Desert Hot Springs City Council
September 2, 2025

Item Number: 10.

Crestron Electronics DM-NVX-360C $19,715.04 *
DM NVX® 4K60 4:4:4 HDR Network AV Encoder/Decoder Card
8 Lenovo P330 i7 $5,245.66 *
Velasea Tiny Workstation i7
2 BrightSign HD225 $2,033.64
Standard I/O Player
2 ZvPRO Rack Mount Kit
2 Zeevee ZvPRK
Zeevee ZvPro820i-NA $9,263.72 *
HD video encoder/QAM modulator
2 Open House H808 $26.00
8-Way Splitter
1 Audio/Video Total $41,476.06
Power Management
WattBox WB-800-IPVM-12 $1,923.92
IP Power Conditioner 12 Individually Controlled & Metered Outlets 2 WattBox WB-OVRC-UPS-2000-1 $4,172.12
UPS Battery Pack for IP Power Conditioners 2000 VA
2 Power Management Total $6,096.04
Racks
Tripp-Lite SR42UBDP $7,187.28
42U SmartRack Deep Rack Enclosure Cabinet with doors & side panels 2 SnapAV SR-IT-WIREMGT-VERT-6 $1,113.84
Strong vertical wire management six Feet
4 Strong SR-IT-WIREMGT-HORZ $856.16
Horizontal Wire Management
11 Racks Total $9,157.28
Wiring
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

1 Fiber Optic Connections $1,000.00
Enclosure Flush Mount Metal Door - 40"
2 Wirepath WP-DOOR-FLUSH-40
Wirepath WP-SW-ENCL-40 $586.68 *
Structured Wiring Enclosure - 40"
2 Wiring Total $1,586.68
26 Comm Room Total $73,529.44
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

29 Field Operations / EOC
Conference
AMS EOC Package $7,938.78
AMS EOC Package. Includes Rack, 8 Port Managed PoE Switch, Power Management, Lockable Storage Drawer.
3 Conference Total $7,938.78
Network
Aruba AP-505 Wireless Access Point $557.82 *
AP-505 Campus Wireless Access Point
1 AMS Data Wire $68.45
Includes Cat6 wire, ring, plate, and accessories.
1 Network Total $626.27
Audio/Video
Crestron Electronics TSW-1070-W-S $6,866.00 *

10.1 in. Wall Mount Touch Screen, White Smooth
2 1 IP Device Prewire $43.98
Audio/Video Total $6,909.98
Security
Safety Technology International (STI) CP-SS43-EN $318.58 Stopper Station 3-Pack, Blue
1 Safety Technology International (STI) STI-SA5600-B $108.54 Select-alert siren/strobe - rectangle, blue
1 Panic Button Prewire $30.98
Includes wire, rings, plates and accessories
1 Siren Strobe Prewire $30.98
Includes wire, rings, plates, and accessories
1 Security Total $489.08
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

29 Field Operations / EOC Total $15,964.11
29 Field Operations / EOC: Tables (2)
Conference
Video Conference Package $30,000.00
Includes, Audio, Video, Camera, Microphone
1 Crestron Electronics FT2-500-ELEC-PTL-B $5,904.00
FlipTop FT2 Series Cable Management System, 500 Size, Mechanical, PassThrough Lid, Black 2 Crestron Electronics TS-770-B-S $5,196.00
7 in. Tabletop Touch Screen, Black
2 Conference Total $41,100.00
Audio/Video
Crestron Electronics DM-NVX-360 $5,467.50 *
DigitalMedia 4K60 4:4:4 HDR Network AV Encoder/Decoder
2 Audio/Video Total $5,467.50
Wiring
AMS Data/Phone Pre Wire $110.82
Includes (2) Cat6 wire, ring, plate, and accessories.
1 AMS Data/Phone Pre Wire $348.81
Includes (2) Cat6 wire, ring, plate, and accessories.
3 Wiring Total $459.63
29 Field Operations / EOC: Tables (2) Total $47,027.13
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

29 Field Operations / EOC: Copier
Network
AMS Data/Phone Pre Wire $116.27
Includes (2) Cat6 wire, ring, plate, and accessories.
1 Network Total $116.27
29 Field Operations / EOC: Copier Total $116.27
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

29 Field Operations / EOC: Video Wall
AV System
Sony Professional FW-98BZ53L $36,751.30
Realize absolute image quality: flagship 98-inch 4K Ultra HD HDR BRAVIA Professional Display with Deep Black Non-Glare Coating and Cognitive Processor XR.
2 Future Automation PS80 $3,997.84
Articulated TV wall mount for 80" to 110" Display
2 AV System Total $40,749.14
Audio/Video
Crestron Electronics DM-NVX-360 $5,467.50 *
DigitalMedia 4K60 4:4:4 HDR Network AV Encoder/Decoder
2 Audio/Video Total $5,467.50
Power Management
WattBox WB-200VB-CE-6 $291.08
Power Conditioner with Coax and Ethernet Protection | 6 Outlets 2 Power Management Total $291.08
Wiring
TV Prewire With Backbox $443.25
Includes wire, rings plates, 14 x 14" metal backbox and accessories 1 TV Prewire With Backbox $443.25
Includes wire, rings plates, 14 x 14" metal backbox and accessories 1 Wiring Total $886.50
29 Field Operations / EOC: Video Wall Total $47,394.22
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

29 Field Operations / EOC: Presentation Display
AV System
LG Commercial 75UR340C9UD $1,885.42
4K UHD Commercial TV with management software, scheduler and certified Crestron Connected
1 Future Automation PS80 $1,998.92
Articulated TV wall mount for 80" to 110" Display
1 AV System Total $3,884.34
Audio/Video
Crestron Electronics DM-NVX-360 $2,733.75 *
DigitalMedia 4K60 4:4:4 HDR Network AV Encoder/Decoder
1 Audio/Video Total $2,733.75
Power Management
WattBox WB-200VB-CE-6 $145.54
Power Conditioner with Coax and Ethernet Protection | 6 Outlets 1 Power Management Total $145.54
Wiring
TV Prewire With Backbox $395.35
Includes wire, rings plates, 8 x 14" metal backbox and accessories 1 Wiring Total $395.35
29 Field Operations / EOC: Presentation Display Total $7,158.98 Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

31 Armory
Access Control
HES 1006-630 $589.97
1000 Series Electric Strike, Satin stainless steel finish 1 Provides power from Isonas reader to door strike
1 Isonas 10 ft. Power I/O Pigtail
Isonas Wall Mount Reader-Controller (125kHz, BLE) $1,370.68 * Wall Mount Reader-Controller (125kHz, BLE)
1 GRI FV94-1 $14.67
3/8 Press to fit recess Contact & Magnet
1 Wall Mount Reader Prewire $45.71
Includes wire, rings plates and accessories
1 Electric Strike Prewire $151.68
Includes wire, rings plates and accessories
1 Access Control Total $2,172.71
31 Armory Total $2,172.71
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

32 South Pedestrian Gate
Access Control
HES 1006-630 $589.97
1000 Series Electric Strike, Satin stainless steel finish 1 Isonas Wall Mount Reader-Controller (125kHz, BLE) $1,370.68 * Wall Mount Reader-Controller (125kHz, BLE)
1 Provides power from Isonas reader to door strike
1 Isonas 10 ft. Power I/O Pigtail
GRI FV94-1 $14.67
3/8 Press to fit recess Contact & Magnet
1 Wall Mount Reader Prewire $45.71
Includes wire, rings plates and accessories
1 Electric Strike Prewire $151.68
Includes wire, rings plates and accessories
1 Access Control Total $2,172.71
32 South Pedestrian Gate Total $2,172.71
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

33 North Pedestrian Gate
Access Control
HES 1006-630 $589.97
1000 Series Electric Strike, Satin stainless steel finish 1 Isonas Wall Mount Reader-Controller (125kHz, BLE) $1,370.68 * Wall Mount Reader-Controller (125kHz, BLE)
1 Provides power from Isonas reader to door strike
1 Isonas 10 ft. Power I/O Pigtail
GRI FV94-1 $14.67
3/8 Press to fit recess Contact & Magnet
1 Wall Mount Reader Prewire $45.71
Includes wire, rings plates and accessories
1 Electric Strike Prewire $151.68
Includes wire, rings plates and accessories
1 Access Control Total $2,172.71
33 North Pedestrian Gate Total $2,172.71
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

Perimeter Surveillance
Surveillance
Axis Communications 02341-001 $17,695.92
P1467-LE Bullet Camera
12 Surveillance Total $17,695.92
Wiring
12 Camera Prewire DB $1,042.08
Desert Steel Supply POST-RND3X14 $2,400.00 *
SteelPost 3"x14' (1/8" Thick) Post - Primered Grey
4 4 AMS Misc. Concrete, Sonotube, Bushings and Plates
Wiring Total $3,442.08
Perimeter Surveillance Total $21,138.00
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

Gate Systems
Access Control
ASO Safety Solutions EDGECHL-LP-5ft $567.16
Safety Edges for Gates
2 DoorKing 1401-080 $448.88
Fire Department Lock Box - Knox
2 DoorKing 1515-081 $1,123.36
Smart Open Stand-Alone Keypad - Surface Mount
2 EDI LMA-1800 $1,516.30
Loop Detector
5 EMX Industries, Inc. EMX-1122-1 $1,604.40
Photo-Eye: Retro-Reflective
4 EMX Industries, Inc. EMX-4012-2 $1,178.12
WEL-200K wireless edge link kit, Monitored wireless gate edge transmitter and receiver.
2 Gate and Control BDL-BD-LS-B $786.52
Loop Sealant - Black
14 Liftmaster 850LM Universal Receiver $247.36
Universal Receiver For Commercial Applications
2 Liftmaster MAX-2200PRO $8,910.22
Gate Slide Motor
2 Linear GNC-1 $328.32
Linear Pad Mount Gooseneck
2 Gates & Controls EL28-60 $1,717.70
4X10 Direct Burial Loop (60ft Lead)
5 Liftmaster 371LM $524.00
1-Button Remote Control
10 Access Control Total $18,952.34
Gate Systems Total $18,952.34
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

Perimeter Infrastructure
Wiring
Direct Burial CAT6 Wire - Black
450 AMS W-DB-CAT6-BLK
Axis Communications A9161 $1,818.54 *
6 Port Network I/O Module
3 LC-LC Duplex 9/125µm Single Mode Patch Cord, UPC Polish 3 Fosco D3LLS1FISA
9/125/900µm Singlemode LC/UPC Color Coded Pigtails, 3 Meters (12 Pcs/Pack)
3 Fosco SP-12LCUPC
Fosco 1120-SSTA $577.26 *
Multilink 12 Position Aluminum Splice Tray (For 1120F Closures) 3 Planet Networking MGB-TLX $649.00
1G SMF SPF LC Tranceiver Module
5 PWR-240-48 48V, 240W Din-Rail Power Supply (NDR-240-48) 3 Mean Well NDR-240-48
Planet Technology IGS-5225-8P4S $4,451.85 *
Industrial L2+ 8-Port 10/100/1000T 802.3at PoE + 2-Port 100/1G SFP + 2-Port 1G/2.5G SFP Managed Ethernet Switch
3 Vevor 24 x 24 x 12 $1,451.94
Vevor NEMA Steel Enclosure, 24 x 24 x 12'' NEMA 4X Steel Electrical Box, IP66 Waterproof & Dustproof, Outdoor/Indoor Electrical Junction Box, With Mounting Plate
3 Corning 372-COROS2-LTAB-12 $2,010.00
12 Strand, Single Armor, SMF-28,Gel-Free
1500
Wiring Total $10,958.59
Perimeter Infrastructure Total $10,958.59
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

Camera Licensing
Surveillance
Milestone Systems XPPPLUSDL $4,248.00
XProtect Professional+ Device License
24 Milestone Systems Y3XPPPLUSDL $1,584.00
Three Year Care Plus for XProtect Professional+ Device License 24 Surveillance Total $5,832.00
Camera Licensing Total $5,832.00
Shipping and Handling
Shipping and Handling
1 AMS Shipping and Handling $5,938.51
Shipping and Handling Total $5,938.51
Shipping and Handling Total $5,938.51
Project Subtotal: $302,864.16
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025
* Price Includes Accessories

Item Number: 10.

Date
Daniel Porras Date
Fire Protection Service Corp. dba Pye Barker
Client:

Contractor:

PROJECT SUMMARY
1084934
This proposal is subject to the Pye-Barker General Terms and Conditions located at https://pyebarkerfs.com/generalterms. By signing or receiving services under this proposal, you acknowledge that you have reviewed such terms and conditions and that they will be incorporated into the proposal by reference. This proposal, including the incorporated General Terms and Conditions, contains the complete and final agreement between the parties with respect to the subject matter hereof.

Equipment: $302,864.16
Misc. Parts Adjustment: $17,815.51
Labor: $141,261.47
Sales Tax: $27,518.55
Grand Total: $489,459.69
Payment Schedule Amount Due Date
Upon Acceptance $293,675.81
Upon Start $97,891.94
Upon Completion $97,891.94
Rev. 1
DHSPD Annex Building and Perimeter
Project No : PBPD -0002560 6/25/2025

Item Number: 10.

7/29/2025
Paul Talley
Paul Talley
1 of 3
Annex Building Data Plan
SalesmanDrafted By
Page Number
DHSPD Annex Building
Last Edited
Pye Barker Palm Desert75130 St. Charles PlacePalm Desert, CA 92211Lic# 1084934 760.341.3593Mailing Address:P.O. Box 14323Palm Desert, CA 92255

INVESTIGATIONS

RECEPTION
INTERVIEW #1
LOBBY
RR #2 RR #1
ARMORY STORAGE #1
FIELD

OPERATIONS

JANITOR
COMM. RM.

HALLWAY

ELECTRICAL

FIRE RISER

WOMEN'S
SHOWER

WOMEN'S

LOCKERS

MEN WOMEN

MEN'S LOCKERS
MEN'S
SHOWER
OFFICE #5 OFFICE #6
BREAK
OFFICE #1OFFICE #2OFFICE #3OFFICE #4

VESTIBULE
INTERVIEW #2
STORAGE #2
AR
AR
AR
AR
AR
AR
AR
AP
AP
AP
AP
AP
TV TV
TV

TV TV TV TV
+72" +72"
Rack
WP
P
P
P
SK
TV
TV Prewire (1)RG6{Black}, (1)Cat6{Yellow}, (1)Cat6{White} Speaker Prewire (1)Cat6 Wire {White}
Rack Equipment Racks
Data/Phone Location (1)Cat6{Blue}, (1)Cat6{Gray}
TV
TV Power Circuit(branch is acceptable)
CALLOUT ONLY SEE ELECTRICAL DRAWINGS FOR DETAIL14"x14" TV BACKBOX PROVIDED BY AV CONTRACTORSINGLE DUPLEX OUTLET POWER REQUIRED AT EACH POSITION S
AP Access Point Prewire (1)Cat6 Wire{Gray}
AR Access Reader Prewire (1)22/4 Security Wire, (1)Cat6{White} P Panic Button Prewire (1)22/4 Security Wire
Strobe/Siren Prewire (1)22/4 Security WireSecurity Keypad Prewire (1)22/4 Security Wire SK TP
TP
TP Touch Panel Prewire (1)Cat6{Yellow}
WP Wireless Panic Button – No Prewire
RackRackRack
RackRackRackRack
C
C
C
C AR
AR
C Ceiling Camera Prewire Position (1)Cat6{Green}
INT
SIR
SIR
SIR
SIR
SIR
Ceiling Pinhole Camera Position {Premade Cable}
NOTE: WIRE AND DEVICES TO BE PROVIDED BY LOW VOLTAGE
CONTRACTOR. REFER TO ELECTRICAL DRAWINGS FOR CABLE TRAY, BACKBOX, AND CONDUIT DETAIL

TV TV TV TV
+72" +72" +72" +72"
+72"
+72" +72"
+72" +72"
TV +72"
+72"
+96"
P +96"
WP
+96"
+96"
P
P
P
WP
Floor- Data/Phone Location (1)Cat6{Blue}, (1)Cat6{Gray} 20 Amp Dedicated Circuit - Ceiling Mounted
Item Number: 10.

7/29/2025
Paul Talley
Paul Talley
2 of 3
Wire Tray Path
SalesmanDrafted By
Page Number
DHSPD Annex Building
Last Edited
Pye Barker Palm Desert75130 St. Charles PlacePalm Desert, CA 92211Lic# 1084934 760.341.3593Mailing Address:P.O. Box 14323Palm Desert, CA 92255

INVESTIGATIONS

RECEPTION
INTERVIEW #1
LOBBY
RR #2 RR #1
ARMORY STORAGE #1
FIELD

OPERATIONS

JANITOR
COMM. RM.

HALLWAY

ELECTRICAL

FIRE RISER

WOMEN'S
SHOWER

WOMEN'S

LOCKERS

MEN WOMEN

MEN'S LOCKERS
MEN'S
SHOWER
OFFICE #5 OFFICE #6
BREAK
OFFICE #1OFFICE #2OFFICE #3OFFICE #4

VESTIBULE
INTERVIEW #2
STORAGE #2
AR
AR
AR
AR
AR
AR
AR
AR
AP
AP
AP
AP
AP
TV TV
TV

TV TV TV TV
+72" +72"
Rack
WP
P
P
P
SK
TV
TV Prewire (1)RG6{Black}, (1)Cat6{Yellow}, (1)Cat6{White} Speaker Prewire (1)Cat6 Wire {White}
Rack Equipment Racks
Data/Phone Location (1)Cat6{Blue}, (1)Cat6{Gray}
TV
TV Power Circuit(branch is acceptable)
CALLOUT ONLY SEE ELECTRICAL DRAWINGS FOR DETAIL14"x14" TV BACKBOX PROVIDED BY AV CONTRACTORSINGLE DUPLEX OUTLET POWER REQUIRED AT EACH POSITION Low Voltage Wire Tray Path Flextray 4"(h)x12"(w)
S
AP Access Point Prewire (1)Cat6 Wire{Gray}
AR Access Reader Prewire (1)22/4 Security Wire, (1)Cat6{White} P Panic Button Prewire (1)22/4 Security Wire
Strobe/Siren Prewire (1)22/4 Security WireSecurity Keypad Prewire (1)22/4 Security Wire SK TP
TP
TP Touch Panel Prewire (1)Cat6{Yellow}
WP Wireless Panic Button – No Prewire
RackRackRack
RackRackRackRack
C
C
C
C AR
AR
C Ceiling Camera Prewire Position (1)Cat6{Green}
INT
SIR
SIR
SIR
SIR
SIR
Ceiling Pinhole Camera Position {Premade Cable}
NOTE: WIRE AND DEVICES TO BE PROVIDED BY LOW VOLTAGE
CONTRACTOR. REFER TO ELECTRICAL DRAWINGS FOR CABLE TRAY, BACKBOX, AND CONDUIT DETAIL

TV TV TV TV
+72" +72" +72" +72"
+72"
+72" +72"
+72" +72"
TV +72"
+72"
+96"
P +96"
WP
+96"
+96"
P
P
P
WP
Floor- Data/Phone Location (1)Cat6{Blue}, (1)Cat6{Gray} 20 Amp Dedicated Circuit - Ceiling Mounted
Item Number: 10.

7/29/2025
Paul Talley
Paul Talley
3 of 3
Perimeter Protection Plan
SalesmanDrafted By
Page Number
DHSPD Annex Building
Last Edited
Pye Barker Palm Desert75130 St. Charles PlacePalm Desert, CA 92211Lic# 1084934 760.341.3593Mailing Address:P.O. Box 14323Palm Desert, CA 92255 PIE
469.2414 in.
240 in.

E
E
E
Enclosure PostionAccess Reader Prewire (1)22/4 Security Wire, (1)Cat6{White} AR RUN TO CLOSEST ENCLOSURE POSITION U.O.N
PTZ Camera Prewire Position (1)Cat6{Green}
RUN TO CLOSEST ENCLOSURE POSITION U.O.N
Fixed Bullet Camera Position (1)Cat6{Green}
E
REQUIRES 15AMP HIGH VOLTAGE CIRCUIT TO EACH LOCATION.SINGLE DUPLEX TERMINATED INSIDE THE ENCLOSURE BY OTHERS.

RX RX Beam Set Prewire (1)22/4 Security Wire
Axis Radar Unit- (1) Cat6
CAM 4
CAM 8
Item Number: 10.

-1-

PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND

FIRE PROTECTION SERVICES CORPORATION DBA PYE BARKER
This Professional Services Agreement (“Agreement”) is made and entered into this 2nd day of September, 2025, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the “City,” and Fire Protection Services Corporation dba Pye Barker, a corporation, hereinafter referred to as “Contractor.”
RECITALS:

WHEREAS, the City desires to utilize the services of Contractor, as an independent Contractor, to provide the City with installing network and phone jacks, installing and configuring wireless network, installing panic buttons and sirens, installing cameras and displays, installing access control devices, installing video presentations, static cameras and sliding gate operators (sometimes hereinafter, the “Services”), as described in more particularity in Exhibit “A,” attached hereto and incorporated by reference as the “Scope of Services”; and
WHEREAS, Contractor represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS,

CONDITIONS AND PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:

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

Section 2. SCOPE OF SERVICES
Contractor shall provide to the City the Services on an as-needed and asdirected basis in a manner satisfactory to the City and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions, as described in more detail in the Scope of Services. In the event a conflict exists between this Agreement and the Scope of Services, the former shall supersede. Except where this Agreement specifically provides otherwise, the Contractor is responsible for providing any and all facilities, assets, and resources (including personnel, facilities, equipment, and software) Item Number: 10.

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necessary and appropriate for delivery of the Services and to meet the Contractor's obligations under this Agreement. Any City assets to which access is being provided for use by the Contractor (including equipment, software licenses and third-party service contracts) are provided on an “as is, where is” basis, and the City does not provide the Contractor any representations or warranties regarding such assets.

Section 3. TERM
This Agreement shall commence as of the date in the opening paragraph of this Agreement and shall remain in force and effect until terminated, in accordance with Section 7 of this Agreement, subject to the allocation of funds pursuant to a duly approved City budget.

Section 4. COMPENSATION
The City agrees to pay Contractor for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Contractor agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, Four Hundred Eighty-Nine Thousand Four Hundred Fifty-Nine Dollars and Sixty-Nine Cents ($489,459.69) in a total amount not to exceed Four Hundred Eighty-Nine Thousand Four Hundred Fifty-Nine Dollars and Sixty-Nine Cents ($489,459.69) in accordance with the Cost Proposal contained in the Scope of Services.

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

Daniel Porras, Deputy City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Item Number: 10.

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Telephone: 760-329-6411 x109
E-mail: [email protected]
Section 6. EXTRA WORK
At any time during the term of this Agreement, the City may request that Contractor perform Extra Work. As used herein, "Extra Work" means any work which is determined by the City to be necessary for the proper completion of the Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Contractor shall not perform Extra Work without written authorization from the City.

Section 7. TERMINATION
This Agreement may be terminated by the City Manager, in his/her sole discretion, immediately for cause. Either party may terminate this Agreement without cause upon twenty-four hours (24) hours written notice of termination to the other party.

Upon termination, Contractor shall be entitled to compensation for services performed up to the effective date of termination, provided that Contractor shall have satisfied all its obligations under this Agreement through and including the effective date of termination and is not otherwise in breach of this Agreement. For clarification, the City Manager in his/her sole discretion shall have the power to terminate this Agreement with or without cause in accordance with this Section.

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

Section 9. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor. Such materials shall not, without prior written consent of the City, be used by Contractor for any purposes other than the performance of the services under this Item Number: 10.

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Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Contractor will make all reasonable efforts to keep such information confidential and to limit access only to those who require it for performance, Nothing furnished to Contractor that is otherwise known to Contractor, is generally known in the industry, or has become known to the related industry shall be deemed confidential.

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

Section 10. CONTRACTOR’S BOOKS AND RECORDS
a. Contractor shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor pursuant to this Agreement. b. Contractor shall maintain all documents and records which demonstrate performance under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Contractor’s address indicated for receipt of notices in this Agreement. d. Where the City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Contractor’s business, the City may, by written request of any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained at City Hall. Access to such records and documents shall be granted to any party authorized by Contractor, Contractor’s representatives, or Contractor’s successorin-interest.

Section 11. INDEPENDENT CONTRACTOR’S STATUS: NOT AGENT

OF THE CITY
Contractor shall at all times during the term of this Agreement remain, as to the City, a wholly independent Contractor and shall perform the services described in this Item Number: 10.

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Agreement as an independent Contractor and further, hereby waives any claims for any compensation or benefits afforded to City employees and not to independent Contractors. Neither the City nor any of its agents shall have control over the conduct of Contractor or any of Contractor’s employees, except as herein set forth. Contractor shall be entirely responsible for the compensation and control of any assistants, employees, and subcontractors used by Contractor in providing said services. Nothing contained in this Agreement shall be deemed, construed or represented by the City or Contractor or by any third person to create the relationship of principal and agent and Contractor shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. Contractor shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent, nor shall Contractor have any authority, express or implied, to bind the City to any obligation whatsoever.

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

OF CONTRACTOR
a. Contractor represents and acknowledges the following:
(1) The City is not required to provide any training or legal counsel to Contractor or its employees for Contractor to perform the services described in this Agreement.
(2) Performance of the services described in this Agreement does not have to be integrated into the daily business operations of the City. (3) The services described in this Agreement can be performed without the use of City equipment, materials, tools or facilities. (4) Nothing in this Agreement shall be interpreted to imply that the City must maintain any contractual relationship with Contractor on a continuing basis after termination of this Agreement.
(5) The City will not be requested or demanded to assume any liability for the direct payment of any salary, wage or other such compensation to any person employed by Contractor to perform the services described in this Agreement. (6) Contractor shall not at any time or in any manner represent that it or any of its officers, employees, or agents are employees of the City and will so instruct its officers, employees and/or agents.
b. The City represents and acknowledges the following:

Item Number: 10.

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(1) Contractor is not required to comply with daily instructions from City staff with respect to when, where or how Contractor must perform the services set forth in this Agreement.
(2) Contractor is solely responsible for determining who, under the supervision or direction of Contractor, will perform the services set forth in this Agreement.
(3) The City will not hire, supervise or pay any assistants working for Contractor pursuant to this Agreement.
(4) Nothing in this Agreement shall be interpreted to imply that the Contractor must maintain any contractual relationship with the City on a continuing basis after termination of this Agreement.
(5) It is the sole responsibility of Contractor to set the hours in which Contractor performs or plans to perform the services set forth in this Agreement subject to hours of access.
(6) Contractor is not required to devote full time to the business operations of the City to perform the services set forth in this Agreement. (7) Contractor is not required to perform the services set forth in the Agreement in any particular order or sequence.
(8) Nothing in this Agreement shall be interpreted to preclude Contractor from working for other persons or firms, provided that such work does not create a conflict of interest.
(9) Contractor is not required to perform the Services at City-owned property.
(10) Contractor will perform services that are outside the usual course of the City’s business.

Section 13. CIVIL CODE SECTION 1542 WAIVER
Contractor expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:
“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”
Item Number: 10.

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This waiver shall be effective as a bar to any and all actions, fees, damages, losses, claims, liabilities and demands of whatsoever character, nature and kind, that are known or unknown, or suspected or unsuspected, including, without limitation, claims of entitlements under the California Public Employees’ Retirement System (“CalPERS”) that are only afforded to employees and not independent Contractors.

Contractor further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
__________
Initials
Section 14. CONFLICTS OF INTEREST
a. Contractor (including principals, associates and professional employees) covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source or income, interest in real property or investment which would be affected in any manner or degree by the performance of Contractor’s services hereunder. Contractor further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
b. Contractor is not a designated employee within the meaning of the Political Reform Act because Contractor:
(1) Does not make or participate in:
(i) the making or any governmental decisions regarding
approval of a rate, rule, or regulation, the adoption or enforcement of laws;
(ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certificates, approvals, orders, or similar authorization or entitlement;
(iii) authorizing the City to enter into, modify, or renew a contract;
(iv) granting the City approval to a contract that requires City approval and to which the City is a party, or to the
specifications for such a contract;
Item Number: 10.

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(v) granting the City approval to a plan, design, report, study, or similar item; or
(vi) adopting, or granting City approval of, policies, standards, or guidelines for the City or for any subdivision thereof. (2) Does not serve in a staff capacity with the City and in that capacity participate in making a governmental decision or otherwise perform the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City’s Conflict of Interest Code under Government Code Section 87302.
c. In the event the City officially determines that Contractor must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Contractor shall file the subject Form 700 with the City Clerk’s Office pursuant to the written instructions provided by the Office of the City Clerk.

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

LICENSES
a. Contractor warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services.
b. By executing this Agreement, Contractor warrants that:
(1) it has thoroughly investigated and considered the work to be performed;
(2) it has investigated the issues, regarding the scope of services to be provided;
(3) it has carefully considered how the work should be performed; and (4) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. c. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the City, it shall immediately inform the City of such fact and shall not proceed except at Contractor’s risk until written instructions are received from the City Manager or appropriate City representative.

Item Number: 10.

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d. Contractor represents that it and all of its subcontractors, if any, have obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement, including a City business license.

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

Section 17. INDEMNIFICATION
a. Contractor shall defend, indemnify and hold harmless the City, its officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs, expenses and attorneys’ fees in connection therewith), arising out of this Agreement, except for any such claim arising out of the sole negligence, recklessness, or willful misconduct of the City, its officials, agents, employees or volunteers. b. The City does not, and shall not, waive any rights that it may have against Contractor under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. c. Notwithstanding the provisions of subsections a. and b. of this section, Contractor shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Contractor’s work promptly, or by reason of delay or faulty performance by the City, construction Contractors, or governmental agencies, or by reason of any other delays beyond Contractor’s control, or for which Contractor is without fault. d. In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Agreement is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.

Item Number: 10.

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e. If Contractor should subcontract all or any portion of the work to be performed under this Contract, Contractor shall require each subcontractor to indemnify, hold harmless and defend City and each of its officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph. f. This Section shall survive termination or expiration of this Agreement.

Section 18. INSURANCE REQUIREMENTS
a. Policies. Contractor, at Contractor’s sole cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies:
(1) Worker’s Compensation Coverage. Contractor shall maintain Worker’s Compensation Insurance and Employers’ Liability Insurance for its employees in accordance with the laws of the State of California, of an amount not less than one million dollars ($1,000,000) per accident and for Employers’ Liability Insurance in amounts not less than $1,000,000 each accident for bodily injury by accident, $1,000,000 policy limit for bodily injury by disease, and $1,000,000 each employee for bodily injury by disease. In addition, Contractor shall require each subcontractor to similarly maintain Worker’s Compensation Insurance and Employers’ Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. If any class of employees employed by Contractor pursuant to this Agreement is not protected by the California State Worker’s Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Contractor has no employees performing work under this Agreement. Contractor agrees to waive its statutory immunity under any worker’s compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved in the Services to do the same.
(2) General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence, combined single limit coverage for bodily injury, personal injury and property damage associated with work contemplated in this Agreement. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Contractor shall provide insurance on an occurrence, not claims-made basis. Contractor acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an “offense” while bodily injury and property damage coverage shall be triggered by an “occurrence” during the policy period. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CG 00 01 12 07 or any updated form thereof.

Item Number: 10.

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

Item Number: 10.

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

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

Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that coverage is provided in conformity with the requirements of this Section.
f. Maintain Coverages. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement has been eliminated. g. Failure to Obtain Coverages. Contractor agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is Item Number: 10.

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

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

To the City: Daniel Porras, Deputy City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: 760-329-6411 x109
Email: [email protected]
To Contractor: Paul Talley, General Manager
Fire Protection Services Corporation dba Pye Barker
75130 Sanit Charles Place
Palm Desert, CA 92211
Telephone: 760-341-3593
E-Mail: [email protected]
b. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 20. DEFAULT
a. Failure or delay by any party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within fifteen (15) calendar days after receipt of written notice specifying such default and shall diligently Item Number: 10.

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

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

Section 22. ENTIRE AGREEMENT
a. This Agreement supersedes any and all other agreements, either oral or written, between the City and Contractor with respect to the subject matter of this Agreement.
b. This Agreement contains all of the covenants and agreements between the parties with respect to the subject matter of this Agreement, and each party to this Agreement acknowledges that no representations, inducements, promises, or Item Number: 10.

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agreements have been made by or on behalf of any party except those covenants and agreements embodied in this Agreement.
c. No agreement, statement, or promise not contained in this Agreement shall be valid or binding.

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

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

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

Section 26. SEVERABILITY
If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not Item Number: 10.

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affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein.

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

Section 28. LITIGATION EXPENSES AND ATTORNEYS’ FEES
In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof. In no instance shall the award of costs and expenses under this section exceed the actual costs and expenses of the City.

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

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

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

Section 31. EQUAL OPPORTUNITY EMPLOYMENT
Item Number: 10.

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

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

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

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

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

Item Number: 10.

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

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

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

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

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

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

Item Number: 10.

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Section 42. REPRESENTATIONS OF PARTIES AND PERSONS

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

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

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

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

Item Number: 10.

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

CITY OF DESERT HOT SPRINGS
_____________________________
Daniel Porras, Deputy City Manager
_____________________________
Doria Wilms, City Manager
ATTEST:
_____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
_____________________________
Jennifer Mizrahi, City Attorney

FIRE PROTECTION SERVICES
CORPORATION dba PYE BARKER
_____________________________
Paul Talley, General Manager
N:\DHSO\0001-01 General\Doc\6051
Item Number: 10.

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EXHIBIT “A”

SCOPE OF SERVICES
Item Number: 10.

SR-25-187
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: September 2, 2025
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Resolution of Intention to Annex APN 666-370-039 (Annexation No. 50) located east of Called De Los Romos and north of 20th Street, to the City of Desert Hot Springs Community Facilities District No. 20101 (Services) RECOMMENDATION:

Adopt a Resolution of the City Council of the City of Desert Hot Springs declaring its intention to annex territory to Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs, adopting a map of the area proposed to be annexed (Annexation No. 50), and to authorize the levy of special taxes therein.

BACKGROUND:

On July 6, 2010, the City Council approved Resolution No. 2010-037 establishing Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs (the "CFD No. 2010-1" or "District") for the purpose of levying special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed upon the City.

These maintenance services, include but are not limited to, the operation, administration and maintenance required to keep the landscaping, lighting, and maintenance and repair of public structures situated on parks, parkways, streets, roads, and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park, and the maintenance and operation of storm drainage and flood protection facilities, and drainage inlets and retention basins.

The Special Taxes levied by the District will provide funding for services and incidental expenses in connection with said services. It was anticipated that additional property would annex into CFD No. 2010-1 in future years as development continues. These annexed properties will be subject to the same special tax formula in the Rates and Method of Apportionment of Special Tax (“RMA”) as property that was included in the CFD No. 2010-1 at the time of its formation. As properties annex into CFD No. 2010-1, the City Council shall adopt annexation maps to reflect the inclusion of the Annexed Property.

DISCUSSION:

The services as described above may be funded with proceeds of the special tax of CFD No. 2010-1, as provided by Section 53313 of the California Government Code. The existing and new developments of residential and non-residential properties do not provide sufficient revenues to cover the cost of landscape maintenance and lighting services. The City formed CFD No. 2010-1 (Services) Item Number: 11.

SR-25-187
to address this shortfall, and to provide certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property.

Special Tax rates are based on District costs, maintenance category, as well as land use category.

These Special Tax rates are applied on a Benefit Unit (“BU”) basis determined by the property's Land Use Category, which are one (1) BU per single-family residential unit, six tenths (0.6) BU per multifamily unit, five (5) BUs per acre for commercial and hotel property, and two (2) BUs per acre for industrial and religious property. To accommodate the unknown maintenance costs of future projects, properties are assigned Maintenance Categories with a rate per BU for providing services to those parcels. There are 36 Maintenance Categories included in the Rates and Method of Apportionment.

These 36 Maintenance Categories range from $20.00 to $5,000.00 per BU, which is determined by their Land Use Category. After a Maintenance Category has been assigned, the Special Tax levied adjusts annually by the greater of the Consumer Price Index or two-and one-half percent at the beginning of each following fiscal year. The City can levy less than the maximum annual special tax if the full amount is not needed, but never more. Maintenance Category assignments can be seen in Exhibit C of the attached CFD No. 2010-1 Resolution. The proposed annexation to the District consists of approximately 94.91 acres.

This fiftieth annexation to the District will increase CFD No. 2010-1 by one parcel, 94.91 nonresidential acres.

Subject to the approval of the City Council tonight, a public hearing on the annexation will be scheduled for Tuesday, October 7, 2025. This is a landowner election since there are fewer than 12 registered voters within the annexation area. Pursuant to the waiver of election time limits from the landowner, a ballot will be mailed in advance of the public hearing. At the closing of the public hearing, an election of the qualified electors (landowners in the District) will be held to determine if the electors approve the annexation to the District and the levy of the special tax.

FISCAL IMPACT:

Currently, existing and new developments generate insufficient General Fund revenues to pay for the General Fund expenses of serving the area. The District provides the City additional funding for a portion of landscape maintenance, lighting, and drainage basin service costs (i.e., landscaping, lighting, and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space). A portion of the operations funding will be derived from alternative funding sources including other special districts and the City's General Fund.

All costs associated with the annexation to CFD No. 2010-1 are to be paid for by the property owners/developers who are participating in the annexation to CFD No. 2010-1 through an application fee of $5,000. The costs associated with this annexation to CFD No. 2010-1 is paid by the property owner. The property owner is responsible for all costs and payment of associated levy amounts applied to the annual tax roll for maintenance services.

STRATEGIC ALIGNMENT:

This initiative supports the following goals of the City's Strategic Plan:

Goal 11: Financial and Operations
Continue to provide fiscally sound operations via the ongoing evaluation of city processes and operational needs to maximize efficiency, streamline processes and eliminate bureaucracy, when possible, to deliver outstanding customer service and Item Number: 11.

SR-25-187
professionalism in all interactions with residents and the public.

ATTACHMENTS:
1) CFD 2010-1 Annex 50 - ROI
2) CFD 2010-1 Annex 50 - ROI EX. A - Description of Territory 3) CFD 2010-1 Annex 50 - ROI EX. B - Boundary Map
4) CFD 2010-1 Annex 50 - ROI EX C (C-1)- RMA
5) CFD 2010-1 Annex 51 - ROI EX C (C-2) - RMA
6) CFD 2010-1 Annex 50 - ROI EX. D - Notice
7) CFD 2010-1 Annex 50 - ROI EX. E - Ballot
8) CFD 2010-1 Annex 50 - ROI EX. F - Petition Waiver Consent_ 9) CFD 2010-1 Annex 50 - Council Properties Map
Item Number: 11.

Resolution No. 2025-______
Date Adopted: September 2, 2025

RESOLUTION NO. 2025-_________

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

SPRINGS DECLARING ITS INTENTION TO ANNEX TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES) OF THE

CITY OF DESERT HOT SPRINGS, ADOPTING A MAP OF THE AREA
PROPOSED TO BE ANNEXED (ANNEXATION NO. 50), AND TO

AUTHORIZE THE LEVY OF SPECIAL TAXES THEREIN
WHEREAS, on July 6, 2010 the City Council (the “City Council”) of the City of Desert Hot Springs (the “City”) approved Resolution No. 2010-037 establishing Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs, County of Riverside, State of California (the "CFD No. 2010- 1") for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and
WHEREAS, the City Council called a special election for July 6, 2010, at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2010-1 were submitted to the qualified electors within the CFD No. 2010-1; and
WHEREAS, on July 6, 2010, the City Council adopted Resolution No. 2010-038 determining the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DESERT HOT

SPRINGS, ACTING EX OFFICIO AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT 2010-1 (SERVICES) OF THE CITY OF DESERT HOT SPRINGS, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Intent. The City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities District of the territory described in Exhibit "A" attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District.

Section 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2010-1 (Services).” Section 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed is included within the boundaries for which property may annex to CFD No. 2010-1 and are more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs, County of Riverside, State of California,” as recorded on June 8, 2010 in Book 74 of Maps of Assessment and Community Facilities District, Page 81, and as Instrument No. 2010-0263725 in the official records of the County of Riverside. The territory proposed to be annexed to the CFD No. 2010-1 is described in Exhibit "A" attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 50, Community Facilities District No. 2010-1 (Services), City of Desert Hot Springs, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit B.

Item Number: 11.

Resolution No. 2025-______
Date Adopted: September 2, 2025

Section 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2010-1 (the “Services”) include, without limitation, all necessary service, operation, administration and maintenance required to keep the lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park, and the maintenance and operation of storm drainage and flood protection facilities including, without limitation, drainage inlets and retention basins. The cost of providing the Services includes “incidental expenses,” which include costs associated with the creation of CFD No. 2010-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2010-1. The Services authorized to be financed by CFD No. 2010-1 are in addition to those currently provided in the territory of CFD No. 2010-1 and do not supplant services already available within that territory.

Section 5. Levy of Special Tax. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2010-1, will be levied annually within the territory proposed to be annexed to the CFD No. 2010-1. Pursuant to Section 53340 of the California Government Code, and the special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. The rates and method of apportionment, and manner of collection of the special tax are specified in Exhibit C. The rate of special tax to be levied on property within the territory proposed to be annexed to CFD No. 2010-1 in any fiscal year to pay the cost of the services described in Section 4 above shall be equal to the rate of special tax which will be levied on all other property within the CFD No. 2010-1 to pay the cost of such services in such fiscal year.

Section 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to CFD No. 2010-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than fifteen days prior to the date of the hearing specified in Section 7 hereof.

Section 7. Public Hearing. The City Council hereby fixes 6:00 p.m., or as soon thereafter as practicable, on October 7, 2025, in the City Council Chambers located at 11-999 Palm Drive, Desert Hot Springs, California 92240, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of said territory to the CFD No. 2010-1.

Section 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit D, one time in a newspaper of general circulation published in the area of CFD No. 2010-1. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of the Act.

Section 9. Mailing Ballots. In anticipation of its action on Tuesday, October 7, 2025, to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2010-1 a ballot in substantially the form set forth in Exhibit E hereto. A copy of the petition, waiver and consent form signed by the property owner is attached hereto as Exhibit F and incorporated herein by this reference.

Item Number: 11.

Resolution No. 2025-______
Date Adopted: September 2, 2025

Section 10. Effective Date. This Resolution shall take effect immediately upon its passage.

Dated: September 2, 2025
PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a special meeting held on this second day of September 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

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

Jennifer Mizrahi, City Attorney
Item Number: 11.

Resolution No. 2025-______
Date Adopted: September 2, 2025

CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on September 2, 2025 of which meeting all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at 11-999 Palm Drive, Desert Hot Springs, CA 92240, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

I do hereby further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

Dated: September 2, 2025
City Clerk of the City of Desert Hot Springs
[SEAL]
Item Number: 11.

EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
Item Number: 11.

EXHIBIT B

ANNEXATION MAP
Item Number: 11.

EXHIBIT C
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)

RATE AND METHOD OF APPORTIONMENT
Item Number: 11.

EXHIBIT D

NOTICE OF PUBLIC HEARING
Item Number: 11.

EXHIBIT E

SPECIAL ELECTION BALLOT
Item Number: 11.

EXHIBIT F

WAIVER AND CONSENT RESPECTING CONDUCT OF

MAILED-BALLOT, LANDOWNER ELECTION
Item Number: 11.

EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Desert Hot Springs Community Facilities District No. 2010-1 (the “CFD No. 2010-1”) Annexation No. 50 is currently comprised of one (1) parcel, located within the City boundaries. The property is identified by the following Riverside County Assessor's Parcel Number (APN).

APN Owner Name
666-370-039 Amazon.com Services, LLC
Item Number: 11.

SHEET 1 OF 1 SHEET
M:\GIS-Assessment\DHS\Boundary_CFD2010-1_Annex50.mxd
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THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL

OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS CONCERNING THE LINES AND

DIMENSIONS OF LOTS OR PARCELS REFER TO THE COUNTY
ASSESSOR'S MAPS FOR FISCAL YEAR 2025-2026.

ANNEXATION MAP NO. 50
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)

CITY OF DESERT HOT SPRINGS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

VICINITY MAP

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10 PARCEL IDENTIFICATION NUMBER
LEGEND

CFD BOUNDARY

PARCEL LINE

FILED IN THE OFFICE OF THE CITY CLERK,
CITY OF DESERT HOT SPRINGS, THIS ____
DAY OF _______, 20___.
____________________________________

CITY CLERK

CITY OF DESERT HOT SPRINGS
RECORDED THIS ____ DAY OF ___________,
20___, AT THE HOUR OF ____ O'CLOCK __M, IN
IN BOOK ___ PAGE ___ OF MAPS OF ASSESSMENT

AND COMMUNITY FACILITIES DISTRICTS IN THE

OFFICE OF THE COUNTY RECORDER, IN THE
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

FEE: ____________ NO.: _______________

PETER ALDANA, ASSESSOR, COUNTY CLERK,

RECORDER
BY: ______________________________________
DEPUTY

THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE
ANNEXED TO COMMUNITY FACILITIES DISTRICT NO.
2010-1 (SERVICES) OF THE CITY OF DESERT HOT

SPRINGS, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY

FACILITIES DISTRICT ARE SHOWN AND DESCRIBED

ON THE MAP THEREOF WHICH WAS PREVIOUSLY
RECORDED ON JUNE 8, 2010, IN BOOK 74 OF MAPS OF

ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS
AT PAGE 81 AND AS INSTRUMENT NO. 2010-0263725,

IN THE OFFICE OF THE COUNTY RECORDER OF THE
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

I HEREBY CERTIFY THAT THE WITHIN MAP OR AREAS

TO BE ANNEXED TO COMMUNITY FACILITIES
DISTRICT NO. 2010-1 (SERVICES) OF THE CITY OF

DESERT HOT SPRINGS, COUNTY OF RIVERSIDE, STATE

OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL

OF THE CITY OF DESERT HOT SPRINGS AT A REGULAR
MEETING THEREOF, HELD ON THE ___________ DAY OF
_____________________, 20___, BY ITS RESOLUTION
NO.________________.
______________________________

CITY CLERK

CITY OF DESERT HOT SPRINGS

Item Number: 11.

EXHIBIT C-1
City of Desert Hot Springs C-1
Community Facilities District No. 2010-1 (Services)

RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)

OF THE CITY OF DESERT HOT SPRINGS
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2010-1 (Services), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2010, in an amount determined by the City Council of the City of Desert Hot Springs, acting ex officio as the legislative body of CFD No. 2010-1, by applying the rates and method of apportionment set forth below. All of the real property in CFD No. 2010-1, unless exempted by law or by the provisions herein, shall be taxed for the purposes, to the extent and in the manner provided herein.

A. DEFINITIONS
“Acre or Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means any ordinary and necessary expenses allocable to the Special Tax Requirement which are incurred by the City on behalf of CFD No. 2010-1 related to the determination of the amount of the levy of Special Tax, the collection of Special Tax including the expenses of collecting delinquencies, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2010-1, and costs otherwise incurred in order to carry out the authorized purposes relating to CFD No. 2010-1.
“Administrator” means the City of Desert Hot Springs City Manager of the City, or his or her designee.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Taxable Property, as determined in accordance with Section C., below.

Item Number: 11.

City of Desert Hot Springs C-2
Community Facilities District No. 2010-1 (Services)
“Benefit Unit” means a single family residential lot or dwelling unit or the equivalent.

Single Family Property is assigned benefit units based on the number of Residential Units per Assessor’s Parcel with the basis being one (1) benefit unit per Residential Unit. MultiFamily Residential Property is assigned 60 percent of one benefit unit, or six-tenths (0.6) benefit units, per Residential Unit. Commercial Property is assigned benefit units based on acreage with the basis being five (5) benefit units per acre. Hotel Property is assigned benefit units based on acreage with the basis being five (5) benefit units per acre. Industrial Property is assigned benefit units based on acreage with the basis being two (2) benefit units per acre.

Religious Property is assigned benefit units based on acreage with the basis being two (2) benefit units per acre.
“CFD” or “CFD No. 2010-1” means the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services).
“City” has the meaning set forth in the preamble.
“Commercial Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for a commercial establishment which includes, but is not limited to, retail stores, clothing stores, book stores, video rental stores, drug stores, professional services (i.e., barber shops, dry cleaners), restaurants, supermarkets, hospitals, movie theaters, appliance and electronic stores, home supply stores, auto parts stores, and other businesses providing auto-related products and services. The Administrator shall make the determination if an Assessor’s Parcel is Commercial Property. “County” means the County of Riverside
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“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 1352 that creates individual lots for which building permits may be issued without further subdivision
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Hotel Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for a structure that constitutes a place of lodging providing sleeping accommodations and related facilities for travelers. The Administrator shall make the determination if an Assessor’s Parcel is Hotel Property. “Industrial Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for construction of an industrial, manufacturing, or warehousing structure. The Administrator shall make the determination if an Assessor’s Parcel is Industrial Property.

Item Number: 11.

City of Desert Hot Springs C-3
Community Facilities District No. 2010-1 (Services)
“Land Use Category” means any of the categories contained in Table 1 hereof to which a Parcel is assigned consistent with the land use approvals that have been received or proposed for the Parcel as of March 1 preceding the beginning of a Fiscal Year. “Maintenance Category” means any of the categories listed in Table 2 hereof to which an Assessor’s Parcel is assigned consistent with the rate per Benefit Unit for providing Services to said Assessor’s Parcel as determined by the Administrator. “Maximum Special Tax Rate(s)” means the Maximum Special Tax for each Land Use Category of Taxable Property, as determined in accordance with Section C., below. “Multi-Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units available for rental, but not purchase, by the general public and under common management. “Religious Property” means any Assessor’s Parcel used as a place of worship or for other religious activities. The Administrator shall make the determination if an Assessor’s Parcel is Religious Property.
“Residential Unit” means, for each Fiscal Year, a building or portion thereof on an Assessor’s Parcel intended for use by one (1) family and containing but one (1) kitchen, which is designed primarily for residential occupancy including single family and multifamily dwellings. Residential Unit shall not include hotels or motels which shall be classified as Hotel Property.
“Services” means those services authorized to be funded by CFD No. 2010-1 as set forth in the documents adopted by the City Council when the CFD was formed.. “Single Family Residential Property” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
“Special Tax(es)” means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2010-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for Bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2010-1, which are not Exempt Property.

Item Number: 11.

City of Desert Hot Springs C-4
Community Facilities District No. 2010-1 (Services)
B. ASSIGNMENT TO LAND USE AND MAINTENANCE CATEGORY
The Special Tax shall be levied annually upon each Assessor’s Parcel of Taxable Property for each Fiscal Year according to the Land Use Category and Maintenance Category assigned. Each Fiscal Year the Administrator shall identify the current Assessor’s Parcel Number assigned to all Assessor’s Parcels of Taxable Property within CFD No. 2010-1 and determine which Land Use Category each Assessor’s Parcel should be assigned to according to Table 1 below. The Administrator shall further assign the appropriate Maintenance Category contained in Table 2 according to the estimated cost for providing Services to the Assessor’s Parcel.

TABLE 1
Land Use Category
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Land Use
Category Description Benefit Unit(s)
A Single Family Residential Property One (1) / Residential Unit B Multi-Family Residential Property Six tenths (0.6) / Residential Unit C Commercial Property Five (5) / Acre
D Hotel Property Five (5) / Acre
E Industrial Property Two (2) / Acre
F Religious Property Two (2) / Acre
No Special Tax shall be levied on property which, at the time of adoption of the Resolution of Formation for CFD No. 2010-1, is an Exempt Property.

Item Number: 11.

City of Desert Hot Springs C-5
Community Facilities District No. 2010-1 (Services)
C. MAXIMUM SPECIAL TAX RATES
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property assigned to each Maintenance Category shall be the greater of: (i) the applicable Assigned Special Tax described in Table 2 for such Maintenance Category or (ii) the amount derived by application of the Backup Special Tax.
a. Assigned Special Tax
The Assigned Special Tax for each Assessor’s Parcel of Taxable Property is shown in Table 2 is fixed and does not increase each Fiscal Year. For each Fiscal Year following the first Fiscal Year an Assessor’s Parcel is levied the applicable Assigned Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two and one half percent (2.50%), whichever is greater on each subsequent July 1 for the Fiscal Year then commencing.
b. Backup Special Tax
The Backup Special Tax shall equal the Assigned Special Tax that is applicable to an Assessor’s Parcel as determined for the current Fiscal Year the tax is calculated.

Notwithstanding the foregoing, if Assessor’s Parcels classified or to be classified as Taxable Property is subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for the area that has been changed or modified.

When a Final Map is recorded, the Backup Special Tax for an Assessor’s Parcel classified or to be classified as Commercial Property, Industrial Property, or Religious Property within such Final Map shall be determined by multiplying the Assigned Special Tax rate per Benefit Unit by the Proposed Benefit Units or Acreage of Commercial Property, Industrial Property, or Religious Property described in Table 4 of Section G., in such Final Map and dividing such amount by the number of Taxable Acres classified or to be classified as Commercial Property, Industrial Property, or Religious Property (i.e., the number of acres) within such Final Map.

When a Final Map is recorded, the Backup Special Tax for an Assessor’s Parcel classified or to be classified as Single Family Residential Property or Multi-Family Residential Property within such Final Map shall be determined by multiplying the Assigned Special Tax rate per Benefit Unit by the Proposed Benefit Units of Single Family Residential Property or MultiFamily Residential Property described in Table 4 of Section G., in such Final Map and dividing such amount by the number of Assessor’s Parcels classified or to be classified as Single Family Residential Property or Multi-Family Residential Property (i.e., the number of single family residential lots) within such Final Map.

For each Fiscal Year following Fiscal Year 2010-2011 the Backup Special Tax shall increase by the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or by two and one half percent (2.50%), whichever is greater.

Item Number: 11.

City of Desert Hot Springs C-6
Community Facilities District No. 2010-1 (Services)
TABLE 2
Assigned Special Tax Rates
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Maintenance
Category
Assigned Special Tax
Rate Per Benefit Unit
1 $20.00
2 $30.00
3 $40.00
4 $50.00
5 $60.00
6 $70.00
7 $80.00
8 $90.00
9 $100.00
10 $150.00
11 $200.00
12 $250.00
13 $300.00
14 $350.00
15 $400.00
16 $450.00
17 $500.00
18 $550.00
19 $600.00
20 $650.00
21 $700.00
22 $750.00
23 $800.00
24 $850.00
25 $900.00
26 $950.00
27 $1,000.00
28 $1,250.00
29 $1,500.00
30 $2,000.00
31 $2,500.00
32 $3,000.00
33 $3,500.00
34 $4,000.00
35 $4,500.00
36 $5,000.00
Item Number: 11.

City of Desert Hot Springs C-7
Community Facilities District No. 2010-1 (Services)
TABLE 3
Assignment to Land Use Category
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Assessor Parcel No. Land Use Category Maintenance Category 642-081-006 B 15
D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
For each Fiscal Year, the City shall determine the total amount of the Special Tax Requirement to be levied and collected to pay the costs of providing the Services during the Fiscal Year and shall levy the Special Tax as determined by the actual cost of providing services as shown in Exhibit A on all Assessor’s Parcels in all Land Use Categories and Maintenance Categories at the rates necessary to fully fund such costs; provided that such rates shall not exceed the Maximum Special Tax Rates for the Fiscal Year. In levying the Special Tax to fund the costs of providing the Services in each Fiscal Year, the City shall (a) determine the cost of providing the Services and the amount of the Special Tax per Benefit Unit to be levied on Assessor’s Parcels in each Maintenance Category to provide such Services; (b) levy the Special Tax on all Assessor’s Parcels in each Maintenance Category, as then applicable, based on the Benefit Units assigned to such Assessor’s Parcels depending on the Land Use Categories to which they are assigned. The amount of the Special Tax to be levied on any Assessor’s Parcel in any Fiscal Year shall be the total of the rates of Special Tax determined pursuant to clauses (a) and (b) above, to the extent that such clauses are applicable to the Assessor’s Parcel, based on the Land Use Category and Maintenance Category to which the Assessor’s Parcel is assigned and the Services which must be funded from the total amount of the Special Tax per Benefit Unit to be levied on all Assessor’s Parcels in the same Maintenance Category to fund the costs of such Services.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2010-1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed will be assigned to the appropriate Maintenance Category and the appropriate Assigned Tax rate contained in Table 2.

F. TERM OF SPECIAL TAX
For each Fiscal Year, the Special Tax shall be levied in perpetuity as long as the Services are being provided.

Item Number: 11.

City of Desert Hot Springs C-8
Community Facilities District No. 2010-1 (Services)
G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2010-1, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator.

Notwithstanding the foregoing, the classification of Exempt Property shall not reduce the Benefit Units or Acreage to less than the amount shown in Table 4 below.

TABLE 4
Proposed Benefit Units and Acreage
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Assessor Parcel No. Benefit Units Acreage
642-081-006 36 4.43
H. APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2010-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2010-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

Item Number: 11.

Item Number: 11.

Item Number: 11.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #3 – March 2013
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 641-251-017 C 10 9.35 1.87
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #4 – September 2014
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 663-290-003 C 25 34.05 6.81
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #5– August 2015
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 656-020-037 C 16 36.05 7.21
Item Number: 11.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #6 – September 2015
Assessor’s Parcel No. Land Use Category Maintenance
Category Benefit Units Acreage
642-162-017 C 23 3.8 0.76
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #7 – Failed
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #8 – December 2016
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 657-030-057 C 19 5.35 1.07
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #9 – May 2017
Assessor’s Parcel
No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-062 E 34 2.14 1.07
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #10 – Failed
Item Number: 11.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #11 – May 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-063 E 35 7.56 3.78
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #12 – Failed
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #13 – May 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-080-013 E 32 18.84 9.42
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #14 – March 2018
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 641-101-005 C 36 .90 0.18
641-101-006 C 36 .75 0.15
Item Number: 11.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #15 – September 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-058 E 36 4.26 2.13
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #16 – June 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 660-160-010 C 32 6.25 1.25
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #17 – June 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-017 E 31 2.52 1.26
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #18 – June 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-049 E 36 2.52 1.26
Item Number: 11.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #19 – June 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 663-270-004 E 31 29.24 14.62
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #20 – Failed
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #21 – June 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 641-092-049 C 34 2.55 0.51
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #22 – January 2018
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-037 E 34 5.04 2.52
Item Number: 11.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #23 – October 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 663-280-025 C 28 91.25 18.25
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #24 – November 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-060 C 31 9.05 1.81
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #25 – January 2018
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-040-017 E 36 2.52 1.26
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #26 – January 2018
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-110-004 C 36 187.15 37.43
Item Number: 11.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #27 – November 2017
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
666-340-004 E 31 247.82 123.91
666-340-006 E 31 59.04 29.52
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #28 – March 2018
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
665-050-021 E 36 2.24 1.12
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #29 – May 2018
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
666-370-012 E 36 9.42 4.71
666-370-013 E 36 18.80 9.40
666-370-014 E 36 18.78 9.39
666-370-015 E 36 9.36 4.68
Item Number: 11.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #30 – May 2018
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
663-270-001 C 29 48.75 9.75
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #31 – June 2018
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
663-280-005 E 36 19.54 9.77
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #32 – January 2019
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
639-281-001 C 36 .75 .15
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #33 – On Hold
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #34 – On Hold
Item Number: 11.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #35 – November 2019
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
665-030-051 E 36 2.14 1.07
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #36 – November 2019
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
665-030-052 E 36 2.14 1.07
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #37 – January 2020
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
665-110-006 E 36 32 16
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #38 – On Hold
Item Number: 11.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #39 – July 2021
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
641-041-044 C 19 1.5 0.3
641-041-045 C 19 1.5 0.3
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #40 – On Hold
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #41 – June 2021
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
656-470-001 A 16 1 0.21
656-470-002 A 16 1 0.17
656-470-003 A 16 1 0.17
656-470-004 A 16 1 0.17
656-470-005 A 16 1 0.17
656-470-006 A 16 1 0.17
656-470-007 A 16 1 0.17
656-470-008 A 16 1 0.17
656-470-009 A 16 1 0.17
656-470-010 A 16 1 0.17
656-470-011 A 16 1 0.17
656-470-012 A 16 1 0.17
656-470-013 A 16 1 0.19
656-470-014 A 16 1 0.17
656-470-015 A 16 1 0.17
656-470-016 A 16 1 0.17
656-470-017 A 16 1 0.17
656-470-018 A 16 1 0.17
656-470-019 A 16 1 0.17
656-470-020 A 16 1 0.17
656-470-021 A 16 1 0.17
656-470-022 A 16 1 0.17
656-470-023 A 16 1 0.17
Item Number: 11.

Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
656-470-024 A 16 1 0.17
656-470-025 A 16 1 0.17
656-470-026 A 16 1 0.17
656-470-027 A 16 1 0.17
656-470-028 A 16 1 0.28
656-470-029 A 16 1 0.19
656-470-030 A 16 1 0.17
656-470-031 A 16 1 0.17
656-470-032 A 16 1 0.17
656-470-033 A 16 1 0.17
656-470-034 A 16 1 0.17
656-470-035 A 16 1 0.17
656-470-036 A 16 1 0.17
656-470-037 A 16 1 0.17
656-470-038 A 16 1 0.17
656-470-039 A 16 1 0.17
656-470-040 A 16 1 0.17
656-470-041 A 16 1 0.17
656-480-001 A 16 1 0.19
656-480-002 A 16 1 0.20
656-480-003 A 16 1 0.20
656-480-004 A 16 1 0.19
656-480-005 A 16 1 0.19
656-480-006 A 16 1 0.28
656-480-007 A 16 1 0.17
656-480-008 A 16 1 0.17
656-480-009 A 16 1 0.17
656-480-010 A 16 1 0.17
656-480-014 A 16 1 0.17
656-480-015 A 16 1 0.17
656-480-016 A 16 1 0.17
656-480-017 A 16 1 0.17
656-480-018 A 16 1 0.17
656-480-029 A 16 1 0.18
656-480-030 A 16 1 0.18
656-480-036 A 16 1 0.25
656-480-037 A 16 1 0.27
656-480-038 A 16 1 0.25
656-480-039 A 16 1 0.19
656-490-001 A 16 1 0.17
656-490-002 A 16 1 0.17
656-490-013 A 16 1 0.18
656-490-014 A 16 1 0.17
656-490-015 A 16 1 0.17
656-490-016 A 16 1 0.17
Item Number: 11.

Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
656-490-029 A 16 1 0.17
656-490-030 A 16 1 0.17
656-490-031 A 16 1 0.17
656-490-032 A 16 1 0.17
656-490-033 A 16 1 0.17
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #42 – September 2021
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
665-030-064 E 31 6.28 3.14
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #43 – December 2021
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
664-144-005 C 31 0.9 0.18
644-151-004 C 31 1.7 0.34
644-151-005 C 31 1.5 0.30
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #44 – On Hold
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
666-310-011 E 36 26.32 13.16
Community Facilities District No. 2010-1 (Services)
Item Number: 11.

City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #45 – December 2021
Assessor’s
Parcel No. Land Use Category Maintenance Category
Benefit
Units Acreage
639-212-019 C 36 0.90 0.18
639-212-020 C 36 0.80 0.16
639-212-021 C 36 0.80 0.16
639-212-022 C 36 0.80 0.16
639-212-023 C 36 0.90 0.18
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #46 – On Hold
Assessor’s
Parcel No. Land Use Category Maintenance Category
Benefit
Units Acreage
656-020-045 C 33 10.05 2.01
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #47 – June 2022
Assessor’s
Parcel No. Land Use Category Maintenance Category
Benefit
Units Acreage
656-040-052 C 36 7.70 1.54
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #48 – November 2023
Assessor’s
Parcel No. Land Use Category Maintenance Category
Benefit
Units Acreage
666-360-017 E 36 8.00 4.00
Item Number: 11.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #50 – In Progress
Assessor’s
Parcel No. Land Use Category Maintenance Category
Benefit
Units Acreage
666-370-039 E 36 189.82 94.91
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #51 – In progress
Assessor’s
Parcel No.

Land Use
Category
Maintenance
Category
Benefit
Units Acreage
660-160-029 C 36 19.50 3.9
Item Number: 11.

EXHIBIT D

NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX

TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT
NOTICE IS HEREBY GIVEN that the City Council of the City of Desert Hot Springs on September 2, 2025, adopted its Resolution No. 2025-____, on file with the City Clerk, in which it declared its intention to annex territory to existing Community Facilities District No. 2010-1 (Services) (the "CFD No. 2010-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed, specifies the type of services to be financed, and describes the rates and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2010-1 is proposed. For further details, the resolution is available at the Office of the City Clerk, 11-999 Palm Drive, Desert Hot Springs, CA 92240.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 6:00 p.m., or as soon thereafter as practicable, on Tuesday, October 7, 2025, in the City Council Chambers located at 11-999 Palm Drive, Desert Hot Springs, CA 92240, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of said territory to the CFD No. 2010-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard.

DATED: ____________, 2025 _________________________________________ City Clerk of the City of Desert Hot Springs
Item Number: 11.

SPECIAL TAX ELECTION

CITY OF DESERT HOT SPRINGS

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 50
(October 7, 2025)
This ballot is for the use of the authorized representative of the following owner of land within the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services) (“CFD No. 2010-1”) Annexation No. 50:

Name of Landowner Number of Acres Owned Total Votes
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Desert Hot Springs (the “City”), the abovenamed landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcel identified below, which parcel is located within the territory proposed to be annexed to the CFD No. 2010-1, City of Desert Hot Springs, County of Riverside, State of California. Please advise the City Clerk, at (760) 329-6411 – Ext. 107, if the name set forth below is incorrect or if you are no longer one of the owners of this parcel. This special tax ballot may be used to express either support for, or opposition to, the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail in an adequate amount of time so that the City Clerk receives the signed ballot no later than October 7, 2025, the date set for the election.

Personal
Delivery: If in person, deliver to the City Clerk’s office (11-999 Palm Drive, Desert Hot Springs, 92240) any time before 4:00 p.m. on October 7, 2025. If after 4:00 p.m., please deliver to the City Clerk, at the City Council Chambers (11-999 Palm Drive, Desert Hot Springs, 92240) no later than 6:00 p.m.

However delivered, this ballot must be received by the City Clerk prior to the close of the public meeting on October 7, 2025.

Very truly yours,
Geoffrey Buchheim
Administrative Services Director
Item Number: 11.

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 50
AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE
MARK “YES” OR “NO”
WITH AN “X”:

Shall the City Council of the City of Desert Hot Springs be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2010-1 (Services) adopted by the City Council on September 2, 2025 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 50 of Community Facilities District No. 2010-1 (Services) City of Desert Hot Springs, County of Riverside,” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses)? YES _________

NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.

Owner Name,
Signature
Print Name
Title
Item Number: 11.

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CFD 2010-1 Annexation 50
Council Member Properties Source: County of Riverside GIS, 2025 CFD 2010-1
Annexation 50
20TH AVE

PALM DR
I 10

VARNER RD MIHALYO RD

PALM DR

VERBENA DR
15TH
AVE
14TH AVE (TWO BUNCH PALMS TRL)

MONUMENT
ST

PAUL RD

DILLON RD

CABOT RD
I 10

LITTLE MORONGO RD

MESQUITE AVE

HACIENDA AVE
1ST ST PIERSON BLVD SANTA CRUZ RD

MISSION LAKES BLVD

N INDIAN CANYON DR

VALENCIA DR
8TH ST
4TH ST

ACOMA AVE

MOUNTAIN VIEW RD
18TH AVE

IRONWOOD DR
M:\GIS-Assessment\DHS\CouncilProperties_CFD2010-1_Annex50.mxd; Map revised Sept. 12, 2019 0 6,000 12,000 Feet

CITY OF DESERT HOT SPRINGS
LEGEND
Annex 50 (North of 20th Ave. & West of Little Morongo Rd.) City Boundary
Council Member's Property
500 Foot Buffer
Council Member's Property
JP - Jan Pye
DV - Dirk Voss
DP - Daniel Pitts
GG - Gary Gardner
SM - Scott Matas

Item Number: 11.

SR-25-188
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: September 2, 2025
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Resolution of Intention to Annex APN 660-160-029 (Annexation No. 51) located west of Palm Drive and north of Paul Road, to the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services) RECOMMENDATION:

Adopt a Resolution of the City Council of the City of Desert Hot Springs declaring its intention to annex territory to Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs, adopting a map of the area proposed to be annexed (Annexation No. 51), and to authorize the levy of special taxes therein.

BACKGROUND:

On July 6, 2010, the City Council approved Resolution No. 2010-037 establishing Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs (the "CFD No. 2010-1" or "District") for the purpose of levying special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed upon the City.

These maintenance services, include but are not limited to, the operation, administration and maintenance required to keep the landscaping, lighting, and maintenance and repair of public structures situated on parks, parkways, streets, roads, and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park, and the maintenance and operation of storm drainage and flood protection facilities, and drainage inlets and retention basins.

The Special Taxes levied by the District will provide funding for services and incidental expenses in connection with said services. It was anticipated that additional property would annex into CFD No. 2010-1 in future years as development continues. These annexed properties will be subject to the same special tax formula in the Rates and Method of Apportionment of Special Tax (“RMA”) as property that was included in the CFD No. 2010-1 at the time of its formation. As properties annex into CFD No. 2010-1, the City Council shall adopt annexation maps to reflect the inclusion of the Annexed Property.

DISCUSSION:

The services as described above may be funded with proceeds of the special tax of CFD No. 2010-1, as provided by Section 53313 of the California Government Code. The existing and new developments of residential and non-residential properties do not provide sufficient revenues to provide landscape maintenance and lighting services. The City formed CFD No. 2010-1 (Services) to Item Number: 12.

SR-25-188
address this shortfall, and to provide certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property.

Special Tax rates are based on District costs, maintenance category, as well as land use category.

These Special Tax rates are applied on a Benefit Unit (“BU”) basis determined by the property's Land Use Category, which are one (1) BU per single-family residential unit, six tenths (0.6) BU per multifamily unit, five (5) BUs per acre for commercial and hotel property, and two (2) BUs per acre for industrial and religious property. To accommodate the unknown maintenance costs of future projects, properties are assigned Maintenance Categories with a rate per BU for providing services to those parcels. There are 36 Maintenance Categories included in the Rates and Method of Apportionment.

These 36 Maintenance Categories range from $20.00 to $5,000.00 per BU, which is determined by their Land Use Category. After a Maintenance Category has been assigned, the Special Tax levied adjusts annually by the greater of the Consumer Price Index or two- and one-half percent at the beginning of each following fiscal year. The City can levy less than the maximum annual special tax if the full amount is not needed, but never more. Maintenance Category assignments can be seen in Exhibit C of the attached CFD No. 2010-1 Resolution. The proposed annexation to the District consists of approximately 3.9 acres.

This fifty-first annexation to the District will increase CFD No. 2010-1 by one parcel, 3.9 nonresidential acres.

Subject to the approval of the City Council tonight, a public hearing on the annexation will be scheduled for Tuesday, October 7, 2025. This is a landowner election since there are fewer than 12 registered voters within the annexation area. Pursuant to waiver of election time limits from the landowner, a ballot will be mailed in advance of the public hearing. At the closing of the public hearing, an election of the qualified electors (landowners in the District) will be held to determine if the electors approve the annexation to the District and the levy of the special tax.

FISCAL IMPACT:

Currently, existing and new development generates insufficient General Fund revenues to pay for the General Fund expenses of serving the area. The District provides the City additional funding for a portion of landscape maintenance, lighting, and drainage basin service costs (i.e. landscaping, lighting, and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space). A portion of the operations funding will be derived from alternative funding sources including other special districts and the City's General Fund.

All costs associated with the annexation to CFD No. 2010-1 are to be paid for by the property owners/developers who are participating in the annexation to CFD No. 2010-1 through an application fee of $5,000. The costs associated with this annexation to CFD No. 2010-1 are paid by the property owner. The property owner is responsible for all costs and payment of associated levy amounts applied to the annual tax roll for maintenance services.

STRATEGIC ALIGNMENT:

This initiative supports the following goals of the City's Strategic Plan:

Goal 11: Financial and Operations
Continue to provide fiscally sound operations via the ongoing evaluation of city processes and operational needs to maximize efficiency, streamline processes and eliminate bureaucracy, when possible, to deliver outstanding customer service and Item Number: 12.

SR-25-188
professionalism in all interactions with residents and the public.

ATTACHMENTS:
1) CFD 2010-1 Annex 51 - ROI
2) Description of Territory CFD 2010-1 Annex 51
3) Boundary Map CFD 2010-1 Annex 51
4) CFD 2010-1 Annex 51 - ROI EX C (C-1)- RMA
5) CFD 2010-1 Annex 51 - ROI EX C (C-2) - RMA
6) CFD 2010-1 Annex 51 - ROI EX. D - Notice
7) CFD 2010-1 Annex 51 - ROI EX. E - Ballot
8) CFD 2010-1 Annex 51 - ROI EX. F - Petition Waiver Consent 9) Council Properties CFD 2010-1 Annex 51
Item Number: 12.

Resolution No. 2025-______
Date Adopted: September 2, 2025

RESOLUTION NO. 2025-_________

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

SPRINGS DECLARING ITS INTENTION TO ANNEX TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES) OF THE

CITY OF DESERT HOT SPRINGS, ADOPTING A MAP OF THE AREA
PROPOSED TO BE ANNEXED (ANNEXATION NO. 51), AND TO

AUTHORIZE THE LEVY OF SPECIAL TAXES THEREIN
WHEREAS, on July 6, 2010 the City Council (the “City Council”) of the City of Desert Hot Springs (the “City”) approved Resolution No. 2010-037 establishing Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs, County of Riverside, State of California (the "CFD No. 2010- 1") for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and
WHEREAS, the City Council called a special election for July 6, 2010, at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2010-1 were submitted to the qualified electors within the CFD No. 2010-1; and
WHEREAS, on July 6, 2010, the City Council adopted Resolution No. 2010-038 determining the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DESERT HOT

SPRINGS, ACTING EX OFFICIO AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT 2010-1 (SERVICES) OF THE CITY OF DESERT HOT SPRINGS, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Intent. The City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities District of the territory described in Exhibit "A" attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District.

Section 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2010-1 (Services).” Section 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed is included within the boundaries for which property may annex to CFD No. 2010-1 and are more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs, County of Riverside, State of California,” as recorded on June 8, 2010 in Book 74 of Maps of Assessment and Community Facilities District, Page 81, and as Instrument No. 2010-0263725 in the official records of the County of Riverside. The territory proposed to be annexed to the CFD No. 2010-1 is described in Exhibit "A" attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 51, Community Facilities District No. 2010-1 (Services), City of Desert Hot Springs, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit B.

Item Number: 12.

Resolution No. 2025-______
Date Adopted: September 2, 2025

Section 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2010-1 (the “Services”) include, without limitation, all necessary service, operation, administration and maintenance required to keep the lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park, and the maintenance and operation of storm drainage and flood protection facilities including, without limitation, drainage inlets and retention basins. The cost of providing the Services includes “incidental expenses,” which include costs associated with the creation of CFD No. 2010-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2010-1. The Services authorized to be financed by CFD No. 2010-1 are in addition to those currently provided in the territory of CFD No. 2010-1 and do not supplant services already available within that territory.

Section 5. Levy of Special Tax. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2010-1, will be levied annually within the territory proposed to be annexed to the CFD No. 2010-1. Pursuant to Section 53340 of the California Government Code, and the special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. The rates and method of apportionment, and manner of collection of the special tax are specified in Exhibit C. The rate of special tax to be levied on property within the territory proposed to be annexed to CFD No. 2010-1 in any fiscal year to pay the cost of the services described in Section 4 above shall be equal to the rate of special tax which will be levied on all other property within the CFD No. 2010-1 to pay the cost of such services in such fiscal year.

Section 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to CFD No. 2010-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than fifteen days prior to the date of the hearing specified in Section 7 hereof.

Section 7. Public Hearing. The City Council hereby fixes 6:00 p.m., or as soon thereafter as practicable, on October 7, 2025, in the City Council Chambers located at 11-999 Palm Drive, Desert Hot Springs, California 92240, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of said territory to the CFD No. 2010-1.

Section 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit D, one time in a newspaper of general circulation published in the area of CFD No. 2010-1. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of the Act.

Section 9. Mailing Ballots. In anticipation of its action on Tuesday, October 7, 2025, to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2010-1 a ballot in substantially the form set forth in Exhibit E hereto. A copy of the petition, waiver and consent form signed by the property owner is attached hereto as Exhibit F and incorporated herein by this reference.

Item Number: 12.

Resolution No. 2025-______
Date Adopted: September 2, 2025

Section 10. Effective Date. This Resolution shall take effect immediately upon its passage.

Dated: September 2, 2025
PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a special meeting held on this second day of September 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

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

Jennifer Mizrahi, City Attorney
Item Number: 12.

Resolution No. 2025-______
Date Adopted: September 2, 2025

CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on September 2, 2025 of which meeting all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at 11-999 Palm Drive, Desert Hot Springs, CA 92240, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

I do hereby further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

Dated: September 2, 2025
City Clerk of the City of Desert Hot Springs
[SEAL]
Item Number: 12.

EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
Item Number: 12.

EXHIBIT B

ANNEXATION MAP
Item Number: 12.

EXHIBIT C
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)

RATE AND METHOD OF APPORTIONMENT
Item Number: 12.

EXHIBIT D

NOTICE OF PUBLIC HEARING
Item Number: 12.

EXHIBIT E

SPECIAL ELECTION BALLOT
Item Number: 12.

EXHIBIT F

WAIVER AND CONSENT RESPECTING CONDUCT OF

MAILED-BALLOT, LANDOWNER ELECTION
Item Number: 12.

EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Desert Hot Springs Community Facilities District No. 2010-1 (the “CFD No. 2010-1”) Annexation No. 51 is currently comprised of one (1) parcel, located within the City boundaries. The property is identified by the following Riverside County Assessor's Parcel Number (APN).

APN Owner Name
660-160-029 TKC Desert Hot Springs, LLC
Item Number: 12.

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660-160-029
I-10
PA
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PAUL RD

THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL

OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS CONCERNING THE LINES AND

DIMENSIONS OF LOTS OR PARCELS REFER TO THE COUNTY
ASSESSOR'S MAPS FOR FISCAL YEAR 2025-2026.

ANNEXATION MAP NO. 51
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)

CITY OF DESERT HOT SPRINGS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

VICINITY MAP

NOT TO SCALE
0 500 1,000
Feet

PROJECT
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20TH AVE

BLAIR RD
PA
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VARN
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PAUL RD
18TH AVE

DILLON RD
LIT
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10 10

PARCEL IDENTIFICATION NUMBER
LEGEND

CFD BOUNDARY

PARCEL LINE

FILED IN THE OFFICE OF THE CITY CLERK,
CITY OF DESERT HOT SPRINGS, THIS ____
DAY OF _______, 20___.
____________________________________

CITY CLERK

CITY OF DESERT HOT SPRINGS
RECORDED THIS ____ DAY OF ___________,
20___, AT THE HOUR OF ____ O'CLOCK __M, IN
IN BOOK ___ PAGE ___ OF MAPS OF ASSESSMENT

AND COMMUNITY FACILITIES DISTRICTS IN THE

OFFICE OF THE COUNTY RECORDER, IN THE
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

FEE: ____________ NO.: _______________

PETER ALDANA, ASSESSOR, COUNTY CLERK,

RECORDER
BY: ______________________________________
DEPUTY

THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE
ANNEXED TO COMMUNITY FACILITIES DISTRICT NO.
2010-1 (SERVICES) OF THE CITY OF DESERT HOT

SPRINGS, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY

FACILITIES DISTRICT ARE SHOWN AND DESCRIBED

ON THE MAP THEREOF WHICH WAS PREVIOUSLY
RECORDED ON JUNE 8, 2010, IN BOOK 74 OF MAPS OF

ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS
AT PAGE 81 AND AS INSTRUMENT NO. 2010-0263725,

IN THE OFFICE OF THE COUNTY RECORDER OF THE
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

I HEREBY CERTIFY THAT THE WITHIN MAP OR AREAS

TO BE ANNEXED TO COMMUNITY FACILITIES
DISTRICT NO. 2010-1 (SERVICES) OF THE CITY OF

DESERT HOT SPRINGS, COUNTY OF RIVERSIDE, STATE

OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL

OF THE CITY OF DESERT HOT SPRINGS AT A REGULAR
MEETING THEREOF, HELD ON THE ___________ DAY OF
_____________________, 20___, BY ITS RESOLUTION
NO.________________.
______________________________

CITY CLERK

CITY OF DESERT HOT SPRINGS
Item Number: 12.

EXHIBIT C-1
City of Desert Hot Springs C-1
Community Facilities District No. 2010-1 (Services)

RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)

OF THE CITY OF DESERT HOT SPRINGS
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2010-1 (Services), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2010, in an amount determined by the City Council of the City of Desert Hot Springs, acting ex officio as the legislative body of CFD No. 2010-1, by applying the rates and method of apportionment set forth below. All of the real property in CFD No. 2010-1, unless exempted by law or by the provisions herein, shall be taxed for the purposes, to the extent and in the manner provided herein.

A. DEFINITIONS
“Acre or Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means any ordinary and necessary expenses allocable to the Special Tax Requirement which are incurred by the City on behalf of CFD No. 2010-1 related to the determination of the amount of the levy of Special Tax, the collection of Special Tax including the expenses of collecting delinquencies, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2010-1, and costs otherwise incurred in order to carry out the authorized purposes relating to CFD No. 2010-1.
“Administrator” means the City of Desert Hot Springs City Manager of the City, or his or her designee.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Taxable Property, as determined in accordance with Section C., below.

Item Number: 12.

City of Desert Hot Springs C-2
Community Facilities District No. 2010-1 (Services)
“Benefit Unit” means a single family residential lot or dwelling unit or the equivalent.

Single Family Property is assigned benefit units based on the number of Residential Units per Assessor’s Parcel with the basis being one (1) benefit unit per Residential Unit. MultiFamily Residential Property is assigned 60 percent of one benefit unit, or six-tenths (0.6) benefit units, per Residential Unit. Commercial Property is assigned benefit units based on acreage with the basis being five (5) benefit units per acre. Hotel Property is assigned benefit units based on acreage with the basis being five (5) benefit units per acre. Industrial Property is assigned benefit units based on acreage with the basis being two (2) benefit units per acre.

Religious Property is assigned benefit units based on acreage with the basis being two (2) benefit units per acre.
“CFD” or “CFD No. 2010-1” means the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services).
“City” has the meaning set forth in the preamble.
“Commercial Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for a commercial establishment which includes, but is not limited to, retail stores, clothing stores, book stores, video rental stores, drug stores, professional services (i.e., barber shops, dry cleaners), restaurants, supermarkets, hospitals, movie theaters, appliance and electronic stores, home supply stores, auto parts stores, and other businesses providing auto-related products and services. The Administrator shall make the determination if an Assessor’s Parcel is Commercial Property. “County” means the County of Riverside
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“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 1352 that creates individual lots for which building permits may be issued without further subdivision
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Hotel Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for a structure that constitutes a place of lodging providing sleeping accommodations and related facilities for travelers. The Administrator shall make the determination if an Assessor’s Parcel is Hotel Property. “Industrial Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for construction of an industrial, manufacturing, or warehousing structure. The Administrator shall make the determination if an Assessor’s Parcel is Industrial Property.

Item Number: 12.

City of Desert Hot Springs C-3
Community Facilities District No. 2010-1 (Services)
“Land Use Category” means any of the categories contained in Table 1 hereof to which a Parcel is assigned consistent with the land use approvals that have been received or proposed for the Parcel as of March 1 preceding the beginning of a Fiscal Year. “Maintenance Category” means any of the categories listed in Table 2 hereof to which an Assessor’s Parcel is assigned consistent with the rate per Benefit Unit for providing Services to said Assessor’s Parcel as determined by the Administrator. “Maximum Special Tax Rate(s)” means the Maximum Special Tax for each Land Use Category of Taxable Property, as determined in accordance with Section C., below. “Multi-Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units available for rental, but not purchase, by the general public and under common management. “Religious Property” means any Assessor’s Parcel used as a place of worship or for other religious activities. The Administrator shall make the determination if an Assessor’s Parcel is Religious Property.
“Residential Unit” means, for each Fiscal Year, a building or portion thereof on an Assessor’s Parcel intended for use by one (1) family and containing but one (1) kitchen, which is designed primarily for residential occupancy including single family and multifamily dwellings. Residential Unit shall not include hotels or motels which shall be classified as Hotel Property.
“Services” means those services authorized to be funded by CFD No. 2010-1 as set forth in the documents adopted by the City Council when the CFD was formed.. “Single Family Residential Property” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
“Special Tax(es)” means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2010-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for Bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2010-1, which are not Exempt Property.

Item Number: 12.

City of Desert Hot Springs C-4
Community Facilities District No. 2010-1 (Services)
B. ASSIGNMENT TO LAND USE AND MAINTENANCE CATEGORY
The Special Tax shall be levied annually upon each Assessor’s Parcel of Taxable Property for each Fiscal Year according to the Land Use Category and Maintenance Category assigned. Each Fiscal Year the Administrator shall identify the current Assessor’s Parcel Number assigned to all Assessor’s Parcels of Taxable Property within CFD No. 2010-1 and determine which Land Use Category each Assessor’s Parcel should be assigned to according to Table 1 below. The Administrator shall further assign the appropriate Maintenance Category contained in Table 2 according to the estimated cost for providing Services to the Assessor’s Parcel.

TABLE 1
Land Use Category
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Land Use
Category Description Benefit Unit(s)
A Single Family Residential Property One (1) / Residential Unit B Multi-Family Residential Property Six tenths (0.6) / Residential Unit C Commercial Property Five (5) / Acre
D Hotel Property Five (5) / Acre
E Industrial Property Two (2) / Acre
F Religious Property Two (2) / Acre
No Special Tax shall be levied on property which, at the time of adoption of the Resolution of Formation for CFD No. 2010-1, is an Exempt Property.

Item Number: 12.

City of Desert Hot Springs C-5
Community Facilities District No. 2010-1 (Services)
C. MAXIMUM SPECIAL TAX RATES
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property assigned to each Maintenance Category shall be the greater of: (i) the applicable Assigned Special Tax described in Table 2 for such Maintenance Category or (ii) the amount derived by application of the Backup Special Tax.
a. Assigned Special Tax
The Assigned Special Tax for each Assessor’s Parcel of Taxable Property is shown in Table 2 is fixed and does not increase each Fiscal Year. For each Fiscal Year following the first Fiscal Year an Assessor’s Parcel is levied the applicable Assigned Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two and one half percent (2.50%), whichever is greater on each subsequent July 1 for the Fiscal Year then commencing.
b. Backup Special Tax
The Backup Special Tax shall equal the Assigned Special Tax that is applicable to an Assessor’s Parcel as determined for the current Fiscal Year the tax is calculated.

Notwithstanding the foregoing, if Assessor’s Parcels classified or to be classified as Taxable Property is subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for the area that has been changed or modified.

When a Final Map is recorded, the Backup Special Tax for an Assessor’s Parcel classified or to be classified as Commercial Property, Industrial Property, or Religious Property within such Final Map shall be determined by multiplying the Assigned Special Tax rate per Benefit Unit by the Proposed Benefit Units or Acreage of Commercial Property, Industrial Property, or Religious Property described in Table 4 of Section G., in such Final Map and dividing such amount by the number of Taxable Acres classified or to be classified as Commercial Property, Industrial Property, or Religious Property (i.e., the number of acres) within such Final Map.

When a Final Map is recorded, the Backup Special Tax for an Assessor’s Parcel classified or to be classified as Single Family Residential Property or Multi-Family Residential Property within such Final Map shall be determined by multiplying the Assigned Special Tax rate per Benefit Unit by the Proposed Benefit Units of Single Family Residential Property or MultiFamily Residential Property described in Table 4 of Section G., in such Final Map and dividing such amount by the number of Assessor’s Parcels classified or to be classified as Single Family Residential Property or Multi-Family Residential Property (i.e., the number of single family residential lots) within such Final Map.

For each Fiscal Year following Fiscal Year 2010-2011 the Backup Special Tax shall increase by the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or by two and one half percent (2.50%), whichever is greater.

Item Number: 12.

City of Desert Hot Springs C-6
Community Facilities District No. 2010-1 (Services)
TABLE 2
Assigned Special Tax Rates
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Maintenance
Category
Assigned Special Tax
Rate Per Benefit Unit
1 $20.00
2 $30.00
3 $40.00
4 $50.00
5 $60.00
6 $70.00
7 $80.00
8 $90.00
9 $100.00
10 $150.00
11 $200.00
12 $250.00
13 $300.00
14 $350.00
15 $400.00
16 $450.00
17 $500.00
18 $550.00
19 $600.00
20 $650.00
21 $700.00
22 $750.00
23 $800.00
24 $850.00
25 $900.00
26 $950.00
27 $1,000.00
28 $1,250.00
29 $1,500.00
30 $2,000.00
31 $2,500.00
32 $3,000.00
33 $3,500.00
34 $4,000.00
35 $4,500.00
36 $5,000.00
Item Number: 12.

City of Desert Hot Springs C-7
Community Facilities District No. 2010-1 (Services)
TABLE 3
Assignment to Land Use Category
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Assessor Parcel No. Land Use Category Maintenance Category 642-081-006 B 15
D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
For each Fiscal Year, the City shall determine the total amount of the Special Tax Requirement to be levied and collected to pay the costs of providing the Services during the Fiscal Year and shall levy the Special Tax as determined by the actual cost of providing services as shown in Exhibit A on all Assessor’s Parcels in all Land Use Categories and Maintenance Categories at the rates necessary to fully fund such costs; provided that such rates shall not exceed the Maximum Special Tax Rates for the Fiscal Year. In levying the Special Tax to fund the costs of providing the Services in each Fiscal Year, the City shall (a) determine the cost of providing the Services and the amount of the Special Tax per Benefit Unit to be levied on Assessor’s Parcels in each Maintenance Category to provide such Services; (b) levy the Special Tax on all Assessor’s Parcels in each Maintenance Category, as then applicable, based on the Benefit Units assigned to such Assessor’s Parcels depending on the Land Use Categories to which they are assigned. The amount of the Special Tax to be levied on any Assessor’s Parcel in any Fiscal Year shall be the total of the rates of Special Tax determined pursuant to clauses (a) and (b) above, to the extent that such clauses are applicable to the Assessor’s Parcel, based on the Land Use Category and Maintenance Category to which the Assessor’s Parcel is assigned and the Services which must be funded from the total amount of the Special Tax per Benefit Unit to be levied on all Assessor’s Parcels in the same Maintenance Category to fund the costs of such Services.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2010-1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed will be assigned to the appropriate Maintenance Category and the appropriate Assigned Tax rate contained in Table 2.

F. TERM OF SPECIAL TAX
For each Fiscal Year, the Special Tax shall be levied in perpetuity as long as the Services are being provided.

Item Number: 12.

City of Desert Hot Springs C-8
Community Facilities District No. 2010-1 (Services)
G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2010-1, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator.

Notwithstanding the foregoing, the classification of Exempt Property shall not reduce the Benefit Units or Acreage to less than the amount shown in Table 4 below.

TABLE 4
Proposed Benefit Units and Acreage
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Assessor Parcel No. Benefit Units Acreage
642-081-006 36 4.43
H. APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2010-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2010-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

Item Number: 12.

Item Number: 12.

Item Number: 12.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #3 – March 2013
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 641-251-017 C 10 9.35 1.87
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #4 – September 2014
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 663-290-003 C 25 34.05 6.81
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #5– August 2015
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 656-020-037 C 16 36.05 7.21
Item Number: 12.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #6 – September 2015
Assessor’s Parcel No. Land Use Category Maintenance
Category Benefit Units Acreage
642-162-017 C 23 3.8 0.76
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #7 – Failed
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #8 – December 2016
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 657-030-057 C 19 5.35 1.07
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #9 – May 2017
Assessor’s Parcel
No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-062 E 34 2.14 1.07
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #10 – Failed
Item Number: 12.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #11 – May 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-063 E 35 7.56 3.78
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #12 – Failed
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #13 – May 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-080-013 E 32 18.84 9.42
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #14 – March 2018
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 641-101-005 C 36 .90 0.18
641-101-006 C 36 .75 0.15
Item Number: 12.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #15 – September 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-058 E 36 4.26 2.13
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #16 – June 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 660-160-010 C 32 6.25 1.25
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #17 – June 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-017 E 31 2.52 1.26
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #18 – June 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-049 E 36 2.52 1.26
Item Number: 12.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #19 – June 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 663-270-004 E 31 29.24 14.62
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #20 – Failed
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #21 – June 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 641-092-049 C 34 2.55 0.51
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #22 – January 2018
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-037 E 34 5.04 2.52
Item Number: 12.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #23 – October 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 663-280-025 C 28 91.25 18.25
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #24 – November 2017
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-030-060 C 31 9.05 1.81
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #25 – January 2018
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-040-017 E 36 2.52 1.26
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #26 – January 2018
Assessor’s Parcel No. Land Use Category Maintenance Category Benefit Units Acreage 665-110-004 C 36 187.15 37.43
Item Number: 12.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #27 – November 2017
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
666-340-004 E 31 247.82 123.91
666-340-006 E 31 59.04 29.52
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #28 – March 2018
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
665-050-021 E 36 2.24 1.12
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #29 – May 2018
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
666-370-012 E 36 9.42 4.71
666-370-013 E 36 18.80 9.40
666-370-014 E 36 18.78 9.39
666-370-015 E 36 9.36 4.68
Item Number: 12.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #30 – May 2018
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
663-270-001 C 29 48.75 9.75
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #31 – June 2018
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
663-280-005 E 36 19.54 9.77
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #32 – January 2019
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
639-281-001 C 36 .75 .15
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #33 – On Hold
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #34 – On Hold
Item Number: 12.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #35 – November 2019
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
665-030-051 E 36 2.14 1.07
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #36 – November 2019
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
665-030-052 E 36 2.14 1.07
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Annexation #37 – January 2020
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
665-110-006 E 36 32 16
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #38 – On Hold
Item Number: 12.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #39 – July 2021
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
641-041-044 C 19 1.5 0.3
641-041-045 C 19 1.5 0.3
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #40 – On Hold
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #41 – June 2021
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
656-470-001 A 16 1 0.21
656-470-002 A 16 1 0.17
656-470-003 A 16 1 0.17
656-470-004 A 16 1 0.17
656-470-005 A 16 1 0.17
656-470-006 A 16 1 0.17
656-470-007 A 16 1 0.17
656-470-008 A 16 1 0.17
656-470-009 A 16 1 0.17
656-470-010 A 16 1 0.17
656-470-011 A 16 1 0.17
656-470-012 A 16 1 0.17
656-470-013 A 16 1 0.19
656-470-014 A 16 1 0.17
656-470-015 A 16 1 0.17
656-470-016 A 16 1 0.17
656-470-017 A 16 1 0.17
656-470-018 A 16 1 0.17
656-470-019 A 16 1 0.17
656-470-020 A 16 1 0.17
656-470-021 A 16 1 0.17
656-470-022 A 16 1 0.17
656-470-023 A 16 1 0.17
Item Number: 12.

Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
656-470-024 A 16 1 0.17
656-470-025 A 16 1 0.17
656-470-026 A 16 1 0.17
656-470-027 A 16 1 0.17
656-470-028 A 16 1 0.28
656-470-029 A 16 1 0.19
656-470-030 A 16 1 0.17
656-470-031 A 16 1 0.17
656-470-032 A 16 1 0.17
656-470-033 A 16 1 0.17
656-470-034 A 16 1 0.17
656-470-035 A 16 1 0.17
656-470-036 A 16 1 0.17
656-470-037 A 16 1 0.17
656-470-038 A 16 1 0.17
656-470-039 A 16 1 0.17
656-470-040 A 16 1 0.17
656-470-041 A 16 1 0.17
656-480-001 A 16 1 0.19
656-480-002 A 16 1 0.20
656-480-003 A 16 1 0.20
656-480-004 A 16 1 0.19
656-480-005 A 16 1 0.19
656-480-006 A 16 1 0.28
656-480-007 A 16 1 0.17
656-480-008 A 16 1 0.17
656-480-009 A 16 1 0.17
656-480-010 A 16 1 0.17
656-480-014 A 16 1 0.17
656-480-015 A 16 1 0.17
656-480-016 A 16 1 0.17
656-480-017 A 16 1 0.17
656-480-018 A 16 1 0.17
656-480-029 A 16 1 0.18
656-480-030 A 16 1 0.18
656-480-036 A 16 1 0.25
656-480-037 A 16 1 0.27
656-480-038 A 16 1 0.25
656-480-039 A 16 1 0.19
656-490-001 A 16 1 0.17
656-490-002 A 16 1 0.17
656-490-013 A 16 1 0.18
656-490-014 A 16 1 0.17
656-490-015 A 16 1 0.17
656-490-016 A 16 1 0.17
Item Number: 12.

Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
656-490-029 A 16 1 0.17
656-490-030 A 16 1 0.17
656-490-031 A 16 1 0.17
656-490-032 A 16 1 0.17
656-490-033 A 16 1 0.17
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #42 – September 2021
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
665-030-064 E 31 6.28 3.14
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #43 – December 2021
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
664-144-005 C 31 0.9 0.18
644-151-004 C 31 1.7 0.34
644-151-005 C 31 1.5 0.30
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #44 – On Hold
Assessor’s Parcel No. Land Use
Category Maintenance Category Benefit Units Acreage
666-310-011 E 36 26.32 13.16
Community Facilities District No. 2010-1 (Services)
Item Number: 12.

City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #45 – December 2021
Assessor’s
Parcel No. Land Use Category Maintenance Category
Benefit
Units Acreage
639-212-019 C 36 0.90 0.18
639-212-020 C 36 0.80 0.16
639-212-021 C 36 0.80 0.16
639-212-022 C 36 0.80 0.16
639-212-023 C 36 0.90 0.18
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #46 – On Hold
Assessor’s
Parcel No. Land Use Category Maintenance Category
Benefit
Units Acreage
656-020-045 C 33 10.05 2.01
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #47 – June 2022
Assessor’s
Parcel No. Land Use Category Maintenance Category
Benefit
Units Acreage
656-040-052 C 36 7.70 1.54
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #48 – November 2023
Assessor’s
Parcel No. Land Use Category Maintenance Category
Benefit
Units Acreage
666-360-017 E 36 8.00 4.00
Item Number: 12.

Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #50 – In Progress
Assessor’s
Parcel No. Land Use Category Maintenance Category
Benefit
Units Acreage
666-370-039 E 36 189.82 94.91
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs
Assignment to Maintenance Category
Proposed Annexation #51 – In progress
Assessor’s
Parcel No.

Land Use
Category
Maintenance
Category
Benefit
Units Acreage
660-160-029 E 36 7.80 3.9
Item Number: 12.

EXHIBIT D

NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX

TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT
NOTICE IS HEREBY GIVEN that the City Council of the City of Desert Hot Springs on September 2, 2025, adopted its Resolution No. 2025-____, on file with the City Clerk, in which it declared its intention to annex territory to existing Community Facilities District No. 2010-1 (Services) (the "CFD No. 2010-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed, specifies the type of services to be financed, and describes the rates and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2010-1 is proposed. For further details, the resolution is available at the Office of the City Clerk, 11-999 Palm Drive, Desert Hot Springs, CA 92240.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 6:00 p.m., or as soon thereafter as practicable, on Tuesday, October 7, 2025, in the City Council Chambers located at 11-999 Palm Drive, Desert Hot Springs, CA 92240, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of said territory to the CFD No. 2010-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard.

DATED: ____________, 2025 _________________________________________ City Clerk of the City of Desert Hot Springs
Item Number: 12.

SPECIAL TAX ELECTION

CITY OF DESERT HOT SPRINGS

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 51
(October 7, 2025)
This ballot is for the use of the authorized representative of the following owner of land within the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services) (“CFD No. 2010-1”) Annexation No. 51:

Name of Landowner Number of Acres Owned Total Votes
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Desert Hot Springs (the “City”), the abovenamed landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcel identified below, which parcel is located within the territory proposed to be annexed to the CFD No. 2010-1, City of Desert Hot Springs, County of Riverside, State of California. Please advise the City Clerk, at (760) 329-6411 – Ext. 107, if the name set forth below is incorrect or if you are no longer one of the owners of this parcel. This special tax ballot may be used to express either support for, or opposition to, the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail in an adequate amount of time so that the City Clerk receives the signed ballot no later than October 7, 2025, the date set for the election.

Personal
Delivery: If in person, deliver to the City Clerk’s office (11-999 Palm Drive, Desert Hot Springs, 92240) any time before 4:00 p.m. on October 7, 2025. If after 4:00 p.m., please deliver to the City Clerk, at the City Council Chambers (11-999 Palm Drive, Desert Hot Springs, 92240) no later than 6:00 p.m.

However delivered, this ballot must be received by the City Clerk prior to the close of the public meeting on October 7, 2025.

Very truly yours,
Geoffrey Buchheim
Administrative Services Director
Item Number: 12.

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 51
AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE
MARK “YES” OR “NO”
WITH AN “X”:

Shall the City Council of the City of Desert Hot Springs be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2010-1 (Services) adopted by the City Council on September 2, 2025 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 51 of Community Facilities District No. 2010-1 (Services) City of Desert Hot Springs, County of Riverside,” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses)? YES _________

NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.

Owner Name,
Signature
Print Name
Title
Item Number: 12.

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Item Number: 12.

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FD2010-1Annexation51
CouncilMemberProperties
Source:CountyofRiversideGIS,2025
CFD2010-1
Annexation51
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M:\GIS-Assessment\DHS\CouncilProperties_CFD2010-1_Annex51.mxd; Map revised Sept. 12, 2019 06,00012,000Feet

CITYOFDESERTHOTSPRINGS
LEGEND
Annex51(NorthofPaulRd.&WestofPalmDr.)
CityBoundary
CouncilMember'sProperty
500FootBuffer
CouncilMember'sProperty
JP-JanPye
DV-DirkVoss
DP-DanielPitts
GG-GaryGardner
SM-ScottMatas
Item Number: 12.

SR-25-196
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: September 2, 2025
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of an Ordinance Amending Desert Hot Springs Municipal Code Chapter 3.38 - Lost Cultivation Crop Waiver Appeal Fee
RECOMMENDATION:

Approve second reading, read by title only and adopt: "An Ordinance of the City Council of the City of Desert Hot Springs, California, amending Chapter 3.38 “Lost Cultivation Crop Waiver” of Title 3 "Revenue and Finance" of the Desert Hot Springs Municipal Code." BACKGROUND:

The ordinance was introduced and approved for first reading on July 1, 2025.

The ordinance shall take effect thirty (30) days after its second reading.

STRATEGIC ALIGNMENT:

This initiative supports the following goals of the City's Strategic Plan:

Goal 11: Financial and Operations
Continue to provide fiscally sound operations via the ongoing evaluation of city processes and operational needs to maximize efficiency, streamline processes and eliminate bureaucracy, when possible, to deliver outstanding customer service and professionalism in all interactions with residents and the public.

ATTACHMENTS:
1) Staff Report from July 1, 2025
2) Ordinance Amending DHSMC 3.38
Item Number: 13.

SR-25-137
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 1, 2025
Department: Code & Cannabis Compliance
Prepared by: Andrew Nielsen, Cannabis Compliance Supervisor Subject: Ordinance Amending Desert Hot Springs Municipal Code Chapter 3.38 - Lost Cultivation Crop Waiver Appeal Fee
RECOMMENDATION:

Introduce for first reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, California, amending Chapter 3.38 “Lost Cultivation Crop Waiver” of Title 3 "Revenue and Finance" of the Desert Hot Springs Municipal Code." BACKGROUND:

Title 3 of the Municipal Code governs revenue and finance, including the operation of Cannabis Storefront Retail, Cannabis Non-Storefront Retail, Cannabis Cultivation, Cannabis Manufacturing, Cannabis Testing, and Cannabis Distribution facilities (collectively Cannabis Facilities”).

The City currently relies on the Cannabis Compliance Team and Code Compliance Division (collectively, the “Cannabis Team”) to enforce Chapter 3.38 and to assist in and review eligibility for, and applicability of Lost Cultivation Crop Waivers. Based on their experience and expertise, the Cannabis Compliance Team and Code Compliance Division recommend the amendment of Chapter

3.38 to account for fees associated with the hearing after a Lost Cultivation Crop Waiver applicant appeals the City’s decision.

DISCUSSION:

The proposed ordinance seeks to amend Chapter 3.38 to create a fee appeal the City’s decision to deny a Lost Cultivation Crop Waiver. The City incurs costs to process requests for appeals, establish a hearing date and forum, and for staff to prepare for and attend the hearings. In the previously approved appeals process under this Chapter3.38 did not include a fee for the hearing, which is inconsistent with other similar requests for hearings.

The proposed amendment of Chapter 3.38 will provide consistency among all hearing requests made to the City.

OPTIONAL:

Strategic Alignment
This initiative supports the following goals of the City's Strategic Plan Item Number: 13.

SR-25-137
 Goal 11: Provide fiscally sound operations, evaluate city processes to maximize efficiency.

ATTACHMENTS:
1) Ordinance Amending DHSMC 3.38
Item Number: 13.

ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS, CALIFORNIA AMENDING CHAPTER 3.38 “LOST
CULTIVATION CROP WAIVER” OF TITLE 3 “REVENUE AND
FINANCE” OF THE DESERT HOT SPRINGS MUNICIPAL CODE
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, currently Chapter 3.38of the Desert Hot Springs Municipal Code the City provides for granting tax waivers for a lost cultivation crop; and WHEREAS, pursuant to Chapter 3.38 of the Desert Hot Springs Municipal Code a qualified applicant may appeal the City’s decision to deny them a tax waiver; and WHEREAS, the City seeks to amend Chapter 3.38 of the Desert Hot Springs Municipal Code to add a reasonable fee in order to apply for an appeal; and WHEREAS, the proposed fee does not exceed the City’s reasonable costs of administering services; and
WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment.

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

Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.

Section 2. AMENDMENT OF CHAPTER 3.38 “LOST CULTIVATION
CROP WAIVER” OF TITLE 3 “REVENUE AND FINANCE”
Chapter 3.38 of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

3.38.001 Definitions
The definitions contained in Chapters 5.50 and 17.180 of this code shall apply, except as otherwise stated in this chapter.

3.38.005 Eligibility
The City, in its sole discretion, may grant a lost cultivation crop tax waiver to a cannabis cultivation facility that has lost its cannabis crops if the City determines that all of the following eligibility requirements have been met:

Item Number: 13.

A. The cannabis cultivation facility entity has not been granted a lost cultivation crop tax waiver in the prior 12 months.

B. The cannabis cultivation facility is in good standing with the City, with no active Code Compliance matters or tax delinquencies.

C. The cannabis cultivation facility has not intentionally caused or significantly contributed to the cause of the failed crop.

D. The failed crop is not the result of a natural disaster or an Act of God.

E. Preventative measures were not readily and reasonably knowable to the cannabis cultivation facility prior to the events leading to the failed crop.

3.38.010 Rejection of Lost Cultivation Crop Tax Waiver
A Lost Cultivation Crop Tax Waiver application shall be rejected if the cannabis cultivation facility fails to meet all of the eligibility requirements.

3.38.020 Lost Cultivation Crop Tax Waiver Application
A cannabis cultivation facility desiring or proposing to apply for a Lost Cultivation Tax Waiver shall file with the City Manager or designee a written application as so required by the provisions of this Chapter. Each such application shall contain clearly and truthfully, under oath or affirmation, set forth and show, in addition to such other information as the City Manager shall require, the following information:

A. The date of the application.

B. The true name of the applicant, and any other names by which the applicant has been known. In the event the applicant is not the legal owner of the entity that holds the regulatory permit, the application must be accompanied with a notarized acknowledgement from the legal owner.

C. The name and address of the cannabis cultivation facility, and evidence that the cannabis facility is duly organized under the applicable laws of the State of California.

C. Authorization for the City Manager or designee to seek verification of the information contained within the application.

D. A statement in writing by the applicant that it certifies under penalty of perjury that all the information contained in the application is true and correct.

E. A statement in writing providing details of the contributing factors that led to the failed crop.

F. Proof of destruction of crop by any of the following:

1. Metrc Reporting
Item Number: 13.

2. Bill of Lading

3. Video of destruction
G. A mitigation plan that addresses the measures you will put in place to avoid failed crops in the future.

H. If the application is incomplete, the applicant shall have an opportunity to cure the incompleteness within 30 days’ written notice by the City Manager or designee. Failure to complete the application within thirty (30) days of written notice shall result in the denial of the application.

I. Any such additional information as deemed necessary by the City Manager or designee to administer this chapter.

3.38.030 Waiver Benefits by the City
If an eligible cannabis cultivation facility's lost cultivation crop tax waiver application is approved pursuant to this chapter, the City Manager or designee shall have the sole discretion to determine the amount of the tax waiver pursuant to this chapter and within budgetary limitations, but no greater than $75,000 . The City Manager or designee shall make a determination based on the provisions of this chapter, any rules and regulations adopted pursuant to this chapter, and the factual information submitted by the parties or otherwise readily available and shall serve his or her written determination by first-class mail, postage prepaid, to the cannabis cultivation facility operator to the entity’s business address and to the property owner’s address as shown on the last equalized assessment roll.

3.38.040 Grounds for Denial
The City Manager or designee shall deny a lost cultivation crop waiver upon making any of the findings.

A. The cannabis facility is not eligible under this chapter.

B. The applicant or owner(s) made one or more oral or written misrepresentations or omissions.

C. The cannabis facility does not possess an active license State License with the Department of Cannabis Control.

D. The cannabis facility does not possess an active regulatory permit.

E. The cannabis facility or property owner has an active Code Compliance matter.

F. The cannabis facility is delinquent in cultivation tax for periods prior to the lost cultivation crop.

G. Any violation of this Municipal Code.

Item Number: 13.

H. Any other condition specified by law.

I. If the City Manager or designee denies an application, a written notice specifying the reasons for denial shall be issued to the applicant. The City Manager or designee’s decision shall be final unless the applicant appeals pursuant to Section 3.38.050 within 14 calendar days of the date of service of the City Manager’s or designee’s decision.

3.38.050 Appeals and Fees.

A. Within 14 calendar days after the date of a decision of the City Manager or designee to deny an application, an aggrieved applicant may appeal such action to a hearing officer by filing a written appeal, along with a fee as established by resolution of the City Council, with the City Clerk setting forth the reasons why the decision was not proper.

B. The City Manager or designee shall select the hearing officer. Hearing officers shall be impartial third parties and shall not have any pecuniary interest in the proceeding over which he or she is presiding, nor any pecuniary interest in the outcome thereof.

C. As soon as practicable but allowing sufficient time for providing notice of the hearing, the hearing officer shall fix a date, time and place for the hearing of the appeal and shall instruct the citing officer of the same. The City shall prepare and serve a notice of hearing, which shall be in substantially the same form as follows:

You are hereby notified that a hearing will be held before the Administrative Hearing Officer at __________ on the ____ day of _________, ____ at the hour of ____ concerning your appeal filed pursuant to Section 3.38.050 of the Desert Hot Springs Municipal Code. You may be present at the hearing. You may be, but need not be, represented by an attorney. You may present any relevant evidence at the hearing and you will be given a full opportunity to cross-examine all witnesses testifying against you.

D. The City shall cause a copy of the notice of hearing to be provided to each appellant either by causing a copy of the notice to be delivered to each appellant personally or by causing a copy of the notice to be delivered by certified mail, postage prepaid, return receipt requested, and addressed to each appellant at the address shown on the appeal.

E. At the hearing, the hearing officer shall hear any evidence offered either in support of, or against, appellant’s claim, provided such evidence is relevant to the issues of the hearing. The hearing officer has the authority to determine the relevance of any evidence to the hearing and shall not be limited by the technical rules of evidence. The hearing officer also has the authority to exclude unduly repetitious and cumulative evidence, regardless of its relevancy.

F. Each party appearing at the hearing shall have the following rights:

1. To call and examine witnesses;
Item Number: 13.

2. To introduce documentary and physical evidence;

3. To cross-examine opposing witnesses;

4. To impeach any witness regardless of which party first called the witness to testify;

5. To rebut evidence; and

6. To be represented by anyone who is lawfully permitted to do so.

G. The hearing officer shall issue a written decision within 30 days following the conclusion of the hearing. The hearing officer shall cause a copy of the decision and compliance order to be served to each appellant either by causing a copy of the decision to be delivered to each appellant personally or by causing a copy to be delivered by first class mail, postage prepaid, and addressed to each appellant at the address shown on the appeal. The decision of the hearing officer shall be final.

H. Any appeal of the hearing officer’s decision shall be conducted pursuant to the California Code of Civil Procedure.

Section 3. SEVERABILITY
That, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 4. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this ordinance are hereby repealed.

Section 5. AMENDING OF BAIL SCHEDULE
That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 6. EFFECTIVE DATE
That this ordinance shall be effective thirty days after the second reading of the ordinance.

Section 7. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.

Item Number: 13.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2025 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Scott Matas, Mayor
ATTEST:
________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
________________________________
Jennifer Mizhrahi, City Attorney
Item Number: 13.

SR-25-189
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: September 2, 2025
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Resolution of Intention to Create a Special Tax Area Zone for Amazon Property (APN 666-370-039) located east of Calle De Los Romos and north of 20th Avenue, to the Desert Hot Springs Special Public Safety Tax Area RECOMMENDATION:

Adopt a Resolution of Intention which establishes the time and place of the Public Hearing to establish Zone 56 within the Special Public Safety Tax Area for Police and Fire Protection Services and authorizing an election.

DISCUSSION:

It is of critical importance to the City Council of the City of Desert Hot Springs that residents of the City receive high quality police and fire protection services. In carefully reviewing the City’s budget and revenue projections with the Police and Fire Departments it has become clear to City staff that the City budget does not contain adequate funding to ensure the continued delivery of adequate highquality public safety services unless additional revenues are obtained.

This Resolution of Intention establishes the time and place of the Public Hearing to establish Zone 56, within the Public Safety Tax Area, for police and fire protection services and authorizing the levy of a tax on improved parcels of real property on the secured property tax roll of Riverside County that are within Zone 56 of the Desert Hot Springs Special Public Safety Tax Area (the “Zone”). The voters of Zone 56 recognize the importance of adequate public safety services to the entire Desert Hot Springs community and approve this tax to ensure that those services will be maintained and improved citywide.

The revenues raised by this tax are to be used solely for the purposes of obtaining, furnishing, operating, and maintaining police and fire protection equipment or apparatus, for paying the salaries and benefits of police and fire protection personnel, and for such other police and fire protection service expenses as are deemed necessary for the benefit of the residents of Zone 56. Exhibit B of the Resolution is a copy of the petition requesting the creation of Zone 56.

FISCAL IMPACT:

The applicant has paid a deposit of $5,000, which covers the costs of establishing the zone. The property owner is responsible for all costs and payment of associated levy amounts applied to the annual tax roll for police and fire maintenance services.

Item Number: 14.

SR-25-189
STRATEGIC ALIGNMENT:

This initiative supports the following goals of the City's Strategic Plan:

Goal 11: Financial and Operations
Continue to provide fiscally sound operations via the ongoing evaluation of city processes and operational needs to maximize efficiency, streamline processes and eliminate bureaucracy, when possible, to deliver outstanding customer service and professionalism in all interactions with residents and the public.

ATTACHMENTS:
1) PTAX2 Zone 56 Boundary
2) Resolution Creating Zone 56
3) Petitions to Council
4) Council Properties Map PTAX2 Zone 56
5) PTAX2 All Zones
Item Number: 14.

SHEET 1 OF 1 SHEET
666-370-039
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THIS BOUNDARY MAP CORRECTLY SHOWS THE
BOUNDARIES OF ZONE 55 (RANCHO DESCANO).

FORDETAILSCONCERNINGTHELINESANDDIMENSIONSOF
LOTS OR PARCELS REFER TO THE COUNTY ASSESSOR’S
MAPSFORFISCALY EAR2025-2026.

BOUNDARY MAP
S1/2 OF SEC 14, T.3S, R.4E

SPECIAL PUBLIC SAFETY TAX AREA
ZONE 56 (AMAZON)

CITY OF DESERT HOT SPRINGS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

VICINITY MAP

NOT TO SCALE

PARCELIDENTIFICATIONNUMBER
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PARCEL LINES
M:\GIS-Assessmen t\DHS\PTAX2_Z56_Bo u n dary.mx d
Item Number: 14.

Resolution No. 2025-______
Date Adopted: September 2, 2025

RESOLUTION NO. 2025-_________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS CREATING SPECIAL TAX AREA ZONE 56 WITHIN

THE DESERT HOT SPRINGS SPECIAL PUBLIC SAFETY TAX AREA
FOR ASSESSOR’S PARCEL NUMBER 666-370-039
WHEREAS, it is the intention of the City Council of the City of Desert Hot Springs (the “City Council”) to create Zone 56 within the City of Desert Hot Springs Special Public Safety Tax Area and authorize an election; and
WHEREAS, it is the intention of the City Council to adopt an ordinance establishing a special tax for police and fire protection services within Zone 56; and WHEREAS, the City of Desert Hot Springs recognizes the need for increased police and fire protection services (hereinafter “public safety services”) in Zone 56 and the difficulty of funding the current or increased level of services with revenues now available; and WHEREAS, the City Council has received a written instrument from the landowners within Zone 56 to initiate and conduct proceedings for the creation of Zone 56 within the City of Desert Hot Springs Special Public Safety Tax Area and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, it is the intention of the City Council to direct the City Clerk to conduct the election required by Government Code Section 53978 to be conducted by mail ballot pursuant to Elections Code Section 4000 and to be held on the earliest date permitted by law; and WHEREAS, Assessor’s Parcel Number 666-370-039, a single industrial parcel. The initial annual tax will be $6,843.84 per parcel annually, per the Desert Hot Springs Special Public Safety Tax – Tax Rate Table (approved by the City Council on March 1, 2005 Resolution No. 2005-07 and amended by Resolution No. 2005-49 approved on July 6, 2005, adjusted for inflation as provided for in Section 3(B) of Exhibit C); and WHEREAS, this Resolution is adopted pursuant to Government Code section 53978; and WHEREAS, under Government Code section 53978 and for the purposes of this Resolution, a “voter” entitled to vote on the creation of Zone 56 is a person who owns real property within Zone 56, as shown on the last equalized assessment role prepared by the Riverside County Assessor’s Office, at the time that the City Council submits an ordinance authorizing the imposition of a public safety tax to the voters of Zone 56. At the time that the City Council adopted this Resolution, there were 0 registered voters residing within Zone 56 and a single property owner. Because the Special Public Safety Tax will be imposed on property in Zone 56 and paid by the owner of the property, the City Council finds that restricting the vote on the Special Public Safety Tax to the property owner in Zone 56 is appropriate and consistent with the principles and requirements of California Constitution article XIIIC (Proposition 218).

NOW THEREFORE, be it resolved as follows:

Section 1. That portion of the City of Desert Hot Springs described in Exhibit A is established as Zone 56 of the Desert Hot Springs Special Public Safety Tax Area.

Section 2. That Ordinance No. 2025-_____, is to be presented for approval of the voters of Zone 56 by a mail ballot election, to be held on October 7, 2025, after which and assuming approval of the voters of Zone 56, will be presented for approval by the City Council on the same date as the election. The ballot proposition shall read as follows:

Item Number: 14.

Resolution No. 2025-______
Date Adopted: September 2, 2025

“Shall Ordinance No. 2025-_____ be approved so as to authorize a special tax on property located in Zone 56 of the Desert Hot Springs Special Public Safety Tax Area to maintain the present level of police and fire protection services and provide additional funding for increased police and fire protection services?”
Section 3. The City Clerk is directed to take all steps necessary to conduct the election required by this order. Said election shall be conducted by mailed ballot pursuant to Elections Code Section 4000 and shall be held on a date other than the same date as a statewide direct primary election on statewide general election as specified above.

Dated: September 2, 2025
[SIGNATURES FOLLOW ON THE NEXT PAGE]
Item Number: 14.

Resolution No. 2025-______
Date Adopted: September 2, 2025

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this second day of September 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

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

Jennifer Mizrahi, City Attorney
Item Number: 14.

EXHIBIT A

DESERT HOT SPRINGS PUBLIC SAFETY TAX AREA
ZONE 56 (AMAZON)

ZONE DESCRIPTION
The City of Desert Hot Springs Special Public Safety Tax Area District (the “District”) boundary is coterminous with that of the City of Desert Hot Springs’ (the “City”) incorporated territory. Each zone within the District is a portion of that area and is described below by Riverside County Assessor’s Parcel Numbers (APNs) included within the zone.
(Note: the APNs are current as of the Final Tax Assessment Roll for FY 2025-2026) APN Acreage
666-370-039 94.91
Item Number: 14.

EXHIBIT B

PETITION AND CONSENT FORM TO CREATE
ZONE 56 (AMAZON)
Item Number: 14.

EXHIBIT C
City of Desert Hot Springs
Public Safety Tax Area
Zone 56 Establishment
Assessor's Parcel No. Lot Size Acres Description Total Charge* 666-370-039 94.91 IND $6,843.84
1 94.91 $6,843.84
*Charge based on Fiscal Year 2025-26 rates and will be escalated by lessor of CPI or 3.00% commencing Fiscal Year 2026-27 Item Number: 14.

Item Number: 14.

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Item Number: 14.

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CouncilMemberProperties
Source:CountyofRiversideGIS,2025.

PTAX2Zone56
AMAZON
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Properties_PTAX2_Zone56.mxd; Map revised April 4, 2025. 06,00012,000Feet

CITYOFDESERTHOTSPRINGS
LEGEND
ZONE56(Northof20thAve.&WestofLittleMorongoRd.)
CityBoundary
CouncilMember'sProperty
500FootBuffer
JP-JanPye
DV-DirkVoss
DP-DanielPitts
GG-GaryGardner
SM-ScottMatas
Item Number: 14.

P
TAX2ZONEMAP
Source:RiversideCo.GIS,2023.

Zone
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Zone56
1 8
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ATLANTIC AVE
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CACTUS DR

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34 Zone
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20 Zone
27 Zone
22 Zone
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19 Zone
21 Zone
26 Zone
33 Zone
30 Zone
29 Zone
14 Zone
24 Zone
36 Zone
37 Zone
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48 Zone
49 Zone
54 LEGEND
PTAX2Zones(Existing)
1-13,PriortoWebbAdministration
14,HaciendaHills
15,PiersonPlaza
16,VistaPalms/HaciendaVentures
17,Watermarke
19,DHSPropertiesInvestment
20,MERJLLC
21,LaPlazaCenter
22,BunchPalmsTrail
23,WillaimA.Conner
24,SniderInvestments
26,TacoBell
27,TimGuderian
28,DHSFacilities
29,DHSMannaLLC
30,DesertGrowLLC
31,OxfordProperties
32,CoachillinHoldingsLLC
33,MarapharmDHSCaliforniaLLC
34,TheWatermarkeatDHSLLC
35,BlackstarIndustrialPropertiesLLC
36,SniderInvestments
37,HotDesertSpringsLLC
38,GreenBondLLC
40,QuickQuackDevelopmentLLC
41,LenwoodHospitality41LLC
42,LenwoodHospitality42LLC
43,MiraliZarrabi
45,WatermarkeHomesLLC
46,MSA8,LLC
48,AguaDulce73LLC
49,DHSInvestmentHoldingsLLC
51,DollarGeneral
53,BurgerKing
54,SniderInvestmentsLLC
55,RanchoDescanso
PTAX2Zones(Proposed)
56,Amazon
M:\GIS-Assessment\DHS\PTAX2_all_11x17_Z56.mxd; Map revised 17 Jun 2025 04,0008,000Fe
et

CITYOFDESERTHOTSPRINGS
Zone
46 Zone
40 Zone
42 Zone
41Zo
ne
38 Zone
45 Zone
53 Zone
51 Item Number: 14.

SR-25-190
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: September 2, 2025
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Resolution of Intention to Create a Special Tax Area Zone for TKC Desert Hot Springs, LLC Property (APN 660-160-029) located west of Palm Drive and north of Paul Road, to the Desert Hot Springs Special Public Safety Tax Area RECOMMENDATION:

Adopt a Resolution of Intention which establishes the time and place of the Public Hearing to establish Zone 57 within the Special Public Safety Tax Area for Police and Fire Protection Services and authorizing an election.

DISCUSSION:

It is of critical importance to the City Council of the City of Desert Hot Springs that residents of the City receive high quality police and fire protection services. In carefully reviewing the City’s budget and revenue projections with the Police and Fire Departments it has become clear to City staff that the City budget does not contain adequate funding to ensure the continued delivery of adequate highquality public safety services unless additional revenues are obtained.

This Resolution of Intention establishes the time and place of the Public Hearing to establish Zone 57, within the Public Safety Tax Area, for police and fire protection services and authorizing the levy of a tax on improved parcels of real property on the secured property tax roll of Riverside County that are within Zone 57 of the Desert Hot Springs Special Public Safety Tax Area (the “Zone”). The voters of Zone 57 recognize the importance of adequate public safety services to the entire Desert Hot Springs community and approve this tax to ensure that those services will be maintained and improved citywide.

The revenues raised by this tax are to be used solely for the purposes of obtaining, furnishing, operating, and maintaining police and fire protection equipment or apparatus, for paying the salaries and benefits of police and fire protection personnel, and for such other police and fire protection service expenses as are deemed necessary for the benefit of the residents of Zone 57. Exhibit B of the Resolution is a copy of the petition requesting the creation of Zone 57.

FISCAL IMPACT:

The applicant has paid a deposit of $5,000, which covers the costs of establishing the zone. The property owner is responsible for all costs and payment of associated levy amounts applied to the annual tax roll for police and fire maintenance services.

Item Number: 15.

SR-25-190
STRATEGIC ALIGNMENT:

This initiative supports the following goals of the City's Strategic Plan:

Goal 11: Financial and Operations
Continue to provide fiscally sound operations via the ongoing evaluation of city processes and operational needs to maximize efficiency, streamline processes and eliminate bureaucracy, when possible, to deliver outstanding customer service and professionalism in all interactions with residents and the public.

ATTACHMENTS:
1) PTAX2 Zone 57 Boundary
2) Resolution Creating Zone 57
3) Petitions to Council
4) Council Properties Map PTAX2 Zone 57
5) PTAX2 All Zones
Item Number: 15.

SHEET 1 OF 1 SHEET
660-160-029
10 10
10 PA
L
M
D
R
I-10

PAUL RD
I-10 WBON

PAUL RD
I-10

THIS BOUNDARY MAP CORRECTLY SHOWS THE
BOUNDARIES OF ZONE 55 (RANCHO DESCANO).

FORDETAILSCONCERNINGTHELINESANDDIMENSIONSOF
LOTS OR PARCELS REFER TO THE COUNTY ASSESSOR’S
MAPSFORFISCALYEAR2025-2026.

BOUNDARY MAP
S1/2 of the NW1/4 OF SEC 30, T.3S, R 5E.

SPECIAL PUBLIC SAFETY TAX AREA
ZONE 57 (TKC DESERT HOT SPRINGS LLC)

CITY OF DESERT HOT SPRINGS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

VICINITY MAP

NOT TO SCALE

PARCELIDENTIFICATIONNUMBER
AV
E
NID
A
D
E
S
C
A
N
S
O

PROJECT
19TH AVE
PA
L
M
D
R

PAUL RD
LIT
T
L
E
M
O
R
O
N
G
O
R
D

DILLON RD
18TH AVE
20TH AVE
10 0 300 600
Feet
LEGEND
Zone 57

PARCEL LINES
M:\GIS-Assessm en t\DHS\PTAX 2_Z57_Bou n dary.m xd
Item Number: 15.

Resolution No. 2025-______
Date Adopted: September 2, 2025

RESOLUTION NO. 2025-_________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS CREATING SPECIAL TAX AREA ZONE 57 WITHIN

THE DESERT HOT SPRINGS SPECIAL PUBLIC SAFETY TAX AREA
FOR ASSESSOR’S PARCEL NUMBER 660-160-029
WHEREAS, it is the intention of the City Council of the City of Desert Hot Springs (the “City Council”) to create Zone 57 within the City of Desert Hot Springs Special Public Safety Tax Area and authorize an election; and
WHEREAS, it is the intention of the City Council to adopt an ordinance establishing a special tax for police and fire protection services within Zone 57; and WHEREAS, the City of Desert Hot Springs recognizes the need for increased police and fire protection services (hereinafter “public safety services”) in Zone 57 and the difficulty of funding the current or increased level of services with revenues now available; and WHEREAS, the City Council has received a written instrument from the landowners within Zone 57 to initiate and conduct proceedings for the creation of Zone 57 within the City of Desert Hot Springs Special Public Safety Tax Area and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, it is the intention of the City Council to direct the City Clerk to conduct the election required by Government Code Section 53978 to be conducted by mail ballot pursuant to Elections Code Section 4000 and to be held on the earliest date permitted by law; and WHEREAS, Assessor’s Parcel Number 660-160-029, a single commercial parcel. The initial annual tax will be $1,352.24 per parcel annually, per the Desert Hot Springs Special Public Safety Tax – Tax Rate Table (approved by the City Council on March 1, 2005 Resolution No. 2005-07 and amended by Resolution No. 2005-49 approved on July 6, 2005, adjusted for inflation as provided for in Section 3(B) of Exhibit C); and
WHEREAS, this Resolution is adopted pursuant to Government Code section 53978; and WHEREAS, under Government Code section 53978 and for the purposes of this Resolution, a “voter” entitled to vote on the creation of Zone 57 is a person who owns real property within Zone 57, as shown on the last equalized assessment role prepared by the Riverside County Assessor’s Office, at the time that the City Council submits an ordinance authorizing the imposition of a public safety tax to the voters of Zone 57. At the time that the City Council adopted this Resolution, there were 0 registered voters residing within Zone 57 and a single property owner. Because the Special Public Safety Tax will be imposed on property in Zone 57 and paid by the owner of the property, the City Council finds that restricting the vote on the Special Public Safety Tax to the property owner in Zone 57 is appropriate and consistent with the principles and requirements of California Constitution article XIIIC (Proposition 218).

NOW THEREFORE, be it resolved as follows:

Section 1. That portion of the City of Desert Hot Springs described in Exhibit A is established as Zone 57 of the Desert Hot Springs Special Public Safety Tax Area.

Section 2. That Ordinance No. 2025-_____, is to be presented for approval of the voters of Zone 57 by a mail ballot election, to be held on October 7, 2025, after which and assuming approval of the voters of Zone 57, will be presented for approval by the City Council on the same date as the election. The ballot proposition shall read as follows:

Item Number: 15.

Resolution No. 2025-______
Date Adopted: September 2, 2025

“Shall Ordinance No. 2025-_____ be approved so as to authorize a special tax on property located in Zone 57 of the Desert Hot Springs Special Public Safety Tax Area to maintain the present level of police and fire protection services and provide additional funding for increased police and fire protection services?”
Section 3. The City Clerk is directed to take all steps necessary to conduct the election required by this order. Said election shall be conducted by mailed ballot pursuant to Elections Code Section 4000 and shall be held on a date other than the same date as a statewide direct primary election on statewide general election as specified above.

Dated: September 2, 2025
[SIGNATURES FOLLOW ON THE NEXT PAGE]
Item Number: 15.

Resolution No. 2025-______
Date Adopted: September 2, 2025

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this second day of September 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

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

Jennifer Mizrahi, City Attorney
Item Number: 15.

EXHIBIT A

DESERT HOT SPRINGS PUBLIC SAFETY TAX AREA
ZONE 57 (TKC DESERT HOT SPRINGS, LLC)

ZONE DESCRIPTION
The City of Desert Hot Springs Special Public Safety Tax Area District (the “District”) boundary is coterminous with that of the City of Desert Hot Springs’ (the “City”) incorporated territory. Each zone within the District is a portion of that area and is described below by Riverside County Assessor’s Parcel Numbers (APNs) included within the zone.
(Note: the APNs are current as of the Final Tax Assessment Roll for FY 2025-2026) APN Acreage
660-160-029 3.90
Item Number: 15.

EXHIBIT B

PETITION AND CONSENT FORM TO CREATE
ZONE 57 (TKC DESERT HOT SPRINGS, LLC)
Item Number: 15.

EXHIBIT C
City of Desert Hot Springs
Public Safety Tax Area
Zone 57 Establishment
Assessor's Parcel No. Lot Size Acres Description Total Charge* 660-160-029 3.90 COM $1,352.24
1 3.90 $1,352.24
*Charge based on Fiscal Year 2025-26 rates and will be escalated by lessor of CPI or 3.00% commencing Fiscal Year 2026-27 Item Number: 15.

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Item Number: 15.

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Item Number: 15.

P
TAX2Zone57
CouncilMemberProperties
Source:CountyofRiversideGIS,2025.

PTAX2Zone57

TKCDESERTHOTSPRINGSLLC
2 0
T
H
AV
E

PALM DR
I 10
VARNE
R
RD

MIHALYO RD

PALM DR

VERBENA DR
1 5
T
H
AV
E
1 4
T
H
AV
E
(
T
W
O
B
U
N
C
H
P
A
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S
T
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)

MONUMENTST
PA
U
L
R
D
D
I
L
L
O
N
R
D

CABOT RD
I 10

LITTLE MORONGO RD

MESQUITE AVE
H
A
C
I
E
N
D
A
A
V
E
1STST

PIERSONBLVD

SANTA CRUZ RD
M
I
S
S
I
O
N
L
A
K
E
S
B
L
V
D

N INDIAN CANYON DR

VALENCIA DR
8THST
4THST

ACOMAAVE

MOUNTAIN VIEW RD
I
R
O
N
W
O
O
D
D
R
1 8
T
H
AV
E
M:\GIS-Assessment\DHS\Council
_
Properties_PTAX2_Zone57.mxd; Map revised April 4, 2025. 06,00012,000Feet

CITYOFDESERTHOTSPRINGS
LEGEND
Zone57(NorthofPaulRd.&WestofPalmDr.)
CityBoundary
CouncilMember'sProperty
500FootBuffer
JP-JanPye
DV-DirkVoss
DP-DanielPitts
GG-GaryGardner
SM-ScottMatas
Item Number: 15.

P
TAX2ZONEMAP
Source:RiversideCo.GIS,2025
Zone
55 Proposed
Zone56
Proposed
Zone57
1 8
TH
A
VE
15THAVE

ATLANTIC AVE
1 4
TH
A
VE
12THST

CACTUS DR

HACIENDAAVE

INDIAN CANYON DR
1 6
TH
A
VEMI
S
S
I
O
N
L
A
K
E
S
B
L
VD

PALM DR

LITTLE MORONGO RD

CHOLLA DR
8THST

VERBENA DR

L TI TLE MORONGO RD

PALM DR

DILLONRD
P
IE
R
S
O
N
B
L
VD
2 0
TH
A

VEVARNER
RD

KAREN AVE
111
62 10
Zone
1-13
Zone
31 Zone
32Zo
ne
35 Zone
15 Zone
16 Zone
34 Zone
17 Zone
28 Zone
20 Zone
27 Zone
22 Zone
23 Zone
19 Zone
21 Zone
26 Zone
33 Zone
30 Zone
29 Zone
14 Zone
24 Zone
36 Zone
37 Zone
1-13
Zone
1-13
Zone
1-13
Zone
1-13Z
one
1-13
Zone
43 Zone
48 Zone
49 Zone
54 LEGEND
PTAX2Zones(Existing)
1-13,PriortoWebbAdministration
14,HaciendaHills
15,PiersonPlaza
16,VistaPalms/HaciendaVentures
17,Watermarke
19,DHSPropertiesInvestment
20,MERJLLC
21,LaPlazaCenter
22,BunchPalmsTrail
23,WillaimA.Conner
24,SniderInvestments
26,TacoBell
27,TimGuderian
28,DHSFacilities
29,DHSMannaLLC
30,DesertGrowLLC
31,OxfordProperties
32,CoachillinHoldingsLLC
33,MarapharmDHSCaliforniaLLC
34,TheWatermarkeatDHSLLC
35,BlackstarIndustrialPropertiesLLC
36,SniderInvestments
37,HotDesertSpringsLLC
38,GreenBondLLC
40,QuickQuackDevelopmentLLC
41,LenwoodHospitality41LLC
42,LenwoodHospitality42LLC
43,MiraliZarrabi
45,WatermarkeHomesLLC
46,MSA8,LLC
48,AguaDulce73LLC
49,DHSInvestmentHoldingsLLC
51,DollarGeneral
53,BurgerKing
54,SniderInvestmentsLLC
55,RanchoDescanso
PTAX2Zones(Proposed)
56,Amazon
57,TKCDesertHotSpringsLLC
M:\GIS-Assessment\DHS\PTAX2_all_11x17_Z57.mxd; Map revised 17 Jun 2025 04,0008,000Fe
et

CITYOFDESERTHOTSPRINGS
Zone
46 Zone
40 Zone
42 Zone
41Zo
ne
38 Zone
45 Zone
53 Zone
51 Item Number: 15.