximum Special Tax B for Approved Property
(Fiscal Year 2025-2026)
Land Use Category
Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
(FY 2025-2026)

1. Single Family Property D/U $196.94

2. Multifamily Residential Property Acre $1,315.39

3. Non-Residential Property Acre $1,315.39
On each July 1, commencing July 1, 2026, the Maximum Special Tax B shall be increased by an amount equal to CPI or two percent (2%), whichever is greater, of the amount in effect for the previous Fiscal Year.

3. Undeveloped Property
No Special Tax B shall be levied on Undeveloped Property.

G. METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX B
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council shall levy Special Tax B on all Taxable Property until the amount of Special Tax B equals the Special Tax B Requirement in accordance with the following steps:

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Step One: The Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax B as needed to satisfy the Special Tax B Requirement.

Step Two: If additional moneys are needed to satisfy the Special Tax B after the first step has been completed, the Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Approved Property, at up to 100% of the Maximum Special Tax B applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax B Requirement.

H. PREPAYMENT OF SPECIAL TAX B
No prepayments of Annual Special Tax B are permitted.

I. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property within Improvement Area No. 1 to fewer than 42.82 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 42.82 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 42.82 Acres will be classified as Property Owners’ Association Property or Public Property, and will continue to be subject to Special Tax A.

The Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

I. MANNER OF COLLECTION
The Special Tax A and Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax A and Special Tax B, may collect Special Tax A and Special Tax B at a different time or in a different manner if necessary to meet the financial obligations of Improvement Area No. 1, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Tax A and Special Tax B as permitted by the Act.

J. APPEALS
Any taxpayer may file a written appeal of the Special Tax on his/her Parcel(s) with the Administrator, provided that the appellant is current in his/her payments of Special Tax.

During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Tax on the appellant’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

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The Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified.

The City Council may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

K. TERM OF THE SPECIAL TAX A AND SPECIAL TAX B
For each year that any Bonds are outstanding the Special Tax A shall be levied on all Parcels subject to Special Tax A. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax A may be levied to the extent necessary to reimburse the CFD for uncollected Special Tax A associated with the levy of such Special Tax A, but the Special Tax A shall not be levied after 2068-2069 Fiscal Year.

For each Fiscal Year, Special Tax B shall be levied in perpetuity as long as the Services are being provided.

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EXHIBIT A

CERTIFICATE OF MODIFICATION OF SPECIAL TAX A
(PAGE 1 OF 2)
THE CITY OF DESERT HOT SPRINGS AND COMMUNITY FACILITES DISTRICT NO. 2025-1

CERTIFICATE
I. Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 of Community Facilities District No. 2025-1 (Skyborne Village) of The City of Desert Hot Springs (“CFD No. 2025-1”), the Special Tax A for Residential Property and Non-Residential Property within CFD No. 2025-1 has been modified.

The information in Sections C.1 through C.4 of the Rate and Method of Apportionment, has been modified and is restated as follows:

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TABLE 1
Assigned Annual Special Tax A for Developed Property
Land Use Category
Taxable
Unit Residential Floor Area
Assigned
Annual Special
Tax A Per
Taxable Unit

1. Single Family Property D/U Less than 1,450 sq. ft. $______

2. Single Family Property D/U 1,450 sq. ft. – 1,599 sq. ft. $______

3. Single Family Property D/U 1,600 sq. ft. – 1,749 sq. ft. $______

4. Single Family Property D/U 1,750 sq. ft. – 1,899 sq. ft. $______

5. Single Family Property D/U 1,900 sq. ft. – 2,049 sq. ft. $______

6. Single Family Property D/U 2,050 sq. ft. – 2,199 sq. ft. $______

7. Single Family Property D/U 2,200 sq. ft. – 2,349 sq. ft. $______

8. Single Family Property D/U 2,350 sq. ft. – 2,499 sq. ft. $______

9. Single Family Property D/U Greater than 2,499 sq. ft. $______

10. Multifamily Residential
Property
Acre N/A $______

11. Non-Residential Property Acre N/A $______
b. Backup Special Tax A
When a Final Map is recorded, the Backup Special Tax A for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax A per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with NonResidential Property, Multifamily Residential Property, Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section I and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

The Backup Special Tax A shall not apply to Multifamily Residential Property, NonResidential Property, Public Property, or Property Owners’ Association Property.

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The Maximum Special Tax A for each Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $________ per Acre.

3. Undeveloped Property
The Maximum Special Tax A for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax A
Maximum Special Tax A Per
Acre
$________

4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section I.

II. The Special Tax A may only be modified prior to the first issuance of CFD No. 2025-1 Bonds.

III. Upon execution of this certificate by CFD No. 2025-1, CFD No. 2025-1 shall cause an amended notice of Special Tax A lien for CFD No. 2025-1 to be recorded reflecting the modifications set forth herein.

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CERTIFICATE OF MODIFICATION OF SPECIAL TAX A
(PAGE 2 OF 2)
By execution hereof, the undersigned acknowledge, on behalf of the District and CFD No. 2025- 1, receipt of this certificate and modification of the Rate and Method of Apportionment of Special Tax A as set forth in this certificate.

IMPROVEMENT AREA NO. 1 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SKYBORNE VILLAGE) OF THE CITY OF DESERT HOT SPRINGS
By:_________________________________ Date:______________________ Item Number: 5.

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ATTACHMENT D

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1

OF THE CITY OF DESERT HOT SPRINGS
(SKYBORNE VILLAGE)
(IMPROVEMENT AREA NO. 2)
An Annual Special Tax A and an Annual Special Tax B (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 2 of Community Facilities District No. 2025-1 (Skyborne Village). The amount of Annual Special Tax A and Annual Special Tax B to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Desert Hot Springs (“City”), acting in its capacity as the legislative body of the CFD by applying the appropriate Annual Special Tax A and Annual Special Tax B for Developed Property, Approved Property, Undeveloped Property and Public Property and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, D, F and G, below. All of the real property within Improvement Area No. 2, unless exempted by law or by the provisions hereof in Section I, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California.
“Administrative Expenses” means all actual or reasonably estimated costs and expenses of the CFD related to Improvement Area No. 2 including but not limited to the following:
(i) the costs of computing Special Tax A and Special Tax B (the “Special Taxes”) and of preparing the annual Special Tax A and Special Tax B collection schedules (whether by the Administrator or designee thereof, or both); (ii) the costs of collecting the Special Taxes (whether by the County, City, or otherwise); (iii) the costs of remitting the Special Taxes to the fiscal agent or trustee for any Bonds; (iv) the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Tax A; (v) the costs of the fiscal agent or trustee (including its legal counsel) in the discharge of the duties required of it under any Indenture; (vi) the costs of the City, or designee of complying with arbitrage rebate, mandated reporting and disclosure requirements of applicable federal and State of California laws, and responding to property owner or Bond owner inquiries regarding the Special Taxes; (vii) the costs associated with the release of funds from any escrow account; (viii) the costs of the City, or designee related to any appeal of a Special Tax; and (ix) an allocable share of the salaries of the City staff and City overhead expense directly relating to the foregoing. Administrative Expenses shall also include amounts advanced by the City for any administrative purposes of the CFD.

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“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year on any Assessor’s Parcel. “Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year on any Assessor’s Parcel. “Appraisal” a report prepared by a MAI Certified Appraiser setting forth at least the minimum market value of Residential Units within each Land Use Category of Residential Property.
“Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax A is being levied. “Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Annual Special Tax A” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below. “Backup Special Tax A” means the Special Tax amount set forth in Section C.1.b., below. “Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Special Tax A in Improvement Area No. 2 of the CFD.
“Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 2 of the CFD.
“Building Permit” means the first legal document issued by a local agency giving official permission for new construction within Improvement Area No. 2. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator. “CFD” means Community Facilities District No. 2025-1 (Skyborne Village) of The City of Desert Hot Springs established pursuant to the Act.
“City” means The City of Desert Hot Springs.
“City Council” means the City Council of The City of Desert Hot Springs. “Consumer Price Index” or “CPI” means the index published monthly by the U.S.

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“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax A and Special Tax B are being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Taxes are being levied.
“Dwelling Unit” or “(D/U)” means a residential unit that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator. “Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section I below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision.
“Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 2” or “IA No. 2” means the property in the CFD designated as Improvement Area No. 2 on the Boundary Map.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 under Section C below. “Maximum Special Tax A” means for each Parcel, the maximum Special Tax A, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel.
“Maximum Special Tax B” means for each Parcel, the maximum Special Tax B, determined in accordance with Section F, which can be levied in any Fiscal Year on such Parcel.
“Minimum Sale Price” means the minimum price at which Residential Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Residential Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category.
“Multifamily Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Dwelling Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the Administrator. “Non-Residential Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of non-residential use.

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“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned parcel number valid as of July 1st for the Fiscal Year for which the Special Tax is being levied.
“Price Point Determination” means the determination of the Minimum Sales Price of Residential Units in Improvement Area No. 2 using actual sales price data; provided, however, if there is no actual sales price data within the Improvement Area, then a Price Point Study will be conducted to determine the Minimum Sales Price. In utilizing actual sales price data, if there are not actual sales prices available for certain products or product types, then the base pricings for such product or product types as set forth in the appraisal report to be used in connection with the sale of Bonds shall apply. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association.
“Proportionately” means for Special Tax A that the ratio of the Annual Special Tax A levy to the applicable Assigned Annual Special Tax A is equal for all applicable Assessor’s Parcels. In the case of Special Tax B, “Proportionately” means that the ratio of the Annual Special Tax B levy to the applicable Maximum Special Tax B is equal for all applicable Assessor’s Parcels. In the case of Developed Property subject to the apportionment of the Annual Special Tax A under Step Four of Section F
“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. “Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel. The determination of Residential Floor Area shall be made by reference to the original Building Permit issued for the Parcel or, if the Building Permit is not available by reference to a similar official document as selected by the Administrator. “Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units.
"Services" means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, maintenance of parks, parkways and open space; flood and storm protection services; and the operation of storm drainage systems. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2025-1.
“Single Family Property” means all Parcels of Residential Property, other than Multifamily Residential Property.

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“Special Tax A” means any of the Special Taxes authorized to be levied on Taxable Property within Improvement Area No. 2 and by the CFD pursuant to the Act to fund the Special Tax A Requirement.
“Special Tax B” means any of the Special Taxes authorized to be levied on Taxable Property within Improvement Area No. 2 and by the CFD pursuant to the Act to fund the Special Tax B Requirement.
“Special Tax A Requirement” means that amount required in any Fiscal Year: (i) to pay annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) to pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) to pay Administrative Expenses; (iv) to pay any anticipated shortfall due based on Special Tax delinquencies in the prior Fiscal Year; (v) to establish or replenish any reserve funds for the outstanding Bonds or with respect to Bonds expected to be issued in such Fiscal Year; (vi) until the final series of Bonds are issued as determined by the Board, to pay directly for acquisition or construction of the facilities eligible under the Act, provided that the inclusion of such amount does not increase the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Step 2 or Step 3 of section D below; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture as determined by the Administrator.
“Special Tax B Requirement” means, subject to the Maximum Special Tax B, that amount to be collected in any Fiscal Year to pay for certain Services as required to meet the needs of the CFD. The costs of Services to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B); less (iii) a credit for funds available to reduce the Annual Special Tax B levy, if any, as determined by the Administrator. Under no circumstances shall the Special Tax B Requirement include funds for Bonds.
“Special Tax” or “Special Taxes” means, as applicable, either or both of Special Tax A and/or Special Tax B.
“Taxable Property” means all Parcels for which the Special Taxes have not been prepaid in full pursuant to Section E. or that are not exempt from the Special Tax pursuant to law or Section I.
“Taxable Unit” means either a Dwelling Unit or an Acre, as shown in Table 1. “Total Tax Burden” means for any Residential Unit, the annual Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees, and charges which are levied on the County secured tax roll and imposed on such Residential Unit and the real property on which it is located and collected by the County on ad valorem tax bills and which are secured by such Residential Unit and the real property on which it is located, assuming such Residential Unit had been completed, sold, and subject to such levies and impositions, excluding (i) PACE Charges (or any other charge entered into voluntarily by the property owner), (ii) homeowners association assessments, and (iii) service charges such as those related to sewer and trash that may be collected on the County secured tax roll.

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“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property or Property Owners’ Association Property.

C. MAXIMUM SPECIAL TAX A RATE

TABLE 1
Assigned Annual Special Tax A for Developed Property
Land Use Category
Taxable
Unit Residential Floor Area
Assigned
Annual Special
Tax A Per
Taxable Unit

1. Single Family Property D/U Less than 2,200 sq. ft. $2,940

2. Single Family Property D/U 2,200 sq. ft. – 2,499 sq. ft. $3,310

3. Single Family Property D/U 2,500 sq. ft. – 2,799 sq. ft. $3,680

4. Single Family Property D/U 2,800 sq. ft. – 3,099 sq. ft. $4,050

5. Single Family Property D/U Greater than 3,099 sq. ft. $4,420

6. Multifamily Residential Property Acre N/A $17,027

7. Non-Residential Property Acre N/A $17,027
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b. Backup Special Tax A
When a Final Map is recorded, the Backup Special Tax A for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax A per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with Non-Residential Property, Multifamily Residential Property, Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section I and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

The Backup Special Tax A shall not apply to Multifamily Residential Property, NonResidential Property, Public Property, or Property Owners’ Association Property.

The Maximum Special Tax A for each Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $17,027 per Acre.

3. Undeveloped Property
The Maximum Special Tax A for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax A
Maximum Special Tax A Per
Acre
$17,027

4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section I.

Item Number: 5.

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5. Prior to the issuance of the Bonds, the CFD shall determine the Minimum Sales Price of Residential Units within each Land Use Category through a Price Point Determination. If, based upon such Price Point Determination, the Administrator calculates that the Total Tax Burden applicable to Residential Units within one or more Land Use Categories of Residential Property to be constructed within Improvement Area No. 2 exceeds 2.00% of the Minimum Sale Price of such Residential Units, the Special Tax A shall be reduced to the extent necessary to cause the Total Tax Burden applicable to Residential Units within such Land Use Category(ies) not to exceed 2.00% of the Minimum Sale Price of such Residential Units. Each Special Tax A reduction for a Land Use Category shall be calculated by the Administrator separately, and it shall not be required that such reduction be proportionate among Land Use Categories.

D. METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX A
Commencing with Fiscal Year 2025-2026 and for each following Fiscal Year, the City Council shall levy the Special Tax A on all Taxable Property until the amount of Special Tax A equals the applicable Special Tax A Requirement in accordance with the following steps:

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Developed Property for which the Maximum Special Tax A is derived by the application of the Backup Special Tax A shall be increased in equal percentages from the Assigned Annual Special Tax A up to the Maximum Special Tax A for such Parcel; Fifth: If additional moneys are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, the Special Tax A shall be levied Proportionately on each Parcel of Taxable Property that is Public Property or Property Owners’ Association Property at up to 100% of the Maximum Special Tax A for such Parcel.

E. PREPAYMENT OF SPECIAL TAX A
The following definitions apply to this Section E:
“CFD Public Facilities” means $7,475,014, expressed in 2024 dollars, which shall increase by the Construction Inflation Index on July 1, 2025, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds. “Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose.
“Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the CFD Public Facilities minus (i) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (Special Tax A, interest earnings, etc.) allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment. “Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Tax A that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Tax A.

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for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued, and (iv) Parcels of Public Property or Property Owners’ Association Property that are not Exempt Property pursuant to Section I. The Maximum Special Tax A obligation applicable to a Parcel may be fully prepaid and the obligation to pay the Special Tax A for such Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Maximum Special Tax A obligation for such Parcel shall provide the Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Parcel. Within 15 days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the Prepayment Amount for the Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Tax A.

The Prepayment Amount shall be calculated as follows (capitalized terms are defined below):

1. Confirm that no Special Tax A delinquencies apply to such Parcel.

Item Number: 5.

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5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

9. Determine the Special Tax A levied on the Parcel in the current Fiscal Year which have not yet been paid.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax A obligation for the Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

Item Number: 5.

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The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax A prepayments of Outstanding Bonds or to make debt service payments.

Tenders of Bonds in prepayment of the Maximum Special Tax A obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act.

However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.

2. Prepayment in Part
The Maximum Special Tax A obligation for a Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section E.1 shall be modified as provided by the following formula:

PP = ((PE –A) x F) +A
These terms have the following meaning:

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must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

F. MAXIMUM SPECIAL TAX B RATE

4. Developed Property
The Maximum Special Tax B for Fiscal Year 2025-2026 for each Parcel of Single Family Property, Non-Residential Property or Multifamily Residential Property, classified as Developed Property, shall be shall be the Maximum Special Tax B described in Table 3.

TABLE 3
Maximum Special Tax B for Developed Property
(Fiscal Year 2025-2026)
Land Use Category
Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
(FY 2025-2026)

1. Single Family Property D/U $275.00

2. Multifamily Residential Property Acre $1,274.51

3. Non-Residential Property Acre $1,274.51
On each July 1, commencing July 1, 2026, the Maximum Special Tax B shall be increased by an amount equal to CPI or two percent (2%), whichever is greater, of the amount in effect for the previous Fiscal Year.

5. Approved Property
The Maximum Special Tax B for Fiscal Year 2025-2026 for each Parcel of Single Family Property, Non-Residential Property or Multifamily Residential Property, classified as Approved Property, shall be the Maximum Special Tax B described in Table 4.

Item Number: 5.

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TABLE 4
Maximum Special Tax B for Approved Property
(Fiscal Year 2025-2026)
Land Use Category
Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
(FY 2025-2026)

1. Single Family Property D/U $196.94

2. Multifamily Residential Property Acre $912.74

3. Non-Residential Property Acre $912.74
On each July 1, commencing July 1, 2026, the Maximum Special Tax B shall be increased by an amount equal to CPI or two percent (2%), whichever is greater, of the amount in effect for the previous Fiscal Year.

6. Undeveloped Property
No Special Tax B shall be levied on Undeveloped Property.

Step One: The Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax B as needed to satisfy the Special Tax B Requirement.

H. PREPAYMENT OF SPECIAL TAX B
No prepayments of Annual Special Tax B are permitted.

I. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property within Improvement Area No. 2 to fewer than 39.27 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 39.27 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 39.27 Acres will be classified as Property Owners’ Item Number: 5.

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Association Property or Public Property, and will continue to be subject to Special Tax A.

The Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

I. MANNER OF COLLECTION
The Special Tax A and Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax A and Special Tax B, may collect Special Tax A and Special Tax B at a different time or in a different manner if necessary to meet the financial obligations of Improvement Area No. 2, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Tax A and Special Tax B as permitted by the Act.

J. APPEALS
Any taxpayer may file a written appeal of the Special Tax on his/her Parcel(s) with the Administrator, provided that the appellant is current in his/her payments of Special Tax.

The Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified.

The City Council may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

For each Fiscal Year, Special Tax B shall be levied in perpetuity as long as the Services are being provided.

Item Number: 5.

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EXHIBIT A

CERTIFICATE OF MODIFICATION OF SPECIAL TAX A
(PAGE 1 OF 2)
THE CITY OF DESERT HOT SPRINGS AND COMMUNITY FACILITIES DISTRICT NO. 2025- 1 CERTIFICATE
I. Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Improvement Area No. 2 of Community Facilities District No. 2025-1 (Skyborne Village) of The City of Desert Hot Springs (“CFD No. 2025-1”), the Special Tax A for Residential Property and Non-Residential Property within CFD No. 2025-1 has been modified.

The information in Sections C.1 through C.4 of the Rate and Method of Apportionment, has been modified and is restated as follows:

2. Developed Property
The Maximum Special Tax A for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Annual Special Tax A described in Table 1 or (ii) the amount derived by application of the Backup Special Tax A.

TABLE 1
Assigned Annual Special Tax A for Developed Property
Land Use Category
Taxable
Unit Residential Floor Area
Assigned
Annual Special
Tax A Per
Taxable Unit

1. Single Family Property D/U Less than 2,200 sq. ft. $______

2. Single Family Property D/U 2,200 sq. ft. – 2,499 sq. ft. $______

3. Single Family Property D/U 2,500 sq. ft. – 2,799 sq. ft. $______

4. Single Family Property D/U 2,800 sq. ft. – 3,099 sq. ft. $______

5. Single Family Property D/U Greater than 3,099 sq. ft. $______

6. Multifamily Residential Property Acre N/A $______

7. Non-Residential Property Acre N/A $______
b. Backup Special Tax A
When a Final Map is recorded, the Backup Special Tax A for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by Item Number: 5.

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multiplying the Undeveloped Property Maximum Special Tax A per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with NonResidential Property, Multifamily Residential Property, Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section I and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

The Backup Special Tax A shall not apply to Multifamily Residential Property, NonResidential Property, Public Property, or Property Owners’ Association Property.

The Maximum Special Tax A for each Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $________ per Acre.

3. Undeveloped Property
The Maximum Special Tax A for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax A
Maximum Special Tax A Per
Acre
$________

4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section I.

II. The Special Tax A may only be modified prior to the first issuance of CFD No. 2025-1 Bonds.

Item Number: 5.

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III. Upon execution of this certificate by CFD No. 2025-1, CFD No. 2025-1 shall cause an amended notice of Special Tax A lien for CFD No. 2025-1 to be recorded reflecting the modifications set forth herein.

Item Number: 5.

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IMPROVEMENT AREA NO. 2 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SKYBORNE VILLAGE) OF THE CITY OF DESERT HOT SPRINGS
By:_________________________________ Date:______________________ Item Number: 5.

Page 1552 of 2517 ends

4861-8454-3197v4/200812-0004

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY

OF DESERT HOT SPRINGS TO INCUR BONDED INDEBTEDNESS
WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SKYBORNE VILLAGE) OF THE CITY OF DESERT HOT SPRINGS
AND PROPOSED IMPROVEMENT AREA NO. 1 AND IMPROVEMENT
AREA NO. 2 THEREIN
Whereas, the City Council of the City of Desert Hot Springs (the “City Council”) upon receipt of a petition as provided in Section 53318 of the Government Code of the State of California instituted proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), as amended, to (i) form Community Facilities District No. 2025-1 (Skyborne Village) of the City of Desert Hot Springs (“Community Facilities District No. 2025-1” or the “District”), (ii) designate two improvement areas therein to be known as “Improvement Area No. 1 of Community Facilities District No. 2025-1 (Skyborne Village) of the City of Desert Hot Springs” (“Improvement Area No. 1”) and “Improvement Area No. 2 of Community Facilities District No. 2025-1 (Skyborne Village) of the City of Desert Hot Springs” (“Improvement Area No. 2”), and (iii) designate an area for future annexation (“Future Annexation Area”) to the District as one or more future improvement areas (“Future Improvement Areas”); and Whereas, the purpose of the proposed District is to, among other purposes, finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities described in Attachment “A” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”); and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the “Incidental Expenses”); and Whereas, the City Council estimates the amount required to finance the Facilities and Incidental Expenses is approximately $85,000,000 based on 2024 estimates provided to the City Council; and
Whereas, in order to finance a portion of the Facilities and Incidental Expenses, the City Council intends to authorize the issuance of bonds in the maximum aggregate principal amount of $13,000,000 within the proposed Improvement Area No. 1 and $13,000,000 within the proposed Improvement Area No. 2, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in proposed Improvement Area No. 1 and Improvement Area No. 2, respectively, other than those properties exempted from taxation in the rate and method of apportionment set forth in Attachment “C” and Attachment “D” to Resolution No. 2024-_____ (the “Resolution of Intention”); and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The above recitals are true and correct.

Section 2. It is necessary to incur bonded indebtedness in one or more series within the boundaries of proposed Improvement Area No. 1 and Improvement Area No. 2 of Community Facilities District No. 2025-1 in an amount not to exceed $13,000,000 and $13,000,000, respectively, to finance the costs of the Facilities and Incidental Expenses, as permitted by the Act. Upon the annexation to the District of parcels of Future Annexation Area to one or more Future Improvement Areas as set forth in the Resolution of Intention, the not-toItem Number: 5.

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2 4861-8454-3197v4/200812-0004
exceed amount of bonded indebtedness necessary to be incurred by the District on behalf of such Future Improvement Areas shall be set forth in each unanimous consent and approval of the owner or owners of the parcel or parcels (the “Unanimous Consent and Approval”) submitted for annexation of the Future Annexation Area and shall be approved by the City Council, acting as the legislative body of the District (the “Legislative Body”) at the time of such annexation.

Section 3. The bonded indebtedness of proposed Improvement Area No. 1, Improvement Area No. 2 and of any Future Improvement Area annexed to the District will be incurred for the purpose of financing the costs of the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve funds for the bonds, the financing of costs associated with the issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act.

Section 4. It is the intent of the City Council to authorize the sale of bonds in one or more series and at a maximum interest rate not in excess of 12 percent per annum, or a higher rate not in excess of the maximum rate permitted by law at the time that the bonds are issued (i) within proposed Improvement Area No. 1 in one or more series, in the maximum aggregate principal amount of $13,000,000 for proposed Improvement Area No. 1, (ii) within proposed Improvement Area No. 2 in one or more series, in the maximum aggregate principal amount of $13,000,000 for proposed Improvement Area No. 2 and (iii) for any Future Improvement Area proposed to be annexed to the District in a maximum amount to be approved by the owner or owners of the parcel or parcels to be annexed in the Unanimous Consent and Approval, as approved by the Legislative Body. The term of the bonds of each series shall be determined pursuant to a resolution of the Legislative Body authorizing the issuance of the bonds of such series, but such term shall in no event exceed 35 years from the date of issuance of the bonds of such series.

Section 5. A public hearing (the “Hearing”) on the proposed issuance of bonded indebtedness shall be held at 6:00 p.m. or as soon thereafter as practicable, on January 21, 2025, at the City Council Chambers, 11-999 Palm Drive, Desert Hot Springs, California 92240.

Section 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within proposed Community Facilities District No. 2025-1, may appear and be heard.

Section 7. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2025-1. Such publication shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of proposed Community Facilities District No. 2025-1 at least 15 days prior to the Hearing.

Section 9. This Resolution shall be effective upon its adoption.

Item Number: 5.

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Passed and Adopted on this 12th day of December, 2024.
_____________________________
Scott Matas, Mayor
Attest:
_____________________________
Jerryl Soriano, CMC
City Clerk
Item Number: 5.

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4 4861-8454-3197v4/200812-0004

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Jerryl Soriano, CMC
City Clerk
Item Number: 5.

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ATTACHMENT A
Types of Facilities To Be
Financed By
City of Desert Hot Springs Community Facilities District No. 2025-1 (Skyborne Village)
The proposed types of public facilities and expenses to be financed by the District include:

Item Number: 5.

Page 1557 of 2517 ends

Page 1558 of 2517 ends

SR-24-247
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: December 12, 2024
Department: Police Department
Prepared by: Steven Shaw, Deputy Police Chief
Subject: Post-Release Accountability and Compliance Team MOU RECOMMENDATION:

Authorize the City Manager to execute an agreement between the City of Desert Hot Springs and the County of Riverside for the Police Department to provide an officer to the Post-release Accountability and Compliance Team for the term of agreement through June 30, 2028; with substantive edits to be negotiated and approved by the City Manager and upon approval as to form by the City Attorney.

BACKGROUND:

The Post-release Accountability and Compliance Team (PACT) is a county-wide, multi-jurisdictional team composed of Probation, Riverside County Police Departments, the Riverside County Sheriff’s Department, and the Riverside County District Attorney. PACT was formed after the Public Safety Realignment Act of 2011 moved the monitoring of convicted felons and parolees from State Parole to the Riverside County Probation Department. PACT’s primary mission is to focus on high risk and at large offenders that pose the most risk to public safety.

DISCUSSION:

The MOU before you originated in 2023 and will continue through June 30, 2025. The MOU will then automatically renew annually for each fiscal year through June 30, 2028. The Desert Hot Springs Police Department traditionally assigns one officer full time to the PACT team. Currently the Police Department does not have an officer assigned to the PACT team due to staffing. Continuing our MOU with the County of Riverside Probation Department allows us to assign an officer to the PACT team during the period of this MOU once other staffing priorities are met.

FISCAL IMPACT:

The Desert Hot Springs Police Department is allocated an annual maximum reimbursement of $238,150.00. The reimbursement covers salary and benefits, and supplies and equipment, for an officer assigned to the PACT team.

ATTACHMENTS:
1) AB 109 PACT MOU FY 2024-25
Item Number: 6.

Page 1559 of 2517 ends

THE COUNTY OF RIVERSIDE, ON BEHALF OF ITS

PROBATION DEPARTMENT, AND PARTICIPATING

POST-RELEASE ACCOUNTABILITY AND COMPLIANCE TEAM (PACT)

LOCAL LAW ENFORCEMENT AGENCIES FOR PUBLIC SAFETY REALIGNMENT

MEMORANDUM OF UNDERSTANDING
FY 2024-2025
Item Number: 6.

Page 1560 of 2517 ends

THE COUNTY OF RIVERSIDE, ON BEHALF OF ITS

PROBATION DEPARTMENT, AND

POST-RELEASE ACCOUNTABILITY AND COMPLIANCE TEAM

FOR PUBLIC SAFETY REALIGNMENT

MEMORANDUM OF UNDERSTANDING
Page | 2

TABLE OF CONTENTS

1.0 Background............................................................................................................ 3

2.0 Parties and Purpose................................................................................................ 3

3.0 Probation Officer Role ............................................................................................ 4

4.0 Term ...................................................................................................................... 4

5.0 Amendment or Termination of MOU ...................................................................... 4

6.0 Audits.................................................................................................................... 5

7.0 Records Retention.................................................................................................. 5

8.0 Financial Reports.................................................................................................... 6

9.0 Confidentiality........................................................................................................ 6

10.0 Hold Harmless and Indemnification ........................................................................ 6

11.0 Assignment ............................................................................................................ 6

12.0 License and Certifications ....................................................................................... 7

13.0 Compliance, Governing Law, and Severability ......................................................... 7

14.0 Compensation ........................................................................................................ 7

14.1 Maximum Amount ................................................................................................7

14.2 Method, Time, and Schedule/Condition of Payments..........................................7

14.3 Use of Funds..........................................................................................................8

14.4 Disallowance..........................................................................................................9

14.5 Availability of Funding...........................................................................................9

15.0 Notices................................................................................................................... 9

16.0 Merger Clause .......................................................................................................10

17.0 Electronic Signatures.............................................................................................10 SIGNATURE PAGES ..........................................................................................................11 Exhibit A: Quarterly Financial Summary Report Template ................................................24 Exhibit B: PACT Invoice Template ....................................................................................25 Exhibit C: Distribution of Annual PACT Allocation by City .................................................26 Exhibit D: PACT Frequently Asked Questions....................................................................27 Exhibit E: Funding & Reimbursement Policy & Guidelines for Regional PAC Teams...........30 Item Number: 6.

Page 1561 of 2517 ends

THE COUNTY OF RIVERSIDE, ON BEHALF OF ITS

PROBATION DEPARTMENT, AND

POST-RELEASE ACCOUNTABILITY AND COMPLIANCE TEAM

FOR PUBLIC SAFETY REALIGNMENT

MEMORANDUM OF UNDERSTANDING
Page | 3

1.0 BACKGROUND
The Public Safety Realignment Act of 2011 (Realignment) implementation resulted in specified convicted felons and parolees who were previously monitored by State Parole to be supervised by the Riverside County Probation Department (hereinafter Probation). On August 30, 2011, the Community Corrections Partnership Executive Committee (CCPEC) of Riverside County (County) voted unanimously for the need of a county-wide law enforcement component.

The eleven (11) city police chiefs, the Riverside County Sheriff, the Riverside County District Attorney and Probation have built the infrastructure to support this type of critical enforcement. The Post-release Accountability and Compliance Team (hereinafter PACT) is a county-wide, multi-jurisdictional team composed of Probation, the Banning Police Department, Beaumont Police Department, Blythe Police Department, Cathedral City Police Department, Corona Police Department, Desert Hot Springs Police Department, Hemet Police Department, Indio Police Department, Menifee Police Department, Murrieta Police Department, Riverside Police Department, Riverside County District Attorney, and the Riverside County Sheriff’s Department representing the seventeen Sheriff’s contract cities within the County.

The primary mission of PACT isto work with Probation to focus on “high-risk” and “at-large” realignment offenders that pose the most risk to public safety. PACT is dedicated to:
• Identifying and investigating “non-compliant” realignment offenders, • Locating and apprehending “at-large” and “high-risk” realignment offenders, and • Performing probation compliance sweeps.

Through sustained, proactive and coordinated investigations, PACT will be able to share information, serve warrants, locate and apprehend violators, and reduce the number of realignment offenders who abscond. The support of the PACT allows Probation more time and resources to focus on case management, addressing treatment needs, and ensuring compliance with Court-ordered conditions.

2.0 PARTIES AND PURPOSE
This Memorandum of Understanding (MOU) is entered into by and between Probation, the Banning Police Department, Beaumont Police Department, Blythe Police Department, Cathedral City Police Department, Corona Police Department, Desert Hot Springs Police Item Number: 6.

Page 1562 of 2517 ends

THE COUNTY OF RIVERSIDE, ON BEHALF OF ITS

PROBATION DEPARTMENT, AND

POST-RELEASE ACCOUNTABILITY AND COMPLIANCE TEAM

FOR PUBLIC SAFETY REALIGNMENT

MEMORANDUM OF UNDERSTANDING
Page | 4
Department, Hemet Police Department, Indio Police Department, Menifee Police Department, Murrieta Police Department, Riverside Police Department, Riverside County Sheriff’s Department Coachella, Lake Elsinore and San Jacinto stations for monetary reimbursement from realignment funds for expenses related to their participation in PACT.

The police chief of the Murrieta Police Department is the voting member of the CCPEC and represents the PACT local law enforcement agencies participating in this MOU, including for receipt of notices under section 15.

The parties agree to the terms and conditions of this MOU, which will be effective immediately and remain in effect until terminated or modified as defined in section 4.0 of this MOU.

3.0 PROBATION OFFICER ROLE:

Probation Officers are peace officers under Penal Code section 830.5 whose authority extends to any place in the state while engaged in the performance of the duties of their respective employment and for the purpose of carrying out the primary function of their employment, as follows:
1) To conditions of parole, probation, mandatory supervision, or post-release community supervision by any person in this state on parole, probation, mandatory supervision, or post-release community supervision.
2) To the escape of any inmate or ward from a state or local institution. 3) To the transportation of persons on parole, probation, mandatory supervision, or post-release community supervision.
4) To violations of any penal provisions of law which are discovered while performing the usual or authorized duties of his or her employment. 5) To the rendering of mutual aid to any other law enforcement agency.

4.0 TERM
This MOU became effective upon execution by the Chief Probation Officer of Riverside County and the Chiefs or City Managers of each participating PACT agency or their designees. The original term of this MOU commenced on July 1, 2023, and is now in its second year, continuing through June 30, 2025. Following this period, the MOU will automatically renew annually for each fiscal year from July 1 to June 30, and shall remain in effect until June 30, 2028, unless modified or terminated as specified in Section 5.0 of this MOU.

5.0 AMENDMENT OR TERMINATION OF MOU
Item Number: 6.

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This MOU may be amended at any time with the written concurrence of all parties. This MOU, along with any incorporated attachments, fully expresses all understandings of the parties concerning all matters covered and shall constitute the total MOU. No addition to, or alteration of, the terms of this MOU whether by written or verbal understanding of the parties, their officers, agents or employees, shall be valid unless made in the form of a written amendment to this MOU formally approved and executed by both Probation and each participating PACT agency. Consideration for amendment will be given upon written notification by one party to the others. The parties will review this MOU at least annually and modify as needed.

Any participating PACT agency can withdraw participation in this MOU with or without cause upon thirty (30) days written notification to the other parties. Participation withdrawal will take effect thirty (30) days following receipt of notification and terms and conditions of this MOU continue in full force for the remaining PACT agencies.

This MOU can be terminated with or without cause by any party upon thirty (30) days written notification to the other parties or due to unavailability of funding. Termination of the MOU will take effect thirty (30) days following receipt of the written notice of termination or upon effective date of funding expiration.

6.0 AUDITS
The parties agree that any duly authorized representative of the Federal, State, or local government shall have the right to audit, inspect, copy or transcribe any pertinent records, electronic data and documentation relating to this MOU. Any audit exception, as it relates to this MOU, resulting from an audit conducted by any duly authorized representative of the Federal, State, or local government shall be the responsibility of the participating PACT agencies. Any audit disallowance adjustments must be paid in full upon demand if required, or may be withheld at the discretion of the Chief Probation Officer against amounts due to PACT agencies under this MOU or any PACT agreement with Probation.

7.0 RECORDS RETENTION
Each party agrees to retain all records pertaining to this MOU for the period indicated in the Riverside County Records Retention General Schedule per Board of Supervisors Policy A-43 unless otherwise indicated by the source of funds. If, at the end of the retention period, there is ongoing litigation or an audit involving those records, each party shall retain the original records until the resolution of such litigation or audit.

Item Number: 6.

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8.0 FINANCIAL REPORTS
Fourfinancial reports are to be submitted quarterly by each PACT partner during each fiscal year covering the following reporting periods:

Quarter Reporting Period
1 July 1 – September 30
2 July 1 – December 31
3 July 1 – March 31
4 July 1 – June 30
The CCPEC-approved template for financial report submission is attached hereto and incorporated herein as Exhibit A. The summary PACT report for each quarter will be compiled and presented to CCPEC by Probation. Due dates for quarterly financial reports are established annually by the CCPEC.

9.0 CONFIDENTIALITY
All parties agree to maintain the confidentiality of all information in accordance with all applicable Federal, State and local laws and regulations.

10.0 HOLD HARMLESS AND INDEMNIFICATION
Each participating agency agrees to indemnify and hold the other participating agencies harmless from any and all liability for death, injury and/or damage, actual or alleged, to persons or property, arising out of, or resulting from negligent acts or omissions of the indemnifying party or its employees. When Probation, PACT itself, any participating agency, or its agents, are held liable for deaths or injuries to persons or property, each party’s liability for contribution or indemnity for such injuries shall be based proportionately upon the contributions of each participating agency. In the event of liability imposed upon any of the participating agencies for death, injury, and/or damage which is caused by the negligent or wrongful act or omission of any of the parties in the performance of this MOU, the contribution of the party or parties not directly responsible for the negligent or wrongful act or omission shall be limited to $100.00. The party or parties directly responsible for the negligent or wrongful acts or omissions shall indemnify, defend, and hold the other parties harmless from any liability for death, injury and/or damage arising out of the performance of this MOU.

11.0 ASSIGNMENT
Item Number: 6.

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This MOU shall not be assigned by any party hereto, either in whole or in part, without prior written consent ofthe other parties. Any assignment or purported assignment ofthis MOU without the prior written consent will be deemed void and of no force or effect.

12.0 LICENSE AND CERTIFICATIONS
When applicable, all parties verify upon execution of this MOU, that all work performed pursuant to this MOU will be performed by properly trained and licensed/certified staff who possess current and valid license/certifications in compliance with any local, State, and Federal laws.

13.0 COMPLIANCE, GOVERNING LAW, AND SEVERABILITY
The parties shall comply with all applicable Federal, State, and local laws and regulations.

In the event there is a conflict between the various applicable laws and regulations, the parties shall comply with the more restrictive law or regulation. Any legal action related to this MOU shall be filed only in the Superior Court for the State of California in Riverside, California. All parties shall be obligated to attend a mediation session before a neutral thirdparty mediator prior to the filing of any legal action.

If any provision in this MOU is held by a court of competent jurisdiction to be invalid, void or enforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

14.0 COMPENSATION

14.1 Maximum Amount:

The maximum allowable costs under this MOU shall not exceed the approved CCPEC for each annual fiscal year’s budget. Annual allocations assigned to each PACT agency are detailed in the annual budget proposal Exhibit C, attached hereto, and incorporated herein. It is agreed that a revised budget will be submitted to the CCPEC for approval each FISCAL year.

14.2 Method, Time and Schedule/Condition of Payments:

Within thirty (30) days of the end of each month in which services were rendered, each participating PACT agency will prepare and submit to Probation’s Accounts Payable, via email [email protected], a reimbursement claim/journal entry for Item Number: 6.

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services and expenditures performed and incurred during the month. Using the invoice template, attached hereto and incorporated herein as Exhibit B, claim documentation will include, but is not limited to, an invoice with an itemized expenditure summary of Salaries & Benefits and Services & Supplies; and copies of timesheets, pay registers, and vendor invoices or receipts, as applicable.

Upon review and approval, Probation shall process each claim within fifteen (15) business days. The corresponding payment voucher will be forwarded to the County Auditor-Controller’s office for processing. Invoices will be held beyond the fifteen (15) business days when an annual fiscal year realignment budget has not been approved by the CCPEC and the Riverside County Board of Supervisors. Upon approval by both governing bodies, held invoices will be released to the Auditor-Controller’s office for processing.

Each year, estimates for the month ending June 30 should be provided to Probation by June 20 with the final invoice due July 31 or next available working day.

If PACT ceases provision ofservicesfor any period, then no payment will apply for that period. Probation will reimburse participating PACT agencies for services provided in accordance with the terms and conditions contained herein.

Additional clarifications on the reimbursement process are provided as part of the Frequently Asked Questions, attached hereto and incorporated herein as Exhibit D.

14.3 Use of Funds:

PACT agencies shall not use any funds received pursuant to this MOU for any other program, project, or purpose. The parties shall not use realignment fundsto supplant by claiming reimbursement from Probation for any costs which have been paid by another source of revenue. The parties agree not to use funds received pursuant to this MOU, either directly or indirectly, for purposes of obtaining funds under any other program without prior written approval of Probation. Additional guidelines for use of fundsreceived pursuant to this MOU are provided in the Funding and Reimbursement Policy and Guidelines for Regional PAC Teams as developed by the Association of Riverside County Chiefs of Police and Sheriff (ARCCOPS) in cooperation with Probation, attached hereto and incorporated herein as Exhibit E. Any revisions by ARCCOPS to the guidelines will supersede the attached exhibit.

Item Number: 6.

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14.4 Disallowance:

In the event a party receives paymentforservices pursuantto thisMOUwhich islater disallowed for nonconformance with the terms and conditions herein by Probation, the party shall promptly refund the disallowed amount to Probation upon request, or at its option, Probation may offset the amount disallowed from any payment due to the party under any PACT agreement with Probation.

14.5 Availability of Funding:

Probation’s obligation for payment under this MOU is contingent upon the availability of funds from which payment can be made.

15.0 NOTICES
All notices, claims, correspondence, reports, and/or statements authorized or required by this MOU shall be addressed for each location as follows:

Riverside County Probation Department
Probation Administration
Administrative Services Manager III – Fiscal Services Division P.O. Box 833
Riverside, CA 92502
(951) 955-2983
Post-release Accountability and Compliance Team
Tony Conrad, Chief of Police
Murrieta Police Department
2 Town Square
Murrieta, CA 92562
(951) 461-6358
[email protected]
All notices shall be deemed effective when they are made in writing, addressed as indicated above, and deposited in the United States mail. Any notices, correspondence, reports, and/or statements authorized or required by this MOU addressed in any other fashion will not be acceptable.

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16.0 MERGER CLAUSE
This MOU, including any attachments or exhibits, constitutes the entire agreement of the parties with respect to its subject matter and supersedes all prior and contemporaneous representations, proposals, discussions and communications, whether oral or in writing, including the FY23-24 MOU.

17.0 ELECTRONIC SIGNATURES
Each party of this MOU agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal. Civ. Code §§ 1633.1 to 1633.17), for executing this MOU. The parties further agree that the electronic signature(s) included herein are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of Section 1633.2 of the Civil Code.

Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
_____________________________________ __________________ Christopher H. Wright, Chief Probation Officer Date
Riverside County Probation Department

APPROVED AS TO FORM
Minh C. Tran
County Counsel
BY: ___________________________
Lisa Sanchez
Deputy County Counsel
DATE: _________________________
Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
________________________________ ________________________ Doug Schulze, City Manager Date
City of Banning
Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
_____________________________________ __________________ Sean Thuilliez, Chief of Police Date
Beaumont Police Department
Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
_____________________________________ __________________ Mallory Crecelius, City Manager Date
City of Blythe
Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
_____________________________________ __________________ Charles P. McClendon, City Manager Date
Cathedral City
Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
_____________________________________ __________________ Robert Newman, Chief of Police Date
Corona Police Department
Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
_____________________________________ __________________ Frank J. Luckino, City Manager Date
City of Desert Hot Springs
Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
_____________________________________ __________________ Michael Arellano, Chief of Police Date
Hemet Police Department
Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
_____________________________________ __________________ Bryan Montgomery, City Manager Date
City of Indio
Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
_____________________________________ __________________ Armando G. Villa, City Manager Date
City of Menifee
Item Number: 6.

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Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
_____________________________________ __________________ Mike Futrell, City Manager Date
City of Riverside
ATTEST:
_____________________________________
Donesia Gause, City Clerk

APPROVED AS TO FORM
BY:___________________________
Rahman N. Gerren
Deputy City Attorney
CERTIFIED AS TO FUNDS AVAILABILITY:

BY:___________________________
Assistant Chief Financial Officer
Item Number: 6.

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SIGNATURE PAGE
IN WITNESS WHEREOF, this MOU has been executed by and on behalf of Riverside County Probation Department and the participating Post-release Accountability and Compliance Team local law enforcement agencies by the signatures of the duly authorized respective agents, as of the day and year written herein below.
_____________________________________ __________________ Chad Bianco Date
Riverside County Sheriff-Coroner
(Coachella, Lake Elsinore and San Jacinto Stations)

APPROVED AS TO FORM
Minh C. Tran
County Counsel
BY: ___________________________
Amrit P. Dhillon
Deputy County Counsel
DATE: _________________________
Item Number: 6.

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Page | 24 CCPEC Agency: (Department Name)
Dept Number (if applicable): (Budget Unit)
Reporting Period (1, 2, 3, or 4) (Period #)

EXPENDITURES
FY (YY/YY) 0% (Reporting Period Dates) (Next Period Dates) FY (YY/YY) Year-end Year-end Full-Year (On-Going) Level Description Budget Of Budget Actuals Estimates Estimates Variance Estimates 1 Salaries & Benefits $0 $0 $0 $0 $0 $0 $0
2 Supplies & Services 0 0 0 0 0 0 0
3 Other Charges 0 0 0 0 0 0 0
4 Fixed Assets 0 0 0 0 0 0 0
7 Interfund Transfers 0 0 0 0 0 0 0
Total Expenditures $0 $0 $0 $0 $0 $0 $0

DEPARTMENTAL REVENUE
FY (YY/YY) 0% (Reporting Period Dates) (Next Period Dates) FY (YY/YY) Year-end Year-end Full-Year (On-Going) Code Description Budget Of Budget Actuals Estimates Estimates Variance Estimates $0 $0 $0 $0 $0 $0 $0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
Total Dept. Revenue $0 $0 $0 $0 $0 $0 $0
NET COST $0 $0 $0 $0 $0 $0 $0
CCPEC Agency: (Department Name)
Dept Number (if applicable): (Budget Unit)
Reporting Period (1, 2, 3, or 4) (Period #)

1. Description of current budget status, including any known or potential problem areas within the budget and options and/or recommendations for addressing these issues.

2. Provide a summary of AB 109 activities performed during the reporting period (if desired, copies of the monthly CCPEC reports may be attached).

Reporting Period:

Prepared by: Approved by:

Date: Date:

Exhibit A-Quarterly Financial Summary Report Template
AB 109 Community Corrections Partnership Executive Committee FY 2024/25 Financial Report - Operating Funds
(Reporting Period Dates)

NARRATIVE
(Please include in this section budget details such as number of filled/vacant positions, fixed asset expenditures, etc.) (Reporting Period Dates)
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EXHIBIT B

PACT INVOICE TEMPLATE
(City Logo/ Letterhead) INVOICE:

DATE:

DUE DATE:

Bill to:

RIVERSIDE COUNTY PROBATION DEPARTMENT

FISCAL UNIT ADMIN SVC MGR
PO BOX 833
RIVERSIDE, CA 92502
Invoice Type: PACT Description: (Month) Invoice
Description Total Price
PACT (City Name) Reimbursement for (Month) Services
1) Salaries and Benefits (Period: MM/DD/YR-MM/DD/YR)
2) Supplies(receipts attached)
Total Due $ -
Documentation with invoice includes copies of timesheets for billing period and verification of salary and benefits rates charged. Please note, for confidentiality purpose, original timesheets and any further verification of employees compensation will be on file with the City of (City Name), Human Resources Department and available to an authorized auditing official for review.

I, the undersigned, hereby certify the above claim submitted for reimbursement are true and correct Realignment expenditures in accordance with the Memorandum of Understanding (MOU) between the Riverside County Probation Department and the Post-release Accountability and Compliance Team (PACT).

Signature Title Date
Please remit payment to:
(Provide city information)
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EXHIBIT C
DISTRIBUTION OF ANNUAL PACT ALLOCATION BY CITY FY24-25

EAST ALLOCATION
City of Cathedral City (Sergeant) $297,000.00
City of Cathedral City $238,150.00
City of Coachella $238,150.00
City of Desert Hot Springs $238,150.00
City of Indio $238,150.00
City of Blythe $238,150.00
City of Blythe $238,150.00
WEST
City of Corona $238,150.00
City of Corona (Corporal) $261,800.00
City of Riverside $238,150.00
City of Riverside (Sergeant) $297,000.00

CENTRAL
City of Banning $238,150.00
City of Banning $238,150.00
City of Beaumont $238,150.00
City of Beaumont $238,150.00
City of Hemet (Sergeant) $297,000.00
City of Lake Elsinore $238,150.00
City of Menifee $238,150.00
City of Murrieta $238,150.00
City of San Jacinto $238,150.00
------------------------------------------------------------------------------------------------------------------------ Total Annual Pact Allocation FY24/25 $4,963,200.00
*PACT agencies with sergeants assigned to the teams receive $297,000 each, PACT agencies without sergeants assigned to the teams receive $238,150, and corporals receive $261,800, as dictated by the approved ARCCOPS memorandum (Exhibit E) revised 6/2024.

Item Number: 6.

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Exhibit D
Frequently Asked Questions

1. Year End:
a. What is a year-end estimate claim and what needs to be included? i. A year-end estimate claim allows Probation to encumber funds for payment from the current fiscal year into the beginning of the next to cover expenditures incurred during the month of June and have a record that the final submittal is pending.
ii. If funds are not encumbered to cover final year-end claims and a claim is submitted, the reimbursement may be charged against the PACT agency’s allocation for the next fiscal year.
iii. To submit a year-end estimate claim form:

1. Use the Invoice Template (Exhibit B) provided,

2. In the location on the form for listing the month/year of the claim, please mark as the June Estimate,

3. Based on remaining annual funds and use of fundsto date generate estimated expenditures for the month of June.

4. Attach any advance approvals for services/supply/equipment purchases, and

5. Submit estimate to Probation no later than June 20 of each year. b. What if the claim for actual year-end expenditures is not submitted before the County’s year-end submission deadline?
i. If the claim for actual year-end expenditures is not received by the deadline, Probation will process payment to the PACT agency using the estimate provided.
ii. When the claim isreceived (after the deadline), if expenditures exceed the estimate, Probation will process payment for the difference and the difference will be paid from any rollover funds. If the expenditures are less than the estimate, the PACT agency isrequired to refund the overpayment back to Probation.
c. What documentation is needed to include major purchases in the year-end estimate?
Item Number: 6.

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i. To include year-end expenditures that will not complete processing in the current fiscal year, the submitting PACT agency needs to provide proof of intent to purchase the major item, such as vehicles.
ii. Proof of intent to purchase can be represented by approval documents from a City Council, an approved purchase order, an approved requisition, or a copy of the documents used by the City to encumber funds in their own fiscal year budget allowing Probation sufficient documentation to encumber funds to reimburse the submitting PACT agency. d. What if the estimate is overstated?
i. If any unused funds are remaining after the final year-end reimbursement claim is submitted (prior to year-end deadline), the funds will be released for use within Realignment.

2. Staff Substitution for Another PACT Agency
a. What is the process to submit claims when substituting PACT staff by another police department due to staff shortages?
i. The Police Department providing the staff substitution must bill the PACT Agency suffering the staff shortage.
ii. The PACT Agency suffering the staff shortage will then submit their monthly claim to Probation. The claim should include back-up documentation reflecting invoices and payment to the substituting Police Department for staff services rendered. Any back-up documentation provided by the substituting Police Department (such as timesheets) should be included in the monthly claim.
iii. PACT Agencies cannot bill against another PACT Agency’s allocation.

3. Mileage Claims
a. What documentation is required to submit for mileage claims? i. A mileage log reflecting record of what miles are used for PACT specific duties is sufficient back-up for a mileage claim.
b. What if a vehicle is 100% PACT?
i. Fuel reimbursement statements reflecting the vehicle’s mileage use over the course of the fiscal year is sufficient back-up for mileage reimbursement.

Item Number: 6.

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4. Staff Time
a. Can vacation, sick, and compensation time earned be paid? i. Yes, vacation, sick, and compensation time earned while performing PACT duties can be paid.
ii. Detailed tracking of when the time is earned and when it is paid will need to be provided as back-up to the claim. The tracking is necessary to ensure no duplication of payment is requested (i.e. reimbursement for compensation time on one pay period and on the next pay period requesting reimbursement for time-off using those same backed compensation time hours). A tracking sheet can be provided upon request. iii. PACT Agencies that allow their officers to ‘sell back’ their compensation time at the end of the year can claim those hours as part of their reimbursement. Detailed tracking reflecting that the compensation time is earned while performing PACT duties must be submitted as back-up. b. Our police department uses electronic timesheets. Is a report from the timesheet system acceptable back-up?
i. Yes, a report from the timesheet system is acceptable as long as it reflects when the employee approved their timesheet and when the supervisors counter-approved their timesheets.

Item Number: 6.

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THE COUNTY OF RIVERSIDE, ON BEHALF OF ITS

PROBATION DEPARTMENT, AND

POST-RELEASE ACCOUNTABILITY AND COMPLIANCE TEAM

FOR PUBLIC SAFETY REALIGNMENT

MEMORANDUM OF UNDERSTANDING
Page | 30
Exhibit E
Funding & Reimbursement Policy and Guidelines for Regional PAC Teams FUNDING AND REIMBURSEMENT POLICY AND GUIDELINES FOR REGIONAL P.A.C. TEAMS Rev. 6/2024
I. PURPOSE: The purpose of this policy is to set forth standardized procedures for oversight and funding of personnel assigned to Regional PAC Teams.

II. ORGANIZATION: Each regional PAC Team will establish a governing board, including command-level representatives from each participating agency.

A. The regional governing board will provide operational and financial support and oversight to the regional team.

B. The regional board may also determine when a financial need merits a request for additional funding to one of the funding entities (CCPEC or ARCCOPS).

III. MEMBERSHIP: PAC Team membership is open to all law enforcement agencies who are members of ARCCOPS. The voting membership of ARCCOPS shall determine which agencies will receive funding.

A. Agencies interested in participating and receiving reimbursement shall submit a request to the ARCCOPS voting membership.

1. ARCCOPS will determine agency participation and reimbursement as requested based on available funding and regional needs.

IV. FUNDING & REIMBURSEMENT: Funding for PACT personnel is provided through the Community Corrections Partnership Executive Committee (CCPEC) and the Riverside County allocation of AB- 109 mitigation grant (Cal Chief’s).

A. Participating PAC Team agencies may submit for reimbursement for direct costs associated with deploying personnel dedicated to the PAC Team.

B. Reimbursement will be limited to the following:

Item Number: 6.

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THE COUNTY OF RIVERSIDE, ON BEHALF OF ITS

PROBATION DEPARTMENT, AND

POST-RELEASE ACCOUNTABILITY AND COMPLIANCE TEAM

FOR PUBLIC SAFETY REALIGNMENT

MEMORANDUM OF UNDERSTANDING
Page | 31

1. Actual cost of allsalary, benefits, paid leave, and overtime paid to agency employees for work while assigned and working for a PAC Team.

2. Mileage (at the published IRS rate) for miles traveled using an agency vehicle for travel to, from, and during PAC Team activities.

3. Equipment as needed for each PACT Officer, Deputy, and/or PAC Team.

C. Each PAC Team agency head will determine how funding reimbursement will be used, in accordance with Section IV.B. of this Exhibit E.

D. Total reimbursement shall not exceed $238,150 per fiscal year for each police officer or detective assigned; $261,800 per fiscal year for corporal assigned; and $297,000 per fiscal year for each sergeant assigned to supervise a PAC Team.

E. Participating agencies shall submit detailed expenditure claims on a monthly basis to the appropriate funding entity (CCPEC via County Probation).

Item Number: 6.

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SR-24-249
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To:

Date: December 12, 2024
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Year-End Budget Adjustments for the Fiscal Year 2023-2024 RECOMMENDATION:

Adopt a Resolution of the City Council approving the Fiscal Year 2023-2024 Consolidated General Fund Operating, Capital Improvement Plan, and other funds' year end budget adjustments.

BACKGROUND:

Every two years the City Council approves a two-year budget which is the financial plan for the Consolidated General Fund, Fiduciary Funds, Restricted Funds, Capital Improvement Funds, Special Revenue Funds, Agency Funds and the Successor Agency Fund.

During the regular course of business, budget adjustments are completed by staff and approved by Department Heads, the Administrative Services Director and the City Manager (if necessary). Budget adjustments allow the City to continue daily operations, update revenue and expense estimates (based on actual performance), adjust salary and benefit costs for position changes and address varying demands for contracted services. Additionally, budget adjustments ensure that on-going general repairs, maintenance and tenant improvements to the City’s public facilities and equipment are funded.

During the fiscal year, the City’s Finance staff reviews revenue, expenditure and transfer line items in all funds and makes the necessary budget adjustments in compliance with governmental accounting standards, as well as the City’s policy requiring City Council approval.

DISCUSSION:

Staff has completed our year-end review of all funds and the following adjustments are needed for FY23-24. These adjustments are for changes to the budget after the Council approved the FY23-24 Mid-Year Budget Adjustments.

Consolidated General Fund
General Fund (100) – Increase budgeted expenditures by $231,300 for equipment replacement, ADA Plan study, and transfers to the Health & Wellness Fund and the City-wide Lighting and Landscape Maintenance Fund. These additional costs will be offset by a reduction in the transfer to the Public Safety Fund.

Item Number: 7.

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SR-24-249
Public Safety Fund (245) – Decrease budgeted expenditures by $231,300 due to a lower cost in the fire services contract than anticipated. During the budget preparation, the City anticipated additional costs in fire personnel in anticipation of construction of Fire Station 98. The increase in staffing occurred later than anticipated.

Restricted Funds
Storm Drainage Development Impact Fee Fund (108) – Budgeted revenues were increased by $28,833 based on actual revenues received through the end of the fiscal year. Budgeted expenditures were increased by $20,518 for the Berms at Verbena Drive project.

General Capital Improvement Fund (210) – Budgeted expenditures were increased by $85,584 for carry over from the prior year for the Musco Lighting projects ($73,104) and an increase of $12,480 for the design for the Palm Drive Improvement Project, which will be reimbursed by a grant in the following fiscal year.

Health & Wellness Center Fund (211) – Budgeted revenues were increased by $71,300 due to an increased transfer in from the General Fund. Budgeted expenditures were increased by $71,300 for lighting improvements, basketball backboards, and equipment.

Public Facilities Capital Improvement Fund (222) - Budgeted expenditures increased by $821 for increased Police Department Building Improvement Project. The additional costs will be covered by the Series 2021 Bond proceeds.

ARPA Fund (230) - Budgeted expenditures increased by $15,763 due to clean up from Tropical Storm Hillary. These funds will be reimbursed by FEMA.

RCTC Loan Fund (256) - Budgeted expenditures increased by $1,482,266 due to change orders for the road repair construction for North Indian Canyon, Little Morongo, and Dillon Road repair projects.

These funds will be reimbursed by FHWA and CalOES.

Citywide Lighting & Landscaping District Fund (501) – Budgeted revenues were increased by $65,000 from an increase transfer in from the General Fund. Budget expenditures were increased by $65,000 due to the purchase of replacement equipment.

FISCAL IMPACT:

General Fund (100) – The overall fiscal impact to expenditures totals is $231,300.

Public Safety Fund (2455) – The overall fiscal impact to expenditures is ($231,300).

Storm Drainage Development Impact Fee Fund (108) – The overall fiscal impact to revenues totals is $28,833. The overall fiscal impact to expenditures total is $20,518 for a net total (revenues less expenditures) of $8,315.

General Capital Improvement Fund (210) – The overall fiscal impact to expenditures totals is $85,584.

Item Number: 7.

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SR-24-249
Health & Wellness Center Fund (211) – The overall fiscal impact to revenue totals is $71,300. The overall fiscal impact to expenditure totals is $71,300 for a net total (revenues less expenditures) of $0.

Public Facilities Capital Improvement Fund (222) – The overall impact to expenditure totals is $821 and the overall fiscal impact to revenues is $821 for a net total of $0.

ARPA Fund (230) – The overall fiscal impact to expenditures is an increase of $15,763.

RCTC Loan (256) – The overall fiscal impact to expenditures is an increase of $1,482,266 Citywide Light & Landscaping District Fund (501) – The overall fiscal impact to revenue totals is $65,000. The overall fiscal impact to expenditure totals is $65,000 for a net total (revenues less expenditures) of $0.

ATTACHMENTS:
1) FY 2023-2024 Year-End Budget Adjustments Resolution
2) FY 2023-2024 Year-End Budget Adjustments
Item Number: 7.

Page 1593 of 2517 ends

RESOLUTION NO. 2024-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS APPROVING THE FISCAL YEAR 2023-2024

CONSOLIDATED GENERAL FUND OPERATING, CAPITAL
IMPROVEMENT PLAN AND OTHER FUNDS’ YEAR-END BUDGET

ADJUSTMENTS
WHEREAS, the City Council adopted the Fiscal Year 2023-2024 Budget as part of the 2-Year Budget on June 20, 2023; and
WHEREAS, year-end adjustments to the budget are required for Year 1 as more information becomes available; and
WHEREAS, the City Manager has the full authority to execute any and all documents related to the Fiscal Year 2023-2024 Budget; and WHEREAS, the City Manager may delegate authority to implement this resolution to the Administrative Services Director.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, AS FOLLOWS:

Section 1. The City Council of Desert Hot Springs approves the Fiscal Year 2023-2024 proposed year-end budget adjustments.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting of the City Council duly held on the 12th day of December 2024, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

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

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

Page 1594 of 2517 ends

FY 2023-2024 Year-end Budget Adjustments
City of Desert Hot Springs
December 12, 2024
General Fund
Expenditures
100-4266-41-41-0000 Flail Mower Attachment $ 50,000
100-4320-41-41-0000 GPS Tree Inventory Project $ 15,000 100-4266-41-42-0000 Swamp Cooler for Corp Yard building $ 10,000 100-4320-41-63-0000 ADA Plan $ 20,000
100-4199-41-19-0000 Transfer Out to H&W Fund and City LMD Fund $ 136,300 Total Expenditures $ 231,300
Public Safety Fund
Expenditures
245-4320-42-31-0000 Contract Services - Fire Services $ (231,300) Surplus (Deficit) $ -
Storm Drainage
Revenues
108-3229-30-30-0000 Storm Drainage Improvement Fees $ 28,833 Expenditures
108-5005-50-72-6005 Administration - Berms @ Verbena Drive project $ 1,520 108-5020-50-72-6005 Construction - Berms @ Verbena Drive project $ 18,998 Total Expenditures $ 20,518
General Capital Improvement Projects Fund
Expenditures
210-5020-50-73-4013 Construction - Remaining balance from prior year, Musco Lighting $ 34,024 210-5020-50-73-4014 Construction - Remaining balance from prior year, Musco Lighting $ 39,080 210-5010-50-71-3101 Design for Palm Drive improvements $ 12,480 Total Expenditures $ 85,584
Health & Wellness Center
Revenues
211-3999-30-30-0000 Transfers In - General Fund $ 71,300 Expenditures
211-4266-44-55-0000 Basketball backboards, Zambor $ 51,300 211-4266-44-56-0000 Lighting improvements $ 20,000
Total Expenditures $ 71,300
Surplus (Deficit) $ -
Public Facilities Capital Improvement Fund
Revenues
222-3999-30-30-0000 Transfers In $ 821
Expenditures
222-5020-50-42-8002 Construction - Increased costs for PD Building improvements $ 555 222-5025-50-42-8002 Furniture & Fixtures - Increased costs for PD Building improvements $ 266 Total Expenditures $ 821
ARPA Funds
Expenditures
230-5020-50-71-2007 Construction - Little Morongo Road repairs $ 1 230-4320-41-42-2003 Contract Services - August 2023 Storm cleanup $ 15,762 Total Expenditures $ 15,763
RCTC Loan
Expenditures
256-5020-50-71-2008 Construction - Change order for road repairs $ 224,583 256-5020-50-71-2006 Change order for North Indian Canyon road repairs $ 1,257,683 Total Expenditures $ 1,482,266
LLMD - Citywide
Revenues
501-3999-30-30-0000 Transfers In - General Fund $ 65,000 Expenditures
501-4266-43-45-0000 Aerator and other equipment $ 65,000 Surplus (Deficit) $ -
Item Number: 7.

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SR-24-248
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: December 12, 2024
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: (Successor Agency) Recognized Obligation Payment Schedule (ROPS 25-26) for the Period of July 1, 2025 Through June 30, 2026.

RECOMMENDATION:

Adopt a Resolution of the Successor Agency approving the Recognized Obligation Payment Schedule (ROPS 25-26) and Administrative Budget for the Successor Agency for the period of July 1, 2025 through June 30, 2026.

BACKGROUND:

Health & Safety Code Section 34177 required that the Successor Agency (“Successor Agency”) to the Redevelopment Agency of the City of Desert Hot Springs (“Former RDA”) approve a Recognized Obligation Payment Schedule (“ROPS”) on an annual basis following the dissolution of the Former RDA.

The ROPS outlines enforceable obligations to be paid from the former tax increment funds, bond proceeds, and redevelopment trust funds. Once a ROPS is approved by the Successor Agency Board, the county-wide Oversight Board, and the Department of Finance (“DOF”), the ROPS serves as a permanent schedule of the obligations authorized to be paid for the continued wind down of the affairs of the Former RDA.

DISCUSSION:

The Riverside County Auditor-Controller has allocated and will continue to allocate property tax increment to the Successor Agency to pay the obligations listed on the ROPS. Obligations not paid from tax increment will be paid from funds held in trust, debt service reserve funds, grant funds, interest income, and Low and Moderate Housing unobligated cash approved in prior ROPS periods and through the Housing Due Diligence Review Report.

The Successor Agency staff has completed its preparation of ROPS 25-26. This ROPS contains the actual and/or estimated payments that will be due and payable for the prescribed time period.

Expenditures are listing according to the funding source that will be used to make the payments. The funding sources include the property tax increment deposited into the Redevelopment Property Tax Trust Fund (“RPTTF”) and the administration allocation.

Similar to all previously approved ROPS, the ROPS 25-26 includes the administrative budget for the applicable period. Pursuant to Health & Safety Code Section 34171(b), the Successor Agency is Item Number: 8.

Page 1597 of 2517 ends

SR-24-248
permitted to claim up to 3% of the property tax allocated to the Redevelopment Obligation Retirement Fund or $250,000, whichever is greater. The total amount of the administrative budget for the period July 1, 2025 through June 30, 2026, is $250,000. This budget includes expenses related to legal services, staff and consultants.

Since the first ROPS in 2012, the Successor Agency has been able to repay the enforceable obligations so that only four are remaining on the ROPS 25-26. The remaining four obligations are for debt service and administrative costs. Below are key obligations listed on ROPS 25-26, which may be of note to the Successor Agency Board (some of these items are included in the notes section of ROPS 24-25):

In June 2017, the Successor Agency refinanced and refunded the former RDA’s 2008A-2 Series Bond, 2006 Series Bond, and the 2009 Series Bond in favor of its 2017 Subordinate Tax Allocation Refunding Bond, to take advantage of an opportunity to pay reduced interest rates on its debt service.

Annual bond trustee fees, property tax audits, service reports and disclosure reports are requirements of each bond indenture and will be on-going for the life of each bond issue.

Since the 2017 Tax Allocation Refunding Bonds and administrative costs are the only obligations remaining on the schedule, the Successor Agency will be submitting a Last and Final ROPS starting with the 26-27 ROPS period. The Last and Final ROPS will cover the funding for the remaining former Redevelopment Agency obligations until the obligations are satisfied, which will occur in 2040.

Once ROPS 25-26 is approved by the Successor Agency Board and the Oversight Board, it will be submitted to the State Controller’s Office, the County Auditor-Controller’s Office and the DOF. The Oversight Board must approve and submit the approved ROPS 25-26 by February 1, 2025, or penalties will be imposed on the Successor Agency and/or the City of Desert Hot Springs (“City”).

The City, as the sponsoring jurisdiction of the Former RDA, is subject to a penalty in the amount of $10,000 per day if any ROPS is not timely submitted. In addition, the Successor Agency’s administrative cost allowance may be reduced by 25% if the ROPS is more than ten (10) days late.

It is anticipated that the Successor Agency Board-approved ROPS 25-26 will be presented to the Oversight Board at its regularly scheduled meeting on January 16, 2025.

The Auditor-Controller and the DOF will complete their review of the ROPS 25-26 by April 15, 2025 and will advise all successor agencies of the estimated amounts of property tax increment that will be remitted to each agency in accordance with the lows that dissolved redevelopment agencies. If the Successor Agency disputes the determination made by the DOF on ROPS 25-26, the Successor Agency is afforded five (5) business days following the DOF’s determination to request a Meet and Confer to discuss the disputed ROPS 25-26 items. Assembly Bill 1484 included procedures for conducting the meet and confer process which will be followed by staff as needed.

FISCAL IMPACT:

Funding sources for the expenditures listed in ROPS 25-26 will be paid from the Former RDA property tax increment, Successor Agency administrative allowance, and debt reserve accounts as needed. The total amount of obligations scheduled to be paid during the period July 1, 2025 to June 30, 2026 is $1,829,812. A total of $1,577,312 of such obligations is for debt service principal and interest payments; trustee fees of $2,500; and an amount of $250,000 for the RPTTP administrative fees.

Item Number: 8.

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SR-24-248
ATTACHMENTS:
1) SA Resolution ROPS 25-26
2) ROPS 25-26 RAD Report
3) ROPS 25-26 Administrative Budget
Item Number: 8.

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1 RESOLUTION NO. SA-2024-_____

RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER

REDEVELOPMENT AGENCY OF THE CITY OF DESERT HOT

SPRINGS APPROVING A RECOGNIZED OBLIGATION PAYMENT
SCHEDULE (ROPS) FOR THE PERIOD JULY 1, 2025 THROUGH
JUNE 30, 2026, PURSUANT TO HEALTH AND SAFETY CODE
SECTION 34177(l)
WHEREAS, the City Council of the City of Desert Hot Springs agreed to serve as the successor agency to the Redevelopment Agency of the City of Desert Hot Springs (“Redevelopment Agency”) commencing upon dissolution of the Redevelopment Agency on February 1, 2012 pursuant to Assembly Bill x1 26; and WHEREAS, pursuant to Health and Safety Code Section 34177(l), before each six-month fiscal period, the successor agency to a dissolved redevelopment agency is required to adopt a draft Recognized Obligation Payment Schedule (“ROPS”) that lists all of the obligations that are “enforceable obligations” within the meaning of Health and Safety Code Section 34171, and which identifies a source of payment for each such obligation from among (i) the Low and Moderate Income Housing Fund; (ii) bond proceeds; (iii) reserve balances; (iv) the administrative cost allowance; (v) revenues from rents, concessions, interest earnings, and asset sales; and (vi) the Redevelopment Property Tax Trust Fund established by the County Auditor-Controller to the extent no other source of funding is available or payment from property tax is contractually or statutorily required; and
WHEREAS, commencing with the ROPS period beginning July 1, 2016, each ROPS now must list enforceable obligations covering a one-year period and must now be submitted to and approved by the Department of Finance on an annual basis; and WHEREAS, the Successor Agency has prepared a ROPS and an administrative budget covering the period July 1, 2025 through June 30, 2026 (“ROPS 25-26”); and WHEREAS, the Successor Agency administrative budget covering the period of July 1, 2025 through June 30, 2026, as part of ROPS 25-26, is consistent with the provisions of HSC Section 34171 (b); and
WHEREAS, previously, it was required that each ROPS be submitted to the County Administrative Officer, County Auditor-Controller, the State Department of Finance, and the Successor Agency’s oversight board (“Local Oversight Board”), which oversaw the wind down activities of the Successor Agency; and WHEREAS, pursuant to Health and Safety Code Section 34179(j), the Local Oversight Board dissolved, and as of July 1, 2018, a single county-wide (Riverside County) oversight board (“Oversight Board”) was established which now assumed the responsibilities of overseeing the wind down activities of all former redevelopment agencies within Riverside County, including the Successor Agency; and Item Number: 8.

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2 WHEREAS, it is anticipated that the Successor Agency Board-approved ROPS 25-26 will be presented to the Oversight Board at its regularly scheduled meeting on January 16, 2025.

NOW THEREFORE, the Successor Agency to the Redevelopment Agency of the City of Desert Hot Springs hereby resolves:

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

Section 2. APPROVAL OF ROPS 25-26 AND ADMINISTRATIVE BUDGET That the Successor Agency hereby approve and adopt ROPS 25-26 and the related administrative budget, in substantially the form attached hereto as Exhibit A.

Section 3. TRANSMITTAL
That Successor Agency staff is directed to transmit the ROPS 25-26 to the County Administrative Officer, the County Auditor-Controller, and the State Department of Finance, to the extent the same has not already been transmitted.

Section 4. OTHER ACTS
That each officer of the Successor Agency, including Successor Agency General Counsel, is hereby authorized and directed, jointly and severally, to execute and deliver such documents and instruments and to do such things which may be necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken by such officers are hereby ratified, approved and confirmed. Such acts shall include, but shall not be limited to, reformatting of the ROPS 25-26 as may be required by the Department of Finance.

The City Manager, as the Successor Agency’s Executive Director or designee, is authorized to: i) post the ROPS 25-26 on the City’s website, ii) transmit the ROPS 25-26 to the State Department of Finance and the County Auditor-Controller for their review within the timeframe and in the manner prescribed by HSC; and iii) make ministerial revisions to ROPS 25-26, which may include, but are not limited to restating the information included within ROPS 25-26 in any format that may be requested by the State Department of Finance, take such other actions and execute such other documents as are necessary to effectuate the intent of this Resolution, and to implement ROPS 25-26 on behalf of the Successor Agency, including authorizing and causing such payments.

Section 5. SEVERABILITY
That if any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Item Number: 8.

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Desert Hot Springs City CouncilDecember 12, 2024

Desert Hot Springs City Council
December 12, 2024