Desert Hot Springs City Council
May 5, 2026

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City of Desert Hot Springs
AGENDA

REGULAR MEETING OF THE CITY COUNCIL
and the City Council Serving as the Successor Agency to the Former Redevelopment Agency Board
Tuesday, May 5, 2026
5:30 PM - Presentations
6:00 PM - Regular Session
Council Chambers/City Hall
11-999 Palm Drive
Desert Hot Springs, California, 92240

Page
PRESENTATIONS - 5:30 P.M.

Recognition of the Desert Hot Springs High School Girls Basketball Team
Coachella Valley Disaster Preparedness Network Presentation Proclamation for National Public Works Week
REGULAR SESSION - 6:00 P.M.

CALL TO ORDER

ROLL CALL

INVOCATION

PLEDGE OF ALLEGIANCE

CITY ATTORNEY REPORT ON CLOSED SESSION

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

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

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

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

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

CITY MANAGER REPORT

MAYOR AND COUNCIL MEMBER REPORTS

CONFLICT OF INTEREST & LEVINE ACT DISCLOSURES
PUBLIC HEARINGS:

1. Urgency Interim Ordinance Adopting a Moratorium on the Issuance of Any License, Permit, or Entitlement for Dollar Stores, as Defined Located in Any Commercial District in the City
Jennifer Mizrahi, City Attorney
Recommendation:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take Public testimony of those in favor;
5) Take Public Testimony of those in opposition;
6) Take public testimony of those in a neutral position; 8) Close the Public Hearing;
9) City Council discussion and questions to Staff; and
10) Adopt (by four-fifths vote) an Urgency Interim Ordinance of the City Council of the City of Desert Hot Springs Adopting a Moratorium on the Issuance of Any License, Permit, or Entitlement for Dollar Stores, as Defined Located in Any Commercial District in the City.

Staff Report - SR-26-107 - Pdf
7 - 18

2. AB 2561 Employee Vacancies and Recruitment and Retention Efforts
Brent Jones, Human Resources Analyst
Recommendation:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony from those in favor;
19 - 27

5) Take public testimony from those opposed;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Receive and file the report.

Staff Report - SR-26-101 - Pdf
ADMINISTRATIVE CALENDAR:

3. Military Equipment Annual Use Report
Jeffrey Hattersley, Deputy Police Chief
Recommendation:

Approve the Desert Hot Springs Police Department 2025 Military Equipment Annual Use Report.

Staff Report - SR-26-097 - Pdf
29 - 45

4. Adoption of Remote Participation and Technology Disruption Policy (Government Code § 54953.4)
Jennifer Mizrahi, City Attorney
Recommendation: Adopt the Remote Participation and Technology Disruption Policy.

Staff Report - SR-26-099 - Pdf
47 - 51

5. Draft and Execute an Agreement with Tyler Technologies for Financial Operating Software
Geoffrey Buchheim, Administrative Services Director
Recommendation:

Authorize City Manager to draft and execute all necessary purchase agreements and all related documents with Tyler Technologies for the purchase and implementation of Tyler SaaS Financials.

Staff Report - SR-26-102 - Pdf
53 - 132
CONSENT CALENDAR:

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

6. City Council Regular Meeting Minutes: April 21, 2026 Jerryl Soriano, City Clerk
Recommendation: Approve the minutes as presented; or as corrected.

Staff Report - SR-26-105 - Pdf
133 - 139

7. Amending the Fiscal Year 2025-2026 Appropriations (Gann) Limit Geoffrey Buchheim, Administrative Services Director
141 - 147

Recommendation:

Adopt a Resolution of the City Council amending the Fiscal Year 2025- 2026 Appropriations Limit.

Staff Report - SR-26-098 - Pdf

8. Resolution of Intention for Placing Desert Valley Disposal Annual Billings for Services of Residential Properties on the County Tax Rolls, Fiscal Year 2026-27
Geoffrey Buchheim, Administrative Services Director
Recommendation:
1) Adopt a Resolution of the City Council Declaring the Intention to Levy Annual Billing for Desert Valley Disposal Inc., Solid Waste Refuse Services for Residential Properties on the County Tax Roll for the Fiscal Year 2026-27;
2) Approving the Attachment F Rate Schedule for July 1, 2026, Rate Year; and
3) Setting a Time and Place for the Public Hearing.

Staff Report - SR-26-106 - Pdf
149 - 209

9. Construction Management and Inspections Services for the Line C-1 Storm Drain Project, City Project 6003
Daniel Porras, Deputy City Manager
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.

Staff Report - SR-26-104 - Pdf
211 - 245

10. Professional Services Agreement with Scott Fazekas & Associates, Inc. to provide Building Plan Check Services, Building Official Services, Building Inspection Services, and CASp Services.

Travis Clark, Community Development Director
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.

Staff Report - SR-26-071 - Pdf
247 - 274

11. Resolution Listing Projects to be Funded by Senate Bill 1 for Fiscal Year 2026-2027
275 - 281

Daniel Porras, Deputy City Manager
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.

Staff Report - SR-26-103 - Pdf

12. Second Reading and Adoption of an Ordinance Amending Chapter

17.210 to Amend the Desert Land Ventures Specific Plan and Develop a Logistics Center
Jerryl Soriano, City Clerk
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.”
Staff Report - SR-26-100 - Pdf
283 - 307

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

ADJOURN

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

May 12 Planning Commission 6:00 p.m.

May 14 Public Safety Commission 6:00 p.m.

May 19 City Council Regular Meeting 6:00 p.m.
________________________________________________________________________________

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

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

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

Disclosure of Campaign Contributions (Levine Act - Government Code Section 84308) Pursuant to Government Code section 84308, members of the City Council are disqualified and not able to participate in any agenda item involving contracts (other than competitively bid contracts, labor contracts, or personal employment contracts with City employees), franchises, discretionary land use permits and other entitlements if the Councilmember received more than $500 in campaign contributions from the applicant or contractor, an agent of the applicant or contractor, or any financially interested participant who actively supports or opposes the City’s decision on the agenda item in the previous 12 months. Members of the City Council who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $500 to a Councilmember in the previous 12 months are required to disclose that fact for the official record of the subject agenda item and shall not make, participate in making, or in any way attempt to use their official position to influence the subject agenda item. Disclosures must include the amount of the campaign contribution and identify the recipient persons and may be made either in writing to the City Clerk prior to the subject hearing or by verbal disclosure at the time of the hearing.

SR-26-107
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: May 5, 2026
Department: City Attorney
Prepared by: Jennifer Mizrahi, City Attorney
Subject: Urgency Interim Ordinance Adopting a Moratorium on the Issuance of Any License, Permit, or Entitlement for Dollar Stores, as Defined Located in Any Commercial District in the City
RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take Public testimony of those in favor;
5) Take Public Testimony of those in opposition;
6) Take public testimony of those in a neutral position; 8) Close the Public Hearing;
9) City Council discussion and questions to Staff; and
10) Adopt (by four-fifths vote) an Urgency Interim Ordinance of the City Council of the City of Desert Hot Springs Adopting a Moratorium on the Issuance of Any License, Permit, or Entitlement for Dollar Stores, as Defined Located in Any Commercial District in the City.

BACKGROUND:

Pursuant to the authority granted the City of Desert Hot Springs (“City”) by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare and safety. Adoption and enforcement of comprehensive zoning regulations and other land use regulations lies within the City’s police power.

Currently the City has several extremely low discount stores, which stores are corporate or independently owned, which include but are not limited to 98 cent stores, Dollar General, Dollar Tree, and the like (“Dollar Stores”). Currently the City has a population of 32,000 people and, currently has 5 Dollar Stores, which is an over-saturation of these stores. The City Municipal Code does not specifically identify these Dollar Stores as permitted by right or as a conditional use, so there are currently no specific regulations to curb secondary negative effects to public, health, safety or welfare posed by them. There is a concern that the proliferation of these Dollar Stores, without further regulation, may have adverse impacts on the City, quality of life for surrounding areas, increased trash, loitering, graffiti, and other negative effects.

Item Number: 1.

SR-26-107
Absent clear regulation, Dollar Stores pose a current and immediate threat to the public health, safety, and welfare because such development could prompt an irrevocable downward shift in the economic and aesthetic value of commercial areas and impair economic development and other goals of the City. The City has made and continues to make every effort to improve the quality of life for its residents and image of the City.

To this end, the City Council approved a Strategic Plan envisioning several economic development, safety and beautification efforts for the Commercial Districts of the City. There are several goals of the Strategic Plan, that are set out in the proposed Ordinance. These goals in general include efforts to promote tourism, beautification efforts, as well as efforts to promote economic well-being of the City, its residents and visitors.

To the achieve the Strategic Plan goals listed above, efforts to promote tourism, high quality development, limit nuisances, and limit the oversaturation of Dollar Stores are important for the economic well-being of the City, its residents and visitors. In the process of such rehabilitation and revitalization of the City, the City needs time to examine the uses it deems appropriate for Commercial Districts to not only achieve economic prosperity, but also comply with the goals of the Strategic Plan.

Several people and business entities have expressed an interest in applying for entitlements, permits and licenses for Dollar Stores, which said use may be inappropriate to achieve the City’s goals of promoting tourism, beautification and economic prosperity. The City Council anticipates that some people or entities may be seeking to establish uses, such as Dollar Stores, that are not compatible with the vision that the City Council has for its commercial districts before a non-urgency ordinance would become effective. If the development of Dollar Stores were permitted to be continued in the Commercial Districts of the City without appropriate regulation, such use might be established in ways that could conflict the Strategic Plan goals (which was made available for review by the City Council by the office of the City Clerk and a copy of which was made available for review), conflict with surrounding uses, or be detrimental to the public health, safety and welfare; and if Dollar Stores were allowed to proceed as allowed under the current zoning, such use could conflict with, and defeat the purpose of the City Council objectives to promote tourism, beautification and high-quality economic development.

City staff needs time to develop appropriate development standards and study Dollar Stores to properly address secondary negative effects and he business in general.

DISCUSSION:

If approved, the proposed Ordinance would cause a temporary suspension of Dollar Stores in all Commercial Districts of the City . Further, no use permit, variance, building permit, or any other entitlement for use would be accepted, processed, approved or issued for the establishment or operation of Dollar Stores in Commercial Districts of the City. Adopting such proposed Ordinance would allow adequate time for the City to consider, study, and enact regulations for same.

If passed, such proposed Ordinance would take effect immediately. In order to adopt such an ordinance, the following must be done:
1) Adoption requires a four-fifths vote of the city council; Item Number: 1.

SR-26-107
2) The proposed Ordinance must contain findings, which are included with the proposed Ordinance, stating why the proposed Ordinance is needed to address a current and immediate threat to public health, safety, or welfare;
3) 10 days prior to the expiration of the proposed Ordinance or any extension thereof, the Council shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of the proposed Ordinance
The proposed Ordinance has an initial term of 45 days, unless it is extended by four-fifths vote of the Council. The proposed Ordinance can be extended by the City Council for a period of time up to 22 months and 15 days, for a total of 2 years.

ENVIRONMENTAL ANALYSIS:

The City Council finds that adoption of this urgency interim ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Title 14 California Code of Regulations section 15061, subsection (b)(3), in that the proposed ordinance involves a proactive measure to prohibit Dollar Stores in Commercial Districts does not have the potential to significantly impact the environment.

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.

Goal 3: Downtown District
Revitalize the Downtown Art and Culture District to attract events, promote business development and enrich the art and culture experience for both Desert Hot Springs residents and visitors.

Goal 4: Public Safety - Staffing and Community Policing Enhance the quality of life for our residents and staff by establishing appropriate law enforcement staffing levels and implementing community policing initiatives.

Goal 6: Community Beautification
Focused execution of beautification efforts city-wide via enforcement measures and the abatement of illegal dumping.

Goal 8: Community Services, Engagement and Quality of Life Provide for high-quality programs, events and activities that promote and provide community engagement, pride, quality of life services and arts and culture in the City of Item Number: 1.

SR-26-107
Desert Hot Springs.

ATTACHMENTS:
1) URGENCY Interim Ordinance Moratorium Dollar Stores
Item Number: 1.

ORDINANCE NO. ___

URGENCY INTERIM ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF DESERT HOT SPRINGS ADOPTING A MORATORIUM ON

THE ISSUANCE OF ANY LICENSE, PERMIT, OR ENTITLEMENT FOR

DOLLAR STORES, AS DEFINED LOCATED IN ANY COMMERCIAL

DISTRICT IN THE CITY
WHEREAS, pursuant to the authority granted the City of Desert Hot Springs (“City”) by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare and safety; and
WHEREAS, adoption and enforcement of comprehensive zoning regulations and other land use regulations lies within the City’s police power; and WHEREAS, currently the City has several extremely low discount stores, which stores are corporate or independently owned, which include but are not limited to 98 cent stores, Dollar King, Dollar Tree, and the like; for purposes of this Ordinance, these stores will generally be referred to as “Dollar Stores”; and WHEREAS, currently the City has a population of 32,000 people and, currently has 5 Dollar Stores, which is an over-saturation of these stores; and WHEREAS, the City Municipal Code does not specifically identify these Dollar Stores as permitted by right or as a conditional use, so there are currently no specific regulations to curb secondary negative effects to public, health, safety or welfare posed by them; and
WHEREAS, there is a concern that the proliferation of these Dollar Stores, without further regulation, may have adverse impacts on the City, quality of life for surrounding areas, increased trash, loitering, graffiti, and other negative effects; and WHEREAS, Dollar Stores may inhibit the upgrading of commercial areas in the City; and
WHEREAS, absent clear regulation, Dollar Stores pose a current and immediate threat to the public health, safety, and welfare because such development could prompt an irrevocable downward shift in the economic and aesthetic value of commercial areas and impair economic development and other goals of the City; and WHEREAS, the City has made and continues to make every effort to improve the quality of life for its residents and image of the City; and Item Number: 1.

WHEREAS, the City City’s General Plan, Policy ED-1.2 Retail Development, provides “Support retail development that meets the community’s needs in appropriate locations, to prevent the leakage of local expenditures to neighboring Communities”; and
WHEREAS, study on Dollar Stores needs to happen to determine if this policy is being met; and
WHEREAS, the City City’s General Plan, Policy LU-4.1: Central Business District provides, “Require new development to be pedestrian friendly and oriented toward Pierson Boulevard and Palm Drive to allow retail, commercial services, and experiential uses to contribute to a thriving Downtown environment”; and WHEREAS, study on Dollar Stores needs to happen to determine if this policy is being met; and
WHEREAS, to this effort, the City recently adopted a Strategic Plan for the City; and
WHEREAS, in the Strategic Plan the City Council sets forth the Vision of the City which is, “The City of Desert Hot Springs is a world- class health and wellness destination based upon its famous miracle waters, unique desert ecosystem, spectacular mountain views, and natural environment; and WHEREAS, Area of Focus Number 1 of the Strategic Plan provides that the City “take urgent and intentional steps to…attract high quality development along the City’s freeway corridors, focusing on the highest and best use of land and zoning designations;” and
WHEREAS, as action items for Area of Focus Number 1, the City shall prioritize commercial developments along the I10; and
WHEREAS, it would appear that Dollar Stores do not comport with this Area of Focus Number 1 because such stores are not high quality development, but study is needed to determine so; and
WHEREAS, Area of Focus Number 3 of the Strategic Plan is to revitalize Downtown Art and Culture District to attract events, promote business development and enrich the art and cultural experience in the City; and WHEREAS, Area of Focus Number 3 also promotes downtown arts, downtown beautification and sign programs, small businesses, and the like; and Item Number: 1.

WHEREAS, the Downtown District is one of several commercial districts in the City, but in particular, the City Council desires to activate downtown events and create spaces to bring and attract residents and tourists; and WHEREAS, proliferation of Dollar Stores, specifically in the downtown commercial area does not comport with the goals of the Strategic Plan; and WHEREAS, Area of Focus Number 4 of the Strategic Plan sets forth the goal of enhanced quality of life for the City’s residents by establishing appropriate law enforcement staffing levels; and
WHEREAS, studies need to be done on Dollar Stores to better assess the impact they have on community policing; and
WHEREAS, Area of Focus Number 6 of the Strategic Plan sets forth the goal of enhanced beautification City wide, including code enforcement, maintaining shopping centers and litter and trash management; and
WHEREAS, litter, trash, overgrown weeds, and general nuisances are generally seen in the shopping centers that have these Dollar Stores, which items harm the City and do not support Area of Focus Number 6; and
WHEREAS, further studies need to be done on Dollar Stores to better assess the impact they have on beautification; and
WHEREAS, Area of Focus Number 8 of the Strategic Plan sets forth the goal, among other things, of quality of life and quality of life services and arts and culture; and WHEREAS, as a specific action item of Area of Focus Number 8 is “focus effort to Improve the City’s regional image”; and
WHEREAS, an over-saturation of Dollar Stores does not promote a high quality of life, nor does it improve the City’s regional image; but, instead promotes low-quality development; and
WHEREAS, to the achieve the Strategic Plan goals listed above, efforts to promote tourism, high quality development, limit nuisances, and limit the oversaturation of Dollar Stores are important for the economic well-being of the City, its residents and visitors; and
WHEREAS, in the process of such rehabilitation and revitalization of the City, the City needs time to examine the uses it deems appropriate for Commercial Districts to not only achieve economic prosperity, but also comply with the goals of the Strategic Plan; and
Item Number: 1.

WHEREAS, several people and business entities have expressed an interest in applying for entitlements, permits and licenses for Dollar Stores, which said use may be inappropriate to achieve the City’s goals of promoting tourism, beautification and economic prosperity; and
WHEREAS, the City Council anticipates that some people or entities may be seeking to establish uses, such as Dollar Stores, that are not compatible with the vision that the City Council has for its commercial districts before a non-urgency ordinance would become effective; and
WHEREAS, if the development of Dollar Stores were permitted to be continued in the Commercial Districts of the City without appropriate regulation, such use might be established in ways that could conflict the Strategic Plan goals (which was made available for review by the City Council by the office of the City Clerk and a copy of which was made available for review), conflict with surrounding uses, or be detrimental to the public health, safety and welfare; and if Dollar Stores were allowed to proceed as allowed under the current zoning, such use could conflict with, and defeat the purpose of the City Council objectives to promote tourism, beautification and high-quality economic development; and
WHEREAS, City staff needs time to develop appropriate development standards and study Dollar Stores to properly address secondary negative effects and the business in general; and
WHEREAS, the local police power includes broad authority to determine, for purposes of public health, safety, and welfare, the appropriate uses of land within a local jurisdiction's borders; and
WHEREAS, the City Council desires, on an urgency basis, to prohibit Dollar Stores in all Commercial Districts of the City; and
WHEREAS, pursuant to Government Code Section 65858(d), ten days prior to the expiration of this interim ordinance or any extension, the City Council shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of this ordinance (“65858(d) Report”); and
WHEREAS, California Government Code Section 65858 provides the statutory authority and time limits for interim ordinances prohibiting any uses which may be in conflict with a contemplated general plan, specific plan or a zoning proposal which the City plans to consider, study or intends to study within a reasonable time; and WHEREAS, Government Code section 36937 provides that the City may adopt an ordinance that takes effective immediately when adopted for the immediate preservation of the public peace, health or safety, providing the ordinance contains a declaration of the facts constituting the urgency, and is passed by a four-fifths vote of the city council.

Item Number: 1.

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

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

Section 2. EVIDENCE
That the City Council has considered all of the evidence at its meeting, which includes, but is not limited to, the following:
(a) The City's General Plan, including updates;
(b) The City’s Municipal Code;
(c) Strategic Plan;
(d) The staff report; and
(e) The public comments, both written and oral, received and/or submitted at, or prior to the City Council's consideration of this extension of urgency interim ordinance.

Section 3. FINDINGS
That based on the foregoing recitals and evidence, the City Council finds as follows:
(a) The recitals of this ordinance are hereby incorporated in this Section as findings.
(b) State law protects local licensing practices, zoning ordinances, and other local actions taken pursuant to the City’s constitutional police power. (c) The local police power includes broad authority to determine, for purposes of public health, safety, and welfare, the appropriate uses of land within a local jurisdiction's borders.
(d) The City needs to properly study the impacts of Dollar Stroes in the Commercial Districts and develop the zoning, uses, regulations, and development standards that will be associated therewith.

Section 4. CONCLUSIONS
That based on the foregoing recitals, evidence and findings, the City Council concludes as follows:
(a) It is necessary to temporarily suspend the processing of any application or approval of any permit, entitlement or license, for any kind of Dollar Store in any Commercial District of the City and to allow adequate time for the City to consider, study, and enact regulations same.
(b) A temporary moratorium will provide the City with time to consider, study, draft, and adopt proper zoning, uses, development standards and regulations regarding Dollar Stores in a manner that is consistent with the General Plan, Strategic Plan, and Item Number: 1.

Municipal Code, compatible with surrounding neighborhoods, and in the best interests of the residents of the City.

Section 5. INTERIM MORATORIUM IMPOSED
For a period of 45 days from May 5, 2026, commencing on the date of adoption of this Ordinance, subject to any extension of this ordinance that the City Council may adopt and approve pursuant to Section 65858 of the Government Code, no use permit, variance, building permit, or any other entitlement for use shall be accepted, processed, approved or issued for the establishment or operation of a Dollar Store in any Commercial District.

Section 6. URGENT NEED
Based on the foregoing recitals, evidence, findings and conclusions which are all deemed true and correct, this interim ordinance is urgently needed for the immediate preservation of the public safety, health, and welfare.

Section 7. REPORT
Pursuant to Government Code Section 65858(e), ten (10) days prior to the expiration of this interim ordinance or any extension, the City Council shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of this ordinance.

Section 8. ENVIRONMENTAL FINDINGS
The City Council finds that adoption of this urgency interim ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Title 14 California Code of Regulations section 15061, subsection (b)(3), in that the proposed ordinance involves a proactive measure to prohibit Dollar Stores in Commercial Districts does not have the potential to significantly impact the environment.

Section 9. SEVERABILITY
That should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 10. AMENDING OF BAIL SCHEDULE

That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such Item Number: 1.

necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 11. EFFECTIVE DATE
That this interim ordinance is an urgency ordinance for the immediate preservation of the public health and safety and it shall be passed and become effective immediately upon its introduction pursuant to California Government Code Section 36937.

Section 12. EXPIRATION
Unless extended in accordance with California Government Code Section 65858, this ordinance shall be of no further force or effect after 45 days from the date of its adoption.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 1.

PASSED AND ADOPTED by at least four-fifths of the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2026 by the following vote:

Ayes:

Noes:

Abstain:

Absent:
_______________________________
Scott Matas, Mayor
ATTEST:
____________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
____________________________________
Jennifer Mizrahi, City Attorney
Item Number: 1.

SR-26-101
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: May 5, 2026
Department: Human Resources
Prepared by: Brent Jones, Human Resources Analyst
Subject: AB 2561 Employee Vacancies and Recruitment and Retention Efforts RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony from those in favor;
5) Take public testimony from those opposed;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Receive and file the report.

DISCUSSION:

To meet the requirements of AB 2561, the City is required to present the status of vacancies in a public hearing before their governing body at least once per fiscal year. The presentation must be made prior to the adoption of a final budget. This report must also address the recruitment and retention efforts currently employed by the public agency. During this presentation, the public agency is also required to identify any changes to policies, procedures, or recruitment activities that could lead to obstacles in the hiring process.

Additionally, if the number of vacancies exceeds 20% of the total number of authorized full-time positions in a particular bargaining unit, the public agency shall include the following information in its presentation upon request of the recognized employee organization:
1) The total number of job vacancies within a bargaining unit. 2) The total number of applicants for vacant positions within the bargaining unit. 3) The average number of days to complete the hiring process form when a position is posted. 4) Opportunities to improve compensation and other working conditions.

Item Number: 2.

SR-26-101
Currently, none of the cities’ bargaining units have vacancy rates exceeding 20%, so this additional reporting is not required for this public hearing.

AB 2561 requires that recognized employee organizations shall be entitled to make a presentation before the governing board of a public agency during the same public hearing in which the public agency makes its annual presentation on vacancies.

AB 2561 further provides that the new law may not prevent a City Council from holding additional public hearings about vacancies.

FISCAL IMPACT:

None.

STRATEGIC ALIGNMENT:

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

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

ATTACHMENTS:
1) HR AB 2561 Report
Item Number: 2.

AB 2561 PUBLIC HEARING
City Vacancies, Recruitment, and Retention Efforts
May 5, 2026
Presented by Brent Jones, M.S.

Human Resources Analyst
Item Number: 2.

OVERVIEW
AB 2561
Requirements
2025
Vacancy
Report
Recruitment
and
Retention
Efforts
Item Number: 2.

AB 2561 REQUIREMENTS
• Public agencies must present vacancy status and
recruitment/retention efforts.
• Presentations must occur at least once per fiscal year. • Employee organizations have the right to present at the hearing.
• If the number of vacancies with a single bargaining unit meets or exceeds 20% of the total number of authorized fulltime positions, we may be required to provide additional information if the employee organization requests it.

Item Number: 2.

 For 2025-2026, City of Desert Hot Springs had 143 authorized fulltime positions.  In 2025 (January – December) twenty-nine (29) distinct positions were posted, and forty-four (44) new employees were hired. 2025 VACANCY REPORT
Item Number: 2.

2025 Vacancy Report Data - DHSEU
Bargaining Unit Positions Recruited
(numbers in parentheses indicate employees hired for each position) DHSEU (14) • Animal Care Center Technician (1)
• Lead Animal Care & Control Officer (1)
• Animal Care & Control Officer (1)
• Animal Care & Control Assistant (1)
• Engineering Technician (1)
• Counter & Permit Technician I & II (2)
• Code Compliance Officer (1)
• Dispatcher (1)
• Administrative Assistant (2)
• Maintenance Technician (1)
• Maintenance Technician/Custodian (1)
• Receptionist (1)
• Senior Services Assistant (1)
• Community Service Officer (3)
Item Number: 2.

2025 Vacancy Report Data
Bargaining Unit Positions Recruited
(numbers in parentheses indicate employees hired for each position) DHSPOA (2) • Police Officer (10)
• Police Officer Trainee (1)
Non-Represented (13) • Deputy Chief (1)
• City Engineer (0)
• Associate Engineer (1)
• Economic Development Manager (1)
• Payroll and Finance Administrator (1)
• Accountant (1)
• Finance Technician (1)
• Management Analyst (1)
• Lifeguard Supervisor (0)
• Lifeguard (8)
• Per Diem/Recreation Center Aide/Teacher (3 )
• Per Diem Recreation Center Aide/Coach (0)
• Part Time Recreation Center Program Teacher (3)
Item Number: 2.

● Recruitment:
○ Provide exceptional customer service to all applicants. ○ Offer competitive compensation and a comprehensive benefits package. ○ Special incentive pay for bilingual skills and education certificates and degrees. ○ Use strategic job postings across multiple websites and social media platforms. ○ Engagement with professional networks and associations to expand outreach. ● Retention:
○ Modernize policies and MOU’s to reflect current best practices. ○ Conduct a 90-day follow-up with Human Resources.
○ Employee recognition programs.
○ Demonstrate a commitment to internal promotion.
○ Competitive compensation and benefits in alignment with the regional market. ○ Provide in-person orientation process and onboarding support. ○ 4-10 work schedule.
○ Opportunities to participate, learn, and grow.

RECRUITMENT AND RETENTION EFFORTS
Item Number: 2.

SR-26-097
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: May 5, 2026
Department: Police Department
Prepared by: Jeffrey Hattersley, Deputy Police Chief
Subject: Military Equipment Annual Use Report
RECOMMENDATION:

Approve the Desert Hot Springs Police Department 2025 Military Equipment Annual Use Report.

BACKGROUND:

In 2021, Assembly Bill 481 required law enforcement agencies to obtain approval of a military equipment use policy by the applicable governing body. The Desert Hot Springs Police Department's military equipment use policy was approved by the City Council in April 2022.

DISCUSSION:

AB 481 requires a military equipment use report to be submitted to the City Council for annual review.

AB 481 identifies certain law enforcement equipment as 'military equipment whether or not any branch of the military uses any of the law enforcement equipment listed. The legislation requires oversight from the governing body for the purchase and usage of what the bill deems military equipment.

The attached report covers the Desert Hot Springs Police Department's 2025 military equipment use and inventory.

FISCAL IMPACT:

Fiscal impact in calendar year 2025 was $51,375.06 for the purchase of patrol rifles, PepperBall launchers, and drone software and licenses. Funds were utilized from the Fiscal Year 2024-25 Police Department Supplies and Maintenance Account #245-4266-42-23-0000 to purchase eight patrol rifles and four PepperBall launchers, with a total cost of $32,710.72. Funds from the Fiscal Year 2024-25 Police Department Contract Service Account #245-4320-42-23-0000 were used to purchase drone software and licenses, with a total cost of $7,809.00. Funds were utilized from the 2025-26 Police Department Supplies and Maintenance Account #245-4266-42-23-0000 to purchase four patrol rifles, with a total cost of $10,855.34.

STRATEGIC ALIGNMENT:

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

Item Number: 3.

SR-26-097
Goal 5: Public Safety – Quality of Life
Balance the needs of the unhoused with the quality-of-life needs and concerns of the broader community.

ATTACHMENTS:
1) Policy 709 - Military Equipment
2) Military Equipment Annual Use Report 2025
Item Number: 3.

Policy
709
Desert Hot Springs Police Department
Desert Hot Springs PD Policy Manual
Copyright Lexipol, LLC 2026/04/15, All Rights Reserved.

Published with permission by Desert Hot Springs Police
Department
Military Equipment - 1
Military Equipment
709.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
709.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• Area denial electroshock devices, microwave weapons, water cannons, long-range acoustic devices (LRADs), acoustic hailing devices, and sound cannons. • Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

Item Number: 3.

Desert Hot Springs Police Department
Desert Hot Springs PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/15, All Rights Reserved.

Published with permission by Desert Hot Springs Police
Department
Military Equipment - 2
709.2 POLICY
It is the policy of the Desert Hot Springs Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 709.3 MILITARY EQUIPMENT COORDINATOR
The Deputy Chief is to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Desert Hot Springs Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department’s funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
709.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:
[ See attachment: DHS Qualifying Military Equipment Inventory.pdf ] 709.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):

Item Number: 3.

Desert Hot Springs Police Department
Desert Hot Springs PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/15, All Rights Reserved.

Published with permission by Desert Hot Springs Police
Department
Military Equipment - 3
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 709.6 COORDINATION WITH OTHER JURISDICTIONS
Through the Association of Riverside County Chiefs of Police and Sheriff's (ARCCOPS) mutual aid agreement, all cities within Riverside County have agreed to accept the use of each law enforcement agency's Military equipment policy related to any enforcement action throughout Riverside County. Military equipment used by any member of this jurisdiction shall be approved for use and in accordance with this department policy. Military equipment used by other jurisdictions that are providing mutual aid to this jurisdiction shall comply with their perspective military equipment use policies in rendering mutual aid.
709.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 709.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

Item Number: 3.

Desert Hot Springs PD Policy Manual
Copyright Lexipol, LLC 2026/04/15, All Rights Reserved.

Published with permission by Desert Hot Springs Police
Department
Attachments - 4
Attachments
Item Number: 3.

Attachment
Desert Hot Springs PD Policy Manual
Copyright Lexipol, LLC 2026/04/15, All Rights Reserved.

Published with permission by Desert Hot Springs Police
Department
DHS Qualifying Military Equipment
Inventory.pdf - 5
DHS Qualifying Military Equipment Inventory.pdf
DHS Qualifying Military Equipment Inventory.pdf
Item Number: 3.

Desert Hot Springs Qualifying Military Equipment:
• Unmanned, remotely piloted powered aerial or ground vehicles o Search and locate reported missing children or at-risk adults o Search and Rescue Operations to locate lost or Injured hikers o A law enforcement specific application involving Aerial DRONES are used for open terrain or large field searches as a force-multiplier to assist in high-risk apprehensions of armed or violent suspects. Aerial drones can be used as an interior search tool to locate suspects barricaded inside a residence or commercial structure. Larger DRONE platforms are deployed by the Sheriff’s Department Unmanned Aerial Surveillance Team
o A tracked armored vehicle remotely piloted for use in explosive ordinance disposal o Unmanned robotics have numerous applications. Robotics are used instead of personnel in high-risk environments to increase safety for law enforcement • Mine-Resistant Ambush Protected (MRAP) vehicle
o The MRAP is a large ballistic armored rescue vehicle which can be used for a number of critical situations. It can be deployed for aid during search warrant services as well as rescue missions to include civilians, officers, and hostage situations with seating for 10 adults
o The MRAP, though the County is fortunate to have good southern California weather, is primarily used in open desert areas, however, it can be used in any dangerous weather condition with the ability of extreme off-road capabilities. The MRAP is also used for large parcel outdoor illegal marijuana grow enforcement.

The MRAP has 4X4 capability and able to transport or evacuate victims in a flood, fire or other natural disaster. Operation requires a Class “B” driver’s license • Armored Vehicles
o Inventory includes four (4) LENCO Ballistic Engineered Armored Response Counter-Attack Trucks (BEAR-CATS). The BEAR-CATS, or Rescue Vehicles, are primarily used during high-risk tactical enforcement operations, officer rescues, and vehicle borne interventions. Additional deployments are used during criminal unrest and riots. Rescue vehicles provide ballistic safety during containment and apprehension of armed violent suspects
o Rescue vehicle for on-campus active shooter incidents to rescue injured victims o 4X4 capability to transport or evacuate victims in a flood, fire or other natural disaster
o BOMB-CAT bullet resistant rescue vehicle provisioned with a front mounted Water Cannon. BOMB-CAT use is for tactical operations and explosive ordinance mitigation and fire suppression
o Rescue vehicles provide numerous safety capabilities for law enforcement, victim rescues, and overall community safety
• Vehicles with Breaching or Entry apparatus attachable o BEAR-CAT vehicles have attachable metal booms that can be used for breaching structures, fences, or ramming objects during high-risk incidents, to include active shooter incidents on school ground or buildings
Item Number: 3.

o TAC-CAT vehicle - A tracked bullet resistant caterpillar tractor driven and deployed during high-risk and tactical operations with various hydraulic boom attachments including claw, chemical agent dispersal box and ram extension • Non-handheld battering rams, slugs, and breaching apparatuses that are explosive in nature
o Explosive breaching tools
o Avon frangible shotgun ammunition is used to breach doors and points of entry on fortified doors or structures. The rounds are used to impact door hinges, doorknobs and locks
• Assault Weapons defined under PC 30510 & PC 30515
o Inventory includes AR style rifles that function at full and semi-automatic capability (fully automatic rifles are only assigned to SWAT personnel) o Semi-automatic Benelli shotguns
o Increased accuracy and precision at long range distances o Currently used by most law enforcement agencies across the nation • Flashbang grenades and explosive breaching tools
o Light Sound Diversionary Device (LSDD-“Flashbangs”) are diversionary devices used to minimize risk to all parties through the temporary distraction or disorientation of armed and violent suspects that pose significant danger to the deputies and community. The effects of the LSDD reduce a suspect’s reactionary capabilities and allow for momentary disorientation which creates a tactical advantage. LSDD is a hand delivered device and generally deployed on the exterior of structures
o Provides a humane fright of aggressive dogs that pose a threat to deputies o Explosive breaching tools are used to breach fortified structures to establish a point of entry. Explosive charges are fashioned to produce little to no fragmentation at the time of detonation. Explosive breaching effectively reduces the time spent overcoming a fortified door or structure. The reduction in time mitigating a hardened structure increasing officer safety and the element of surprise. Blast injuries are reduced by using low yield explosives that mechanically overcome door frames and locking mechanisms. Explosive breaching mandates extensive schooling and certification processes
• Tear Gas
o Chemical agents are deployed through various means to include hand delivery and weapon launchable, such as pepper ball. Munitions are either 37mm or 40mm caliber, shotgun ferret rounds or cannister shotgun launched ordinance. Hand delivered chemical agents are placed in metal burn boxes to reduce fire hazards • Water Cannon
o The BOMB-CAT bullet resistant Rescue vehicle provisioned with a front mounted Water Cannon. BOMB-CAT use is for tactical operations and explosive ordinance mitigation and fire suppression
• Long Range Acoustic Device (LRAD)
Item Number: 3.

o LRAD is an acoustic hailing device used for emitting amplified public announcements during search warrant services, barricaded suspects, or tactical operations. The loud audible technology ensures broadcasted announcements are loud and clear while offering advantages over less amplified patrol car PA systems.

The LRAD can also be used for public announcements or safety advisements during natural disasters or evacuations
o The larger LRAD 1000 system is portable and can be used for criminal unrest and rioting to provide clear dispersal orders for unlawful assembly • Command and Control Vehicles built or modified to facilitate the operational control and direction of public safety units
o Command vehicles are built in various platforms to include ½ ton pickup chassis, vans, trailers, and RV style configurations. Vehicles are built to better assist in command and control during law enforcement operations, natural disasters, and public safety issues. Vehicles are designed with additional communication abilities, computers, white boards, lightening, generators, and mission essential supplies • 40mm projectile launchers
o Less lethal 40mm launchers and rubber projectile munitions- Munitions are configured for high and low energy impact. Munitions have the additional benefit as a barrier round for breaking vehicle and residential glass so that chemical munitions can be deployed. 40mm less lethal has been effective in disarming violent suspects, armed suspects, and subjects who are suicidal with minimal injury and risk to the person, law enforcement or the public • Bean Bag Launchers
o Less lethal bean bag is utilized through a marked/orange colored easily identifiable less lethal shotgun. The bean bag round is a small led pellet filled munition made of high-density cloth. Bean bag is the predecessor to 40mm less lethal having similar benefits as other less lethal platforms
• Rubber Projectile launchers
o Sting ball grenade launches .38 caliber rubber projectiles and are hand delivered.

Generalized use in a tactical operation is infrequent in use and deployment. Search warrants, violent combative subjects, or hostage rescue scenarios are criteria for consideration and use against suspects. Sting balls have a greater application in a Jail Corrections Environment
o 40mm and 37mm launchers capable of deploying rubber projectile munitions. An effective less lethal tool used routinely with success
• PepperBall launchers
o Less lethal PepperBall projectile system that uses compressed air to launch plastic spheres that are filled with a derivative of OC powder similar to that found in OC spray.

Item Number: 3.

2025

MILITARY EQUIPMENT

ANNUAL USE REPORT
Item Number: 3.

Background
On September 30, 2021, the Governor of the State of California approved AB-481 requiring law enforcement agencies to obtain approval of the applicable governing body (Mayor and City Council), by adop�on of a military equipment use policy.

The Desert Hot Springs Police Department met with the city council in April of 2022 and had their military equipment program approved by the council.

The bill requires the publica�on of the military equipment use procedure and the annual military equipment report on the Department’s website.

Annual Repor�ng Requirements as per AB 401,
Sec�on 7072
(a) A law enforcement agency that receives approval for a military equipment use policy pursuant to Sec�on 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved by the governing body within one year of approval, and annually therea�er for as long as the military equipment is available for use. The law enforcement agency shall also make each annual military equipment report required by this sec�on publicly available on its internet website for as long as the military equipment is available for use. The annual military equipment report shall, at a minimum, include the following informa�on for the immediately preceding calendar year for each type of military equipment:

Item Number: 3.

1. A summary of how the military equipment was used and the purpose of its use.

2. A summary of any complaints or concerns received concerning the military equipment.

3. The results of any internal audits, any informa�on about viola�ons of the military equipment use policy, and any ac�ons taken in response.

4. The total annual cost for each type of military equipment, including acquisi�on, personnel, training, transporta�on, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.

5. The quan�ty possessed for each type of military equipment.

6. If the law enforcement agency intends to acquire addi�onal military equipment in the next year, the quan�ty sought for each type of military equipment.
(b) Within 30 days of submi�ng and publicly releasing an annual military equipment report pursuant to this sec�on, the law enforcement agency shall hold at least one well-publicized and conveniently located community engagement mee�ng, at which the general public may discuss and ask ques�ons regarding the annual military equipment report and the law enforcement agency’s funding, acquisi�on, or use of military equipment.

Item Number: 3.

Military Equipment Purpose
The Desert Hot Springs Police Department has a varied inventory of military equipment, the mere possession of the equipment does not warrant its use for every incident. Although most tools, equipment, and resources listed as military equipment in AB481 are found in a military environment and may be similar in nature, the applica�on in which the equipment is used is significantly different for public safety and law enforcement.

Cri�cal incidents and life-threatening crimes are o�en unpredictable and dynamic in nature. A variety of military equipment op�ons can greatly assist department personnel in bringing those incidents to an efficient resolu�on in a safe manner. When the equipment is u�lized, it is used by officers who are trained, professional, and safe in the use of the equipment.

Military Equipment Inventory
Unmanned, remotely piloted powered aerial vehicles (3)
Purpose:
• Collec�on of evidence in the form of aerial photography/video in support of an inves�ga�on (i.e., shoo�ng scenes, homicide scenes).
• Provide the ability to monitor rapidly evolving reports of atlarge persons suspected of serious criminal offenses or individuals threatening violent behavior before poten�ally dangerous face-to-face contact is required.
• Providing cri�cal overwatch protec�on during popular largescale special events by increasing our ability to recognize traffic Item Number: 3.

safety hazards or poten�al pre-assault indicators, and
proac�vely circumven�ng pending danger or violence without significantly increasing staffing requirements.
• Conduct aerial searches for missing persons.
• Provide aerial observa�on to assist in managing natural disasters (i.e., fires, floods, storms).
• Community events for engagement and developing public trust. • Provide real �me informa�on to officers responding to calls for service.

Assault Weapons defined under PC 30510 & PC 30515 (35
AR-15 Rifles and 4 MP5)
Purpose: Inventory includes AR style rifles and select fire subcompact rifles.
40mm Projec�le Launchers (4)
Purpose: 40mm launchers are capable of deploying rubber bullet muni�ons. An effec�ve less lethal tool used rou�nely with success.

Bean Bag Launchers (13 shotguns)
Purpose: Less lethal bean bag is u�lized through a marked/orange colored easily iden�fiable less lethal shotgun. The bean bag round is a small led pellet filled muni�on made of high-density cloth. Bean bags are the predecessor to 40mm less lethal having similar benefits as other less lethal pla�orms.

PepperBall Launchers (4)
Purpose: Less lethal PepperBall projectile system that uses compressed air to launch plastic spheres that are filled with a derivative of OC powder similar to that found in OC spray.

Item Number: 3.

Usage
An Unmanned Aerial System was deployed 401 �mes from January 1, 2025, through December 31, 2025. The uses varied from patrol calls, search warrants and documen�ng and photographing crime scenes throughout the city.

The 40mm Projec�le Launcher was not used in 2025.

The Less Lethal bean bag launcher was not used in 2025.

The PepperBall launcher was no used in 2025.

The Department did not have any unauthorized use of its military equipment in 2025. All uses of the equipment were within the scope and purpose of their intended use and met policy
requirements. Addi�onally, there were no complaints made about the use of military equipment in 2025.

Military Equipment Costs
Unmanned, remotely piloted powered aerial vehicles.

Expected Life Span: 5-7 years.

Drone so�ware/warranty/license purchase in 2025 with a fiscal impact of $7,809.

No new drone purchases in 2025.

Assault Weapons Defined Under PC 30510 & PC 30515.

Expected Life Spam: No expira�on.
12 new patrol rifles were purchased in 2025 with a fiscal impact of $32,432.

Item Number: 3.

40mm Projec�le Launchers.

Expected Life Span: Launchers no expira�on.

Fiscal Impact: $3,000.00 per unit.

No new purchases in 2025.
40mm Round Expected Life Span: 5 years.

Fiscal Impact: $0
No new purchases in 2025.

Bean Bag Launchers.

Expected Life Span: Launchers no expira�on.

Fiscal Impact: $2000.00-$3000.00 per unit.

No new purchases in 2025.

Bean Bag Rounds Expected Life Span: 5 years.

Fiscal Impact: $0
No new purchases in 2025.

PepperBall Launchers.

Expected Life Span: 10 to 15 years.
4 new launchers purchased in 2025 with a fiscal impact of $11,134.

PepperBall Rounds Expected Life Span: 3 years.

Fiscal Impact: $0
No new purchases in 2025.

When military equipment has reached significantly low levels, or have been exhausted, or the department requires acquisi�on of any of the items listed, the Department may order equipment as needed in each calendar year by adhering to the City and Department rules, regula�ons, policies, and procedures.

Cost es�mated with the military equipment are not a guaranteed expenditure each year. Some annual cycles may require no purchases while others may call for replacing items due to the service life.

Item Number: 3.

SR-26-099
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: May 5, 2026
Department: City Attorney
Prepared by: Jennifer Mizrahi, City Attorney
Subject: Adoption of Remote Participation and Technology Disruption Policy (Government Code § 54953.4)
RECOMMENDATION:

Adopt the Remote Participation and Technology Disruption Policy.

BACKGROUND:

The Legislature of the State of California adopted Senate Bill 707 in 2025, which added Government Code Section 54953.4 to the Brown Act. Among other things, SB 707 requires the City Council to provide real-time remote public participation at City Council meetings either through a two-way telephonic service or a two-way audiovisual platform no later than July 1, 2026. Additionally, Section 54953.4 requires the City Council to adopt a policy addressing disruptions to the technology that could prevent members of the public from participating remotely. That policy is attached for the City Council’s consideration.

In summary, the policy requires the City to make in good faith efforts to restore the telephonic or internet-based service in the event a disruption occurs that prevents members of the public from participating remotely. The City must engage in those efforts for at least an hour, or until the connection is restored, whichever occurs first. If the City cannot restore the connection after one hour of good faith efforts, the City Council may proceed with the meeting after making specific findings that the public interest in continuing the meeting outweighs the public interest in remote participation.

ATTACHMENTS:
1) Technology Disruption Policy (Effective July 1 2026) Item Number: 4.

1 | P a g e
City of Desert Hot Springs
REMOTE PARTICIPATION AND TECHNOLOGY DISRUPTION POLICY (SB 707)

1. INTENT AND PURPOSE
This Policy is adopted to implement Government Code section 54953.4, as added by Senate Bill 707, which requires eligible legislative bodies to provide real-time remote public access to meetings through two-way telephonic or audiovisual services and to adopt procedures addressing disruptions to such services.

2. APPLICABILITY
This Policy applies to all meetings of the City Council and any other legislative body of the City that qualifies as an “eligible legislative body” under Government Code section 54953.4(e)(2).

3. REMOTE PARTICIPATION REQUIREMENT
All open and public meetings shall include an opportunity for members of the public to attend via a two-way telephonic service or a two-way audiovisual platform, except where adequate telephonic or internet service is not operational at the meeting location. If such service is operational for only a portion of the meeting, remote participation shall be provided for that portion of the meeting.

4. PLATFORM REQUIREMENTS
If the City provides a two-way audiovisual platform, the City shall:
i. Provide a call-in option; and
ii. Activate any automatic captioning function available on the platform during the meeting.

If a two-way audiovisual platform is not provided, the City shall provide a twoway telephonic service.

5. PUBLIC COMMENT VIA REMOTE ACCESS
Members of the public participating remotely shall be provided an opportunity to provide public comment in real time, consistent with Government Code section 54954.3, and shall be afforded the same time allotment as members of the public attending in person.

Item Number: 4.

2 | P a g e

6. REQUIRED DISRUPTION POLICY
Pursuant to Government Code section 54953.4(b)(1)(A)(i)(I)(ib)(Ia), the City shall maintain a policy addressing disruptions to telephonic or internet-based services occurring during meetings, including procedures for recessing and reconvening meetings and efforts to restore such services.

For purposes of this Policy, a “disruption” means a disruption of telephonic or internet service that prevents members of the public from attending or observing the meeting via the two-way telephonic service or two-way audiovisual platform.

7. PROCEDURE UPON DISRUPTION
If a disruption of telephonic or internet service occurs during a meeting that prevents members of the public from attending or observing the meeting via the two-way telephonic service or two-way audiovisual platform, the following procedures shall apply:

A. Recess and Restoration Efforts
i. The legislative body shall recess the open session of the meeting; and ii. The City shall make a good faith effort to restore telephonic or internet service.

B. Minimum Recess Period
The legislative body shall not reconvene the open session of the meeting until at least one (1) hour has elapsed following the disruption, or telephonic or internet service has been restored, whichever occurs earlier.

The legislative body may meet in closed session during the period of disruption, as permitted by law.

C. Reconvening Without Restoration
If telephonic or internet service has not been restored upon reconvening the open session, the legislative body shall adopt, by rollcall vote, a finding that:
i. Good faith efforts to restore telephonic or internet service have been made in accordance with this Policy; and
Item Number: 4.

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ii. The public interest in continuing the meeting outweighs the public interest in remote public access.

8. EXCEPTIONS TO REMOTE PARTICIPATION REQUIREMENTS
The remote participation requirements set forth in this Policy shall not apply to meetings held for any of the following purposes:
• Attending a judicial or administrative proceeding to which the City is a party;
• Inspecting real or personal property where discussion is limited to that property;
• Meeting with federal or state officials regarding legislative or regulatory issues;
• Meeting at or near a City-owned facility regarding that facility; • Emergency meetings pursuant to Government Code section 54956.5.

9. ADMINISTRATION
The City Manager or designee is authorized to implement administrative procedures necessary to carry out this Policy, including procedures for restoring telephonic or internet service during a disruption.

10.SEVERABILITY
If any provision of this Policy is held invalid or unenforceable, such invalidity shall not affect the remaining provisions, which shall remain in full force and effect.

11.INTERPRETATION
This Policy shall be interpreted in a manner consistent with Government Code section 54953.4, as it may be amended from time to time, including any legislative extension, modification, or repeal of the current sunset date. The intent of this Policy is to ensure compliance with applicable law while maintaining public access to meetings and establishing procedures for addressing disruptions to telephonic or internet-based services.

12.SAVINGS CLAUSE
Item Number: 4.

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This Policy is intended to supplement and implement Government Code section 54953.4 and shall not be interpreted to conflict with, limit, or supersede any other provision of the Ralph M. Brown Act, including any other teleconferencing provisions set forth in Government Code section 54953 or related statutes. In the event of any conflict between this Policy and the Brown Act, the Brown Act shall control.

13.ADOPTION
This Remote Participation and Technology Disruption Policy was adopted by the City Council of the City of Desert Hot Springs at a noticed public meeting held in open session and was not adopted on the consent calendar.

14.EFFECTIVE DATE
This Policy shall take effect on July 1, 2026.

Item Number: 4.

SR-26-102
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: May 5, 2026
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Draft and Execute an Agreement with Tyler Technologies for Financial Operating Software
RECOMMENDATION:

Authorize City Manager to draft and execute all necessary purchase agreements and all related documents with Tyler Technologies for the purchase and implementation of Tyler SaaS Financials.

BACKGROUND:

The City started using OpenGov Financial (OGF) software in January 2022. The switch to OGF was to take advantage of advancements in Enterprise Resource Planning (ERP) software. This allowed the finance software to be cloud-based and provide for better accessibility. OGF offered better transparency and reporting capabilities. It was hoped that the financial software would be fully integrated with the OpenGov Licensing & Permitting software, making it a true ERP system.

After 4 years of using OGF, it is apparent that the software is not as advanced as it was purported to be. The finance software and the permitting software are not integrated at all and still requires a journal entry to be created and manually posted in order to record daily transactions from the permitting side. If there is an update on the permitting side, it creates a disruption in the journal entry requiring significant staff time to correct it. The processes for invoices and purchase orders are cumbersome and requires staff to create work arounds.

The capital assets module still has bugs creating mismatched reports and delays in the annual audit.

OGF does not have search capabilities which leads to additional staff time in researching transaction information.

DISCUSSION:

In the search for a new financial software system, staff focused on the two main municipal government financial software providers. Tyler Technologies and Oracle Netsuite provide financial software to many government agencies throughout the nation, including several agencies in the Coachella Valley. Staff contacted both companies to provide information on their software packages.

In January 2025, Oracle provided a demonstration of its product to all interested staff. Then in February 2025, Tyler Technologies also provided a demonstration of Tyler SaaS to all interested staff. Over the following months, Finance staff contacted other local agencies using the software packages in order to see how they utilize them and get the users’ opinions on them.

Item Number: 5.

SR-26-102
After comparing the two software packages, staff has decided to go with the Tyler SaaS software.

Due to its ease of use, inquiry capabilities, reporting features, new use of AI technology, and recommendations from other agencies, staff feels that Tyler Saas would be the best fit for the City.

Tyler Saas will provide better functionality and transparency for the City and will include capabilities not currently offer by OGF, such as bid management, cash management, contract management, and grant accounting. Staff would like to go live with the software on July 1, 2027 which means that the implementation process must start by July 1, 2026 with an agreement in place by May 31, 2026.

FISCAL IMPACT:

There will be a one-time implementation fee of $235,055 and an annual subscription cost of $72,924 over the next five years for a total contract cost of $599,675. The annual subscription cost for Tyler SaaS is $4,674 higher than what the City is paying for OGF. The one-time and annual costs will be included in the FY26-27 Budget Adjustments and in future budgets.

STRATEGIC ALIGNMENT:

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

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

ATTACHMENTS:
1) Tyler SaaS Agreement
Item Number: 5.

1 SOFTWARE AS A SERVICE AGREEMENT
This Software as a Service Agreement is made between Tyler Technologies, Inc. and Client.

WHEREAS, Client selected Tyler to provide certain products and services set forth in the Investment Summary, including providing Client with access to Tyler’s proprietary software products, and Tyler desires to provide such products and services under the terms of this Agreement; NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and promises set forth in this Agreement, Tyler and Client agree as follows:

SECTION A – DEFINITIONS
• “Agreement” means this Software as a Service Agreement. • “Business Travel Policy” means our business travel policy. Our current Business Travel Policy is available here: https://www.tylertech.com/portals/0/terms/Tyler-Business-Travel-Policy.pdf. • “Client” means the party indicated on the signature block or, in the absence of a signature block, the Investment Summary.
• “Data” means your data necessary to use the Tyler Software. • “Data Storage Capacity” means the contracted amount of storage capacity for your Data, if any, identified in the Investment Summary.
• “Defect” means a failure of the Tyler Software to substantially conform to the functional descriptions set forth in our written proposal to you (or the Documentation in the absence of a written proposal), or their functional equivalent. Future functionality may be updated, modified, or otherwise enhanced through our maintenance and support services, and the governing functional descriptions for such future functionality will be set forth in our thencurrent Documentation. • “Defined Users” means the number of users, if any, that are identified in the Investment Summary. If Exhibit A contains Enterprise Permitting & Licensing labeled software, defined users mean the maximum number of named users that are authorized to use the Enterprise Permitting & Licensing labeled modules as indicated in the Investment Summary. • “Developer” means a third party who owns the intellectual property rights to a Third-Party Product.
• “Documentation” means any online or written documentation related to the use or functionality of the Tyler Software that we provide or otherwise make available to you, including instructions, user guides, manuals and other training or self-help documentation. • “Effective Date” means the date by which both your and our authorized representatives have signed the Agreement. Notwithstanding the foregoing, if these terms are linked from an Order Form, the Effective Date is the date your authorized representative signed the Order Form. • “Force Majeure” means an event beyond the reasonable control of you or us, including, without limitation, governmental action, war, riot or civil commotion, fire, natural disaster, or any other cause that could not with reasonable diligence be foreseen or prevented by you or us.

Item Number: 5.

2 • “Investment Summary” means the agreed upon cost proposal for the products and services attached as Exhibit A.
• “Order Form” means an ordering document that includes a quote or investment summary and specifies the items to be provided by Tyler to Client, including any addenda and supplements thereto.
• “Professional Services” means those services provided by Tyler or a third party related to the scope of this Agreement and identified in the Investment Summary. • “SaaS Fees” means the fees for the SaaS Services identified in the Investment Summary. • “SaaS Services” means software as a service consisting of system administration, system management, and system monitoring activities that Tyler performs for the Tyler Software and includes the right to access and use the Tyler Software, receive maintenance and support on the Tyler Software, including Downtime resolution under the terms of the SLA, and Data storage and archiving. SaaS Services do not include support of an operating system or hardware, support outside of our normal business hours, or training, consulting, or other professional services. • “SLA” means the service level agreement. A copy of our current SLA is attached hereto as Exhibit C.
• “Statement of Work” means the industry standard implementation plan describing how our professional services will be provided to implement the Tyler Software and outlining your and our roles and responsibilities in connection with that implementation. The Statement of Work is attached as Exhibit E.
• “Support Call Process” means the support call process applicable to all our customers who have a right to use the Tyler Software. Our current Support Call Process is available here:
https://www.tylertech.com/portals/0/terms/Tyler-Support-Call-Process.pdf. • “Third-Party Hardware” means the third-party hardware, if any, identified in the Investment Summary.
• “Third-Party Products” means the Third-Party Software and Third-Party Hardware. • “Third-Party SaaS Services” means software as a service provided by a third party, if any, identified in the Investment Summary.
• “Third-Party Services” means the third-party services, if any, identified in the Investment Summary.
• “Third-Party Software” means the third-party software, if any, identified in the Investment Summary or included with the Tyler Software.
• “Third-Party Terms” means the end user license agreement(s) or other terms, if any, for the Third-Party Products or other parties’ products or services, as applicable, and attached or indicated at Exhibit D.
• “Tyler” means Tyler Technologies, Inc., a Delaware corporation. • “Tyler Software” means our proprietary software, including any integrations, custom modifications, and/or other related interfaces identified in the Investment Summary and licensed by us to you through this Agreement.
• “we,” “us,” “our” and similar terms mean Tyler.
• “you” and similar terms mean Client.

SECTION B – SAAS SERVICES

1. Rights Granted. We grant to you the non-exclusive, non-assignable limited right to use the SaaS Services solely for your governmental purposes, subject to any limits for Defined Users or Data Item Number: 5.

3 Storage Capacity. You may add additional users or additional data storage capacity on the terms set forth in this Agreement. In the event you regularly and/or meaningfully exceed the Defined Users or Data Storage Capacity, we reserve the right to charge you additional fees commensurate with the overage(s). You acknowledge that we have no obligation to ship copies of the Tyler Software as part of the SaaS Services. Your right to use the SaaS Services applies to releases provided as part of our Maintenance and Support Services as further detailed in this Agreement.

2. Ownership.

2.1.We retain all ownership and intellectual property rights to the SaaS Services, the Tyler Software, and anything developed by us under this Agreement. You do not acquire under this Agreement any license to use the Tyler Software in excess of the scope and/or duration of the SaaS Services.

2.2.The Documentation is licensed to you and may be used and copied by your employees for internal, non-commercial reference purposes only.

3. Data.

3.1. You retain all ownership and intellectual property rights to the Data. You expressly recognize that except to the extent necessary to fulfill our obligations contained in this Agreement, we do not create or endorse any Data used in connection with the SaaS Services.

3.2. You expressly grant to us a limited, non-exclusive license to access, copy, transmit, download, display, and reproduce your Data to provide services pursuant to this Agreement. Additionally, you agree that Tyler may use deidentified Data for Client or third-party demonstrative or training purposes.

3.3.Our access to and use of your Data necessary to use the Tyler Software or SaaS Services will comply with applicable provisions of our Privacy Statement (available at https://www.tylertech.com/privacy) and applicable law.

3.4.Data Breach Notification. Tyler will provide notice of a breach of Client Data in accordance with applicable state and federal data breach notification laws.

4. Restrictions.

4.1.You may not:

4.1.1. make the Tyler Software or Documentation resulting from the SaaS Services available in any manner to any third party for use in the third party’s business operations;

4.1.2. modify, make derivative works of, disassemble, reverse compile, or reverse engineer any part of the SaaS Services;

4.1.3. access or use the SaaS Services to build or support, and/or assist a third party in building or supporting, products or services competitive to us; or

4.1.4. license, sell, rent, lease, transfer, assign, distribute, display, host, outsource, disclose, permit timesharing or service bureau use, or otherwise commercially exploit or make the SaaS Services, Tyler Software, or Documentation available to any third party other than as expressly permitted by this Agreement.

4.1.5. Notwithstanding anything to the contrary in this Section 4.1, you may disclose, with our written consent, not to be unreasonably withheld, the Tyler Software, SaaS Services, or Documentation to a third party you consult with regarding the implementation or use of the Tyler Software and SaaS Services. You must ensure that any such third-party’s use is subject to the terms of this Agreement, and you acknowledge and agree that you are liable for any breach of the terms of this Agreement by such third party.

Item Number: 5.

4 5. Software Warranty. We warrant that the Tyler Software will perform without Defects during the term of this Agreement. If the Tyler Software does not perform as warranted, we will use all reasonable efforts, consistent with industry standards, to cure the Defect in accordance with our then-current Support Call Process.

6. SaaS Services.

6.1.Audit & Compliance. Our SaaS Services are audited at least yearly in accordance with the AICPA’s Statement on Standards for Attestation Engagements (“SSAE”) No. 21. We have attained, and will maintain, SOC 1 and SOC 2 compliance, or their equivalent, for so long as you are timely paying for SaaS Services. The foregoing notwithstanding, you acknowledge that the scope of audit coverage varies depending on the specific Tyler Software solution. We will provide you with a summary of our current compliance report(s) or its equivalent, upon your request. For the avoidance of doubt, if our SaaS Services are provided using a third-party data center, the compliance report may be for that third-party provider and be subject to confidential treatment in accordance with applicable law. If you want us to provide our compliance reports to a third-party auditor or similar entity, we reserve the right to require execution of an NDA by that third party.

6.2.Service Levels. The Tyler Software will be made available to you according to the terms of the SLA. Tyler SaaS Services will be provided via a third-party data center. Your Data will be inaccessible to our other customers.

6.3.Business Continuity. Data centers used to deliver SaaS Services for this Agreement have redundant telecommunications access, electrical power, and the required hardware to provide access to the SaaS Services in the event of a disaster or component failure. We test our disaster recovery plan on an annual basis. The plan is not client specific and is detailed in Tyler’s System & Organization Control reports or their equivalent. In the event of a data center failure, we reserve the right to employ our disaster recovery plan for resumption of the SaaS Services. In that event, we commit to a Recovery Point Objective (“RPO”) of 24 hours and a Recovery Time Objective (“RTO”) of 24 hours. RPO represents the maximum duration of time between the most recent recoverable copy of your hosted Data and subsequent data center failure. RTO represents the maximum duration of time following data center failure within which your access to the Tyler Software must be restored. If we employ our disaster recovery plan, we will be responsible for restoring your Data and ensuring that the SaaS Services are online, and you will be responsible for validating your Data and confirming the functioning of the SaaS Services, including any integrations.

6.4.Security Measures. We provide secure Data transmission paths between your devices and the data center used to provide SaaS Services to you. Data centers used to provide SaaS Services are accessible only by authorized personnel with a unique key entry or comparable security.

We conduct annual penetration testing of either the production network and/or web application to be performed. We will maintain industry standard intrusion detection and prevention systems to monitor malicious activity in the network and to log and block any such activity. You may not attempt to bypass or subvert security restrictions in the SaaS Services or environments related to the Tyler Software. Unauthorized attempts to access files, passwords, or other confidential information, and vulnerability and penetration test scanning of our network and systems (hosted or otherwise) are prohibited. Where applicable with respect to our applications that take or process card payment data, we comply with applicable requirements of PCI DSS. We agree to supply the then-current status of our PCI DSS compliance Item Number: 5.

5 program in the form of an official Attestation of Compliance, which can be found at https://www.tylertech.com/about-us/compliance and, in the event of any change in our status, we will comply with applicable notice requirements.

6.5.Password Security. You are responsible for:

6.5.1. keeping your and your representatives’ passwords secure and confidential;

6.5.2. any account activity or access that occurs pursuant to you and your representatives’ passwords, its account or IdPs; and

6.5.3. notifying us of any unauthorized access to your account.

SECTION C – PROFESSIONAL SERVICES

1. Professional Services. We will provide you the various implementation-related services itemized in the Investment Summary and if applicable, described in the Statement of Work.

2. Professional Services Fees. You agree to pay us the services fees in the amounts set forth in the Investment Summary. You acknowledge that the fees stated in the Investment Summary, unless expressly stated otherwise, are good-faith estimates of the amount of time and materials required for your implementation. We will bill you the actual fees incurred based on the in-scope services provided to you. Any discrepancies in the total values set forth in the Investment Summary will be resolved by multiplying the applicable rate by the quoted units.

3. Additional Services. The Investment Summary contains, and the Statement of Work describes, the scope of services and related costs (including programming and/or interface estimates) required for the project based on our understanding of the specifications you supplied. If additional work is required, or if you use or request additional services, we will provide you with an addendum or change order, as applicable, outlining the costs for the additional work. The price quotes in the addendum or change order will be valid for thirty (30) days from the date of the quote.

4. Cancellation. If you cancel services less than four (4) weeks in advance (other than for Force Majeure or breach by us), you will be liable for all (i) daily fees associated with cancelled professional services if we are unable to reassign our personnel and (ii) any non-refundable travel expenses already incurred by us on your behalf. We will make all reasonable efforts to reassign personnel in the event you cancel within four (4) weeks of scheduled commitments.

5. Services Warranty. We will perform services in a professional, workmanlike manner, consistent with industry standards. In the event we provide services that do not conform to this warranty, we will re-perform such services at no additional cost to you.

6. Site Access and Requirements. At no cost to us, you agree to provide us with reasonable access to your personnel, facilities, and equipment as may be reasonably necessary for us to provide implementation services, subject to any reasonable security protocols or other written policies provided to us as of the Effective Date, and thereafter as mutually agreed to by you and us.

7. Background Checks. All of our employees undergo criminal background checks prior to hire. All employees sign our confidentiality agreement and security policies.

Item Number: 5.

6 8. Client Assistance. You acknowledge that the implementation of the Tyler Software is a cooperative process requiring the time and resources of your personnel. You certify that you will use reasonable efforts to cooperate with us and make your resources available for the performance of the Agreement in accordance with its terms and the mutually agreed project schedule. Additionally, you agree to use all reasonable efforts to cooperate with and assist us as may be reasonably required to support the efficient execution of the activities required for this Agreement.

Accordingly, you will provide notice of any known inability to timely meet a project commitment so that appropriate project adjustments can be made. We will not be liable for failure to meet any project deadlines or milestones when such failure is due to Force Majeure or to the failure by you to comply with the requirements of this paragraph.

9. Maintenance and Support Services.

9.1.For the duration of this Agreement, consistent with the terms set forth in our then-current Support Call Process, we will:

9.1.1. perform our maintenance and support obligations in a professional and workmanlike manner, consistent with industry standards, to provide support and resolve Defects in the Tyler Software (subject to any applicable release life cycle policy);

9.1.2. provide telephone support during our established support hours as indicated in our then-current Support Call Process;

9.1.3. maintain personnel that are sufficiently trained to be familiar with the Tyler Software and Third-Party Software, if any, in order to provide maintenance and support services;

9.1.4. provide releases to the Tyler Software (including updates and enhancements) that we make generally available without additional charge to customers with a current SaaS Agreement.

9.2.Your use of Tyler Software or SaaS Services requires that you remain current with supported releases of Tyler Software as indicated in any applicable release lifecycle policy. Our warranty and support commitments are contingent upon you using a supported version of the Tyler Software. Tyler may require you to update to a current version of the Tyler Software to address a critical issue (for example, to address an identified security vulnerability in the Tyler Software or a third-party component). Tyler will use commercially reasonable efforts to (i) minimize the number of such instances and (ii) provide as much advance notice as possible.

9.3.We will use all reasonable efforts to perform support services remotely. We reserve the right to use secure third-party connectivity tools to deliver maintenance and support services. We also reserve the right to collect Tyler Software or SaaS Services telemetry for product evaluation, quality assurance, and security monitoring and enhancement purposes. You agree to reasonably cooperate with us in providing access to your environments and Data for the purposes of providing maintenance and support services and acknowledge that our warranty, support, and service level obligations under this Agreement are contingent upon receiving reasonable access to your Data and systems.

9.4. For the avoidance of doubt, SaaS Fees do not include the following services: (a) onsite support; (b) application design; (c) other consulting services; or (d) telephone support outside our normal business hours as listed in our then-current Support Call Process.

SECTION D – THIRD-PARTY PRODUCTS
Item Number: 5.

7 1. Third-Party Hardware. We will sell and deliver any Third-Party Hardware set forth in the Investment Summary for the price indicated therein. Unless otherwise indicated, installation of Third-Party Hardware will be performed by Tyler or identified third party installers.

2. Third-Party Software. Your rights under this Agreement may include rights to certain Third-Party Software. We certify that we have acquired the right to provide the Third-Party Software to you.

Your rights to the Third-Party Software will be governed by the Third-Party Terms and, in the absence of such terms, this Agreement.

3. Third Party Products Warranties.

3.1 We are authorized by each Developer or its authorized reseller to sell or grant access, as applicable, to the Third-Party Products.

3.2 Unless otherwise expressly indicated, Third-Party Hardware will be new and unused. You will receive free and clear title to the Third-Party Hardware you purchase upon your payment in full of the purchase price.

3.3 You acknowledge that we are not the manufacturer of Third-Party Products. We do not warrant or guarantee the performance of the Third-Party Products. However, we grant and pass through to you any warranty that we may receive from the Developer or supplier of the ThirdParty Products.

4. Third-Party Services. If you have purchased Third-Party Services, those services will be provided independently of Tyler by such third party at the rates set forth in the Investment Summary and in accordance with Exhibit B.

SECTION E – TERM AND TERMINATION

1. Term. The initial term of this Agreement is equal to the number of years indicated for SaaS Services in Exhibit A or one (1) year if no duration is indicated. The initial term commences on the first day of the first month following the Effective Date. Upon expiration of the initial term, this Agreement will renew automatically for additional one (1) year renewal terms at our then-current SaaS Fees unless terminated in writing by either party at least sixty (60) days prior to the end of the then-current renewal term. Your right to access or use the Tyler Software and the SaaS Services will terminate at the end of this Agreement.

2. Termination. This Agreement may be terminated as set forth below. In the event of termination, you will pay us for all undisputed fees and expenses related to the software, products, and/or services you have received, or we have incurred or delivered, prior to the effective date of termination. Disputed fees and expenses in all terminations other than your termination for cause must have been submitted as invoice disputes in accordance with Section G(2).

2.1.Failure to Pay Fees. You acknowledge that continued access to the SaaS Services is contingent upon your timely payment of fees. We may terminate this Agreement if you do not cure a failure to pay within sixty (60) days of our notice to you that you have overdue payments.

2.2.For Cause. If you believe we have materially breached this Agreement, you will invoke the Dispute Resolution clause set forth in Section G(2). You may terminate this Agreement for cause after following the procedures set forth in Section G(2).

2.3.Force Majeure. Either party has the right to terminate this Agreement if a Force Majeure event suspends performance of the SaaS Services for a period of forty-five (45) days or more.

Item Number: 5.

8 2.4. Lack of Appropriations. If you should not appropriate or otherwise make available funds sufficient to utilize the SaaS Services, you may unilaterally terminate this Agreement upon thirty (30) days written notice to us. You will not be entitled to a refund or offset of previously paid, but unused SaaS Fees. You agree not to use termination for lack of appropriations as a substitute for termination for convenience.

SECTION F – INDEMNIFICATION, LIMITATION OF LIABILITY AND INSURANCE

1. Intellectual Property Infringement Indemnification.

1.1. We will defend you against any third-party claim(s) that the Tyler Software or Documentation infringes that third-party’s patent, copyright, or trademark, or misappropriates its trade secrets, and will pay the amount of any resulting adverse final judgment (or settlement to which we consent). You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense.

1.2.Our obligations under this Section F(1) will not apply to the extent the claim or adverse final judgment is based on your use of the Tyler Software in contradiction of this Agreement, including with non-licensed third parties.

1.3.If an infringement or misappropriation claim is fully litigated and your use of the Tyler Software is enjoined by a court of competent jurisdiction, in addition to paying any adverse final judgment (or settlement to which we consent), we will, at our option, either:

1.3.1. procure the right to continue its use;

1.3.2. modify it to make it non-infringing; or

1.3.3. replace it with a functional equivalent.

We may elect to employ these remedies in advance of litigation if we receive information concerning an infringement or misappropriation claim.

1.4.This section provides your exclusive remedy for third-party copyright, patent, or trademark infringement and trade secret misappropriation claims.

2. General Indemnification.

2.1.We will indemnify and hold harmless you and your agents, officials, and employees from and against any and all third-party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for (i) personal injury, death, or damage to tangible property, all to the extent caused by our negligence or willful misconduct; or (ii) our violation of law applicable to our performance under this Agreement. You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense.

2.2.To the extent permitted by applicable law, you will indemnify and hold harmless us and our agents, officials, and employees from and against any and all third-party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for (i) personal injury, death, or damage to tangible property, all to the extent caused by your negligence or willful misconduct; or (ii) your violation of a law applicable to your performance under this Agreement. We will notify you promptly in writing of the claim and will give you sole control over its defense or settlement. We agree to provide you with reasonable assistance, cooperation, and information in defending the claim at your expense.

Item Number: 5.

9 3. DISCLAIMER. EXCEPT FOR THE EXPRESS WARRANTIES PROVIDED IN THIS AGREEMENT AND TO

THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, WE HEREBY DISCLAIM ALL OTHER

WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT

NOT LIMITED TO, ANY IMPLIED WARRANTIES, DUTIES, OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. CLIENT UNDERSTANDS AND AGREES THAT TYLER DISCLAIMS ANY LIABILITY FOR ERRORS THAT RELATE TO USER ERROR.

4. LIMITATION OF LIABILITY. NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH IN THIS

AGREEMENT, OUR LIABILITY FOR DAMAGES ARISING OUT OF THIS AGREEMENT, WHETHER BASED

ON A THEORY OF CONTRACT OR TORT, INCLUDING NEGLIGENCE AND STRICT LIABILITY, SHALL BE LIMITED TO YOUR ACTUAL DIRECT DAMAGES, NOT TO EXCEED (i) DURING THE INITIAL TERM, AS SET FORTH IN SECTION E(1), TOTAL FEES PAID AS OF THE TIME OF THE CLAIM; OR (ii) DURING ANY RENEWAL TERM, THE THEN-CURRENT ANNUAL SAAS FEES PAYABLE IN THAT RENEWAL TERM. THE

PARTIES ACKNOWLEDGE AND AGREE THAT THE PRICES SET FORTH IN THIS AGREEMENT ARE SET

IN RELIANCE UPON THIS LIMITATION OF LIABILITY AND TO THE MAXIMUM EXTENT ALLOWED

UNDER APPLICABLE LAW, THE EXCLUSION OF CERTAIN DAMAGES, AND EACH SHALL APPLY REGARDLESS OF THE FAILURE OF AN ESSENTIAL PURPOSE OF ANY REMEDY. THE FOREGOING LIMITATION OF LIABILITY SHALL NOT APPLY TO CLAIMS THAT ARE SUBJECT TO SECTIONS F(1) AND F(2).

5. EXCLUSION OF CERTAIN DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW,

IN NO EVENT SHALL WE BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR

CONSEQUENTIAL DAMAGES WHATSOEVER, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

6. Insurance. During the course of performing services under this Agreement, we agree to maintain the following levels of insurance: (i) Commercial General Liability of at least $1,000,000 per occurrence and $2,000,000 aggregate; (ii) Automobile Liability of $1,000,000 combined single limit; (iii) Professional Liability (inclusive of cyber protection) of $1,000,000 per claim and in the aggregate; (iv) Workers Compensation complying with applicable statutory requirements; and (v) Excess/Umbrella Liability of $5,000,000. We will add you as an additional insured to our Commercial General Liability and Automobile Liability policies, which will automatically add you as an additional insured to our Excess/Umbrella Liability policy as well. We will provide you with copies of certificates of insurance upon your written request.

SECTION G – GENERAL TERMS AND CONDITIONS

1. Additional Products and Services. You may purchase additional products and services at the rates set forth in the Investment Summary for twelve (12) months from the Effective Date by executing a mutually agreed addendum. If no rate is provided in the Investment Summary, or those twelve (12) months have expired, you may purchase additional products and services at our then-current pricing, also by executing a mutually agreed addendum. The terms of this Agreement will control any such additional purchase(s), unless otherwise specifically provided in the addendum.

2. Performance Issues and Dispute Resolution.

Item Number: 5.

10 2.1.Notice. You agree to provide us with written notice within thirty (30) days of receipt of an invoice (for invoice disputes) or, in the case of performance, becoming aware of an issue related to our performance under this Agreement.

2.2.Invoice Issues.

2.2.1. If the issue relates to an invoice, your notice must include the following: (i) the issue(s) with the invoice; (ii) the specific fee(s) at issue; and (iii) the corrective action(s) you are requesting of Tyler.

2.2.2. We will provide a response to your notice that (i) supports the validity of the invoice as issued by us; (ii) adjusts the invoice; or (iii) describes our plan to address the issues identified in your notice.

2.2.3. You agree to pay all undisputed fees by the due date. You acknowledge that you forfeit your right to dispute any fees under this Agreement when you fail to pay undisputed fees within sixty (60) days of our notice that the fees are overdue.

2.2.4. In addition to any other remedies available to us under this Agreement or law for nonpayment, we reserve the right to recover from you our reasonable costs of collection associated with your failure to timely pay amounts due under this Agreement.

2.2.5. WE RESERVE THE RIGHT TO SUSPEND PERFORMANCE OF ANY SERVICE, INCLUDING ACCESS TO SAAS SERVICES, FOR FAILURE TO TIMELY PAY UNDISPUTED FEES FIFTEEN (15) DAYS FOLLOWING OUR NOTICE OF INTENT TO DO SO.

2.3.Dispute Resolution. You agree to cooperate with us in trying to reasonably resolve all disputes, including, if requested by either party, appointing a senior representative to meet and engage in good faith negotiations with our appointed senior representative. Senior representatives will convene within thirty (30) days of the written dispute notice, unless otherwise agreed. All meetings and discussions between senior representatives will be deemed confidential settlement discussions not subject to disclosure under Federal Rule of Evidence 408 or any similar applicable state rule. If we fail to resolve the dispute, then the parties shall participate in mediation in an effort to resolve the dispute. If the dispute remains unresolved after mediation, then either of us may assert our respective rights and remedies in a court of competent jurisdiction. Nothing in this section shall prevent you or us from seeking necessary injunctive relief during the dispute resolution procedures.

3. Taxes. The fees in the Investment Summary do not include any taxes, including, without limitation, sales, use, or excise tax. If you are a tax-exempt entity, you agree to provide us with a tax-exempt certificate. Otherwise, we will pay all applicable taxes to the proper authorities, and you will reimburse us for such taxes. If you have a valid direct-pay permit, you agree to provide us with a copy. For clarity, we are responsible for paying our income taxes, both federal and state, as applicable, arising from our performance of this Agreement.

4. Nondiscrimination. We will not discriminate against any employee or applicant in our employment practices or the performance of our duties, responsibilities, and obligations under this Agreement because of race, color, religion, gender, age, disability, religious beliefs, national, or ethnic origin.

We will post, where appropriate, all notices related to nondiscrimination as may be required by applicable law.

5. E-Verify. We use the U.S. Department of Homeland Security’s E-Verify system to confirm the eligibility of all current employees and persons hired during the contract term to perform services within the United States under this Agreement.

Item Number: 5.

11 6. Subcontractors. We will not subcontract any Professional Services specifically for this Agreement without your prior written consent, not to be unreasonably withheld.

7. Binding Effect; No Assignment. This Agreement shall be binding on, and shall be for the benefit of, either your or our successor(s) or permitted assign(s). Neither party may assign this Agreement without the prior written consent of the other party; provided, however, your consent is not required for an assignment by us as a result of a corporate reorganization, merger, acquisition, or purchase of substantially all of our assets.

8. Force Majeure. Except for your payment obligations, neither party will be liable for delays in performing its obligations under this Agreement to the extent that the delay is caused by Force Majeure; provided, however, that within ten (10) business days of the Force Majeure event, the party whose performance is delayed provides the other party with written notice explaining the cause and extent thereof, as well as a request for a reasonable time extension equal to the estimated duration of the Force Majeure event.

9. No Intended Third-Party Beneficiaries. This Agreement is entered into solely for the benefit of you and us. No third party will be deemed a beneficiary of this Agreement, and no third party will have the right to make any claim or assert any right under this Agreement. This provision does not affect the rights of third parties under any Third-Party Terms.

10. Entire Agreement; Amendment. This Agreement represents the entire agreement between you and us with respect to the subject matter hereof, and supersedes any prior agreements, understandings, and representations, whether written, oral, expressed, or implied. Purchase orders submitted by you, if any, are for your internal administrative purposes only, and the terms and conditions contained in those purchase orders will have no force or effect. This Agreement may only be modified in writing, signed by an authorized representative of the party against whom enforcement is sought.

11. Severability. If any term or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement will be considered valid and enforceable to the fullest extent permitted by law.

12. No Waiver. In the event that the terms and conditions of this Agreement are not strictly enforced by either party, such non-enforcement will not act as or be deemed to act as a waiver or modification of this Agreement, nor will such non-enforcement prevent such party from enforcing each and every term of this Agreement thereafter.

13. Independent Contractor. We are an independent contractor for all purposes under this Agreement.

14. Notices. All notices or communications required or permitted as a part of this Agreement, such as notice of an alleged material breach for a termination for cause or a dispute that must be submitted to dispute resolution, must be in writing and will be deemed delivered upon the earlier of the following: (i) actual receipt by the receiving party; or (ii) five (5) days following deposit with registered or certified mail with proper postage affixed and addressed to the other party at the address set forth in this Agreement or such other address as the party may have designated by Item Number: 5.

12 proper notice. The consequences for the failure to receive a notice due to improper notification by the intended receiving party of a change in address will be borne by the intended receiving party.

15. Client Lists. You agree that we may identify you by name in client lists, marketing presentations, and promotional materials.

16. Confidentiality. Both parties recognize that their respective employees and agents, in the course of performance of this Agreement, may be exposed to confidential information and that disclosure of such information could violate rights to private individuals and entities, including the parties.

Confidential information is nonpublic information that a reasonable person would believe to be confidential and includes, without limitation, personal identifying information (e.g., social security numbers) and trade secrets, each as defined by applicable state law. Each party agrees that it will not disclose any confidential information of the other party and further agrees to take all reasonable and appropriate action to prevent such disclosure by its employees or agents. The confidentiality covenants contained herein will survive the termination or cancellation of this Agreement. This obligation of confidentiality will not apply to information that:
i. is in the public domain, either at the time of disclosure or afterwards, except by breach of this Agreement by a party or its employees or agents;
ii. a party can establish by reasonable proof was in that party's possession at the time of initial disclosure;
iii. a party receives from a third party who has a right to disclose it to the receiving party; or iv. is the subject of a legitimate disclosure request under the open records laws or similar applicable public disclosure laws governing this Agreement; provided, however, that in the event you receive an open records or other similar applicable request, you will give us prompt notice and otherwise perform the functions required by applicable law.

17. Business License. In the event a local business license is required for us to perform services hereunder, you will promptly notify us and provide us with the necessary paperwork and/or contact information so that we may timely obtain such license.

18. Governing Law. This Agreement will be governed by and construed in accordance with the laws of your state or commonwealth of domicile, without regard to its rules on conflicts of law.

19. Multiple Originals and Authorized Signatures. This Agreement may be executed in multiple originals, any of which will be independently treated as an original document. Any electronic, faxed, scanned, photocopied, or similarly reproduced signature on this Agreement or any amendment hereto will be deemed an original signature and will be fully enforceable as if an original signature.

Each party represents to the other that the signatory set forth below is duly authorized to bind that party to this Agreement.

20. Cooperative Procurement. To the maximum extent permitted by applicable law, we agree that this Agreement may be used as a cooperative procurement vehicle by eligible jurisdictions. In such cases, we reserve the right to negotiate and customize the terms and conditions set forth herein, including but not limited to pricing, to the scope and circumstances of that cooperative procurement.

21. Data & Insights Solution Terms. Your use of certain Tyler solutions includes Tyler’s Data & Insights Item Number: 5.

13 data platform. Your rights, and the rights of any of your end users, to use Tyler’s Data & Insights data platform is subject to the Data & Insights SaaS Services Terms of Service, available at:
https://www.tylertech.com/terms/data-insights-saas-services-terms-of-service. By signing a Tyler Agreement or Order Form, or accessing, installing, or using any of the Tyler solutions listed at the linked terms, you certify that you have reviewed, understand, and agree to said terms.

22. Contract Documents. This Agreement includes the following exhibits:

Exhibit A Investment Summary
Exhibit B Invoicing and Payment Terms
Exhibit C Service Level Agreement
Exhibit D Third-Party Terms
Exhibit E Statement of Work
IN WITNESS WHEREOF, a duly authorized representative of each party has executed this Agreement as of the date(s) set forth below.

Tyler Technologies, Inc. City of Desert Hot Springs
By: By:

Name: Name:

Title: Title:

Date: Date:

Address for Notices: Address for Notices:

Tyler Technologies, Inc. City of Desert Hot Springs
7701 College Boulevard 65950 Pierson Blvd.

Overland Park, KS 66210 Desert Hot Springs, CA 92240-3044 Attention: Chief Legal Officer Attention: ___________________________ Item Number: 5.

1 Exhibit A
Investment Summary
The Investment Summary details the products and services to be delivered by us, or a third party, as applicable, to you under the Agreement. This Investment Summary is effective as of the Effective Date regardless of any expiration date in the Investment Summary. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. [Sales quotation inserted on the following pages.]

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
Item Number: 5.

2024-602203-X1S1D7 CONFIDENTIAL Page 1
Quoted By: Meghan Graham
Quote Expiration: 05/27/26
Quote Name: City of Desert Hot SpringsEERP
Quote Description: 04-16-26 City of Desert Hot
Springs v.3
Saas Term 5.00
Sales Quotation For: Shipping Address:

City Of Desert Hot Springs
65950 Pierson Blvd
Desert Hot Springs CA 92240-3044
Tyler SaaS and Related Services
Description Qty Imp. Hours Annual Fee
Financial Management
Accounting 1 184 $ 12,494.00
Accounts Payable 1 64 $ 4,677.00
Bid Management 1 32 $ 1,482.00
Budgeting 1 72 $ 3,847.00
Capital Assets 1 64 $ 3,260.00
Cash Management 1 32 $ 2,148.00
Contract Management 1 32 $ 1,415.00
eProcurement (Vendor Access and Punch-Out) 1 40 $ 2,755.00 Project & Grant Accounting 1 52 $ 2,552.00
Purchasing 1 120 $ 5,469.00
Revenue Management
Accounts Receivable 1 104 $ 2,830.00
Cashiering 1 64 $ 4,718.00
General Billing 1 52 $ 1,943.00
Content Management
Content Manager Core includes Onboarding 1 52 $ 9,770.00 Exhibit A Item Number: 5. Page 69 of 307
2024-602203-X1S1D7 CONFIDENTIAL Page 2
Data Insights
Enterprise Analytics and Reporting w Executive Insights 1 132 $ 8,396.00 Additional
Enterprise Forms Processing Software (including Common Form Set) 1 0 $ 5,168.00 TOTAL 1096 $ 72,924.00
Professional Services
Description Quantity Unit Price Ext Discount Extended Price Maintenance Amazon Web Services Configuration Fee 1 $ 1,863.00 $ 1,863.00 $ 0.00 $ 0.00 Capital Assets Import Hours 12 $ 155.00 $ 0.00 $ 1,860.00 $ 0.00 COA Import Hours 12 $ 155.00 $ 0.00 $ 1,860.00 $ 0.00
Executive Insights Implementation 1 $ 4,800.00 $ 0.00 $ 4,800.00 $ 0.00 P-Card Import Format 1 $ 5,500.00 $ 0.00 $ 5,500.00 $ 0.00 Conversions – See Detailed Breakdown Below $ 26,980.00 $ 0.00 Project Management 140 $ 155.00 $ 0.00 $ 21,700.00 $ 0.00 Onsite Implementation 300 $ 155.00 $ 0.00 $ 46,500.00 $ 0.00 Remote Implementation 796 $ 155.00 $ 0.00 $ 123,380.00 $ 0.00 TOTAL $ 232,580.00 $ 0.00
3rd Party Hardware, Software and Services
Description Qty Unit Price
Unit
Discount Total Price
Unit
Maint/SaaS
Maint/SaaS
Discount
Total
Maint/SaaS
Cash Drawer 1 $ 275.00 $ 0.00 $ 275.00 $ 0.00 $ 0.00 $ 0.00 Hand Held Scanner - Model 1960GSR 1 $ 475.00 $ 0.00 $ 475.00 $ 0.00 $ 0.00 $ 0.00 Hand Held Scanner Stand 1 $ 65.00 $ 0.00 $ 65.00 $ 0.00 $ 0.00 $ 0.00 Printer (TM-S9000II) 1 $ 1,660.00 $ 0.00 $ 1,660.00 $ 0.00 $ 0.00 $ 0.00 TOTAL $ 2,475.00 $ 0.00
Exhibit A Item Number: 5. Page 70 of 307
2024-602203-X1S1D7 CONFIDENTIAL Page 3
Summary One Time Fees Recurring Fees
Total Tyler License Fees $ 0.00 $ 0.00
Total SaaS $ 0.00 $ 72,924.00
Total Tyler Services $ 232,580.00 $ 0.00
Total Third-Party Hardware, Software, Services $ 2,475.00 $ 0.00 Summary Total $ 235,055.00 $ 72,924.00
Contract Total $ 599,675.00
Estimated Travel Expenses excl in Contract
Total $ 19,500.00
Client’s purchase of the items listed above is subject to the Comments below Unless otherwise indicated in the contract or amendment thereto, pricing for optional items will be held For six (6) months from the Quote date or the Effective Date of the Contract, whichever is later.

Customer Approval: Date:

Print Name: P.O.#:

All Primary values quoted in US Dollars
Detailed Breakdown of Conversions (Included in Summary Total) Description Qty Unit Price Unit Discount Extended Price Financials
Accounting 1 $ 4,000.00 $ 0.00 $ 4,000.00
Accounts Payable 1 $ 6,200.00 $ 0.00 $ 6,200.00
Contracts 1 $ 3,000.00 $ 0.00 $ 3,000.00
Project Accounting 1 $ 4,000.00 $ 0.00 $ 4,000.00
Purchase Orders 1 $ 3,600.00 $ 0.00 $ 3,600.00
Revenue Management
General Billing 1 $ 6,180.00 $ 0.00 $ 6,180.00
TOTAL $ 26,980.00
Exhibit A Item Number: 5. Page 71 of 307
2024-602203-X1S1D7 CONFIDENTIAL Page 4
Optional Tyler SaaS and Related Services
Description Qty Imp. Hours Annual Fee
Revenue
Resident Access 1 64 $ 3,610.00
Additional
ACFR Statement Builder 1 52 $ 10,450.00
TOTAL: 116 $ 17,660.00
Optional Tyler Annual Services
Description Qty Imp. Hours Annual Fee
Recurring Services
PACE 9 1 0 $ 12,150.00
TOTAL: 0 $ 12,150.00
Optional Professional Services
Description Quantity Unit Price Ext. Discount Extended Price Maintenance Investment Assessment - PACE 24 $ 175.00 $ 0.00 $ 4,200.00 $ 0.00 Onsite Implementation 32 $ 155.00 $ 0.00 $ 4,960.00 $ 0.00 Remote Implementation 84 $ 155.00 $ 0.00 $ 13,020.00 $ 0.00 TOTAL $ 22,180.00 $ 0.00
Optional Transaction Fees
Description
General Billing
Optional 3rd Party Hardware, Software and Services
Exhibit A Item Number: 5. Page 72 of 307
2024-602203-X1S1D7 CONFIDENTIAL Page 5
Description Qty Unit Price
Unit
Discount Total Price
Unit
Maint/SaaS
Maint/SaaS
Discount
Total
Maint/SaaS
Pattern Stream Automated Document System -
Implementation 56 $ 175.00 $ 0.00 $ 9,800.00 $ 0.00 $ 0.00 $ 0.00 Pattern Stream Automated Document System -
SaaS 1 $ 0.00 $ 0.00 $ 0.00 $ 12,600.00 $ 0.00 $ 12,600.00 TOTAL $ 9,800.00 $ 12,600.00
Comments
Tyler's quote contains estimates of the amount of services needed, based on our preliminary understanding of the scope, level of engagement, and timeline as defined in the Statement of Work (SOW) for your project. The actual amount of services required may vary, based on these factors.

Tyler's pricing is based on the scope of proposed products and services contracted from Tyler. Should portions of the scope of products or services be altered by the Client, Tyler reserves the right to adjust prices for the remaining scope accordingly.

Unless otherwise noted, prices submitted in the quote do not include travel expenses incurred in accordance with Tyler's then-current Business Travel Policy.

Tyler's prices do not include applicable local, city or federal sales, use excise, personal property or other similar taxes or duties, which you are responsible for determining and remitting. Installations are completed remotely but can be done onsite upon request at an additional cost.

In the event Client cancels services less than four (4) weeks in advance, Client is liable to Tyler for (i) all non-refundable expenses incurred by Tyler on Client's behalf; and (ii) daily fees associated with the cancelled services if Tyler is unable to re-assign its personnel.

The Implementation Hours included in this quote assume a work split effort of 50% Client and 50% Tyler.

Implementation Hours are scheduled and delivered in four (4) or eight (8) hour increments.

Tyler provides onsite training for a maximum of 12 people per class. In the event that more than 12 users wish to participate in a training class or more than one occurrence of a class is needed, Tyler will either provide additional days at then-current rates for training or Tyler will utilize a Train-the-Trainer approach whereby the client designated attendees of the initial training can thereafter train the remaining users.

Exhibit A Item Number: 5. Page 73 of 307
2024-602203-X1S1D7 CONFIDENTIAL Page 6
As a new Tyler client, you are entitled to a 14-day or a 30-day trial of the Managed Detection and Response cybersecurity service. Please reference https://www.tylertech.com/services/tyler-detect for more information on the service and contact [email protected] to initiate the trial.

Tyler currently supports the following identity providers (IdP's) for use with Tyler back-office solutions: Microsoft Active Directory through Azure AD, ADFS or Okta AD agent, Google Cloud Identity, Okta, and Identity Automation Rapid Identity. Any requirement by you to use an IdP not supported by Tyler will require additional costs, available upon request.

Content Manager Core includes up to 1TB of storage. Should additional storage be needed it may be purchased as needed at an annual fee of $5,000 per TB.

Amazon Web Services (AWS) has provided a credit in the amount of $1,863 in sponsorship of your project.

Tyler Software may include artificial intelligence (“AI”) features that are provided as an administrative convenience, designed to analyze data or make suggestions, subject to changing laws applicable in your local jurisdiction. Client is responsible for independently validating the accuracy of data analyzed or suggestions provided via AI features and using such features only to the extent permissible under applicable law.

General Billing conversion includes: Standard - CID, Recurring Invoices, Bills(Header, Detail), Payment History, Invoices - up to 5 years Financial library includes: standard A/P check, standard EFT/ACH, standard Purchase order, standard Contract, 1099M, 1099INT, 1099S, 1099NEC and 1099G.

Accounting conversion includes: Actuals (total balances only) up to 5 years, Budgets (total balances only) up to 5 years Accounts Payable conversion includes: Standard - Vendors, Remit Addresses, 1099 Amounts, Check History(Header, Detail) - up to 5 years, Invoices (Header, Detail) - up to 5 years
In the event Client acquires from Tyler any edition of Content Manager software other than Enterprise Edition, the license for Content Manager is restricted to use with Tyler applications only. If Client wishes to use Content Manager software with non-Tyler applications, Client must purchase or upgrade to Content Manager Enterprise Edition.

Contracts conversion includes: Standard
Your rights, and the rights of any of your end users, to use Tyler’s Data & Insights SaaS Services, or certain Tyler solutions which include Tyler’s Data & Insights data platform, are subject to the Terms of Services, available at https://www.tylertech.com/terms/data-insightssaas-services-terms-of-service. By signing this sales quotation, or accessing, installing, or using any of the Tyler solutions listed at the linked terms, you certify that you have reviewed, understand, and agree to said terms.

Exhibit A Item Number: 5. Page 74 of 307
2024-602203-X1S1D7 CONFIDENTIAL Page 7
General Billing library includes: standard invoice, standard statement, standard general billing receipt and standard miscellaneous receipt.

PACE Services: Includes the listed number of PACE days and 3 passes to Tyler Connect annually, along with one Investment assessment for every three years of PACE services purchased. PACE Flex provides the client with an option to consume PACE days either remotely or inperson at no additional cost. On-site PACE sessions must be scheduled in 3-day increments, and the client will be responsible for all travel costs incurred. For clients not yet live on Enterprise ERP, the first annual term for PACE commences on the 1st day of the month in which Phase 1 project activities are scheduled to be completed. All project-based post-live work will be provided by the Phase 1 project teams, as stated in the project plan. The PACE Project Manager will engage with the client toward the end of Phase 1 to establish continuity. For clients live on Enterprise ERP, the first annual term for PACE commences on the 1st day of the month following the date of the client's signature on the applicable sales quotation, amendment, or purchase order. The PACE annual term runs for 12 full calendar months. Upon expiration of the first annual term, the term will renew automatically for an additional one (1) year term at the current rate plus the client's contracted annual maintenance increase percentage unless terminated in writing by either party at least thirty (30) days prior to the end of the term. PACE days may only be utilized on live modules. Tyler Connect passes for the current year are available to clients with a cycle start date on or before March 1. Clients with a cycle start date of April 1 or later will be eligible for Tyler Connect passes the following year. PACE Days, Investment Assessments, and Tyler Connect passes expire at the conclusion of the term. No credit will be granted for unused days, assessments, or passes.

Project Accounting conversion includes: Standard, Actuals - up to 5 years, Budgets - up to 5 years Standard Project Management responsibilities include project plan creation, initial stakeholder presentation, bi-weekly status calls, updating of project plan task statuses, and go-live planning activities.

Purchase Orders conversion includes: Standard - Open POs, Closed POs - up to 5 years The SaaS Setup Fee for your project has been discounted by 100% by credits sponsored and provided by Amazon Web Services (AWS).

Your purchase of Accounts Payable includes Fraud, Risk & Compliance for Accounts Payable.

Exhibit A Item Number: 5. Page 75 of 307
1 Exhibit B
Invoicing and Payment Terms
We will provide you with the software and services set forth in the Investment Summary of the Agreement. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement.

Invoicing: We will invoice you for the applicable software and services in the Investment Summary as set forth below. Your rights to dispute any invoice are set forth in the Agreement.

1. Tyler Annual Services.

1.1. SaaS Services. SaaS Fees are invoiced on an annual basis, beginning on the commencement of the initial term as set forth in Section E(1) of this Agreement. Your annual SaaS fees for the initial term are set forth in the Investment Summary. Upon expiration of the initial term, your annual SaaS fees will be at our then-current rates.

1.2. Other Annual Services. Fees for annual services other than SaaS Services are invoiced on an annual basis, beginning with the availability of the service. Your annual fees for the initial term are set forth in the Investment Summary. Upon expiration of the initial term, your annual fees will be at our then-current rates.

2. Tyler Services.

2.1. Professional Services Generally: Unless otherwise indicated below, fees for Tyler services are invoiced as delivered.

2.2. Consulting Services: Fixed fee Consulting Services will be invoiced 50% upon your acceptance of the Best Practice Recommendations, by module, and 50% upon your acceptance of custom desktop procedures, by module.

2.3. Conversions: Fixed-fee conversions are invoiced 50% upon initial delivery of the converted Data, by conversion option, and 50% upon Client acceptance to load the converted Data into Live/Production environment, by conversion option. Where conversions are quoted as estimated, we will bill you the actual services delivered on a time and materials basis.

2.4. Requested Modifications to the Tyler Software: Requested modifications to the Tyler Software are invoiced (i) 50% upon delivery of specifications and (ii) 50% upon delivery of the applicable modification. You must report any failure of the modification to conform to the specifications within thirty (30) days of delivery; otherwise, the modification will be deemed to be in compliance with the specifications after the 30-day window has passed. You may still report Defects to us as set forth in this Agreement.

2.5. Other Fixed Price Services: Other fixed price services are invoiced as delivered. For the avoidance of doubt, where “Project Planning Services” are provided, payment will be due upon delivery of the Implementation Planning document. Dedicated Project Management services, if any, will be billed monthly in arrears, beginning on the first day of the month immediately following initiation of project planning. Strategic Program Management Services, if any, will be billed monthly in arrears, beginning on the first day of the month immediately following initiation of program planning.

Item Number: 5.

2 3. Hardware & Third-Party Products.

3.1. Hardware: Hardware costs, if any, are invoiced upon delivery.

3.2. Hardware Maintenance: The first year maintenance fee for hardware is invoiced upon delivery of the hardware. Subsequent annual maintenance fees for hardware are invoiced annually, in advance, at then-current rates, upon each anniversary thereof.

3.3. Third-Party Services: Fees for Third-Party Services, if any, are invoiced as delivered, along with applicable expenses, at the rates set forth in the Investment Summary.

3.4. Third Party Software. License Fees for Third Party Software, in any, are invoiced when the applicable Third Party Software is made available to you for download.

3.5. Third Party Software Maintenance: The first year maintenance fee for the Third Party Software is invoiced when it is made available to you for downloading. Subsequent annual maintenance fees for Third Party Software are invoiced annually, in advance, at then-current rates, upon each anniversary thereof.

3.6. Third-Party SaaS Services. Third-Party SaaS Services fees, if any, are invoiced on an annual basis, commencing with availability of the respective Third-Party SaaS Services. Pricing for the first year of Third-Party SaaS Services is indicated in the Investment Summary. Unless express stated otherwise, pricing for subsequent years will be at then-current rates.

4. Transaction Fees. Unless paid directly by an end user at the time of transaction, per transaction (call, message, etc.) fees are invoiced on a monthly basis. Fees are indicated in the Investment Summary and may be increased by Tyler upon notice of no less than thirty (30) days.

5. Expenses. The service rates in the Investment Summary do not include travel expenses. Expenses for Tyler delivered services will be billed as incurred and only in accordance with our then-current Business Travel Policy.

Payment. Payment for undisputed invoices is due within forty-five (45) days of the invoice date. We prefer to receive payments electronically. Our electronic payment information is available by contacting [email protected].

Item Number: 5.

1 Exhibit C

SERVICE LEVEL AGREEMENT
I. Agreement Overview
This SLA operates in conjunction with, and does not supersede or replace any part of, the Agreement. It outlines the information technology service levels related to the availability of the Tyler SaaS Services that you have requested us to provide. All other support services are documented in the Support Call Process.

This SLA does not apply to any Third-Party SaaS Services.

II. Definitions. Except as defined below, all defined terms have the meaning set forth in the Agreement.

Actual Attainment: The percentage of time the Tyler Software is available during a calendar month, calculated as follows: (Service Availability – Downtime) ÷ Service Availability.

Client Error Incident: Any service unavailability resulting from your applications, content or equipment, or the acts or omissions of any of your service users or third-party providers over whom we exercise no control.

Downtime: Those minutes during Service Availability, as defined below, when all users cannot launch, login, search or save primary data in the Tyler Software. Downtime does not include those instances in which only a Defect is present.

Emergency Maintenance Window: (1) maintenance that is required to patch a critical security vulnerability; (2) maintenance that is required to prevent an imminent outage of Service Availability; or (3) maintenance that is mutually agreed upon in writing by Tyler and the Client.

Planned Downtime: Downtime that occurs during a Standard or Emergency Maintenance window.

Service Availability: The total number of minutes in a calendar month that the Tyler Software is capable of receiving, processing, and responding to requests, excluding Planned Downtime, Client Error Incidents, denial of service attacks and Force Majeure. Service Availability only applies to Tyler Software being used in the production environment.

Standard Maintenance: Routine maintenance to the Tyler Software and infrastructure. Standard Maintenance is limited to five (5) hours per week.

III. Service Availability
a. Your Responsibilities
Whenever you experience Downtime, you must make a support call according to the procedures outlined in the Support Call Process. You will receive a support case number. b. Our Responsibilities
When our support team receives a call from you that Downtime has occurred or is occurring, we will work Item Number: 5.

2 with you to identify the cause of the Downtime (including whether it may be the result of Planned Downtime, a Client Error Incident, denial of service attack or Force Majeure). We will also work with you to resume normal operations.
c. Client Relief
Our targeted Attainment Goal is 100%. You may be entitled to credits as indicated in the Client Relief Schedule found below. Your relief credit is calculated as a percentage of the SaaS Fees paid for the calendar month.

In order to receive relief credits, you must submit a request through one of the channels listed in our Support Call Process within fifteen (15) days of the end of the applicable month. We will respond to your relief request within thirty (30) days of receipt.

The total credits confirmed by us will be applied to the SaaS Fee for the next billing cycle. Issuing of such credit does not relieve us of our obligations under the Agreement to correct the problem which created the service interruption.

Credits are only payable when Actual Attainment results in eligibility for credits in consecutive months and only for such consecutive months.

Client Relief Schedule
Actual Attainment Client Relief

99.99% - 99.70% Remedial action will be taken

99.69% - 98.50% 2% of SaaS Fees paid for applicable month

98.49% - 97.50% 4% of SaaS Fees paid for applicable month

97.49% - 96.50% 6% of SaaS Fees paid for applicable month

96.49% - 95.50% 8% of SaaS Fees paid for applicable month Below 95.50% 10% of SaaS Fees paid for applicable month * Notwithstanding language in the Agreement to the contrary, Recovery Point Objective is one (1) hour.

IV. Maintenance Notifications
We perform Standard Maintenance during limited windows that are historically known to be reliably low-traffic times. If and when maintenance is predicted to occur during periods of higher traffic, we will provide advance notice of those windows and will coordinate to the greatest extent possible with you.

Not all maintenance activities will cause application unavailability. However, if Tyler anticipates that activities during a Standard or Emergency Maintenance window may make the Tyler Software unavailable, we will provide advance notice, as reasonably practicable, that the Tyler Software will be unavailable during the maintenance window.

Item Number: 5.

1 Exhibit D
Third-Party Terms
DocOrigin Terms. Your use of Tyler Forms software and forms is subject to the DocOrigin End User License Agreement available for download here: https://eclipsecorp.us/eula/. By signing a Tyler Agreement or Order Form including Tyler forms software or forms, or accessing, installing, or using Tyler Forms software or forms, you agree that you have read, understood, and agree to such terms.

ThinPrint Terms. Your use of Tyler Forms software and forms is subject to the End User License Agreement terms for ThinPrint Engine, ThinPrint License Server, and Connected Gateway found here: https://www.thinprint.com/en/legal-notes/eula/. By signing a Tyler Agreement or Order Form, or accessing, installing, or using Tyler Forms software or forms, you agree that you have read, understood, and agree to such terms.

Item Number: 5.

1 Exhibit E
Statement of Work
[Statement of Work inserted on the following pages.]

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
Item Number: 5.

City of Desert Hot Springs, CA
SOW from Tyler Technologies, Inc.
3/24/2026
Presented to:

City of Desert Hot Springs, CA
65950 Pierson Blvd
Desert Hot Springs, CA 92240-3044
Contact:

Katharina Howard
Email: [email protected]
1 Tyler Drive, Yarmouth, Maine 04096
Exhibit E
Item Number: 5.

Table of Contents
PART 1: EXECUTIVE SUMMARY............................................................................................................... 1 Project Overview............................................................................................................................. 1 Introduction ........................................................................................................................................ 1 Project Goals....................................................................................................................................... 1 Methodology....................................................................................................................................... 1 PART 2: PROJECT FOUNDATION ............................................................................................................. 3 Project Governance ......................................................................................................................... 3 Project Scope Control ...................................................................................................................... 4 Managing Scope and Project Change ................................................................................................. 4 Change Control ................................................................................................................................... 4 Change Request Management............................................................................................................ 4 Acceptance Process ......................................................................................................................... 6 Roles and Responsibilities................................................................................................................ 6 Tyler Roles & Responsibilities............................................................................................................. 6 Tyler Executive Manager............................................................................................................. 7 Tyler Implementation Manager.................................................................................................. 7 Tyler Project Manager................................................................................................................. 7 Tyler Implementation Consultant............................................................................................... 8 Tyler Sales ................................................................................................................................... 8 Tyler Technical Services.............................................................................................................. 8 Desert Hot Springs Roles & Responsibilities....................................................................................... 9 Desert Hot Springs Executive Sponsor........................................................................................ 9 Desert Hot Springs Steering Committee..................................................................................... 9 Desert Hot Springs Project Manager .......................................................................................... 9 Desert Hot Springs Functional Leads ........................................................................................ 11 Desert Hot Springs Power Users............................................................................................... 11 Desert Hot Springs End Users ................................................................................................... 12 Desert Hot Springs Technical Lead............................................................................................ 12 Desert Hot Springs Change Management Lead........................................................................ 12 PART 3: PROJECT PLAN........................................................................................................................... 13 Project Stages................................................................................................................................. 13 Initiate and Plan ................................................................................................................................ 14 Initial Coordination ................................................................................................................... 14 Project/Phase Planning............................................................................................................. 15 Infrastructure Planning ............................................................................................................. 16 Exhibit E
Item Number: 5.

Stakeholder Meeting................................................................................................................. 17 This work package is not applicable.......................................................................................... 18 Control Point 1: Initiate & Plan Stage Acceptance.................................................................... 18 Assess & Define................................................................................................................................. 18 Solution Orientation.................................................................................................................. 18 Current & Future State Analysis................................................................................................ 19 This work package is not applicable.......................................................................................... 20 Conversion Assessment ............................................................................................................ 20 This work package is not applicable.......................................................................................... 22 Control Point 2: Assess & Define Stage Acceptance................................................................. 22 Prepare Solution ............................................................................................................................... 22 Initial System Deployment........................................................................................................ 22 Configuration ............................................................................................................................ 23 Process Refinement .................................................................................................................. 24 Conversion Delivery .................................................................................................................. 26 This work package is not applicable.......................................................................................... 27 This work package is not applicable.......................................................................................... 27 Control Point 3: Prepare Solution Stage Acceptance................................................................ 27 Production Readiness ....................................................................................................................... 28 Solution Validation.................................................................................................................... 28 Go-Live Readiness..................................................................................................................... 29 End User Training...................................................................................................................... 30 Control Point 4: Production Readiness Stage Acceptance........................................................ 31 Production......................................................................................................................................... 31 Go-Live ...................................................................................................................................... 31 Transition to Client Services...................................................................................................... 33 Post Go-Live Activities............................................................................................................... 34 Control Point 5: Production Stage Acceptance......................................................................... 34 Close.................................................................................................................................................. 35 Phase Closeout.......................................................................................................................... 35 Project Closeout........................................................................................................................ 36 Control Point 6: Close Stage Acceptance.................................................................................. 37 General Assumptions......................................................................................................................37 Project............................................................................................................................................... 37 Organizational Change Management............................................................................................... 38 Resources and Scheduling ................................................................................................................ 38 Data................................................................................................................................................... 38 Facilities............................................................................................................................................. 39 Glossary .........................................................................................................................................40 PART 4: APPENDICES ............................................................................................................................... 43 Conversion .....................................................................................................................................43 Enterprise ERP Conversion Summary ............................................................................................... 43 Exhibit E
Item Number: 5.

Accounting ................................................................................................................................ 43 Accounts Payable ...................................................................................................................... 43 Contracts................................................................................................................................... 43 Project Accounting.................................................................................................................... 44 Purchase Orders........................................................................................................................ 44 General Billing ........................................................................................................................... 44 Additional Appendices................................................................................................................45 This work package is not applicable.................................................................................................. 45 Project Timeline..........................................................................................................................46 ERP Project Timeline ......................................................................................................................... 46 Data & Insights Project Plan.............................................................................................................. 46 This work package is not applicable.................................................................................................. 47 Exhibit E
Item Number: 5.

Part 1: Executive Summary
Project Overview
Introduction
Tyler Technologies (“Tyler”) is the largest and most established provider of integrated software and technology services focused solely on the public sector. Tyler’s end-to-end solutions empower public sector entities including local, state, provincial and federal government, to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients gain actionable insights that solve problems in their communities.

Project Goals
This Statement of Work (“SOW”) documents the methodology, implementation stages, activities, and roles and responsibilities, and project scope listed in the Investment Summary of the Agreement between Tyler and the client(collectively the “Project”).

The overall goals of the project are to:
 Successfully implement the contracted scope on time and on budget  Increase operational efficiencies and empower users to be more productive  Improve accessibility and responsiveness to external and internal customer needs  Overcome current challenges and meet future goals
Methodology
This is accomplished by the client and Tyler working as a partnership and Tyler utilizing its depth of implementation experience. While each Project is unique, all will follow Tyler’s six-stage methodology. Each of the six stages is comprised of multiple work packages, and each work package includes a narrative description, objectives, tasks, inputs, outputs/deliverables, assumptions, and a responsibility matrix.

Tailored specifically for Tyler’s public sector clients, the project methodology contains Stage Acceptance Control Points throughout each Phase to ensure adherence to scope, budget, timeline controls, effective communications, and quality standards. Clearly defined, the project methodology repeats consistently across Phases, and is scaled to meet the Desert Hot Springs’s complexity and organizational needs.

Exhibit E
Item Number: 5.

The methodology adapts to both single-phase and multiple-phase projects.

To achieve Project success, it is imperative that both the client and Tyler commit to including the necessary leadership and governance. During each stage of the Project, it is expected that the client and Tyler Project teams work collaboratively to complete tasks. An underlying principle of Tyler’s Implementation process is to employ an iterative model where the Desert Hot Springs’s business processes are assessed, configured, validated, and refined cyclically in line with the project budget. This approach is used in multiple stages and work packages as illustrated in the graphic below.

The delivery approach is systematic, which reduces variability and mitigates risks to ensure Project success. As illustrated, some stages, along with work packages and tasks, are intended to be overlapping by nature to complete the Project efficiently and effectively.

Exhibit E
Item Number: 5.

Part 2: Project Foundation
Project Governance
Project governance is the management framework within which Project decisions are made. The role of Project governance is to provide a decision-making approach that is logical, robust, and repeatable. This allows organizations to have a structured approach for conducting its daily business in addition to project related activities.

This section outlines the resources required to meet the business needs, objectives, and priorities for the Project, communicate the goals to other Project participants, and provide support and guidance to accomplish these goals. Project governance defines the structure for escalation of issues and risks, Change Control review and authority, and Organizational Change Management activities. Throughout the Statement of Work Tyler has provided RACI Matrices for activities to be completed throughout the implementation which will further outline responsibilities of different roles in each stage. Further refinement of the governance structure, related processes, and specific roles and responsibilities occurs during the Initiate & Plan Stage.

The chart below illustrates an overall team perspective where Tyler and the client collaborate to resolve Project challenges according to defined escalation paths. If project managers do not possess authority to determine a solution, resolve an issue, or mitigate a risk, Tyler implementation management and the client Steering Committee become the escalation points to triage responses prior to escalation to the client and Tyler executive sponsors. As part of the escalation process, each Project governance tier presents recommendations and supporting information to facilitate knowledge transfer and issue resolution. The client and Tyler executive sponsors serve as the final escalation point.

Exhibit E
Item Number: 5.

Project Scope Control
Managing Scope and Project Change
Project Management governance principles contend that there are three connected constraints on a Project:
budget, timeline, and scope. These constraints, known as the “triple constraints” or project management triangle, define budget in terms of financial cost, labor costs, and other resource costs. Scope is defined as the work performed to deliver a product, service or result with the specified features and functions, while time is simply defined as the schedule. The Triple Constraint theory states that if you change one side of the triangle, the other two sides must be correspondingly adjusted. For example, if the scope of the Project is increased, cost and time to complete will also need to increase. The Project and executive teams will need to remain cognizant of these constraints when making impactful decisions to the Project. A simple illustration of this triangle is included here, showing the connection of each item and their relational impact to the overall Scope.

A pillar of any successful project is the ability to properly manage scope while allowing the appropriate level of flexibility to incorporate approved changes. Scope and changes within the project will be managed using the change control process outlined in the following section.

Change Control
It may become necessary to change the scope of this Project due to unforeseeable circumstances (e.g., new constraints or opportunities are discovered). This Project is being undertaken with the understanding that Project scope, schedule, and/or cost may need to change to produce optimal results for stakeholders.

Changes to contractual requirements will follow the change control process specified in the final contract, and as described below.

Change Request Management
Should the need for a change to Project scope, schedule, and/or cost be identified during the Project, the change will be brought to the attention of the Steering Committee and an assessment of the change will occur. While such changes may result in additional costs and delays relative to the schedule, some changes may result in less cost to the Desert Hot Springs; for example, the client may decide it no longer needs a deliverable originally defined in the Project. The Change Request will include the following information:

Exhibit E
Item Number: 5.

 The nature of the change.
 A good faith estimate of the additional cost or associated savings to the Desert Hot Springs, if any.  The timetable for implementing the change.
 The effect on and/or risk to the schedule, resource needs or resource responsibilities.

The client will use its good faith efforts to either approve or disapprove any Change Request within ten (10) Business Days (or other period as mutually agreeable between Tyler and the Desert Hot Springs). Any changes to the Project scope, budget, or timeline must be documented and approved in writing using a Change Request form. These changes constitute a formal amendment to the Statement of Work and will supersede any conflicting term in the Statement of Work.

Exhibit E
Item Number: 5.

Acceptance Process
The implementation of a Project involves many decisions to be made throughout its lifecycle. Decisions will vary from higher level strategy decisions to smaller, detailed Project level decisions. It is critical to the success of the Project that each Desert Hot Springs office or department designates specific individuals for making decisions on behalf of their offices or departments.

Both Tyler and the client will identify representative project managers. These individuals will represent the interests of all stakeholders and serve as the primary contacts between the two organizations.

The coordination of gaining Desert Hot Springs feedback and approval on Project deliverables will be critical to the success of the Project. The client project manager will strive to gain deliverable and decision approvals from all authorized Desert Hot Springs representatives. Given that the designated decision-maker for each department may not always be available, there must be a designated proxy for each decision point in the Project. Assignment of each proxy will be the responsibility of the leadership from each Desert Hot Springs department. The proxies will be named individuals that have the authorization to make decisions on behalf of their department.

The following process will be used for accepting Deliverables and Control Points:
 The client shall have five (5) business days from the date of delivery, or as otherwise mutually agreed upon by the parties in writing, to accept each Deliverable or Control Point. If the client does not provide acceptance or acknowledgement within five (5) business days, or the otherwise agreed upon timeframe, not to be unreasonably withheld, Tyler deems the Deliverable or Control Point as accepted.
 If the client does not agree the Deliverable or Control Point meets requirements, the client shall notify Tyler project manager(s), in writing, with reasoning within five (5) business days, or the otherwise agreed-upon timeframe, not to be unreasonably withheld, of receipt of the Deliverable.  Tyler shall address any deficiencies and redeliver the Deliverable or Control Point. The client shall then have two (2) business days from receipt of the redelivered Deliverable or Control Point to accept or again submit written notification of reasons for rejecting the milestone. If the client does not provide acceptance within two (2) business days, or the otherwise agreed upon timeframe, not to be unreasonably withheld, Tyler deems the Deliverable or Control Point as accepted.

Roles and Responsibilities
The following defines the roles and responsibilities of each Project resource for the client and Tyler. Roles and responsibilities may not follow the organizational chart or position descriptions at the Desert Hot Springs, but are roles defined within the Project. It is common for individual resources on both the Tyler and Desert Hot Springs project teams to fill multiple roles. Similarly, it is common for some roles to be filled by multiple people.

Tyler Roles & Responsibilities
Tyler assigns a project manager prior to the start of each Phase of the Project (some Projects may only be one Phase in duration). Additional Tyler resources are assigned as the schedule develops and as needs arise.

Exhibit E
Item Number: 5.

Tyler Executive Manager
Tyler executive management has indirect involvement with the Project and is part of the Tyler escalation process. This team member offers additional support to the Project team and collaborates with other Tyler department managers as needed to escalate and facilitate implementation Project tasks and decisions.  Provides clear direction for Tyler staff on executing on the Project Deliverables to align with satisfying the client’s overall organizational strategy.
 Authorizes required Project resources.
 Resolves all decisions and/or issues not resolved at the implementation management level as part of the escalation process.
 Acts as the counterpart to the client’s executive sponsor.

Tyler Implementation Manager
 Tyler implementation management has indirect involvement with the Project and is part of the Tyler escalation process. The Tyler project managers consult implementation management on issues and outstanding decisions critical to the Project. Implementation management works toward a solution with the Tyler Project Manager or with Desert Hot Springs management as appropriate. Tyler executive management is the escalation point for any issues not resolved at this level.  Assigns Tyler Project personnel.
 Provides support for the Project team.
 Provides management support for the Project to ensure it is staffed appropriately and staff have necessary resources.
 Monitors Project progress including progress towards agreed upon goals and objectives.

Tyler Project Manager
 The Tyler project manager(s) provides oversight of the Project, coordination of Tyler resources between departments, management of the Project budget and schedule, effective risk, and issue management, and is the primary point of contact for all Project related items. As requested by the Desert Hot Springs, the Tyler Project Manager provides regular updates to the client Steering Committee and other Tyler governance members. Tyler Project Manager’s role includes responsibilities in the following areas:

Contract Management
 Validates contract compliance throughout the Project.  Ensures Deliverables meet contract requirements.
 Acts as primary point of contact for all contract and invoicing questions.  Prepares and presents contract milestone sign-offs for acceptance by the client project manager(s).  Coordinates Change Requests, if needed, to ensure proper Scope and budgetary compliance.

Planning
 Delivers project planning documents.
 Defines Project tasks and resource requirements.
 Develops initial Project schedule and Project Management Plan.  Collaborates with the client project manager(s) to plan and schedule Project timelines to achieve ontime implementation.

Exhibit E
Item Number: 5.

Implementation Management
 Tightly manages Scope and budget of Project to ensure Scope changes and budget planned versus actual are transparent and handled effectively and efficiently.  Establishes and manages a schedule and Tyler resources that properly support the Project Schedule and are also in balance with Scope/budget.
 Establishes risk/issue tracking/reporting process between the client and Tyler and takes all necessary steps to proactively mitigate these items or communicate with transparency to the client any items that may impact the outcomes of the Project.
 Collaborates with the client’s project manager(s) to establish key business drivers and success indicators that will help to govern Project activities and key decisions to ensure a quality outcome of the project.
 Collaborates with the client’s project manager(s) to set a routine communication plan that will aide all Project team members, of both the client and Tyler, in understanding the goals, objectives, status, and health of the Project.

Resource Management
 Acts as liaison between Project team and Tyler manager(s).  Identifies and coordinates all Tyler resources across all applications, Phases, and activities including development, forms, installation, reports, implementation, and billing.  Provides direction and support to Project team.
 Manages the appropriate assignment and timely completion of tasks as defined in the Project Schedule, task list, and Go-Live Checklist.
 Assesses team performance and adjusts as necessary.
 Consulted on in Scope 3rd party providers to align activities with ongoing Project tasks.

Tyler Implementation Consultant
 Completes tasks as assigned by the Tyler project manager(s).  Documents activities for services performed by Tyler.  Guides the client through software validation process following configuration.  Assists during Go-Live process and provides support until the client transitions to Client Services.  Facilitates training sessions and discussions with the client and Tyler staff to ensure adequate discussion of the appropriate agenda topics during the allotted time.  May provide conversion review and error resolution assistance.

Tyler Sales
 Supports Sales to Implementation knowledge transfer during Initiate & Plan.  Provides historical information, as needed, throughout implementation.  Participates in pricing activities if additional licensing and/or services are needed.

Tyler Technical Services
 Maintains Tyler infrastructure requirements and design document(s).  Involved in system infrastructure planning/review(s).  Provides first installation of licensed software with initial database on servers.  Supports and assists the project team with technical/environmental issues/needs.  Deploys Tyler products.

Exhibit E
Item Number: 5.

Desert Hot Springs Roles & Responsibilities
Desert Hot Springs resources will be assigned prior to the start of each Phase of the Project. One person may be assigned to multiple Project roles.

Desert Hot Springs Executive Sponsor
The client executive sponsor provides support to the Project by providing strategic direction and communicating key issues about the Project and its overall importance to the organization. When called upon, the executive sponsor also acts as the final authority on all escalated Project issues. The executive sponsor engages in the Project, as needed, to provide necessary support, oversight, guidance, and escalation, but does not participate in day-to-day Project activities. The executive sponsor empowers the client steering committee, project manager(s), and functional leads to make critical business decisions for the Desert Hot Springs.
 Champions the project at the executive level to secure buy-in.  Authorizes required project resources.
 Actively participates in organizational change communications.

Desert Hot Springs Steering Committee
The client steering committee understands and supports the cultural change necessary for the Project and fosters an appreciation for the Project’s value throughout the organization. The steering committee oversees the client project manager and Project through participation in regular internal meetings. The client steering committee remains updated on all Project progress, Project decisions, and achievement of Project milestones. The client steering committee also serves as primary level of issue resolution for the Project.  Works to resolve all decisions and/or issues not resolved at the project manager level as part of the escalation process.
 Attends all scheduled steering committee meetings.
 Provides support for the project team.
 Assists with communicating key project messages throughout the organization.  Prioritizes the project within the organization.
 Ensures the project staffed appropriately and that staff have necessary resources.  Monitors project progress including progress towards agreed upon goals and objectives.  Has the authority to approve or deny changes impacting the following areas:
o Cost
o Scope
o Schedule
o Project Goals
o Desert Hot Springs Policies
o Needs of other client projects
Desert Hot Springs Project Manager
The client shall assign project manager(s) prior to the start of this project with overall responsibility and authority to make decisions related to Project Scope, scheduling, and task assignment. The client Project Manager should communicate decisions and commitments to the Tyler project manager(s) in a timely and efficient manner. When the client project manager(s) do not have the knowledge or authority to make decisions, he or she engages the necessary resources to participate in discussions and make decisions in a Exhibit E
Item Number: 5.

timely fashion to avoid Project delays. The client project manager(s) are responsible for reporting to the client steering committee and determining appropriate escalation points.

Contract Management
 Validates contract compliance throughout the project.  Ensures that invoicing and Deliverables meet contract requirements.  Acts as primary point of contact for all contract and invoicing questions. Collaborates on and approves Change Requests, if needed, to ensure proper scope and budgetary compliance.

Planning
 Reviews and accepts project planning documents.
 Defines project tasks and resource requirements for the client project team.  Collaborates in the development and approval of the project schedule.  Collaborates with Tyler project manager(s) to plan and schedule project timelines to achieve on-time implementation.

Implementation Management
 Tightly manages project budget and scope.
 Collaborates with Tyler project manager(s) to establish a process and approval matrix to ensure that scope changes and budget (planned versus actual) are transparent and handled effectively and efficiently.
 Collaborates with Tyler project manager to establish and manage a schedule and resource plan that properly supports the project schedule as a whole and is also in balance with scope and budget.  Collaborates with Tyler project manager(s) to establish risk and issue tracking and reporting process between the client and Tyler and takes all necessary steps to proactively mitigate these items or communicate with transparency to Tyler any items that may impact the outcomes of the project.  Collaborates with Tyler project manager(s) to establish key business drivers and success indicators that will help to govern project activities and key decisions to ensure a quality outcome of the project.  Routinely communicates with both the client staff and Tyler, aiding in the understanding of goals, objectives, current status, and health of the project by all team members.  Manages the requirements gathering process and ensure timely and quality business requirements are being provided to Tyler.

Resource Management
 Acts as liaison between project team and stakeholders.  Identifies and coordinates all Desert Hot Springs resources across all modules, phases, and activities including data conversions, forms design, hardware and software installation, reports building, and satisfying invoices.
 Provides direction and support to project team.
 Builds partnerships among the various stakeholders, negotiating authority to move the project forward.
 Manages the appropriate assignment and timely completion of tasks as defined.  Assesses team performance and takes corrective action, if needed.  Provides guidance to Desert Hot Springs technical teams to ensure appropriate response and collaboration with Tyler Technical Support Teams to ensure timely response and appropriate resolution.

Exhibit E
Item Number: 5.

 Owns the relationship with in-Scope 3rd party providers and aligns activities with ongoing project tasks.
 Ensures that users have appropriate access to Tyler project toolsets as required.  Conducts training on proper use of toolsets.
 Validates completion of required assignments using toolsets.

Desert Hot Springs Functional Leads
 Makes business process change decisions under time sensitive conditions.  Communicates existing business processes and procedures to Tyler consultants.  Assists in identifying business process changes that may require escalation.  Contributes business process expertise for Current & Future State Analysis.  Identifies and includes additional subject matter experts to participate in Current & Future State Analysis.
 Validates that necessary skills have been retained by end users.  Provides End Users with dedicated time to complete required homework tasks.  Acts as an ambassador/champion of change for the new process and provide business process change support.
 Identifies and communicates any additional training needs or scheduling conflicts to the client project manager.
 Actively participates in all aspects of the implementation, including, but not limited to, the following key activities:
o Task completion
o Stakeholder Meeting
o Project Management Plan development
o Schedule development
o Maintenance and monitoring of risk register
o Escalation of issues
o Communication with Tyler project team
o Coordination of Desert Hot Springs resources
o Attendance at scheduled sessions
o Change management activities
o Modification specification, demonstrations, testing and approval assistance o Data analysis assistance
o Decentralized end user training
o Process testing
o Solution Validation
Desert Hot Springs Power Users
 Participate in project activities as required by the project team and project manager(s).  Provide subject matter expertise on the client business processes and requirements.  Act as subject matter experts and attend Current & Future State Analysis sessions as needed.  Attend all scheduled training sessions.
 Participate in all required post-training processes as needed throughout project.  Test all application configuration to ensure it satisfies business process requirements.  Become application experts.
 Participate in Solution Validation.
 Adopt and support changed procedures.
 Complete all deliverables by the due dates defined in the project schedule.

Exhibit E
Item Number: 5.

 Demonstrate competency with Tyler products processing prior to Go-live.  Provide knowledge transfer to the client staff during and after implementation.  Participate in conversion review and validation.

Desert Hot Springs End Users
 Attend all scheduled training sessions.
 Become proficient in application functions related to job duties.  Adopt and utilize changed procedures.
 Complete all deliverables by the due dates defined in the project schedule.  Utilize software to perform job functions at and beyond Go-live.

Desert Hot Springs Technical Lead
 Coordinates updates and releases with Tyler as needed.  Coordinates the copying of source databases to training/testing databases as needed for training days.
 Coordinates and adds new users, printers and other peripherals as needed.  Validates that all users understand log-on process and have necessary permission for all training sessions.
 Coordinates interface development for Desert Hot Springs third party interfaces.  Develops or assists in creating reports as needed.
 Ensures on-site system meets specifications provided by Tyler.  Assists with software installation as needed.
 Extracts and transmits conversion data and control reports from the Desert Hot Springs’s legacy system per the conversion schedule set forth in the project schedule.

Desert Hot Springs Upgrade Coordination
 Becomes familiar with the software upgrade process and required steps.  Becomes familiar with Tyler’s releases and updates.
 Utilizes Tyler resources to stay abreast of the latest Tyler releases and updates, as well as the latest helpful tools to manage the Desert Hot Springs’s software upgrade process.  Assists with the software upgrade process during implementation.  Manages software upgrade activities post-implementation.  Manages software upgrade plan activities.
 Coordinates software upgrade plan activities with Desert Hot Springs and Tyler resources.  Communicates changes affecting users and department stakeholders.  Obtains department stakeholder acceptance to upgrade production environment.

Desert Hot Springs Change Management Lead
 Validates that users receive timely and thorough communication regarding process changes.  Provides coaching to supervisors to prepare them to support users through the project changes.  Identifies the impact areas resulting from project activities and develops a plan to address them proactively.
 Identifies areas of resistance and develops a plan to reinforce the change.  Monitors post-production performance and new process adherence.

Exhibit E
Item Number: 5.

Part 3: Project Plan
Project Stages
Work Breakdown Structure
The Work Breakdown Structure (WBS) is a hierarchical representation of a Project or Phase broken down into smaller, more manageable components. The top-level components are called “Stages” and the second level components are called “Work Packages”. The work packages, shown below each stage, contain the high-level work to be done. The detailed Project Schedule, developed during Project/Phase Planning and finalized during subsequent stages, lists the tasks to be completed within each work package. Each stage ends with a “Control Point”, confirming the work performed during that stage of the Project has been accepted by the Desert Hot Springs.

Work Breakdown Structure (WBS)

1. Initiate &
Plan

2. Assess &
Define

3. Prepare
Solution

4. Production
Readiness 5. Production 6. Close

1.1 Initial
Coordination

2.1 Solution
Orientation

3.1 Initial System
Deployment

4.1 Solution
Validation 5.1 Go Live 6.1 Phase Close Out

1.2 Project/Phase
Planning

2.2 Current & Future
State Analysis 3.2 Configuration 4.2 Go Live Readiness

5.2 Transition to
Client Services

6.2 Project Close
Out

1.3 Infrastructure
Planning

2.3 Modification
Analysis

3.3 Process
Refinement

4.3 End User
Training

5.3 Post Go Live
Activities

1.4 Stakeholder
Meeting

2.4 Conversion
Assessment

3.4 Conversion
Delivery

1.5 GIS Planning* 2.5 Data Assessment 3.5 Data Delivery

3.6 Modifications*

*Items noted with an asterisk in the graphic above relate to specific products and services. If those products and services are not included in the scope of the contract, these specific work packages will be noted as “This work package is not applicable” in Section 6 of the Statement of Work.

Exhibit E
Item Number: 5.

Initiate and Plan
The Initiate and Plan stage involves Project initiation, infrastructure, and planning. This stage creates a foundation for the Project by identifying and establishing sequence and timing for each Phase as well as verifying scope for the Project. This stage will be conducted at the onset of the Project, with a few unique items being repeated for the additional Phases as needed.

Initial Coordination
Prior to Project commencement, Tyler management assigns project manager(s). Additional Project resources will be assigned later in the Project as a Project schedule is developed. Tyler provides the client with initial Project documents used to gather names of key personnel, their functional role as it pertains to the Project, as well as any blackout dates to consider for future planning. the client gathers the information requested by the provided deadline ensuring preliminary planning and scheduling can be conducted moving the Project forward in a timely fashion. Internally, the Tyler Project Manager(s) coordinate with sales to ensure transfer of vital information from the sales process prior to scheduling a Project Planning Meeting with the Desert Hot Springs’s team. During this step, Tyler will work with the client to establish the date(s) for the Project and Phase Planning session.

Objectives:
 Formally launch the project.
 Establish project governance.
 Define and communicate governance for Tyler.
 Identify Desert Hot Springs project team.

STAGE 1 Initial Coordination
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power Department HeadsEnd UsersTechnical Leads Tyler project team is assigned A R C I I I I I I
Desert Hot Springs project team
is assigned A I R I I I
Provide initial project
documents to the Desert Hot
Springs

A R C C I I
Gather preliminary information
requested I A R C C C C
Sales to implementation
knowledge transfer A R I I I I I
Exhibit E
Item Number: 5.

Create Project Portal to store
project artifacts and facilitate
communication
A R I
Inputs Contract documents
Statement of Work
Outputs/Deliverables Working initial project documents
Project portal
Work package assumptions:
 Project activities begin after the agreement has been fully executed.

Project/Phase Planning
Project and Phase planning provides an opportunity to review the contract, software, data conversions and services purchased, identify applications to implement in each Phase (if applicable), and discuss implementation timeframes.

During this work package Tyler will work with the client to coordinate and plan a formal Project planning meeting(s). This meeting signifies the start of the Project and should be attended by all Desert Hot Springs Project team members and the Tyler Project Manager. The meeting provides an opportunity for Tyler to introduce its implementation methodology, terminology, and Project management best practices to the Desert Hot Springs’s Project Team. This will also present an opportunity for project managers and Project sponsors to begin to discuss Project communication, metrics, status reporting and tools to be used to measure Project progress and manage change.

Tyler will work with the client Project Team to prepare and deliver the Project Management Plan as an output of the planning meeting. This plan will continue to evolve and grow as the Project progresses and will describe how the project will be executed, monitored, and controlled.

During project planning, Tyler will introduce the tools that will be used throughout the implementation. Tyler will familiarize the client with these tools during project planning and make them available for review and maintenance as applicable throughout the project. Some examples are Solution validation plan, issue log, and go-live checklist.

STAGE 1 Project/Phase Planning
Tyler Desert Hot Springs
Exhibit E
Item Number: 5.

RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power Users)Department HeadsEnd UsersTechnical Leads Schedule and
conduct planning
session(s)

A R I C C I
Develop Project
Management Plan A R I C C I
Develop initial
project schedule A R I I I I I I C C I I C I
Inputs Contract documents
Statement of Work
Guide to Starting Your Project
Outputs / Deliverables Acceptance Criteria [only] for Deliverables Project Management Plan Delivery of document
Project Operational Plan Delivery of document
Initial Project Schedule Desert Hot Springs provides acceptance of schedule based on resource availability,
project budget, and goals.

Work package assumptions:
 Desert Hot Springs has reviewed and completed the Guide to Starting Your Project document.

Infrastructure Planning
Procuring required hardware and setting it up properly is a critical part of a successful implementation. Tyler will be responsible for building the environments for a hosted/SaaS deployment, unless otherwise identified in the Agreement. . The client is responsible for the installation, setup and maintenance of all peripheral devices.

Objectives:
 Ensure the Desert Hot Springs’s infrastructure meets Tyler’s application requirements.  Ensure the Desert Hot Springs’s infrastructure is scheduled to be in place and available for use on time.

STAGE 1 Infrastructure Planning
Tyler Desert Hot Springs
Exhibit E
Item Number: 5.

RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power Users)Department HeadsEnd UsersTechnical Leads Initial Infrastructure
Communication A R C C C C
Schedule
Environment
Availability

A R C I
Inputs Initial Infrastructure Requirements
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Completed Infrastructure Requirements Delivery of Requirements Stakeholder Meeting
Communication of the Project planning outcomes to the client Project team, executives and other key stakeholders is vital to Project success. The Stakeholder meeting is a strategic activity to inform, engage, gain commitment, and instill confidence in the client team. During the meeting, the goals and objectives of the Project will be reviewed along with detail on Project scope, implementation methodology, roles and responsibilities, Project timeline and schedule, and keys to Project success.

Objectives:
 Formally present and communicate the project activities and timeline.  Communicate project expectations.

STAGE 1 Stakeholder Meeting
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Create Stakeholder
Meeting Presentation I A R I I I I C I
Review Stakeholder
Meeting Presentation I C A R C
Exhibit E
Item Number: 5.

Perform Stakeholder
Meeting Presentation I A R I I I I C I I I I I I
Inputs Agreement
SOW
Project Management Plan
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Stakeholder Meeting Presentation
Work package assumptions:
 None
This work package is not applicable.

Control Point 1: Initiate & Plan Stage Acceptance
Acceptance criteria for this stage includes completion of all criteria listed below.

Note: Advancement to the Assess & Define stage is not dependent upon Tyler’s receipt of this stage acceptance.

Initiate & Plan Stage Deliverables:
 Project Management Plan
 Initial Project Schedule
Initiate & Plan stage acceptance criteria:
 All stage deliverables accepted based on acceptance criteria previously defined  Project governance defined
 Project portal made available to the Desert Hot Springs  Stakeholder meeting complete
Assess & Define
The Assess & Define stage will provide an opportunity to gather information related to current Desert Hot Springs business processes. This information will be used to identify and define business processes utilized with Tyler software. The client collaborates with Tyler providing complete and accurate information to Tyler staff and assisting in analysis, understanding current workflows and business processes.

Solution Orientation
The Solution Orientation provides the Project stakeholders a high-level understanding of the solution functionality prior to beginning the current and future state analysis. The primary goal is to establish a foundation for upcoming conversations regarding the design and configuration of the solution.

Exhibit E
Item Number: 5.

Tyler utilizes a variety of tools for the Solution Orientation, focusing on Desert Hot Springs team knowledge transfer such as: eLearning, documentation, or walkthroughs. The client team will gain a better understanding of the major processes and focus on data flow, the connection between configuration options and outcome, integration, and terminology that may be unique to Tyler’s solution.

Objectives:
 Provide a basic understanding of system functionality.  Prepare the client for current and future state analysis.

STAGE 2 Solution Orientation
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Provide pre-requisites A R I I I I I
Complete pre-requisites A R C C
Conduct orientation A R I I I I I
Inputs Solution orientation materials
Training Plan
Current & Future State Analysis
The Current & Future State Analysis provides the Project stakeholders and Tyler an understanding of process changes that will be achieved with the new system.

The client and Tyler will evaluate current state processes, options within the new software, pros and cons of each based on current or desired state and make decisions about the future state configuration and processing. This may occur before or within the same timeframe as the configuration work package. The options within the new software will be limited to the scope of this implementation and will make use of standard Tyler functionality.

The client will adopt the existing Tyler solution wherever possible to avoid project schedule and quality risk from over customization of Tyler products. It is the Desert Hot Springs’s responsibility to verify that in-scope requirements are being met throughout the implementation if functional requirements are defined as part of the contract. The following guidelines will be followed when evaluating if a modification to the product is required:
 A reasonable business process change is available.
 Functionality exists which satisfies the requirement.  Configuration of the application satisfies the requirement.  An in-scope modification satisfies the requirement.

Exhibit E
Item Number: 5.

Requirements that are not met will follow the agreed upon change control process and can have impacts on the project schedule, scope, budget, and resource availability.

STAGE 2 Current & Future State Analysis
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Current State process
review A R I I I C C C C C
Discuss future-state
options A R C C C C C C C C
Make future-state
decisions (non-COTS) C C C C C A R I C C
Document anticipated
configuration options
required to support
future state

A R C C C I I I I I
Inputs Desert Hot Springs current state documentation
Solution Orientation completion
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Documentation that describes future-state
decisions and configuration options to support
future-state decisions.

Delivery of document
Work package assumptions:
 Desert Hot Springs attendees possess sufficient knowledge and authority to make future state decisions.
 The client is responsible for any documentation of current state business processes.  The client can effectively communicate current state processes.

This work package is not applicable.

Conversion Assessment
Data Conversions are a major effort in any software implementation. Tyler’s conversion tools facilitate the predictable, repeatable conversion process that is necessary to support a successful transition to the Tyler system. The first step in this process is to perform an assessment of the existing (“legacy”) system(s), to Exhibit E
Item Number: 5.

better understand the source data, risks, and options available. Once the data has been analyzed, the plan for data conversion is completed and communicated to the appropriate stakeholders.

Objectives:
 Communicate a common understanding of the project goals with respect to data.  Ensure complete and accurate source data is available for review/transfer.  Map the data from the source to the Tyler system.
 Document the data conversion/loading approach.

STAGE 2 Data Conversion Assessment
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Extract Data from
Source Systems I C A R
Review and Scrub
Source Data I I I A R C I
Build/Update Data
Conversion Plan R C C C I I I I
Inputs Desert Hot Springs Source data
Desert Hot Springs Source data Documentation (if available) Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Data Conversion Plan built/updated Desert Hot Springs Acceptance of Data Conversion Plan, if Applicable
Work package assumptions:
 Tyler will be provided with data from the Legacy system(s) in a mutually agreed upon format.  Tyler will work with the client representatives to identify business rules before writing the conversion.  Desert Hot Springs subject matter experts and resources most familiar with the current data will be involved in the data conversion planning effort.

Exhibit E
Item Number: 5.

This work package is not applicable.

Control Point 2: Assess & Define Stage Acceptance
Acceptance criteria for this Stage includes completion of all criteria listed below.

Note: Advancement to the Prepare Solution Stage is dependent upon Tyler’s receipt of the Stage Acceptance.

Assess & Define Stage Deliverables:
 Documentation of future state decisions and configuration options to support future state decisions.  Modification specification document.

Assess & Define Stage Acceptance Criteria:
 All stage deliverables accepted based on criteria previously defined.  Solution Orientation is delivered.
 Conversion data extracts are received by Tyler.
 Data conversion plan built.

Prepare Solution
During the Prepare Solution stage, information gathered during the Initiate & Plan and Assess & Define stages will be used to install and configure the Tyler software solution. Software configuration will be validated by the client against future state decisions defined in previous stages and processes refined as needed to ensure business requirements are met.

Initial System Deployment
The timely availability of the Tyler Solution is important to a successful Project implementation. The success and timeliness of subsequent work packages are contingent upon the initial system deployment of Tyler Licensed Software on an approved network and infrastructure. Delays in executing this work package can affect the project schedule.

Objectives:
 All licensed software is installed and operational.
 The client can access the software.

STAGE 3 Initial System Deployment (Hosted/SaaS)*
Tyler Desert Hot Springs
Exhibit E
Item Number: 5.

RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power Users)Department HeadsEnd UsersTechnical Leads Prepare hosted
environment A R I C
Install Licensed
Software for
Included
Environments

A R I C
Install Licensed
Software on Desert
Hot Springs
Devices (if
applicable)

I C A R
Tyler System
Administration
Training (if
applicable)

A R I C
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Licensed Software is Installed on the Server(s) Software is accessible Licensed Software is Installed on Desert Hot
Springs Devices (if applicable)
Software is accessible
Installation Checklist/System Document
Work package assumptions:
 The most current available version of the Tyler Licensed Software will be installed.  The client will provide network access for Tyler modules, printers, and Internet access to all applicable Desert Hot Springs and Tyler Project staff.

Configuration
The purpose of Configuration is to prepare the software product for validation.

Tyler staff collaborates with the client to complete software configuration based on the outputs of the future state analysis performed during the Assess and Define Stage. The client collaborates with Tyler staff iteratively to validate software configuration.

Objectives:
 Software is ready for validation.

Exhibit E
Item Number: 5.

 Educate the client Power User how to configure and maintain software.  Prepare standard interfaces for process validation (if applicable).

STAGE 3 Configuration
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Conduct configuration
training A R I C C
Complete Tyler
configuration tasks
(where applicable)

A R I I I
Complete Desert Hot
Springs configuration
tasks (where applicable)

I C A R C
Standard interfaces
configuration and
training (if applicable)

A R C I C C C
Updates to Solution
Validation testing plan C C A R C C
Inputs Documentation that describes future state decisions and configuration options to support future state decisions.

Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Configured System
Work package assumptions:
 Tyler provides guidance for configuration options available within the Tyler software. The client is responsible for making decisions when multiple options are available.

Process Refinement
Tyler will educate the client users on how to execute processes in the system to prepare them for the validation of the software. The client collaborates with Tyler staff iteratively to validate software configuration options to support future state.

Objectives:

Exhibit E
Item Number: 5.

 Ensure that the client understands future state processes and how to execute the processes in the software.
 Refine each process to meet the business requirements.  Validate standard interfaces, where applicable.
 Validate forms and reports, where applicable.

STAGE 3 Process Refinement
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power Users)Department HeadsEnd UsersTechnical Leads Conduct process
training A R I C I C
Confirm process
decisions I C A R C I C
Test configuration I C A R C
Refine
configuration
(Desert Hot Springs
Responsible)

I C A R C
Refine
configuration (Tyler
Responsible)

A R I I I
Validate interface
process and results I C C A R C C
Update Desert Hot
Springs-specific
process
documentation (if
applicable)

I C A R C
Updates to
Solution Validation
testing plan

C C A R C C
Inputs Initial Configuration
Documentation that describes future state decisions and configuration options to support future state decisions.

Solution validation test plan
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Updated solution validation test plan
Exhibit E
Item Number: 5.

Completed Desert Hot Springs-specific
process documentation (completed by
Desert Hot Springs)
Work package assumptions:
 None
Conversion Delivery
The purpose of this task is to transition the Desert Hot Springs’s data from their source (“legacy”) system(s) to the Tyler system(s). The data will need to be mapped from the legacy system into the new Tyler system format. A well-executed data conversion is key to a successful cutover to the new system(s).

With guidance from Tyler, the client will review specific data elements within the system and identify / report discrepancies. Iteratively, Tyler will collaborate with the client to address conversion discrepancies. This process will allow for clean, reconciled data to transfer from the source system(s) to the Tyler system(s).

Reference Conversion Appendix for additional detail.

Objectives:
 Data is ready for production (Conversion).

STAGE 3 Data Delivery & Conversion
Tyler Desert Hot Springs

RACI MATRIX
KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power Users)Department HeadsEnd UsersTechnical Leads Load Data
for Testing
Pull Data &
Conversion
Balancing
Reports
Map
Conversion
Write & Run
Conversion
Program
Validate
Data
Conversion
Reviews
Completed
Final
Conversion
Report &
Correct
Errors
Exhibit E
Item Number: 5.

Provide data
crosswalks/code
mapping tool

A C R I I I
Populate data
crosswalks/code
mapping tool

I C C A R C
Iterations:

Conversion
Development

A C R I I
Iterations:

Deliver
converted data

A R I I I
Iterations:

Proof/Review
data and
reconcile to
source system

C C C A R C C
Inputs
Data Conversion Plan
Configuration
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Code Mapping Complete / Validated
Conversion Iterations / Reviews Complete Conversion complete, verified, and ready for final pass
Work package assumptions:
 The client will provide a single file layout per source system as identified in the investment summary.  The client subject matter experts and resources most familiar with the current data will be involved in the data conversion effort.
 The client project team will be responsible for completing the code mapping activity, with assistance from Tyler.

This work package is not applicable.

This work package is not applicable.

Control Point 3: Prepare Solution Stage Acceptance
Acceptance criteria for this Stage includes all criteria listed below in each Work Package.

Note: Advancement to the Production Readiness Stage is dependent upon Tyler’s receipt of the Stage Acceptance.

Prepare Solution Stage Deliverables:
 Licensed software is installed.
 Installation checklist/system document.

Exhibit E
Item Number: 5.

 Updated solution design document (Data & Insights only).  Prioritized data sets for review in Tyler system (Data & Insights only).  Conversion iterations and reviews complete.

Prepare Solution Stage Acceptance Criteria:
 All stage deliverables accepted based on criteria previously defined.  Software is configured.
 Solution validation test plan has been reviewed and updated if needed.

Production Readiness
Activities in the Production Readiness stage will prepare the client team for go-live through solution validation, the development of a detailed go-live plan and end user training. A readiness assessment will be conducted with the client to review the status of the project and the organizations readiness for go-live.

Solution Validation
Solution Validation is the end-to-end software testing activity to ensure that the client verifies all aspects of the Project (hardware, configuration, business processes, etc.) are functioning properly, and validates that all features and functions per the contract have been deployed for system use.

Objectives:
 Validate that the solution performs as indicated in the solution validation plan.  Ensure the client organization is ready to move forward with go-live and training (if applicable).

STAGE 4 Solution Validation
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Update Solution
Validation plan A R C C C C
Update test scripts (as
applicable) C C C A R C
Perform testing C C C A R C
Document issues from
testing C C C A R C
Perform required followup on issues A R C C C C
Inputs Solution Validation plan
Exhibit E
Item Number: 5.

Completed work product from prior stages (configuration, business process, etc.) Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Solution Validation Report Desert Hot Springs updates report with testing results
Work package assumptions:
 Designated testing environment has been established.
 Testing includes current phase activities or deliverables only.

Go-Live Readiness
Tyler and the client will ensure that all requirements defined in Project planning have been completed and the Go-Live event can occur, as planned. A go-live readiness assessment will be completed identifying risks or actions items to be addressed to ensure the client has considered its ability to successfully Go-Live. Issues and concerns will be discussed, and mitigation options documented. Tyler and the client will jointly agree to move forward with transition to production. Expectations for final preparation and critical dates for the weeks leading into and during the Go-Live week will be planned in detail and communicated to Project teams.

Objectives:
 Action plan for go-live established.
 Assess go-live readiness.
 Stakeholders informed of go-live activities.

STAGE 4 Go-Live Readiness
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Perform Readiness
Assessment I A R C C I C I I I I I I
Conduct Go-Live planning
session A R C C C C C C C
Order peripheral
hardware (if applicable) I A R C
Confirm procedures for
Go-Live issue reporting &
resolution

A R I I I I C C I I I I I
Develop Go-Live checklist A R C C C C I C C
Exhibit E
Item Number: 5.

Final system
infrastructure review
(where applicable)

A R C C
Inputs Future state decisions
Go-live checklist
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Updated go-live checklist Updated Action plan and Checklist for go-live delivered to the Desert Hot Springs
Work package assumptions:
 None
End User Training
End User Training is a critical part of any successful software implementation. Using a training plan previously reviewed and approved, the Project team will organize and initiate the training activities.

Train the Trainer: Tyler provides one occurrence of each scheduled training or implementation topic. Desert Hot Springs users who attended the Tyler sessions may train additional users. Additional Tyler led sessions may be contracted at the applicable rates for training.

Tyler will provide standard application documentation for the general use of the software. It is not Tyler’s responsibility to develop Desert Hot Springs specific business process documentation. Desert Hot Springs-led training labs using Desert Hot Springs specific business process documentation if created by the client can be added to the regular training curriculum, enhancing the training experiences of the end users.

Objectives:
 End users are trained on how to use the software prior to go-live.  The client is prepared for on-going training and support of the application.

STAGE 4 End User Training
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Update training plan A R C C I C
End User training (Tylerled) A R C C C I C C C
Train-the-trainer A R C C C I C
Exhibit E
Item Number: 5.

End User training
(Desert Hot Springs-led) C C A R I C C C
Inputs Training Plan
List of End Users and their Roles / Job Duties
Configured Tyler System
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
End User Training Desert Hot Springs signoff that training was delivered
Work package assumptions:
 The client project team will work with Tyler to jointly develop a training curriculum that identifies the size, makeup, and subject-area of each of the training classes.  Tyler will work with the client as much as possible to provide end-user training in a manner that minimizes the impact to the daily operations of Desert Hot Springs departments.  The client will be responsible for training new users after go-live (exception—previously planned or regular training offerings by Tyler).

Control Point 4: Production Readiness Stage Acceptance
Acceptance criteria for this stage includes all criteria listed below. Advancement to the Production stage is dependent upon Tyler’s receipt of the stage acceptance.

Production Readiness stage deliverables:
 Solution Validation Report.
 Update go-live action plan and/or checklist.
 End user training.

Production Readiness stage acceptance criteria:
 All stage deliverables accepted based on criteria previously defined.  Go-Live planning session conducted.

Production
Following end user training the production system will be fully enabled and made ready for daily operational use as of the scheduled date. Tyler and the client will follow the comprehensive action plan laid out during Go-Live Readiness to support go-live activities and minimize risk to the Project during go-live. Following golive, Tyler will work with the client to verify that implementation work is concluded, post go-live activities are scheduled, and the transition to Client Services is complete for long-term operations and maintenance of the Tyler software.

Go-Live
Following the action plan for Go-Live, defined in the Production Readiness stage, the client and Tyler will complete work assigned to prepare for Go-Live.

Exhibit E
Item Number: 5.

The client provides final data extract and Reports from the Legacy System for data conversion and Tyler executes final conversion iteration, if applicable. If defined in the action plan, the client manually enters any data added to the Legacy System after final data extract into the Tyler system.

Tyler staff collaborates with the client during Go-Live activities. The client transitions to Tyler software for day-to day business processing.

Some training topics are better addressed following Go-Live when additional data is available in the system or based on timing of applicable business processes and will be scheduled following Go-Live per the Project Schedule.

Objectives:
 Execute day to day processing in Tyler software.
 Desert Hot Springs data available in Production environment.

STAGE 5 Go-Live
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Provide final source data
extract, if applicable C C A R
Final source data pushed
into production
environment, if
applicable

A C R I C C C
Proof final converted
data, if applicable C C C A R C
Complete Go-Live
activities as defined in
the Go-Live action plan

C C C A R C I C
Provide Go-Live
assistance A R C C I C C I C I C
Inputs Comprehensive Action Plan for Go-Live
Final source data (if applicable)
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Data is available in production environment Desert Hot Springs confirms data is available in production environment
Exhibit E
Item Number: 5.

Work package assumptions:
 The client will complete activities documented in the action plan for Go-Live as scheduled.  External stakeholders will be available to assist in supporting the interfaces associated with the GoLive live process.  The client business processes required for Go-Live are fully documented and tested.  The client Project team and subject matter experts are the primary point of contact for the end users when reporting issues during Go-Live.
 The client Project Team and Power User’s provide business process context to the end users during Go-Live.

Transition to Client Services
This work package signals the conclusion of implementation activities for the Phase or Project with the exception of agreed-upon post Go-Live activities. The Tyler project manager(s) schedules a formal transition of the client onto the Tyler Client Services team, who provides the client with assistance following Go-Live, officially transitioning the client to operations and maintenance.

Objectives:
 Ensure no critical issues remain for the project teams to resolve.  Confirm proper knowledge transfer to the client teams for key processes and subject areas.

STAGE 5 Transition to Client Services
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Transfer Desert Hot
Springs to Client Services
and review issue
reporting and resolution
processes

I I A I I R I I C C C
Review long term
maintenance and
continuous
improvement

A R C C C
Inputs Open item/issues List
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Client Services Support Document
Exhibit E
Item Number: 5.

Work package assumptions:
 No material project issues remain without assignment and plan.

Post Go-Live Activities
Some implementation activities are provided post-production due to the timing of business processes, the requirement of actual production data to complete the activities, or the requirement of the system being used in a live production state.

Objectives:
 Schedule activities that are planned for after Go-Live.  Ensure issues have been resolved or are planned for resolution before phase or project close.

STAGE 5 Post Go-Live Activities
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Schedule contracted
activities that are
planned for delivery
after go-live

A R C C C C I C C I C C
Determine resolution
plan in preparation for
phase or project close
out

A R C C C I C C I C
Inputs List of post Go-Live activities
Outputs /
Deliverables
Acceptance Criteria [only] for
Deliverables
Updated issues log
Work package assumptions:
 System is being used in a live production state.

Control Point 5: Production Stage Acceptance
Acceptance criteria for this Stage includes completion of all criteria listed below:

Exhibit E
Item Number: 5.

 Advancement to the Close stage is not dependent upon Tyler’s receipt of this Stage Acceptance.  Converted data is available in production environment.

Production Stage Acceptance Criteria:
 All stage deliverables accepted based on criteria previously defined.  Go-Live activities defined in the Go-Live action plan completed.  Client services support document is provided.

Close
The Close stage signifies full implementation of all products purchased and encompassed in the Phase or Project. The client transitions to the next cycle of their relationship with Tyler (next Phase of implementation or long-term relationship with Tyler Client Services).

Phase Closeout
This work package represents Phase completion and signals the conclusion of implementation activities for the Phase. The Tyler Client Services team will assume ongoing support of the client for systems implemented in the Phase.

Objectives:
 Agreement from Tyler and the client teams that activities within this phase are complete.

STAGE 6 Phase Close Out
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Reconcile project budget
and status of contract
Deliverables

I A R I I C
Hold post phase review
meeting A R C C C C C C C C C
Release phasedependent Tyler project
resources

A R I I
Participants Tyler Desert Hot Springs
Project Leadership Project Manager
Project Manager Project Sponsor(s)
Implementation Consultants Functional Leads, Power Users, Technical Leads
Exhibit E
Item Number: 5.

Technical Consultants (Conversion, Deployment,
Development)
Client Services
Inputs Contract
Statement of Work
Project artifacts
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Final action plan (for outstanding items)
Reconciliation Report
Post Phase Review
Work package assumptions:
 Tyler deliverables for the phase have been completed.

Project Closeout
Completion of this work package signifies final acceptance and formal closing of the Project.

At this time the client may choose to begin working with Client Services to look at continuous improvement Projects, building on the completed solution.

Objectives:
 Confirm no critical issues remain for the project teams to resolve.  Determine proper knowledge transfer to the client teams for key processes and subject areas has occurred.
 Verify all deliverables included in the Agreement are delivered.

STAGE 6 Project Close Out
Tyler Desert Hot Springs
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power U )Department HeadsEnd UsersTechnical Leads Conduct post project
review A R C C C C C C C C C
Deliver post project
report to Desert Hot
Springs and Tyler
leadership

I A R I I C
Exhibit E
Item Number: 5.

Release Tyler project
resources

A R I I
Inputs Contract
Statement of Work
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Post Project Report Desert Hot Springs acceptance; Completed report indicating all project Deliverables and
milestones have been completed
Work package assumptions:
 All project implementation activities have been completed and approved.  No critical project issues remain that have not been documented and assigned.  Final project budget has been reconciled and invoiced.  All Tyler deliverables have been completed.

Control Point 6: Close Stage Acceptance
Acceptance criteria for this Stage includes completion of all criteria listed below.

Close Stage Deliverables:
 Post Project Report.

Close Stage Acceptance Criteria:
 Completed report indicating all Project deliverables and milestones have been completed.

General Assumptions
Tyler and the client will use this SOW as a guide for managing the implementation of the Tyler Project as provided and described in the Agreement. There are a few assumptions which, when acknowledged and adhered to, will support a successful implementation. Assumptions related to specific work packages are documented throughout the SOW. Included here are general assumptions which should be considered throughout the overall implementation process.

Project
 Project activities will begin after the Agreement has been fully executed.  The client Project Team will complete their necessary assignments in a mutually agreed upon timeframe to meet the scheduled go-live date, as outlined in the Project Schedule.  Sessions will be scheduled and conducted at a mutually agreeable time.  Additional services, software modules and modifications not described in the SOW or Agreement will be considered a change to this Project and will require a Change Request Form as previously referenced in the definition of the Change Control Process.

Exhibit E
Item Number: 5.

 Tyler will provide a written agenda and notice of any prerequisites to the client project manager(s) ten (10) business days or as otherwise mutually agreed upon time frame prior to any scheduled onsite or remote sessions, as applicable.  Tyler will provide guidance for configuration and processing options available within the Tyler software. If multiple options are presented by Tyler, the client is responsible for making decisions based on the options available.
 Implementation of new software may require changes to existing processes, both business and technical, requiring the client to make process changes.  The client is responsible for defining, documenting, and implementing their policies that result from any business process changes.

Organizational Change Management
Unless otherwise contracted by Tyler, Desert Hot Springs is responsible for managing Organizational Change.

Impacted Desert Hot Springs resources will need consistent coaching and reassurance from their leadership team to embrace and accept the changes being imposed by the move to new software. An important part of change is ensuring that impacted Desert Hot Springs resources understand the value of the change, and why they are being asked to change.

Resources and Scheduling
 Desert Hot Springs resources will participate in scheduled activities as assigned in the Project Schedule.
 The client team will complete prerequisites prior to applicable scheduled activities. Failure to do so may affect the schedule.
 Tyler and the client will provide resources to support the efforts to complete the Project as scheduled and within the constraints of the Project budget.
 Abbreviated timelines and overlapped Phases require sufficient resources to complete all required work as scheduled.
 Changes to the Project Schedule, availability of resources or changes in Scope will be requested through a Change Request. Impacts to the triple constraints (scope, budget, and schedule) will be assessed and documented as part of the change control process.  The client will ensure assigned resources will follow the change control process and possess the required business knowledge to complete their assigned tasks successfully. Should there be a change in resources, the replacement resource should have a comparable level of availability, change control process buy-in, and knowledge.
 The client makes timely Project related decisions to achieve scheduled due dates on tasks and prepare for subsequent training sessions. Failure to do so may affect the schedule, as each analysis and implementation session is dependent on the decisions made in prior sessions.  The client will respond to information requests in a comprehensive and timely manner, in accordance with the Project Schedule.
 The client will provide adequate meeting space or facilities, including appropriate system connectivity, to the project teams including Tyler team members.  For on-site visits, Tyler will identify a travel schedule that balances the needs of the project and the employee.

Data
 Data will be converted as provided and Tyler will not create data that does not exist.

Exhibit E
Item Number: 5.

 The client is responsible for the quality of legacy data and for cleaning or scrubbing erroneous legacy data.
 Tyler will work closely with the client representatives to identify business rules before writing the conversion. The client must confirm that all known data mapping from source to target have been identified and documented before Tyler writes the conversion.  All in-scope source data is in data extract(s).
 Each legacy system data file submitted for conversion includes all associated records in a single approved file layout.
 The client will provide the legacy system data extract in the same format for each iteration unless changes are mutually agreed upon in advance. If not, negative impacts to the schedule, budget and resource availability may occur and/or data in the new system may be incorrect.  The client Project Team is responsible for reviewing the converted data and reporting issues during each iteration, with assistance from Tyler.
 The client is responsible for providing or entering test data (e.g., data for training, testing interfaces, etc.)
Facilities
 The client will provide dedicated space for Tyler staff to work with Desert Hot Springs resources for both on-site and remote sessions. If Phases overlap, Desert Hot Springs will provide multiple training facilities to allow for independent sessions scheduling without conflict.  The client will provide staff with a location to practice what they have learned without distraction.

Exhibit E
Item Number: 5.

Glossary
Word or Term Definition
Acceptance Confirming that the output or deliverable is suitable and conforms to the agreed upon criteria.

Accountable The one who ultimately ensures a task or deliverable is completed; the one who ensures the prerequisites of the task are met and who delegates the work to those responsible. [Also see RACI]
Application A computer program designed to perform a group of coordinated functions, tasks, or activities for the benefit of the user.

Application Programming Interface (API) A defined set of tools/methods to pass data to and received data from Tyler software products
Agreement This executed legal contract that defines the products and services to be implemented or performed.

Business Process The practices, policy, procedure, guidelines, or functionality that the client uses to complete a specific job function.

Business Requirements Document A specification document used to describe Client requirements for contracted software modifications.

Change Request A form used as part of the Change Control process whereby changes in the scope of work, timeline, resources, and/or budget are documented and agreed upon by participating parties.

Change Management Guides how we prepare, equip and support individuals to successfully adopt change in order to drive organizational success & outcomes
Code Mapping [where applicable] An activity that occurs during the data conversion process whereby users equate data (field level) values from the old system to the values available in the new system. These may be one to one or many to one. Example: Old System [Field = eye color] [values = BL, Blu, Blue] maps to New Tyler System [Field = Eye Color] [value = Blue].

Consulted Those whose opinions are sought, typically subject matter experts, and with whom there is two-way communication. [Also see RACI]
Control Point This activity occurs at the end of each stage and serves as a formal and intentional opportunity to review stage deliverables and required acceptance criteria for the stage have been met.

Data Mapping [where applicable] The activity determining and documenting where data from the legacy system will be placed in the new system; this typically involves prior data analysis to understand how the data is currently used in the legacy system and how it will be used in the new system.

Deliverable A verifiable document or service produced as part of the Project, as defined in the work packages.

Go-Live The point in time when the Client is using the Tyler software to conduct daily operations in Production.

Informed Those who are kept up-to-date on progress, often only on completion of the task or deliverable, and with whom there is just one-way communication. [Also see RACI]
Exhibit E
Item Number: 5.

Infrastructure The composite hardware, network resources and services required for the existence, operation, and management of the Tyler software.

Interface A connection to and potential exchange of data with an external system or application. Interfaces may be one way, with data leaving the Tyler system to another system or data entering Tyler from another system, or they may be bi-directional with data both leaving and entering Tyler and another system.

Integration A standard exchange or sharing of common data within the Tyler system or between Tyler applications
Legacy System The software from which a client is converting.

Modification Custom enhancement of Tyler’s existing software to provide features or functions to meet individual client requirements documented within the scope of the Agreement.

On-site Indicates the work location is at one or more of the client’s physical office or work environments.

Organizational Change The process of changing an organization's strategies, processes, procedures, technologies, and culture, as well as the effect of such changes on the organization.

Output A product, result or service generated by a process.

Peripheral devices An auxiliary device that connects to and works with the computer in some way. Some examples: scanner, digital camera, printer.

Phase A portion of the Project in which specific set of related applications are typically implemented. Phases each have an independent start, Go-Live and closure dates but use the same Implementation Plans as other Phases of the Project. Phases may overlap or be sequential and may have different Tyler resources assigned.

Project The delivery of the software and services per the agreement and the Statement of Work. A Project may be broken down into multiple Phases.

RACI A matrix describing the level of participation by various roles in completing tasks or Deliverables for a Project or process.

Individuals or groups are assigned one and only one of the following roles for a given task: Responsible (R), Accountable (A), Consulted (C), or Informed (I).

Remote Indicates the work location is at one or more of Tyler’s physical offices or work environments.

Responsible Those who ensure a task is completed, either by themselves or delegating to another resource. [Also see RACI]
Scope Products and services that are included in the Agreement.

Exhibit E
Item Number: 5.

Solution The implementation of the contracted software product(s) resulting in the connected system allowing users to meet Project goals and gain anticipated efficiencies.

Stage The top-level components of the WBS. Each Stage is repeated for individual Phases of the Project.

Standard Software functionality that is included in the base software (offthe-shelf) package; is not customized or modified.

Statement of Work (SOW) Document which will provide supporting detail to the Agreement defining Project-specific activities, services, and Deliverables.

System The collective group of software and hardware that is used by the organization to conduct business.

Test Scripts The steps or sequence of steps that will be used to validate or confirm a piece of functionality, configuration, enhancement, or Use Case Scenario.

Training Plan Document(s) that indicate how and when users of the system will be trained relevant to their role in the implementation or use of the system.

Validation (or to validate) The process of testing and approving that a specific Deliverable, process, program, or product is working as expected.

Work Breakdown Structure (WBS) A hierarchical representation of a Project or Phase broken down into smaller, more manageable components.

Work Package A group of related tasks within a project.

Exhibit E
Item Number: 5.

Part 4: Appendices
Conversion
Enterprise ERP Conversion Summary
Accounting
Accounting - Actuals
 Summary account balances
 Up to 5 years
Accounting - Budgets
 Original budget, budget adjustments, revised budget summaries for accounts  Up to 5 years
Accounts Payable
Vendors
 Vendor Master file including names, addresses, SSN/FID, contacts, phone numbers  Multiple remittance addresses
 Year-to-date 1099 amounts
Accounts Payable - Checks
 Check header data including vendor, warrant, check number, check date, overall check amount, GL cash account and clearing information
 Check detail data including related document and invoice numbers for each check  Up to 5 years
Accounts Payable - Invoices
 Invoice header data containing general information for the invoice  Invoice detail data containing line-specific information for the invoice  Up to 5 years
Contracts
 Contract header detail with many fields available to convert including fiscal year and period, vendor number, department code, description, enforcement method code, dates for award, approval, entry and expiration, retention information, user-defined type and review codes, status code, user id for entry and approver. Additional fields are also available. A balance forward contract amount is converted, if original amount is required there will be an additional charge and contracts, po’s and invoices must be converted together.

Exhibit E
Item Number: 5.

Project Accounting
Project Accounting Master Tables
 Segments, account strings and fund string allocation table  Requires the use of a Tyler provided (Chart of Accounts) spreadsheet for design and entry of the data to be converted
Project Accounting - Actuals
 Summary project ledger string balances. If linking to GL, must be converted at the same time.  Up to 3 years
Project Accounting – Budget
 Original project ledger budget amounts. If linking to GL, must be converted at the same time.  Up to 3 years
Purchase Orders
 Open purchase orders header data including vendor, buyer, date, accounting information, etc.  Open purchase orders detail data including line-item descriptions, quantities, amounts, etc.  Closed purchase orders detail data, up to 5 years, including line-item descriptions, quantities, amounts, etc.

General Billing
Customer Master Files
 Customer information
General Billing – Recurring Invoices
 General Billing Invoices that are sent on a regular basis  Header records with general information about the invoice  Detail records with line-specific information
General Billing – Bills
 5 years of open and closed invoices
 General Ledger information so open invoices can be processed in Enterprise ERP Exhibit E
Item Number: 5.

Additional Appendices
This work package is not applicable.

Exhibit E
Item Number: 5.

Project Timeline
ERP Project Timeline The Project Timeline establishes a target start and end date for each Phase of the Project. The timeline needs to account for resource availability, business goals, size and complexity of the Project, and task duration requirements. These will be reviewed and adjusted, if needed, during the Initiate and Plan Stage. Refer to the Project Stages section of this SOW for information on work packages associated with each stage of the implementation.

The following dates may be revised based on the date the Agreement is signed and further refined during the course of the project. Tyler requires up to forty-five (45) days to move from Agreement signing to the Initiate & Plan Stage.

Phase Functional Area(s) Modules Start Date Go-Live Date 1 Financials • Accounting
• Accounts Payable
• Bid Management
• Budgeting
• Cash Management
• Capital Assets
• Contract Management
• Purchasing
• E-procurement & Vendor
Access
• Project & Grant Accounting
• Accounts Receivable
• General Billing
• Cashiering
July 2026
or as defined
in the Project
Plan and
mutually
agreed upon
July 2027
or as defined
in the Project
Plan and
mutually
agreed upon
Phase Months:
12 Average
Days/Month:
~11
System Wide • Analytics & Reporting w/
Executive Insights
• Enterprise Forms
• Content Manager Core
• Enterprise ERP Admin &
Security
Exhibit E
Item Number: 5.

Data & Insights Project Plan
Data & Insights Project Plan
Week
1 2 3 4 5 6 7 8 9 10 11 12
Initiate and Plan
Assess and Define
Prepare Solution
Production Readiness
Production
Close
This work package is not applicable.

Exhibit E
Item Number: 5.

SR-26-105
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: City Council Regular Meeting Minutes: April 21, 2026 RECOMMENDATION:

Approve the minutes as presented; or as corrected.

ATTACHMENTS:
1) Draft City Council Regular Meeting Minutes - April 21, 2026 Item Number: 6.

City of Desert Hot Springs

DRAFT ACTION MINUTES
City Council Regular Meeting
6:00 PM - Tuesday, April 21, 2026
Council Chambers
PRESENTATIONS - 5:30 P.M.

Landscaping Certification Training Presentation
The presentation was skipped because no presenter was present.

Introduction and Swearing-In of New Police Officers
Steven Shaw, Police Chief, introduced new Police Officers, Emilio Alvarez and Martin Carrillo; and administered the Oath.

REGULAR SESSION - 6:00 P.M.

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

ROLL CALL

Present:

Council Members: Gary Gardner, Daniel Pitts, Jan Pye
Mayor Pro Tem: Dirk Voss
Mayor: Scott Matas

INVOCATION
Mayor Pro Tem Voss gave the Invocation.

PLEDGE OF ALLEGIANCE
Councilmember Pye led the Pledge of Allegiance.

CITY ATTORNEY REPORT ON CLOSED SESSION
None. There was no closed session held.

Item Number: 6.

City Council
April 21, 2026

APPROVAL OF AGENDA
ACTION: Approve the April 21, 2026 regular meeting agenda and approve the consent calendar in its entirety.

Moved by Mayor Pro Tem Voss
Seconded by Councilmember Gardner
Carried 5-0 by the following votes:

AYES: Pitts, Pye, Voss, Gardner, and Matas

PUBLIC COMMENTS
Caren Godwin expressed concerns regarding traffic safety at Vista Montana.

CITY MANAGER REPORT
Roberta Crncic, Recreation and Community Services Director, DNOB, earth day community cleanup.

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

Mayor Pro Tem Voss reported on the various meetings and events he attended.

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

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

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

PUBLIC HEARINGS:

1. (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;
Item Number: 6.

City Council
April 21, 2026
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.”
Staff Report - SR-26-072 - Pdf
Patricia Villagomez, Planning Manager, presented the staff report.

Tom Donahue, representing the applicant, addressed the City Council.

Nicole Christe, Terra Nova, representing the applicant, addressed the City Council.

There was no public testimony.

Written testimony was received from Abigail Smith on behalf of the Sierra Club, a copy of which was received, distributed, and made a part of the record.

Mayor Matas closed the Public Hearing.

A discussion ensued.

ACTION: Approve Staff recommendation and adopt Resolution No. 2026-006.

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

AYES: Pitts, Pye, Voss, Gardner, and Matas
ADMINISTRATIVE CALENDAR:

2. Adoption of the City of Desert Hot Springs Active Transportation Plan Recommendation:

Adopt the City of Desert Hot Springs Active Transportation Plan.

Staff Report - SR-26-095 - Pdf
Item Number: 6.

City Council
April 21, 2026
Judith Duenas, Administrative Assistant II, presented the staff report and introduced Andrew Prescott of CR Associates who presented the Active Transportation Plan.

ACTION: Approve Staff recommendation.

Moved by Mayor Pro Tem Voss
Seconded by Councilmember Gardner
Carried 5-0 by the following votes:

AYES: Pitts, Pye, Voss, Gardner, and Matas
CONSENT CALENDAR:

3. Lighting and Landscape Maintenance Districts and Drainage Assessment District Initiate Proceedings for the FY2026-27 Levy and Collection of Assessment
Staff Report - SR-26-087 - Pdf
ACTION: Approved Staff recommendation to:
1) Adopt Resolution No. 2026-007 of the City Council initiating proceedings for the levy and collection of assessments for the Citywide Landscape and Lighting Maintenance District No. 1, Zone A and Zone B for Fiscal Year 2026-27;
2) Adopt Resolution No. 2026-008 of the City Council initiating proceedings for the levy and collection of assessments for the Landscape and Lighting Maintenance District No. 2 for Fiscal Year 2026-27; and 3) Adopt Resolution No. 2026-009 of the City Council initiating proceedings for the levy and collection of assessments for the Drainage Assessment District No. 1 for Fiscal Year 2026-27.

4. Formation of a City Council Subcommittee to Study Road Priorities and Funding Mechanisms
Staff Report - SR-26-094 - Pdf
ACTION: Ratified the Mayor’s formation of a City Council subcommittee consisting of Mayor Pro Tem Voss and Councilmember Pitts to evaluate roadway priorities and potential funding mechanisms related to street improvements.

5. Resolution Terminating the Joint Exercise Powers Agreement Which Established the Eastern Riverside County Interoperable Communications Authority (ERICA)
Staff Report - SR-26-093 - Pdf
ACTION: Adopted Resolution No. 2026-010 “A Resolution of the City Council of the City of Desert Hot Springs terminating the Joint Exercise Powers Item Number: 6.

City Council
April 21, 2026
Agreement which established the Eastern Riverside County Interoperable Communications Authority (ERICA).”

6. Resolution Authorizing City Manager to Accept Easements, Grant Deeds, and Quitclaim Deeds for Public Purposes
Staff Report - SR-26-088 - Pdf
ACTION: Adopted Resolution No. 2026-011 “A Resolution of the City Council of the City of Desert Hot Springs authorizing the City Manager to accept and consent to deeds or grants conveying any interest in or easement upon real estate.”

7. Notice of Completion for the Mission Lakes Boulevard and Little Morongo Road - Road Resurfacing Project
Staff Report - SR-26-096 - Pdf
ACTION: Approved the work as performed, accepted the project as completed, and directed the City Manager to file the Notice of Completion for the Mission Lakes Blvd and Little Morongo Road - Road Resurfacing Project.

8. Second Reading and Adoption of An Ordinance Amending Chapter 3.44 of the Municipal Code Revising the City's Purchasing Procedures Staff Report - SR-26-091 - Pdf
ACTION: Approved second reading, read by title only and adopted Ordinance No. 832: "An Ordinance of the City Council of the City of Desert Hot Springs amending Chapter 3.44 (Purchasing) of Title 3 (Revenue and Finance) of the Desert Hot Springs Municipal Code to revise the City’s purchasing procedures."

9. Second Reading and Adoption of An Ordinance Amending Chapter 3.45 of the Municipal Code for Public Works Projects
Staff Report - SR-26-092 - Pdf
ACTION: Approved second reading, read by title only and adopted Ordinance No. 833: "An Ordinance of the City Council of the City of Desert Hot Springs Amending Chapter 3.45 ("Public Works Projects") of Title 3 ("Revenue and Finance") of the Desert Hot Springs Municipal Code to Provide Informal and Formal Bidding Procedures Under the Uniform Public Construction Cost Accounting Act (UPCCA)."

10. Payment Register and City Council Expenditures for the Period of March 1, 2026 to March 31, 2026
Staff Report - SR-26-089 - Pdf
ACTION: Received and filed.

Item Number: 6.

City Council
April 21, 2026

11. Treasurer’s Report as of February 2026
Staff Report - SR-26-090 - Pdf
ACTION: Received and filed.

PUBLIC COMMENTS
None.

ADJOURN
Mayor Matas adjourned the meeting at 7:01 PM.

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

SR-26-098
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: May 5, 2026
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Amending the Fiscal Year 2025-2026 Appropriations (Gann) Limit RECOMMENDATION:

Adopt a Resolution of the City Councilamending the Fiscal Year 2025-2026 Appropriations Limit.

DISCUSSION:

In California, the Gann Spending Limitation Initiative (Proposition 4) was approved by voters in 1979.

This Proposition set Appropriations Limits for state and local governments in California and established procedures for determining those limits annually. Each government entity is required to set its Appropriations Limit each fiscal year with 1978-1979 as the base year. Each subsequent year is modified by using a combination of population change and cost of living adjustment (CPI). On June 17, 2025, the City Council approve the Fiscal Year 2025-2026 Appropriations Limit along with the FY2025-2026 FY2026-2027 Two Year Budget. Since that time, it was discovered that an incorrect number was used in the calculation of the 2025-2026 Appropriations Limit. The amended appropriations limit for Fiscal Year 2025-2026 is $47,131,224.

FISCAL IMPACT:

There is no fiscal impact.

STRATEGIC ALIGNMENT:

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

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

ATTACHMENTS:
1) Resolution for Amended Gann Limit for FY 2025-26
2) 2025-2026 Appropriations (GANN) (GANN) Limit Revised Item Number: 7.

RESOLUTION NO. 2026-______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS, CALIFORNIA, AMENDING THE APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2025-2026
WHEREAS, on November 6, 1979 California voters passed Proposition 4, the Gann Spending Limitation Initiative, thereby enacting Article XIIIB of the California Constitution, and providing the basis for the California legislature to adopt California Government Code §7900 et. seq.; and,
WHEREAS, California Government Code §7910 requires the governing body of each city, at a regularly scheduled meeting or noticed special meeting, to establish by resolution its appropriations limit for the following fiscal year; and WHEREAS, the City’s Administrative Services Department has prepared calculations and documentation required for, and to be used in, the determination of certain matters including the establishment of an appropriations limit for the City’s fiscal year 2025-26; and, WHEREAS, an incorrect number was used in the calculation of the appropriations limit which was then approved by the City Council at regularly scheduled meeting on June 17, 2025; and,
WHEREAS, an amended appropriations limit for the City for fiscal year 2025-26 has been calculated by staff using the correct number revising the annual appropriations subject to such limitation for fiscal year 2025-26 to be $47,131,224.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES HEREBY RESOLVES, DECLARES, DETERMINES, AND ORDERS AS FOLLOWS:

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

Section 2. Amending the Fiscal Year 2025-2026 Appropriations Limit A. That $47,131,224 is hereby established as the appropriations limit for the City of Desert Hot Springs for Fiscal Year 2025-2026.

B. That the findings and methods of calculation setting forth the proceeds of tax calculation and setting forth the appropriations limit calculation, both in Exhibit A, are hereby adopted.

Item Number: 7.

C. That the City reserves the right to revise the factors associated with the calculation of the appropriations limit if such changes or revisions would result in a more advantageous appropriations limit in the future.

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

Section 4. Repeal of Conflicting Provisions.

That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.

Section 5. Effective Date
That this Resolution shall take effect upon its adoption.

Section 6. Certification
That the City Clerk shall certify as to the adoption of this Resolution and shall cause the same to be processed in the manner required by law. [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 7.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Desert Hot Springs on this 5th day of May 2026 by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

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

Jennifer Mizrahi, City Attorney
Item Number: 7.

CITY OF DESERT HOT SPRINGS

APPROPRIATIONS (GANN) LIMIT

PROCEEDS OF TAX CALCULATION
FISCAL YEAR 2025-2026

BUDGETED BUDGETED

PROCEEDS NON-PROCEEDS TOTAL

REVENUE SOURCE OF TAX OF TAX REVENUE
TAXES
Property (1) 4,765,849 $ 4,765,849 $
Sales (2) 10,078,194 $ 10,078,194 $
Recycling Franchise Fees (3) 230,000 $ 230,000 $
Motor Vehicle In-Lieu (4) 4,129,396 $ 4,129,396 $
Business Gross Receipts (5) 260,000 $ 260,000 $
Utility Users (6) 3,350,000 $ 3,350,000 $
Other Taxes (7) 4,300,000 $ 4,300,000 $
FEES
Development Fees (A) 4,438,000 $ 4,438,000 $
Franchise (B) 2,585,000 $ 2,585,000 $
Other Fees, Permits & Licenses (C) 397,990 $ 397,990 $
Fines & Forfeitures (D) 526,345 $ 526,345 $
Administrative Charges (E) 400,000 $ 400,000 $
Intergovernmental (F) 14,573,292 $ 14,573,292 $
Miscellaneous (G) 1,395,352 $ 1,395,352 $
Total $ 27,113,439 $ 24,315,979 $ 51,429,418
% of Total 52.72% 47.28% 100.00%
Allocation of Interest (I) $ 131,799 $ 118,201 $ 250,000 Adjusted Total $ 27,245,238 $ 24,434,180 $ 51,679,418
PAGE 1
Item Number: 7.

APPROPRIATIONS SUBJECT TO THE LIMIT
FY 2025-2026 Total Revenue $ 51,679,418
Less Non-Proceeds of Tax 24,434,180 $
A) Total Appropriations Subject to the Limit 27,245,238 $

APPROPRIATIONS LIMIT
B) FY 2024-2025 Appropriations Limit $ 44,271,298
C) Change Factor % Change Factor
Cost of Living Adjustment - CPI 6.44 1.0644
Population Adjustment - PA 0.02 1.0002
Change Factor (CPI x PA) 1.0646
D) Increase (decrease) in Appropriations Limit 2,859,926 $ E) FY 2025-2026 Appropriations Limit (B x C) $ 47,131,224

REMAINING APPROPRIATIONS CAPACITY
(E - A) $ 19,885,986
Remaining Capacity as Percent of the FY 2025-2026 42.19% Appropriations Limit

CITY OF DESERT HOT SPRINGS

APPROPRIATIONS (GANN) LIMIT CALCULATION
FISCAL YEAR 2025-2026
PAGE 2
Item Number: 7.

COST OF POPULATION APPROPRIATIONS

FISCAL LIVING LIMIT APPROPRIATIONS SUBJECT TO REMAINING

YEAR CHANGE CHANGE LIMIT LIMIT CAPACITY
2007-2008 4.42% 6.23% 20,072,894 $ 7,955,785 $ 12,117,109 $ 2008-2009 4.29% 4.66% 21,909,564 $ 7,685,367 $ 14,224,197 $ 2009-2010 0.62% 2.36% 22,564,660 $ 8,567,083 $ 13,997,577 $ 2010-2011 -2.54% 0.85% 22,178,805 $ 8,272,160 $ 13,906,645 $ 2011-2012 2.51% 5.92% 24,081,746 $ 9,018,910 $ 15,062,836 $ 2012-2013 3.77% 1.32% 25,319,548 $ 9,122,718 $ 16,196,830 $ 2013-2014 5.12% 0.39% 26,719,719 $ 9,846,780 $ 16,872,939 $ 2014-2015 -0.23% 0.60% 26,818,582 $ 9,714,316 $ 17,104,266 $ 2015-2016 3.82% 0.53% 27,990,554 $ 9,804,713 $ 18,185,841 $ 2016-2017 5.37% 0.88% 29,753,959 $ 10,402,937 $ 19,351,022 $ 2017-2018 3.69% 0.78% 31,092,887 $ 10,876,926 $ 20,215,961 $ 2018-2019 3.67% 1.35% 32,669,296 $ 14,332,218 $ 18,337,078 $ 2019-2020 3.85% 0.51% 34,100,211 $ 14,638,188 $ 19,462,023 $ 2020-2021 3.73% -0.08% 35,344,869 $ 17,179,499 $ 18,165,370 $ 2021-2022 5.73% 0.17% 37,433,751 $ 22,131,517 $ 15,302,234 $ 2022-2023 7.55% 0.07% 40,289,946 $ 23,613,378 $ 16,676,568 $ 2023-2024 4.44% 0.68% 42,364,878 $ 25,036,364 $ 17,328,514 $ 2024-2025 3.62% 0.85% 44,271,298 $ 24,069,994 $ 20,201,304 $ 2025-2026 6.44% 0.02% 47,131,224 $ 27,245,238 $ 19,885,986 $

CITY OF DESERT HOT SPRINGS

SUMMARY OF ANNUAL APPROPRIATION (GANN) LIMITS
PAGE 3
Item Number: 7.

SR-26-106
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: May 5, 2026
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Resolution of Intention for Placing Desert Valley Disposal Annual Billings for Services of Residential Properties on the County Tax Rolls, Fiscal Year 2026- 27 RECOMMENDATION:
1) Adopt a Resolution of the City Council Declaring the Intention to Levy Annual Billing for Desert Valley Disposal Inc., Solid Waste Refuse Services for Residential Properties on the County Tax Roll for the Fiscal Year 2026-27;
2) Approving the Attachment F Rate Schedule for July 1, 2026, Rate Year; and 3) Setting a Time and Place for the Public Hearing.

BACKGROUND:

Desert Valley Disposal, Inc. (“DVD”) is the current solid waste refuse services provider for the City’s residents and businesses through the franchise agreement approved on March 18, 2014. The new franchise agreement between the City and DVD has a term effective July 1, 2014, through June 30, 2029.

Pursuant to the franchise agreement, the direct residential billing for solid waste refuse services has been converted from DVD to billing by the City as a levy on the County property tax bill. This amount is in addition to the delinquent billings the City has been levying for the last few years.

In accordance with the Health and Safety Code Section 5470, et seq. the City Council needs to declare its intention to levy assessments for the solid waste refuse services and conduct a Public Hearing. The Public Hearing will be scheduled for May 19, 2026, to consider placement of solid waste refuse billings for residential properties on the tax roll. A notice of public hearing will be published in accordance with applicable laws, which will provide an opportunity for the public to address the City Council prior to consideration of the assessment.

DISCUSSION:

The City has agreed to place solid waste refuse billings for residential properties on the County Tax Roll on behalf of DVD as allowed pursuant to the provisions of Section 5470, et seq. of the Health and Safety Code, and Sections 41900 et seq. of the Public Resources Code. The billing, policies, and procedures of DVD are established by the waste disposal agreement between the City of Desert Hot Springs and DVD as further detailed by Resolution 2014-008.

Item Number: 8.

SR-26-106
As provided in the City of Desert Hot Springs Municipal Code Section 8.04.040, authorizing placement of waste disposal accounts on the tax rolls, the charges shall constitute an assessment on affected properties. Adoption of the resolution will enable the County Auditor-Controller to collect these charges in conjunction with property taxes. An updated listing was provided to the City by DVD on or before May 1, 2026, which will reflect the Assessor’s Parcel Numbers, site addresses, and other information required by the City.

FISCAL IMPACT:

All costs for the placement of annual solid waste refuse service billings on the County tax rolls will be absorbed by DVD. The estimated levy and related financial details will be presented at a Public Hearing on May 19, 2026. Currently, the levy is estimated at 8,160 accounts at $562.53 each with a total of $4,590,210.51 for Fiscal Year 2026-27.

STRATEGIC ALIGNMENT:

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

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

ATTACHMENTS:
1) Resolution of Intention for 2026 Annual Billings
2) DVD Rate Adjustment Application
3) DVD FY2 026-27 SW Tax Levy Annual Report
Item Number: 8.

Resolution No. 2026-______
Date Adopted: May 5, 2026

RESOLUTION NO. 2026-______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

DESERT HOT SPRINGS, COUNTY OF RIVERSIDE, STATE OF

CALIFORNIA, DECLARING THE INTENTION TO LEVY FOR
ANNUAL BILLINGS FOR DESERT VALLEY DISPOSAL INC.

SOLID WASTE REFUSE SERVICES OF RESIDENTIAL
PROPERTIES FOR FISCAL YEAR 2026-27, AND SETTING A

TIME AND PLACE FOR THE PUBLIC HEARING
WHEREAS, the City Council of the City of Desert Hot Springs (the "City Council"), California, has by previous Resolution established the procedures for billing residential customers for solid waste refuse services provided by Desert Valley Disposal, Inc., and pursuant to the provisions of Section 5470, et seq., of the Health and Safety Code of the State of California, and Sections 41900 et seq. of the Public Resources Code of the State of California, have ordered an Annual Report (the "Report") that provides for the levy and collection of residential properties receiving solid waste refuse services on the County of Riverside property tax bill; and,
WHEREAS, the billing, policies, and procedures of Desert Valley Disposal, Inc. are established by the waste disposal agreement between the City of Desert Hot Springs and Desert Valley Disposal, Inc. ("DVD") as further detailed by Resolution No. 2010-040; and WHEREAS, DVD has prepared the Report and said Report has been filed with the City Council; and,
WHEREAS, the Health and Safety Code Section 5470, et seq., and the Public Resources Code Sections 41900 et seq. provides procedures for a waste disposal charge to be collected on the tax rolls in the same manner, by the same person, and at the same time, together with, and not separately from, its general taxes; and;
WHEREAS, the Desert Hot Springs Municipal Code Section 8.04.040 authorizes placing waste disposal accounts on the tax rolls.

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

Section 1. That the above recitals are all true and correct Section 2. Intention: The City of Desert Hot Springs hereby declares that it is its intention to have the Fiscal Year 2026-27 solid waste refuse services for residential customers collected on the tax rolls in the same manner, by the same person, and at the same time, together with, and not separately from, its general taxes.

Section 3. Public Interest: That the City Council hereby finds the collection of the solid waste refuse service charges, together with the general taxes, is in the best interest of the users of the City of Desert Hot Springs.

Section 4. Annual Report: The Report and assessment as presented to the City Council and on file in the office of the City Clerk are hereby confirmed as filed.

Section 5. Special Assessment: That the cost of solid waste refuse service charges for each parcel of land shall constitute a special assessment against that parcel of land in accordance with the Item Number: 8.

Resolution No. 2026-______
Date Adopted: May 5, 2026

provisions of the Government Code of the State of California, and pursuant to Section 8.04.040 of the Desert Hot Springs Municipal Code.

Section 6. Public Hearing(s): The City Council herby declares its intention to conduct a Public Hearing concerning the levy of assessments for the solid waste refuse services in accordance with the Health and Safety Code Section 5470, et seq.

Section 7. Notice: The City shall give notice of the time and place of the Public Hearing to all property owners within the District by causing the publishing of this Resolution once in the local newspaper not less than ten (10) days before the date of the Public Hearing, and by posting a copy of this resolution on the official bulletin board customarily used by the City Council for the posting of notices.

Any interested person may file a written protest with the City Clerk prior to the conclusion of the Public Hearing, or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection and a protest by a property owner shall contain a description sufficient to identify the property owned by such property owner. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard.

Section 8. Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, May 19, 2026, at 6:00 p.m. or as soon thereafter as feasible in the City Council Chambers, located at 11-999 Palm Drive, Desert Hot Springs, California.

Section 9. The City Clerk is hereby authorized and directed to give notice of such hearing as provided by law.
[SIGNATURES FOLLOW ON THE NEXT PAGE]
Item Number: 8.

Resolution No. 2026-______
Date Adopted: May 5, 2026

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

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

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

Jennifer Mizrahi, City Attorney
Item Number: 8.

Resolution No. 2026-______
Date Adopted: May 5, 2026

CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on May 5, 2026, of which meeting all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

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

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

Dated: May 5, 2026
City Clerk of the City of Desert Hot Springs
[SEAL]
Item Number: 8.

4690 E. Mesquite Avenue | P.O. Box 2720 | Palm Springs, CA 92263 | 760-329-5030 | desertvalleydisposal.com February 26, 2026
Ms. Doria Wilms
City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, California 92240
Via Electronic Mail,
Original Hand Delivered
RE: 2026 RATE ADJUSTMENT APPLICATION
Dear Ms. Wilms:

This is our 2026 Rate Adjustment Application to increase maximum rates for solid waste services for the 2026 Rate Year (July 1, 2026, through June 30, 2027). This Application requires administrative approval.

This Application includes the following:

ATTACHMENT 1. Rate Schedule Effective July 1, 2026 (bilingual) ATTACHMENT 2. 2026 30-Day Customer Notice (bilingual)
ATTACHMENT 3. Rate Adjustment Workpapers
ATTACHMENT 4. Facility Price Lists
ATTACHMENT 5. CPI Data
ATTACHMENT 6. Current Rate Schedule Effective July 1, 2025 & 30-Day Customer Notice
This Application also addresses the Debris Abatement Program and the City’s option regarding that program and DVD’s re-investment payment.

BACKGROUND
Rates for solid waste services and the procedure for adjusting those rates were established in 2022 in accordance with a Proposition 218 majority protest proceeding. Rate adjustments for the 2023, 2024, 2025 and 2026 rate years follow the formula prescribed in the Franchise Agreement that proportionately adjusts the Material Component of the rates for annual Item Number: 8.

Ms. Doria Wilms February 26, 2026
2026 RATE ADJUSTMENT APPLICATION

Desert Valley Disposal, Inc.
changes in tip fee costs and adjusts the Service Component for changes in the Consumer Price Index.
(Note, a new Proposition 218 majority protest proceeding will be undertaken for the Rate Years 2027 through 2031.)

RATE ADJUSTMENT FORMULA
The Agreement’s Rate Adjustment Formula combines changes in a Material Component (a factor of tonnage and tip fees) and changes in a Service Component (based on changes in the Consumer Price Index) to arrive at a weighted adjustment for each service sector (Residential, Commercial, and Roll-Off).

Material Component
The Material Component of the rates is adjusted for changes in the Material Cost Index which is a factor of changes in tonnage and tip fees. For 2025, the changes in the Material Cost Index are:
• Residential +3.84%
• Commercial +4.03%.
• Roll-Off (tip fees are billed at cost plus add-on fees at the time service is rendered and therefore excluded from the Material Cost Index formula.) Service Component
The Service Component of the rates accounts for all other costs and is adjusted for changes in the Consumer Price Index (CPI-U, Riverside Area, January to January). The change in the CPI is +3.24% for the 2026 rate adjustment.

Component Weights
The rate adjustment formula proportionately weights the Material and Service Components for each sector. For 2026, the weightings are as follows:

Residential Sector:

Material Component 21.57%
Service Component 78.43%
Total 100.00%
Item Number: 8.

Ms. Doria Wilms February 26, 2026
2026 RATE ADJUSTMENT APPLICATION

Desert Valley Disposal, Inc.

Commercial Sector:

Material Component 17.63%
Service Component 82.37%
Total 100.00%
2026 Rate Adjustments
When proportionately adjusted for both the change in the Material Cost Index and the change in Consumer Price Index, the 2025 rate adjustments are:
• Residential: +3.37%.
• Commercial: +3.38%.
• Roll-Off & Miscellaneous services, +3.24%.
(For comparison purposes. in 2025, the Residential, Commercial, and Roll-Off rate adjustments were +4.67%, +3.93%, and 2.94%, respectively.) Comparative Rates
Table 1 compares the 2025 and 2026 rates for common core services.

Table 1
Rates for Common Core Services
Residential Single Family Cart Service (per month)
2025 Rate
2026 Rate
$45.26
$46.79
Commercial 3-CY Bin, 1xWeek (per month)
2025 Rate
2026 Rate
$319.69
$330.50
Roll-Off 30-CY Debris Box, 4-tons disposed
(per collection)
2025 Rate
2026 Rate
$951.25
$982.07
Advance Customer Notice
The bilingual notice to customers and property owners (ATTACHMENT 2) will be mailed not less than 30-days before July 1, 2026, the effective date of the new rates.

Item Number: 8.

Ms. Doria Wilms February 26, 2026
2026 RATE ADJUSTMENT APPLICATION

Desert Valley Disposal, Inc.
2026-27 SOLID WASTE ASSESSMENT ANNUAL REPORT
Solid waste fees are billed to residential property owners via the County property tax bill following a public hearing of the City Council. For those proceedings, we will prepare and submit the 2026-27 Solid Waste Levy Annual Report by April 13, 2026.

Please note that this year, for the first time, we will be including approximately 643 multifamily properties representing 1,826 dwelling units to the approximately 7,950 single family accounts billed for solid waste services on the County property tax bill. These accounts qualify for this billing method because they are residential dwellings; they utilize individual cart service; and their month-to-month solid waste charges are consistent throughout the rate year. Moving these accounts toCounty property tax roll billing will decrease the number of accounts ultimately placed on the County property tax bill for collection as delinquent.

Further, the addition of these accounts to property tax roll billing will proportionately lessen the administrative costs for all.

DEBRIS ABATEMENT PROGRAM
DVD operates a Debris Abatement Program for the City at a current value of $235,195.06 per year. The cost to perform the Debris Abatement Program is adjusted annually by the change in Consumer Price Index effective July 1, 2026. Effective July 1, 2026, the value of the Debris Abatement Program will increase 3.24% to $242,815.41 per year.

RE-INVESTMENT PAYMENT TO CITY
In accordance with the Franchise Agreement, the City is entitled to receive a re-investment payment from DVD for a one-year extension to the term of the Agreement. That payment is made before the start of each Rate Year. For 2026, the re-investment payment would be $206,480.00.

CITY OPTION
For the current Rate Year, the City elected to extend the term of the Agreement by one year and receive the value of the Debris Abatement Program at no cost in lieu of DVD’s reinvestment payment of $200,000.00. If the City elects to continue the Debris Abatement Program for the 2026 Rate Year, the City has the option to either:
(1) Compensate DVD for the Program ($242,815.41 per annum, paid monthly) and receive a re-investment payment from DVD ($206,480.00):

OR,
Item Number: 8.

Ms. Doria Wilms February 26, 2026
2026 RATE ADJUSTMENT APPLICATION

Desert Valley Disposal, Inc.
(2) Continue the Program at no cost to the City and waive DVD’s re-investment payment.

The City’s selection is to be made on or before May 15th [Franchise Agreement Section 11-3].

We are available to respond to questions and provide additional information as needed.

Respectfully submitted,
Chris Cunningham
President
cc: (Via Electronic Mail only)
Mr. Daniel Porras, P.E., Deputy City Manager/City Engineer Mr. Geoffrey Buchheim, Administrative Services Director Ms. Charmaine McCarvel, Webb Municipal Finance, LLC
APPROVED BY CITY:

By: Date:

Signature
Name
Title
Item Number: 8.