Agenda — Desert Hot Springs City Council, May 5, 2026 (part 2 of 3)

DHS 2026 RATE ADJUSTMENT APPLICATION
Desert Valley Disposal, Inc.

LIST OF ATTACHMENTS
Attachment # Description
1 2026 Rate Schedule
2 2026 30-Day Customer Notice
3 2026 Rate Adjustment Workpapers
4 Facility Price Lists
5 2026 CPI Information
6 2025 Rate Schedule & Notice
Item Number: 8.

Page 160 of 307 ends

2026 RATE ADJUSTMENT APPLICATION
Desert Hot Springs
Desert Valley Disposal, Inc.

ATTACHMENT 1
Rate Schedule E4ective July 1, 2026
(Also submitted as Excel Worksheets
for verification purposes)
Item Number: 8.

Page 161 of 307 ends

City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2026

Page 1 of 5 ends

Current Rate
7/1/25
New Rate
7/1/26
Current Rate
7/1/25
New Rate
7/1/26
Cart services (an organic service is also required)
Residential dwelling service: (1,2,3,4,6,7) 2-cart service (refuse & recycling, 95-gallon each) (9) $ 60.51 62.56 $ 3-cart bundle 45.26 $ 46.79 $ Bin services (an organic service is also required) (9,10) Extra carts: Refuse bin service: (11)
Each add'l cart (refuse) 21.77 $ 22.50 $ 2-CY refuse bin service:

Each add'l cart (recycling) 21.77 $ 22.50 $ 1st weekly pickup $ 237.42 245.44 $ Each add'l cart (organic waste) 21.77 $ 22.50 $ Each add'l weekly pickup 194.56 $ 201.14 $ One-time extra pick-up of any cart 29.13 $ 30.11 $ One-time pickup, 1st bin 93.45 $ 96.61 $ Billing fee (4) 15.73 $ 16.26 $ One-time pickup, each add'l bin 47.98 $ 49.60 $ Multi-family dwelling service (3-cart bundle): (6,7) 3-CY refuse bin service:

First dwelling unit on account 45.23 $ 46.75 $ First weekly pickup 319.69 $ 330.50 $ Each add'l dwelling unit on same account 45.02 $ 46.54 $ Each add'l weekly pickup 269.04 $ 278.13 $ Extra carts: One-time pickup, 1st bin 104.68 $ 108.22 $ Each extra refuse cart 21.77 $ 22.50 $ One-time pickup, each add'l bin 57.18 $ 59.11 $ Each extra recycling cart 21.77 $ 22.50 $ 4-CY refuse bin service:

Each extra organic cart 21.77 $ 22.50 $ First weekly pickup 386.82 $ 399.89 $ Contaminated cart fees: (4,8) Each add'l weekly pickup 331.50 $ 342.70 $ Disposal of recycling cart contents (per event) 29.13 $ 30.11 $ One-time pickup, 1st bin 132.77 $ 137.26 $ Disposal of organic cart contents (per event) 29.13 $ 30.11 $ One-time pickup, each add'l bin 70.93 $ 73.33 $ Removal of noncompliant cart (per event) 29.13 $ 30.11 $ Redelivery of removed cart (per event) 29.13 $ 30.11 $ Recycling bin service:
3-CY recycle bin: (11)
First weekly pickup (per account) FREE FREE
Second bin weekly pickup 290.05 $ 299.85 $
Each add'l weekly pickup 245.10 $ 253.38 $
One-time pickup, 1st bin 86.76 $ 89.69 $
One-time pickup, each add'l bin 86.76 $ 89.69 $
Service Service
Rates are monthly unless otherwise noted. Footnotes appear at end of schedule. COMMERCIAL SERVICES (3,7,9)

RESIDENTIAL SERVICES
Desert Valley Disposal, Inc. Item Number: 8. Page 162 of 307 City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2026

Page 2 of 5 ends

Current Rate
7/1/25
New Rate
7/1/26
Current Rate
7/1/25
New Rate
7/1/26
Organic waste cart & bin services: (9,12) Food waste service, continued Green waste: 2-CY bin:
35-gallon cart: Each bin 339.53 $ 351.01 $
Each cart 29.17 $ 30.16 $ One-time pickup, 1st bin 86.76 $ 89.69 $ One-time pickup, 1st cart 28.92 $ 29.90 $ One-time pickup, each add'l bin with 1st 78.42 $ 81.07 $ One-time pickup, each add'l cart with 1st 6.73 $ 6.96 $ Mixed organic waste:
65-gallon cart: 35-gallon cart:

Each cart 37.53 $ 38.80 $ Each cart 37.04 $ 38.29 $
One-time pickup, 1st cart 28.92 $ 29.90 $ One-time pickup, 1st cart 28.92 $ 29.90 $ One-time pickup, each add'l cart with 1st 8.67 $ 8.96 $ One-time pickup, each add'l cart with 1st 8.54 $ 8.83 $ 95-gallon cart: 65-gallon cart:

Each cart 45.87 $ 47.42 $ Each cart 52.12 $ 53.88 $
One-time pickup, 1st cart 28.92 $ 29.90 $ One-time pickup, 1st cart 28.92 $ 29.90 $ One-time pickup, each add'l cart with 1st 10.60 $ 10.96 $ One-time pickup, each add'l cart with 1st 12.04 $ 12.45 $ 2-CY bin: 95-gallon cart:

Each bin 261.31 $ 270.14 $ Each cart 67.21 $ 69.48 $
One-time pickup, 1st bin 86.76 $ 89.69 $ One-time pickup, 1st cart 28.92 $ 29.90 $ One-time pickup, each add'l bin with 1st 60.34 $ 62.38 $ One-time pickup, each add'l cart with 1st 15.53 $ 16.05 $ 3-CY bin; 2-CY bin:

Each bin 353.26 $ 365.20 $ Each bin 306.68 $ 317.05 $
One-time pickup, 1st bin 86.76 $ 89.69 $ One-time pickup, 1st bin 86.76 $ 89.69 $ One-time pickup, each add'l bin with 1st 81.59 $ 84.35 $ One-time pickup, each add'l bin with 1st 70.83 $ 73.22 $ Food waste: 3-CY bin:
35-gallon cart: Each bin 421.31 $ 435.55 $
Each cart 44.36 $ 45.86 $ One-time pickup, 1st bin 97.31 $ 100.60 $ One-time pickup, 1st cart 28.92 $ 29.90 $ One-time pickup, each add'l bin with 1st 97.31 $ 100.60 $ One-time pickup, each add'l cart with 1st 6.73 $ 6.96 $ 65-gallon cart: Cannabis waste documentation fee: (13)
Each cart 65.73 $ 67.95 $ Will call collections 47.82 $ 49.44 $ One-time pickup, 1st cart 28.92 $ 29.90 $ Monthly charge for each weekly collection 207.22 $ 214.22 $ One-time pickup, each add'l cart with 1st 15.18 $ 15.69 $ Service Service
COMMERCIAL SERVICES, continued COMMERCIAL SERVICES, continued Desert Valley Disposal, Inc. Item Number: 8. Page 163 of 307 City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2026

Page 3 of 5 ends

Current Rate
7/1/25
New Rate
7/1/26
Current Rate
7/1/25
New Rate
7/1/26
Contaminated cart fees: (8) Tonnage-based charges:

Each recycle or organic cart disposed (per event) 28.92 $ 29.90 $ Disposed tons:

Removal of non-compliant cart (per event) 28.92 $ 29.90 $ Minimum charges (per load):

Redelivery of removed cart (per event) $ 28.92 29.90 $ 10-CY, 8-tons 941.50 $ 972.00 $ Contaminated bin fees: (8) 20-CY, 3-tons 282.45 $ 291.60 $ Each recycle or organic bin disposed (per event) $ 96.38 99.64 $ 30-CY, 4-tons 376.61 $ 388.81 $ Removal of non-compliant bin (per event) $ 111.46 115.23 $ 40-CY, 5-tons 470.75 $ 486.00 $ Return of removed bin (per event) $ 92.92 96.06 $ Charge per ton in excess of minimum charge 94.15 $ 97.20 $ Diverted tons: (14)
Enforcement Inspections (per hour; on City order) 159.85 $ 165.25 $ (a) Facility tip fee Actual T.F. Actual T.F.

Misc. Commercial Services: - $ (b) SB 1383 1.89% of actual 1.89% of actual Return trips for inaccessible bins 92.92 $ 96.06 $ (c) Admin fee 15% of actual 15% of actual Bin relocation: - $ (d) Diversion reporting (per ton) 15.48 $ 15.98 $ First bin (per request) 92.92 $ 96.06 $ (e) City Fee (per ton) 12.09 $ 12.48 $ Each add'l bin (per request) 37.02 $ 38.27 $ Miscellaneous debris box charges:

Roll-out charges (per month for each wkly p/u) 131.43 $ 135.87 $ Return trip, relocate, exchange box (15) 89.89 $ 92.80 $ Locking bin charges: - $ Offloading > 10-tons (per 15-min, 1 hr min) 186.69 $ 192.74 $ One-time set up charge per bin 150.12 $ 155.19 $ Clean & wash box:

Monthly charge per bin 150.12 $ 155.19 $ 1st box (per request) 150.88 $ 155.77 $ Contractor lock (1-time charge) 43.65 $ 45.13 $ Each add'l box (per request) 64.70 $ 66.80 $ Clean & wash bins by request: - $ Stationary Compactor Services (pull charges + tonnage-based fees per load) First bin (per request) 150.12 $ 155.19 $ Pull charges for pickup & return (per load):

Each add'l bin (per request) 64.35 $ 66.53 $ Loads to EHTS for disposal & diversion 574.64 $ 593.26 $ Special equip or handling (per mo for each wkly p/u) 92.88 $ 96.02 $ Tonnage-based fees (per ton):

Domestic animal waste (charged for each 3-CY bin pickup) 330.10 $ 341.26 $ Disposed tons 94.15 $ 97.20 $ Add for hard-to-handle waste (per ton) 22.21 $ 22.93 $
Diverted tons: (14)
Debris Box Services (pull charges + tonnage-based fees per load) (a) Facility tip fee Actual Actual Pull charges: (b) SB 1383 1.89% of actual 1.89% of actual Loads to EHTS for disposal & diversion 574.64 $ 593.26 $ (c) Admin fee 15% of actual 15% of actual Loads to other facilities 672.30 $ 694.08 $ (d) Diversion reporting (per ton) 15.48 $ 15.98 $ Rental charges (per day after 7-days no activity) 82.08 $ 84.74 $ (e) City Fee (per ton) 12.09 $ 12.48 $ Service Service
COMMERCIAL SERVICES, continued ROLL-OFF SERVICES, continued

ROLL-OFF SERVICES
Desert Valley Disposal, Inc. Item Number: 8. Page 164 of 307 City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2026

Page 4 of 5 ends

Current Rate
7/1/25
New Rate
7/1/26
Current Rate
7/1/25
New Rate
7/1/26
Miscellaneous stationary compactor charges: Miscellaneous charges, continued Return trip, relocate, or turn around (15) 89.89 $ 92.80 $ Miscellaneous Refuse & debris (hourly):

Offloading > 10-tons (per 15-min, 1 hr min) 186.69 $ 192.74 $ First 15-minutes 40.73 $ 42.11 $ Clean & wash box: - $ Each add'l 15 minute increment 11.86 $ 12.26 $ 1st box (per request) 150.88 $ 155.77 $ Cleanup Services (including disaster debris):

Each add'l box (per request) 64.70 $ 66.80 $ Labor (per hour):

Monthly maintenance service 122.49 $ 126.46 $ Debris abatement crew (with vehicle) 118.83 $ 122.85 $ Specialized equipment or handling (per load) 157.87 $ 162.98 $ Field supervisor 59.46 $ 61.47 $ Driver, roll-off truck 54.81 $ 56.66 $
Special Bin Services Driver, front & rear loader collection vehicle 48.86 $ 50.51 $ Disposal services: Driver, bin delivery truck 48.86 $ 50.51 $ Temporary residential clean-up bin: Laborer 31.54 $ 32.61 $ 4-day rental 164.01 $ 169.54 $ Equipment (per hour):

Extra pick-up 109.44 $ 113.13 $ Roll-off truck 84.22 $ 87.07 $ Construction bin: Debris box 82.08 $ 84.85 $
7-day rental 190.10 $ 196.53 $ Rear loading collection vehicle 84.22 $ 87.07 $ Extra pick-up 109.44 $ 113.14 $ Commercial front loader collection vehicle 86.44 $ 89.36 $ Monthly service 444.98 $ 460.02 $ 3-CY construction bin 26.89 $ 27.80 $ Extra pick-up 122.59 $ 126.73 $ Bin delivery truck 19.66 $ 20.32 $ Special Bin Services, continued Pick-up truck 17.05 $ 17.63 $ Diversion services: Rented equipment Actual + 10% Actual + 10% Preferred Hauler Program (3-CY bin): Disposal or diversion tip fee Actual + 10% Actual + 10% 7-day rental 219.61 $ 227.03 $ Materials & contracted services Actual + 10% Actual + 10% Extra pick-up 219.61 $ 227.03 $ Remove litter from enclosure (per hour) 128.57 $ 132.92 $ Monthly service 878.46 $ 908.15 $ Enclosure cleaning:

Extra weekly pick-up 878.46 $ 908.15 $ Basic service (remove debris & sweep; per sq.ft.) 3.57 $ 3.69 $ Special Haul/Bulky Item Services Power wash (after basic service; per sq.ft.) 7.31 $ 7.56 $ Residential: Administrative Charges (applicable to all accounts):
2 Items per month (combo, appliance or other) FREE FREE Charge for returned check/electronic payment 25.00 $ 25.00 $ Each add'l appliance 51.06 $ 52.78 $ Past due charge 1 1/2% 1 1/2% Each add'l other bulky item 25.51 $ 26.37 $ Delinquent account charge (of amt delinquent) 10% 10% Commercial (including MFD using bins): City admin cost to process tax liens (16) Pro rata share Pro rata share Each appliance 93.81 $ 96.98 $ City admin cost to process tax levies (17) Pro rata share Pro rata share Each other bulky item 37.50 $ 38.77 $
Service Service
ROLL-OFF SERVICES, continued MISCELLANEOUS SERVICE, continued

MISCELLANEOUS SERVICES
Desert Valley Disposal, Inc. Item Number: 8. Page 165 of 307 City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2026

Page 5 of 5 ends

(15) Return trip to service inaccessible box/compactor or relocate at customer's request.

FOOTNOTES FOOTNOTES, continued
(1) 3-cart bundle is the default residential service and includes one 95-gallon cart each for sourceseparated refuse, recycling & organic waste provided by Contractor; food waste in organic cart must be separately bagged. Dwellings not billed via the County property tax bill will be billed directly by Contractor, quarterly in advance.
(10) Bins cleaned or exchanged once annually at no charge upon request. (11) For each 2-, 3- or 4-CY bin subscription, regardless of the number of weekly pick-ups, customer receives one 3CY recycle bin collected once weekly. Additional recycle bins or weekly recycling bin pickups available for additional fees. Customer may substitute a 2CY bin, however no price difference for substitutions.
(2) Single family rate applies to dwellings in mobile home parks that are direct billed individually by Contractor. Examples: (a) One 3CY recycle bin provided for subscription of one 2CY refuse bin collected 1xWeek; (b) One 3CY recycle bin provided for subscription of one 3CY bin collected 6xWeek; (c) Two 3CY recycle bins provided for subscription of two 4CY refuse bins collected 2xWeek. (3) Containers (carts & bins) must be no more than level full with lids closed. C&D waste and animal waste prohibited, except for animal waste for household pets. (4) Detached single family service billed on County property tax bill. Any services direct billed by Contractor are subject to a billing fee for each quarterly billing. (12) Source-separated green waste, food waste or mixed organic waste free of non-compliant waste; requirements strictly enforced.
(5) Reserved for future use. (13) The disposal of cannabis waste is regulated by the State of California. State regulations allow collection of cannabis waste with other green waste if processed at a permitted green waste facility.

The cannabis waste documentation fee covers the hauler's record keeping cost. Documentation fee applies to each collection visit regardless of the number of containers collected at the visit. (6) Service category applies to dwelling units: (a) with common walls such as duplexes, triplexes, condominiums, townhomes, apartments, hotel & motel units; also applies to mobile home park dwellings; (b) serviced individually, and (c) receiving one bill for all units on account. Also applies to mobile home park dwellings receiving individual pick-up and a master bill to a single account. All other units billed as Single Family dwellings. (14) For tons delivered to a solid waste facility for diversion. Fee per ton is the sum total of listed fees (a) thru (e).
(b) Required for Non-food establishments: (a) green waste service, OR (b) mixed organic waste service as applicable.
(c) Required for Multi-family complexes: mixed organic waste service ONLY (or with separate green waste and food waste containers by special arrangement with Contractor). (d) Required for Cannabis establishments: green waste service for cannabis waste AND other organic service as applicable.
(7) Service billed monthly in arrears; deposit and/or advance payment may be required of delinquent accounts. (16) City's administrative charge to collect delinquent waste charges on the County tax bill; allocated among the accounts eligible to be collected in this manner as a lien against the property. (8) After written notice to customer posted on cart. (9) Organic waste recycling required for all commercial services. Organic wastes (green waste, food waste & mixed organic waste) are to be source-separated and free of contamination; mixed organic waste containers may include bagged food waste. Available organic waste services for specific generators:
(17) City's administrative cost to levy an assessment for solid waste fees on eligible properties; allocated equally among eligible single family properties placed on County property tax bill. (a) Required for Food establishments: (a) Food waste service, AND (b) green waste service, if applicable.

Desert Valley Disposal, Inc. Item Number: 8. Page 166 of 307 2026 RATE ADJUSTMENT APPLICATION
Desert Hot Springs
Desert Valley Disposal, Inc.

ATTACHMENT 2
2026
30-Day Customer Notice
Item Number: 8.

Page 167 of 307 ends

Desert Valley Disposal, Inc.

Roll-Off:

Jale la caja de cargadesechos
Jalón cargacompactador (por
jalón)
Tarifa de tonelaje (a)
$574.64
Tasa de
mercado
$593.26
Tasa de
mercado
(a) Más 1,89%; tarifa SB1383; tarifa administrativa
del 15 %; Tarifa de informe de desvío/tonelada:
$ 15.48 ('25), $ 15.98 ('26); Cuota de
ciudad/tonelada: $12.09 ('25), $12.48 ('26).

Preguntas
Si tiene preguntas sobre este aviso o sobre
cómo se verán afectadas sus tarifas, visite
www.desertvalleydisposal.com/about/news.htm.

Este sitio web tiene más información. También
puede llamar al (760) 329-5030 o enviar un correo
electrónico a [email protected].

May 26, 2026

RATE ADJUSTMENT NOTICE
NOTICE IS HEREBY GIVEN that new rates for Solid
Waste Services will go into effect July 1, 2026.

Desert Valley Disposal, Inc. (“DVD”) provides
Solid Waste Services within the City pursuant to
an exclusive franchise agreement. DVD bills
customers directly for services or, in the case of
residential service, as an assessment placed on
the County Property Tax Bill. Solid waste rates
were evaluated in 2022 to maintain an adequate
rate structure to fund the costs of providing Solid
Waste Services and a formula for adjusting rates
in the future was adopted.

The rate structure has three customer
classes: (i) residential, (ii) commercial, and iii) rolloff. The rates are determined based on (i) size of container (in gallons for carts and in cubic yards
for bins and roll-off boxes); (ii) type of container
(e.g., solid waste, recycling, or organic waste); and
(iii) frequency of pickups per week. The rate
structure is comprised of service fees and material
tipping fees.

Annual Formula Adjustment
The maximum rates are adjusted annually to
account for inflation and increases in solid waste
tip fees charged by the facilities receiving solid
waste. Beginning July 1, 2023, and each July 1
thereafter, through and including July 1, 2026, the
material component and the service component
of the service rates are adjusted based on the
inflationary/fee changes below multiplied by the
component’s assigned percentage weighting as
specified in the franchise agreement:  Change to Material Tip Fee Component.

The change in tip fees charged by the solid
waste facilities that receive waste (“Tipping
Fees”).

Desert valley Disposal, Inc.P.O. Box 2720 Palm Springs, CA 92263 Item Number: 8.

Page 168 of 307 ends

 Change to Service Component. The change
in the Consumer Price Index (“CPI”)
specified in the Franchise Agreement.

Adjustments Effective July 1, 2026
For July 1, 2026, the above weighted formula
produces the following rate adjustments:

Residential service, +3.37%; Commercial service,
+3.38%; and Roll-Off service, +3.24%.

Rates for Common Services
For a complete schedule, scan the code or visit
www.desertvalleydisposal.com/about/news.htm.

Service Current Rate New Rate
Residential:

Single family
Multi-family
$45.26
$45.23
$46.79
$46.75
Commercial:

Trash 3-CY bin, 1xWk
Recycling bin, 1xWk
Food waste, 35-gal,
1xWk
$319.69
Free
$44.36
$330.50
Free
$45.86
Roll-Off:

Pull charge-debris
box & compactor
(per pull)
Tonnage fee (a)
$574.64
Market rate
$593.26
Market rate
(a) Plus: SB1383 fee 1.89%; Admin fee 15%; Diversion
report fee/ton: $15.48 (’25) & $15.98 (’26); City
Fee/ton: $12.09 (’25), & $12.48 (’26).

Questions
If you have questions regarding this notice or
how your rates will be affected, please go to
www.desertvalleydisposal.com/about/news.htm.

This website has more information. You can also call
(760) 329-5030 or email
[email protected].
26 de mayo de 2026

AVISO DE AJUSTE DE TARIFAS
POR LA PRESENTE SE NOTIFICA que las nuevas
tarifas para los Servicios de Residuos Sólidos
entrarán en vigencia el 1 de julio de 2026.

Desert Valley Disposal, Inc. ("DVD") proporciona
servicios de desechos sólidos dentro de la Ciudad de
conformidad con un acuerdo de franquicia exclusiva.

DVD factura directamente a los clientes por los
servicios. Las tasas de residuos sólidos se evaluaron
en septiembre de 2022 para mantener una
estructura de tarifas adecuada para financiar los
costos de prestación de servicios de residuos sólidos
y se adoptó una fórmula para ajustar las tasas en el
futuro.

La estructura tarifaria tiene tres clases de
clientes: (i) residencial, (ii) comercial y iii) roll-off. Las tarifas se determinan sobre la base de (i) el tamaño
del contenedor (en galones para carros y en yardas
cúbicas para contenedores y cajas rodantes); (ii) tipo
de contenedor (por ejemplo, desechos sólidos,
reciclaje o desechos orgánicos); y (iii) frecuencia de
recogidas por semana. La estructura de tarifas se
compone de tarifas de servicio y tarifas de propina
de materiales.

Ajuste de fórmula anual
Las tarifas máximas se ajustan anualmente para
tener en cuenta la inflación y los aumentos en las
tarifas de desechos sólidos que cobran las
instalaciones que reciben desechos sólidos. A partir
del 1 de julio de 2023 y cada 1 de julio en adelante,
hasta el 1 de julio de 2026 inclusive, el componente
de disposición y el componente de servicio de las
tarifas de servicio se ajustan en función de los
cambios inflacionarios/de tarifas a continuación
multiplicados por la ponderación porcentual
asignada del componente como se especifica en el
contrato de franquicia:
• Cambiar a Componente de tarifa de propina de
material. El cambio en las tarifas de vertido
cobradas por las instalaciones de residuos sólidos
que reciben residuos ("Tarifa de vertido").
• Cambio a Componente de Servicio. El cambio en
el Índice de Precios al Consumidor ("IPC")
especificado en el Contrato de Franquicia.

Ajustes a partir del 1 de julio de 2026
Para el 1 de julio de 2026, la fórmula ponderada
anterior produce los siguientes ajustes tarifarios:

Servicio residencial, +3.37%; Servicio comercial,
+3.38%; y servicio Roll-Off, +3.24%.

Tarifas de Servicios Comunes
Para un horario completo, escanee el código o visite
www.desertvalleydisposal.com/about/news.htm.
del servicio Tarifa actual Nueva tarifa
Residencial:

Tarifa básica en la
acera
Añadido walk-in
$45.26
$45.23
$46.79
$46.75
Comercial:

Papelera 3-CY,
1xSemana
Contenedor de
reciclaje, 1xSemana
Desperdicio de
alimentos, 35
galones, 1xSemana
$319.69
Gratis
$44.36
$330.50
Gratis
$45.86
Item Number: 8.

Page 169 of 307 ends

DHS 2026 RATE ADJUSTMENT APPLICATION
Desert Valley Disposal, Inc.

ATTACHMENT 3
2026 Rate Adjustment Workpapers
Number Description
Workpaper 1 Revenue Component Weighting
Workpaper 2 FY’24 Residential (Cart) Solid Waste Tonnage Workpaper 3 FY’25 Residential (Cart) Solid Waste Tonnage Workpaper 4 FY’24 Commercial (Bin) Solid Waste Tonnage
Workpaper 5 FY’25 Commercial (Bin) Solid Waste Tonnage
Workpaper 6 FY’24 & FY’25 Material Tip Fees
Workpaper 7 Change in Residential Material Cost Index
Workpaper 8 Change in Commercial Material Cost Index
Workpaper 9 Change in Consumer Price Index
Workpaper 10 2026 Weighted Rate Adjustments
Item Number: 8.

Page 170 of 307 ends

Desert Hot Springs
2026 Rate Adjustment Application
Workpapers Page 1 of 10
Desert Valley Disposal, Inc. 26-0213(bk)
Sector / Revenue Component
FY'25 Revenue
by Rate
Component
% Relative
Weight
Residential:

Service component 4,094,801 78.43%
Material cost component 1,125,871 21.57%
Total 5,220,672 100.00%
Commercial:

Service component 2,489,621 82.37%
Material cost component 532,929 17.63%
Total 3,022,550 100.00%
Workpaper 1
Revenue Component Weighting
Source: From DVD most recent (FY'25) Year End Accounting Workpaper 'DHS R-1' & Financial Statement Schedule A.

Workpaper 1 computes the relative weights for the Service and Material Components for Residential and Commercial sectors. These weights are used in Workpaper 10 to factor the changes in the indexes proportionate to their relative weights. Note, Roll-Off material tip fee costs are billed to the customer at the time service is rendered and therefore not a part of this report or computation.

Item Number: 8.

Page 171 of 307 ends

Desert Hot Springs
2026 Rate Adjustment Application
Workpapers

Page 2 of 10 ends

26-0213(bk)
Refuse Tons Green Waste
Tons
Mixed
Recycling Tons
Organic Waste
Tons
(EHTS) (EHTS) (EHTS) (CVC/EHTS)
Oct. '23 876.05 21.02 130.17 196.51 1,223.75
Nov. 885.09 10.46 139.60 188.58 1,223.73
Dec. 885.06 5.06 149.06 158.24 1,197.42
Jan. '24 960.64 - 158.90 175.13 1,294.67
Feb. 826.92 11.19 139.83 158.11 1,136.05
Mar. 857.60 - 135.44 213.17 1,206.21
Apr. 933.10 - 139.45 222.71 1,295.26
May 888.93 10.35 137.27 208.22 1,244.77
Jun. 857.75 - 128.72 189.34 1,175.81
Jul. 990.66 - 136.62 138.14 1,265.42
Aug. 841.29 - 130.45 188.10 1,159.84
Sep. 807.73 - 123.87 202.32 1,133.92
Total 10,610.82 58.08 1,649.38 2,238.57 14,556.85
Sources:

Workpapers 2 & 3 report the solid waste tonnage by type for the Residential sector for Contractor's previous ficsal year (FY'24) and most recent fiscal year (FY'25). ~ Disposed tons from DVD FY'24 Disposed Tonnage Report and supported by load tickets. ~ Green waste, mixed recycling & organic waste tonnage from DVD FY'24 Diverted Tonnage Report and supported by load tickets.

Workpaper 2
FY'24 Residential (Cart) Solid Waste Tonnage
Month Total Tons
Item Number: 8.

Page 172 of 307 ends

Desert Hot Springs
2026 Rate Adjustment Application
Workpapers

Page 3 of 10 ends

26-0213(bk)
Refuse Tons Green Waste
Tons
Mixed
Recycling Tons
Organic Waste
Tons
(EHTS) (EHTS) (EHTS) (CVC/EHTS)
Oct. '24 872.57 - 127.43 218.20 1,218.20
Nov. 863.42 - 142.46 199.87 1,205.75
Dec. 934.62 - 156.26 179.07 1,269.95
Jan. '25 946.08 - 149.75 169.17 1,265.00
Feb. 801.82 - 125.84 157.74 1,085.40
Mar. 852.52 - 130.74 167.81 1,151.07
Apr. 959.42 - 139.50 212.25 1,311.17
May 892.88 - 153.50 208.32 1,254.70
Jun. 840.87 - 133.65 193.02 1,167.54
Jul. 958.59 - 141.98 205.82 1,306.39
Aug. 865.10 - 125.32 172.01 1,162.43
Sep. 909.78 - 142.33 212.24 1,264.35
Total 10,697.67 - 1,668.76 2,295.52 14,661.95
Sources:

FY'25 Residential (Cart) Solid Waste Tonnage
Month Total Tons
~ Disposed tons from DVD FY'24 Disposed Tonnage Report and supported by load tickets. ~ Green waste, mixed recycling & organic waste tonnage from DVD FY'24 Diverted Tonnage Report and supported by load tickets.

Workpaper 3
Item Number: 8.

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Desert Hot Springs
2026 Rate Adjustment Application
Workpapers

Page 4 of 10 ends

26-0213(bk)
Refuse Tons Green Waste
Tons
Mixed
Recycling Tons
Organic Waste
Tons
(EHTS) (EHTS) (EHTS) (CVC/EHTS)
Oct. '23 501.89 - 29.90 24.10 555.89
Nov. 489.45 - 29.62 22.95 542.02
Dec. 463.92 - 33.45 29.99 527.36
Jan. '24 520.30 - 34.40 22.54 577.24
Feb. 494.66 - 31.36 19.76 545.78
Mar. 488.51 - 27.41 22.45 538.37
Apr. 480.80 - 28.87 17.38 527.05
May 499.58 - 32.29 23.45 555.32
Jun. 425.26 - 24.28 22.40 471.94
Jul. 440.98 - 27.58 17.28 485.84
Aug. 469.62 - 25.31 32.63 527.56
Sep. 447.43 - 25.49 18.32 491.24
Total 5,722.40 - 349.96 273.25 6,345.61
Sources:
~ Disposed tons from DVD FY'22 Disposed Tonnage Report and supported by load tickets. ~ Green waste, mixed recycling & organic waste tonnage from DVD FY'22 Diverted Tonnage Report and supported by load tickets.

Workpaper 4
FY'24 Commercial (Bin) Solid Waste
Month Total Tons
Workpapers 4 & 5 report the solid waste tonnage by type for the Commercial sector for Contractor's previous fiscal year (FY'24) and most recent fiscal year (FY'25).

Item Number: 8.

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Desert Hot Springs
2026 Rate Adjustment Application
Workpapers

Page 5 of 10 ends

26-0213(bk)
Refuse Tons Green Waste
Tons
Mixed
Recycling Tons
Organic Waste
Tons
(EHTS) (EHTS) (EHTS) (CVC/EHTS)
Oct. '24 525.29 - 30.88 18.46 574.63
Nov. 490.23 - 25.33 31.56 547.12
Dec. 500.65 - 22.18 20.38 543.21
Jan. '25 494.18 - 26.98 30.32 551.48
Feb. 481.50 - 26.73 22.20 530.43
Mar. 516.62 - 29.32 27.69 573.63
Apr. 493.02 - 33.57 17.66 544.25
May 500.50 - 26.29 38.60 565.39
Jun. 449.84 - 24.99 19.81 494.64
Jul. 467.75 - 26.05 23.95 517.75
Aug. 461.91 - 25.31 32.04 519.26
Sep. 513.42 - 28.27 22.17 563.86
Total 5,894.91 - 325.90 304.84 6,525.65
Sources:
~ Disposed tons from DVDS FY'25 Disposed Tonnage Report and supported by load tickets. ~ Green waste, mixed recycling & organic waste tonnage from DVD FY'25 Diverted Tonnage Report and supported by load tickets.

Workpaper 5
FY'25 Commercial (Bin) Solid Waste
Month Total Tons
Item Number: 8.

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Desert Hot Springs
2026 Rate Adjustment Application
Workpapers

Page 6 of 10 ends

26-0213(bk)
Material Facility Tip Fees as of
9/30/24
Tip Fees as of
9/30/25
Refuse EHTS 64.48 $ 67.53 $
Green waste EHTS 70.76 $ 73.77 $
Mixed recycle EHTS 95.00 $ 95.00 $
Organics CVC/EHTS 96.24 $ 100.34 $
Sources:

Workpaper 6 reports the Tip Fees in effect September 30th of Contractor's previous fiscal year (FY'24) and most recent fiscal year (FY'25).

From Burrtec Price Sheets effectve 7/1/24 & 7/1/25
(ATTACHMENT 4).

Workpaper 6
FY'24 & FY'25 Material Tip Fees
Item Number: 8.

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Desert Hot Springs
2026 Rate Adjustment Application
Workpapers Page 7 of 10
Desert Valley Disposal, Inc. 26-0213(bk)
Tonnage (1) Tip Fee (2) Total Material
Cost (3) Tonnage (4) Tip Fee (5) Total Material Cost (3) Disposed Waste (EHTS) 10,610.82 64.48 $ 684,186 10,697.67 67.33 $ 720,274 Recycling (EHTS) 1,649.38 95.00 $ 156,691 1,668.76 95.00 $ 158,532 Green waste (EHTS) 58.08 70.76 $ 4,110 - 73.77 $ -
Organic waste (CVC) 2,238.57 96.24 $ 215,440 2,295.52 100.34 $ 230,332 Total 14,556.85 1,060,426 14,661.95 1,109,139
Material Cost Index (6) 72.85 $ 75.65 $
% Change in Index (7) 3.84%
Workpaper 7 Notes:
(1) FY'24 tonnage from Workpaper 2.
(2) FY'24 tip fees from Workpaper 6.
(3) Computed as Tonnage MULTIPLIED BY Tip Fee.
(4) FY'25 tonnage from Workpaper 3.
(5) FY'25 tip fees from Workpaper 6.
(6) Material Cost Index (average tip fee computed as Total Material Cost DIVIDED BY Total Tons). (7) Change in Material Cost Index computed as ((75.65 - 72.85) / 72.85). Carries to Workpaper 10.

Worksheets 7 & 8 compute the changes in the Material Cost Index for the Residential & Commercial sectors respectively using tonnage & tip fees for Contractor's previous fiscal year (FY'24) and prior fiscal year (FY'25). The change in this index is used to adjust the Material Cost Component of the rates. (This approach results in a one year lag in adjusting for changes in material tip fee costs. Tip fees for Roll-Off services are billed to customers at the time services are rendered plus add-on fees and are not subject to this methodology.)
FY'24 (10/1/23 - 9/30/24) FY'25 (10/1/24 - 9/30/25)
Change in Residential Material Cost Index
Workpaper 7
Waste Description
Item Number: 8.

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Desert Hot Springs
2026 Rate Adjustment Application
Workpapers Page 8 of 10
Desert Valley Disposal, Inc. 26-0213(bk)
Tonnage (1) Tip Fee (2) Total Material
Cost (3) Tonnage (4) Tip Fee (5) Total Material Cost (3) Disposed Waste (EHTS) 5,722.40 64.48 $ 368,980 5,894.91 67.33 $ 396,904 Recycling (EHTS) 349.96 95.00 $ 33,246 325.90 95.00 $ 30,961 Green waste (EHTS) - 65.28 $ - - 73.77 $ -
Organic waste (CVC) 273.25 96.24 $ 26,298 304.84 100.34 $ 30,588 Total 6,345.61 428,524 6,525.65 458,452
Material Cost Index (6) 67.53 $ 70.25 $
% Change in Index (7) 4.03%
Workpaper 8 Notes:
(1) FY'23 tonnage from Workpaper 2.
(2) FY'23 tip fees from Workpaper 6.
(3) Computed as Tonnage MULTIPLIED BY Tip Fee.
(4) FY'24 tonnage from Workpaper 3.
(5) FY'24 tip fees from Workpaper 6.
(6) Material Cost Index (average tip fee computed as Total Material Cost DIVIDED BY Total Tons). (7) Change in Material Cost Index computed as ((67.53 - 61.51) / 61.51). Carries to Workpaper 10.

Waste Description
FY'24 (10/1/23 - 9/30/24) FY'25 (10/1/24 - 9/30/25)
Workpaper 8
Change in Commercial Material Cost Index
Item Number: 8.

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Desert Hot Springs
2026 Rate Adjustment Application
Workpapers Page 9 of 10
Desert Valley Disposal, Inc. 26-0213(bk)
Month / Year CPI-U % Change
January 2025 135.215
January 2025 139.602
Change 4.387 3.24%
Workpaper 9 computes the change in the Consumer Price Index which is then used to adjust the Service Component of the rates in Workpaper 10.

Workpaper 9
Change in Consumer Price Index
Source:
https://data.bls.gov/pdq/SurveyOutputServlet?data_tool
=dropmap&series_id=CUURS49CSA0,CUUSS49CSA0
(CPI-U, Riverside Area)
Item Number: 8.

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Desert Hot Springs
2026 Rate Adjustment Application
Workpapers Page 10 of 10
26-0213(bk)

3.84% (1) 0.2157 (3) 3.24% (5) 0.7843 (3)

0.83% (4) 2.54% (6) 3.37% (7)

4.03% (2) 0.1763 (3) 3.24% (5) 0.8237 (3)

0.71% (4) 2.67% (6) 3.38% (7)
n/a n/a 3.24% (5) 1.000 (3)
n/a 3.24% (6) 3.24% (7)
Workpaper 10 Notes:

Roll-Off & Misc.
(1) From Workpaper 7.
(2) From Workpaper 8.
(3) From Workpaper 1.
(4) Computed as Material Cost Index % Change MULTIPLIED BY Adjustment Factor. (5) Consumer Price Index % Change from Workpaper 9.
(6) Computed as Consumer Price Index % Change MULTIPLIED BY Adjustment Factor. (7) Computed as Material Component Weighted Adjustment PLUS CPI-U Weighted Adjustment.

Residential
Commercial
Adjustment
Factor
Weighted
Adjustment
Workpaper 10 applies the changes in the Material Cost Index and the Consumer Price Index proportionate to the Material Cost and Service components of the rates.

Sector
Workpaper 10
2025 Weighted Rate Adjustments
% Index Change Adjustment
Factor
Weighted
Adjustment
Material Component
Total Rate
Adjustment
Service Component
% Index Change
Item Number: 8.

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DHS 2026 RATE ADJUSTMENT APPLICATION
Desert Valley Disposal, Inc.

ATTACHMENT 4
Facility Price Lists
Burrtec (Edom Hill Transfer Station), e8ective July 1, 2024 Burrtec (Edom Hill Transfer Station), e8ective July 1, 2025 Item Number: 8.

Page 181 of 307 ends

Item Number: 8.

Page 182 of 307 ends

Item Number: 8.

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DHS 2026 RATE ADJUSTMENT APPLICATION
Desert Valley Disposal, Inc.

ATTACHMENT 5
CPI Data
Item Number: 8.

Page 184 of 307 ends

Special Notices 1/14/2026
Databases, Tables & Calculators by Subject
Change
Output
Options:

From: 2017 To:
2026
include graphs
include annual averages
Data extracted on: February 19, 2026 (8:18:50 AM)
Consumer Price Index for All Urban Consumers (CPI-U)
Series Id: CUURS49CSA0,CUUSS49CSA0
Not Seasonally Adjusted
Series Title: All items in Riverside-San Bernardino-Ontario, CA, all urban consumers, not seasonally adjusted Area: Riverside-San Bernardino-Ontario, CA
Item: All items
Base Period: DECEMBER 2017=100
Download:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2017 100.000
2018 100.916 101.897 102.929 103.139 103.241 103.616 102.732 102.023 103.441 2019 103.991 104.749 105.959 105.816 106.412 106.573 105.697 104.998 106.397 2020 107.143 107.162 106.899 107.640 108.201 108.626 107.672 107.068 108.275 2021 109.550 110.981 113.222 114.682 115.557 117.206 113.875 111.588 116.162 2022 118.963 122.127 123.893 125.262 125.272 125.983 123.784 122.018 125.551 2023 127.683 127.707 128.768 129.525 131.372 131.372 129.545 128.130 130.961 2024 131.358 133.144 133.943 133.113 133.179 132.853 132.932 132.817 133.046 2025 135.215 136.511 137.456 137.708 138.029 138.851 137.293 136.528 138.211 2026 139.602
U.S. BUREAU OF LABOR STATISTICS
U.S. BUREAU OF LABOR STATISTICS Office of Publications and Special Studies Suitland Federal Center Floor 7 4600 Silver Hill Road Washington, DC 20212-0002 Telephone: 202-691-5200 Telecommunications Relay Service: 7-1-1 www.bls.gov Contact Us Item Number: 8.

Page 185 of 307 ends

DHS 2026 RATE ADJUSTMENT APPLICATION
Desert Valley Disposal, Inc.

ATTACHMENT 6
Current Rate Schedule
E6ective July 1, 2025
&
2025
30-Day Customer Notice
(Provided for reference only)
Item Number: 8.

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City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2025

Page 1 of 5 ends

Current Rate
7/1/24
Proposed Rate
7/1/25
Current Rate
7/1/24
Proposed Rate
7/1/25
Cart services (an organic service is also required)
Residential dwelling service: (1,2,3,4,6,7) 2-cart service (refuse & recycling, 95-gallon each) (9) $ 58.22 60.51 $ 3-cart bundle 43.24 $ 45.26 $ Bin services (an organic service is also required) (9,10) Extra carts: Refuse bin service: (11)
Each add'l cart (refuse) 20.80 $ 21.77 $ 2-CY refuse bin service:

Each add'l cart (recycling) 20.80 $ 21.77 $ 1st weekly pickup $ 228.44 237.42 $ Each add'l cart (organic waste) 20.80 $ 21.77 $ Each add'l weekly pickup 187.20 $ 194.56 $ One-time extra pick-up of any cart 27.83 $ 29.13 $ One-time pickup, 1st bin 89.92 $ 93.45 $ Billing fee (4) 15.03 $ 15.73 $ One-time pickup, each add'l bin 46.17 $ 47.98 $ Multi-family dwelling service (3-cart bundle): (6,7) 3-CY refuse bin service:

First dwelling unit on account 43.21 $ 45.23 $ First weekly pickup 307.60 $ 319.69 $ Each add'l dwelling unit on same account 43.01 $ 45.02 $ Each add'l weekly pickup 258.87 $ 269.04 $ Extra carts: One-time pickup, 1st bin 100.72 $ 104.68 $ Each extra refuse cart 20.80 $ 21.77 $ One-time pickup, each add'l bin 55.02 $ 57.18 $ Each extra recycling cart 20.80 $ 21.77 $ 4-CY refuse bin service:

Each extra organic cart 20.80 $ 21.77 $ First weekly pickup 372.19 $ 386.82 $ Contaminated cart fees: (4,8) Each add'l weekly pickup 318.96 $ 331.50 $ Disposal of recycling cart contents (per event) 27.83 $ 29.13 $ One-time pickup, 1st bin 127.75 $ 132.77 $ Disposal of organic cart contents (per event) 27.83 $ 29.13 $ One-time pickup, each add'l bin 68.25 $ 70.93 $ Removal of noncompliant cart (per event) 27.83 $ 29.13 $ Redelivery of removed cart (per event) 27.83 $ 29.13 $ Recycling bin service:
3-CY recycle bin: (11)
First weekly pickup (per account) FREE FREE
Second bin weekly pickup 279.08 $ 290.05 $
Each add'l weekly pickup 235.83 $ 245.10 $
One-time pickup, 1st bin 83.48 $ 86.76 $
One-time pickup, each add'l bin 83.48 $ 86.76 $
Service Service
Rates are monthly unless otherwise noted. Footnotes appear at end of schedule. COMMERCIAL SERVICES (3,7,9)

RESIDENTIAL SERVICES
Desert Valley Disposal, Inc. Item Number: 8. Page 187 of 307 City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2025

Page 2 of 5 ends

Current Rate
7/1/24
Proposed Rate
7/1/25
Current Rate
7/1/24
Proposed Rate
7/1/25
Organic waste cart & bin services: (9,12) Food waste service, continued Green waste: 2-CY bin:
35-gallon cart: Each bin 326.69 $ 339.53 $
Each cart 28.07 $ 29.17 $ One-time pickup, 1st bin 83.48 $ 86.76 $ One-time pickup, 1st cart 27.83 $ 28.92 $ One-time pickup, each add'l bin with 1st 75.45 $ 78.42 $ One-time pickup, each add'l cart with 1st 6.48 $ 6.73 $ Mixed organic waste:
65-gallon cart: 35-gallon cart:

Each cart 36.11 $ 37.53 $ Each cart 35.64 $ 37.04 $
One-time pickup, 1st cart 27.83 $ 28.92 $ One-time pickup, 1st cart 27.83 $ 28.92 $ One-time pickup, each add'l cart with 1st 8.34 $ 8.67 $ One-time pickup, each add'l cart with 1st 8.22 $ 8.54 $ 95-gallon cart: 65-gallon cart:

Each cart 44.14 $ 45.87 $ Each cart 50.15 $ 52.12 $
One-time pickup, 1st cart 27.83 $ 28.92 $ One-time pickup, 1st cart 27.83 $ 28.92 $ One-time pickup, each add'l cart with 1st 10.20 $ 10.60 $ One-time pickup, each add'l cart with 1st 11.58 $ 12.04 $ 2-CY bin: 95-gallon cart:

Each bin 251.43 $ 261.31 $ Each cart 64.67 $ 67.21 $
One-time pickup, 1st bin 83.48 $ 86.76 $ One-time pickup, 1st cart 27.83 $ 28.92 $ One-time pickup, each add'l bin with 1st 58.06 $ 60.34 $ One-time pickup, each add'l cart with 1st 14.94 $ 15.53 $ 3-CY bin; 2-CY bin:

Each bin 339.90 $ 353.26 $ Each bin 295.08 $ 306.68 $
One-time pickup, 1st bin 83.48 $ 86.76 $ One-time pickup, 1st bin 83.48 $ 86.76 $ One-time pickup, each add'l bin with 1st 78.50 $ 81.59 $ One-time pickup, each add'l bin with 1st 68.15 $ 70.83 $ Food waste: 3-CY bin:
35-gallon cart: Each bin 405.38 $ 421.31 $
Each cart 42.68 $ 44.36 $ One-time pickup, 1st bin 93.63 $ 97.31 $ One-time pickup, 1st cart 27.83 $ 28.92 $ One-time pickup, each add'l bin with 1st 93.63 $ 97.31 $ One-time pickup, each add'l cart with 1st 6.48 $ 6.73 $ 65-gallon cart: Cannabis waste documentation fee: (13)
Each cart 63.24 $ 65.73 $ Will call collections 46.01 $ 47.82 $ One-time pickup, 1st cart 27.83 $ 28.92 $ Monthly charge for each weekly collection 199.38 $ 207.22 $ One-time pickup, each add'l cart with 1st 14.61 $ 15.18 $ Service Service
COMMERCIAL SERVICES, continued COMMERCIAL SERVICES, continued Desert Valley Disposal, Inc. Item Number: 8. Page 188 of 307 City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2025

Page 3 of 5 ends

Current Rate
7/1/24
Proposed Rate
7/1/25
Current Rate
7/1/24
Proposed Rate
7/1/25
Contaminated cart fees: (8) Tonnage-based charges:

Each recycle or organic cart disposed (per event) 27.83 $ 28.92 $ Disposed tons:

Removal of non-compliant cart (per event) 27.83 $ 28.92 $ Minimum charges (per load):

Redelivery of removed cart (per event) $ 27.83 28.92 $ 10-CY, 8-tons 914.61 $ 941.50 $ Contaminated bin fees: (8) 20-CY, 3-tons 274.38 $ 282.45 $ Each recycle or organic bin disposed (per event) $ 92.74 96.38 $ 30-CY, 4-tons 365.85 $ 376.61 $ Removal of non-compliant bin (per event) $ 107.25 111.46 $ 40-CY, 5-tons 457.31 $ 470.75 $ Return of removed bin (per event) $ 89.41 92.92 $ Charge per ton in excess of minimum charge 91.46 $ 94.15 $ Diverted tons: (14)
Enforcement Inspections (per hour; on City order) 153.81 $ 159.85 $ (a) Facility tip fee Actual T.F. Actual T.F.

Misc. Commercial Services: (b) SB 1383 1.89% of actual 1.89% of actual Return trips for inaccessible bins 89.41 $ 92.92 $ (c) Admin fee 15% of actual 15% of actual Bin relocation: (d) Diversion reporting (per ton) 15.04 $ 15.48 $ First bin (per request) 89.41 $ 92.92 $ (e) City Fee (per ton) 11.74 $ 12.09 $ Each add'l bin (per request) 35.62 $ 37.02 $ Miscellaneous debris box charges:

Roll-out charges (per month for each wkly p/u) 126.46 $ 131.43 $ Return trip, relocate, exchange box (15) 87.32 $ 89.89 $ Locking bin charges: Offloading > 10-tons (per 15-min, 1 hr min) 181.36 $ 186.69 $ One-time set up charge per bin 144.44 $ 150.12 $ Clean & wash box:

Monthly charge per bin 144.44 $ 150.12 $ 1st box (per request) 146.57 $ 150.88 $ Contractor lock (1-time charge) 42.00 $ 43.65 $ Each add'l box (per request) 62.85 $ 64.70 $ Clean & wash bins by request: Stationary Compactor Services (pull charges + tonnage-based fees per load) First bin (per request) 144.44 $ 150.12 $ Pull charges for pickup & return (per load):

Each add'l bin (per request) 61.92 $ 64.35 $ Loads to EHTS for disposal & diversion 558.23 $ 574.64 $ Special equip or handling (per mo for each wkly p/u) 89.37 $ 92.88 $ Tonnage-based fees (per ton):

Domestic animal waste (charged for each 3-CY bin pickup) 317.62 $ 330.10 $ Disposed tons 91.46 $ 94.15 $ Add for hard-to-handle waste (per ton) 21.58 $ 22.21 $
Diverted tons: (14)
Debris Box Services (pull charges + tonnage-based fees per load) (a) Facility tip fee Actual Actual Pull charges: (b) SB 1383 1.89% of actual 1.89% of actual Loads to EHTS for disposal & diversion 558.23 $ 574.64 $ (c) Admin fee 15% of actual 15% of actual Loads to other facilities 653.10 $ 672.30 $ (d) Diversion reporting (per ton) 15.04 $ 15.48 $ Rental charges (per day after 7-days no activity) 79.74 $ 82.08 $ (e) City Fee (per ton) 11.74 $ 12.09 $ COMMERCIAL SERVICES, continued ROLL-OFF SERVICES, continued

ROLL-OFF SERVICES
Service Service
Desert Valley Disposal, Inc. Item Number: 8. Page 189 of 307 City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2025

Page 4 of 5 ends

Current Rate
7/1/24
Proposed Rate
7/1/25
Current Rate
7/1/24
Proposed Rate
7/1/25
Miscellaneous stationary compactor charges: Miscellaneous charges, continued Return trip, relocate, or turn around (15) 87.32 $ 89.89 $ Miscellaneous Refuse & debris (hourly):

Offloading > 10-tons (per 15-min, 1 hr min) 181.36 $ 186.69 $ First 15-minutes 39.19 $ 40.73 $ Clean & wash box: Each add'l 15 minute increment 11.41 $ 11.86 $ 1st box (per request) 146.57 $ 150.88 $ Cleanup Services (including disaster debris):

Each add'l box (per request) 62.85 $ 64.70 $ Labor (per hour):

Monthly maintenance service 118.99 $ 122.49 $ Debris abatement crew (with vehicle) 115.44 $ 118.83 $ Specialized equipment or handling (per load) 153.36 $ 157.87 $ Field supervisor 57.76 $ 59.46 $ Driver, roll-off truck 53.24 $ 54.81 $
Special Bin Services Driver, front & rear loader collection vehicle 47.46 $ 48.86 $ Disposal services: Driver, bin delivery truck 47.46 $ 48.86 $ Temporary residential clean-up bin: Laborer 30.64 $ 31.54 $ 4-day rental 157.81 $ 164.01 $ Equipment (per hour):

Extra pick-up 105.30 $ 109.44 $ Roll-off truck 81.81 $ 84.22 $ Construction bin: Debris box 79.74 $ 82.08 $
7-day rental 182.91 $ 190.10 $ Rear loading collection vehicle 81.81 $ 84.22 $ Extra pick-up 105.30 $ 109.44 $ Commercial front loader collection vehicle 83.97 $ 86.44 $ Monthly service 428.15 $ 444.98 $ 3-CY construction bin 26.12 $ 26.89 $ Extra pick-up 117.95 $ 122.59 $ Bin delivery truck 19.10 $ 19.66 $ Special Bin Services, continued Pick-up truck 16.56 $ 17.05 $ Diversion services: Rented equipment Actual + 10% Actual + 10% Preferred Hauler Program (3-CY bin): Disposal or diversion tip fee Actual + 10% Actual + 10% 7-day rental 211.31 $ 219.61 $ Materials & contracted services Actual + 10% Actual + 10% Extra pick-up 211.31 $ 219.61 $ Remove litter from enclosure (per hour) 124.90 $ 128.57 $ Monthly service 845.24 $ 878.46 $ Enclosure cleaning:

Extra weekly pick-up 845.24 $ 878.46 $ Basic service (remove debris & sweep; per sq.ft.) 3.47 $ 3.57 $ Special Haul/Bulky Item Services Power wash (after basic service; per sq.ft.) 7.10 $ 7.31 $ Residential: Administrative Charges (applicable to all accounts):
2 Items per month (combo, appliance or other) FREE FREE Charge for returned check/electronic payment 25.00 $ 25.00 $ Each add'l appliance 48.78 $ 51.06 $ Past due charge 1 1/2% 1 1/2% Each add'l other bulky item 24.37 $ 25.51 $ Delinquent account charge (of amt delinquent) 10% 10% Commercial (including MFD using bins): City admin cost to process tax liens (16) Pro rata share Pro rata share Each appliance 90.26 $ 93.81 $ City admin cost to process tax levies (17) Pro rata share Pro rata share Each other bulky item 36.08 $ 37.50 $
Service Service
ROLL-OFF SERVICES, continued MISCELLANEOUS SERVICE, continued

MISCELLANEOUS SERVICES
Desert Valley Disposal, Inc. Item Number: 8. Page 190 of 307 City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2025

Page 5 of 5 ends

(15) Return trip to service inaccessible box/compactor or relocate at customer's request. (b) Required for Non-food establishments: (a) green waste service, OR (b) mixed organic waste service as applicable.
(c) Required for Multi-family complexes: mixed organic waste service ONLY (or with separate green waste and food waste containers by special arrangement with Contractor. (d) Required for Cannabis establishments: green waste service for cannabis waste AND other organic service as applicable.
(7) Service billed monthly in arrears; deposit and/or advance payment may be required of delinquent accounts. (16) City's administrative charge to collect delinquent waste charges on the County tax bill; allocated among the accounts eligible to be collected in this manner as a lien against the property. (8) After written notice to customer posted on cart. (9) Organic waste recycling required for all commercial services. Organic wastes (green waste, food waste & mixed organic waste) are to be source-separated and free of contamination; mixed organic waste containers may include bagged food waste. Available organic waste services for specific generators:
(17) City's administrative cost to levy an assessment for solid waste fees on eligible properties; allocated equally among eligible single family properties placed on County property tax bill. (a) Required for Food establishments: (a) Food waste service, AND (b) green waste service, if applicable.
(4) Detached single family service billed on County property tax bill. Any services direct billed by Contractor are subject to a billing fee for each quarterly billing. (12) Source-separated green waste, food waste or mixed organic waste free of non-compliant waste; requirements strictly enforced.
(5) Reserved for future use. (13) The disposal of cannabis waste is regulated by the State of California. State regulations allow collection of cannabis waste with other green waste if processed at a permitted green waste facility.

The cannabis waste documentation fee covers the hauler's record keeping cost. Documentation fee applies to each collection visit regardless of the number of containers collected at the visit. (6) Service category applies to dwelling units: (a) with common walls such as duplexes, triplexes, condominiums, townhomes, apartments, hotel & motel units; also applies to mobile home park dwellings; (b) serviced individually, and (c) receiving one bill for all units on account. Also applies to mobile home park dwellings receiving individual pick-up and a master bill to a single account. All other units billed as Single Family dwellings. (14) For tons delivered to a solid waste facility for diversion. Fee per ton is the sum total of listed fees (a) thru (e).
(1) 3-cart bundle is the default residential service and includes one 95-gallon cart each for sourceseparated refuse, recycling & organic waste provided by Contractor; food waste in organic cart must be separately bagged. Dwellings not billed via the County property tax bill will be billed directly by Contractor, quarterly in advance.
(10) Bins cleaned or exchanged once annually at no charge upon request. (11) For each 2-, 3- or 4-CY bin subscription, regardless of the number of weekly pick-ups, customer receives one 3CY recycle bin collected once weekly. Additional recycle bins or weekly recycling bin pickups available for additional fees. Customer may substitute a 2CY bin, however no price difference for substitutions.
(2) Single family rate applies to dwellings in mobile home parks that are direct billed individually by Contractor. Examples: (a) One 3CY recycle bin provided for subscription of one 2CY refuse bin collected 1xWeek; (b) One 3CY recycle bin provided for subscription of one 3CY bin collected 6xWeek; (c) Two 3CY recycle bins provided for subscription of two 4CY refuse bins collected 2xWeek. (3) Containers (carts & bins) must be no more than level full with lids closed. C&D waste and animal waste prohibited, except for animal waste for household pets.

FOOTNOTES FOOTNOTES, continued
Desert Valley Disposal, Inc. Item Number: 8. Page 191 of 307 Desert Valley Disposal, Inc.

Roll-Off:

Jale la caja de cargadesechos
Jalón cargacompactador (por
jalón)
Tarifa de tonelaje (a)
$558.23
Tasa de
mercado
$574.64
Tasa de
mercado
(a) Más 1,89%; tarifa SB1383; tarifa administrativa
del 15 %; Tarifa de informe de desvío/tonelada:
$ 14.62 ('23), $ 15.04 ('24); Cuota de
ciudad/tonelada: $11.41 ('23), $11.74 ('24).

Preguntas
Si tiene preguntas sobre este aviso o sobre
cómo se verán afectadas sus tarifas, visite
www.desertvalleydisposal.com/about/news.htm.

Este sitio web tiene más información. También
puede llamar al (760) 329-5030 o enviar un correo
electrónico a [email protected].

May 27, 2025

RATE ADJUSTMENT NOTICE
NOTICE IS HEREBY GIVEN that new rates for Solid
Waste Services will go into effect July 1, 2025.

The change in tip fees charged by the solid
waste facilities that receive waste (“Tipping
Fees”).

Desert valley Disposal, Inc.P.O. Box 2720 Palm Springs, CA 92263 Item Number: 8.

Page 192 of 307 ends

 Change to Service Component. The change
in the Consumer Price Index (“CPI”)
specified in the Franchise Agreement.

Adjustments Effective July 1, 2025
For July 1, 2025, the above weighted formula
produces the following rate adjustments:

Residential service, +4.67%; Commercial service,
+3.93%; and Roll-Off service, +2.94%.

Rates for Common Services
For a complete schedule, scan the code or visit
www.desertvalleydisposal.com/about/news.htm.

Service Current Rate New Rate
Residential:

Single family
Multi-family
$43.24
$43.21
$45.26
$45.23
Commercial:

Trash 3-CY bin, 1xWk
Recycling bin, 1xWk
Food waste, 35-gal,
1xWk
$307.60
Free
$42.68
$319.69
Free
$44.36
Roll-Off:

Pull charge-debris
box & compactor
(per pull)
Tonnage fee (a)
$558.23
Market rate
$574.64
Market rate
(a) Plus: SB1383 fee 1.89%; Admin fee 15%; Diversion
report fee/ton: $14.62 (’23) & $15.04 (’24); City
Fee/ton: $11.41 (’23), & $11.74 (’24).

Questions
If you have questions regarding this notice or
how your rates will be affected, please go to
www.desertvalleydisposal.com/about/news.htm.

This website has more information. You can also call
(760) 329-5030 or email
[email protected].
27 de mayo de 2025

AVISO DE AJUSTE DE TARIFAS
POR LA PRESENTE SE NOTIFICA que las nuevas
tarifas para los Servicios de Residuos Sólidos
entrarán en vigencia el 1 de julio de 2025.

Desert Valley Disposal, Inc. ("DVD") proporciona
servicios de desechos sólidos dentro de la Ciudad de
conformidad con un acuerdo de franquicia exclusiva.

Ajustes a partir del 1 de julio de 2025
Para el 1 de julio de 2025, la fórmula ponderada
anterior produce los siguientes ajustes tarifarios:

Servicio residencial, +4.67%; Servicio comercial,
+3.93%; y servicio Roll-Off, +2.94%.

Tarifas de Servicios Comunes
Para un horario completo, escanee el código o visite
www.desertvalleydisposal.com/about/news.htm.
del servicio Tarifa actual Nueva tarifa
Residencial:

Tarifa básica en la
acera
Añadido walk-in
$43.24
$43.21
$45.26
$45.23
Comercial:

Papelera 3-CY,
1xSemana
Contenedor de
reciclaje, 1xSemana
Desperdicio de
alimentos, 35
galones, 1xSemana
$307.60
Free
$42.68
$319.69
Free
$44.36
Item Number: 8.

Page 193 of 307 ends

4690 East Mesquite Avenue, P.O. Box 2720, Palm Springs, California 92262, 760-329-5030, desertvalleydisposal.com April 13, 2026
Ms. Doria Wilms
City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, California 92240
Delivered Electronically
Dear Ms. Wilms:

Re: 2026-27 SOLID WASTE TAX LEVY ANNUAL REPORT
This is the ‘2026-27 Solid Waste Tax Levy Annual Report’ for amounts levied on the County of Riverside property tax bill for single family residential dwellings in the City of Desert Hot Springs receiving individual weekly solid waste collection and not billed directly by Desert Valley Disposal, Inc. (“DVD”).

NOTE: the 2026-27 Solid Waste Tax Levy applies to regular solid waste collection services rendered to single family residential dwellings only and does not apply to multi-family dwellings.

1. INTRODUCTION
Each year the City places its fees for solid waste services on the County property tax roll. This is done so that the County, on behalf of the City, may collect these fees along with the collection of County property taxes. Before placing these fees as assessments on the County property tax roll, a public hearing before the City council is required to confirm the assessments on a parcel-by-parcel basis.

This Annual Report is prepared pursuant to Sections 5470, et seq. of the California Health and Safety Code (2023) and Sections 41900 et seq. of the California Public Resources Code (2023) for the annual levy and collection of assessments against developed parcels within the City of Desert Hot Springs for solid waste management Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

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Desert Valley Disposal, Inc. April 13, 2026
services for the period commencing July 1, 2026, and ending June 30, 2027. The electronic listing accompanying this Annual Report, and by this reference made a part hereof, includes a description of each property, the amount of the levy for each property, and other applicable information.
(In order to account for possible last-minute additions or deletions, the referenced electronic listing (EXHIBIT 4) will be provided on the date of the public hearing.)

2. AUTHORITY
Desert Hot Springs Municipal Code Section 8.04.040 authorizes the collection of fees and charges for solid waste service on the County property tax bill.

Sections 5470 et seq. of the California Health and Safety Code authorize local agencies (cities, counties, sanitation districts) to establish, charge, and collect fees for sewer, sanitation, or water services. These charges can be collected on the tax roll, and delinquent fees can become liens against properties.

Sections 41900–41904 of the California Public Resources Code (PRC), part of the Integrated Waste Management Act, authorize cities and counties to impose fees on solid waste handling to fund the preparation, adoption, and implementation of waste management plans. The fees must be directly related to the cost of service.

3. SERVICE AREA
Municipal Code Section 8.04.040 requires owners and occupants of real property within the City of Desert Hot Springs to arrange and pay for solid waste collection services.

For purposes of this solid waste assessment, the Service Area consists of all parcels within the territorial limits of the City of Desert Hot Springs developed as single family residential premises and that are provided individual solid waste collection by the City’s authorized solid waste contractor from carts provided by said contractor and for which those premises are not billed directly for that service.

For the period July 1, 2026, through June 30, 2027, 8,160 parcels containing 8,160 single family dwellings are subject to the solid waste assessment.

Reference is hereby made to the County of Riverside Assessor’s Rolls for the location and detailed description of each parcel.

4. NECESSITY FOR CHARGES
Desert Hot Springs Municipal Code Section 8.04.040 requires every person who owns, and every person who occupies, any developed real property to arrange and Item Number: 8.

Page 195 of 307 ends

Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

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Desert Valley Disposal, Inc. April 13, 2026
pay for solid waste collection services. Pursuant to Municipal Code Section 8.04.400, the City Council has entered into an agreement with a contractor, Desert Valley Disposal, Inc., to provide these services that include the collection of refuse, recyclable materials, and organic waste. Said agreement further provides for the collection of fees and charges on the County property tax bill for solid waste services rendered to single-family residential parcels.

5. COST OF SERVICE ASSESSMENT
Weekly Solid Waste Services
Solid waste services include separate weekly collection of source-separated solid waste, non-organic recyclables, and organic waste from contractor-provided carts.

Rates and Charges
The initial solid waste service fees, and the formula used to annually adjust said fees, were approved by the City Council on June 7, 2022, in accordance with Section 6, Articles XIII C & D of the California Constitution (commonly known as “Proposition 218”) following a duly noticed majority protest hearing in which a majority protest was not received.

For Fiscal Year 2026-27, the rates for solid waste services are set forth in the Rate Schedule Effective July 1, 2026 (refer to EXHIBIT 1). The service charge for individual single-family residential properties is $46.79 per month.

Customers requiring additional carts or additional collection services may subscribe to those services for which they will be directly billed by the contractor at the rates established in the Rate Schedule.

City’s Administration Cost
The City incurs certain administration costs for placing the solid waste assessment on the County property tax bill and for collecting and disbursing funds. These administration costs are calculated periodically by the City and are included in the levy.

For Fiscal Year 2026-27, the administration cost is $8,533.71 (refer to EXHIBIT 2):
• $3,546.03 for the City’s costs; and,
• $4,987.68 for the contract services performed by Webb Municipal Finance LLC.

Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

Page 4 of 16 ends

Desert Valley Disposal, Inc. April 13, 2026

6. METHOD OF APPORTIONMENT
EXHIBIT 3 sets the Fiscal Year 2026-27 total levy as $4,590,210.51:
• $4,581,676.80 for weekly solid waste collection services, and • $8,533.71 for the City’s cost of administering the placement and collection of the levy.

The combined cost of solid waste services and administration costs are allocated equally among all parcels receiving said services. The 2026-27 total annual individual assessment per qualified single family residential dwelling is $562.53.

7. ELECTRONIC ACCOUNT LISTING
The electronic listing of single-family residential tax roll accounts within the Service Area is to be placed on the Fixed Charge Tax Roll, for fund number 68-1500. Any parcel identified on Riverside County Assessor’s “Kick-Off” list will be researched and resubmitted for inclusion as appropriate. The electronic listing will be provided as EXHIBIT 4.

8. CONSIDERATION BY THE CITY COUNCIL
This 2026-27 Solid Waste Levy Annual Report will be presented to the City Council for (1) Consideration of a Resolution of Intention, and (2) To set the time and place for a public hearing.

The City Clerk shall then cause the Notice of Public Hearing to be published and posted in advance of the public hearing as required by California Government Code Section 6066.

Atthe public hearing, the City Council will accept public testimony, make its findings, and, if desired, order placement of the solid waste assessment on the Riverside County Property Tax Bill for collection.

9. DELIVERY OF ASSESSMENT LISTING
Following the public hearing, DVD will provide the finalized Electronic Listing to the City’s agent who shall deliver it to the County Assessor’s Office on or before August 10, 2026.

Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

Page 5 of 16 ends

Desert Valley Disposal, Inc. April 13, 2026

10. DISTRIBUTION OF FUNDS
Revenues derived from the assessment shall be used only for the provision of solid waste collection services performed by the City’s contractor and to reimburse the City for its cost of administering the assessment.

The County of Riverside will distribute funds to the City in a series of disbursements and the City in turn will distribute the levy proceeds to Desert Valley Disposal, Inc. (DVD) in accordance with the provisions of the Franchise Agreement withholding only the full amount of the City’s administrative fees ($8,533.71) from the first disbursement. DVD will pay all other fees due to the City in accordance with Franchise Agreement Article 11.

Please contact me if you have any questions or require additional information.

Respectfully submitted,
Chris Cunningham
President
EXHIBITS:

1. Solid Waste Service Rates Effective July 1, 2026

2. City Administration Costs

3. 2026-27 Solid Waste Tax Levy & Individual Assessment

4. Properties Subject to Levy (to be provided separately) cc: Mr. Daniel Porras, Deputy City Manager
Mr. Jerryl Soriano, City Clerk
Mr. Geoffrey Buchheim, Administrative Services Director Ms. Charmaine McCarvel, Webb Municipal Finance, LLC
Item Number: 8.

Page 198 of 307 ends

Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

Page 6 of 16 ends

Desert Valley Disposal, Inc. April 13, 2026
Exhibit 1
Solid Waste Service Rates
Effective July 1, 2026
(from DVD 2026 Rate Adjustment Application)
Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

Page 7 of 16 ends

Desert Valley Disposal, Inc. April 13, 2026
City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2026

Page 1 of 5 ends

Current Rate
7/1/25
New Rate
7/1/26
Current Rate
7/1/25
New Rate
7/1/26
Cart services (an organic service is also required)
Residential dwelling service: (1,2,3,4,6,7) 2-cart service (refuse & recycling, 95-gallon each) (9) $ 60.51 $ 62.56 3-cart bundle $ 45.26 $ 46.79 Bin services (an organic service is also required) (9,10) Extra carts: Refuse bin service: (11)
Each add'l cart (refuse) $ 21.77 $ 22.50 2-CY refuse bin service:

Each add'l cart (recycling) $ 21.77 $ 22.50 1st weekly pickup $ 237.42 $ 245.44 Each add'l cart (organic waste) $ 21.77 $ 22.50 Each add'l weekly pickup $ 194.56 $ 201.14 One-time extra pick-up of any cart $ 29.13 $ 30.11 One-time pickup, 1st bin $ 93.45 $ 96.61 Billing fee (4) $ 15.73 $ 16.26 One-time pickup, each add'l bin $ 47.98 $ 49.60 Multi-family dwelling service (3-cart bundle): (6,7) 3-CY refuse bin service:

First dwelling unit on account $ 45.23 $ 46.75 First weekly pickup $ 319.69 $ 330.50 Each add'l dwelling unit on same account $ 45.02 $ 46.54 Each add'l weekly pickup $ 269.04 $ 278.13 Extra carts: One-time pickup, 1st bin $ 104.68 $ 108.22 Each extra refuse cart $ 21.77 $ 22.50 One-time pickup, each add'l bin $ 57.18 $ 59.11 Each extra recycling cart $ 21.77 $ 22.50 4-CY refuse bin service:

Each extra organic cart $ 21.77 $ 22.50 First weekly pickup $ 386.82 $ 399.89 Contaminated cart fees: (4,8) Each add'l weekly pickup $ 331.50 $ 342.70 Disposal of recycling cart contents (per event) $ 29.13 $ 30.11 One-time pickup, 1st bin $ 132.77 $ 137.26 Disposal of organic cart contents (per event) $ 29.13 $ 30.11 One-time pickup, each add'l bin $ 70.93 $ 73.33 Removal of noncompliant cart (per event) $ 29.13 $ 30.11 Redelivery of removed cart (per event) $ 29.13 $ 30.11 Recycling bin service:
3-CY recycle bin: (11)
First weekly pickup (per account) FREE FREE
Second bin weekly pickup $ 290.05 $ 299.85
Each add'l weekly pickup $ 245.10 $ 253.38
One-time pickup, 1st bin $ 86.76 $ 89.69
One-time pickup, each add'l bin $ 86.76 $ 89.69
Service Service
Rates are monthly unless otherwise noted. Footnotes appear at end of schedule. COMMERCIAL SERVICES (3,7,9)

RESIDENTIAL SERVICES
Desert Valley Disposal, Inc.

Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

Page 8 of 16 ends

Desert Valley Disposal, Inc. April 13, 2026
City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2026

Page 2 of 5 ends

Current Rate
7/1/25
New Rate
7/1/26
Current Rate
7/1/25
New Rate
7/1/26
Organic waste cart & bin services: (9,12) Food waste service, continued Green waste: 2-CY bin:
35-gallon cart: Each bin $ 339.53 $ 351.01
Each cart $ 29.17 $ 30.16 One-time pickup, 1st bin $ 86.76 $ 89.69 One-time pickup, 1st cart $ 28.92 $ 29.90 One-time pickup, each add'l bin with 1st $ 78.42 $ 81.07 One-time pickup, each add'l cart with 1st $ 6.73 $ 6.96 Mixed organic waste:
65-gallon cart: 35-gallon cart:

Each cart $ 37.53 $ 38.80 Each cart $ 37.04 $ 38.29
One-time pickup, 1st cart $ 28.92 $ 29.90 One-time pickup, 1st cart $ 28.92 $ 29.90 One-time pickup, each add'l cart with 1st $ 8.67 $ 8.96 One-time pickup, each add'l cart with 1st $ 8.54 $ 8.83 95-gallon cart: 65-gallon cart:

Each cart $ 45.87 $ 47.42 Each cart $ 52.12 $ 53.88
One-time pickup, 1st cart $ 28.92 $ 29.90 One-time pickup, 1st cart $ 28.92 $ 29.90 One-time pickup, each add'l cart with 1st $ 10.60 $ 10.96 One-time pickup, each add'l cart with 1st $ 12.04 $ 12.45 2-CY bin: 95-gallon cart:

Each bin $ 261.31 $ 270.14 Each cart $ 67.21 $ 69.48
One-time pickup, 1st bin $ 86.76 $ 89.69 One-time pickup, 1st cart $ 28.92 $ 29.90 One-time pickup, each add'l bin with 1st $ 60.34 $ 62.38 One-time pickup, each add'l cart with 1st $ 15.53 $ 16.05 3-CY bin; 2-CY bin:

Each bin $ 353.26 $ 365.20 Each bin $ 306.68 $ 317.05
One-time pickup, 1st bin $ 86.76 $ 89.69 One-time pickup, 1st bin $ 86.76 $ 89.69 One-time pickup, each add'l bin with 1st $ 81.59 $ 84.35 One-time pickup, each add'l bin with 1st $ 70.83 $ 73.22 Food waste: 3-CY bin:
35-gallon cart: Each bin 421.31 $ 435.55 $
Each cart $ 44.36 $ 45.86 One-time pickup, 1st bin $ 97.31 $ 100.60 One-time pickup, 1st cart $ 28.92 $ 29.90 One-time pickup, each add'l bin with 1st $ 97.31 $ 100.60 One-time pickup, each add'l cart with 1st $ 6.73 $ 6.96 65-gallon cart: Cannabis waste documentation fee: (13)
Each cart $ 65.73 $ 67.95 Will call collections $ 47.82 $ 49.44 One-time pickup, 1st cart $ 28.92 $ 29.90 Monthly charge for each weekly collection $ 207.22 $ 214.22 One-time pickup, each add'l cart with 1st $ 15.18 $ 15.69 Service Service
COMMERCIAL SERVICES, continued COMMERCIAL SERVICES, continued Desert Valley Disposal, Inc.

Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

Page 9 of 16 ends

Desert Valley Disposal, Inc. April 13, 2026
City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2026

Page 3 of 5 ends

Current Rate
7/1/25
New Rate
7/1/26
Current Rate
7/1/25
New Rate
7/1/26
Contaminated cart fees: (8) Tonnage-based charges:

Each recycle or organic cart disposed (per event) 28.92 $ 29.90 $ Disposed tons:

Removal of non-compliant cart (per event) 28.92 $ 29.90 $ Minimum charges (per load):

Redelivery of removed cart (per event) $ 28.92 $ 10-CY, 8-tons 941.50 29.90 $ 972.00 $ Contaminated bin fees: (8) 20-CY, 3-tons 282.45 $ 291.60 $ Each recycle or organic bin disposed (per event) $ 96.38 $ 30-CY, 4-tons 376.61 99.64 $ 388.81 $ Removal of non-compliant bin (per event) $ 111.46 $ 40-CY, 5-tons 470.75 115.23 $ 486.00 $ Return of removed bin (per event) $ 92.92 $ Charge per ton in excess of minimum charge 94.15 96.06 $ 97.20 $ Diverted tons: (14)
Enforcement Inspections (per hour; on City order) $ 165.25 159.85 $ (a) Facility tip fee Actual T.F. Actual T.F.

Misc. Commercial Services: $ (b) SB 1383 - 1.89% of actual 1.89% of actual Return trips for inaccessible bins $ 92.92 $ 96.06 (c) Admin fee 15% of actual 15% of actual Bin relocation: - $ (d) Diversion reporting (per ton) 15.48 $ 15.98 $ First bin (per request) 92.92 $ 96.06 $ (e) City Fee (per ton) 12.09 $ 12.48 $ Each add'l bin (per request) 37.02 $ 38.27 $ Miscellaneous debris box charges:

Roll-out charges (per month for each wkly p/u) 131.43 $ 135.87 $ Return trip, relocate, exchange box (15) $ 92.80 89.89 $ Locking bin charges: - $ Offloading > 10-tons (per 15-min, 1 hr min) $ 192.74 186.69 $ One-time set up charge per bin 150.12 $ 155.19 $ Clean & wash box:

Domestic animal waste (charged for each 3-CY bin pickup) 330.10 $ 341.26 $ Disposed tons $ 97.20 94.15 $ Add for hard-to-handle waste (per ton) 22.21 $ 22.93 $
Diverted tons: (14)
Debris Box Services (pull charges + tonnage-based fees per load) (a) Facility tip fee Actual Actual Pull charges: (b) SB 1383 1.89% of actual 1.89% of actual Loads to EHTS for disposal & diversion 574.64 $ 593.26 $ (c) Admin fee 15% of actual 15% of actual Loads to other facilities 672.30 $ 694.08 $ (d) Diversion reporting (per ton) 15.48 $ 15.98 $ Rental charges (per day after 7-days no activity) $ 84.74 82.08 $ (e) City Fee (per ton) 12.09 $ 12.48 $ Service Service
COMMERCIAL SERVICES, continued ROLL-OFF SERVICES, continued

ROLL-OFF SERVICES
Desert Valley Disposal, Inc.

Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

Page 10 of 16 ends

Desert Valley Disposal, Inc. April 13, 2026
City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2026

Page 4 of 5 ends

Current Rate
7/1/25
New Rate
7/1/26
Current Rate
7/1/25
New Rate
7/1/26
Miscellaneous stationary compactor charges: Miscellaneous charges, continued Return trip, relocate, or turn around (15) $ 92.80 89.89 $ Miscellaneous Refuse & debris (hourly):

Offloading > 10-tons (per 15-min, 1 hr min) $ 192.74 186.69 $ First 15-minutes 40.73 $ 42.11 $ Clean & wash box: $ Each add'l 15 minute increment 11.86 - $ 12.26 $ 1st box (per request) 150.88 $ 155.77 $ Cleanup Services (including disaster debris):

Each add'l box (per request) 64.70 $ 66.80 $ Labor (per hour):

Monthly maintenance service $ 126.46 122.49 $ Debris abatement crew (with vehicle) 118.83 $ 122.85 $ Specialized equipment or handling (per load) $ 162.98 157.87 $ Field supervisor 59.46 $ 61.47 $ Driver, roll-off truck 54.81 $ 56.66 $
Special Bin Services Driver, front & rear loader collection vehicle 48.86 $ 50.51 $ Disposal services: Driver, bin delivery truck 48.86 $ 50.51 $ Temporary residential clean-up bin: Laborer 31.54 $ 32.61 $ 4-day rental 164.01 $ 169.54 $ Equipment (per hour):

Extra pick-up 109.44 $ 113.13 $ Roll-off truck 84.22 $ 87.07 $ Construction bin: Debris box 82.08 $ 84.85 $
7-day rental 190.10 $ 196.53 $ Rear loading collection vehicle 84.22 $ 87.07 $ Extra pick-up 109.44 $ 113.14 $ Commercial front loader collection vehicle 86.44 $ 89.36 $ Monthly service 444.98 $ 460.02 $ 3-CY construction bin 26.89 $ 27.80 $ Extra pick-up 122.59 $ 126.73 $ Bin delivery truck 19.66 $ 20.32 $ Special Bin Services, continued Pick-up truck 17.05 $ 17.63 $ Diversion services: Rented equipment Actual + 10% Actual + 10% Preferred Hauler Program (3-CY bin): Disposal or diversion tip fee Actual + 10% Actual + 10% 7-day rental 219.61 $ 227.03 $ Materials & contracted services Actual + 10% Actual + 10% Extra pick-up 219.61 $ 227.03 $ Remove litter from enclosure (per hour) $ 132.92 128.57 $ Monthly service 878.46 $ 908.15 $ Enclosure cleaning:

MISCELLANEOUS SERVICES
Desert Valley Disposal, Inc.

Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

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Desert Valley Disposal, Inc. April 13, 2026
City of Desert Hot Springs

EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2026

Page 5 of 5 ends

(15) Return trip to service inaccessible box/compactor or relocate at customer's request.

FOOTNOTES FOOTNOTES, continued
(1) 3-cart bundle is the default residential service and includes one 95-gallon cart each for sourceseparated refuse, recycling & organic waste provided by Contractor; food waste in organic cart must be separately bagged. Dwellings not billed via the County property tax bill will be billed directly by Contractor, quarterly in advance.
(10) Bins cleaned or exchanged once annually at no charge upon request. (11) For each 2-, 3- or 4-CY bin subscription, regardless of the number of weekly pick-ups, customer receives one 3CY recycle bin collected once weekly. Additional recycle bins or weekly recycling bin pickups available for additional fees. Customer may substitute a 2CY bin, however no price difference for substitutions. (2) Single family rate applies to dwellings in mobile home parks that are direct billed individually by Contractor. Examples: (a) One 3CY recycle bin provided for subscription of one 2CY refuse bin collected 1xWeek; (b) One 3CY recycle bin provided for subscription of one 3CY bin collected 6xWeek; (c) Two 3CY recycle bins provided for subscription of two 4CY refuse bins collected 2xWeek. (3) Containers (carts & bins) must be no more than level full with lids closed. C&D waste and animal waste prohibited, except for animal waste for household pets. (4) Detached single family service billed on County property tax bill. Any services direct billed by Contractor are subject to a billing fee for each quarterly billing. (12) Source-separated green waste, food waste or mixed organic waste free of non-compliant waste; requirements strictly enforced.
(5) Reserved for future use. (13) The disposal of cannabis waste is regulated by the State of California. State regulations allow collection of cannabis waste with other green waste if processed at a permitted green waste facility.

Desert Valley Disposal, Inc.

Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

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Desert Valley Disposal, Inc. April 13, 2026
Exhibit 2
City Administration Costs
Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

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Desert Valley Disposal, Inc. April 13, 2026
Levy Lien
City administration fees (1) $ 3,546.03 $ 4,892.54
Contract services (Webb Municipal Finance) (2) $ 4,987.68 $ 6,155.01 Total $ 8,533.71 $ 11,047.55
Notes:
(2) Per Webb Municipal Finance LLC email dated February 19, 2026.

Description
City Administration Costs
2026-27 Solid Waste Services Levy & Lien
(1) Per City Finance Department 2024-25 Rate Year Administrative Cost Analysis and carried forward from 2025-26.

EXHIBIT 2
Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

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Desert Valley Disposal, Inc. April 13, 2026
Exhibit 3
2026-27 Solid Waste Tax Levy
& Individual Assessment
For Single Family Residential Premises
Receiving Individual Collection
Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

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Desert Valley Disposal, Inc. April 13, 2026
Description # Parcels
Monthly Solid
Waste Service
Fee
Annual Levy Amount Total Individual
Assessment
Number of eligible
parcels (1) 8,160
Cost of Contractor's Solid
Waste Service Fee (2)(3) $ 46.79 $ 4,581,676.80
Cost of City's Tax Levy
Administration Fee (4) $ 8,533.71
Total Tax Levy (5) $ 4,590,210.51
Total Individual
Assessment (6) $ 562.53
Notes:
(4) From Annual Report Exhibit 2.
(5) Total annual levy computed as [$4,581,676.80 + $8,533.71 = $4,590,210.51]. (6) Total individual assessment computed as [$4,590,210.51 ÷ 8,160 = $562.53].

EXHIBIT 3
2026-27 Solid Waste Total Tax Levy & Individual Assessment For Single Family Residential Premises Receiving Individual Collection (1) Contractor's count of parcels receiving individual service and eligible for billing on the County property tax bill.
(2) Contractor's service rate for individual single family residential dwellings for the 2026 Rate Year (July 1, 2026 through June 30, 2027).
(3) Annual levy amount for solid waste services computed as [8,160 X $46.79 X 12-months = $4,581,676.80].

Item Number: 8.

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Desert Hot Springs
2026-27 SOLID WASTE LEVY ANNUAL REPORT

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Desert Valley Disposal, Inc. April 13, 2026
Exhibit 4
Properties Subject to Levy
(To be submitted electronically
prior to the public hearing)
Item Number: 8.

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SR-26-104
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: May 5, 2026
Department: Public Works
Prepared by: Daniel Porras, Deputy City Manager
Subject: Construction Management and Inspections Services for the Line C-1 Storm Drain Project, City Project 6003
RECOMMENDATION:

Authorize the City Manager to execute the Professional Services Agreement for Construction Management and Inspections Services for the Line C-1 Storm Drain Project, City Project 6003, to NV5, Inc. in an amount not to exceed $210,584.00 with a 10% contingency of $21,058.40 bringing the total amount to $231,642.40.

BACKGROUND:

The Line C-1 Storm Drain Project will substantially improve flood protection for the residents along Calle Amapola south of Hacienda Avenue to Panorama Drive, a map is attached as an exhibit. The project includes upsizing the existing storm drain from 48 inches to 60 inches in diameter with a new headwall at the entrance of the storm drain and an improved outfall structure at the downstream end of the project.

The Line C-1 Storm Drain Project is a large project with multiple trades such as road demolition, trenching, storm drain installation, repaving, and coordination with multiple utilities. In order to move the project through construction and properly administer all of the construction needs, Staff is recommending the assistance of a Construction Management Team. The City requested proposals from consultant firms and evaluated them independently. After the evaluation NV5, Inc. was selected as the highest qualified consultant firm for this project. NV5, Inc. currently provides As-needed Construction Management Services for the Eagles Sports Park and John H. Furbee Aquatic Center Project, and the recently completed Reflection Park Project, and Wardman Park Shade Structures Project. NV5 Staff understands all of the City needs and requirements and has successfully provided construction management services for all projects.

The City’s Municipal Code 3.44.180 allows for “…the selection of professional services …to be based on demonstrated competence and professional qualifications necessary for satisfactory performance of services required, as so determined by the Department Head. An RFP is not required. The Item Number: 9.

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SR-26-104
emphasis for selection is therefore based upon qualifications, rather than the lowest price…” In this case NV5, Inc. has demonstrated the specific qualification to perform inspection services for this project.

Staff is recommending that City Council Authorize the City Manager to execute the Professional Services Agreement for Construction Management and Inspections Services for the Line C-1 Storm Drain Project, City Project No. 6003, to NV5, Inc. in an amount not to exceed $210,584.00 with a 10% contingency of $21,058.40 bringing the total amount to $231,642.40.

FISCAL IMPACT:

On April 7, 2026, the City Council awarded the construction contract to the lowest responsible bidder, WEKA, Inc. in an amount not to exceed $6,392,369.00 and approved a total project budget in an amount of $8,018,026.00
Line C-1 Storm Drain Project
Construction Costs
Lowest Bid $ 6,392,369.00
Contingency 10% $ 639,236.90
Sub-Total $ 7,031,605.90
Design Costs
Webb & Associates $ 539,622.00
Sub-Total $ 539,622.00
Construction Management*
As-Needed Inspection Services $ 416,798.10
As-Needed Materials Testing $ 30,000.00
Sub-Total $ 446,798.10
Total Project Budget $ 8,018,026.00
Funding Sources
RCFCD MOU w/Amendment No. 1 $ 8,018.026.00
Total Project Funding $ 8,018,026.00
The previously approved total project budget amount of $8,018,026.00 included $416,798.10 for AsNeeded Inspection Services. This contract is for amount not to exceed $210,584.00 with a 10% contingency of $21,058.40 bringing the total amount to $231,642.40, which is under the previously approved amount.

STRATEGIC ALIGNMENT:

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

Item Number: 9.

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SR-26-104
Goal 10: Street/Road Infrastructure
Intense focus on fiscal and operational needs to ensure the city can meet the growing demands of the community by maintaining existing street/road infrastructure while planning for long-term growth and development.

ATTACHMENTS:
1) MDP Line C-1 Exhibit
2) Professional Services Agreement - NV5 Line C-1 SD
3) Scope of Services
Item Number: 9.

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Item Number: 9.

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PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND
NV5, INC.

This Professional Services Agreement (“Agreement”) is made and entered into this 5th of May, 2026, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the “City,” and NV5, Inc., a corporation, hereinafter referred to as “Consultant.” RECITALS:

WHEREAS, the City desires to utilize the services of Consultant, as an independent Consultant, to provide the City with Construction Management and Inspection Services for Line C-1 Storm Drain Project, City Project 6003 (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, Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS,

CONDITIONS AND PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE 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
Consultant shall provide to the City the Services on an as-needed and asdirected basis in a manner satisfactory to the City and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions, as described in more detail in the Scope of 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 Consultant is responsible for providing any and all facilities, assets, and resources (including personnel, facilities, equipment, and software) necessary and appropriate for delivery of the Services and to meet the Consultant's obligations under this Agreement. Any City assets to which access is being provided for Item Number: 9.

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use by the Consultant (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 Consultant 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 Project Completion, 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 Consultant for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Consultant agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, Two Hundred Ten Thousand, Five Hundred Eighty Four Dollars and Zero Cents ($210,584.00) in accordance with the Cost Proposal contained in the Scope of Services.

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

Daniel Porras, Deputy City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411 x109
E-mail: [email protected]
Item Number: 9.

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Section 6. EXTRA WORK
At any time during the term of this Agreement, the City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by the City to be necessary for the proper completion of the Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform Extra Work without written authorization from the City.

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

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

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

Section 9. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without prior written consent of the City, be used by Consultant for any purposes other than the performance of the services under this Agreement, nor shall such materials be disclosed to any person or entity not connected Item Number: 9.

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with the performance of the services under this Agreement. Consultant 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 Consultant that is otherwise known to Consultant, is generally known in the industry, or has become known to the related industry shall be deemed confidential.

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

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

Section 11. INDEPENDENT CONSULTANT’S STATUS: NOT AGENT

OF THE CITY
Consultant shall at all times during the term of this Agreement remain, as to the City, a wholly independent Consultant and shall perform the services described in this Agreement as an independent Consultant and further, hereby waives any claims for any Item Number: 9.

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

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

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

Item Number: 9.

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

Section 13. CIVIL CODE SECTION 1542 WAIVER
Consultant expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:
“A general release does not extend to claims 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: 9.

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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 Consultants.

Consultant further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
__________
Initials
Section 14. CONFLICTS OF INTEREST
a. Consultant (including principals, associates and professional employees) covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source or income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
b. Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
(1) Does not make or participate in:
(i) the making or any governmental decisions regarding
approval of a rate, rule, or regulation, the adoption or enforcement of laws;
(ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certificates, approvals, orders, or similar authorization or entitlement;
(iii) authorizing the City to enter into, modify, or renew a contract;
(iv) granting the City approval to a contract that requires City approval and to which the City is a party, or to the
specifications for such a contract;
Item Number: 9.

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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 Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file the subject Form 700 with the City Clerk’s Office pursuant to the written instructions provided by the Office of the City Clerk.

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

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

Item Number: 9.

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

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

Section 17. INDEMNIFICATION
a. Consultant 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 Consultant under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. c. Notwithstanding the provisions of subsections a. and b. of this section, Consultant shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Consultant’s work promptly, or by reason of delay or faulty performance by the City, construction Consultants, or governmental agencies, or by reason of any other delays beyond Consultant’s control, or for which Consultant is without fault. d. In the event that Consultant or any employee, agent, or subconsultant of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subconsultants, 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: 9.

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

Item Number: 9.

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(3) Automobile Liability Coverage. Consultant shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Consultant arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and two million dollars ($2,000,000) in the aggregate. As an alternative, Consultant shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Consultant were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof.
(4) Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant’s Services, whether such Services are performed by Consultant or by its employees, subconsultants, or sub-Consultants, to the extent such persons other than Consultant are permitted to perform any of the Services under this Agreement. The amount of this insurance shall not be less than one million dollars ($1,000,000) per claim, and two million dollars ($2,000,000) in the aggregate.
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 Consultant, including materials, parts or equipment furnished in connection with such work or operations.
(2) This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have shall be considered excess insurance only and shall not contribute with it. (3) This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
(4) The insurer waives all rights of subrogation against the City, its elected or appointed officials, officers, employees or agents.

Item Number: 9.

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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. Consultant shall disclose to and obtain the approval of City for any self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. During the period covered by this Agreement, only upon the prior express written authorization of the City Manager, Consultant may either reduce or eliminate such deductibles or selfinsured retentions with respect to City, its officers, employees, agents, and volunteers.

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

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

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

To the City: 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 Consultant: Jeffrey M. Cooper, Senior Vice President NV5, Inc.
42-829 Cook Street, Suite 104
Palm Desert, CA 92211
Telephone: 760-341-3101
E-Mail: [email protected]
b. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 20. DEFAULT
a. Failure or delay by any party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within fifteen (15) Item Number: 9.

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

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

Section 22. ENTIRE AGREEMENT
a. This Agreement supersedes any and all other agreements, either oral or written, between the City and Consultant with respect to the subject matter of this Agreement.
b. This Agreement contains all of the covenants and agreements between the parties with respect to the subject matter of this Agreement, and each party to this Item Number: 9.

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

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

Section 24. ASSIGNMENT AND SUBCONTRACTING
a. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the written consent of the City. b. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the advance written consent of the City. If the City consents to such subcontract, Consultant shall be fully responsible to the City for all acts or omissions of the subconsultant. Nothing in this Agreement shall create any contractual relationship between the City and subconsultant 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 subconsultant 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: 9.

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

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

Section 31. EQUAL OPPORTUNITY EMPLOYMENT
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Consultant represents that it is an equal opportunity employer and shall not discriminate against any subconsultant, employee, or applicant (“person”) for employment because of race; denial of family and medical care leave; religious creed (including religious dress and grooming practices); color; national origin (including language use restrictions); ancestry; physical disability or mental disability (including HIV and AIDS); medical condition (cancer and genetic characteristics); genetic information; military or veteran status; marital status; gender, gender identity, and gender expression; sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding); age or sexual orientation. Unless otherwise permitted under the law, Consultant shall not refuse to hire or employ any such person or refuse to select any such person for a training program leading to employment, or bar or discharge any such person from employment or from a training program leading to employment, or otherwise discriminate against any such person in compensation or in terms, conditions, or privileges of employment.

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

Section 33. PRINCIPAL REPRESENTATIVES
a. Jeffrey Cooper, shall be Consultant's Principal Representative and the person responsible for undertaking, managing and supervising the performance of all of the Services for this Agreement. Consultant's Principal Representative's experience, knowledge, capability and reputation were a substantial inducement for the City to enter into this Agreement, and as such, for the purposes of performing the Services, the duties of Consultant'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 Consultant on any matter associated with the performance of the services set forth in this Agreement.

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

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

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

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

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

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

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

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

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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 Consultant shall survive any such termination.

Section 45. USE OF RECYCLED PRODUCTS
Consultant 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.

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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
NV5, INC.
________________________________
Jeff M. Cooper, Senior Vice President
N:\DHSO\0001-01 General\Doc\6051
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EXHIBIT “A”

SCOPE OF SERVICES
Proposal Dated March 23, 2026
Item Number: 9.

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42829 Cook Street, Ste. 104 | Palm Desert, CA 92211 | www.NV5.com | Office 760.341.3101 March 23, 2026
Daniel Porras, PE, Deputy City Manager
City of Desert Hot Springs
11999 Palm Drive Desert Hot Springs, CA 92240
Subject: Construction Management and Inspection Services for MDP Line C-1 Storm Drain Dear Mr. Porras,
NV5, Inc. (NV5) understands that the City of Desert Hot Springs (City) is seeking construction management and inspection services for the MDP Line C-1 Storm Drain Project, City Project No. 6003. This project provides for the construction of approximately 4,600 linear feet of underground storm drain (24- and 60- inch reinforced concrete pipe) and catch basins. The purpose of the project is to provide flood protection to the adjacent residences.

PROJECT UNDERSTANDING
NV5 understands that the City is
undertaking the MDP Line C-1 Storm
Drain Project (City Project No. 6003), a
large-scale public works effort to
construct new storm drain infrastructure
citywide. The project will significantly
improve flood protection for residents
within the project area. Work includes
upsizing the existing storm drain from 48
inches to 60 inches in diameter,
constructing a new headwall at the
upstream entrance, and improving the
downstream outfall structure. The new
storm drain will extend from the
intersection of Redbud Road and Deodar
Avenue to Calle Amapola and Panorama
Drive, ultimately discharging south of the project area. Impacted schools that the construction must work around will be the Julius Corsini Elementary and the Cabot Yerxa Elementary schools. NV5 will assure that the appropriate coordination between the City’s contractor and the school district occurs well in advance, preferably with construction occurring during school vacations. In addition to the main storm drain and associated appurtenances for which NV5 will provide construction management and inspection services, several utilities will be impacted including six (6) 1-inch water services per MSWD Std W-09, an 8-inch water main, seven (7) sewer laterals per SPPWC Std 223-2, a 4” sewer lateral, and a retaining wall. NV5 will work diligently with each of the utilities and service connection owners to provide tie-in coordination and limited-service outage notifications.

The engineer’s estimate for this project is $6,200,000 with a 180-working-day duration. The City issued Addendum No. 1 in response to bidder questions, and bids are due on March 25, 2026, at 2:00 PM.

Following receipt of bids and completion of required easements, City staff will return to City Council for recommendation of award of the Construction contract. It is anticipated that contracts will be fully executed and a Notice to Proceed will be issued on May 7, 2026, with a construction completion date of January 2027.

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The City entered into a funding agreement with the Riverside County Flood Control and Water Conservation District (RCFCWCD) for the completion of the design and the construction of the Line C-1 Storm Drain Improvement Project storm drain improvement project identified in the City’s Master Drainage Plan in April 2022. Albert Web designed the improvements in collaboration with RCFCWCD staff to assure compliance with Riverside County as well as City standards.

NV5’s role for the MDP Line C-1 Storm Drain Project will be to provide construction management and inspection services throughout the construction phase to support the City in monitoring contractor performance, progress, documentation, and conformance with the approved plans, specifications, and contract requirements.

SCOPE OF WORK
NV5 understands that the City is seeking construction management and inspection services for the MDP Line C-1 Storm Drain Project (City Project No. 6003). NV5 will provide construction management and inspection services throughout the duration of construction in accordance with the contract documents.

1. PRECONSTRUCTION PHASE.

1.1. Kick-off meeting (preconstruction meeting). NV5 will provide a kickoff meeting agenda, invite the impacted utilities, stakeholders, City staff, Contractor, and Contractor’s subcontractor to the meeting. NV5 can chair or co-chair with the City and provide meeting minutes for the Kickoff Meeting.

1.2.Submittal Review & RFI Processing. NV5 will receive, log, track, and process the Contractor’s submittals and Requests for Information (RFIs) and route them to the Engineer-of-Record or other applicable reviewing party, including the City, as required by the contract documents.

NV5 will monitor the status of submittals and RFIs to support timely reviews and responses and will maintain accurate records of all project documentation throughout the construction process. Submittals & RFI’s will be managed in CMIS.

1.3.Meetings. NV5 will conduct regular weekly construction meetings throughout the duration of construction, which may be held virtually. On-site meetings will be conducted as needed for critical issues or items requiring field observation. NV5 can be available within 24 to 48 hours’ notice for critical in-person meetings to resolve issues as they arise.

2. CONSTRUCTION PHASE.

2.1.CMIS. Our web-based CMIS software is custom-designed to provide the Construction Manager and Field Inspector with the capability to manage project information efficiently and effectively while maintaining full transparency with the City and the design engineer during construction.

CMIS is provided at no cost to the City.

2.2.Change orders reviews, negotiations, and final documentation (up to 5 change orders). NV5 will evaluate the potential request for change orders, participating in the negotiations and preparing the final documents for approval. Five (5) change orders are included in the proposal. Additional Change Orders will be processed at our hourly rates and included in our 2026 rate sheet as an attachment.

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2.3.Monitoring contractor performance and schedule. NV5 will carefully monitor the Contractor’s progress for the Contractor’s conformance to the Contractor’s critical path baseline schedule and issues placing the project in jeopardy of not finishing will be brought to the City’s and Contractor’s attention so that the Contractor can make early and necessary corrections to get the project back on schedule. NV5 will coordinate with the City any variance of actual schedule, cost, and budget.

2.4.Documenting deficiencies (materials, workmanship, SWPPP's, safety) and their resolution (up to one deficiencies). Our Construction Manager will document the potential deficiencies observed by the field Inspector retained by the City, addressing the problem and issuing the formal letter of deficiency to the Contractor. In our proposal we included up to one (1) deficiency. Additionally, we will provide QSD/QSP services to ensure compliance with stormwater regulations and proper implementation of SWPPP measures as needed throughout the project.

2.5.Progress monthly payments and final payments. NV5’s Construction Manager will evaluate the contractor's request for payment based on the progress made on a project, monthly. Our PM will verify that the claimed progress aligns with the actual work completed on site, to confirm that the performance is satisfactory before approving payments, ensure compliance with the terms and conditions of the contract, and manage financial risk by holding back a percentage of payment (retainage) until final completion.

2.6.Providing regular progress reports to the City. Our progress reports will provide a summary of work completed since the last report, including a complete percentage, recent milestones, and any major changes or delays.

2.7.Inspection. NV5’s Inspector will provide part-time on-site inspection services for a duration of 180 working days, with a maximum of 720 inspection hours.

2.8.Final Walk-through and punch list. A final visit to identify any remaining issues or defects that need to be addressed before project completion. During that visit, the Construction Manager/Field Inspector will generate a detailed list of items that need to be fixed or completed before a project is considered finished, establishing a deadline for its total completion.

2.9.Funding Documentation: NV5 will collaborate with the Contractor to gather supporting documentation for the City to submit for required funding reimbursements. NV5 will also collaborate with the Contractor to ensure that required payroll documentation is uploaded to the Department of Industrial Relations (DIR) for labor compliance. NV5 understands that reimbursement requests are limited to supporting documentation for work completed and will coordinate with the City and Contractor to gather invoices and supporting materials for each reimbursement request such that audit compliance for applicable funding and grant requirements will be available upon request.

2.10. Utility Coordination: NV5 will assist the Contractor with utility coordination for the impacted utilities for tie-ins and outages.

2.11. Neighborhood Public Relations & Notifications: NV5 will work with the City to provide Item Number: 9.

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neighborhood public relations and notifications to affected businesses and residents of pending outages. This typically involves NV5’s Project or Construction Manager’s name and phone number going out as the primary point of contact on notices the Contractor must produce or having our contact information on the City’s website. Additionally, our on-site field inspector will field those one-on-one conversations from interested parties who approach us during construction and provide the contact information (if the party is willing) to the City for further follow up. Our goal is to provide general information, and to listen to the public. All contact information and data will be forwarded to the City for their information and follow-up at their discretion.

3. PROJECT COMPLETION AND CLOSEOUT

3.1.Punch Lists. Final punch lists will be developed with the on-site inspector, City, and the Design Engineer. NV5 will make certain that the Contractor clears these punch-list items prior to the Contractor’s final pay application request. Additionally, prior to approving the Contractor’s final pay request, NV5’s team will coordinate the Contractor’s red line plans to be forwarded to the City and the Design Engineer for final review, acceptance, and incorporation.

3.2.As-builts. Finally, we will collect and coordinate the as-built drawings from the Contractor and forward them to the engineer-of-record for processing.

3.3.Providing final Set of documents. NV5 will provide the construction documents generated during the construction and stored in CMIS in electronic format to the City.

Exemptions & Exclusions:

1. Review and approval of submittals and RFI’s will be performed by the City’s engineer-of-record.

2. Surveying, Geotechnical, material testing services are not included in this proposal and are available for an additional fee.

3. Application fees, permit fees, or any other fees required for the project.

4. The City’s engineer-of-record will provide the electronic as-built documents from the Contractor’s as-built plans.

Project Team and Qualifications: NV5 offers its seasoned and qualified staff to support the City on this project. Serving as the City’s Construction Manager will be India Allen, CCM, QSD/QSP.

Ms. Allen is an initiative-taking and self-motivated Certified Construction Manager with extensive experience managing at-risk public works projects throughout Southern California. She has worked closely with public agencies, consultants, and contractors to successfully deliver projects while maintaining schedule, budget, and quality control.

Ms. Allen is proficient in Microsoft Office, Procore, Primavera P6, Microsoft Project, AutoCAD, and Bluebeam Revu. Her effective communication and negotiation skills, combined with her project management experience, allow her to effectively coordinate with City staff, design professionals, and construction trades.

Ms. Allen holds certifications as a Certified Construction Manager and as a Qualified SWPPP Developer and Practitioner. Her background in construction management and environmental compliance makes her well suited to serve as Construction Manager for the MDP Line C-1 Storm Drain Project. Ms. Allen’s resume is included for the City’s consideration.

NV5 also offers Mr. Roland Bustamante as the Construction Inspector for this project. Mr. Bustamante is currently working part-time for the City on the Eagles Sports Park and finishing the Furbee Aquatics Center.

He has over 31 years of Public Works Construction inspection experience and service through the Coachella Item Number: 9.

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Valley Water District with 18 years as Chief Inspector leading the Engineering Construction Inspection Section. He provided QA/QC for both Subdivision and Capital Improvement Projects to include Domestic Water, Sanitary Sewer, Irrigation, Drainage, and Storm Water Pipelines. Pipeline projects mentioned also included the inspection of infrastructure, appurtenances, and facilities such as Treatment Plants, Pump Station, Lift Stations, Reservoirs, Well Construction, Storm Water Channels, Rechange Facilities, Buildings, Framing, Mechanical, Electrical, and Structural. I am a Registered Public Works and Engineering inspector through the American Construction Inspector Association (ACIA) and Certified Building/Concrete inspector through the International Code Council (ICC).

Fee Proposal: NV5’s services will be billed on a time-and-materials basis for the total not-to- exceed fee listed in Attachment A in accordance with our Contract with the City.

NV5 looks forward to the continuing opportunity to work with the City to help you achieve your goals and objectives. If you need further information, we may be reached by phone at (949) 585-0477, or electronically at [email protected] and [email protected]. Thank you for your time and consideration.

Sincerely,
NV5
Luanne Bean, PE
Director of Program and Construction
Management
PN: 2700226-0017250.00
Jeffrey M. Cooper, PE

EVP/COO
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Attachment A
$127
HRs $ HRs $ HRs $
1 Preconstruction Phase

1.1 Kick-off Meeting (NIC) 8 $1,440 2 $0 2 $328 $1,768

1.2 Submittal Review & RFI Processing 96 $17,280 24 $3,048 $0 $20,328

1.3 Meetings 48 $8,640 70 $8,890 $0 $17,530
2 Construction Phase (260 WD)

2.1 CMIS (No Charge for CMIS Platform) 2 $360 $0 $0 $360

2.2 Change orders reviews, negotiations and
final documentation (up to 5 change orders) 50 $9,000 $0 $0 $9,000

2.3 Monitoring Contractor Performance and
Schedule 70 $12,600 $0 $0 $12,600

2.4 Documenting Deficiencies (1) 8 $1,440 $0 $0 $1,440

2.5 Progress Monthly Payments and Final
Payment 40 $7,200 $0 $0 $7,200

2.6 Providing regular progress reports to the City 40 $7,200 14 $1,778 $0 $8,978

2.7 Inspection (180 WD, 1/2 time) 0 $0 $0 720 $118,080 $2,500 $120,580

2.8 Final Walk Through and Punch List 14 $2,520 $0 $0 $2,520

2.9 Funding Documentation 16 $2,880 $0 $0 $2,880
3 Project Completion and Closeout

3.1 Punch Lists 10 $1,800 $0 $0 $1,800

3.2 As-Builts 10 $1,800 $0 $0 $1,800

3.3 Providing final Set of Documents 10 $1,800 $0 $0 $1,800 Total 422 $75,960 110 $13,716 722 $118,408 $2,500 $210,584.00 $210,584.00
Rates shown are for up to 8 hours, 8 to 12 hours is 1.5XRate, over 12H weekends & Holidays is 2xRate.

ADMINISTRATION
TASK
NO. WORK DESCRIPTION

CONSTUCTION

MANAGER INSPECTOR
TOTAL
$180 $164 FEE ODC'S

FEE PROPOSAL - ESTIMATE

CITY OF DESERT HOT SPRINGS
for MDP Line C-1 Storm Drain Project, City Project No. 6003

CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES

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RESUME
Project Experience
Indian Canyon Drive Sewer Project
CITY OF PALM SPRINGS | PALM SPRINGS, CA
Construction Manager. Ms. Allen is serving as Construction Manager for the Indian Canyon Drive Sewer Project. NV5 is providing construction management and inspection services for the project, which will install 8,875 feet of 10-inch PVC sewer pipeline on North Indian Canyon Drive. Twenty-four manholes will be constructed along the route. Microtunneling will be used for 1,200 feet, and the remaining 7,675 feet will be installed via open-cut trenching. Installation involves excavation, pipe laying, backfilling, surface restoration, and manhole construction using precast or cast-inplace structures.

Diversion Sewer Pipes to Abandon Fox Hills Pump Station CITY OF CULVER CITY | CULVER CITY, CA
Assistant Construction Manager. NV5 provided construction management and inspection services for the Diversion Sewer Pipes to Abandon Fox Hills Pump Station project. The project constructed 1,230 LF of 18-inch diversion sewer mains from Fox Hills pump station to Bankfield pump station. The project included constructing 18-inch FRPM (Fiberglass-reinforced pipe) in a 36-inch RCP casing by microtunneling (1,223 LF) at an average depth of 28 feet to 30 feet; constructing new manholes; pavement restoration of all existing improvements; 18-inch force main tie-in near City of Los Angeles manhole and associated temporary bypass system; 1,600 LF of abandonment of portions of the existing dual force 12-inch and 18-inch mains; 1,230 LF of CCTV inspection; and demolition of Fox Hills pump station and the Overland pump station.

Septic-to-Sewer Project, Phase II
HI-DESERT WATER DISTRICT | YUCCA VALLEY, CA
Construction Manager. NV5 is serving as the Owner’s Representative and providing Construction Management services for Phase II of the District’s Septic-to-Sewer project in Yucca Valley. Identified by the Regional Water Quality Control Board as a priority area, the Town is transitioning from septic systems to a centralized wastewater system.

Following Phase I, which established the initial collection and treatment infrastructure, Phase II will expand the system to serve approximately 1,900 parcels with 170,000 feet of gravity pipelines. NV5’s role includes project management, funding support, procurement assistance for the progressive design-build team, peer review, technical oversight, and construction inspection. The project, with an estimated construction cost over $64M, is expected to be completed by the end of 2025.

CONTACT INFO
[email protected]

EXPERIENCE
9 years

EDUCATION
M.S. Civil Engineering
(Coastal Engineering)
B.S. Civil Engineering

LICENSES/CERTIFICATES
Certified Construction
Manager (CCM),
No. 43234
Qualified SWPPP
Developer (QSD) &
Qualified SWPPP
Practitioner (QSP),
No. 84350
Metrolink Railroad Safety
Contractor Safety Trained,
No. 26471E22
AWARDS
“Honors” AGC
Construction Project
Management Course,
San Diego, CA (January
2021)
Ralph Alan Dusseau
Award for Civil &
Environmental
Engineering, Glasboro,
N.J. (May 2016)

INDIA ALLEN, CCM, QSD/P
Construction Manager
Ms. Allen is a proactive, self-motivated Certified Construction Manager who has managed at-risk projects throughout Southern California. She is experienced in Microsoft Office, Procore, Primavera P6, Microsoft Projects, AutoCAD, and Bluebeam Revu. Her solid negotiation and communication skills along with proven project management skills allow her to effectively interact with clients as well as construction trades for a variety of public works projects.

Beyond Engineering NV5 | 1 Item Number: 9.

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RESUME
Cerritos Avenue & South Street Water Main Replacement
CITY OF ANAHEIM | ANAHEIM, CA
Assistant Engineer. Ms. Allen is part of the team providing engineering design services for the preparation of plans, specifications and cost estimates for the installation of new water mains at Cerritos Avenue and South Street. The project includes replacing existing 10-inch Cast Iron Pipe (CIP) and 6-inch Asbestos-Cement Pipe (ACP) with approximately 2,700 LF of new 12-inch Ductile Iron Pipe (DIP) from Brookhurst Street to Nutwood Street with four tie-in connections to existing water mains; replacing existing 8-inch CIP with approximately 350 LF of new 12-inch DIP from Disneyland Drive to Hazelwood Street with three tie-in connections to existing water mains; installing nine 12-inch gate valves and four fire hydrant assemblies on the new 12-inch mains; disconnecting and removing four hydrants on the existing mains; and replacing all existing lateral domestic water services on the existing 8- and 10-inch CIP and 6-inch ACP with new services on the 12-inch DIP.

Azusa Sewer Lift Station Upgrade Phase II Site Improvement CITY OF WEST COVINA | WEST COVINA, CA
Assistant Construction Manager. Ms. Allen is serving as Assistant Construction Manager for the Azusa Sewer Lift Station Upgrade Phase II Site Improvement project. Our team is providing construction management and inspection services for the project, which includes upgrading existing sewer pumps, equipment, controls, conduits wiring and appurtenances; storage capacity to provide backup emergency power in the event of power outages to mitigate risk of sewer system overflow; and SCADA monitoring that will provide feedback of pump disposition fluid levels, air system, alarms and additional information.

Crowther Sanitary Sewer Pipeline Replacement
CITY OF PLACENTIA | PLACENTIA AND FULLERTON, CA
Assistant Construction Manager. Ms. Allen served as Assistant Construction Manager for this project, which included replacement of approximately 7,400 LF of gravity sewer pipeline in Crowther Avenue, Placentia Avenue, and Orangethorpe Boulevard, located within the Cities of Placentia and Fullerton. The work involved installation of 15-inch, 18-inch, and 22-inch PVC and fused HDPE sewer pipeline and manholes. NV5 spearheaded the required coordination to Public Health Department and Golden State Water Company for those areas where the water/sewer separation could not be met for variances with alternate construction of the sewer pipeline. The work also included reconnection into all of the existing gravity mains and service laterals with a terminus tie-in connection at the existing Orange County Sanitation District’s trunk line on State College Boulevard. The project — which included a jack and bore encasement crossing underneath the 57 freeway, BNSF ROW, in Caltrans right-of-way — involved coordination with multiple agencies, including Caltrans, the Orange County Sanitation District, Golden State Water, Department of Health Services, the City of Fullerton, and other utility and governmental agencies. Working in high-traffic areas, as well as a jack-and-bore crossing underneath the Orange County Flood Control District’s flood control channel and a jack-and-bore crossing underneath the BNSF railroad, and multiple crossings of Southern California Gas Co.’s high-pressure gas feeder, were among the project’s challenges.

NV5 provided Construction Management, Inspection and Materials Testing Services for this project.

Bankfield Sewage Pump Station
CITY OF CULVER CITY | CULVER CITY, CA
Assistant Project Manager (Construction). As the General Contractor, Ms. Allen served as the Assistant Project Manager for the construction of the Bankfield Sewage Lift Station. This included creating the schedule and coordinating all work on site for the construction of the new lift station that receives diverted flows from two existing pump stations and potentially two additional pump stations at a later date. Construction included a new 10-foot-by-20-foot sewer wet well 35-feet deep constructed within the groundwater, meter vaults, and gravity mains with manholes. Additionally, the new lift station included new submersible pumps, backup system, over 4,000 feet of 28-foot-deep VCP force mains and mechanicals, HVAC systems, manholes, electrical equipment, a new generator and procuring an AQMD permit, PLC, MCC/VFDs, ATS to communicate with the new SCADA system, perimeter wall and landscaping for beautification, including gates and gate operators, electrical building, ATS, appurtenances, AC paving and grading. Ms. Allen coordinated with City officials, residences in the area, and managed all subcontractors and field crew for the construction of this project. Ms. Allen was responsible for all progress payments, scheduling, change orders, and RFIs on this project. This project is an American Public Works Association BEST Awards winner.

Beyond Engineering NV5 | 2 Item Number: 9.

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RESUME
Project Experience
Various Capital Improvement & Subdivision Projects
COACHELLA VALLEY WATER DISTRICT | COACHELLA VALLEY, CA
Chief Inspector. Provided QA/QC inspection services for domestic water, sanitary sewer, irrigation, drainage, and stormwater infrastructure. Oversaw construction of treatment plants, pump stations, reservoirs, wells, and pipeline systems.

Managed inspection staff and ensured compliance with plans, specifications, and regulatory requirements across hundreds of projects ranging from small right-of-way improvements to multi-million-dollar facilities.

Public Works Infrastructure & Pipeline Projects
PROTECH INSPECTION SERVICES | PALM DESERT, CA
Owner/Chief Inspector. Provides construction inspection services for public works and private development projects, including pipelines, appurtenances, and structural facilities. Responsible for QA/QC, contractor coordination, daily reporting, and ensuring adherence to project specifications, safety standards, and regulatory requirements.

Water/Wastewater Treatment & Facilities Construction
COACHELLA VALLEY WATER DISTRICT | COACHELLA VALLEY, CA
Construction Inspector/Chief Inspector. Inspected complex infrastructure including treatment plants, lift stations, and recharge facilities. Verified mechanical, electrical, and structural components while ensuring compliance with design documents and maintaining detailed inspection records.

ROLAND BUSTAMANTE
Construction Inspector
Mr. Bustamante brings over 31 years of public works construction inspection experience, including 18 years as Chief Inspector with the Coachella Valley Water District. He has led quality assurance and control efforts on hundreds of projects ranging from small-scale improvements to complex water and wastewater treatment facilities. Mr. Bustamante specializes in pipeline infrastructure, treatment systems, and public works construction, with strong expertise in plan review, compliance, and field coordination. He is a Registered Public Works and Engineering Inspector through ACIA and a Certified Building and Concrete Inspector through ICC, known for his leadership, attention to detail, and commitment to delivering high-quality projects.

EXPERIENCE
31 years

EDUCATION
A.A. Supervision and
Management
Human Resources &
Personnel Management
Certification

REGISTRATIONS
ACIA Registered
Construction Inspector
– Engineering & Public
Works (#5382)
ICC Certified Building
Inspector (#0883907-10)
ICC Special Inspector –
Reinforced Concrete
California Water
Distribution Operator
Grade 3 (#14538)
NASSCO PACP Certified
Cal EMA Inspector

AFFILIATIONS
Construction Management
Association of America
(CMAA) – Member
American Construction
Inspectors Association
(ACIA) – Former Chapter
President (6 years), 21-
year member
International Code Council
(ICC) – 15-year member
Beyond Engineering NV5 | 1 Item Number: 9.

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SR-26-071
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: May 5, 2026
Department: Community Development
Prepared by: Travis Clark, Community Development Director Subject: Professional Services Agreement with Scott Fazekas & Associates, Inc. to provide Building Plan Check Services, Building Official Services, Building Inspection Services, and CASp Services.

RECOMMENDATION:

Authorize the City Manager to execute a Professional Services Agreement between the City and Scott Fazekas & Associates, Inc. to provide Building Plan Check Services, Building Official Services, Building Inspection Services, and CASp Services up to an amount of $700,000 annually with a contingency of $150,000 annually for a total amount not to exceed $850,000 annually for a period of three (3) years with the option to renew for two (2) additional years.

BACKGROUND:

The City currently contracts with Scott Fazekas & Associates, Inc. (SFA) for building plan check, building official, building inspection, and Certified Access Specialist (CASp) services. These services are provided on an as-needed basis for the Building Division. The City collects plan check and building permit fees from developers and builders which cover the cost. Plan review services are required to be performed by consultants within ten (10) working days for the first review and five (5) working days for any subsequent review. The City also contracts with Wildan Group and Interwest Group to provide similar services for additional capacity and redundancy when needed.

DISCUSSION:

SFA currently provides mostly building plan check services for the City. In January, 2019 a Professional Services Agreement began with SFA for a four and a half year term at a not to exceed amount of $500,000 annually. On July 1, 2024, the agreement was amended to add a $100,000 annual contingency and allow for an annual extension. On July 1, 2025 the agreement was extended for an additional year. There are no additional amendments available and the agreement will expire on June 30, 2026. This new agreement will replace the current one and provides for similar services for three (3) years with the option to renew for a two (2) year additional period.

SFA has provided the City with reliable and thorough plan check services and consistently meets the ten (10) working day turn around time for first plan check review and five (5) working day turn around time frame for subsequent plan checks. Whether the project is a 650 square foot residential building addition or a new 650,000 square foot logistics building, such as Amazon, SFA meets the deadlines.

The City has some of the best plan review times in the Coachella Valley and builders complement the City on the services provided. SFA also provides part-time building official assistance services and Item Number: 10.

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SR-26-071
assisted in the recent update to the 2025 California Building Code. Assistance with ADA questions are handled through the CASp services on an as-needed basis. SFA does not currently provide building inspection services for the City.

The amount of the agreement is being increased from the not to exceed amount of $500,000 with a $100,000 contingency to a not to exceed amount of $700,000 with a $150,000 contingency. This is due to the increase in volume of plan reviews especially large logistics projects which are expected to increase over the next few years as more projects get entitled. There has also been an uptick in the amount of residential plan reviews. The fees for these services are paid for with building plan check fees which cover 100% of the costs i.e. this is a pass-through contract paid for by developers and builders. The fees are based on the International Code Council (ICC) valuation tables which are published and updated annually.

The City also has agreements with two (2) other consultants providing similar services. Wildan Group reviews solar system permits within the City and provides building inspection services on an asneeded basis. Their agreement continues to June 20, 2028. Interwest Group has provided building permit technician and inspection services in the past and their agreement ends in November 19, 2028.

FISCAL IMPACT:

As-needed building services are funded by fees paid for by the applicant at the time of plan submittal and approval. Any increase in the cost of services are covered by an increase in fees which is based on the ICC Valuation tables which are published and updated annually.

ATTACHMENTS:
111..SFA Professional Services Agreement 2026 - CLEAN
Item Number: 10.

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PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

THE CITY OF DESERT HOT SPRINGS,

A CALIFORNIA MUNICIPAL CORPORATION
AND
SCOTT FAZEKAS & ASSOCIATES, INC.

A CALIFORNIA CORPORATION
Form Approved June 2025
Item Number: 10.

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PROFESSIONAL SERVICES AGREEMENT FOR BUILDING

PLAN CHECK SERVICES, BUIDLING OFFICIAL SERVICES,

BUILDING INSPECTION SERVICES, AND CASP SERVICES

BY AND BETWEEN THE CITY OF DESERT HOT SPRINGS
AND SCOTT FAZEKAS & ASSOCIATES, INC.

This PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this 1st day of July, 2026, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, (“City”) and Scott Fazekas & Associates Inc. a California Corporation, (“Consultant”). For the purposes of this Agreement City and Consultant are sometimes hereinafter referred to as “Party” and collectively referred to as the “Parties.” RECITALS:

WHEREAS, the City desires to utilize the services of Consultant, as an independent contractor, to provide the City with Building Plan Check Services, Building Official Services, Building Inspection Services, and CASp Services (“Services”), as described in more particularity in Exhibit “A,” attached hereto and incorporated by reference as the “Scope of Services”; and
WHEREAS, Consultant represents that it is fully qualified to perform such Services by virtue of its experience and the training, education, and expertise of its principals and employees.

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS,

CONDITIONS AND PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE 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
Consultant shall provide to the City the Services 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 Exhibit A, “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 Consultant is responsible for providing any and all facilities, assets, and resources (including personnel, facilities, equipment, and software) necessary and appropriate for delivery of the Services and to Item Number: 10.

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meet the Consultant's obligations under this Agreement. Any City assets to which access is being provided for use by the Consultant (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 Consultant any representations or warranties regarding such assets.

Section 3. TERM
This Agreement shall commence as of July 1, 2026 and shall continue in force and effect until June 30, 2029. The City, at the City Manager’s discretion, shall have the option to extend the Agreement for an additional two years at the same compensation levels, unless earlier terminated or extended by written agreement of the Parties in accordance with Section 7 of this Agreement, subject to allocation of funds pursuant to a duly approved City budget.

Section 4. COMPENSATION
a. The City agrees to pay Consultant for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Consultant agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, One Hundred and Ten Dollars and Zero Cents ($110.00) per hour, subject to Section 2 of this Agreement, in a total amount not to exceed Seven Hundred Thousand Dollars and Zero Cents ($700,000.00) annually with a contingency of One Hundred Fifty Thousand Dollars ($150,000.00) for a not to exceed total annual amount of Eight Hundred Fifty Thousand Dollars ($850,000.00). b. If this Agreement is extended pursuant to this Agreement, the City shall pay the same rates specified in Exhibit A.

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

Item Number: 10.

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b. The Consultant shall submit invoices under this Agreement to:

Community Development Director
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
c. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.

Section 6. EXTRA WORK
At any time during the term of this Agreement, the City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by the City to be necessary for the proper completion of the Services, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform Extra Work without written authorization from the City.

The City Manager is delegated the authority to terminate the Agreement without cause.

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. DEFAULT
a. Failure or delay by any Party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the Party who is otherwise claimed to be in default by the other Party commences to cure, correct or remedy the alleged default within fifteen (15) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such Party shall not be deemed to be in default hereunder.

Item Number: 10.

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

Section 10. REMEDIES
If Consultant materially breaches any of the terms of this Agreement, the City’s remedies shall include, but shall not be limited to, the following:
a. Immediately terminate the Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; c. Retain a different Consultant to complete the Services that are not finished by Consultant.
d. Any and all remedies at law or in equity.

Section 11. 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 Item Number: 10.

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or any other default by the other Party.

Section 12. OWNERSHIP OF DOCUMENTS
All plans, studies, documents and other writings, including drafts, prepared by and for Consultant, its officers, employees and agents and subconsultants in the course of implementing this Agreement, except working notes and internal documents, shall become the exclusive property of the City upon creation and the City shall have the sole right to use, reuse, or otherwise dispose of such materials in its discretion without the permission of Consultant or further compensation to Consultant or to any other party.

Consultant shall, at its expense, provide such reports, plans, studies, documents and other writings in PDF format to the City upon written request, or such other electronic format as reasonably requested by the City.

Section 13. PROTECTION AND CORRECTION OF WORK
a. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages.
b. The performance of Services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to the City, when such inaccuracies are due to the fault of Consultant.

Section 14. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without prior written consent of the City, be used by Consultant for any purposes other than the performance of the services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Consultant 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 Consultant that is otherwise known to Consultant without breach of confidentiality obligations, is generally known in the industry through no fault of Consultant, or has become known to the related industry through no fault of Consultant shall be deemed confidential. This will not apply to routine communications regarding plan check correction lists as established by City Policy between applicants and consultant's engineers.

b. Consultant shall not use the City’s insignia or photographs relating to Consultant’s Services, or any publicity pertaining to the Consultant’s Services under this Item Number: 10.

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Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of the City.

Section 15. CONSULTANT’S BOOKS AND RECORDS
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to the City for a minimum period of five (5) years, or for any longer period required by law, and to the extent required by laws relating to audits of public agencies and their expenditures, from the date of final payment to Consultant pursuant to this Agreement. b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum of five (5), or for any longer period required by law, and to the extent required by laws relating to audits of public agencies and their expenditures from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant’s address indicated for receipt of notices in this Agreement. d. Where the City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, the City may, by written request of any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained at City Hall. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in-interest.

Section 16. INDEPENDENT CONSULTANT’S STATUS: NOT AGENT

OF THE CITY
Consultant shall at all times during the term of this Agreement remain, as to the City, a wholly independent contractor and shall perform the services described in this Agreement as an independent contractor and further, hereby waives any claims for any compensation, benefits, or other rights afforded to City employees and acknowledges that as an independent contractor, Consultant is not entitled to any City employee benefits or rights. Neither the City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as herein set forth.

Consultant shall be entirely responsible for the compensation and control of any Item Number: 10.

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assistants, employees, and subconsultants used by Consultant in providing said services. Nothing contained in this Agreement shall be deemed, construed or represented by the City or Consultant or by any third person to create the relationship of principal and agent and Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind the City to any obligation whatsoever, except for the purpose of interpreting and enforcing codes in a regulatory role as required under the terms of this Agreement.

Section 17. INDEPENDENT CONTRACTOR STATUS AND

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

Item Number: 10.

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

Section 18. CIVIL CODE SECTION 1542 WAIVER
Consultant acknowledges and 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. Consultant further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
__________
Initials
Section 19. 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 20. CONFLICTS OF INTEREST
a. Consultant (including principals, associates and professional employees) covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source or income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
b. Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
(1) Does not make or participate in:
(i) the making or any governmental decisions regarding
approval of a rate, rule, or regulation, the adoption or enforcement of laws;
Item Number: 10.

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(ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certificates, approvals, orders, or similar authorization or entitlement;
(iii) authorizing the City to enter into, modify, or renew a contract;
(iv) granting the City approval to a contract that requires City approval and to which the City is a party, or to the
specifications for such a contract;
(v) granting the City approval to a plan, design, report, study, or similar item; or
(vi) adopting, or granting City approval of, policies, standards, or guidelines for the City or for any subdivision thereof. (2) Does not serve in a staff capacity with the City and in that capacity participate in making a governmental decision or otherwise perform the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City’s Conflict of Interest Code under Government Code Section 87302.
c. In the event the City officially determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file the subject Form 700 with the City Clerk’s Office pursuant to the written instructions provided by the Office of the City Clerk.

Section 21. PROHIBITED INTERESTS
Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement.

Section 22. EQUAL OPPORTUNITY EMPLOYMENT
Item Number: 10.

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

Section 23. PROFESSIONAL ABILITY OF CONSULTANT;
WARRANTY; FAMILIARITY WITH WORK; PERMITS AND

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

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d. Consultant represents that it and all of its subconsultants, 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 credentials necessary for performing the services described in this Agreement, including a City business license and that such licenses are in good standing.

Section 24. INDEMNIFICATION
a. Consultant shall indemnify, protect, defend (with legal counsel reasonably acceptable to City) and hold harmless the City, any and all of its elected and appointed officials, officers, agents, employees, representatives and volunteers (“Indemnified Parties”) from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs, expenses and attorneys’ fees in connection therewith), arising out of the negligent performance of this Agreement. Consultant’s duty to indemnify and hold harmless City shall not extend to the City’s sole or active negligence or willful misconduct. b. The City does not, and shall not, waive any rights that it may have against Consultant under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. c. If Consultant should subcontract all or any portion of the Work to be performed under this Agreement, Consultant shall require each subconsultant to defend, indemnify, protect, defend the Indemnified Parties in accordance with the terms of the preceding paragraph.
d. Claims. Any claim by Consultant against City hereunder shall be subject to Government Code Sections 800 et seq. The claims presentation provisions of said Act are hereby modified such that the presentation of all claims hereunder to the City shall be waived if not made within six (6) months after accrual of the cause of action. e. In the event that Consultant or any employee, agent, or subconsultant of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.
f. This Section shall survive termination or expiration of this Agreement.

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Section 25. INSURANCE REQUIREMENTS
a. Policies. Consultant, at Consultant’s sole cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies:
(1) Worker’s Compensation Coverage. Consultant shall maintain Worker’s Compensation Insurance and 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, Consultant shall require each subconsultant 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 subconsultant’s employees. If any class of employees employed by Consultant pursuant to this Agreement is not protected by the California State Worker’s Compensation Law, Consultant shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Consultant has no employees performing work under this Agreement. Consultant agrees to waive its statutory immunity under any worker’s compensation or similar statute, as respecting the City, and to require any and all subconsultants and any other person or entity involved in the Services to do the same.
(2) General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence, combined single limit coverage for bodily injury, personal injury and property damage associated with work contemplated in this Agreement. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Consultant shall provide insurance on an occurrence, not claims-made basis. Consultant acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an “offense” while bodily injury and property damage coverage shall be triggered by an “occurrence” during the policy period. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CG 00 01 12 07 or any updated form thereof.
(3) Automobile Liability Coverage. Consultant shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Consultant arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) Item Number: 10.

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combined single limit for each occurrence, and two million dollars ($2,000,000) in the aggregate. As an alternative, Consultant shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Consultant were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof.
(4) Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant’s Services, whether such Services are performed by Consultant or by its employees, subconsultants, or sub-Consultants, to the extent such persons other than Consultant are permitted to perform any of the Services under this Agreement. The amount of this insurance shall not be less than one million dollars ($1,000,000) per claim, and two million dollars ($2,000,000) in the aggregate.
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 Consultant, including materials, parts or equipment furnished in connection with such work or operations.
(2) This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have shall be considered excess insurance only and shall not contribute with it. (3) This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
(4) The insurer waives all rights of subrogation against the City, its elected or appointed officials, officers, employees or agents. (5) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.
(6) The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days' written notice has been received by the City.

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c. Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the approval of City for any self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. During the period covered by this Agreement, only upon the prior express written authorization of the City Manager, Consultant may either reduce or eliminate such deductibles or selfinsured retentions with respect to City, its officers, employees, agents, and volunteers.

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

Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that coverage is provided in conformity with the requirements of this Section.
f. Maintain Coverages. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Consultant agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement has been eliminated. g. Failure to Obtain Coverages. Consultant agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by it or any subconsultants or others involved in any way with the performance of Services, to the extent such is permissible under this Agreement, Consultant shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City or its officers, employees, servants, volunteers, agents and independent contractors.

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h. Notice of Cancellation or Reduction in Coverage. In the event that any coverage required in this Agreement is canceled, reduced, limited, or materially affected in any other manner, Consultant shall provide written notice to the City either by facsimile and/or via certified mail, at Consultant’s earliest possible opportunity and in no case later than seven (7) calendar days after Consultant is notified of the change in coverage.

Section 26. 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: City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129

To Consultant: Scott Fazekas & Associate, Inc.
2 Corporate Park, Suite 206
Irvine, CA 92606
Telephone: (949) 475-2901
Facsimilie: (949) 475-2560
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 27. PRINCIPAL REPRESENTATIVES
a. Scott Fazekas shall be Consultant's Principal Representative and the person responsible for undertaking, managing and supervising the performance of all of the Services for this Agreement. Consultant's Principal Representative's experience, knowledge, capability and reputation were a substantial inducement for the City to enter into this Agreement, and as such, for the purposes of performing the Services, the duties of Consultant's Principal Representative shall not be reassigned, without the express written consent of both Parties.
b. The City Manager, shall be the Principal Representative of the City for purposes of communicating with Consultant on any matter associated with the performance of the services set forth in this Agreement.

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Section 28. REPRESENTATIONS OF PARTIES AND PERSONS

EXECUTING AGREEMENT
The person or persons executing this Agreement on behalf of Consultant represents and warrants that he/she/they has/have the authority to so execute this Agreement and to bind Consultant to the performance of its obligations hereunder.

Should signatory of this Agreement be unauthorized to bind Consultant, such signor shall be personally liable for the obligations set forth in this Agreement.

Section 29. USE OF RECYCLED PRODUCTS
Consultant 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.

Section 30. COMPLIANCE WITH LAWS
a. Consultant shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules in effect during the term of this Agreement.
b. Consultant shall at all times observe and comply with all such laws, ordinances, and regulations, and shall be solely responsible for any failure to comply with all applicable laws, ordinances, and regulations. c. Consultant further represents and warrants that the services provided herein shall conform to all ordinances, policies and practices of the City. d. Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall be liable, at law or in equity, as a result of any failure of Consultant to comply with this Section.

Section 31. 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 32. 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 Item Number: 10.

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or forum in Riverside County, California. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Riverside.

Section 33. LITIGATION EXPENSES AND ATTORNEYS’ FEES
In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof.

Section 34. ASSIGNMENT AND SUBCONTRACTING
a. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the written consent of the City. b. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the advance written consent of the City. If the City consents to such subcontract, Consultant shall be fully responsible to the City for all acts or omissions of the subconsultant. Nothing in this Agreement shall create any contractual relationship between the City and subconsultant 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 subconsultant other than as required by law.

Section 35. 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 36. SUCCESSORS AND ASSIGNS
This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.

Section 37. MODIFICATIONS AND AMENDMENTS
This Agreement may be modified or amended only by a written instrument signed by all Parties.

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Section 38. INTERPRETATION
This Agreement shall not be interpreted against either Party on the grounds that one of the Parties was solely responsible for preparing it or caused it to be prepared as both Parties were involved in drafting it.

Section 39. 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 40. ENTIRE AGREEMENT
a. This Agreement supersedes any and all other agreements, either oral or written, between the City and Consultant with respect to the subject matter of this Agreement.
b. This Agreement contains all of the covenants and agreements between the Parties with respect to the subject matter of this Agreement, and each Party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any party except those covenants and agreements embodied in this Agreement.
c. No agreement, statement, or promise not contained in this Agreement shall be valid or binding.

Section 41. 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 digital signatures shall be deemed the same as original signatures in accordance with California's Uniform Electronic Transactions Act (UETA) and shall have the same legal effect as original signatures.

Section 42. SEVERABILITY
If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein.

Section 43. OTHER GOVERNMENTAL REGULATIONS
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To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subconsultants shall comply with all applicable rules, regulations, and reporting requirements to which City is bound by the terms of such fiscal assistance program. Consultant acknowledges that failure to comply may result in loss of funding, and Consultant shall indemnify and hold harmless the City for any damages or losses resulting from Consultant's non-compliance.

Section 44. SURVIVAL
All obligations arising prior to any termination of this Agreement and all provisions, including but not limited to indemnification obligations, confidentiality requirements, and insurance obligations, shall survive any such termination. Such survival shall continue until all applicable statutes of limitations have expired.

Section 45. TIME OF THE ESSENCE
Time is of the essence in the performance of this Agreement. [Signature Page to Follow]
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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
_____________________________
Scott Matas, Mayor
_____________________________
Date
ATTEST:
_____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
_____________________________
Jennifer Mizrahi, City Attorney
Scott Fazekas & Associates, Inc.

By: _________________________
Name: Scott Fazekas
Title: President
Date: ________________________

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EXHIBIT “A”

SCOPE OF SERVICES
Consultant shall provide services as described in this Scope of Services and the manner in which they are performed will be in accordance with specific requirements of the City.

1. Review Plans for compliance with applicable model codes

2. Review plans for compliance with any state, federal or locally mandated regulations

3. for energy conservation and disabled access.

4. Preparation of written corrections submitted to the City and applicant.

5. Recheck and approval of the final plans after all corrections have been incorporated in the plans.

6. Submittal of approved plans and supporting documents to the City.

7. Additional staffing services when so assigned or requested by the City.

Building Plan Review
Perform both structural and non-structural plan review of residential, industrial, and commercial buildings for compliance to all local ordinances and state code amendments that pertain to local enforcement of building and safety, and for compliance to the adopted California Building Code, Plumbing and Mechanical Code, and Electrical Code. The scope of review may be subject to the direction of the City.

State Energy Regulations
Provide energy calculation review in accordance with the energy law requirements. Consultant will incorporate the proper documents in the plans for use by both the inspector and the builder, facilitating improved field regulations and quality of end product.

State Noise Ordinance
Provide checking to see that both interior (and exterior, when so directed by the City) noise intrusion are properly addressed by the designer and that the necessary assemblies provide the required degree of sound attenuation in accordance with State law. If noise contour maps are submitted, plan check as to whether or not the buildings are subject to such regulations.

Federal Flood Plain Regulations
The applicability of federal flood plain regulations shall be checked and addressed during the plan review stage. This alerts the developer at the earliest possible time in order for advance planning.

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Soils Engineering
Respond to the critical nature of proper building pad and site design as they apply to proposed structures by anticipating potential problems and addressing them at the plan review stage.

Consultant will review soils reports and verify implementation of their design recommendations and parameters into structural design of the building as part of the building plan review. When subject to Flood Plain or Liquefaction Zone criteria, consultant will review for such compliance when so directed by the City.

Certified Access Specialist
Consultant shall provide CASp certified plan check services including Disabled Access Regulations in Chapter 11-B and Multi-Family Disabled Access Regulations in Chapter 11-A as required under Senate Bill 1608. Consultant must have a CASP certified staff member to perform these portions of the plan checks. Consultant will be required to interpret and enforce state law and review requests for “Unreasonable Hardship” applications and recommend action should the City so desire.

General Assistance
Consultant will aid the City with general information and departmental assistance when needed in addition to providing plan check review services.

Effectively address the following:

A. Assist City staff in managing the plan check services for residential and nonresidential projects, regular interface with City staff and other City consultants, and attendance at meetings as necessary when work is in progress.

B. Communicate, cooperate and team with City staff and other City consultants as necessary.

C. Demonstrate the depth and breadth of the firm to provide a full range of plan check services capable of meeting the needs of any given private development or City initiated project.

D. Provide strong emphasis on the management of multiple projects and competing priorities while maintaining quality, meeting schedules and staying within budget.

Subconsultants may be utilized as necessary. The City must approve all subconsultants and does not permit the use of subconsultants that have not been approved by the City.

Methodology/Approach
Electronic Plan Submittal
Consultant shall have the technical computer-support staff, and an electronic plan review station to accept and review digital, electronic plan submittals. SFA uses both Blue beam and Adobe Acrobat format.

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Timely Performance
Consultant will maintain efficient turnaround times on all reviews since this is largely a measurement of performance. The turnaround time indicated is the date by which the plans are to be received back at the City.

Turn Around Times for residential and commercial, new construction, additions and remodels will be as follows: The deadlines are the time by which a project is completed, typed and shipped to allow a day shipping time.

Type of Job Turn Around Time First
Check
Turn Around Time ReCheck
Residential:

New Construction 10 Working Days 5 Working Days
Addition 10 Working Days 5 Working Days
Remodel 10 Working Days 5 Working Days
Non-Residential:

New Construction 10 Working Days 5 Working Days
Addition 10 Working Days 5 Working Days
Remodel 10 Working Days 5 Working Days
Extremely large or complex projects as agreed upon by City.

Consultant will accommodate preliminary reviews to facilitate more on-track projects at the time of the formal submittal for plan check when requested by the City staff. This will aid in timely turnaround times as well as good public relations.

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EXHIBIT “B”

FEES FOR SERVICES
SFA will charge the City seventy-five percent (75%) of the City’s Building Plan Check Fee. This is based on using the City’s Chart of Building Fees Based of Valuation of Project and the Valuation Data Chart published by the ICC on August 2025. When Valuation is not clear it shall be determined by the Community Development Director. No additional charges would occur for rechecks until 4th review unless the plans were deemed incomplete or were revised to the extent that the City would also be collecting additional fees. Such hourly charges would be based on a $110.00/hour rate.

Additional related services required by the City would be charged at an hourly rate which is mutually agreed upon in writing by both parties.

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SR-26-103
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: May 5, 2026
Department: Public Works
Prepared by: Daniel Porras, Deputy City Manager
Subject: Resolution Listing Projects to be Funded by Senate Bill 1 for Fiscal Year 2026-2027
RECOMMENDATION:

Adopt a Resolution of the City Council listing projects to be funded in Fiscal Year 2026-2027 by Senate Bill 1 (SB1)– Road Maintenance Rehabilitation Account (RMRA) Funds with an estimated amount of $1,500,000.

BACKGROUND:

On April 28, 2017, the Governor signed Senate Bill 1 (SB 1) the Road Repair and Accountability Act of 2017 into law. SB1 provides funds used to address road maintenance, rehabilitation and critical safety needs on both the state highways and bridges, and local streets and road system. SB 1 utilizes the per gallon fuel excise taxes; diesel fuel sales taxes and vehicle registration fees; and provides for inflationary adjustments to tax rates in future years.

A percentage of this RMRA funding will be apportioned by formula to eligible cities and counties for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system. It is important to note that all new revenues received through the increased Gas Tax must be dedicated to capital improvement projects, and cannot be used for personnel or other administrative costs. Cities and counties receiving RMRA funds must comply with all relevant federal and state laws, regulations, policies, and procedures. SB1 Established the following requirements for the program:
• Cities are required to submit to the California Transportation Commission (CTC) a list of projects proposed to be funded with these funds. All projects proposed to receive funding must be included in a city or county budget that is adopted by the City Council at a regular public meeting.
• The list of projects must include the description and location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement. • For each fiscal year in which RMRA funds are received and expended, cities and counties must submit documentation to the Commission that includes the description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvements.

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SR-26-103
DISCUSSION:

Based on the latest State Department of Finance projections, the projected revenue for RMRA funds for Fiscal Year 2026-2027 for the City of Desert Hot Springs is $933,283. This projected revenue was obtained from the Local Streets and Roads – Project FY2026-27 Revenues. The estimates are subject to change based on actual taxes received.

Staff has reviewed all eligible projects per the SB1 program requirements, including our proposed Capital Improvement Program (CIP) for Fiscal Year 2026-27, and our current Pavement Management Plan, and based on all of the criteria Staff is recommending incorporating the following projects to be funded in Fiscal Year 2026-2027 by Senate Bill 1 (SB1). • Palm Drive Improvements – I-10 to Camino Aventura in the amount of $ 900,000 • Citywide Slurry Project - $100,000
If approved an estimated total of $1,000,000 will be funded through SB1 – RMRA funds Description Amount
Estimated Fund Balance at end of Fiscal Year
2025/26) $ 91,195.00
Projected SB1 Funds FY 2026-27 $ 933,283.00
Total Funds Available FY 2026-27 $ 1,024,478.00
Staff recommends that City Council adopt a Resolution listing projects to be funded in Fiscal Year 2026-2027 by Senate Bill 1 (SB1)– Road Maintenance Rehabilitation Account (RMRA) Funds with an estimated allocation amount of $1,000,000.

FISCAL IMPACT:

If approved, an estimated total of $ 1,000,000 will be funded through SB1-RMRA funds for the 2026- 2027 fiscal year.

STRATEGIC ALIGNMENT:

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

Goal 10: Street/Road Infrastructure
Intense focus on fiscal and operational needs to ensure the city can meet the growing demands of the community by maintaining existing street/road infrastructure while planning for long-term growth and development.

ATTACHMENTS:
1) SB 1 Project List FY 2026-27
2) SB 1 Project List Resolution FY 2026-27
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SB1 Project List Fiscal Year 2026-2027
• Palm Drive Improvements – I-10 to Camino Aventura in the amount of $900,000 • Citywide Slurry Project - $100,000
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RESOLUTION NO._______
RESOLUTION ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2026-27

FUNDED BY
SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City, will receive an estimated $933,283.00 in RMRA funding in Fiscal Year 2026-27 from SB 1; and
WHEREAS, this is the tenth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and costeffective projects that also meet the communities priorities for transportation investment; and
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WHEREAS, the funding from SB 1 will help the City construct missing sidewalks, bike lanes, and rehabilitate Palm Drive, and Slurry Seal various roads Citywide, and many other similar Street Improvement Projects into the future; and WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an “at-risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good” condition; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology in recycling materials, will have significant positive impact to the City’s road network and overall community City-wide and positive co-benefits statewide.

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

1. The foregoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2026-27 Road Maintenance and Rehabilitation Account revenues:
a. Project Title: Palm Drive Improvements – Camino Aventura to I-10 Project Description: Design and Construction of new sidewalks, ADA ramps, streetlights, bike lanes, grind and overlay of asphalt, removal and replacement of asphalt, and striping markings, and construction of traffic signal at Palm Dr and 20th Avenue.

Project Location: Palm Drive I-10 Camino Aventura
Estimated Project Schedule: Start (7/26)– Completion (6/27) based on the component being funded with RMRA funds
Estimated Project Useful Life: 10-15 years
b. Project Title: Citywide Slurry Seal
Project Description: Asphalt road rehabilitation of various roads, including but not limited to crack seal, slurry seal, grind and overlay, reconstruction and striping.

Item Number: 11.

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Project Location: Various Roads Citywide
Estimated Project Schedule: Start (7/26)– Completion (6/27) based on the component being funded with RMRA funds
Estimated Project Useful Life: 5-10 years
Item Number: 11.

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* * * *
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Desert Hot Springs held on the 5th day of May, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:

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

Jennifer Mizrahi, City Attorney
Item Number: 11.

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SR-26-100
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: May 5, 2026
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of an Ordinance Amending Chapter 17.210 to Amend the Desert Land Ventures Specific Plan and Develop a Logistics Center
RECOMMENDATION:

Approve second reading, read by title only and adopt: "An Ordinance Amending Chapter 17.210 “Desert Land Ventures Specific Plan” to Title 17 “Zoning” of the Desert Hot Springs Municipal Code to Establish Zoning Standards and renaming the Specific Plan as the “DHS Varner Road Specific Plan.” BACKGROUND:

The ordinance was introduced for first reading on April 21, 2026.

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

FISCAL IMPACT:

The applicant has paid all required fees for the review and entitlement process and will be subject to all Building Permit fees, plan check fees, and property tax.

ENVIRONMENTAL ANALYSIS:

In accordance with CEQA Guidelines Section 15164, a Lead Agency is required to prepare an EIR Addendum to a previously certified EIR if some changes or additions to a project are necessary, but the proposed project modification do not require preparation of a subsequent EIR, as provided in Guidelines 15162. In addition, the proposed modifications cannot result in new or substantially more significant environmental impacts compared with the impacts disclosed in the previously certified 2018 EIR (SCH #2017051070). Based on the evaluation of information provided in the EIR Addendum, no new significant impacts would occur as a result of the proposed project, nor would there be any substantial increase in the severity of any previously identified adverse environmental impacts.

STRATEGIC ALIGNMENT:

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

Item Number: 12.

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Goal 1: Freeway Corridor
Take urgent and intentional steps to improve infrastructure and attract high quality development along the city’s freeway corridors, focusing on the highest and best use of land and zoning designations.

ATTACHMENTS:
1) Staff Report from April 21, 2026
2) Ordinance Amending Chapter 17.210
Item Number: 12.

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SR-26-072
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: April 21, 2026
Department: Community Development
Prepared by: Patricia Villagomez, Planning Manager
Subject: (Continued from April 7, 2026) A Resolution to: 1) Adopt an Addendum to the Desert Land Ventures Environmental Impact Report (SCH 2017051070, ENV 25-2); 2) Approve DHS Varner Road Specific Plan Amendment (SP 24-2), Amending the Desert Land Ventures Specific Plan in the City; 3) General Plan Amendment (GPA 24-1); 4) Tract Map (TM 25-1); 5) Design Review (DR 24-4), and 6) Approve an Ordinance Amending Chapter 17.210 to Amend the Desert Land Ventures Specific Plan and Develop a Logistics Center RECOMMENDATION:
1) Staff Report
2) Entertain questions of Staff from the City Council;
3) Open Public Hearing;
4) Take testimony from Applicant;
5) Take public testimony from those in favor;
6) Take public testimony from those opposed;
7) Take public testimony from those in a neutral position; 8) Opportunity for Applicant rebuttal;
9) Close the Public Hearing;
10) City Council discussion and questions to Staff; and 11) Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, to 1) Adopt an Addendum to the Environmental Impact Report (ENV 25-2); 2) Approve DHS Varner Road Specific Plan Amendment (SP 24-2), Amending the Desert Land Ventures Specific Plan In The City; 3) General Plan Amendment (GPA 24-1); 4) Tract Map (TM 25-1); 5) Design Review (DR 24-4); and 6) Introduce for first reading and read by title only: "An Ordinance Amending Chapter 17.210 “Desert Land Ventures Specific Plan” to Title 17 “Zoning” of the Desert Hot Springs Municipal Code to Establish Zoning Standards and renaming the Specific Plan as the “DHS Varner Road Specific Plan.” BACKGROUND:

The DHS Varner Road Specific Plan was originally approved on April 17th, 2018, by the City Council as the “Desert Land Ventures Specific Plan”. The approvals included certification of the Environmental Impact Report and Mitigation Monitoring Program, Specific Plan (01-16), General Plan Amendment (01-16), Zoning Ordinance Amendment (01-16), and Vesting Tentative Tract Map (37185) for the entitlements of a mixed-use cannabis development project.

Item Number: 12.

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The Desert Land Ventures Specific Plan (DLVSP) consisted of two (2) parcels with a total of 123.4 acres north and south of Varner Road. The Specific Plan consisted of two (2) Planning Areas, Planning Area 1 included approximately 1.9 million square feet of mixed commercial and industrial uses. Planning Area 2 was proposed to remain undeveloped and restricted to open space/conservation.

On March 24th, 2026, in a Special Meeting, the Planning Commission made a recommendation to the City Council for approval as presented.

On April 7th, 2026, per the applicant's request, the item was continued to a date certain of April 21st, 2026.

DISCUSSION:

On September 26th, 2024, the applicant Newland Capital Group submitted a Specific Plan Amendment (SP 24-2), a General Plan Amendment (GPA 24-1), Environmental application (ENV 25- 2), Tract Map (TM 25-1), and Design Review (DR 24-4), to amend the Desert Land Ventures Specific Plan.

The Specific Plan Amendment application is to modify the Specific Plan to allow up to 1.5 million square feet of logistics space and adjust the development standards and guidelines to support the proposed changes. The General Plan Amendment is to remove Mihalyo Road from the City’s Mobility and Infrastructure Element Roadway Plan. The Tentative Parcel Map proposes to subdivide the site into four (4) parcels, and the Design Review application is for the development of a distribution warehouse.

The Design Review application for the project proposes the development of approximately 1.16 million square feet of distribution warehouses on 123 acres of land, which is currently vacant and undeveloped, located north of Interstate 10 Freeway and approximately 2,800 feet west of the intersection of Palm Drive and Varner Road.

SETTING
The Zoning, General Plan Land Use designations, and current land uses for surrounding properties are as follows:

Zoning Designation Current Land Use
North Open Space - OS Vacant Land
West Residential Rural Desert R-RD Vacant Land
South Interstate 10 & City of Palm
Springs Vacant Land
East Commercial Business Park- CBP Vacant Land
The amended Specific Plan would rename the project to DHS Varner Road Specific Plan. The DHS Varner Road Specific Plan area is divided into three (3) planning areas. A breakdown of the Planning Areas can be found below:

Planning Area Land Use Acres (Gross) Max Sq. Ft.

Item Number: 12.

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Planning Area Land Use Acres (Gross) Max Sq. Ft.
1A Industrial 83.3 1,500,000
1B Storm Water Control 11.6 ---
2 Open
Space/Conservation 28.5 ---
Total 123.4 1,500,000
The planning areas provide a framework that would define the development potential, and land use, for each planning area. Planning area 1A, which is south of Varner Road, encompasses 83.3 acres of the Specific Plan. The Industrial land use district of this planning area accommodates a range of industrial uses currently permitted in the Light Industrial Zoning District.

Planning Area 1B, which is north of Varner Road, encompasses 11.6 acres of the Specific Plan. The Storm Water Control Land Use District of this planning area allows for the development of drainage, flood control channels, and basins that will protect the industrial development to be accommodated within Planning Are 1A. Development is not permitted in this planning area other than the drainage and flood control channels and basins.

Planning Area 2 encompasses 28.5 acres of the Specific Plan and is comprised of the Open Space/Conservation land use district. Planning Area 2 consists of two (2) separate but contiguous areas, the larger northern area, north of Varner Road (25.7 acres), and a smaller area, south of Varner Road in the northwestern end of the Specific Plan (2.8 acres). The entire planning area will be preserved and dedicated for open space conservation as part of the CVMSHCP Willow Hole Conservation Area.

SPECIFIC PLAN – DEVELOPMENT STANDARDS & REGULATIONS
The Specific Plan will set forth the development standards and regulations that apply to development projects, plans and activities, new development, building enhancements, landscape, signage, and infrastructure improvements within the Specific Plan Area. Land uses permitted shall be in accordance with Table 5-1 of the DHS Varner Road Specific Plan. The following is the Permitted Uses table with some of the uses listed within the Specific Plan.

DR – Design Review
CUP – Conditional Use Permit
NP – Not Permitted
CVCC Permit – Coachella Valley Conservation Commission
Land Use Planning Area (PA)
PA 1A
Industrial
PA 1B Stormwater
Control
PA 2 Open Space/
Conservation
Industrial
Mixed-Use Office
Industrial DR NP NP
Food Products DR NP NP
Light Manufacturing DR NP NP
Warehouse &
Distribution DR NP NP
Item Number: 12.

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Wholesale DR NP NP

UTILITIES, ENERGY FACILITIES, AND SERVICE SYSTEMS
Drainage & Flood
Control Facility DR DR CVCC Permit
Public Utility & Safety
Facilities DR NP CVCC Permit
Pipelines & Utility
Lines, Underground DR DR CVCC Permit
Telecommunications
Facilities, Major CUP NP CVCC Permit
Telecommunications
Facilities, Minor DR NP NP
Transit Stations &
Terminals CUP NP NP
The Development Standards can be found in Table 5-2 of the DHS Varner Road Specific Plan. The following shall apply to all development projects within project boundaries.

Standard/Regulation Planning Area (PA) & Land Use District PA 1A Industrial PA 1B Stormwater
Control
PA 2 Open
Space/Conservation
Gross Lot Area
(minimum) 20,000 sq. ft. ____ ____
Lot Coverage
(maximum) 75% ____ ____
Landscape Coverage
(minimum) 10% ____ ____
Distance between
buildings (minimum) 20 feet ____ ____
Street Setback
(minimum) 10 feet ____ ____
Interior Setback
(minimum) 0 feet ____ ____
Building Height (maximum) 1,2
Industrial 50 feet/ 2 Stories ____ ____
Parking Spaces Required (minimum)
Industrial
1/750 sq. ft. of the 1st
20,000 sq. ft.
1/2,000 sq. ft. for the
2nd 20,000 sq. ft.
1/4,000 sq. ft. for the
remaining sq. ft.
(Ref. footnote 3)
____ ____
Office 1/250 sq. ft. ____ ____
Floor Area Ratio 1.5 ____ ____
Item Number: 12.

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(maximum) 4

ARCHITECTURAL DESIGN GUIDELINES
The design guidelines and standards will provide general criteria, standards, and design objectives.

Section 6.1 of the DHS Varner Road Specific Plan outlines the detailed design elements and features that will encourage the highest level of design, quality, and creativity in site planning and architectural design, while allowing for variation and flexibility.

The proposed Design Review (DR 24-4) application proposes a 1,160,989 square foot distribution warehouse building to include 28,800 square feet of office space, standard automobile parking, tractor trailer parking, landscaping, open space, roadway improvements and drainage facilities. The single building will be equipped with 220 dock doors to facilitate the efficient loading and unloading of goods, of which, 109 docks are located on the north side of the building and 111 docks are located on the south side of the building.

The building will be designed with a concrete tilt-up wall system and a steel framed structural grid, allowing for large, open interior spans to maximize flexible storage space. A rectangular design will allow for loading and unloading on opposite sides of the buildings. To blend into the desert surroundings, the exterior will be painted in neutral tones such as a light beige (Sherwin Williams – Latte), white (Sherwin Williams – Ivory Lace), and greys (Sherwin Williams – Gaunlet). To break up the horizontal massing of the building, vertical stripping in these colors will be used intermittently. The entry doors will have a canopy installed above to shade the pedestrian entries, and the windows will have a dual glaze. The view of the loading docks are screened from the I-10 freeway with the use of masonry walls along the sections of the building with loading docks. The loading docks along Varner Road will be screened with a combination of topography and landscaping as the loading docks are at an elevation lower than Varner Road. The overall architecture is simple but modern, and the colors are appropriate to the design and intended to blend into the desert. The building conforms to the Development Standards established in the Specific Plan.

TRACT MAP
The proposed Tentative Parcel Map (TM 25-1) is for the subdivision to create four (4) parcels for the proposed industrial development and associated flood control facilities and open space areas. TPM No. 39143 will also establish the preliminary design for the required infrastructure (roadway improvements, utilities and flood control facilities) and the associated right of way dedications/easements, as well as the necessary grading to support the industrial development permitted by the Specific Plan. The following table indicates the breakdown of each parcel.

Parcel Land Use Gross Acres Net Acres
1 Industrial 83.3 81.2
2 Willow Hole
Conservation 25.7 25.7
3 Willow Hole
Conservation 2.8 2.7
4 Flood Control 11.6 10.5
TOTAL 123.4 120.1
 Excludes Right-of-Way Dedication Areas for Varner Road & West Drive Item Number: 12.

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SITE ACCESS, CIRCULATION & PARKING
The ability to access and circulate within the project area, is important to the proposed uses and users of the area. The Specific Plan focuses on establishing safe and efficient connections between the uses that would accommodate the area.

General Plan Amendment (GPA 24-1) proposes to completely remove Mihalyo Road from the Mobility and Infrastructure Element’s Roadways Plan. Mihalyo Road is currently identified as a “Collector” in the Plan, extending through the Specific Plan Area from its western terminus at Varner Road, easterly to Palm Drive.

Mihalyo Road, located adjacent to a high pressure gas line, would be a very difficult road to buildout as currently planned. It slices through many of the parcels to the east at odd angles, making them difficult to develop. In turn, it would be difficult for the landowners to build out the road as each would be responsible for only a triangular section of the road. A better solution would be to establish a grid network for the area between Palm Drive and West Drive that follows property lines. This would provide access to West Drive, and each property owner would be responsible for a half section of roadway as is typical in commercial development. For these reasons Mihalyo is proposed to be removed from the General Plan.

Various roadway classifications and improvements are proposed. West Drive, which is currently an unpaved road that forms the eastern boundary of the Specific Plan Area, will be improved as a part of the Specific Plan’s implementation. The proposed improvements to West Drive will not only provide vehicular access to the Specific Plan Area, but also improve access to the property to the southeast.

Varner Road will also be significantly improved going from a two (2) lane road to a four (4) lane modified Secondary I section. This section would include two (2) travel lanes in each direction, a center landscaped median that also incorporates left turn lanes into the project, a 10' meandering path on the north side of Varner providing a path along the conservation area, and a bike lane and sidewalk on the south side of Varner Road. There would be improvements at the Palm Drive and Varner Road intersection that would include double left turn lanes from Palm Drive to Varner Road, and left, through, and right turn lanes from Varner Road to Palm Drive. The applicant would be responsible for their fair share of the cost of these improvements.

Two (2) access points will be provided within the Specific Plan Area, primary and secondary. The primary access points proposed along Varner Road are anticipated to occur near the western end of the roadway. The secondary access points proposed along West Drive are anticipated to occur near the central and southern portions of the roadway.

Interstate 10 (I-10) would provide regional access to the proposed project via the Palm Drive exit, and local access would be provided via Varner Road- two (2) access points, and West Drive- two (2) access points. A parking analysis is provided below:

Proposed Use Square Feet Stalls Req. Stalls Provided
Warehouse 1,132,189 333
Office 14,400 57
Mezzanine 14,400 57
Total 1,160,989 447
661
Item Number: 12.

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Per the 2025 Cal Green Building Code Standards, 20% of the total parking spaces shall be Electric Vehicle Charging spaces in which 132 spaces have been dedicated of the 661 stall spaces provided.

The site has also provided 721 stalls for semi-trucks, and 220 dock spaces for loading and unloading.

COACHELLA VALLEY CONSERVATION COMMISSION – JOINT PROJECT REVIEW A Joint Project Review (JPR) process is defined in section 6.6.1.1 of the Coachella Valley Multiple Specifies Habitat Conservation Plan (CVMSHCP or Plan) for any potential development taking place in a Conservation Area that may impact Conservation Objectives. The JPR process allows CVCC to facilitate and monitor the implementation of the CVMSHCP and assist Permittees in meeting the Conservation Goals and Objectives of the Plan. The intention of the resulting consistency analysis is to confirm for the Permittee whether a proposed development project is consistent with Plan requirements, and in no way limits their land use authority.

The DHS Varner Road Specific Plan (Applicant) has proposed an industrial complex in the City of Desert Hot Springs (Permittee) at the southwest corner of Varner Road and West Drive. The site will include an approximately 1.16 million square foot distribution warehouse and a series of detention basins connected by on-site channels directing any floodwater to the southeastern most detention basin. The proposed distribution warehouse is located outside of any CVMSHCP designated Conservation Area and is therefore not subject to review under the JPR process, although land uses adjacency guidelines will apply to the westernmost extent of the complex, which does share a common boundary with the Willow Hole Conservation Area.

In order to mitigate potential flooding, the Applicant has proposed a flood control structure along the northern extent of Varner Road across from the proposed building. The structure consists of an excavated channel that will collect and direct floodwaters southeast to a detention basin at the northwest corner of Varner Road and West Drive. The channel bed width will be maintained at 16 feet along its length, with banks constructed at 3:1 grade. The channel width at the top of the banks varies, ranging from approximately 61 feet at its inception to approximately 83 feet at its midpoint, and continuing to widen before it discharges into the detention basin. The channel and basin will both maintain soft bottoms. The stormwater collected in this detention basin will be passed beneath Varner Road via three (3) 10-foot by 5-foot box culverts into the detention basins on the east boundary of the proposed warehouse parcel.

As part of the development, a dedication of right-of-way (ROW) will occur on either side of Varner Road for the purposes of eventual roadway widening and construction of a multimodal trail. The dedication would expand the current ROW from 62 feet to 92 feet. Westbound, the ROW would expand northward 15 feet and contain two (2) vehicle travel lanes and a Class I multimodal path along the northern boundary of Varner Road. Eastbound, the ROW would expand by 15 feet and include two (2) vehicle travel lanes, an 8-foot shoulder, and a sidewalk. Vehicle through lanes would be separated by a 16-foot median. The flood control structure and multimodal path are located within the Willow Hole Conservation Area and together constitute the Project for the purposes of CVCC's consistency review.

CVCC has found the Project, consisting of a flood control structure, and multimodal path within the Willow Hole Conservation Area, to be conditionally consistent with the CVMSHCP. The Permittee (City) has sufficient “Take Authorization” to permit the proposed disturbance and impacts to modeled habitat if they are within the Rough Step parameters. The Project can be brought into full consistency pending demonstration that Varner Road will not be widened within the Willow Hole Conservation Area, and upon execution of a legal instrument between CVCC and the Permittee authorizing the Item Number: 12.

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distribution of collected sands onto conservation lands adjacent to the site. Take Authorization is dependent upon the project's continued consistency with the CVMSHCP during the remaining planning and buildout, which can be met through adherence to the findings in CVCC's consistency determination.

OPERATION
The proposed project is anticipated to be occupied by a single tenant and is intended to be used primarily for the storage and/or consolidation of goods prior to distribution either to the consumer or other supporting facilities. The project will be operational 24 hours a day, 7 days a week. The operator anticipates having three (3) shifts with approximately 500 employees.

LANDSCAPING
Landscaping is proposed along the perimeter of the site on all sides, as well as in the vehicular parking areas. Approximately 14% of the site will be landscaped, which is in compliance with the 10% landscaping requirement contained within the Specific Plan. Landscape Design can be found in Section 6.8 of the Specific Plan. In the landscape plan, “Contemporary Desert” theme is created through the use of native and desert friendly species planted in masses of larger shrubs and trees.

Frontage streets and internal driveways within the Specific Plan Area will provide a cohesive landscape that unites the industrial park of the Specific Plan through the use of the “Contemporary Desert” theme.

Varner Road provides access to the Specific Plan Area from Palm Drive and I-10 and will create a first impression of the Specific Plan Area. The north side of Varner Road is adjacent to the Willow Hole Conservation Area and the natural vegetation within this conservation area is considered Sonoran mixed woody and succulent scrub, dominated by shrubs including Desert Agave, Brittlebush, Ocotillo, Pygmycedar, and Mojave Yucca. The south side of Varner Road will incorporate more trees and a wider variety of shrubs, groundcovers, and cactus. Below is a table indicating some of the proposed trees, and shrubs that will enhance the overall project and area.

Tree Name Quantity
Chilean Mesquite 24’’ Box Size 83
Australian Willow 24’’ Box Size 46
Southern Live Oak 24’’ Box Size 97
Desert Museum 24’’ Box Size 4
Chilean Mesquite 15 Gallon Size 153
Dwarf Olive Shurb 5 Gallon Size 72
Texas Ranger 5 Gallon Size 60
Chuparosa 5 Gallon 60

WALLS & FENCES
Walls and fences will be constructed to protect from wind and sand, provide screening of certain uses/areas, and increase safety and security. Per Section 6-20 of the DHS Varner Road Specific Plan, Design Guidelines and Standards, any walls and fences will need to minimize the visual impact while maximizing the function. The proposed warehouse will be installing a 10-foot tubular steel fence along the front (fronting Varner Road), and a 10-foot-high screen wall that will be painted to match the building with an ivory lace color to incorporate a visual element that will break up the wall expanse.

An 8-foot metal swing gate will also be provided for access. Walls are included to screen the truck bays on the south side of the building from the I-10 freeway. All walls and fences will be designed to Item Number: 12.

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minimize graffiti, with the use of special painting and/or planting materials along the fence line that will minimize access to the wall or fence.

PHASING PLAN
The development of the Specific Plan will all occur in one (1) phase. Development under the single phase will provide the infrastructure and utility systems needed to adequately serve the land uses to be developed.

UTILITIES AND SERVICES
The Specific Plan area is undeveloped desert land; no potable water infrastructure or systems exist on, or are immediately adjacent to, the Specific Plan area. The project area is located within the Coachella Valley Water District’s (CVWD) service area, and proposed water service will be provided by CVWD (subject to CVWD and Mission Springs Water District (MSWD) interagency discussions).

Currently CVWD does not have an existing water system in the vicinity of the project area to serve.

The nearest CVWD water systems are the Date Palm system and the Sky Valley system, which are approximately 4 and 3.5 miles away from the project area. As an optional water source, the property owner may consider using an onsite water well, or one nearby, that may provide water to the project area independent of MSWD and CVWD but is subject to approvals through Riverside County Environmental Health Department.

The project area has no wastewater (sewer) infrastructure or systems and lies within the CVWD service area. The southern boundary of Mission Springs Water District’s service area terminates approximately 0.5-mile northwest of the project site. As with water infrastructure, there is no wastewater infrastructure in the immediate area to provide wastewater service to the project site.

However, MSWD recently completed the construction of a Regional Wastewater Treatment Plant, which is located at the Little Morongo Road & 20th Avenue intersection, approximately one (1) mile northwest of the project area. Consequently, wastewater service could be provided to the project area by MSWD via an interagency agreement with CVWD. In the interim, the applicant may need to install a septic system subject to approvals through Riverside County Environmental Health Department.

All proposed public wastewater facilities and potable water systems will be shown on improvement plans and designed, constructed, and installed in accordance with any requirements and standards, subject to CVWD and MSWD interagency agreement.

NOTICING REQUIRMENT
The project was noticed to neighboring property owners within a 300-foot radius of the project site on Tuesday March 26th, 2026, and was advertised in the Desert Star on Wednesday, March 27th, 2026, per noticing requirements.

FISCAL IMPACT:

The applicant has paid all required fees for the review and entitlement process and will be subject to all Building Permit fees, plan check fees, and property tax.

ENVIRONMENTAL ANALYSIS:

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2018 EIR (SCH #2017051070). Based on the evaluation of information provided in the EIR Addendum, no new significant impacts would occur as a result of the proposed project, nor would there be any substantial increase in the severity of any previously identified adverse environmental impacts.

OPTIONAL:

A Specific Plan may be adopted only if all of the following findings are made:

1. The proposed plan is consistent with the General Plan; The original Specific Plan area consisted of two (2) land use designations, Rural Desert (RD) and Light Industrial (I-L). A General Plan Amendment (GPA 01-16) was initiated concurrently to ensure consistency between the Specific Plan and the Desert Hot Springs General Plan. The General Plan Amendment entailed a change in land use designations from R-D and I-L to Specific Plan 01-16 (Desert Land Ventures) in order to allow for more intense development envisioned and allowed by the Specific Plan. In order to support the design of the industrial development, a General Plan Amendment (GPA 24-1) was submitted to amend Figure MI-7, Roadways Plan, of the Desert Hot Springs Mobility and infrastructure Element. The amendment involves removal of Mihalyo Road as a Collector in order to accommodate the proposed industrial and development on properties to the east.

Staff recommends this finding.

2. The proposed plan would not be detrimental to the public interest, health, safety, convenience, or welfare of the City;
The proposed DHS Varner Road Specific Plan Amendment provides for development of a mixed-use commercial/industrial development and open space, including provisions for public and private improvements to address vehicular circulation, emergency services, as well as drainage, air quality and other environmental factors. The proposed Specific Plan implements General Plan economic goals through the establishment of policies and regulations supporting commercial and industrial development. Therefore, the proposal would not be detrimental to the public interest, health, safety, convenience or welfare of the City. Staff recommends this finding.

3. The subject property is physically suitable for the requested land use designation(s) and the anticipated land use development(s);
The proposed DHS Varner Road Specific Plan Amendment would amend the Desert Land Ventures Specific Plan for the vacant 123.4-acre site to support development of commercial/industrial uses and open space. The site is generally flat and shaped to allow for development according to the Specific Plan’s standards and guidelines. Public streets to the property from the east will be upgraded to provide adequate access. The physical constraint of flood plain area on the site has been mitigated with the integration of drainage channels and basins. The Specific Plan’s amendment to the Land Use Map provides for a mix of uses that are compatible with other industrial and commercial zones in the City.

Therefore, the subject parcel is physically suitable for the requested land use designation and anticipated development. Staff recommends this finding.

Item Number: 12.

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4. The proposed plan shall ensure development of desirable character which will be compatible with existing and proposed development in the surrounding neighborhood; and The proposed DHS Varner Road Specific Plan Amendment includes development regulations (zoning standards), design guidelines and review procedures to assure that future development of the site is of a desirable character, both functionally and esthetically.

These regulations, guidelines and procedures will also assure that the commercial and industrial uses allowed on the site are compatible with similar commercial and industrial development in the city and along the I-10 corridor. Therefore, the proposed plan ensures development of desirable character which will be compatible with existing and proposed development in the surrounding neighborhood. Staff recommends this finding.

5. The proposed plan will contribute to a balance of land uses so that local residents may work and shop in the community in which they live.

The proposed DHS Varner Road Specific Plan Amendment will provide a balance of land uses including commercial/industrial uses so that local residents may work in the community they live in. Staff recommends this finding.

General Plan Amendment Findings
An Amendment to the General Plan may be adopted only if all of the following findings are made:

1. That the proposed amendment is internally consistent with the General Plan; The proposed DHS Varner Road General Plan Amendment specifically removes Mihalyo Road as a Collector from the network in this area. This is being done at the request of the applicant and of Staff. Mihalyo Road as currently depicted would be a very difficult road to build. It sits atop a high pressure gas line, and slices through the surrounding parcels to the east at odd angles making them difficult to develop. The road itself would be difficult to develop given the triangular sections its layout would entail. Staff has put forward a preferred alternative grid system that provides better access to the interior in a manner that does not impact development as much as Mihalyo Road would. Therefore Staff supports the proposed amendment to the General Plan that removes Mihalyo Road, and therefore supports this finding.

2. That the proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City;
The removal of Mihalyo Road would not be detrimental to the public interest, health, safety, convenience or welfare of the City. A greater benefit would be to replace it with a grid pattern of local roads allowing access to interior landlocked parcels. This grid would actually improve safety by creating regular intervals between intersections and alternative means for fire and safety access. A grid would also be less impactful on adjoining parcels to the east making them more practical to develop. Therefore, the proposal would not be detrimental to the public interest, health, safety, convenience or welfare of the City. Staff recommends this finding.

Item Number: 12.

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3. That the proposed amendment would maintain the appropriate balance of land uses within the City; and
The proposed amendment to remove Mihaylo Road would improve the balance of land uses for those parcels east of the project site making development more practical and functional per their General Plan Land Use designation of "Commercial" and the Zoning designation of Commercial-Highway (C-H) and Commercial Business Park (C-BP). A grid network of local roads better enables a more logical buildout of this area. Staff recommends this finding.

4. That in the case of an amendment to the General Plan Land Use Map, the subject parcel(s) is physically suitable (including, but not limited to access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the requested land use designation(s) and the anticipated land use development(s).

The proposed DHS Varner Road Specific Plan Amendment would amend the previous Desert Land Ventures Specific Plan for the vacant 123.4-acre site to establish and support development of a mixed use commercial/industrial complex and dedicated open space. The site is generally flat and shaped to allow for development according to the Specific Plan’s standards and guidelines. Public streets to the property from the east will provide adequate access. The General Plan Amendment is meant to enhance compatibility with adjoining land uses. The physical constraint of flood plan are has been mitigated in the engineering design. Staff recommends this finding.

Tract Map Findings
The Commission shall deny the Tentative Map if it makes any of the following mandatory findings:

1. That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451;
The proposed Tentative Parcel Map subdivides two (2) existing lots into four (4) lots, plus streets, to allow and support the commercial/industrial development, including flood control with two (2) parcels to be included in the Willow Hole Conservation Area. The proposed map is designed to implement the Specific Plan Amendment, which includes a General Plan Amendment, Design Review, and EIR Addendum to incorporate the Specific Plan’s goals, policies, standards, regulations and guidelines into the General Plan. Consequently, the tentative parcel map is consistent with the General Plan and applicable DHS Varner Road Specific Plan Amendment. Staff believes this finding is not applicable.

2. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans;
The proposed Tentative Parcel Map subdivides two (2) existing lots into four (4) lots, in addition to roadway dedication, conservation, and for flood control management. The proposed new lots proposed by the tentative map will all comply with the minimum lot area standards for DHS Varner Road Specific Plan Amendment. In addition, the map proposes off-site street improvements and infrastructure plan that aligns with the City’s Item Number: 12.

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General Plan (as amended) and future growth. The parcels also facilitate the differentiation of conservation and development lands, thereby helping the City maintain its obligations under the CVMSHCP. Consequently, the proposed Tentative Map will fulfill the goals and policies of the General Plan and DHS Varner Road Specific Plan Amendment. Staff believes this finding is not applicable.

3. That the site is not physically suitable for the type of development:

The lot proposed by the Tentative Parcel Map for the distribution warehouse will be of a size (lot area), width, depth and surface (generally flat) to allow development, including accessory activities and features, such as vehicular access, drainage and flood control, and water and wastewater facilities. As proposed, the site appears physically suitable for the type of development with mitigation actions. Staff believes this finding is not applicable.

4. That the site is not physically suitable for the proposed density of development; The proposed Tentative Parcel Map will create a lot for development, having sufficient area and shape to allow for the development of a commercial/ industrial facility of approximately 1.2 million square feet, while also conforming to applicable development standards such as setbacks, height and parking. As proposed, the site is physically suitable for the proposed density of development. Staff believes this finding is not applicable.

5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat;
The proposed Tentative Parcel Map and associated DHS Varner Road Specific Plan Amendment has been re-evaluated for potential impacts to the environment. The impacts to the environment were identified in the projects Environmental Impact Report, and a statement of overriding was adopted in the original EIR by City Council to address the significant and unavoidable impacts associated with Air Quality, and Greenhouse Gas Emissions. Staff has evaluated the projects significant impacts and determined that the mitigation measures proposed are appropriate. Staff believes this finding is not applicable.

6. That the design of the subdivision or type of improvements is likely to cause serious public health problems;
The proposed Tentative Parcel Map and associated DHS Varner Road Specific Plan Amendment have been evaluated for potential impacts to public health, including geologic hazards, hazardous materials and emergency services. Two (2) significant impacts to the environment were identified in the project’s original Environmental Impact Report, that cannot be mitigated to a level of “less than significant”. Those are Air Quality, and Greenhouse Gas Emissions. Staff evaluated the projects significant impacts and determined that the mitigation measures proposed were appropriate and therefore, a Statement of Overriding Consideration was presented and adopted by City Council. Staff believes this finding is not applicable.

Item Number: 12.

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7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision.

The proposed Tentative Parcel Map will include a dedication of rights-of-way for public streets to provide vehicular access to the site and development. Improvements to Varner Road and the newly constructed West Drive will improve overall circulation and access throughout the project area. No other access easements have been identified as necessary for the site or surrounding area that would pass through or make use of the subject property. Staff believes this finding is not applicable.

Design Review Findings
The Planning Commission shall determine whether the project adequately meets adopted development standards and design guidelines, based upon the following findings:

1. The design of the proposed project would provide a desirable environment for its occupants and visiting public as well as its neighbors through good aesthetic use of materials, textures, and colors that will remain appealing and will retain a reasonably adequate level of maintenance.

The proposed design of the approximately 1.2 million square foot industrial building will be designed with synergistic style, and screened to minimize the potential for noise, air quality, and visual impacts from the freeway. Through the use of design, layout, placement, and orientation of the building, the project is expected to create a desirable environment for occupants, and visitors. The finishing materials on the exterior will be appealing and blend in with the desert mountains, while still retaining an adequate level of maintenance. Staff recommends this finding.

2. The design and layout of the proposed project will not unreasonably interfere with the use and enjoyment of neighboring existing or future development, and will not result in vehicular and/or pedestrian hazards; and
The design guidelines and standards within the DHS Varner Road Specific Plan Amendment, provides site design of buildings, circulation improvements, parking service and loading areas, and other design elements/features that will not interfere with the use of existing and future development within the commercially zoned vicinity.

Site access, circulation, and parking will be designed to clearly define routes and pathways in order to mitigate conflicts and provide safety for all users. Staff recommends this finding.

3. The architectural design of the proposed project is compatible with the character of the surrounding neighborhood and will maintain the harmonious, orderly and attractive development contemplated by this Zoning Ordinance and the General Plan.

The architectural design of the proposed building will be conscious of the natural surroundings, and composition will encourage variation, articulation, and details. The building elevations will include varied architectural design elements with a unified Item Number: 12.

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design theme that will maintain the harmonious, orderly and attractive development while breaking up the massing of the building. The building will provide appropriate and adequate variation in setbacks, building height, rooflines, frontal planes, massing, corner cuts, and building footprints in order to promote visibility and visual interest, and will be consistent with the Specific Plan. Staff recommends this finding.

STRATEGIC ALIGNMENT:

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

Goal 1: Freeway Corridor
Take urgent and intentional steps to improve infrastructure and attract high quality development along the city’s freeway corridors, focusing on the highest and best use of land and zoning designations.

ATTACHMENTS:

EXHIBIT 1- Resolution
EXHIBIT 2 - DHS Varner Road Specific Plan Amendment
EXHIBIT 3 - Draft Environmental Impact Report Addendum
EXHIBIT 4 - Mitigation Monitor Reporting Program
EXHIBIT 5 - Draft Conditions of Approval
EXHIBIT 6 - Ordinance Amending Chapter 17.210
EXHIBIT 7 - Architectural Plans
EXHIBIT 8 - Tentative Parcel Map
EXHIBIT 9 - General Plan Map
EXHIBIT 10 - Conceptual Landscape Plan
EXHIBIT 11- Site Photos
EXHIBIT 12 - Water Quality Management Plan
EXHIBIT 13 - Original Desert Land Ventures City Council Packet April 2018 EXHIBIT 14 - Certified Environmental Impact Report
EXHIBIT 15 - Comment Letter 1
EXHIBIT 16 - Comment Letter 2
EXHIBIT 17 - Comment Letter 3
Item Number: 12.

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ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS AMENDING CHAPTER 17.210 “DESERT LAND
VENTURES SPECIFIC PLAN” TO TITLE 17 “ZONING” OF THE

DESERT HOT SPRINGS MUNICIPAL CODE TO ESTABLISH ZONING

STANDARDS FOR THE DHS VARNER ROAD SPECIFIC PLAN AREA
(FORMALLY THE DESERT LAND VENTURES SPECIFIC PLAN
WHEREAS, the City of Desert Hot Springs (“City”) has a responsibility to plan and regulate the use of property within the City’s jurisdictional boundaries; and WHEREAS, the City has received an application to amend the Municipal Code through the adoption of the amendment to the former Desert Land Ventures Specific Plan, now proposed DHS Varner Road Specific Plan SP 24-2 (“Specific Plan”) for 123.4 acres of vacant property (APN 669-150-001 and -002), as well as supporting applications for General Plan Amendment (GPA 24-1), and Tentative Parcel Map (25- 1), Design Review 24-4 (collectively, “Project”); and
WHEREAS, the Desert Hot Springs Municipal Code (“DHSMC”) provides for the adoption of Specific Plans and related actions, as follows:
• Chapter 17.88 provides for the adoption of Zoning Ordinance Amendments;
• Chapter 17.100 provides for the adoption of General Plan Amendments; • Chapter 17.128 provides for the approval of Specific Plans; and WHEREAS, the City Council desires to amend Chapter 17.210 “Desert Land Ventures Specific Plan,” to provide a comprehensive set of zoning regulations to facilitate the development of the subject site, while at the same time ensuring that such development does not conflict with the General Plan, is not inconsistent with surrounding uses, and is not detrimental to the public health, safety and welfare; and WHEREAS, the City Council finds that the adoption of this proposed Ordinance has been adequately evaluated by the Addendum to the Environmental Impact Report prepared in accordance with the applicable provisions of the California Environmental Quality Act (CEQA), and that the City Council hereby adopted or adopts the Addendum; and
WHEREAS, the City Council finds this Ordinance is for the convenience and general welfare of the City; and
WHEREAS, the proposed adoption of this Ordinance is compatible with the general objectives of the General Plan and the DHS Varner Road Specific Plan, in that the subject uses and standards conform goals, policies and standards of the General Plan and Specific Plan; and
Item Number: 12.

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WHEREAS, the City’s Planning Commission held a public hearing on March 24, 2026, considered this Ordinance (along with the Project), and made a positive recommendation to the City Council; and
WHEREAS, on April 7, 2026, the City Council held a public hearing on this Ordinance (along with the Project), and after the public hearing adopted this Ordinance.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES ORDAIN AS FOLLOWS:

Section 1. RECITALS.

The Recitals are true and correct and are hereby incorporated by this reference.

Section 2. EVIDENCE
That the City Council has considered all of the evidence submitted into the administrative record, which includes, but is not limited to, the following:
(a) The City’s Municipal Code and its General Plan, including updates; (b) The documents that consist of the Project;
(c) All of the environmental documents;
(d) The prior Desert Land Ventures Specific Plan;
(e) The proposed Project to amend the Desert Land Ventures Specific Plan to the DHS Varner Road Specific Plan;
(f) Testimony and/or comments from all persons including the applicant and its representatives submitted to the City in both written and oral form at, or prior to, the public hearing conducted at the Planning Commission; (g) Planning Commission’s recommendation; and
(h) Public comments, both written and oral, received and/or submitted at, or prior to the City Council’s consideration of this Ordinance.

Section 3. AMENDING CHAPTER 17.210 “DHS VARNER ROAD SPECIFIC PLAN” TO TITLE 17 “ZONING”
Chapter 17.210 “DHS Varner Road Specific Plan” is hereby amended to Title 17 “Zoning” of the DHSMC as follows:

17.210.010. – DHS Varner Road Specific Plan Map
Item Number: 12.

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The area of the DHS Varner Road Specific Plan is set forth on the following map.

17.210.020 – Planning Areas PA-1 and PA-2 Permitted Uses The following tables for permitted uses and development standards shall govern within Planning Area 1A, 1B and Planning Area 2; any definition, procedure or other standard not contained within these tables shall be subject to the provisions of the Zoning Code.

Item Number: 12.

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17.210.030 – Planning Areas Development Standards
Item Number: 12.

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The following tables for permitted uses and development standards shall govern within Planning Areas 1A, 1B and Planning Area 2; any definition, procedure or other standard not contained within these tables shall be subject to the provisions of the Zoning Code.

17.210.040 – Review and Approval
A. All uses within the DHS Varner Road Specific Plan Planning Areas shall be subject to review and approval for conformance with this Chapter.

B. Uses which are indicated as “DR” (Design Review) shall require, for any related construction or development, review and approval by the Planning Commission, in accordance with Section 17.80 (Design Review).

C. Uses which are indicated as “CUP” (Conditionally Permitted) shall require review and approval by the Planning Commission in accordance with Section 17.76 Item Number: 12.

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(Conditional Use Permits).

D. Required findings for approval of Design Review (Section 17.80.040) or Conditional Use Permit (Section 17.76.050) shall include consideration of the Design Guidelines of the DHS Varner Road Specific Plan.

E. Uses which are indicated as “CVCC Permit” shall require a review undertaken by and between City of Desert Hot Springs and Coachella Valley Conservation Commission.

F. Uses which are indicated as “NP” (Not Permitted) shall be prohibited.

Section 4. ENVIRONMENTAL FINDINGS
The City, acting as Lead Agency reviewed and adopted an Environmental Impact Report (State Clearinghouse number 2017051070) prepared for the prior Desert Land Ventures project and determined that, following the implementation of certain mitigated measures, the requested General Plan Amendment and Specific Plan will not have a significant impact on the environment. Now, the Applicant submitted an application to amend the Desert Land Ventures project, as in the recitals. An analysis was prepared in conformance with California Environmental Quality Act (“CEQA”) Guidelines Section 15164 to determine whether and to what extent the previous EIR remains sufficient to address the potential impacts of the Project or whether additional documentation is required by CEQA Guidelines Section 15162. The conclusion of the analysis is that substantial evidence supports the conclusion that an Addendum to the EIR adopted by this Resolution is the appropriate environmental review document. All previously adopted mitigation measures in the EIR do apply and will continue to apply to the Project.

Pursuant to further analysis in the Addendum to the EIR reflects the City’s independent judgment and analysis of the potential for environmental impacts from the Project. The Addendum to the EIR demonstrates that: (a) there are no substantial changes proposed by the Project or in the circumstances in which the project will be undertaken that require major revisions of the EIR; (b) the proposed revisions do not require preparation of a new subsequent or supplemental Environmental Impact Report or Mitigated Negative Declaration, either due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and (c) the Project is consistent with the previous EIR and would involve only minor changes. The Addendum is attached to the Staff Report and all findings therein are incorporated.

The documents and other material which constitute the record on which this decision is based are located in the Department of Planning.

Section 5. GENERAL PLAN CONSISTENCY FINDINGS
The City Council finds this amendment is compatible with the general objectives of the General Plan and DHS Varner Road Specific Plan, in that the Item Number: 12.

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Desert Hot Springs City CouncilMay 5, 2026

Desert Hot Springs City Council
May 5, 2026