Desert Hot Springs City Council
July 7, 2026

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

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

Item Number: 14.

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

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

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

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

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

Item Number: 14.

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

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

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

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

Item Number: 14.

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

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

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

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

Item Number: 14.

SR-26-171
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 7, 2026
Department: City Manager
Prepared by: Doria Wilms, City Manager
Subject: Professional Services Agreement with Rayce Jonsrud for Tourism and Business Related Services.

RECOMMENDATION:

Authorize the City Manager to execute a Professional Services Agreement with Rayce Jonsrud for services related to Tourism and Business Development as described in the attached Scope of Services in an amount not to exceed $102,000 annually with the option to extend for two additional one-year terms subject to allocation of funds pursuant to a duly approved City budget.

BACKGROUND:

In April of 2025, the City entered into a Professional Services Agreement with Rayce Jonsrud to provide specialized professional services focused on advancing the City’s tourism and hospitality objectives. On January 20, 2026 the City Council approved an amendment to the Professional Services Agreement to extend this work through the remainder of the 25/26 fiscal year.

DISCUSSION:

Since the commencement of services, Mr. Jonsrud has provided measurable value and advanced the City's tourism objectives in support of the City Council's Strategic Plan. Key accomplishments include, but are not limited to:
 Re-establishing and strengthening relationships with local hoteliers, spa operators, and tourism stakeholders following a prolonged period of limited engagement;  Leading the formation of the Miracle Hill Spa Association, a collaborative organization of hotel and spa owners dedicated to partnering with the City to expand tourism, enhance the visitor experience, and support strategic policy and investment initiatives;  Representing the City at industry conferences, trade events, and professional forums to promote Desert Hot Springs as a premier wellness destination and cultivate opportunities for new hotel, spa, and tourism-related investment;
 Planning and coordinating the 2026 Spa Tour, which successfully showcased the City's unique mineral water assets, increased regional and industry awareness, strengthened relationships with key stakeholders, and generated interest in future visitation and investment.

Item Number: 15.

SR-26-171
In addition to these accomplishments, Mr. Jonsrud has established meaningful relationships with the local business community and positioned the City as an active partner in advancing broader Strategic Plan goals and objectives .

To maintain the momentum achieved over the past year and continue implementation of the Strategic Plan, staff recommends approval of a new Professional Services Agreement with Mr. Jonsrud in an amount not to exceed $102,000 annually, with the option to extend the agreement for two additional one-year terms, subject to annual budget appropriations approved by the City Council.

STRATEGIC ALIGNMENT:

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

Goal 2: Hotel/Spa Zone
Double Transient Occupancy Tax in 10 years.

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 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 Desert Hot Springs.

ATTACHMENTS:
1) PSA Rayce Jonsrud
Item Number: 15.

PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND

RAYCE JONSRUD, AN INDIVIDUAL
This Professional Services Agreement (“Agreement”) is made and entered into this 1st day of July, 2026, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the “City,” and Rayce Jonsrud, an individual, hereinafter referred to as “Contractor.” RECITALS:

WHEREAS, the City desires to utilize the services of Contractor, as an independent contractor, to provide the City with specialized services as they relate to business and tourism efforts to promote the City’s tourism and business community (sometimes hereinafter, the “Services”), as described in more particularity in Exhibit “A,” attached hereto and incorporated by reference as the “Scope of Services”; and WHEREAS, Contractor represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS,

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

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

Section 2. SCOPE OF SERVICES
Contractor shall provide to the City the Services on an as-needed and asdirected basis in a manner satisfactory to the City and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions, as described in more detail in the Scope of Services. In the event a conflict exists between this Agreement and the Scope of Services, the former shall supersede. Except where this Agreement specifically provides otherwise, the Contractor is responsible for providing any and all facilities, assets, and resources (including personnel, facilities, equipment, and software) necessary and appropriate for delivery of the Services and to meet the Contractor's obligations under this Agreement. Any City assets to which access is being provided for Item Number: 15.

use by the Contractor (including equipment, software licenses and third party service contracts) are provided on an “as is, where is” basis, and the City does not provide the Contractor any representations or warranties regarding such assets.

Section 3. TERM
This Agreement shall commence July 1, 2026 and shall continue in force and effect in an amount not to exceed $102,000 annually for one year, with the option to extend for two additional one-year terms subject to allocation of funds pursuant to a duly approved City budget.

Section 4. COMPENSATION
The City agrees to pay Contractor for and in consideration of the faithful performance of the services and duties set forth in this Agreement, and Contractor agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, an amount not to exceed One Hundred and Two Thousand Dollars and Zero Cents annually, payable monthly in the amount of $8500.00 per month. The amount of this Agreement shall not exceed One Hundred Two Thousand Dollars and Zero Cents ($102,000) annually.

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

City Manager
City of Desert Hot Springs
[email protected]
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Item Number: 15.

Facsimile: (760) 288-3129
Section 6. EXTRA WORK
At any time during the term of this Agreement, the City may request that Contractor perform Extra Work. As used herein, "Extra Work" means any work which is determined by the City to be necessary for the proper completion of the Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Contractor shall not perform Extra Work without written authorization from the City.

Section 7. TERMINATION
This Agreement may be terminated by the City Manager, in his/her sole discretion, immediately for cause. Either party may terminate this Agreement without cause upon seven days written notice of termination to the other party. Upon termination, Contractor shall be entitled to compensation for services performed up to the effective date of termination, provided that Contractor shall have satisfied all its obligations under this Agreement through and including the effective date of termination and is not otherwise in breach of this Agreement. For clarification, the City Manager in his/her sole discretion shall have the power to terminate this Agreement with or without cause in accordance with this Section.

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

Section 9. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor. Such materials shall not, without prior written consent of the City, be used by Contractor for any purposes other than the performance of the services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Contractor will make all Item Number: 15.

reasonable efforts to keep such information confidential and to limit access only to those who require it for performance, Nothing furnished to Contractor that is otherwise known to Contractor, is generally known in the industry, or has become known to the related industry shall be deemed confidential.

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

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

Section 11. INDEPENDENT CONTRACTOR’S STATUS: NOT AGENT

OF THE CITY
Contractor shall at all times during the term of this Agreement remain, as to the City, a wholly independent contractor and shall perform the services described in this Agreement as an independent contractor and further, hereby waives any claims for any compensation or benefits afforded to City employees and not to independent Item Number: 15.

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

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

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

Item Number: 15.

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

Section 13. CIVIL CODE SECTION 1542 WAIVER
Contractor expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE

CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO

EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE

AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY

AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

Item Number: 15.

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

Contractor further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
__________
Initials
Section 14. CONFLICTS OF INTEREST
a. Contractor (including principals, associates and professional employees) covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source or income, interest in real property or investment which would be affected in any manner or degree by the performance of Contractor’s services hereunder. Contractor further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
b. Contractor is not a designated employee within the meaning of the Political Reform Act because Contractor:
(1) Does not make or participate in:
(i) the making or any governmental decisions regarding
approval of a rate, rule, or regulation, the adoption or enforcement of laws;
(ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certificates, approvals, orders, or similar authorization or entitlement;
(iii) authorizing the City to enter into, modify, or renew a contract;
(iv) granting the City approval to a contract that requires City approval and to which the City is a party, or to the
specifications for such a contract;
(v) granting the City approval to a plan, design, report, study, or similar item; or
Item Number: 15.

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

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

LICENSES
a. Contractor warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services.
b. By executing this Agreement, Contractor warrants that:
(1) it has thoroughly investigated and considered the work to be performed;
(2) it has investigated the issues, regarding the scope of services to be provided;
(3) it has carefully considered how the work should be performed; and (4) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. c. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the City, it shall immediately inform the City of such fact and shall not proceed except at Contractor’s risk until written instructions are received from the City Manager or appropriate City representative.
d. Contractor represents that it and all of its subcontractors, if any, have obtained and will maintain at all times during the term of this Agreement all professional Item Number: 15.

and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement, including a City business license.

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

Section 17. INDEMNIFICATION
a. Contractor shall defend, indemnify and hold harmless the City, its officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs, expenses and attorneys’ fees in connection therewith), arising out of the performance of this Agreement, except for any such claim arising out of the sole negligence, recklessness, or willful misconduct of the City, its officials, agents, employees or volunteers.
b. The City does not, and shall not, waive any rights that it may have against Contractor under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. c. Notwithstanding the provisions of subsections a. and b. of this section, Contractor shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Contractor’s work promptly, or by reason of delay or faulty performance by the City, construction contractors, or governmental agencies, or by reason of any other delays beyond Contractor’s control, or for which Contractor is without fault. d. In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Agreement is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.
e. If Contractor should subcontract all or any portion of the work to be performed under this Contract, Contractor shall require each subcontractor to indemnify, Item Number: 15.

hold harmless and defend City and each of its officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph. f. This Section shall survive termination or expiration of this Agreement.

Section 18. INSURANCE REQUIREMENTS
a. Policies. Contractor, at Contractor’s sole cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies:
(1) Automobile Liability Coverage. Contractor shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Contractor arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and two million dollars ($2,000,000) in the aggregate. As an alternative, Contractor shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Contractor were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof.
(2) Professional Liability Coverage. Contractor shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Contractor’s Services, whether such Services are performed by Contractor or by its employees, subcontractors, or sub-Contractors, to the extent such persons other than Contractor are permitted to perform any of the Services under this Agreement. The amount of this insurance shall not be less than one million dollars ($1,000,000) per claim, and two million dollars ($2,000,000) in the aggregate.
b. Endorsements. Unless otherwise specified hereunder, each insurance policy required herein shall be with insurers possessing an A.M. Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
(1) Except as otherwise provided by law, the City, its elected or appointed officers, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor, including materials, parts or equipment furnished in connection with such work or operations.
(2) This policy shall be considered primary insurance with respect to the City, its elected or appointed officers, officials, employees, agents and volunteers.

Item Number: 15.

Any insurance maintained by the City, including any self-insured retention the City may have shall be considered excess insurance only and shall not contribute with it. (3) This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
(4) The insurer waives all rights of subrogation against the City, its elected or appointed officials, officers, employees or agents. (5) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.
(6) The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
c. Deductibles and Self-Insured Retentions. Contractor shall disclose to and obtain the approval of City for any self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. During the period covered by this Agreement, only upon the prior express written authorization of the City Manager, Contractor may either reduce or eliminate such deductibles or selfinsured retentions with respect to City, its officers, employees, agents, and volunteers.

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

Item Number: 15.

f. Maintain Coverages. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement has been eliminated. g. Failure to Obtain Coverages. Contractor agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by it or any subcontractors or others involved in any way with the performance of Services, to the extent such is permissible under this Agreement, Contractor shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City or its officers, employees, servants, volunteers, agents and independent contractors. h. Notice of Cancellation or Reduction in Coverage. In the event that any coverage required in this Agreement is canceled, reduced, limited, or materially affected in any other manner, Contractor shall provide written notice to the City either by facsimile and/or via certified mail, at Contractor’s earliest possible opportunity and in no case later than fifteen (15) calendar days after Contractor is notified of the change in coverage.

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

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

To Contractor: Rayce Jonsrud
65910 14th Street
Desert Hot Springs, CA 92240
Telephone: (760) 217-5428
Email: [email protected]
Item Number: 15.

b. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 20. DEFAULT
a. Failure or delay by any party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within fifteen (15) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder.
b. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein. c. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
d. In the event that a default of any party to this Agreement may remain uncured for more than fifteen (15) calendar days following written notice, as provided above, a "material breach" shall be deemed to have occurred. In the event of a material breach, the injured party shall be entitled to seek any appropriate remedy or damages as otherwise set forth herein and by initiating legal proceedings.

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

Section 22. ENTIRE AGREEMENT
Item Number: 15.

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

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

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

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

Item Number: 15.

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

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

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

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

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

For breach or violation of this warranty, the City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of the City, during the term of his or her service with the City, shall have any Item Number: 15.

direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

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

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

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

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

Item Number: 15.

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

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

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

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

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

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

Section 41. OTHER GOVERNMENTAL REGULATIONS
To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Contractor and any subcontractors shall comply with all Item Number: 15.

applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

Section 42. REPRESENTATIONS OF PARTIES AND PERSONS

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

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

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

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

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

Item Number: 15.

CITY OF DESERT HOT SPRINGS
_____________________________
Doria Wilms, City Manager
ATTEST:
_____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
_____________________________

RAYCE JONSRUD
_____________________________
Rayce Jonsrud
Item Number: 15.

EXHIBIT “A”

SCOPE OF SERVICES
Tourism and Business Development Consultant
City of Desert Hot Springs
Project Overview
The City of Desert Hot Springs seeks the continued services of a Tourism and Business Development Consultant to maintain and expand the momentum of the City's tourism and economic initiatives. Building upon the foundational work already completed to promote the City's renowned hot mineral waters and Spa Zone, the Consultant will provide ongoing strategic support to sustain existing tourism initiatives, cultivate new investment opportunities, strengthen relationships with existing hospitality partners, and broaden engagement with the City's overall business community. The Consultant will also assist the City in promoting Desert Hot Springs as a destination for tourism, wellness, business investment, and economic growth through strategic outreach, conference participation, stakeholder engagement, and business retention and expansion efforts.

Scope of Services
• Tourism Promotion and Spa Zone Development
• Continue implementation and refinement of the City's strategic marketing efforts promoting Desert Hot Springs as a premier wellness tourism destination.
• Maintain and strengthen relationships with existing hot mineral water hotel and spa operators, encouraging collaboration and coordinated marketing efforts.
• Identify and cultivate relationships with prospective investors, developers, hospitality operators, and tourism-related businesses interested in opportunities within the Spa Zone and throughout the City. • Assist City staff with maintaining and expanding tourism partnerships, including industry associations and regional tourism organizations. • Continue supporting initiatives that showcase the City's unique hot mineral water resources and wellness-focused identity.
• Business Retention, Expansion and Community Engagement in collaboration with city staff.
• Assist the Economic Development Manager as needed with the local business community to foster ongoing communication and collaboration. • Assist the Economic Development Manager as needed to engage with existing businesses throughout the community to identify opportunities, challenges, and potential City assistance.
• Assist with initiatives that promote collaboration among local businesses, business organizations, and community stakeholders.

Item Number: 15.

• Coordinate and execute the City's participation in selected tourism, hospitality, and economic development conferences and industry events as determined by the city.
• Develop promotional materials in collaboration with City Management. • Schedule meetings with targeted developers, investors, hospitality operators, tourism professionals, and other strategic partners.
• Conduct timely follow-up with conference contacts and prospective investors. • Coordinate site visits and tours showcasing development opportunities, the Spa Zone, existing hospitality assets, and other strategic investment areas. • Assist in maintaining and advancing previously established tourism initiatives, partnerships, promotional campaigns, and stakeholder relationships. • Monitor industry trends and recommend new strategies to enhance Desert Hot Springs' competitiveness as a tourism and investment destination.

The Consultant to provide:
• Ongoing implementation and maintenance of tourism promotion initiatives previously developed.
• Regular engagement with existing hospitality operators, local businesses, investors, and strategic partners.
• Conference participation plans, promotional materials, meeting schedules, and post-conference follow-up activities.
• Ongoing Progress Updates summarizing:
o Tourism promotion activities;
o Business outreach and stakeholder engagement;
o Conference participation and outcomes;
o Strategic recommendations; and
o Progress toward the City's tourism and economic development objectives. • Additional reports, presentations, or recommendations as requested by City Management.

Timeline & Reporting
The Consultant shall perform these services throughout the term of the agreement and shall provide regular communication with City Management regarding ongoing activities, emerging opportunities, and recommendations.

This Scope of Services is intended to support the City's long-term tourism, business development, and economic development objectives by sustaining successful initiatives already established, strengthening relationships with existing businesses and hospitality partners, attracting new investment, and promoting continued economic vitality throughout Desert Hot Springs.

Item Number: 15.

SR-26-164
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 7, 2026
Department: Public Works
Prepared by: Judith Duenas, Administrative Assistant II Subject: Resolution Authorizing Participation in the FY 2025, FY2 026, FY 2027 Emergency Management Performance Grant (EMPG)
RECOMMENDATION:

Adopt a Resolution of the City Council authorizing participation in the FY2025, FY2026, FY 2027 Emergency Management Performance Grant (EMPG); authorizing the City’s applications, acceptance of funds, execution of all related documents, and commitment or required match (if any).

BACKGROUND:

The Riverside County Emergency Management Department (EMD) has requested a governing-body resolution that (1) identifies the grant program and grant year(s) and (2) designates City officials authorized to sign grant applications and related documents. County EMD has indicated the State Supplement allows multi-year resolutions (up to three years) to streamline subrecipient administration. The City has prepared the attached resolution to satisfy these requirements and to provide staff with the authority needed to complete routine grant administration tasks (application submittal, reimbursement requests, vendor agreements, and reporting) while reserving Council approval for substantial scope or budget changes.

DISCUSSION:

The resolution authorizes the City to participate in the Emergency Management Performance Grant (EMPG) for fiscal years 2025-2027. The resolution designates authorized agents (City Manager; Deputy City Manager; Director of Administrative Services) to execute applications, agreements, reimbursement requests, and related documents, and authorizes routine project administration actions consistent with grant terms. The resolution is written to remain valid for up to three grant years in accordance with the State Supplement.

FISCAL IMPACT:

FY2025 is $3,314. FY2026 and FY 2027 will vary as grant funding becomes available.

STRATEGIC ALIGNMENT:

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

Item Number: 16.

SR-26-164
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) EMPG Authorization Resolution
2) Desert Hot Springs FY 2025 EMPG Award Letter
Item Number: 16.

Resolution No. 2026-______
Date Adopted: July 7, 2026

RESOLUTION NO. 2026-_______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

DESERT HOT SPRINGS, STATE OF CALIFORNIA,
AUTHORIZING PARTICIPATION IN THE FY2025, FY 2026 AND
FY2027 EMERGENCY MANAGEMENT PERFORMANCE GRANT
(EMPG); AUTHORIZING THE CITY’S APPLICATIONS,

ACCEPTANCE OF FUNDS, EXECUTION OF ALL RELATED

DOCUMENTS, AND COMMITMENT OF REQUIRED MATCH (IF
ANY)
WHEREAS, the California Governor’s Office of Emergency Services (Cal OES) administers federal preparedness grants including the Emergency Management Performance Grant (EMPG); and
WHEREAS, the City desires to apply for, receive, and expend EMPG funds for FY2025, FY2026, and FY 2027, either directly through Cal OES or as a subrecipient via the County of Riverside Emergency Management Department (Operational Area Administrator), and to execute all documents required by the County to implement the grants; and WHEREAS, the County of Riverside Emergency Management Department has requested a Governing Body Resolution that identifies the grant program and grant year(s) and designates authorized agents to execute applications and related grant documents on behalf of the City; and WHEREAS, the State Supplement allows governing body resolutions to remain valid for up to three grant years, reducing the need for repeated City Council approvals; and

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

Section 1. Application and Acceptance
The City Manager, or designee, is authorized to accept funds and execute all documents necessary to receive EMPG funding for FY2025, FY2026, and FY2027.

Section 2. Authorized Agents.

For all EMPG matters, the following positions are Authorized Agents (any one of whom is authorized to act on behalf of the City):
a. City Manager
b. Deputy City Manager
c. Director of Administrative Services
Item Number: 16.

Resolution No. 2026-______
Date Adopted: July 7, 2026

Section 3. Project Administration
The City Manager or designee, is authorized to: (a) approve project lists, budgets, and reallocations consistent with award terms; (b) submit reimbursement requests and performance/financial reports; (c) execute vendor agreements procured in accordance with law; and (d) make non-material changes necessary to implement the grants. Any substantial changes to project scope or budget shall be presented to the City Council for approval as required by law and City policy.

Section 4. Term
This Resolution covers the City’s EMPG participation for FY2025, FY2026, FY2027. If the Operational Are issues amendments or extensions within these fiscal years, the authorities granted herein remain in full force and effect unless otherwise modified by the City Council.

Section 5. Effective Date.

This resolution shall take effect immediately upon its adoption.

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

AYES:

NAYES:

ABSENT:

ATTEST: APPROVED:

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

Jennifer Mizrahi, City Attorney
Item Number: 16.

Resolution No. 2026-______
Date Adopted: July 7, 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 a 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 July 7, 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 11999 Palm Drive, Desert Hot Springs, California 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 a 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: July 7, 2026
City Clerk of the City of Desert Hot Springs
[SEAL]
Item Number: 16.

Dan Bates
Director
450 EAST ALESSANDRO
RIVERSIDE, CALIFORNIA 92508
T: 951.358.7100 ♦ TDD: 711
WWW.RIVCOEMD.ORG
June 24, 2026
City of Desert Hot Springs
Doria Wilms, City Manager
SUBJECT: FY 2025 Emergency Management Performance Grant (EMPG) Award Notice Period of Performance:

Personnel: 7/1/2025 – 1/31/2027
Other: 6/24/2026 – 1/31/2027
Grant #: 2025-5008 CFDA #: 97.042
This letter is being provided to notify you that your FY 2025 EMPG subaward has been approved in the amount of $3,314.

This subaward is subject to requirements in 2 CFR, Part 200, including the Notice of Funding Opportunity (NOFO), Preparedness Grants Manual, California Supplement to the NOFO, Riverside County Supplement to the NOFO, Grant Assurances, and all applicable federal, state, and local requirements. All activities funded with this subaward must be completed within the period of performance.

The Riverside County Operational Area (OA) may suspend or terminate grant funding, in whole or in part, or other measures may be imposed for any of the following reasons:
• Failure to submit required performance reports.
• Failure to expend a minimum of 90% of awarded funding. • Failure to expend funds in a timely manner consistent with the grant milestones, guidance, and assurances.
• Failure to comply with the requirements or statutory progress toward the goals or objectives of federal or state law.
• Failure to make satisfactory progress toward the goals or objectives set forth in the Subrecipient application.
• Failure to follow Grant Subaward requirements or special conditions. • Proposing or implementing substantial plan changes to the extent that, if originally submitted, the application would not have been selected for funding. • False certification in the application or document.
• Failure to adequately manage, monitor, or direct the grant funding activities of the organization.

Subrecipients must obtain additional written approval prior to incurring costs for activities such as aviation, watercraft, noncompetitive procurement, and projects requiring Environmental Planning and Historic Preservation (EHP) review. Any changes to the Financial Management Forms Workbook (FMFW) requires approval from the OA prior to conducting activities and incurring costs.

Item Number: 16.

Dan Bates
Director
450 EAST ALESSANDRO
RIVERSIDE, CALIFORNIA 92508
T: 951.358.7100 ♦ TDD: 711
WWW.RIVCOEMD.ORG
The following documents must be submitted with signatures to finalize the acceptance of this subaward. The documents should be submitted in a single PDF to [email protected] by August 24, 2026:
• Financial Management Forms Workbook
o Grant Subaward Face Sheet
o Authorized Agent and Contact Tab
o Project Ledger Tab
o Planning Tab
o Organization Tab
o Equipment Tab
o Training Tab
o Exercise Tab
o Consultant-Contractor Tab
o Personnel Tab
o Match Tab
o Authorized Agent Sheet
• Governing Body Resolution
• Standard Assurances
• EHP Screening Form
Reimbursement requests will not be processed without the acceptance documents on file.

This subaward is subject to all provisions of 2 CFR Part 200, Subpart F – Audit Requirements. Any funds received in excess of current needs, approved amounts, or those found owed as a result of a final review or audit, must be refunded to the OA within 30 days upon receipt of an invoice from the County of Riverside Emergency Management Department.

For further assistance, please contact [email protected]. We look forward to working with you and appreciate your cooperation and support.

Sincerely,
EMD OA Grants
Item Number: 16.

SR-26-161
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 7, 2026
Department: Public Works
Prepared by: Daniel Porras, Deputy City Manager
Subject: Cooperation Agreement for the Community Development Block Grant (CDBG), HOME Investment Partnerships Program, and Emergency Solutions Grant for Fiscal Years 2027-2029
RECOMMENDATION:
1) Adopt a Resolution of the City Council of the City of Desert Hot Springs authorizing the participation in the County of Riverside's Urban County Program for Fiscal Years 2027-2028, 2028- 2029, and 2029-2030; and
2) Authorize the City Manager to execute a Cooperation Agreement for the Community Development Block Grant (CDBG), HOME investment Partnerships Program, and Emergency Solutions Grant for fiscal years 2027-2029.

BACKGROUND:

Over the past five years, the City has been awarded approximately $250,000 annually in Community Development Block Grant (CDBG) grant funding, the detail funding per year shown below.

Fiscal Year 2021-22 = $291,000
Fiscal Year 2022-23 = $296,000
Fiscal Year 2023-24 = $227,000
Fiscal Year 2024-25 = $189,000
Fiscal Year 2025-26 = $247,000
These funds have been specifically used and/or allocated for Wardman Park Shade Structures, Reflection Park Phase I, Reflection Park Phase II, and the John H Furbee Aquatics Center Improvement.

DISCUSSION:

On April 2, 2024, the City Council approved Staff’s recommendation to request the advancement of five (5) years of CDBG funds from the Riverside County to undertake the rehabilitation of the John H.

Furbee Aquatics Center, due to the need for repairs and improvements. The advancement amount was estimated at $1,320,000 of future CDBG allocations.

In order for the City to be in compliance with the advancement request that was approved on April 2, 2024, the City must remain eligible to participate in the CDBG program, therefore the City must have Item Number: 17.

SR-26-161
an executed cooperation agreement in place. The current cooperation agreement is set to expire on June 30, 2026.

This new cooperative agreement is for the City to participate in the County of Riverside Community Development Block Grant (CDBG), HOME Investment Partnership Program, and Emergency Solution Grant for fiscal years 2027- 2029. Execution of the Cooperation Agreement and adoption of the resolution will allow the City to participate and be in compliance in the CDBG program through Riverside County Economic Development Agency.

FISCAL IMPACT:

Funding for the next 5 fiscal years of CDBG funds are currently being utilized for the John H Furbee Aquatic Center Improvement Project.

STRATEGIC ALIGNMENT:

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

Goal 7: Community Parks
Provide maintenance and strategic upgrades at existing parks while pursuing creative ways to expand park offerings via pocket parks and securing grant funding to plan for and build out parks in the Parks Master Plan.

ATTACHMENTS:
1) City of Desert Hot Springs Cooperation Letter
2) City of Desert Hot Springs Resolution 27-29 Cooperating City 3) City of Desert Hot Springs Cooperation Agreement
Item Number: 17.

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Item Number: 17.

Item Number: 17.

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RESOLUTION NO. 2026-127

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

DESERT HOT SPRINGS
AUTHORIZING PARTICIPATION IN THE COUNTY OF RIVERSIDE’S

URBAN COUNTY PROGRAM FOR FISCAL YEARS
2027-2028, 2028-2029, AND 2029-2030
WHEREAS, the City of Desert Hot Springs has elected to participate as unit of local government (Cooperating City) in the County of Riverside’s Urban County Program for Federal Fiscal Years 2027-28, 2028-29, and 2029-30; and WHEREAS, the Cooperation Agreement will allow the County and City to carryout activities which are funded by Community Development Block Grant (CDBG), Home Investment Partnerships Program (HOME) funds, and Emergency Solutions Grant (ESG); and WHEREAS, the Cooperation Agreement will allow the Cooperating City to participate in the Urban County Consolidated Planning Programs.

NOW, THEREFORE BE IT RESOLVED, FOUND AND DETERMINED, by the City Council of the City of Desert Hot Springs sitting in regular session on ________________, 2026, that:

1. The Cooperation Agreement between the County of Riverside and the City of Desert Hot Springs is hereby approved; and

2. The City Council hereby authorizes and directs the Mayor or City Manager to execute the Cooperation Agreement on behalf of the City of Desert Hot Springs.

Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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COOPERATION AGREEMENT

FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT,

HOME INVESTMENT PARTNERSHIPS PROGRAM, AND

EMERGENCY SOLUTIONS GRANT
FOR FISCAL YEARS 2027, 2028, 2029
This Cooperation Agreement for the Community Development Block Grant, HOME Investment Partnerships Program, and the Emergency Solutions Grant for Fiscal Years 2027, 2028, and 2029, hereinafter referred to as “Agreement” is made and entered into this ______ day of __________ 2026, by and between the COUNTY OF RIVERSIDE, a political subdivision of the State of California, hereinafter referred to as "COUNTY", and CITY OF DESERT HOT SPRINGS, an incorporated municipality within the geographical boundaries of the COUNTY, hereinafter referred to as "CITY.” City and County individually referred to herein as “Party” and collectively as the “Parties.”

RECITALS
WHEREAS, the Housing and Community Development Act of 1974, as amended (42 U.S.C.A. § 5301 et seq.) (Public Law 93-383), hereinafter called "ACT", provides that Community Development Block Grant funds hereinafter referred to as "CDBG", may be used for the support of activities that provide decent housing, suitable living environments, and expanded economic opportunities principally for persons of low and moderate-income; and WHEREAS, the HOME Investment Partnerships Act program, hereinafter referred to as “HOME,” was enacted as Title II of the National Affordable Housing Act of 1990, for the purposes of: expanding the supply of decent, affordable housing for low and very-low income families with emphasis on rental housing; building State and local capacity to carry out affordable housing programs; and providing for coordinated assistance to participants in the development of affordable low-income housing; and
WHEREAS, the Emergency Solutions Grant, hereinafter referred to as “ESG,” was authorized by the McKinney-Vento Homeless Assistance Act of 1987 and the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009. The objectives of the ESG program are to increase the number and quality of emergency shelters and transitional Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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housing facilities for homeless individuals and families, to operate these facilities and provide essential social services, and to help prevent homelessness; WHEREAS, CDBG regulations require counties to re-qualify as an Urban County under the CDBG program every three (3) years.

WHEREAS, the chief executive officer of the COUNTY is authorized to execute this Agreement pursuant to Riverside County Ordinance No. 442.

WHEREAS, the City Manager or Mayor of CITY is authorized to execute this Agreement on the CITY’s behalf.

WHEREAS, the COUNTY Board of Supervisors on July 14, 2026 via Minute Order 30623 authorized the COUNTY Director of Housing and Workforce Solutions to execute this agreement on behalf of the COUNTY.

NOW THEREFORE, in consideration of the mutual covenants herein set forth and the mutual benefits to be derived there from, the parties agree as follows:

1. GENERAL.
(a). This Agreement gives COUNTY authority to undertake, or assist in undertaking, activities for Fiscal Years 2027, 2028, and 2029, that will be funded from the CDBG, HOME, and ESG programs and from any program income generated from the expenditure of such funds. COUNTY and CITY agree to cooperate, to undertake, or to assist in undertaking, community renewal and lower-income housing assistance activities. COUNTY is qualified as an "Urban County" under the ACT. CITY, by executing this Agreement, hereby gives notice of its election to participate in an Urban County’s Community Development Block Grant (CDBG), Home Investment Partnerships Act (HOME), and Emergency Solutions Grant (ESG) programs, hereinafter referred to as "Urban County Programs".
(b). By executing this Agreement, CITY understands that it may not apply for grants from appropriations under the Small Cities or State CDBG Programs for fiscal years during the period in which it participates in the Urban County’s CDBG program, and that CITY may only participate in the HOME program through the COUNTY’S Urban County Programs, not a HOME Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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consortium. The CITY may also apply for HOME funds from the State of California, if permitted by the State.
(c). By executing this Agreement, CITY understands that it may only receive a formula allocation of ESG funds through the COUNTY’S Urban County Programs. The CITY may also apply for ESG funds from the State of California, if permitted by the State.

2. TERM.

The term of this Agreement shall be for three (3) years commencing on July 1, 2027, and expiring on June 30, 2029, unless an earlier date of termination is fixed by U.S.

Department of Housing and Urban Development, hereinafter called HUD, pursuant to ACT. This Agreement shall remain in effect until funds granted and program income received during the three-year program period are expended and the funded activities completed. Neither the COUNTY nor the CITY may terminate, withdraw, or be removed from the program during the three-year program period.

This Agreement will renew automatically for participation in one successive threeyear Urban County qualification period (Federal Fiscal Years 2027-29), unless the CITY or the COUNTY provides written notice to the other party that it elects not to participate in a new qualification period. The terminating party shall send a copy of the notice of termination to the HUD field office by the date specified on the HUD Exchange Urban Counties website. By executing this Agreement, the CITY acknowledges that it has been notified in writing of the CITY’s right to make this election. A copy of this Agreement will be sent to the HUD field office by the date specified on the HUD Exchange Urban Counties website.

The Parties agree to adopt amendment(s) to this Agreement as may be required by HUD to meet any new Urban County Qualification requirement(s), when applicable. Failure by either Party to adopt any such amendment, and to submit such amendment to HUD, will void the agreement for such qualification period.

3. PREPARATION OF FEDERALLY REQUIRED FUNDING APPLICATIONS.

The County of Riverside Housing and Workforce Solutions, subject to approval of COUNTY’s Board of Supervisors, shall be responsible for preparing and submitting to the U.S.

Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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Department of Housing and Urban Development (HUD), in a timely manner, all reports and statements required by the ACT and the Federal regulations promulgated by HUD to secure entitlement grant funding under the CDBG, HOME, and ESG programs. This duty shall include the preparation and processing of COUNTY Housing, Community, and Economic Development Needs Identification Report, Citizen Participation Plan, the County Five-Year Consolidated Plan, One-Year Action Plan, Consolidated Annual Performance and Evaluation Report (CAPER), and other related programs which satisfy the application requirements of ACT and its regulations.

4. COMPLIANCE WITH FEDERAL STATUTES, REGULATIONS AND
OTHER APPLICABLE STATUTES, REGULATIONS AND ORDINANCES.
(a) COUNTY and CITY will comply with the applicable provisions of the ACT and those Federal regulations promulgated by HUD pursuant thereto, as the same currently exists or may hereafter be amended.
(b) The COUNTY and CITY are hereby obligated to take all actions necessary to assure compliance with COUNTY’s certification regarding affirmatively furthering fair housing pursuant to Section 104 (b) of Title I of ACT, as amended. (c) COUNTY and CITY will comply with the applicable provisions of the following: National Environmental Policy Act of 1969; Title VI of the Civil Rights Act of 1964 and the implementing regulations at 24 CFR Part 1; The Fair Housing Act, Title VIII of the Civil Rights Act of 1968, the implementing regulations at 24 CFR Part 100, and the duty to affirmatively further fair housing (AFFH); Title 24 Code of Federal Regulations part 570; Cranston-Gonzales National Affordable housing Act (Public Law 101-625); Executive Order 11063, as amended by Executive Order 12259; Executive Order 11988; the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C.§4630, et. seq.); Section 109 of Title I of the ACT and implementing regulations at 24 CFR part 6, including Section 504 of the Rehabilitation Act of 1973 and the implementing regulations at 24 CFR Part 8, Title II of the Americans with Disabilities Act and the implementing regulations at 28 CFR part 35, the Age Discrimination Act of 1975 and the implementing regulations at 24 CFR part 146, Section 3 of the Civil Rights Act of 1963, as amended, Section 3 of the Housing and Urban Development Act of 1968, the Uniform Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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Relocation Assistance and Real Property Acquisition Policies Act of 1970 and the implementing regulations at 49 CFR Part 24, and Section 104(d) of the Act and implementing regulations at 24 CFR Part 42; and other Federal or state statute or regulation applicable to the use of CDBG, HOME Investment Partnerships Act (enacted as Title II of the National Affordable Housing Act of 1990), and Emergency Solutions Grant funds.
(d) CITY agrees that the Urban County Program funding for activities in, or in support of, the CITY are prohibited if CITY does not affirmatively further fair housing within CITY’S jurisdiction or impedes COUNTY actions to comply with its fair housing certification. (e) CITY and COUNTY shall meet the citizen participation requirements of 24 CFR 570.301 and provide Urban County Program citizens with all of the following:
i. The estimate of the amount of CDBG funds proposed to be used for activities that will benefit persons of low and moderate-income; ii. A plan for minimizing displacement of persons as a result of activities assisted with CDBG funds and to assist persons actually displaced as a result of such activities;
iii. A plan that provides for and encourages citizen participation, with particular emphasis on participation by persons of low and moderate-incomes, residents of slum and blighted areas, and of areas in which funds are proposed to be used, and provides for participation of residents in low and moderate-income neighborhoods; iv. Reasonable and timely access to local meetings, information, and records relating to the grantee’s proposed use of funds, as required by the regulations of the Secretary, and relating to the actual use of funds under the ACT; v. Provide for public meetings to obtain citizen views and to respond to proposals and questions at all stages of the community development program, including at least the development of needs, the review of proposed activities and review of program performance.

Meeting shall be held after adequate notice, at times and locations convenient to potential or actual beneficiaries, and with accommodation for the disabled.

Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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(f). CITY shall develop a community development plan, for the period of this Agreement, which identifies community development and housing needs and specifies both short and long-term community development objectives.
(g). CITY certifies, to the best of its knowledge and belief, that:
i. No Federal appropriated funds have been paid or will be paid, by or on behalf of the CITY, to any person influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan or cooperative agreement.
ii. If any funds other than Federally-appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions.
iii. The CITY shall require that the language provided in Sections 4(c) of this Agreement be included in the award documents for all sub-awards at all tiers (including subcontracts, sub- grants and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into.
(iv). In accordance with Section 519 of Public Law 101-144, (the 1990 HUD Appropriations Act), the CITY certifies that it has adopted and is enforcing a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations, and that it has adopted and is enforcing applicable State and local laws against physically barring entrance to, or exit from, a Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction.

5. COMPLIANCE WITH POLICY AND PROGRAM OBJECTIVES.

The COUNTY’s Board of Supervisors have adopted policies and procedures to ensure efficient and effective administration of the CDBG, HOME and ESG programs. COUNTY will provide these policies and procedures to CITY within a reasonable time after this Agreement’s commencement date. COUNTY and City agree to comply with these said policies and program objectives and to take no actions to obstruct implementation of the approved 2024-2029 Five Year Consolidated Plan and the subsequent Five-Year Consolidated Plan.

6. OTHER AGREEMENTS
Pursuant to Federal regulations at 24 CFR 570.501(b), CITY is subject to the same requirements applicable to sub-recipients, including the requirement of a written agreement set forth in Federal regulations at 24 CFR 570.503. For each fiscal year during the term of this Agreement, COUNTY and CITY shall enter into an additional agreement, commonly known as a Supplemental Agreement, that will have a term coinciding with a CDBG Program Year and enumerate the project(s) CITY will implement with its entitlement funds. Said Supplemental Agreement will set forth the time schedule for completion of said project(s) and any funding sources, in addition to entitlement funds, that will be used in completing the project(s). If substantial compliance with the completion schedule, due to unforeseen or uncontrollable circumstances, cannot be met by CITY, the schedule for the project(s) may be extended by COUNTY. If COUNY determines that substantial progress toward drawdown of funds is not made during the term of the Supplemental Agreement, the entitlement funds associated with the project(s) may be reprogrammed by COUNTY, to other activities as determined by COUNTY, after COUNTY provides appropriate written notice to CITY. COUNTY's decision not to extend the completion schedule associated with the project(s), or to reprogram the entitlement funds associated with the project(s), will not excuse CITY from complying with terms of this Agreement.

7. DETERMINATION OF PROJECTS TO BE FUNDED AND
DISTRIBUTION OF ENTITLEMENT FUNDS.

Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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CITY agrees to submit to COUNTY in writing, no later than the date specified by COUNTY prior to each program year, the activities that the CITY desires to implement with its entitlement funds, said designation to comply with statutory and regulatory provisions governing citizen's participation. Said designation is to be reviewed by the COUNTY's Housing and Workforce Solutions to determine that the projects are eligible under Federal regulations for funding and inclusion in the One Year Action Plan of the County’s Five-Year Consolidated Plan and consistent with both Federal and COUNTY policy governing use of Community Development Block Grant (CDBG) funds.

In the event that CITY fails to submit to COUNTY the identified activities that the CITY desires to implement with its entitlement funds by the date specified prior to each program year, the COUNTY may determine the activities to be funded, without consent of the CITY, consistent with both Federal and COUNTY policy governing use of Community Development Block Grant (CDBG) funds.

Consistent with Sections 3, 4, 5, 6, and 7 of this Agreement, COUNTY's Board of Supervisors will make the final determination of the distribution and disposition of all CDBG funds received by COUNTY pursuant to the Act.

8. COMMUNITY DEVELOPMENT BLOCK GRANT MANUAL.

CITY warrants that those officers, employees, and agents, retained by it and responsible for implementing projects funded with CDBG have received, reviewed, and will follow the Community Development Block Grant Manual that has been prepared and amended by COUNTY, which Manual is incorporated herein and made a part hereof by this reference.

9. REAL PROPERTY ACQUIRED OR PUBLIC FACILITY
CONSTRUCTED WITH CDBG FUNDS.

When CDBG funds are used, in whole or in part, by CITY to acquire real property or to construct a public facility, CITY shall comply with the National Environmental Policy Act of 1969 (42 U.S.C. § 4321, et seq.), the California Environmental Quality Act (Cal. Pub. Resources Code § 21000, et seq.), the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. § 4630, et seq.), and California Government Code Sections 7260 et seq., Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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as those laws may be amended from time-to-time and any Federal or state regulations issued to implement the aforementioned laws.

In addition, the following is to occur:
(a) Title to the real property shall vest in CITY;
(b) The real property title will be held by or the constructed facility will be maintained by the CITY for the approved use until five years after the date that the project is reported as “Completed” within the annual Consolidated Annual Performance and Evaluation Report
(c) While held by CITY, the real property or the constructed facility is to be used exclusively for the purpose for which acquisition or construction was originally approved by COUNTY;
(d) CITY shall provide timely written notice to COUNTY of any action which would result in a modification or change in the use of the real property purchased or improved, in whole or in part, with CDBG or HOME funds from that planned at the time of acquisition or improvement, including disposition.
(e) CITY shall provide timely written notice to citizens and opportunity to comment on any proposed modification or change;
(f) Written approval from COUNTY must be secured if the property or the facility is to be put to an alternate use that is or is not consistent with Federal regulations governing CDBG funds;
(g) Should CITY desire during the five (5) year period to use the real property or the constructed facility for a purpose not consistent with applicable Federal regulations governing CDBG funds or to sell the real property or facility, then:
(i) If CITY desires to retain title, it will have to reimburse either COUNTY or the Federal government an amount that represents the percentage of current fair market value that is identical to the percentage that CDBG funds initially comprised when the property was acquired or the facility was constructed;
(ii) If CITY sells the property or facility, or is required to sell the property Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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or facility, CITY is to reimburse the COUNTY an amount that represents the percentage of proceeds realized by the sale that is identical to the percentage that CDBG funds comprised of the monies paid to initially acquire the property or construct the facility. This percentage amount will be calculated after deducting all actual and reasonable cost of sale from the sale proceeds.

10. DISPOSITION OF INCOME GENERATED BY THE EXPENDITURE
OF CDBG FUNDS.

CITY shall inform COUNTY in writing of any income generated by the expenditure of CDBG funds received by CITY from COUNTY. CITY may not retain program income so generated. Any and all program income shall be returned to the County and may only be used for eligible activities in accordance with all CDBG requirements, including all requirements for citizen participation.

The COUNTY is required by HUD to monitor and report the receipt and use of all program income. CITY is required to track, monitor, and report any and all program income as requested by COUNTY.

11. TERMINATION.

Except as provided for in Section 2, CITY and COUNTY cannot terminate or withdraw from this Agreement while it remains in effect.

12. NOTICES.

All correspondence and notices required or contemplated by this Agreement shall be delivered to the respective parties at the addresses set forth below and are deemed submitted two days after their deposit in the United States mail, postage prepaid:

COUNTY OF RIVERSIDE CITY OF DESERT HOT SPRINGS
Heidi Marshall, Director Doria Wilms, City Manager
County of Riverside HWS City of Desert Hot Springs
3403 Tenth Street, Suite 300 11999 Palm Drive
Riverside, CA 92501 Desert Hot Springs, CA 92240
Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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13. AGREEMENT ADMINISTRATION.

The City Manager of the CITY, and the Director of Housing and Workforce Solutions of County of Riverside, or their designee, shall administer the terms and conditions of this Agreement for their respective city or county.

14. COOPERATION; FURTHER ACT.

The PARTIES shall cooperate fully with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purpose of the Agreement.

15. NO THIRD-PARTY BENEFICIARIES.

This Agreement is made and entered into for the sole protection and benefit of the PARTIES hereto and shall not create any rights in any third parties. No other person or entity shall have any right or action based upon the provisions of the Agreement.

16. SECTION HEADINGS.

The Section headings herein are for the convenience of the PARTIES only and shall not be deemed to govern, limit, modify or in any manner affect the scope, meaning or intent of the provisions or language of this Agreement.

17. FORMER AGREEMENTS UTILIZING COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS BETWEEN COUNTY AND CITY.

All agreements between CITY and COUNTY regarding the use of CDBG funds for fiscal years 1975-76 through fiscal years 2026-27 and any Supplemental Agreements there under, shall remain in full force and effect. If the language of this Agreement is in conflict or inconsistent with the terms of any prior said agreements between CITY and COUNTY, the language of this Agreement will be controlling.

18. INDEMNIFICATION
CITY agrees to indemnify, defend, and hold harmless COUNTY and its authorized officers, employees, agents, and volunteers from any and all claims, actions, losses, damages, and/or liability arising from CITY acts, errors or omissions and for any costs or expenses incurred by COUNTY on account of any claim therefore, except where such indemnifications is prohibited Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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by law. CITY shall promptly notify COUNTY in writing of the occurrence of any such claims, actions, losses, damages, and/or liability.

CITY shall indemnify and hold harmless COUNTY against any liability, claims, losses, demands, and actions incurred by COUNTY as a result of the determination by HUD or its successor that activities undertaken by CITY under the program(s) fail to comply with any laws, regulations, or policies applicable thereto or that any funds billed by and disbursed to CITY under this Agreement were improperly expended.

19. COMPLIANCE WITH LAWS AND REGULATIONS.

By executing this Agreement, the Parties hereby certify that they will adhere to and comply with all Federal, state and local laws, regulations and ordinances.

20. ENTIRE AGREEMENT.

It is expressly agreed that this Agreement embodies the entire agreement of the Parties in relation to the subject matter hereof, and that no other agreement or understanding, verbal or otherwise, relative to this subject matter, exists between the Parties at the time of execution.

21. SEVERABILITY.

Each paragraph and provision of this Agreement is severable from each other provision and in the event any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provision will never the less continue in full force without being impaired or invalidated in any way.

22. ASSIGNMENT.

CITY shall not make any sale, assignment, conveyance or lease of any trust or power, or transfer in any other form with respect to this Agreement, or delegate or assign any interest in this Agreement without prior written approval of the County.

23. INTERPRETATION AND GOVERNING LAW.

This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof.

24. WAIVER.

Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter.

25. JURISDICTION AND VENUE.

Any action at law or in equity arising under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed in the Superior Court of California, County of Riverside, State of California, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court or jurisdiction.

26. AMENDMENTS
No change, amendment, or modification to the Agreement shall be valid or binding upon CITY or COUNTY unless such change, amendment, or modification is in writing and duly executed. CITY and COUNTY agree to adopt any necessary amendments to this Agreement to incorporate changes required by HUD as set forth in the Urban County Qualification Notice.

Amendments must be submitted to HUD as provided in the Urban County Qualification Notice and failure to do so will void the automatic renewal for such qualification period.

27. PROHIBITION OF CDBG FUND TRANSFER
Parties to this Agreement understand and agree that they may not sell, trade, or otherwise transfer all or any portion of CDBG Part 52 funds to a Metropolitan City, Urban County, unit of general local government, or insular area that directly or indirectly receives CDBG funds in exchange for any funds, credits, or non-Federal considerations, but must use such funds for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended
Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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28. EMERGENCY SOLUTIONS GRANT FORMULA ALLOCATION
CITY acknowledges that while participating in the COUNTY’s Urban County program, CITY can only receive a formula Emergency Solutions Grant (ESG) allocation from the Urban County program and only at such times as authorized by the Board of Supervisors. The CITY and COUNTY may also apply for ESG funds from the State of California, if permitted by the State.

29. HOME INVESTMENT PARTNERSHIP ACT FORMULA

ALLOCATION
CITY acknowledges that while participating in the COUNTY’s Urban County program, CITY can only receive a formula HOME allocation from the Urban County program and only at such times as authorized by the Board of Supervisors. The CITY and COUNTY may also apply for HOME funds from the State of California, if permitted by the State.

30. AUTHORITY TO EXECUTE.

The persons executing this Agreement or exhibits attached hereto on behalf of the Parties to this Agreement hereby warrant and represent that they have the authority to execute this Agreement and warrant and represent that they have the authority to bind the respective Parties to this Agreement to the performance of its obligations hereunder.

31. INCORPORATION OF RECITALS
The Parties hereby affirm the facts set forth in the recitals above. Said recitals are incorporated herein and made an operative part of this Agreement.

32. COUNTERPARTS
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. [SIGNATURES ON FOLLOWING PAGE]
Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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IN WITNESS WHEREOF, the COUNTY and CITY have executed this Agreement on the date shown below.

Date: _______________________

COUNTY OF RIVERSIDE, CITY OF DESERT HOT SPRINGS,
a political subdivision of the a general law city
State of California
BY: ____________________________ BY: _________________________ Heidi Marshall, Director Mayor or City Manager
Housing and Workforce Solutions
APPROVED AS TO FORM: ATTEST:

Minh C. Tran,
County Counsel
BY: ________________________
By: __________________________________ City Clerk
Braden Holly
Deputy County Counsel

APPROVED AS TO FORM:

BY: __________________________
City Attorney
Item Number: 17.

Cooperation Agreement For CDBG, HOME And ESG Funds 2027-2029

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COUNTY COUNSEL CERTIFICATION
The Office of County Counsel of the County of Riverside hereby certifies that the terms and provisions of this Agreement are fully authorized under state and local law and that the Agreement provides full legal authority for the COUNTY to undertake, or assist in undertaking, essential community development and housing assistance activities specifically urban renewal and publicly assisted housing.

County Counsel
By: ____
Deputy County Counsel, Braden Holly
Item Number: 17.

SR-26-158
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 7, 2026
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Resolution Authorizing Investment of Monies in the Local Agency Investment Fund (LAIF)
RECOMMENDATION:

Adopt a Resolution of the City Council of the City of Desert Hot Springs Authorizing Investment of Monies in the Local Agency Investment Fund.

DISCUSSION:

The California State Treasurer’s office created the Local Agency Investment Fund (LAIF) to provide cities and special districts with an investment option to hold excess funds. LAIF is like a money market fund in that it provides highly liquid investments at minimal risk with a competitive yield. The City used LAIF to invest any excess funds that are not needed right away but in the short-term (within one year).

LAIF requires a resolution of the City Council designating city officers that are authorized to make deposits, withdrawals, and administrative changes to the City’s LAIF account. The last time the City designated officers was in 2009 with Resolution 2009-052. Since then some city officer positions have changed. This resolution is to update the authorized officers with the City’s current positions.

This resolution authorizes the City Manager, Administrative Services Director, and the Finance Manager or their successors in office to make administrative changes to the City’s LAIF account.

Once the resolution is approved by LAIF, any changes to the City’s account will require signatures from 2 of the above-mentioned officers.

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 Item Number: 18.

SR-26-158
professionalism in all interactions with residents and the public.

ATTACHMENTS:
1) LAIF 2026 Resolution
Item Number: 18.

RESOLUTION NO. 2026 - _ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS AUTHORIZING INVESTMENT OF MONIES IN THE

LOCAL AGENCY INVESTMENTFUND
WHEREAS, The Local Agency Investment Fund is established in the State Treasury under Government Code section 16429.1 et. Seq. for the deposit of money of a local agency for purposed of investment by the State Treasurer; and WHEREAS, the City Council hereby ?nds that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with Government Code section 16429.1 et. Seq. for the purpose of investment as provided therein is in the best interests of the City of Desert Hot Springs;
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby authorizes the deposit and withdrawal of City of Desert Hot Springs monies in the Local Agency Investment Fund in the State Treasury in accordance with Government Code section 16429.1 et. Seq. for the purpose of investment as provided therein.

BE IT FURTHER RESOLVED, as follows
Section 1.

The following City of Desert Hot Springs of?cers holding the title(s) speci?ed hereinbelow or their successors in of?ce are each hereby authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transactions contemplated hereby:

Doria VI?lms Geoffrey Buchheim Tiffany Verduzco
(NAME) (NAME) (NAME)
cry Manager Administrative Services Director Finance Manager (TITLE) (TITLE ” -ITLE)
M M? 702. ., .
(SIGNATURE) (SIGN E) ( GNATURE)
Section 2.

This resolution shall remain in fullforce and effect until rescinded by the City Council by resolution and a copy of the resolution rescinding this resolution is ?led with the State Treasurer’s Of?ce.

Item Number: 18.

Section 3. EFFECTIVE DATE
That this Resolution shall take effect upon its adoption.

PASSED ANDADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting of the City Council duly held on the 7thday ofJuly 2026, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

ATTEST: - APPROVED:

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

Tuan-Ahn Vu, City Attorney
Item Number: 18.

SR-26-170
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 7, 2026
Department: Public Works
Prepared by: Tim Jonasson, Consultant City Engineer
Subject: John H. Furbee Aquatic Center Improvements, City Project No. 2023, Notice of Completion
RECOMMENDATION:

Approve the work, accept the project as complete, authorize final payment to California Water Development, Inc. and direct the City Manager to file the Notice of Completion for the John H. Furbee Aquatic Center Improvements Project, City Project No. 4013.

BACKGROUND:

On September 2, 2025, the City Council awarded the John H. Furbee Aquatic Center Improvements to California Water Development, Inc. (California Waters) in the amount of $1,723,100.00 plus a 10% contingency and authorized the City Manager to draft and execute a construction agreement with California Water Development, Inc.

On December 9, 2025, the City Council approved a contract change order with California Waters in the amount not to exceed $195,000 for additional work removing and replacing the pool floor and appropriated $195,000.00 from DIF Aquatic Center funds to cover the cost of this contract change order increasing the total construction budget to $2,115,410.00.

DISCUSSION:

California Waters commenced construction on October 6, 2025, with an estimated completion date of January 6, 2026. Additional work and material procurement extended the contract time to mid-May.

The contractor completed the pool improvements in mid-May allowing the pool to open to the public on May 23, 2026; therefore, staff does not recommend liquidated damages be assessed.

The spray ground (i.e., splash pad) is currently being tested prior to opening it to the public. As the contractor has substantially completed all items of work in accordance with the approved plans, specifications, and contract documents, staff recommends acceptance of the project subject once all testing and operations turn over has been completed.

FISCAL IMPACT:

The original construction contract was awarded in the amount of $1,723,100.00, with a 10% contingency. Contract change orders increased the construction budget to $2,115,410.00.

Item Number: 19.

SR-26-170
During construction, ten (10) change orders totaling $312,340.00 were approved to address unforeseen conditions and additional work necessary to complete the project. The final construction contract amount, including all approved change orders, was $2,035,440.00.

The additional project costs were funded through the DIF Aquatic Center Funds (107-5020-50-73- 2013) which was sufficient to complete the project.

ENVIRONMENTAL ANALYSIS:

N/A
STRATEGIC ALIGNMENT:

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

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 Desert Hot Springs.

ATTACHMENTS:
1) Notice of Completion - John H. Furbee Aquatic Center Improvements 2) Furbee Aquatic Center Improements - Change Order Log Item Number: 19.

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City Clerk
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
Notice is hereby given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is The City of Desert Hot Springs.

3. The full address of the owner is 11999 Palm Drive Desert Hot Springs, CA, 92240.

4. The nature of the interest or estate of the owner is in fee and easements.

5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common, are: None.

6. A work of improvement on the property hereinafter described was completed on July 7, 2026. The work done was: John H. Furbee Aquatic Center Improvements, City Project Number 2013

7. The name of the contractor, for such work of improvement was California Waters Development, Inc.

Date of Contract: September 2, 2025.

8. The property on which said work of improvements were completed is in the City of Desert Hot Springs, County of Riverside, State of California, and is described as follows: 11750 Cholla Drive, Desert Hot Springs CA 92240.
______________________________________________ Dated:_____________________ Jerryl Soriano CMC, City Clerk, City of Desert Hot Springs I, the undersigned, am the City Manager of City of Desert Hot Springs, hereby certify that of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof; the same is true to the best of my knowledge. I declare under penalty of perjury that the foregoing is true and correct. ________________________________________________ Dated: ____________________ Doria Wilms, City Manager
Item Number: 19.

Project JOHN H. FURBEE AQUATICS CENTER IMPROVEMENTS Project No. 2013 Contractor CALIFORNIA WATERS DEVELOPMENT Contract No. PW26-032 CPM TIM JONASSON, CONSUTANT CITY ENGINEER Base Bid Amount 1,723,100.00 DHS CO # DESCRIPTION
DATE

APPROVED AMT
DHS CO 01 REMOVE ADDITIONAL 1,320 CF OF CONCRETE FROM BACK OF POOL & 198 CF OF CONCRETE DECK 10/30/25 $40,668.00DHS CO 02 REMOVE & REPLACE POOL FLOOR 12/4/25 $195,004.00DHS CO 03 SURGE TANK WATERPROOFING 1/5/26 $12,965.00DHS CO 04 REPLACE BORKEN CONDUIT AND WIRING 1/5/26 $4,146.00DHS CO 05 REPAIR SPRAY GROUND LEAKS 5/14/26 $2,767.00DHS CO 06 INSTALL ADDITIONAL 282 LF OF DECK SEAL FOR EXPANSION JOINT 5/14/26 $23,395.00DHS CO 07 REPLACE SPRAY GROUND CONTROL VALVES 5/14/26 $4,030.00DHS CO 08 INSTALL SPRAY GROUND CHEMICAL AUTOMATION SYSTEM INTERLOCK 6/10/26 $4,006.00 DHS CO 09 REPLACE LEAKING CIRCULATION PLUMBING 5/15/26 $4,047.00 DHS CO 10 REMOVE AND REPLACE CIRCULATION PUMP AND RELATED PLUMBING FIXTURES 5/21/26 $21,312.00 CHANGE ORDERS TOTAL 312,340.00
Approved Total 312,340.00

CITY OF DESERT HOT SPRINGS

CHANGE ORDER LOG
Item Number: 19.

SR-26-166
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: July 7, 2026
Department: Public Works
Prepared by: Raul Arauz, Associate Engineer
Subject: Reflection Park Phase II Project, City Project No. 4002 Notice of Completion RECOMMENDATION:

Approve the work, accept the project as complete, authorize final payment to Landmark Associated Builders, Inc., and direct the City Manager to file the Notice of Completion for the Reflection Park Phase II Project, City Project No. 4002.

BACKGROUND:

On December 3, 2019, the City Council approved the rehabilitation of Hot Springs Park into Reflection Park and authorized City staff to submit an application for Community Development Block Grant (CDBG) funding to construct Phase II of the project. On October 20, 2020, the City was awarded $291,000 in CDBG Fiscal Year 2020-2021 funding for construction, and all required agreements between the City and the County of Riverside were subsequently executed.

Reflection Park, formerly known as Hot Springs Park, is located at the northwest corner of Palm Drive and 8th Street. The Phase II improvements included site grading, pedestrian pathways, decomposed granite walking areas, new landscaping and irrigation, decorative natural rock ground cover, a monument sign, and fourteen (14) palm trees illuminated with solar-powered lighting. These improvements transformed a highly visible gateway location into an enhanced passive recreational space that improves the City's aesthetics while providing an attractive community gathering area.

DISCUSSION:

On July 1, 2025, the City Council awarded the construction contract for the Reflection Park Phase II Project, City Project No. 4002, to the lowest responsive and responsible bidder, Landmark Associated Builders, Inc., in the amount of $469,500.00, with a 10% construction contingency of $46,950.00, for a total authorized construction budget of $516,450.00.

Construction commenced on August 28, 2025. Landmark Associated Builders, Inc. diligently performed the work and achieved substantial completion on May 18, 2026, in accordance with the approved plans, specifications, and contract documents. Although procurement of the specialized solar-powered lighting systems required extended manufacturing lead times, these schedule impacts were successfully managed through the City's construction administration process and did not prevent successful completion of the project.

Item Number: 20.

SR-26-166
During construction, eight (8) change orders totaling $120,509.19 were approved to address unforeseen field conditions and additional work necessary for the successful completion of the project. The additional work included fabrication and installation of anti-climb ornamental wrought-iron security fencing, monument enhancements, decomposed granite improvements, decorative natural rock landscaping, landscape modifications, lighting modifications, and other field adjustments identified during construction. These improvements enhanced the overall safety, security, functionality, durability, and long-term maintainability of the park while supporting the City's goal of creating an attractive and sustainable community asset.

Staff has completed a final inspection of the project and determined that all work has been completed in substantial conformance with the approved plans, specifications, and contract documents.

Approval of the Notice of Completion will authorize final payment to Landmark Associated Builders, Inc., authorize the City Manager to file the Notice of Completion with the Riverside County Recorder's Office, and commence the applicable statutory warranty period.

FISCAL IMPACT:

The original construction contract was awarded in the amount of $469,500.00, with a 10% contingency of $46,950.00, for a total authorized construction budget of $516,450.00.

During construction, eight (8) change orders totaling $120,509.19 were approved to address unforeseen conditions and additional work necessary to complete the project. The final construction contract amount, including all approved change orders, was $590,009.19.

The additional project costs were funded through the Quimby Fund (Fund 111) and Park Development Fund (Fund 102), both of which had sufficient appropriations available to complete the project.

STRATEGIC ALIGNMENT:

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

Goal 7: Community Parks
Provide maintenance and strategic upgrades at existing parks while pursuing creative ways to expand park offerings via pocket parks and securing grant funding to plan for and build out parks in the Parks Master Plan.

ATTACHMENTS:
1) NOC - Reflection Park
2) Reflection Park Project Change Order Log
3) Project Pictures
Item Number: 20.

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City Clerk
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
Notice is hereby given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is The City of Desert Hot Springs.

3. The full address of the owner is 11999 Palm Drive Desert Hot Springs, CA, 92240.

4. The nature of the interest or estate of the owner is in fee and easements.

5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common, are: None.

6. A work of improvement on the property hereinafter described was completed on May 18, 2026. The work done was: Reflection Park Project, City Project Number 4002

7. The name of the contractor, for such work of improvement was Landmark Associated Builders, Inc.

Date of Contract: July 21, 2025.

8. The property on which said work of improvements were completed is in the City of Desert Hot Springs, County of Riverside, State of California, and is described as follows: Reflection Park, Northwest corner of Palm Drive and 8th Street, Desert Hot Springs CA 92240. ______________________________________________ Dated:_____________________ Jerryl Soriano CMC, City Clerk, City of Desert Hot Springs I, the undersigned, am the City Manager of City of Desert Hot Springs, hereby certify that of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof; the same is true to the best of my knowledge. I declare under penalty of perjury that the foregoing is true and correct. ________________________________________________ Dated: ____________________ Doria Wilms, City Manager
Item Number: 20.

Project REFLECTION PARK PROJECT Project No. 4002
Contractor LANDMARK ASSOCIATED BUILDERS Contract No. PW26-005 CPM RAUL ARAUZ, ASSOCIATE ENGINEER Base Bid Amount 469,500.00 DHS CO # DESCRIPTION
DATE

APPROVED AMT
DHS CO 01 INSTALLATION OF REDWOOD HEADER TO SEPARATE NEW DG FROM EXISTING DG 10/1/25 $8,426.04 DHS CO 02 WROUGHT IRON FENCE ALONG WEST PROPERTY LINE 11/12/25 $37,761.26DHS CO 03 ZAHIDI PALMS SUBSTITUTION 3/23/26 $6,125.12DHS CO 04 OVEREXCAVATION OF HOLES FOR CAISSONS FOR LIGHT POSTS 3/23/26 $12,722.61DHS CO 05 MONUMENT SIGN - LETTERING HEIGHT INCREASE 4/8/26 $2,560.32DHS CO 06 INSTALL ANGULAR ROCKS ALONG THE 8TH SLOPED PARK FRONTAGE 4/8/26 $38,913.84 DHS CO 07 DECOMPOSED GRANITE (DG) INSTALLATION ON MEDIAN ON PALM DRIVE BETWEEN 8TH AND 7TH STREET
5/19/26 $10,500.00
DHS CO 08 INSTALLATION OF ELEVATED SUPPORT FOR ZAHIDI PALMS UPLIGHTS 5/19/26 $3,500.00 CHANGE ORDERS TOTAL 120,509.19
Approved Total 120,509.19

CITY OF DESERT HOT SPRINGS

CHANGE ORDER LOG
Item Number: 20.

CITY OF DESERT HOT SPRINGS
REFLECTION PARK PROJECT MAY 2026
Item Number: 20.